Text: H.R.1119 — 105th Congress (1997-1998)All Information (Except Text)

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Enrolled Bill

 
[Congressional Bills 105th Congress]
[From the U.S. Government Printing Office]
[H.R. 1119 Enrolled Bill (ENR)]

        H.R.1119

                       One Hundred Fifth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
 the seventh day of January, one thousand nine hundred and ninety-seven


                                 An Act


 
To authorize appropriations for fiscal year 1998 for military activities 
of the Department of Defense, for military construction, and for defense 
activities of the Department of Energy, to prescribe personnel strengths 
   for such fiscal year for the Armed Forces, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Defense Authorization Act 
for Fiscal Year 1998''.

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

    (a) Divisions.--This Act is organized into three divisions as 
follows:
        (1) Division A--Department of Defense Authorizations.
        (2) Division B--Military Construction Authorizations.
        (3) Division C--Department of Energy National Security 
    Authorizations and Other Authorizations.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Reserve components.
Sec. 106. Defense Inspector General.
Sec. 107. Chemical Demilitarization Program.
Sec. 108. Defense health programs.
Sec. 109. Defense Export Loan Guarantee Program.

                        Subtitle B--Army Programs

Sec. 111. Army helicopter modernization plan.
Sec. 112. Multiyear procurement authority for specified Army programs.
Sec. 113. M113 vehicle modifications.

                        Subtitle C--Navy Programs

Sec. 121. New Attack Submarine program.
Sec. 122. CVN-77 nuclear aircraft carrier program.
Sec. 123. Exclusion from cost limitation for Seawolf submarine program.

                     Subtitle D--Air Force Programs

Sec. 131. Authorization for B-2 bomber program.
Sec. 132. ALR radar warning receivers.
Sec. 133. Analysis of requirements for replacement of engines on 
          military aircraft derived from Boeing 707 aircraft.

                        Subtitle E--Other Matters

Sec. 141. Pilot program on sales of manufactured articles and services 
          of certain Army industrial facilities without regard to 
          availability from domestic sources.
Sec. 142. NATO Joint Surveillance/Target Attack Radar System.

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Dual-use technology program.
Sec. 204. Reduction in amount for Federally Funded Research and 
          Development Centers.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Manufacturing technology program.
Sec. 212. Report on operational field assessments program.
Sec. 213. Joint Strike Fighter program.
Sec. 214. Kinetic energy tactical anti-satellite technology program.
Sec. 215. Micro-satellite technology development program.
Sec. 216. High altitude endurance unmanned vehicle program.
Sec. 217. F-22 aircraft program.

             Subtitle C--Ballistic Missile Defense Programs

Sec. 231. National Missile Defense Program.
Sec. 232. Budgetary treatment of amounts for procurement for ballistic 
          missile defense programs.
Sec. 233. Cooperative Ballistic Missile Defense program.
Sec. 234. Annual report on threat posed to the United States by weapons 
          of mass destruction, ballistic missiles, and cruise missiles.
Sec. 235. Director of Ballistic Missile Defense Organization.
Sec. 236. Repeal of required deployment dates for core theater missile 
          defense programs.

                        Subtitle D--Other Matters

Sec. 241. Restructuring of National Oceanographic Partnership Program 
          organizations.
Sec. 242. Maintenance and repair of real property at Air Force 
          installations.
Sec. 243. Expansion of eligibility for the Defense Experimental Program 
          to Stimulate Competitive Research.
Sec. 244. Bioassay testing of veterans exposed to ionizing radiation 
          during military service.
Sec. 245. Sense of Congress regarding Comanche program.

                  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. Fisher House Trust Funds.
Sec. 305. Transfer from National Defense Stockpile Transaction Fund.
Sec. 306. Refurbishment of M1-A1 tanks.
Sec. 307. Operation of prepositioned fleet, National Training Center, 
          Fort Irwin, California.
Sec. 308. Refurbishment and installation of air search radar.
Sec. 309. Contracted training flight services.
Sec. 310. Procurement technical assistance programs.
Sec. 311. Operation of Fort Chaffee, Arkansas.

                  Subtitle B--Military Readiness Issues

Sec. 321. Monthly reports on allocation of funds within operation and 
          maintenance budget subactivities.
Sec. 322. Expansion of scope of quarterly readiness reports.
Sec. 323. Semiannual reports on transfers from high-priority readiness 
          appropriations.
Sec. 324. Annual report on aircraft inventory.
Sec. 325. Administrative actions adversely affecting military training 
          or other readiness activities.
Sec. 326. Common measurement of operations tempo and personnel tempo.
Sec. 327. Inclusion of Air Force depot maintenance as operation and 
          maintenance budget line items.
Sec. 328. Prohibition of implementation of tiered readiness system.
Sec. 329. Report on military readiness requirements of the Armed Forces.
Sec. 330. Assessment of cyclical readiness posture of the Armed Forces.
Sec. 331. Report on military exercises conducted under certain training 
          exercises programs.
Sec. 332. Report on overseas deployments.

                  Subtitle C--Environmental Provisions

Sec. 341. Revision of membership terms for Strategic Environmental 
          Research and Development Program Scientific Advisory Board.
Sec. 342. Amendments to authority to enter into agreements with other 
          agencies in support of environmental technology certification.
Sec. 343. Modifications of authority to store and dispose of nondefense 
          toxic and hazardous materials.
Sec. 344. Annual report on payments and activities in response to fines 
          and penalties assessed under environmental laws.
Sec. 345. Annual report on environmental activities of the Department of 
          Defense overseas.
Sec. 346. Review of existing environmental consequences of the presence 
          of the Armed Forces in Bermuda.
Sec. 347. Sense of Congress on deployment of United States Armed Forces 
          abroad for environmental preservation activities.
Sec. 348. Recovery and sharing of costs of environmental restoration at 
          Department of Defense sites.
Sec. 349. Partnerships for investment in innovative environmental 
          technologies.
Sec. 350. Procurement of recycled copier paper.
Sec. 351. Pilot program for the sale of air pollution emission reduction 
          incentives.

                   Subtitle D--Depot-Level Activities

Sec. 355. Definition of depot-level maintenance and repair.
Sec. 356. Core logistics capabilities of Department of Defense.
Sec. 357. Increase in percentage of depot-level maintenance and repair 
          that may be contracted for performance by non-government 
          personnel.
Sec. 358. Annual report on depot-level maintenance and repair.
Sec. 359. Requirement for use of competitive procedures in contracting 
          for performance of depot-level maintenance and repair 
          workloads formerly performed at closed or realigned military 
          installations.
Sec. 360. Clarification of prohibition on management of depot employees 
          by constraints on personnel levels.
Sec. 361. Centers of Industrial and Technical Excellence.
Sec. 362. Extension of authority for aviation depots and naval shipyards 
          to engage in defense-related production and services.
Sec. 363. Repeal of a conditional repeal of certain depot-level 
          maintenance and repair laws and a related reporting 
          requirement.
Sec. 364. Personnel reductions, Army depots participating in Army 
          Workload and Performance System.
Sec. 365. Report on allocation of core logistics activities among 
          Department of Defense facilities and private sector 
          facilities.
Sec. 366. Review of use of temporary duty assignments for ship repair 
          and maintenance.
Sec. 367. Sense of Congress regarding realignment of performance of 
          ground communication-electronic workload.

   Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 371. Reorganization of laws regarding commissaries and exchanges 
          and other morale, welfare, and recreation activities.
Sec. 372. Merchandise and pricing requirements for commissary stores.
Sec. 373. Limitation on noncompetitive procurement of brand-name 
          commercial items for resale in commissary stores.
Sec. 374. Treatment of revenues derived from commissary store 
          activities.
Sec. 375. Maintenance, repair, and renovation of Armed Forces Recreation 
          Center, Europe.
Sec. 376. Plan for use of public and private partnerships to benefit 
          morale, welfare, and recreation activities.

                        Subtitle F--Other Matters

Sec. 381. Assistance to local educational agencies that benefit 
          dependents of members of the Armed Forces and Department of 
          Defense civilian employees.
Sec. 382. Center for Excellence in Disaster Management and Humanitarian 
          Assistance.
Sec. 383. Applicability of Federal printing requirements to Defense 
          Automated Printing Service.
Sec. 384. Study and notification requirements for conversion of 
          commercial and industrial type functions to contractor 
          performance.
Sec. 385. Collection and retention of cost information data on converted 
          services and functions.
Sec. 386. Financial assistance to support additional duties assigned to 
          Army National Guard.
Sec. 387. Competitive procurement of printing and duplication services.
Sec. 388. Continuation and expansion of demonstration program to 
          identify overpayments made to vendors.
Sec. 389. Development of standard forms regarding performance work 
          statement and request for proposal for conversion of certain 
          operational functions of military installations.
Sec. 390. Base operations support for military installations on Guam.
Sec. 391. Warranty claims recovery pilot program.
Sec. 392. Program to investigate fraud, waste, and abuse within 
          Department of Defense.
Sec. 393. Multitechnology automated reader card demonstration program.
Sec. 394. Reduction in overhead costs of Inventory Control Points.
Sec. 395. Inventory management.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Permanent end strength levels to support two major regional 
          contingencies.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
          Reserves.
Sec. 413. End strengths for military technicians (dual status).

               Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Limitation on number of general and flag officers who may 
          serve in positions outside their own service.
Sec. 502. Exclusion of certain retired officers from limitation on 
          period of recall to active duty.
Sec. 503. Clarification of officers eligible for consideration by 
          promotion boards.
Sec. 504. Authority to defer mandatory retirement for age of officers 
          serving as chaplains.
Sec. 505. Increase in number of officers allowed to be frocked to grades 
          of colonel and Navy captain.
Sec. 506. Increased years of commissioned service for mandatory 
          retirement of regular generals and admirals in grades above 
          major general and rear admiral.
Sec. 507. Uniform policy for requirement of exemplary conduct by 
          commanding officers and others in authority.
Sec. 508. Report on the command selection process for District Engineers 
          of the Army Corps of Engineers.

                  Subtitle B--Reserve Component Matters

Sec. 511. Individual Ready Reserve activation authority.
Sec. 512. Termination of Mobilization Income Insurance Program.
Sec. 513. Correction of inequities in medical and dental care and death 
          and disability benefits for reserve members who incur or 
          aggravate an illness in the line of duty.
Sec. 514. Authority to permit non-unit assigned officers to be 
          considered by vacancy promotion board to general officer 
          grades.
Sec. 515. Prohibition on use of Air Force Reserve AGR personnel for Air 
          Force base security functions.
Sec. 516. Involuntary separation of reserve officers in an inactive 
          status.
Sec. 517. Federal status of service by National Guard members as honor 
          guards at funerals of veterans.

                    Subtitle C--Military Technicians

Sec. 521. Authority to retain on the reserve active-status list until 
          age 60 military technicians in the grade of brigadier general.
Sec. 522. Military technicians (dual status).
Sec. 523. Non-dual status military technicians.
Sec. 524. Report on feasibility and desirability of conversion of AGR 
          personnel to military technicians (dual status).

   Subtitle D--Measures To Improve Recruit Quality and Reduce Recruit 
                                Attrition

Sec. 531. Reform of military recruiting systems.
Sec. 532. Improvements in medical prescreening of applicants for 
          military service.
Sec. 533. Improvements in physical fitness of recruits.

               Subtitle E--Military Education and Training

                   Part I--Officer Education Programs

Sec. 541. Requirement for candidates for admission to United States 
          Naval Academy to take oath of allegiance.
Sec. 542. Service academy foreign exchange program.
Sec. 543. Reimbursement of expenses incurred for instruction at service 
          academies of persons from foreign countries.
Sec. 544. Continuation of support to senior military colleges.
Sec. 545. Report on making United States nationals eligible for 
          participation in Senior Reserve Officers' Training Corps.
Sec. 546. Coordination of establishment and maintenance of Junior 
          Reserve Officers' Training Corps units to maximize enrollment 
          and enhance efficiency.

                    Part II--Other Education Matters

Sec. 551. United States Naval Postgraduate School.
Sec. 552. Community College of the Air Force.
Sec. 553. Preservation of entitlement to educational assistance of 
          members of the Selected Reserve serving on active duty in 
          support of a contingency operation.

               Part III--Training of Army Drill Sergeants

Sec. 556. Reform of Army drill sergeant selection and training process.
Sec. 557. Training in human relations matters for Army drill sergeant 
          trainees.

  Subtitle F--Commission on Military Training and Gender-Related Issues

Sec. 561. Establishment and composition of Commission.
Sec. 562. Duties.
Sec. 563. Administrative matters.
Sec. 564. Termination of Commission.
Sec. 565. Funding.
Sec. 566. Subsequent consideration by Congress.

               Subtitle G--Military Decorations and Awards

Sec. 571. Purple Heart to be awarded only to members of the Armed 
          Forces.
Sec. 572. Eligibility for Armed Forces Expeditionary Medal for 
          participation in Operation Joint Endeavor or Operation Joint 
          Guard.
Sec. 573. Waiver of time limitations for award of certain decorations to 
          specified persons.
Sec. 574. Clarification of eligibility of members of Ready Reserve for 
          award of service medal for heroism.
Sec. 575. One-year extension of period for receipt of recommendations 
          for decorations and awards for certain military intelligence 
          personnel.
Sec. 576. Eligibility of certain World War II military organizations for 
          award of unit decorations.
Sec. 577. Retroactivity of Medal of Honor special pension.

                  Subtitle H--Military Justice Matters

Sec. 581. Establishment of sentence of confinement for life without 
          eligibility for parole.
Sec. 582. Limitation on appeal of denial of parole for offenders serving 
          life sentence.

                        Subtitle I--Other Matters

Sec. 591. Sexual harassment investigations and reports.
Sec. 592. Sense of the Senate regarding study of matters relating to 
          gender equity in the Armed Forces.
Sec. 593. Authority for personnel to participate in management of 
          certain non- Federal entities.
Sec. 594. Treatment of participation of members in Department of Defense 
          civil military programs.
Sec. 595. Comptroller General study of Department of Defense civil 
          military programs.
Sec. 596. Establishment of public affairs specialty in the Army.
Sec. 597. Grade of defense attache in France.
Sec. 598. Report on crew requirements of WC-130J aircraft.
Sec. 599. Improvement of missing persons authorities applicable to 
          Department of Defense.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 1998.
Sec. 602. Reform of basic allowance for subsistence.
Sec. 603. Consolidation of basic allowance for quarters, variable 
          housing allowance, and overseas housing allowances.
Sec. 604. Revision of authority to adjust compensation necessitated by 
          reform of subsistence and housing allowances.
Sec. 605. Protection of total compensation of members while performing 
          certain duty.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay 
          authorities for reserve forces.
Sec. 612. One-year extension of certain bonuses and special pay 
          authorities for nurse officer candidates, registered nurses, 
          and nurse anesthetists.
Sec. 613. One-year extension of authorities relating to payment of other 
          bonuses and special pays.
Sec. 614. Increase in minimum monthly rate of hazardous duty incentive 
          pay for certain members.
Sec. 615. Increase in aviation career incentive pay.
Sec. 616. Modification of aviation officer retention bonus.
Sec. 617. Availability of multiyear retention bonus for dental officers.
Sec. 618. Increase in variable and additional special pays for certain 
          dental officers.
Sec. 619. Availability of special pay for duty at designated hardship 
          duty locations.
Sec. 620. Definition of sea duty for purposes of career sea pay.
Sec. 621. Modification of Selected Reserve reenlistment bonus.
Sec. 622. Modification of Selected Reserve enlistment bonus for former 
          enlisted members.
Sec. 623. Expansion of reserve affiliation bonus to include Coast Guard 
          Reserve.
Sec. 624. Increase in special pay and bonuses for nuclear-qualified 
          officers.
Sec. 625. Provision of bonuses in lieu of special pay for enlisted 
          members extending tours of duty at designated locations 
          overseas.
Sec. 626. Increase in amount of family separation allowance.
Sec. 627. Deadline for payment of Ready Reserve muster duty allowance.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Travel and transportation allowances for dependents before 
          approval of member's court-martial sentence.
Sec. 632. Dislocation allowance.

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

Sec. 641. One-year opportunity to discontinue participation in Survivor 
          Benefit Plan.
Sec. 642. Time in which change in survivor benefit coverage from former 
          spouse to spouse may be made.
Sec. 643. Review of Federal former spouse protection laws.
Sec. 644. Annuities for certain military surviving spouses.
Sec. 645. Administration of benefits for so-called minimum income 
          widows.

                        Subtitle E--Other Matters

Sec. 651. Loan repayment program for commissioned officers in certain 
          health professions.
Sec. 652. Conformance of NOAA commissioned officers separation pay to 
          separation pay for members of other uniformed services.
Sec. 653. Eligibility of Public Health Service officers and NOAA 
          commissioned corps officers for reimbursement of adoption 
          expenses.
Sec. 654. Payment of back quarters and subsistence allowances to World 
          War II veterans who served as guerrilla fighters in the 
          Philippines.
Sec. 655. Subsistence of members of the Armed Forces above the poverty 
          level.

                    TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Expansion of retiree dental insurance plan to include 
          surviving spouse and child dependents of certain deceased 
          members.
Sec. 702. Provision of prosthetic devices to covered beneficiaries.
Sec. 703. Study concerning the provision of comparative information.

                       Subtitle B--TRICARE Program

Sec. 711. Addition of definition of TRICARE program to title 10.
Sec. 712. Plan for expansion of managed care option of TRICARE program.

           Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Implementation of designated provider agreements for Uniformed 
          Services Treatment Facilities.
Sec. 722. Continued acquisition of reduced-cost drugs.
Sec. 723. Limitation on total payments.

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

Sec. 731. Improvements in health care coverage and access for members 
          assigned to certain duty locations far from sources of care.
Sec. 732. Waiver or reduction of copayments under overseas dental 
          program.
Sec. 733. Premium collection requirements for medical and dental 
          insurance programs; extension of deadline for implementation 
          of dental insurance program for military retirees.
Sec. 734. Dental insurance plan coverage for retirees of the Public 
          Health Service and NOAA.
Sec. 735. Consistency between CHAMPUS and Medicare in payment rates for 
          services.
Sec. 736. Use of personal services contracts for provision of health 
          care services and legal protection for providers.
Sec. 737. Portability of State licenses for Department of Defense health 
          care professionals.
Sec. 738. Standard form and requirements regarding claims for payment 
          for services.
Sec. 739. Chiropractic health care demonstration program.

                        Subtitle E--Other Matters

Sec. 741. Continued admission of civilians as students in physician 
          assistant training program of Army Medical Department.
Sec. 742. Payment for emergency health care overseas for military and 
          civilian personnel of the On-Site Inspection Agency.
Sec. 743. Authority for agreement for use of medical resource facility, 
          Alamogordo, New Mexico.
Sec. 744. Disclosures of cautionary information on prescription 
          medications.
Sec. 745. Competitive procurement of certain ophthalmic services.
Sec. 746. Comptroller General study of adequacy and effect of maximum 
          allowable charges for physicians under CHAMPUS.
Sec. 747. Comptroller General study of Department of Defense pharmacy 
          programs.
Sec. 748. Comptroller General study of Navy graduate medical education 
          program.
Sec. 749. Study of expansion of pharmaceuticals by mail program to 
          include additional Medicare-eligible covered beneficiaries.
Sec. 750. Comptroller General study of requirement for military medical 
          facilities in National Capital Region.
Sec. 751. Report on policies and programs to promote healthy lifestyles 
          for members of the Armed Forces and their dependents.
Sec. 752. Sense of Congress regarding quality health care for retirees.

                    Subtitle F--Persian Gulf Illness

Sec. 761. Definitions.
Sec. 762. Plan for health care services for Persian Gulf veterans.
Sec. 763. Comptroller General study of revised disability criteria for 
          physical evaluation boards.
Sec. 764. Medical care for certain reserves who served in Southwest Asia 
          during the Persian Gulf War.
Sec. 765. Improved medical tracking system for members deployed overseas 
          in contingency or combat operations.
Sec. 766. Notice of use of investigational new drugs or drugs unapproved 
          for their applied use.
Sec. 767. Report on plans to track location of members in a theater of 
          operations.
Sec. 768. Sense of Congress regarding the deployment of specialized 
          units for detecting and monitoring chemical, biological, and 
          similar hazards in a theater of operations.
Sec. 769. Report on effectiveness of research efforts regarding Gulf War 
          illnesses.
Sec. 770. Persian Gulf illness clinical trials program.
Sec. 771. Sense of Congress concerning Gulf War illness.

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

 Subtitle A--Amendments to General Contracting Authorities, Procedures, 
                             and Limitations

Sec. 801. Expansion of authority to enter into contracts crossing fiscal 
          years to all severable service contracts not exceeding a year.
Sec. 802. Vesting of title in the United States under contracts paid 
          under progress payment arrangements or similar arrangements.
Sec. 803. Restriction on undefinitized contract actions.
Sec. 804. Limitation and report on payment of restructuring costs under 
          defense contracts.
Sec. 805. Increased price limitation on purchases of right-hand drive 
          vehicles.
Sec. 806. Multiyear procurement contracts.
Sec. 807. Audit of procurement of military clothing and clothing-related 
          items by military installations in the United States.
Sec. 808. Limitation on allowability of compensation for certain 
          contractor personnel.
Sec. 809. Elimination of certification requirement for grants.
Sec. 810. Repeal of limitation on adjustment of shipbuilding contracts.
Sec. 811. Item-by-item and country-by-country waivers of domestic source 
          limitations.

               Subtitle B--Acquisition Assistance Programs

Sec. 821. One-year extension of pilot mentor-protege program.
Sec. 822. Test program for negotiation of comprehensive subcontracting 
          plans.

                  Subtitle C--Administrative Provisions

Sec. 831. Retention of expired funds during the pendency of contract 
          litigation.
Sec. 832. Protection of certain information from disclosure.
Sec. 833. Unit cost reports.
Sec. 834. Plan for providing contracting information to general public 
          and small businesses.
Sec. 835. Two-year extension of crediting of certain purchases toward 
          meeting subcontracting goals.

                        Subtitle D--Other Matters

Sec. 841. Repeal of certain acquisition requirements and reports.
Sec. 842. Use of major range and test facility installations by 
          commercial entities.
Sec. 843. Requirement to develop and maintain list of firms not eligible 
          for defense contracts.
Sec. 844. Sense of Congress regarding allowability of costs of employee 
          stock ownership plans.
Sec. 845. Expansion of personnel eligible to participate in 
          demonstration project relating to acquisition workforce.
Sec. 846. Time for submission of annual report relating to Buy American 
          Act.
Sec. 847. Repeal of requirement for contractor guarantees on major 
          weapon systems.
Sec. 848. Requirements relating to micro-purchases.
Sec. 849. Promotion rate for officers in an acquisition corps.
Sec. 850. Use of electronic commerce in Federal procurement.
Sec. 851. Conformance of policy on performance based management of 
          civilian acquisition programs with policy established for 
          defense acquisition programs.
Sec. 852. Modification of process requirements for the solutions-based 
          contracting pilot program.
Sec. 853. Guidance and standards for defense acquisition workforce 
          training requirements.
Sec. 854. Study and report to Congress assessing dependence on foreign 
          sources for resistors and capacitors.
Sec. 855. Department of Defense and Federal Prison Industries joint 
          study.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Department of Defense Positions and Organizations and Other 
                             General Matters

Sec. 901. Assistants to the Chairman of the Joint Chiefs of Staff for 
          National Guard matters and for Reserve matters.
Sec. 902. Use of CINC Initiative Fund for force protection.
Sec. 903. Revision to required frequency for provision of policy 
          guidance for contingency plans.
Sec. 904. Annual justification for Department of Defense advisory 
          committees.
Sec. 905. Airborne reconnaissance management.
Sec. 906. Termination of the Armed Services Patent Advisory Board.
Sec. 907. Coordination of Department of Defense criminal investigations 
          and audits.

         Subtitle B--Department of Defense Personnel Management

Sec. 911. Reduction in personnel assigned to management headquarters and 
          headquarters support activities.
Sec. 912. Defense acquisition workforce.

          Subtitle C--Department of Defense Schools and Centers

Sec. 921. Professional military education schools.
Sec. 922. Center for Hemispheric Defense Studies.
Sec. 923. Correction to reference to George C. Marshall European Center 
          for Security Studies.

     Subtitle D--Department of Defense Intelligence-Related Matters

Sec. 931. Transfer of certain military department programs from TIARA 
          budget aggregation.
Sec. 932. Report on coordination of access of commanders and deployed 
          units to intelligence collected and analyzed by the 
          intelligence community.
Sec. 933. Protection of imagery, imagery intelligence, and geospatial 
          information and data.
Sec. 934. POW/MIA intelligence analysis.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec.1001.Transfer authority.
Sec.1002.Incorporation of classified annex.
Sec.1003.Authority for obligation of unauthorized fiscal year 1997 
          defense appropriations.
Sec.1004.Authorization of prior emergency supplemental appropriations 
          for fiscal year 1997.
Sec.1005.Increase in fiscal year 1996 transfer authority.
Sec.1006.Revision of authority for Fisher House trust funds.
Sec.1007.Flexibility in financing closure of certain outstanding 
          contracts for which a small final payment is due.
Sec.1008.Biennial financial management improvement plan.
Sec.1009.Estimates and requests for procurement and military 
          construction for the reserve components.
Sec.1010.Sense of Congress regarding funding for reserve component 
          modernization not requested in President's budget.
Sec.1011.Management of working-capital funds.
Sec.1012.Authority of Secretary of Defense to settle claims relating to 
          pay, allowances, and other benefits.
Sec.1013.Payment of claims by members for loss of personal property due 
          to flooding in Red River Basin.
Sec.1014.Advances for payment of public services.
Sec.1015.United States Man and the Biosphere Program limitation.

                 Subtitle B--Naval Vessels and Shipyards

Sec.1021.Procedures for sale of vessels stricken from the Naval Vessel 
          Register.
Sec.1022.Authority to enter into a long-term charter for a vessel in 
          support of the Surveillance Towed-Array Sensor (SURTASS) 
          program.
Sec.1023.Transfer of two specified obsolete tugboats of the Army.
Sec.1024.Congressional review period with respect to transfer of ex-
          U.S.S. Hornet (CV-12) and ex-U.S.S. Midway (CV-41).
Sec.1025.Transfers of naval vessels to certain foreign countries.
Sec.1026.Reports relating to export of vessels that may contain 
          polychlorinated biphenyls.
Sec.1027.Conversion of defense capability preservation authority to Navy 
          shipbuilding capability preservation authority.

                   Subtitle C--Counter-Drug Activities

Sec.1031.Use of National Guard for State drug interdiction and counter-
          drug activities.
Sec.1032.Authority to provide additional support for counter-drug 
          activities of Mexico.
Sec.1033.Authority to provide additional support for counter-drug 
          activities of Peru and Colombia.
Sec.1034.Annual report on development and deployment of narcotics 
          detection technologies.

        Subtitle D--Miscellaneous Report Requirements and Repeals

Sec.1041.Repeal of miscellaneous reporting requirements.
Sec.1042.Study of transfer of modular airborne fire fighting system.
Sec.1043.Overseas infrastructure requirements.
Sec.1044.Additional matters for annual report on activities of the 
          General Accounting Office.
Sec.1045.Eye safety at small arms firing ranges.
Sec.1046.Reports on Department of Defense procedures for investigating 
          military aviation accidents and for notifying and assisting 
          families of victims.

                Subtitle E--Matters Relating to Terrorism

Sec.1051.Oversight of counterterrorism and antiterrorism activities; 
          report.
Sec.1052.Provision of adequate troop protection equipment for Armed 
          Forces personnel engaged in peace operations; report on 
          antiterrorism activities and protection of personnel.

            Subtitle F--Matters Relating to Defense Property

Sec.1061.Lease of nonexcess personal property of military departments.
Sec.1062.Lease of nonexcess property of Defense Agencies.
Sec.1063.Donation of excess chapel property to churches damaged or 
          destroyed by arson or other acts of terrorism.
Sec.1064.Authority of the Secretary of Defense concerning disposal of 
          assets under cooperative agreements on air defense in Central 
          Europe.
Sec.1065.Sale of excess, obsolete, or unserviceable ammunition and 
          ammunition components.
Sec.1066.Transfer of B-17 aircraft to museum.
Sec.1067.Report on disposal of excess and surplus materials.

                        Subtitle G--Other Matters

Sec.1071.Authority for special agents of the Defense Criminal 
          Investigative Service to execute warrants and make arrests.
Sec.1072.Study of investigative practices of military criminal 
          investigative organizations relating to sex crimes.
Sec.1073.Technical and clerical amendments.
Sec.1074.Sustainment and operation of the Global Positioning System.
Sec.1075.Protection of safety-related information voluntarily provided 
          by air carriers.
Sec.1076.National Guard Challenge Program to create opportunities for 
          civilian youth.
Sec.1077.Disqualification from certain burial-related benefits for 
          persons convicted of capital crimes.
Sec.1078.Restrictions on the use of human subjects for testing of 
          chemical or biological agents.
Sec.1079.Treatment of military flight operations.
Sec.1080.Naturalization of certain foreign nationals who serve honorably 
          in the Armed Forces during a period of conflict.
Sec.1081.Applicability of certain pay authorities to members of 
          specified independent study organizations.
Sec.1082.Display of POW/MIA flag.
Sec.1083.Program to commemorate 50th anniversary of the Korean conflict.
Sec.1084.Commendation of members of the Armed Forces and Government 
          civilian personnel who served during the Cold War; certificate 
          of recognition.
Sec.1085.Sense of Congress on granting of statutory Federal charters.
Sec.1086.Sense of Congress regarding military voting rights.
Sec.1087.Designation of Bob Hope as an honorary veteran of the Armed 
          Forces of the United States.
Sec.1088.Five-year extension of aviation insurance program.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec.1101.Use of prohibited constraints to manage Department of Defense 
          personnel.
Sec.1102.Veterans' preference status for certain veterans who served on 
          active duty during the Persian Gulf War.
Sec.1103.Repeal of deadline for placement consideration of involuntarily 
          separated military reserve technicians.
Sec.1104.Rate of pay of Department of Defense overseas teachers upon 
          transfer to General Schedule position.
Sec.1105.Garnishment and involuntary allotment.
Sec.1106.Extension and revision of voluntary separation incentive pay 
          authority.
Sec.1107.Use of approved fire-safe accommodations by Government 
          employees on official business.
Sec.1108.Navy higher education pilot program regarding administration of 
          business relationships between Government and private sector.
Sec.1109.Authority for Marine Corps University to employ civilian 
          faculty members.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

    Subtitle A--United States Armed Forces in Bosnia and Herzegovina

Sec.1201.Findings.
Sec.1202.Sense of Congress.
Sec.1203.Withdrawal of United States ground forces from Republic of 
          Bosnia and Herzegovina.
Sec.1204.Secretary of Defense reports on tasks carried out by United 
          States forces.
Sec.1205.Presidential report on situation in Republic of Bosnia and 
          Herzegovina.
Sec.1206.Definitions.

        Subtitle B--Export Controls on High Performance Computers

Sec.1211.Export approvals for high performance computers.
Sec.1212.Report on exports of high performance computers.
Sec.1213.Post-shipment verification of export of high performance 
          computers.
Sec.1214.GAO study on certain computers; end user information 
          assistance.
Sec.1215.Congressional committees.

                        Subtitle C--Other Matters

Sec.1221.Defense burdensharing.
Sec.1222.Temporary use of general purpose vehicles and nonlethal 
          military equipment under acquisition and cross servicing 
          agreements.
Sec.1223.Sense of Congress and reports regarding financial costs of 
          enlargement of the North Atlantic Treaty Organization.
Sec.1224.Sense of Congress regarding enlargement of the North Atlantic 
          Treaty Organization.
Sec.1225.Sense of the Congress relating to level of United States 
          military personnel in the East Asia and Pacific region.
Sec.1226.Report on future military capabilities and strategy of the 
          People's Republic of China.
Sec.1227.Sense of Congress on need for Russian openness on the Yamantau 
          Mountain project.
Sec.1228.Assessment of the Cuban threat to United States national 
          security.
Sec.1229.Report on Helsinki Joint statement.
Sec.1230.Commendation of Mexico on free and fair elections.
Sec.1231.Sense of Congress regarding Cambodia.
Sec.1232.Congratulating Governor Christopher Patten of Hong Kong.

              TITLE XIII--ARMS CONTROL AND RELATED MATTERS

Sec.1301.Presidential report concerning detargeting of Russian strategic 
          missiles.
Sec.1302.Limitation on retirement or dismantlement of strategic nuclear 
          delivery systems.
Sec.1303.Assistance for facilities subject to inspection under the 
          Chemical Weapons Convention.
Sec.1304.Transfers of authorizations for high-priority 
          counterproliferation programs.
Sec.1305.Advice to the President and Congress regarding the safety, 
          security, and reliability of United States nuclear weapons 
          stockpile.
Sec.1306.Reconstitution of commission to assess the ballistic missile 
          threat to the United States.
Sec.1307.Sense of Congress regarding the relationship between United 
          States obligations under the Chemical Weapons Convention and 
          environmental laws.
Sec.1308.Extension of counterproliferation authorities for support of 
          United Nations Special Commission on Iraq.
Sec.1309.Annual report on moratorium on use by Armed Forces of 
          antipersonnel landmines.

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

Sec.1401.Specification of Cooperative Threat Reduction programs and 
          funds.
Sec.1402.Funding allocations.
Sec.1403.Prohibition on use of funds for specified purposes.
Sec.1404.Limitation on use of funds for projects related to START II 
          Treaty until submission of certification.
Sec.1405.Limitation on use of funds for chemical weapons destruction 
          facility.
Sec.1406.Limitation on use of funds for destruction of chemical weapons.
Sec.1407.Limitation on use of funds for storage facility for Russian 
          fissile material.
Sec.1408.Limitation on use of funds for weapons storage security.
Sec.1409.Report on issues regarding payment of taxes, duties, and other 
          assessments on assistance provided to Russia under Cooperative 
          Threat Reduction programs.
Sec.1410.Availability of funds.

    TITLE XV--FEDERAL CHARTER FOR THE AIR FORCE SERGEANTS ASSOCIATION

Sec.1501.Recognition and grant of Federal charter.
Sec.1502.Powers.
Sec.1503.Purposes.
Sec.1504.Service of process.
Sec.1505.Membership.
Sec.1506.Board of directors.
Sec.1507.Officers.
Sec.1508.Restrictions.
Sec.1509.Liability.
Sec.1510.Maintenance and inspection of books and records.
Sec.1511.Audit of financial transactions.
Sec.1512.Annual report.
Sec.1513.Reservation of right to alter, amend, or repeal charter.
Sec.1514.Tax-exempt status required as condition of charter.
Sec.1515.Termination.
Sec.1516.Definition of State.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec.2001.Short title.

                             TITLE XXI--ARMY

Sec.2101.Authorized Army construction and land acquisition projects.
Sec.2102.Family housing.
Sec.2103.Improvements to military family housing units.
Sec.2104.Authorization of appropriations, Army.
Sec.2105.Correction in authorized uses of funds, Fort Irwin, California.

                            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.Authorization of military construction project at Naval 
          Station, Pascagoula, Mississippi, for which funds have been 
          appropriated.
Sec.2206.Increase in authorization for military construction projects at 
          Naval Station Roosevelt Roads, Puerto Rico.

                         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.Authorization of military construction project at McConnell Air 
          Force Base, Kansas, for which funds have been appropriated.

                      TITLE XXIV--DEFENSE AGENCIES

Sec.2401.Authorized Defense Agencies construction and land acquisition 
          projects.
Sec.2402.Military housing planning and design.
Sec.2403.Improvements to military family housing units.
Sec.2404.Energy conservation projects.
Sec.2405.Authorization of appropriations, Defense Agencies.
Sec.2406.Clarification of authority relating to fiscal year 1997 project 
          at Naval Station, Pearl Harbor, Hawaii.
Sec.2407.Correction in authorized uses of funds, McClellan Air Force 
          Base, California.
Sec.2408.Modification of authority to carry out certain fiscal year 1995 
          projects.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

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

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec.2601.Authorized Guard and Reserve construction and land acquisition 
          projects.
Sec.2602.Authorization of military construction projects for which funds 
          have been appropriated.
Sec.2603.Army Reserve construction project, Camp Williams, Utah.

         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 1995 
          projects.
Sec.2703.Extension of authorizations of certain fiscal year 1994 
          projects.
Sec.2704.Extension of authorizations of certain fiscal year 1993 
          projects.
Sec.2705.Extension of authorizations of certain fiscal year 1992 
          projects.
Sec.2706.Extension of availability of funds for construction of 
          relocatable over-the-horizon radar, Naval Station Roosevelt 
          Roads, Puerto Rico.
Sec.2707.Effective date.

                    TITLE XXVIII--GENERAL PROVISIONS

 Subtitle A--Military Construction Program and Military Family Housing 
                                 Changes

Sec.2801.Use of mobility enhancement funds for unspecified minor 
          construction.
Sec.2802.Limitation on use of operation and maintenance funds for 
          facility repair projects.
Sec.2803.Leasing of military family housing, United States Southern 
          Command, Miami, Florida.
Sec.2804.Use of financial incentives provided as part of energy savings 
          and water conservation activities.
Sec.2805.Congressional notification requirements regarding use of 
          Department of Defense housing funds for investments in 
          nongovernmental entities.

         Subtitle B--Real Property and Facilities Administration

Sec.2811.Increase in ceiling for minor land acquisition projects.
Sec.2812.Permanent authority regarding conveyance of utility systems.
Sec.2813.Administrative expenses for certain real property transactions.
Sec.2814.Screening of real property to be conveyed by Department of 
          Defense.
Sec.2815.Disposition of proceeds from sale of Air Force Plant 78, 
          Brigham City, Utah.
Sec.2816.Fire protection and hazardous materials protection at Fort 
          Meade, Maryland.

            Subtitle C--Defense Base Closure and Realignment

Sec.2821.Consideration of military installations as sites for new 
          Federal facilities.
Sec.2822.Adjustment and diversification assistance to enhance 
          performance of military family support services by private 
          sector sources.
Sec.2823.Security, fire protection, and other services at property 
          formerly associated with Red River Army Depot, Texas.
Sec.2824.Report on closure and realignment of military installations.
Sec.2825.Sense of Senate regarding utilization of savings derived from 
          base closure process.
Sec.2826.Prohibition against certain conveyances of property at Naval 
          Station, Long Beach, California.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec.2831.Land conveyance, Army Reserve Center, Greensboro, Alabama.
Sec.2832.Land conveyance, James T. Coker Army Reserve Center, Durant, 
          Oklahoma.
Sec.2833.Land conveyance, Gibson Army Reserve Center, Chicago, Illinois.
Sec.2834.Land conveyance, Fort A. P. Hill, Virginia.
Sec.2835.Land conveyances, Fort Dix, New Jersey.
Sec.2836.Land conveyances, Fort Bragg, North Carolina.
Sec.2837.Land conveyance, Hawthorne Army Ammunition Depot, Mineral 
          County, Nevada.
Sec.2838.Expansion of land conveyance authority, Indiana Army Ammunition 
          Plant, Charlestown, Indiana.
Sec.2839.Modification of land conveyance, Lompoc, California.
Sec.2840.Modification of land conveyance, Rocky Mountain Arsenal, 
          Colorado.
Sec.2841.Correction of land conveyance authority, Army Reserve Center, 
          Anderson, South Carolina.

                        Part II--Navy Conveyances

Sec.2851.Land conveyance, Topsham Annex, Naval Air Station, Brunswick, 
          Maine.
Sec.2852.Land conveyance, Naval Weapons Industrial Reserve Plant No.464, 
          Oyster Bay, New York.
Sec.2853.Correction of lease authority, Naval Air Station, Meridian, 
          Mississippi.

                     Part III--Air Force Conveyances

Sec.2861.Land transfer, Eglin Air Force Base, Florida.
Sec.2862.Land conveyance, March Air Force Base, California.
Sec.2863.Land conveyance, Ellsworth Air Force Base, South Dakota.
Sec.2864.Land conveyance, Hancock Field, Syracuse, New York.
Sec.2865.Land conveyance, Havre Air Force Station, Montana, and Havre 
          Training Site, Montana.
Sec.2866.Land conveyance, Charleston Family Housing Complex, Bangor, 
          Maine.
Sec.2867.Study of land exchange options, Shaw Air Force Base, South 
          Carolina.

                        Subtitle E--Other Matters

Sec.2871.Repeal of requirement to operate Naval Academy dairy farm.
Sec.2872.Long-term lease of property, Naples, Italy.
Sec.2873.Designation of military family housing at Lackland Air Force 
          Base, Texas, in honor of Frank Tejeda, a former Member of the 
          House of Representatives.
Sec.2874.Fiber-optics based telecommunications linkage of military 
          installations.

                    TITLE XXIX--SIKES ACT IMPROVEMENT

Sec.2901.Short title.
Sec.2902.Definition of Sikes Act for purposes of amendments.
Sec.2903.Codification of short title of Act.
Sec.2904.Preparation of integrated natural resources management plans.
Sec.2905.Review for preparation of integrated natural resources 
          management plans.
Sec.2906.Transfer of wildlife conservation fees from closed military 
          installations.
Sec.2907.Annual reviews and reports.
Sec.2908.Cooperative agreements.
Sec.2909.Federal enforcement.
Sec.2910.Natural resources management services.
Sec.2911.Definitions.
Sec.2912.Repeal of superseded provision.
Sec.2913.Technical amendments.
Sec.2914.Authorizations of appropriations.

 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.
Sec.3129.Transfers of defense environmental management funds.

    Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec.3131.Memorandum of understanding for use of national laboratories 
          for ballistic missile defense programs.
Sec.3132.Defense environmental management privatization projects.
Sec.3133.International cooperative stockpile stewardship.
Sec.3134.Modernization of enduring nuclear weapons complex.
Sec.3135.Tritium production.
Sec.3136.Processing, treatment, and disposition of spent nuclear fuel 
          rods and other legacy nuclear materials at the Savannah River 
          Site.
Sec.3137.Limitations on use of funds for laboratory directed research 
          and development purposes.
Sec.3138.Pilot program relating to use of proceeds of disposal or 
          utilization of certain Department of Energy assets.
Sec.3139.Modification and extension of authority relating to appointment 
          of certain scientific, engineering, and technical personnel.
Sec.3140.Limitation on use of funds for subcritical nuclear weapons 
          tests.
Sec.3141.Limitation on use of certain funds until future use plans are 
          submitted.

                        Subtitle D--Other Matters

Sec.3151.Plan for stewardship, management, and certification of warheads 
          in the nuclear weapons stockpile.
Sec.3152.Repeal of obsolete reporting requirements.
Sec.3153.Study and funding relating to implementation of workforce 
          restructuring plans.
Sec.3154.Report and plan for external oversight of national 
          laboratories.
Sec.3155.University-based research collaboration program.
Sec.3156.Stockpile stewardship program.
Sec.3157.Reports on advanced supercomputer sales to certain foreign 
          nations.
Sec.3158.Transfers of real property at certain Department of Energy 
          facilities.
Sec.3159.Requirement to delegate certain authorities to site manager of 
          Hanford Reservation.
Sec.3160.Submittal of biennial waste management reports.
Sec.3161.Department of Energy Security Management Board.
Sec.3162.Submittal of annual report on status of security functions at 
          nuclear weapons facilities.
Sec.3163.Modification of authority on Commission on Maintaining United 
          States Nuclear Weapons Expertise.
Sec.3164.Land transfer, Bandelier National Monument.
Sec.3165.Final settlement of Department of Energy community assistance 
          obligations with respect to Los Alamos National Laboratory, 
          New Mexico.
Sec.3166.Sense of Congress regarding the Y-12 Plant in Oak Ridge, 
          Tennessee.
Sec.3167.Support for public education in the vicinity of Los Alamos 
          National Laboratory, New Mexico.
Sec.3168.Improvements to Greenville Road, Livermore, California.
Sec.3169.Report on alternative system for availability of funds.
Sec.3170.Report on remediation under the Formerly Utilized Sites 
          Remedial Action Program.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec.3201.Authorization.
Sec.3202.Report on external regulation of defense nuclear facilities.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec.3301.Definitions.
Sec.3302.Authorized uses of stockpile funds.
Sec.3303.Disposal of beryllium copper master alloy in National Defense 
          Stockpile.
Sec.3304.Disposal of titanium sponge in National Defense Stockpile.
Sec.3305.Disposal of cobalt in National Defense Stockpile.
Sec.3306.Required procedures for disposal of strategic and critical 
          materials.
Sec.3307.Return of surplus platinum from the Department of the Treasury.

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec.3401.Authorization of appropriations.
Sec.3402.Price requirement on sale of certain petroleum during fiscal 
          year 1998.
Sec.3403.Repeal of requirement to assign Navy officers to Office of 
          Naval Petroleum and Oil Shale Reserves.
Sec.3404.Transfer of jurisdiction, Naval Oil Shale Reserves Numbered 1 
          and 3.

                   TITLE XXXV--PANAMA CANAL COMMISSION

      Subtitle A--Authorization of Expenditures From Revolving Fund

Sec.3501.Short title.
Sec.3502.Authorization of expenditures.
Sec.3503.Purchase of vehicles.
Sec.3504.Expenditures only in accordance with treaties.

           Subtitle B--Facilitation of Panama Canal Transition

Sec.3511.Short title; references.
Sec.3512.Definitions relating to canal transition.

Part I--Transition Matters Relating to Commission Officers and Employees

Sec.3521.Authority for the Administrator of the Commission to accept 
          appointment as the Administrator of the Panama Canal 
          Authority.
Sec.3522.Post-Canal transfer personnel authorities.
Sec.3523.Enhanced authority of Commission to establish compensation of 
          Commission officers and employees.
Sec.3524.Travel, transportation, and subsistence expenses for Commission 
          personnel no longer subject to Federal travel regulation.
Sec.3525.Enhanced recruitment and retention authorities.
Sec.3526.Transition separation incentive payments.
Sec.3527.Labor-management relations.
Sec.3528.Availability of Panama Canal Revolving Fund for severance pay 
          for certain employees separated by Panama Canal Authority 
          after Canal Transfer Date.

Part II--Transition Matters Relating to Operation and Administration of 
                                  Canal

Sec.3541.Establishment of procurement system and Board of Contract 
          Appeals.
Sec.3542.Transactions with the Panama Canal Authority.
Sec.3543.Time limitations on filing of claims for damages.
Sec.3544.Tolls for small vessels.
Sec.3545.Date of actuarial evaluation of FECA liability.
Sec.3546.Appointment of notaries public.
Sec.3547.Commercial services.
Sec.3548.Transfer from President to Commission of certain regulatory 
          functions relating to employment classification appeals.
Sec.3549.Enhanced printing authority.
Sec.3550.Technical and conforming amendments.

                  TITLE XXXVI--MARITIME ADMINISTRATION

Sec.3601.Authorization of appropriations for fiscal year 1998.
Sec.3602.Repeal of obsolete annual report requirement concerning 
          relative cost of shipbuilding in the various coastal districts 
          of the United States.
Sec.3603.Provisions relating to maritime security fleet program.
Sec.3604.Authority to utilize replacement vessels and capacity.
Sec.3605.Authority to convey National Defense Reserve Fleet vessel.
Sec.3606.Determination of gross tonnage for purposes of tank vessel 
          double hull requirements.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               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.
Sec. 109. Defense Export Loan Guarantee Program.

                        Subtitle B--Army Programs

Sec. 111. Army helicopter modernization plan.
Sec. 112. Multiyear procurement authority for specified Army programs.
Sec. 113. M113 vehicle modifications.

                        Subtitle C--Navy Programs

Sec. 121. New Attack Submarine program.
Sec. 122. CVN-77 nuclear aircraft carrier program.
Sec. 123. Exclusion from cost limitation for Seawolf submarine program.

                     Subtitle D--Air Force Programs

Sec. 131. Authorization for B-2 bomber program.
Sec. 132. ALR radar warning receivers.
Sec. 133. Analysis of requirements for replacement of engines on 
          military aircraft derived from Boeing 707 aircraft.

                        Subtitle E--Other Matters

Sec. 141. Pilot program on sales of manufactured articles and services 
          of certain Army industrial facilities without regard to 
          availability from domestic sources.
Sec. 142. NATO Joint Surveillance/Target Attack Radar System.

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for procurement for the Army as follows:
        (1) For aircraft, $1,316,233,000.
        (2) For missiles, $742,639,000.
        (3) For weapons and tracked combat vehicles, $1,297,641,000.
        (4) For ammunition, $1,011,193,000.
        (5) For other procurement, $2,566,208,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 1998 for procurement for the Navy as follows:
        (1) For aircraft, $6,437,330,000.
        (2) For weapons, including missiles and torpedoes, 
    $1,089,443,000.
        (3) For shipbuilding and conversion, $8,195,269,000.
        (4) For other procurement, $2,970,867,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 1998 for procurement for the Marine Corps in the amount 
of $460,081,000.
    (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 $364,744,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for procurement for the Air Force as follows:
        (1) For aircraft, $6,425,749,000.
        (2) For missiles, $2,376,301,000.
        (3) For ammunition, $398,534,000.
        (4) For other procurement, $6,543,580,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for Defense-wide procurement in the amount of $2,057,150,000.

SEC. 105. RESERVE COMPONENTS.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
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, $70,000,000.
        (2) For the Air National Guard, $303,000,000.
        (3) For the Army Reserve, $75,000,000.
        (4) For the Naval Reserve, $80,000,000.
        (5) For the Air Force Reserve, $50,000,000.
        (6) For the Marine Corps Reserve, $65,000,000.

SEC. 106. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for procurement for the Inspector General of the Department of Defense 
in the amount of $1,800,000.

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

    There is hereby authorized to be appropriated for fiscal year 1998 
the amount of $600,700,000 for--
        (1) the destruction of lethal chemical agents and munitions in 
    accordance with section 1412 of the Department of Defense 
    Authorization Act, 1986 (50 U.S.C. 1521); and
        (2) the destruction of chemical warfare materiel of the United 
    States that is not covered by section 1412 of such Act.

SEC. 108. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
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 $274,068,000.

SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for the Department of Defense for carrying out the Defense Export Loan 
Guarantee Program under section 2540 of title 10, United States Code, 
in the total amount of $1,231,000.

                       Subtitle B--Army Programs

SEC. 111. ARMY HELICOPTER MODERNIZATION PLAN.

    (a) Limitation.--Not more than 80 percent of the total of the 
amounts authorized to be appropriated pursuant to section 101(1), 
105(1), and 105(3) for modifications or upgrades of helicopters may be 
obligated before the date that is 30 days after the date on which the 
Secretary of the Army submits to the congressional defense committees a 
comprehensive plan for the modernization of the Army's helicopter 
fleet.
    (b) Content of Plan.--The plan required by subsection (a) shall 
include the following:
        (1) A detailed assessment of the Army's present and future 
    helicopter requirements and present and future helicopter 
    inventory, including number of aircraft, age of aircraft, 
    availability of spare parts, flight hour costs, roles and functions 
    assigned to the fleet as a whole and to its individual types of 
    aircraft, and the mix of active component aircraft and reserve 
    component aircraft in the fleet.
        (2) Estimates and analysis of requirements and funding proposed 
    for procurement of new aircraft.
        (3) An analysis of the requirements for and funding proposed 
    for extended service plans or service life extension plans for 
    fleet aircraft.
        (4) A plan for retiring aircraft no longer required or capable 
    of performing assigned functions, including a discussion of 
    opportunities to eliminate older aircraft models and to focus 
    future funding on current or future generation aircraft.
        (5) The implications of the plan for the defense industrial 
    base.
    (c) Relationship to Future-Years Defense Program.--The Secretary of 
the Army shall design the plan under subsection (a) so that the plan 
could be implemented within the funding levels expected to be available 
for Army aircraft programs in the next future-years defense program to 
be submitted to Congress pursuant to section 221(a) of title 10, United 
States Code. The Secretary shall include in the plan a certification 
that the program of the Army prepared for inclusion in the future-years 
defense program submitted to Congress in 1998 pursuant to section 
221(a) of title 10, United States Code, included full funding for 
implementation of the plan.

SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR SPECIFIED ARMY PROGRAMS.

    (a) AH-64D Longbow Apache Fire Control Radar.--Beginning with the 
fiscal year 1998 program year, the Secretary of the Army may, in 
accordance with section 2306b of title 10, United States Code, enter 
into a multiyear procurement contract for procurement of the AH-64D 
Longbow Apache fire control radar.
    (b) Medium Tactical Vehicles.--Beginning with the fiscal year 1998 
program year, the Secretary of the Army may, in accordance with section 
2306b of title 10, United States Code, enter into a multiyear 
procurement contract for procurement of vehicles of the Family of 
Medium Tactical Vehicles. The contract may be for a term of four years 
and may include an option to extend the contract for one additional 
year.

SEC. 113. M113 VEHICLE MODIFICATIONS.

    Of the amount made available for the Army pursuant to section 
101(3), $35,244,000 shall be available only for the procurement and 
installation of A3 upgrade kits for the M113 vehicle.

                       Subtitle C--Navy Programs

SEC. 121. NEW ATTACK SUBMARINE PROGRAM.

    (a) Amounts Authorized From SCN Account.--Of the amounts authorized 
to be appropriated by section 102(a)(3) for fiscal year 1998, 
$2,599,800,000 is available for the New Attack Submarine Program.
    (b) Contract Authority.--(1) The Secretary of the Navy may enter 
into a contract for the procurement of four submarines under the New 
Attack Submarine program.
    (2) Any contract entered into under paragraph (1)--
        (A) shall, notwithstanding section 2304(k) of title 10, United 
    States Code, be awarded to one of the two eligible shipbuilders as 
    the prime contractor on the condition that the prime contractor 
    enter into one or more subcontracts (under such prime contract) 
    with the other of the two eligible shipbuilders as contemplated in 
    the New Attack Submarine Team Agreement; and
        (B) shall provide for--
            (i) construction of the first submarine in fiscal year 
        1998; and
            (ii) advance construction and advance procurement of 
        materiel for the second, third, and fourth submarines in fiscal 
        year 1998.
    (3) The following shipbuilders are eligible for a contract under 
this subsection:
        (A) The Electric Boat Corporation.
        (B) The Newport News Shipbuilding and Drydock Company.
    (4) In paragraph (2)(A), the term ``New Attack Submarine Team 
Agreement'' means the agreement known as the Team Agreement between 
Electric Boat Corporation and Newport News Shipbuilding and Drydock 
Company, dated February 25, 1997, that was submitted to Congress by the 
Secretary of the Navy on March 31, 1997.
    (c) Limitation of Liability.--If a contract entered into under this 
section is terminated, the United States shall not be liable for 
termination costs in excess of the total amount appropriated for the 
New Attack Submarine program.
    (d) Repeals of Superseded Provisions of Previous Defense 
Authorization Laws.--(1) Section 131 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
206) is amended--
        (A) in subsection (a)(1)(B)--
            (i) in clause (i), by striking out ``, which shall be built 
        by Electric Boat Division''; and
            (ii) in clause (ii), by striking out ``, which shall be 
        built by Newport News Shipbuilding''; and
        (B) in subsection (b), by striking out paragraph (1).
    (2) Section 121 of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2441) is amended--
        (A) in subsection (a)--
            (i) in paragraph (1)(B), by striking out ``to be built by 
        Electric Boat Division''; and
            (ii) in paragraph (1)(C), by striking out ``to be built by 
        Newport News Shipbuilding'';
        (B) in subsection (d), by striking out paragraph (2);
        (C) in subsection (e), by striking out paragraph (1); and
        (D) in subsection (g), by striking out ``the committees 
    specified in subsection (e)(1)'' in paragraphs (3) and (4) and 
    inserting in lieu thereof ``the Committee on Armed Services of the 
    Senate and the Committee on National Security of the House of 
    Representatives''.
    (e) Inapplicability of Superseded Aspects of Attack Submarine 
Development Plan.--The Secretary of Defense and the Secretary of the 
Navy are not required to carry out the portions of the program plan 
submitted under subsection (c) of section 131 of the National Defense 
Authorization Act for Fiscal Year 1996 that are included in the plan 
pursuant to subparagraphs (A), (B), and (E) of paragraph (2) of such 
subsection.

SEC. 122. CVN-77 NUCLEAR AIRCRAFT CARRIER PROGRAM.

    (a) Authorization of Ship.--The Secretary of the Navy is authorized 
to procure the aircraft carrier to be designated CVN-77, subject to the 
availability of appropriations for that purpose.
    (b) Amount Authorized From SCN Account.--Of the amount authorized 
to be appropriated by section 102(a)(3) for fiscal year 1998, 
$50,000,000 is available for the advance procurement and advance 
construction of components (including nuclear components) for the CVN-
77 aircraft carrier program. The Secretary of the Navy may enter into a 
contract or contracts with the shipbuilder and other entities for the 
advance procurement and advance construction of those components.
    (c) Other Funds.--Of the funds authorized to be appropriated under 
this Act for programs, projects, and activities of the military 
departments and Defense Agencies, other than the CVN-77 aircraft 
carrier program, up to $295,000,000 may be made available, as the 
Secretary of Defense may direct, for the CVN-77 aircraft carrier 
program. Authority to make transfers under this subsection is in 
addition to the transfer authority provided in section 1001.
    (d) Management of Funds.--The Secretary of the Navy shall obligate 
and expend the funds available for advance procurement and advance 
construction of components for the CVN-77 aircraft carrier program for 
fiscal year 1998 in a manner that is designed to result in such cost 
savings as may be required in order to meet the cost limitation 
specified in subsection (f).
    (e) Adjustments to Future-Years Defense Program.--The Secretary of 
Defense shall make such plans for the CVN-77 aircraft carrier program 
as are necessary to attain for the program the cost savings that are 
contemplated for the procurement of the CVN-77 aircraft carrier in the 
March 1997 procurement plan.
    (f) Limitation on Total Cost of Procurement.--(1) The Secretary of 
the Navy shall structure the program for the procurement of the CVN-77 
aircraft carrier, and shall manage that program, so that the total cost 
of the procurement of the CVN-77 aircraft carrier does not exceed 
$4,600,000,000 (such amount being the estimated cost for the 
procurement of the CVN-77 aircraft carrier in the March 1997 
procurement plan).
    (2) The Secretary of the Navy may adjust the amount set forth in 
paragraph (1) for the CVN-77 aircraft carrier program by the following:
        (A) The amounts of outfitting costs and post-delivery costs 
    incurred for the program.
        (B) The amounts of increases or decreases in costs attributable 
    to economic inflation after September 30, 1997.
        (C) The amounts of increases or decreases in costs attributable 
    to compliance with changes in Federal, State, or local laws enacted 
    after September 30, 1997.
        (D) The amounts of increases or decreases in costs of the 
    program that are attributable to new technology built into the CVN-
    77 aircraft carrier, as compared to the technology built into the 
    baseline design of the CVN-76 aircraft carrier.
        (E) The amounts of increases or decreases in costs resulting 
    from changes the Secretary proposes in the funding plan (as 
    contemplated in the March 1997 procurement plan) on which the 
    projected savings are based.
    (3) The Secretary of the Navy shall annually submit to Congress, at 
the same time as the budget is submitted under section 1105(a) of title 
31, United States Code, written notice of any change in the amount set 
forth in paragraph (1) during the preceding fiscal year that the 
Secretary has determined to be associated with a cost referred to in 
paragraph (2).
    (g) March 1997 Procurement Plan Defined.--In this section, the term 
``March 1997 procurement plan'' means the procurement plan for the CVN-
77 aircraft carrier that was submitted to the Navy and Congress by the 
shipbuilder in March 1997.

SEC. 123. EXCLUSION FROM COST LIMITATION FOR SEAWOLF SUBMARINE PROGRAM.

    (a) Authority To Exclude Amounts Appropriated for Canceled 
Vessels.--(1) The Secretary of the Navy may exclude from the 
application of the cost limitation for the Seawolf submarine program 
such amounts, not in excess of $272,400,000, as were appropriated for 
fiscal years 1990, 1991, and 1992 for procurement of Seawolf-class 
submarines that have been canceled.
    (2) For the purposes of this subsection, the term ``cost limitation 
for the Seawolf submarine program'' means the limitation in section 
133(a) of the National Defense Authorization Act for Fiscal Year 1996 
(Public Law 104-106; 110 Stat. 211).
    (b) Determination and Report by Inspector General.--(1) Not later 
than March 30, 1998, the Inspector General of the Department 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 the Inspector General's determination as to whether any 
further exclusion from, adjustment to exclusion from, or increase in 
the dollar amount of the cost limitation referred to in subsection (a) 
will be required.
    (2) The Inspector General shall include in the report the 
following:
        (A) A thorough and comprehensive accounting for the amount of 
    $745,400,000 identified by the Secretary of the Navy as having been 
    obligated or expended for the detailed design for Seawolf-class 
    submarines that have been canceled and for the procurement of 
    nuclear components and construction spare parts for those canceled 
    submarines, including a statement of the current disposition of 
    items specifically purchased using those funds.
        (B) Cost growth, if any, in the cost of construction of the 
    SSN-21, SSN-22, and SSN-23 Seawolf-class submarines that has not 
    been reported to Congress before the date of the report of the 
    Inspector General.
        (C) The current cost estimate of the Secretary of the Navy for 
    completion of the SSN-21, SSN-22, and SSN-23 Seawolf-class 
    submarines.
    (3) The Inspector General shall include in the report such 
supporting information and analyses as the Inspector General considers 
appropriate for aiding in understanding the determination and findings 
of the Inspector General.

                     Subtitle D--Air Force Programs

SEC. 131. AUTHORIZATION FOR B-2 BOMBER PROGRAM.

    (a) Funding Availability.--Of the funds made available for 
procurement of aircraft for the Air Force for fiscal year 1998, the 
amount of $331,000,000 is available for long-lead activities related to 
the procurement of additional B-2 bomber aircraft. However, if the 
President determines that no additional B-2 bombers should be procured 
during fiscal year 1998 and certifies that decision to Congress, the 
funding authorized in the preceding sentence shall be made available to 
modify and repair the existing fleet of B-2 bomber aircraft.
    (b) Secretary of Defense To Preserve Options of President.--The 
Secretary of Defense shall ensure that all appropriate actions are 
taken to preserve the options of the President until the panel to 
review long-range airpower established by section 8131 of the 
Department of Defense Appropriations Act, 1998 (Public Law 105-56; 111 
Stat. 1249), submits its report.

SEC. 132. ALR RADAR WARNING RECEIVERS.

    (a) Cost and Operation Effectiveness Analysis.--The Secretary of 
the Air Force shall conduct a cost and operation effectiveness analysis 
of upgrading the ALR69 radar warning receiver as compared with the 
further acquisition of the ALR56M radar warning receiver.
    (b) Submission to Congress.--The Secretary shall submit the cost 
and operation effectiveness analysis to the congressional defense 
committees not later than April 2, 1998.

SEC. 133. ANALYSIS OF REQUIREMENTS FOR REPLACEMENT OF ENGINES ON 
              MILITARY AIRCRAFT DERIVED FROM BOEING 707 AIRCRAFT.

    (a) Analysis Required.--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 an analysis, to be 
carried out by the Under Secretary of Defense for Acquisition and 
Technology, of the requirements of the Department of Defense for 
replacing engines on the aircraft of the Department of Defense that are 
derived from the Boeing 707 aircraft and the costs of meeting those 
requirements.
    (b) Content.--The analysis shall include the following:
        (1) The number of aircraft described in subsection (a) that are 
    in the inventory of the Department of Defense as of October 1, 
    1997, and the number of such aircraft that are projected to be in 
    the inventory of the Department as of October 1, 2002, as of 
    October 1, 2007, and as of October 1, 2012.
        (2) For each type of such aircraft, the estimated cost of 
    operating the aircraft for each fiscal year beginning with fiscal 
    year 1998 and ending with fiscal year 2014, taking into account 
    historical patterns of usage and projected support costs.
        (3) For each type of such aircraft, the estimated costs and the 
    benefits of replacing the engines on the aircraft, analyzed on the 
    basis of the experience under the limited program for replacing the 
    engines on RC-135 aircraft that was undertaken during fiscal years 
    1995, 1996, and 1997.
        (4) Various plans for replacement of engines that the Under 
    Secretary considers best on the basis of costs and benefits.
    (c) Submission Deadline.--The analysis under subsection (a) shall 
be submitted not later than March 1, 1998.

                       Subtitle E--Other Matters

SEC. 141. PILOT PROGRAM ON SALES OF MANUFACTURED ARTICLES AND SERVICES 
              OF CERTAIN ARMY INDUSTRIAL FACILITIES WITHOUT REGARD TO 
              AVAILABILITY FROM DOMESTIC SOURCES.

    (a) Pilot Program Required.--During fiscal years 1998 and 1999, the 
Secretary of the Army shall carry out a pilot program to test the 
efficacy and appropriateness of selling manufactured articles and 
services of Army industrial facilities under section 4543 of title 10, 
United States Code, without regard to the availability of the articles 
and services from United States commercial sources. In carrying out the 
pilot program, the Secretary may use articles manufactured at, and 
services provided by, not more than three Army industrial facilities.
    (b) Temporary Waiver of Requirement for Determination of 
Unavailability From Domestic Source.--Under the pilot program, the 
Secretary of the Army is not required under section 4543(a)(5) of title 
10, United States Code, to determine whether an article or service is 
available from a commercial source located in the United States in the 
case of any of the following sales for which a solicitation of offers 
is issued during fiscal year 1998 or 1999:
        (1) A sale of articles to be incorporated into a weapon system 
    being procured by the Department of Defense.
        (2) A sale of services to be used in the manufacture of a 
    weapon system being procured by the Department of Defense.
    (c) Review by Inspector General.--The Inspector General of the 
Department of Defense shall review the experience under the pilot 
program under this section and, not later than July 1, 1999, submit to 
Congress a report on the results of the review. The report shall 
contain the following:
        (1) The Inspector General's views regarding the extent to which 
    the waiver under subsection (b) enhances the opportunity for United 
    States manufacturers, assemblers, developers, and other concerns to 
    enter into or participate in contracts and teaming arrangements 
    with Army industrial facilities under weapon system programs of the 
    Department of Defense.
        (2) The Inspector General's views regarding the extent to which 
    the waiver under subsection (b) enhances the opportunity for Army 
    industrial facilities referred to in section 4543(a) of title 10, 
    United States Code, to enter into or participate in contracts and 
    teaming arrangements with United States manufacturers, assemblers, 
    developers, and other concerns under weapon system programs of the 
    Department of Defense.
        (3) The Inspector General's views regarding the effect of the 
    waiver under subsection (b) on the ability of small businesses to 
    compete for the sale of manufactured articles or services in the 
    United States in competitions to enter into or participate in 
    contracts and teaming arrangements under weapon system programs of 
    the Department of Defense.
        (4) Specific examples under the pilot program that support the 
    Inspector General's views.
        (5) Any other information that the Inspector General considers 
    pertinent regarding the effects of the waiver of section 4543(a)(5) 
    of title 10, United States Code, under the pilot program on 
    opportunities for United States manufacturers, assemblers, 
    developers, or other concerns, and for Army industrial facilities, 
    to enter into or participate in contracts and teaming arrangements 
    under weapon system programs of the Department of Defense.
        (6) Any recommendations that the Inspector General considers 
    appropriate regarding continuation or modification of the policy 
    set forth in section 4543(a)(5) of title 10, United States Code.

SEC. 142. NATO JOINT SURVEILLANCE/TARGET ATTACK RADAR SYSTEM.

    (a) Funding.--Amounts authorized to be appropriated under this 
title and title II are available for a NATO alliance ground 
surveillance capability that is based on the Joint Surveillance/Target 
Attack Radar System of the United States, as follows:
        (1) Of the amount authorized to be appropriated under section 
    101(5), $26,153,000.
        (2) Of the amount authorized to be appropriated under section 
    103(1), $10,000,000.
        (3) Of the amount authorized to be appropriated under section 
    201(1), $13,500,000.
        (4) Of the amount authorized to be appropriated under section 
    201(3), $26,061,000.
    (b) Authority.--(1) Subject to paragraph (2), the Secretary of 
Defense may utilize authority under section 2350b of title 10, United 
States Code, for contracting for the purposes of Phase I of a NATO 
Alliance Ground Surveillance capability that is based on the Joint 
Surveillance/Target Attack Radar System of the United States, 
notwithstanding the condition in such section that the authority be 
utilized for carrying out contracts or obligations incurred under 
section 27(d) of the Arms Export Control Act (22 U.S.C. 2767(d)).
    (2) The authority under paragraph (1) applies during the period 
that the conclusion of a cooperative project agreement for a NATO 
Alliance Ground Surveillance capability under section 27(d) of the Arms 
Export Control Act is pending, as determined by the Secretary of 
Defense.
    (c) Modification of Air Force Aircraft.--Amounts available pursuant 
to paragraphs (2) and (4) of subsection (a) may be used to provide for 
modifying two Air Force Joint Surveillance/Target Attack Radar System 
production aircraft to have a NATO Alliance Ground Surveillance 
capability that is based on the Joint Surveillance/Target Attack Radar 
System of the United States.

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Dual-use technology program.
Sec. 204. Reduction in amount for Federally Funded Research and 
          Development Centers.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Manufacturing technology program.
Sec. 212. Report on operational field assessments program.
Sec. 213. Joint Strike Fighter program.
Sec. 214. Kinetic energy tactical anti-satellite technology program.
Sec. 215. Micro-satellite technology development program.
Sec. 216. High altitude endurance unmanned vehicle program.
Sec. 217. F-22 aircraft program.

             Subtitle C--Ballistic Missile Defense Programs

Sec. 231. National Missile Defense Program.
Sec. 232. Budgetary treatment of amounts for procurement for ballistic 
          missile defense programs.
Sec. 233. Cooperative Ballistic Missile Defense program.
Sec. 234. Annual report on threat posed to the United States by weapons 
          of mass destruction, ballistic missiles, and cruise missiles.
Sec. 235. Director of Ballistic Missile Defense Organization.
Sec. 236. Repeal of required deployment dates for core theater missile 
          defense programs.

                        Subtitle D--Other Matters

Sec. 241. Restructuring of National Oceanographic Partnership Program 
          organizations.
Sec. 242. Maintenance and repair of real property at Air Force 
          installations.
Sec. 243. Expansion of eligibility for the Defense Experimental Program 
          to Stimulate Competitive Research.
Sec. 244. Bioassay testing of veterans exposed to ionizing radiation 
          during military service.
Sec. 245. Sense of Congress regarding Comanche program.

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
        (1) For the Army, $4,633,495,000.
        (2) For the Navy, $7,774,877,000.
        (3) For the Air Force, $14,338,934,000.
        (4) For Defense-wide activities, $9,831,646,000, of which--
            (A) $258,183,000 is authorized for the activities of the 
        Director, Test and Evaluation; and
            (B) $27,384,000 is authorized for the Director of 
        Operational Test and Evaluation.

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

    (a) Fiscal Year 1998.--Of the amounts authorized to be appropriated 
by section 201, $3,935,390,000 shall be available for basic research 
and applied research projects.
    (b) Basic Research and Applied Research Defined.--For purposes of 
this section, the term ``basic research and applied research'' means 
work funded in program elements for defense research and development 
under Department of Defense category 6.1 or 6.2.

SEC. 203. DUAL-USE SCIENCE AND TECHNOLOGY PROGRAM.

    (a) Funding 1998.--Of the amounts authorized to be appropriated by 
section 201, $75,000,000 is authorized for dual-use projects.
    (b) Goals.--(1) Subject to paragraph (3), it shall be the objective 
of the Secretary of each military department to obligate for dual-use 
projects in each fiscal year referred to in paragraph (2), out of the 
total amount authorized to be appropriated for such fiscal year for the 
applied research programs of the military department, the percent of 
such amount that is specified for that fiscal year in paragraph (2).
    (2) The objectives for fiscal years under paragraph (1) are as 
follows:
        (A) For fiscal year 1998, 5 percent.
        (B) For fiscal year 1999, 7 percent.
        (C) For fiscal year 2000, 10 percent.
        (D) For fiscal year 2001, 15 percent.
    (3) The Secretary of Defense may establish for a military 
department for a fiscal year an objective different from the objective 
set forth in paragraph (2) if the Secretary--
        (A) determines that compelling national security considerations 
    require the establishment of the different objective; and
        (B) notifies Congress of the determination and the reasons for 
    the determination.
    (c) Designation of Official for Dual-Use Programs.--(1) The 
Secretary of Defense shall designate a senior official in the Office of 
the Secretary of Defense to carry out responsibilities for dual-use 
projects under this subsection. The designated official shall report 
directly to the Under Secretary of Defense for Acquisition and 
Technology.
    (2) The primary responsibilities of the designated official shall 
include developing policy and overseeing the establishment of, and 
adherence to, procedures for ensuring that dual-use projects are 
initiated and administered effectively and that applicable commercial 
technologies are integrated into current and future military systems.
    (3) In carrying out the responsibilities, the designated official 
shall ensure that--
        (A) dual-use projects are consistent with the joint warfighting 
    science and technology plan referred to in section 270 of the 
    National Defense Authorization Act for Fiscal Year 1997 (Public Law 
    104-201; 10 U.S.C. 2501 note); and
        (B) the dual-use projects of the military departments and 
    defense agencies of the Department of Defense are coordinated and 
    avoid unnecessary duplication.
    (d) Financial Commitment of Non-Federal Government Participants.--
The total amount of funds provided by a military department for a dual-
use project entered into by the Secretary of that department shall not 
exceed 50 percent of the total cost of the project. In the case of a 
dual-use project initiated after the date of the enactment of this Act, 
the Secretary may consider in-kind contributions by non-Federal 
participants only to the extent such contributions constitute 50 
percent or less of the share of the project costs by such participants.
    (e) Use of Competitive Procedures.--Funds obligated for a dual-use 
project may be counted toward meeting an objective under subsection (a) 
only if the funds are obligated for a contract, grant, cooperative 
agreement, or other transaction that was entered into through the use 
of competitive procedures.
    (f) Report.--(1) Not later than March 1 of each of 1998, 1999, and 
2000, the Secretary of Defense shall submit a report to the 
congressional defense committees on the progress made by the Department 
of Defense in meeting the objectives set forth in subsection (b) during 
the preceding fiscal year.
    (2) The report for a fiscal year shall contain, at a minimum, the 
following:
        (A) The aggregate value of all contracts, grants, cooperative 
    agreements, or other transactions entered into during the fiscal 
    year for which funding is counted toward meeting an objective under 
    this section, expressed in relationship to the total amount 
    appropriated for the applied research programs in the Department of 
    Defense for that fiscal year.
        (B) For each military department, the value of all contracts, 
    grants, cooperative agreements, or other transactions entered into 
    during the fiscal year for which funding is counted toward meeting 
    an objective under this section, expressed in relationship to the 
    total amount appropriated for the applied research program of the 
    military department for that fiscal year.
        (C) A summary of the cost-sharing arrangements in dual-use 
    projects that were initiated during the fiscal year and are counted 
    toward reaching an objective under this section.
        (D) A description of the regulations, directives, or other 
    procedures that have been issued by the Secretary of Defense or the 
    Secretary of a military department to increase the percentage of 
    the total value of the dual-use projects undertaken to meet or 
    exceed an objective under this section.
        (E) Any recommended legislation to facilitate achievement of 
    objectives under this section.
    (g) Commercial Operations and Support Savings Initiative.--(1) The 
Secretary of Defense shall establish a Commercial Operations and 
Support Savings Initiative (in this subsection referred to as the 
``Initiative'') to develop commercial products and processes that the 
military departments can incorporate into operational military systems 
to reduce costs of operations and support.
    (2) Of the amounts authorized to be appropriated by section 201, 
$50,000,000 is authorized for the Initiative.
    (3) Projects and participants in the Initiative shall be selected 
through the use of competitive procedures.
    (4) The budget submitted to Congress by the President for fiscal 
year 1999 and each fiscal year thereafter pursuant to section 1105(a) 
of title 31, United States Code, shall set forth separately the funding 
request for the Initiative.
    (h) Repeal of Superseded Authority.--Section 203 of the National 
Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 
Stat. 2451) is repealed.
    (i) Definitions.--In this section:
        (1) The term ``applied research program'' means a program of a 
    military department which is funded under the 6.2 Research, 
    Development, Test and Evaluation account of that department.
        (2) The term ``dual-use project'' means a project under a 
    program of a military department or a defense agency under which 
    research or development of a dual-use technology is carried out and 
    the costs of which are shared by the Department of Defense and non-
    Government entities.

SEC. 204. REDUCTION IN AMOUNT FOR FEDERALLY FUNDED RESEARCH AND 
              DEVELOPMENT CENTERS.

    The total of the amounts authorized to be appropriated in section 
201 that are available for Federally Funded Research and Development 
Centers (other than amounts for capital equipment investment) is hereby 
reduced by $42,000,000.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. MANUFACTURING TECHNOLOGY PROGRAM.

    (a) Participation of Manufacturers.--Section 2525(c)(2) of title 
10, United States Code, is amended to read as follows:
    ``(2) In order to promote increased dissemination and use of 
manufacturing technology throughout the national defense technology and 
industrial base, the Secretary shall seek, to the maximum extent 
practicable, the participation of manufacturers of manufacturing 
equipment in the projects under the program.''.
    (b) Five-Year Plan.--Section 2525 of such title is amended by 
adding at the end the following new subsection:
    ``(e) Five-Year Plan.--(1) The Secretary of Defense shall prepare a 
five-year plan for the program which establishes--
        ``(A) the overall manufacturing technology goals, milestones, 
    priorities, and investment strategy for the program; and
        ``(B) for each of the five fiscal years covered by the plan, 
    the objectives of, and funding for the program by, each military 
    department and each Defense Agency participating in the program.
    ``(2) The plan shall include an assessment of the effectiveness of 
the program.
    ``(3) The plan shall be updated annually and shall be included in 
the budget justification documents submitted in support of the budget 
of the Department of Defense for a fiscal year (as included in the 
budget of the President submitted to Congress under section 1105 of 
title 31).''.
    (c) Deadline for First Plan.--The Secretary of Defense shall 
prepare the first five-year plan required under section 2525(e) of such 
title, as added by subsection (b), within 60 days after the date of the 
enactment of this Act.

SEC. 212. REPORT ON OPERATIONAL FIELD ASSESSMENTS PROGRAM.

    (a) Finding.--Congress recognizes the potential value that the 
Department of Defense Operational Field Assessments program, which is 
managed by the Director of Operational Test and Evaluation, provides to 
the commanders of the Unified Combatant Commands with respect to 
assessment of the effectiveness of near-term operational concepts and 
critical operational issues in quick-response operational tests and 
evaluations.
    (b) Report.--Not later than March 30, 1998, the Secretary of 
Defense shall submit to the congressional defense committees a report 
on the Operational Field Assessments program.
    (c) Content of Report.--The report shall contain the following:
        (1) A review of the Operational Field Assessments program which 
    describes the goals and objectives of the program, assessments by 
    the program conducted as of the date of the submission of the 
    report, and the results of those assessments.
        (2) A description of the current management and support 
    structure of the program within the Department of Defense, 
    including a description of how program responsibilities are 
    assigned within the Office of the Secretary of Defense and a 
    description of the roles of the Joint Staff, the commanders of the 
    Unified Combatant Commands, and the military departments.
        (3) An analysis of and recommendations regarding the management 
    structure required within the Office of the Secretary of Defense to 
    ensure that the program is responsive to the mission needs of the 
    commanders of the Unified Combatant Commands.
        (4) The funding plan for the program.
        (5) A description of future plans for the program and funding 
    requirements for those plans.
        (6) Recommendations regarding additional statutory authority 
    that may be required for the program.

SEC. 213. JOINT STRIKE FIGHTER PROGRAM.

    (a) Report.--Not later than February 15, 1998, the Secretary of 
Defense shall submit to the congressional defense committees a report 
on the options for the sequence in which the variants of the joint 
strike fighter are to be produced and fielded.
    (b) Content of Report.--The report shall contain the following:
        (1) A review of the plan for production under the Joint Strike 
    Fighter Program that was used by the Department of Defense for 
    developing the funding estimates for the fiscal year 1999 budget 
    request for the Department of Defense.
        (2) An estimate of the costs, and an analysis of the costs and 
    benefits, of producing the joint strike fighter variants in a 
    sequence that provides for fielding of the naval variant of the 
    aircraft first.
        (3) A comparison of the costs and benefits of the various 
    options for the sequence for fielding the variants of the joint 
    strike fighter that the Secretary of Defense considers likely to be 
    the options from among which a sequence for fielding is selected, 
    including a discussion of the effects that selection of each such 
    option would have on the costs and rates of production of the units 
    of F/A-18E/F and F-22 aircraft that are in production when the 
    Joint Strike Fighter Program proceeds into production.
        (4) A certification that the Joint Strike Fighter Program 
    contains sufficient funding to carry out an alternate engine 
    development program that includes flight qualification of an 
    alternate engine in a joint strike fighter airframe.
    (c) Limitation on Use of Funds Pending Submission of Report.--Not 
more than 90 percent of the total amount authorized to be appropriated 
under this Act for the Joint Strike Fighter Program may be obligated 
until the date that is 30 days after the date on which the 
congressional defense committees receive the report required under this 
section.
    (d) Fiscal Year 1998 Budget Defined.--In this section, the term 
``fiscal year 1999 budget request for the Department of Defense'' means 
the budget estimates for the Department of Defense for fiscal year 1999 
that were submitted to Congress by the Secretary of Defense in 
connection with the submission of the budget for fiscal year 1998 to 
Congress under section 1105 of title 31, United States Code.

SEC. 214. KINETIC ENERGY TACTICAL ANTI-SATELLITE TECHNOLOGY PROGRAM.

    Of the funds authorized to be appropriated under section 201(4), 
$37,500,000 shall be available for the kinetic energy tactical anti-
satellite technology program.

SEC. 215. MICRO-SATELLITE TECHNOLOGY DEVELOPMENT PROGRAM.

    (a) Establishment of Micro-Satellite Technology Development 
Program.--The Secretary of Defense shall restructure the Clementine 2 
micro-satellite development program into a micro-satellite technology 
development program that supports a range of space mission areas.
    (b) Report.--Not later than February 15, 1998, the Secretary of 
Defense shall submit to the congressional defense committees a report 
describing the structure and objectives of the micro-satellite 
technology development program established under subsection (a) and how 
the program can benefit existing or future space systems or 
architectures.

SEC. 216. HIGH ALTITUDE ENDURANCE UNMANNED VEHICLE PROGRAM.

    (a) Limitation on Total Cost of Advanced Concept Technology 
Demonstration.--The total amount obligated or expended for advanced 
concept technology demonstration under the High Altitude Endurance 
Unmanned Vehicle Program for fiscal year 1998 through fiscal year 2003 
may not exceed $476,826,000.
    (b) Limitation on Procurement.--The Secretary of Defense may not 
procure any high altitude endurance unmanned vehicles, other than the 
currently planned vehicles, until the completion of the testing 
identified in phase II of the test and demonstration plan for the 
advanced concept technology demonstration for the vehicles.
    (c) Limitation on Proceeding.--The High Altitude Endurance Unmanned 
Vehicle Program may not proceed beyond advanced concept technology 
demonstration until the Secretary of Defense--
        (1) provides to Congress a firm unit cost (referred to in this 
    section as the ``fly away cost'') for each of the currently planned 
    vehicles; and
        (2) certifies to Congress the military suitability and the 
    worth of each such vehicle.
    (d) GAO Review.--(1) The Comptroller General shall review the High 
Altitude Endurance Unmanned Vehicle Program for purposes of determining 
whether the average fly away cost for each vehicle is within the cost 
goal under the program of $10,000,000.
    (2) The Secretary of Defense and the prime contractors under the 
High Altitude Endurance Unmanned Vehicle Program shall provide the 
Comptroller General with such information on the program as the 
Comptroller considers necessary to make the determination under 
paragraph (1).
    (e) Currently Planned Vehicles.--In this section, the term 
``currently planned vehicles'' means the four Dark Star air vehicles 
and the five Global Hawk air vehicles that have been approved for 
procurement by the Secretary of Defense as of the date of the enactment 
of this Act.

SEC. 217. F-22 AIRCRAFT PROGRAM.

    (a) Limitation on Total Cost of Engineering and Manufacturing 
Development.--The total amount obligated or expended for engineering 
and manufacturing development under the F-22 aircraft program may not 
exceed $18,688,000,000.
    (b) Limitation on Total Cost of Production.--The total amount 
obligated or expended for the F-22 production program may not exceed 
$43,400,000,000.
    (c) Adjustment of Limitation Amounts.--The Secretary of the Air 
Force shall adjust the amounts of the limitations set forth in 
subsections (a) and (b) by the following amounts:
        (1) The amounts of increases or decreases in costs attributable 
    to economic inflation after September 30, 1997.
        (2) The amounts of increases or decreases in costs attributable 
    to compliance with changes in Federal, State, or local laws enacted 
    after September 30, 1997.
    (d) Annual GAO Review.--(1) Not later than March 15 of each year, 
the Comptroller General shall review the F-22 aircraft program and 
submit to Congress a report on the results of the review. The 
Comptroller General shall also submit to Congress for each report a 
certification regarding whether the Comptroller General has had access 
to sufficient information to make informed judgments on the matters 
covered by the report.
    (2) The report submitted on the program each year shall include the 
following:
        (A) The extent to which engineering and manufacturing 
    development under the program is meeting the goals established for 
    engineering and manufacturing development under the program, 
    including the performance, cost, and schedule goals.
        (B) The status of modifications expected to have a significant 
    effect on cost or performance of F-22 aircraft.
        (C) The plan for engineering and manufacturing development 
    (leading to production) under the program for the fiscal year that 
    begins in the following year.
        (D) A conclusion regarding whether the plan referred to in 
    subparagraph (C) is consistent with the limitation in subsection 
    (a).
        (E) A conclusion regarding whether engineering and 
    manufacturing development (leading to production) under the program 
    is likely to be completed at a total cost not in excess of the 
    amount specified in subsection (a).
    (3) The Comptroller General shall submit the first report under 
this subsection not later than March 15, 1998. No report is required 
under this subsection after engineering and manufacturing development 
under the program has been completed.
    (e) Requirement To Support Annual GAO Review.--The Secretary of 
Defense and the prime contractors under the F-22 aircraft program shall 
provide the Comptroller General with such information on the program as 
the Comptroller General considers necessary to carry out the 
responsibilities under subsection (d).
    (f) Limitation on Obligation of Funds.--Of the total amount 
authorized to be appropriated for the F-22 aircraft program for a 
fiscal year, not more than 90 percent of the amount may be obligated 
until the Comptroller General submits to Congress--
        (1) the report required to be submitted in that fiscal year 
    under subsection (d); and
        (2) a certification regarding whether the Comptroller General 
    has had access to sufficient information to make informed judgments 
    on the matters covered by the report.

             Subtitle C--Ballistic Missile Defense Programs

SEC. 231. NATIONAL MISSILE DEFENSE PROGRAM.

    (a) Program Structure.--To preserve the option of achieving an 
initial operational capability in fiscal year 2003, the Secretary of 
Defense shall ensure that the National Missile Defense Program is 
structured and programmed for funding so as to support a test, in 
fiscal year 1999, of an integrated national missile defense system that 
is representative of the national missile defense system architecture 
that could achieve initial operational capability in fiscal year 2003.
    (b) Elements of NMD System.--The national missile defense system 
architecture specified in subsection (a) shall consist of the following 
elements:
        (1) An interceptor system that optimizes defensive coverage of 
    the continental United States, Alaska, and Hawaii against limited 
    ballistic missile attack (whether accidental, unauthorized, or 
    deliberate).
        (2) Ground-based radars.
        (3) Space-based sensors.
        (4) Battle management, command, control, and communications 
    (BM/C<SUP>3</SUP>).
    (c) Plan for NMD System Development and Deployment.--Not later than 
February 15, 1998, the Secretary of Defense shall submit to the 
congressional defense committees a plan for the development and 
deployment of a national missile defense system that could achieve 
initial operational capability in fiscal year 2003. The plan shall 
include the following matters:
        (1) A detailed description of the system architecture selected 
    for development.
        (2) A discussion of the justification for the selection of that 
    particular architecture.
        (3) The Secretary's estimate of the amounts of the 
    appropriations that would be necessary for research, development, 
    test, evaluation, and for procurement for each of fiscal years 1999 
    through 2003 in order to achieve an initial operational capability 
    of the system architecture in fiscal year 2003.
        (4) For each activity necessary for the development and 
    deployment of the national missile defense system architecture 
    selected by the Secretary that would at some point conflict with 
    the terms of the ABM Treaty, if any--
            (A) a description of the activity;
            (B) a description of the point at which the activity would 
        conflict with the terms of the ABM Treaty;
            (C) the legal analysis justifying the Secretary's 
        determination regarding the point at which the activity would 
        conflict with the terms of the ABM Treaty; and
            (D) an estimate of the time at which such point would be 
        reached in order to achieve a test of an integrated missile 
        defense system in fiscal year 1999 and initial operational 
        capability of such a system in fiscal year 2003.
    (d) Funding for Fiscal Year 1998.--Of the funds authorized to be 
appropriated under section 201(4), $978,091,000 shall be available for 
the National Missile Defense Program.
    (e) ABM Treaty Defined.--In this section, 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, signed at Moscow on May 26, 1972, and includes the Protocol to 
that treaty, signed at Moscow on July 3, 1974.

SEC. 232. BUDGETARY TREATMENT OF AMOUNTS FOR PROCUREMENT FOR BALLISTIC 
              MISSILE DEFENSE PROGRAMS.

    (a) Requirement for Inclusion in Budget of BMDO.--(1) Chapter 9 of 
title 10, United States Code, is amended by inserting after section 222 
the following new section:

``Sec. 224. Ballistic missile defense programs: display of amounts for 
            procurement

    ``(a) Requirement.--Any amount in the budget submitted to Congress 
under section 1105 of title 31 for any fiscal year for procurement for 
a Department of Defense missile defense program described in subsection 
(b) shall be set forth under the account of the Department of Defense 
for Defense-wide procurement and, within that account, under the 
subaccount (or other budget activity level) for the Ballistic Missile 
Defense Organization.
    ``(b) Covered Programs.--Subsection (a) applies to the following 
missile defense programs of the Department of Defense:
        ``(1) The National Missile Defense Program.
        ``(2) Any system that is part of the core theater missile 
    defense program.
        ``(3) Any other ballistic missile defense program that enters 
    production after the date of the enactment of this section and for 
    which research, development, test, and evaluation was carried out 
    by the Ballistic Missile Defense Organization.
    ``(c) Core Theater Ballistic Missile Defense Program.--For purposes 
of this section, the core theater missile defense program consists of 
the systems specified in section 234 of the Ballistic Missile Defense 
Act of 1995 (10 U.S.C. 2431 note).''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 222 the 
following new item:
``224. Ballistic missile defense programs: display of amounts for 
          procurement.''.

    (b) Fiscal Year 1998 Funds.--(1) The Secretary of Defense shall 
transfer to appropriations available to the Ballistic Missile Defense 
Organization for procurement for fiscal year 1998 any amounts that are 
appropriated for procurement for that fiscal year for any of the Armed 
Forces by reason of the transference of certain programs to accounts of 
the Army, Navy, Air Force, and Marine Corps pursuant to Program Budget 
Decision 224C3, signed by the Under Secretary of Defense (Comptroller) 
on December 23, 1996.
    (2) Any transfer pursuant to paragraph (1) shall not be counted for 
purposes of section 1001.

SEC. 233. COOPERATIVE BALLISTIC MISSILE DEFENSE PROGRAM.

    (a) Requirement for New Program Element.--The Secretary of Defense 
shall establish a program element for the Ballistic Missile Defense 
Organization, to be referred to as the ``Cooperative Ballistic Missile 
Defense Program'', to support technical and analytical cooperative 
efforts between the United States and other nations that contribute to 
United States ballistic missile defense capabilities. Except as 
provided in subsection (b), all international cooperative ballistic 
missile defense programs of the Department of Defense shall be budgeted 
and administered through that program element.
    (b) Authority for Exceptions.--The Secretary of Defense may exclude 
from the program element established pursuant to subsection (a) any 
international cooperative ballistic missile defense program of the 
Department of Defense that after the date of the enactment of this Act 
is designated by the Secretary of Defense (pursuant to applicable 
Department of Defense acquisition regulations and policy) to be managed 
as a separate acquisition program.
    (c) Relationship to Other Program Elements.--The program element 
established pursuant to subsection (a) is in addition to the program 
elements for activities of the Ballistic Missile Defense Organization 
required under section 251 of the National Defense Authorization Act 
for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 233; 10 U.S.C. 221 
note).

SEC. 234. ANNUAL REPORT ON THREAT POSED TO THE UNITED STATES BY WEAPONS 
              OF MASS DESTRUCTION, BALLISTIC MISSILES, AND CRUISE 
              MISSILES.

    (a) Annual Report.--The Secretary of Defense shall submit to 
Congress by January 30 of each year a report on the threats posed to 
the United States and allies of the United States--
        (1) by weapons of mass destruction, ballistic missiles, and 
    cruise missiles; and
        (2) by the proliferation of weapons of mass destruction, 
    ballistic missiles, and cruise missiles.
    (b) Consultation.--Each report submitted under subsection (a) shall 
be prepared in consultation with the Director of Central Intelligence.
    (c) Matters To Be Included.--Each report submitted under subsection 
(a) shall include the following:
        (1) Identification of each foreign country and non-State 
    organization that possesses weapons of mass destruction, ballistic 
    missiles, or cruise missiles, and a description of such weapons and 
    missiles with respect to each such foreign country and non-State 
    organization.
        (2) A description of the means by which any foreign country and 
    non-State organization that has achieved capability with respect to 
    weapons of mass destruction, ballistic missiles, or cruise missiles 
    has achieved that capability, including a description of the 
    international network of foreign countries and private entities 
    that provide assistance to foreign countries and non-State 
    organizations in achieving that capability.
        (3) An examination of the doctrines that guide the use of 
    weapons of mass destruction in each foreign country that possesses 
    such weapons.
        (4) An examination of the existence and implementation of the 
    control mechanisms that exist with respect to nuclear weapons in 
    each foreign country that possesses such weapons.
        (5) Identification of each foreign country and non-State 
    organization that seeks to acquire or develop (indigenously or with 
    foreign assistance) weapons of mass destruction, ballistic 
    missiles, or cruise missiles, and a description of such weapons and 
    missiles with respect to each such foreign country and non-State 
    organization.
        (6) An assessment of various possible timelines for the 
    achievement by foreign countries and non-State organizations of 
    capability with respect to weapons of mass destruction, ballistic 
    missiles, and cruise missiles, taking into account the probability 
    of whether the Russian Federation and the People's Republic of 
    China will comply with the Missile Technology Control Regime, the 
    potential availability of assistance from foreign technical 
    specialists, and the potential for independent sales by foreign 
    private entities without authorization from their national 
    governments.
        (7) For each foreign country or non-State organization that has 
    not achieved the capability to target the United States or its 
    territories with weapons of mass destruction, ballistic missiles, 
    or cruise missiles as of the date of the enactment of this Act, an 
    estimate of how far in advance the United States is likely to be 
    warned before such foreign country or non-State organization 
    achieves that capability.
        (8) For each foreign country or non-State organization that has 
    not achieved the capability to target members of the United States 
    Armed Forces deployed abroad with weapons of mass destruction, 
    ballistic missiles, or cruise missiles as of the date of the 
    enactment of this Act, an estimate of how far in advance the United 
    States is likely to be warned before such foreign country or non-
    State organization achieves that capability.
    (d) Classification.--Each report under subsection (a) shall be 
submitted in classified and unclassified form.

SEC. 235. DIRECTOR OF BALLISTIC MISSILE DEFENSE ORGANIZATION.

    (a) In General.--Subchapter II of chapter 8 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 203. Director of Ballistic Missile Defense Organization

    ``If an officer of the armed forces on active duty is appointed to 
the position of Director of the Ballistic Missile Defense Organization, 
the position shall be treated as having been designated by the 
President as a position of importance and responsibility for purposes 
of section 601 of this title and shall carry the grade of lieutenant 
general or general or, in the case of an officer of the Navy, vice 
admiral or admiral.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by adding at the end the following new item:
``203. Director of Ballistic Missile Defense Organization.''.

SEC. 236. REPEAL OF REQUIRED DEPLOYMENT DATES FOR CORE THEATER MISSILE 
              DEFENSE PROGRAMS.

    Section 234(a) of the Ballistic Missile Defense Act of 1995 
(subtitle C of title II of Public Law 104-106; 110 Stat. 229; 10 U.S.C. 
2431 note) is amended--
        (1) in the matter preceding paragraph (1), by striking out ``, 
    to be carried out so as to achieve the specified capabilities'';
        (2) in paragraph (1), by striking out ``, with a first unit 
    equipped (FUE) during fiscal year 1998'';
        (3) in paragraph (2), by striking out ``Navy Lower Tier (Area) 
    system'' and all that follows through ``fiscal year 1999'' and 
    inserting in lieu thereof ``Navy Area Defense system'';
        (4) in paragraph (3), by striking out ``, with a'' and all that 
    follows through ``fiscal year 2000''; and
        (5) in paragraph (4), by striking out ``Navy Upper Tier'' and 
    all that follows through ``fiscal year 2001'' and inserting in lieu 
    thereof ``Navy Theater Wide system''.

                       Subtitle D--Other Matters

SEC. 241. RESTRUCTURING OF NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM 
              ORGANIZATIONS.

    (a) National Ocean Research Leadership Council.--Section 7902 of 
title 10, United States Code, is amended--
        (1) in subsection (b)--
            (A) by striking out paragraphs (11), (14), (15), (16), and 
        (17); and
            (B) by redesignating paragraphs (12) and (13) as paragraphs 
        (11) and (12), respectively;
        (2) by striking out subsection (d); and
        (3) by redesignating subsections (e), (f), (g), (h), and (i) as 
    subsections (d), (e), (f), (g), and (h), respectively.
    (b) Ocean Research Advisory Panel.--(1) The text of section 7903 of 
such title is amended to read as follows:
    ``(a) Establishment.--The Council shall establish an Ocean Research 
Advisory Panel consisting of not less than 10 and not more than 18 
members appointed by the chairman, including the following:
        ``(1) One member who will represent the National Academy of 
    Sciences.
        ``(2) One member who will represent the National Academy of 
    Engineering.
        ``(3) One member who will represent the Institute of Medicine.
        ``(4) Members selected from among individuals who will 
    represent the views of ocean industries, State governments, 
    academia, and such other views as the chairman considers 
    appropriate.
        ``(5) Members selected from among individuals eminent in the 
    fields of marine science or marine policy, or related fields.
    ``(b) Responsibilities.--The Council shall assign the following 
responsibilities to the Advisory Panel:
        ``(1) To advise the Council on policies and procedures to 
    implement the National Oceanographic Partnership Program.
        ``(2) To advise the Council on selection of partnership 
    projects and allocation of funds for partnership projects for 
    implementation under the program.
        ``(3) To advise the Council on matters relating to national 
    oceanographic data requirements.
        ``(4) Any additional responsibilities that the Council 
    considers appropriate.
    ``(c) Funding.--The Secretary of the Navy annually shall make funds 
available to support the activities of the Advisory Panel.''.
    (2) Section 282(c) of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2473) is amended by 
striking out ``January 1, 1997'' and inserting in lieu thereof 
``January 1, 1998''.
    (c) Conforming Amendments.--Section 282 of the National Defense 
Authorization Act for Fiscal Year 1997 is amended--
        (1) by striking out subsection (b); and
        (2) by redesignating subsections (c), (d), (e), and (f) as 
    subsections (b), (c), (d), and (e), respectively.
    (d) Effective Date.--The amendments made by subsections (a) and (b) 
shall be effective as of September 23, 1996, as if included in section 
282 of Public Law 104-201.

SEC. 242. MAINTENANCE AND REPAIR OF REAL PROPERTY AT AIR FORCE 
              INSTALLATIONS.

    (a) In General.--Chapter 949 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 9782. Maintenance and repair of real property

    ``(a) Allocation of Funds.--The Secretary of the Air Force shall 
allocate funds authorized to be appropriated by a provision described 
in subsection (c) and a provision described in subsection (d) for 
maintenance and repair of real property at military installations of 
the Department of the Air Force without regard to whether the 
installation is supported with funds authorized by a provision 
described in subsection (c) or (d).
    ``(b) Mixing of Funds Prohibited on Individual Projects.--The 
Secretary of the Air Force may not combine funds authorized to be 
appropriated by a provision described in subsection (c) and funds 
authorized to be appropriated by a provision described in subsection 
(d) for an individual project for maintenance and repair of real 
property at a military installation of the Department of the Air Force.
    ``(c) Research, Development, Test, and Evaluation Funds.--The 
provision described in this subsection is a provision of a national 
defense authorization Act that authorizes funds to be appropriated for 
a fiscal year to the Air Force for research, development, test, and 
evaluation.
    ``(d) Operation and Maintenance Funds.--The provision described in 
this subsection is a provision of a national defense authorization Act 
that authorizes funds to be appropriated for a fiscal year to the Air 
Force for operation and maintenance.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:
``9782. Maintenance and repair of real property.''.

SEC. 243. EXPANSION OF ELIGIBILITY FOR THE DEFENSE EXPERIMENTAL PROGRAM 
              TO STIMULATE COMPETITIVE RESEARCH.

    Section 257 of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; U.S.C. 2358 note) is amended by adding 
at the end the following new subsection:
    ``(f) State Defined.--In this section, the term `State' means a 
State of the United States, the District of Columbia, the Commonwealth 
of Puerto Rico, Guam, the Virgin Islands, American Samoa, and the 
Commonwealth of the Northern Mariana Islands.''.

SEC. 244. BIOASSAY TESTING OF VETERANS EXPOSED TO IONIZING RADIATION 
              DURING MILITARY SERVICE.

    (a) Nuclear Test Personnel Program.--Of the amount provided in 
section 201(4), $300,000 shall be available for testing described in 
subsection (b) in support of the Nuclear Test Personnel Program 
conducted by the Defense Special Weapons Agency.
    (b) Covered Testing.--Subsection (a) applies to the third phase of 
bioassay testing of individuals who are radiation-exposed veterans (as 
defined in section 1112(c)(3)(A) of title 38, United States Code) who 
participated in radiation-risk activities (as defined in section 
1112(c)(3)(B) of such title).

SEC. 245. SENSE OF CONGRESS REGARDING COMANCHE PROGRAM.

    It is the sense of Congress that the Department of Defense should--
        (1) evaluate technology transfer and acquisition initiatives 
    within the Army Comanche program that have the potential to 
    increase the efficiency or reduce the risk of the Comanche program; 
    and
        (2) include adequate funding for those initiatives that the 
    Department deems to be meritorious in the future-years defense 
    program (as submitted to Congress under section 221 of title 10, 
    United States Code).

                  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. Fisher House Trust Funds.
Sec. 305. Transfer from National Defense Stockpile Transaction Fund.
Sec. 306. Refurbishment of M1-A1 tanks.
Sec. 307. Operation of prepositioned fleet, National Training Center, 
          Fort Irwin, California.
Sec. 308. Refurbishment and installation of air search radar.
Sec. 309. Contracted training flight services.
Sec. 310. Procurement technical assistance programs.
Sec. 311. Operation of Fort Chaffee, Arkansas.

                  Subtitle B--Military Readiness Issues

Sec. 321. Monthly reports on allocation of funds within operation and 
          maintenance budget subactivities.
Sec. 322. Expansion of scope of quarterly readiness reports.
Sec. 323. Semiannual reports on transfers from high-priority readiness 
          appropriations.
Sec. 324. Annual report on aircraft inventory.
Sec. 325. Administrative actions adversely affecting military training 
          or other readiness activities.
Sec. 326. Common measurement of operations tempo and personnel tempo.
Sec. 327. Inclusion of Air Force depot maintenance as operation and 
          maintenance budget line items.
Sec. 328. Prohibition of implementation of tiered readiness system.
Sec. 329. Report on military readiness requirements of the Armed Forces.
Sec. 330. Assessment of cyclical readiness posture of the Armed Forces.
Sec. 331. Report on military exercises conducted under certain training 
          exercises programs.
Sec. 332. Report on overseas deployments.

                  Subtitle C--Environmental Provisions

Sec. 341. Revision of membership terms for Strategic Environmental 
          Research and Development Program Scientific Advisory Board.
Sec. 342. Amendments to authority to enter into agreements with other 
          agencies in support of environmental technology certification.
Sec. 343. Modifications of authority to store and dispose of nondefense 
          toxic and hazardous materials.
Sec. 344. Annual report on payments and activities in response to fines 
          and penalties assessed under environmental laws.
Sec. 345. Annual report on environmental activities of the Department of 
          Defense overseas.
Sec. 346. Review of existing environmental consequences of the presence 
          of the Armed Forces in Bermuda.
Sec. 347. Sense of Congress on deployment of United States Armed Forces 
          abroad for environmental preservation activities.
Sec. 348. Recovery and sharing of costs of environmental restoration at 
          Department of Defense sites.
Sec. 349. Partnerships for investment in innovative environmental 
          technologies.
Sec. 350. Procurement of recycled copier paper.
Sec. 351. Pilot program for the sale of air pollution emission reduction 
          incentives.

                   Subtitle D--Depot-Level Activities

Sec. 355. Definition of depot-level maintenance and repair.
Sec. 356. Core logistics capabilities of Department of Defense.
Sec. 357. Increase in percentage of depot-level maintenance and repair 
          that may be contracted for performance by non-Government 
          personnel.
Sec. 358. Annual report on depot-level maintenance and repair.
Sec. 359. Requirement for use of competitive procedures in contracting 
          for performance of depot-level maintenance and repair 
          workloads formerly performed at closed or realigned military 
          installations.
Sec. 360. Clarification of prohibition on management of depot employees 
          by constraints on personnel levels.
Sec. 361. Centers of Industrial and Technical Excellence.
Sec. 362. Extension of authority for aviation depots and naval shipyards 
          to engage in defense-related production and services.
Sec. 363. Repeal of a conditional repeal of certain depot-level 
          maintenance and repair laws and a related reporting 
          requirement.
Sec. 364. Personnel reductions, Army depots participating in Army 
          Workload and Performance System.
Sec. 365. Report on allocation of core logistics activities among 
          Department of Defense facilities and private sector 
          facilities.
Sec. 366. Review of use of temporary duty assignments for ship repair 
          and maintenance.
Sec. 367. Sense of Congress regarding realignment of performance of 
          ground communication-electronic workload.

   Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 371. Reorganization of laws regarding commissaries and exchanges 
          and other morale, welfare, and recreation activities.
Sec. 372. Merchandise and pricing requirements for commissary stores.
Sec. 373. Limitation on noncompetitive procurement of brand-name 
          commercial items for resale in commissary stores.
Sec. 374. Treatment of revenues derived from commissary store 
          activities.
Sec. 375. Maintenance, repair, and renovation of Armed Forces Recreation 
          Center, Europe.
Sec. 376. Plan for use of public and private partnerships to benefit 
          morale, welfare, and recreation activities.

                        Subtitle F--Other Matters

Sec. 381. Assistance to local educational agencies that benefit 
          dependents of members of the Armed Forces and Department of 
          Defense civilian employees.
Sec. 382. Center for Excellence in Disaster Management and Humanitarian 
          Assistance.
Sec. 383. Applicability of Federal printing requirements to Defense 
          Automated Printing Service.
Sec. 384. Study and notification requirements for conversion of 
          commercial and industrial type functions to contractor 
          performance.
Sec. 385. Collection and retention of cost information data on converted 
          services and functions.
Sec. 386. Financial assistance to support additional duties assigned to 
          Army National Guard.
Sec. 387. Competitive procurement of printing and duplication services.
Sec. 388. Continuation and expansion of demonstration program to 
          identify overpayments made to vendors.
Sec. 389. Development of standard forms regarding performance work 
          statement and request for proposal for conversion of certain 
          operational functions of military installations.
Sec. 390. Base operations support for military installations on Guam.
Sec. 391. Warranty claims recovery pilot program.
Sec. 392. Program to investigate fraud, waste, and abuse within 
          Department of Defense.
Sec. 393. Multitechnology automated reader card demonstration program.
Sec. 394. Reduction in overhead costs of Inventory Control Points.
Sec. 395. Inventory management.

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
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, $17,174,589,000.
        (2) For the Navy, $21,947,656,000.
        (3) For the Marine Corps, $2,424,645,000.
        (4) For the Air Force, $19,172,985,000.
        (5) For Defense-wide activities, $10,242,607,000.
        (6) For the Army Reserve, $1,207,981,000.
        (7) For the Naval Reserve, $846,711,000.
        (8) For the Marine Corps Reserve, $116,366,000.
        (9) For the Air Force Reserve, $1,631,200,000.
        (10) For the Army National Guard, $2,311,432,000.
        (11) For the Air National Guard, $2,999,782,000.
        (12) For the Defense Inspector General, $136,580,000.
        (13) For the United States Court of Appeals for the Armed 
    Forces, $6,952,000.
        (14) For Environmental Restoration, Army, $375,337,000.
        (15) For Environmental Restoration, Navy, $275,500,000.
        (16) For Environmental Restoration, Air Force, $376,900,000.
        (17) For Environmental Restoration, Defense-wide, $26,900,000.
        (18) For Environmental Restoration, Formerly Used Defense 
    Sites, $202,300,000.
        (19) For Overseas Humanitarian, Disaster, and Civic Aid 
    programs, $47,130,000.
        (20) For Drug Interdiction and Counter-drug Activities, 
    Defense-wide, $666,882,000.
        (21) For the Kaho'olawe Island Conveyance, Remediation, and 
    Environmental Restoration Trust Fund, $10,000,000.
        (22) For Medical Programs, Defense, $9,957,782,000.
        (23) For Cooperative Threat Reduction programs, $382,200,000.
        (24) For Overseas Contingency Operations Transfer Fund, 
    $1,253,900,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
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 Working Capital Funds, $971,952,000.
        (2) For the National Defense Sealift Fund, $1,059,948,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 1998 
from the Armed Forces Retirement Home Trust Fund the sum of $79,977,000 
for the operation of the Armed Forces Retirement Home, including the 
United States Soldiers' and Airmen's Home and the Naval Home.

SEC. 304. FISHER HOUSE TRUST FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 
1998, out of funds in Fisher House Trust Funds not otherwise 
appropriated, for the operation of Fisher houses described in section 
2221(d) of title 10, United States Code, as follows:
        (1) From the Fisher House Trust Fund, Department of the Army, 
    $250,000 for Fisher houses that are located in proximity to medical 
    treatment facilities of the Army.
        (2) From the Fisher House Trust Fund, Department of the Navy, 
    $150,000 for Fisher houses that are located in proximity to medical 
    treatment facilities of the Navy.

SEC. 305. 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 1998 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. 306. REFURBISHMENT OF M1-A1 TANKS.

    Of the amount authorized to be appropriated pursuant to section 
301(1) for operation and maintenance for the Army, $35,000,000 shall be 
available only for refurbishment of M1-A1 tanks under the AIM-XXI 
program if the Secretary of Defense determines that the cost 
effectiveness of the pilot AIM-XXI program is validated through user 
trials conducted at the National Training Center, Fort Irwin, 
California.

SEC. 307. OPERATION OF PREPOSITIONED FLEET, NATIONAL TRAINING CENTER, 
              FORT IRWIN, CALIFORNIA.

    Of the amount authorized to be appropriated pursuant to section 
301(1) for operation and maintenance for the Army, $60,200,000 shall be 
available only to pay costs associated with the operation of the 
prepositioned fleet of equipment during training rotations at the 
National Training Center, Fort Irwin, California.

SEC. 308. REFURBISHMENT AND INSTALLATION OF AIR SEARCH RADAR.

    Of the amount authorized to be appropriated pursuant to section 
301(2) for operation and maintenance for the Navy, $6,000,000 may be 
available for the refurbishment and installation of the AN/SPS-48E air 
search radar for the Ship Self Defense System at the Integrated Ship 
Defense Systems Engineering Center, Naval Surface Warfare Center, 
Wallops Islands, Virginia.

SEC. 309. CONTRACTED TRAINING FLIGHT SERVICES.

    Of the amount authorized to be appropriated pursuant to section 
301(4) for operation and maintenance for the Air Force, $12,000,000 may 
be used for contracted training flight services.

SEC. 310. 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 1998 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. 311. OPERATION OF FORT CHAFFEE, ARKANSAS.

    Of the amount authorized to be appropriated pursuant to section 
301(10) for operation and maintenance for the Army National Guard, 
$6,854,000 may be available for the operation of Fort Chaffee, 
Arkansas.

                 Subtitle B--Military Readiness Issues

SEC. 321. MONTHLY REPORTS ON ALLOCATION OF FUNDS WITHIN OPERATION AND 
              MAINTENANCE BUDGET SUBACTIVITIES.

    (a) In General.--(1) Chapter 9 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 228. Monthly reports on allocation of funds within operation and 
            maintenance budget subactivities

    ``(a) Monthly Report.--The Secretary of Defense shall submit to 
Congress a monthly report on the allocation of appropriations to O&M 
budget activities and to the subactivities of those budget activities. 
Each such report shall be submitted not later than 60 days after the 
end of the month to which the report pertains.
    ``(b) Matters To Be Included.--Each such report shall set forth the 
following for each subactivity of the O&M budget activities:
        ``(1) The amount of budget authority appropriated for that 
    subactivity in the most recent regular Department of Defense 
    Appropriations Act.
        ``(2) The amount of budget authority actually made available 
    for that subactivity, taking into consideration supplemental 
    appropriations, rescissions, and other adjustments required by law 
    or made pursuant to law.
        ``(3) The amount programmed to be expended from such 
    subactivity.
    ``(c) Identification of Certain Fluctuations.--(1) If, in the 
report under this section for a month of a fiscal year after the first 
month of that fiscal year, an amount shown under subsection (b) for a 
subactivity is different by more than $15,000,000 from the 
corresponding amount for that subactivity in the report for the first 
month of that fiscal year, the Secretary shall include in the report 
notice of that difference.
    ``(2) If, in the report under this section for a month of a fiscal 
year after a month for which the report under this section includes a 
notice under paragraph (1), an amount shown under subsection (b) for a 
subactivity is different by more than $15,000,000 from the 
corresponding amount for that subactivity in the most recent report 
that includes a notice under paragraph (1) or this paragraph, the 
Secretary shall include in the report notice of that difference.
    ``(d) Report on Fluctuations.--If a report under this section 
includes a notice under subsection (c), the Secretary shall include in 
the report with each such notice the following:
        ``(1) The reasons for the reallocations of funds resulting in 
    the inclusion of that notice in the report.
        ``(2) Each budget subactivity involved in those reallocations.
        ``(3) The effect of those reallocations on the operation and 
    maintenance activities funded through the subactivity with respect 
    to which the notice is included in the report.
    ``(e) O&M Budget Activity Defined.--For purposes of this section, 
the term `O&M budget activity' means a budget activity within an 
operation and maintenance appropriation of the Department of Defense 
for a fiscal year.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``228. Monthly reports on allocation of funds within operation and 
          maintenance budget subactivities.''.

    (b) Effective Date.--The first report under section 228 of title 
10, United States Code, as added by subsection (a), shall be for the 
month of December 1997.

SEC. 322. EXPANSION OF SCOPE OF QUARTERLY READINESS REPORTS.

    (a) Expanded Reports Required.--(1) Section 482 of title 10, United 
States Code, is amended to read as follows:

``Sec. 482. Quarterly reports: personnel and unit readiness

    ``(a) Quarterly Reports Required.--Not later than 30 days after the 
end of each calendar-year quarter, the Secretary of Defense shall 
submit to Congress a report regarding military readiness. The report 
for a quarter shall contain the information required by subsections 
(b), (d), and (e).
    ``(b) Readiness Problems and Remedial Actions.--Each report shall 
specifically describe--
        ``(1) each readiness problem and deficiency identified using 
    the assessments considered under subsection (c);
        ``(2) planned remedial actions; and
        ``(3) the key indicators and other relevant information related 
    to each identified problem and deficiency.
    ``(c) Consideration of Readiness Assessments.--The information 
required under subsection (b) to be included in the report for a 
quarter shall be based on readiness 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) whose membership 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.
    ``(d) Comprehensive Readiness Indicators for Active Components.--
Each report shall also include information regarding each of the active 
components of the armed forces (and an evaluation of such information) 
with respect to each of the following readiness indicators:
        ``(1) Personnel strength.--
            ``(A) Personnel status, including the extent to which 
        members of the armed forces are serving in positions outside of 
        their military occupational specialty, serving in grades other 
        than the grades for which they are qualified, or both.
            ``(B) Historical data and projected trends in personnel 
        strength and status.
        ``(2) Personnel turbulence.--
            ``(A) Recruit quality.
            ``(B) Borrowed manpower.
            ``(C) Personnel stability.
        ``(3) Other personnel matters.--
            ``(A) Personnel morale.
            ``(B) Recruiting status.
        ``(4) Training.--
            ``(A) Training unit readiness and proficiency.
            ``(B) Operations tempo.
            ``(C) Training funding.
            ``(D) Training commitments and deployments.
        ``(5) Logistics--equipment fill.--
            ``(A) Deployed equipment.
            ``(B) Equipment availability.
            ``(C) Equipment that is not mission capable.
            ``(D) Age of equipment.
            ``(E) Condition of nonpacing items.
        ``(6) Logistics--equipment maintenance.--
            ``(A) Maintenance backlog.
        ``(7) Logistics--supply.--
            ``(A) Availability of ordnance and spares.
            ``(B) Status of prepositioned equipment.
    ``(e) Unit Readiness Indicators.--Each report shall also include 
information regarding the readiness of each active component unit of 
the armed forces at the battalion, squadron, or an equivalent level (or 
a higher level) that received a readiness rating of C-3 (or below) for 
any month of the calendar-year quarter covered by the report. With 
respect to each such unit, the report shall separately provide the 
following information:
        ``(1) The unit designation and level of organization.
        ``(2) The overall readiness rating for the unit for the quarter 
    and each month of the quarter.
        ``(3) The resource area or areas (personnel, equipment and 
    supplies on hand, equipment condition, or training) that adversely 
    affected the unit's readiness rating for the quarter.
        ``(4) The reasons why the unit received a readiness rating of 
    C-3 (or below).
    ``(f) Classification of Reports.--A report under this section shall 
be submitted in unclassified form. To the extent the Secretary of 
Defense determines necessary, the report may also be submitted in 
classified form.''.
    (2) The item relating to section 482 in the table of sections at 
the beginning of chapter 23 of such title is amended to read as 
follows:
``482. Quarterly reports: personnel and unit readiness.''.

    (b) Implementation Plan To Examine Readiness Indicators.--Not later 
than January 15, 1998, the Secretary of Defense shall submit to the 
congressional defense committees a plan--
        (1) specifying the manner in which the Secretary will implement 
    the additional reporting requirement of subsection (d) of section 
    482 of title 10, United States Code, as added by this section; and
        (2) specifying the criteria proposed to be used to evaluate the 
    readiness indicators identified in such subsection (d).
    (c) Limitation Pending Receipt of Implementation Plan.--Of the 
amount available for fiscal year 1998 for operation and support 
activities of the Office of the Secretary of Defense, 10 percent may 
not be obligated until after the date on which the implementation plan 
required by subsection (b) is submitted.
    (d) Transition To Complete Report.--Until the report under section 
482 of title 10, United States Code, as amended by subsection (a), for 
the third quarter of 1998 is submitted, the Secretary of Defense may 
omit the information required by subsection (d) of such section if the 
Secretary determines that it is impracticable to comply with such 
subsection with regard to the preceding reports.

SEC. 323. SEMIANNUAL REPORTS ON TRANSFERS FROM HIGH- PRIORITY READINESS 
              APPROPRIATIONS.

    (a) Reports Required.--Chapter 23 of title 10, United States Code, 
is amended by adding at the end the following new section:

``Sec. 483. Reports on transfers from high-priority readiness 
            appropriations

    ``(a) Annual Reports.--Not later than the date on which the 
President submits the budget for a fiscal year to Congress pursuant to 
section 1105 of title 31, the Secretary of Defense shall submit 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 report on transfers 
during the preceding fiscal year from funds available for each covered 
budget activity.
    ``(b) Midyear Reports.--Not later than June 1 of each fiscal year, 
the Secretary of Defense shall submit to the congressional committees 
specified in subsection (a) a report on transfers, during the first six 
months of that fiscal year, from funds available for each covered 
budget activity.
    ``(c) Matters To Be Included.--In each report under subsection (a) 
or (b), the Secretary of Defense 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 Activity Defined.--In this section, the term 
`covered budget activity' means each of 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) All subactivities under the category of Land Forces.
            ``(B) Land Forces Depot Maintenance.
            ``(C) Base Support.
            ``(D) Maintenance of Real Property.
        ``(2) The Air Operations 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) Fleet Air Training.
            ``(C) Aircraft Depot Maintenance.
            ``(D) Base Support.
            ``(E) Maintenance of Real Property.
        ``(3) The Ship Operations 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 Ship Operations.
            ``(B) Ship Operational Support and Training.
            ``(C) Ship Depot Maintenance.
            ``(D) Base Support.
            ``(E) Maintenance of Real Property.
        ``(4) The Expeditionary Forces budget activity groups (known as 
    `subactivities') within the Operating Forces budget activity of the 
    annual Operation and Maintenance, Marine Corps, appropriation that 
    are designated as follows:
            ``(A) Operational Forces.
            ``(B) Depot Maintenance.
            ``(C) Base Support.
            ``(D) Maintenance of Real Property.
        ``(5) The Air Operations and Combat Related Operations budget 
    activity groups (known as `subactivities') within the Operating 
    Forces budget activity of the annual Operation and Maintenance, Air 
    Force, appropriation that are designated as follows:
            ``(A) Primary Combat Forces.
            ``(B) Primary Combat Weapons.
            ``(C) Air Operations Training.
            ``(D) Depot Maintenance.
            ``(E) Base Support.
            ``(F) Maintenance of Real Property.
        ``(6) The Mobility Operations budget activity group (known as a 
    `subactivity') within the Mobilization budget activity of the 
    annual Operation and Maintenance, Air Force, appropriation that is 
    designated as Airlift Operations.
    ``(e) Termination.--The requirements specified in subsections (a) 
and (b) shall terminate upon the submission of the annual report under 
subsection (a) covering fiscal year 2000.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:
``483. Reports on transfers from high-priority readiness 
          appropriations.''.

SEC. 324. ANNUAL REPORT ON AIRCRAFT INVENTORY.

    (a) Annual Report Required.--(1) Chapter 23 of title 10, United 
States Code, is amended by inserting after section 483, as added by 
section 323, the following new section:

``Sec. 484. Annual report on aircraft inventory

    ``(a) Annual Report.--The Under Secretary of Defense (Comptroller) 
shall submit to Congress each year a report on the aircraft in the 
inventory of the Department of Defense. The Under Secretary shall 
submit the report when the President submits the budget to Congress 
under section 1105(a) of title 31.
    ``(b) Content.--The report shall set forth, in accordance with 
subsection (c), the following information:
        ``(1) The total number of aircraft in the inventory.
        ``(2) The total number of the aircraft in the inventory that 
    are active, stated in the following categories (with appropriate 
    subcategories for mission aircraft, training aircraft, dedicated 
    test aircraft, and other aircraft):
            ``(A) Primary aircraft.
            ``(B) Backup aircraft.
            ``(C) Attrition and reconstitution reserve aircraft.
        ``(3) The total number of the aircraft in the inventory that 
    are inactive, stated in the following categories:
            ``(A) Bailment aircraft.
            ``(B) Drone aircraft.
            ``(C) Aircraft for sale or other transfer to foreign 
        governments.
            ``(D) Leased or loaned aircraft.
            ``(E) Aircraft for maintenance training.
            ``(F) Aircraft for reclamation.
            ``(G) Aircraft in storage.
        ``(4) The aircraft inventory requirements approved by the Joint 
    Chiefs of Staff.
    ``(c) Display of Information.--The report shall specify the 
information required by subsection (b) separately for the active 
component of each armed force and for each reserve component of each 
armed force and, within the information set forth for each such 
component, shall specify the information separately for each type, 
model, and series of aircraft provided for in the future-years defense 
program submitted to Congress.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 483, as added 
by section 323, the following new item:
``484. Report on aircraft inventory.''.

    (b) Special Submission Date for First Report.--The Under Secretary 
of Defense (Comptroller) shall submit the first report required under 
section 484 of title 10, United States Code (as added by subsection 
(a)), not later than January 30, 1998.
    (c) Modification of Budget Data Exhibits.--The Under Secretary of 
Defense (Comptroller) shall ensure that aircraft budget data exhibits 
of the Department of Defense that are submitted to Congress display 
total numbers of active aircraft where numbers of primary aircraft or 
primary authorized aircraft are displayed in those exhibits.

SEC. 325. ADMINISTRATIVE ACTIONS ADVERSELY AFFECTING MILITARY TRAINING 
              OR OTHER READINESS ACTIVITIES.

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

``Sec. 2014. Administrative actions adversely affecting military 
            training or other readiness activities

    ``(a) Congressional Notification.--Whenever an official of an 
Executive agency takes or proposes to take an administrative action 
that, as determined by the Secretary of Defense in consultation with 
the Chairman of the Joint Chiefs of Staff, affects training or any 
other readiness activity in a manner that has or would have a 
significant adverse effect on the military readiness of any of the 
armed forces or a critical component thereof, the Secretary shall 
submit a written notification of the action and each significant 
adverse effect to the head of the Executive agency taking or proposing 
to take the administrative action. At the same time, the Secretary 
shall transmit a copy of the notification to the President, the 
Committee on Armed Services of the Senate, and the Committee on 
National Security of the House of Representatives.
    ``(b) Notification To Be Prompt.--(1) Subject to paragraph (2), the 
Secretary shall submit a written notification of an administrative 
action or proposed administrative action required by subsection (a) as 
soon as possible after the Secretary becomes aware of the action or 
proposed action.
    ``(2) The Secretary shall prescribe policies and procedures to 
ensure that the Secretary receives information on an administrative 
action or proposed administrative action described in subsection (a) 
promptly after Department of Defense personnel receive notice of such 
an action or proposed action.
    ``(c) Consultation Between Secretary and Head of Executive 
Agency.--Upon notification with respect to an administrative action or 
proposed administrative action under subsection (a), the head of the 
Executive agency concerned shall--
        ``(1) respond promptly to the Secretary; and
        ``(2) consistent with the urgency of the training or readiness 
    activity involved and the provisions of law under which the 
    administrative action or proposed administrative action is being 
    taken, seek to reach an agreement with the Secretary on immediate 
    actions to attain the objective of the administrative action or 
    proposed administrative action in a manner which eliminates or 
    mitigates the adverse effects of the administrative action or 
    proposed administrative action upon the training or readiness 
    activity.
    ``(d) Moratorium.--(1) Subject to paragraph (2), upon notification 
with respect to an administrative action or proposed administrative 
action under subsection (a), the administrative action or proposed 
administrative action shall cease to be effective with respect to the 
Department of Defense until the earlier of--
        ``(A) the end of the five-day period beginning on the date of 
    the notification; or
        ``(B) the date of an agreement between the head of the 
    Executive agency concerned and the Secretary as a result of the 
    consultations under subsection (c).
    ``(2) Paragraph (1) shall not apply with respect to an 
administrative action or proposed administrative action if the head of 
the Executive agency concerned determines that the delay in enforcement 
of the administrative action or proposed administrative action will 
pose an actual threat of an imminent and substantial endangerment to 
public health or the environment.
    ``(e) Effect of Lack of Agreement.--(1) If the head of an Executive 
agency and the Secretary do not enter into an agreement under 
subsection (c)(2), the Secretary shall submit a written notification to 
the President who shall take final action on the matter.
    ``(2) Not later than 30 days after the date on which the President 
takes final action on a matter under paragraph (1), the President shall 
submit to the committees referred to in subsection (a) a notification 
of the action.
    ``(f) Limitation on Delegation of Authority.--The head of an 
Executive agency may not delegate any responsibility under this 
section.
    ``(g) Definition.--In this section, the term `Executive agency' has 
the meaning given such term in section 105 of title 5, except that the 
term does not include the General Accounting Office.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:
``2014. Administrative actions adversely affecting military training or 
          other readiness activities.''.

SEC. 326. COMMON MEASUREMENT OF OPERATIONS TEMPO AND PERSONNEL TEMPO.

    (a) Means for Measurement.--The Chairman of the Joint Chiefs of 
Staff shall, to the maximum extent practicable, develop (1) a common 
means of measuring the operations tempo (OPTEMPO) of each of the Armed 
Forces, and (2) a common means of measuring the personnel tempo 
(PERSTEMPO) of each of the Armed Forces. The Chairman shall consult 
with the other members of the Joint Chiefs of Staff in developing those 
common means of measurement.
    (b) PERSTEMPO Measurement.--The measurement of personnel tempo 
developed by the Chairman shall include a means of identifying the rate 
of deployment for individual members of the Armed Forces in addition to 
the rate of deployment for units.

SEC. 327. INCLUSION OF AIR FORCE DEPOT MAINTENANCE AS OPERATION AND 
              MAINTENANCE BUDGET LINE ITEMS.

    For fiscal year 1999 and each fiscal year thereafter, Air Force 
depot-level maintenance of materiel shall be displayed as one or more 
separate line items under each subactivity within the authorization 
request for operation and maintenance, Air Force, in the proposed 
budget for that fiscal year submitted to Congress pursuant to section 
1105 of title 31, United States Code.

SEC. 328. PROHIBITION OF IMPLEMENTATION OF TIERED READINESS SYSTEM.

    (a) Prohibition.--The Secretary of a military department may not 
implement, or be required to implement, a new readiness system for 
units of the Armed Forces (as outlined in sections 329 and 330), under 
which a military unit would be categorized into one of several 
categories (known as ``tiers'') according to the likelihood that the 
unit will be required to respond to a military conflict and the time in 
which the unit will be required to respond, if that system would have 
the effect of changing the methods used as of October 1, 1996, by the 
Armed Forces under the jurisdiction of that Secretary for determining 
the priorities for allocating to such military units funding, 
personnel, equipment, equipment maintenance, and training resources, 
and the associated levels of readiness of those units that result from 
those priorities.
    (b) Report to Congress Requesting Waiver.--If the Secretary of 
Defense determines, following the review required by sections 329 and 
330 (or any similar review), that implementation for one or more of the 
Armed Forces of a tiered readiness system that is prohibited by 
subsection (a) would be in the national security interests of the 
United States, the Secretary shall submit to Congress a report setting 
forth that determination, together with the rationale for that 
determination, and a request for the enactment of legislation to allow 
implementation of such a system.
    (c) Rule of Construction.--Nothing in subsection (a) is intended to 
preclude the Secretary of Defense from taking necessary actions to 
maintain the combat preparedness of the active and reserve components 
of the Armed Forces.

SEC. 329. REPORT ON MILITARY READINESS REQUIREMENTS OF THE ARMED 
              FORCES.

    (a) Requirement for Report.--Not later than January 31, 1998, the 
Chairman of the Joint Chiefs of Staff shall submit to the congressional 
defense committees a report on the military readiness requirements of 
the active and reserve components of the Armed Forces (including combat 
units, combat support units, and combat service support units). The 
report shall assess such requirements under a tiered readiness and 
response system that categorizes a given unit according to the 
likelihood that it will be required to respond to a military conflict 
and the time within which it will be required to respond.
    (b) Preparation by JCS and Commanders of Unified Commands.--The 
report required by subsection (a) shall be prepared jointly by the 
Chairman of the Joint Chiefs of Staff, the Chief of Staff of the Army, 
the Chief of Naval Operations, the Chief of Staff of the Air Force, the 
Commandant of the Marine Corps, the commander of the Special Operations 
Command, and the commanders of the other unified commands.
    (c) Assessment Scenario.--The report shall assess readiness 
requirements in a scenario that is based on the following assumptions:
        (1) That the Armed Forces of the United States must be capable 
    of--
            (A) fighting and winning, in concert with allies, two major 
        theater wars nearly simultaneously; and
            (B) deterring or defeating a strategic attack on the United 
        States.
        (2) That the forces available for deployment are the forces 
    included in the force structure recommended in the Quadrennial 
    Defense Review, including all other planned force enhancements.
    (d) Assessment Elements.--(1) The report shall identify, by unit 
type, all major units of the active and reserve components of the Armed 
Forces and assess the readiness requirements of the units. Each 
identified unit shall be categorized within one of the following 
classifications:
        (A) Forward-deployed and crisis response forces, or ``Tier I'' 
    forces, that possess limited internal sustainment capability and do 
    not require immediate access to regional air bases or ports or 
    overflight rights, including the following:
            (i) Force units that are deployed in rotation at sea or on 
        land outside the United States.
            (ii) Combat-ready crises response forces that are capable 
        of mobilizing and deploying within 10 days after receipt of 
        orders.
            (iii) Forces that are supported by prepositioning equipment 
        afloat or are capable of being inserted into a theater upon the 
        capture of a port or airfield by forcible entry forces.
        (B) Combat-ready follow-on forces, or ``Tier II'' forces, that 
    can be mobilized and deployed to a theater within approximately 60 
    days after receipt of orders.
        (C) Combat-ready conflict resolution forces, or ``Tier III'' 
    forces, that can be mobilized and deployed to a theater within 
    approximately 180 days after receipt of orders.
        (D) All other active and reserve component force units which 
    are not categorized within a classification described in 
    subparagraph (A), (B), or (C).
    (2) For the purposes of paragraph (1), the following units are 
major units:
        (A) In the case of the Army or Marine Corps, a brigade and a 
    battalion.
        (B) In the case of the Navy, a squadron of aircraft, a ship, 
    and a squadron of ships.
        (C) In the case of the Air Force, a squadron of aircraft.
    (e) Projection of Savings for Use for Modernization.--The report 
shall include a projection for fiscal years 1998 through 2003 of the 
amounts of the savings in operation and maintenance funding that--
        (1) could be derived by each of the Armed Forces by placing as 
    many units as is practicable into the lower readiness categories 
    among the tiers; and
        (2) could be made available for force modernization.
    (f) Form of Report.--The report under this section shall be 
submitted in unclassified form, but may contain a classified annex.
    (g) Planned Force Enhancement Defined.--In this section, the term 
``planned force enhancement'', with respect to the force structure 
recommended in the Quadrennial Defense Review, means any future 
improvement in the capability of the force (including current strategic 
and future improvement in strategic lift capability) that is assumed in 
the development of the recommendation for the force structure set forth 
in the Quadrennial Defense Review.

SEC. 330. ASSESSMENT OF CYCLICAL READINESS POSTURE OF THE ARMED FORCES.

    (a) Requirement.--(1) Not later than 120 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
Congress a report on the readiness posture of the Armed Forces 
described in subsection (b).
    (2) The Secretary shall prepare the report required under paragraph 
(1) with the assistance of the Joint Chiefs of Staff. In providing such 
assistance, the Chairman of the Joint Chiefs of Staff shall consult 
with the Chief of the National Guard Bureau.
    (b) Readiness Posture.--(1) The readiness posture to be covered by 
the report under subsection (a) is a readiness posture for units of the 
Armed Forces, or for designated units of the Armed Forces, that 
provides for a rotation of such units between a state of high readiness 
and a state of low readiness.
    (2) As part of the evaluation of the readiness posture described in 
paragraph (1), the report shall address in particular a readiness 
posture that--
        (A) establishes within the Armed Forces two equivalent forces 
    each structured so as to be capable of fighting and winning a major 
    theater war; and
        (B) provides for an alternating rotation of such forces between 
    a state of high readiness and a state of low readiness.
    (3) The evaluation of the readiness posture described in paragraph 
(2) shall be based upon assumptions permitting comparison with the 
existing force structure as follows:
        (A) That there are assembled from among the units of the Armed 
    Forces two equivalent forces each structured so as to be capable of 
    fighting and winning a major theater war.
        (B) That each force referred to in subparagraph (A) includes--
            (i) four active Army divisions, including one mechanized 
        division, one armored division, one light infantry division, 
        and one division combining airborne units and air assault 
        units, and appropriate support and service support units for 
        such divisions;
            (ii) six divisions (or division equivalents) of the Army 
        National Guard or the Army Reserve that are essentially 
        equivalent in structure, and appropriate support and service 
        support units for such divisions;
            (iii) six aircraft carrier battle groups;
            (iv) six active Air Force fighter wings (or fighter wing 
        equivalents);
            (v) four Air Force reserve fighter wings (or fighter wing 
        equivalents); and
            (vi) one active Marine Corps expeditionary force.
        (C) That each force may be supplemented by critical units or 
    units in short supply, including heavy bomber units, strategic lift 
    units, and aerial reconnaissance units, that are not subject to the 
    readiness rotation otherwise assumed for purposes of the evaluation 
    or are subject to the rotation on a modified basis.
        (D) That units of the Armed Forces not assigned to a force are 
    available for operations other than those essential to fight and 
    win a major theater war, including peace operations.
        (E) That the state of readiness of each force alternates 
    between a state of high readiness and a state of low readiness on a 
    frequency determined by the Secretary (but not more often than once 
    every six months) and with only one force at a given state of 
    readiness at any one time.
        (F) That, during the period of state of high readiness of a 
    force, any operations or activities (including leave and education 
    and training of personnel) that detract from the near-term wartime 
    readiness of the force are temporary and their effects on such 
    state of readiness minimized.
        (G) That units are assigned overseas during the period of state 
    of high readiness of the force to which the units are assigned 
    primarily on a temporary duty basis.
        (H) That, during the period of high readiness of a force, the 
    operational war plans for the force incorporate the divisions (or 
    division equivalents) of the Army Reserve or Army National Guard 
    assigned to the force in a manner such that one such division (or 
    division equivalent) is, on a rotating basis for such divisions (or 
    division equivalents) during the period, maintained in a high state 
    of readiness and dedicated as the first reserve combat division to 
    be transferred overseas in the event of a major theater war.
    (c) Report Elements.--The report under this section shall include 
the following elements for the readiness posture described in 
subsection (b)(2):
        (1) An estimate of the range of cost savings achievable over 
    the long term as a result of implementing the readiness posture, 
    including--
            (A) the savings achievable from reduced training levels and 
        readiness levels during periods in which a force referred to in 
        subsection (b)(3)(A) is in a state of low readiness; and
            (B) the savings achievable from reductions in costs of 
        infrastructure overseas as a result of reduced permanent change 
        of station rotations.
        (2) An assessment of the potential risks associated with a 
    lower readiness status for units assigned to a force in a state of 
    low readiness under the readiness posture, including the risks 
    associated with the delayed availability of such units overseas in 
    the event of two nearly simultaneous major theater wars.
        (3) An assessment of the potential risks associated with 
    requiring the forces under the readiness posture to fight a major 
    war in any theater worldwide.
        (4) An assessment of the modifications of the current force 
    structure of the Armed Forces that are necessary to achieve the 
    range of cost savings estimated under paragraph (1), including the 
    extent of the diminishment, if any, of the military capabilities of 
    the Armed Forces as a result of the modifications.
        (5) An assessment whether or not the risks of diminished 
    military capability associated with implementation of the readiness 
    posture exceed the risks of diminished military capability 
    associated with the modifications of the current force structure 
    necessary to achieve cost savings equivalent to the best case for 
    cost savings resulting from the implementation of the readiness 
    posture.
    (d) Form of Report.--The report under this section shall be 
submitted in unclassified form, but may contain a classified annex.
    (e) Definitions.--In this section:
        (1) The term ``state of high readiness'', in the case of a 
    military force, means the capability to mobilize first-to-arrive 
    units of the force within 18 hours and last-to-arrive units within 
    120 days of a particular event.
        (2) The term ``state of low readiness'', in the case of a 
    military force, means the capability to mobilize first-to-arrive 
    units within 90 days and last-to-arrive units within 180 days of a 
    particular event.

SEC. 331. REPORT ON MILITARY EXERCISES CONDUCTED UNDER CERTAIN TRAINING 
              EXERCISES PROGRAMS.

    (a) Report.--Not later than February 16, 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 military exercises conducted by the Department of 
Defense during fiscal years 1995, 1996, and 1997 and the military 
exercises planned to be conducted during fiscal years 1998, 1999, and 
2000, under the following training exercises programs:
        (1) The program known as the ``CJCS Exercise Program''.
        (2) The program known as the ``Partnership for Peace program''.
        (3) The Cooperative Threat Reduction programs.
    (b) Information on Exercises Conducted or To Be Conducted.--The 
report under subsection (a) shall include the following information for 
each exercise included in the report, which shall be set forth by 
fiscal year and shown within the fiscal year by the sponsoring command:
        (1) Name of the exercise.
        (2) Type, description, duration, and objectives of the 
    exercise.
        (3) Participating units, including the number of personnel 
    participating in each unit.
        (4) For each participating unit, the percentage of the tasks on 
    that unit's specification of tasks (known as a mission essential 
    task list) or a comparable specification (in the case of any of the 
    Armed Forces not maintaining a mission essential task list 
    designation) that were performed or are scheduled to be performed 
    as part of the exercise.
        (5) The cost of the exercise paid or to be paid out of funds 
    available to the Chairman of the Joint Chiefs of Staff and the cost 
    to each of the Armed Forces participating in the exercise, with a 
    description of the categories of activities for which those costs 
    are incurred in each such case.
        (6) In the case of each planned exercise, the priority of the 
    exercise in relation to all other exercises planned by the 
    sponsoring command to be conducted during that fiscal year.
        (7) In the case of an exercise conducted or to be conducted in 
    a foreign country or with military personnel of a foreign country, 
    the military forces of the foreign country that participated or 
    will participate in the exercise.
    (c) Assessment.--The report under subsection (a) shall include--
        (1) an assessment of the ability of each of the Armed Forces to 
    meet requirements of the training exercises programs specified in 
    subsection (a);
        (2) an assessment of the training value of each exercise 
    covered in the report to each unit of the Armed Forces 
    participating in the exercise, including for each such unit an 
    assessment of the value of the percentage under subsection (b)(4) 
    as an indicator of the training value of the exercise for that 
    unit;
        (3) options to minimize the negative effects on operational and 
    personnel tempo resulting from the training exercises programs; and
        (4) in the case of exercises to be conducted in a foreign 
    country or with military personnel of a foreign country--
            (A) an assessment of the training value of each exercise 
        covered in the report to the foreign countries involved and the 
        extent to which the exercise enhances the readiness 
        capabilities of all military forces involved in the exercise 
        (both United States and foreign); and
            (B) an assessment of the benefits to be derived through 
        enhanced military-to-military relationships between the United 
        States and foreign countries.
    (d) Funding Limitation Pending Receipt of Report.--Of the funds 
available for fiscal year 1998 for the conduct of the CJCS Exercise 
Program, not more than 90 percent may be expended before the date on 
which the report required under subsection (a) is submitted.

SEC. 332. REPORT ON OVERSEAS DEPLOYMENTS.

    (a) Report.--Not later than 90 days after the date of the enactment 
of this Act, the Secretary of Defense shall submit to Congress a report 
on the deployments overseas of members of the Armed Forces (other than 
the Coast Guard). The report shall describe the deployments as of June 
30, 1996, and as of June 30, 1997.
    (b) Elements.--The report shall include the following, shown as of 
each date specified in subsection (a) and shown for the Armed Forces in 
the aggregate and separately for each of the Armed Forces:
        (1) The number of military personnel deployed overseas pursuant 
    to a permanent duty assignment, shown in the aggregate and by 
    country or ocean to which deployed.
        (2) The number of military personnel deployed overseas pursuant 
    to a temporary duty assignment, including--
            (A) the number engaged in training with units of a single 
        military department;
            (B) the number engaged in United States military joint 
        exercises; and
            (C) the number engaged in training with allied units.
        (3) The number of military personnel deployed overseas who were 
    engaged in contingency operations (including peacekeeping or 
    humanitarian assistance missions) or other activities (other than 
    those personnel covered by paragraphs (1) and (2)).

                  Subtitle C--Environmental Provisions

SEC. 341. REVISION OF MEMBERSHIP TERMS FOR STRATEGIC ENVIRONMENTAL 
              RESEARCH AND DEVELOPMENT PROGRAM SCIENTIFIC ADVISORY 
              BOARD.

    Section 2904(b)(4) of title 10, United States Code, is amended by 
striking out ``three'' and inserting in lieu thereof ``not less than 
two and not more than four''.

SEC. 342. AMENDMENTS TO AUTHORITY TO ENTER INTO AGREEMENTS WITH OTHER 
              AGENCIES IN SUPPORT OF ENVIRONMENTAL TECHNOLOGY 
              CERTIFICATION.

    (a) Authority To Enter Into Agreements With Indian Tribes.--Section 
327 of the National Defense Authorization Act for Fiscal Year 1997 
(Public Law 104-201; 110 Stat. 2483; 10 U.S.C. 2702 note) is amended--
        (1) in subsection (a), by inserting ``, or with an Indian 
    tribe,'' after ``with an agency of a State or local government'';
        (2) by redesignating subsection (e) as subsection (f); and
        (3) by inserting after subsection (d) the following new 
    subsection:
    ``(e) Definition.--In this section, the term `Indian tribe' has the 
meaning given that term by section 101(36) of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 (42 
U.S.C. 9601(36)).''.
    (b) Elimination of Certain Limitation on Authority.--Subsection 
(b)(1) of such section is amended by striking out ``in carrying out its 
environmental restoration activities''.
    (c) Additional Report Information.--Subsection (d) of such section 
is amended by adding at the end the following:
        ``(5) A statement of the funding that will be required to meet 
    commitments made to State and local governments and Indian tribes 
    under such agreements entered into during the fiscal year preceding 
    the fiscal year in which the report is submitted.
        ``(6) A description of any cost-sharing arrangement under any 
    such agreements.''.
    (d) Guidelines for Reimbursement and Cost-Sharing.--Not later than 
90 days after the date of enactment of this Act, the Secretary of 
Defense shall submit to Congress a report setting forth the guidelines 
established by the Secretary for reimbursement of State and local 
governments, and for cost-sharing between the Department of Defense, 
such governments, and vendors, under cooperative agreements entered 
into under such section 327.
    (e) Effective Date.--The amendments made by this section shall take 
effect 30 days after the date on which the report required by 
subsection (d) is submitted to Congress.

SEC. 343. MODIFICATIONS OF AUTHORITY TO STORE AND DISPOSE OF NONDEFENSE 
              TOXIC AND HAZARDOUS MATERIALS.

    (a) Storage of Materials Owned by Members and Dependents.--
Subsection (a)(1) of section 2692 of title 10, United States Code, is 
amended by striking out ``by the Department of Defense.'' and inserting 
in lieu thereof the following: ``either by the Department of Defense or 
by a member of the armed forces (or a dependent of the member) assigned 
to or provided military housing on the installation.''.
    (b) Additional Authority.--Subsection (b) of such section is 
amended--
        (1) by redesignating paragraphs (1) through (9) as paragraphs 
    (2) through (10), respectively; and
        (2) by inserting before paragraph (2) (as so redesignated) the 
    following new paragraph (1):
        ``(1) the storage, treatment, or disposal of materials that 
    will be or have been used in connection with an activity of the 
    Department of Defense or in connection with a service to be 
    performed on an installation of the Department for the benefit of 
    the Department;''.
    (c) Storage and Disposal of Explosives To Assist Law Enforcement 
Agencies.--Subsection (b) of such section is amended in paragraph (3) 
(as redesignated by subsection (b))--
        (1) by striking out ``Federal law enforcement'' and inserting 
    in lieu thereof ``Federal, State, or local law enforcement''; and
        (2) by striking out ``Federal agency'' and inserting in lieu 
    thereof ``Federal, State, or local agency''.
    (d) Storage of Material in Connection With Authorized and 
Compatible Use of a Defense Facility.--Subsection (b) of such section 
is amended in paragraph (9) (as redesignated by subsection (b))--
        (1) by striking out ``by a private person in connection with 
    the authorized and compatible use by that person of an industrial-
    type'' and inserting in lieu thereof ``in connection with the 
    authorized and compatible use of a''; and
        (2) by striking out ``; and'' at the end and inserting in lieu 
    thereof the following: ``, including the use of such a facility for 
    testing materiel or training personnel;''.
    (e) Treatment and Disposal of Material in Connection With 
Authorized and Compatible Use of a Defense Facility.--Subsection (b) of 
such section is amended in paragraph (10) (as redesignated by 
subsection (b))--
        (1) by striking out ``by a private person in connection with 
    the authorized and compatible commercial use by that person of an 
    industrial-type'' and inserting in lieu thereof ``in connection 
    with the authorized and compatible use of a'';
        (2) by striking out ``with that person'' and inserting in lieu 
    thereof ``or agreement with the prospective user'';
        (3) by striking out ``for that person's'' in subparagraph (B) 
    and inserting in lieu thereof ``for the prospective user's''; and
        (4) by striking out the period at the end and inserting in lieu 
    thereof ``; and''.
    (f) Storage of Material in Connection With Space Launch 
Facilities.--Subsection (b) of such section is further amended by 
adding at the end the following new paragraph:
        ``(11) the storage of any material that is not owned by the 
    Department of Defense if the Secretary of the military department 
    concerned determines that the material is required or generated in 
    connection with the use of a space launch facility located on an 
    installation of the Department of Defense or on other land 
    controlled by the United States.''.
    (g) Technical Amendments.--(1) Subsection (a)(1) of such section is 
further amended by striking out ``storage'' and inserting in lieu 
thereof ``storage, treatment,''.
    (2) The heading for such section is amended to read as follows:

``Sec. 2692. Storage, treatment, and disposal of nondefense toxic and 
            hazardous materials''.

    (3) The item relating to such section in the table of sections at 
the beginning of chapter 159 of such title is amended to read as 
follows:
``2692. Storage, treatment, and disposal of nondefense toxic and 
          hazardous materials.''.

    (h) Savings Clause.--Nothing in the amendments made by this section 
is intended to modify environmental laws or laws relating to the siting 
of facilities.

SEC. 344. ANNUAL REPORT ON PAYMENTS AND ACTIVITIES IN RESPONSE TO FINES 
              AND PENALTIES ASSESSED UNDER ENVIRONMENTAL LAWS.

    (a) Annual Reports.--Section 2706(b)(2) of title 10, United States 
Code, is amended by adding at the end the following:
        ``(H) A statement of the fines and penalties imposed or 
    assessed against the Department of Defense under Federal, State, or 
    local environmental law during the fiscal year preceding the fiscal 
    year in which the report is submitted, setting forth each Federal 
    environmental statute under which a fine or penalty was imposed or 
    assessed during the fiscal year, and, with respect to each such 
    statute--
            ``(i) the aggregate amount of fines and penalties imposed 
        or assessed during the fiscal year;
            ``(ii) the aggregate amount of fines and penalties paid 
        during the fiscal year;
            ``(iii) the total amount required for environmental 
        projects to be carried out by the Department of Defense in lieu 
        of the payment of fines or penalties; and
            ``(iv) the number of fines and penalties imposed or 
        assessed during the fiscal year that were--
                ``(I) $100,000 or less; and
                ``(II) more than $100,000.''.
    (b) Report in Fiscal Year 1998.--The statement submitted by the 
Secretary of Defense under subparagraph (H) of section 2706(b)(2) of 
title 10, United States Code, as added by subsection (a), in 1998 
shall, to the maximum extent practicable, include the information 
required by that subparagraph for each of fiscal years 1994 through 
1997.

SEC. 345. ANNUAL REPORT ON ENVIRONMENTAL ACTIVITIES OF THE DEPARTMENT 
              OF DEFENSE OVERSEAS.

    Section 2706 of title 10, United States Code, is amended--
        (1) by redesignating subsection (d) as subsection (e); and
        (2) by inserting after subsection (c) the following new 
    subsection (d):
    ``(d) Report on Environmental Activities Overseas.--(1) The 
Secretary of Defense shall submit to Congress each year, not later than 
30 days after the date on which the President submits to Congress the 
budget for a fiscal year, a report on the environmental activities of 
the Department of Defense overseas.
    ``(2) Each such report shall include a statement of the funding 
levels during such fiscal year for each of the following categories:
        ``(A) Compliance by the Department of Defense with requirements 
    under a treaty, law, contract, or other agreement for environmental 
    restoration or compliance activities.
        ``(B) Performance by the Department of Defense of other 
    environmental restoration and compliance activities overseas.
        ``(C) Performance by the Department of Defense of any other 
    overseas activities related to the environment, including 
    conferences, meetings, and studies for pilot programs, and travel 
    related to such activities.''.

SEC. 346. REVIEW OF EXISTING ENVIRONMENTAL CONSEQUENCES OF THE PRESENCE 
              OF THE ARMED FORCES IN BERMUDA.

    Not later than 120 days after the date of enactment of this Act, 
the Secretary of Defense shall submit to the congressional defense 
committees a report on any remaining environmental effects of the 
presence of the Armed Forces of the United States in Bermuda.

SEC. 347. SENSE OF CONGRESS ON DEPLOYMENT OF UNITED STATES ARMED FORCES 
              ABROAD FOR ENVIRONMENTAL PRESERVATION ACTIVITIES.

    (a) Sense of Congress.--It is the sense of Congress that members of 
the Army, Navy, Air Force, and Marine Corps should not be deployed 
outside the United States to provide assistance to another nation in 
connection with environmental preservation activities in that nation, 
unless the Secretary of Defense determines that such activities are 
necessary for national security purposes.
    (b) Scope of Section.--For purposes of this section, environmental 
preservation activities do not include any of the following:
        (1) Activities undertaken for humanitarian purposes, disaster 
    relief activities, peacekeeping activities, or operational training 
    activities.
        (2) Environmental compliance and restoration activities 
    associated with military installations and deployments outside the 
    United States.

SEC. 348. RECOVERY AND SHARING OF COSTS OF ENVIRONMENTAL RESTORATION AT 
              DEPARTMENT OF DEFENSE SITES.

    (a) Regulations.--Not later than March 1, 1998, the Secretary of 
Defense shall prescribe regulations containing the guidelines and 
requirements described in subsections (b) and (c).
    (b) Guidelines.--(1) The regulations prescribed under subsection 
(a) shall contain uniform guidelines for the military departments and 
defense agencies concerning the cost-recovery and cost-sharing 
activities of those departments and agencies.
    (2) The Secretary shall take appropriate actions to ensure the 
implementation of the guidelines.
    (c) Requirements.--The regulations prescribed under subsection (a) 
shall contain requirements for the Secretaries of the military 
departments and the heads of defense agencies to--
        (1) obtain all data that is relevant for purposes of cost-
    recovery and cost-sharing activities; and
        (2) identify any negligence or other misconduct that may 
    preclude indemnification or reimbursement by the Department of 
    Defense for the costs of environmental restoration at a Department 
    site or justify the recovery or sharing of costs associated with 
    such restoration.
    (d) Definition.--In this section, the term ``cost-recovery and 
cost-sharing activities'' means activities concerning--
        (1) the recovery of the costs of environmental restoration at 
    Department of Defense sites from contractors of the Department and 
    other private parties that contribute to environmental 
    contamination at such sites; and
        (2) the sharing of the costs of such restoration with such 
    contractors and parties.

SEC. 349. PARTNERSHIPS FOR INVESTMENT IN INNOVATIVE ENVIRONMENTAL 
              TECHNOLOGIES.

    (a) Authority.--Subject to subsection (b), the Secretary of Defense 
may enter into a partnership with one or more private entities to 
demonstrate and validate innovative environmental technologies.
    (b) Limitations.--The Secretary of Defense may enter into a 
partnership with respect to an environmental technology under 
subsection (a) only if--
        (1) any private entities participating in the partnership are 
    selected through the use of competitive procedures;
        (2) the partnership provides for parties other than the 
    Department of Defense to provide at least 50 percent of the funding 
    required (not including in-kind contributions or preexisting 
    investments); and
        (3) the Secretary determines that--
            (A) the technology has clear potential to be of significant 
        value to the Department of Defense in its environmental 
        remediation activities at a substantial number of Department of 
        Defense sites; and
            (B) the technology would not be developed without the 
        commitment of Department of Defense funds.
    (c) Evaluation Guidelines.--Before entering into a partnership with 
respect to an environmental technology under subsection (a), the 
Secretary of Defense shall give consideration to the following:
        (1) The potential for the technology to be used by the 
    Department of Defense for environmental remediation.
        (2) The technical feasibility and maturity of the technology.
        (3) The adequacy of financial and management plans to 
    demonstrate and validate the technology.
        (4) The costs and benefits to the Department of Defense of 
    developing and using the technology.
        (5) The potential for commercialization of the technology.
        (6) The proposed arrangements for sharing the costs of the 
    partnership through the use of resources outside the Department of 
    Defense.
    (d) Funding.--Under a partnership entered into under subsection 
(a), the Secretary of Defense may provide funds to the partner or 
partners from appropriations available to the Department of Defense for 
environmental activities, for a period of up to five years.
    (e) Report.--In the annual report required under section 2706(a) of 
title 10, United States Code, the Secretary of Defense shall include 
the following information with respect to partnerships entered into 
under this section:
        (1) The number of such partnerships.
        (2) A description of the nature of the technology involved in 
    each such partnership.
        (3) A list of all partners in such partnerships.
    (f) Coordination.--The Secretary of Defense shall ensure that the 
Department of Defense coordinates with the Administrator of the 
Environmental Protection Agency in any verification sponsored by the 
Department of technologies demonstrated and validated by a partnership 
entered into under this section.
    (g) Procedures.--The Secretary of Defense shall develop appropriate 
procedures to ensure that all Department of Defense funds committed to 
a partnership entered into under this section are expended for the 
purpose authorized in the partnership agreement. The Secretary may not 
enter into a partnership under this section until 30 days after the 
date on which a copy of such procedures is provided to the Committee on 
Armed Services of the Senate and the Committee on National Security of 
the House of Representatives.
    (h) Termination of Authority.--The authority to enter into 
agreements under subsection (a) shall terminate three years after the 
date of the enactment of this Act.

SEC. 350. PROCUREMENT OF RECYCLED COPIER PAPER.

    (a) Procurement Requirements.--Chapter 140 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 2378. Procurement of copier paper containing specified 
            percentages of post-consumer recycled content

    ``(a) Procurement Requirement.--(1) Except as provided in 
subsections (b) and (c), a department or agency of the Department of 
Defense may not procure copying machine paper after the applicable date 
specified in paragraph (2) unless the percentage of post-consumer 
recycled content of the paper meets the percentage then in effect under 
such paragraph.
    ``(2) The percentage of post-consumer recycled content of paper 
required under paragraph (1) is as follows:
        ``(A) 20 percent as of January 1, 1998.
        ``(B) 30 percent as of January 1, 1999.
        ``(C) 50 percent as of January 1, 2004.
    ``(b) Exceptions.--A department or agency of the Department of 
Defense is not required to procure copying machine paper containing a 
percentage of post-consumer recycled content that meets the applicable 
requirement in subsection (a) if the Secretary concerned determines 
that one or more of the following circumstances apply with respect to 
that procurement:
        ``(1) The cost of procuring copying machine paper satisfying 
    the applicable requirement significantly exceeds the cost of 
    procuring copying machine paper containing a percentage of post-
    consumer recycled content that does not meet such requirement. The 
    Secretary concerned shall establish the cost differential to be 
    applied under this paragraph.
        ``(2) Copying machine paper containing a percentage of post-
    consumer recycled content meeting such requirement is not 
    reasonably available within a reasonable period of time.
        ``(3) Copying machine paper containing a percentage of post-
    consumer recycled content meeting such requirement does not meet 
    performance standards of the department or agency for copying 
    machine paper.
    ``(c) Effect of Inability To Meet Goal in 2004.--(1) In the case of 
the requirement that will take effect on January 1, 2004, pursuant to 
subsection (a)(2)(C), the requirement shall not take effect with 
respect to a military department or Defense Agency if the Secretary of 
Defense determines that the department or agency will be unable to meet 
such requirement by that date.
    ``(2) The Secretary shall submit to Congress written notice of any 
determination made under paragraph (1) and the reasons for the 
determination. The Secretary shall submit such notice, if at all, not 
later than January 1, 2003.
    ``(d) Secretary Concerned Defined.--In this section, the term 
`Secretary concerned' means the Secretary of each military department 
and the Secretary of Defense with respect to the Defense Agencies.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:
``2378. Procurement of copier paper containing specified percentages of 
          post-consumer recycled content.''.

SEC. 351. PILOT PROGRAM FOR THE SALE OF AIR POLLUTION EMISSION 
              REDUCTION INCENTIVES.

    (a) Authority.--(1) The Secretary of Defense may, in consultation 
with the Administrator of General Services, carry out a pilot program 
to assess the feasibility and advisability of the sale of economic 
incentives for the reduction of emission of air pollutants attributable 
to a facility of a military department.
    (2) The Secretary may carry out the pilot program during the period 
beginning on the date of the enactment of this Act and ending two years 
after such date.
    (b) Incentives Available for Sale.--(1) Under the pilot program, 
the Secretary may sell economic incentives for the reduction of 
emission of air pollutants attributable to a facility of a military 
department only if such incentives are not otherwise required for the 
activities or operations of the military department.
    (2) The Secretary may not, under the pilot program, sell economic 
incentives attributable to the closure or realignment of a military 
installation under a base closure law.
    (3) If the Secretary determines that additional sales of economic 
incentives are likely to result in amounts available for allocation 
under subsection (c)(2) in a fiscal year in excess of the limitation 
set forth in subparagraph (B) of that subsection, the Secretary shall 
not carry out such additional sales in that fiscal year.
    (c) Use of Proceeds.--(1) The proceeds of sale of economic 
incentives attributable to a facility of a military department shall be 
credited to the funds available to the facility for the costs of 
identifying, quantifying, or valuing economic incentives for the 
reduction of emission of air pollutants. The amount credited shall be 
equal to the cost incurred in identifying, quantifying, or valuing the 
economic incentives sold.
    (2)(A)(i) If after crediting under paragraph (1) a balance remains, 
the amount of such balance shall be available to the Department of 
Defense for allocation by the Secretary to the military departments for 
programs, projects, and activities necessary for compliance with 
Federal environmental laws, including the purchase of economic 
incentives for the reduction of emission of air pollutants.
    (ii) To the extent practicable, amounts allocated to the military 
departments under this subparagraph shall be made available to the 
facilities that generated the economic incentives providing the basis 
for the amounts.
    (B) The total amount allocated under this paragraph in a fiscal 
year from sales of economic incentives may not equal or exceed 
$500,000.
    (3) If after crediting under paragraph (1) a balance remains in 
excess of an amount equal to the limitation set forth in paragraph 
(2)(B), the amount of the excess shall be covered over into the 
Treasury as miscellaneous receipts.
    (4) Funds credited under paragraph (1) or allocated under paragraph 
(2) shall be merged with the funds to which credited or allocated, as 
the case may be, and shall be available for the same purposes and for 
the same period as the funds with which merged.
    (d) Definitions.--In this section:
        (1) The term ``base closure law'' means the following:
            (A) Section 2687 of title 10, United States Code.
            (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).
        (2) The term ``economic incentives for the reduction of 
    emission of air pollutants'' means any transferable economic 
    incentives (including marketable permits and emission rights) 
    necessary or appropriate to meet air quality requirements under the 
    Clean Air Act (42 U.S.C. 7401 et seq.).

                   Subtitle D--Depot-Level Activities

SEC. 355. DEFINITION OF DEPOT-LEVEL MAINTENANCE AND REPAIR.

    (a) Depot-Level Maintenance and Repair Defined.--Chapter 146 of 
title 10, United States Code, is amended by inserting before section 
2461 the following new section:

``Sec. 2460. Definition of depot-level maintenance and repair

    ``(a) In General.--In this chapter, the term `depot-level 
maintenance and repair' means (except as provided in subsection (b)) 
material maintenance or repair requiring the overhaul, upgrading, or 
rebuilding of parts, assemblies, or subassemblies, and the testing and 
reclamation of equipment as necessary, regardless of the source of 
funds for the maintenance or repair. The term includes (1) all aspects 
of software maintenance classified by the Department of Defense as of 
July 1, 1995, as depot-level maintenance and repair, and (2) interim 
contractor support or contractor logistics support (or any similar 
contractor support), to the extent that such support is for the 
performance of services described in the preceding sentence.
    ``(b) Exceptions.--(1) The term does not include the procurement of 
major modifications or upgrades of weapon systems that are designed to 
improve program performance or the nuclear refueling of an aircraft 
carrier. A major upgrade program covered by this exception could 
continue to be performed by private or public sector activities.
    ``(2) The term also does not include the procurement of parts for 
safety modifications. However, the term does include the installation 
of parts for that purpose.''.
    (b) Conforming Amendment.--Section 2469 of title 10, United States 
Code, is amended in subsections (a) and (b), by striking out ``or 
repair'' and inserting in lieu thereof ``and repair''.
    (c) Clerical Amendments.--(1) The table of sections at the 
beginning of chapter 146 of title 10, United States Code, is amended by 
inserting before the item relating to section 2461 the following new 
item:
``2460. Definition of depot-level maintenance and repair.''.

    (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 amended by 
striking out the item relating to chapter 146 and inserting in lieu 
thereof the following new item:

``146. Contracting for Performance of Civilian Commercial or 
Industrial Type Functions........................................2460''.

SEC. 356. CORE LOGISTICS CAPABILITIES OF DEPARTMENT OF DEFENSE.

    (a) In General.--Section 2464 of title 10, United States Code, is 
amended to read as follows:

``Sec. 2464. Core logistics capabilities

    ``(a) Necessity for Core Logistics Capabilities.--(1) It is 
essential for the national defense that the Department of Defense 
maintain a core logistics capability that is Government-owned and 
Government-operated (including Government personnel and Government-
owned and Government-operated equipment and facilities) to ensure a 
ready and controlled source of technical competence and resources 
necessary to ensure effective and timely response to a mobilization, 
national defense contingency situations, and other emergency 
requirements.
    ``(2) The Secretary of Defense shall identify the core logistics 
capabilities described in paragraph (1) and the workload required to 
maintain those capabilities.
    ``(3) The core logistics capabilities identified under paragraphs 
(1) and (2) shall include those capabilities that are necessary to 
maintain and repair the weapon systems and other military equipment 
(including mission-essential weapon systems or materiel not later than 
four years after achieving initial operational capability, but 
excluding systems and equipment under special access programs, nuclear 
aircraft carriers, and commercial items described in paragraph (5)) 
that are identified by the Secretary, in consultation with the Chairman 
of the Joint Chiefs of Staff, as necessary to enable the armed forces 
to fulfill the strategic and contingency plans prepared by the Chairman 
of the Joint Chiefs of Staff under section 153(a) of this title.
    ``(4) The Secretary of Defense shall require the performance of 
core logistics workloads necessary to maintain the core logistics 
capabilities identified under paragraphs (1), (2), and (3) at 
Government-owned, Government-operated facilities of the Department of 
Defense (including Government-owned, Government-operated facilities of 
a military department) and shall assign such facilities sufficient 
workload to ensure cost efficiency and technical competence in 
peacetime while preserving the surge capacity and reconstitution 
capabilities necessary to support fully the strategic and contingency 
plans referred to in paragraph (3).
    ``(5) The commercial items covered by paragraph (3) are commercial 
items that have been sold or leased in substantial quantities to the 
general public and are purchased without modification in the same form 
that they are sold in the commercial marketplace, or with minor 
modifications to meet Federal Government requirements.
    ``(b) Limitation on Contracting.--(1) Except as provided in 
paragraph (2), performance of workload needed to maintain a logistics 
capability identified by the Secretary under subsection (a)(2) may not 
be contracted for performance by non-Government personnel under the 
procedures and requirements of Office of Management and Budget Circular 
A-76 or any successor administrative regulation or policy (hereinafter 
in this section referred to as OMB Circular A-76).
    ``(2) The Secretary of Defense may waive paragraph (1) in the case 
of any such logistics capability and provide that performance of the 
workload needed to maintain that capability shall be considered for 
conversion to contractor performance in accordance with OMB Circular A-
76. Any such waiver shall be made under regulations prescribed by the 
Secretary and shall be based on a determination by the Secretary that 
Government performance of the workload is no longer required for 
national defense reasons. Such regulations shall include criteria for 
determining whether Government performance of any such workload is no 
longer required for national defense reasons.
    ``(3)(A) A waiver under paragraph (2) may not take effect until the 
expiration of the first period of 30 days of continuous session of 
Congress that begins on or after 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.
    ``(B) For the purposes of subparagraph (A)--
        ``(i) continuity of session is broken only by an adjournment of 
    Congress sine die; and
        ``(ii) the days on which either House is not in session because 
    of an adjournment of more than three days to a day certain are 
    excluded in the computation of any period of time in which Congress 
    is in continuous session.''.
    (b) Clerical Amendment.--The item relating to such section at the 
beginning of chapter 146 of such title is amended to read as follows:
``2464. Core logistics capabilities.''.

SEC. 357. INCREASE IN PERCENTAGE OF DEPOT-LEVEL MAINTENANCE AND REPAIR 
              THAT MAY BE CONTRACTED FOR PERFORMANCE BY NON-GOVERNMENT 
              PERSONNEL.

    Section 2466(a) of title 10, United States Code, is amended by 
striking out ``40 percent'' and inserting in lieu thereof ``50 
percent''.

SEC. 358. ANNUAL REPORT ON DEPOT-LEVEL MAINTENANCE AND REPAIR.

    Subsection (e) of section 2466 of title 10, United States Code, is 
amended to read as follows:
    ``(e) Report.--(1) Not later than February 1 of each year, the 
Secretary of Defense shall submit to Congress a report identifying, for 
each military department and Defense Agency, the percentage of the 
funds referred to in subsection (a) that were expended during the 
preceding fiscal year for performance of depot-level maintenance and 
repair workloads by the public and private sectors as required by 
section 2466 of this title.
    ``(2) Not later than 90 days after the date on which the Secretary 
submits the annual report under paragraph (1), the Comptroller General 
shall submit to Congress the Comptroller General's views on whether the 
Department of Defense has complied with the requirements of subsection 
(a) for the fiscal year covered by the report.''.

SEC. 359. REQUIREMENT FOR USE OF COMPETITIVE PROCEDURES IN CONTRACTING 
              FOR PERFORMANCE OF DEPOT-LEVEL MAINTENANCE AND REPAIR 
              WORKLOADS FORMERLY PERFORMED AT CLOSED OR REALIGNED 
              MILITARY INSTALLATIONS.

    (a) Application To Certain Workloads.--(1) Chapter 146 of title 10, 
United States Code, is amended by inserting after section 2469 the 
following new section:

``Sec. 2469a. Use of competitive procedures in contracting for 
            performance of depot-level maintenance and repair workloads 
            formerly performed at certain military installations

    ``(a) Definitions.--In this section:
        ``(1) The term `closed or realigned military installation' 
    means a military installation where a depot-level maintenance and 
    repair facility was 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).
        ``(2) The term `military installation' includes a former 
    military installation that was a military installation when it was 
    approved in 1995 for closure or realignment under the Defense Base 
    Closure and Realignment Act of 1990 and that has been closed or 
    realigned under the Act.
        ``(3) The terms `realignment' and `realigned' mean a decision 
    under the Defense Base Closure and Realignment Act of 1990 that 
    results in both a reduction and relocation of functions and 
    civilian personnel positions.
    ``(b) Covered Depot-Level Maintenance and Repair Workloads.--Except 
as provided in subsection (c), this section applies with respect to any 
depot-level maintenance and repair workload that--
        ``(1) was performed as of January 1, 1997, at a military 
    installation that was approved in 1995 for closure or realignment 
    under the Defense Base Closure and Realignment Act of 1990 and that 
    has been closed or realigned under the Act; and
        ``(2) is proposed to be converted from performance by 
    Department of Defense personnel to performance by a private sector 
    source.
    ``(c) Exceptions.--This section shall not apply with respect to--
        ``(1) a depot-level maintenance and repair workload that is to 
    be consolidated to another military installation (other than a 
    closed or realigned military installation) as a result of a base 
    closure or realignment action or a decision made by the Secretary 
    concerned or the Defense Depot Maintenance Council;
        ``(2) a workload necessary to maintain a core logistics 
    capability identified under section 2464 of this title; or
        ``(3) any contract originally entered into before the date of 
    the enactment of the National Defense Authorization Act for Fiscal 
    Year 1998.
    ``(d) Conditions and Solicitation.--A solicitation of offers for 
the performance of any depot-level maintenance and repair workload 
described in subsection (b) may be issued, and a contract may be 
awarded pursuant to such a solicitation, only if the following 
conditions are met with respect to the contract and the solicitation 
specifically states the conditions:
        ``(1) The source selection process used in the case of the 
    solicitation and contract permits the consideration of offers 
    submitted by private sector sources and offers submitted by public 
    sector sources.
        ``(2) The source selection process used in the case of the 
    solicitation and contract requires that, in the comparison of 
    offers, there be taken into account--
            ``(A) the fair market value (or if fair market value cannot 
        be determined, the estimated book value) of any land, plant, or 
        equipment from a military installation that is proposed by a 
        private offeror to be used to meet a specific workload (whether 
        these assets are provided to the offeror by a local 
        redevelopment authority or by any other source approved by an 
        official of the Department of Defense); and
            ``(B) the total estimated direct and indirect costs that 
        will be incurred by the Department of Defense and the total 
        estimated direct and indirect savings (including overhead) that 
        will be derived by the Department of Defense.
        ``(3) The cost standards used to determine the depreciation of 
    facilities and equipment shall, to the maximum extent practicable, 
    provide identical treatment to all public and private sector 
    offerors.
        ``(4) Any offeror, whether public or private, may offer to 
    perform the workload at any location or locations selected by the 
    offeror and to team with any other public or private entity to 
    perform that workload at one or more locations, including a Center 
    of Industrial and Technical Excellence designated under section 
    2474 of this title.
        ``(5) No offeror may be given any preferential consideration 
    for, or in any way be limited to, performing the workload in-place 
    or at any other single location.
    ``(e) Contracts for Multiple Workloads.--(1) A solicitation may be 
issued for a single contract for the performance of multiple depot-
level maintenance and repair workloads described in subsection (b) only 
if--
        ``(A) the Secretary of Defense determines in writing that the 
    individual workloads cannot as logically and economically be 
    performed without combination by sources that are potentially 
    qualified to submit an offer and to be awarded a contract to 
    perform those individual workloads;
        ``(B) the Secretary submits to Congress a report setting forth 
    the determination together with the reasons for the determination; 
    and
        ``(C) the solicitation of offers for the contract is issued 
    more than 60 days after the date on which the Secretary submits the 
    report.
    ``(2) The Comptroller General shall review each report submitted 
under paragraph (1)(B) and, not later than 30 days after the report is 
submitted to Congress, shall submit to Congress the Comptroller 
General's views regarding the determination of the Secretary that is 
set forth in the report, together with any other findings that the 
Comptroller General considers appropriate.
    ``(f) Competitive Procedures Required.--Section 2304(c)(7) of this 
title shall not be used as the basis for an exception to the 
requirement to use competitive procedures for any contract for a depot-
level maintenance and repair workload described in subsection (b).
    ``(g) Reviews of Competitive Procedures.--If a solicitation of 
offers for a contract for, or award of, any depot-level maintenance and 
repair workload described in subsection (b) is issued, the Comptroller 
General shall--
        ``(1) within 45 days after the issuance of the solicitation, 
    review the solicitation and report to Congress on whether the 
    solicitation--
            ``(A) provides substantially equal opportunity for public 
        and private offerors to compete for the contract without regard 
        to the location at which the workload is to be performed; and
            ``(B) is in compliance with the requirements of this 
        section and all applicable provisions of law and regulations; 
        and
        ``(2) within 45 days after any contract or award resulting from 
    the solicitation is entered into or made, review the contract or 
    award, including the contracting or award process, and report to 
    Congress on whether--
            ``(A) the procedures used to conduct the competition--
                ``(i) provided substantially equal opportunity for 
            public and private offerors to compete for the contract 
            without regard to the location at which the workload is to 
            be performed; and
                ``(ii) were in compliance with the requirements of this 
            section and all applicable provisions of law and 
            regulations;
            ``(B) appropriate consideration was given to factors other 
        than cost in the selection of the source for performance of the 
        workload; and
            ``(C) the contract or award resulted in the lowest total 
        cost to the Department of Defense for performance of the 
        workload.
    ``(h) Resolution of Workload Award Objections.--Any public or 
private entity may, pursuant to procedures established by the 
Secretary, object to a solicitation of offers under this section for 
the performance of any depot-level maintenance and repair workload, or 
the award or proposed award of any workload pursuant to such a 
solicitation. The Secretary may designate a qualified individual or 
entity to review the objection; however, the Secretary shall not 
designate the Source Selection Authority or any individual from the 
same military department as the Source Selection Authority to review 
the objection. The Secretary shall take appropriate action to address 
any defect in the solicitation or award in the event that the objection 
is sustained.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2469 the 
following new item:
``2469a. Use of competitive procedures in contracting for performance of 
          depot-level maintenance and repair workloads formerly 
          performed at certain military installations.''.

    (b) Limitation Relating to Timing of Solicitation.--The first 
solicitation of offers from private sector sources for the performance 
of a depot-level maintenance and repair workload described in 
subsection (b) of section 2469a of title 10, United States Code, as 
added by subsection (a), may be issued pursuant to such section only 
after the date that is 30 days after the latest of the following:
        (1) The date on which the Secretary of Defense publishes and 
    submits to Congress a plan or Department of Defense directive that 
    sets forth the specific procedures for the conduct of competitions 
    among private and public sector entities for such depot-level 
    maintenance and repair workloads.
        (2) The date on which the Secretary of Defense submits to 
    Congress the report on allocation of workloads required under 
    subsection (c).
        (3) The date on which the Comptroller General is required to 
    submit the report to Congress under subsection (d).
    (c) Report of Allocation of Workload.--Before any solicitation of 
offers for the performance by a private sector source of a depot-level 
maintenance and repair workload at a closed or realigned installation 
described in subsection (b) of section 2469a of title 10, United States 
Code, as added by subsection (a), is to be issued, the Secretary of 
Defense shall submit to Congress a report describing the allocation 
proposed by the Secretary of all workloads that were performed at that 
closed or realigned military installation (as defined in subsection (a) 
of such section) as of July 1, 1995, including--
        (1) the workloads that are considered to be core logistics 
    functions under section 2464 of such title;
        (2) the workloads that are proposed to be transferred to a 
    military installation other than a closed or realigned military 
    installation;
        (3) the workloads that are proposed to be included in the 
    public-private competitions carried out under section 2469a of such 
    title, and, if any of such workloads are to be combined for 
    purposes of such a competition, the reasons for combining the 
    workloads, together with a description of how the workloads are to 
    be combined;
        (4) any workload that has been determined within the Department 
    of Defense as no longer being necessary;
        (5) the proposed schedule for implementing the allocations 
    covered by the report; and
        (6) the anticipated capacity utilization of the military 
    installations and former military installations to which workloads 
    are to be transferred, based on the maximum potential capacity 
    certified to the 1995 Defense Base Closure and Realignment 
    Commission, after the transfers are completed (not taking into 
    account any workloads that may be transferred as a result of a 
    public-private competition carried out under section 2469a of such 
    title, as described in paragraph (3)).
    (d) Review Regarding Award for C-5 Aircraft Workload.--(1) The 
Comptroller General shall conduct a review of the award for the 
performance of the C-5 aircraft workload that was made to Warner Robins 
Air Logistics Center. As part of the review, the Comptroller General 
shall--
        (A) determine whether the procedures used to conduct the 
    competition--
            (i) provided substantially equal opportunity for public and 
        private offerors to compete for the award without regard to the 
        location at which the workload is to be performed; and
            (ii) are in compliance with the requirements of all 
        applicable provisions of law and the Federal Acquisition 
        Regulation; and
        (B) determine whether that award results in the lowest total 
    cost to the Department of Defense for performance of the workload.
    (2) Not later than 60 days after the date of the enactment of this 
Act, the Comptroller General shall submit to Congress a report 
containing the results of the review.

SEC. 360. CLARIFICATION OF PROHIBITION ON MANAGEMENT OF DEPOT EMPLOYEES 
              BY CONSTRAINTS ON PERSONNEL LEVELS.

    Section 2472(a) of title 10, United States Code, is amended by 
striking out the first sentence and inserting in lieu thereof the 
following: ``The civilian employees of the Department of Defense, 
including the civilian employees of the military departments and the 
Defense Agencies, who perform, or are involved in the performance of, 
depot-level maintenance and repair workloads may not be managed on the 
basis of any constraint or limitation in terms of man years, end 
strength, full-time equivalent positions, or maximum number of 
employees.''.

SEC. 361. CENTERS OF INDUSTRIAL AND TECHNICAL EXCELLENCE.

    (a) Designation and Purpose.--(1) Chapter 146 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 2474. Centers of Industrial and Technical Excellence: 
            designation; public-private partnerships

    ``(a) Designation.--(1) The Secretary of Defense shall designate 
each depot-level activity of the military departments and the Defense 
Agencies (other than facilities approved for closure or major 
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)) as a 
Center of Industrial and Technical Excellence in the recognized core 
competencies of the activity.
    ``(2) The Secretary shall establish a policy to encourage the 
Secretary of each military department and the head of each Defense 
Agency to reengineer industrial processes and adopt best-business 
practices at their depot-level activities in connection with their core 
competency requirements, so as to serve as recognized leaders in their 
core competencies throughout the Department of Defense and in the 
national technology and industrial base (as defined in section 2500(1) 
of this title).
    ``(3) The Secretary of a military department may conduct a pilot 
program, consistent with applicable requirements of law, to test any 
practices referred to in paragraph (2) that the Secretary determines 
could improve the efficiency and effectiveness of depot-level 
operations, improve the support provided by depot-level activities for 
the armed forces user of the services of such activities, and enhance 
readiness by reducing the time that it takes to repair equipment.
    ``(b) Public-Private Partnerships.--The Secretary of Defense shall 
enable Centers of Industrial and Technical Excellence to enter into 
public-private cooperative arrangements for the performance of depot-
level maintenance and repair at such Centers and shall encourage the 
use of such arrangements to maximize the utilization of the capacity at 
such Centers. A public-private cooperative arrangement under this 
subsection shall be known as a `public-private partnership'.
    ``(c) Crediting of Amounts for Performance.--Amounts received by a 
Center for work performed under a public-private partnership shall be 
credited to the appropriation or fund, including a working-capital 
fund, that incurs the cost of performing the work.
    ``(d) Additional Work.--The policy required under subsection (a) 
shall include measures to enable a private sector entity that enters 
into a partnership arrangement under subsection (b) or leases excess 
equipment and facilities at a Center of Industrial and Technical 
Excellence pursuant to section 2471 of this title to perform additional 
work at the Center, subject to the limitations outlined in subsection 
(b) of such section, outside of the types of work normally assigned to 
the Center.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``2474. Centers of Industrial and Technical Excellence: designation; 
          public-private partnerships.''.

    (b) Lease of Excess Depot-Level Equipment and Facilities.--(1) 
Section 2471(c) of such title is amended to read as follows:
    ``(c) Conformance With Authority Under Section 2667.--The 
provisions of subsection (d) of section 2667 of this title shall apply 
to this section in the same manner as such provisions are applicable 
under that section.''.
    (2) Section 2667(d)(2) of such title is amended by inserting ``or 
working capital fund'' before ``from which''.
    (c) Reporting Requirement.--Not later than March 1, 1999, the 
Secretary of Defense shall submit to Congress a report on the policies 
established by the Secretary pursuant to section 2474 of title 10, 
United States Code, to implement the requirements of such section. The 
report shall include--
        (1) the details of any public-private partnerships entered into 
    as of that date under subsection (b) of such section;
        (2) the details of any leases entered into as of that date 
    under section 2471 of such title with authorized entities for dual-
    use (military and nonmilitary) purposes; and
        (3) the effect that the partnerships and leases had on capacity 
    utilization, depot rate structures, and readiness.

SEC. 362. 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, 1997'' and inserting in lieu thereof 
``September 30, 1999''.

SEC. 363. REPEAL OF A CONDITIONAL REPEAL OF CERTAIN DEPOT-LEVEL 
              MAINTENANCE AND REPAIR LAWS AND A RELATED REPORTING 
              REQUIREMENT.

    Section 311 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 247; 10 U.S.C. 2464 note) is 
amended by striking out subsections (f) and (g).

SEC. 364. PERSONNEL REDUCTIONS, ARMY DEPOTS PARTICIPATING IN ARMY 
              WORKLOAD AND PERFORMANCE SYSTEM.

    (a) Limitation.--Except as necessary to implement BRAC 1995 
decisions at Red River Army Depot, Texas, and Letterkenny Army Depot, 
Pennsylvania, the Secretary of the Army may not initiate a reduction in 
force of civilian employees at the five Army depots participating in 
the demonstration and testing of the Army Workload and Performance 
System until after the date on which the Secretary submits to Congress 
a report certifying that the Army Workload and Performance System is 
fully operational.
    (b) BRAC 1995 Decisions Defined.--The term ``BRAC 1995 decisions'' 
means the decisions to close or realign certain military installations 
resulting from the recommendations approved 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).

SEC. 365. REPORT ON ALLOCATION OF CORE LOGISTICS ACTIVITIES AMONG 
              DEPARTMENT OF DEFENSE FACILITIES AND PRIVATE SECTOR 
              FACILITIES.

    (a) Report.--Not later than May 31, 1998, the Secretary of Defense 
shall submit to Congress a report on the allocation among facilities of 
the Department of Defense and facilities in the private sector of the 
logistics activities that are necessary to maintain and repair the 
weapon systems and other military equipment identified by the 
Secretary, in consultation with the Chairman of the Joint Chiefs of 
Staff, as being necessary to enable the Armed Forces to conduct a 
strategic or major theater war.
    (b) Elements.--The report under subsection (a) shall set forth the 
following:
        (1) The systems or equipment identified under subsection (a) 
    that must be maintained and repaired in Government-owned, 
    Government-operated facilities, using personnel and equipment of 
    the Department, as a result of the Secretary's determination that--
            (A) the work involves unique or valuable workforce skills 
        that should be maintained in the public sector in the national 
        interest;
            (B) the base of private sector sources having the 
        capability to perform the workloads includes industry sectors 
        that are vulnerable to work stoppages;
            (C) the private sector sources having the capability to 
        perform the workloads have insufficient workforce levels or 
        skills to perform the depot-level maintenance and repair 
        workloads--
                (i) in the quantity necessary, or as rapidly as the 
            Secretary considers necessary, to enable the armed forces 
            to fulfill the national military strategy; or
                (ii) without a significant disruption or delay in the 
            maintenance and repair of equipment;
            (D) the need for performance of workloads is too 
        infrequent, cyclical, or variable to sustain a reliable base of 
        private sector sources having the workforce levels or skills to 
        perform the workloads;
            (E) the market conditions or workloads are insufficient to 
        ensure that the price of private sector performance of the 
        workloads can be controlled through competition or other means;
            (F) private sector sources are not adequately responsive to 
        the requirements of the Department for rapid, cost-effective, 
        and flexible response to surge requirements or other 
        contingency situations, including changes in the mix or 
        priority of previously scheduled workloads and reassignment of 
        employees to different workloads without the requirement for 
        additional contractual negotiations;
            (G) private sector sources are less willing to assume 
        responsibility for performing the workload as a result of the 
        possibility of direct military or terrorist attack; or
            (H) private sector sources cannot maintain continuity of 
        workforce expertise as a result of high rates of employee 
        turnover.
        (2) The systems or equipment identified under subsection (a) 
    that must be maintained and repaired in Government-owned 
    facilities, whether Government-operated or contractor-operated, as 
    a result of the Secretary's determination that--
            (A) the work involves facilities, technologies, or 
        equipment that are unique and sufficiently valuable that the 
        facilities, technologies, or equipment must be maintained in 
        the public sector in the national interest;
            (B) the private sector sources having the capability to 
        perform the workloads have insufficient facilities, technology, 
        or equipment to perform the depot-level maintenance and repair 
        workloads--
                (i) in the quantity necessary, or as rapidly as the 
            Secretary considers necessary, to enable the armed forces 
            to fulfill the national military strategy; or
                (ii) without a significant disruption or delay in the 
            maintenance and repair of equipment; or
            (C) the need for performance of workloads is too 
        infrequent, cyclical, or variable to sustain a reliable base of 
        private sector sources having the facilities, technology, or 
        equipment to perform the workloads.
        (3) The systems or equipment identified under subsection (a) 
    that may be maintained and repaired in private sector facilities.
        (4) The approximate percentage of the total maintenance and 
    repair workload of the Department of Defense necessary for the 
    systems and equipment identified under subsection (a) that would be 
    performed at Department of Defense facilities, and at private 
    sector facilities, as a result of the determinations made for 
    purposes of paragraphs (1), (2), and (3).

SEC. 366. REVIEW OF USE OF TEMPORARY DUTY ASSIGNMENTS FOR SHIP REPAIR 
              AND MAINTENANCE.

    (a) Findings.--Congress makes the following findings:
        (1) In order to reduce the time that the crew of a naval vessel 
    is away from the homeport of the vessel, the Navy seeks to perform 
    ship repair and maintenance of the vessel at the homeport of the 
    vessel whenever it takes six months or less to accomplish the work 
    involved.
        (2) At the same time, the Navy seeks to distribute ship repair 
    and maintenance work among the Navy shipyards (known as to ``level 
    load'') in order to more fully utilize personnel resources.
        (3) During periods when a Navy shipyard is not utilized to its 
    capacity, the Navy sometimes sends workers at the shipyard, on a 
    temporary duty basis, to perform ship repairs and maintenance at a 
    homeport not having a Navy shipyard.
        (4) This practice is a more efficient use of civilian employees 
    who might otherwise not be fully employed on work assigned to Navy 
    shipyards.
    (b) Comptroller General Review and Report.--(1) The Comptroller 
General shall review the Navy's practice of using temporary duty 
assignments of personnel to perform ship maintenance and repair work at 
homeports not having Navy shipyards. The review shall include the 
following:
        (A) An assessment of the rationale, conditions, and factors 
    supporting the Navy's practice.
        (B) A determination of whether the practice is cost-effective.
        (C) The factors affecting future requirements for, and the 
    adherence to, the practice, together with an assessment of the 
    factors.
    (2) Not later than May 1, 1998, the Comptroller General 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.

SEC. 367. SENSE OF CONGRESS REGARDING REALIGNMENT OF PERFORMANCE OF 
              GROUND COMMUNICATION-ELECTRONIC WORKLOAD.

    It is the sense of Congress that the transfer of the ground 
communication-electronic workload to Tobyhanna Army Depot, 
Pennsylvania, in the realignment of the performance of such function 
should be carried out in adherence to the schedule prescribed for that 
transfer by the Defense Depot Maintenance Council on March 13, 1997, as 
follows:
        (1) Transfer of 20 percent of the workload in fiscal year 1998.
        (2) Transfer of 40 percent of the workload in fiscal year 1999.
        (3) Transfer of 40 percent of the workload in fiscal year 2000.

  Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 371. REORGANIZATION OF LAWS REGARDING COMMISSARIES AND EXCHANGES 
              AND OTHER MORALE, WELFARE, AND RECREATION ACTIVITIES.

    (a) Description of Chapter.--(1) The heading of chapter 147 of 
title 10, United States Code, is amended to read as follows:

 ``CHAPTER 147--COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE, 
                      AND RECREATION ACTIVITIES''.

    (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 amended by 
striking out the item relating to chapter 147 and inserting in lieu 
thereof the following new item:

``147. Commissaries and Exchanges and Other Morale, Welfare, and 
Recreation Activities............................................2481''.

    (b) Transfer and Redesignation of Unrelated Provisions.--(1) 
Section 2481 of title 10, United States Code, is transferred to chapter 
159 of such title, inserted after section 2685, and redesignated as 
section 2686.
    (2) Sections 2483 and 2490 of such title are transferred to the end 
of subchapter III of chapter 169 of such title and redesignated as 
sections 2867 and 2868, respectively.
    (3) Section 2491 of such title is redesignated as section 2500.
    (c) Clerical Amendments.--(1) The table of sections at the 
beginning of chapter 147 of title 10, United States Code, is amended by 
striking out the items relating to sections 2481, 2483, and 2490.
    (2) The table of sections at the beginning of chapter 159 of such 
title is amended by inserting after the item relating to section 2685 
the following new item:
``2686. Utilities and services: sale; expansion and extension of systems 
          and facilities.''.

    (3) The table of sections at the beginning of subchapter III of 
chapter 169 of such title is amended by adding at the end the following 
new items:
``2867. Sale of electricity from alternate energy and cogeneration 
          production facilities.
``2868. Utility services: furnishing for certain buildings.''.

    (4) The table of sections at the beginning of subchapter I of 
chapter 148 of such title is amended by striking out the item relating 
to section 2491 and inserting in lieu thereof the following new item:
``2500. Definitions.''.

    (5) The tables of chapters at the beginning of subtitle A, and at 
the beginning of part IV of subtitle A, of such title are amended by 
striking out the item relating to chapter 148 and inserting in lieu 
thereof the following new item:

``148. National Defense Technology and Industrial Base, Defense 
Reinvestment, and Defense Conversion.............................2500''.

    (d) Conforming Amendments.--(1) Section 2534(d) of title 10, United 
States Code, is amended by striking out ``section 2491(1)'' both places 
it appears and inserting in lieu thereof ``section 2500(1)''.
    (2) Section 2865(b)(2) of such title is amended by striking out 
``section 2483(b)(2)'' and inserting in lieu thereof ``section 
2867(b)(2)''.

SEC. 372. MERCHANDISE AND PRICING REQUIREMENTS FOR COMMISSARY STORES.

    (a) Authorized Commissary Merchandise Categories.--Subsection (b) 
of section 2486 of title 10, United States Code, is amended--
        (1) by striking out the matter preceding paragraph (1) and 
    inserting in lieu thereof the following: ``(b) Authorized 
    Commissary Merchandise Categories.--Merchandise sold in, at, or by 
    commissary stores may include items only in the following 
    categories:''; and
        (2) by striking out paragraph (11) and inserting in lieu 
    thereof the following new paragraph:
        ``(11) Such other merchandise categories as the Secretary of 
    Defense may prescribe, except that the Secretary shall submit to 
    Congress, not later than March 1 of each year, a report 
    describing--
            ``(A) any addition of, or change in, a merchandise category 
        proposed to be made under this paragraph during the one-year 
        period beginning on that date; and
            ``(B) those additions and changes in merchandise categories 
        actually made during the preceding one-year period.''.
    (b) Codification of Uniform Sales Price Surcharge or Adjustment.--
Subsection (c) of such section is amended--
        (1) by inserting ``Uniform Sales Price Surcharge or 
    Adjustment.--'' after ``(c)'';
        (2) by striking out ``in commissary stores.'' and inserting in 
    lieu thereof ``in, at, or by commissary stores.''; and
        (3) by adding at the end the following new sentence: 
    ``Effective on the date of the enactment of the National Defense 
    Authorization Act for Fiscal Year 1998, the uniform percentage 
    shall be equal to five percent and may not be changed except by a 
    law enacted after such date.''.
    (c) Establishment of Sales Price; Congressional Notification.--
Subsection (d) of such section is amended to read as follows:
    ``(d) Sales Price Establishment.--(1) The Secretary of Defense 
shall establish the sales price of each item of merchandise sold in, 
at, or by commissary stores at the level that will recoup the actual 
product cost of the item (consistent with this section and sections 
2484 and 2685 of this title).
    ``(2) Any change in the pricing policies for merchandise sold in, 
at, or by commissary stores shall not take effect until the Secretary 
of Defense submits written notice of the proposed change to Congress 
and a period of 90 days of continuous session of Congress expires 
following the date on which notice was received. For purposes of this 
paragraph, the continuity of a session of Congress is broken only by an 
adjournment of the Congress sine die, and the days on which either 
House is not in session because of an adjournment or recess of more 
than three days to a day certain are excluded in a computation of such 
90-day period.''.
    (d) Special Rules for Certain Merchandise.--Such section is further 
amended by adding at the end the following new subsection:
    ``(f) Special Rules for Certain Merchandise.--(1) Notwithstanding 
the general requirement that merchandise sold in, at, or by commissary 
stores be commissary store inventory, the Secretary of Defense may 
authorize the sale of items in the merchandise categories specified in 
paragraph (2) as noncommissary store inventory. Subsections (c) and (d) 
shall not apply to the pricing of such merchandise items.
    ``(2) The merchandise categories referred to in paragraph (1) are 
as follows:
        ``(A) Magazines and other periodicals.
        ``(B) Tobacco products.''.
    (e) Clerical and Conforming Amendments.--Such section is further 
amended--
        (1) in subsection (a), by inserting ``In General.--'' after 
    ``(a)''; and
        (2) in subsection (e)--
            (A) by inserting ``Special Rule for Brand-Name Commercial 
        Items.--'' after ``(e)''; and
            (B) by striking out ``in commissary stores'' both places it 
        appears and inserting in lieu thereof ``in, at, or by 
        commissary stores''.
    (f) Report on Merchandise Categories.--Not later than 30 days after 
the date of the enactment of this Act, the Secretary of Defense shall 
submit to Congress a report specifying the merchandise categories 
authorized for sale sold in, at, or by commissary stores pursuant to 
regulations prescribed under subsection (b)(11) of section 2486 of 
title 10, United States Code, as in effect before such date.

SEC. 373. LIMITATION ON NONCOMPETITIVE PROCUREMENT OF BRAND-NAME 
              COMMERCIAL ITEMS FOR RESALE IN COMMISSARY STORES.

    Section 2486(e) of title 10, United States Code, as amended by 
section 372(e)(2), is further amended by adding at the end the 
following new sentence: ``In determining whether a brand name 
commercial item is regularly sold outside of commissary stores, the 
Secretary shall consider only sales of the item on a regional or 
national basis by commercial grocery or other retail operations 
consisting of multiple stores.''.

SEC. 374. TREATMENT OF REVENUES DERIVED FROM COMMISSARY STORE 
              ACTIVITIES.

    (a) Treatment of Revenues.--Section 2685 of title 10, United States 
Code, is amended by adding at the end the following new subsection:
    ``(e) Other Sources of Funds for Construction and Improvements.--
Revenues received by the Secretary of Defense from the following 
sources or activities of commissary store facilities shall be available 
for the purposes set forth in subsections (b), (c), and (d):
        ``(1) Sale of recyclable materials.
        ``(2) Sale of excess and surplus property.
        ``(3) License fees.
        ``(4) Royalties.
        ``(5) Fees paid by sources of products in order to obtain 
    favorable display of the products for resale, known as business 
    related management fees.''.
    (b) Clerical Amendments.--Such section is further amended--
        (1) in subsection (a), by inserting ``Adjustment or Surcharge 
    Authorized.--'' after ``(a)'';
        (2) in subsection (b), by inserting ``Use for Construction and 
    Improvement of Facilities.--'' after ``(b)'';
        (3) in subsection (c), by inserting ``Advance Obliga- tion.--'' 
    after ``(c)''; and
        (4) in subsection (d), by inserting ``Cooperation With 
    Nonappropriated Fund Instrumentalities.--'' after ``(d)''.

SEC. 375. MAINTENANCE, REPAIR, AND RENOVATION OF ARMED FORCES 
              RECREATION CENTER, EUROPE.

    Section 2247(b) of title 10, United States Code, is amended by 
striking out ``real property maintenance, and'' and inserting in lieu 
thereof ``the maintenance, repair, or renovation of real property, and 
the''.

SEC. 376. PLAN FOR USE OF PUBLIC AND PRIVATE PARTNERSHIPS TO BENEFIT 
              MORALE, WELFARE, AND RECREATION ACTIVITIES.

    (a) Plan Required.--The Secretary of Defense shall prepare a plan 
containing a proposal regarding the advisability and feasibility of 
permitting nonappropriated fund instrumentalities of the Department of 
Defense to enter into leases, licensing agreements, concession 
agreements, and other contracts with private persons and State or local 
governments to facilitate the provision of facilities, goods, or 
services to authorized patrons of nonappropriated fund 
instrumentalities and to generate revenues for the Department of 
Defense to be used solely for the benefit of nonappropriated fund 
instrumentalities.
    (b) Recommendations for Scope of Plan.--In developing the proposal 
under subsection (a), the Secretary shall include recommendations 
regarding the following:
        (1) The proposed criteria to be used to select goods or 
    services suitable for provision to patrons of nonappropriated fund 
    instrumentalities through a lease or other contractual arrangement.
        (2) The proposed mechanism to be used to assess the likely 
    impact of such a lease or other contractual arrangement on private 
    businesses in the locality that provide the same goods or services 
    proposed to be provided under such a lease or other contractual 
    arrangement.
        (3) The feasibility and desirability of authorizing persons who 
    are not authorized patrons of nonappropriated fund 
    instrumentalities to receive goods and services provided through 
    such a lease or other contractual arrangement.
        (4) The proposed mechanism to be used to ensure that such a 
    lease or contract will not be inconsistent with and will not 
    adversely affect the mission of the Department of Defense or the 
    nonappropriated fund instrumentality involved.
    (c) Submission of Plan.--Not later than March 1, 1998, the 
Secretary shall submit to Congress the plan required under subsection 
(a).

                       Subtitle F--Other Matters

SEC. 381. 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 
1998.--Of the amount authorized to be appropriated pursuant to section 
301(5) for operation and maintenance for Defense-wide activities--
        (1) $30,000,000 shall be available for providing educational 
    agencies assistance (as defined in subsection (d)(1)) to local 
    educational agencies; and
        (2) $5,000,000 shall be available for making educational 
    agencies payments (as defined in subsection (d)(2)) to local 
    educational agencies.
    (b) Notification.--Not later than June 30, 1998, the Secretary of 
Defense shall--
        (1) notify each local educational agency that is eligible for 
    educational agencies assistance for fiscal year 1998 of that 
    agency's eligibility for such assistance and the amount of such 
    assistance for which that agency is eligible; and
        (2) notify each local educational agency that is eligible for 
    an educational agencies payment for fiscal year 1998 of that 
    agency's eligibility for such payment and the amount of the payment 
    for which that agency is eligible.
    (c) Disbursement of Funds.--The Secretary of Defense shall disburse 
funds made available under paragraphs (1) and (2) of subsection (a) not 
later than 30 days after the date on which notification to the eligible 
local educational agencies is provided pursuant to subsection (b).
    (d) Definitions.--In this section:
        (1) The term ``educational agencies assistance'' means 
    assistance authorized under section 386(b) of the National Defense 
    Authorization Act for Fiscal Year 1993 (Public Law 102-484; 20 
    U.S.C. 7703 note).
        (2) The term ``educational agencies payments'' means payments 
    authorized under section 386(d) of the National Defense 
    Authorization Act for Fiscal Year 1993 (Public Law 102-484; 20 
    U.S.C. 7703 note).
        (3) The term ``local educational agency'' has the meaning given 
    that term in section 8013(9) of the Elementary and Secondary 
    Education Act of 1965 (20 U.S.C. 7713(9)).
    (e) Technical Correction Relating to Original Assistance 
Authority.--Section 386(c)(1) of the National Defense Authorization Act 
for Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 7703 note) is 
amended--
        (1) by striking out ``section 8003(a)'' and inserting in lieu 
    thereof ``section 8003(a)(1)''; and
        (2) by striking out ``(20 U.S.C. 7703(a))'' and inserting in 
    lieu thereof ``(20 U.S.C. 7703(a)(1))''.

SEC. 382. CENTER FOR EXCELLENCE IN DISASTER MANAGEMENT AND HUMANITARIAN 
              ASSISTANCE.

    (a) Establishment and Operation of Center.--(1) Chapter 7 of title 
10, United States Code, is amended by adding at the end the following 
new section:

``Sec. 182. Center for Excellence in Disaster Management and 
            Humanitarian Assistance

    ``(a) Establishment.--The Secretary of Defense may operate a Center 
for Excellence in Disaster Management and Humanitarian Assistance (in 
this section referred to as the `Center').
    ``(b) Missions.--(1) The Center shall be used to provide and 
facilitate education, training, and research in civil-military 
operations, particularly operations that require international disaster 
management and humanitarian assistance and operations that require 
coordination between the Department of Defense and other agencies.
    ``(2) The Center shall be used to make available high-quality 
disaster management and humanitarian assistance in response to 
disasters.
    ``(3) The Center shall be used to provide and facilitate education, 
training, interagency coordination, and research on the following 
additional matters:
        ``(A) Management of the consequences of nuclear, biological, 
    and chemical events.
        ``(B) Management of the consequences of terrorism.
        ``(C) Appropriate roles for the reserve components in the 
    management of such consequences and in disaster management and 
    humanitarian assistance in response to natural disasters.
        ``(D) Meeting requirements for information in connection with 
    regional and global disasters, including the use of advanced 
    communications technology as a virtual library.
        ``(E) Tropical medicine, particularly in relation to the 
    medical readiness requirements of the Department of Defense.
    ``(4) The Center shall develop a repository of disaster risk 
indicators for the Asia-Pacific region.
    ``(5) The Center shall perform such other missions as the Secretary 
of Defense may specify.
    ``(c) Joint Operation With Educational Institution Authorized.--The 
Secretary of Defense may enter into an agreement with appropriate 
officials of an institution of higher education to provide for joint 
operation of the Center. Any such agreement shall provide for the 
institution to furnish necessary administrative services for the 
Center, including administration and allocation of funds.
    ``(d) Acceptance of Donations.--(1) Except as provided in paragraph 
(2), the Secretary of Defense may accept, on behalf of the Center, 
donations to be used to defray the costs of the Center or to enhance 
the operation of the Center. Such donations may be accepted from any 
agency of the Federal Government, any State or local government, any 
foreign government, any foundation or other charitable organization 
(including any that is organized or operates under the laws of a 
foreign country), or any other private source in the United States or a 
foreign country.
    ``(2) The Secretary may not accept a donation under paragraph (1) 
if the acceptance of the donation would compromise or appear to 
compromise--
        ``(A) the ability of the Department of Defense, any employee of 
    the Department, or members of the armed forces, to carry out any 
    responsibility or duty of the Department in a fair and objective 
    manner; or
        ``(B) the integrity of any program of the Department of Defense 
    or of any person involved in such a program.
    ``(3) The Secretary shall prescribe written guidance setting forth 
the criteria to be used in determining whether or not the acceptance of 
a foreign donation would have a result described in paragraph (2).
    ``(4) Funds accepted by the Secretary under paragraph (1) as a 
donation on behalf of the Center shall be credited to appropriations 
available to the Department of Defense for the Center. Funds so 
credited shall be merged with the appropriations to which credited and 
shall be available for the Center for the same purposes and the same 
period as the appropriations with which merged.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``182. Center for Excellence in Disaster Management and Humanitarian 
          Assistance.''.

    (b) Funding for Fiscal Year 1998.--Of the funds authorized to be 
appropriated pursuant to section 301(5) for operation and maintenance 
for Defense-wide activities, $5,000,000 shall be available for the 
operation of the Center for Excellence in Disaster Management and 
Humanitarian Assistance established under section 182 of title 10, 
United States Code, as added by subsection (a).

SEC. 383. APPLICABILITY OF FEDERAL PRINTING REQUIREMENTS TO DEFENSE 
              AUTOMATED PRINTING SERVICE.

    (a) In General.--Subchapter I of chapter 8 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 195. Defense Automated Printing Service: applicability of 
            Federal printing requirements

    ``The Defense Automated Printing Service shall comply fully with 
the requirements of section 501 of title 44 relating to the production 
and procurement of printing, binding, and blank-book work.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by adding at the end the following new item:
``195. Defense Automated Printing Service: applicability of Federal 
          printing requirements.''.

SEC. 384. STUDY AND NOTIFICATION REQUIREMENTS FOR CONVERSION OF 
              COMMERCIAL AND INDUSTRIAL TYPE FUNCTIONS TO CONTRACTOR 
              PERFORMANCE.

    (a) Additional Notification Requirement.--Subsection (a)(1) of 
section 2461 of title 10, United States Code, is amended by inserting 
before the semicolon the following: ``and the anticipated length and 
cost of the study''.
    (b) Notification of Conversion Decision.--Subsection (b) of such 
section is amended by adding at the end the following new sentence: 
``The notification shall include the timetable for completing 
conversion of the function to contractor performance.''.
    (c) Waiver for Small Functions.--Subsection (d) of such section is 
amended by striking out ``45 or fewer'' and inserting in lieu thereof 
``20 or fewer''.

SEC. 385. COLLECTION AND RETENTION OF COST INFORMATION DATA ON 
              CONVERTED SERVICES AND FUNCTIONS.

    (a) Collection and Retention Required.--Section 2463 of title 10, 
United States Code, is amended to read as follows:

``Sec. 2463. Collection and retention of cost information data on 
            converted services and functions

    ``(a) Requirements in Connection With Conversion to Contractor 
Performance.--With respect to each contract converting the performance 
of a service or function of the Department of Defense to contractor 
performance (and any extension of such a contract), the Secretary of 
Defense shall collect, during the term of the contract or extension, 
but not to exceed five years, cost information data regarding 
performance of the service or function by private contractor employees.
    ``(b) Requirements in Connection With Return to Employee 
Performance.--Whenever the performance of a commercial or industrial 
type activity of the Department of Defense that is being performed by 
50 or more employees of a private contractor is changed to performance 
by civilian employees of the Department of Defense, the Secretary of 
Defense shall collect, for a five-year period, cost information data 
comparing--
        ``(1) the estimated costs of continued performance of such 
    activity by private contractor employees; and
        ``(2) the costs of performance of such activity by civilian 
    employees of the Department of Defense.
    ``(c) Retention of Information.--With regard to the conversion to 
or from contractor performance of a particular service or function of 
the Department of Defense, the Secretary of Defense shall provide for 
the retention of information collected under this section for at least 
a 10-year period beginning at the end of the final year in which the 
information is collected.''.
    (b) Clerical Amendment.--The item relating to such section in the 
table of sections at the beginning of chapter 146 of title 10, United 
States Code, is amended to read as follows:

``2463. Collection and retention of cost information data on converted 
          services and functions.''.

SEC. 386. FINANCIAL ASSISTANCE TO SUPPORT ADDITIONAL DUTIES ASSIGNED TO 
              ARMY NATIONAL GUARD.

    (a) Authority.--Chapter 1 of title 32, United States Code, is 
amended by adding at the end the following new section:

``Sec. 113. Federal financial assistance for support of additional 
            duties assigned to the Army National Guard

    ``(a) Authority.--The Secretary of the Army may provide financial 
assistance to a State to support activities carried out by the Army 
National Guard of the State in the performance of duties that the 
Secretary has assigned, with the consent of the Chief of the National 
Guard Bureau, to the Army National Guard of the State. The Secretary 
shall determine the amount of the assistance that is appropriate for 
the purpose.
    ``(b) Covered Activities.--Activities supported under this section 
may include only those activities that are carried out by the Army 
National Guard in the performance of responsibilities of the Secretary 
of the Army under paragraphs (6), (10), and (11) of section 3013(b) of 
title 10.
    ``(c) Disbursement Through National Guard Bureau.--The Secretary of 
the Army shall disburse any contribution under this section through the 
Chief of the National Guard Bureau.
    ``(d) Availability of Funds.--Funds appropriated for the Army for a 
fiscal year are available for providing financial assistance under this 
section in support of activities carried out by the Army National Guard 
during that fiscal year.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``113. Federal financial assistance for support of additional duties 
          assigned to the Army National Guard.''.

SEC. 387. COMPETITIVE PROCUREMENT OF PRINTING AND DUPLICATION SERVICES.

    (a) Extension of Requirement To Use Private-Sector Sources.--
Subsection (a) of section 351 of the National Defense Authorization Act 
for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 266) is amended--
        (1) by striking out ``and 1997'' and inserting in lieu thereof 
    ``through 1998''; and
        (2) by striking out ``Defense Printing Service'' and inserting 
    in lieu thereof ``Defense Automated Printing Service''.
    (b) Surcharge for Services.--Such section is further amended by 
adding at the end the following new subsection:
    ``(d) Conditions on Imposition of Surcharge.--(1) Any surcharge 
imposed by the Defense Automated Printing Service on printing and 
duplication services for the Department of Defense shall be based on 
direct services provided by the Defense Automated Printing Service and 
reflect the costs incurred by the Defense Automated Printing Service, 
as described in its annual budget.
    ``(2) The Defense Automated Printing Service may not impose a 
surcharge on any printing and duplication service for the Department of 
Defense that is procured from a source outside of the Department.''.
    (c) Authority To Procure Services From Government Printing 
Office.--Consistent with section 501 of title 44, United States Code, 
the Secretary of a military department or head of a Defense Agency may 
contract directly with the Government Printing Office for printing and 
duplication services otherwise available through the Defense Automated 
Printing Service.

SEC. 388. CONTINUATION AND EXPANSION OF DEMONSTRATION PROGRAM TO 
              IDENTIFY OVERPAYMENTS MADE TO VENDORS.

    (a) Scope of Program.--Section 354 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
268; 10 U.S.C. 2461 note) is amended--
        (1) in subsection (a), by striking out the second sentence; and
        (2) in subsection (b)(1), by striking out ``of the Defense 
    Logistics Agency that relate to (at least) fiscal years 1993, 1994, 
    and 1995'' and inserting in lieu thereof ``relating to fiscal years 
    after fiscal year 1993 of the working-capital funds and industrial, 
    commercial, and support type activities managed through the Defense 
    Business Operations Fund, except the Defense Logistics Agency to 
    the extent such records have already been audited''.
    (b) Collection Method; Contractor Payments.--Such section is 
further amended by striking out subsections (d) and (e) and inserting 
in lieu thereof the following new subsections:
    ``(d) Collection Method.--(1) In the case of an overpayment to a 
vendor identified under the demonstration program, the Secretary shall 
consider the use of the procedures specified in section 32.611 of the 
Federal Acquisition Regulation, regarding a setoff against existing 
invoices for payment to the vendor, as the first method by which the 
Department seeks to recover the amount of the overpayment (and any 
applicable interest and penalties) from the vendor.
    ``(2) The Secretary of Defense shall be solely responsible for 
notifying a vendor of an overpayment made to the vendor and identified 
under the demonstration program and for recovering the amount of the 
overpayment (and any applicable interest and penalties) from the 
vendor.
    ``(e) Fees for Contractor.--The Secretary shall pay to the 
contractor under the contract entered into under the demonstration 
program an amount not to exceed 25 percent of the total amount 
recovered by the Department (through the collection of overpayments and 
the use of setoffs) solely on the basis of information obtained as a 
result of the audits performed by the contractor under the program. 
When an overpayment is recovered through the use of a setoff, amounts 
for the required payment to the contractor shall be derived from funds 
available to the working-capital fund or industrial, commercial, or 
support type activity for which the overpayment is recovered.''.
    (c) GAO Review.--Not later than December 31, 1998, the Comptroller 
General shall submit to Congress a report containing the results of a 
review by the Comptroller General of the demonstration program 
conducted under section 354 of the National Defense Authorization Act 
for Fiscal Year 1996 (Public Law 104-106; 10 U.S.C. 2461 note). In the 
review, the Comptroller General shall--
        (1) assess the success of the methods used in the demonstration 
    program to identify overpayments made to vendors;
        (2) consider the types of overpayments identified and the 
    feasibility of avoiding such overpayments through contract 
    adjustments;
        (3) determine the total amount of overpayments recovered under 
    the demonstration program; and
        (4) develop recommendations for improving the process by which 
    overpayments are recovered by the Department of Defense.

SEC. 389. DEVELOPMENT OF STANDARD FORMS REGARDING PERFORMANCE WORK 
              STATEMENT AND REQUEST FOR PROPOSAL FOR CONVERSION OF 
              CERTAIN OPERATIONAL FUNCTIONS OF MILITARY INSTALLATIONS.

    (a) Standardization of Requirements.--The Secretary of Defense is 
authorized and encouraged to develop standard forms (to be known as a 
``standard performance work statement'' and a ``standard request for 
proposal'') for use in the consideration for conversion to contractor 
performance of commercial services and functions at military 
installations. A separate standard form shall be developed for each 
service and function.
    (b) Relationship to OMB Requirements.--A standard performance work 
statement or a standard request for proposal developed under subsection 
(a) must fulfill the basic requirements of the performance work 
statement or request for proposal otherwise required under the 
procedures and requirements of Office of Management and Budget Circular 
A-76 (or any successor administrative regulation or policy) in effect 
at the time the standard form will be used.
    (c) Priority Development of Certain Forms.--In developing standard 
performance work statements and standard requests for proposal, the 
Secretary shall give first priority to those commercial services and 
functions that the Secretary determines have been successfully 
converted to contractor performance on a repeated basis.
    (d) Incentive for Use.--Beginning not later than October 1, 1998, 
if a standard performance work statement or a standard request for 
proposal is developed under subsection (a) for a particular service and 
function, the standard form may be used in lieu of the performance work 
statement or request for proposal otherwise required under the 
procedures and requirements of Office of Management and Budget Circular 
A-76 in connection with the consideration for conversion to contractor 
performance of that service or function at a military installation.
    (e) Exclusion of Multifunction Conversion.--If a commercial service 
or function for which a standard form is developed under subsection (a) 
is combined with another service or function (for which such a form has 
not yet been developed) for purposes of considering the services and 
functions at the military installation for conversion to contractor 
performance, a standard performance work statement or a standard 
request for a proposal developed under subsection (a) may not be used 
in the conversion process in lieu of the procedures and requirements of 
Office of Management and Budget Circular A-76.
    (f) Effect on Other Laws.--Nothing in this section shall be 
construed to supersede any other requirements or limitations, 
specifically contained in chapter 146 of title 10, United States Code, 
on the conversion to contractor performance of activities performed by 
civilian employees of the Department of Defense.
    (g) GAO Report.--Not later than June 1, 1999, the Secretary of 
Defense shall submit to Congress a report reviewing the implementation 
of this section.
    (h) Military Installation Defined.--For purposes of this section, 
the term ``military installation'' means a base, camp, post, station, 
yard, center, homeport facility for any ship, or other activity under 
the jurisdiction of the Department of Defense, including any leased 
facility.

SEC. 390. BASE OPERATIONS SUPPORT FOR MILITARY INSTALLATIONS ON GUAM.

    (a) Contractor Use of Nonimmigrant Aliens.--Each contract for base 
operations support to be performed on Guam shall contain a condition 
that work under the contract may not be performed by any alien who is 
issued a visa or otherwise provided nonimmigrant status under section 
101(a)(15)(H)(ii) of the Immigration and Nationality Act (8 U.S.C. 
1101(a)(15)(H)(ii)).
    (b) Application of Section.--This section shall apply to contracts 
entered into, amended, or otherwise modified on or after the date of 
the enactment of this Act.

SEC. 391. WARRANTY CLAIMS RECOVERY PILOT PROGRAM.

    (a) Pilot Program Required.--The Secretary of Defense may carry out 
a pilot program to use commercial sources of services to improve the 
collection of Department of Defense claims under aircraft engine 
warranties.
    (b) Contracts.--Exercising the authority provided in section 3718 
of title 31, United States Code, the Secretary of Defense may enter 
into contracts under the pilot program to provide for the following 
services:
        (1) Collection services.
        (2) Determination of amounts owed the Department of Defense for 
    repair of aircraft engines for conditions covered by warranties.
        (3) Identification and location of the sources of information 
    that are relevant to collection of Department of Defense claims 
    under aircraft engine warranties, including electronic data bases 
    and document filing systems maintained by the Department of Defense 
    or by the manufacturers and suppliers of the aircraft engines.
        (4) Services to define the elements necessary for an effective 
    training program to enhance and improve the performance of 
    Department of Defense personnel in collecting and organizing 
    documents and other information that are necessary for efficient 
    filing, processing, and collection of Department of Defense claims 
    under aircraft engine warranties.
    (c) Contractor Fee.--Under the authority provided in section 
3718(d) of title 31, United States Code, a contract entered into under 
the pilot program shall provide for the contractor to be paid, out of 
the amount recovered by the contractor under the program, such 
percentages of the amount recovered as the Secretary of Defense 
determines appropriate.
    (d) Retention of Recovered Funds.--Subject to any obligation to pay 
a fee under subsection (c), any amount collected for the Department of 
Defense under the pilot program for a repair of an aircraft engine for 
a condition covered by a warranty shall be credited to an appropriation 
available for repair of aircraft engines for the fiscal year in which 
collected and shall be available for the same purposes and same period 
as the appropriation to which credited.
    (e) Regulations.--The Secretary of Defense shall prescribe 
regulations to carry out this section.
    (f) Termination of Authority.--The pilot program shall terminate on 
September 30, 1999, and contracts entered into under this section shall 
terminate not later than that date.
    (g) Reporting Requirements.--(1) Not later than January 1, 2000, 
the Secretary of Defense shall submit to Congress a report on the pilot 
program. The report shall include the following:
        (A) The number of contracts entered into under the program.
        (B) The extent to which the services provided under the 
    contracts resulted in financial benefits for the Federal 
    Government.
        (C) Any additional comments and recommendations that the 
    Secretary considers appropriate regarding use of commercial sources 
    of services for collection of Department of Defense claims under 
    aircraft engine warranties.
    (2) Not later than March 1, 2000, the Comptroller General shall 
submit to Congress a report containing the results of a review by the 
Comptroller General of the pilot program. In the review, the 
Comptroller General shall--
        (A) assess the success of the methods used in the demonstration 
    program to identify and recover Department of Defense claims under 
    aircraft engine warranties;
        (B) determine the total amount recovered by the Department of 
    Defense under the pilot program;
        (C) evaluate the report prepared by the Secretary under 
    paragraph (1); and
        (D) develop recommendations for improving the process by which 
    warranty claims are recovered by the Department of Defense.

SEC. 392. PROGRAM TO INVESTIGATE FRAUD, WASTE, AND ABUSE WITHIN 
              DEPARTMENT OF DEFENSE.

    The Secretary of Defense shall maintain a specific coordinated 
program for the investigation of evidence of fraud, waste, and abuse 
within the Department of Defense, particularly fraud, waste, and abuse 
regarding finance and accounting matters.

SEC. 393. MULTITECHNOLOGY AUTOMATED READER CARD DEMONSTRATION PROGRAM.

    (a) Program Required.--The Secretary of the Navy shall carry out a 
program to demonstrate expanded use of multitechnology automated reader 
cards throughout the Navy and the Marine Corps. The demonstration 
program shall include demonstration of the use of the so-called 
``smartship'' technology of the ship-to-shore work load/off load 
program of the Navy.
    (b) Period of Program.--The Secretary shall carry out the 
demonstration program for two years beginning not later than January 1, 
1998.
    (c) Report.--Not later than 90 days after termination of the 
demonstration program, the Secretary shall submit to Congress a report 
on the results of the program.
    (d) Funding.--Of the amount authorized to be appropriated pursuant 
to section 301(2) for operation and maintenance for the Navy, 
$36,000,000 shall be available for the demonstration program under this 
section, of which $6,300,000 shall be available for demonstration of 
the use of the so-called ``smartship'' technology of the ship-to-shore 
work load/off load program of the Navy.

SEC. 394. REDUCTION IN OVERHEAD COSTS OF INVENTORY CONTROL POINTS.

    (a) Report and Plan Required.--Not later than March 1, 1998, the 
Secretary of Defense shall submit to Congress a report containing a 
plan to reduce overhead costs of the supply management activities of 
the Defense Logistics Agency and the military departments (known as 
Inventory Control Points) so that the overhead costs for each fiscal 
year after fiscal year 2000 do not exceed eight percent of net sales at 
standard price by Inventory Control Points during that year.
    (b) Additional Report Requirement.--In addition to the plan, the 
report shall include the following:
        (1) An identification of inherently governmental, core and 
    noncore functions in Inventory Control Points and Distribution 
    Depots.
        (2) A description of efforts, other than prime vendor and 
    virtual prime vendor, underway or proposed to improve the 
    efficiency, incentives, and accountability in Department of Defense 
    supply, inventory and warehousing services and rates.
        (3) An identification and description of the benchmarks 
    established in the warehousing, distribution, and supply functions 
    of the Department and the relationship of the benchmarks to 
    performance measurement methods used in the private sector.
        (4) A description of the outcome-oriented performance measures 
    that are currently being used to evaluate Inventory Control Points 
    and Distribution Depots.
        (5) A specification of any legislative, regulatory, or 
    operational impediments to achieving the requirement in subsection 
    (a) and implementing best business practices in the warehousing, 
    distribution, and supply functions of the Department.
    (c) Definitions.--For purposes of this section:
        (1) The term ``overhead costs'' means the total expenses of the 
    Inventory Control Points, excluding--
            (A) annual materiel costs; and
            (B) military and civilian personnel related costs, defined 
        as personnel compensation and benefits under the March 1996 
        Department of Defense Financial Management Regulations, Volume 
        2A, Chapter 1, Budget Account Title File (Object Classification 
        Name/Code), object classifications 200, 211, 220, 221, 222, and 
        301.
        (2) The term ``net sales at standard price'' has the meaning 
    given that term in the March 1996 Department of Defense Financial 
    Management Regulations, Volume 2B, Chapter 9, and displayed in 
    ``Exhibit Fund--14 Revenue and Expenses'' for the supply management 
    business areas.

SEC. 395. INVENTORY MANAGEMENT.

    (a) Development and Submission of Schedule.--Not later than 180 
days after the date of the enactment of this Act, the Director of the 
Defense Logistics Agency shall develop and submit to Congress a 
schedule for implementing within the agency, for the supplies and 
equipment described in subsection (b), inventory practices identified 
by the Director as being the best commercial inventory practices for 
the acquisition and distribution of such supplies and equipment 
consistent with military requirements. The schedule shall provide for 
the implementation of such practices to be completed not later than 
three years after the date of the enactment of this Act.
    (b) Covered Supplies and Equipment.--Subsection (a) shall apply to 
the following types of supplies and equipment for the Department of 
Defense:
        (1) Medical and pharmaceutical.
        (2) Subsistence.
        (3) Clothing and textiles.
        (4) Commercially available electronics.
        (5) Construction.
        (6) Industrial.
        (7) Automotive.
        (8) Fuel.
        (9) Facilities maintenance.
    (c) Definition.--For purposes of this section, the term ``best 
commercial inventory practice'' includes a so-called prime vendor 
arrangement and any other practice that the Director determines will 
enable the Defense Logistics Agency to reduce inventory levels and 
holding costs while improving the responsiveness of the supply system 
to user needs.
    (d) Report on Expansion of Covered Supplies and Equipment.--Not 
later than March 1, 1998, the Comptroller General shall submit to 
Congress a report evaluating the feasibility of expanding the list of 
covered supplies and equipment under subsection (b) to include 
repairable items.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Permanent end strength levels to support two major regional 
          contingencies.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
          Reserves.
Sec. 413. End strengths for military technicians (dual status).

               Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    The Armed Forces are authorized strengths for active duty personnel 
as of September 30, 1998, as follows:
        (1) The Army, 495,000.
        (2) The Navy, 390,802.
        (3) The Marine Corps, 174,000.
        (4) The Air Force, 371,577.

SEC. 402. PERMANENT END STRENGTH LEVELS TO SUPPORT TWO MAJOR REGIONAL 
              CONTINGENCIES.

    (a) Change in Permanent End Strengths.--Subsection (b) of section 
691 of title 10, United States Code, is amended--
        (1) in paragraph (2), by striking out ``395,000'' and inserting 
    in lieu thereof ``390,802''; and
        (2) in paragraph (4), by striking out ``381,000'' and inserting 
    in lieu thereof ``371,577''.
    (b) Increased Flexibility for the Army.--Subsection (e) of such 
section is amended by inserting ``or, in the case of the Army, by not 
more than 1.5 percent'' before the period at the end.

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 
30, 1998, as follows:
        (1) The Army National Guard of the United States, 361,516.
        (2) The Army Reserve, 208,000.
        (3) The Naval Reserve, 94,294.
        (4) The Marine Corps Reserve, 42,000.
        (5) The Air National Guard of the United States, 108,002.
        (6) The Air Force Reserve, 73,447.
        (7) The Coast Guard Reserve, 8,000.
    (b) Adjustments.--The end strengths prescribed by subsection (a) 
for the Selected Reserve of any reserve component shall be 
proportionately reduced by--
        (1) the total authorized strength of units organized to serve 
    as units of the Selected Reserve of such 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, 
1998, the following number of Reserves to be serving on full-time 
active duty or full-time duty, in the case of members of the National 
Guard, for the purpose of organizing, administering, recruiting, 
instructing, or training the reserve components:
        (1) The Army National Guard of the United States, 22,310.
        (2) The Army Reserve, 11,500.
        (3) The Naval Reserve, 16,136.
        (4) The Marine Corps Reserve, 2,559.
        (5) The Air National Guard of the United States, 10,671.
        (6) The Air Force Reserve, 867.

SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL STATUS).

    (a) Authorization for Fiscal Year 1998.--The minimum number of 
military technicians (dual status) as of the last day of fiscal year 
1998 for the reserve components of the Army and the Air Force 
(notwithstanding section 129 of title 10, United States Code) shall be 
the following:
        (1) For the Army Reserve, 5,503.
        (2) For the Army National Guard of the United States, 23,125.
        (3) For the Air Force Reserve, 9,802.
        (4) For the Air National Guard of the United States, 22,853.
    (b) Requests for Future Fiscal Years.--Section 115(g) of title 10, 
United States Code, is amended by adding at the end the following new 
sentence: ``In each budget submitted by the President to Congress under 
section 1105 of title 31, the end strength requested for military 
technicians (dual status) for each reserve component of the Army and 
Air Force shall be specifically set forth.''.

              Subtitle C--Authorization of Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 1998 a total of 
$69,470,505,000. The authorization in the preceding sentence supersedes 
any other authorization of appropriations (definite or indefinite) for 
such purpose for fiscal year 1998.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Limitation on number of general and flag officers who may 
          serve in positions outside their own service.
Sec. 502. Exclusion of certain retired officers from limitation on 
          period of recall to active duty.
Sec. 503. Clarification of officers eligible for consideration by 
          promotion boards.
Sec. 504. Authority to defer mandatory retirement for age of officers 
          serving as chaplains.
Sec. 505. Increase in number of officers allowed to be frocked to grades 
          of colonel and Navy captain.
Sec. 506. Increased years of commissioned service for mandatory 
          retirement of regular generals and admirals in grades above 
          major general and rear admiral.
Sec. 507. Uniform policy for requirement of exemplary conduct by 
          commanding officers and others in authority.
Sec. 508. Report on the command selection process for District Engineers 
          of the Army Corps of Engineers.

                  Subtitle B--Reserve Component Matters

Sec. 511. Individual Ready Reserve activation authority.
Sec. 512. Termination of Mobilization Income Insurance Program.
Sec. 513. Correction of inequities in medical and dental care and death 
          and disability benefits for reserve members who incur or 
          aggravate an illness in the line of duty.
Sec. 514. Authority to permit non-unit assigned officers to be 
          considered by vacancy promotion board to general officer 
          grades.
Sec. 515. Prohibition on use of Air Force Reserve AGR personnel for Air 
          Force base security functions.
Sec. 516. Involuntary separation of reserve officers in an inactive 
          status.
Sec. 517. Federal status of service by National Guard members as honor 
          guards at funerals of veterans.

                    Subtitle C--Military Technicians

Sec. 521. Authority to retain on the reserve active-status list until 
          age 60 military technicians in the grade of brigadier general.
Sec. 522. Military technicians (dual status).
Sec. 523. Non-dual status military technicians.
Sec. 524. Report on feasibility and desirability of conversion of AGR 
          personnel to military technicians (dual status).

   Subtitle D--Measures To Improve Recruit Quality and Reduce Recruit 
                                Attrition

Sec. 531. Reform of military recruiting systems.
Sec. 532. Improvements in medical prescreening of applicants for 
          military service.
Sec. 533. Improvements in physical fitness of recruits.

               Subtitle E--Military Education and Training

                   Part I--Officer Education Programs

Sec. 541. Requirement for candidates for admission to United States 
          Naval Academy to take oath of allegiance.
Sec. 542. Service academy foreign exchange program.
Sec. 543. Reimbursement of expenses incurred for instruction at service 
          academies of persons from foreign countries.
Sec. 544. Continuation of support to senior military colleges.
Sec. 545. Report on making United States nationals eligible for 
          participation in Senior Reserve Officers' Training Corps.
Sec. 546. Coordination of establishment and maintenance of Junior 
          Reserve Officers' Training Corps units to maximize enrollment 
          and enhance efficiency.

                    Part II--Other Education Matters

Sec. 551. United States Naval Postgraduate School.
Sec. 552. Community College of the Air Force.
Sec. 553. Preservation of entitlement to educational assistance of 
          members of the Selected Reserve serving on active duty in 
          support of a contingency operation.

               Part III--Training of Army Drill Sergeants

Sec. 556. Reform of Army drill sergeant selection and training process.
Sec. 557. Training in human relations matters for Army drill sergeant 
          trainees.

  Subtitle F--Commission on Military Training and Gender-Related Issues

Sec. 561. Establishment and composition of Commission.
Sec. 562. Duties.
Sec. 563. Administrative matters.
Sec. 564. Termination of Commission.
Sec. 565. Funding.
Sec. 566. Subsequent consideration by Congress.

               Subtitle G--Military Decorations and Awards

Sec. 571. Purple Heart to be awarded only to members of the Armed 
          Forces.
Sec. 572. Eligibility for Armed Forces Expeditionary Medal for 
          participation in Operation Joint Endeavor or Operation Joint 
          Guard.
Sec. 573. Waiver of time limitations for award of certain decorations to 
          specified persons.
Sec. 574. Clarification of eligibility of members of Ready Reserve for 
          award of service medal for heroism.
Sec. 575. One-year extension of period for receipt of recommendations 
          for decorations and awards for certain military intelligence 
          personnel.
Sec. 576. Eligibility of certain World War II military organizations for 
          award of unit decorations.
Sec. 577. Retroactivity of Medal of Honor special pension.

                  Subtitle H--Military Justice Matters

Sec. 581. Establishment of sentence of confinement for life without 
          eligibility for parole.
Sec. 582. Limitation on appeal of denial of parole for offenders serving 
          life sentence.

                        Subtitle I--Other Matters

Sec. 591. Sexual harassment investigations and reports.
Sec. 592. Sense of the Senate regarding study of matters relating to 
          gender equity in the Armed Forces.
Sec. 593. Authority for personnel to participate in management of 
          certain non- Federal entities.
Sec. 594. Treatment of participation of members in Department of Defense 
          civil military programs.
Sec. 595. Comptroller General study of Department of Defense civil 
          military programs.
Sec. 596. Establishment of public affairs specialty in the Army.
Sec. 597. Grade of defense attache in France.
Sec. 598. Report on crew requirements of WC-130J aircraft.
Sec. 599. Improvement of missing persons authorities applicable to 
          Department of Defense.

                  Subtitle A--Officer Personnel Policy

SEC. 501. LIMITATION ON NUMBER OF GENERAL AND FLAG OFFICERS WHO MAY 
              SERVE IN POSITIONS OUTSIDE THEIR OWN SERVICE.

    (a) In General.--Chapter 41 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 721. General and flag officers: limitation on appointments, 
            assignments, details, and duties outside an officer's own 
            service

    ``(a) Limitation.--An officer described in subsection (b) may not 
be appointed, assigned, or detailed for a period in excess of 180 days 
to a position external to that officer's armed force if, immediately 
following such appointment, assignment, or detail, the number of 
officers described in subsection (b) serving in positions external to 
such officers' armed force would be in excess of 26.5 percent of the 
total number of the officers described in subsection (b).
    ``(b) Covered Officers.--The officers covered by subsection (a), 
and to be counted for the purposes of the limitation in that 
subsection, are the following:
        ``(1) Any general or flag officer counted for purposes of 
    section 526(a) of this title.
        ``(2) Any general or flag officer serving in a joint duty 
    assignment position designated by the Chairman of the Joint Chiefs 
    of Staff under section 526(b) of this title.
        ``(3) Any colonel or Navy captain counted for purposes of 
    section 777(d)(1) of this title.
    ``(c) External Positions.--For purposes of this section, the 
following positions shall be considered to be external to an officer's 
armed force:
        ``(1) Any position (including a position in joint education) 
    that is a joint duty assignment for purposes of chapter 38 of this 
    title.
        ``(2) Any position in the Office of the Secretary of Defense, a 
    Defense Agency, or a Department of Defense Field Activity.
        ``(3) Any position in the Joint Chiefs of Staff, the Joint 
    Staff, or the headquarters of a combatant command (as defined in 
    chapter 6 of this title).
        ``(4) Any position in the National Guard Bureau.
        ``(5) Any position outside the Department of Defense, including 
    any position in the headquarters of the North Atlantic Treaty 
    Organization or any other international military command, any 
    combined or multinational command, or military mission.
    ``(d) Treatment of Officers Holding Multiple Positions.--(1) If an 
officer described in subsection (b) simultaneously holds both a 
position external to that officer's armed force and another position 
not external to that officer's armed force, the Secretary of Defense 
shall determine whether that officer shall be counted for the purposes 
of this section.
    ``(2) The Secretary of Defense shall submit to Congress an annual 
report on the number of officers to whom paragraph (1) was applicable 
during the year covered by the report. The report shall set forth the 
determination made by the Secretary under that paragraph in each such 
case.
    ``(e) Assignments, Etc., for Periods in Excess of 180 Days.--For 
purposes of this section, the appointment, assignment, or detail of an 
officer to a position shall be considered to be for a period in excess 
of 180 days unless the appointment, assignment, or detail specifies 
that it is made for a period of 180 days or less.
    ``(f) Waiver During Period of War or National Emergency.--The 
President may suspend the operation of this section during any period 
of war or of national emergency declared by Congress or the 
President.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``721. General and flag officers: limitation on appointments, 
          assignments, details, and duties outside an officer's own 
          service.''.

SEC. 502. EXCLUSION OF CERTAIN RETIRED OFFICERS FROM LIMITATION ON 
              PERIOD OF RECALL TO ACTIVE DUTY.

    Section 688(e) of title 10, United States Code, is amended--
        (1) by inserting ``(1)'' before ``A member''; and
        (2) by adding at the end the following:
    ``(2) Paragraph (1) does not apply to the following officers:
        ``(A) A chaplain who is assigned to duty as a chaplain for the 
    period of active duty to which ordered.
        ``(B) A health care professional (as characterized by the 
    Secretary concerned) who is assigned to duty as a health care 
    professional for the period of active duty to which ordered.
        ``(C) An officer assigned to duty with the American Battle 
    Monuments Commission for the period of active duty to which 
    ordered.''.

SEC. 503. CLARIFICATION OF OFFICERS ELIGIBLE FOR CONSIDERATION BY 
              PROMOTION BOARDS.

    (a) Officers on the Active-Duty List.--Section 619(d) of title 10, 
United States Code, is amended--
        (1) by striking out ``grade--'' in the matter preceding 
    paragraph (1) and inserting in lieu thereof ``grade any of the 
    following officers:'';
        (2) in paragraph (1)--
            (A) by striking out ``an officer'' and inserting in lieu 
        thereof ``An officer''; and
            (B) by striking out ``; or'' at the end and inserting in 
        lieu thereof a period;
        (3) by redesignating paragraph (2) as paragraph (3) and in that 
    paragraph striking out ``an officer'' and inserting in lieu thereof 
    ``An officer''; and
        (4) by inserting after paragraph (1) the following new 
    paragraph (2):
        ``(2) An officer who is recommended for promotion to that grade 
    in the report of an earlier selection board convened under that 
    section, in the case of such a report that has not yet been 
    approved by the President.''.
    (b) Officers on the Reserve Active-Status List.--Section 14301(c) 
of such title is amended--
        (1) by striking out ``grade--'' in the matter preceding 
    paragraph (1) and inserting in lieu thereof ``grade any of the 
    following officers:'';
        (2) by striking out ``an officer'' in each of paragraphs (1), 
    (2), and (3) and inserting in lieu thereof ``An officer'';
        (3) by striking out the semicolon at the end of paragraph (1) 
    and inserting in lieu thereof a period;
        (4) by striking out ``; or'' at the end of paragraph (2) and 
    inserting in lieu thereof a period;
        (5) by redesignating paragraphs (2) and (3), as so amended, as 
    paragraphs (3) and (4), respectively, and in each such paragraph 
    striking out ``the next higher grade'' and inserting in lieu 
    thereof ``that grade''; and
        (6) by inserting after paragraph (1) the following new 
    paragraph (2):
        ``(2) An officer who is recommended for promotion to that grade 
    in the report of an earlier selection board convened under a 
    provision referred to in paragraph (1), in the case of such a 
    report that has not yet been approved by the President.''.
    (c) Clarifying Amendments.--Paragraphs (3) and (4) of section 
14301(c) of such title, as redesignated and amended by subsection (b), 
are each amended by inserting before the period at the end the 
following: ``, if that nomination is pending before the Senate''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act and shall apply with 
respect to selection boards that are convened under section 611(a), 
14101(a), or 14502 of title 10, United States Code, on or after that 
date.

SEC. 504. AUTHORITY TO DEFER MANDATORY RETIREMENT FOR AGE OF OFFICERS 
              SERVING AS CHAPLAINS.

    (a) Authority for Deferral of Retirement for Chaplains.--Subsection 
(c) of section 1251 of title 10, United States Code, is amended--
        (1) by redesignating paragraphs (2) and (3) as paragraphs (3) 
    and (4), respectively; and
        (2) by inserting after paragraph (1) the following new 
    paragraph (2):
    ``(2) The Secretary concerned may defer the retirement under 
subsection (a) of an officer who is appointed or designated as a 
chaplain if the Secretary determines that such deferral is in the best 
interest of the military department concerned.''.
    (b) Authority for Deferral of Retirement for Chief and Deputy Chief 
of Chaplains.--Such section is further amended by adding at the end the 
following new subsection:
    ``(d) The Secretary concerned may defer the retirement under 
subsection (a) of an officer who is the Chief of Chaplains or Deputy 
Chief of Chaplains of that officer's armed force. Such a deferment may 
not extend beyond the first day of the month following the month in 
which the officer becomes 68 years of age.''.
    (c) Qualification for Service as Navy Chief of Chaplains or Deputy 
Chief of Chaplains.--(1) Section 5142(b) of such title is amended by 
striking out ``, who are not on the retired list,''.
    (2) Section 5142a of such title is amended by striking ``, who is 
not on the retired list,''.

SEC. 505. INCREASE IN NUMBER OF OFFICERS ALLOWED TO BE FROCKED TO 
              GRADES OF COLONEL AND NAVY CAPTAIN.

    Section 777(d)(2) of title 10, United States Code, is amended by 
inserting after ``1 percent'' the following: ``, or, for the grades of 
colonel and Navy captain, 2 percent,''.

SEC. 506. INCREASED YEARS OF COMMISSIONED SERVICE FOR MANDATORY 
              RETIREMENT OF REGULAR GENERALS AND ADMIRALS IN GRADES 
              ABOVE MAJOR GENERAL AND REAR ADMIRAL.

    (a) Years of Service.--Section 636 of title 10, United States Code, 
is amended--
        (1) by striking out ``Except as provided'' and inserting in 
    lieu thereof ``(a) Major Generals and Rear Admirals Serving in 
    Grade.--Except as provided in subsection (b) or (c) and''; and
        (2) by adding at the end the following:
    ``(b) Lieutenant Generals and Vice Admirals.--In the administration 
of subsection (a) in the case of an officer who is serving in the grade 
of lieutenant general or vice admiral, the number of years of active 
commissioned service applicable to the officer is 38 years.
    ``(c) Generals and Admirals.--In the administration of subsection 
(a) in the case of an officer who is serving in the grade of general or 
admiral, the number of years of active commissioned service applicable 
to the officer is 40 years.''.
    (b) Section Heading.--The heading of such section is amended to 
read as follows:

``Sec. 636. Retirement for years of service: regular officers in grades 
            above brigadier general and rear admiral (lower half)''.

    (c) Clerical Amendment.--The item relating to such section in the 
table of sections at the beginning of subchapter III of chapter 36 of 
such title is amended to read as follows:

``636. Retirement for years of service: regular officers in grades above 
          brigadier general and rear admiral (lower half).''.

SEC. 507. UNIFORM POLICY FOR REQUIREMENT OF EXEMPLARY CONDUCT BY 
              COMMANDING OFFICERS AND OTHERS IN AUTHORITY.

    (a) Army.--(1) Chapter 345 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 3583. Requirement of exemplary conduct

    ``All commanding officers and others in authority in the Army are 
required--
        ``(1) to show in themselves a good example of virtue, honor, 
    patriotism, and subordination;
        ``(2) to be vigilant in inspecting the conduct of all persons 
    who are placed under their command;
        ``(3) to guard against and suppress all dissolute and immoral 
    practices, and to correct, according to the laws and regulations of 
    the Army, all persons who are guilty of them; and
        ``(4) to take all necessary and proper measures, under the 
    laws, regulations, and customs of the Army, to promote and 
    safeguard the morale, the physical well-being, and the general 
    welfare of the officers and enlisted persons under their command or 
    charge.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``3583. Requirement of exemplary conduct.''.

    (b) Air Force.--(1) Chapter 845 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 8583. Requirement of exemplary conduct

    ``All commanding officers and others in authority in the Air Force 
are required--
        ``(1) to show in themselves a good example of virtue, honor, 
    patriotism, and subordination;
        ``(2) to be vigilant in inspecting the conduct of all persons 
    who are placed under their command;
        ``(3) to guard against and suppress all dissolute and immoral 
    practices, and to correct, according to the laws and regulations of 
    the Air Force, all persons who are guilty of them; and
        ``(4) to take all necessary and proper measures, under the 
    laws, regulations, and customs of the Air Force, to promote and 
    safeguard the morale, the physical well-being, and the general 
    welfare of the officers and enlisted persons under their command or 
    charge.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``8583. Requirement of exemplary conduct.''.

SEC. 508. REPORT ON THE COMMAND SELECTION PROCESS FOR DISTRICT 
              ENGINEERS OF THE ARMY CORPS OF ENGINEERS.

    Not later than March 31, 1998, the Secretary of the Army shall 
submit to Congress a report on the command selection process for 
officers serving as District Engineers of the Corps of Engineers. The 
report shall include the following:
        (1) An identification of each major Corps of Engineers project 
    that--
            (A) is being carried out by each District Engineer as of 
        the date of the report; or
            (B) is being planned by each District Engineer to be 
        carried out during the five-year period beginning on the date 
        of the report.
        (2) The expected start and completion dates, during that 
    period, for each major phase of each project identified under 
    paragraph (1).
        (3) The expected dates for changes in the District Engineer in 
    each Corps of Engineers District during that period.
        (4) A plan for optimizing the timing of changes in the District 
    Engineer in each such District so that there is minimal disruption 
    to major phases of major Corps of Engineers projects.
        (5) A review of the effect on the Corps of Engineers, and on 
    the mission of each District of the Corps of Engineers, of allowing 
    major command tours of District Engineers to be of two-to-four 
    years in duration, with the selection of the exact timing of the 
    change of command to be at the discretion of the Chief of 
    Engineers, who shall act with the goal of optimizing the timing of 
    each change so that it has minimal disruption on the mission of the 
    District Engineer.

                 Subtitle B--Reserve Component Matters

SEC. 511. INDIVIDUAL READY RESERVE ACTIVATION AUTHORITY.

    (a) IRR Members Subject to Order to Active Duty Other Than During 
War or National Emergency.--Section 10144 of title 10, United States 
Code, is amended--
        (1) by inserting ``(a)'' before ``Within the Ready Reserve''; 
    and
        (2) by adding at the end the following new subsection:
    ``(b)(1) Within the Individual Ready Reserve of each reserve 
component there is a category of members, as designated by the 
Secretary concerned, who are subject to being ordered to active duty 
involuntarily in accordance with section 12304 of this title. A member 
may not be placed in that mobilization category unless--
        ``(A) the member volunteers for that category; and
        ``(B) the member is selected for that category by the Secretary 
    concerned, based upon the needs of the service and the grade and 
    military skills of that member.
    ``(2) A member of the Individual Ready Reserve may not be carried 
in such mobilization category of members after the end of the 24-month 
period beginning on the date of the separation of the member from 
active service.
    ``(3) The Secretary shall designate the grades and military skills 
or specialities of members to be eligible for placement in such 
mobilization category.
    ``(4) A member in such mobilization category shall be eligible for 
benefits (other than pay and training) as are normally available to 
members of the Selected Reserve, as determined by the Secretary of 
Defense.''.
    (b) Criteria for Ordering to Active Duty.--Subsection (a) of 
section 12304 of title 10, United States Code, is amended by inserting 
after ``of this title),'' the following: ``or any member in the 
Individual Ready Reserve mobilization category and designated as 
essential under regulations prescribed by the Secretary concerned,''.
    (c) Maximum Number.--Subsection (c) of such section is amended--
        (1) by inserting ``and the Individual Ready Reserve'' after 
    ``Selected Reserve''; and
        (2) by inserting ``, of whom not more than 30,000 may be 
    members of the Individual Ready Reserve'' before the period at the 
    end.
    (d) Conforming Amendments.--Such section is further amended--
        (1) in subsection (f), by inserting ``or Individual Ready 
    Reserve'' after ``Selected Reserve'';
        (2) in subsection (g), by inserting ``, or any member of the 
    Individual Ready Reserve,'' after ``to serve as a unit''; and
        (3) by adding at the end the following new subsection:
    ``(i) For purposes of this section, the term `Individual Ready 
Reserve mobilization category' means, in the case of any reserve 
component, the category of the Individual Ready Reserve described in 
section 10144(b) of this title.''.
    (e) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:

``Sec. 12304. Selected Reserve and certain Individual Ready Reserve 
            members; order to active duty other than during war or 
            national emergency''.

    (2) The item relating to section 12304 in the table of sections at 
the beginning of chapter 1209 of such title is amended to read as 
follows:

``12304. Selected Reserve and certain Individual Ready Reserve members; 
          order to active duty other than during war or national 
          emergency.''.

SEC. 512. TERMINATION OF MOBILIZATION INCOME INSURANCE PROGRAM.

    (a) In General.--Chapter 1214 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 12533. Termination of program

    ``(a) In General.--The Secretary shall terminate the insurance 
program in accordance with this section.
    ``(b) Termination of New Enrollments.--The Secretary may not enroll 
a member of the Ready Reserve for coverage under the insurance program 
after the date of the enactment of this section.
    ``(c) Termination of Coverage.--(1) The enrollment under the 
insurance program of insured members other than insured members 
described in paragraph (2) is terminated as of the date of the 
enactment of this section. The enrollment of an insured member 
described in paragraph (2) is terminated as of the date of the 
termination of the period of covered service of that member described 
in that paragraph.
    ``(2) An insured member described in this paragraph is an insured 
member who on the date of the enactment of this section is serving on 
covered service for a period of service, or has been issued an order 
directing the performance of covered service, that satisfies or would 
satisfy the entitlement-to-benefits provisions of this chapter.
    ``(d) Termination of Payment of Benefits.--The Secretary may not 
make any benefit payment under the insurance program after the date of 
the enactment of this section other than to an insured member who on 
that date (1) is serving on an order to covered service, (2) has been 
issued an order directing performance of covered service, or (3) has 
served on covered service before that date for which benefits under the 
program have not been paid to the member.
    ``(e) Termination of Insurance Fund.--The Secretary shall close the 
Fund not later than 60 days after the date on which the last benefit 
payment from the Fund is made. Any amount remaining in the Fund when 
closed shall be covered into the Treasury as miscellaneous receipts.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``12533. Termination of program.''.

SEC. 513. CORRECTION OF INEQUITIES IN MEDICAL AND DENTAL CARE AND DEATH 
              AND DISABILITY BENEFITS FOR RESERVE MEMBERS WHO INCUR OR 
              AGGRAVATE AN ILLNESS IN THE LINE OF DUTY.

    (a) Medical and Dental Care for Members.--Section 1074a of title 
10, United States Code, is amended--
        (1) in subsection (a)(3), by inserting ``while remaining 
    overnight immediately before the commencement of inactive-duty 
    training, or'' after ``in the line of duty''; and
        (2) by adding at the end the following new subsection:
    ``(e) A member of a uniformed service described in paragraph (1)(A) 
or (2)(A) of subsection (a) whose orders are modified or extended, 
while the member is being treated for (or recovering from) the injury, 
illness, or disease incurred or aggravated in the line of duty, so as 
to result in active duty for a period of more than 30 days shall be 
entitled, while the member remains on active duty, to medical and 
dental care on the same basis and to the same extent as members covered 
by section 1074(a) of this title.''.
    (b) Medical and Dental Care for Dependents.--Section 1076(a) of 
such title is amended by striking out paragraph (2) and inserting in 
lieu thereof the following new paragraph:
    ``(2) A dependent referred to in paragraph (1) is a dependent of a 
member of a uniformed service described in one of the following 
subparagraphs:
        ``(A) A member who is on active duty for a period of more than 
    30 days or died while on that duty.
        ``(B) A member who died from an injury, illness, or disease 
    incurred or aggravated--
            ``(i) while the member was on active duty under a call or 
        order to active duty of 30 days or less, on active duty for 
        training, or on inactive-duty training; or
            ``(ii) while the member was traveling to or from the place 
        at which the member was to perform, or had performed, such 
        active duty, active duty for training, or inactive-duty 
        training.
        ``(C) A member who died from an injury, illness, or disease 
    incurred or aggravated in the line of duty while the member 
    remained overnight immediately before the commencement of inactive-
    duty training, or while the member remained overnight between 
    successive periods of inactive-duty training, at or in the vicinity 
    of the site of the inactive-duty training, if the site was outside 
    reasonable commuting distance from the member's residence.
        ``(D) A member who incurred or aggravated an injury, illness, 
    or disease in the line of duty while serving on active duty for a 
    period of 30 days or less (or while traveling to or from the place 
    of such duty) and the member's orders are modified or extended, 
    while the member is being treated for (or recovering from) the 
    injury, illness, or disease, so as to result in active duty for a 
    period of more than 30 days. However, this subparagraph entitles 
    the dependent to medical and dental care only while the member 
    remains on active duty.''.
    (c) Eligibility for Disability Retirement or Separation.--(1) 
Section 1204(2) of such title is amended to read as follows:
        ``(2) the disability--
            ``(A) was incurred before September 24, 1996, as the 
        proximate result of--
                ``(i) performing active duty or inactive-duty training;
                ``(ii) traveling directly to or from the place at which 
            such duty is performed; or
                ``(iii) an injury, illness, or disease incurred or 
            aggravated while remaining overnight, immediately before 
            the commencement of inactive-duty training, or 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 of the inactive-duty 
            training is outside reasonable commuting distance of the 
            member's residence; or
            ``(B) is a result of an injury, illness, or disease 
        incurred or aggravated in line of duty after September 23, 
        1996--
                ``(i) while performing active duty or inactive-duty 
            training;
                ``(ii) while traveling directly to or from the place at 
            which such duty is performed; or
                ``(iii) while remaining overnight, immediately before 
            the commencement of inactive-duty training, or 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 of the inactive-duty 
            training is outside reasonable commuting distance of the 
            member's residence;''.
    (2) Section 1206 of such title is amended--
        (A) by redesignating paragraphs (2), (3), and (4) as paragraphs 
    (3), (4), and (5), respectively, and
        (B) by inserting after paragraph (1) the following new 
    paragraph (2):
        ``(2) the disability is a result of an injury, illness, or 
    disease incurred or aggravated in line of duty while--
            ``(A) performing active duty or inactive-duty training;
            ``(B) traveling directly to or from the place at which such 
        duty is performed; or
            ``(C) while remaining overnight immediately before the 
        commencement of inactive-duty training, or 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 
        of the member's residence;''.
    (d) Conforming Amendments and Related Clerical Amendments.--(1) The 
heading of section 1204 of title 10, United States Code, is amended to 
read as follows:

``Sec. 1204. Members on active duty for 30 days or less or on inactive-
            duty training: retirement''.

    (2) The heading of section 1206 of such title is amended to read as 
follows:

``Sec. 1206. Members on active duty for 30 days or less or on inactive-
            duty training: separation''.

    (3) The table of sections at the beginning of chapter 61 of such 
title is amended--
        (A) by striking out the item relating to section 1204 and 
    inserting in lieu thereof the following:
``1204. Members on active duty for 30 days or less or on inactive-duty 
          training: retirement.'';

    and
        (B) by striking out the item relating to section 1206 and 
    inserting in lieu thereof the following:
``1206. Members on active duty for 30 days or less or on inactive-duty 
          training: separation.''.

    (e) Recovery, Care, and Disposition of Remains.--Section 
1481(a)(2)(D) of such title is amended by inserting ``remaining 
overnight immediately before the commencement of inactive-duty 
training, or'' after ``(D)''.
    (f) Entitlement to Basic Pay.--Section 204 of title 37, United 
States Code, is amended by inserting ``while remaining overnight 
immediately before the commencement of inactive-duty training, or'' in 
subsections (g)(1)(D) and (h)(1)(D) after ``in line of duty''.
    (g) Compensation for Inactive-Duty Training.--Section 206(a)(3)(C) 
of title 37, United States Code, is amended by inserting ``while 
remaining overnight immediately before the commencement of inactive-
duty training, or'' after ``in line of duty''.

SEC. 514. AUTHORITY TO PERMIT NON-UNIT ASSIGNED OFFICERS TO BE 
              CONSIDERED BY VACANCY PROMOTION BOARD TO GENERAL OFFICER 
              GRADES.

    (a) Convening of Selection Boards.--Section 14101(a)(2) of title 
10, United States Code, is amended by striking out ``(except in the 
case of a board convened to consider officers as provided in section 
14301(e) of this title)''.
    (b) Eligibility for Consideration of Certain Army Officers.--
Section 14301 of such title is amended--
        (1) by striking out subsection (e); and
        (2) by redesignating subsections (f) and (g) as subsections (e) 
    and (f), respectively.
    (c) General Officer Promotions.--Section 14308 of such title is 
amended--
        (1) in subsection (e)(2), by inserting ``a grade below colonel 
    in'' after ``(2) an officer in''; and
        (2) in subsection (g)--
            (A) by inserting ``or the Air Force'' in the first sentence 
        after ``of the Army'' the first place it appears;
            (B) by striking out ``in that grade'' in the first sentence 
        and all that follows through ``Secretary of the Army'' and 
        inserting in lieu thereof ``in the Army Reserve or the Air 
        Force Reserve, as the case may be, in that grade''; and
            (C) by striking out the second sentence.
    (d) Vacancy Promotions.--Section 14315(b)(1) of such title is 
amended by striking out ``duties'' in clause (A) and all that follows 
through ``as a unit,'' and inserting in lieu thereof ``duties of a 
general officer of the next higher reserve grade in the Army 
Reserve,''.

SEC. 515. PROHIBITION ON USE OF AIR FORCE RESERVE AGR PERSONNEL FOR AIR 
              FORCE BASE SECURITY FUNCTIONS.

    (a) In General.--Chapter 1215 of title 10, United States Code, is 
amended by striking out

                       ``[No present sections]''

and inserting in lieu thereof the following:

``Sec.
12551. Prohibition of use of Air Force Reserve AGR personnel for Air 
          Force base security functions.

``Sec. 12551. Prohibition of use of Air Force Reserve AGR personnel for 
            Air Force base security functions

    ``(a) Limitation.--The Secretary of the Air Force may not use 
members of the Air Force Reserve who are AGR personnel for the 
performance of force protection, base security, or security police 
functions at an Air Force facility in the United States.
    ``(b) AGR Personnel Defined.--In this section, the term `AGR 
personnel' means members of the Air Force Reserve who are on active 
duty (other than for training) in connection with organizing, 
administering, recruiting, instructing, or training the Air Force 
Reserve.''.
    (b) Clerical Amendment.--The items relating to chapter 1215 in the 
tables of chapters at the beginning of subtitle E, and at the beginning 
of part II of subtitle E, are amended to read as follows:

``1215. Miscellaneous Prohibitions and Penalties................12551''.

SEC. 516. INVOLUNTARY SEPARATION OF RESERVE OFFICERS IN AN INACTIVE 
              STATUS.

    (a) Authority for Involuntary Separation of Certain Inactive Status 
Officers.--Section 12683(b) of title 10, United States Code, is 
amended--
        (1) in the matter preceding paragraph (1), by striking out 
    ``apply--'' and inserting in lieu thereof ``apply to any of the 
    following:''; and
        (2) by adding at the end the following new paragraph:
        ``(4) A separation of an officer who is in an inactive status 
    in the Standby Reserve and who is not qualified for transfer to the 
    Retired Reserve or is qualified for transfer to the Retired Reserve 
    and does not apply for such a transfer.''.
    (b) Stylistic Amendments.--Such section is further amended--
        (1) in paragraphs (1), (2), and (3), by striking out ``to a'' 
    and inserting in lieu thereof ``A'';
        (2) by striking out the semicolon at the end of paragraph (1) 
    and inserting in lieu thereof a period; and
        (3) by striking out ``; and'' at the end of paragraph (2) and 
    inserting in lieu thereof a period.

SEC. 517. FEDERAL STATUS OF SERVICE BY NATIONAL GUARD MEMBERS AS HONOR 
              GUARDS AT FUNERALS OF VETERANS.

    (a) In General.--(1) Chapter 1 of title 32, United States Code, is 
amended by adding after section 113, as added by section 386(a), the 
following new section:

``Sec. 114. Honor guard functions at funerals for veterans

    ``(a) Subject to such regulations and restrictions as may be 
prescribed by the Secretary concerned, the performance of honor guard 
functions by members of the National Guard at funerals for veterans of 
the armed forces may be treated by the Secretary concerned as a Federal 
function for which appropriated funds may be used. Any such performance 
of honor guard functions at such a funeral may not be considered to be 
a period of drill or training otherwise required.
    ``(b) This section does not authorize additional appropriations for 
any fiscal year. Any expense of the National Guard that is incurred by 
reason of this section shall be paid from appropriations otherwise 
available for the National Guard.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding after the item relating to section 
113, as added by section 386(b), the following new item:

``114. Honor guard functions at funerals for veterans.''.

                    Subtitle C--Military Technicians

SEC. 521. AUTHORITY TO RETAIN ON THE RESERVE ACTIVE-STATUS LIST UNTIL 
              AGE 60 MILITARY TECHNICIANS IN THE GRADE OF BRIGADIER 
              GENERAL.

    (a) Retention.--Section 14702(a) of title 10, United States Code, 
is amended--
        (1) by striking out ``section 14506 or 14507'' and inserting in 
    lieu thereof ``section 14506, 14507, or 14508''; and
        (2) by striking out ``or colonel'' and inserting in lieu 
    thereof ``colonel, or brigadier general''.
    (b) Technical Amendment.--Section 14508(c) of such title is amended 
by striking out ``not later than the date on which the officer becomes 
60 years of age'' and inserting in lieu thereof ``not later than the 
last day of the month in which the officer becomes 60 years of age''.

SEC. 522. MILITARY TECHNICIANS (DUAL STATUS).

    (a) Definition.--Subsection (a) of section 10216 of title 10, 
United States Code, is amended to read as follows:
    ``(a) In General.--(1) For purposes of this section and any other 
provision of law, a military technician (dual status) is a Federal 
civilian employee who--
        ``(A) is employed under section 3101 of title 5 or section 709 
    of title 32;
        ``(B) is required as a condition of that employment to maintain 
    membership in the Selected Reserve; and
        ``(C) is assigned to a position as a technician in the 
    administration and training of the Selected Reserve or in the 
    maintenance and repair of supplies or equipment issued to the 
    Selected Reserve or the armed forces.
    ``(2) Military technicians (dual status) shall be authorized and 
accounted for as a separate category of civilian employees.''.
    (b) Unit Membership and Dual Status Requirement.--Such section is 
further amended by striking out subsection (d) and inserting in lieu 
thereof the following:
    ``(d) Unit Membership Requirement.--(1) Unless specifically 
exempted by law, each individual who is hired as a military technician 
(dual status) after December 1, 1995, shall be required as a condition 
of that employment to maintain membership in--
        ``(A) the unit of the Selected Reserve by which the individual 
    is employed as a military technician; or
        ``(B) a unit of the Selected Reserve that the individual is 
    employed as a military technician to support.
    ``(2) Paragraph (1) does not apply to a military technician (dual 
status) who is employed by the Army Reserve in an area other than Army 
Reserve troop program units.
    ``(e) Dual Status Requirement.--(1) Funds appropriated for the 
Department of Defense may not (except as provided in paragraph (2)) be 
used for compensation as a military technician of any individual hired 
as a military technician after February 10, 1996, who is no longer a 
member of the Selected Reserve.
    ``(2) The Secretary concerned may pay compensation described in 
paragraph (1) to an individual described in that paragraph who is no 
longer a member of the Selected Reserve for a period not to exceed six 
months following the individual's loss of membership in the Selected 
Reserve if the Secretary determines that such loss of membership was 
not due to the failure of that individual to meet military 
standards.''.
    (c) National Guard Dual Status Requirement.--Section 709(b) of 
title 32, United States Code, is amended by striking out ``Except as 
prescribed by the Secretary concerned, a technician'' and inserting in 
lieu thereof ``A technician''.
    (d) Plan for Clarification of Statutory Authority of Military 
Technicians.--(1) The Secretary of Defense shall submit to Congress, as 
part of the budget justification materials submitted in support of the 
budget for the Department of Defense for fiscal year 1999, a 
legislative proposal to provide statutory authority and clarification 
under title 5, United States Code--
        (A) for the hiring, management, promotion, separation, and 
    retirement of military technicians who are employed in support of 
    units of the Army Reserve or Air Force Reserve; and
        (B) for the transition to the competitive service of an 
    individual who is hired as a military technician in support of a 
    unit of the Army Reserve or Air Force Reserve and who (as 
    determined by the Secretary concerned) fails to maintain membership 
    in the Selected Reserve through no fault of the individual.
    (2) The legislative proposal under paragraph (1) shall be developed 
in consultation with the Director of the Office of Personnel 
Management.
    (e) Conforming Repeal.--Section 8016 of Public Law 104-61 (109 
Stat. 654; 10 U.S.C. 10101 note) is repealed.
    (f) Cross-Reference Corrections.--Section 10216(c)(1) of title 10, 
United States Code, is amended by striking out ``subsection (a)(1)'' in 
subparagraphs (A), (B), (C), and (D) and inserting in lieu thereof 
``subsection (b)(1)''.
    (g) Conforming Amendments to Section 10216.--Section 10216 of title 
10, United States Code, is further amended as follows:
        (1) The heading of subsection (b) is amended by inserting 
    ``(Dual Status)'' after ``Military Technicians''.
        (2) Subsection (b)(1) is amended--
            (A) by inserting ``(dual status)'' after ``for military 
        technicians'';
            (B) by striking out ``dual status military technicians'' 
        and inserting in lieu thereof ``military technicians (dual 
        status)''; and
            (C) by inserting ``(dual status)'' after ``military 
        technicians'' in subparagraph (C).
        (3) Subsection (b)(2) is amended by inserting ``(dual status)'' 
    after ``military technicians'' both places it appears.
        (4) Subsection (b)(3) is amended by inserting ``(dual status)'' 
    after ``Military technician''.
        (5) Subsection (c) is amended--
            (A) in the matter preceding paragraph (1)(A), by inserting 
        ``(dual status)'' after ``military technicians'';
            (B) in paragraph (1), by striking out ``dual-status 
        technicians'' in subparagraphs (A), (B), (C), and (D) and 
        inserting in lieu thereof ``military technicians (dual 
        status)'';
            (C) in paragraph (2)(A), by inserting ``(dual status)'' 
        after ``military technician''; and
            (D) in paragraph (2)(B), by striking out ``delineate--'' 
        and all that follows through ``or other reasons'' in clause 
        (ii) and inserting in lieu thereof ``delineate the specific 
        force structure reductions''.
    (h) Clerical Amendments.--(1) The heading of section 10216 of such 
title is amended to read as follows:

``Sec. 10216. Military technicians (dual status)''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 1007 of such title is amended to read as 
follows:

``10216. Military technicians (dual status).''.

    (i) Other Conforming Amendments.--(1) Section 115(g) of such title 
is amended by inserting ``(dual status)'' in the first sentence after 
``military technicians'' and in the second sentence after ``military 
technician''.
    (2) Section 115a(h) of such title is amended--
        (A) by inserting ``(displayed in the aggregate and separately 
    for military technicians (dual status) and non-dual status military 
    technicians)'' in the matter preceding paragraph (1) after ``of the 
    following''; and
        (B) by striking out paragraph (3).

SEC. 523. NON-DUAL STATUS MILITARY TECHNICIANS.

    (a) In General.--(1) Chapter 1007 of title 10, United States Code, 
is amended by adding at the end the following new section:

``Sec. 10217. Non-dual status military technicians

    ``(a) Definition.--For the purposes of this section and any other 
provision of law, a non-dual status military technician is a civilian 
employee of the Department of Defense serving in a military technician 
position who--
        ``(1) was hired as a military technician before the date of the 
    enactment of the National Defense Authorization Act for Fiscal Year 
    1998 under any of the authorities specified in subsection (c); and
        ``(2) as of the date of the enactment of that Act is not a 
    member of the Selected Reserve or after such date ceased to be a 
    member of the Selected Reserve.
    ``(b) Employment Authorities.--The authorities referred to in 
subsection (a) are the following:
        ``(1) Section 10216 of this title.
        ``(2) Section 709 of title 32.
        ``(3) The requirements referred to in section 8401 of title 5.
        ``(4) Section 8016 of the Department of Defense Appropriations 
    Act, 1996 (Public Law 104-61; 109 Stat. 654), and any comparable 
    provision of law enacted on an annual basis in the Department of 
    Defense Appropriations Acts for fiscal years 1984 through 1995.
        ``(5) Any memorandum of agreement between the Department of 
    Defense and the Office of Personnel Management providing for the 
    hiring of military technicians.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``10217. Non-dual status military technicians.''.

    (b) Limitation.--The number of civilian employees of a military 
department who are non-dual status military technicians as of September 
30, 1998, may not exceed the following:
        (1) For the Army Reserve, 1,500.
        (2) For the Army National Guard of the United States, 2,400.
        (3) For the Air Force Reserve, 0.
        (4) For the Air National Guard of the United States, 450.
    (c) Report Required.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
Congress a report containing the number of military technician 
positions that are held by non-dual status military technicians as of 
September 30, 1997, shown separately for each of the following:
        (1) The Army Reserve.
        (2) The Army National Guard of the United States.
        (3) The Air Force Reserve.
        (4) The Air National Guard of the United States.
    (d) Plan for Full Utilization of Military Technicians (Dual 
Status).--(1) Not later than 180 days after the date of the enactment 
of this Act, the Secretary of Defense shall submit to Congress a plan 
for ensuring that, on and after September 30, 2007, all military 
technician positions are held only by military technicians (dual 
status).
    (2) The plan shall provide for achieving, by September 30, 2002, a 
50 percent reduction, by conversion of positions or otherwise, in the 
number of non-dual status military technicians that are holding 
military technicians positions, as compared with the number of non-dual 
status technicians that held military technician positions as of 
September 30, 1997, as specified in the report under subsection (c).
    (3) Among the alternative actions to be considered in developing 
the plan, the Secretary shall consider the feasibility and cost of each 
of the following:
        (A) Eliminating or consolidating technician functions and 
    positions.
        (B) Contracting with private sector sources for the performance 
    of functions performed by military technicians.
        (C) Converting non-dual status military technician positions to 
    military technician (dual status) positions or to positions in the 
    competitive service or, in the case of positions of the Army 
    National Guard of the United States or the Air National Guard of 
    the United States, to positions of State employment.
        (D) Use of incentives to facilitate attainment of the 
    objectives specified for the plan in paragraphs (1) and (2).
    (4) The Secretary shall submit with the plan any recommendations 
for legislation that the Secretary considers necessary to carry out the 
plan.
    (e) Definitions for Categories of Military Technicians.--In this 
section:
        (1) The term ``non-dual status military technician'' has the 
    meaning given that term in section 10217 of title 10, United States 
    Code, as added by subsection (a).
        (2) The term ``military technician (dual status)'' has the 
    meaning given the term in section 10216(a) of such title.

SEC. 524. REPORT ON FEASIBILITY AND DESIRABILITY OF CONVERSION OF AGR 
              PERSONNEL TO MILITARY TECHNICIANS (DUAL STATUS).

    (a) Report Required.--Not later than January 1, 1998, the Secretary 
of Defense shall submit to Congress a report on the feasibility and 
desirability of conversion of AGR personnel to military technicians 
(dual status). The report shall--
        (1) identify advantages and disadvantages of such a conversion;
        (2) identify possible savings if such a conversion were to be 
    carried out; and
        (3) set forth the recommendation of the Secretary as to whether 
    such a conversion should be made.
    (b) AGR Personnel Defined.--For purposes of subsection (a), the 
term ``AGR personnel'' means members of the Army or Air Force reserve 
components who are on active duty (other than for training) in 
connection with organizing, administering, recruiting, instructing, or 
training their respective reserve components.

  Subtitle D--Measures To Improve Recruit Quality and Reduce Recruit 
                               Attrition

SEC. 531. REFORM OF MILITARY RECRUITING SYSTEMS.

    (a) In General.--The Secretary of Defense shall carry out reforms 
in the recruiting systems of the Army, Navy, Air Force, and Marine 
Corps in order to improve the quality of new recruits and to reduce 
attrition among recruits.
    (b) Specific Reforms.--As part of the reforms in military 
recruiting systems to be undertaken under subsection (a), the Secretary 
shall take the following steps:
        (1) Improve the system of pre-enlistment waivers and separation 
    codes used for recruits by (A) revising and updating those waivers 
    and codes to allow more accurate and useful data collection about 
    those separations, and (B) prescribing regulations to ensure that 
    those waivers and codes are interpreted in a uniform manner by the 
    military services.
        (2) Develop a reliable database for (A) analyzing (at both the 
    Department of Defense and service-level) data on reasons for 
    attrition of new recruits, and (B) undertaking Department of 
    Defense or service-specific measures (or both) to control and 
    manage such attrition.
        (3) Require that the Secretary of each military department (A) 
    adopt or strengthen incentives for recruiters to thoroughly 
    prescreen potential candidates for recruitment, and (B) link 
    incentives for recruiters, in part, to the ability of a recruiter 
    to screen out unqualified candidates before enlistment.
        (4) Require that the Secretary of each military department 
    include as a measurement of recruiter performance the percentage of 
    persons enlisted by a recruiter who complete initial combat 
    training or basic training.
        (5) Assess trends in the number and use of waivers over the 
    1991-1997 period that were issued to permit applicants to enlist 
    with medical or other conditions that would otherwise be 
    disqualifying.
        (6) Require the Secretary of each military department to 
    implement policies and procedures (A) to ensure the prompt 
    separation of recruits who are unable to successfully complete 
    basic training, and (B) to remove those recruits from the training 
    environment while separation proceedings are pending.
    (c) Report.--Not later than March 31, 1998, the Secretary shall 
submit to Congress a report of the trends assessed under subsection 
(b)(5). The information on those trends provided in the report shall be 
shown by armed force and by category of waiver. The report shall 
include recommendations of the Secretary for changing, revising, or 
limiting the use of waivers referred to in that subsection.

SEC. 532. IMPROVEMENTS IN MEDICAL PRESCREENING OF APPLICANTS FOR 
              MILITARY SERVICE.

    (a) In General.--The Secretary of Defense shall improve the medical 
prescreening of applicants for entrance into the Army, Navy, Air Force, 
or Marine Corps.
    (b) Specific Steps.--As part of those improvements, the Secretary 
shall take the following steps:
        (1) Require that each applicant for service in the Army, Navy, 
    Air Force, or Marine Corps (A) provide to the Secretary the name of 
    the applicant's medical insurer and the names of past medical 
    providers, and (B) sign a release allowing the Secretary to request 
    and obtain medical records of the applicant.
        (2) Require that the forms and procedures for medical 
    prescreening of applicants that are used by recruiters and by 
    Military Entrance Processing Commands be revised so as to ensure 
    that medical questions are specific, unambiguous, and tied directly 
    to the types of medical separations most common for recruits during 
    basic training and follow-on training.
        (3) Add medical screening tests to the examinations of recruits 
    carried out by Military Entrance Processing Stations, provide more 
    thorough medical examinations to selected groups of applicants, or 
    both, to the extent that the Secretary determines that to do so 
    could be cost effective in reducing attrition at basic training.
        (4) Provide for an annual quality control assessment of the 
    effectiveness of the Military Entrance Processing Commands in 
    identifying medical conditions in recruits that existed before 
    enlistment in the Armed Forces, each such assessment to be 
    performed by an agency or contractor other than the Military 
    Entrance Processing Commands.

SEC. 533. IMPROVEMENTS IN PHYSICAL FITNESS OF RECRUITS.

    (a) In General.--The Secretary of Defense shall take steps to 
improve the physical fitness of recruits before they enter basic 
training.
    (b) Specific Steps.--As part of those improvements, the Secretary 
shall take the following steps:
        (1) Direct the Secretary of each military department to 
    implement programs under which new recruits who are in the Delayed 
    Entry Program are encouraged to participate in physical fitness 
    activities before reporting to basic training.
        (2) Develop a range of incentives for new recruits to 
    participate in physical fitness programs, as well as for those 
    recruits who improve their level of fitness while in the Delayed 
    Entry Program, which may include access to Department of Defense 
    military fitness facilities, and access to military medical 
    facilities in the case of a recruit who is injured while 
    participating in physical activities with recruiters or other 
    military personnel.
        (3) Evaluate whether partnerships between recruiters and 
    reserve components, or other innovative arrangements, could provide 
    a pool of qualified personnel to assist in the conduct of physical 
    training programs for new recruits in the Delayed Entry Program.

              Subtitle E--Military Education and Training

                   PART I--OFFICER EDUCATION PROGRAMS

SEC. 541. REQUIREMENT FOR CANDIDATES FOR ADMISSION TO UNITED STATES 
              NAVAL ACADEMY TO TAKE OATH OF ALLEGIANCE.

    (a) Requirement.--Section 6958 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(d) To be admitted to the Naval Academy, an appointee must take 
and subscribe to an oath prescribed by the Secretary of the Navy. If a 
candidate for admission refuses to take and subscribe to the prescribed 
oath, the candidate's appointment is terminated.''.
    (b) Exception for Midshipmen From Foreign Countries.--Section 6957 
of such title is amended by adding at the end the following new 
subsection:
    ``(d) A person receiving instruction under this section is not 
subject to section 6958(d) of this title.''.

SEC. 542. SERVICE ACADEMY FOREIGN EXCHANGE PROGRAM.

    (a) United States Military Academy.--(1) Chapter 403 of title 10, 
United States Code, is amended by inserting after section 4344 the 
following new section:

``Sec. 4345. Exchange program with foreign military academies

    ``(a) Exchange Program Authorized.--The Secretary of the Army may 
permit a student enrolled at a military academy of a foreign country to 
receive instruction at the Academy in exchange for a cadet receiving 
instruction at that foreign military academy pursuant to an exchange 
agreement entered into between the Secretary and appropriate officials 
of the foreign country. Students receiving instruction at the Academy 
under the exchange program shall be in addition to persons receiving 
instruction at the Academy under section 4344 of this title.
    ``(b) Limitations on Number and Duration of Exchanges.--An exchange 
agreement under this section between the Secretary and a foreign 
country shall provide for the exchange of students on a one-for-one 
basis each fiscal year. Not more than 10 cadets and a comparable number 
of students from all foreign military academies participating in the 
exchange program may be exchanged during any fiscal year. The duration 
of an exchange may not exceed the equivalent of one academic semester 
at the Academy.
    ``(c) Costs and Expenses.--(1) A student from a military academy of 
a foreign country is not entitled to the pay, allowances, and 
emoluments of a cadet by reason of attendance at the Academy under the 
exchange program, and the Department of Defense may not incur any cost 
of international travel required for transportation of such a student 
to and from the sponsoring foreign country.
    ``(2) The Secretary may provide a student from a foreign country 
under the exchange program, during the period of the exchange, with 
subsistence, transportation within the continental United States, 
clothing, health care, and other services to the same extent that the 
foreign country provides comparable support and services to the 
exchanged cadet in that foreign country.
    ``(3) The Academy shall bear all costs of the exchange program from 
funds appropriated for the Academy. Expenditures in support of the 
exchange program may not exceed $50,000 during any fiscal year.
    ``(d) Application of Other Laws.--Subsections (c) and (d) of 
section 4344 of this title shall apply with respect to a student 
enrolled at a military academy of a foreign country while attending the 
Academy under the exchange program.
    ``(e) Regulations.--The Secretary shall prescribe regulations to 
implement this section. Such regulations may include qualification 
criteria and methods of selection for students of foreign military 
academies to participate in the exchange program.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 4344 the 
following new item:
``4345. Exchange program with foreign military academies.''.

    (b) Naval Academy.--(1) Chapter 603 of title 10, United States 
Code, is amended by inserting after section 6957 the following new 
section:

``Sec. 6957a. Exchange program with foreign military academies

    ``(a) Exchange Program Authorized.--The Secretary of the Navy may 
permit a student enrolled at a military academy of a foreign country to 
receive instruction at the Naval Academy in exchange for a midshipman 
receiving instruction at that foreign military academy pursuant to an 
exchange agreement entered into between the Secretary and appropriate 
officials of the foreign country. Students receiving instruction at the 
Academy under the exchange program shall be in addition to persons 
receiving instruction at the Academy under section 6957 of this title.
    ``(b) Limitations on Number and Duration of Exchanges.--An exchange 
agreement under this section between the Secretary and a foreign 
country shall provide for the exchange of students on a one-for-one 
basis each fiscal year. Not more than 10 midshipmen and a comparable 
number of students from all foreign military academies participating in 
the exchange program may be exchanged during any fiscal year. The 
duration of an exchange may not exceed the equivalent of one academic 
semester at the Naval Academy.
    ``(c) Costs and Expenses.--(1) A student from a military academy of 
a foreign country is not entitled to the pay, allowances, and 
emoluments of a midshipman by reason of attendance at the Naval Academy 
under the exchange program, and the Department of Defense may not incur 
any cost of international travel required for transportation of such a 
student to and from the sponsoring foreign country.
    ``(2) The Secretary may provide a student from a foreign country 
under the exchange program, during the period of the exchange, with 
subsistence, transportation within the continental United States, 
clothing, health care, and other services to the same extent that the 
foreign country provides comparable support and services to the 
exchanged midshipman in that foreign country.
    ``(3) The Naval Academy shall bear all costs of the exchange 
program from funds appropriated for the Academy. Expenditures in 
support of the exchange program may not exceed $50,000 during any 
fiscal year.
    ``(d) Application of Other Laws.--Subsections (c) and (d) of 
section 6957 of this title shall apply with respect to a student 
enrolled at a military academy of a foreign country while attending the 
Naval Academy under the exchange program.
    ``(e) Regulations.--The Secretary shall prescribe regulations to 
implement this section. Such regulations may include qualification 
criteria and methods of selection for students of foreign military 
academies to participate in the exchange program.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 6957 the 
following new item:
``6957a. Exchange program with foreign military academies.''.

    (c) Air Force Academy.--(1) Chapter 903 of title 10, United States 
Code, is amended by inserting after section 9344 the following new 
section:

``Sec. 9345. Exchange program with foreign military academies

    ``(a) Exchange Program Authorized.--The Secretary of the Air Force 
may permit a student enrolled at a military academy of a foreign 
country to receive instruction at the Air Force Academy in exchange for 
an Air Force cadet receiving instruction at that foreign military 
academy pursuant to an exchange agreement entered into between the 
Secretary and appropriate officials of the foreign country. Students 
receiving instruction at the Academy under the exchange program shall 
be in addition to persons receiving instruction at the Academy under 
section 9344 of this title.
    ``(b) Limitations on Number and Duration of Exchanges.--An exchange 
agreement under this section between the Secretary and a foreign 
country shall provide for the exchange of students on a one-for-one 
basis each fiscal year. Not more than 10 Air Force cadets and a 
comparable number of students from all foreign military academies 
participating in the exchange program may be exchanged during any 
fiscal year. The duration of an exchange may not exceed the equivalent 
of one academic semester at the Air Force Academy.
    ``(c) Costs and Expenses.--(1) A student from a military academy of 
a foreign country is not entitled to the pay, allowances, and 
emoluments of an Air Force cadet by reason of attendance at the Air 
Force Academy under the exchange program, and the Department of Defense 
may not incur any cost of international travel required for 
transportation of such a student to and from the sponsoring foreign 
country.
    ``(2) The Secretary may provide a student from a foreign country 
under the exchange program, during the period of the exchange, with 
subsistence, transportation within the continental United States, 
clothing, health care, and other services to the same extent that the 
foreign country provides comparable support and services to the 
exchanged Air Force cadet in that foreign country.
    ``(3) The Air Force Academy shall bear all costs of the exchange 
program from funds appropriated for the Academy. Expenditures in 
support of the exchange program may not exceed $50,000 during any 
fiscal year.
    ``(d) Application of Other Laws.--Subsections (c) and (d) of 
section 9344 of this title shall apply with respect to a student 
enrolled at a military academy of a foreign country while attending the 
Air Force Academy under the exchange program.
    ``(e) Regulations.--The Secretary shall prescribe regulations to 
implement this section. Such regulations may include qualification 
criteria and methods of selection for students of foreign military 
academies to participate in the exchange program.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 9344 the 
following new item:
``9345. Exchange program with foreign military academies.''.

    (d) Repeal of Obsolete Limitation.--Section 9353(a) of such title 
is amended by striking out ``After the date of the accrediting of the 
Academy, the'' and inserting in lieu thereof ``The''.

SEC. 543. REIMBURSEMENT OF EXPENSES INCURRED FOR INSTRUCTION AT SERVICE 
              ACADEMIES OF PERSONS FROM FOREIGN COUNTRIES.

    (a) United States Military Academy.--Section 4344(b) of title 10, 
United States Code, is amended--
        (1) in paragraph (2), by striking out the period at the end and 
    inserting in lieu thereof the following: ``, except that the 
    reimbursement rates may not be less than the cost to the United 
    States of providing such instruction, including pay, allowances, 
    and emoluments, to a cadet appointed from the United States.''; and
        (2) by adding at the end the following new paragraph:
    ``(3) The amount of reimbursement waived under paragraph (2) may 
not exceed 35 percent of the per-person reimbursement amount otherwise 
required to be paid by a foreign country under such paragraph, except 
in the case of not more than five persons receiving instruction at the 
Academy under this section at any one time.''.
    (b) Naval Academy.--Section 6957(b) of such title is amended--
        (1) in paragraph (2), by striking out the period at the end and 
    inserting in lieu thereof the following: ``, except that the 
    reimbursement rates may not be less than the cost to the United 
    States of providing such instruction, including pay, allowances, 
    and emoluments, to a midshipman appointed from the United 
    States.''; and
        (2) by adding at the end the following new paragraph:
    ``(3) The amount of reimbursement waived under paragraph (2) may 
not exceed 35 percent of the per-person reimbursement amount otherwise 
required to be paid by a foreign country under such paragraph, except 
in the case of not more than five persons receiving instruction at the 
Naval Academy under this section at any one time.''.
    (c) Air Force Academy.--Section 9344(b) of such title is amended--
        (1) in paragraph (2), by striking out the period at the end and 
    inserting in lieu thereof the following: ``, except that the 
    reimbursement rates may not be less than the cost to the United 
    States of providing such instruction, including pay, allowances, 
    and emoluments, to a cadet appointed from the United States.''; and
        (2) by adding at the end the following new paragraph:
    ``(3) The amount of reimbursement waived under paragraph (2) may 
not exceed 35 percent of the per-person reimbursement amount otherwise 
required to be paid by a foreign country under such paragraph, except 
in the case of not more than five persons receiving instruction at the 
Air Force Academy under this section at any one time.''.
    (d) Effective Date.--The amendments made by this section apply with 
respect to students from a foreign country entering the United States 
Military Academy, the United States Naval Academy, or the United States 
Air Force Academy on or after May 1, 1998.

SEC. 544. CONTINUATION OF SUPPORT TO SENIOR MILITARY COLLEGES.

    (a) Definition of Senior Military Colleges.--For purposes of this 
section, the term ``senior military colleges'' means the following:
        (1) Texas A&M University.
        (2) Norwich University.
        (3) The Virginia Military Institute.
        (4) The Citadel.
        (5) Virginia Polytechnic Institute and State University.
        (6) North Georgia College and State University.
    (b) Findings.--Congress finds the following:
        (1) The senior military colleges consistently have provided 
    substantial numbers of highly qualified, long-serving leaders to 
    the Armed Forces.
        (2) The quality of the military leaders produced by the senior 
    military colleges is, in part, the result of the rigorous military 
    environment imposed on students attending the senior military 
    colleges by the colleges, as well as the result of the long-
    standing close support relationship between the Corps of Cadets at 
    each college and the Reserve Officer Training Corps personnel at 
    the colleges who serve as effective leadership role models and 
    mentors.
        (3) In recognition of the quality of the young leaders produced 
    by the senior military colleges, the Department of Defense and the 
    military services have traditionally maintained special 
    relationships with the colleges, including the policy to grant 
    active duty service in the Army to graduates of the colleges who 
    desire such service and who are recommended for such service by 
    their ROTC professors of military science.
        (4) Each of the senior military colleges has demonstrated an 
    ability to adapt its systems and operations to changing conditions 
    in, and requirements of, the Armed Forces without compromising the 
    quality of leaders produced and without interruption of the close 
    relationship between the colleges and the Department of Defense.
    (c) Sense of Congress.--In light of the findings in subsection (b), 
it is the sense of Congress that--
        (1) the proposed initiative of the Secretary of the Army to end 
    the commitment to active duty service for all graduates of senior 
    military colleges who desire such service and who are recommended 
    for such service by their ROTC professors of military science is 
    short-sighted and contrary to the long-term interests of the Army;
        (2) as they have in the past, the senior military colleges can 
    and will continue to accommodate to changing military requirements 
    to ensure that future graduates entering military service continue 
    to be officers of superb quality who are quickly assimilated by the 
    Armed Forces and fully prepared to make significant contributions 
    to the Armed Forces through extended military careers; and
        (3) decisions of the Secretary of Defense or the Secretary of a 
    military department that fundamentally and unilaterally change the 
    long-standing relationship of the Armed Forces with the senior 
    military colleges are not in the best interests of the Department 
    of Defense or the Armed Forces and are patently unfair to students 
    who made decisions to enroll in the senior military colleges on the 
    basis of existing Department and Armed Forces policy.
    (d) Continuation of Support for Senior Military Colleges.--Section 
2111a of title 10, United States Code, is amended--
        (1) by redesignating subsection (d) as subsection (f); and
        (2) by inserting after subsection (c) the following new 
    subsections:
    ``(d) Termination or Reduction of Program Prohibited.--The 
Secretary of Defense and the Secretaries of the military departments 
may not take or authorize any action to terminate or reduce a unit of 
the Senior Reserve Officers' Training Corps at a senior military 
college unless the termination or reduction is specifically requested 
by the college.
    ``(e) Assignment to Active Duty.--(1) The Secretary of the Army 
shall ensure that a graduate of a senior military college who desires 
to serve as a commissioned officer on active duty upon graduation from 
the college, who is medically and physically qualified for active duty, 
and who is recommended for such duty by the professor of military 
science at the college, shall be assigned to active duty. This 
paragraph shall apply to a member of the program at a senior military 
college who graduates from the college after March 31, 1997.
    ``(2) Nothing in this section shall be construed to prohibit the 
Secretary of the Army from requiring a member of the program who 
graduates from a senior military college to serve on active duty.''.
    (e) Technical Corrections.--Subsection (f) of such section, as 
redesignated by subsection (d)(1), is amended--
        (1) in paragraph (2), by striking out ``College'' and inserting 
    in lieu thereof ``University''; and
        (2) in paragraph (6), by inserting before the period the 
    following: ``and State University''.
    (f) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:

``Sec. 2111a. Support for senior military colleges''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 103 of title 10, United States Code, is 
amended to read as follows:
``2111a. Support for senior military colleges.''.

SEC. 545. REPORT ON MAKING UNITED STATES NATIONALS ELIGIBLE FOR 
              PARTICIPATION IN SENIOR RESERVE OFFICERS' TRAINING CORPS.

    (a) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
Committee on National Security of the House of Representatives and the 
Committee on Armed Services of the Senate a report on the utility of 
permitting United States nationals to participate in the Senior Reserve 
Officers' Training Corps program.
    (b) Required Information.--The Secretary shall include in the 
report the following information:
        (1) A brief history of the prior admission of United States 
    nationals to the Senior Reserve Officers' Training Corps, including 
    the success rate of these cadets and midshipmen and how that rate 
    compared to the average success rate of cadets and midshipmen 
    during that same period.
        (2) The advantages of permitting United States nationals to 
    participate in the Senior Reserve Officers' Training Corps program.
        (3) The disadvantages of permitting United States nationals to 
    participate in the Senior Reserve Officers' Training Corps program.
        (4) The incremental cost of including United States nationals 
    in the Senior Reserve Officers' Training Corps.
        (5) Methods of minimizing the risk that United States nationals 
    admitted to the Senior Reserve Officers' Training Corps would be 
    later disqualified because of ineligibility for United States 
    citizenship.
        (6) The recommendations of the Secretary on whether United 
    States nationals should be eligible to participate in the Senior 
    Reserve Officers' Training Corps program, and if so, a legislative 
    proposal which would, if enacted, achieve that result.

SEC. 546. COORDINATION OF ESTABLISHMENT AND MAINTENANCE OF JUNIOR 
              RESERVE OFFICERS' TRAINING CORPS UNITS TO MAXIMIZE 
              ENROLLMENT AND ENHANCE EFFICIENCY.

    (a) Requirement.--Chapter 102 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 2032. Responsibility of the Secretaries of the military 
            departments to maximize enrollment and enhance efficiency

    ``(a) Coordination.--The Secretary of each military department, in 
establishing, maintaining, transferring, and terminating Junior Reserve 
Officers' Training Corps units under section 2031 of this title, shall 
do so in a coordinated manner that is designed to maximize enrollment 
in the Corps and to enhance administrative efficiency in the management 
of the Corps.
    ``(b) Consideration of New School Openings and Consolidations.--In 
carrying out subsection (a), the Secretary of a military department 
shall take into consideration--
        ``(1) openings of new schools;
        ``(2) consolidations of schools; and
        ``(3) the desirability of continuing the opportunity for 
    participation in the Corps by participants whose continued 
    participation would otherwise be adversely affected by new school 
    openings and consolidations of schools.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:
``2032. Responsibility of the Secretaries of the military departments to 
          maximize enrollment and enhance efficiency.''.

                    PART II--OTHER EDUCATION MATTERS

SEC. 551. UNITED STATES NAVAL POSTGRADUATE SCHOOL.

    (a) Authority To Admit Enlisted Members as Students.--Section 7045 
of title 10, United States Code, is amended--
        (1) in subsection (a)--
            (A) by inserting ``(1)'' after ``(a)''; and
            (B) by adding at the end the following new paragraph:
    ``(2) The Secretary may permit an enlisted member of the armed 
forces who is assigned to the Naval Postgraduate School or to a nearby 
command to receive instruction at the Naval Postgraduate School. 
Admission of enlisted members for instruction under this paragraph 
shall be on a space-available basis.'';
        (2) in subsection (b)--
            (A) by striking out ``the students'' and inserting in lieu 
        thereof ``officers''; and
            (B) by adding at the end the following new sentence: ``In 
        the case of an enlisted member permitted to receive instruction 
        at the Postgraduate School, the Secretary of the Navy shall 
        charge that member only for such costs and fees as the 
        Secretary considers appropriate (taking into consideration the 
        admission of enlisted members on a space-available basis).''; 
        and
        (3) in subsection (c)--
            (A) by striking out ``officers'' both places it appears and 
        inserting in lieu thereof ``members''; and
            (B) by striking out ``same regulations'' and inserting in 
        lieu thereof ``such regulations, as determined appropriate by 
        the Secretary of the Navy,''.
    (b) Clerical Amendments.--(1) The heading of section 7045 of such 
title is amended to read as follows:

``Sec. 7045. Officers of the other armed forces; enlisted members: 
            admission''.

    (2) The item relating to section 7045 in the table of sections at 
the beginning of chapter 605 of such title is amended to read as 
follows:
``7045. Officers of the other armed forces; enlisted members: 
          admission.''.

    (c) Amendment To Reflect Revised Civil Service Grade Structure.--
Section 7043(b) of such title is amended by striking out ``grade GS-18 
of the General Schedule under section 5332 of title 5'' and inserting 
in lieu thereof ``level IV of the Executive Schedule''.

SEC. 552. COMMUNITY COLLEGE OF THE AIR FORCE.

    (a) Expansion of Members Eligible for Program To Include 
Instructors at Air Force Training Schools.--Section 9315 of title 10, 
United States Code, is amended--
        (1) in subsection (a)(1), by striking out ``enlisted members of 
    the Air Force'' and inserting in lieu thereof ``enlisted members 
    described in subsection (b)'';
        (2) by striking out ``(b) Subject to subsection (c),'' and 
    inserting in lieu thereof ``(c)(1) Subject to paragraph (2),'';
        (3) by redesignating subsection (c) as paragraph (2) and in 
    that paragraph redesignating clauses (1) and (2) as clauses (A) and 
    (B), respectively; and
        (4) by inserting after subsection (a) the following new 
    subsection (b):
    ``(b) Members Eligible for Programs.--Subject to such other 
eligibility requirements as the Secretary concerned may prescribe, the 
following members of the armed forces are eligible to participate in 
programs of higher education under subsection (a)(1):
        ``(1) Enlisted members of the Air Force.
        ``(2) Enlisted members of the armed forces other than the Air 
    Force who are serving as instructors at Air Force training 
    schools.''.
    (b) Clerical Amendments.--Such section is further amended--
        (1) in subsection (a), by inserting ``Establishment and 
    Mission.--'' after ``(a)''; and
        (2) in subsection (c), as redesignated by subsection (a)(2), by 
    inserting ``Conferral of Degrees.--'' after ``(c)''.
    (c) Effective Date.--Subsection (b) of section 9315 of such title, 
as added by subsection (a)(4), applies with respect to enrollments in 
the Community College of the Air Force after March 31, 1996.

SEC. 553. PRESERVATION OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE OF 
              MEMBERS OF THE SELECTED RESERVE SERVING ON ACTIVE DUTY IN 
              SUPPORT OF A CONTINGENCY OPERATION.

    (a) Preservation of Educational Assistance.--Section 
16131(c)(3)(B)(i) of title 10, United States Code, is amended by 
striking out ``, in connection with the Persian Gulf War,''.
    (b) Extension of 10-Year Period of Availability.--Section 
16133(b)(4) of such title is amended--
        (1) by striking out ``(A)'';
        (2) by striking out ``, during the Persian Gulf War,'';
        (3) by redesignating clauses (i) and (ii) as subparagraphs (A) 
    and (B), respectively; and
        (4) by striking out ``(B) For the purposes'' and all that 
    follows through ``title 38.''.

               PART III--TRAINING OF ARMY DRILL SERGEANTS

SEC. 556. REFORM OF ARMY DRILL SERGEANT SELECTION AND TRAINING PROCESS.

    (a) In General.--The Secretary of the Army shall reform the process 
for selection and training of drill sergeants for the Army.
    (b) Measures To Be Taken.--As part of such reform, the Secretary 
shall undertake the following measures (unless, in the case of any such 
measure, the Secretary determines that that measure would not result in 
improved effectiveness and efficiency in the drill sergeant selection 
and training process):
        (1) Review the overall process used by the Department of the 
    Army for selection of drill sergeants to determine--
            (A) whether that process is providing drill sergeant 
        candidates in sufficient quantity and quality to meet the needs 
        of the training system; and
            (B) whether duty as a drill sergeant is a career-enhancing 
        assignment (or is seen by potential drill sergeant candidates 
        as a career-enhancing assignment) and what steps could be taken 
        to ensure that such duty is in fact a career-enhancing 
        assignment.
        (2) Incorporate into the selection process for all drill 
    sergeants the views and recommendations of the officers and senior 
    noncommissioned officers in the chain of command of each candidate 
    for selection (particularly those of senior noncommissioned 
    officers) regarding the candidate's suitability and qualifications 
    to be a drill sergeant.
        (3) Establish a requirement for psychological screening for 
    each drill sergeant candidate.
        (4) Reform the psychological screening process for drill 
    sergeant candidates to improve the quality, depth, and rigor of 
    that screening process.
        (5) Revise the evaluation system for drill sergeants in 
    training to provide for a so-called ``whole person'' assessment 
    that gives insight into the qualifications and suitability of a 
    drill sergeant candidate beyond the candidate's ability to 
    accomplish required performance tasks.
        (6) Revise the Army military personnel records system so that, 
    under conditions and circumstances to be specified in regulations 
    prescribed by the Secretary, a drill sergeant trainee who fails to 
    complete the training to be a drill sergeant and is denied 
    graduation will not have the fact of that failure recorded in those 
    personnel records.
        (7) Provide each drill sergeant in training with the 
    opportunity, before or during that training, to work with new 
    recruits in initial entry training and to be evaluated on that 
    opportunity.
    (c) Report.--Not later than March 31, 1998, the Secretary shall 
submit to the Committee on National Security of the House of 
Representatives and the Committee on Armed Services of the Senate a 
report of the reforms adopted pursuant to this section or, in the case 
of any measure specified in any of paragraphs (1) through (7) of 
subsection (b) that was not adopted, the rationale why that measure was 
not adopted.

SEC. 557. TRAINING IN HUMAN RELATIONS MATTERS FOR ARMY DRILL SERGEANT 
              TRAINEES.

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

``Sec. 4318. Drill sergeant trainees: human relations training

    ``(a) Human Relations Training Required.--The Secretary of the Army 
shall include as part of the training program for drill sergeants a 
course in human relations. The course shall be a minimum of two days in 
duration.
    ``(b) Resources.--In developing a human relations course under this 
section, the Secretary shall use the capabilities and expertise of the 
Defense Equal Opportunity Management Institute (DEOMI).''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``4318. Drill sergeant trainees: human relations training.''.

    (b) Effective Date.--Section 4318 of title 10, United States Code, 
as added by subsection (a), shall apply with respect drill sergeant 
trainee classes that begin after the end of the 90-day period beginning 
on the date of the enactment of this Act.

 Subtitle F--Commission on Military Training and Gender-Related Issues

SEC. 561. ESTABLISHMENT AND COMPOSITION OF COMMISSION.

    (a) Establishment.--There is established a Commission on Military 
Training and Gender-Related Issues to review requirements and 
restrictions regarding cross-gender relationships of members of the 
Armed Forces, to review the basic training programs of the Army, Navy, 
Air Force, and Marine Corps, and to make recommendations on 
improvements to those programs, requirements, and restrictions.
    (b) Composition.--(1) The commission shall be composed of 10 
members, appointed as follows:
        (A) Five members shall be appointed jointly by the chairman and 
    ranking minority party member of the Committee on National Security 
    of the House of Representatives.
        (B) Five members shall be appointed jointly by the chairman and 
    ranking minority party member of the Committee on Armed Services of 
    the Senate.
    (2) The members of the commission shall choose one of the members 
to serve as chairman.
    (3) All members of the commission shall be appointed not later than 
45 days after the date of the enactment of this Act.
    (c) Qualifications.--Members of the commission shall be appointed 
from among private United States citizens with knowledge and expertise 
in one or more of the following:
        (1) Training of military personnel.
        (2) Social and cultural matters affecting entrance into the 
    Armed Forces and affecting military service, military training, and 
    military readiness, such knowledge and expertise to have been 
    gained through recognized research, policy making and practical 
    experience, as demonstrated by retired military personnel, members 
    of the reserve components of the Armed Forces, representatives from 
    educational organizations, and leaders from civilian industry and 
    other Government agencies.
        (3) Factors that define appropriate military job 
    qualifications, including physical, mental, and educational 
    factors.
        (4) Combat or other theater of war operations.
        (5) Organizational matters.
        (6) Legal matters.
        (7) Management.
        (8) Gender integration matters.
    (d) Appointments.--(1) Members of the commission shall be appointed 
for the life of the commission.
    (2) A vacancy in the membership shall not affect the commission's 
powers, but shall be filled in the same manner as the original 
appointment.

SEC. 562. DUTIES.

    (a) Functions Relating to Requirements and Restrictions Regarding 
Cross-Gender Relationships.--The commission shall consider issues 
relating to personal relationships of members of the Armed Forces as 
follows:
        (1) Review the laws, regulations, policies, directives, and 
    practices that govern personal relationships between men and women 
    in the Armed Forces and personal relationships between members of 
    the Armed Forces and non-military personnel of the opposite sex.
        (2) Assess the extent to which the laws, regulations, policies, 
    and directives have been applied consistently throughout the Armed 
    Forces without regard to the armed force, grade, rank, or gender of 
    the individuals involved.
        (3) Assess the reports of the independent panel, the Department 
    of Defense task force, and the review of existing guidance on 
    fraternization and adultery that have been required by the 
    Secretary of Defense.
    (b) Functions Relating to Gender-Integrated and Gender-Segregated 
Basic Training.--(1) The commission shall review the parts of the 
initial entry training programs of the Army, Navy, Air Force, and 
Marine Corps that constitute the basic training of new recruits (in 
this subtitle referred to as ``basic training''). The review shall 
include a review of the basic training policies and practices of each 
of those services with regard to gender-integrated and gender-
segregated basic training and, for each of the services, the 
effectiveness of gender-integrated and gender-segregated basic 
training.
    (2) As part of the review under paragraph (1), the commission shall 
(with respect to each of the services) take the following measures:
        (A) Determine how each service defines gender-integration and 
    gender-segregation in the context of basic training.
        (B) Determine the historical rationales for the establishment 
    and disestablishment of gender-integrated or gender-segregated 
    basic training.
        (C) Examine, with respect to each service, the current 
    rationale for the use of gender-integrated or gender-segregated 
    basic training and the rationale that was current as of the time 
    the service made a decision to integrate, or to segregate, basic 
    training by gender (or as of the time of the most recent decision 
    to continue to use a gender-integrated format or a gender-
    segregated format for basic training), and, as part of the 
    examination, evaluate whether at the time of that decision, the 
    Secretary of the military department with jurisdiction over that 
    service had substantive reason to believe, or has since developed 
    data to support, that gender-integrated basic training, or gender-
    segregated basic training, improves the readiness or performance of 
    operational units.
        (D) Assess whether the concept of ``training as you will 
    fight'' is a valid rationale for gender-integrated basic training 
    or whether the training requirements and objectives for basic 
    training are sufficiently different from those of operational units 
    so that such concept, when balanced against other factors relating 
    to basic training, might not be a sufficient rationale for gender-
    integrated basic training.
        (E) Identify the requirements unique to each service that could 
    affect a decision by the Secretary concerned to adopt a gender-
    integrated or gender-segregated format for basic training and 
    assess whether the format in use by each service has been 
    successful in meeting those requirements.
        (F) Assess, with respect to each service, the degree to which 
    different standards have been established, or if not established 
    are in fact being implemented, for males and females in basic 
    training for matters such as physical fitness, physical performance 
    (such as confidence and obstacle courses), military skills (such as 
    marksmanship and hand-grenade qualifications), and nonphysical 
    tasks required of individuals and, to the degree that differing 
    standards exist or are in fact being implemented, assess the effect 
    of the use of those differing standards.
        (G) Identify the goals that each service has set forth in 
    regard to readiness, in light of the gender-integrated or gender-
    segregated format that such service has adopted for basic training, 
    and whether that format contributes to the readiness of operational 
    units.
        (H) Assess the degree to which performance standards in basic 
    training are based on military readiness.
        (I) Evaluate the policies of each of the services regarding the 
    assignment of adequate numbers of female drill instructors in 
    gender-integrated training units who can serve as role models and 
    mentors for female trainees.
        (J) Review Department of Defense and military department 
    efforts to objectively measure or evaluate the effectiveness of 
    gender-integrated basic training, as compared to gender-segregated 
    basic training, particularly with regard to the adequacy and scope 
    of the efforts and with regard to the relevancy of findings to 
    operational unit requirements, and determine whether the Department 
    of Defense and the military departments are capable of measuring or 
    evaluating the effectiveness of that training format objectively.
        (K) Compare the pattern of attrition in gender-integrated basic 
    training units with the pattern of attrition in gender-segregated 
    basic training units and assess the relevancy of the findings of 
    such comparison.
        (L) Compare the level of readiness and morale of gender-
    integrated basic training units with the level of readiness and 
    morale of gender-segregated units, and assess the relevancy of the 
    findings of such comparison and the implications, for readiness, of 
    any differences found.
        (M) Compare the experiences, policies, and practices of the 
    armed forces of other industrialized nations regarding gender-
    integrated training with those of the Army, Navy, Air Force, and 
    Marine Corps.
        (N) Review, and take into consideration, the current practices, 
    relevant studies, and private sector training concepts pertaining 
    to gender-integrated training.
        (O) Assess the feasibility and implications of conducting basic 
    training (or equivalent training) at the company level and below 
    through separate units for male and female recruits, including the 
    costs and other resource commitments required to implement and 
    conduct basic training in such a manner and the implications for 
    readiness and unit cohesion.
        (P) Assess the feasibility and implications of requiring drill 
    instructors for basic training units to be of the same sex as the 
    recruits in those units if the basic training were to be conducted 
    as described in subparagraph (O).
    (c) Functions Relating to Basic Training Programs Generally.--The 
commission shall review the course objectives, structure, and length of 
the basic training programs of the Army, Navy, Air Force, and Marine 
Corps. The commission shall also review the relationship between those 
basic training objectives and the advanced training provided in the 
initial entry training programs of each of those services. As part of 
that review, the commission shall (with respect to each of those 
services) take the following measures:
        (1) Determine the current end-state objectives established for 
    graduates of basic training, particularly in regard to--
            (A) physical conditioning;
            (B) technical and physical skills proficiency;
            (C) knowledge;
            (D) military socialization, including the inculcation of 
        service values and attitudes; and
            (E) basic combat operational requirements.
        (2) Assess whether those current end-state objectives, and 
    basic training itself, should be modified (in structure, length, 
    focus, program of instruction, training methods or otherwise) 
    based, in part, on the following:
            (A) An assessment of the perspectives of operational units 
        on the quality and qualifications of the initial entry training 
        graduates being assigned to those units, considering in 
        particular whether the basic training system produces graduates 
        who arrive in operational units with an appropriate level of 
        skills, physical conditioning, and degree of military 
        socialization to meet unit requirements and needs.
            (B) An assessment of the demographics, backgrounds, 
        attitudes, experience, and physical fitness of new recruits 
        entering basic training, considering in particular the question 
        of whether, given the entry level demographics, education, and 
        background of new recruits, the basic training systems and 
        objectives are most efficiently and effectively structured and 
        conducted to produce graduates who meet service needs.
            (C) An assessment of the perspectives of personnel who 
        conduct basic training with regard to measures required to 
        improve basic training.
        (3) Assess the extent to which the initial entry training 
    programs of each of the services continue, after the basic training 
    phases of the programs, effectively to reinforce and advance the 
    military socialization (including the inculcation of service values 
    and attitudes), the physical conditioning, and the attainment and 
    improvement of knowledge and proficiency in fundamental military 
    skills that are begun in basic training.
    (d) Recommendations.--The commission shall prepare--
        (1) with respect to each of the Army, Navy, Air Force, and 
    Marine Corps, an evaluation of gender-integrated and gender-
    segregated basic training programs, based upon the review under 
    subsection (b);
        (2) recommendations for such changes to the current system of 
    basic training as the commission considers warranted; and
        (3) recommendations for such changes to laws, regulations, 
    policies, directives, and practices referred to in subsection 
    (a)(1) as the commission considers warranted.
    (e) Reports.--(1) Not later than April 15, 1998, the commission 
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 a strategic plan for the work of the commission and the 
activities and initial findings of the commission.
    (2) Not later than September 16, 1998, the commission shall submit 
a final report to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives. The 
final report shall set forth the activities, findings, and 
recommendations of the commission, including any recommendations for 
congressional action and administrative action that the commission 
considers appropriate. The report shall specifically set forth the 
views of the Secretaries of the military departments regarding the 
matters described in subparagraphs (O) and (P) of subsection (b)(2).

SEC. 563. ADMINISTRATIVE MATTERS.

    (a) Meetings.--(1) The commission shall hold its first meeting not 
later than 30 days after the date on which all members have been 
appointed.
    (2) The commission shall meet upon the call of the chairman.
    (3) A majority of the members of the commission shall constitute a 
quorum, but a lesser number may hold meetings.
    (b) Authority of Individuals To Act for Commission.--Any member or 
agent of the commission may, if authorized by the commission, take any 
action which the commission is authorized to take under this title.
    (c) Powers.--(1) The commission may hold such hearings, sit and act 
at such times and places, take such testimony, and receive such 
evidence as the commission considers advisable to carry out its duties.
    (2) The commission may secure directly from the Department of 
Defense and any other department or agency of the Federal Government 
such information as the commission considers necessary to carry out its 
duties. Upon the request of the chairman of the commission, the head of 
a department or agency shall furnish the requested information 
expeditiously to the commission.
    (3) The commission may use the United States mails in the same 
manner and under the same conditions as other departments and agencies 
of the Federal Government.
    (d) Pay and Expenses of Commission Members.--(1) Each member of the 
commission who is not an employee of the Government shall be paid at a 
rate equal to the daily equivalent of the annual rate of basic pay 
prescribed for level IV of the Executive Schedule under section 5315 of 
title 5, United States Code, for each day (including travel time) 
during which such member is engaged in performing the duties of the 
commission.
    (2) Members and personnel of the commission may travel on aircraft, 
vehicles, or other conveyances of the Armed Forces when travel is 
necessary in the performance of a duty of the commission except when 
the cost of commercial transportation is less expensive.
    (3) The members of the commission may be allowed travel expenses, 
including per diem in lieu of subsistence, at rates authorized for 
employees of agencies under subchapter I of chapter 57 of title 5, 
United States Code, while away from their homes or regular places of 
business in the performance of services for the commission.
    (4)(A) A member of the commission who is an annuitant otherwise 
covered by section 8344 or 8468 of title 5, United States Code, by 
reason of membership on the commission shall not be subject to the 
provisions of such section with respect to such membership.
    (B) A member of the commission who is a member or former member of 
a uniformed service shall not be subject to the provisions of 
subsections (b) and (c) of section 5532 of such title with respect to 
membership on the commission.
    (e) Staff and Administrative Support.--(1) The chairman of the 
commission may, without regard to civil service laws and regulations, 
appoint and terminate an executive director and up to three additional 
staff members as necessary to enable the commission to perform its 
duties. The chairman of the commission may fix the compensation of the 
executive director and other personnel without regard to the provisions 
of chapter 51, and subchapter III of chapter 53, of title 5, United 
States Code, relating to classification of positions and General 
Schedule pay rates, except that the rate of pay may not exceed the 
maximum rate of pay for grade GS-15 under the General Schedule.
    (2) Upon the request of the chairman of the commission, the head of 
any department or agency of the Federal Government may detail, without 
reimbursement, any personnel of the department or agency to the 
commission to assist in carrying out its duties. A detail of an 
employee shall be without interruption or loss of civil service status 
or privilege.
    (3) The chairman of the commission may procure temporary and 
intermittent services under section 3109(b) of title 5, United States 
Code, at rates for individuals that do not exceed the daily equivalent 
of the annual rate of basic pay prescribed for level IV of the 
Executive Schedule under section 5315 of such title.
    (4) The Secretary of Defense shall furnish to the commission such 
administrative and support services as may be requested by the chairman 
of the commission.

SEC. 564. TERMINATION OF COMMISSION.

    The commission shall terminate 60 days after the date on which it 
submits the final report under section 562(e)(2).

SEC. 565. FUNDING.

    (a) From Department of Defense Appropriations.--Upon the request of 
the chairman of the commission, the Secretary of Defense shall make 
available to the commission, out of funds appropriated for the 
Department of Defense, such amounts as the commission may require to 
carry out its duties.
    (b) Period of Availability.--Funds made available to the commission 
shall remain available, without fiscal year limitation, until the date 
on which the commission terminates.

SEC. 566. SUBSEQUENT CONSIDERATION BY CONGRESS.

    After receipt of each report of the commission under section 
562(e), Congress shall consider the report and, based upon the results 
of the review (and such other matters as Congress considers 
appropriate), consider whether to require by law that the Secretaries 
of the military departments conduct basic training on a gender-
segregated or gender-integrated basis.

              Subtitle G--Military Decorations and Awards

SEC. 571. PURPLE HEART TO BE AWARDED ONLY TO MEMBERS OF THE ARMED 
              FORCES.

    (a) In General.--(1) Chapter 57 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 1131. Purple Heart: limitation to members of the armed forces

    ``The decoration known as the Purple Heart (authorized to be 
awarded pursuant to Executive Order 11016) may only be awarded to a 
person who is a member of the armed forces at the time the person is 
killed or wounded under circumstances otherwise qualifying that person 
for award of the Purple Heart.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``1131. Purple Heart: limitation to members of the armed forces.''.

    (b) Effective Date.--Section 1131 of title 10, United States Code, 
as added by subsection (a), shall apply with respect to persons who are 
killed or wounded after the end of the 180-day period beginning on the 
date of the enactment of this Act.

SEC. 572. ELIGIBILITY FOR ARMED FORCES EXPEDITIONARY MEDAL FOR 
              PARTICIPATION IN OPERATION JOINT ENDEAVOR OR OPERATION 
              JOINT GUARD.

    (a) Inclusion of Operations.--For the purpose of determining the 
eligibility of members and former members of the Armed Forces for the 
Armed Forces Expeditionary Medal, the Secretary of Defense shall 
designate participation in Operation Joint Endeavor or Operation Joint 
Guard in the Republic of Bosnia and Herzegovina, and in such other 
areas in the region as the Secretary considers appropriate, as service 
in an area that meets 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 participated in Operation Joint 
Endeavor or Operation Joint Guard meet the individual service 
requirements for award of the Armed Forces Expeditionary Medal as 
established in applicable regulations. A member or former member shall 
be considered to have participated in Operation Joint Endeavor or 
Operation Joint Guard if the member--
        (1) was deployed in the Republic of Bosnia and Herzegovina, or 
    in such other area in the region as the Secretary of Defense 
    considers appropriate, in direct support of one or both of the 
    operations;
        (2) served on board a United States naval vessel operating in 
    the Adriatic Sea in direct support of one or both of the 
    operations; or
        (3) operated in airspace above the Republic of Bosnia and 
    Herzegovina, or in such other area in the region as the Secretary 
    of Defense considers appropriate, while the operations were in 
    effect.
    (c) Operations Defined.--For purposes of this section:
        (1) The term ``Operation Joint Endeavor'' means operations of 
    the United States Armed Forces conducted in the Republic of Bosnia 
    and Herzegovina during the period beginning on November 20, 1995, 
    and ending on December 20, 1996, to assist in implementing the 
    General Framework Agreement and Associated Annexes, initialed on 
    November 21, 1995, in Dayton, Ohio.
        (2) The term ``Operation Joint Guard'' means operations of the 
    United States Armed Forces conducted in the Republic of Bosnia and 
    Herzegovina as a successor to Operation Joint Endeavor during the 
    period beginning on December 20, 1996, and ending on such date as 
    the Secretary of Defense may designate.

SEC. 573. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN DECORATIONS 
              TO SPECIFIED PERSONS.

    (a) Waiver of Time Limitation.--Any limitation established by law 
or policy for the time within which a recommendation for the award of a 
military decoration or award must be submitted shall not apply in the 
case of awards of decorations described in subsections (b), (c), and 
(d), the award of each such decoration having been determined by the 
Secretary of the military department concerned to be warranted in 
accordance with section 1130 of title 10, United States Code.
    (b) Silver Star Medal.--Subsection (a) applies to the award of the 
Silver Star Medal as follows:
        (1) To Joseph M. Moll, Jr. of Milford, New Jersey, for service 
    during World War II.
        (2) To Philip Yolinsky of Hollywood, Florida, for service 
    during the Korean Conflict.
        (3) To Robert Norman of Reno, Nevada, for service during World 
    War II.
    (c) Navy and Marine Corps Medal.--Subsection (a) applies to the 
award of the Navy and Marine Corps Medal to Gary A. Gruenwald of 
Damascus, Maryland, for service in Tunisia in October 1977.
    (d) Distinguished Flying Cross.--Subsection (a) applies to awards 
of the Distinguished Flying Cross for service during World War II or 
Korea (including multiple awards to the same individual) in the case of 
each individual concerning whom the Secretary of the Navy (or an 
officer of the Navy acting on behalf of the Secretary) submitted to the 
Committee on National Security of the House of Representatives and the 
Committee on Armed Services of the Senate, before the date of the 
enactment of this Act, a notice as provided in section 1130(b) of title 
10, United States Code, that the award of the Distinguished Flying 
Cross to that individual is warranted and that a waiver of time 
restrictions prescribed by law for recommendation for such award is 
recommended.

SEC. 574. CLARIFICATION OF ELIGIBILITY OF MEMBERS OF READY RESERVE FOR 
              AWARD OF SERVICE MEDAL FOR HEROISM.

    (a) Soldier's Medal.--Section 3750(a) of title 10, United States 
Code, is amended--
        (1) by inserting ``(1)'' after ``(a)''; and
        (2) by adding at the end the following new paragraph:
    ``(2) The authority in paragraph (1) includes authority to award 
the medal to a member of the Ready Reserve who was not in a duty status 
defined in section 101(d) of this title when the member distinguished 
himself by heroism.''.
    (b) Navy and Marine Corps Medal.--Section 6246 of such title is 
amended--
        (1) by designating the text of the section as subsection (a); 
    and
        (2) by adding at the end the following new subsection:
    ``(b) The authority in subsection (a) includes authority to award 
the medal to a member of the Ready Reserve who was not in a duty status 
defined in section 101(d) of this title when the member distinguished 
himself by heroism.''.
    (c) Airman's Medal.--Section 8750(a) of such title is amended--
        (1) by inserting ``(1)'' after ``(a)''; and
        (2) by adding at the end the following new paragraph:
    ``(2) The authority in paragraph (1) includes authority to award 
the medal to a member of the Ready Reserve who was not in a duty status 
defined in section 101(d) of this title when the member distinguished 
himself by heroism.''.

SEC. 575. ONE-YEAR EXTENSION OF PERIOD FOR RECEIPT OF RECOMMENDATIONS 
              FOR DECORATIONS AND AWARDS FOR CERTAIN MILITARY 
              INTELLIGENCE PERSONNEL.

    Section 523(b)(1) of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 311; 10 U.S.C. 1130 
note) is amended by striking out ``during the one-year period beginning 
on the date of the enactment of this Act'' and inserting in lieu 
thereof ``during the period beginning on February 10, 1996, and ending 
on February 9, 1998''.

SEC. 576. ELIGIBILITY OF CERTAIN WORLD WAR II MILITARY ORGANIZATIONS 
              FOR AWARD OF UNIT DECORATIONS.

    (a) Authority.--A unit decoration may be awarded for any unit or 
other organization of the Armed Forces (such as the Military 
Intelligence Service of the Army) that (1) supported the planning or 
execution of combat operations during World War II primarily through 
unit personnel who were attached to other units of the Armed Forces or 
of other allied armed forces, and (2) is not otherwise eligible for 
award of the decoration by reason of not usually having been deployed 
as a unit in support of such operations.
    (b) Time for Submission of Recommendation.--Any recommendation for 
award of a unit decoration under subsection (a) shall be submitted to 
the Secretary concerned (as defined in section 101(a)(9) of title 10, 
United States Code), or to such other official as the Secretary 
concerned may designate, not later than two years after the date of the 
enactment of this Act.

SEC. 577. RETROACTIVITY OF MEDAL OF HONOR SPECIAL PENSION.

    (a) Entitlement.--In the case of Vernon J. Baker, Edward A. Carter, 
Junior, and Charles L. Thomas, who were awarded the Medal of Honor 
pursuant to section 561 of Public Law 104-201 (110 Stat. 2529) and 
whose names have been entered and recorded on the Army, Navy, Air 
Force, and Coast Guard Medal of Honor Roll, the entitlement of those 
persons to the special pension provided under section 1562 of title 38, 
United States Code (and antecedent provisions of law), shall be 
effective as follows:
        (1) In the case of Vernon J. Baker, for months that begin after 
    April 1945.
        (2) In the case of Edward A. Carter, Junior, for months that 
    begin after March 1945.
        (3) In the case of Charles L. Thomas, for months that begin 
    after December 1944.
    (b) Amount.--The amount of the special pension payable under 
subsection (a) for a month beginning before the date of the enactment 
of this Act shall be the amount of the special pension provided by law 
for that month for persons entered and recorded on the Army, Navy, Air 
Force, and Coast Guard Medal of Honor Roll (or an antecedent Medal of 
Honor Roll required by law).
    (c) Payment to Next of Kin.--In the case of a person referred to in 
subsection (a) who died before receiving full payment of the pension 
pursuant to this section, the Secretary of Veterans Affairs shall pay 
the total amount of the accrued pension, upon receipt of application 
for payment within one year after the date of the enactment of this 
Act, to the deceased person's spouse or, if there is no surviving 
spouse, then to the deceased person's children, per stirpes, in equal 
shares.

                  Subtitle H--Military Justice Matters

SEC. 581. ESTABLISHMENT OF SENTENCE OF CONFINEMENT FOR LIFE WITHOUT 
              ELIGIBILITY FOR PAROLE.

    (a) Establishment of Sentence.--(1) Chapter 47 of title 10, United 
States Code (the Uniform Code of Military Justice), is amended by 
inserting after section 856 (article 56) the following new section 
(article):

``Sec. 856a. Art. 56a. Sentence of confinement for life without 
            eligibility for parole

    ``(a) For any offense for which a sentence of confinement for life 
may be adjudged, a court-martial may adjudge a sentence of confinement 
for life without eligibility for parole.
    ``(b) An accused who is sentenced to confinement for life without 
eligibility for parole shall be confined for the remainder of the 
accused's life unless--
        ``(1) the sentence is set aside or otherwise modified as a 
    result of--
            ``(A) action taken by the convening authority, the 
        Secretary concerned, or another person authorized to act under 
        section 860 of this title (article 60); or
            ``(B) any other action taken during post-trial procedure 
        and review under any other provision of subchapter IX;
        ``(2) the sentence is set aside or otherwise modified as a 
    result of action taken by a Court of Criminal Appeals, the Court of 
    Appeals for the Armed Forces, or the Supreme Court; or
        ``(3) the accused is pardoned.''.
    (2) The table of sections at the beginning of subchapter VIII of 
such chapter is amended by inserting after the item relating to section 
856 (article 56) the following new item:

``856a. 56a. Sentence of confinement for life without eligibility for 
          parole.''.

    (b) Effective Date.--Section 856a of title 10, United States Code 
(article 56a of the Uniform Code of Military Justice), as added by 
subsection (a), shall be applicable only with respect to an offense 
committed after the date of the enactment of this Act.

SEC. 582. LIMITATION ON APPEAL OF DENIAL OF PAROLE FOR OFFENDERS 
              SERVING LIFE SENTENCE.

    (a) Exclusive Authority To Grant Parole on Appeal of Denial.--
Section 952 of title 10, United States Code, is amended--
        (1) by inserting ``(a)'' before ``The Secretary''; and
        (2) by adding at the end the following new subsection:
    ``(b) In a case in which parole for an offender serving a sentence 
of confinement for life is denied, only the President or the Secretary 
concerned may grant the offender parole on appeal of that denial. The 
authority to grant parole on appeal in such a case may not be 
delegated.''.
    (b) Effective Date.--Subsection (b) of section 952 of title 10, 
United States Code (as added by subsection (a)), shall apply only with 
respect to any decision to deny parole made after the date of the 
enactment of this Act.

                       Subtitle I--Other Matters

SEC. 591. SEXUAL HARASSMENT INVESTIGATIONS AND REPORTS.

    (a) Investigations.--(1) Part II of subtitle A of title 10, United 
States Code, is amended by inserting after chapter 79 the following new 
chapter:

``CHAPTER 80--MISCELLANEOUS INVESTIGATION REQUIREMENTS AND OTHER DUTIES

``Sec.
``1561. Complaints of sexual harassment: investigation by commanding 
          officers.

``Sec. 1561. Complaints of sexual harassment: investigation by 
            commanding officers

    ``(a) Action on Complaints Alleging Sexual Harassment.--A 
commanding officer or officer in charge of a unit, vessel, facility, or 
area of the Army, Navy, Air Force, or Marine Corps who receives from a 
member of the command or a civilian employee under the supervision of 
the officer a complaint alleging sexual harassment by a member of the 
armed forces or a civilian employee of the Department of Defense shall 
carry out an investigation of the matter in accordance with this 
section.
    ``(b) Commencement of Investigation.--To the extent practicable, a 
commanding officer or officer in charge receiving such a complaint 
shall, within 72 hours after receipt of the complaint--
        ``(1) forward the complaint or a detailed description of the 
    allegation to the next superior officer in the chain of command who 
    is authorized to convene a general court-martial;
        ``(2) commence, or cause the commencement of, an investigation 
    of the complaint; and
        ``(3) advise the complainant of the commencement of the 
    investigation.
    ``(c) Duration of Investigation.--To the extent practicable, a 
commanding officer or officer in charge receiving such a complaint 
shall ensure that the investigation of the complaint is completed not 
later than 14 days after the date on which the investigation is 
commenced.
    ``(d) Report on Investigation.--To the extent practicable, a 
commanding officer or officer in charge receiving such a complaint 
shall--
        ``(1) submit a final report on the results of the 
    investigation, including any action taken as a result of the 
    investigation, to the next superior officer referred to in 
    subsection (b)(1) within 20 days after the date on which the 
    investigation is commenced; or
        ``(2) submit a report on the progress made in completing the 
    investigation to the next superior officer referred to in 
    subsection (b)(1) within 20 days after the date on which the 
    investigation is commenced and every 14 days thereafter until the 
    investigation is completed and, upon completion of the 
    investigation, then submit a final report on the results of the 
    investigation, including any action taken as a result of the 
    investigation, to that next superior officer.
    ``(e) Sexual Harassment Defined.--In this section, the term `sexual 
harassment' means any of the following:
        ``(1) Conduct (constituting a form of sex discrimination) 
    that--
            ``(A) involves unwelcome sexual advances, requests for 
        sexual favors, and deliberate or repeated offensive comments or 
        gestures of a sexual nature when--
                ``(i) submission to such conduct is made either 
            explicitly or implicitly a term or condition of a person's 
            job, pay, or career;
                ``(ii) submission to or rejection of such conduct by a 
            person is used as a basis for career or employment 
            decisions affecting that person; or
                ``(iii) such conduct has the purpose or effect of 
            unreasonably interfering with an individual's work 
            performance or creates an intimidating, hostile, or 
            offensive working environment; and
            ``(B) is so severe or pervasive that a reasonable person 
        would perceive, and the victim does perceive, the work 
        environment as hostile or offensive.
        ``(2) Any use or condonation, by any person in a supervisory or 
    command position, of any form of sexual behavior to control, 
    influence, or affect the career, pay, or job of a member of the 
    armed forces or a civilian employee of the Department of Defense.
        ``(3) Any deliberate or repeated unwelcome verbal comment or 
    gesture of a sexual nature in the workplace by any member of the 
    armed forces or civilian employee of the Department of Defense.''.
    (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 amended by 
inserting after the item relating to chapter 79 the following new item:

``80. Miscellaneous Investigation Requirements and Other Duties..1561''.

    (b) Reports.--(1) Not later than January 1 of each of 1998 and 
1999, each officer receiving a complaint forwarded in accordance with 
section 1561(b) of title 10, United States Code, as added by subsection 
(a), during the preceding year shall submit to the Secretary of the 
military department concerned a report on all such complaints and the 
investigations of such complaints (including the results of the 
investigations, in cases of investigations completed during such 
preceding year).
    (2)(A) Not later than March 1 of each of 1998 and 1999, each 
Secretary receiving a report under paragraph (1) for a year shall 
submit to the Secretary of Defense a report on all such reports so 
received.
    (B) Not later than April 1 following receipt of a report for a year 
under subparagraph (A), the Secretary of Defense shall transmit to 
Congress all such reports received for the year under subparagraph (A) 
together with the Secretary's assessment of each such report.

SEC. 592. SENSE OF THE SENATE REGARDING STUDY OF MATTERS RELATING TO 
              GENDER EQUITY IN THE ARMED FORCES.

    (a) Findings.--The Senate makes the following findings:
        (1) In the all-volunteer force, women play an integral role in 
    the Armed Forces.
        (2) With increasing numbers of women in the Armed Forces, 
    questions arise concerning inequalities, and perceived 
    inequalities, between the treatment of men and women in the Armed 
    Forces.
    (b) Sense of the Senate.--It is the sense of the Senate that the 
Comptroller General should--
        (1) conduct a study on any inequality, or perception of 
    inequality, in the treatment of men and women in the Armed Forces 
    that arises out of the statutes and regulations governing the Armed 
    Forces; and
        (2) submit to the Senate a report on the study not later than 
    one year after the date of the enactment of this Act.

SEC. 593. AUTHORITY FOR PERSONNEL TO PARTICIPATE IN MANAGEMENT OF 
              CERTAIN NON-FEDERAL ENTITIES.

    (a) Military Personnel.--(1) Chapter 53 of title 10, United States 
Code, is amended by inserting after section 1032 the following new 
section:

``Sec. 1033. Participation in management of specified non-Federal 
            entities: authorized activities

    ``(a) Authorization.--The Secretary concerned may authorize a 
member of the armed forces under the Secretary's jurisdiction to serve 
without compensation as a director, officer, or trustee, or to 
otherwise participate, in the management of an entity designated under 
subsection (b). Any such authorization shall be made on a case-by-case 
basis, for a particular member to participate in a specific capacity 
with a specific designated entity. Such authorization may be made only 
for the purpose of providing oversight and advice to, and coordination 
with, the designated entity, and participation of the member in the 
activities of the designated entity may not extend to participation in 
the day-to-day operations of the entity.
    ``(b) Designated Entities.--(1) The Secretary of Defense, and the 
Secretary of Transportation in the case of the Coast Guard when it is 
not operating as a service in the Navy, shall designate those entities 
for which authorization under subsection (a) may be provided. The list 
of entities so designated may not be revised more frequently than 
semiannually. In making such designations, the Secretary shall 
designate each military welfare society and may designate any other 
entity described in paragraph (3). No other entities may be designated.
    ``(2) In this section, the term `military welfare society' means 
the following:
        ``(A) Army Emergency Relief.
        ``(B) Air Force Aid Society, Inc.
        ``(C) Navy-Marine Corps Relief Society.
        ``(D) Coast Guard Mutual Assistance.
    ``(3) An entity described in this paragraph is an entity that is 
not operated for profit and is any of the following:
        ``(A) An entity that regulates and supports the athletic 
    programs of the service academies (including athletic conferences).
        ``(B) An entity that regulates international athletic 
    competitions.
        ``(C) An entity that accredits service academies and other 
    schools of the armed forces (including regional accrediting 
    agencies).
        ``(D) An entity that (i) regulates the performance, standards, 
    and policies of military health care (including health care 
    associations and professional societies), and (ii) has designated 
    the position or capacity in that entity in which a member of the 
    armed forces may serve if authorized under subsection (a).
    ``(c) Publication of Designated Entities and of Authorized 
Persons.--A designation of an entity under subsection (b), and an 
authorization under subsection (a) of a member of the armed forces to 
participate in the management of such an entity, shall be published in 
the Federal Register.
    ``(d) Regulations.--The Secretary of Defense, and the Secretary of 
Transportation in the case of the Coast Guard when it is not operating 
as a service in the Navy, shall prescribe regulations to carry out this 
section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1032 the 
following new item:

``1033. Participation in management of specified non-Federal entities: 
          authorized activities.''.

    (b) Civilian Personnel.--(1) Chapter 81 of such title is amended by 
inserting after section 1588 the following new section:

``Sec. 1589. Participation in management of specified non-Federal 
            entities: authorized activities

    ``(a) Authorization.--(1) The Secretary concerned may authorize an 
employee described in paragraph (2) to serve without compensation as a 
director, officer, or trustee, or to otherwise participate, in the 
management of an entity designated under subsection (b). Any such 
authorization shall be made on a case-by-case basis, for a particular 
employee to participate in a specific capacity with a specific 
designated entity. Such authorization may be made only for the purpose 
of providing oversight and advice to, and coordination with, the 
designated entity, and participation of the employee in the activities 
of the designated entity may not extend to participation in the day-to-
day operations of the entity.
    ``(2) Paragraph (1) applies to any employee of the Department of 
Defense or, in the case of the Coast Guard when not operating as a 
service in the Navy, of the Department of Transportation. For purposes 
of this section, the term `employee' includes a civilian officer.
    ``(b) Designated Entities.--The Secretary of Defense, and the 
Secretary of Transportation in the case of the Coast Guard when it is 
not operating as a service in the Navy, shall designate those entities 
for which authorization under subsection (a) may be provided. The list 
of entities so designated may not be revised more frequently than 
semiannually. In making such designations, the Secretary shall 
designate each military welfare society named in paragraph (2) of 
section 1033(b) of this title and may designate any other entity 
described in paragraph (3) of such section. No other entities may be 
designated.
    ``(c) Publication of Designated Entities and of Authorized 
Persons.--A designation of an entity under subsection (b), and an 
authorization under subsection (a) of an employee to participate in the 
management of such an entity, shall be published in the Federal 
Register.
    ``(d) Civilians Outside the Military Departments.--In this section, 
the term `Secretary concerned' includes the Secretary of Defense with 
respect to employees of the Department of Defense who are not employees 
of a military department.
    ``(e) Regulations.--The Secretary of Defense, and the Secretary of 
Transportation in the case of the Coast Guard when it is not operating 
as a service in the Navy, shall prescribe regulations to carry out this 
section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1588 the 
following new item:
``1589. Participation in management of specified non-Federal entities: 
          authorized activities.''.

SEC. 594. TREATMENT OF PARTICIPATION OF MEMBERS IN DEPARTMENT OF 
              DEFENSE CIVIL MILITARY PROGRAMS.

    Section 2012 of title 10, United States Code, is amended--
        (1) by redesignating subsections (g) and (h) as subsections (h) 
    and (i), respectively; and
        (2) by inserting after subsection (f) the following new 
    subsection:
    ``(g) Treatment of Member's Participation in Provision of Support 
or Services.--(1) The Secretary of a military department may not 
require or request a member of the armed forces to submit for 
consideration by a selection board (including a promotion board, 
command selection board, or any other kind of selection board) evidence 
of the member's participation in the provision of support and services 
to non-Department of Defense organizations and activities under this 
section or the member's involvement in, or support of, other community 
relations and public affairs activities of the armed forces.
    ``(2) Paragraph (1) does not prevent a selection board from 
considering material submitted voluntarily by a member of the armed 
forces which provides evidence of the participation of that member or 
another member in activities described in that paragraph.''.

SEC. 595. COMPTROLLER GENERAL STUDY OF DEPARTMENT OF DEFENSE CIVIL 
              MILITARY PROGRAMS.

    (a) Study Required.--The Comptroller General shall conduct a study 
to evaluate the following:
        (1) The nature, extent, and cost to the Department of Defense 
    of the support and services being provided by units and members of 
    the Armed Forces to non-Department of Defense organizations and 
    activities under the authority of section 2012 of title 10, United 
    States Code.
        (2) The degree to which the Armed Forces are in compliance with 
    the requirements of such section in the provision of such support 
    and services, especially the requirements that the assistance meet 
    specific requirements relative to military training and that the 
    assistance provided be incidental to military training.
        (3) The degree to which the regulations and procedures for 
    implementing such section, as required by subsection (f) of such 
    section, are consistent with the requirements of such section.
        (4) The effectiveness of the Secretary of Defense and the 
    Secretaries of the military departments in conducting oversight of 
    the implementation of such section, and the provision of such 
    support and services under such section, to ensure compliance with 
    the requirements of such section.
    (b) Submission of Report.--Not later than March 31, 1998, the 
Comptroller General shall submit to Congress a report containing the 
results of the study required by subsection (a).

SEC. 596. ESTABLISHMENT OF PUBLIC AFFAIRS SPECIALTY IN THE ARMY.

    (a) New Specialty.--Chapter 307 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 3083. Public Affairs Specialty

    ``There is a career field in the Army known as the Public Affairs 
Specialty. Members of the Army with the Public Affairs Specialty are--
        ``(1) the Chief of Public Affairs;
        ``(2) commissioned officers of the Army in the grade of major 
    or above who are selected and specifically educated, trained, and 
    experienced to perform as professional public affairs officers for 
    the remainder of their careers; and
        ``(3) other members of the Army assigned to public affairs 
    positions by the Secretary of the Army.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:
``3083. Public Affairs Specialty.''.

SEC. 597. GRADE OF DEFENSE ATTACHE IN FRANCE.

    (a) In General.--Chapter 41 of title 10, United States Code, is 
amended by inserting after section 713 the following new section:

``Sec. 714. Defense attache in France: required grade

    ``An officer may not be selected for assignment to the position of 
defense attache to the United States embassy in France unless the 
officer holds (or is on a promotion list for promotion to) the grade of 
brigadier general or, in the case of the Navy, rear admiral (lower 
half).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
713 the following new item:
``714. Defense attache in France: required grade.''.

SEC. 598. REPORT ON CREW REQUIREMENTS OF WC-130J AIRCRAFT.

    (a) Study.--The Secretary of the Air Force shall conduct a study of 
the crew requirements for WC-130J aircraft to be procured for 
assignment to the aerial weather reconnaissance mission involving the 
eyewall penetration of tropical cyclones. The study shall include study 
of the anticipated operation of WC-130J aircraft in weather 
reconnaissance missions configured to carry five crewmembers, including 
a navigator. In carrying out the study, the Secretary shall provide for 
participation by members of the Armed Forces currently assigned to 
units engaged in weather reconnaissance operations.
    (b) Report.--The Secretary shall submit to Congress a report on the 
results of the study. The Secretary shall include in the report the 
views of members of the Armed Forces currently assigned to units 
engaged in weather reconnaissance operations who participated in the 
study. If as a result of the study the Secretary determines that there 
are crewmembers assigned to weather reconnaissance duties in excess of 
the crew requirements that will be applicable for WC-130J aircraft, the 
Secretary shall include in the report a plan for retraining or 
reassignment of those crewmembers. The study shall be submitted not 
later than September 30, 1998.

SEC. 599. IMPROVEMENT OF MISSING PERSONS AUTHORITIES APPLICABLE TO 
              DEPARTMENT OF DEFENSE.

    (a) Applicability to Department of Defense Civilian Employees and 
Contractor Employees.--(1) Section 1501 of title 10, United States 
Code, is amended--
        (A) by striking out subsection (c) and inserting in lieu 
    thereof the following:
    ``(c) Covered Persons.--(1) Section 1502 of this title applies in 
the case of any member of the armed forces on active duty--
        ``(A) 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
        ``(B) whose status is undetermined or who is unaccounted for.
    ``(2) Section 1502 of this title applies in the case of any other 
person who is a citizen of the United States and a civilian officer or 
employee of the Department of Defense or (subject to paragraph (3)) an 
employee of a contractor of the Department of Defense--
        ``(A) who serves in direct support of, or accompanies, the 
    armed forces in the field under orders and 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
        ``(B) whose status is undetermined or who is unaccounted for.
    ``(3) The Secretary of Defense shall determine, with regard to a 
pending or ongoing military operation, the specific employees, or 
groups of employees, of contractors of the Department of Defense to be 
considered to be covered by this subsection.''; and
        (B) by adding at the end the following new subsection:
    ``(f) Secretary Concerned.--In this chapter, the term `Secretary 
concerned' includes, in the case of a civilian officer or employee of 
the Department of Defense or an employee of a contractor of the 
Department of Defense, the Secretary of the military department or head 
of the element of the Department of Defense employing the officer or 
employee or contracting with the contractor, as the case may be.''.
    (2) Section 1503(c) of such title is amended--
        (A) in paragraph (1), by striking out ``one military officer'' 
    and inserting in lieu thereof ``one individual described in 
    paragraph (2)'';
        (B) by redesignating paragraphs (2) and (3) as paragraphs (3) 
    and (4), respectively; and
        (C) by inserting after paragraph (1) the following new 
    paragraph (2):
    ``(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) Section 1504(d) of such title is amended--
        (A) in paragraph (1), by striking out ``who are'' and all that 
    follows in that paragraph and inserting in lieu thereof ``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.''; and
        (B) in paragraph (4), by striking out ``section 1503(c)(3)'' 
    and inserting in lieu thereof ``section 1503(c)(4)''.
    (4) Paragraph (1) of section 1513 of such title is amended to read 
as follows:
        ``(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 in direct support of, or accompanies, the armed forces 
        in the field under orders and who is in a missing status.
    Such term includes an unaccounted for person described in section 
    1509(b) of this title, under the circumstances specified in the 
    last sentence of section 1509(a) of this title.''.
    (b) Transmission to Theater Component Commander of Advisory Copy of 
Missing Person Report.--(1) Section 1502 of such title is amended--
        (A) by redesignating subsection (b) as subsection (c); and
        (B) by inserting after subsection (a) the following new 
    subsection (b):
    ``(b) Transmission of Advisory Copy to Theater Component 
Commander.--When transmitting a report under subsection (a)(2) 
recommending that a person be placed in a missing status, the commander 
transmitting that report shall transmit an advisory copy of the report 
to the theater component commander with jurisdiction over the missing 
person.''.
    (2) Section 1513 of such title is amended by adding at the end the 
following new paragraph:
        ``(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.''.
    (c) Information To Accompany Recommendation of Status of Death.--
Section 1507(b) of such title is amended by adding at the end the 
following new paragraphs:
        ``(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 forensic pathologist 
    that the body recovered is that of the missing person. In 
    determining whether to make such a certification, the forensic 
    pathologist shall consider, as determined necessary by the 
    Secretary of the military department concerned, additional evidence 
    and information provided by appropriate specialists in forensic 
    medicine or other appropriate medical sciences.''.
    (d) Missing Person's Counsel.--(1) Sections 1503(f)(1) and 
1504(f)(1) of such title are amended by adding at the end the 
following: ``The identity of counsel appointed under this paragraph for 
a missing person shall be made known to the missing person's primary 
next of kin and any other previously designated person of the 
person.''.
    (2) Section 1503(f)(4) of such title is amended by adding at the 
end the following: ``The primary next of kin of a missing person and 
any other previously designated person of the missing person shall have 
the right to submit information to the missing person's counsel 
relative to the disappearance or status of the missing person.''.
    (e) Scope of Preenactment Review.--(1) Section 1509 of such title 
is amended by striking out subsection (a) and inserting in lieu thereof 
the following:
    ``(a) Review of Status.--(1) If new information (as defined in 
paragraph (2)) is found or received that may be related to one or more 
unaccounted for persons described in subsection (b) (whether or not 
such information specifically relates (or may specifically relate) to 
any particular such unaccounted for person), that information shall be 
provided to the Secretary of Defense. Upon receipt of such information, 
the Secretary shall ensure that the information is treated under 
paragraphs (2) and (3) of section 1505(c) of this title and under 
section 1505(d) of this title in the same manner as information 
received under paragraph (1) of section 1505(c) of this title. For 
purposes of the applicability of other provisions of this chapter in 
such a case, each such unaccounted for person to whom the new 
information may be related shall be considered to be a missing person.
    ``(2) For purposes of this subsection, new information is 
information that is credible and that--
        ``(A) is found or received after the date of the enactment of 
    the National Defense Authorization Act for Fiscal Year 1998 by a 
    United States intelligence agency, by a Department of Defense 
    agency, or by a person specified in section 1504(g) of this title; 
    or
        ``(B) is identified after the date of the enactment of the 
    National Defense Authorization Act for Fiscal Year 1998 in records 
    of the United States as information that could be relevant to the 
    case of one or more unaccounted for persons described in subsection 
    (b).''.
    (2) Such section is further amended by adding at the end the 
following new subsection:
    ``(d) Establishment of Personnel Files for Korean Conflict Cases.--
The Secretary of Defense shall ensure that a personnel file is 
established for each unaccounted for person who is described in 
subsection (b)(1) if the Secretary possesses information relevant to 
that person's status. In the case of a person described in subsection 
(b)(1) for whom a personnel file does not exist, the Secretary shall 
create a personnel file for such person upon receipt of new information 
as provided in subsection (a). Each such file shall be handled in 
accordance with, and subject to the provisions of, section 1506 of this 
title in the same manner as applies to the file of a missing person.''.
    (f) Withholding of Classified Information.--Section 1506(b) of such 
title is amended--
        (1) by inserting ``(1)'' before ``The Secretary'';
        (2) by redesignating paragraphs (1) and (2) as subparagraphs 
    (A) and (B), respectively; and
        (3) by adding at the end the following:
    ``(2) If classified information withheld under this subsection 
refers to one or more unnamed missing persons, the Secretary shall 
ensure that notice of that withheld information, and notice of the date 
of the most recent review of the classification of that withheld 
information, is made reasonably accessible to the primary next of kin, 
members of the immediate family, and the previously designated 
person.''.
    (g) Withholding of Privileged Information.--Section 1506(d) of such 
title is amended--
        (1) in paragraph (2)--
            (A) by inserting ``or about unnamed missing persons'' in 
        the first sentence after ``the debriefing report'';
            (B) by striking out ``the missing person'' in the second 
        sentence and inserting in lieu thereof ``each missing person 
        named in the debriefing report''; and
            (C) by adding at the end the following new sentence: ``Any 
        information contained in the extract of the debriefing report 
        that pertains to unnamed missing persons shall be made 
        reasonably accessible to the primary next of kin, members of 
        the immediate family, and the previously designated person.''; 
        and
        (2) in paragraph (3), by inserting ``, or part of a debriefing 
    report,'' after ``a debriefing report''.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 1998.
Sec. 602. Reform of basic allowance for subsistence.
Sec. 603. Consolidation of basic allowance for quarters, variable 
          housing allowance, and overseas housing allowances.
Sec. 604. Revision of authority to adjust compensation necessitated by 
          reform of subsistence and housing allowances.
Sec. 605. Protection of total compensation of members while performing 
          certain duty.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay 
          authorities for reserve forces.
Sec. 612. One-year extension of certain bonuses and special pay 
          authorities for nurse officer candidates, registered nurses, 
          and nurse anesthetists.
Sec. 613. One-year extension of authorities relating to payment of other 
          bonuses and special pays.
Sec. 614. Increase in minimum monthly rate of hazardous duty incentive 
          pay for certain members.
Sec. 615. Increase in aviation career incentive pay.
Sec. 616. Modification of aviation officer retention bonus.
Sec. 617. Availability of multiyear retention bonus for dental officers.
Sec. 618. Increase in variable and additional special pays for certain 
          dental officers.
Sec. 619. Availability of special pay for duty at designated hardship 
          duty locations.
Sec. 620. Definition of sea duty for purposes of career sea pay.
Sec. 621. Modification of Selected Reserve reenlistment bonus.
Sec. 622. Modification of Selected Reserve enlistment bonus for former 
          enlisted members.
Sec. 623. Expansion of reserve affiliation bonus to include Coast Guard 
          Reserve.
Sec. 624. Increase in special pay and bonuses for nuclear-qualified 
          officers.
Sec. 625. Provision of bonuses in lieu of special pay for enlisted 
          members extending tours of duty at designated locations 
          overseas.
Sec. 626. Increase in amount of family separation allowance.
Sec. 627. Deadline for payment of Ready Reserve muster duty allowance.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Travel and transportation allowances for dependents before 
          approval of member's court-martial sentence.
Sec. 632. Dislocation allowance.

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

Sec. 641. One-year opportunity to discontinue participation in Survivor 
          Benefit Plan.
Sec. 642. Time in which change in survivor benefit coverage from former 
          spouse to spouse may be made.
Sec. 643. Review of Federal former spouse protection laws.
Sec. 644. Annuities for certain military surviving spouses.
Sec. 645. Administration of benefits for so-called minimum income 
          widows.

                        Subtitle E--Other Matters

Sec. 651. Loan repayment program for commissioned officers in certain 
          health professions.
Sec. 652. Conformance of NOAA commissioned officers separation pay to 
          separation pay for members of other uniformed services.
Sec. 653. Eligibility of Public Health Service officers and NOAA 
          commissioned corps officers for reimbursement of adoption 
          expenses.
Sec. 654. Payment of back quarters and subsistence allowances to World 
          War II veterans who served as guerrilla fighters in the 
          Philippines.
Sec. 655. Subsistence of members of the Armed Forces above the poverty 
          level.

                     Subtitle A--Pay and Allowances

SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 1998.

    (a) Waiver of Section 1009 Adjustment.--The adjustment, to become 
effective during fiscal year 1998, required by section 1009 of title 
37, United States Code (as amended by section 604), in the rate of 
monthly basic pay authorized members of the uniformed services by 
section 203(a) of such title shall not be made.
    (b) Increase in Basic Pay.--Effective on January 1, 1998, the rates 
of basic pay of members of the uniformed services are increased by 2.8 
percent.

SEC. 602. REFORM OF BASIC ALLOWANCE FOR SUBSISTENCE.

    (a) Entitlement to Allowance.--Section 402 of title 37, United 
States Code, is amended to read as follows:

``Sec. 402. Basic allowance for subsistence

    ``(a) Entitlement to Allowance.--(1) Except as provided in 
paragraph (2) or otherwise provided by law, each member of a uniformed 
service who is entitled to basic pay is entitled to a basic allowance 
for subsistence as set forth in this section.
    ``(2) An enlisted member is not entitled to the basic allowance for 
subsistence during basic training.
    ``(b) Rates of Allowance Based on Food Costs.--(1) The monthly rate 
of basic allowance for subsistence to be in effect for an enlisted 
member for a year (beginning on January 1 of that year) shall be the 
amount that is halfway between the following amounts, which are 
determined by the Secretary of Agriculture as of October 1 of the 
preceding year:
        ``(A) The amount equal to the monthly cost of a moderate-cost 
    food plan for a male in the United States who is between 20 and 50 
    years of age.
        ``(B) The amount equal to the monthly cost of a liberal food 
    plan for a male in the United States who is between 20 and 50 years 
    of age.
    ``(2) The monthly rate of basic allowance for subsistence to be in 
effect for an officer for a year (beginning on January 1 of that year) 
shall be the amount equal to the monthly rate of basic allowance for 
subsistence in effect for officers for the preceding year, increased by 
the same percentage by which the rate of basic allowance for 
subsistence for enlisted members for the preceding year is increased 
effective on such January 1.
    ``(c) Advance Payment.--The allowance to an enlisted member may be 
paid in advance for a period of not more than three months.
    ``(d) Special Rule for Members Authorized to Mess Separately.--(1) 
In areas prescribed by the Secretary of Defense, and the Secretary of 
Transportation with respect to the Coast Guard when it is not operating 
as a service in the Navy, an enlisted member described in paragraph (2) 
is entitled to not more than the pro rata allowance established under 
subsection (b)(1) for each meal the member buys from a source other 
than a messing facility of the United States.
    ``(2) An enlisted member referred to in paragraph (1) is a member 
who is granted permission to mess separately and whose duties require 
the member to buy at least one meal from a source other than a messing 
facility of the United States.
    ``(e) Policies on Use of Dining and Messing Facilities.--The 
Secretary of Defense, in consultation with the Secretaries concerned, 
shall prescribe policies regarding use of dining and field messing 
facilities of the uniformed services.
    ``(f) Regulations.--(1) The Secretary of Defense shall prescribe 
regulations for the administration of this section. Before prescribing 
the regulations, the Secretary shall consult with each Secretary 
concerned.
    ``(2) The regulations shall include the specific rates of basic 
allowance for subsistence required by subsection (b).''.
    (b) Conforming Amendments.--(1) Section 404 of title 37, United 
States Code, is amended--
        (A) by striking out subsection (g); and
        (B) by redesignating subsections (h), (i), (j), and (k) as 
    subsections (g), (h), (i), and (j), respectively.
    (2) Section 6081(a) of title 10, United States Code, is amended by 
striking out ``Except'' and all that follows through ``subsistence, 
each'' and inserting in lieu thereof ``Each''.
    (c) Transitional Authority To Provide Basic Allowance for 
Subsistence.--
        (1) Transitional authority.--Notwithstanding section 402 of 
    title 37, United States Code, as amended by subsection (a), during 
    the period beginning on January 1, 1998, and ending on the date 
    determined under paragraph (2)--
            (A) the basic allowance for subsistence shall not be paid 
        under such section 402;
            (B) a member of the uniformed services is entitled to the 
        basic allowance for subsistence only as provided in subsection 
        (d);
            (C) an enlisted member of the uniformed services may be 
        paid a partial basic allowance for subsistence as provided in 
        subsection (e); and
            (D) the rates of the basic allowance for subsistence are 
        those rates determined under subsection (f).
        (2) Termination of transitional authority.--The transitional 
    authority provided under paragraph (1) shall terminate on the first 
    day of the month immediately following the first month for which 
    the monthly equivalent of the rate of basic allowance for 
    subsistence payable to enlisted members of the uniformed services 
    (when permission to mess separately is granted), as determined 
    under subsection (f)(2), is equal to or is exceeded by the amount 
    that, except for paragraph (1)(A), would otherwise be the monthly 
    rate of basic allowance for subsistence for enlisted members under 
    section 402(b)(1) of title 37, United States Code, as amended by 
    subsection (a).
    (d) Transitional Entitlement to Allowance.--
        (1) Enlisted members.--
            (A) Types of entitlement.--An enlisted member is entitled 
        to the basic allowance for subsistence, on a daily basis, of 
        under one or more of the following circumstances:
                (i) When rations in kind are not available.
                (ii) When permission to mess separately is granted.
                (iii) When assigned to duty under emergency conditions 
            where no messing facilities of the United States are 
            available.
            (B) Other entitlement circumstances.--An enlisted member is 
        entitled to the allowance while on an authorized leave of 
        absence, while confined in a hospital, or while performing 
        travel under orders away from the member's designated post of 
        duty other than field duty or sea duty (as defined in 
        regulations prescribed by the Secretary of Defense). For 
        purposes of the preceding sentence, a member shall not be 
        considered to be performing travel under orders away from his 
        designated post of duty if such member--
                (i) is an enlisted member serving the member's first 
            tour of active duty;
                (ii) has not actually reported to a permanent duty 
            station pursuant to orders directing such assignment; and
                (iii) is not actually traveling between stations 
            pursuant to orders directing a change of station.
            (C) Advance payment.--The allowance to an enlisted member, 
        when authorized, may be paid in advance for a period of not 
        more than three months.
        (2) Officers.--An officer of a uniformed service who is 
    entitled to basic pay is, at all times, entitled to the basic 
    allowances for subsistence. An aviation cadet of the Navy, Air 
    Force, Marine Corps, or Coast Guard is entitled to the same basic 
    allowance for subsistence as is provided for an officer of the 
    Navy, Air Force, Marine Corps, or Coast Guard, respectively.
    (e) Transitional Authority for Partial Allowance.--
        (1) Enlisted members furnished subsistence in kind.--The 
    Secretary of Defense may provide in regulations for an enlisted 
    member of a uniformed service to be paid a partial basic allowance 
    for subsistence when--
            (A) rations in kind are available to the member;
            (B) the member is not granted permission to mess 
        separately; or
            (C) the member is assigned to duty under emergency 
        conditions where messing facilities of the United States are 
        available.
        (2) Monthly payment.--Any partial basic allowance for 
    subsistence authorized under paragraph (1) shall be calculated on a 
    daily basis and paid on a monthly basis.
    (f) Transitional Rates.--
        (1) Allowance for officers.--The monthly rate of basic 
    allowance for subsistence for a year (beginning on January 1 of 
    that year) that is payable to officers of the uniformed services 
    shall be the amount that is equal to 101 percent of the rate of 
    basic allowance for subsistence that was payable to officers of the 
    uniformed services for the preceding year.
        (2) Allowance for enlisted member with permission to mess 
    separately.--The monthly rate of basic allowance for subsistence 
    for a year (beginning on January 1 of that year) that is payable to 
    an enlisted member of the uniformed services entitled to the 
    allowance under subsection (d)(1) shall be the amount that is equal 
    to 101 percent of the rate of basic allowance for subsistence that 
    was in effect for similarly situated enlisted members of the 
    uniformed services for the preceding year.
        (3) Partial allowance for other enlisted members.--The monthly 
    rate of any partial basic allowance for subsistence for a year 
    (beginning on January 1 of that year) payable to an enlisted member 
    of the uniformed services eligible for the allowance under the 
    regulations prescribed under subsection (e)(1) shall be the amount 
    equal to the lesser of the following:
            (A) The sum of--
                (i) the partial basic allowance for subsistence in 
            effect for the preceding year; and
                (ii) the amount equal to the difference, if any, 
            between--

                    (I) the monthly equivalent of the rate of basic 
                allowance for subsistence that was in effect for the 
                preceding year for members of the uniformed services 
                above grade E-1 (when permission to mess separately is 
                granted), increased by the same percentage by which the 
                rates of basic pay for members of the uniformed 
                services is increased for the current year; and
                    (II) the amount equal to 101 percent of the monthly 
                equivalent of the rate of basic allowance for 
                subsistence that was in effect for the previous year 
                for members of the uniformed services above grade E-1 
                (when permission to mess separately is granted),

            with the amount so determined under this clause multiplied 
            by the number of members estimated to be entitled to 
            receive basic allowance for subsistence under subsection 
            (d) for the current year and then divided by the number of 
            members estimated to be eligible for the partial allowance 
            under the regulations prescribed under subsection (e)(1) 
            for that year.
            (B) The amount equal to the difference between--
                (i) the amount that, except for subsection (c)(1)(A), 
            would otherwise be the monthly rate of basic allowance for 
            subsistence for enlisted members under section 402(b)(1) of 
            title 37, United States Code; and
                (ii) the amount equal to the monthly equivalent of the 
            value of a daily ration, as determined by the Under 
            Secretary of Defense (Comptroller) as of October 1 of the 
            preceding year.
    (g) Effective Date.--This section and the amendments made by this 
section shall take effect on January 1, 1998.

SEC. 603. CONSOLIDATION OF BASIC ALLOWANCE FOR QUARTERS, VARIABLE 
              HOUSING ALLOWANCE, AND OVERSEAS HOUSING ALLOWANCES.

    (a) Consolidation of Allowances.--Section 403 of title 37, United 
States Code, is amended to read as follows:

``Sec. 403. Basic allowance for housing

    ``(a) General Entitlement.--(1) Except as otherwise provided by 
law, a member of a uniformed service who is entitled to basic pay is 
entitled to a basic allowance for housing at the monthly rates 
prescribed under this section or another provision of law with regard 
to the applicable component of the basic allowance for housing. The 
amount of the basic allowance for housing for a member will vary 
according to the pay grade in which the member is assigned or 
distributed for basic pay purposes, the dependency status of the 
member, and the geographic location of the member. The basic allowance 
for housing may be paid in advance.
    ``(2) A member of a uniformed service with dependents is not 
entitled to a basic allowance for housing as a member with dependents 
unless the member makes a certification to the Secretary concerned 
indicating the status of each dependent of the member. The 
certification shall be made in accordance with regulations prescribed 
by the Secretary of Defense.
    ``(b) Basic Allowance for Housing Inside the United States.--(1) 
The Secretary of Defense shall determine the costs of adequate housing 
in a military housing area in the United States for all members of the 
uniformed services entitled to a basic allowance for housing in that 
area. The Secretary shall base the determination upon the costs of 
adequate housing for civilians with comparable income levels in the 
same area.
    ``(2) Subject to paragraph (3), the monthly amount of a basic 
allowance for housing for an area of the United States for a member of 
a uniformed service is equal to the difference between--
        ``(A) the monthly cost of adequate housing in that area, as 
    determined by the Secretary of Defense, for members of the 
    uniformed services serving in the same pay grade and with the same 
    dependency status as the member; and
        ``(B) 15 percent of the national average monthly cost of 
    adequate housing in the United States, as determined by the 
    Secretary, for members of the uniformed services serving in the 
    same pay grade and with the same dependency status as the member.
    ``(3) The rates of basic allowance for housing shall be reduced as 
necessary to comply with this paragraph. The total amount that may be 
paid for a fiscal year for the basic allowance for housing under this 
subsection is the product of--
        ``(A) the total amount authorized to be paid for such allowance 
    for the preceding fiscal year (as adjusted under paragraph (5)); 
    and
        ``(B) a fraction--
            ``(i) the numerator of which is the index of the national 
        average monthly cost of housing for June of the preceding 
        fiscal year; and
            ``(ii) the denominator of which is the index of the 
        national average monthly cost of housing for June of the fiscal 
        year before the preceding fiscal year.
    ``(4) An adjustment in the rates of the basic allowance for housing 
under this subsection as a result of the Secretary's redetermination of 
housing costs in an area shall take effect on the same date as the 
effective date of the next increase in basic pay under section 1009 of 
this title or other provision of law.
    ``(5) In making a determination under paragraph (3) for a fiscal 
year, the amount authorized to be paid for the preceding fiscal year 
for the basic allowance for housing shall be adjusted to reflect 
changes during the year for which the determination is made in the 
number, grade distribution, geographic distribution in the United 
States, and dependency status of members of the uniformed services 
entitled to the allowance from the number of such members during the 
preceding fiscal year.
    ``(6) So long as a member of a uniformed service retains 
uninterrupted eligibility to receive a basic allowance for housing 
within an area of the United States, the monthly amount of the 
allowance for the member may not be reduced as a result of changes in 
housing costs in the area, changes in the national average monthly cost 
of housing, or the promotion of the member.
    ``(7) In the case of a member without dependents who is assigned to 
duty inside the United States, the location or the circumstances of 
which make it necessary that the member be reassigned under the 
conditions of low-cost or no-cost permanent change of station or 
permanent change of assignment, the member may be treated as if the 
member were not reassigned if the Secretary concerned determines that 
it would be inequitable to base the member's entitlement to, and amount 
of, a basic allowance for housing on the cost of housing in the area to 
which the member is reassigned.
    ``(c) Basic Allowance for Housing Outside the United States.--(1) 
The Secretary of Defense may prescribe an overseas basic allowance for 
housing for a member of a uniformed service who is on duty outside of 
the United States. The Secretary shall establish the basic allowance 
for housing under this subsection on the basis of housing costs in the 
overseas area in which the member is assigned.
    ``(2) So long as a member of a uniformed service retains 
uninterrupted eligibility to receive a basic allowance for housing in 
an overseas area and the actual monthly cost of housing for the member 
is not reduced, the monthly amount of the allowance in an area outside 
the United States may not be reduced as a result of changes in housing 
costs in the area or the promotion of the member. The monthly amount of 
the allowance may be adjusted to reflect changes in currency rates.
    ``(d) Basic Allowance for Housing When Dependents Are Unable To 
Accompany Member.--(1) A member of a uniformed service with dependents 
who is on permanent duty at a location described in paragraph (2) is 
entitled to a family separation basic allowance for housing under this 
subsection at a monthly rate equal to the rate of the basic allowance 
for housing established under subsection (b) or the overseas basic 
allowance for housing established under subsection (c), whichever 
applies to that location, for members in the same grade at that 
location without dependents.
    ``(2) A permanent duty location referred to in paragraph (1) is a 
location--
        ``(A) to which the movement of the member's dependents is not 
    authorized at the expense of the United States under section 406 of 
    this title, and the member's dependents do not reside at or near 
    the location; and
        ``(B) at which quarters of the United States are not available 
    for assignment to the member.
    ``(3) In the case of a member with dependents who is assigned to 
duty at a location or under circumstances that, as determined by the 
Secretary concerned, require the member's dependents to reside at a 
different location, the member shall receive a basic allowance for 
housing, as provided in subsection (a) or (b), as if the member were 
assigned to duty in the area in which the dependents reside, regardless 
of whether the member resides in quarters of the United States or is 
also entitled to a family separation basic allowance for housing by 
reason of paragraph (1).
    ``(4) The family separation basic allowance for housing under this 
subsection shall be in addition to any other allowance or per diem that 
the member is otherwise entitled to receive under this title. A member 
may receive a basic allowance for housing under both paragraphs (1) and 
(3).
    ``(e) Effect of Assignment to Quarters.--(1) Except as otherwise 
provided by law, a member of a uniformed service who is assigned to 
quarters of the United States or a housing facility under the 
jurisdiction of a uniformed service appropriate to the grade, rank, or 
rating of the member and adequate for the member and dependents of the 
member, if with dependents, is not entitled to a basic allowance for 
housing.
    ``(2) A member without dependents who is in a pay grade above pay 
grade E-6 and who is assigned to quarters in the United States or a 
housing facility under the jurisdiction of a uniformed service, 
appropriate to the grade or rank of the member and adequate for the 
member, may elect not to occupy those quarters and instead to receive 
the basic allowance for housing prescribed for the member's pay grade 
by this section.
    ``(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 Secretary 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 housing prescribed for the member's pay 
grade under this section.
    ``(4) The Secretary concerned may deny the right to make an 
election under paragraph (2) or (3) if the Secretary determines that 
the exercise of such an election would adversely affect a training 
mission, military discipline, or military readiness.
    ``(5) A member with dependents who is assigned to quarters of the 
United States or a housing facility under the jurisdiction of a 
uniformed service may be paid the basic allowance for housing if, 
because of orders of competent authority, the dependents are prevented 
from occupying those quarters.
    ``(f) Ineligibility During Initial Field Duty or Sea Duty.--(1) A 
member of a uniformed service without dependents who makes a permanent 
change of station for assignment to a unit conducting field operations 
is not entitled to a basic allowance for housing while on that initial 
field duty unless the commanding officer of the member certifies that 
the member was necessarily required to procure quarters at the member's 
expense.
    ``(2)(A) Except as provided in subparagraphs (B) and (C), a member 
of a uniformed service without dependents who is in a pay grade below 
pay grade E-6 is not entitled to a basic allowance for housing while 
the member is on sea duty.
    ``(B) Under regulations prescribed by the Secretary concerned, the 
Secretary may authorize the payment of a basic allowance for housing to 
a member of a uniformed service without dependents who is serving in 
pay grade E-5 and is assigned to sea duty. In prescribing regulations 
under this subparagraph, the Secretary concerned shall consider the 
availability of quarters for members serving in pay grade E-5.
    ``(C) Notwithstanding section 421 of this title, two members of the 
uniformed services in a pay grade below pay grade E-6 who are married 
to each other, have no other dependents, and are simultaneously 
assigned to sea duty are jointly entitled to one basic allowance for 
housing during the period of such simultaneous sea duty. The amount of 
the allowance shall be based on the without dependents rate for the pay 
grade of the senior member of the couple. However, this subparagraph 
shall not apply to a couple if one or both of the members are entitled 
to a basic allowance for housing under subparagraph (B).
    ``(3) The Secretary of Defense, and the Secretary of Transportation 
with respect to the Coast Guard when it is not operating as a service 
in the Department of the Navy, shall prescribe regulation defining the 
terms `field duty' and `sea duty' for purposes of this section.
    ``(g) Reserve Members.--(1) A member of a reserve component without 
dependents who is called or ordered to active duty in support of a 
contingency operation, or a retired member without dependents who is 
ordered to active duty under section 688(a) of title 10 in support of a 
contingency operation, may not be denied a basic allowance for housing 
if, because of that call or order, the member is unable to continue to 
occupy a residence--
        ``(A) which is maintained as the primary residence of the 
    member at the time of the call or order; and
        ``(B) which is owned by the member or for which the member is 
    responsible for rental payments.
    ``(2) Paragraph (1) shall not apply if the member is authorized 
transportation of household goods under section 406 of this title as 
part of the call or order to active duty described in such paragraph.
    ``(3) The Secretary of Defense shall establish a rate of basic 
allowance for housing to be paid to a member of a reserve component 
while the member serves on active duty under a call or order to active 
duty specifying a period of less than 140 days, unless the call or 
order to active duty is in support of a contingency operation.
    ``(h) Rental of Public Quarters.--Notwithstanding any other law 
(including those restricting the occupancy of housing facilities under 
the jurisdiction of a department or agency of the United States by 
members, and their dependents, of the armed forces above specified 
grades, or by members, and their dependents, of the National Oceanic 
and Atmospheric Administration and the Public Health Service), a member 
of a uniformed service, and the dependents of the member, may be 
accepted as tenants in, and may occupy on a rental basis, any of those 
housing facilities, other than public quarters constructed or 
designated for assignment to an occupancy without charge by such a 
member and the dependents of the member, if any. Such a member may not, 
because of occupancy under this subsection, be deprived of any money 
allowance to which the member is otherwise entitled for the rental of 
quarters.
    ``(i) Temporary Housing Allowance While in Travel or Leave 
Status.--A member of a uniformed service who is in a pay grade E-4 (4 
or more years of service) or above is entitled to a temporary basic 
allowance for housing (at a rate determined by the Secretary of 
Defense) while the member is in a travel or leave status between 
permanent duty stations, including time granted as delay en route or 
proceed time, when the member is not assigned to quarters of the United 
States.
    ``(j) Aviation Cadets.--The eligibility of an aviation cadet of the 
Navy, Air Force, Marine Corps, or Coast Guard for a basic allowance for 
housing shall be determined as if the aviation cadet were a member of 
the uniformed services in pay grade E-4.
    ``(k) Administration.--(1) The Secretary of Defense shall prescribe 
regulations for the administration of this section.
    ``(2) The Secretary concerned may make such determinations as may 
be necessary to administer this section, including determinations of 
dependency and relationship. When warranted by the circumstances, the 
Secretary concerned may reconsider and change or modify any such 
determination. The authority of the Secretary concerned under this 
subsection may be delegated. Any determination made under this section 
with regard to a member of the uniformed services is final and is not 
subject to review by any accounting officer of the United States or a 
court, unless there is fraud or gross negligence.
    ``(3) Parking facilities (including utility connections) provided 
members of the uniformed services for house trailers and mobile homes 
not owned by the Government shall not be considered to be quarters for 
the purposes of this section or any other provision of law. Any fees 
established by the Government for the use of such a facility shall be 
established in an amount sufficient to cover the cost of maintenance, 
services, and utilities and to amortize the cost of construction of the 
facility over the 25-year period beginning with the completion of such 
construction.
    ``(l) Temporary Continuation of Allowance for Dependents of Members 
Dying on Active Duty.--(1) The Secretary of Defense, or the Secretary 
of Transportation in the case of the Coast Guard when not operating as 
a service in the Navy, may allow the dependents of a member of the 
armed forces who dies on active duty and whose dependents are occupying 
family housing provided by the Department of Defense, or by the 
Department of Transportation in the case of the Coast Guard, other than 
on a rental basis on the date of the member's death to continue to 
occupy such housing without charge for a period of 180 days.
    ``(2) The Secretary concerned may pay a basic allowance for housing 
(at the rate that is payable for members of the same grade and 
dependency status as the deceased member for the area where the 
dependents are residing) to the dependents of a member of the uniformed 
services who dies while on active duty and whose dependents--
        ``(A) are not occupying a housing facility under the 
    jurisdiction of a uniformed service on the date of the member's 
    death;
        ``(B) are occupying such housing on a rental basis on such 
    date; or
        ``(C) vacate such housing sooner than 180 days after the date 
    of the member's death.
    ``(3) The payment of the allowance under paragraph (2) shall 
terminate 180 days after the date of the member's death.
    ``(m) Members Paying Child Support.--(1) A member of a uniformed 
service with dependents may not be paid a basic allowance for housing 
at the with dependents rate solely by reason of the payment of child 
support by the member if--
        ``(A) the member is assigned to a housing facility under the 
    jurisdiction of a uniformed service; or
        ``(B) the member is assigned to sea duty, and elects not to 
    occupy assigned quarters for unaccompanied personnel, unless the 
    member is in a pay grade above E-4.
    ``(2) A member of a uniformed service assigned to quarters of the 
United States or a housing facility under the jurisdiction of a 
uniformed service who is not otherwise authorized a basic allowance for 
housing and who pays child support is entitled to the basic allowance 
for housing differential, except for months for which the amount 
payable for the child support is less than the rate of the 
differential. Payment of a basic allowance for housing differential 
does not affect any entitlement of the member to a partial allowance 
for quarters under subsection (n).
    ``(3) The basic allowance for housing differential to which a 
member is entitled under paragraph (2) is the amount equal to the 
difference between--
        ``(A) the rate of the basic allowance for quarters (with 
    dependents) for the member's pay grade, as such rate was in effect 
    on December 31, 1997, under this section (as in effect on that 
    date); and
        ``(B) the rate of the basic allowance for quarters (without 
    dependents) for the member's pay grade, as such rate was in effect 
    on December 31, 1997, under this section (as in effect on that 
    date).
    ``(4) Whenever the rates of basic pay for members of the uniformed 
services are increased, the monthly amount of the basic allowance for 
housing differential computed under paragraph (3) shall be increased by 
the average percentage increase in the rates of basic pay. The 
effective date of the increase shall be the same date as the effective 
date of the increase in the rates of basic pay.
    ``(5) In the case of two members, who have one or more common 
dependents (and no others), who are not married to each other, and one 
of whom pays child support to the other, the amount of the basic 
allowance for housing paid to each member under this section shall be 
reduced in accordance with regulations prescribed by the Secretary of 
Defense. The total amount of the basic allowances for housing paid to 
the two members may not exceed the sum of the amounts of the allowance 
to which each member would be otherwise entitled under this section.
    ``(n) Partial Allowance for Members Without Dependents.--(1) A 
member of a uniformed service without dependents who is not entitled to 
receive a basic allowance for housing under subsection (b), (c), or (d) 
is entitled to a partial basic allowance for housing at a rate 
determined by the Secretary of Defense under paragraph (2).
    ``(2) The rate of the partial basic allowance for housing is the 
partial rate of the basic allowance for quarters for the member's pay 
grade as such partial rate was in effect on December 31, 1997, under 
section 1009(c)(2) of this title (as such section was in effect on such 
date).''.
    (b) Transition to Basic Allowance for Housing.--The Secretary of 
Defense shall develop and implement a plan to incrementally manage the 
rate of growth of the various components of the basic allowance for 
housing authorized by section 403 of title 37, United States Code (as 
amended by subsection (a)), during a transition period of not more than 
six years. During the transition period, the Secretary may continue to 
use the authorities provided under sections 403, 403a, 405(b), and 
427(a) of title 37, United States Code (as in effect on the day before 
the date of the enactment of this Act), but subject to such 
modifications as the Secretary considers necessary, to provide 
allowances for members of the uniformed services.
    (c) Repeal of Superseded Authorities.--(1) Section 403a of title 
37, United States Code, is repealed.
    (2) Section 405 of such title is amended--
        (A) by striking out subsection (b); and
        (B) by redesignating subsections (c) and (d) as subsections (b) 
    and (c), respectively.
    (3) Section 427 of such title is amended--
        (A) by striking out subsection (a); and
        (B) in subsection (b)--
            (i) by striking out ``(b) Additional Separation 
        Allowance.--'' and inserting in lieu thereof ``(a) Entitlement 
        to Allowance.--'';
            (ii) in paragraph (1)--
                (I) by striking out ``, including subsection (a),'' in 
            the matter preceding the subparagraphs;
                (II) by inserting ``or'' at the end of subparagraph 
            (B);
                (III) by striking out ``; or'' at the end of 
            subparagraph (C) and inserting in lieu thereof a period; 
            and
                (IV) by striking out subparagraph (D);
            (iii) in paragraph (3)--
                (I) by striking out ``(3) An allowance'' and inserting 
            in lieu thereof ``(b) Entitlement When No Residence or 
            Household Maintained for Dependents.--An allowance''; and
                (II) by striking out ``this subsection'' and inserting 
            in lieu thereof ``subsection (a)'';
            (iv) in paragraph (4)--
                (I) by striking out ``(4) A member'' and inserting in 
            lieu thereof ``(c) Effect of Election to Serve 
            Unaccompanied Tour of Duty.--A member''; and
                (II) by striking out ``paragraph (1)(A) of this 
            subsection'' and inserting in lieu thereof ``subsection 
            (a)(1)(A)''; and
            (v) by striking out paragraph (5) and inserting in lieu 
        thereof the following new subsection:
    ``(d) Entitlement While Spouse Entitled to Basic Pay.--A member 
married to another member of the uniformed services becomes entitled, 
regardless of any other dependency status, to an allowance under 
subsection (a) by virtue of duty prescribed in subparagraph (A), (B), 
or (C) of paragraph (1) of such subsection if the members were residing 
together immediately before being separated by reasons of execution of 
military orders. Section 421 of this title does not apply to bar the 
entitlement to an allowance under this section. However, not more than 
one monthly allowance may be paid with respect to a married couple 
under this section.''.
    (4) The table of sections at the beginning of chapter 7 of title 
37, United States Code, is amended by striking out the items relating 
to sections 403 and 403a and inserting in lieu thereof the following 
new item:
``403. Basic allowance for housing.''.

    (d) Conforming Amendments.--(1) Title 37, United States Code, is 
amended--
        (A) in section 101(25), by striking out ``basic allowance for 
    quarters (including any variable housing allowance or station 
    housing allowance)'' and inserting in lieu thereof ``basic 
    allowance for housing'';
        (B) in section 406(c), by striking out ``sections 404 and 405'' 
    and inserting in lieu thereof ``sections 403(c), 404, and 405'';
        (C) in section 420(c), by striking out ``quarters'' and 
    inserting in lieu thereof ``housing'';
        (D) in section 551(3)(D), by striking out ``basic allowance for 
    quarters'' and inserting in lieu thereof ``basic allowance for 
    housing''; and
        (E) in section 1014(a), by striking out ``basic allowance for 
    quarters'' and inserting in lieu thereof ``basic allowance for 
    housing''.
    (2) Title 10, United States Code, is amended--
        (A) in section 708(c)(1), by striking out ``basic allowance for 
    quarters or basic allowance for subsistence'' and inserting in lieu 
    thereof ``basic allowance for housing under section 403 of title 
    37, basic allowance for subsistence under section 402 of such 
    title,'';
        (B) in section 2830(a)--
            (i) in paragraph (1), by striking out ``basic allowance for 
        quarters'' and inserting in lieu thereof ``basic allowance for 
        housing under section 403 of title 37''; and
            (ii) in paragraph (2), by striking out ``basic allowance 
        for quarters'' and inserting in lieu thereof ``basic allowance 
        for housing'';
        (C) in section 2882(b)--
            (i) in paragraph (1), by striking out ``section 403(b)'' 
        and inserting in lieu thereof ``section 403''; and
            (ii) in paragraph (2), by striking out ``basic allowance 
        for quarters'' and all that follows through the end of the 
        paragraph and inserting in lieu thereof ``basic allowance for 
        housing under section 403 of title 37.'';
        (D) in section 7572(b)--
            (i) in paragraph (1), by striking out ``the total of--'' 
        and all that follows through the end of the paragraph and 
        inserting in lieu thereof ``the basic allowance for housing 
        payable under section 403 of title 37 to a member of the same 
        pay grade without dependents for the period during which the 
        member is deprived of quarters on board ship.''; and
            (ii) in paragraph (2), by striking out ``basic allowance 
        for quarters'' and inserting in lieu thereof ``basic allowance 
        for housing''; and
        (E) in section 7573, by striking out ``basic allowance for 
    quarters'' and inserting in lieu thereof ``basic allowance for 
    housing under section 403 of title 37''.
    (3) Section 5561(6)(D) of title 5, United States Code, is amended 
by striking out ``basic allowance for quarters'' and inserting in lieu 
thereof ``basic allowance for housing''.
    (4) Section 107(b) of title 32, United States Code, is amended by 
striking out ``and quarters'' and inserting in lieu thereof ``and 
housing''.
    (5) Section 4(k)(10) of the Military Selective Service Act (50 
U.S.C. App. 454(k)(10)) is amended by striking out ``as such terms'' 
and all that follows through ``extended or amended'' and inserting in 
lieu thereof ``shall be entitled to receive a dependency allowance 
equal to the basic allowance for housing provided for persons in pay 
grade E-1 under section 403 of title 37, United States Code,''.
    (e) Effective Date.--This section and the amendments made by this 
section shall take effect on January 1, 1998.

SEC. 604. REVISION OF AUTHORITY TO ADJUST COMPENSATION NECESSITATED BY 
              REFORM OF SUBSISTENCE AND HOUSING ALLOWANCES.

    (a) Removal of References to BAS and BAQ.--(1) Section 1009 of 
title 37, United States Code, is amended to read as follows:

``Sec. 1009. Adjustments of monthly basic pay

    ``(a) Adjustment Required.--Whenever the General Schedule of 
compensation for Federal classified employees, as contained in section 
5332 of title 5, is adjusted upward as provided in section 5303 of such 
title, the President shall immediately make an upward adjustment in the 
monthly basic pay authorized members of the uniformed services by 
section 203(a) of this title.
    ``(b) Effectiveness of Adjustment.--An adjustment under this 
section shall--
        ``(1) have the force and effect of law; and
        ``(2) carry the same effective date as that applying to the 
    compensation adjustments provided General Schedule employees.
    ``(c) Equal Percentage Increase for All Members.--Subject to 
subsection (d), an adjustment under this section shall provide all 
eligible members with an increase in the monthly basic pay which is of 
the same percentage as the overall average percentage increase in the 
General Schedule rates of both basic pay and locality pay for civilian 
employees.
    ``(d) Allocation of Increase Among Pay Grades and Years-of-
Service.--(1) Subject to paragraph (2), whenever the President 
determines such action to be in the best interest of the Government, he 
may allocate the overall percentage increase in the monthly basic pay 
under subsection (a) among such pay grade and years-of-service 
categories as he considers appropriate.
    ``(2) In making any allocation of an overall percentage increase in 
basic pay under paragraph (1)--
        ``(A) the amount of the increase in basic pay for any given pay 
    grade and years-of-service category after any allocation made under 
    this subsection may not be less than 75 percent of the amount of 
    the increase in the monthly basic pay that would otherwise have 
    been effective with respect to such pay grade and years-of-service 
    category under subsection (c); and
        ``(B) the percentage increase in the monthly basic pay in the 
    case of any member of the uniformed services with four years or 
    less service may not exceed the overall percentage increase in the 
    General Schedule rates of basic pay for civilian employees.
    ``(e) Notice of Allocations.--Whenever the President plans to 
exercise the authority of the President under subsection (d) with 
respect to any anticipated increase in the monthly basic pay of members 
of the uniformed services, the President shall advise Congress, at the 
earliest practicable time prior to the effective date of such increase, 
regarding the proposed allocation of such increase.
    ``(f) Quadrennial Assessment of Allocations.--The allocations of 
increases made under this section shall be assessed in conjunction with 
the quadrennial review of military compensation required by section 
1008(b) of this title.''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 19 of such title is amended to read as 
follows:
``1009. Adjustments of monthly basic pay.''.

    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on January 1, 1998.

SEC. 605. PROTECTION OF TOTAL COMPENSATION OF MEMBERS WHILE PERFORMING 
              CERTAIN DUTY.

    Section 1009 of title 37, United States Code, as amended by section 
604, is further amended--
        (1) by redesignating subsection (f) as subsection (g); and
        (2) by inserting after subsection (e) the following new 
    subsection:
    ``(f) Protection of Member's Total Compensation While Performing 
Certain Duty.--(1) The total daily equivalent amount of the elements of 
compensation described in paragraph (3), together with other pay and 
allowances under this title, to be paid to a member of the uniformed 
services who is temporarily assigned to duty away from the member's 
permanent duty station or to duty under field conditions at the 
member's permanent duty station shall not be less, for any day during 
the assignment period, than the total amount, for the day immediately 
preceding the date of the assignment, of the elements of compensation 
and other pay and allowances of the member.
    ``(2) Paragraph (1) shall not apply with respect to an element of 
compensation or other pay or allowance of a member during an assignment 
described in such paragraph to the extent that the element of 
compensation or other pay or allowance is reduced or terminated due to 
circumstances unrelated to the assignment.
    ``(3) The elements of compensation referred to in this subsection 
mean--
        ``(A) the monthly basic pay authorized members of the uniformed 
    services by section 203(a) of this title;
        ``(B) the basic allowance for subsistence authorized members of 
    the uniformed services by section 402 of this title; and
        ``(C) the basic allowance for housing authorized members of the 
    uniformed services by section 403 of this title.''.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY 
              AUTHORITIES FOR RESERVE FORCES.

    (a) Special Pay for Health Professionals in Critically Short 
Wartime Specialties.--Section 302g(f) of title 37, United States Code, 
is amended by striking out ``September 30, 1998'' and inserting in lieu 
thereof ``September 30, 1999''.
    (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) of title 
37, United States Code, is amended by striking out ``September 30, 
1998'' and inserting in lieu thereof ``September 30, 1999''.
    (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of title 
37, United States Code, is amended by striking out ``September 30, 
1998'' and inserting in lieu thereof ``September 30, 1999''.
    (d) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of title 37, United States Code, is 
amended by striking out ``September 30, 1998'' and inserting in lieu 
thereof ``September 30, 1999''.
    (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of title 
37, United States Code, is amended by striking out ``September 30, 
1998'' and inserting in lieu thereof ``September 30, 1999''.
    (f) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(g) of title 37, United States Code, is amended by striking out 
``September 30, 1998'' and inserting in lieu thereof ``September 30, 
1999''.
    (g) Prior Service Enlistment Bonus.--Section 308i(f) of title 37, 
United States Code, as redesignated by section 622, is amended by 
striking out ``September 30, 1998'' and inserting in lieu thereof 
``September 30, 1999''.
    (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, 1998'' and 
inserting in lieu thereof ``October 1, 1999''.

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

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking out ``September 
30, 1998'' and inserting in lieu thereof ``September 30, 1999''.
    (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking out ``September 
30, 1998'' and inserting in lieu thereof ``September 30, 1999''.
    (c) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of title 37, United States Code, is amended by striking out 
``September 30, 1998'' and inserting in lieu thereof ``September 30, 
1999''.

SEC. 613. ONE-YEAR EXTENSION OF AUTHORITIES 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, 1998,'' 
and inserting in lieu thereof ``September 30, 1999,''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) of title 
37, United States Code, is amended by striking out ``September 30, 
1998'' and inserting in lieu thereof ``September 30, 1999''.
    (c) Enlistment Bonuses for Members With Critical Skills.--Sections 
308a(c) and 308f(c) of title 37, United States Code, are each amended 
by striking out ``September 30, 1998'' and inserting in lieu thereof 
``September 30, 1999''.
    (d) Special Pay for Nuclear Qualified Officers Extending Period of 
Active Service.--Section 312(e) of title 37, United States Code, is 
amended by striking out ``September 30, 1998'' and inserting in lieu 
thereof ``September 30, 1999''.
    (e) Nuclear Career Accession Bonus.--Section 312b(c) of title 37, 
United States Code, is amended by striking out ``September 30, 1998'' 
and inserting in lieu thereof ``September 30, 1999''.
    (f) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of 
title 37, United States Code, is amended by striking out ``October 1, 
1998'' and inserting in lieu thereof ``October 1, 1999''.

SEC. 614. INCREASE IN MINIMUM MONTHLY RATE OF HAZARDOUS DUTY INCENTIVE 
              PAY FOR CERTAIN MEMBERS.

    (a) Aerial Flight Crewmembers.--The table in subsection (b) of 
section 301 of title 37, United States Code, is amended--
        (1) by striking out ``110'' each place it appears and inserting 
    in lieu thereof ``150''; and
        (2) by striking out ``125'' each place it appears and inserting 
    in lieu thereof ``150''.
    (b) Air Weapons Controller Aircrew.--The table in subsection 
(c)(2)(A) of such section is amended--
        (1) by striking out ``100'' in the first column of amounts and 
    inserting in lieu thereof ``150'';
        (2) by striking out ``110'' in the last column of amounts and 
    inserting in lieu thereof ``150''; and
        (3) by striking out ``125'' each place it appears and inserting 
    in lieu thereof ``150''.
    (c) Other Members.--Subsection (c)(1) of such section is amended--
        (1) by striking out ``$110'' and inserting in lieu thereof 
    ``$150''; and
        (2) by striking out ``$165'' and inserting in lieu thereof 
    ``$225''.

SEC. 615. INCREASE IN AVIATION CAREER INCENTIVE PAY.

    (a) Amounts.--The table in subsection (b)(1) of section 301a of 
title 37, United States Code, is amended--
        (1) by inserting at the end of phase I of the table the 
    following:

    ``Over 14.....................................................
                                                                  840'';

    and
        (2) by striking out phase II of the table and inserting in lieu 
    thereof the following:

                               ``Phase II

  
                                                               ``Monthly
``Years of service as an officer:
                                                                    rate

    ``Over 22.....................................................
                                                                   $585 
    ``Over 23.....................................................
                                                                    495 
    ``Over 24.....................................................
                                                                    385 
    ``Over 25.....................................................
                                                                  250''.

    (b) Conforming Amendments.--Such subsection is further amended in 
the matter after the table by striking out ``18 years'' both places it 
appears and inserting in lieu thereof ``22 years''.
    (c) Effective Date and Applicability.--The amendments made by 
subsection (a) shall take effect on January 1, 1999, and shall apply 
with respect to months beginning on or after that date.

SEC. 616. MODIFICATION OF AVIATION OFFICER RETENTION BONUS.

    (a) Increase in Bonus Amounts.--Subsection (c) of section 301b of 
title 37, United States Code, is amended--
        (1) in paragraph (1), by striking out ``$12,000'' and inserting 
    in lieu thereof ``$25,000''; and
        (2) in paragraph (2), by striking out ``$6,000'' and inserting 
    in lieu thereof ``$12,000''.
    (b) Duration of Agreement.--Paragraph (2) of such subsection is 
further amended by striking out ``one or two years'' and inserting in 
lieu thereof ``one, two, or three years''.
    (c) Content of Annual Report.--Subsection (i)(1) of such section is 
amended--
        (1) by inserting ``and'' at the end of subparagraph (A);
        (2) by striking out ``; and'' at the end of subparagraph (B) 
    and inserting in lieu thereof a period; and
        (3) by striking out subparagraph (C).
    (d) Definition of Aviation Specialty.--Subsection (j)(2) of such 
section is amended by inserting ``specific'' before ``community'' both 
places it appears.
    (e) Effective Dates and Applicability.--The amendments made by this 
section shall take effect as of October 1, 1996, and shall apply with 
respect to agreements accepted under section 301b of title 37, United 
States Code, on or after that date.

SEC. 617. AVAILABILITY OF MULTIYEAR RETENTION BONUS FOR DENTAL 
              OFFICERS.

    (a) Availability of Retention Bonus.--Chapter 5 of title 37, United 
States Code, is amended by inserting after section 301d the following 
new section:

``Sec. 301e. Multiyear retention bonus: dental officers of the armed 
            forces

    ``(a) Bonus Authorized.--(1) A dental officer described in 
subsection (b) who executes a written agreement to remain on active 
duty for two, three, or four years after completion of any other 
active-duty service commitment may, upon acceptance of the written 
agreement by the Secretary of the military department concerned, be 
paid a retention bonus as provided in this section.
    ``(2) The amount of a retention bonus under paragraph (1) may not 
exceed $14,000 for each year covered by a four-year agreement. The 
maximum yearly retention bonus for two-year and three-year agreements 
shall be reduced to reflect the shorter service commitment.
    ``(b) Officers Automatically Eligible.--Subsection (a) applies to 
an officer of the armed forces who--
        ``(1) is an officer of the Dental Corps of the Army or the Navy 
    or an officer of the Air Force designated as a dental officer;
        ``(2) has a dental specialty in oral and maxillofacial surgery;
        ``(3) is in a pay grade below pay grade O-7;
        ``(4) has at least eight years of creditable service (computed 
    as described in section 302b(g) of this title) or has completed any 
    active-duty service commitment incurred for dental education and 
    training; and
        ``(5) has completed initial residency training (or will 
    complete such training before September 30 of the fiscal year in 
    which the officer enters into an agreement under subsection (a)).
    ``(c) Extension of Bonus to Other Dental Officers.--At the 
discretion of the Secretary of the military department concerned, the 
Secretary may enter into a written agreement described in subsection 
(a)(1) with a dental officer who does not have the dental specialty 
specified in subsection (b)(2), and pay a retention bonus to such an 
officer as provided in this section, if the officer otherwise satisfies 
the eligibility requirements specified in subsection (b). The 
Secretaries shall exercise the authority provided in this section in a 
manner consistent with regulations prescribed by the Secretary of 
Defense.
    ``(d) Refunds.--(1) Refunds shall be required, on a pro rata basis, 
of sums paid under this section if the officer who has received the 
payment fails to complete the total period of active duty specified in 
the agreement, as conditions and circumstances warrant.
    ``(2) An obligation to reimburse the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United States.
    ``(3) A discharge in bankruptcy under title 11, United States Code, 
that is entered less than five years after the termination of an 
agreement under this section does not discharge the member signing such 
agreement from a debt arising under such agreement or under paragraph 
(1). This paragraph applies to any case commenced under title 11 after 
the date of the enactment of the National Defense Authorization Act for 
Fiscal Year 1998.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
301d the following new item:
``301e. Multiyear retention bonus: dental officers of the armed 
          forces.''.

SEC. 618. INCREASE IN VARIABLE AND ADDITIONAL SPECIAL PAYS FOR CERTAIN 
              DENTAL OFFICERS.

    (a) Variable Special Pay for Junior Officers.--Paragraph (2) of 
section 302b(a) of title 37, United States Code, is amended by striking 
out subparagraphs (C), (D), (E), and (F) and inserting in lieu thereof 
the following new subparagraphs:
        ``(C) $7,000 per year, if the officer has at least six but less 
    than eight years of creditable service.
        ``(D) $12,000 per year, if the officer has at least eight but 
    less than 12 years of creditable service.
        ``(E) $10,000 per year, if the officer has at least 12 but less 
    than 14 years of creditable service.
        ``(F) $9,000 per year, if the officer has at least 14 but less 
    than 18 years of creditable service.
        ``(G) $8,000 per year, if the officer has 18 or more years of 
    creditable service.''.
    (b) Variable Special Pay for Senior Officers.--Paragraph (3) of 
such section is amended by striking out ``$1,000'' and inserting in 
lieu thereof ``$7,000''.
    (c) Additional Special Pay.--Paragraph (4) of such section is 
amended by striking out subparagraphs (B), (C), and (D) and inserting 
in lieu thereof the following new subparagraphs:
        ``(B) $6,000 per year, if the officer has at least three but 
    less than 10 years of creditable service.
        ``(C) $15,000 per year, if the officer has 10 or more years of 
    creditable service.''.

SEC. 619. AVAILABILITY OF SPECIAL PAY FOR DUTY AT DESIGNATED HARDSHIP 
              DUTY LOCATIONS.

    (a) Special Pay Authorized.--Subsection (a) of section 305 of title 
37, United States Code, is amended to read as follows:
    ``(a) Special Pay Authorized.--A member of a uniformed service who 
is entitled to basic pay may be paid special pay under this section at 
a monthly rate not to exceed $300 while the member is on duty at a 
location in the United States or outside the United States designated 
by the Secretary of Defense as a hardship duty location.''.
    (b) Cross References and Regulations.--Such section is further 
amended--
        (1) in subsection (b)--
            (A) by inserting ``Exception for Certain Members Serving in 
        Certain Locations.--'' after ``(b)''; and
            (B) by striking out ``as foreign duty pay'' and inserting 
        in lieu thereof ``as hardship duty location pay'';
        (2) in subsection (c)--
            (A) by inserting ``Exception for Members Receiving Career 
        Sea Pay.--'' after ``(c)''; and
            (B) by striking out ``special pay under this section'' and 
        inserting in lieu thereof ``hardship duty location pay under 
        subsection (a)''; and
        (3) by adding at the end the following new subsection:
    ``(d) Regulations.--The Secretary of Defense shall prescribe 
regulations for the provision of hardship duty location pay under 
subsection (a), including the specific monthly rates at which the 
special pay will be available.''.
    (c) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:

``Sec. 305. Special pay: hardship duty location pay''.

    (2) The table of sections at the beginning of chapter 5 of title 
37, United States Code, is amended by striking out the item relating to 
section 305 and inserting in lieu thereof the following new item:
``305. Special pay: hardship duty location pay.''.

    (d) Conforming Amendment.--Section 907(d) of title 37, United 
States Code, is amended by striking out ``duty at certain places'' and 
inserting in lieu thereof ``duty at a hardship duty location''.
    (e) Transition.--Until such time as the Secretary of Defense 
prescribes regulations regarding the provision of hardship duty 
location pay under section 305 of title 37, United States Code, as 
amended by this section, the Secretary may continue to use the 
authority provided by such section 305, as in effect on the day before 
the date of the enactment of this Act, to provide special pay to 
enlisted members of the uniformed services on duty at certain places.

SEC. 620. DEFINITION OF SEA DUTY FOR PURPOSES OF CAREER SEA PAY.

    Section 305a(d) of title 37, United States Code, is amended--
        (1) in paragraph (1)(A), by striking out ``, ship-based staff, 
    or ship-based aviation unit'';
        (2) in paragraph (1)(B), by striking out ``or ship-based 
    staff'';
        (3) by redesignating paragraphs (2) and (3) as paragraphs (3) 
    and (4), respectively; and
        (4) by inserting after paragraph (1) the following new 
    paragraph:
    ``(2) The Secretary concerned may designate duty performed by a 
member while serving on a ship the primary mission of which is 
accomplished either while under way or in port as `sea duty' for 
purposes of this section, even though the duty is performed while the 
member is permanently or temporarily assigned to a ship-based staff or 
other unit not covered by paragraph (1).''.

SEC. 621. MODIFICATION OF SELECTED RESERVE REENLISTMENT BONUS.

    (a) Eligible Members.--Subsection (a)(1) of section 308b of title 
37, United States Code, is amended by striking out ``ten years'' and 
inserting in lieu thereof ``14 years''.
    (b) Bonus Amounts; Payment.--Subsection (b) of such section is 
amended to read as follows:
    ``(b) Bonus Amounts; Payment.--(1) The amount of a bonus under this 
section may not exceed--
        ``(A) $5,000, in the case of a member who reenlists or extends 
    an enlistment for a period of six years;
        ``(B) $2,500, in the case of a member who, having never 
    received a bonus under this section, reenlists or extends an 
    enlistment for a period of three years; and
        ``(C) $2,000, in the case of a member who, having received a 
    bonus under this section for a previous three-year reenlistment or 
    extension of an enlistment, reenlists or extends the enlistment for 
    an additional period of three years.
    ``(2) Any bonus payable under this section shall be disbursed in 
one initial payment of an amount not to exceed one-half of the total 
amount of the bonus and subsequent periodic partial payments of the 
balance of the bonus. The Secretary concerned shall prescribe the 
amount of each partial payment and the schedule for making the partial 
payments.''.
    (c) Special Eligibility Requirements; Number of Individual 
Bonuses.--Subsection (c) of such section is amended to read as follows:
    ``(c) Condition on Eligibility; Limitation on Number of Bonuses.--
(1) To be eligible for a second bonus under this section in the amount 
specified in subsection (b)(1)(C), a member must--
        ``(A) enter into the subsequent reenlistment or extension of an 
    enlistment for a period of three years not later than the date on 
    which the enlistment or extension for which the first bonus was 
    paid would expire; and
        ``(B) still satisfy the designated skill or unit requirements 
    required under subsection (a)(2).
    ``(2) A member may not be paid more than one six-year bonus or two 
three-year bonuses under this section.''.
    (d) Effect of Failure To Serve Satisfactorily.--Subsection (d) of 
such section is amended to read as follows:
    ``(d) Repayment of Bonus.--A member who receives a bonus under this 
section and who fails, during the period for which the bonus was paid, 
to serve satisfactorily in the element of the Selected Reserve of the 
Ready Reserve with respect to which the bonus was paid shall refund to 
the United States an amount that bears the same ratio to the amount of 
the bonus paid to the member as the period that the member failed to 
serve satisfactorily bears to the total period for which the bonus was 
paid.''.
    (e) Clerical Amendments.--Such section is further amended--
        (1) in subsection (a), by inserting ``Authority and Eligibility 
    Requirements.--'' after ``(a)'';
        (2) in subsection (e), by inserting ``Regulations.--'' after 
    ``(e)''; and
        (3) in subsection (f), by inserting ``Termination of 
    Authority.--'' after ``(f)''.

SEC. 622. MODIFICATION OF SELECTED RESERVE ENLISTMENT BONUS FOR FORMER 
              ENLISTED MEMBERS.

    (a) Eligible Persons.--Subsection (a)(2) of section 308i of title 
37, United States Code, is amended--
        (1) in subparagraph (A), by striking out ``10 years'' and 
    inserting in lieu thereof ``14 years'';
        (2) in subparagraph (C), by striking out ``and'';
        (3) by redesignating subparagraph (D) as subparagraph (E);
        (4) in subparagraph (E) (as so redesignated), by inserting 
    ``(except under this section)'' after ``bonus''; and
        (5) by inserting after subparagraph (C) the following new 
    subparagraph:
        ``(D) is projected to occupy a position as a member of the 
    Selected Reserve in a specialty in which--
            ``(i) the person successfully served while a member on 
        active duty; and
            ``(ii) the person attained a level of qualification while a 
        member on active duty commensurate with the grade and years of 
        service of the member; and''.
    (b) Bonus Amounts; Payment.--Subsection (b) of such section is 
amended to read as follows:
    ``(b) Bonus Amounts; Payment.--(1) The amount of a bonus under this 
section may not exceed--
        ``(A) $5,000, in the case of a person who enlists for a period 
    of six years;
        ``(B) $2,500, in the case of a person who, having never 
    received a bonus under this section, enlists for a period of three 
    years; and
        ``(C) $2,000, in the case of a person who, having received a 
    bonus under this section for a previous three-year enlistment, 
    reenlists or extends the enlistment for an additional period of 
    three years.
    ``(2) Any bonus payable under this section shall be disbursed in 
one initial payment of an amount not to exceed one-half of the total 
amount of the bonus and subsequent periodic partial payments of the 
balance of the bonus. The Secretary concerned shall prescribe the 
amount of each partial payment and the schedule for making the partial 
payments.''.
    (c) Special Eligibility Requirements; Number of Individual 
Bonuses.--Subsection (c) of such section is amended to read as follows:
    ``(c) Condition on Eligibility; Limitation on Number of Bonuses.--
(1) To be eligible for a second bonus under this section in the amount 
specified in subsection (b)(1)(C), a person must--
        ``(A) enter into a reenlistment or extension of an enlistment 
    for a period of three years not later than the date on which the 
    enlistment for which the first bonus was paid would expire; and
        ``(B) still satisfy the eligibility requirements under 
    subsection (a).
    ``(2) A person may not be paid more than one six-year bonus or two 
three-year bonuses under this section.''.
    (d) Reorganization of Section.--Such section is further amended--
        (1) by redesignating subsections (e), (f), and (g) as 
    paragraphs (2), (3), and (4), respectively, of subsection (d); and
        (2) by redesignating subsections (h) and (i) as subsections (e) 
    and (f), respectively.
    (e) Conforming and Clerical Amendments.--Such section is further 
amended--
        (1) in subsection (a), by inserting ``Authority and Eligibility 
    Requirements.--'' after ``(a)'';
        (2) in subsection (d)--
            (A) by inserting ``Repayment of Bonus.--(1)'' after 
        ``(d)'';
            (B) in paragraphs (2) and (4), as redesignated by 
        subsection (d)(1), by striking out ``subsection (d)'' and 
        inserting in lieu thereof ``paragraph (1)''; and
            (C) in paragraph (3), as redesignated by subsection 
        (d)(1)--
                (i) by striking out ``subsection (h)'' and inserting in 
            lieu thereof ``subsection (e)''; and
                (ii) by striking out ``subsection (d)'' and inserting 
            in lieu thereof ``paragraph (1)'';
        (3) in subsection (e), as redesignated by subsection (d)(2), by 
    inserting ``Regulations.--'' after ``(e)''; and
        (4) in subsection (f), as redesignated by subsection (d)(2), by 
    inserting ``Termination of Authority.--'' after ``(f)''.

SEC. 623. EXPANSION OF RESERVE AFFILIATION BONUS TO INCLUDE COAST GUARD 
              RESERVE.

    Section 308e of title 37, United States Code, is amended--
        (1) in subsection (a), by striking out ``Under regulations 
    prescribed by the Secretary of Defense, the Secretary of a military 
    department'' and inserting in lieu thereof ``The Secretary 
    concerned'';
        (2) in subsection (b)(3), by striking out ``designated by the 
    Secretary of Defense for the purposes of this section'' and 
    inserting in lieu thereof ``designated for purposes of this section 
    in the regulations prescribed under subsection (f)'';
        (3) in subsection (c)(3), by striking out ``regulations 
    prescribed by the Secretary of Defense'' and inserting in lieu 
    thereof ``the regulations prescribed under subsection (f)''; and
        (4) by adding at the end the following new subsections:
    ``(f) This section shall be administered under regulations 
prescribed by the Secretary of Defense for the armed forces under the 
jurisdiction of the Secretary of Defense and by the Secretary of 
Transportation for the Coast Guard when the Coast Guard is not 
operating as a service in the Navy.
    ``(g) The authority in subsection (a) does not apply to the 
Secretary of Commerce and the Secretary of Health and Human 
Services.''.

SEC. 624. INCREASE IN SPECIAL PAY AND BONUSES FOR NUCLEAR-QUALIFIED 
              OFFICERS.

    (a) Special Pay for Officers Extending Period of Active Service.--
Section 312(a) of title 37, United States Code, is amended by striking 
out ``$12,000'' and inserting in lieu thereof ``$15,000''.
    (b) Nuclear Career Accession Bonus.--Section 312b(a)(1) of title 
37, United States Code, is amended by striking out ``$8,000'' and 
inserting in lieu thereof ``$10,000''.
    (c) Nuclear Career Annual Incentive Bonuses.--Section 312c of title 
37, United States Code, is amended--
        (1) in subsection (a)(1), by striking out ``$10,000'' and 
    inserting in lieu thereof ``$12,000''; and
        (2) in subsection (b)(1), by striking out ``$4,500'' and 
    inserting in lieu thereof ``$5,500''.
    (d) Effective Date.--(1) The amendments made by this section shall 
take effect as of October 1, 1997.
    (2) The amendments made by subsections (a) and (b) shall apply with 
respect to agreements accepted under sections 312(a) and 312b(a), 
respectively, of title 37, United States Code, on or after October 1, 
1997.

SEC. 625. PROVISION OF BONUSES IN LIEU OF SPECIAL PAY FOR ENLISTED 
              MEMBERS EXTENDING TOURS OF DUTY AT DESIGNATED LOCATIONS 
              OVERSEAS.

    (a) Inclusion of Bonus Incentive.--(1) Section 314 of title 37, 
United States Code, is amended to read as follows:

``Sec. 314. Special pay or bonus: qualified enlisted members extending 
            duty at designated locations overseas

    ``(a) Covered Members.--This section applies with respect to an 
enlisted member of an armed force who--
        ``(1) is entitled to basic pay;
        ``(2) has a specialty that is designated by the Secretary 
    concerned for the purposes of this section;
        ``(3) has completed a tour of duty (as defined in accordance 
    with regulations prescribed by the Secretary concerned) at a 
    location outside the 48 contiguous States and the District of 
    Columbia that is designated by the Secretary concerned for the 
    purposes of this section; and
        ``(4) at the end of that tour of duty executes an agreement to 
    extend that tour for a period of not less than one year.
    ``(b) Special Pay or Bonus Authorized.--Upon the acceptance by the 
Secretary concerned of the agreement providing for an extension of the 
tour of duty of an enlisted member described in subsection (a), the 
member is entitled, at the election of the Secretary concerned, to 
either--
        ``(1) special pay in monthly installments in an amount 
    prescribed by the Secretary, but not to exceed $80 per month; or
        ``(2) an annual bonus in an amount prescribed by the Secretary, 
    but not to exceed $2,000 per year.
    ``(c) Selection and Payment of Special Pay or Bonus.--Not later 
than the date on which the Secretary concerned accepts an agreement 
described in subsection (a)(4) providing for the extension of a 
member's tour of duty, the Secretary concerned shall notify the member 
regarding whether the member will receive special pay or a bonus under 
this section. The payment rate for the special pay or bonus shall be 
fixed at the time of the agreement and may not be changed during the 
period of the extended tour of duty. The Secretary concerned may pay a 
bonus under this section either in a lump sum or installments.
    ``(d) Repayment of Bonus.--(1) A member who, having entered into a 
written agreement to extend a tour of duty for a period under 
subsection (a), receives a bonus payment under subsection (b)(2) for a 
12-month period covered by the agreement and ceases during that 12-
month period to perform the agreed tour of duty shall refund to the 
United States the unearned portion of the bonus. The unearned portion 
of the bonus is the amount by which the amount of the bonus paid to the 
member exceeds the amount determined by multiplying the amount of the 
bonus paid by the percent determined by dividing 12 into the number of 
full months during which the member performed the duty in the 12-month 
period.
    ``(2) The Secretary concerned may waive the obligation of a member 
to reimburse the United States under paragraph (1) if the Secretary 
determines that conditions and circumstances warrant the waiver.
    ``(3) An obligation to repay the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United States.
    ``(4) A discharge in bankruptcy under title 11 that is entered less 
than five years after the termination of the agreement does not 
discharge the member signing the agreement from a debt arising under 
the agreement or under paragraph (1). This paragraph applies to any 
case commenced under title 11 on or after the date of the enactment of 
the National Defense Authorization Act for Fiscal Year 1998.
    ``(e) Effect of Rest and Recuperative Absence.--A member who elects 
to receive one of the benefits specified in section 705(b) of title 10 
as part of the extension of a tour of duty is not entitled to the 
special pay authorized by subsection (b)(1) for the period of the 
extension of duty for which the benefit under such section is 
provided.''.
    (2) The item relating to section 314 in the table of sections at 
the beginning of chapter 5 of such title is amended to read as follows:
``314. Special pay or bonus: qualified enlisted members extending duty 
          at designated locations overseas.''.

    (b) Application of Amendment.--Section 314 of title 37, United 
States Code, as amended by subsection (a), shall apply with respect to 
an agreement to extend a tour of duty as provided in such section 
executed on or after October 1, 1997.

SEC. 626. INCREASE IN AMOUNT OF FAMILY SEPARATION ALLOWANCE.

    Section 427 of title 37, United States Code (as amended by section 
603), is further amended in subsection (a)(1) by striking out ``$75'' 
and inserting in lieu thereof ``$100''.

SEC. 627. DEADLINE FOR PAYMENT OF READY RESERVE MUSTER DUTY ALLOWANCE.

    Section 433(c) of title 37, United States Code, is amended--
        (1) in the first sentence, by striking out ``and shall be'' and 
    all that follows through ``is performed''; and
        (2) by inserting after the first sentence the following new 
    sentence: ``The allowance may be paid to the member before, on, or 
    after the date on which the muster duty is performed, but not later 
    than 30 days after that date.''.

            Subtitle C--Travel and Transportation Allowances

SEC. 631. TRAVEL AND TRANSPORTATION ALLOWANCES FOR DEPENDENTS BEFORE 
              APPROVAL OF MEMBER'S COURT-MARTIAL SENTENCE.

    Section 406(h)(2)(C) of title 37, United States Code, is amended by 
striking out the comma at the end of clause (iii) and all that follows 
through ``title 10.'' and inserting in lieu thereof a period.

SEC. 632. DISLOCATION ALLOWANCE.

    (a) In General.--Section 407 of title 37, United States Code, is 
amended to read as follows:

``Sec. 407. Travel and transportation allowances: dislocation allowance

    ``(a) Eligibility for Primary Dislocation Allowance.--(1) Under 
regulations prescribed by the Secretary concerned, a member of a 
uniformed service described in paragraph (2) is entitled to a primary 
dislocation allowance at the rate determined under subsection (c) for 
the member's pay grade and dependency status.
    ``(2) A member of the uniformed services referred to in paragraph 
(1) is any of the following:
        ``(A) A member who makes a change of permanent station and the 
    member's dependents actually make an authorized move in connection 
    with the change, including a move by the dependents--
            ``(i) to join the member at the member's duty station after 
        an unaccompanied tour of duty when the member's next tour of 
        duty is an accompanied tour at the same station; and
            ``(ii) to a location designated by the member after an 
        accompanied tour of duty when the member's next tour of duty is 
        an unaccompanied tour at the same duty station.
        ``(B) A member whose dependents actually move pursuant to 
    section 405a(a), 406(e), 406(h), or 554 of this title.
        ``(C) A member whose dependents actually move from their place 
    of residence under circumstances described in section 406a of this 
    title.
        ``(D) A member who is without dependents and--
            ``(i) actually moves to a new permanent station where the 
        member is not assigned to quarters of the United States; or
            ``(ii) actually moves from a place of residence under 
        circumstances described in section 406a of this title.
        ``(E) A member who 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.
    ``(3) If a primary dislocation allowance is paid under this 
subsection to a member described in subparagraph (C) or (D)(ii) of 
paragraph (2), the member is not entitled to another dislocation 
allowance as a member described in subparagraph (A) or (E) of such 
paragraph in connection with the same move.
    ``(b) Secondary Allowance Authorized Under Certain Circumstances.--
(1) Under regulations prescribed by the Secretary concerned, whenever a 
member is entitled to a primary dislocation allowance under subsection 
(a) as a member described in paragraph (2)(C) or (2)(D)(ii) of such 
subsection, the member is also entitled to a secondary dislocation 
allowance at the rate determined under subsection (c) for the member's 
pay grade and dependency status if, subsequent to the member or the 
member's dependents actually moving from their place of residence under 
circumstances described in section 406a of this title, the member or 
member's dependents complete that move to a new location and then 
actually move from that new location to another location also under 
circumstances described in section 406a of this title.
    ``(2) If a secondary dislocation allowance is paid under this 
subsection, the member is not entitled to a dislocation allowance as a 
member described in paragraph (2)(A) or (2)(E) of subsection (a) in 
connection with those moves.
    ``(c) Dislocation Allowance Rates.--(1) The amount of the 
dislocation allowance to be paid under this section to a member shall 
be based on the member's pay grade and dependency status at the time 
the member becomes entitled to the allowance.
    ``(2) The initial rate for the dislocation allowance, for each pay 
grade and dependency status, shall be equal to the rate in effect for 
that pay grade and dependency status on December 31, 1997, as adjusted 
by the average percentage increase in the rates of basic pay for 
calendar year 1998. Effective on the same date that the monthly rates 
of basic pay for members are increased for a subsequent calendar year, 
the Secretary of Defense shall adjust the rates for the dislocation 
allowance for that calendar year by the percentage equal to the average 
percentage increase in the rates of basic pay for that calendar year.
    ``(d) Fiscal Year Limitation; Exceptions.--(1) A member is not 
entitled to more than one dislocation allowance under this section 
during a fiscal year unless--
        ``(A) the Secretary concerned finds that the exigencies of the 
    service require the member to make more than one change of 
    permanent station during the fiscal year;
        ``(B) the member is ordered to a service school as a change of 
    permanent station;
        ``(C) the member's dependents are covered by section 405a(a), 
    406(e), 406(h), or 554 of this title; or
        ``(D) subparagraph (C) or (D)(ii) of subsection (a)(2) or 
    subsection (b) apply with respect to the member or the member's 
    dependents.
    ``(2) This subsection does not apply in time of national emergency 
or in time of war.
    ``(e) First or Last Duty.--A member is not entitled to payment of a 
dislocation allowance under this section when the member is ordered 
from the member's home to the member's first duty station or from the 
member's last duty station to the member's home.
    ``(f) Rule of Construction.--For purposes of this section, a member 
whose dependents may not make an authorized move in connection with a 
change of permanent station is considered a member without dependents.
    ``(g) Advance Payment.--A dislocation allowance payable under this 
section may be paid in advance.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on January 1, 1998.

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

SEC. 641. ONE-YEAR OPPORTUNITY TO DISCONTINUE PARTICIPATION IN SURVIVOR 
              BENEFIT PLAN.

    (a) Election To Discontinue Within One Year After Second 
Anniversary of Commencement of Payment of Retired Pay.--(1) Subchapter 
II of chapter 73 of title 10, United States Code, is amended by 
inserting after section 1448 the following new section:

``Sec. 1448a. Election to discontinue participation: one-year 
            opportunity after second anniversary of commencement of 
            payment of retired pay

    ``(a) Authority.--A participant in the Plan may, subject to the 
provisions of this section, elect to discontinue participation in the 
Plan at any time during the one-year period beginning on the second 
anniversary of the date on which payment of retired pay to the 
participant commences.
    ``(b) Concurrence of Spouse.--
        ``(1) Concurrence required.--A married participant may not 
    (except as provided in paragraph (2)) make an election under 
    subsection (a) without the concurrence of the participant's spouse.
        ``(2) Exceptions.--A participant may make such an election 
    without the concurrence of the participant's spouse by establishing 
    to the satisfaction of the Secretary concerned that one of the 
    conditions specified in section 1448(a)(3)(C) of this title exists.
        ``(3) Form of concurrence.--The concurrence of a spouse under 
    paragraph (1) shall be made in such written form and shall contain 
    such information as may be required under regulations prescribed by 
    the Secretary of Defense.
    ``(c) Limitation on Election When Former Spouse Coverage in 
Effect.--The limitation set forth in section 1450(f)(2) of this title 
applies to an election to discontinue participation in the Plan under 
subsection (a).
    ``(d) Withdrawal of Election To Discontinue.--Section 1448(b)(1)(D) 
of this title applies to an election under subsection (a).
    ``(e) Consequences of Discontinuation.--Section 1448(b)(1)(E) of 
this title applies to an election under subsection (a).
    ``(f) Notice to Affected Beneficiaries.--The Secretary concerned 
shall notify any former spouse or other natural person previously 
designated under section 1448(b) of this title of an election to 
discontinue participation under subsection (a).
    ``(g) Effective Date of Election.--An election under subsection (a) 
is effective as of the first day of the first calendar month following 
the month in which the election is received by the Secretary concerned.
    ``(h) Inapplicability of Irrevocability Provisions.--Paragraphs 
(4)(B) and (5)(C) of section 1448(a) of this title do not apply to 
prevent an election under subsection (a).''.
    (2) The table of sections at the beginning of such subchapter is 
amended by inserting after the item relating to section 1448 the 
following new item:
``1448a. Election to discontinue participation: one-year opportunity 
          after second anniversary of commencement of payment of retired 
          pay.''.

    (b) Transition Provision for Current Participants.--Notwithstanding 
the limitation on the time for making an election under section 1448a 
of title 10, United States Code (as added by subsection (a)), that is 
specified in subsection (a) of such section, a participant in the 
Survivor Benefit Plan under subchapter II of chapter 73 of such title 
may make an election in accordance with that section within one year 
after the effective date of that section under subsection (c) if the 
second anniversary of the commencement of payment of retired pay to the 
participant precedes that effective date.
    (c) Effective Date.--Section 1448a of title 10, United States Code, 
as added by subsection (a), shall take effect 180 days after the date 
of the enactment of this Act.

SEC. 642. TIME IN WHICH CHANGE IN SURVIVOR BENEFIT COVERAGE FROM FORMER 
              SPOUSE TO SPOUSE MAY BE MADE.

    (a) Extension of Time for Change.--Section 1450(f)(1)(C) of title 
10, United States Code, is amended by adding at the end the following 
new sentence: ``Notwithstanding the preceding sentence, a change of 
election under this subsection to provide an annuity to a spouse 
instead of a former spouse may (subject to paragraph (2)) be made at 
any time after the person providing the annuity remarries without 
regard to the time limitation in section 1448(a)(5)(B) of this 
title.''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply with respect to marriages occurring before, on, or after the date 
of the enactment of this Act.

SEC. 643. REVIEW OF FEDERAL FORMER SPOUSE PROTECTION LAWS.

    (a) Review Required.--The Secretary of Defense shall carry out a 
comprehensive review (including a comparison) of--
        (1) the protections, benefits, and treatment afforded under 
    Federal law to members and former members of the uniformed services 
    and former spouses of such persons; and
        (2) the protections, benefits, and treatment afforded under 
    Federal law to employees and former employees of the Government and 
    former spouses of such persons.
    (b) Military Personnel Matters To Be Reviewed.--In the case of 
members and former members of the uniformed services and former spouses 
of such persons, the review under subsection (a) shall include the 
following:
        (1) All provisions of law (principally those originally enacted 
    in the Uniformed Services Former Spouses' Protection Act (title X 
    of Public Law 97-252)) that--
            (A) establish, provide for the enforcement of, or otherwise 
        protect interests of members and former members of the 
        uniformed services and former spouses of such persons in 
        retired or retainer pay of members and former members; or
            (B) provide other benefits for members and former members 
        of the uniformed services and former spouses of such persons.
        (2) The experience of the uniformed services in administering 
    those provisions of law, including the adequacy and effectiveness 
    of the legal assistance provided by the Department of Defense in 
    matters related to the Uniformed Services Former Spouses' 
    Protection Act.
        (3) The experience of members and former members of the 
    uniformed services and former spouses of such persons in the 
    administration of those provisions of law.
        (4) The experience of members and former members of the 
    uniformed services and former spouses of such persons in the 
    application of those provisions of law by State courts.
        (5) The history of State statutes and State court 
    interpretations of the Uniformed Services Former Spouses' 
    Protection Act and other provisions of Federal law described in 
    paragraph (1)(A) and the extent to which those interpretations 
    follow those laws.
    (c) Civilian Personnel Matters To Be Reviewed.--In the case of 
former spouses of employees and former employees of the Government, the 
review under subsection (a) shall include the following:
        (1) All provisions of law that--
            (A) establish, provide for the enforcement of, or otherwise 
        protect interests of employees and former employees of the 
        Government and former spouses of such persons in annuities of 
        employees and former employees under Federal employees' 
        retirement systems; or
            (B) provide other benefits for employees and former 
        employees of the Government and former spouses of such persons.
        (2) The experience of the Office of Personnel Management and 
    other agencies of the Government in administering those provisions 
    of law.
        (3) The experience of employees and former employees of the 
    Government and former spouses of such persons in the administration 
    of those provisions of law.
        (4) The experience of employees and former employees of the 
    Government and former spouses of such persons in the application of 
    those provisions of law by State courts.
    (d) Sampling Authorized.--The Secretary may use sampling in 
carrying out the review under this section.
    (e) Report.--Not later than September 30, 1999, 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 review under subsection (a). The report shall 
include any recommendations for legislation that the Secretary 
considers appropriate.

SEC. 644. ANNUITIES FOR CERTAIN MILITARY SURVIVING SPOUSES.

    (a) Survivor Annuity.--(1) The Secretary concerned shall pay an 
annuity to the qualified surviving spouse of each member of the 
uniformed services 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 of the Armed Forces 
    during the period beginning on September 21, 1972, and ending on 
    October 1, 1978, and at the time of his death would have been 
    entitled to retired pay under chapter 67 of title 10, United States 
    Code (as in effect before December 1, 1994), but for the fact that 
    he was under 60 years of age.
    (2) A qualified surviving spouse for purposes of this section 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) Amount of Annuity.--(1) An annuity under this section shall be 
paid at the rate of $165 per month, as adjusted from time to time under 
paragraph (3).
    (2) An annuity paid to a surviving spouse under this section shall 
be reduced by the amount of any dependency and indemnity compensation 
(DIC) to which the surviving spouse is entitled under section 1311(a) 
of title 38, United States Code.
    (3) Whenever after the date of the enactment of this Act retired or 
retainer pay is increased under section 1401a(b)(2) of title 10, United 
States Code, each annuity that is payable under this section shall be 
increased at the same time and by the same total percent. The amount of 
the increase shall be based on the amount of the monthly annuity 
payable before any reduction under this section.
    (c) Application Required.--No benefit shall be paid to any person 
under this section unless an application for such benefit is filed with 
the Secretary concerned by or on behalf of such person.
    (d) Definitions.--For purposes of this section:
        (1) The terms ``uniformed services'' and ``Secretary 
    concerned'' have the meanings given such terms in section 101 of 
    title 37, United States Code.
        (2) The term ``surviving spouse'' has the meaning given the 
    terms ``widow'' and ``widower'' in paragraphs (3) and (4) of 
    section 1447 of title 10, United States Code.
    (e) Prospective Applicability.--(1) Annuities under this section 
shall be paid for months beginning after the month in which this Act is 
enacted.
    (2) No benefit shall accrue to any person by reason of the 
enactment of this section for any period before the first month that 
begins after the month in which this Act is enacted.
    (f) Expiration of Authority.--The authority to pay annuities under 
this section shall expire on September 30, 2001.

SEC. 645. ADMINISTRATION OF BENEFITS FOR SO-CALLED MINIMUM INCOME 
              WIDOWS.

    (a) Payments To Be Made by Secretary of Veterans Affairs.--Section 
653(d) of the National Defense Authorization Act, Fiscal Year 1989 (10 
U.S.C. 1448 note) is amended--
        (1) by inserting ``(1)'' before ``An annuity'' the first place 
    it appears; and
        (2) by adding at the end the following new paragraph:
    ``(2) Payment of annuities under this section shall be made by the 
Secretary of Veterans Affairs. In making such payments, the Secretary 
shall combine the payment under this section with the payment of any 
amount due the same person under section 4 of Public Law 92-425 (10 
U.S.C. 1448 note), as provided in subsection (e)(1) of that section. 
The Secretary concerned shall transfer amounts for payments under this 
section to the Secretary of Veterans Affairs in the same manner as is 
provided under subsection (e)(2) of section 4 of Public Law 92-425 for 
payments under that section.''.
    (b) Combination With Other Benefits.--Section 4(e)(1) of Public Law 
92-425 (10 U.S.C. 1448 note) is amended--
        (1) by inserting after the first sentence the following new 
    sentence: ``In making such payments, the Secretary shall combine 
    with the payment under this section payment of any amount due the 
    same person under section 653(d) of the National Defense 
    Authorization Act, Fiscal Year 1989 (10 U.S.C. 1448 note).''; and
        (2) by inserting ``(and, if applicable, under section 653(d) of 
    the National Defense Authorization Act, Fiscal Year 1989)'' after 
    ``under this section''.
    (c) Effective Date.--The amendments made by this section take 
effect on the first day of the first month beginning after the date of 
the enactment of this Act and shall apply with respect to payments of 
benefits for months beginning on or after that date, except that the 
Secretary of Veterans Affairs may provide, if necessary for 
administrative implementation, that such amendments shall apply 
beginning with a later month, not later than the first month beginning 
more than 180 days after the date of the enactment of this Act.

                       Subtitle E--Other Matters

SEC. 651. LOAN REPAYMENT PROGRAM FOR COMMISSIONED OFFICERS IN CERTAIN 
              HEALTH PROFESSIONS.

    (a) In General.--Chapter 109 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 2173. Education loan repayment program: commissioned officers in 
            specified health professions

    ``(a) Authority To Repay Education Loans.--For the purpose of 
maintaining adequate numbers of commissioned officers of the armed 
forces on active duty who are qualified in the various health 
professions, the Secretary of a military department may repay, in the 
case of a person described in subsection (b), a loan that--
        ``(1) was used by the person to finance education regarding a 
    health profession; and
        ``(2) was obtained from a governmental entity, private 
    financial institution, school, or other authorized entity.
    ``(b) Eligible Persons.--To be eligible to obtain a loan repayment 
under this section, a person must--
        ``(1) satisfy one of the requirements specified in subsection 
    (c);
        ``(2) be fully qualified for, or hold, an appointment as a 
    commissioned officer in one of the health professions; and
        ``(3) sign a written agreement to serve on active duty, or, if 
    on active duty, to remain on active duty for a period in addition 
    to any other incurred active duty obligation.
    ``(c) Academic and Professional Requirements.--One of the following 
academic requirements must be satisfied for purposes of determining the 
eligibility of a person for a loan repayment under this section:
        ``(1) The person is fully qualified in a health care profession 
    that the Secretary of the military department concerned has 
    determined to be necessary to meet identified skill shortages.
        ``(2) The person is enrolled as a full-time student in the 
    final year of a course of study at an accredited educational 
    institution leading to a degree in a health profession other than 
    medicine or osteopathic medicine.
        ``(3) The person is enrolled in the final year of an approved 
    graduate program leading to specialty qualification in medicine, 
    dentistry, osteopathic medicine, or other health profession.
    ``(d) Certain Persons Ineligible.--Participants of the Armed Forces 
Health Professions Scholarship and Financial Assistance program under 
subchapter I of chapter 105 of this title and students of the Uniformed 
Services University of the Health Sciences established under section 
2112 of this title are not eligible for the repayment of an education 
loan under this section.
    ``(e) Loan Repayments.--(1) Subject to the limits established by 
paragraph (2), a loan repayment under this section may consist of 
payment of the principal, interest, and related expenses of a loan 
obtained by a person described in subsection (b) for--
        ``(A) all educational expenses, comparable to all educational 
    expenses recognized under section 2127(a) of this title for 
    participants in the Armed Forces Health Professions Scholarship and 
    Financial Assistance program; and
        ``(B) reasonable living expenses, not to exceed expenses 
    comparable to the stipend paid under section 2121(d) of this title 
    for participants in the Armed Forces Health Professions Scholarship 
    and Financial Assistance program.
    ``(2) For each year of obligated service that a person agrees to 
serve in an agreement described in subsection (b)(3), the Secretary of 
the military department concerned may pay not more than $22,000 on 
behalf of the person. This maximum amount shall be increased annually 
by the Secretary of Defense effective October 1 of each year by the 
percentage equal to the percent increase in the average annual cost of 
educational expenses and stipend costs of a single scholarship under 
the Armed Forces Health Professions Scholarship and Financial 
Assistance program. The total amount that may be repaid on behalf of 
any person may not exceed an amount determined on the basis of a four-
year active duty service obligation.
    ``(f) Active Duty Service Obligation.--(1) A person entering into 
an agreement described in subsection (b)(3) incurs an active duty 
service obligation. The length of this obligation shall be determined 
under regulations prescribed by the Secretary of Defense, but those 
regulations may not provide for a period of obligation of less than one 
year for each maximum annual amount, or portion thereof, paid on behalf 
of the person for qualified loans.
    ``(2) For persons on active duty before entering into the 
agreement, the active duty service obligation shall be served 
consecutively to any other obligation incurred under the agreement.
    ``(g) Effect of Failure To Complete Obligation.--A commissioned 
officer who is relieved of the officer's active duty obligation under 
this section before the completion of that obligation may be given, 
with or without the consent of the officer, any alternative obligation 
comparable to any of the alternative obligations authorized by section 
2123(e) of this title for participants in the Armed Forces Health 
Professions Scholarship and Financial Assistance program.
    ``(h) Regulations.--The Secretary of Defense shall prescribe 
regulations to carry out this section, including standards for 
qualified loans and authorized payees and other terms and conditions 
for the making of loan repayments.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:
``2173. Education loan repayment program: commissioned officers in 
          specified health professions.''.

SEC. 652. CONFORMANCE OF NOAA COMMISSIONED OFFICERS SEPARATION PAY TO 
              SEPARATION PAY FOR MEMBERS OF OTHER UNIFORMED SERVICES.

    (a) Elimination of Limitations on Amount of Separation Pay.--
Section 9 of the Coast and Geodetic Survey Commissioned Officers' Act 
of 1948 (33 U.S.C. 853h) is amended--
        (1) in subsection (b)(1), by striking out ``, or $30,000, 
    whichever is less'';
        (2) in subsection (b)(2), by striking out ``, but in no event 
    more than $15,000''; and
        (3) in subsection (d), by striking out ``(1)'', and by striking 
    out paragraph (2).
    (b) Waiver of Recoupment of Amounts Withheld for Tax Purposes From 
Certain Separation Pay.--Section 9(e)(2) of the Coast and Geodetic 
Survey Commissioned Officers' Act of 1948 (33 U.S.C. 853h(e)(2)) is 
amended in the first sentence by inserting before the period at the end 
the following: ``, less the amount of Federal income tax withheld from 
such pay (such withholding being at the flat withholding rate for 
Federal income tax withholding, as in effect pursuant to regulations 
prescribed under chapter 24 of the Internal Revenue Code of 1986)''.
    (c) Effective Date and Application.--The amendments made by this 
section shall take effect as of October 1, 1997, and shall apply to 
payments of separation pay that are made after September 30, 1997.

SEC. 653. ELIGIBILITY OF PUBLIC HEALTH SERVICE OFFICERS AND NOAA 
              COMMISSIONED CORPS OFFICERS FOR REIMBURSEMENT OF ADOPTION 
              EXPENSES.

    (a) Public Health Service.--Section 221(a) of the Public Health 
Service Act (42 U.S.C. 213a(a)) is amended by adding at the end the 
following new paragraph:
        ``(16) Section 1052, Reimbursement for adoption expenses.''.
    (b) National Oceanic and Atmospheric Administration.--Section 3(a) 
of the Act of August 10, 1956 (33 U.S.C. 857a(a)), is amended by adding 
at the end the following new paragraph:
        ``(16) Section 1052, Reimbursement for adoption expenses.''.
    (c) Prospective Applicability.--The amendments made by this section 
shall apply only to adoptions that are completed on or after the date 
of the enactment of this Act.

SEC. 654. 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 within the territory of the Philippines by 
    Japanese forces;
        (2) escaped from captivity; and
        (3) 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 (3) of subsection (b) and which was not paid to 
that individual. For the purposes of this subsection, the Secretary of 
War shall be deemed to have determined that conditions in the 
Philippines during the specified period justified payment under 
applicable regulations of quarters and subsistence allowances at the 
maximum special rate for duty where emergency conditions existed. 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. 655. SUBSISTENCE OF MEMBERS OF THE ARMED FORCES ABOVE THE POVERTY 
              LEVEL.

    (a) Study and Report.--(1) The Secretary of Defense shall conduct a 
study of members of the Armed Forces and their families who subsist at, 
near, or below the poverty level. The study shall include the 
following:
        (A) An analysis of potential solutions for ensuring that 
    members of the Armed Forces and their families do not have to 
    subsist at, near, or below the poverty level, including potential 
    solutions involving changes in the system of allowances for 
    members.
        (B) Identification of the military populations most likely to 
    need income support under Federal Government programs, including--
            (i) the populations living in areas of the United States 
        where housing costs are notably high;
            (ii) the populations living outside the United States; and
            (iii) the number of persons in each identified population.
        (C) The desirability of increasing rates of basic pay and 
    allowances for members over a defined period of years by a range of 
    percentages that provides for higher percentage increases for lower 
    ranking members than for higher ranking members.
    (2) Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Defense shall submit to Congress a report 
containing the results of the study and such recommendations as the 
Secretary considers to be appropriate.
    (b) Implementation of Department of Defense Special Supplemental 
Food Program for Personnel Outside the United States.--(1) Subsection 
(b) of section 1060a of title 10, United States Code, is amended to 
read as follows:
    ``(b) Federal Payments and Commodities.--For the purpose of 
obtaining Federal payments and commodities in order to carry out the 
program referred to in subsection (a), the Secretary of Agriculture 
shall make available to the Secretary of Defense the same payments and 
commodities as are made for the special supplemental food program in 
the United States under section 17 of the Child Nutrition Act of 1966 
(42 U.S.C. 1786). The Secretary of Defense may use funds available for 
the Department of Defense to carry out the program under subsection 
(a).''.
    (2) Not later than 90 days after the date of the enactment of this 
Act, the Secretary of Defense shall submit to Congress a report 
regarding the intentions of the Secretary regarding implementation of 
the program authorized under section 1060a of title 10, United States 
Code, including any plans to implement the program.

                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Expansion of retiree dental insurance plan to include 
          surviving spouse and child dependents of certain deceased 
          members.
Sec. 702. Provision of prosthetic devices to covered beneficiaries.
Sec. 703. Study concerning the provision of comparative information.

                       Subtitle B--TRICARE Program

Sec. 711. Addition of definition of TRICARE program to title 10.
Sec. 712. Plan for expansion of managed care option of TRICARE program.

           Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Implementation of designated provider agreements for Uniformed 
          Services Treatment Facilities.
Sec. 722. Continued acquisition of reduced-cost drugs.
Sec. 723. Limitation on total payments.

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

Sec. 731. Improvements in health care coverage and access for members 
          assigned to certain duty locations far from sources of care.
Sec. 732. Waiver or reduction of copayments under overseas dental 
          program.
Sec. 733. Premium collection requirements for medical and dental 
          insurance programs; extension of deadline for implementation 
          of dental insurance program for military retirees.
Sec. 734. Dental insurance plan coverage for retirees of the Public 
          Health Service and NOAA.
Sec. 735. Consistency between CHAMPUS and Medicare in payment rates for 
          services.
Sec. 736. Use of personal services contracts for provision of health 
          care services and legal protection for providers.
Sec. 737. Portability of State licenses for Department of Defense health 
          care professionals.
Sec. 738. Standard form and requirements regarding claims for payment 
          for services.
Sec. 739. Chiropractic health care demonstration program.

                        Subtitle E--Other Matters

Sec. 741. Continued admission of civilians as students in physician 
          assistant training program of Army Medical Department.
Sec. 742. Payment for emergency health care overseas for military and 
          civilian personnel of the On-Site Inspection Agency.
Sec. 743. Authority for agreement for use of medical resource facility, 
          Alamogordo, New Mexico.
Sec. 744. Disclosures of cautionary information on prescription 
          medications.
Sec. 745. Competitive procurement of certain ophthalmic services.
Sec. 746. Comptroller General study of adequacy and effect of maximum 
          allowable charges for physicians under CHAMPUS.
Sec. 747. Comptroller General study of Department of Defense pharmacy 
          programs.
Sec. 748. Comptroller General study of Navy graduate medical education 
          program.
Sec. 749. Study of expansion of pharmaceuticals by mail program to 
          include additional Medicare-eligible covered beneficiaries.
Sec. 750. Comptroller General study of requirement for military medical 
          facilities in National Capital Region.
Sec. 751. Report on policies and programs to promote healthy lifestyles 
          for members of the Armed Forces and their dependents.
Sec. 752. Sense of Congress regarding quality health care for retirees.

                    Subtitle F--Persian Gulf Illness

Sec. 761. Definitions.
Sec. 762. Plan for health care services for Persian Gulf veterans.
Sec. 763. Comptroller General study of revised disability criteria for 
          physical evaluation boards.
Sec. 764. Medical care for certain reserves who served in Southwest Asia 
          during the Persian Gulf War.
Sec. 765. Improved medical tracking system for members deployed overseas 
          in contingency or combat operations.
Sec. 766. Notice of use of investigational new drugs or drugs unapproved 
          for their applied use.
Sec. 767. Report on plans to track location of members in a theater of 
          operations.
Sec. 768. Sense of Congress regarding the deployment of specialized 
          units for detecting and monitoring chemical, biological, and 
          similar hazards in a theater of operations.
Sec. 769. Report on effectiveness of research efforts regarding Gulf War 
          illnesses.
Sec. 770. Persian Gulf illness clinical trials program.
Sec. 771. Sense of Congress concerning Gulf War illness.

                    Subtitle A--Health Care Services

SEC. 701. EXPANSION OF RETIREE DENTAL INSURANCE PLAN TO INCLUDE 
              SURVIVING SPOUSE AND CHILD DEPENDENTS OF CERTAIN DECEASED 
              MEMBERS.

    Section 1076c(b)(4) of title 10, United States Code, is amended--
        (1) in subparagraph (A)--
            (A) by striking out ``dies'' and inserting in lieu thereof 
        ``died''; and
            (B) by striking out ``or'' at the end of the subparagraph;
        (2) by striking out the period at the end of subparagraph (B) 
    and inserting in lieu thereof ``; or''; and
        (3) by adding at the end the following new subparagraph:
            ``(C) who died while on active duty for a period of more 
        than 30 days and whose eligible dependents are not eligible, or 
        no longer eligible, for dental benefits under section 1076a of 
        this title pursuant to subsection (i)(2) of such section.''.

SEC. 702. PROVISION OF PROSTHETIC DEVICES TO COVERED BENEFICIARIES.

    (a) Inclusion Among Authorized Care.--Subsection (a) of section 
1077 of title 10, United States Code, is amended by adding at the end 
the following new paragraph:
        ``(15) Prosthetic devices, as determined by the Secretary of 
    Defense to be necessary because of significant conditions resulting 
    from trauma, congenital anomalies, or disease.''.
    (b) Conforming Amendment.--Subsection (b) of such section is 
amended by striking out paragraph (2) and inserting in lieu thereof the 
following new paragraph:
        ``(2) Hearing aids, orthopedic footwear, and spectacles, except 
    that, outside of the United States and at stations inside the 
    United States where adequate civilian facilities are unavailable, 
    such items may be sold to dependents at cost to the United 
    States.''.

SEC. 703. STUDY CONCERNING THE PROVISION OF COMPARATIVE INFORMATION.

    (a) Study.--The Secretary of Defense shall conduct a study 
concerning the provision of the information described in subsection (b) 
to beneficiaries under the TRICARE program established under the 
authority of chapter 55 of title 10, United States Code, and prepare 
and submit to Congress a report concerning such study.
    (b) Provision of Comparative Information.--Information described in 
this subsection, with respect to a managed care entity that contracts 
with the Secretary of Defense to provide medical assistance under the 
program described in subsection (a), shall include the following:
        (1) The benefits covered by the entity involved, including--
            (A) covered items and services beyond those provided under 
        a traditional fee-for-service program;
            (B) any beneficiary cost sharing; and
            (C) any maximum limitations on out-of-pocket expenses.
        (2) The net monthly premium, if any, under the entity.
        (3) The service area of the entity.
        (4) To the extent available, quality and performance indicators 
    for the benefits under the entity (and how they compare to such 
    indicators under the traditional fee-for-service programs in the 
    area involved), including--
            (A) disenrollment rates for enrollees electing to receive 
        benefits through the entity for the previous two years 
        (excluding disenrollment due to death or moving outside the 
        service area of the entity);
            (B) information on enrollee satisfaction;
            (C) information on health process and outcomes;
            (D) grievance procedures;
            (E) the extent to which an enrollee may select the health 
        care provider of their choice, including health care providers 
        within the network of the entity and out-of-network health care 
        providers (if the entity covers out-of-network items and 
        services); and
            (F) an indication of enrollee exposure to balance billing 
        and the restrictions on coverage of items and services provided 
        to such enrollee by an out-of-network health care provider.
        (5) Whether the entity offers optional supplemental benefits 
    and the terms and conditions (including premiums) for such 
    coverage.
        (6) An overall summary description as to the method of 
    compensation of participating physicians.

                      Subtitle B--TRICARE Program

SEC. 711. ADDITION OF DEFINITION OF TRICARE PROGRAM TO TITLE 10.

    Section 1072 of title 10, United States Code, is amended by adding 
at the end the following new paragraph:
        ``(7) The term `TRICARE program' means the managed health care 
    program that is established by the Department of Defense under the 
    authority of this chapter, principally section 1097 of this 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. PLAN FOR EXPANSION OF MANAGED CARE OPTION OF TRICARE PROGRAM.

    (a) Plan For Expansion of TRICARE Prime.--The Secretary of Defense 
shall prepare a plan for the expansion of the managed care option of 
the TRICARE Program, known as TRICARE Prime, into areas of the United 
States located outside of the catchment areas of medical treatment 
facilities of the uniformed services, but in which the managed care 
option is a cost-effective alternative because of--
        (1) the significant number of members of the uniformed services 
    and covered beneficiaries under chapter 55 of title 10, United 
    States Code (including retired members of the Armed Forces and 
    their dependents), who reside in the areas; and
        (2) the presence in the areas of sufficient nonmilitary health 
    care provider networks.
    (b) Alternatives.--As an alternative to expansion of TRICARE Prime 
to areas of the United States in which there are few or no nonmilitary 
health care provider networks, the Secretary shall include in the plan 
required under subsection (a) an evaluation of the feasibility and 
cost-effectiveness of providing a member of the Armed Forces on active 
duty who is stationed in such an area, or whose dependents reside in 
such an area, with one or both of the following:
        (1) A monetary stipend to assist the member in obtaining health 
    care services for the member or the member's dependents.
        (2) A reduction in the cost-sharing requirements applicable to 
    the TRICARE program options otherwise available to the member to 
    match the reduced cost-sharing responsibilities of the managed care 
    option of the TRICARE program.
    (c) Submission of Plan.--Not later than March 1, 1998, the 
Secretary shall submit to Congress the plan required under subsection 
(a).

          Subtitle C--Uniformed Services Treatment Facilities

SEC. 721. IMPLEMENTATION OF DESIGNATED PROVIDER AGREEMENTS FOR 
              UNIFORMED SERVICES TREATMENT FACILITIES.

    (a) Commencement of Health Care Services Under Agreement.--
Subsection (c) of section 722 of the National Defense Authorization Act 
for Fiscal Year 1997 (Public Law 104-201, 10 U.S.C. 1073 note) is 
amended--
        (1) by redesignating paragraphs (1) and (2) as subparagraphs 
    (A) and (B);
        (2) by inserting ``(1)'' before ``Unless''; and
        (3) by adding at the end the following new paragraph:
    ``(2) The Secretary may modify the effective date established under 
paragraph (1) for an agreement to permit a transition period of not 
more than six months between the date on which the agreement is 
executed by the parties and the date on which the designated provider 
commences the delivery of health care services under the agreement.''.
    (b) Temporary Continuation of Existing Participation Agreements.--
Subsection (d) of such section is amended by inserting before the 
period at the end the following: ``, including any transitional period 
provided by the Secretary under paragraph (2) of such subsection''.

SEC. 722. CONTINUED ACQUISITION OF REDUCED-COST DRUGS.

    Section 722 of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 10 U.S.C. 1073 note) is amended by 
adding at the end the following new subsection:
    ``(g) Continued Acquisition of Reduced-Cost Drugs.--A designated 
provider shall be treated as part of the Department of Defense for 
purposes of section 8126 of title 38, United States Code, in connection 
with the provision by the designated provider of health care services 
to covered beneficiaries pursuant to the participation agreement of the 
designated provider under section 718(c) of the National Defense 
Authorization Act for Fiscal Year 1991 (Public Law 101-510; 42 U.S.C. 
248c note) or pursuant to the agreement entered into under subsection 
(b).''.

SEC. 723. LIMITATION ON TOTAL PAYMENTS.

    Section 726(b) of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 10 U.S.C. 1073 note) is amended by 
adding at the end the following new sentence: ``In establishing the 
ceiling rate for enrollees with the designated providers who are also 
eligible for the Civilian Health and Medical Program of the Uniformed 
Services, the Secretary of Defense shall take into account the health 
status of the enrollees.''.

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

SEC. 731. IMPROVEMENTS IN HEALTH CARE COVERAGE AND ACCESS FOR MEMBERS 
              ASSIGNED TO CERTAIN DUTY LOCATIONS FAR FROM SOURCES OF 
              CARE.

    (a) Supplemental Care Program.--(1) Section 1074(c) of title 10, 
United States Code, is amended--
        (A) by inserting ``(1)'' after ``(c)''; and
        (B) by adding at the end the following new paragraphs:
    ``(2)(A) Subject to such exceptions as the Secretary of Defense 
considers necessary, coverage for medical care for members of the armed 
forces under this subsection, and standards with respect to timely 
access to such care, shall be comparable to coverage for medical care 
and standards for timely access to such care under the managed care 
option of the TRICARE program known as TRICARE Prime.
    ``(B) The Secretary of Defense shall enter into arrangements with 
contractors under the TRICARE program or with other appropriate 
contractors for the timely and efficient processing of claims under 
this subsection.
    ``(3)(A) The Secretary of Defense may not require a member of the 
armed forces described in subparagraph (B) to receive routine primary 
medical care at a military medical treatment facility.
    ``(B) A member referred to in subparagraph (A) is a member of the 
armed forces on active duty who is entitled to medical care under this 
subsection and who--
        ``(i) receives a duty assignment described in subparagraph (C); 
    and
        ``(ii) pursuant to the assignment of such duty, resides at a 
    location that is more than 50 miles, or approximately one hour of 
    driving time, from the nearest military medical treatment facility 
    adequate to provide the needed care.
    ``(C) A duty assignment referred to in subparagraph (B) means any 
of the following:
        ``(i) Permanent duty as a recruiter.
        ``(ii) Permanent duty at an educational institution to 
    instruct, administer a program of instruction, or provide 
    administrative services in support of a program of instruction for 
    the Reserve Officers' Training Corps.
        ``(iii) Permanent duty as a full-time adviser to a unit of a 
    reserve component.
        ``(iv) Any other permanent duty designated by the Secretary 
    concerned for purposes of this paragraph.''.
    (2) The amendments made by paragraph (1) shall apply with respect 
to coverage of medical care for, and the provision of such care to, a 
member of the Armed Forces under section 1074(c) of title 10, United 
States Code, on and after the later of the following:
        (A) April 1, 1998.
        (B) The date on which the TRICARE program is in place in the 
    service area of the member.
    (b) Temporary Authority for Managed Care Expansion to Members on 
Active Duty at Certain Remote Locations.--(1) A member of the Armed 
Forces described in subsection (c) is entitled to receive care under 
the Civilian Health and Medical Program of the Uniformed Services. In 
connection with such care, the Secretary of Defense shall waive the 
obligation of the member to pay a deductible, copayment, or annual fee 
that would otherwise be applicable under that program for care provided 
to the members under the program.
    (2) A member who is entitled under paragraph (1) to receive health 
care services under CHAMPUS shall receive such care from a network 
provider under the TRICARE program if such a provider is available in 
the service area of the member.
    (3) Paragraph (1) shall take effect on the date of the enactment of 
this Act and shall expire with respect to a member upon the later of 
the following:
        (A) The date that is one year after the date of the enactment 
    of this Act.
        (B) The date on which the amendments made by subsection (a) 
    apply with respect to the coverage of medical care for, and 
    provision of such care to, the member.
    (c) Eligible Members.--A member referred to in subsection (b) is a 
member of the Armed Forces on active duty who--
        (1) receives a duty assignment described in subsection (d); and
        (2) pursuant to the assignment of such duty, resides at a 
    location that is more than 50 miles, or approximately one hour of 
    driving time, from--
            (A) the nearest health care facility of the uniformed 
        services adequate to provide the needed care under chapter 55 
        of title 10, United States Code; and
            (B) the nearest source of the needed care that is available 
        to the member under the TRICARE Prime plan.
    (d) Duty Assignments Covered.--A duty assignment referred to in 
subsection (c)(1) means any of the following:
        (1) Permanent duty as a recruiter.
        (2) Permanent duty at an educational institution to instruct, 
    administer a program of instruction, or provide administrative 
    services in support of a program of instruction for the Reserve 
    Officers' Training Corps.
        (3) Permanent duty as a full-time adviser to a unit of a 
    reserve component of the Armed Forces.
        (4) Any other permanent duty designated by the Secretary 
    concerned for purposes of this subsection.
    (e) Payment of Costs.--Deductibles, copayments, and annual fees not 
payable by a member by reason of a waiver granted under the regulations 
prescribed pursuant to subsection (b) shall be paid out of funds 
available to the Department of Defense for the Defense Health Program.
    (f) Definitions.--In this section:
        (1) The term ``TRICARE program'' has the meaning given that 
    term in section 1072(7) of title 10, United States Code.
        (2) The term ``TRICARE Prime plan'' means a plan under the 
    TRICARE program that provides for the voluntary enrollment of 
    persons for the receipt of health care services to be furnished in 
    a manner similar to the manner in which health care services are 
    furnished by health maintenance organizations.

SEC. 732. WAIVER OR REDUCTION OF COPAYMENTS UNDER OVERSEAS DENTAL 
              PROGRAM.

    Section 1076a(h) of title 10, United States Code, is amended--
        (1) in the first sentence, by striking out ``Secretary'' and 
    inserting in lieu thereof ``Secretary of Defense''; and
        (2) by adding at the end the following new sentence: ``In the 
    case of such an overseas dental plan, the Secretary may waive or 
    reduce the copayments otherwise required by subsection (e) to the 
    extent the Secretary determines appropriate for the effective and 
    efficient operation of the plan.''.

SEC. 733. PREMIUM COLLECTION REQUIREMENTS FOR MEDICAL AND DENTAL 
              INSURANCE PROGRAMS; EXTENSION OF DEADLINE FOR 
              IMPLEMENTATION OF DENTAL INSURANCE PROGRAM FOR MILITARY 
              RETIREES.

    (a) Premium Collection For Selected Reserve Dental Insurance.--
Paragraph (3) of section 1076b(b) of title 10, United States Code, is 
amended to read as follows:
    ``(3) The Secretary of Defense shall establish procedures for the 
collection of the member's share of the premium for coverage by the 
dental insurance plan. To the maximum extent practicable, a member's 
share shall be deducted and withheld from the basic pay payable to the 
member for inactive duty training or basic pay payable to the member 
for active duty (if pay is available to the member). Such share shall 
be used to pay the premium for coverage by the dental insurance 
plan.''.
    (b) Premium Collection For Retiree Dental Insurance Plan.--
Paragraph (2) of section 1076c(c) of such title is amended to read as 
follows:
    ``(2) The Secretary of Defense shall establish procedures for the 
collection of the premiums charged for coverage by the dental insurance 
plan. To the maximum extent practicable, the premiums payable by a 
member entitled to retired pay shall be deducted and withheld from the 
retired pay of the member (if pay is available to the member).''.
    (c) Report to Congress.--Not later than March 1, 1998, the 
Secretary of Defense shall submit to Congress a report on the premium 
collection procedures established pursuant to paragraph (3) of section 
1076b(b) of title 10, United States Code, and paragraph (2) of section 
1076c(c) of such title. The report shall describe the extent to which 
premium collections are made under such paragraphs through deductions 
and withholding from pay.
    (d) Limitation on Implementation of Alternative Collection 
Procedures.--The Secretary of Defense may not implement procedures for 
collecting premiums under section 1076b(b)(3) of title 10, United 
States Code, or section 1076c(c)(2) of such title other than by 
deductions and withholding from pay until 120 days after the date that 
the Secretary submits a report to Congress describing the 
justifications for implementing such alternative procedures.
    (e) Extension of Deadline For Implementation of Dental Insurance 
Plan For Military Retirees.--Section 703(b) of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 
2590) is amended by striking ``October 1, 1997'' and inserting ``April 
1, 1998''.

SEC. 734. DENTAL INSURANCE PLAN COVERAGE FOR RETIREES OF THE PUBLIC 
              HEALTH SERVICE AND NOAA.

    (a) Eligibility.--(1) Subsection (a) of section 1076c of title 10, 
United States Code, is amended by striking out ``military retirees'' 
and inserting in lieu thereof ``retirees of the uniformed services''.
    (2) Subsection (b)(1) of such section is amended by striking out 
``Armed Forces'' and inserting in lieu thereof ``uniformed services''.
    (b) Officials Responsible.--(1) Subsection (a) of such section (as 
amended by subsection (a)) is further amended by inserting ``, in 
consultation with the other administering Secretaries,'' after 
``Secretary of Defense''.
    (2) Subsection (h) of such section is amended by striking out 
``Secretary of Transportation'' and inserting in lieu thereof ``other 
administering Secretaries''.

SEC. 735. CONSISTENCY BETWEEN CHAMPUS AND MEDICARE IN PAYMENT RATES FOR 
              SERVICES.

    (a) Conformity Between Rates.--Section 1079(h) of title 10, United 
States Code, is amended by striking out paragraphs (1), (2), and (3) 
and inserting in lieu thereof the following new paragraph:
    ``(1) Except as provided in paragraphs (2) and (3), 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) shall be equal to 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.). The Secretary of Defense shall determine the 
appropriate payment amount under this paragraph in consultation with 
the other administering Secretaries.''.
    (b) Reduced Rates Authorized.--Paragraph (5) of such section is 
amended by adding at the end the following new sentence: ``With the 
consent of the health care provider, the Secretary is also authorized 
to reduce the authorized payment for certain health care services below 
the amount otherwise required by the payment limitations under 
paragraph (1).''.
    (c) Conforming Amendments.--Such section is further amended--
        (1) in paragraph (5), by striking out ``paragraph (4), the 
    Secretary'' and inserting in lieu thereof ``paragraph (2), the 
    Secretary of Defense''; and
        (2) by redesignating paragraphs (4), (5), and (6) as paragraphs 
    (2), (3), and (4), respectively.

SEC. 736. USE OF PERSONAL SERVICES CONTRACTS FOR PROVISION OF HEALTH 
              CARE SERVICES AND LEGAL PROTECTION FOR PROVIDERS.

    (a) Use of Contracts Outside Medical Treatment Facilities.--Section 
1091(a) of title 10, United States Code, is amended--
        (1) by inserting ``(1)'' before ``The Secretary of Defense''; 
    and
        (2) by adding at the end the following new paragraph:
    ``(2) The Secretary of Defense, and the Secretary of Transportation 
with respect to the Coast Guard when it is not operating as a service 
in the Navy, may also enter into personal services contracts to carry 
out other health care responsibilities of the Secretary (such as the 
provision of medical screening examinations at Military Entrance 
Processing Stations) at locations outside medical treatment facilities, 
as determined necessary pursuant to regulations prescribed by the 
Secretary. The Secretary may not enter into a contract under this 
paragraph after the end of the one-year period beginning on the date of 
the enactment of this paragraph.''.
    (b) Defense of Suits.--Section 1089 of such title is amended--
        (1) in subsection (a), by adding at the end the following new 
    sentence: ``This subsection shall also apply if the physician, 
    dentist, nurse, pharmacist, or paramedical or other supporting 
    personnel (or the estate of such person) involved is serving under 
    a personal services contract entered into under section 1091 of 
    this title.''; and
        (2) in subsection (f)--
            (A) by inserting ``(1)'' after ``(f)''; and
            (B) by adding at the end the following new paragraph:
    ``(2) With respect to the Secretary of Defense and the Armed Forces 
Retirement Home Board, the authority provided by paragraph (1) also 
includes the authority to provide for reasonable attorney's fees for 
persons described in subsection (a), as determined necessary pursuant 
to regulations prescribed by the head of the agency concerned.''.
    (c) Report.--Not later than March 31, 1998, the Secretary of 
Defense shall submit to Congress a report on the feasible alternative 
means for performing the medical screening examinations that are 
routinely performed at Military Entrance Processing Stations. The 
report shall contain a discussion of the feasibility and cost of the 
use of--
        (1) the TRICARE system for the performance of the examinations; 
    and
        (2) each other alternative identified in the report.

SEC. 737. PORTABILITY OF STATE LICENSES FOR DEPARTMENT OF DEFENSE 
              HEALTH CARE PROFESSIONALS.

    Section 1094 of title 10, United States Code, is amended--
        (1) by redesignating subsection (d) as subsection (e); and
        (2) by inserting after subsection (c) the following new 
    subsection:
    ``(d)(1) Notwithstanding any law regarding the licensure of health 
care providers, a health-care professional described in paragraph (2) 
may practice the health profession or professions of the health-care 
professional in any State, the District of Columbia, or a Commonwealth, 
territory, or possession of the United States, regardless of whether 
the practice occurs in a health care facility of the Department of 
Defense, a civilian facility affiliated with the Department of Defense, 
or any other location authorized by the Secretary of Defense.
    ``(2) A health-care professional referred to in paragraph (1) is a 
member of the armed forces who--
        ``(A) has a current license to practice medicine, osteopathic 
    medicine, dentistry, or another health profession; and
        ``(B) is performing authorized duties for the Department of 
    Defense.''.

SEC. 738. STANDARD FORM AND REQUIREMENTS REGARDING CLAIMS FOR PAYMENT 
              FOR SERVICES.

    (a) Clarification of Existing Requirements.--Section 1106 of title 
10, United States Code, is amended to read as follows:

``Sec. 1106. Submittal of claims: standard form; time limits

    ``(a) Standard Form.--The Secretary of Defense, after consultation 
with the other administering Secretaries, shall prescribe by regulation 
a standard form for the submission of claims for the payment of health 
care services provided under this chapter.
    ``(b) Time for Submission.--A claim for payment for services 
provided under this chapter shall be submitted as provided in such 
regulations not later than one year after the services are provided.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 55 of title 10, United States Code, is amended by striking out 
the item relating to section 1106 and inserting in lieu thereof the 
following new item:
``1106. Submittal of claims: standard form; time limits.''.

SEC. 739. CHIROPRACTIC HEALTH CARE DEMONSTRATION PROGRAM.

    (a) Two-Year Extension.--Subsection (b) of section 731 of the 
National Defense Authorization Act for Fiscal Year 1995 (Public Law 
103-337; 10 U.S.C. 1092 note) is amended by striking out ``1997'' and 
inserting in lieu thereof ``1999''.
    (b) Expansion to at Least Three Additional Treatment Facilities.--
Subsection (a)(2)(A) of such section is amended by striking out ``not 
less than 10'' and inserting in lieu thereof ``the National Naval 
Medical Center, the Walter Reed Army Medical Center, and not less than 
11 other''.
    (c) Reports.--Subsection (c) of such section is amended--
        (1) by striking paragraph (3); and
        (2) by adding at the end the following new paragraphs:
    ``(3) Not later than January 30, 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 
that identifies the additional treatment facilities designated to 
furnish chiropractic care under the program that were not so designated 
before the report required by paragraph (1) was prepared, together with 
the plan for the conduct of the program at the additional treatment 
facilities.
    ``(4) Not later than May 1, 1998, the Secretary of Defense shall 
modify the plan for evaluating the program submitted pursuant to 
paragraph (2) in order to provide for the evaluation of the program at 
all of the designated treatment facilities under the program, including 
the treatment facilities referred to in paragraph (3).
    ``(5) Not later than May 1, 2000, the Secretary shall submit to the 
committees referred to in paragraph (3) a final report in accordance 
with the plan submitted pursuant to paragraph (2).''.

                       Subtitle E--Other Matters

SEC. 741. CONTINUED ADMISSION OF CIVILIANS AS STUDENTS IN PHYSICIAN 
              ASSISTANT TRAINING PROGRAM OF ARMY MEDICAL DEPARTMENT.

    (a) Civilian Attendance.--(1) Chapter 407 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 4416. Academy of Health Sciences: admission of civilians in 
            physician assistant training program

    ``(a) In General.--The Secretary of the Army may, pursuant to an 
agreement entered into with an accredited institution of higher 
education--
        ``(1) permit students of the institution to attend the didactic 
    portion of the physician assistant training program conducted by 
    the Army Medical Department at the Academy of Health Sciences at 
    Fort Sam Houston, Texas; and
        ``(2) accept from the institution academic services to support 
    the physician assistant training program at the Academy.
    ``(b) Agreement for Exchange of Services.--An agreement entered 
into with an institution of higher education under this section shall 
require the institution, in exchange for services provided under 
paragraph (1) of subsection (a), to provide academic services described 
in paragraph (2) of such subsection that the Secretary and authorized 
representatives of the institution consider appropriate.
    ``(c) Selection of Students.--In consultation with the authorized 
representatives of the institution of higher education concerned, the 
Secretary shall prescribe the qualifications and methods of selection 
for students of the institution to receive instruction at the Academy 
under this section. The qualifications shall be comparable to those 
generally required for admission to the physician assistant training 
program at the Academy.
    ``(d) Rules of Attendance.--Except as the Secretary determines 
necessary, a student who receives instruction at the Academy under this 
section shall be subject to the same regulations governing attendance, 
discipline, discharge, and dismissal as apply to other persons 
attending the Academy.
    ``(e) Limitations.--The Secretary shall ensure the following:
        ``(1) That the Army Medical Department, in carrying out an 
    agreement under this section, does not incur costs in excess of the 
    costs that the department would incur to obtain, by means other 
    than the agreement, academic services that are comparable to those 
    provided by the institution pursuant to the agreement.
        ``(2) That attendance of civilian students at the Academy under 
    this section does not cause a decrease in the number of members of 
    the armed forces enrolled in the physician assistant training 
    program at the Academy.
    ``(f) Annual Report.--(1) Each year, the Secretary shall submit to 
Congress a report on the exchange of services under this section during 
the year. The report shall contain the following:
        ``(A) The number of civilian students who receive instruction 
    at the Academy under this section.
        ``(B) An assessment of the benefits derived by the United 
    States.
    ``(2) Reports are required under paragraph (1) only for years 
during which an agreement is in effect under this section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``4416. Academy of Health Sciences: admission of civilians in physician 
          assistant training program.''.

    (b) Effect on Existing Demonstration Program.--An agreement entered 
into under the demonstration program for the admission of civilians as 
physician assistant students at the Academy of Health Sciences, Fort 
Sam Houston, Texas, established pursuant to section 732 of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 
Stat. 2810) shall be treated as an agreement entered into under section 
4416 of title 10, United States Code (as added by subsection (a)). The 
agreement may be extended in such manner and for such period as the 
parties to the agreement consider appropriate consistent with section 
4416.

SEC. 742. PAYMENT FOR EMERGENCY HEALTH CARE OVERSEAS FOR MILITARY AND 
              CIVILIAN PERSONNEL OF THE ON-SITE INSPECTION AGENCY.

    (a) Payment of Costs.--The Secretary of Defense may pay the costs 
of any emergency health care that--
        (1) is needed by a member of the Armed Forces, civilian 
    employee of the Department of Defense, or civilian employee of a 
    contractor operating under a contract with the Department of 
    Defense while the member or employee is performing temporary or 
    permanent duty with the On-Site Inspection Agency outside the 
    United States; and
        (2) is furnished to such person during fiscal year 1998 by a 
    source outside the United States.
    (b) Funding.--Funds authorized to be appropriated for the expenses 
of the On-Site Inspection Agency for fiscal year 1998 by this Act shall 
be available to cover payments for emergency health care provided under 
subsection (a).

SEC. 743. AUTHORITY FOR AGREEMENT FOR USE OF MEDICAL RESOURCE FACILITY, 
              ALAMOGORDO, NEW MEXICO.

    (a) Authority.--(1) The Secretary of the Air Force may enter into 
an agreement with Gerald Champion Hospital, Alamogordo, New Mexico, 
under which the Secretary may furnish health care services to eligible 
individuals in a medical resource facility in Alamogordo, New Mexico, 
that is constructed and equipped, in part, using funds provided by the 
Secretary under the agreement.
    (2) For purposes of this section:
        (A) The term ``eligible individual'' means any individual 
    eligible for medical and dental care under chapter 55 of title 10, 
    United States Code, including any member of the uniformed services 
    entitled to such care under section 1074(a) of that title.
        (B) The terms ``medical resource facility'' and ``facility'' 
    mean the medical resource facility to be constructed and equipped 
    pursuant to the agreement authorized by paragraph (1).
        (C) The term ``Hospital'' means Gerald Champion Hospital, 
    Alamogordo, New Mexico.
    (b) Content of Agreement.--Any agreement entered into under 
subsection (a) shall specify, at a minimum, the following:
        (1) The relationship between the Hospital and the Secretary of 
    the Air Force in the provision of health care services to eligible 
    individuals in the medical resource facility, including--
            (A) whether or not the Secretary and the Hospital are to 
        use and administer the facility jointly or independently; and
            (B) under what circumstances the Hospital is to act as a 
        provider of health care services under the managed care option 
        of the TRICARE program known as TRICARE Prime.
        (2) Matters relating to the administration of the agreement, 
    including--
            (A) the duration of the agreement;
            (B) the rights and obligations of the Secretary and the 
        Hospital under the agreement, including any contracting or 
        grievance procedures applicable under the agreement;
            (C) the types of care to be provided to eligible 
        individuals under the agreement, including the cost to the 
        Department of the Air Force of providing the care to eligible 
        individuals during the term of the agreement;
            (D) the access of Air Force medical personnel to the 
        facility under the agreement;
            (E) the rights and responsibilities of the Secretary and 
        the Hospital upon termination of the agreement; and
            (F) any other matters jointly identified by the Secretary 
        and the Hospital.
        (3) The nature of the arrangement between the Secretary and the 
    Hospital with respect to the ownership of the facility and any 
    property under the agreement, including--
            (A) the nature of that arrangement while the agreement is 
        in force;
            (B) the nature of that arrangement upon termination of the 
        agreement; and
            (C) any requirement for reimbursement of the Secretary by 
        the Hospital as a result of the arrangement upon termination of 
        the agreement.
        (4) The amount of the funds made available under subsection (c) 
    that the Secretary will contribute for the construction and 
    equipping of the facility.
        (5) Any conditions or restrictions relating to the 
    construction, equipping, or use of the facility.
    (c) Availability of Funds for Construction and Equipping of 
Facility.--(1) Of the amount authorized to be appropriated pursuant to 
section 301(4) for operation and maintenance for the Air Force, not 
more than $7,000,000 may be used by the Secretary of the Air Force to 
make a contribution toward the construction and equipping of the 
medical resource facility in the event that the Secretary enters into 
the agreement authorized by subsection (a). Notwithstanding any other 
provision of law, the Secretary may not use other sources of funds to 
make a contribution toward the construction or equipping of the 
facility.
    (2) Notwithstanding subsection (b)(3) regarding the ownership and 
reimbursement issues to be addressed in the agreement authorized by 
subsection (a), the Secretary may not contribute funds made available 
under paragraph (1) toward the construction and equipping of the 
facility unless the agreement requires, in exchange for the 
contribution, that the Hospital provide health care services to 
eligible individuals without charge to the Secretary or at a reduced 
rate. The value of the services provided by the Hospital shall be at 
least equal to the amount of the contribution made by the Secretary, 
and the Hospital shall complete the provision of services equal in 
value to the Secretary's contribution within seven years after the 
facility becomes operational. The provision of additional discounted 
services to be provided by the Hospital shall be included in the 
agreement. The value and types of services to be provided by the 
Hospital shall be negotiated in accordance with principles of resource-
sharing agreements under the TRICARE program.
    (d) Notice and Wait.--The Secretary of the Air Force may not enter 
into the agreement authorized by subsection (a) until 90 days after the 
Secretary of Defense submits to the congressional defense committees 
the report required by subsection (e).
    (e) Report on Proposed Agreement.--The Secretary of Defense shall 
submit to Congress a report containing an analysis of, and 
recommendations regarding, the agreement proposed to be entered into 
under subsection (a), in particular, the implications of the agreement 
on regional health care costs and its effect on implementation of the 
TRICARE program in the region. The report shall also include a copy of 
the agreement, the results of a cost-benefit analysis conducted by the 
Secretary of the Air Force with respect to the agreement, and such 
other information with respect to the agreement as the Secretary of 
Defense and the Secretary of the Air Force considers appropriate. The 
cost-benefit analysis shall consider the effects of the agreement on 
operation and maintenance and military construction requirements at 
Holloman Air Force Base, New Mexico.
    (f) Subsequent Reports.--If the Secretary of the Air Force enters 
into the agreement authorized by subsection (a), the Secretary shall 
submit to Congress an annual report containing a revised cost-benefit 
analysis of the consequences of the agreement as in effect during the 
year covered by the report, including a full accounting of any cost 
savings realized by the Department of the Air Force as a result of the 
agreement. A report shall be submitted for each year in which the 
agreement is in effect or until the Hospital provides the full value of 
health care services required under subsection (c)(2), whichever occurs 
first.

SEC. 744. DISCLOSURES OF CAUTIONARY INFORMATION ON PRESCRIPTION 
              MEDICATIONS.

    (a) Regulations Required.--Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense, in consultation 
with the administering Secretaries referred to in section 1073 of title 
10, United States Code, shall prescribe regulations to require each 
source described in subsection (d) that dispenses a prescription 
medication to a beneficiary under chapter 55 of such title to include 
with the medication the written cautionary information required by 
subsection (b).
    (b) Information To Be Disclosed.--Information required to be 
disclosed about a medication under the regulations shall include 
appropriate cautions about usage of the medication, including possible 
side effects and potentially hazardous interactions with foods.
    (c) Form of Information.--The regulations shall require that 
information be furnished in a form that, to the maximum extent 
practicable, is easily read and understood.
    (d) Covered Sources.--The regulations shall apply to the following:
        (1) Pharmacies and any other dispensers of prescription 
    medications in medical facilities of the uniformed services.
        (2) Sources of prescription medications under any mail order 
    pharmaceuticals program provided by any of the administering 
    Secretaries under chapter 55 of title 10, United States Code.
        (3) Pharmacies paid under the Civilian Health and Medical 
    Program of the Uniformed Services (including the TRICARE program).
        (4) Pharmacies, and any other pharmaceutical dispensers, of 
    designated providers referred to in section 721(5) of the National 
    Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201; 
    110 Stat. 2593; 10 U.S.C. 1073 note).

SEC. 745. COMPETITIVE PROCUREMENT OF CERTAIN OPHTHALMIC SERVICES.

    (a) Competitive Procurement Required.--Beginning not later than 
October 1, 1998, the Secretary of Defense shall competitively procure 
from private-sector sources, or other sources outside of the Department 
of Defense, all ophthalmic services related to the provision of single 
vision and multivision eyeware for members of the Armed Forces, retired 
members, and certain covered beneficiaries under chapter 55 of title 
10, United States Code, who would otherwise receive such ophthalmic 
services through the Department of Defense.
    (b) Exception.--Subsection (a) shall not apply to the extent that 
the Secretary of Defense determines that the use of sources within the 
Department of Defense to provide such ophthalmic services--
        (1) is necessary to meet the readiness requirements of the 
    Armed Forces; or
        (2) is more cost effective.
    (c) Completion of Existing Orders.--Subsection (a) shall not apply 
to orders for ophthalmic services received on or before September 30, 
1998.

SEC. 746. COMPTROLLER GENERAL STUDY OF ADEQUACY AND EFFECT OF MAXIMUM 
              ALLOWABLE CHARGES FOR PHYSICIANS UNDER CHAMPUS.

    (a) Study Required.--The Comptroller General shall conduct a study 
regarding the adequacy of the maximum allowable charges for physicians 
established under the Civilian Health and Medical Program of the 
Uniformed Services (CHAMPUS) and the effect of such charges on the 
participation of physicians in CHAMPUS. The study shall include an 
evaluation of the following:
        (1) The methodology used by the Secretary of Defense to 
    establish maximum allowable charges for physicians under CHAMPUS, 
    and whether such methodology conforms to the requirements of 
    section 1079(h) of title 10, United States Code.
        (2) The differences between the established charges under 
    CHAMPUS and reimbursement rates for similar services under title 
    XVIII of the Social Security Act and other health care programs.
        (3) The basis for physician complaints that the CHAMPUS 
    established charges are too low.
        (4) The difficultly of CHAMPUS in ensuring physician compliance 
    with the CHAMPUS established charges in the absence of legal 
    mechanisms to enforce compliance, and the effect of noncompliance 
    on patient out-of-pocket expenses.
        (5) The effect of the established charges under CHAMPUS on the 
    participation of physicians in CHAMPUS, and the extent and success 
    of Department of Defense efforts to increase physician 
    participation in areas with low participation rates.
    (b) Submission of Report.--Not later than March 1, 1998, the 
Comptroller General shall submit to Congress a report containing the 
results of the study required by subsection (a).

SEC. 747. COMPTROLLER GENERAL STUDY OF DEPARTMENT OF DEFENSE PHARMACY 
              PROGRAMS.

    (a) Study.--Not later than March 31, 1998, the Comptroller General 
shall submit to Congress a study evaluating the pharmacy programs of 
the Department of Defense. The study shall examine the impact of such 
pharmacy programs on the aggregate cost, quality, and accessibility of 
health care provided to covered beneficiaries under chapter 55 of title 
10, United States Code, and shall include an examination of the 
following:
        (1) The merits and feasibility of establishing a uniform 
    formulary for military treatment facility pharmacies and civilian 
    contractor pharmacy benefit administrators.
        (2) The reasons that military treatment facilities deny covered 
    beneficiaries access to pharmacy care and shift such beneficiaries 
    to other sources of pharmacy care.
        (3) The merits and feasibility of using private sector cost 
    control mechanisms implemented by authorized civilian contractors 
    in the Department of Defense medical programs, and the existence of 
    any barriers to the use of such mechanisms, including factors that 
    may undermine the incentives of such contractors to optimize 
    treatment outcomes in managing the care of covered beneficiaries 
    without exceeding budgeted resources.
        (4) The cost impacts, if any, of the use of commercial managed 
    care methods of furnishing pharmaceuticals to covered beneficiaries 
    by TRICARE program contractors instead of procuring pharmaceuticals 
    at discounted prices pursuant to section 8126 of title 38, United 
    States Code.
        (5) The existence of options for increasing the discounts 
    available to TRICARE program contractors without undermining 
    controls for preventing diversion of items procured by the 
    Department of Defense to nonmilitary populations.
    (b) Response to Study.--Not later than 90 days after the 
Comptroller General submits to Congress the study required by 
subsection (a), the Secretary of Defense shall submit to Congress a 
report on the feasibility and advisability of implementing changes to 
the pharmacy programs of the Department of Defense based on the 
findings and conclusions of the study.

SEC. 748. COMPTROLLER GENERAL STUDY OF NAVY GRADUATE MEDICAL EDUCATION 
              PROGRAM.

    (a) Study Required.--The Comptroller General shall conduct a study 
to evaluate the validity of the recommendations made by the Medical 
Education Policy Council of the Bureau of Medicine and Surgery of the 
Navy regarding restructuring the graduate medical education program of 
the Department of the Navy. The study shall specifically address the 
Council's recommendations relating to residency training conducted at 
the Naval Medical Center, Portsmouth, Virginia, and the National Naval 
Medical Center, Bethesda, Maryland.
    (b) Submission of Report.--Not later than March 1, 1998, the 
Comptroller General shall submit to Congress and the Secretary of the 
Navy a report containing the results of the study required by 
subsection (a).
    (c) Moratorium on Restructuring.--Until the report required by 
subsection (b) is submitted to Congress, the Secretary of the Navy may 
not make any change in the types of residency programs conducted under 
the Navy graduate medical education program or the locations at which 
such residency programs are conducted or otherwise restructure the Navy 
graduate medical education program.

SEC. 749. STUDY OF EXPANSION OF PHARMACEUTICALS BY MAIL PROGRAM TO 
              INCLUDE ADDITIONAL MEDICARE-ELIGIBLE COVERED 
              BENEFICIARIES.

    Not later than six months after the date of the enactment of this 
Act, the Secretary of Defense shall submit to Congress a report 
regarding the feasibility and advisability of expanding the category of 
persons eligible to participate in the demonstration project for the 
purchase of prescription pharmaceuticals by mail, as required by 
section 702(a) of the National Defense Authorization Act for Fiscal 
Year 1993 (Public Law 102-484; 10 U.S.C. 1079 note), to include persons 
referred to in subsection (c) of section 1086 of title 10, United 
States Code, who are covered by subsection (d)(1) of such section and 
reside in the United States outside of the catchment area of a medical 
treatment facility of the uniformed services.

SEC. 750. COMPTROLLER GENERAL STUDY OF REQUIREMENT FOR MILITARY MEDICAL 
              FACILITIES IN NATIONAL CAPITAL REGION.

    (a) Study Required.--The Comptroller General shall conduct a study 
to evaluate the requirements for Army, Navy, and Air Force medical 
facilities in the National Capital Region (as defined in section 
2674(f)(2) of title 10, United States Code). The study shall--
        (1) specifically address requirements with respect to 
    geography, facilities, integrated residencies, and medical 
    environments; and
        (2) provide specific recommendations with respect to how 
    medical and health care provided by these facilities may be better 
    coordinated to more efficiently serve, throughout the National 
    Capital Region, members of the Armed Forces on active duty and 
    covered beneficiaries under chapter 55 of title 10, United States 
    Code.
    (b) Submission of Report.--Not later than six months after the date 
of the enactment of this Act, the Comptroller General shall submit to 
Congress and the Secretary of Defense a report containing the results 
of the study required by subsection (a).

SEC. 751. REPORT ON POLICIES AND PROGRAMS TO PROMOTE HEALTHY LIFESTYLES 
              FOR MEMBERS OF THE ARMED FORCES AND THEIR DEPENDENTS.

    (a) Report.--Not later than March 30, 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 effectiveness of the policies and programs of the 
Department of Defense intended to promote healthy lifestyles for 
members of the Armed Forces and their dependents.
    (b) Policies and Programs To Be Assessed.--The report under 
subsection (a) shall include an assessment of the effectiveness of the 
following:
        (1) Programs intended to educate members of the Armed Forces 
    and their dependents about the potential health consequences of the 
    use of alcohol and tobacco.
        (2) Policies of the commissaries, post exchanges, and service 
    clubs, and for entertainment activities of the Department of 
    Defense, relating to the sale and use of alcohol and tobacco.
        (3) Programs intended to provide support to members of the 
    Armed Forces and their dependents who choose to reduce or eliminate 
    their use of alcohol or tobacco.
        (4) Any other policies or programs intended to promote healthy 
    lifestyles for members of the Armed Forces and their dependents.

SEC. 752. SENSE OF CONGRESS REGARDING QUALITY HEALTH CARE FOR RETIREES.

    (a) Findings.--Congress makes the following findings:
        (1) Many retired military personnel believe that they were 
    promised lifetime health care in exchange for 20 or more years of 
    service.
        (2) Military retirees are the only Federal Government personnel 
    who have been prevented from using their employer-provided health 
    care at or after 65 years of age.
        (3) Military health care has become increasingly difficult to 
    obtain for military retirees as the Department of Defense reduces 
    its health care infrastructure.
        (4) Military retirees deserve to have a health care program 
    that is at least comparable with that of retirees from civilian 
    employment by the Federal Government.
        (5) The availability of quality, lifetime health care is a 
    critical recruiting incentive for the Armed Forces.
        (6) Quality health care is a critical aspect of the quality of 
    life of the men and women serving in the Armed Forces.
    (b) Sense of Congress.--It is the sense of Congress that--
        (1) the United States has incurred a moral obligation to 
    provide health care to members and former members of the Armed 
    Forces who are entitled to retired or retainer pay (or its 
    equivalent);
        (2) it is, therefore, necessary to provide quality, affordable 
    health care to such retirees; and
        (3) Congress and the President should take steps to address the 
    problems associated with the availability of health care for such 
    retirees within two years after the date of the enactment of this 
    Act.

                    Subtitle F--Persian Gulf Illness

SEC. 761. DEFINITIONS.

    For purposes of this subtitle:
        (1) The term ``Gulf War illness'' means any one of the complex 
    of illnesses and symptoms that might have been contracted by 
    members of the Armed Forces as a result of service in the Southwest 
    Asia theater of operations during the Persian Gulf War.
        (2) The term ``Persian Gulf War'' has the meaning given that 
    term in section 101 of title 38, United States Code.
        (3) The term ``Persian Gulf veteran'' means an individual who 
    served on active duty in the Armed Forces in the Southwest Asia 
    theater of operations during the Persian Gulf War.
        (4) The term ``contingency operation'' has the meaning given 
    that term in section 101(a) of title 10, United States Code, and 
    includes a humanitarian operation, peacekeeping operation, or 
    similar operation.

SEC. 762. PLAN FOR HEALTH CARE SERVICES FOR PERSIAN GULF VETERANS.

    (a) Plan Required.--The Secretary of Defense and the Secretary of 
Veterans Affairs, acting jointly, shall prepare a plan to provide 
appropriate health care to Persian Gulf veterans (and dependents 
eligible by law) who suffer from a Gulf War illness.
    (b) Contents of Plan.--In preparing the plan, the Secretaries 
shall--
        (1) use the presumptions of service connection and illness 
    specified in paragraphs (1) and (2) of section 721(d) of the 
    National Defense Authorization Act for Fiscal Year 1995 (Public Law 
    103-337; 10 U.S.C. 1074 note) to determine the Persian Gulf 
    veterans (and dependents eligible by law) who should be covered by 
    the plan;
        (2) consider the need and methods available to provide health 
    care services to Persian Gulf veterans who are no longer on active 
    duty in the Armed Forces, such as Persian Gulf veterans who are 
    members of the reserve components and Persian Gulf veterans who 
    have been separated from the Armed Forces; and
        (3) estimate the costs to the Government of providing full or 
    partial health care services under the plan to covered Persian Gulf 
    veterans (and covered dependents eligible by law).
    (c) Follow-up Treatment.--The plan required by subsection (a) shall 
specifically address the measures to be used to monitor the quality, 
appropriateness, and effectiveness of, and patient satisfaction with, 
health care services provided to Persian Gulf veterans after their 
initial medical examination as part of registration in the Persian Gulf 
War Veterans Health Registry or the Comprehensive Clinical Evaluation 
Program.
    (d) Submission of Plan.--Not later than March 1, 1998, the 
Secretaries shall submit to Congress the plan required by subsection 
(a).

SEC. 763. COMPTROLLER GENERAL STUDY OF REVISED DISABILITY CRITERIA FOR 
              PHYSICAL EVALUATION BOARDS.

    Not later than March 1, 1998, the Comptroller General shall submit 
to Congress a study evaluating the revisions made by the Secretary of 
Defense (as required by section 721(e) of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 10 U.S.C. 
1074 note)) to the Physical Evaluation Board criteria used to set 
disability ratings for members of the Armed Forces who are no longer 
medically qualified for continuation on active duty so as to ensure 
accurate disability ratings related to a diagnosis of a Gulf War 
illness.

SEC. 764. MEDICAL CARE FOR CERTAIN RESERVES WHO SERVED IN SOUTHWEST 
              ASIA DURING THE PERSIAN GULF WAR.

    (a) In General.--Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1074d the following new section:

``Sec. 1074e. Medical care: certain Reserves who served in Southwest 
            Asia during the Persian Gulf Conflict

    ``(a) Entitlement to Medical Care.--A member of the armed forces 
described in subsection (b) is entitled to medical care for a 
qualifying Persian Gulf symptom or illness to the same extent and under 
the same conditions (other than the requirement that the member be on 
active duty) as a member of a uniformed service who is entitled to such 
care under section 1074(a) of this title.
    ``(b) Covered Members.--Subsection (a) applies to a member of a 
reserve component who--
        ``(1) is a Persian Gulf veteran;
        ``(2) has a qualifying Persian Gulf symptom or illness; and
        ``(3) is not otherwise entitled to medical care for such 
    symptom or illness under this chapter and is not otherwise eligible 
    for hospital care and medical services for such symptom or illness 
    under section 1710 of title 38.
    ``(c) Definitions.--In this section:
        ``(1) The term `Persian Gulf veteran' means a member of the 
    armed forces who served on active duty in the Southwest Asia 
    theater of operations during the Persian Gulf Conflict.
        ``(2) The term `qualifying Persian Gulf symptom or illness' 
    means, with respect to a member described in subsection (b), a 
    symptom or illness--
            ``(A) that the member registered before September 1, 1997, 
        in the Comprehensive Clinical Evaluation Program of the 
        Department of Defense and that is presumed under section 721(d) 
        of the National Defense Authorization Act for Fiscal Year 1995 
        (10 U.S.C. 1074 note) to be a result of service in the 
        Southwest Asia theater of operations during the Persian Gulf 
        Conflict; or
            ``(B) that the member registered before September 1, 1997, 
        in the Persian Gulf War Veterans Health Registry maintained by 
        the Department of Veterans Affairs pursuant to section 702 of 
        the Persian Gulf War Veterans' Health Status Act (38 U.S.C. 527 
        note).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1074d the following new item:
``1074e. Medical care: certain Reserves who served in Southwest Asia 
          during the Persian Gulf Conflict.''.

SEC. 765. IMPROVED MEDICAL TRACKING SYSTEM FOR MEMBERS DEPLOYED 
              OVERSEAS IN CONTINGENCY OR COMBAT OPERATIONS.

    (a) System Required.--(1) Chapter 55 of title 10, United States 
Code, is amended by inserting after section 1074e (as added by section 
764) the following new section:

``Sec. 1074f. Medical tracking system for members deployed overseas

    ``(a) System Required.--The Secretary of Defense shall establish a 
system to assess the medical condition of members of the armed forces 
(including members of the reserve components) who are deployed outside 
the United States or its territories or possessions as part of a 
contingency operation (including a humanitarian operation, peacekeeping 
operation, or similar operation) or combat operation.
    ``(b) Elements of System.--The system described in subsection (a) 
shall include the use of predeployment medical examinations and 
postdeployment medical examinations (including an assessment of mental 
health and the drawing of blood samples) to accurately record the 
medical condition of members before their deployment and any changes in 
their medical condition during the course of their deployment. The 
postdeployment examination shall be conducted when the member is 
redeployed or otherwise leaves an area in which the system is in 
operation (or as soon as possible thereafter).
    ``(c) Recordkeeping.--The results of all medical examinations 
conducted under the system, records of all health care services 
(including immunizations) received by members described in subsection 
(a) in anticipation of their deployment or during the course of their 
deployment, and records of events occurring in the deployment area that 
may affect the health of such members shall be retained and maintained 
in a centralized location to improve future access to the records.
    ``(d) Quality Assurance.--The Secretary of Defense shall establish 
a quality assurance program to evaluate the success of the system in 
ensuring that members described in subsection (a) receive predeployment 
medical examinations and postdeployment medical examinations and that 
the recordkeeping requirements with respect to the system are met.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1074e (as added 
by section 764) the following new item:
``1074f. Medical tracking system for members deployed overseas.''.

    (b) Report.--Not later than March 1, 1998, the Secretary of Defense 
shall submit to Congress an analysis of the administrative implications 
of establishing and administering the medical tracking system required 
by section 1074f of title 10, United States Code, as added by 
subsection (a). The report shall include, for fiscal year 1999 and the 
5 successive fiscal years, a separate analysis and specification of the 
projected costs and operational considerations for each of the 
following required aspects of the system:
        (1) Predeployment medical examinations.
        (2) Postdeployment medical examinations.
        (3) Recordkeeping.

SEC. 766. NOTICE OF USE OF INVESTIGATIONAL NEW DRUGS OR DRUGS 
              UNAPPROVED FOR THEIR APPLIED USE.

    (a) Notice Requirements.--Chapter 55 of title 10, United States 
Code, is amended by adding at the end the following new section:

``Sec. 1107. Notice of use of an investigational new drug or a drug 
            unapproved for its applied use

    ``(a) Notice Required.--(1) Whenever the Secretary of Defense 
requests or requires a member of the armed forces to receive an 
investigational new drug or a drug unapproved for its applied use, the 
Secretary shall provide the member with notice containing the 
information specified in subsection (d).
    ``(2) The Secretary shall also ensure that health care providers 
who administer an investigational new drug or a drug unapproved for its 
applied use, or who are likely to treat members who receive such a 
drug, receive the information required to be provided under paragraphs 
(3) and (4) of subsection (d).
    ``(b) Time of Notice.--The notice required to be provided to a 
member under subsection (a)(1) shall be provided before the 
investigational new drug or drug unapproved for its applied use is 
first administered to the member, if practicable, but in no case later 
than 30 days after the drug is first administered to the member.
    ``(c) Form of Notice.--The notice required under subsection (a)(1) 
shall be provided in writing unless the Secretary of Defense determines 
that the use of written notice is impractical because of the number of 
members receiving the investigational new drug or drug unapproved for 
its applied use, time constraints, or similar reasons. If the Secretary 
provides notice under subsection (a)(1) in a form other than in 
writing, the Secretary shall submit to Congress a report describing the 
notification method used and the reasons for the use of the alternative 
method.
    ``(d) Content of Notice.--The notice required under subsection 
(a)(1) shall include the following:
        ``(1) Clear notice that the drug being administered is an 
    investigational new drug or a drug unapproved for its applied use.
        ``(2) The reasons why the investigational new drug or drug 
    unapproved for its applied use is being administered.
        ``(3) Information regarding the possible side effects of the 
    investigational new drug or drug unapproved for its applied use, 
    including any known side effects possible as a result of the 
    interaction of such drug with other drugs or treatments being 
    administered to the members receiving such drug.
        ``(4) Such other information that, as a condition of 
    authorizing the use of the investigational new drug or drug 
    unapproved for its applied use, the Secretary of Health and Human 
    Services may require to be disclosed.
    ``(e) Records of Use.--The Secretary of Defense shall ensure that 
the medical records of members accurately document--
        ``(1) the receipt by members of any investigational new drug or 
    drug unapproved for its applied use; and
        ``(2) the notice required by subsection (a)(1).
    ``(f) Definitions.--In this section:
        ``(1) The term `investigational new drug' means a drug covered 
    by section 505(i) of the Federal Food, Drug, and Cosmetic Act (21 
    U.S.C. 355(i)).
        ``(2) The term `drug unapproved for its applied use' means a 
    drug administered for a use not described in the approved labeling 
    of the drug under section 505 of the Federal Food, Drug, and 
    Cosmetic Act (21 U.S.C. 355).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:
``1107. Notice of use of an investigational new drug or a drug 
          unapproved for its applied use.''.

SEC. 767. REPORT ON PLANS TO TRACK LOCATION OF MEMBERS IN A THEATER OF 
              OPERATIONS.

    Not later than March 1, 1998, the Secretary of Defense shall submit 
to Congress a report containing a plan for collecting and maintaining 
information regarding the daily location of units of the Armed Forces, 
and to the extent practicable individual members of such units, serving 
in a theater of operations during a contingency operation or combat 
operation.

SEC. 768. SENSE OF CONGRESS REGARDING THE DEPLOYMENT OF SPECIALIZED 
              UNITS FOR DETECTING AND MONITORING CHEMICAL, BIOLOGICAL, 
              AND SIMILAR HAZARDS IN A THEATER OF OPERATIONS.

    It is the sense of Congress that the Secretary of Defense, in 
conjunction with the Chairman of the Joint Chiefs of Staff, should take 
such actions as are necessary to ensure that the units of the Armed 
Forces deployed in the theater of operations for each contingency 
operation or combat operation include specialized units with sufficient 
capability (including personnel with the appropriate training and 
expertise, and the appropriate equipment) to detect and monitor the 
presence of chemical, biological, and similar hazards to which members 
of the Armed Forces could be exposed in that theater during the 
operation.

SEC. 769. REPORT ON EFFECTIVENESS OF RESEARCH EFFORTS REGARDING GULF 
              WAR ILLNESSES.

    Not later than March 1, 1998, the Secretary of Defense shall submit 
to Congress a report evaluating the effectiveness of medical research 
initiatives regarding Gulf War illnesses. The report shall address the 
following:
        (1) The type and effectiveness of previous research efforts, 
    including the activities undertaken pursuant to section 743 of the 
    National Defense Authorization Act for Fiscal Year 1997 (Public Law 
    104-201; 10 U.S.C. 1074 note), section 722 of the National Defense 
    Authorization Act for Fiscal Year 1995 (Public Law 103-337; 10 
    U.S.C. 1074 note), and sections 270 and 271 of the National Defense 
    Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 
    Stat. 1613).
        (2) Recommendations regarding additional research regarding 
    Gulf War illnesses, including research regarding the nature and 
    causes of Gulf War illnesses and appropriate treatments for such 
    illnesses.
        (3) The adequacy of Federal funding and the need for additional 
    funding for medical research initiatives regarding Gulf War 
    illnesses.

SEC. 770. PERSIAN GULF ILLNESS CLINICAL TRIALS PROGRAM.

    (a) Findings.--Congress finds the following:
        (1) There are many ongoing studies that investigate risk 
    factors which may be associated with the health problems 
    experienced by Persian Gulf veterans; however, there have been no 
    studies that examine health outcomes and the effectiveness of the 
    treatment received by such veterans.
        (2) The medical literature and testimony presented in hearings 
    on Gulf War illnesses indicate that there are therapies, such as 
    cognitive behavioral therapy, that have been effective in treating 
    patients with symptoms similar to those seen in many Persian Gulf 
    veterans.
    (b) Establishment of Program.--The Secretary of Defense and the 
Secretary of Veterans Affairs, acting jointly, shall establish a 
program of cooperative clinical trials at multiple sites to assess the 
effectiveness of protocols for treating Persian Gulf veterans who 
suffer from ill-defined or undiagnosed conditions. Such protocols shall 
include a multidisciplinary treatment model, of which cognitive 
behavioral therapy is a component.
    (c) Funding.--Of the funds authorized to be appropriated in section 
201(1) for research, development, test, and evaluation for the Army, 
the sum of $4,500,000 shall be available for program element 62787A 
(medical technology) in the budget of the Department of Defense for 
fiscal year 1998 to carry out the clinical trials program established 
pursuant to subsection (b).

SEC. 771. SENSE OF CONGRESS CONCERNING GULF WAR ILLNESS.

    (a) Findings.--Congress makes the following findings:
        (1) Americans served in the Persian Gulf Conflict of 1991 in 
    defense of vital national security interests of the United States.
        (2) It was known to United States intelligence and military 
    commanders that biological and chemical agents were in theater 
    throughout the conflict.
        (3) An undetermined amount of these agents were released into 
    theater.
        (4) A large number of United States military veterans and 
    allied veterans who served in the Southwest Asia theater of 
    operations have been stricken with a variety of severe illnesses.
        (5) Previous efforts to discern the causes of those illnesses 
    have been inadequate, and those illnesses are affecting the health 
    of both veterans and their families.
    (b) Sense of Congress.--It is the sense of Congress that all 
promising technology and treatments relating to Gulf War illnesses 
should be fully explored and tested to facilitate treatment for members 
of the Armed Forces and veterans who served the United States in the 
Persian Gulf conflict and are stricken with unexplainable illness.

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

 Subtitle A--Amendments to General Contracting Authorities, Procedures, 
                             and Limitations

Sec. 801. Expansion of authority to enter into contracts crossing fiscal 
          years to all severable service contracts not exceeding a year.
Sec. 802. Vesting of title in the United States under contracts paid 
          under progress payment arrangements or similar arrangements.
Sec. 803. Restriction on undefinitized contract actions.
Sec. 804. Limitation and report on payment of restructuring costs under 
          defense contracts.
Sec. 805. Increased price limitation on purchases of right-hand drive 
          vehicles.
Sec. 806. Multiyear procurement contracts.
Sec. 807. Audit of procurement of military clothing and clothing-related 
          items by military installations in the United States.
Sec. 808. Limitation on allowability of compensation for certain 
          contractor personnel.
Sec. 809. Elimination of certification requirement for grants.
Sec. 810. Repeal of limitation on adjustment of shipbuilding contracts.
Sec. 811. Item-by-item and country-by-country waivers of domestic source 
          limitations.

               Subtitle B--Acquisition Assistance Programs

Sec. 821. One-year extension of pilot mentor-protege program.
Sec. 822. Test program for negotiation of comprehensive subcontracting 
          plans.

                  Subtitle C--Administrative Provisions

Sec. 831. Retention of expired funds during the pendency of contract 
          litigation.
Sec. 832. Protection of certain information from disclosure.
Sec. 833. Unit cost reports.
Sec. 834. Plan for providing contracting information to general public 
          and small businesses.
Sec. 835. Two-year extension of crediting of certain purchases toward 
          meeting subcontracting goals.

                        Subtitle D--Other Matters

Sec. 841. Repeal of certain acquisition requirements and reports
Sec. 842. Use of major range and test facility installations by 
          commercial entities.
Sec. 843. Requirement to develop and maintain list of firms not eligible 
          for defense contracts.
Sec. 844. Sense of Congress regarding allowability of costs of employee 
          stock ownership plans.
Sec. 845. Expansion of personnel eligible to participate in 
          demonstration project relating to acquisition workforce.
Sec. 846. Time for submission of annual report relating to Buy American 
          Act.
Sec. 847. Repeal of requirement for contractor guarantees on major 
          weapon systems.
Sec. 848. Requirements relating to micro-purchases.
Sec. 849. Promotion rate for officers in an acquisition corps.
Sec. 850. Use of electronic commerce in Federal procurement.
Sec. 851. Conformance of policy on performance based management of 
          civilian acquisition programs with policy established for 
          defense acquisition programs.
Sec. 852. Modification of process requirements for the solutions-based 
          contracting pilot program.
Sec. 853. Guidance and standards for defense acquisition workforce 
          training requirements.
Sec. 854. Study and report to Congress assessing dependence on foreign 
          sources for resistors and capacitors.
Sec. 855. Department of Defense and Federal Prison Industries joint 
          study.

Subtitle A--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

SEC. 801. EXPANSION OF AUTHORITY TO ENTER INTO CONTRACTS CROSSING 
              FISCAL YEARS TO ALL SEVERABLE SERVICE CONTRACTS NOT 
              EXCEEDING A YEAR.

    (a) Expanded Authority.--Section 2410a of title 10, United States 
Code, is amended to read as follows:

``Sec. 2410a. Severable service contracts for periods crossing fiscal 
            years

    ``(a) Authority.--The Secretary of Defense, the Secretary of a 
military department, or the Secretary of Transportation with respect to 
the Coast Guard when it is not operating as a service in the Navy, may 
enter into a contract for procurement of severable services for a 
period that begins in one fiscal year and ends in the next fiscal year 
if (without regard to any option to extend the period of the contract) 
the contract period does not exceed one year.
    ``(b) Obligation of Funds.--Funds made available for a fiscal year 
may be obligated for the total amount of a contract entered into under 
the authority of subsection (a).''.
    (b) Clerical Amendment.--The item relating to such section in the 
table of sections at the beginning of chapter 141 of such title is 
amended to read as follows:
``2410a. Severable service contracts for periods crossing fiscal 
          years.''.

SEC. 802. VESTING OF TITLE IN THE UNITED STATES UNDER CONTRACTS PAID 
              UNDER PROGRESS PAYMENT ARRANGEMENTS OR SIMILAR 
              ARRANGEMENTS.

    Section 2307 of title 10, United States Code, is amended--
        (1) by redesignating subsection (h) as subsection (i); and
        (2) by inserting after subsection (g) the following new 
    subsection (h):
    ``(h) Vesting of Title in the United States.--If a contract paid by 
a method authorized under subsection (a)(1) provides for title to 
property to vest in the United States, the title to the property shall 
vest in accordance with the terms of the contract, regardless of any 
security interest in the property that is asserted before or after the 
contract is entered into.''.

SEC. 803. RESTRICTION ON UNDEFINITIZED CONTRACT ACTIONS.

    (a) Applicability of Waiver Authority to Humanitarian or 
Peacekeeping Operations.--Section 2326(b)(4) of title 10, United States 
Code, is amended to read as follows:
    ``(4) The head of an agency may waive the provisions of this 
subsection with respect to a contract of that agency if that head of an 
agency determines that the waiver is necessary in order to support any 
of the following operations:
        ``(A) A contingency operation.
        ``(B) A humanitarian or peacekeeping operation.''.
    (b) Humanitarian or Peacekeeping Operation Defined.--Section 
2302(7) of such title is amended--
        (1) by striking out ``(7)(A)'' and inserting in lieu thereof 
    ``(7)''; and
        (2) by striking out ``(B) In subparagraph (A), the'' and 
    inserting in lieu thereof ``(8) The''.

SEC. 804. LIMITATION AND REPORT ON PAYMENT OF RESTRUCTURING COSTS UNDER 
              DEFENSE CONTRACTS.

    (a) In General.--(1) Chapter 137 of title 10, United States Code, 
is amended by inserting after section 2324 the following new section:

``Sec. 2325. Restructuring costs

    ``(a) Limitation on Payment of Restructuring Costs.--(1) The 
Secretary of Defense may not pay, under section 2324 of this title, a 
defense contractor for restructuring costs associated with a business 
combination of the contractor unless the Secretary determines in 
writing either--
        ``(A) that the amount of projected savings for the Department 
    of Defense associated with the restructuring will be at least twice 
    the amount of the costs allowed; or
        ``(B) that the amount of projected savings for the Department 
    of Defense associated with the restructuring will exceed the amount 
    of the costs allowed and that the business combination will result 
    in the preservation of a critical capability that otherwise might 
    be lost to the Department.
    ``(2) The Secretary may not delegate the authority to make a 
determination under paragraph (1) to an official of the Department of 
Defense below the level of an Assistant Secretary of Defense.
    ``(b) Report.--Not later than March 1 in each of 1998, 1999, 2000, 
2001, and 2002, the Secretary of Defense shall submit to Congress a 
report that contains, with respect to business combinations occurring 
on or after August 15, 1994, the following:
        ``(1) For each defense contractor to which the Secretary has 
    paid, under section 2324 of this title, restructuring costs 
    associated with a business combination, a summary of the following:
            ``(A) An estimate of the amount of savings for the 
        Department of Defense associated with the restructuring that 
        has been realized as of the end of the preceding calendar year.
            ``(B) An estimate of the amount of savings for the 
        Department of Defense associated with the restructuring that is 
        expected to be achieved on defense contracts.
        ``(2) An identification of any business combination for which 
    the Secretary has paid restructuring costs under section 2324 of 
    this title during the preceding calendar year and, for each such 
    business combination--
            ``(A) the supporting rationale for allowing such costs;
            ``(B) factual information associated with the determination 
        made under subsection (a) with respect to such costs; and
            ``(C) a discussion of whether the business combination 
        would have proceeded without the payment of restructuring costs 
        by the Secretary.
        ``(3) For business combinations of major defense contractors 
    that took place during the year preceding the year of the report--
            ``(A) an assessment of any potentially adverse effects that 
        the business combinations could have on competition for 
        Department of Defense contracts (including potential horizontal 
        effects, vertical effects, and organizational conflicts of 
        interest), the national technology and industrial base, or 
        innovation in the defense industry; and
            ``(B) the actions taken to mitigate the potentially adverse 
        effects.
    ``(c) Definition.--In this section, the term `business combination' 
includes a merger or acquisition.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2324 the 
following new item:
``2325. Restructuring costs.''.

    (b) GAO Reports.--(1) Not later than April 1, 1998, the Comptroller 
General shall--
        (A) in consultation with appropriate officials in the 
    Department of Defense--
            (i) identify major market areas affected by business 
        combinations of defense contractors since January 1, 1990; and
            (ii) develop a methodology for determining the savings from 
        business combinations of defense contractors on the prices paid 
        on particular defense contracts; and
        (B) submit to the congressional defense committees a report 
    describing, for each major market area identified pursuant to 
    subparagraph (A)(i), the changes in numbers of businesses competing 
    for major defense contracts since January 1, 1990.
    (2) Not later than December 1, 1998, the Comptroller General shall 
submit to the congressional defense committees a report containing the 
following:
        (A) Updated information on--
            (i) restructuring costs of business combinations paid by 
        the Department of Defense pursuant to certifications under 
        section 818 of the National Defense Authorization Act for 
        Fiscal Year 1995, and
            (ii) savings realized by the Department of Defense as a 
        result of the business combinations for which the payment of 
        restructuring costs was so certified.
        (B) An assessment of the savings from business combinations of 
    defense contractors on the prices paid on a meaningful sample of 
    defense contracts, determined in accordance with the methodology 
    developed pursuant to paragraph (1)(A)(ii), as well as a 
    description of the methodology.
        (C) Any recommendations that the Comptroller General considers 
    appropriate.
    (3) In this subsection, the term ``business combination'' has the 
meaning given that term in section 2325(c) of title 10, United States 
Code, as added by subsection (a).
    (c) Effective Date.--Section 2325(a) of title 10, United States 
Code, as added by subsection (a), shall apply with respect to business 
combinations that occur after the date of the enactment of this Act.
    (d) Repeal of Superseded Provisions.--Subsections (a) and (g)(3) of 
section 818 of the National Defense Authorization Act for Fiscal Year 
1995 (10 U.S.C. 2324 note) are repealed.

SEC. 805. INCREASED PRICE LIMITATION ON PURCHASES OF RIGHT-HAND DRIVE 
              VEHICLES.

    Section 2253(a)(2) of title 10, United States Code, is amended by 
striking out ``$12,000'' and inserting in lieu thereof ``$30,000''.

SEC. 806. MULTIYEAR PROCUREMENT CONTRACTS.

    (a) Requirement for Authorization by Law in Acts Other Than 
Appropriations Acts.--(1) Subsection (i) of section 2306b of title 10, 
United States Code, is amended by adding at the end the following new 
paragraph:
    ``(3) In the case of the Department of Defense, a multiyear 
contract in an amount equal to or greater than $500,000,000 may not be 
entered into for any fiscal year under this section unless the contract 
is specifically authorized by law in an Act other than an 
appropriations Act.''.
    (2) Paragraph (3) of section 2306b(i) of title 10, United States 
Code, as added by paragraph (1), shall not apply with respect to a 
contract authorized by law before the date of the enactment of this 
Act.
    (b) Codification of Annual Recurring Multiyear Procurement 
Requirements.--(1) Such section is further amended by adding at the end 
the following new subsection:
    ``(l) Various Additional Requirements With Respect to Multiyear 
Defense Contracts.--(1)(A) The head of an agency may not initiate a 
contract described in subparagraph (B) unless the congressional defense 
committees are notified of the proposed contract at least 30 days in 
advance of the award of the proposed contract.
    ``(B) Subparagraph (A) applies to the following contracts:
        ``(i) A multiyear contract--
            ``(I) that employs economic order quantity procurement in 
        excess of $20,000,000 in any one year of the contract; or
            ``(II) that includes an unfunded contingent liability in 
        excess of $20,000,000.
        ``(ii) Any contract for advance procurement leading to a 
    multiyear contract that employs economic order quantity procurement 
    in excess of $20,000,000 in any one year.
    ``(2) The head of an agency may not initiate a multiyear contract 
for which the economic order quantity advance procurement is not funded 
at least to the limits of the Government's liability.
    ``(3) The head of an agency may not initiate a multiyear 
procurement contract for any system (or component thereof) if the value 
of the multiyear contract would exceed $500,000,000 unless authority 
for the contract is specifically provided in an appropriations Act.
    ``(4) The head of an agency may not terminate a multiyear 
procurement contract until 10 days after the date on which notice of 
the proposed termination is provided to the congressional defense 
committees.
    ``(5) The execution of multiyear contracting authority shall 
require the use of a present value analysis to determine lowest cost 
compared to an annual procurement.
    ``(6) This subsection does not apply to the National Aeronautics 
and Space Administration or to the Coast Guard.
    ``(7) In this subsection, the term `congressional defense 
committees' means the following:
        ``(A) The Committee on Armed Services of the Senate and the 
    Subcommittee on Defense of the Committee on Appropriations of the 
    Senate.
        ``(B) The Committee on National Security of the House of 
    Representatives and the Subcommittee on National Security of the 
    Committee on Appropriations of the House of Representatives.''.
    (2) The amendment made by paragraph (1) shall take effect on 
October 1, 1998.
    (c) Technical and Conforming Amendments.--Such section is further 
amended as follows:
        (1) Subsection (a) is amended--
            (A) by striking out ``finds--'' in the matter preceding 
        paragraph (1) and inserting in lieu thereof ``finds each of the 
        following:'';
            (B) by capitalizing the initial letter of the first word in 
        each of paragraphs (1) through (6);
            (C) by striking out the semicolon at the end of paragraphs 
        (1) through (4) and inserting in lieu thereof a period; and
            (D) by striking out ``; and'' at the end of paragraph (5) 
        and inserting in lieu thereof a period.
        (2) Subsection (d)(1) is amended by striking out ``paragraph 
    (1)'' and inserting in lieu thereof ``subsection (a)''.
        (3) Subsection (i)(1) is amended by striking ``five-year'' and 
    inserting in lieu thereof ``future-years''.

SEC. 807. AUDIT OF PROCUREMENT OF MILITARY CLOTHING AND CLOTHING-
              RELATED ITEMS BY MILITARY INSTALLATIONS IN THE UNITED 
              STATES.

    (a) Audit Requirement.--Not later than September 30, 1998, the 
Inspector General of the Department of Defense shall perform an audit 
of purchases of military clothing and clothing-related items in excess 
of the micro-purchase threshold by military installations during fiscal 
years 1996 and 1997 to determine the extent to which such installations 
procured military clothing and clothing-related items in violation of 
the Buy American Act (41 U.S.C. 10a et seq.) during those fiscal years.
    (b) Installations To Be Audited.--The audit under subsection (a)--
        (1) shall include an audit of the procurement of military 
    clothing and clothing-related items by a military installation of 
    each of the Army, Navy, Air Force, and Marine Corps; and
        (2) shall not cover procurements of clothing and clothing-
    related items by the Defense Logistics Agency.
    (c) Definition.--The term ``micro-purchase threshold'' has the 
meaning provided by section 32(f) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 428(f)).
    (d) Report.--Not later than October 31, 1998, the Inspector General 
of the Department of Defense shall submit to Congress a report on the 
results of the audit performed under subsection (a).

SEC. 808. LIMITATION ON ALLOWABILITY OF COMPENSATION FOR CERTAIN 
              CONTRACTOR PERSONNEL.

    (a) Certain Compensation Not Allowable as Costs Under Defense 
Contracts.--(1) Subsection (e)(1) of section 2324 of title 10, United 
States Code, is amended by adding at the end the following:
        ``(P) Costs of compensation of senior executives of contractors 
    for a fiscal year, regardless of the contract funding source, to 
    the extent that such compensation exceeds the benchmark 
    compensation amount determined applicable for the fiscal year by 
    the Administrator for Federal Procurement Policy under section 39 
    of the Office of Federal Procurement Policy Act (41 U.S.C. 435).''.
    (2) Subsection (l) of such section is amended by adding at the end 
the following:
        ``(4) The term `compensation', for a year, means the total 
    amount of wages, salary, bonuses and deferred compensation for the 
    year, whether paid, earned, or otherwise accruing, as recorded in 
    an employer's cost accounting records for the year.
        ``(5) The term `senior executive', with respect to a 
    contractor, means--
            ``(A) the chief executive officer of the contractor or any 
        individual acting in a similar capacity for the contractor;
            ``(B) the four most highly compensated employees in 
        management positions of the contractor other than the chief 
        executive officer; and
            ``(C) in the case of a contractor that has components which 
        report directly to the contractor's headquarters, the five most 
        highly compensated employees in management positions at each 
        such component.
        ``(6) The term `fiscal year' means a fiscal year established by 
    a contractor for accounting purposes.''.
    (b) Certain Compensation Not Allowable as Costs Under Non-Defense 
Contracts.--(1) Subsection (e)(1) of section 306 of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 256) is 
amended by adding at the end the following:
        ``(P) Costs of compensation of senior executives of contractors 
    for a fiscal year, regardless of the contract funding source, to 
    the extent that such compensation exceeds the benchmark 
    compensation amount determined applicable for the fiscal year by 
    the Administrator for Federal Procurement Policy under section 39 
    of the Office of Federal Procurement Policy Act (41 U.S.C. 435).''.
    (2) Such section is further amended by adding at the end the 
following:
    ``(m) Other Definitions.--In this section:
        ``(1) The term `compensation', for a fiscal year, means the 
    total amount of wages, salary, bonuses and deferred compensation 
    for the fiscal year, whether paid, earned, or otherwise accruing, 
    as recorded in an employer's cost accounting records for the fiscal 
    year.
        ``(2) The term `senior executive', with respect to a 
    contractor, means--
            ``(A) the chief executive officer of the contractor or any 
        individual acting in a similar capacity for the contractor;
            ``(B) the four most highly compensated employees in 
        management positions of the contractor other than the chief 
        executive officer; and
            ``(C) in the case of a contractor that has components which 
        report directly to the contractor's headquarters, the five most 
        highly compensated individuals in management positions at each 
        such component.
        ``(3) The term `fiscal year' means a fiscal year established by 
    a contractor for accounting purposes.''.
    (c) Levels of Compensation Not Allowable.--(1) The Office of 
Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is amended by 
adding at the end the following:

``SEC. 39. LEVELS OF COMPENSATION OF CERTAIN CONTRACTOR PERSONNEL NOT 
              ALLOWABLE AS COSTS UNDER CERTAIN CONTRACTS.

    ``(a) Determination Required.--For purposes of section 
2324(e)(1)(P) of title 10, United States Code, and section 306(e)(1)(P) 
of the Federal Property and Administrative Services Act of 1949 (41 
U.S.C. 256(e)(1)(P)), the Administrator shall review commercially 
available surveys of executive compensation and, on the basis of the 
results of the review, determine a benchmark compensation amount to 
apply for each fiscal year. In making determinations under this 
subsection the Administrator shall consult with the Director of the 
Defense Contract Audit Agency and such other officials of executive 
agencies as the Administrator considers appropriate.
    ``(b) Benchmark Compensation Amount.--The benchmark compensation 
amount applicable for a fiscal year is the median amount of the 
compensation provided for all senior executives of all benchmark 
corporations for the most recent year for which data is available at 
the time the determination under subsection (a) is made.
    ``(c) Definitions.--In this section:
        ``(1) The term `compensation', for a fiscal year, means the 
    total amount of wages, salary, bonuses and deferred compensation 
    for the fiscal year, whether paid, earned, or otherwise accruing, 
    as recorded in an employer's cost accounting records for the fiscal 
    year.
        ``(2) The term `senior executive', with respect to a 
    corporation, means--
            ``(A) the chief executive officer of the corporation or any 
        individual acting in a similar capacity for the corporation;
            ``(B) the four most highly compensated employees in 
        management positions of the corporation other than the chief 
        executive officer; and
            ``(C) in the case of a corporation that has components 
        which report directly to the corporate headquarters, the five 
        most highly compensated individuals in management positions at 
        each such component.
        ``(3) The term `benchmark corporation', with respect to a 
    fiscal year, means a publicly-owned United States corporation that 
    has annual sales in excess of $50,000,000 for the fiscal year.
        ``(4) The term `publicly-owned United States corporation' means 
    a corporation organized under the laws of a State of the United 
    States, the District of Columbia, the Commonwealth of Puerto Rico, 
    or a possession of the United States the voting stock of which is 
    publicly traded.
        ``(5) The term `fiscal year' means a fiscal year established by 
    a contractor for accounting purposes.''.
    (2) The table of sections in section 1(b) of such Act is amended by 
adding at the end the following:

``Sec. 39. Levels of compensation of certain contractor personnel not 
          allowable as costs under certain contracts.''.

    (d) Regulations.--Regulations implementing the amendments made by 
this section shall be published in the Federal Register not later than 
the effective date of the amendments under subsection (e).
    (e) Effective Date.--The amendments made by this section shall--
        (1) take effect on the date that is 90 days after the date of 
    the enactment of this Act; and
        (2) apply with respect to costs of compensation incurred after 
    January 1, 1998, under covered contracts entered into before, on, 
    or after the date of the enactment of this Act.
    (f) Exclusive Applicability.--Notwithstanding any other provision 
of law, no other limitation in law on the allowability of costs of 
compensation of senior executives under covered contracts shall apply 
to such costs of compensation incurred after January 1, 1998.
    (g) Definitions.--In this section:
        (1) The term ``covered contract'' has the meaning given such 
    term in section 2324(l) of title 10, United States Code, and 
    section 306(l) of the Federal Property and Administrative Services 
    Act of 1949 (41 U.S.C. 256(l)).
        (2) The terms ``compensation'' and ``senior executive'' have 
    the meanings given such terms in section 2324(l) of title 10, 
    United States Code, and section 306(m) of the Federal Property and 
    Administrative Services Act of 1949.

SEC. 809. ELIMINATION OF CERTIFICATION REQUIREMENT FOR GRANTS.

    Section 5153 of the Drug-Free Workplace Act of 1988 (Public Law 
100-690; 102 Stat. 4306; 41 U.S.C. 702) is amended--
        (1) in subsection (a)--
            (A) in paragraph (1), by striking out ``has certified to 
        the granting agency that it will'' and inserting in lieu 
        thereof ``agrees to''; and
            (B) in paragraph (2), by striking out ``certifies to the 
        agency'' and inserting in lieu thereof ``agrees''; and
        (2) in subsection (b)(1)--
            (A) by striking out subparagraph (A);
            (B) by redesignating subparagraphs (B) and (C) as 
        subparagraphs (A) and (B), respectively; and
            (C) in subparagraph (A), as so redesignated, by striking 
        out ``such certification by failing to carry out''.

SEC. 810. REPEAL OF LIMITATION ON ADJUSTMENT OF SHIPBUILDING CONTRACTS.

    (a) Repeal.--(1) Section 2405 of title 10, United States Code, is 
repealed.
    (2) The table of sections at the beginning of chapter 141 of such 
title is amended by striking out the item relating to section 2405.
    (b) Applicability.--(1) Except as provided in paragraph (2), the 
repeal made by subsection (a) shall be effective with respect to 
claims, requests for equitable adjustment, and demands for payment 
under shipbuilding contracts that have been or are submitted before, 
on, or after the date of the enactment of this Act.
    (2) Section 2405 of title 10, United States Code, as in effect 
immediately before the date of the enactment of this Act, shall 
continue to apply to a contractor's claim, request for equitable 
adjustment, or demand for payment under a shipbuilding contract that 
was submitted before such date if--
        (A) a contracting officer denied the claim, request, or demand, 
    and the period for appealing the decision to a court or board under 
    the Contract Disputes Act of 1978 expired before such date;
        (B) a court or board of contract appeals considering the claim, 
    request, or demand (including any appeal of a decision of a 
    contracting officer to deny the claim, request, or demand) denied 
    or dismissed the claim, request, or demand (or the appeal), and the 
    action of the court or board became final and unappealable before 
    such date; or
        (C) the contractor released or releases the claim, request, or 
    demand.

SEC. 811. ITEM-BY-ITEM AND COUNTRY-BY-COUNTRY WAIVERS OF DOMESTIC 
              SOURCE LIMITATIONS.

    (a) Item-by-Item and Country-by-Country Implementation of Certain 
Waiver Authority.--Section 2534 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(i) Implementation of Certain Waiver Authority.--(1) The 
Secretary of Defense may exercise the waiver authority described in 
paragraph (2) only if the waiver is made for a particular item listed 
in subsection (a) and for a particular foreign country.
    ``(2) This subsection applies to the waiver authority provided by 
subsection (d) on the basis of the applicability of paragraph (2) or 
(3) of that subsection.
    ``(3) The waiver authority described in paragraph (2) may not be 
delegated below the Under Secretary of Defense for Acquisition and 
Technology.
    ``(4) At least 15 days before the effective date of any waiver made 
under the waiver authority described in paragraph (2), the Secretary 
shall publish in the Federal Register and submit to the congressional 
defense committees a notice of the determination to exercise the waiver 
authority.
    ``(5) Any waiver made by the Secretary under the waiver authority 
described in paragraph (2) shall be in effect for a period not greater 
than one year, as determined by the Secretary.''.
    (b) Effective Date.--Subsection (i) of section 2534 of such title, 
as added by subsection (a), shall apply with respect to--
        (1) contracts and subcontracts entered into on or after the 
    date of the enactment of this Act; and
        (2) options for the procurement of items that are exercised 
    after such date under contracts that are entered into before such 
    date if the option prices are adjusted for any reason other than 
    the application of a waiver granted under subsection (d) of such 
    section 2534, on the basis of the applicability of paragraph (2) or 
    (3) of that subsection.

              Subtitle B--Acquisition Assistance Programs

SEC. 821. ONE-YEAR EXTENSION OF PILOT MENTOR-PROTEGE PROGRAM.

    (a) One-Year Extension of Pilot Mentor-Protege Program.--Section 
831(j) of the National Defense Authorization Act for Fiscal Year 1991 
(10 U.S.C. 2302 note) is amended--
        (1) in paragraph (1), by striking out ``1998'' and inserting in 
    lieu thereof ``1999'';
        (2) in paragraph (2), by striking out ``1999'' and inserting in 
    lieu thereof ``2000''; and
        (3) in paragraph (3), by striking out ``1999'' and inserting in 
    lieu thereof ``2000''.
    (b) Study on Implementation of Pilot Mentor-Protege Program.--(1) 
The Comptroller General shall conduct a study on the implementation of 
the Mentor-Protege Program established under section 831 of the 
National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 2302 
note) and the extent to which the program is achieving the purposes 
established under that section.
    (2) The study also shall include the following:
        (A) A review of the manner in which funds for the program have 
    been obligated.
        (B) An identification and assessment of the average amount 
    spent by the Department of Defense on individual mentor-protege 
    agreements and the correlation between levels of funding and the 
    business development of the protege firms.
        (C) An evaluation of the effectiveness of the incentives 
    provided to mentor firms to participate in the program.
        (D) An assessment of the success of the Mentor-Protege Program 
    in enhancing the business competitiveness and financial 
    independence of protege firms.
    (3) The Comptroller General 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 not later 
than March 31, 1998.

SEC. 822. TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE SUBCONTRACTING 
              PLANS.

    (a) Content of Subcontracting Plans.--Subsection (b)(2) of section 
834 of the National Defense Authorization Act for Fiscal Years 1990 and 
1991 (Public Law 101-189; 15 U.S.C. 637 note) is amended--
        (1) by striking out ``plan--'' and inserting in lieu thereof 
    ``plan of a contractor--'';
        (2) by striking out subparagraph (A);
        (3) by redesignating subparagraph (B) as subparagraph (A) and 
    by striking out the period at the end of such subparagraph and 
    inserting in lieu thereof ``; and''; and
        (4) by adding at the end the following:
        ``(B) shall cover each Department of Defense contract that is 
    entered into by the contractor and each subcontract that is entered 
    into by the contractor as the subcontractor under a Department of 
    Defense contract.''.
    (b) Extension of Program.--Subsection (e) of such section is 
amended by striking out ``September 30, 1998'' in the second sentence 
and inserting in lieu thereof ``September 30, 2000.''.

                 Subtitle C--Administrative Provisions

SEC. 831. RETENTION OF EXPIRED FUNDS DURING THE PENDENCY OF CONTRACT 
              LITIGATION.

    (a) In General.--Chapter 141 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 2410m. Retention of amounts collected from contractor during the 
            pendency of contract dispute

    ``(a) Retention of Funds.--Notwithstanding sections 1552(a) and 
3302(b) of title 31, any amount, including interest, collected from a 
contractor as a result of a claim made by a military department or 
Defense Agency under the Contract Disputes Act of 1978 (41 U.S.C. 601 
et seq.), shall remain available in accordance with this section to 
pay--
        ``(1) any settlement of the claim by the parties;
        ``(2) any judgment rendered in the contractor's favor on an 
    appeal of the decision on that claim to the Armed Services Board of 
    Contract Appeals under section 7 of such Act (41 U.S.C. 606); or
        ``(3) any judgment rendered in the contractor's favor in an 
    action on that claim in a court of the United States.
    ``(b) Period of Availability.--(1) The period of availability of an 
amount under subsection (a), in connection with a claim--
        ``(A) expires 180 days after the expiration of the period for 
    bringing an action on that claim in the United States Court of 
    Federal Claims under section 10(a) of the Contract Disputes Act of 
    1978 (41 U.S.C. 609(a)) if, within that 180-day period--
            ``(i) no appeal on the claim is commenced at the Armed 
        Services Board of Contract Appeals under section 7 of such Act; 
        and
            ``(ii) no action on the claim is commenced in a court of 
        the United States; or
        ``(B) if not expiring under subparagraph (A), expires--
            ``(i) in the case of a settlement of the claim, 180 days 
        after the date of the settlement; or
            ``(ii) in the case of a judgment rendered on the claim in 
        an appeal to the Armed Services Board of Contract Appeals under 
        section 7 of the Contract Disputes Act of 1978 or an action in 
        a court of the United States, 180 days after the date on which 
        the judgment becomes final and not appealable.
    ``(2) While available under this section, an amount may be 
obligated or expended only for a purpose described in subsection (a).
    ``(3) Upon the expiration of the period of availability of an 
amount under paragraph (1), the amount shall be covered into the 
Treasury as miscellaneous receipts.
    ``(c) Reporting Requirement.--Each year, the Under Secretary of 
Defense (Comptroller) shall submit to Congress a report on the amounts, 
if any, that are available for obligation pursuant to this section. The 
report shall include, at a minimum, the following:
        ``(1) The total amount available for obligation.
        ``(2) The total amount collected from contractors during the 
    year preceding the year in which the report is submitted.
        ``(3) The total amount disbursed in such preceding year and a 
    description of the purpose for each disbursement.
        ``(4) The total amount returned to the Treasury in such 
    preceding year.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 141 of title 10, United States Code, is amended by adding at 
the end the following new item:
``2410m. Retention of amounts collected from contractor during the 
          pendency of contract dispute.''.

SEC. 832. PROTECTION OF CERTAIN INFORMATION FROM DISCLOSURE.

    Section 2371 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(i) Protection of Certain Information From Disclosure.--(1) 
Disclosure of information described in paragraph (2) is not required, 
and may not be compelled, under section 552 of title 5 for five years 
after the date on which the information is received by the Department 
of Defense.
    ``(2)(A) Paragraph (1) applies to information described in 
subparagraph (B) that is in the records of the Department of Defense if 
the information was submitted to the Department in a competitive or 
noncompetitive process having the potential for resulting in an award, 
to the party submitting the information, of a cooperative agreement 
that includes a clause described in subsection (d) or another 
transaction authorized by subsection (a).
    ``(B) The information referred to in subparagraph (A) is the 
following:
        ``(i) A proposal, proposal abstract, and supporting documents.
        ``(ii) A business plan submitted on a confidential basis.
        ``(iii) Technical information submitted on a confidential 
    basis.''.

SEC. 833. UNIT COST REPORTS.

    (a) Immediate Report Required Only for Previously Unreported 
Increased Costs.--Subsection (c) of section 2433 of title 10, United 
States Code, is amended by striking out ``during the current fiscal 
year (other than the last quarterly unit cost report under subsection 
(b) for the preceding fiscal year)'' in the matter following paragraph 
(3).
    (b) Immediate Report Not Required for Cost Variances or Schedule 
Variances of Major Contracts.--Subsection (c) of such section is 
further amended--
        (1) by inserting ``or'' at the end of paragraph (1);
        (2) by striking out ``or'' at the end of paragraph (2); and
        (3) by striking out paragraph (3).
    (c) Congressional Notification of Increased Cost Not Conditioned on 
Discovery Since Beginning of Fiscal Year.--Subsection (d)(3) of such 
section is amended by striking out ``(for the first time since the 
beginning of the current fiscal year)'' in the first sentence.

SEC. 834. PLAN FOR PROVIDING CONTRACTING INFORMATION TO GENERAL PUBLIC 
              AND SMALL BUSINESSES.

    (a) Requirement for Plan.--The Secretary of Defense shall develop a 
plan for improving the responsiveness of the Department of Defense to 
persons from the general public and small businesses seeking 
information on how to pursue contracting and technology development 
opportunities with the department. The plan shall include an assessment 
and recommendation on the designation of a central point of contact in 
the department to provide such information.
    (b) Submission.--Not later than March 31, 1998, the Secretary shall 
submit the plan developed under subsection (a) to the Committee on 
Armed Services of the Senate and the Committee on National Security of 
the House of Representatives.

SEC. 835. TWO-YEAR EXTENSION OF CREDITING OF CERTAIN PURCHASES TOWARD 
              MEETING SUBCONTRACTING GOALS.

    Section 2410d(c) of title 10, United States Code, is amended, 
effective as of September 30, 1997, by striking out ``September 30, 
1997'' and inserting in lieu thereof ``September 30, 1999''.

                       Subtitle D--Other Matters

SEC. 841. REPEAL OF CERTAIN ACQUISITION REQUIREMENTS AND REPORTS

    (a) Repeal of Reporting Requirement for Nonmajor Acquisition 
Programs.--Section 2220(b) of title 10, United States Code, is amended 
by striking out ``and nonmajor'' in the first sentence.
    (b) Repeal of Additional Approval Requirement Under Competition 
Exception for International Agreements.--Section 2304(f)(2)(E) of title 
10, United States Code, is amended by striking out ``and such document 
is approved by the competition advocate for the procuring activity''.
    (c) Content of Limited Selected Acquisition Reports.--Section 
2432(h)(2) of title 10, United States Code, is amended--
        (1) by striking out subparagraph (D); and
        (2) by redesignating subparagraphs (E) and (F) as subparagraphs 
    (D) and (E), respectively.
    (d) Repeal of Report Relating to Procurement Regulations.--Section 
25 of the Office of Federal Procurement Policy Act (41 U.S.C. 421) is 
amended by striking out subsection (g).

SEC. 842. USE OF MAJOR RANGE AND TEST FACILITY INSTALLATIONS BY 
              COMMERCIAL ENTITIES.

    (a) Extension of Authority.--Subsection (g) of section 2681 of 
title 10, United States Code, is amended by striking out ``1998'' and 
inserting in lieu thereof ``2002''.
    (b) Revised Reporting Requirement.--Subsection (h) of such section 
is amended to read as follows:
    ``(h) 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 identifying existing and proposed procedures to ensure that 
the use of Major Range and Test Facility Installations by commercial 
entities does not compete with private sector test and evaluation 
services.''.

SEC. 843. REQUIREMENT TO DEVELOP AND MAINTAIN LIST OF FIRMS NOT 
              ELIGIBLE FOR DEFENSE CONTRACTS.

    Section 2327 of title 10, United States Code, is amended--
        (1) by redesignating subsections (d) and (e) as subsections (f) 
    and (g), respectively; and
        (2) by inserting after subsection (c) the following new 
    subsections:
    ``(d) List of Firms Subject to Prohibition.--(1) The Secretary of 
Defense shall develop and maintain a list of all firms and subsidiaries 
of firms that the Secretary has identified as being subject to the 
prohibition in subsection (b).
    ``(2)(A) A person may request the Secretary to include on the list 
maintained under paragraph (1) any firm or subsidiary of a firm that 
the person believes to be owned or controlled by a foreign government 
described in subsection (b)(2). Upon receipt of such a request, the 
Secretary shall determine whether the conditions in paragraphs (1) and 
(2) of subsection (b) exist in the case of that firm or subsidiary. If 
the Secretary determines that such conditions do exist, the Secretary 
shall include the firm or subsidiary on the list.
    ``(B) A firm or subsidiary of a firm included on the list may 
request the Secretary to remove such firm or subsidiary from the list 
on the basis that it has been erroneously included on the list or its 
ownership circumstances have significantly changed. Upon receipt of 
such a request, the Secretary shall determine whether the conditions in 
paragraphs (1) and (2) of subsection (b) exist in the case of that firm 
or subsidiary. If the Secretary determines that such conditions do not 
exist, the Secretary shall remove the firm or subsidiary from the list.
    ``(C) The Secretary shall establish procedures to carry out this 
paragraph.
    ``(3) The head of an agency shall prohibit each firm or subsidiary 
of a firm awarded a contract by the agency from entering into a 
subcontract under that contract in an amount in excess of $25,000 with 
a firm or subsidiary included on the list maintained under paragraph 
(1) unless there is a compelling reason to do so. In the case of any 
subcontract requiring consent by the head of an agency, the head of the 
agency shall not consent to the award of the subcontract to a firm or 
subsidiary included on such list unless there is a compelling reason 
for such approval.
    ``(e) Distribution of List.--The Administrator of General Services 
shall ensure that the list developed and maintained under subsection 
(d) is made available to Federal agencies and the public in the same 
manner and to the same extent as the list of suspended and debarred 
contractors compiled pursuant to subpart 9.4 of the Federal Acquisition 
Regulation.''.

SEC. 844. SENSE OF CONGRESS REGARDING ALLOWABILITY OF COSTS OF EMPLOYEE 
              STOCK OWNERSHIP PLANS.

    It is the sense of Congress that the Secretary of Defense should 
not disallow, under Department of Defense contracts, the following 
costs:
        (1) Interest costs associated with deferred compensation 
    employee stock ownership plans that were incurred before January 1, 
    1994.
        (2) Costs related to employee stock ownership plan (ESOP) debt, 
    control premiums, or marketability discounts associated with the 
    valuation of ESOP stock of closely held companies that were 
    incurred before January 1, 1995.

SEC. 845. EXPANSION OF PERSONNEL ELIGIBLE TO PARTICIPATE IN 
              DEMONSTRATION PROJECT RELATING TO ACQUISITION WORKFORCE.

    (a) Covered Personnel.--(1) Subsection (a) of section 4308 of the 
National Defense Authorization Act for Fiscal Year 1996 (Public Law 
104-106; 10 U.S.C. 1701 note) is amended by adding before the period at 
the end the following: ``and supporting personnel assigned to work 
directly with the acquisition workforce''.
    (2) Subsection (b)(3)(A) of such section is amended by inserting 
before the semicolon the following: ``or involves a team of personnel 
more than half of which consists of members of the acquisition 
workforce and the remainder of which consists of supporting personnel 
assigned to work directly with the acquisition workforce''.
    (b) Commencement of Project.--Subsection (b)(3)(B) of such section 
is amended by striking out ``this Act'' and inserting in lieu thereof 
``the National Defense Authorization Act for Fiscal Year 1998''.
    (c) Limitation on Number of Participants.--Such section is further 
amended by adding at the end the following:
    ``(d) Limitation on Number of Participants.--The total number of 
persons who may participate in the demonstration project under this 
section may not exceed 95,000.''.

SEC. 846. TIME FOR SUBMISSION OF ANNUAL REPORT RELATING TO BUY AMERICAN 
              ACT.

    Section 827 of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 110 Stat. 2611; 41 U.S.C. 10b-3) is 
amended by striking out ``120 days'' and inserting in lieu thereof ``90 
days''.

SEC. 847. REPEAL OF REQUIREMENT FOR CONTRACTOR GUARANTEES ON MAJOR 
              WEAPON SYSTEMS.

    (a) Repeal.--Section 2403 of title 10, United States Code, is 
repealed.
    (b) Clerical and Conforming Amendments.--(1) The table of sections 
at the beginning of chapter 141 of such title is amended by striking 
out the item relating to section 2403.
    (2) Section 803 of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2604; 10 U.S.C. 2430 
note) is amended--
        (A) in subsection (a), by striking out ``2403,'';
        (B) by striking out subsection (c); and
        (C) by redesignating subsection (d) as subsection (c).

SEC. 848. REQUIREMENTS RELATING TO MICRO-PURCHASES.

    (a) Requirement.--(1) Not later than October 1, 1998, at least 60 
percent of all eligible purchases made by the Department of Defense for 
an amount less than the micro-purchase threshold shall be made through 
streamlined micro-purchase procedures.
    (2) Not later than October 1, 2000, at least 90 percent of all 
eligible purchases made by the Department of Defense for an amount less 
than the micro-purchase threshold shall be made through streamlined 
micro-purchase procedures.
    (b) Eligible Purchases.--The Secretary of Defense shall establish 
which purchases are eligible for purposes of subsection (a). In 
establishing which purchases are eligible, the Secretary may exclude 
those categories of purchases determined not to be appropriate or 
practicable for streamlined micro-purchase procedures.
    (c) Plan.--Not later than March 1, 1998, the Secretary of Defense 
shall provide to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a plan 
to implement this section.
    (d) Report.--Not later than March 1 in each of the years 1999, 
2000, and 2001, the Secretary of Defense shall submit to the 
congressional defense committees a report on the implementation of this 
section. Each report shall include--
        (A) the total dollar amount of all Department of Defense 
    purchases for an amount less than the micro-purchase threshold in 
    the fiscal year preceding the year in which the report is 
    submitted;
        (B) the total dollar amount of such purchases that were 
    considered to be eligible purchases;
        (C) the total amount of such eligible purchases that were made 
    through a streamlined micro-purchase method; and
        (D) a description of the categories of purchases excluded from 
    the definition of eligible purchases established under subsection 
    (b).
    (e) Definitions.--In this section:
        (1) The term ``micro-purchase threshold'' has the meaning 
    provided in section 32 of the Office of Federal Procurement Policy 
    Act (41 U.S.C. 428).
        (2) The term ``streamlined micro-purchase procedures'' means 
    procedures providing for the use of the Government-wide commercial 
    purchase card or any other method for carrying out micro-purchases 
    that the Secretary of Defense prescribes in the regulations 
    implementing this subsection.

SEC. 849. PROMOTION RATE FOR OFFICERS IN AN ACQUISITION CORPS.

    (a) Review of Acquisition Corps Promotion Selections.--Upon the 
approval of the President or his designee of the report of a selection 
board convened under section 611(a) of title 10, United States Code, 
which considered members of an Acquisition Corps of a military 
department for promotion to a grade above O-4, the Secretary of the 
military department shall submit a copy of the report to the Under 
Secretary of Defense for Acquisition and Technology for review.
    (b) Reporting Requirement.--Not later than January 31 of each year, 
the Under Secretary of Defense for Acquisition and Technology 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 the Under Secretary's assessment of the extent to which each 
military department is complying with the requirement set forth in 
section 1731(b) of title 10, United States Code.
    (c) Termination of Requirements.--This section shall cease to be 
effective on October 1, 2000.

SEC. 850. USE OF ELECTRONIC COMMERCE IN FEDERAL PROCUREMENT.

    (a) Policy.--Section 30 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 426) is amended to read as follows:

``SEC. 30. USE OF ELECTRONIC COMMERCE IN FEDERAL PROCUREMENT.

    ``(a) In General.--The head of each executive agency, after 
consulting with the Administrator, shall establish, maintain, and use, 
to the maximum extent that is practicable and cost-effective, 
procedures and processes that employ electronic commerce in the conduct 
and administration of its procurement system.
    ``(b) Applicable Standards.--In conducting electronic commerce, the 
head of an agency shall apply nationally and internationally recognized 
standards that broaden interoperability and ease the electronic 
interchange of information.
    ``(c) Agency Procedures.--The head of each executive agency shall 
ensure that systems, technologies, procedures, and processes 
established pursuant to this section--
        ``(1) are implemented with uniformity throughout the agency, to 
    the extent practicable;
        ``(2) are implemented only after granting due consideration to 
    the use or partial use, as appropriate, of existing electronic 
    commerce and electronic data interchange systems and 
    infrastructures such the Federal acquisition computer network 
    architecture known as FACNET;
        ``(3) facilitate access to Federal Government procurement 
    opportunities, including opportunities for small business concerns, 
    socially and economically disadvantaged small business concerns, 
    and business concerns owned predominantly by women; and
        ``(4) ensure that any notice of agency requirements or agency 
    solicitation for contract opportunities is provided in a form that 
    allows convenient and universal user access through a single, 
    Government-wide point of entry.
    ``(d) Implementation.--The Administrator shall, in carrying out the 
requirements of this section--
        ``(1) issue policies to promote, to the maximum extent 
    practicable, uniform implementation of this section by executive 
    agencies, with due regard for differences in program requirements 
    among agencies that may require departures from uniform procedures 
    and processes in appropriate cases, when warranted because of the 
    agency mission;
        ``(2) ensure that the head of each executive agency complies 
    with the requirements of subsection (c) with respect to the agency 
    systems, technologies, procedures, and processes established 
    pursuant to this section; and
        ``(3) consult with the heads of appropriate Federal agencies 
    with applicable technical and functional expertise, including the 
    Office of Information and Regulatory Affairs, the National 
    Institute of Standards and Technology, the General Services 
    Administration, and the Department of Defense.
    ``(e) Report.--Not later than March 1, 1998, and every year 
afterward through 2003, the Administrator shall submit to Congress a 
report setting forth in detail the progress made in implementing the 
requirements of this section. The report shall include the following:
        ``(1) A strategic plan for the implementation of a Government-
    wide electronic commerce capability.
        ``(2) An agency-by-agency summary of implementation of the 
    requirements of subsection (c), including timetables, as 
    appropriate, addressing when individual agencies will come into 
    full compliance.
        ``(3) A specific assessment of compliance with the requirement 
    in subsection (c) to provide universal public access through a 
    single, Government-wide point of entry.
        ``(4) Beginning with the report submitted on March 1, 1999, an 
    agency-by-agency summary of the volume and dollar value of 
    transactions that were conducted using electronic commerce methods 
    during the previous calendar year.
        ``(5) A discussion of possible incremental changes to the 
    electronic commerce capability referred to in subsection (c)(4) to 
    increase the level of government contract information available to 
    the private sector, including an assessment of the advisability of 
    including contract award information in the electronic commerce 
    functional standard.
    ``(f) Electronic Commerce Defined.--For the purposes of this 
section, the term `electronic commerce' means electronic techniques for 
accomplishing business transactions, including electronic mail or 
messaging, World Wide Web technology, electronic bulletin boards, 
purchase cards, electronic funds transfers, and electronic data 
interchange.''.
    (b) Repeal of Requirements for Implementation of FACNET 
Capability.--Section 30A of the Office of Federal Procurement Policy 
Act (41 U.S.C. 426a) is repealed.
    (c) Repeal of Requirement for GAO Report.--Section 9004 of the 
Federal Acquisition Streamlining Act of 1994 (41 U.S.C. 426a note) is 
repealed.
    (d) Repeal of Condition for Use of Simplified Acquisition 
Procedures.--Section 31 of the Office of Federal Procurement Policy Act 
(41 U.S.C. 427) is amended--
        (1) by striking out subsection (e); and
        (2) by redesignating subsections (f) and (g) as subsections (e) 
    and (f), respectively.
    (e) Amendments to Procurement Notice Requirements.--(1) Section 
8(g)(1) of the Small Business Act (15 U.S.C. 637(g)(1)) is amended--
        (A) by striking out subparagraphs (A) and (B);
        (B) by redesignating subparagraphs (C), (D), (E), (F), (G), and 
    (H) as subparagraphs (B), (C), (D), (E), (F), and (G), 
    respectively; and
        (C) by inserting before subparagraph (B), as so redesignated, 
    the following new subparagraph (A):
        ``(A) the proposed procurement is for an amount not greater 
    than the simplified acquisition threshold and is to be conducted 
    by--
            ``(i) using widespread electronic public notice of the 
        solicitation in a form that allows convenient and universal 
        user access through a single, Government-wide point of entry; 
        and
            ``(ii) permitting the public to respond to the solicitation 
        electronically.''.
    (2) Section 18(c)(1) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 416(c)(1)) is amended--
        (A) by striking out subparagraphs (A) and (B);
        (B) by redesignating subparagraphs (C), (D), (E), (F), (G), and 
    (H) as subparagraphs (B), (C), (D), (E), (F), and (G), 
    respectively; and
        (C) by inserting before subparagraph (B), as so redesignated, 
    the following new subparagraph (A):
        ``(A) the proposed procurement is for an amount not greater 
    than the simplified acquisition threshold and is to be conducted 
    by--
            ``(i) using widespread electronic public notice of the 
        solicitation in a form that allows convenient and universal 
        user access through a single, Government-wide point of entry; 
        and
            ``(ii) permitting the public to respond to the solicitation 
        electronically.''.
    (3) The amendments made by paragraphs (1) and (2) shall be 
implemented in a manner consistent with any applicable international 
agreements.
    (f) Conforming and Technical Amendments.--(1) Section 5061 of the 
Federal Acquisition Streamlining Act of 1994 (41 U.S.C. 413 note) is 
amended--
        (A) in subsection (c)(4)--
            (i) by striking out ``the Federal acquisition computer 
        network (`FACNET')'' and inserting in lieu thereof ``the 
        electronic commerce''; and
            (ii) by striking out ``(as added by section 9001)''; and
        (B) in subsection (e)(9)(A), by striking out ``, or by 
    dissemination through FACNET,''.
    (2) Section 5401 of the Clinger-Cohen Act of 1996 (divisions D and 
E of Public Law 104-106; 40 U.S.C. 1501) is amended--
        (A) in subsection (a)--
            (i) by striking out ``through the Federal Acquisition 
        Computer Network (in this section referred to as `FACNET')''; 
        and
            (ii) by striking out the last sentence;
        (B) in subsection (b)--
            (i) by striking out ``Additional FACNET Functions.--'' and 
        all that follows through ``(41 U.S.C. 426(b)), the FACNET 
        architecture'' and inserting in lieu thereof ``Functions.--(1) 
        The system for providing on-line computer access''; and
            (ii) in paragraph (2), by striking out ``The FACNET 
        architecture'' and inserting in lieu thereof ``The system for 
        providing on-line computer access'';
        (C) in subsection (c)(1), by striking out ``the FACNET 
    architecture'' and inserting in lieu thereof ``the system for 
    providing on-line computer access''; and
        (D) by striking out subsection (d).
    (3)(A) Section 2302c of title 10, United States Code, is amended to 
read as follows:

``Sec. 2302c. Implementation of electronic commerce capability

    ``(a) Implementation of Electronic Commerce Capability.--(1) The 
head of each agency named in paragraphs (1), (5), and (6) shall 
implement the electronic commerce capability required by section 30 of 
the Office of Federal Procurement Policy Act (41 U.S.C. 426).
    ``(2) The Secretary of Defense shall act through the Under 
Secretary of Defense for Acquisition and Technology to implement the 
capability within the Department of Defense.
    ``(3) In implementing the electronic commerce capability pursuant 
to paragraph (1), the head of an agency referred to in paragraph (1) 
shall consult with the Administrator for Federal Procurement Policy.
    ``(b) Designation of Agency Official.--The head of each agency 
named in paragraph (5) or (6) of section 2303 of this title shall 
designate a program manager to implement the electronic commerce 
capability for that agency. The program manager shall report directly 
to an official at a level not lower than the senior procurement 
executive designated for the agency under section 16(3) of the Office 
of Federal Procurement Policy Act (41 U.S.C. 414(3)).''.
    (B) Section 2304(g)(4) of such title is amended by striking out 
``31(g)'' and inserting in lieu thereof ``31(f)''.
    (4)(A) Section 302C of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 252c) is amended to read as follows:

``SEC. 302C. IMPLEMENTATION OF ELECTRONIC COMMERCE CAPABILITY.

    ``(a) Implementation of Electronic Commerce Capability.--(1) The 
head of each executive agency shall implement the electronic commerce 
capability required by section 30 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 426).
    ``(2) In implementing the electronic commerce capability pursuant 
to paragraph (1), the head of an executive agency shall consult with 
the Administrator for Federal Procurement Policy.
    ``(b) Designation of Agency Official.--The head of each executive 
agency shall designate a program manager to implement the electronic 
commerce capability for that agency. The program manager shall report 
directly to an official at a level not lower than the senior 
procurement executive designated for the executive agency under section 
16(3) of the Office of Federal Procurement Policy Act (41 U.S.C. 
414(3)).''.
    (B) Section 303(g)(5) of the Federal Property and Administrative 
Services Act (41 U.S.C. 253(g)(5)) is amended by striking out ``31(g)'' 
and inserting in lieu thereof ``31(f)''.
    (g) Effective Date.--(1) Except as provided in paragraph (2), the 
amendments made by this section shall take effect 180 days after the 
date of the enactment of this Act.
    (2) The repeal made by subsection (c) of this section shall take 
effect on the date of the enactment of this Act.

SEC. 851. CONFORMANCE OF POLICY ON PERFORMANCE BASED MANAGEMENT OF 
              CIVILIAN ACQUISITION PROGRAMS WITH POLICY ESTABLISHED FOR 
              DEFENSE ACQUISITION PROGRAMS.

    (a) Performance Goals.--Section 313(a) of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 263(a)) is amended to 
read as follows:
    ``(a) Congressional Policy.--It is the policy of Congress that the 
head of each executive agency should achieve, on average, 90 percent of 
the cost, performance, and schedule goals established for major 
acquisition programs of the agency.''.
    (b) Conforming Amendment to Reporting Requirement.--Section 6(k) of 
the Office of Federal Procurement Policy Act (41 U.S.C. 405(k)) is 
amended by inserting ``regarding major acquisitions that is'' in the 
first sentence after ``policy''.

SEC. 852. MODIFICATION OF PROCESS REQUIREMENTS FOR THE SOLUTIONS-BASED 
              CONTRACTING PILOT PROGRAM.

    (a) Source Selection.--Paragraph (9) of section 5312(c) of the 
Clinger-Cohen Act of 1996 (divisions D and E of Public Law 104-106; 40 
U.S.C. 1492(c)) is amended--
        (1) in subparagraph (A), by striking out ``, and ranking of 
    alternative sources,'' and inserting in lieu thereof ``or 
    sources,'';
        (2) in subparagraph (B)--
            (A) in the matter preceding clause (i), by inserting ``(or 
        a longer period, if approved by the Administrator)'' after ``30 
        to 60 days'';
            (B) in clause (i), by inserting ``or sources'' after 
        ``source''; and
            (C) in clause (ii), by striking out ``that source'' and 
        inserting in lieu thereof ``the source whose offer is 
        determined to be most advantageous to the Government''; and
        (3) in subparagraph (C), by striking out ``with alternative 
    sources (in the order ranked)''.
    (b) Time Management Discipline.--Paragraph (12) of such section is 
amended by inserting before the period at the end the following: ``, 
except that the Administrator may approve the application of a longer 
standard period''.

SEC. 853. GUIDANCE AND STANDARDS FOR DEFENSE ACQUISITION WORKFORCE 
              TRAINING REQUIREMENTS.

    The Secretary of Defense shall develop appropriate guidance and 
standards to ensure that the Department of Defense will continue, where 
appropriate and cost-effective, to enter into contracts for the 
training requirements of sections 1723, 1724, and 1735 of title 10, 
United States Code, while maintaining appropriate control over the 
content and quality of such training.

SEC. 854. STUDY AND REPORT TO CONGRESS ASSESSING DEPENDENCE ON FOREIGN 
              SOURCES FOR RESISTORS AND CAPACITORS.

    (a) Study.--The Secretary of Defense shall conduct a study of the 
capacitor and resistor industries in the United States and the degree 
of United States dependence on foreign sources for resistors and 
capacitors.
    (b) Report.--Not later than May 1, 1998, the Secretary shall submit 
to Congress a report on the results of the study under subsection (a). 
The report shall include the following:
        (1) An assessment of the industrial base for the production of 
    resistors and capacitors within the United States and a projection 
    of any changes in that base that are likely to occur after the 
    implementation of relevant tariff reductions required by the 
    Information Technology Agreement entered into at the World Trade 
    Organization Ministerial in Singapore in December 1996.
        (2) An assessment of the level of dependence on foreign sources 
    for procurement of resistors and capacitors and a projection of the 
    level of dependence on foreign sources that is likely to occur 
    after the implementation of relevant tariff reductions required by 
    the Information Technology Agreement.
        (3) The implications for the national security of the United 
    States of the projections reported under paragraphs (1) and (2).
        (4) Recommendations for appropriate changes, if any, in defense 
    procurement policies or other Federal policies based on such 
    implications.

SEC. 855. DEPARTMENT OF DEFENSE AND FEDERAL PRISON INDUSTRIES JOINT 
              STUDY.

    (a) Study of Existing Procurement Procedures.--The Secretary of 
Defense and the Director of Federal Prison Industries shall jointly 
conduct a study of the procurement procedures, regulations, and 
statutes that govern procurement transactions between the Department of 
Defense and Federal Prison Industries.
    (b) Report.--(1) The Secretary and the Director shall, not later 
than 180 days after the date of the enactment of this Act, submit to 
the committees listed in paragraph (2) a report containing the findings 
of the study and recommendations on the means to improve the efficiency 
and reduce the cost of transactions described in subsection (a).
    (2) The committees referred to in paragraph (1) are the following:
        (A) The Committee on Armed Services and the Committee on the 
    Judiciary of the Senate.
        (B) The Committee on National Security and the Committee on the 
    Judiciary of the House of Representatives.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Department of Defense Positions and Organizations and Other 
                             General Matters

Sec. 901. Assistants to the Chairman of the Joint Chiefs of Staff for 
          National Guard matters and for Reserve matters.
Sec. 902. Use of CINC Initiative Fund for force protection.
Sec. 903. Revision to required frequency for provision of policy 
          guidance for contingency plans.
Sec. 904. Annual justification for Department of Defense advisory 
          committees.
Sec. 905. Airborne reconnaissance management.
Sec. 906. Termination of the Armed Services Patent Advisory Board.
Sec. 907. Coordination of Department of Defense criminal investigations 
          and audits.

         Subtitle B--Department of Defense Personnel Management

Sec. 911. Reduction in personnel assigned to management headquarters and 
          headquarters support activities.
Sec. 912. Defense acquisition workforce.

          Subtitle C--Department of Defense Schools and Centers

Sec. 921. Professional military education schools.
Sec. 922. Center for Hemispheric Defense Studies.
Sec. 923. Correction to reference to George C. Marshall European Center 
          for Security Studies.

     Subtitle D--Department of Defense Intelligence-Related Matters

Sec. 931. Transfer of certain military department programs from TIARA 
          budget aggregation.
Sec. 932. Report on coordination of access of commanders and deployed 
          units to intelligence collected and analyzed by the 
          intelligence community.
Sec. 933. Protection of imagery, imagery intelligence, and geospatial 
          information and data.
Sec. 934. POW/MIA intelligence analysis.

Subtitle A--Department of Defense Positions and Organizations and Other 
                            General Matters

SEC. 901. ASSISTANTS TO THE CHAIRMAN OF THE JOINT CHIEFS OF STAFF FOR 
              NATIONAL GUARD MATTERS AND FOR RESERVE MATTERS.

    (a) Establishment of Positions.--The Secretary of Defense shall 
establish the following positions within the Joint Staff:
        (1) Assistant to the Chairman of the Joint Chiefs of Staff for 
    National Guard Matters.
        (2) Assistant to the Chairman of the Joint Chiefs of Staff for 
    Reserve Matters.
    (b) Selection.--(1) The Assistant to the Chairman of the Joint 
Chiefs of Staff for National Guard Matters shall be selected by the 
Chairman from officers of the Army National Guard of the United States 
or the Air Guard of the United States who--
        (A) are recommended for such selection by their respective 
    Governors or, in the case of the District of Columbia, the 
    commanding general of the District of Columbia National Guard;
        (B) have had at least 10 years of federally recognized 
    commissioned service in the National Guard; and
        (C) are in a grade above the grade of colonel.
    (2) The Assistant to the Chairman of the Joint Chiefs of Staff for 
Reserve Matters shall be selected by the Chairman from officers of the 
Army Reserve, the Naval Reserve, the Marine Corps Reserve, or the Air 
Force Reserve who--
            (A) are recommended for such selection by the Secretary of 
        the military department concerned;
            (B) have had at least 10 years of commissioned service in 
        their reserve component; and
            (C) are in a grade above the grade of colonel or, in the 
        case of the Naval Reserve, captain.
    (c) Term of Office.--Each Assistant to the Chairman under 
subsection (a) serves at the pleasure of the Chairman for a term of two 
years and may be continued in that assignment in the same manner for 
one additional term. However, in time of war there is no limit on the 
number of terms.
    (d) Grade.--Each Assistant to the Chairman, while so serving, holds 
the grade of major general or, in the case of the Naval Reserve, rear 
admiral. Each such officer shall be considered to be serving in a 
position external to that officer's Armed Force for purposes of section 
721 of title 10, United States Code, as added by section 501(a).
    (e) Duties.--The Assistant to the Chairman for National Guard 
Matters is an adviser to the Chairman on matters relating to the 
National Guard and performs the duties prescribed for that position by 
the Chairman. The Assistant to the Chairman for Reserve Matters is an 
adviser to the Chairman on matters relating to the reserves and 
performs the duties prescribed for that position by the Chairman.
    (f) Other Reserve Component Representation on Joint Staff.--(1) The 
Secretary of Defense, in consultation with the Chairman of the Joint 
Chiefs, shall develop appropriate policy guidance to ensure that, to 
the maximum extent practicable, the level of reserve component officer 
representation within the Joint Staff is commensurate with the 
significant role of the reserve components within the Total Force.
    (2) Not later than March 1, 1998, 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 describing the steps 
taken and being taken to implement this subsection.
    (g) Effective Date.--The positions specified in subsection (a) 
shall be established by the Secretary of Defense not later than 60 days 
after the date of the enactment of this Act.

SEC. 902. USE OF CINC INITIATIVE FUND FOR FORCE PROTECTION.

    Section 166a(b) of title 10, United States Code, is amended by 
adding at the end the following:
        ``(9) Force protection.''.

SEC. 903. REVISION TO REQUIRED FREQUENCY FOR PROVISION OF POLICY 
              GUIDANCE FOR CONTINGENCY PLANS.

    Section 113(g)(2) of title 10, United States Code, is amended--
        (1) in the first sentence, by striking out ``annually''; and
        (2) in the second sentence, by inserting ``be provided every 
    two years or more frequently as needed and shall'' after ``Such 
    guidance shall''.

SEC. 904. ANNUAL JUSTIFICATION FOR DEPARTMENT OF DEFENSE ADVISORY 
              COMMITTEES.

    (a) Annual Justification Required.--Chapter 7 of title 10, United 
States Code, is amended by adding after section 182, as added by 
section 382(a)(1), the following new section:

``Sec. 183. Advisory committees: annual justification required

    ``(a) Annual Report.--The Secretary of Defense shall include in the 
annual report of the Secretary under section 113(c) of this title a 
report on advisory committees of the Department of Defense. In each 
such report, the Secretary shall--
        ``(1) identify each advisory committee that the Secretary 
    proposes to support, or that the Secretary is required by law or 
    direction from the President to support, during the next fiscal 
    year; and
        ``(2) for each committee identified under paragraph (1), set 
    forth--
            ``(A) the justification or requirement for that committee; 
        and
            ``(B) the projected cost to the Department of Defense to 
        support that committee during the next fiscal year.
    ``(b) Advisory Committee Defined.--In this section, the term 
`advisory committee' means an entity that is subject to the provisions 
of the Federal Advisory Committee Act (5 U.S.C. App.).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding after the item relating to section 
182, as added by section 382(a)(2), the following new item:
``183. Advisory committees: annual justification required.''.

SEC. 905. AIRBORNE RECONNAISSANCE MANAGEMENT.

    (a) Reorganization of Defense Airborne Reconnaissance Management.--
Not later than September 30, 1998, the Secretary of Defense shall 
reorganize the management of defense airborne reconnaissance within the 
Department of Defense in accordance with the plan developed under 
subsection (b).
    (b) Plan and Report.--(1) The Secretary of Defense shall develop a 
plan to reorganize the following organizations by transferring 
functions as required under subsections (c) and (d):
        (A) The organization within the Department of Defense that is 
    subordinate to the Under Secretary of Defense for Acquisition and 
    Technology and known as the Defense Airborne Reconnaissance Office.
        (B) The organization within the Department of Defense that is 
    subordinate to the Secretary of the Navy and known as the Unmanned 
    Aerial Vehicle Joint Program Office.
    (2) The Secretary shall submit to the congressional defense 
committees a report containing--
        (A) the plan developed under paragraph (1); and
        (B) an explanation of how the plan addresses the findings and 
    recommendations in the final report of the Task Force on Defense 
    Reform (established by the Secretary of Defense on May 14, 1997, 
    and headed by the Deputy Secretary of Defense).
    (3) The plan under paragraph (1) shall be developed, and the report 
under paragraph (2) shall be submitted, not later than March 1, 1998.
    (c) Transfer of Certain Functions to Secretaries of Military 
Departments.--(1) Not later than September 30, 1998, the Secretary of 
Defense shall transfer to the Secretaries of the military departments 
those functions specified in paragraph (2) that were performed on the 
day before the date of the enactment of this Act by the Defense 
Airborne Reconnaissance Office and the Unmanned Aerial Vehicle Joint 
Program Office.
    (2) The functions referred to in paragraph (1) are the functions of 
the Defense Airborne Reconnaissance Office and the Unmanned Aerial 
Vehicle Joint Program Office relating to their responsibilities for 
acquisition of systems, budgeting, program management (for research, 
development, test, and evaluation, for procurement, for life-cycle 
support, and for operations), and related responsibilities for 
individual airborne reconnaissance programs.
    (d) Transfer of Certain Functions to Defense Airborne 
Reconnaissance Office.--(1) Not later than September 30, 1998, the 
Secretary of Defense shall transfer to the Defense Airborne 
Reconnaissance Office those functions specified in paragraph (2) that 
were performed on the day before the date of the enactment of this Act 
by the Unmanned Aerial Vehicle Joint Program Office.
    (2) The functions referred to in paragraph (1) are the functions of 
the Unmanned Aerial Vehicle Joint Program Office relating to its 
responsibilities for management and oversight of defense airborne 
reconnaissance architecture, requirements, and system interfaces (other 
than the responsibilities specified in subsection (c)(2)).

SEC. 906. TERMINATION OF THE ARMED SERVICES PATENT ADVISORY BOARD.

    (a) Termination of Board.--The organization within the Department 
of Defense known as the Armed Services Patent Advisory Board is 
terminated. No funds available for the Department of Defense may be 
used for the operation of that Board after the effective date specified 
in subsection (c).
    (b) Transfer of Functions.--All functions performed on the day 
before the date of the enactment of this Act by the Armed Services 
Patent Advisory Board (including performance of the responsibilities of 
the Department of Defense for security review of patent applications 
under chapter 17 of title 35, United States Code) shall be transferred 
to the Defense Technology Security Administration.
    (c) Effective Date.--Subsection (a) shall take effect at the end of 
the 120-day period beginning on the date of the enactment of this Act.

SEC. 907. COORDINATION OF DEPARTMENT OF DEFENSE CRIMINAL INVESTIGATIONS 
              AND AUDITS.

    (a) Military Department Criminal Investigative Organizations.--(1) 
The heads of the military department criminal investigative 
organizations shall take such action as may be practicable to conserve 
the limited resources available to the military department criminal 
investigative organizations by sharing personnel, expertise, 
infrastructure, training, equipment, software, and other resources.
    (2) The heads of the military department criminal investigative 
organizations shall meet on a regular basis to determine the manner in 
which and the extent to which the military department criminal 
investigative organizations will be able to share resources.
    (b) Defense Auditing Organizations.--(1) The heads of the defense 
auditing organizations shall take such action as may be practicable to 
conserve the limited resources available to the defense auditing 
organizations by sharing personnel, expertise, infrastructure, 
training, equipment, software, and other resources.
    (2) The heads of the defense auditing organizations shall meet on a 
regular basis to determine the manner in which and the extent to which 
the defense auditing organizations will be able to share resources.
    (c) Implementation Plan.--Not later than December 31, 1997, the 
Secretary of Defense shall submit to Congress a plan designed to 
maximize the resources available to the military department criminal 
investigative organizations and the defense auditing organizations, as 
required by this section.
    (d) Definitions.--For purposes of this section:
        (1) The term ``military department criminal investigative 
    organizations'' means--
            (A) the Army Criminal Investigation Command;
            (B) the Naval Criminal Investigative Service; and
            (C) the Air Force Office of Special Investigations.
        (2) The term ``defense auditing organizations'' means--
            (A) the Office of the Inspector General of the Department 
        of Defense;
            (B) the Defense Contract Audit Agency;
            (C) the Army Audit Agency;
            (D) the Naval Audit Service; and
            (E) the Air Force Audit Agency.

         Subtitle B--Department of Defense Personnel Management

SEC. 911. REDUCTION IN PERSONNEL ASSIGNED TO MANAGEMENT HEADQUARTERS 
              AND HEADQUARTERS SUPPORT ACTIVITIES.

    (a) In General.--(1) Chapter 3 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 130a. Management headquarters and headquarters support 
            activities personnel: limitation

    ``(a) Limitation.--Effective October 1, 2002, the number of 
management headquarters and headquarters support activities personnel 
in the Department of Defense may not exceed 75 percent of the baseline 
number.
    ``(b) Phased Reduction.--The number of management headquarters and 
headquarters support activities personnel in the Department of 
Defense--
        ``(1) as of October 1, 1998, may not exceed 95 percent of the 
    baseline number;
        ``(2) as of October 1, 1999, may not exceed 90 percent of the 
    baseline number;
        ``(3) as of October 1, 2000, may not exceed 85 percent of the 
    baseline number; and
        ``(4) as of October 1, 2001, may not exceed 80 percent of the 
    baseline number.
    ``(c) Baseline Number.--In this section, the term `baseline number' 
means the number of management headquarters and headquarters support 
activities personnel in the Department of Defense as of October 1, 
1997.
    ``(d) Limitation on Management Headquarters and Headquarters 
Support Personnel Assigned to the United States Transportation 
Command.--(1) Effective October 1, 1998, the number of management 
headquarters activities and management headquarters support activities 
personnel assigned to, or employed in, the United States Transportation 
Command may not exceed the number equal to 95 percent of the number of 
such personnel as of October 1, 1997.
    ``(2) For purposes of paragraph (1), the United States 
Transportation Command shall be considered to include the following:
        ``(A) The United States Transportation Command Headquarters.
        ``(B) The Air Mobility Command of the Air Force.
        ``(C) The Military Sealift Command of the Navy.
        ``(D) The Military Traffic Management Command of the Army.
        ``(E) The Defense Courier Service.
        ``(F) Any other element of the Department of Defense assigned 
    to the United States Transportation Command.
    ``(3) The Secretary of Defense may waive or suspend operation of 
paragraph (1) in the event of a war or national emergency.
    ``(e) Management Headquarters and Headquarters Support Activities 
Personnel Defined.--In this section:
        ``(1) The term `management headquarters and headquarters 
    support activities personnel' means military and civilian personnel 
    of the Department of Defense who are assigned to, or employed in, 
    functions in management headquarters activities or in management 
    headquarters support activities.
        ``(2) The terms `management headquarters activities' and 
    `management headquarters support activities' have the meanings 
    given those terms in Department of Defense Directive 5100.73, 
    entitled `Department of Defense Management Headquarters and 
    Headquarters Support Activities', as in effect on November 12, 
    1996.
    ``(f) Limitation on Reassignment of Functions.--In carrying out 
reductions in the number of personnel assigned to, or employed in, 
management headquarters and headquarters support activities in order to 
comply with this section, the Secretary of Defense and the Secretaries 
of the military departments may not reassign functions in order to 
evade the requirements of this section.
    ``(g) Flexibility.--If the Secretary of Defense determines, and 
certifies to Congress, that the limitation in subsection (b) with 
respect to any fiscal year would adversely affect United States 
national security, the Secretary may waive the limitation under that 
subsection with respect to that fiscal year. If the Secretary of 
Defense determines, and certifies to Congress, that the limitation in 
subsection (a) during fiscal year 2001 would adversely affect United 
States national security, the Secretary may waive the limitation under 
that subsection with respect to that fiscal year. The authority under 
this subsection may be used only once, with respect to a single fiscal 
year.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``130a. Management headquarters and headquarters support activities 
          personnel: limitation.''.

    (b) Implementation Report.--Not later than January 15, 1998, the 
Secretary of Defense shall submit to Congress a report--
        (1) containing a plan to achieve the personnel reductions 
    required by section 130a of title 10, United States Code, as added 
    by subsection (a); and
        (2) including the recommendations of the Secretary regarding--
            (A) the revision, replacement, or augmentation of 
        Department of Defense Directive 5100.73, entitled ``Department 
        of Defense Management Headquarters and Headquarters Support 
        Activities'', as in effect on November 12, 1996; and
            (B) the revision of the definitions of the terms 
        ``management headquarters activities'' and ``management 
        headquarters support activities'' under that Directive so that 
        those terms apply uniformly throughout the Department of 
        Defense.
    (c)  Duties of Task Force on Defense Reform To Include 
Consideration Of Management Headquarters Activities.--(1) The Secretary 
of Defense shall require that the areas of study of the Task Force on 
Defense Reform (established by the Secretary of Defense on May 14, 
1997, and headed by the Deputy Secretary of Defense) include an 
examination of the missions, functions, and responsibilities of the 
various management headquarters activities and management headquarters 
support activities of the Department of Defense. In carrying out that 
examination of those activities, the Task Force shall identify areas of 
duplication in those activities and recommend to the Secretary options 
to streamline, reduce, and eliminate redundancies.
    (2) The examination of the missions, functions, and 
responsibilities of the various management headquarters activities and 
management headquarters support activities of the Department of Defense 
under paragraph (1) shall include the following:
        (A) An assessment of benefits of consolidation or selected 
    elimination of Department of Defense management headquarters 
    activities and management headquarters support activities.
        (B) An assessment of the opportunities to streamline the 
    management headquarters and management headquarters support 
    infrastructure that were realized as a result of the enactment of 
    the Federal Acquisition Streamlining Act of 1994 (Public Law 103-
    355) and the Clinger-Cohen Act of 1996 (divisions D and E of Public 
    Law 104-106) or as result of other management reform initiatives 
    implemented administratively during the period from 1993 through 
    1997.
        (C) An assessment of such other options for streamlining or 
    restructuring the management headquarters and management 
    headquarters support infrastructure as the Task Force considers 
    appropriate and as can be carried out under existing provisions of 
    law.
    (3) Not later than March 1, 1998, the Secretary of Defense shall 
submit to Congress a report on the results of the examination by the 
Task Force under this subsection. The Secretary shall include in the 
report any report to the Secretary from the Task Force with respect to 
the matters described in paragraphs (1) and (2).
    (d) Codification of Prior Permanent Limitation on OSD Personnel.--
(1) Chapter 4 of title 10, United States Code, is amended by adding at 
the end a new section 143 consisting of--
        (A) a heading as follows:

``Sec. 143. Office of the Secretary of Defense personnel: limitation'';

        and
        (B) a text consisting of the text of subsections (a) through 
    (f) of section 903 of the National Defense Authorization Act for 
    Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2617).
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``143. Office of the Secretary of Defense personnel: limitation.''.

    (3) Section 903 of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2617) is repealed.

SEC. 912. DEFENSE ACQUISITION WORKFORCE.

    (a) Reduction of Defense Acquisition Workforce.--(1) The Secretary 
of Defense shall accomplish reductions in defense acquisition personnel 
positions during fiscal year 1998 so that the total number of such 
personnel as of October 1, 1998, is less than the total number of such 
personnel as of October 1, 1997, by at least the applicable number 
determined under paragraph (2).
    (2)(A) The applicable number for purposes of paragraph (1) is 
25,000. However, the Secretary of Defense may specify a lower number, 
which may not be less than 10,000, as the applicable number for 
purposes of paragraph (1) if the Secretary determines, and certifies to 
Congress not later than June 1, 1998, that an applicable number greater 
than the number specified by the Secretary would be inconsistent with 
the cost-effective management of the defense acquisition system to 
obtain best value equipment and would adversely affect military 
readiness.
    (B) The Secretary shall include with such a certification a 
detailed explanation of each of the matters certified.
    (C) The authority of the Secretary under subparagraph (A) may only 
be delegated to the Deputy Secretary of Defense.
    (3) For purposes of this subsection, the term ``defense acquisition 
personnel'' means military and civilian personnel (other than civilian 
personnel who are employed at a maintenance depot) who are 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).
    (b) Report on Specific Acquisition Positions Previously 
Eliminated.--Not later than 30 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to Congress a report on 
reductions in the defense acquisition workforce made since fiscal year 
1989. The report shall show aggregate reductions by fiscal year and 
shall show for each fiscal year reductions identified by specific job 
title, classification, or position. The report shall also identify 
those reductions carried out pursuant to law (and how the Secretary 
implemented any statutory requirement for such reductions, including 
definition of the workforce subject to the reduction) and those 
reductions carried out as a result of base closures and realignments 
under the so-called BRAC process. The Secretary shall include in the 
report a definition of the term ``defense acquisition workforce'' that 
is to be applied uniformly throughout the Department of Defense.
    (c) Implementation Plan To Streamline and Improve Acquisition 
Organizations.--(1) Not later than April 1, 1998, the Secretary of 
Defense shall submit to Congress a report containing a plan to 
streamline the acquisition organizations, workforce, and infrastructure 
of the Department of Defense. The Secretary shall include with the 
report a detailed discussion of the recommendations of the Secretary 
based on the review under subsection (d) and the assessment of the Task 
Force on Defense Reform pursuant to subsection (e), together with a 
request for the enactment of any legislative changes necessary for 
implementation of the plan. The Secretary shall include in the report 
the results of the review under subsection (d) and the independent 
assessment of the Task Force on Defense Reform pursuant to subsection 
(e).
    (2) In carrying out this subsection and subsection (d), the 
Secretary of Defense shall formally consult with the Chairman of the 
Joint Chiefs of Staff, the Director of Program Analysis and Evaluation, 
the Under Secretary of Defense (Comptroller), and the Under Secretary 
for Acquisition and Technology.
    (d) Review of Acquisition Organizations and Functions.--The 
Secretary of Defense shall conduct a review of the organizations and 
functions of the Department of Defense acquisition activities and of 
the personnel required to carry out those functions. The review shall 
identify the following:
        (1) Opportunities for cross-service, cross-functional 
    arrangements within the military services and defense agencies.
        (2) Specific areas of overlap, duplication, and redundancy 
    among the various acquisition organizations.
        (3) Opportunities to further streamline acquisition processes.
        (4) Benefits of an enhanced Joint Requirements Oversight 
    Council in the acquisition process.
        (5) Alternative consolidation options for acquisition 
    organizations.
        (6) Alternative methods for performing industry oversight and 
    quality assurance.
        (7) Alternative options to shorten the procurement cycle.
        (8) Alternative acquisition infrastructure reduction options 
    within current authorities.
        (9) Alternative organizational arrangements that capitalize on 
    core acquisition competencies among the military services and 
    defense agencies.
        (10) Future acquisition personnel requirements of the 
    Department.
        (11) Adequacy of the Program, Plans, and Budgeting System in 
    fulfilling current and future acquisition needs of the Department.
        (12) Effect of technology and advanced management tools in the 
    future acquisition system.
        (13) Applicability of more flexible alternative approaches to 
    the current civil service system for the acquisition workforce.
        (14) Adequacy of Department of Defense Instruction numbered 
    5000.58 dated January 14, 1992.
    (e)  Duties of Task Force on Defense Reform To Include 
Consideration Of Acquisition Organizations.--(1) The Secretary of 
Defense shall require that the areas of study of the Task Force on 
Defense Reform (established by the Secretary of Defense on May 14, 
1997, and headed by the Deputy Secretary of Defense) include an 
examination of the missions, functions, and responsibilities of the 
various acquisition organizations of the Department of Defense, 
including the acquisition workforce of the Department. In carrying out 
that examination of those organizations and that workforce, the Task 
Force shall identify areas of duplication in defense acquisition 
organization and recommend to the Secretary options to streamline, 
reduce, and eliminate redundancies.
    (2) The examination of the missions, functions, and 
responsibilities of the various acquisition organizations of the 
Department of Defense under paragraph (1) shall include the following:
        (A) An assessment of benefits of consolidation or selected 
    elimination of Department of Defense acquisition organizations.
        (B) An assessment of the opportunities to streamline the 
    defense acquisition infrastructure that were realized as a result 
    of the enactment of the Federal Acquisition Streamlining Act of 
    1994 (Public Law 103-355) and the Clinger-Cohen Act of 1996 
    (divisions D and E of Public Law 104-106) or as result of other 
    acquisition reform initiatives implemented administratively during 
    the period from 1993 through 1997.
        (C) An assessment of such other options for streamlining or 
    restructuring the defense acquisition infrastructure as the Task 
    Force considers appropriate and as can be carried out under 
    existing provisions of law.
    (3) Not later than March 1, 1998, the Task Force shall submit to 
the Secretary a report on the results of its review of the acquisition 
organizations of the Department of Defense, including any 
recommendations of the Task Force for improvements to those 
organizations.
    (f) Technical Reference Correction.--Section 1721(c) of title 10, 
United States Code, is amended by striking out ``November 25, 1988'' 
and inserting in lieu thereof ``November 12, 1996''.

         Subtitle C--Department of Defense Schools and Centers

SEC. 921. PROFESSIONAL MILITARY EDUCATION SCHOOLS.

    (a) Component Institutions of the National Defense University.--(1) 
Chapter 108 of title 10, United States Code, is amended by adding at 
the end the following new section:

``Sec. 2165. National Defense University: component institutions

    ``(a) In General.--There is a National Defense University in the 
Department of Defense.
    ``(b) Component Institutions.--The National Defense University 
consists of the following institutions:
        ``(1) The National War College.
        ``(2) The Industrial College of the Armed Forces.
        ``(3) The Armed Forces Staff College.
        ``(4) The Institute for National Strategic Studies.
        ``(5) The Information Resources Management College.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2165. National Defense University: component institutions.''.

    (b) Marine Corps University as Professional Military Education 
School.--Subsection (d) of section 2162 of such title is amended to 
read as follows:
    ``(d) Professional Military Education Schools.--This section 
applies to each of the following professional military education 
schools:
        ``(1) The National Defense University.
        ``(2) The Army War College.
        ``(3) The College of Naval Warfare.
        ``(4) The Air War College.
        ``(5) The United States Army Command and General Staff College.
        ``(6) The College of Naval Command and Staff.
        ``(7) The Air Command and Staff College.
        ``(8) The Marine Corps University.''.
    (c) Repeal of Duplicative Definition.--Section 1595(d) of such 
title is amended--
        (1) by striking out ``(1)'' before ``In the case of''; and
        (2) by striking out paragraph (2).

SEC. 922. CENTER FOR HEMISPHERIC DEFENSE STUDIES.

    (a) Institution of the National Defense University.--Subsection (b) 
of section 2165 of title 10, United States Code, as added by section 
921(a)(1), is amended by adding at the end the following new paragraph:
        ``(6) The Center for Hemispheric Defense Studies.''.
    (b) Civilian Faculty Members.--Section 1595 of title 10, United 
States Code, is amended by striking out subsections (e) and (f) and 
inserting in lieu thereof the following:
    ``(e) Applicability to Director and Deputy Director at Certain 
Institutions.--In addition to the persons specified in subsection (a), 
this section also applies with respect to the Director and the Deputy 
Director of the following:
        ``(1) The George C. Marshall European Center for Security 
    Studies.
        ``(2) The Asia-Pacific Center for Security Studies.
        ``(3) The Center for Hemispheric Defense Studies.''.

SEC. 923. CORRECTION TO REFERENCE TO GEORGE C. MARSHALL EUROPEAN CENTER 
              FOR SECURITY STUDIES.

    (a) Correction to Reference to Name of Center.--Subsection (a) of 
section 506 of the Intelligence Authorization Act, Fiscal Year 1990 
(Public Law 101-193; 8 U.S.C. 1430 note), is amended by striking out 
``the United States Army Russian Institute'' and inserting in lieu 
thereof ``the George C. Marshall European Center for Security 
Studies''.
    (b) Section Heading.--The heading of such section is amended to 
read as follows:


     ``requirements for citizenship for staff of george c. marshall 
                european center for security studies''.

         Subtitle D--Department of Defense Intelligence Matters

SEC. 931. TRANSFER OF CERTAIN MILITARY DEPARTMENT PROGRAMS FROM TIARA 
              BUDGET AGGREGATION.

    (a) Transfer.--Effective March 1, 1998, the Secretary of Defense 
shall, for each program identified by the Secretary under subsection 
(c)(2), transfer the management and budgeting of funds for that program 
from the TIARA budget aggregation to a nonintelligence budget activity 
of the military department responsible for that program.
    (b) Assessment.--The Secretary of Defense shall conduct an 
assessment of the policy of the Department of Defense that is used for 
determining the programs of the Department that are included within the 
TIARA budget aggregation. In conducting the assessment, the Secretary--
        (1) shall consider whether the current policy is in need of 
    revision to reflect changes in technology and battlefield use of 
    TIARA systems;
        (2) shall specifically consider the appropriateness of the 
    continued inclusion in the TIARA budget aggregation of each of the 
    programs described in subsection (e); and
        (3) may consider the appropriateness of the continued inclusion 
    in the TIARA budget aggregation of any other program (in addition 
    to the programs described to in subsection (e)) that as of the date 
    of the enactment of this Act is managed and budgeted as part of the 
    TIARA budget aggregation.
    (c) Report.--Not later than March 1, 1998, the Secretary of Defense 
shall submit to Congress a report on the assessment carried out under 
section (b). The Secretary shall include in the report--
        (1) a description of any proposed changes to Department of 
    Defense policies for determining which programs are included in the 
    TIARA budget aggregation; and
        (2) identification of each program (among the programs 
    considered pursuant to paragraphs (2) and (3) of subsection (b)) 
    for which the management and budgeting of funds is to be 
    transferred under subsection (a).
    (d) Identification of Programs.--(1) In specifying the programs to 
be included on the list under subsection (c)(2), the Secretary--
        (A) shall (except as otherwise provided pursuant to a waiver 
    under paragraph (2)) include each program described in subsection 
    (e); and
        (B) may include such additional programs considered in the 
    assessment pursuant to subsection (b)(3) as the Secretary 
    determines appropriate.
    (2) The Secretary, after considering the results of the assessment 
under subsection (c), may waive the applicability of paragraph (1)(A) 
to any program described in subsection (e). The Secretary shall include 
in the report under subsection (c) identification of each such program 
for which the Secretary has granted such a waiver and supporting 
rationale for each waiver.
    (e) Covered Programs.--The programs described in this subsection 
are the following (each of which, as of the date of the enactment of 
this Act, is managed and budgeted as part of the TIARA budget 
aggregation):
        (1) Each targeting or target acquisition program of the 
    Department of Defense, including the Joint Surveillance and Target 
    Attack Radar System (JSTARS) and the Advanced Deployable System.
        (2) Each Tactical Warning and Attack Assessment program of the 
    Department of Defense, including the Defense Support Program, the 
    Space-Based Infrared Program, and early warning radars.
        (3) Each tactical communications system of the Department of 
    Defense, including the Joint Tactical Terminal.
    (f) TIARA Budget Aggregation Defined.--For purposes of this 
section, the term ``TIARA budget aggregation'' means the aggregation of 
programs of the Department of Defense for which funds are managed and 
budgeted through a common designation as Tactical Intelligence and 
Related Activities (TIARA) of the Department of Defense.

SEC. 932. REPORT ON COORDINATION OF ACCESS OF COMMANDERS AND DEPLOYED 
              UNITS TO INTELLIGENCE COLLECTED AND ANALYZED BY THE 
              INTELLIGENCE COMMUNITY.

    (a) Findings.--Congress makes the following findings:
        (1) Coordination of operational intelligence support for the 
    commanders of the combatant commands and deployed units of the 
    Armed Forces has proven to be inadequate.
        (2) Procedures used to reconcile information among various 
    intelligence community and Department of Defense data bases have 
    proven to be inadequate and, being inadequate, have diminished the 
    usefulness of that information and have precluded commanders and 
    planners within the Armed Forces from fully benefiting from key 
    information that should have been available to them.
        (3) Excessive compartmentalization of responsibilities and 
    information within the Department of Defense and the other elements 
    of the intelligence community has resulted in inaccurate analysis 
    of important intelligence material.
        (4) Excessive restrictions on the distribution of information 
    within the executive branch have disadvantaged units of the Armed 
    Forces that would have benefited most from the information.
        (5) Procedures used in the Department of Defense to ensure that 
    critical intelligence information is provided to the right combat 
    units in a timely manner failed during the Persian Gulf War and, as 
    a result, information about potential chemical weapons storage 
    locations did not reach the units that eventually destroyed those 
    storage areas.
        (6) A recent, detailed review of the events leading to and 
    following the destruction of chemical weapons by members of the 
    Armed Forces at Khamisiyah, Iraq, during the Persian Gulf War has 
    revealed a number of inadequacies in the way the Department of 
    Defense and the other elements of the intelligence community 
    handled, distributed, recorded, and stored intelligence information 
    about the threat of exposure of United States forces to chemical 
    weapons and the toxic agents in those weapons.
        (7) The inadequacy of procedures for recording the receipt of, 
    and reaction to, intelligence reports provided by the intelligence 
    community to combat units of the Armed Forces during the Persian 
    Gulf War has caused it to be impossible to analyze the failures in 
    transmission of intelligence-related information on the location of 
    chemical weapons at Khamisiyah, Iraq, that resulted in the 
    demolition of chemical weapons by members of the Armed Forces 
    unaware of the hazards to which they were exposed.
    (b) Report Requirement.--Not later than March 1, 1998, the 
Secretary of Defense shall submit to Congress a report that identifies 
the specific actions that have been taken or are being taken to ensure 
that there is adequate coordination of access of commanders of the 
combatant commands and deployed units of the Armed Forces to 
intelligence collected and analyzed by the intelligence community.

SEC. 933. PROTECTION OF IMAGERY, IMAGERY INTELLIGENCE, AND GEOSPATIAL 
              INFORMATION AND DATA.

    (a) Protection of Information on Capabilities.--Paragraph (1)(B) of 
section 455(b) of title 10, United States Code, is amended by inserting 
``, or capabilities,'' after ``methods''.
    (b) Products Protected.--(1) Paragraph (2) of such section is 
amended to read as follows:
    ``(2) In this subsection, the term `geodetic product' means 
imagery, imagery intelligence, or geospatial information.''.
    (2) Section 467(4) of title 10, United States Code, is amended--
        (A) by inserting ``and'' at the end of subparagraph (A);
        (B) in subparagraph (B), by striking out ``and geodetic data; 
    and'' and inserting in lieu thereof ``geodetic data, and related 
    products.''; and
        (C) by striking out subparagraph (C).

SEC. 934. POW/MIA INTELLIGENCE ANALYSIS.

    (a) Intelligence Analysis.--The Director of Central Intelligence, 
in consultation with the Secretary of Defense, shall provide 
intelligence analysis on matters concerning prisoners of war and 
missing persons (as defined in chapter 76 of title 10, United States 
Code) to all departments and agencies of the Federal Government 
involved in such matters.
    (b) Use of Intelligence in Analysis of POW/MIA Cases in Department 
of Defense.--The Secretary of Defense shall ensure that the Defense 
Prisoner of War/Missing Personnel Office of the Department of Defense 
takes into full account all intelligence regarding matters concerning 
of prisoners of war and missing persons (as defined in chapter 76 of 
title 10, United States Code) in analyzing cases involving such 
persons.

                      TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec.1001.Transfer authority.
Sec.1002.Incorporation of classified annex.
Sec.1003.Authority for obligation of unauthorized fiscal year 1997 
          defense appropriations.
Sec.1004.Authorization of prior emergency supplemental appropriations 
          for fiscal year 1997.
Sec.1005.Increase in fiscal year 1996 transfer authority.
Sec.1006.Revision of authority for Fisher House trust funds.
Sec.1007.Flexibility in financing closure of certain outstanding 
          contracts for which a small final payment is due.
Sec.1008.Biennial financial management improvement plan.
Sec.1009.Estimates and requests for procurement and military 
          construction for the reserve components.
Sec.1010.Sense of Congress regarding funding for reserve component 
          modernization not requested in President's budget.
Sec.1011.Management of working-capital funds.
Sec.1012.Authority of Secretary of Defense to settle claims relating to 
          pay, allowances, and other benefits.
Sec.1013.Payment of claims by members for loss of personal property due 
          to flooding in Red River Basin.
Sec.1014.Advances for payment of public services.
Sec.1015.United States Man and the Biosphere Program limitation.

                 Subtitle B--Naval Vessels and Shipyards

Sec.1021.Procedures for sale of vessels stricken from the Naval Vessel 
          Register.
Sec.1022.Authority to enter into a long-term charter for a vessel in 
          support of the Surveillance Towed-Array Sensor (SURTASS) 
          program.
Sec.1023.Transfer of two specified obsolete tugboats of the Army.
Sec.1024.Congressional review period with respect to transfer of ex-
          U.S.S. Hornet (CV-12) and ex-U.S.S. Midway (CV-41).
Sec.1025.Transfers of naval vessels to certain foreign countries.
Sec.1026.Reports relating to export of vessels that may contain 
          polychlorinated biphenyls.
Sec.1027.Conversion of defense capability preservation authority to Navy 
          shipbuilding capability preservation authority.

                   Subtitle C--Counter-Drug Activities

Sec.1031.Use of National Guard for State drug interdiction and counter-
          drug activities.
Sec.1032.Authority to provide additional support for counter-drug 
          activities of Mexico.
Sec.1033.Authority to provide additional support for counter-drug 
          activities of Peru and Colombia.
Sec.1034.Annual report on development and deployment of narcotics 
          detection technologies.

        Subtitle D--Miscellaneous Report Requirements and Repeals

Sec.1041.Repeal of miscellaneous reporting requirements.
Sec.1042.Study of transfer of modular airborne fire fighting system.
Sec.1043.Overseas infrastructure requirements.
Sec.1044.Additional matters for annual report on activities of the 
          General Accounting Office.
Sec.1045.Eye safety at small arms firing ranges.
Sec.1046.Reports on Department of Defense procedures for investigating 
          military aviation accidents and for notifying and assisting 
          families of victims.

                Subtitle E--Matters Relating to Terrorism

Sec.1051.Oversight of counterterrorism and antiterrorism activities; 
          report.
Sec.1052.Provision of adequate troop protection equipment for Armed 
          Forces personnel engaged in peace operations; report on 
          antiterrorism activities and protection of personnel.

            Subtitle F--Matters Relating to Defense Property

Sec.1061.Lease of nonexcess personal property of military departments.
Sec.1062.Lease of nonexcess property of Defense Agencies.
Sec.1063.Donation of excess chapel property to churches damaged or 
          destroyed by arson or other acts of terrorism.
Sec.1064.Authority of the Secretary of Defense concerning disposal of 
          assets under cooperative agreements on air defense in Central 
          Europe.
Sec.1065.Sale of excess, obsolete, or unserviceable ammunition and 
          ammunition components.
Sec.1066.Transfer of B-17 aircraft to museum.
Sec.1067.Report on disposal of excess and surplus materials.

                        Subtitle G--Other Matters

Sec.1071.Authority for special agents of the Defense Criminal 
          Investigative Service to execute warrants and make arrests.
Sec.1072.Study of investigative practices of military criminal 
          investigative organizations relating to sex crimes.
Sec.1073.Technical and clerical amendments.
Sec.1074.Sustainment and operation of the Global Positioning System.
Sec.1075.Protection of safety-related information voluntarily provided 
          by air carriers.
Sec.1076.National Guard Challenge Program to create opportunities for 
          civilian youth.
Sec.1077.Disqualification from certain burial-related benefits for 
          persons convicted of capital crimes.
Sec.1078.Restrictions on the use of human subjects for testing of 
          chemical or biological agents.
Sec.1079.Treatment of military flight operations.
Sec.1080.Naturalization of certain foreign nationals who serve honorably 
          in the Armed Forces during a period of conflict.
Sec.1081.Applicability of certain pay authorities to members of 
          specified independent study organizations.
Sec.1082.Display of POW/MIA flag.
Sec.1083.Program to commemorate 50th anniversary of the Korean conflict.
Sec.1084.Commendation of members of the Armed Forces and Government 
          civilian personnel who served during the Cold War; certificate 
          of recognition.
Sec.1085.Sense of Congress on granting of statutory Federal charters.
Sec.1086.Sense of Congress regarding military voting rights.
Sec.1087.Designation of Bob Hope as an honorary veteran of the Armed 
          Forces of the United States.
Sec.1088.Five-year extension of aviation insurance program.

                     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 1998 between any such authorizations for that fiscal year (or any 
subdivisions thereof). Amounts of authorizations so transferred shall 
be merged with and be available for the same purposes as the 
authorization to which transferred.
    (2) The total amount of authorizations that the Secretary of 
Defense may transfer under the authority of this section may not exceed 
$2,000,000,000.
    (b) Limitations.--The authority provided by this section to 
transfer authorizations--
        (1) may only be used to provide authority for items that have a 
    higher priority than the items from which authority is transferred; 
    and
        (2) may not be used to provide authority for an item that has 
    been denied authorization by Congress.
    (c) Effect on Authorization Amounts.--A transfer made from one 
account to another under the authority of this section shall be deemed 
to increase the amount authorized for the account to which the amount 
is transferred by an amount equal to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly notify 
Congress of each transfer made under subsection (a).

SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.

    (a) Status of Classified Annex.--The Classified Annex prepared by 
the committee of conference to accompany the conference report on the 
bill H.R. 1119 of the One Hundred Fifth 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. AUTHORITY FOR OBLIGATION OF UNAUTHORIZED FISCAL YEAR 1997 
              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 1997 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 1997 defense appropriations that 
are in excess of the amounts provided for such programs, projects, and 
activities in fiscal year 1997 defense authorizations.
    (c) Definitions.--For the purposes of this section:
        (1) Fiscal year 1997 defense appropriations.--The term ``fiscal 
    year 1997 defense appropriations'' means amounts appropriated or 
    otherwise made available to the Department of Defense for fiscal 
    year 1997 in the Department of Defense Appropriations Act, 1997 (as 
    contained in section 101(b) of Public Law 104-208).
        (2) Fiscal year 1997 defense authorizations.--The term ``fiscal 
    year 1997 defense authorizations'' means amounts authorized to be 
    appropriated for the Department of Defense for fiscal year 1997 in 
    the National Defense Authorization Act for Fiscal Year 1997 (Public 
    Law 104-201).

SEC. 1004. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL APPROPRIATIONS 
              FOR FISCAL YEAR 1997.

    Amounts authorized to be appropriated to the Department of Defense 
for fiscal year 1997 in the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201) are hereby adjusted, with respect 
to any such authorized amount, by the amount by which appropriations 
pursuant to such authorization were increased (by a supplemental 
appropriation) or decreased (by a rescission), or both, in the 1997 
Emergency Supplemental Appropriations Act for Recovery from Natural 
Disasters, and for Overseas Peacekeeping Efforts, Including Those in 
Bosnia (Public Law 105-18).

SEC. 1005. INCREASE IN FISCAL YEAR 1996 TRANSFER AUTHORITY.

    Section 1001(a)(2) of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 100 Stat. 414) is amended by 
striking out ``$2,000,000,000'' and inserting in lieu thereof 
``$3,100,000,000''.

SEC. 1006. REVISION OF AUTHORITY FOR FISHER HOUSE TRUST FUNDS.

    (a) Correction To Eliminate Use of Term Associated With Funding 
Authorities.--Section 2221(c) of title 10, United States Code, is 
amended by striking out ``or maintenance'' each place it appears.
    (b) Corpus of Air Force Trust Fund.--The Secretary of the Air Force 
shall deposit in the Fisher House Trust Fund, Department of the Air 
Force, an amount that the Secretary determines appropriate to establish 
the corpus of the fund.

SEC. 1007. FLEXIBILITY IN FINANCING CLOSURE OF CERTAIN OUTSTANDING 
              CONTRACTS FOR WHICH A SMALL FINAL PAYMENT IS DUE.

    (a) Closure of Outstanding Contracts.--The Secretary of Defense may 
make the final payment on a contract to which this section applies from 
the account established pursuant to subsection (d).
    (b) Covered Contracts.--This section applies to any contract of the 
Department of Defense--
        (1) that was entered into before December 5, 1990; and
        (2) for which an unobligated balance of an appropriation that 
    had been initially applied to the contract was canceled before 
    December 5, 1990, pursuant to section 1552 of title 31, United 
    States Code, as in effect before that date.
    (c) Authority Limited to Small Final Payments.--The Secretary may 
use the authority provided by this section only for a contract for 
which the amount of the final payment due is not greater than the 
micro-purchase threshold (as defined in section 32 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 428)).
    (d) Account.--The Secretary may establish an account for the 
purposes of this section. The Secretary may from time to time transfer 
into the account, from funds made available to the Department of 
Defense for procurement or for research, development, test, and 
evaluation, such amounts as the Secretary determines to be needed for 
the purposes of the account, except that the total of such transfers 
may not exceed $1,000,000. Amounts in the account may be used only for 
the purposes of this section.
    (e) Closure of Account.--When the Secretary determines that all 
contracts to which this section applies have been closed and there is 
no further need for the account established under subsection (d), the 
Secretary shall close the account. Any amounts remaining in the account 
shall be covered into the Treasury as miscellaneous receipts.

SEC. 1008. BIENNIAL FINANCIAL MANAGEMENT IMPROVEMENT PLAN.

    (a) Biennial Plan.--(1) Chapter 131 of title 10, United States 
Code, is amended by adding at the end the following new section:

``Sec. 2222. Biennial financial management improvement plan

    ``(a) Biennial Plan Required.--The Secretary of Defense shall 
submit to Congress a biennial strategic plan for the improvement of 
financial management within the Department of Defense. The plan shall 
be submitted not later than September 30 of each even-numbered year.
    ``(b) Concept of Operations.--Each plan under subsection (a) shall 
include a statement of the Secretary of Defense's concept of operations 
for the financial management of the Department of Defense. Each such 
statement shall be a clear description of the manner in which the 
Department's financial management operations are carried out or will be 
carried out under the improvements set forth in the plan under 
subsection (a), including identification of operations that must be 
performed.
    ``(c) Matters To Be Addressed in Plan.--(1) Each plan under 
subsection (a) shall address all aspects of financial management within 
the Department of Defense, including the finance systems, accounting 
systems, and data feeder systems of the Department that support 
financial functions of the Department.
    ``(2) For the purposes of paragraph (1), a data feeder system is an 
automated or manual system from which information is derived for a 
financial management system or an accounting system.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``2222. Biennial financial management improvement plan.''.

    (b) Additional Content of First Plan.--The first financial 
management improvement plan submitted under section 2222 of title 10, 
United States Code (as added by subsection (a)), shall include the 
following:
        (1) A description of the costs and benefits of integrating the 
    various finance and accounting systems of the Department of Defense 
    and reducing the total number of such systems, together with the 
    Secretary's assessment of the feasibility of implementing such an 
    integration.
        (2) Identification of problems with the accuracy of data 
    included in the finance systems, accounting systems, and data 
    feeder systems that support financial functions of the Department 
    of Defense, together with a description of the actions that the 
    Secretary can take to address those problems.
        (3) Identification of weaknesses in the internal controls of 
    the systems referred to in paragraph (2), together with a 
    description of the actions that the Secretary can take to address 
    those weaknesses.
        (4) A description of actions that the Secretary can take to 
    eliminate negative unliquidated obligations, unmatched 
    disbursements, and in-transit disbursements and to avoid such 
    obligations and disbursements in the future.
        (5) A description of the status of the efforts being undertaken 
    in the Department to consolidate and eliminate--
            (A) redundant or unneeded finance systems; and
            (B) redundant or unneeded accounting systems.
        (6) A description of efforts being undertaken to consolidate or 
    eliminate redundant personnel data systems, acquisition data 
    systems, asset accounting systems, time and attendance systems, and 
    other data feeder systems of the Department.
        (7) A description of efforts being undertaken to integrate the 
    data feeder systems of the Department with the finance and 
    accounting systems of the Department.
        (8) A description of problems with the organization or 
    performance of the Operating Locations and Service Centers of the 
    Defense Finance and Accounting Service, together with a description 
    of the actions the Secretary can take to address those problems.
        (9) A description of the costs and benefits of reorganizing the 
    Operating Locations and Service Centers of the Defense Finance and 
    Accounting Service according to function, together with the 
    Secretary's assessment of the feasibility of carrying out such a 
    reorganization.
        (10) A description of the costs and benefits of contracting for 
    private-sector performance of specific functions currently 
    performed by the Defense Finance and Accounting Service, together 
    with the Secretary's assessment of the feasibility of contracting 
    for such performance.
        (11) A description of actions that can be taken to ensure that 
    each comptroller position (and comparable position) in the 
    Department of Defense, whether filled by a member of the Armed 
    Forces or by a civilian employee, is held by a person who, by 
    reason of education, technical competence, and experience, has the 
    core competencies for financial management.
        (12) A description of any other change in the financial 
    management structure of the Department or revision of the financial 
    processes and business practices of the Department that the 
    Secretary considers necessary to improve financial management in 
    the Department.
    (c) Additional Matters.--For each of the problems and actions 
identified pursuant to paragraphs (1) through (12) of subsection (b) or 
in any other part of the plan covered by that subsection, the Secretary 
shall include statements of objectives, performance measures, and 
schedules and shall specify the individual and organizational 
responsibilities.
    (d) Definition.--In subsection (b), the term ``data feeder system'' 
has the meaning given that term in subsection (c)(2) of section 2222 of 
title 10, United States Code, as added by subsection (a).

SEC. 1009. ESTIMATES AND REQUESTS FOR PROCUREMENT AND MILITARY 
              CONSTRUCTION FOR THE RESERVE COMPONENTS.

    (a) Detailed Presentation in Future-Years Defense Program.--Section 
10543 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:
    ``(b) Associated Annexes.--The associated annexes of the future-
years defense program shall specify, at the same level of detail as is 
set forth in the annexes for the active components, the amount 
requested for--
        ``(1) procurement of each item of equipment to be procured for 
    each reserve component; and
        ``(2) each military construction project to be carried out for 
    each reserve component, together with the location of the project.
    ``(c) Report.--(1) If the aggregate of the amounts specified in 
paragraphs (1) and (2) of subsection (b) for a fiscal year is less than 
the amount equal to 90 percent of the average authorized amount 
applicable for that fiscal year under paragraph (2), the Secretary of 
Defense shall submit to Congress a report specifying for each reserve 
component the additional items of equipment that would be procured, and 
the additional military construction projects that would be carried 
out, if that aggregate amount were an amount equal to such average 
authorized amount. The report shall be at the same level of detail as 
is required by subsection (b).
    ``(2) In this subsection, the term `average authorized amount', 
with respect to a fiscal year, means the average of--
        ``(A) the aggregate of the amounts authorized to be 
    appropriated for the preceding fiscal year for the procurement of 
    items of equipment, and for military construction, for the reserve 
    components; and
        ``(B) the aggregate of the amounts authorized to be 
    appropriated for the fiscal year preceding the fiscal year referred 
    to in subparagraph (A) for the procurement of items of equipment, 
    and for military construction, for the reserve components.''.
    (b) Prohibition.--The level of detail provided for procurement and 
military construction in the future-years defense programs for fiscal 
years after fiscal year 1998 may not be less than the level of detail 
provided for procurement and military construction in the future-years 
defense program for fiscal year 1998.

SEC. 1010. SENSE OF CONGRESS REGARDING FUNDING FOR RESERVE COMPONENT 
              MODERNIZATION NOT REQUESTED IN PRESIDENT'S BUDGET.

    (a) Criteria.--It is the sense of Congress that, to the maximum 
extent practicable, Congress should authorize appropriations for 
procurement of reserve component modernization equipment for a fiscal 
year for equipment that is not included in the budget of the President 
for that fiscal year only if--
        (1) there is a requirement for that equipment that has been 
    validated by the Joint Requirements Oversight Council;
        (2) procurement of that equipment is included for reserve 
    component modernization in the modernization plan of the military 
    department concerned and is incorporated into the current future-
    years defense program;
        (3) procurement of that equipment is consistent with planned 
    use of reserve component forces under Department of Defense war 
    plans; and
        (4) funds for that procurement, if authorized and appropriated 
    for that fiscal year, could be obligated during that fiscal year.
    (b) Consideration of Views of Chairman of Joint Chiefs of Staff.--
It is further the sense of Congress that, in applying the criteria set 
forth in subsection (a) with respect to procurement of reserve 
component modernization equipment, Congress should obtain the views of 
the Chairman of the Joint Chiefs of Staff on whether, under Department 
of Defense war plans, that equipment is appropriate for procurement 
for, and assignment to, reserve component forces.

SEC. 1011. MANAGEMENT OF WORKING-CAPITAL FUNDS.

    (a) Contracting for Capital Assets Procurement in Advance of 
Funds.--Section 2208 of title 10, United States Code, is amended by 
striking out subsection (k) and inserting in lieu thereof the following 
new subsection:
    ``(k)(1) Subject to paragraph (2), a contract for the procurement 
of a capital asset financed by a working-capital fund may be awarded in 
advance of the availability of funds in the working-capital fund for 
the procurement.
    ``(2) Paragraph (1) applies to any of the following capital assets 
that have a development or acquisition cost of not less than $100,000:
        ``(A) An unspecified minor military construction project under 
    section 2805(c)(1) of this title.
        ``(B) Automatic data processing equipment or software.
        ``(C) Any other equipment.
        ``(D) Any other capital improvement.''.
    (b) Use of Advance Billing.--Such section is further amended by 
adding at the end the following new subsection:
    ``(l)(1) An advance billing of a customer of a working-capital fund 
may be made if the Secretary of the military department concerned 
submits to Congress written notification of the advance billing within 
30 days after the end of the month in which the advanced billing was 
made. The notification shall include the following:
        ``(A) The reasons for the advance billing.
        ``(B) An analysis of the effects of the advance billing on 
    military readiness.
        ``(C) An analysis of the effects of the advance billing on the 
    customer.
    ``(2) The Secretary of Defense may waive the notification 
requirements of paragraph (1)--
        ``(A) during a period war or national emergency; or
        ``(B) to the extent that the Secretary determines necessary to 
    support a contingency operation.
    ``(3) In this subsection:
        ``(A) The term `advance billing', with respect to a working-
    capital fund, means a billing of a customer by the fund, or a 
    requirement for a customer to reimburse or otherwise credit the 
    fund, for the cost of goods or services provided (or for other 
    expenses incurred) on behalf of the customer that is rendered or 
    imposed before the customer receives the goods or before the 
    services have been performed.
        ``(B) The term `customer' means a requisitioning component or 
    agency.''.
    (c) Fiscal Year Limitations.--(1) The total amount of advance 
billings for Department of the Navy working-capital funds and the 
Defense Business Operations Fund may not exceed--
        (A) $1,000,000,000 for fiscal year 1998; and
        (B) $800,000,000 for fiscal year 1999.
    (2) For purposes of paragraph (1), the term ``advance billing'' has 
the meaning given such term in section 2208(l)(3) of title 10, United 
States Code, as added by subsection (b).

SEC. 1012. AUTHORITY OF SECRETARY OF DEFENSE TO SETTLE CLAIMS RELATING 
              TO PAY, ALLOWANCES, AND OTHER BENEFITS.

    Section 3702(e) of title 31, United States Code, is amended--
        (1) in paragraph (1), by striking out ``Comptroller General'' 
    and inserting in lieu thereof ``Secretary of Defense''; and
        (2) by striking out paragraph (2) and inserting in lieu thereof 
    the following new paragraph:
    ``(2) Payment of a claim settled under paragraph (1) shall be made 
from an appropriation that is available, for the fiscal year in which 
the payment is made, for the same purpose as the appropriation to which 
the obligation claimed would have been charged if the obligation had 
been timely paid.''.

SEC. 1013. PAYMENT OF CLAIMS BY MEMBERS FOR LOSS OF PERSONAL PROPERTY 
              DUE TO FLOODING IN RED RIVER BASIN.

    (a) Payment Authorized.--Notwithstanding section 3721(e) of title 
31, United States Code, the Secretary of a military department may pay 
the claim of a member of the Armed Forces who resided (or whose 
dependents resided) in the vicinity of Grand Forks Air Force Base, 
North Dakota, during April and May 1997 for loss and damage to personal 
property incurred by the member as a direct result of the flooding in 
the Red River Basin during such months.
    (b) Report on Department Policy.--The Secretary of Defense shall 
submit to Congress a report describing the Department of Defense policy 
regarding the payment of a claim by a member of the Armed Forces who is 
not assigned to quarters of the United States for losses and damage to 
personal property of the member incurred at the member's residence as a 
result of a natural disaster. The report shall include a description of 
the number of such claims received over the past 10 years, the number 
of claims paid, and the number of claims rejected. If the Secretary 
determines the Department of Defense should modify its policy in order 
to accept additional claims by members who are not assigned to quarters 
of the United States for losses and damage to personal property, the 
Secretary shall also include in the report any legislative changes that 
the Secretary considers necessary to enable the Secretary to implement 
the policy change.

SEC. 1014. ADVANCES FOR PAYMENT OF PUBLIC SERVICES.

    (a) In General.--Subsection (a) of section 2396 of title 10, United 
States Code, is amended--
        (1) by striking out ``and'' at the end of paragraph (2);
        (2) by striking out the period at the end of paragraph (3) and 
    inserting in lieu thereof ``; and''; and
        (3) by adding at the end the following new paragraph:
        ``(4) public service utilities.''.
    (b) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:

``Sec. 2396. Advances for payments for compliance with foreign laws, 
            rent in foreign countries, tuition, public utility 
            services, and pay and supplies of armed forces of friendly 
            foreign countries''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 141 of such title is amended to read as 
follows:
``2396. Advances for payments for compliance with foreign laws, rent in 
          foreign countries, tuition, public utility services, and pay 
          and supplies of armed forces of friendly foreign countries.''.

SEC. 1015. UNITED STATES MAN AND THE BIOSPHERE PROGRAM LIMITATION.

    During fiscal year 1998, the Secretary of Defense may not take any 
steps to carry out or support the United States Man and the Biosphere 
Program or any related project.

                Subtitle B--Naval Vessels and Shipyards

SEC. 1021. PROCEDURES FOR SALE OF VESSELS STRICKEN FROM THE NAVAL 
              VESSEL REGISTER.

    Section 7305(c) of title 10, United States Code, is amended to read 
as follows:
    ``(c) Procedures for Sale.--(1) A vessel stricken from the Naval 
Vessel Register and not subject to disposal under any other law may be 
sold under this section.
    ``(2) In such a case, the Secretary may--
        ``(A) sell the vessel to the highest acceptable bidder, 
    regardless of the appraised value of the vessel, after publicly 
    advertising the sale of the vessel for a period of not less than 30 
    days; or
        ``(B) subject to paragraph (3), sell the vessel by competitive 
    negotiation to the acceptable offeror who submits the offer that is 
    most advantageous to the United States (taking into account price 
    and such other factors as the Secretary determines appropriate).
    ``(3) Before entering into negotiations to sell a vessel under 
paragraph (2)(B), the Secretary shall publish notice of the intention 
to do so in the Commerce Business Daily sufficiently in advance of 
initiating the negotiations that all interested parties are given a 
reasonable opportunity to prepare and submit proposals. The Secretary 
shall afford an opportunity to participate in the negotiations to all 
acceptable offerors submitting proposals that the Secretary considers 
as having the potential to be the most advantageous to the United 
States (taking into account price and such other factors as the 
Secretary determines appropriate).''.

SEC. 1022. AUTHORITY TO ENTER INTO A LONG-TERM CHARTER FOR A VESSEL IN 
              SUPPORT OF THE SURVEILLANCE TOWED-ARRAY SENSOR (SURTASS) 
              PROGRAM.

    The Secretary of the Navy is authorized to enter into a contract in 
accordance with section 2401 of title 10, United States Code, for the 
charter, for a period through fiscal year 2003, of the vessel RV CORY 
CHOUEST (United States official number 933435) in support of the 
Surveillance Towed-Array Sensor (SURTASS) program.

SEC. 1023. TRANSFER OF TWO SPECIFIED OBSOLETE TUGBOATS OF THE ARMY.

    (a) Authority To Transfer Vessels.--The Secretary of the Army may 
transfer the two obsolete tugboats of the Army described in subsection 
(b) to the Brownsville Navigation District, Brownsville, Texas.
    (b) Vessels Covered.--Subsection (a) applies to the following two 
decommissioned tugboats of the Army, each of which is listed as of the 
date of the enactment of this Act as being surplus to the needs of the 
Army: the Normandy (LT-1971) and the Salerno (LT-1953).
    (c) Transfers To Be at No Cost to United States.--A transfer 
authorized by this section shall be made at no cost to the United 
States.
    (d) Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the transfers 
authorized by this section as the Secretary considers appropriate.

SEC. 1024. CONGRESSIONAL REVIEW PERIOD WITH RESPECT TO TRANSFER OF EX-
              U.S.S. HORNET (CV-12) AND EX-U.S.S. MIDWAY (CV-41).

    (a) Reduction in Congressional Review Period.--In applying section 
7306 of title 10, United States Code, with respect to the transfer of a 
vessel specified in subsection (c), subsection (d)(1)(B) of that 
section shall be applied by substituting ``30 days'' for ``60 days''.
    (b) Waiver if Only One Qualified Entity Applies for Transfer of 
Vessel.--If in the case of a vessel specified in subsection (c) only a 
single qualified entity, as determined by the Secretary of the Navy, 
applies for transfer of the vessel, the Secretary may carry out the 
transfer of the vessel under section 7306 of title 10, United States 
Code, without regard to subsection (d)(1)(B) of that section. In such a 
case, the transfer may be made only after 10 days of continuous session 
of Congress (determined in the manner specified in section 7306(d)(2) 
of title 10, United States Code) have expired following the date on 
which the Secretary submits to Congress a certification that only a 
single qualified entity applied for transfer of the vessel.
    (c) Covered Vessels.--This section applies to the following vessels 
(each of which is a decommissioned aircraft carrier):
        (1) Ex-U.S.S. HORNET (CV-12).
        (2) Ex-U.S.S. MIDWAY (CV-41).

SEC. 1025. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES.

    (a) Authority.--The Secretary of the Navy is authorized to transfer 
vessels to foreign countries on a sales basis under section 21 of the 
Arms Export Control Act (22 U.S.C. 2761) as follows:
        (1) To the Government of Brazil, the HUNLEY class submarine 
    tender HOLLAND (AS 32).
        (2) To the Government of Chile, the KAISER class oiler 
    ISHERWOOD (T-AO 191).
        (3) To the Government of Egypt:
            (A) The following frigates of the KNOX class:
                (i) The PAUL (FF 1080).
                (ii) The MILLER (FF 1091).
                (iii) The JESSE L. BROWN (FFT 1089).
                (iv) The MOINESTER (FFT 1097).
            (B) The following frigates of the OLIVER HAZARD PERRY 
        class:
                (i) The FAHRION (FFG 22).
                (ii) The LEWIS B. PULLER (FFG 23).
        (4) To the Government of Israel, the NEWPORT class tank landing 
    ship PEORIA (LST 1183).
        (5) To the Government of Malaysia, the NEWPORT class tank 
    landing ship BARBOUR COUNTY (LST 1195).
        (6) To the Government of Mexico, the KNOX class frigate ROARK 
    (FF 1053).
        (7) To the Taipei Economic and Cultural Representative Office 
    in the United States (the Taiwan instrumentality that is designated 
    pursuant to section 10(a) of the Taiwan Relations Act), the 
    following frigates of the KNOX class:
            (A) The WHIPPLE (FF 1062).
            (B) The DOWNES (FF 1070).
        (8) To the Government of Thailand, the NEWPORT class tank 
    landing ship SCHENECTADY (LST 1185).
    (b) Costs of Transfers.--Any expense incurred by the United States 
in connection with a transfer authorized by subsection (a) shall be 
charged to the recipient.
    (c) Repair and Refurbishment in United States Shipyards.--To the 
maximum extent practicable, 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.
    (d) Expiration of Authority.--The authority to transfer a vessel 
under subsection (a) shall expire at the end of the two-year period 
beginning on the date of the enactment of this Act.

SEC. 1026. REPORTS RELATING TO EXPORT OF VESSELS THAT MAY CONTAIN 
              POLYCHLORINATED BIPHENYLS.

    (a) Reports Required.--Not later than March 1, 1998, the Secretary 
of the Navy (with respect to the Navy), the Administrator of the 
Maritime Administration (with respect to the Maritime Administration), 
and the Administrator of the Environmental Protection Agency (with 
respect to the Environmental Protection Agency) shall each submit to 
Congress a report on the implementation of the agreement between the 
Department of the Navy and the Environmental Protection Agency that 
became effective August 6, 1997, and that is titled ``Export of Naval 
Vessels that May Contain Polychlorinated Biphenyls for Scrapping 
Outside the United States''.
    (b) Contents of Reports.--The reports required by subsection (a) 
shall address, at a minimum, the following:
        (1) An assessment of the effects of the notification 
    requirements regarding the export of vessels for scrapping, any 
    impediments that those requirements may create for the export of 
    vessels, and any changes to the agreement that may be required to 
    address those impediments.
        (2) An explanation of the process by which it is determined 
    which solid items containing polychlorinated biphenyls are readily 
    removable and must be removed before the export of a vessel for 
    scrapping, what types of polychlorinated biphenyls have been 
    determined to be readily removable pursuant to this process, any 
    impediments that such determinations may create for the export of 
    vessels, and any changes to the agreement that may be required to 
    address those impediments or to ensure protection of human health 
    and the environment.
    (c) Amendments Relating to Disposal of Obsolete Vessels From the 
National Defense Reserve Fleet.--Section 6 of the National Maritime 
Heritage Act of 1994 (Public Law 103-451; 108 Stat. 4776; 16 U.S.C. 
5405) is amended--
        (1) in subsections (a)(1) and (b)(2)--
            (A) by inserting ``or 510(i)'' after ``508''; and
            (B) by inserting ``or 1160(i)'' after ``1158'';
        (2) in subsection (b)(2), by striking out ``first 6'' and 
    inserting in lieu thereof ``first 8''; and
        (3) in subsection (c)(1)(A), by striking out ``1999'' and 
    inserting in lieu thereof ``2001''.

SEC. 1027. CONVERSION OF DEFENSE CAPABILITY PRESERVATION AUTHORITY TO 
              NAVY SHIPBUILDING CAPABILITY PRESERVATION AUTHORITY.

    (a) In General.--(1) Chapter 633 of title 10, United States Code, 
is amended by adding at the end the following new section:

``Sec. 7315. Preservation of Navy shipbuilding capability

    ``(a) Shipbuilding Capability Preservation Agreements.--The 
Secretary of the Navy may enter into an agreement, to be known as a 
`shipbuilding capability preservation agreement', with a shipbuilder 
under which the cost reimbursement rules described in subsection (b) 
shall be applied to the shipbuilder under a Navy contract for the 
construction of a ship. 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 this title.
    ``(b) Cost Reimbursement Rules.--The cost reimbursement rules 
applicable under an agreement entered into under subsection (a) are as 
follows:
        ``(1) The Secretary of the Navy shall, in determining the 
    reimbursement due a shipbuilder for its indirect costs of 
    performing a contract for the construction of a ship for the Navy, 
    allow the shipbuilder to allocate indirect costs to its private 
    sector work only to the extent of the shipbuilder's allocable 
    indirect private sector costs, subject to paragraph (3).
        ``(2) For purposes of paragraph (1), the allocable indirect 
    private sector costs of a shipbuilder are those costs of the 
    shipbuilder that are equal to the sum of the following:
            ``(A) The incremental indirect costs attributable to such 
        work.
            ``(B) 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.
        ``(3) The total amount of allocable indirect private sector 
    costs for a contract covered by the agreement may not exceed the 
    amount of indirect costs that a shipbuilder would have allocated to 
    its private sector work during the period covered by the agreement 
    in accordance with the shipbuilder's established accounting 
    practices.
    ``(c) Authority To Modify Cost Reimbursement Rules.--The cost 
reimbursement rules set forth in subsection (b) may be modified by the 
Secretary of the Navy for a particular agreement if the Secretary 
determines that modifications are appropriate to the particular 
situation to facilitate achievement of the policy set forth in section 
2501(b) of this title.
    ``(d) Applicability.--(1) An agreement entered into with a 
shipbuilder under subsection (a) shall apply to each of the following 
Navy contracts with the shipbuilder:
        ``(A) A contract that is in effect on the date on which the 
    agreement is entered into.
        ``(B) A contract that is awarded during the term of the 
    agreement.
    ``(2) In a shipbuilding capability preservation agreement 
applicable to a shipbuilder, the Secretary may agree to apply the cost 
reimbursement rules set forth in subsection (b) to allocations of 
indirect costs to private sector work performed by the shipbuilder only 
with respect to costs that the shipbuilder incurred on or after the 
date of the enactment of the National Defense Authorization Act for 
Fiscal Year 1998 under a contract between the shipbuilder and a private 
sector customer of the shipbuilder that became effective on or after 
January 26, 1996.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``7315. Preservation of Navy shipbuilding capability.''.

    (b) Implementation.--Not later than 30 days after the date of the 
enactment of this Act, the Secretary of the Navy shall establish 
application procedures and procedures for expeditious consideration of 
shipbuilding capability preservation agreements as authorized by 
section 7315 of title 10, United States Code, as added by subsection 
(a).
    (c) Report.--Not later than February 15, 1998, the Secretary of the 
Navy shall submit to Congress a report on applications for shipbuilding 
capability preservation agreements under section 7315 of title 10, 
United States Code, as added by subsection (a). The report shall 
specify the number of the applications received, the number of the 
applications approved, and a discussion of the reasons for disapproval 
of any application disapproved.
    (d) Repeal of Superseded Provision.--Section 808 of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
Stat. 393; 10 U.S.C. 2501 note) is repealed.

                  Subtitle C--Counter-Drug Activities

SEC. 1031. USE OF NATIONAL GUARD FOR STATE DRUG INTERDICTION AND 
              COUNTER-DRUG ACTIVITIES.

    (a) Relationship to Training and Readiness.--Subsection (b) of 
section 112 of title 32, United States Code, is amended--
        (1) by inserting ``(1)'' before ``Under regulations''; and
        (2) by adding at the end the following new paragraphs:
    ``(2) To ensure that the use of units and personnel of the National 
Guard of a State pursuant to a State drug interdiction and counter-drug 
activities plan is not detrimental to the training and readiness of 
such units and personnel, the requirements of section 2012(d) of title 
10 shall apply in determining the drug interdiction and counter-drug 
activities that units and personnel of the National Guard of a State 
may perform.
    ``(3) Section 508 of this title, regarding the provision of 
assistance to certain specified youth and charitable organizations, 
shall apply in any case in which a unit or member of the National Guard 
of a State is proposed to be used pursuant to a State drug interdiction 
and counter-drug activities plan to provide to an organization 
specified in subsection (d) of such section any of the services 
described in subsection (b) of such section or services regarding 
counter-drug education.''.
    (b) Engineer-Type Activities.--Subsection (c) of such section is 
amended--
        (1) by redesignating paragraphs (4) and (5) as paragraphs (5) 
    and (6), respectively; and
        (2) by inserting after paragraph (3) the following new 
    paragraph:
        ``(4) certify that any engineer-type activities (as defined by 
    the Secretary of Defense) under the plan will be performed only by 
    units and members of the National Guard;''.
    (c) Annual Report.--Such section is further amended--
        (1) by redesignating subsections (g) and (h) as subsections (h) 
    and (i), respectively; and
        (2) by inserting after subsection (f) the following new 
    subsection:
    ``(g) Annual Report.--The Secretary of Defense shall submit to 
Congress an annual report regarding assistance provided and activities 
carried out under this section during the preceding fiscal year. The 
report shall include the following:
        ``(1) The number of members of the National Guard excluded 
    under subsection (e) from the computation of end strengths.
        ``(2) A description of the drug interdiction and counter-drug 
    activities conducted under State drug interdiction and counter-drug 
    activities plans referred to in subsection (c) with funds provided 
    under this section.
        ``(3) An accounting of the amount of funds provided to each 
    State.
        ``(4) A description of the effect on military training and 
    readiness of using units and personnel of the National Guard to 
    perform activities under the State drug interdiction and counter-
    drug activities plans.''.
    (d) Conforming Amendments.--Subsection (e) of such section is 
amended--
        (1) by striking out ``(1)'' before ``Members''; and
        (2) by striking out paragraph (2).

SEC. 1032. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR COUNTER-DRUG 
              ACTIVITIES OF MEXICO.

    (a) Extension of Authority; Consultation of Secretary of State.--
Subsection (a) of section 1031 of the National Defense Authorization 
Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2637), is 
amended--
        (1) by striking out ``fiscal year 1997'' and inserting in lieu 
    thereof ``fiscal years 1997 and 1998''; and
        (2) by inserting after the first sentence the following new 
    sentence: ``In providing support to the Government of Mexico under 
    this section, the Secretary of Defense shall consult with the 
    Secretary of State.''.
    (b) Extension of Availability of Funds.--Subsection (d) of such 
section is amended--
        (1) by striking out ``not more than'' and inserting in lieu 
    thereof ``an amount not to exceed''; and
        (2) by adding at the end the following new sentences: ``Funds 
    made available for fiscal year 1997 under this subsection and 
    unobligated by September 30, 1997, may be obligated during fiscal 
    year 1998. No funds are authorized to be appropriated for fiscal 
    year 1998 for the provision of support under this section.''.

SEC. 1033. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR COUNTER-DRUG 
              ACTIVITIES OF PERU AND COLOMBIA.

    (a) Authority To Provide Support.--Subject to subsection (f), 
during fiscal years 1998 through 2002, the Secretary of Defense may 
provide either or both of the foreign governments named in subsection 
(b) with the support described in subsection (c) for the counter-drug 
activities of that government. In providing support to a government 
under this section, the Secretary of Defense shall consult with the 
Secretary of State. The support provided under the authority of this 
section shall be in addition to support provided to the governments 
under any other provision of law.
    (b) Governments Eligible To Receive Support.--The foreign 
governments eligible to receive counter-drug support under this section 
are as follows:
        (1) The Government of Peru.
        (2) The Government of Colombia.
    (c) Types of Support.--The authority under subsection (a) is 
limited to the provision of the following types of support to a 
government named in subsection (b):
        (1) The types of support specified in paragraphs (1), (2), and 
    (3) of section 1031(b) of the National Defense Authorization Act 
    for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2637).
        (2) The transfer of riverine patrol boats.
        (3) The maintenance and repair of equipment of the government 
    that is used for counter-drug activities.
    (d) Applicability of Other Support Authorities.--Except as 
otherwise provided in this section, the provisions of section 1004 of 
the National Defense Authorization Act for Fiscal Year 1991 (Public Law 
101-510; 10 U.S.C. 374 note) shall apply to the provision of support 
under this section.
    (e) Fiscal Year 1998 Funding; Limitation on Obligations.--(1) Of 
the amount authorized to be appropriated under section 301(20) for drug 
interdiction and counter-drug activities, an amount not to exceed 
$9,000,000 shall be available for the provision of support under this 
section.
    (2) Amounts made available to carry out this section shall remain 
available until expended, except that the total amount obligated and 
expended under this section may not exceed $20,000,000 during any of 
the fiscal years 1999 through 2002.
    (f) Condition on Provision of Support.--(1) The Secretary of 
Defense may not obligate or expend funds during a fiscal year to 
provide support under this section to a government named in subsection 
(b) until the end of the 15-day period beginning on the date on which 
the Secretary submits to the congressional committees the written 
certification described in subsection (g) for that fiscal year.
    (2) In the case of the first fiscal year in which support is to be 
provided under this section to a government named in subsection (b), 
the obligation or expenditure of funds under this section to provide 
support to that government shall also be subject to the condition 
that--
        (A) the Secretary submit to the congressional committees the 
    riverine counter-drug plan described in subsection (h); and
        (B) a period of 60 days expires after the date on which the 
    report is submitted.
    (3) In the case of subsequent fiscal years in which support is to 
be provided under this section to a government named in subsection (b), 
the obligation or expenditure of funds under this section to provide 
support to that government shall also be subject to the condition that 
the Secretary submit to the congressional committees any revision of 
the counter-drug plan described in subsection (h) applicable to that 
government.
    (4) For purposes of this subsection, the term ``congressional 
committees'' means 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.
    (g) Required Certification.--The written certification required by 
subsection (f)(1) for a fiscal year is a certification of the following 
with respect to each government to receive support under this section:
        (1) That the provision of the support to the government will 
    not adversely affect the military preparedness of the United States 
    Armed Forces.
        (2) That the equipment and materiel provided as support will be 
    used only by officials and employees of the government who have 
    undergone background investigations by that government and have 
    been approved by that government to perform counter-drug activities 
    on the basis of the background investigations.
        (3) That the government has certified to the Secretary of 
    Defense that--
            (A) the equipment and materiel provided as support will be 
        used only by the officials and employees referred to in 
        paragraph (2);
            (B) none of the equipment or materiel will be transferred 
        (by sale, gift, or otherwise) to any person or entity not 
        authorized by the United States to receive the equipment or 
        materiel; and
            (C) the equipment and materiel will be used only for the 
        purposes intended by the United States Government.
        (4) That the government has implemented, to the satisfaction of 
    the Secretary of Defense, a system that will provide an accounting 
    and inventory of the equipment and materiel provided as support.
        (5) That the departments, agencies, and instrumentalities of 
    the government will grant United States Government personnel access 
    to any of the equipment or materiel provided as support, or to any 
    of the records relating to such equipment or materiel, under terms 
    and conditions similar to the terms and conditions imposed with 
    respect to such access under section 505(a)(3) of the Foreign 
    Assistance Act of 1961 (22 U.S.C. 2314(a)(3)).
        (6) That the government will provide security with respect to 
    the equipment and materiel provided as support that is 
    substantially the same degree of security that the United States 
    Government would provide with respect to such equipment and 
    materiel.
        (7) That the government will permit continuous observation and 
    review by United States Government personnel of the use of the 
    equipment and materiel provided as support under terms and 
    conditions similar to the terms and conditions imposed with respect 
    to such observation and review under section 505(a)(3) of the 
    Foreign Assistance Act of 1961 (22 U.S.C. 2314(a)(3)).
    (h) Riverine Counter-Drug Plan.--The Secretary of Defense, in 
consultation with the Secretary of State, shall prepare for fiscal year 
1998 (and revise as necessary for subsequent fiscal years) a riverine 
counter-drug plan involving the governments named in subsection (b) to 
which support will be provided under this section. The plan for a 
fiscal year shall include the following with respect to each government 
to receive support under this section:
        (1) A detailed security assessment, including a discussion of 
    the threat posed by illicit drug traffickers in the foreign 
    country.
        (2) An evaluation of previous and ongoing riverine counter-drug 
    operations by the government.
        (3) An assessment of the monitoring of past and current 
    assistance provided by the United States under this section to the 
    government to ensure the appropriate use of such assistance.
        (4) A description of the centralized management and 
    coordination among Federal agencies involved in the development and 
    implementation of the plan.
        (5) A description of the roles and missions and coordination 
    among agencies of the government involved in the development and 
    implementation of the plan.
        (6) A description of the resources to be contributed by the 
    Department of Defense and the Department of State for the fiscal 
    year or years covered by the plan and the manner in which such 
    resources will be utilized under the plan.
        (7) For the first fiscal year in which support is to be 
    provided under this section, a schedule for establishing a riverine 
    counter-drug program that can be sustained by the government within 
    five years, and for subsequent fiscal years, a description of the 
    progress made in establishing and carrying out the program.
        (8) A reporting system to measure the effectiveness of the 
    riverine counter-drug program.
        (9) A detailed discussion of how the riverine counter-drug 
    program supports the national drug control strategy of the United 
    States.

SEC. 1034. ANNUAL REPORT ON DEVELOPMENT AND DEPLOYMENT OF NARCOTICS 
              DETECTION TECHNOLOGIES.

    (a) Report Requirement.--Not later than December 1st of each year, 
the Director of the Office of National Drug Control Policy shall submit 
to Congress and the President a report on the development and 
deployment of narcotics detection technologies by Federal agencies. 
Each such report shall be prepared in consultation with the Secretary 
of Defense, the Secretary of State, the Secretary of Transportation, 
and the Secretary of the Treasury.
    (b) Matters To Be Included.--Each report under subsection (a) shall 
include--
        (1) a description of each project implemented by a Federal 
    agency relating to the development or deployment of narcotics 
    detection technology;
        (2) the agency responsible for each project described in 
    paragraph (1);
        (3) the amount of funds obligated or expended to carry out each 
    project described in paragraph (1) during the fiscal year in which 
    the report is submitted or during any fiscal year preceding the 
    fiscal year in which the report is submitted;
        (4) the amount of funds estimated to be obligated or expended 
    for each project described in paragraph (1) during any fiscal year 
    after the fiscal year in which the report is submitted to Congress; 
    and
        (5) a detailed timeline for implementation of each project 
    described in paragraph (1).

       Subtitle D--Miscellaneous Report Requirements and Repeals

SEC. 1041. REPEAL OF MISCELLANEOUS REPORTING REQUIREMENTS.

    (a) Requirement for Notice of Conversion of Certain Heating Systems 
at Installations in Europe.--Section 2690(b) of title 10, United States 
Code, is amended by striking out ``unless the Secretary--'' and all 
that follows and inserting in lieu thereof the following: ``unless the 
Secretary determines that the conversion--
        ``(1) is required by the government of the country in which the 
    facility is located; or
        ``(2) is cost-effective over the life cycle of the facility.''.
    (b) Report on Availability of Suitable Alternative Housing.--
Section 2823 of title 10, United States Code, is amended--
        (1) by striking out subsection (b); and
        (2) by redesignating subsections (c) and (d) as subsections (b) 
    and (c), respectively.
    (c) Report on Stretchout of Major Defense Acquisition Programs.--
Section 117 of the National Defense Authorization Act, Fiscal Year 1989 
(Public Law 100-456; 102 Stat. 1933; 10 U.S.C. 2431 note), is repealed.
    (d) Elimination of Requirement for Quarterly Report Concerning 
Travel Funding for Chemical Demilitarization Citizens' Advisory 
Commissioners.--(1) Section 1412(g) of the National Defense 
Authorization Act for Fiscal Year 1986 (50 U.S.C. 1521(g)) is amended--
        (A) by striking out paragraph (3);
        (B) by striking out the last sentence of paragraph (4); and
        (C) by redesignating paragraph (4) (as so amended) as paragraph 
    (3).
    (2) Section 153(b) of the National Defense Authorization Act for 
Fiscal Year 1996 (50 U.S.C. 1521 note) is amended--
        (A) by striking out ``Quarterly'' in the heading; and
        (B) by striking out paragraphs (4) and (5).

SEC. 1042. STUDY OF TRANSFER OF MODULAR AIRBORNE FIRE FIGHTING SYSTEM.

    Not later than six months after the date of the enactment of this 
Act, the Secretary of Defense, in consultation with the Secretary of 
Agriculture, shall submit to Congress a report evaluating the 
feasibility of transferring jurisdiction over units of the Modular 
Airborne Fire Fighting System from the Department of Agriculture to the 
Department of Defense.

SEC. 1043. OVERSEAS INFRASTRUCTURE REQUIREMENTS.

    (a) Findings.--Congress makes the following findings:
        (1) United States military forces have been withdrawn from the 
    Philippines.
        (2) United States military forces are to be withdrawn from 
    Panama by 2000.
        (3) There continues to be local opposition to the continued 
    presence of United States military forces in Okinawa.
        (4) The Quadrennial Defense Review lists ``the loss of U.S. 
    access to critical facilities and lines of communication in key 
    regions'' as one of the so-called ``wild card'' scenarios covered 
    in the review.
        (5) The National Defense Panel states that ``U.S. forces' long-
    term access to forward bases, to include air bases, ports, and 
    logistics facilities, cannot be assumed''.
    (b) Sense of Congress.--It is the sense of Congress that--
        (1) the President should develop alternatives to the current 
    arrangement for forward basing of the Armed Forces outside the 
    United States, including alternatives to the existing 
    infrastructure for forward basing of forces and alternatives to the 
    existing international agreements that provide for basing of United 
    States forces in foreign countries; and
        (2) because the Pacific Rim continues to emerge as a region of 
    significant economic and military importance to the United States, 
    a continued presence of the Armed Forces in that region is vital to 
    the capability of the United States to timely protect its interests 
    in the region.
    (c) Report Required.--Not later than March 31, 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 overseas infrastructure requirements of 
the Armed Forces.
    (d) Content.--The report shall contain the following:
        (1) The quantity and types of forces that the United States 
    must station in each region of the world in order to support the 
    current national military strategy of the United States.
        (2) The quantity and types of forces that the United States 
    will need to station in each region of the world in order to meet 
    the expected or potential future threats to the national security 
    interests of the United States.
        (3) The requirements for access to, and use of, air space and 
    ground maneuver areas in each such region for training for the 
    quantity and types of forces identified for the region pursuant to 
    paragraphs (1) and (2).
        (4) A list of the international agreements, currently in force, 
    that the United States has entered into with foreign countries 
    regarding the basing of United States forces in those countries and 
    the dates on which the agreements expire.
        (5) A discussion of any anticipated political opposition or 
    other opposition to the renewal of any of those international 
    agreements.
        (6) A discussion of future overseas basing requirements for 
    United States forces, taking into account expected changes in 
    national security strategy, national security environment, and 
    weapons systems.
        (7) The expected costs of maintaining the overseas 
    infrastructure for foreign based forces of the United States, 
    including the costs of constructing any new facilities that will be 
    necessary overseas to meet emerging requirements relating to the 
    national security interests of the United States.
    (e) Form of Report.--The report may be submitted in a classified or 
unclassified form.

SEC. 1044. ADDITIONAL MATTERS FOR ANNUAL REPORT ON ACTIVITIES OF THE 
              GENERAL ACCOUNTING OFFICE.

    Section 719(b) of title 31, United States Code, is amended by 
adding at the end the following:
    ``(3) The report under subsection (a) shall also include a 
statement of the staff hours and estimated cost of work performed on 
audits, evaluations, investigations, and related work during each of 
the three fiscal years preceding the fiscal year in which the report is 
submitted, stated separately for each division of the General 
Accounting Office by category as follows:
        ``(A) A category for work requested by the chairman of a 
    committee of Congress, the chairman of a subcommittee of such a 
    committee, or any other Member of Congress.
        ``(B) A category for work required by law to be performed by 
    the Comptroller General.
        ``(C) A category for work initiated by the Comptroller General 
    in the performance of the Comptroller General's general 
    responsibilities.''.

SEC. 1045. EYE SAFETY AT SMALL ARMS FIRING RANGES.

    (a) Actions Required.--The Secretary of the Defense shall--
        (1) conduct a study of eye safety at small arms firing ranges 
    of the Armed Forces; and
        (2) develop for the use of the Armed Forces a protocol for 
    reporting eye injuries incurred in small arms firing activities at 
    the ranges.
    (b) Agency Tasking.--The Secretary may delegate authority to carry 
out the responsibilities set forth in subsection (a) to the United 
States Army Center for Health Promotion and Preventive Medicine or any 
other element of the Department of Defense that the Secretary considers 
well qualified to carry out those responsibilities.
    (c) Content of Study.--The study under subsection (a)(1) shall 
include the following:
        (1) An evaluation of the existing policies, procedures, and 
    practices of the Armed Forces regarding medical surveillance of eye 
    injuries resulting from weapons fire at the small arms ranges.
        (2) An examination of the existing policies, procedures, and 
    practices of the Armed Forces regarding reporting on vision safety 
    issues resulting from weapons fire at the small arms ranges.
        (3) Determination of rates of eye injuries, and trends in eye 
    injuries, resulting from weapons fire at the small arms ranges.
        (4) An evaluation of the costs and benefits of a requirement 
    for use of eye protection devices by all personnel firing small 
    arms at the ranges.
    (d) Report.--The Secretary shall submit a report on the activities 
required under this section to the Committees on Armed Services and on 
Veterans' Affairs of the Senate and the Committees on National Security 
and on Veterans' Affairs of the House of Representatives. The report 
shall include--
        (1) the findings resulting from the study under paragraph (1) 
    of subsection (a); and
        (2) the protocol developed under paragraph (2) of such 
    subsection.
    (e) Schedule.--(1) The Secretary shall ensure that the study is 
commenced not later than January 1, 1998, and is completed not later 
than six months after the date on which it is commenced.
    (2) The Secretary shall submit the report required under subsection 
(d) not later than 30 days after the completion of the study.

SEC. 1046. REPORTS ON DEPARTMENT OF DEFENSE PROCEDURES FOR 
              INVESTIGATING MILITARY AVIATION ACCIDENTS AND FOR 
              NOTIFYING AND ASSISTING FAMILIES OF VICTIMS.

    (a) Report on Aviation Accident Investigation Procedures.--Not 
later than February 1, 1998, the Secretary of Defense shall submit to 
Congress a report on the advisability of establishing a process for 
investigating Department of Defense aviation accidents that combines 
accident investigation with safety investigation into a single, public 
investigation process, similar to the accident investigation process of 
the National Transportation Safety Board. The report shall include a 
discussion of the advantages and disadvantages of adopting such an 
investigation process.
    (b) Report on Family Assistance.--Not later than April 2, 1998, the 
Secretary of Defense shall submit to Congress a report on assistance 
provided by the Department of Defense to families of casualties among 
military and civilian personnel of the department in the case of 
aviation accidents involving such personnel. The report shall include--
        (1) a discussion of the adequacy and effectiveness of the 
    family notification procedures of the Department of Defense, 
    including the procedures of the military departments; and
        (2) a description of the assistance provided to members of the 
    families of such personnel.
    (c) Report by Department of Defense Inspector General.--Not later 
than December 1, 1997, the Inspector General of the Department of 
Defense shall review the procedures of the Federal Aviation 
Administration and the National Transportation Safety Board for 
providing information and assistance to members of families of 
casualties of nonmilitary aviation accidents and shall submit to 
Congress a report on the review. The report shall include a discussion 
of the following:
        (1) Designation of an experienced non-profit organization to 
    provide assistance in meeting the needs of families of accident 
    casualties.
        (2) An assessment of the system and procedures for providing 
    families with information on accidents and accident investigations.
        (3) Protection of members of families from unwanted 
    solicitations relating to the accident.
        (4) A recommendation regarding whether the procedures reviewed 
    (including the matters discussed under paragraphs (1), (2), and 
    (3)) or similar procedures should be adopted by the Department of 
    Defense for use by the Department in providing information and 
    assistance to members of families of casualties of military 
    aviation accidents and, if the recommendation is not to adopt such 
    procedures, a detailed justification for the recommendation.
    (d) Unclassified Form of Reports.--The reports under this section 
shall be submitted in unclassified form.

               Subtitle E--Matters Relating to Terrorism

SEC. 1051. OVERSIGHT OF COUNTERTERRORISM AND ANTITERRORISM ACTIVITIES; 
              REPORT.

    (a) Oversight of Counterterrorism and Antiterrorism Activities.--
Not later than 120 days after the date of the enactment of this Act, 
the Director of the Office of Management and Budget shall--
        (1) establish a reporting system for executive agencies with 
    respect to the budget and expenditure of funds by such agencies for 
    the purpose of carrying out counterterrorism and antiterrorism 
    programs and activities; and
        (2) using such reporting system, collect information on--
            (A) the budget and expenditure of funds by executive 
        agencies during the current fiscal year for purposes of 
        carrying out counterterrorism and antiterrorism programs and 
        activities; and
            (B) the specific programs and activities for which such 
        funds were expended.
    (b) Report.--Not later that March 1 of each year, the President 
shall submit to Congress a report in classified and unclassified form 
(using the information described in subsection (a)(2)) describing, for 
each executive agency and for the executive branch as a whole, the 
following:
        (1) The amounts proposed to be expended for counterterrorism 
    and antiterrorism programs and activities for the fiscal year 
    beginning in the calendar year in which the report is submitted.
        (2) The amounts proposed to be expended for counterterrorism 
    and antiterrorism programs and activities for the fiscal year in 
    which the report is submitted and the amounts that have already 
    been expended for such programs and activities for that fiscal 
    year.
        (3) The specific counterterrorism and antiterrorism programs 
    and activities being implemented, any priorities with respect to 
    such programs and activities, and whether there has been any 
    duplication of efforts in implementing such programs and 
    activities.

SEC. 1052. PROVISION OF ADEQUATE TROOP PROTECTION EQUIPMENT FOR ARMED 
              FORCES PERSONNEL ENGAGED IN PEACE OPERATIONS; REPORT ON 
              ANTITERRORISM ACTIVITIES AND PROTECTION OF PERSONNEL.

    (a) Protection of Personnel.--The Secretary of Defense shall take 
appropriate actions to ensure that units of the Armed Forces engaged in 
a peace operation are provided adequate troop protection equipment for 
that operation.
    (b) Specific Actions.--In taking actions under subsection (a), the 
Secretary shall--
        (1) identify the additional troop protection equipment, if any, 
    required to equip a division (or the equivalent of a division) with 
    adequate troop protection equipment for peace operations; and
        (2) establish procedures to facilitate the exchange or transfer 
    of troop protection equipment among units of the Armed Forces.
    (c) Designation of Responsible Official.--The Secretary of Defense 
shall designate an official within the Department of Defense to be 
responsible for--
        (1) ensuring the appropriate allocation of troop protection 
    equipment among the units of the Armed Forces engaged in peace 
    operations; and
        (2) monitoring the availability, status or condition, and 
    location of such equipment.
    (d) Troop Protection Equipment Defined.--In this section, the term 
``troop protection equipment'' means the equipment required by units of 
the Armed Forces to defend against any hostile threat that is likely 
during a peace operation, including an attack by a hostile crowd, small 
arms fire, mines, and a terrorist bombing attack.
    (e) Report on Antiterrorism Activities of the Department of Defense 
and Protection of Personnel.--Not later than 120 days after the date of 
the enactment of this Act, the Secretary of Defense shall submit to 
Congress a report, in classified and unclassified form, on 
antiterrorism activities of the Department of Defense and the actions 
taken by the Secretary under subsections (a), (b), and (c). The report 
shall include the following:
        (1) A description of the programs designed to carry out 
    antiterrorism activities of the Department of Defense, any 
    deficiencies in those programs, and any actions taken by the 
    Secretary to improve implementation of such programs.
        (2) An assessment of the current policies and practices of the 
    Department of Defense with respect to the protection of members of 
    the Armed Forces overseas against terrorist attack, including any 
    modifications to such policies or practices that are proposed or 
    implemented as a result of the assessment.
        (3) An assessment of the procedures of the Department of 
    Defense for determining accountability, if any, in the command 
    structure of the Armed Forces in instances in which a terrorist 
    attack results in the loss of life at an overseas military 
    installation or facility.
        (4) A detailed description of the roles of the Office of the 
    Secretary of Defense, the Chairman of the Joint Chiefs of Staff, 
    the Secretaries of the military departments, and the combatant 
    commanders in providing guidance and support with respect to the 
    protection of members of the Armed Forces deployed overseas against 
    terrorist attack (both before and after the November 1995 bombing 
    in Riyadh, Saudi Arabia) and how these roles have changed since the 
    June 25, 1996, terrorist bombing at Khobar Towers in Dhahran, Saudi 
    Arabia.
        (5) A description of the actions taken by the Secretary of 
    Defense under subsections (a), (b), and (c) to provide adequate 
    troop protection equipment for units of the Armed Forces engaged in 
    a peace operation.

            Subtitle F--Matters Relating to Defense Property

SEC. 1061. LEASE OF NON-EXCESS PERSONAL PROPERTY OF MILITARY 
              DEPARTMENTS.

    (a) Receipt of Fair Market Value.--Subsection (b)(4) of section 
2667 of title 10, United States Code, is amended by striking out ``, in 
the case of the lease of real property,''.
    (b) Competitive Selection.--Such section is further amended--
        (1) by redesignating subsection (g) as subsection (h); and
        (2) by inserting after subsection (f) the following new 
    subsection:
    ``(g)(1) If a proposed lease under subsection (a) involves only 
personal property, the lease term exceeds one year, and the fair market 
value of the lease interest exceeds $100,000, as determined by the 
Secretary concerned, the Secretary shall use competitive procedures to 
select the lessee.
    ``(2) Not later than 45 days before entering into a lease described 
in paragraph (1), the Secretary concerned shall submit to Congress 
written notice describing the terms of the proposed lease and the 
competitive procedures used to select the lessee.''.
    (c) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:

``Sec. 2667. Leases: non-excess property of military departments''.

    (2) The table of sections at the beginning of chapter 159 of title 
10, United States Code, is amended by striking out the item relating to 
section 2667 and inserting in lieu thereof the following new item:
``2667. Leases: non-excess property of military departments.''.

    (d) Conforming Amendment.--Section 2490a(f)(2) of title 10, United 
States Code, is amended by striking out ``section 2667(g)'' and 
inserting in lieu thereof ``section 2667(h)''.

SEC. 1062. LEASE OF NON-EXCESS PROPERTY OF DEFENSE AGENCIES.

    (a) Lease Authority.--Chapter 159 of title 10, United States Code, 
is amended by inserting after section 2667 the following new section:

``Sec. 2667a. Leases: non-excess property of Defense agencies

    ``(a) Lease Authority.--Whenever the Secretary of Defense considers 
it advantageous to the United States, the Secretary may lease to such 
lessee and upon such terms as the Secretary considers will promote the 
national defense or to be in the public interest, personal property 
that is--
        ``(1) under the control of a Defense agency;
        ``(2) not for the time needed for public use; and
        ``(3) not excess property, as defined by section 3 of the 
    Federal Property and Administrative Services Act of 1949 (40 U.S.C. 
    472).
    ``(b) Limitation, Terms, and Conditions.--A lease under subsection 
(a)--
        ``(1) may not be for more than five years unless the Secretary 
    of Defense determines that a lease for a longer period will promote 
    the national defense or be in the public interest;
        ``(2) may give the lessee the first right to buy the property 
    if the lease is revoked to allow the United States to sell the 
    property under any other provision of law;
        ``(3) shall permit the Secretary to revoke the lease at any 
    time, unless the Secretary determines that the omission of such a 
    provision will promote the national defense or be in the public 
    interest;
        ``(4) shall provide for the payment (in cash or in kind) by the 
    lessee of consideration in an amount that is not less than the fair 
    market value of the lease interest, as determined by the Secretary; 
    and
        ``(5) may provide, notwithstanding any other provision of law, 
    for the improvement, maintenance, protection, repair, restoration, 
    or replacement by the lessee, of the property leased as the payment 
    of part or all of the consideration for the lease.
    ``(c) Competitive Selection.--(1) If the term of a proposed lease 
under subsection (a) exceeds one year and the fair market value of the 
lease interest exceeds $100,000, as determined by the Secretary of 
Defense, the Secretary shall use competitive procedures to select the 
lessee.
    ``(2) Not later than 45 days before entering into a lease described 
in paragraph (1), the Secretary shall submit to Congress a written 
notice describing the terms of the proposed lease and the competitive 
procedures used to select the lessee.
    ``(d) Disposition of Money Rent.--Money rentals received pursuant 
to a lease entered into by the Secretary of Defense under subsection 
(a) shall be deposited in a special account in the Treasury established 
for the Defense agency whose property is subject to the lease. Amounts 
in a Defense agency's special account shall be available, to the extent 
provided in appropriations Acts, solely for the maintenance, repair, 
restoration, or replacement of the leased property.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2667 the following new item:
``2667a. Leases: non-excess property of Defense agencies.''.

SEC. 1063. DONATION OF EXCESS CHAPEL PROPERTY TO CHURCHES DAMAGED OR 
              DESTROYED BY ARSON OR OTHER ACTS OF TERRORISM.

    (a) Authority To Donate.--Chapter 153 of title 10, United States 
Code, is amended by adding at the end the following new section:

``Sec. 2580. Donation of excess chapel property

    ``(a) Authority To Donate.--The Secretary of a military department 
may donate personal property specified in subsection (b) to an 
organization described in section 501(c)(3) of the Internal Revenue 
Code of 1986 that is a religious organization in order to assist the 
organization in restoring or replacing property of the organization 
that has been damaged or destroyed as a result of an act of arson or 
terrorism, as determined pursuant to procedures prescribed by the 
Secretary of Defense.
    ``(b) Property Covered.--(1) The property authorized to be donated 
under subsection (a) is furniture and other personal property that--
        ``(A) is in, or was formerly in, a chapel under the 
    jurisdiction of the Secretary of a military department and closed 
    or being closed; and
        ``(B) is determined by the Secretary to be excess to the 
    requirements of the armed forces.
    ``(2) No real property may be donated under this section.
    ``(c) Donees Not To Be Charged.--No charge may be imposed by the 
Secretary of a military department on a donee of property under this 
section in connection with the donation. However, the donee shall agree 
to defray any expense for shipping or other transportation of property 
donated under this section from the location of the property when 
donated to any other location.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:
``2580. Donation of excess chapel property.''.

SEC. 1064. AUTHORITY OF THE SECRETARY OF DEFENSE CONCERNING DISPOSAL OF 
              ASSETS UNDER COOPERATIVE AGREEMENTS ON AIR DEFENSE IN 
              CENTRAL EUROPE.

    (a) General Authorities.--The Secretary of Defense, pursuant to an 
amendment or amendments to the European air defense agreements, may 
dispose of any defense articles owned by the United States and acquired 
to carry out such agreements by providing such articles to the Federal 
Republic of Germany. In carrying out such disposal, the Secretary--
        (1) may provide without monetary charge to the Federal Republic 
    of Germany articles specified in the agreements; and
        (2) may accept from the Federal Republic of Germany (in 
    exchange for the articles provided under paragraph (1)) articles, 
    services, or any other consideration, as determined appropriate by 
    the Secretary.
    (b) Definition of European Air Defense Agreements.--For the 
purposes of this section, the term ``European air defense agreements'' 
means--
        (1) the agreement entitled ``Agreement between the Secretary of 
    Defense of the United States of America and the Minister of Defense 
    of the Federal Republic of Germany on Cooperative Measures for 
    Enhancing Air Defense for Central Europe'', signed on December 6, 
    1983; and
        (2) the agreement entitled ``Agreement between the Secretary of 
    Defense of the United States of America and the Minister of Defense 
    of the Federal Republic of Germany in implementation of the 6 
    December 1983 Agreement on Cooperative Measures for Enhancing Air 
    Defense for Central Europe'', signed on July 12, 1984.

SEC. 1065. SALE OF EXCESS, OBSOLETE, OR UNSERVICEABLE AMMUNITION AND 
              AMMUNITION COMPONENTS.

    (a) Authority.--(1) Chapter 443 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 4687. Sale of excess, obsolete, or unserviceable ammunition and 
            ammunition components

    ``(a) Authority To Sell Outside DoD.--The Secretary of the Army may 
sell to an eligible purchaser described in subsection (c) ammunition or 
ammunition components that are excess, obsolete, or unserviceable and 
have not been demilitarized if--
        ``(1) the purchaser enters into an agreement, in advance, with 
    the Secretary--
            ``(A) to demilitarize the ammunition or components; and
            ``(B) to reclaim, recycle, or reuse the component parts or 
        materials; or
        ``(2) the Secretary, or an official of the Department of the 
    Army designated by the Secretary, approves the use of the 
    ammunition or components proposed by the purchaser as being 
    consistent with the public interest.
    ``(b) Method of Sale.--The Secretary shall use competitive 
procedures to sell ammunition and ammunition components under this 
section, except that the Secretary may use procedures other than 
competitive procedures in any case in which the Secretary determines 
that there is only one potential buyer of the items being offered for 
sale.
    ``(c) Eligible Purchasers.--To be eligible to purchase excess, 
obsolete, or unserviceable ammunition or ammunition components under 
this section, the purchaser shall be a licensed manufacturer (as 
defined in section 921(10) of title 18) that, as determined by the 
Secretary, has a capability to modify, reclaim, transport, and either 
store or sell the ammunition or ammunition components sought to be 
purchased.
    ``(d) Hold Harmless Agreement.--The Secretary shall require a 
purchaser of ammunition or ammunition components under this section to 
agree to hold harmless and indemnify the United States from any claim 
for damages for death, injury, or other loss resulting from a use of 
the ammunition or ammunition components, except in a case of willful 
misconduct or gross negligence of a representative of the United 
States.
    ``(e) Verification of Demilitarization.--The Secretary shall 
establish procedures for ensuring that a purchaser of ammunition or 
ammunition components under this section demilitarizes the ammunition 
or ammunition components in accordance with any agreement to do so 
under subsection (a)(1). The procedures shall include onsite 
verification of demilitarization activities.
    ``(f) Consideration.--The Secretary may accept ammunition, 
ammunition components, or ammunition demilitarization services as 
consideration for ammunition or ammunition components sold under this 
section. The fair market value of any such consideration shall be equal 
to or exceed the fair market value or, if higher, the sale price of the 
ammunition or ammunition components sold.
    ``(g) Relationship to Arms Export Control Act.--Nothing in this 
section shall be construed to affect the applicability of section 38 of 
the Arms Export Control Act (22 U.S.C. 2778) to sales of ammunition or 
ammunition components on the United States Munitions List.
    ``(h) Definitions.--In this section:
        ``(1) The term `excess, obsolete, or unserviceable', with 
    respect to ammunition or ammunition components, means that the 
    ammunition or ammunition components are no longer necessary for war 
    reserves or for support of training of the Army or production of 
    ammunition or ammunition components.
        ``(2) The term `demilitarize', with respect to ammunition or 
    ammunition components--
            ``(A) means to destroy the military offensive or defensive 
        advantages inherent in the ammunition or ammunition components; 
        and
            ``(B) includes any mutilation, scrapping, melting, burning, 
        or alteration that prevents the use of the ammunition or 
        ammunition components for the military purposes for which the 
        ammunition or ammunition components was designed or for a 
        lethal purpose.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``4687. Sale of excess, obsolete, or unserviceable ammunition and 
          ammunition components.''.

    (b) Review of Initial Sales.--(1) For each of the first three 
fiscal years during which the Secretary of the Army sells ammunition or 
ammunition components under the authority of section 4687 of title 10, 
United States Code, as added by subsection (a), the Director of the 
Army Audit Agency shall conduct a review of sales under such section to 
ensure that--
        (A) purchasers that enter into an agreement under subsection 
    (a)(1) of such section to demilitarize the purchased ammunition or 
    ammunition components fully comply with the agreement; and
        (B) purchasers that are authorized under subsection (a)(2) of 
    such section to use the purchased ammunition or ammunition 
    components actually use the ammunition or ammunition components in 
    the manner proposed.
    (2) Not later than 180 days after the end of each fiscal year in 
which the review is conducted, the Secretary of the Army shall submit 
to Congress a report containing the results of the review for the 
fiscal year covered by the report.

SEC. 1066. TRANSFER OF B-17 AIRCRAFT TO MUSEUM.

    (a) Authority.--The Secretary of the Air Force may convey, without 
consideration to the Planes of Fame Museum, Chino, California (in this 
section referred to as the ``museum''), all right, title, and interest 
of the United States in and to the B-17 aircraft known as the 
``Picadilly Lilly'', an aircraft that has been in the possession of the 
museum since 1959. Such a conveyance shall be made by means of a 
conditional deed of gift.
    (b) Condition of Aircraft.--The Secretary may not convey ownership 
of the aircraft under subsection (a) until the Secretary determines 
that the museum has altered the aircraft in such manner as the 
Secretary determines necessary to ensure that the aircraft does not 
have any capability for use as a platform for launching or releasing 
munitions or any other combat capability that it was designed to have. 
The Secretary is not required to repair or alter the condition of the 
aircraft before conveying ownership of the aircraft.
    (c) Reverter Upon Transfer of Ownership or Possession.--The 
Secretary shall include in the instrument of conveyance of the 
aircraft--
        (1) a condition that the museum not convey any ownership 
    interest in, or transfer possession of, the aircraft to any other 
    party without the prior approval of the Secretary of the Air Force; 
    and
        (2) a condition that if the Secretary of the Air Force 
    determines at any time that the museum has conveyed an ownership 
    interest in, or transferred possession of, the aircraft to any 
    other party without the prior approval of the Secretary, all right, 
    title, and interest in and to the aircraft, including any repair or 
    alteration of the aircraft, shall revert to the United States, and 
    the United States shall have the right of immediate possession of 
    the aircraft.
    (d) Conveyance at No Cost to the United States.--The conveyance 
authorized by this section shall be made at no cost to the United 
States. Any costs associated with such conveyance, including costs of 
determining compliance with subsection (b), shall be borne by the 
museum.
    (e) Additional Terms and Conditions.--The Secretary of the Air 
Force 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.
    (f) Clarification of Liability.--Notwithstanding any other 
provision of law, upon conveyance of ownership of the B-17 aircraft 
specified in subsection (a) to the museum, the United States shall not 
be liable for any death, injury, loss, or damage that results from any 
use of that aircraft by any person other than the United States.

SEC. 1067. REPORT ON DISPOSAL OF EXCESS AND SURPLUS MATERIALS.

    (a) Report Required.--Not later than January 31, 1998, the 
Secretary of Defense shall submit to Congress a report on the actions 
that have been taken or are planned to be taken within the Department 
of Defense to address problems with the sale or other disposal of 
materials that are excess or surplus to the needs of the Department of 
Defense.
    (b) Required Content.--At a minimum, the report shall address the 
following issues:
        (1) The effort to standardize the coding of military equipment 
    for demilitarization at all stages of the process, from initial 
    acquisition through disposal.
        (2) The changes underway to improve the methods used for the 
    demilitarization of military equipment.
        (3) Recent efforts to improve the accuracy of coding performed 
    by Government employees and contractor employees.
        (4) Recent efforts to improve the enforcement of the penalties 
    that are applicable to Government employees and contractor 
    employees who fail to comply with rules or procedures applicable to 
    the demilitarization of military equipment.
        (5) The methods of oversight and enforcement used by the 
    Department of Defense to review the demilitarization of military 
    equipment by the purchasers of the equipment.
        (6) The current and planned controls designed to prevent the 
    inappropriate transfer of excess military equipment outside the 
    United States.
        (7) The current procedures used by the Department, including 
    repurchase, to recover military equipment that is sold or otherwise 
    disposed of without appropriate action having been taken to 
    demilitarize the equipment or to provide for demilitarization of 
    the equipment.
        (8) The legislative changes, if any, that would be necessary to 
    improve the recovery rate under the procedures identified under 
    paragraph (7).
    (c) Identification of Frequent Errors and Misuse.--Based on fiscal 
year 1997 findings, the Secretary of Defense shall identify in the 
report--
        (1) the 50 categories of military equipment that most 
    frequently received an erroneous demilitarization code; and
        (2) the categories of military equipment that are particularly 
    vulnerable to improper use after disposal.

                       Subtitle G--Other Matters

SEC. 1071. AUTHORITY FOR SPECIAL AGENTS OF THE DEFENSE CRIMINAL 
              INVESTIGATIVE SERVICE TO EXECUTE WARRANTS AND MAKE 
              ARRESTS.

    (a) Authority.--Chapter 81 of title 10, United States Code, is 
amended by inserting after section 1585 the following new section:

``Sec. 1585a. Special agents of the Defense Criminal Investigative 
            Service: authority to execute warrants and make arrests

    ``(a) Authority.--The Secretary of Defense may authorize any DCIS 
special agent described in subsection (b)--
        ``(1) to execute and serve any warrant or other process issued 
    under the authority of the United States; and
        ``(2) to make arrests without a warrant--
            ``(A) for any offense against the United States committed 
        in the presence of that agent; and
            ``(B) for any felony cognizable under the laws of the 
        United States if the agent has probable cause to believe that 
        the person to be arrested has committed or is committing the 
        felony.
    ``(b) Agents To Have Authority.--Subsection (a) applies to any DCIS 
special agent whose duties include conducting, supervising, or 
coordinating investigations of criminal activity in programs and 
operations of the Department of Defense.
    ``(c) Guidelines on Exercise of Authority.--The authority provided 
under subsection (a) shall be exercised in accordance with guidelines 
prescribed by the Inspector General of the Department of Defense and 
approved by the Attorney General and any other applicable guidelines 
prescribed by the Secretary of Defense or the Attorney General.
    ``(d) DCIS Special Agent Defined.--In this section, the term `DCIS 
special agent' means an employee of the Department of Defense who is a 
special agent of the Defense Criminal Investigative Service (or any 
successor to that service).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1585 the following new item:
``1585a. Special agents of the Defense Criminal Investigative Service: 
          authority to execute warrants and make arrests.''.

SEC. 1072. STUDY OF INVESTIGATIVE PRACTICES OF MILITARY CRIMINAL 
              INVESTIGATIVE ORGANIZATIONS RELATING TO SEX CRIMES.

    (a) Independent Study Required.--(1) The Secretary of Defense shall 
provide for an independent study of the policies, procedures, and 
practices of the military criminal investigative organizations for the 
conduct of investigations of complaints of sex crimes and other 
criminal sexual misconduct arising in the Armed Forces.
    (2) The Secretary shall provide for the study to be conducted by 
the National Academy of Public Administration. The amount of a contract 
for the study may not exceed $2,000,000.
    (3) The Secretary shall require that all components of the 
Department of Defense cooperate fully with the organization carrying 
out the study.
    (b) Matters To Be Included in Study.--The Secretary shall require 
that the organization conducting the study under this section 
specifically consider each of the following matters:
        (1) The need (if any) for greater organizational independence 
    and autonomy for the military criminal investigative organizations 
    than exists under current chain-of-command structures within the 
    military departments.
        (2) The authority of each of the military criminal 
    investigative organizations to investigate allegations of sex 
    crimes and other criminal sexual misconduct and the policies of 
    those organizations for carrying out such investigations.
        (3) The training (including training in skills and techniques 
    related to the conduct of interviews) provided by each of those 
    organizations to agents or prospective agents responsible for 
    conducting or providing support to investigations of alleged sex 
    crimes and other criminal sexual misconduct, including--
            (A) the extent to which that training is comparable to the 
        training provided by the Federal Bureau of Investigation and 
        other civilian law enforcement agencies; and
            (B) the coordination of training and investigative policies 
        related to alleged sex crimes and other criminal sexual 
        misconduct of each of those organizations with the Federal 
        Bureau of Investigation and other civilian Federal law 
        enforcement agencies.
        (4) The procedures and relevant professional standards of each 
    military criminal investigative organization with regard to 
    recruitment and hiring of agents, including an evaluation of the 
    extent to which those procedures and standards provide for--
            (A) sufficient screening of prospective agents based on 
        background investigations; and
            (B) obtaining sufficient information about the 
        qualifications and relevant experience of prospective agents.
        (5) The advantages and disadvantages of establishing, within 
    each of the military criminal investigative organizations or within 
    the Defense Criminal Investigative Service only, a special unit for 
    the investigation of alleged sex crimes and other criminal sexual 
    misconduct.
        (6) The clarity of guidance for, and consistency of 
    investigative tactics used by, each of the military criminal 
    investigative organizations for the investigation of alleged sex 
    crimes and other criminal sexual misconduct, together with a 
    comparison with the guidance and tactics used by the Federal Bureau 
    of Investigation and other civilian law enforcement agencies for 
    such investigations.
        (7) The number of allegations of agent misconduct in the 
    investigation of sex crimes and other criminal sexual misconduct 
    for each of those organizations, together with a comparison with 
    the number of such allegations concerning agents of the Federal 
    Bureau of Investigation and other civilian law enforcement agencies 
    for such investigations.
        (8) The procedures of each of the military criminal 
    investigative organizations for administrative identification 
    (known as ``titling'') of persons suspected of committing sex 
    crimes or other criminal sexual misconduct, together with a 
    comparison with the comparable procedures of the Federal Bureau of 
    Investigation and other civilian Federal law enforcement agencies 
    for such investigations.
        (9) The accuracy, timeliness, and completeness of reporting of 
    sex crimes and other criminal sexual misconduct by each of the 
    military criminal investigative organizations to the National Crime 
    Information Center maintained by the Department of Justice.
        (10) Any recommendation for legislation or administrative 
    action to revise the organizational or operational arrangements of 
    the military criminal investigative organizations or to alter 
    recruitment, training, or operational procedures, as they pertain 
    to the investigation of sex crimes and other criminal sexual 
    misconduct.
    (c) Report.--(1) The Secretary of Defense shall require the 
organization conducting the study under this section to submit to the 
Secretary a report on the study not later than one year after the date 
of the enactment of this Act. The organization shall include in the 
report its findings and conclusions concerning each of the matters 
specified in subsection (b).
    (2) The Secretary shall submit the report under paragraph (1), 
together with the Secretary's comments on the report, to Congress not 
later than 30 days after the date on which the report is submitted to 
the Secretary under paragraph (1).
    (d) Military Criminal Investigative Organization Defined.--For the 
purposes of this section, the term ``military criminal investigative 
organization'' means any of the following:
        (1) The Army Criminal Investigation Command.
        (2) The Naval Criminal Investigative Service.
        (3) The Air Force Office of Special Investigations.
        (4) The Defense Criminal Investigative Service.
    (e) Criminal Sexual Misconduct Defined.--For the purposes of this 
section, the term ``criminal sexual misconduct'' means conduct by a 
member of the Armed Forces involving sexual abuse, sexual harassment, 
or other sexual misconduct that constitutes an offense under the 
Uniform Code of Military Justice.

SEC. 1073. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--Title 10, United States Code, is 
amended as follows:
        (1) The tables of chapters at the beginning of subtitle A, and 
    at the beginning of part I of subtitle A, are each amended by 
    striking out ``471'' in the item relating to chapter 23 and 
    inserting in lieu thereof ``481''.
        (2) The tables of chapters at the beginning of subtitle A, and 
    at the beginning of part IV of subtitle A, are each amended by 
    striking out ``2540'' in the item relating to chapter 152 and 
    inserting in lieu thereof ``2541''.
        (3) Section 116(b)(2) is amended by striking out ``such 
    subsection'' and inserting in lieu thereof ``subsection (a)''.
        (4) Section 129c(e)(1) is amended by striking out ``section 
    115a(g)(2)'' and inserting in lieu thereof ``section 115a(e)(2)''.
        (5) Section 193(d)(1) is amended by striking out ``performs'' 
    and inserting in lieu thereof ``perform''.
        (6) Section 382(g) is amended by striking out ``the date of the 
    enactment of the National Defense Authorization Act for Fiscal Year 
    1997'' and inserting in lieu thereof ``September 23, 1996''.
        (7) Section 443(b)(1) is amended by striking out the period at 
    the end and inserting in lieu thereof a semicolon.
        (8) Section 445 is amended--
            (A) by striking ``(1)'' before ``Except with'';
            (B) by redesignating subparagraphs (A), (B), and (C) as 
        paragraphs (1), (2), and (3), respectively;
            (C) by striking ``(2)'' before ``Whenever it appears'' and 
        inserting ``(b) Injunctive Relief.--''; and
            (D) by striking out ``paragraph (1)'' and inserting in lieu 
        thereof ``subsection (a)''.
        (9) Section 858b(a)(1) is amended in the first sentence by 
    striking out ``forfeiture'' and all that follows through ``due that 
    member'' and inserting in lieu thereof ``forfeiture of pay, or of 
    pay and allowances, due that member''.
        (10) The item relating to section 895 (article 95) in the table 
    of sections at the beginning of subchapter X of chapter 47 is 
    amended by striking out ``Art.''.
        (11) Section 943(c) is amended--
            (A) by capitalizing the initial letter of the third word of 
        the subsection heading;
            (B) in the second sentence, by striking out ``Court'' and 
        inserting in lieu thereof ``court''; and
            (C) in the third sentence, by striking out ``such 
        positions'' and inserting in lieu thereof ``positions referred 
        to in the preceding sentences''.
        (12) Section 954 is amended by striking out ``this'' and 
    inserting in lieu thereof ``his''.
        (13) Section 971(b)(4) is amen