Bill summaries are authored by CRS.

Shown Here:
Passed Senate amended (07/11/1997)

TABLE OF CONTENTS:

Division A: Department of Defense Authorizations

Title I: Procurement

Subtitle A: Authorization of Appropriations

Subtitle B: Army Programs

Subtitle C: Navy Programs

Subtitle D: Air Force Programs

Subtitle E: Other Matters

Title II: Research, Development, Test, and Evaluation

Subtitle A: Authorization of Appropriations

Subtitle B: Program Requirements, Restrictions, and

Limitations

Subtitle C: Ballistic Missile Defense Programs

Subtitle D: Other Matters

Title III: Operation and Maintenance

Subtitle A: Authorization of Appropriations

Subtitle B: Depot-Level Activities

Subtitle C: Environmental Provisions

Subtitle D: Commissaries and Nonappropriated Fund

Instrumentalities

Subtitle E: Other Matters

Subtitle F: Sikes Act Improvement

Title IV: Military Personnel Authorizations

Subtitle A: Active Forces

Subtitle B: Reserve Forces

Subtitle C: Authorization of Appropriations

Title V: Military Personnel Policy

Subtitle A: Personnel Management

Subtitle B: Matters Relating to Reserve Components

Subtitle C: Education and Training Programs

Subtitle D: Decorations and Awards

Subtitle E: Military Personnel Voting Rights

Subtitle F: Other Matters

Title VI: Compensation and Other Personnel Benefits

Subtitle A: Pay

Subtitle B: Subsistence, Housing, and Other Allowances

Subtitle C: Bonuses and Special and Incentive Pays

Subtitle D: Retired Pay, Survivor Benefits, and Related

Matters

Subtitle E: Other Matters

Title VII: Health Care Provisions

Subtitle A: Health Care Services

Subtitle B: Uniformed Services Treatment Facilities

Subtitle C: Persian Gulf Illnesses

Title VIII: Acquisition Policy, Acquisition Management, and

Related Matters

Subtitle A: Amendments to General Contracting

Authorities, Procedures, and Limitations

Subtitle B: Contract Provisions

Subtitle C: Acquisition Assistance Programs

Subtitle D: Administrative Provisions

Subtitle E: Other Matters

Title IX: Department of Defense Organization and Management

Title X: General Provisions

Subtitle A: Financial Matters

Subtitle B: Naval Vessels and Shipyards

Subtitle C: Counter-Drug Activities

Subtitle D: Reports and Studies

Subtitle E: Other Matters

Title XI: Department of Defense Civilian Personnel

Title XII: Federal Charter for the Air Force Sergeants

Association

Division B: Military Construction Authorizations

Title XXI: Army

Title XXII: Navy

Title XXIII: Air Force

Title XXIV: Defense Agencies

Title XXV: North Atlantic Treaty Organization Security

Investment Program

Title XXVI: Guard and Reserve Forces Facilities

Title XXVII: Expiration and Extension of Authorizations

Title XXVIII: General Provisions

Subtitle A: Military Construction Program and Military

Family Housing Changes

Subtitle B: Land Conveyances

Subtitle C: Other Matters

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

Subtitle B: Recurring General Provisions

Subtitle C: Program Authorizations, Restrictions, and

Limitations

Subtitle D: Other Matters

Title XXXII: Defense Nuclear Facilities Safety Board

Title XXXIII: National Defense Stockpile

Title XXXIV: Naval Petroleum Reserves

Title XXXV: Panama Canal Commission

Subtitle A: Authorization of Expenditures From

Revolving Fund

Subtitle B: Facilitation of Panama Canal Transition

Title XXXVI: Miscellaneous Provisions

National Defense Authorization Act for Fiscal Year 1998 - Division A: Department of Defense Authorizations - Title I: Procurement - Subtitle A: Authorization of Appropriations - Authorizes appropriations for FY 1998 for procurement to the armed forces for aircraft, missiles, weapons and tracked combat vehicles, ammunition, and shipbuilding and conversion and for other procurement.

(Sec. 104) Authorizes appropriations for FY 1998 for: (1) defense-wide procurement; (2) reserve procurements; (3) the Defense Inspector General; (4) the chemical demilitarization program; (5) the Defense Health Program; and (6) the defense export loan guarantee program.

(Sec. 110) Reduces by $30 million the funds available for Army Procurement and Advisory Assistance Services.

Subtitle B: Army Programs - Prohibits the obligation of more than 25 percent of the funds authorized under this Act for helicopter modifications or upgrades until 30 days after the Secretary of the Army submits to the defense and appropriations committees a comprehensive plan for the modernization of the Army's helicopter fleet.

(Sec. 112) Authorizes the Secretary of the Army to enter into a multiyear contract for the procurement of: (1) AH-64D Longbow Apache fire control radar; and (2) vehicles of the Family of Medium Tactical Vehicles.

Subtitle C: Navy Programs - Earmarks funds for the New Attack Submarine program and authorizes the Secretary of the Navy to enter into procurement contracts for such program. Makes the Electric Boat Corporation and the Newport News Shipbuilding and Drydock Company eligible for such contracts. Repeals superseded provisions of prior defense authorization Acts.

(Sec. 122) Earmarks funds for the procurement and construction of nuclear and nonnuclear components for the CVN-77 nuclear aircraft carrier program. Earmarks funds for research, development, test, and evaluation (RDT&E) of such program from funds authorized under title II of this Act. Limits to $4.6 billion the authorized costs for such procurement. Directs the Secretary of the Navy to report annually to the defense and appropriations committees concerning any procurement cost changes under such program.

(Sec. 123) Provides an exception to a cost limitation for the Seawolf submarine program required under a prior defense authorization Act.

(Sec. 124) Prohibits resumption of serial production of the airborne self-protection jammer until the Director of Operational Test and Evaluation makes certain certifications to the Congress with respect to the capabilities of such jammer. Requires an additional certification from the Secretary of Defense (Secretary).

Subtitle D: Air Force Programs - Prohibits, with exceptions, any funds from being used to: (1) procure any additional B-2 bomber aircraft; or (2) maintain any part of the bomber industrial base solely to procure additional B-2 aircraft in the future.

(Sec. 132) Directs the Secretary of the Air Force to conduct and submit to the defense and appropriations committees a cost and operation effectiveness analysis with respect to specified air radar warning receivers.

Subtitle E: Other Matters - Prohibits, with exceptions, any funds from being used to purchase, lease, upgrade, or modify privately-owned drydocks.

(Sec. 142) Requires the Under Secretary of Defense for Acquisition and Technology to report to the defense committees an analysis of the requirements of the Department of Defense (DOD) for the replacement of aircraft engines derived from Boeing 707 aircraft and the costs of meeting those requirements.

(Sec. 143) Allows a working-capital funded Army industrial facility to sell articles or services to be incorporated into, or used in the manufacture of, a weapon system being procured by DOD without a determination by the Secretary of the Army that such articles or services are not available from a U.S. commercial source.

(Sec. 144) Makes funds authorized under this Act available for a NATO alliance ground surveillance capability based on the U.S. Joint Surveillance-Target Attack Radar System. Authorizes the modification of Air Force aircraft to incorporate such system.

Title II: Research, Development, Test, and Evaluation - Subtitle A: Authorization of Appropriations - Authorizes appropriations for FY 1998 for the armed forces for RDT&E.

Subtitle B: Program Requirements, Restrictions, and Limitations - Directs the Secretary to submit to the defense and appropriations committees a report on the options for the sequence in which the variants of the joint strike fighter are to be produced and fielded.

(Sec. 212) Places specified development, production, and funding limitations on the F-22 aircraft program. Requires an annual program review and report to the Congress by the Comptroller General (CG).

(Sec. 213) Limits the total demonstration costs through FY 2003 with respect to the high altitude endurance unmanned vehicle program. Requires program review by the CG.

(Sec. 214) Places an FY 1998 RDT&E funding limitation on the advanced anti-radiation guided missile program.

(Sec. 215) Allows no more than 6,206 staff years of technical effort to be funded during FY 1998 for federally funded research and development centers. Directs the Secretary to report to the defense and appropriations committees on the allocation of such staff years among such centers during FY 1998 and 1999.

(Sec. 216) Provides FY 1998 through 2000 funding goals among the military departments with respect to dual-use science and technology projects. Provides, with respect to such projects, for: (1) revised goals for national security reasons, after congressional notification; (2) the designation of a DOD official responsible for such projects; (3) a financial commitment from non-federal government participants; and (4) a report from the Secretary to the defense and appropriations committees.

(Sec. 217) Authorizes the Secretary, in the national interest, to transfer amounts made available under this Division to certain counterproliferation programs, projects, and activities. Limits to $50 million the total amount of such transfers.

(Sec. 218) Earmarks funds for: (1) the kinetic energy tactical anti-satellite technology program; (2) the Clementine 2 micro-satellite near-Earth asteroid interception mission; (3) bioassay testing of veterans exposed to ionizing radiation during military service; (4) the DOD-VA Cooperative Research program; (5) multitechnology integration in mixed-mode electronics; and (6) a facial recognition technology program.

Subtitle C: Ballistic Missile Defense Programs - Directs the Secretary to ensure that the National Missile Defense (NMD) program is structured and programmed to support a test in FY 1999 of an integrated NMD system that could achieve initial operational capability in FY 2003. Provides NMD system elements. Requires a report from the Secretary concerning NMD operational capability by such date. Provides FY 1998 NMD funding.

(Sec. 222) Directs the Secretary to: (1) transfer to the Ballistic Missile Defense Organization (BMDO) for procurement for FY 1998 funds from specified military accounts; and (2) ensure that, in the future-years defense program, the procurement funding for BMDO is programmed for BMDO accounts rather than appropriations accounts of the armed forces.

Subtitle D: Other Matters - Directs the Secretary to seek the participation of manufacturers of manufacturing equipment in projects under the manufacturing technology program.

(Sec. 232) Extends through FY 2001 the authority for the use by commercial entities of DOD major range and test facilities.

(Sec. 234) Revises and extends certain organizations within the national oceanographic partnership program.

(Sec. 235) Authorizes the Secretary to conduct during FY 1998 an alternative technology explosive munitions demilitarization demonstration program to demonstrate the use of existing, commercially available blast chamber technology for the incineration of explosive munitions as an alternative to open burning or detonation. Requires a report. Provides funding.

Title III: Operation and Maintenance - Subtitle A: Authorization of Appropriations - Authorizes appropriations for FY 1998 for operation and maintenance (O&M) for the armed forces and specified activities and agencies of DOD. Authorizes appropriations for FY 1998 for: (1) working capital and revolving funds; (2) the Armed Forces Retirement Home; and (3) the O&M of Fisher houses.

(Sec. 304) Authorizes the transfer of up to $150 million to FY 1998 O&M accounts from the National Defense Stockpile Transaction Fund.

(Sec. 306) Earmarks specified O&M funds for the operation of Fort Chaffee, Arkansas.

Subtitle B: Depot-Level Activities - Allows no more than 50 percent of the funds made available in a fiscal year for depot-level maintenance and repair (DLMR) workload to be used to contract for the performance of such workload in non-Government owned and operated facilities.

(Sec. 312) Directs the Secretary to designate each depot-level activity of the military departments and defense agencies as a Center of Industrial and Technical Excellence in the recognized core competencies of the activity. Provides for the formation of public-private partnerships for the performance of DLMR at such centers and for maximum utilization of center capacity.

(Sec. 313) Prohibits civilian DOD employees performing DLMR workloads from being managed on the basis of any end strengths or other personnel constraints.

(Sec. 314) Requires reports from the Secretary to the Congress on: (1) annual DLMR activities; and (2) the allocation of core logistics activities among DOD facilities and private sector facilities.

(Sec. 316) Requires a review and report from the CG concerning the Navy's practice of using temporary duty assignments of personnel to perform ship maintenance and repair work at homeports not having Navy shipyards.

(Sec. 317) Amends the National Defense Authorization Act for Fiscal Year: (1) 1996 to repeal a conditional repeal of certain DLMR laws and a related reporting requirement; and (2) 1991 to extend through FY 1998 the authority for naval shipyards and aviation depots to engage in defense-related production and services.

(Sec. 319) Expresses the sense of the Congress that the transfer of the ground communication-electronic workload to Tobyhanna Army Depot, Pennsylvania, should be carried out in adherence to the schedule prescribed by the Defense Depot Maintenance Council on March 13, 1997.

Subtitle C: Environmental Provisions - Revises provisions relating to the storage and disposal on DOD property of nondefense toxic and hazardous materials.

(Sec. 332) Requires additional information relating to the payment of fines and penalties assessed under environmental laws to be included in an annual report from the Secretary to the Congress on progress made in carrying out environmental restoration activities at military installations.

(Sec. 333) Directs the Secretary to report annually to the Congress on DOD overseas environmental activities.

(Sec. 335) Amends the National Defense Authorization Act for Fiscal Year 1997 to require certain additional information in cooperative agreements between the Secretary and an agency of a State or local government for obtaining assistance in certifying environmental technologies. Requires the Secretary to report to the Congress the guidelines established for reimbursing such agencies and for cost-sharing under such agreements.

(Sec. 336) Directs the Secretary to utilize specified risk assessment methods in evaluating DOD facilities for purposes of allocating funds and establishing priorities for environmental restoration projects under the defense environmental restoration program.

(Sec. 337) Directs the Secretary to prescribe regulations concerning the environmental restoration cost-recovery and cost-sharing activities of the military departments and defense agencies.

(Sec. 338) Authorizes the Secretary to 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 military facility. Provides for the use of sale proceeds.

(Sec. 339) Authorizes the Secretary to conduct and report to the Congress on a pilot program using existing technologies to determine: (1) the feasibility of tagging hydrocarbon fuels used by DOD for analysis and identification; (2) the deterrent effect of such tagging on the theft and misuse of such fuels; and (3) the extent to which such tagging assists in determining the source of surface and underground pollution. Provides funding.

(Sec. 340) Prohibits a DOD department or agency from procuring copying machine paper unless such paper contains 20 percent of post-consumer recycled paper as of January 1, 1998, 30 percent by a year later, and 50 percent by January 1, 2004. Provides exceptions. Requires a certification to the defense committees by the Secretary concerned if that department or agency will not be able to meet the 50 percent commitment by 2004.

(Sec. 341) Directs the Secretary to report to the Congress on available options for the disposal of chemical weapons and agents without the construction of additional disposal facilities in the continental United States.

Subtitle D: Commissaries and Nonappropriated Fund Instrumentalities - Authorizes the use of various revenues received by DOD for the construction and improvement of commissary store facilities.

(Sec. 352) Directs the Secretaries of the military departments to integrate the military exchange services no later than September 30, 2000. Requires the Secretaries to submit to the defense committees a plan for achieving such integration.

Subtitle E: Other Matters - Prohibits, except under specified narrow circumstances, the advance billing of a customer for a working-capital fund. Requires the Secretary to report to the defense and appropriations committees whenever the aggregate amount of such advance billings not covered by a congressional notification exceeds $50 million. Prohibits the total amount of such advance billings for DOD working-capital funds and the Defense Business Operations Fund for FY 1998 from exceeding $1 billion.

(Sec. 362) Authorizes the Secretary to operate a Center for Excellence in Disaster Management and Humanitarian Assistance at Tripler Army Medical Center, Hawaii. Authorizes an agreement with a higher education institution for joint operation of the Center. Provides FY 1998 funding.

(Sec. 363) Provides that, whenever an official of an executive agency proposes or takes an administrative action that affects military training or other readiness activity in a significantly adverse manner, the Secretary shall submit to the head of the executive agency proposing to take such action and the defense committees a notification of such action along with each adverse effect. Requires a notification copy to be transmitted to the President. Requires appropriate consultation between the Secretary and the head of the executive agency to attain the objective of the administrative action while eliminating or mitigating its adverse effects on readiness. Provides a temporary moratorium on such an administrative action until the earlier of: (1) the expiration of five days after notification; or (2) the date on which the Secretary and the agency head reach agreement on an alternate plan of action.

(Sec. 364) Authorizes the Secretary of the Army to provide financial assistance to a State to support Army National Guard activities in such State.

(Sec. 365) Authorizes the Secretary of the Army to sell to certain licensed manufacturers ammunition or ammunition components that are obsolete, unserviceable, or excess to the Army. Requires the purchaser to enter into an agreement to demilitarize or recycle such ammunition or components.

(Sec. 366) Requires the Director of the Defense Logistics Agency to develop and submit to the Congress a schedule for implementation of best commercial inventory practices for Agency supplies and equipment.

(Sec. 367) Authorizes the Secretary to carry out a pilot program to use commercial sources of services to improve the collection of DOD claims under aircraft engine warranties.

(Sec. 368) Authorizes the Secretary to make grants, conclude cooperative agreements, and supplement other Federal funds to assist a State or local government in enhancing that government's capability to support DOD efforts to privatize its military family support services.

(Sec. 369) Directs the Secretary of the Navy to carry out a demonstration program for the expanded use of multitechnology automated reader cards throughout the Navy and Marine Corps. Requires a report. Provides funding.

(Sec. 370) Authorizes a contract for the procurement of certain capital assets (having development or acquisition costs of not less than $100,000) financed by a working-capital fund to be awarded in advance of the availability of funds in the working-capital fund.

(Sec. 371) Earmarks funds for contracted training flight services.

Subtitle F: Sikes Act Improvement - Sikes Act Improvement Act of 1997 - Amends an Act of September 15, 1960, commonly known as the Sikes Act, to direct (current law authorizes) the Secretary to carry out a program for the conservation and rehabilitation of natural resources on military installations. Requires the Secretary of each military department to prepare and implement an integrated natural resources management plan (plan) for each military installation under his or her jurisdiction. Authorizes such Secretaries to provide for: (1) the conservation and rehabilitation of natural resources on such installations and the sustainable multipurpose use of such resources; and (2) public access to such installations to facilitate their use. Directs each Secretary to: (1) review military installations under his or her jurisdiction for which the preparation of a plan is appropriate; and (2) submit such determinations to the Secretary. Requires the Secretary to report such reviews to the Congress. Provides an opportunity for public comment on such plans.

(Sec. 384) Allows wildlife conservation fees collected at military installations which are subsequently closed to be transferred to another military installation and used for the same purpose.

(Sec. 385) Requires annual reviews and reports by the Secretaries of Defense and the Interior with respect to the implementation of such plans.

(Sec. 386) Authorizes multiyear cooperative agreements for plan implementation.

(Sec. 387) Provides for the enforcement on military installations of all Federal laws relating to natural resources conservation on Federal lands.

(Sec. 388) Requires the Secretary of each military department to ensure that sufficient numbers of trained natural resource management and law enforcement personnel are available and assigned to perform necessary tasks for plan compliance.

(Sec. 390) Designates such Act as the Sikes Act.

(Sec. 392) Extends through FY 2003 the authorization of appropriations for natural resources conservation programs on military installations, as well as equivalent programs on other public lands.

Title IV: Military Personnel Authorizations - Subtitle A: Active Forces - Provides the authorized end strengths for active-duty forces as of the end of FY 1998. Repeals a Federal provision requiring a permanent active-duty end strength sufficient to support two simultaneous major regional contingencies.

Subtitle B: Reserve Forces - Sets forth the authorized end strengths as of the end of FY 1998 for members of the Selected Reserve and reserve personnel on active duty in support of the reserves.

(Sec. 413) Authorizes for FY 1998 100 additional Air National Guard military technicians and 21 additional Air Force Reserve military technicians.

Subtitle C: Authorization of Appropriations - Authorizes appropriations for FY 1998 for military personnel.

Title V: Military Personnel Policy - Subtitle A: Personnel Management - Excludes certain active-duty and reserve officers currently on promotion lists from consideration by later promotion boards.

(Sec. 502) Increases the authorized number of officers authorized to be frocked (to wear the insignia of the next higher officer grade even though the promotion to such grade is not yet final).

(Sec. 503) Authorizes Navy chaplains who are not on the retired list to serve as a chief or deputy chief of Navy chaplains. Authorizes the Secretary of the Navy to defer the retirement of such officers if the person will be serving in such capacity during the deferred period.

(Sec. 504) States that a current limitation on the authorized period of recalled service shall not apply to chaplains or health care professionals assigned to active duty in such capacity, or to an officer assigned to duty with the American Battle Monuments Commission.

(Sec. 505) Requires mandatory retirement after: (1) 38 years of active commissioned service, in the case of lieutenant generals or vice admirals; and (2) 40 years of such service, in the case of generals or admirals.

Subtitle B: Matters Relating to Reserve Components - Terminates the Ready Reserve Mobilization Income Insurance Program. Requires the Secretary to study and report to the Congress on the reasons for fiscal deficiencies in such Program and whether there is a need for a new program.

(Sec. 512) Authorizes the separation of a reserve officer in an inactive status with the Standby Reserve who is not qualified for transfer to the Retired Reserve, or, if qualified, does not apply for such transfer.

(Sec. 513) Authorizes the retention until age 60 of military technicians in the grade of brigadier general.

(Sec. 514) Provides that the performance of honor guard functions by members of the National Guard at funerals for veterans may be treated as a Federal function for which appropriated funds may be used.

Subtitle C: Education and Training Programs - Authorizes the Secretary of the military department concerned to enter into an agreement with an authorized foreign government official to carry out a military academy foreign exchange study program. Provides agreement terms and special rules for the Federal recognition of foreign students studying in the United States.

(Sec. 522) Authorizes for instruction at the Community College of the Air Force enlisted members of the Army, Navy, or Air Force who are serving as instructors at an Air Force training school. (Currently, enrollment is limited to Air Force enlisted personnel.)

(Sec. 523) Preserves beyond a current ten-year delimiting period the educational assistance entitlement for members of the Selected Reserve serving on active duty in support of a contingency operation.

(Sec. 524) Repeals Federal law providing certain staffing and safety requirements for the Army Ranger Training Brigade.

(Sec. 525) Directs the Secretary to coordinate the establishment and maintenance of Junior ROTC units by the Secretaries of the military departments in order to maximize enrollment and enhance administrative efficiency in such units.

Subtitle D: Decorations and Awards - Makes eligible for the award of a military service medal for heroism a member of the Ready Reserve who was not in a duty status at the time the member distinguished himself by heroism.

(Sec. 532) Provides that time limits for the submission for recommendation for military decorations or awards shall not apply to specified individuals with respect to the award of the Silver Star Medal, the Navy and Marine Corps Medal, and the Distinguished Flying Cross.

(Sec. 533) Amends the National Defense Authorization Act for Fiscal Year 1996 to extend to February 9, 1998, the period for the receipt of recommendations for decorations and awards for certain military intelligence personnel previously prevented by secrecy requirements from receiving such awards.

(Sec. 534) Authorizes unit decorations to be awarded to certain units that supported the execution of combat operations during World War II.

(Sec. 535) Provides for retroactive special pension entitlement for specified Medal of Honor recipients or their survivors.

(Sec. 536) Authorizes the Secretary concerned to issue the Cold War service medal (not yet designed) to individuals who performed active duty or inactive duty training during the Cold War, served an additional period after their initial period of duty, and received no less than an honorable discharge.

Subtitle E: Military Personnel Voting Rights - Military Voting Rights Act of 1997 - Amends the Soldiers' and Sailors' Civil Relief Act of 1940 to provide that, for voting rights purposes, a person absent from a State in compliance with military orders shall not be deemed to have: (1) lost a residence in that State; or (2) acquired a residence in, or become a resident of, another State.

(Sec. 543) Amends the Uniformed and Overseas Absentee Voting Act to require each State, in elections for State and local offices, to permit absentee military personnel to use absentee voter procedures to vote in such elections and to accept and process military absentee voter registration applications.

Subtitle F: Other Matters - Expresses the sense of the Congress that the CG should study and report to the Congress on any inequality in the treatment of men and women in the armed forces arising out of statutes or regulations.

(Sec. 552) Establishes the Commission on Gender Integration in the Military to review and assess the current practices of the armed forces and the private sector pertaining to gender-integrated training.

(Sec. 553) Directs any commanding officer or officer in charge who receives a complaint alleging sexual harassment by a member of the military or a civilian DOD employee to act appropriately on such complaint within 72 hours and to ensure that the complaint investigation is completed within 14 days. Requires specified reports from such officers, the department Secretaries receiving the forwarded complaints, and the Secretary.

(Sec. 554) Requires exemplary moral and other appropriate conduct from all commanding officers and others in authority in the Army and Air Force.

(Sec. 555) Authorizes the Secretary concerned to allow a member of the armed forces or a civilian officer or employee of DOD or the Coast Guard to serve in a management capacity with specified military welfare societies and other authorized entities.

(Sec. 557) Directs the Secretary and the Chairman of the Joint Chiefs of Staff (JCS) to ensure that each officer selected as a defense attache in France holds or is promotable to the grade of brigadier general or, in the case of the Navy, rear admiral (lower half).

Title VI: Compensation and Other Personnel Benefits - Subtitle A: Pay - Waives any FY 1998 military pay increases tied to increases in the General Schedule of Compensation for Government employees. Increases the rates of basic pay by 2.8 percent, effective January 1, 1998.

Subtitle B: Subsistence, Housing, and Other Allowances - Part I: Reform of Basic Allowance for Subsistence - Entitles all enlisted personnel other than those in basic training to the basic allowance for subsistence (BAS). Provides a new BAS rate based on food costs. Allows BAS to be paid to enlisted personnel in advance for not more than three months. Directs the Secretary to prescribe policies regarding the use of dining and field messing facilities of the military departments. Provides transitional provisions with respect to the current BAS, terminating such transitional authority on January 1, 1998.

Part II: Reform of Housing and Related Allowances - Redesignates the basic allowance for quarters as the basic allowance for housing (BAH). Authorizes a temporary housing allowance for members in pay grades above E-4 who are in a travel or leave status between permanent duty stations. Authorizes the payment of a BAH for certain dependents of military personnel who die while on active duty. Provides special rules for the payment of a BAH to a member with dependents in the case of a member paying child support. Entitles to a BAH a member with dependents who is assigned to an unaccompanied tour of duty outside the continental United States. Repeals the variable housing allowance. States that a member without dependents who is not entitled to a BAH shall be entitled to a partial allowance for quarters determined by the Secretary.

(Sec. 617) Directs the Secretary to prescribe monthly rates for the BAH on a geographic-cost basis. Directs the Secretary to redetermine such rates when basic pay rates are increased. Provides for: (1) protection from housing rate reductions for certain personnel; and (2) a fiscal year limitation on the total allowances paid for housing located inside the United States. Directs the Secretary to prescribe the rate of the temporary housing allowance for members in a travel or leave status between permanent duty stations. Provides the rates of the BAH for dependents of members who die while on active duty and members paying child support, as well as the rate of the partial allowance for quarters for members without dependents.

(Sec. 618) Changes the dislocation allowance rates from a rate based on a member's pay grade to a rate based on a percentage of the monthly national average cost of housing for members of the same grade and dependency status.

(Sec. 619) Repeals Federal provisions: (1) making the family separation allowance equal to the basic allowance for quarters payable to a member without dependents in the same pay grade; and (2) providing a station allowance for members on duty outside the United States.

Part III: Other Amendments Relating to Allowances - Requires the President to adjust the basic pay of military personnel whenever the General Schedule of Compensation is adjusted. Authorizes the President to allocate such increases among pay grade and years-of-service categories, requiring congressional notification of any such allocation. Requires quadrennial assessment of such allocations.

(Sec. 627) Allows payment of the Ready Reserve muster duty allowance no later than 30 days after such duty is performed.

Subtitle C: Bonuses and Special and Incentive Pays - Extends through FY 1999 specified authorities currently scheduled to expire at the end of FY 1998 with respect to certain special pay and bonus programs within the regular and reserve armed forces.

(Sec. 634) Increases the aviation career incentive pay and the aviation continuation pay. Extends through FY 2005 the authority for the continuation pay.

(Sec. 636) Makes dental officers eligible for the same multiyear retention bonus currently paid to medical officers of the armed forces.

Increases dental officer special pay amounts.

(Sec. 638) Makes eligible for the Selected Reserve reenlistment bonus those Reserve enlisted personnel with less than 14 (currently, ten) years of total military service. Authorizes the payment of bonuses for consecutive three-year reenlistments. Revises bonus amounts.

(Sec. 639) Makes changes similar to the Selected Reserve reenlistment bonus for former enlisted personnel who enlist for three-year periods in the Selected Reserve.

(Sec. 640) Increases the special pay and bonuses authorized for nuclear qualified officers.

(Sec. 641) Authorizes the Secretary concerned to pay bonuses in lieu of special pay for enlisted personnel extending their tours of duty at designated overseas locations. Prohibits the concurrent receipt by such personnel of such an annual bonus and rest and recuperative absence or transportation. Requires pro rata repayment of an unearned bonus.

(Sec. 642) Makes inapplicable to the Secretaries of Commerce and Health and Human Services the authority to pay a reserve affiliation agreement bonus to members of the Coast Guard who agree to perform in the reserves after their required active-duty period.

Subtitle D: Retired Pay, Survivor Benefits, and Related Matters - Authorizes a participant in the Survivor Benefit Plan (SBP) to elect to discontinue participation 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. Requires spousal concurrence, with an exception.

(Sec. 652) Allows at any time (currently, within one year after remarriage) a change of election in SBP coverage to provide an annuity to a spouse instead of a former spouse.

(Sec. 653) Considers SBP coverage as paid in its entirety after the earlier of 30 years of pay deductions for such coverage or the month in which the member attains 70 years of age.

(Sec. 654) Authorizes the Secretary concerned to pay an annuity to the qualified surviving spouse of each member who: (1) died before March 21, 1974, and was entitled to retired or retainer pay at the time of death; or (2) was a reserve member between September 21, 1972, and October 1, 1978, and at the time of death would have been entitled to retired or retainer pay except for not having attained 60 years of age. Provides annuity amounts. Terminates annuity payment authority on September 30, 2001.

Subtitle E: Other Matters - Entitles to basic pay and allowances, medical and dental care, and disability retirement or separation benefits, as well as for the recovery, care, and disposition of remains, a reserve member who is physically disabled as a result of injury, illness, or disease aggravated in the line of duty while remaining overnight immediately before the commencement of inactive-duty training.

(Sec. 662) Authorizes the Secretary concerned to pay travel and transportation allowances for dependents of members sentenced by court-martial when action on the sentence is pending.

(Sec. 663) Makes members of the Public Health Service, National Guard, and National Oceanic and Atmospheric Administration eligible for reimbursement of certain adoption expenses.

(Sec. 664) Expresses the sense of the Congress that the Secretary should strive: (1) to eliminate the need for military personnel and their families to subsist at, near, or below the poverty level; and (2) to implement and fund programs to elevate such standard of living significantly above such level. Requires a study by the Secretary of such military families. Directs the Secretary of Agriculture to make available to the Secretary the same payments and commodities for military personnel outside the United States as are made for the special supplemental food program in the United States under the Child Nutrition Act of 1966. Requires an implementation report.

Title VII: Health Care Provisions - Subtitle A: Health Care Services - Amends the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) to direct the administering Secretaries (Secretaries of Defense, Health and Human Services, and Transportation with respect to the Coast Guard when not operating under the Navy) to waive any required deductibles, copayments, or annual fees on behalf of military personnel assigned to permanent duty as recruiters, educational instructors, or unit advisors and residing more than 50 miles or one hour from the nearest military health care facility.

(Sec. 702) Authorizes the Secretary to pay the costs of any overseas emergency health care provided to military and civilian personnel of the On-Site Inspection Agency. Provides funding.

(Sec. 703) Directs the administering Secretaries to prescribe regulations requiring each source dispensing a prescription medication under CHAMPUS to furnish to the recipient cautionary information on such medication.

(Sec. 704) Authorizes CHAMPUS medical and dental care for certain reserve personnel who were Persian Gulf War veterans and who register a symptom or illness presumed to be a result of such service.

(Sec. 705) Authorizes the Secretary to collect dental insurance premiums through military pay deductions.

(Sec. 706) Makes the administering Secretaries (currently, only the Secretary of Defense) responsible for CHAMPUS dental plan coverage for certain military retirees and their dependents.

(Sec. 707) Authorizes the provision of the following prosthetic devices to military dependents: (1) artificial limbs, voice prostheses, and artificial eyes; and (2) any device determined necessary due to one or more significant impairments resulting from trauma, congenital anomaly, or disease.

(Sec. 708) Expresses the sense of the Congress that the Congress and the President should address the problems associated with the provision of quality health care to military retirees.

(Sec. 709) Amends the National Defense Authorization Act for Fiscal Year 1995 to extend through FY 1999 the chiropractic health care demonstration program. Requires such program to be expanded to at least three other military health care facilities, including the National Naval Medical Center and the Walter Reed Army Medical Center. Directs the Secretary to: (1) report to the defense committees on the additional facilities participating in the program; and (2) modify the program to evaluate its effectiveness at the additional facilities.

(Sec. 710) Authorizes the Secretary of the Air Force, after 90 days' notice to the defense and appropriations committees, to enter into an agreement with Gerald Champion Hospital, Alamagordo, New Mexico, for the provision of health care services to eligible individuals in a medical resource facility in Alamagordo that is constructed, in part, using funds provided by the Secretary under the agreement.

(Sec. 711) Directs the Secretary to study and report to the appropriate congressional committees on the provision to TRICARE beneficiaries of comparative information on the medical assistance provided by a managed care entity.

Subtitle B: Uniformed Services Treatment Facilities - Amends the National Defense Authorization Act for Fiscal Year 1997 to authorize the Secretary to modify the effective date for implementation of military health care designated provider agreements to permit a transition period of not more than six months between the date of agreement execution and the date on which the designated provider commences delivery of health care services. Provides for the temporary continuation during such period of existing health care participation agreements. Directs the Secretary, in establishing the ceiling rate for designated provider enrollees who are also eligible for CHAMPUS services, to take into account the health status of such enrollees. Requires a designated provider to be considered part of DOD for purposes of the continued acquisition of reduced-cost drugs for enrollees under the agreement.

Subtitle C: Persian Gulf Illnesses - Directs the Secretaries of Defense and Veterans Affairs to jointly prepare and submit to the Congress a plan to provide appropriate health care to Persian Gulf veterans (and their dependents) who suffer from a Gulf War illness.

(Sec. 753) Directs the Secretary to establish a system to assess the medical conditions of military personnel who are deployed outside the United States or its territories and possessions as part of a contingency or combat operation.

(Sec. 754) Directs the Secretary to report to the Congress a plan for: (1) collecting and maintaining information regarding the daily location of military units serving in a theater of operations during a contingency or combat operation; and (2) the deployment, in such a theater during such an operation, of a specialized military unit with the capability to detect and monitor the presence of chemical, biological, and environmental hazards.

(Sec. 755) Requires the Secretary to provide specified notice to military personnel receiving a drug which is unapproved for its intended use.

(Sec. 756) Directs the Secretary to report to the Congress evaluating the effectiveness of medical research initiatives regarding Gulf War illnesses.

(Sec. 757) Directs the Secretaries of Defense and Veterans Affairs to jointly establish a program of cooperative clinical trials at multiple sites to assess the effectiveness of treatment protocols for Persian Gulf veterans who suffer from ill-defined or undiagnosed conditions. Provides funding.

Title VIII: Acquisition Policy, Acquisition Management, and Related Matters - Subtitle A: Amendments to General Contracting Authorities, Procedures, and Limitations - Authorizes the head of a defense agency to waive a restriction against entering into undefinitized contract actions when determined necessary in order to support a humanitarian or peacekeeping operation.

(Sec. 803) Authorizes the Secretary or the Secretary concerned to enter into a contract for the procurement of severable services for a period that crosses fiscal years, as long as the contract period does not exceed one year.

(Sec. 804) Makes unallowable as costs under a defense contract compensation costs of contractor senior executives which exceed the benchmark compensation amount determined under this section by the Administrator for Federal Procurement Policy under the Office of Federal Procurement Policy Act. Makes an identical nonallowability amendment under the Federal Property and Administrative Services Act of 1949.

(Sec. 805) Authorizes the purchase by DOD of right-hand drive vehicles at a cost of up to $30,000 (currently $12,000) each.

(Sec. 806) Authorizes the Secretary of the Navy (currently, the Secretary of Defense) to enter into shipbuilding capability preservation agreements (currently, defense capability preservation agreements). Directs the Secretary of the Navy to: (1) establish application procedures and procedures for the expeditious consideration of such agreements; and (2) report to the defense and appropriations committees on applications for such agreements.

(Sec. 807) Amends the Drug-Free Workplace Act of 1988 to remove a certification requirement for grants authorized under such Act.

(Sec. 808) Repeals Federal provisions prohibiting the Secretary concerned from adjusting the price under a shipbuilding contract to reflect an amount set forth in a claim or demand for payment under such contract arising out of certain contract events.

(Sec. 809) Authorizes the Secretary to waive a current limitation on the procurement of goods from outside the United States if the Secretary determines that: (1) the application of such limitation against a foreign country would impede cooperative agreements entered into between such country and DOD, or would impede the reciprocal procurement of defense items; and (2) the country does not discriminate against defense items produced in the United States to any greater degree than the United States discriminates against defense items produced in that country.

Subtitle B: Contract Provisions - Revises the guarantees required of a defense prime contractor (conformity, free from defects) when entering into a contract for the production of a major system (currently, major weapon system). Provides an exception for a major system or system component furnished by the United States.

(Sec. 812) Provides for vesting of title to the United States under contracts paid under partial or progress payment arrangements.

Subtitle C: Acquisition Assistance Programs - Earmarks funds for FY 1998 for the procurement technical assistance program and specific programs under such program.

(Sec. 822) Amends the National Defense Authorization Act for: (1) Fiscal Year 1991 to extend through FY 2000 the pilot mentor-protege program; and (2) Fiscal Years 1990 and 1991 to extend through FY 2000 a test program for the negotiation of comprehensive subcontracting plans.

Subtitle D: Administrative Provisions - Provides for the retention of amounts collected from a contractor as a result of claims under the Contract Disputes Act of 1978 during the pendency of any litigation concerning such claim. Directs the Under Secretary of Defense (Comptroller) to report annually to the Congress on any such amounts available for obligation.

(Sec. 832) Prohibits disclosure for a five-year period of certain information submitted to DOD as part of a possible award of a cooperative agreement.

(Sec. 833) Revises content requirements with respect to limited selected acquisition reports and unit cost reports.

(Sec. 835) Directs the Under Secretary of Defense for Acquisition and Technology to designate an official to serve as a central point of contact for certain contracting information.

Subtitle E: Other Matters - Amends the National Defense Authorization Act for Fiscal Year 1995 to extend through FY 1999 a required report concerning DOD payment of any business restructuring costs under a defense contract. Requires specified reports from the Secretary and the CG with respect to the effect on DOD of any business combinations of major defense contractors.

(Sec. 842) Authorizes the director of a defense agency, when considered advantageous, to lease nonexcess personal property of that agency under specified terms and conditions, including a lease term of no more than five years (unless the national defense or public interest would be better served by a longer lease). Requires lease amounts received to be used solely for the maintenance, repair, or replacement of the leased property.

(Sec. 843) Directs the Secretary concerned, upon presidential approval of a report of a selection board for the promotion above grade O-4 of a member of the Acquisition Corps of a military department, to submit a copy of such report to the Under Secretary of Defense for Acquisition and Technology for review. Requires a subsequent report from such Under Secretary to the defense committees.

(Sec. 844) Amends the Office of Federal Procurement Policy Act to direct the head of each executive agency to establish, maintain, and use procedures and processes that employ electronic commerce in the conduct and administration of its procurement system. Provides applicable standards, agency procedures, and implementation requirements. Repeals requirements for: (1) the implementation of a Federal acquisition computer network architecture (FACNET); (2) a GAO report on FACNET implementation; and (3) conditions for the use of simplified acquisition procedures in FACNET-related procurements. Requires DOD and the military departments and defense agencies, as well as the head of each executive agency, to implement such electronic commerce capability within their respective areas. Requires the designation of a program manager within each such department and agency to implement such capability.

(Sec. 845) Expresses as congressional policy that each executive agency head should achieve, on average, 90 percent of the cost, performance, and schedule goals established for major acquisition programs of that agency.

(Sec. 846) Amends the Clinger-Cohen Act of 1996 to revise the process requirements for the solutions-based contracting pilot program.

(Sec. 847) Amends the National Defense Authorization Act for Fiscal Year 1993 to extend through FY 1999 the applicability of specified standards for defense acquisition workforce training.

(Sec. 848) Directs DOD and Federal Prison Industries to jointly study and report to the Senate defense and judiciary committees on the existing procurement procedures, regulations, and statutes governing procurement transactions between such entities.

Title IX: Department of Defense Organization and Management - Establishes in DOD a National Defense University made up of specified component institutions already in existence.

(Sec. 903) Authorizes the CINC Initiative Fund to be used for force protection.

(Sec. 904) Directs the Secretary to transfer functions of the Tactical Intelligence and Related Activities aggregation to DOD officials outside of the intelligence community, along with the funding for such activities.

(Sec. 905) Establishes a Senior Representative of the National Guard Bureau.

(Sec. 906) Includes within the National Defense University the Center for Hemispheric Defense Studies. Authorizes the Secretary to appoint and employ a Director and Deputy Director of such Center.

Title X: General Provisions - Subtitle A: Financial Matters - Authorizes the Secretary, in the national interest, to transfer amounts of authorizations made available to DOD under this Division for FY 1998 between any such authorizations for that fiscal year, with a total transfer limit of $2.5 billion. Requires congressional notification of any such transfers.

(Sec. 1002) Authorizes certain unauthorized FY 1997 defense appropriations to be obligated for DOD programs, projects, and activities in accordance with FY 1997 defense appropriations.

(Sec. 1003) Adjusts the amounts authorized to DOD for FY 1997 by the amount by which appropriations pursuant to such authorization were increased or decreased in the 1997 Emergency Supplemental Appropriations Act for Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those in Bosnia.

(Sec. 1004) Amends the National Defense Authorization Act for Fiscal Year 1996 to increase from $2 billion to $3.1 billion the amount authorized to be transferred between any defense authorizations for that fiscal year.

(Sec. 1005) Directs the Secretary to submit biannually to the Congress a strategic plan for improving financial management within DOD.

(Sec. 1006) Allows Fisher House trust funds to be used only for the operation (currently, operation and maintenance) of Fisher Houses.

(Sec. 1007) Authorizes the Secretary to use specified FY 1991 Army procurement funds to reimburse the Government for any judgment against the United States rendered in the case of a certain appeal by the McDonnell Douglas Company.

(Sec. 1008) Prescribes information required to be included by the Secretary in each future-years defense program with respect to the procurement of equipment and military construction for each of the reserve components. Provides for a conditional report with respect to such procurements.

(Sec. 1009) Reduces amounts authorized under this Act for: (1) the environmental management science program; (2) environment, safety and health, defense; (3) other procurement, Navy; and (4) O&M, defense. Increases amounts authorized for: (1) former Soviet Union threat reduction; (2) the Department of Energy (DOE) for other defense activities; and (3) DOE for arms control. Authorizes appropriations to DOE for FY 1998 for international nuclear safety programs.

Amends the National Defense Authorization Act for Fiscal Year 1997 to: (1) authorize the use of funds for training programs and assistance related to the use of equipment, materials, and technology to detect the movement into the United States of weapons of mass destruction; (2) allow funds for international border security to remain available through FY 1999; and (3) authorize the Secretary to vary by up to 15 percent amounts available for cooperative threat reduction programs under such Act and the FY 1996 defense authorization Act.

Subtitle B: Naval Vessels and Shipyards - Authorizes the Secretary of the Navy to enter into a long-term charter for a vessel to support the Surveillance Towed Array Sensor Program through FY 2004.

(Sec. 1012) Outlines procedures for the sale of vessels stricken from the Naval Vessel Register.

(Sec. 1013) Authorizes the Secretary of the Navy to sell specified naval vessels to Brazil, Chile, Egypt, Israel, Malaysia, Mexico, the Taipei Economic and Cultural Representative Office in the United States, and Thailand. Requires such Secretary, as a condition of such sales, to require any pre-sale vessel repair or refurbishment to be performed at a U.S. shipyard, including a Navy shipyard.

Subtitle C: Counter-Drug Activities - Amends the National Defense Authorization Act for Fiscal Year 1997 to extend through FY 1998 the authority to provide certain support for counter-drug activities of Mexico.

(Sec. 1022) Authorizes the Secretary, during FY 1998 through 2002, to provide to either or both of the Governments of Peru and Colombia specified support for counter-drug activities. Provides funding and requires certain congressional certification and a 15-day waiting period before fund obligation or expenditure. Prohibits the Secretary from obligating or expending any funds for such support until the Secretary and the Secretary of State have developed and submitted to specified congressional committees a riverine counter-drug plan.

Subtitle D: Reports and Studies - Repeals various reports and reporting requirements under Federal armed forces provisions, prior defense authorization and appropriations Acts, and the Office of Federal Procurement Policy Act.

(Sec. 1032) Requires the JCS Chairman to develop a common means of measuring the operations and personnel tempos of each military department.

(Sec. 1033) Directs the Secretary to report to the Congress on the overseas deployment of military personnel.

(Sec. 1034) Directs the JCS Chairman to submit to the defense and appropriations committees a report on the military readiness requirements of the active and reserve forces as prepared by the JCS Chairman and the commanders of the unified commands.

(Sec. 1035) Directs the Secretary to report to the defense committees on the readiness posture of units of the armed forces that provides for a rotation of such units between states of high and low readiness.

(Sec. 1036) Expresses the sense of the Congress that: (1) the President should develop alternatives to the current arrangement for forward basing of U.S. armed forces outside the United States; and (2) a continued U.S. military presence in the Pacific Rim is vital to U.S. protection of interests in that region. Directs the Secretary to report to the defense committees on defense overseas infrastructure requirements.

(Sec. 1037) Directs the Under Secretary of Defense (Comptroller) to report annually to the defense committees on aircraft in the DOD inventory.

(Sec. 1038) Directs the Secretary to report to the Congress on actions taken or planned within DOD to address problems involved with the sale or other disposition of excess materials.

(Sec. 1039) Directs the Secretary to conduct a comprehensive review of, and report to the defense committees on, the current Federal protections and benefits afforded to former spouses of current and former military personnel and to former spouses of current and former Federal employees.

(Sec. 1040) Adds to the information required to be provided by the CG with respect to audits, evaluations, investigations, and related work conducted within the General Accounting Office.

(Sec. 1041) Directs the Secretary to: (1) conduct a study of eye safety at military small arms firing ranges; and (2) develop a protocol for reporting eye injuries incurred during such activities. Requires a report.

(Sec. 1042) Directs the Secretary to report to specified committees on DOD programs and policies: (1) intended to promote healthy life styles among military personnel and their dependents; and (2) relating to the protection of military personnel abroad from terrorist attack.

(Sec. 1044) Directs the Secretary to report to the Congress on: (1) the advisability of establishing a process for conducting a single, public investigation of each DOD aviation accident; and (2) assistance provided by DOD to families of casualties among DOD armed forces and civilian personnel. Requires a related review and report by the DOD Inspector General.

(Sec. 1045) Directs the President to report to the defense and appropriations committees on the Helsinki Joint Statement on future reductions in nuclear forces.

(Sec. 1046) Directs the Secretary to review, assess, and report to the defense committees on Cuban military capabilities and the threats to U.S. national security posed by Fidel Castro and Cuba.

(Sec. 1047) Directs the Secretary of the Army to report to the defense and appropriations committees a plan to address the requirements for fire protection and hazardous materials protection services at Fort Meade, Maryland.

(Sec. 1048) Directs the Secretary to report to the Congress assessing U.S. dependence on foreign sources for certain resistors and capacitors.

Subtitle E: Other Matters - Directs the Secretary to submit to the President a recommended amendment to the Military Rules of Evidence that recognizes an evidentiary privilege regarding disclosure by a psychotherapist of confidential communications of a patient.

(Sec. 1052) Amends the National Defense Authorization Act for Fiscal Year 1993 to extend through FY 1998 the National Guard Civilian Youth Opportunities pilot program. Limits the total number of programs carried out to the number in existence at the end of FY 1995. Provides Federal cost share limits. Limits to $20 million the authorized expenditures under the program for a fiscal year.

(Sec. 1053) Directs the Secretary to ensure that units of the armed forces engaged in peace operations have adequate troop protection equipment. Requires a report.

(Sec. 1054) Prohibits DOD funds from being obligated or expended during FY 1998 for retiring or dismantling specified strategic nuclear delivery systems below certain levels. Provides a waiver in order to implement the SALT II Treaty. Provides funding limitations with respect to substantial early deactivations to reach such levels. Requires the President to report to the Congress on such actions. Directs the Secretary to report to the defense and appropriations committees a contingency plan for the sustainment beyond October 1, 1999, of U.S. strategic nuclear delivery systems and alternative force structures in the event that a strategic arms reduction agreement subsequent to the Strategic Arms Reduction Treaty does not enter into force before 2004.

(Sec. 1055) Authorizes the Secretary concerned to accept payments of landing fees for the use of overseas military airfields by civilian aircraft.

(Sec. 1056) Amends the Weapons of Mass Destruction Control Act of 1992 to extend through FY 1998 the International Nonproliferation Initiative (with the same $15 million spending limit for the additional fiscal year).

(Sec. 1057) Authorizes DOD's On-Site Inspection Agency, upon request of the facility's owner or operator, to provide technical assistance to a facility that is subject to a routine or challenge inspection under the Chemical Weapons Convention.

(Sec. 1058) Expresses the sense of the Senate that the President should: (1) ensure that the United States is able to construct and operate necessary facilities for the destruction of the U.S. stockpile of lethal chemical agents and munitions as required under the Chemical Weapons Convention; and (2) encourage Federal-State negotiations to meet concerns about actions being taken to carry out such demilitarization.

(Sec. 1059) Expresses the sense of the Congress prohibiting, except in specific limited circumstances, the authorization of appropriations for reserve component modernization activities not included in a DOD budget request.

(Sec. 1060) Authorizes the Secretary (currently, the CG) to waive certain time limitations for the settling of claims relating to military pay, allowances, and other benefits.

(Sec. 1061) Directs the Secretary to report to the Congress on actions taken to ensure adequate coordination of operational intelligence support for the commanders of the combatant commands and deployed military units.

(Sec. 1063) Authorizes the appropriate official, under specified circumstances, to deny a request for public disclosure of safety-related information that has been provided voluntarily by an air carrier as part of a contract for the charter air transportation of military personnel.

(Sec. 1064) Directs the Secretary, with respect to the Global Positioning System (GPS), to: (1) provide for the sustainment of its capabilities and services that are beneficial to U.S. national security; (2) prevent its hostile use; (3) sustain its capabilities and services for peaceful civil, commercial, and scientific uses on a continuous worldwide basis free from direct user fees; (4) use it to meet performance requirements of the Federal Radionavigation Plan; (5) augment the system to enhance its support of transportation; and (6) find new and expanded civil uses. Calls for international cooperation with respect to GPS use. Requires a GPS report from the Secretary to the defense and appropriations committees.

(Sec. 1065) Authorizes special agents of the Defense Criminal Investigative Service to carry firearms, execute and serve warrants, and make arrests without warrants for certain offenses.

(Sec. 1066) Amends the Military Construction Authorization Act, 1968 to repeal the requirement for the continued operation of the Naval Academy Dairy Farm in Gambrills, Maryland.

(Sec. 1067) Requires the Director of Central Intelligence to provide analytical support on POW-MIA matters to all Federal departments and agencies involved with such matters.

(Sec. 1068) Protects Federal employees from retaliation for certain disclosures of classified information when such information is disclosed: (1) to provide evidence of a violation of law, gross mismanagement, waste of funds, abuse of authority, substantial and specific danger to public health or safety, or a false statement to the Congress; and (2) to a person or element having oversight responsibilities and cleared for the receipt of such information. Expresses the sense of the Congress that the DOD Inspector General should continue to exercise current regulatory authority regarding reprisals for disclosures by defense contractor employees of classified and certain unclassified information to the Congress and the Department of Justice.

(Sec. 1069) Amends the Veterans' Benefits Improvements Act of 1996 to make certain Federal pay authorities inapplicable to Federal annuitants or former military personnel who are members of the Commission on Servicemembers and Veterans Transition Assistance.

(Sec. 1070) Authorizes the Secretary of the Air Force to transfer to the Planes of Fame Museum, Chino, California, all rights and interest to the aircraft known as the "Picadilly Lilly."

(Sec. 1071) Extends through FY 2002 the aviation insurance program.

(Sec. 1072) Prohibits a military flight operation from being treated as a transportation program held on or over public land requiring prior approval by the Secretary of Transportation.

(Sec. 1073) Amends the Immigration and Nationality Act to provide for the naturalization of Philippine nationals who served honorably in the U.S. armed forces during World War II.

(Sec. 1074) Designates Bob Hope as an honorary veteran of the U.S. armed forces.

(Sec. 1075) Amends the Federal criminal code to make it unlawful for any person to teach or demonstrate the making of an explosive, destructive device, or weapon of mass destruction or to distribute such information to be used for an activity that constitutes a Federal, State, or local criminal offense. Provides penalties.

(Sec. 1076) Prohibits interment in a national cemetery or other Federal burial benefits for any person convicted of a Federal capital offense.

(Sec. 1077) Requires the display on specified days of the POW-MIA flag at major military installations, national cemeteries, specified national memorials, the White House, and certain Federal offices.

(Sec. 1078) Authorizes the Secretary of the Army to donate to religious organizations certain excess Army property formerly housed in military chapels in order to assist such organizations in restoring or replacing property damaged or destroyed by acts of arson or terrorism.

(Sec. 1079) Directs the Secretary to report to the Congress on the command selection process for district engineers of the Army Corps of Engineers.

(Sec. 1080) Directs the CG to study the national security risks relating to the sale of supercomputers to end-users in Tier 3 countries. Requires publication of such end-user list.

(Sec. 1081) Authorizes the Secretary concerned to pay claims for loss and damage to personal property suffered by military personnel residing in the vicinity of Grand Forks Air Force Base, North Dakota, as a direct result of flooding in the Red River Basin during April and May, 1997.

(Sec. 1082) Directs the President to have each nation that has cooperative military relations with the United States take specified actions to increase its share of the common defense burden of such nation and the United States. Authorizes the President to take certain actions to induce such cooperation, including reduction of U.S. personnel levels in such nation and the imposition of fees for such protection. Requires a report from the Secretary to the Congress on steps taken by the President and other nations to increase such burdensharing. Directs the President to review and report to the Congress on the status of elements of U.S. armed forces permanently stationed outside the United States.

(Sec. 1083) Expresses the sense of the Congress that: (1) U.S. ground combat forces should not participate in a follow-on force in Bosnia and Herzegovina after June 1998; and (2) the European Security and Defense Identity is an ideal instrument for such a follow-on force.

(Sec. 1084) Expresses the sense of the Congress that the United States should: (1) retain sufficient strategic nuclear forces to deter any hostile foreign leadership with access to such weapons from attacking U.S. vital interests; (2) continue to maintain sufficient nuclear forces to hold at risk a broad range of assets valued by such political and military leaders; and (3) ensure that advice given to the President concerning nuclear weapon safety, security, and reliability should be scientifically based, without regard for politics, and of the highest quality and integrity. Allows specified officials involved in or familiar with U.S. nuclear weapon forces to submit to the President or the Congress disagreeing or additional opinions regarding such safety, security, and reliability. Prohibits a representative of the President from taking adverse actions against an official presenting such advice or opinion.

(Sec. 1085) Prohibits FY 1998 Cooperative Threat Reduction funding from being obligated or expended for chemical weapons destruction activities until the President submits to the Congress a written certification with respect to Russia's action in dismantling and destroying chemical weapons.

(Sec. 1086) Prohibits any U.S. officer or employee from conducting tests or experiments involving the use of any chemical or biological agents on a civilian population or individual human subjects. Specifies certain actions to which such prohibition shall not apply, including domestic riot control and imposition of capital punishment. Amends the National Defense Authorization Act for Fiscal Year 1994 to include in a required report information with respect to any such testing program carried out by DOD, along with a certification that informed consent was obtained from each human subject involved.

(Sec. 1087) Commends NATO for: (1) having committed to review at the next NATO summit the process for enlarging NATO; and (2) singling out the positive developments toward democracy and rule of law in Romania and Slovenia.

(Sec. 1088) Authorizes the Secretary of the Army to enter into an agreement with the local redevelopment authority for Red River Army Depot, Texas, under which the Secretary shall provide security, fire protection, or hazardous material response services on property under the jurisdiction of such authority as a result of realignment under the base closure laws.

(Sec. 1089) Authorizes the Secretary to provide to the Federal Republic of Germany any U.S. defense articles acquired under European air defense agreements.

(Sec. 1090) Directs the Secretary to prescribe regulations concerning the quantity of alcoholic beverages available outside the United States through DOD sources for members of the armed forces, DOD employees, and dependents of such individuals.

Title XI: Department of Defense Civilian Personnel - Directs the Secretaries of the military departments and the heads of the defense agencies to report semiannually to the defense committees on the management of the civilian workforce under their jurisdiction.

(Sec. 1102) Authorizes the employment of civilian faculty at a school of the Marine Corps University.

(Sec. 1103) Requires DOD to remit to the Office of Personnel Management 15 percent of the final basic pay of an individual who agrees to be separated from the armed forces under the DOD voluntary separation incentive program. Requires such remittance to be credited to the Civil Service Retirement and Disability Fund. Extends the incentive program through FY 2001.

(Sec. 1104) Repeals a provision requiring the Secretary to ensure the placement in the competitive service, within six months after separation from military service, of technicians who were involuntarily separated after at least 15 years of retirement-creditable service.

(Sec. 1105) Revises the pay rate for DOD overseas teachers upon their transfer to a General Schedule position with the Government.

(Sec. 1106) Amends the Intelligence Authorization Act, Fiscal Year 1990 to remove conditions for the naturalization of employees of the George C. Marshall European Center for Security Studies in Garmisch, Germany.

(Sec. 1108) Authorizes the Secretary of the Navy, during FY 1998 through 2002, to establish a pilot program to educate employees of the Naval Undersea Warfare Center and the Naval Sea Systems Command in the administration of Federal contracts and other business relationships with the private sector. Requires a report. Authorizes appropriations for the pilot program.

Title XII: Federal Charter for the Air Force Sergeants Association - Recognizes and grants a Federal charter to the Air Force Sergeants Association, a nonprofit organization formed to help maintain a highly dedicated and professional corps of enlisted personnel within the Air Force. Requires the organization to report annually to the Congress on its activities.

Division B: Military Construction Authorizations - Military Construction Authorization Act for Fiscal Year 1998 - Title XXI(sic): Army - Authorizes the Secretary of the Army to acquire real property and carry out military construction projects in specified amounts at specified installations and locations. Authorizes the Secretary to construct or acquire family housing units, to carry out architectural planning and design activities, and to improve existing military family housing in specified amounts. Authorizes appropriations to the Army for fiscal years after 1997 for military construction, land acquisition, and military family housing functions of the Army. Limits the total cost of construction projects authorized by this title.

(Sec. 2105) Authorizes the use of prior-year military construction funds to construct a heliport at Fort Irwin, California.

Title XXII: Navy - Provides, with respect to the Navy, authorizations for purposes paralleling those for which authorizations are provided for the Army under the previous title.

(Sec. 2205) Amends the Military Construction Authorization Act for Fiscal Year 1997 to: (1) authorize a military construction project at the Naval Station in Pascagoula, Mississippi, using funds authorized under such Act; and (2) increase the amount authorized for a project at Naval Station, Roosevelt Roads, Puerto Rico.

Title XXIII: Air Force - Provides, with respect to the Air Force, authorizations for purposes paralleling those for which authorizations are provided for the Army.

(Sec. 2305) Amends the Military Construction Authorization Act for Fiscal Year 1997 to authorize a military construction project at McConnell Air Force Base, Kansas, using funds authorized under such Act.

Title XXIV: Defense Agencies - Authorizes the Secretary to acquire real property and carry out military construction projects in specified amounts at specified installations and locations. Authorizes the Secretary to carry out architectural planning and design activities and to improve existing military family housing units, in specified amounts.

(Sec. 2404) Authorizes the Secretary to carry out certain energy conservation projects.

(Sec. 2405) Authorizes appropriations to DOD for fiscal years beginning after 1997 for military construction, land acquisition, and military family housing functions of DOD. Limits the total cost of construction projects authorized by this title.

(Sec. 2407) Authorizes the Secretary to carry out specified military construction projects, using amounts authorized under a prior military construction authorization Act for a project at McClellan Air Force Base, California.

(Sec. 2408) Increases the amounts authorized under a prior military construction authorization Act for projects at Pine Bluff Arsenal, Arkansas, and Umatilla Army Depot, Oregon.

(Sec. 2409) Extends the availability of funds under a prior defense appropriations Act for construction of an over-the-horizon radar at Naval Station Roosevelt Roads, Puerto Rico.

Title XXV: North Atlantic Treaty Organization Security Investment Program - Authorizes the Secretary to make contributions for the North Atlantic Treaty Organization (NATO) Security Investment Program and authorizes appropriations for fiscal years after 1997 for such contributions.

Title XXVI: Guard and Reserve Forces Facilities - Authorizes appropriations for fiscal years after 1997 for the Guard and Reserve forces for acquisition, architectural and engineering services, and construction of facilities.

(Sec. 2602) Increases the amount authorized under a prior military construction authorization Act for a project at the Aviation Support Facility in Hilo, Hawaii.

Title XXVII: Expiration and Extension of Authorizations - Terminates all authorizations contained in titles XXI through XXVI of this Act on October 1, 2000, or the date of enactment of an Act authorizing funds for military construction for FY 2001, whichever is later, with exceptions. Extends certain prior-year military construction projects.

Title XXVIII: General Provisions - Subtitle A: Military Construction Program and Military Family Housing Changes - Increases from $200,000 to $500,000 the threshold for minor land acquisition projects.

(Sec. 2802) Authorizes the Secretary concerned to transfer all or part of a utility system located on a military installation to a local utility or other appropriate entity for fair market value.

(Sec. 2803) Authorizes the Secretary concerned, when exchanging real property or granting an easement, lease, or license of real property, to collect from the receiver the administrative expenses incurred.

(Sec. 2804) Provides for the crediting of financial incentives received by DOD from gas, electric, and water utilities for energy and water cost savings.

(Sec. 2805) Prohibits the Secretary concerned from conveying any real property unless the Administrator of General Services (GSA Administrator) determines such property to be surplus property under the Federal Property and Administrative Services Act of 1949. Requires the GSA Administrator to screen such property in order to make such determination and to determine its fair market value. Requires congressional notification of such value. Sets forth exceptions.

Subtitle B: Land Conveyances - Amends the Military Construction Authorization Act for Fiscal Years 1990 and 1991 to repeal a provision authorizing the Secretary of the Army to transfer to Fairfax County, Virginia, the Engineer Proving Ground at Fort Belvoir, Virginia.

(Sec. 2813) Authorizes the Secretary of the Army to convey to Mineral County, Nevada, the Schweer Driving House Area within the Hawthorne Army Ammunition Depot.

(Sec. 2814) Authorizes the Secretary of the Navy to acquire by long-term lease facilities of a regional hospital complex in Naples, Italy, determined to be necessary for the Naples Improvement Initiative. Terminates the lease authority on September 30, 2002.

(Sec. 2815) Authorizes the Secretary of the: (1) Navy to convey to the Maine School Administrative District No. 75, Topsham, Maine, a parcel of the Topsham Annex, Naval Air Station in Brunswick, Maine; (2) Navy to convey to Nassau County, New York, the Naval Weapons Industrial Reserve Plant No. 464 in Oyster Bay, New York; (3) Air Force to convey to Bangor, Maine, the Charleston Family Housing Complex in Bangor; and (4) Air Force to convey to the Greater Box Elder Area Economic Development Corporation in Box Elder, South Dakota, specified real property located at Ellsworth Air Force Base, South Dakota.

(Sec. 2819) Amends the Rocky Mountain Arsenal National Wildlife Refuge Act of 1992 to direct the GSA Administrator to convey to Commerce City, Colorado, specified real property for commercial, highway, and other public purposes.

(Sec. 2820) Authorizes the Secretary of the: (1) Army to convey to Hale County, Alabama, specified real property at the Army Reserve Center, Greensboro, Alabama; (2) Air Force to convey to Onondaga County, New York, specified real property at Hancock Field, Syracuse; and (3) Air Force to convey to the Bear Paw Development Corporation, Havre, Montana, the Havre Air Force Station and the Havre Training Site.

(Sec. 2823) Directs the Secretary of the Army to convey to Harnett County, North Carolina, two parcels of land at Fort Bragg, North Carolina, to be used for educational and economic development.

Subtitle C: Other Matters - Provides for the disposition of proceeds from the sale of Air Force Plant No. 78 in Brigham City, Utah.

(Sec. 2832) Directs the Secretary to prepare and submit to the defense and appropriations committees a report on the costs and savings attributable to the base closure rounds before 1996 and on the need for additional base closure rounds. Requires the Congressional Budget Office and the CG to review such report. Prohibits the use of any funds by the Defense Base Closure and Realignment Commission until such report and reviews are completed. Expresses the sense of the Senate that the Secretary should develop a system for determining actual costs and savings associated with base closures and apply such system to the 1995 base closure round.

(Sec. 2833) Expresses the sense of the Senate that the savings derived from the base closure process should be utilized by DOD solely for the modernization of new weapon systems.

Division C: Department of Energy National Security Authorizations and Other Authorizations - Title XXXI(sic): Department of Energy National Security Programs - Subtitle A: National Security Programs Authorizations - Authorizes appropriations to the Department of Energy (DOE) for FY 1998 for operating expenses, capital equipment, and plant projects necessary in carrying out the following activities for national security programs: (1) weapons activities; (2) environmental restoration and waste management; (3) other defense activities; (4) defense environmental management privatization; and (5) defense nuclear waste disposal.

Subtitle B: Recurring General Provisions - Prohibits the use of funds appropriated pursuant to this title for: (1) the cost of a program exceeding 110 percent of the program authorization or $1 million more than the amount authorized; or (2) programs which have not been presented to, or requested of, the Congress until the Secretary of Energy (Secretary, for purposes of this Division) transmits to the defense and appropriations committees a full statement of the action proposed and 30 days have since expired.

(Sec. 3122) Places certain funding limits for general plant and construction projects of DOE. Requires congressional reports when amounts exceed such limits.

(Sec. 3124) Authorizes the Secretary to transfer DOE-authorized funds: (1) to other Federal agencies for the performance of work for which such funds were authorized; or (2) between authorizations within DOE, to be merged with and available for the same purposes. Requires notification to the defense committees of any such transfers.

(Sec. 3125) Directs the Secretary, before submitting a funding request for a construction project in support of a DOE national security program, to complete a conceptual design for such project. Requires a separate funding request for such designs for which the estimated cost exceeds $3 million. Authorizes the Secretary to carry out construction design services in connection with any proposed construction project if the total estimated cost for the design does not exceed $600,000. Requires specific authorization by law for designs exceeding such amount.

(Sec. 3126) Authorizes the use of DOE funds for planning, design, and construction activities for any DOE national security program that must proceed expeditiously in order to protect public health and safety, meet the needs of national defense, or protect property. Requires the Secretary to report to the defense and appropriations committees when funds are so used. Makes funds for management and support and for general plant projects under this Subtitle available for all DOE national security programs.

Subtitle C: Program Authorizations, Restrictions, and Limitations - Provides contract requirements for defense environmental privatization projects. Requires a report to the defense and appropriations committees followed by a 30-day waiting period before the Secretary may enter into such a contract. Limits cost variations on such contracts. Requires the Secretary to notify such committees of the intent to use project funds to terminate such a contract. Requires an annual report from the Secretary to such committees on activities conducted under such contracts and a single report on whether such contracts should be entered into in the absence of sufficient appropriations.

(Sec. 3132) Prohibits, with exceptions, FY 1998 DOE funds from being used for activities associated with international cooperative stockpile stewardship.

(Sec. 3133) Earmarks funds authorized in this Division for: (1) the DOE modernization of the enduring nuclear weapons complex; (2) activities related to tritium production to meet stockpile requirements; and (3) the processing, treatment, and disposition of spent nuclear fuel rods and other materials at the Savannah River Site.

Requires a report with respect to (1) and (2).

(Sec. 3135) Prohibits the use of DOE funds after FY 1997 for DOE laboratory-directed research and development (R&D) unless such activities support DOE's national security mission, environmental restoration or waste management mission, or materials stabilization mission. Limits FY 1998 funding for such R&D until receipt by the defense and appropriations committees of a related report required under a previous defense authorization Act. Requires in such report an assessment of necessary R&D funding.

(Sec. 3137) Amends the National Defense Authorization Act for Fiscal Year 1997 to make permanent (currently expires on September 30, 1997) the authority for the transfer between programs or projects of defense environmental management funds.

(Sec. 3138) Directs the Secretary to report to the Congress on remediation under the Formerly Utilized Sites Remedial Action Program.

(Sec. 3139) Amends the Atomic Energy Act of 1954 to authorize the Secretary to demonstrate the feasibility of and acquire facilities, or enter into an agreement, for the production of tritium for defense-related uses in a facility licensed under such Act.

(Sec. 3140) Authorizes the Secretary to dispose of certain nuclear assets and to retain asset proceeds for activities funded by the Defense Environmental Restoration and Waste Management account. Requires an annual report on such disposals and the amounts credited.

Subtitle D: Other Matters - Amends the Department of Energy Organization Act to repeal: (1) certain requirements concerning the promulgation and publication of DOE administrative rules, regulations, or orders; and (2) a provision which makes the Federal Energy Administration Act of 1974 applicable to advisory committees chartered by the Secretary.

(Sec. 3152) Amends the National Defense Authorization Act for Fiscal Year 1995 to: (1) repeal a requirement that the EPA Administrator conduct a study on the effect of appointment by the Secretary of certain scientific, engineering, and technical personnel on the conduct of remedial actions at sites listed on the National Priorities List; and (2) extend through FY 1999 the authority of the Secretary to make such appointments.

(Sec. 3153) Directs the Secretary to submit to the defense and appropriations committees a plan and program for the stewardship, management, and certification of warheads in the nuclear weapons stockpile.

(Sec. 3155) Repeals various obsolete reporting requirements under the Atomic Energy Act and prior defense authorization Acts.

(Sec. 3156) Establishes the Commission on Safeguards and Security at Department of Energy Facilities to conduct reviews, make determinations and evaluations, and report to the defense and appropriations committees with respect to DOE facility security. Terminates the Commission after submission of its report.

(Sec. 3157) Amends the National Defense Authorization Act for Fiscal Year 1997 to revise the authority of, and extend certain report deadlines for, the Commission on Maintaining United States Nuclear Weapons Expertise.

(Sec. 3158) Directs the Secretary to transfer to the Secretary of the Interior administrative jurisdiction over specified real property at the Bandalier National Monument, New Mexico.

(Sec. 3159) Directs the Secretary to ensure the participation of DOE national security activities in the Hispanic Outreach Initiative.

(Sec. 3160) Directs the Secretary to convey certain Federal land to Los Alamos County, New Mexico, and to the Secretary of the Interior in trust for the Pueblo of San Ildefonso for purposes of preservation, community self-sufficiency, or economic diversification. Requires a report to the appropriate congressional committees identifying the parcels to be conveyed and related information. Makes such conveyance a final settlement of DOE community assistance payments to such County under the Atomic Energy Community Act of 1955.

(Sec. 3161) Designates the Y-12 plant in Oak Ridge, Tennessee, as the National Prototype Center.

(Sec. 3162) Earmarks DOE funds for: (1) payment to a nonprofit educational foundation for educational enrichment activities in the area around the Los Alamos National Laboratory; and (2) improvements to Greenville Road in Livermore, California.

Title XXXII: Defense Nuclear Facilities Safety Board - Authorizes appropriations for FY 1998 for the Defense Nuclear Facilities Safety Board.

Title XXXIII: National Defense Stockpile - Authorizes the National Defense Stockpile (NDS) Manager, during FY 1998, to obligate up to $60 million of the funds in the National Defense Stockpile Transaction Fund (Fund) for authorized Fund uses. Authorizes the NDS Manager to obligate amounts in excess of such amount 45 days after notifying the Congress that extraordinary or emergency conditions necessitate the additional obligations.

(Sec. 3303) Directs the President to dispose of NDS materials. Specifies disposal limits.

(Sec. 3304) Directs the Secretary of the Treasury, upon request from the Secretary of Defense, to return to such Secretary for sale or other disposition NDS platinum previously loaned to the Treasury Department.

Title XXXIV: Naval Petroleum Reserves - Authorizes appropriations for FY 1998 for activities relating to the naval petroleum reserves.

(Sec. 3402) Authorizes the Secretary to lease U.S. interests in Oil Shale Reserves Number 1, 2, and 3 to one or more private entities for petroleum exploration, development, and production.

(Sec. 3403) Repeals a provision requiring the assignment of certain Navy officers to the Office of Naval Petroleum and Oil Shale Reserves.

Title XXXV: Panama Canal Commission - Subtitle A: Authorization of Expenditures from Revolving Fund - Panama Canal Commission Authorization Act for Fiscal Year 1998 - Authorizes the Panama Canal Commission to make such expenditures as necessary for the operation, maintenance, and improvement of the Panama Canal for FY 1998, with specified limitations. Requires such funds to be made available for the purchase and transportation to the Republic of Panama of passenger motor vehicles built in the United States. Requires expenditures authorized under this title to be in accordance with the Panama Canal Treaties of 1977 and any laws implementing those treaties.

Subtitle B: Facilitation of Panama Canal Transition - Panama Canal Transition Facilitation Act of 1997 - Part I: Transition Matters Relating to Commission Officers and Employees - Consents to the acceptance by the Administrator of the Commission of appointment by the Republic of Panama as Administrator of the Panama Canal Authority (such Authority to become the successor to the Commission on December 31, 1999, when Canal ownership is transferred from the United States to Panama). Waives certain: (1) conflict-of-interest provisions with respect to the Administrator; and (2) post-employment restrictions for current Commission personnel who become Authority employees after the Canal transfer date. Consents to Authority employment for retired military personnel, reserve personnel, and members of the Commissioned Reserve Corps of the Public Health Service.

Repeals current Commission limitations in establishing compensation levels for Commission officers and employees.

(Sec. 3524) States that Commission personnel travel, transportation, and subsistence expenses shall no longer be subject to Federal travel regulations.

(Sec. 3525) Authorizes the Commission to pay a recruitment bonus to a newly appointed individual, or a relocation bonus to a current Commission employee who must move, if: (1) the Commission determines that it would have difficulty in filling such a position absent such bonus; or (2) the employee has unusually high or unique qualifications.

(Sec. 3526) Authorizes transition separation incentive payments for Commission personnel.

(Sec. 3527) Provides for Commission personnel collective bargaining rights and required labor-management negotiations.

(Sec. 3528) Makes funds from the Panama Canal Revolving Fund available for severance pay for certain employees separated by the Authority after the Canal transfer date.

Part II: Transition Matters Relating to Operation and Administration of Canal - Amends the Panama Canal Act of 1979 to direct the Commission to establish by regulation a comprehensive procurement system to be known as the Panama Canal Acquisition Regulation.

Directs the Secretary of Defense to establish the Panama Canal Board of Contract Appeals with exclusive jurisdiction to decide an appeal from a decision of a contracting officer. Requires such Board to be functional no later than January 1, 1999.

(Sec. 3543) Reduces from two years to one year after the date of the alleged injury the time limit for the filing of claims with the Commission.

(Sec. 3544) Authorizes the Commission to: (1) set a separate toll rate for small vessels; (2) appoint U.S. citizens as notaries public; and (3) conduct and promote commercial activities related to Canal management, operation, or maintenance.

(Sec. 3548) Transfers from the President to the Commission certain regulatory functions relating to Commission employment classification appeals.

Title XXXVI: Miscellaneous Provisions - Commends the Mexican Government on the free and fair conduct of their elections and congratulates Mexico President Zedillo for his support and participation in such elections.

Calls for an end to violence in Cambodia, the restoration of democracy, the safety of U.S. citizens there, and a suspension of U.S. assistance until such violence ends.

Commends British Hong Kong Governor Chris Patten.