Report text available as:

  • TXT
  • PDF   (PDF provides a complete and accurate display of this text.) Tip ?


104th Congress           HOUSE OF REPRESENTATIVES                Report
2d Session                                                      104-450
_______________________________________________________________________


 
        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1996

                               ----------  

                           CONFERENCE REPORT

                              to accompany

                                S. 1124




                January 22, 1996.--Ordered to be printed
104th Congress 2d SessioHOUSE OF REPRESENTATIVES        Report
                                                       104-450
_______________________________________________________________________



                  NATIONAL DEFENSE AUTHORIZATION ACT

                         FOR FISCAL YEAR 1996

                               __________

                           CONFERENCE REPORT

                              to accompany

                                S. 1124




                January 22, 1996.--Ordered to be printed


         NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1996
104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-450
_______________________________________________________________________


        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1996

                                _______


                January 22, 1996.--Ordered to be printed

_______________________________________________________________________


 Mr. Spence, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                         [To accompany S. 1124]

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

SECTION 1. SHORT TITLE.

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

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

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

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Reserve components.
Sec. 106. Defense Inspector General.
Sec. 107. Chemical demilitarization program.
Sec. 108. Defense health programs.

                        Subtitle B--Army Programs

Sec. 111. Procurement of OH-58D Armed Kiowa Warrior helicopters.
Sec. 112. Repeal of requirements for armored vehicle upgrades.
Sec. 113. Multiyear procurement of helicopters.
Sec. 114. Report on AH-64D engine upgrades.
Sec. 115. Requirement for use of previously authorized multiyear 
          procurement authority for Army small arms procurement.

                        Subtitle C--Navy Programs

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

                     Subtitle D--Air Force Programs

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

              Subtitle E--Chemical Demilitarization Program

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

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

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

            Subtitle C--Ballistic Missile Defense Act of 1995

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

         Subtitle D--Other Ballistic Missile Defense Provisions

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

         Subtitle E--Miscellaneous Reviews, Studies, and Reports

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

                        Subtitle F--Other Matters

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

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

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

                   Subtitle B--Depot-Level Activities

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

                  Subtitle C--Environmental Provisions

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

   Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

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

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

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

         Subtitle F--Miscellaneous Reviews, Studies, and Reports

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

                        Subtitle G--Other Matters

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

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

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

                       Subtitle B--Reserve Forces

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

               Subtitle C--Military Training Student Loads

Sec. 421. Authorization of training student loads.

               Subtitle D--Authorization of Appropriations

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

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

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

           Subtitle B--Matters Relating to Reserve Components

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

                   Subtitle C--Decorations and Awards

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

                 Subtitle D--Officer Education Programs

                        Part I--Service Academies

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

                 Part II--Reserve Officer Training Corps

Sec. 541. ROTC access to campuses.
Sec. 542. ROTC scholarships for the National Guard.
Sec. 543. Delay in reorganization of Army ROTC regional headquarters 
          structure.
Sec. 544. Duration of field training or practice cruise required under 
          the Senior ROTC program.
Sec. 545. Active duty officers detailed to ROTC duty at senior military 
          colleges to serve as Commandant and Assistant Commandant of 
          Cadets and as tactical officers.

         Subtitle E--Miscellaneous Reviews, Studies, and Reports

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

                        Subtitle F--Other Matters

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

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

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

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

            Subtitle C--Travel and Transportation Allowances

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

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

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

                        Subtitle E--Other Matters

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

                    TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

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

                       Subtitle B--TRICARE Program

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

           Subtitle C--Uniformed Services Treatment Facilities

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

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

Sec. 731. Maximum allowable payments to individual health-care providers 
          under CHAMPUS.
Sec. 732. Notification of certain CHAMPUS covered beneficiaries of loss 
          of CHAMPUS eligibility.
Sec. 733. Personal services contracts for medical treatment facilities 
          of the Coast Guard.
Sec. 734. Identification of third-party payer situations.
Sec. 735. Redesignation of Military Health Care Account as Defense 
          Health Program Account and two-year availability of certain 
          account funds.
Sec. 736. Expansion of financial assistance program for health-care 
          professionals in reserve components to include dental 
          specialties.
Sec. 737. Applicability of limitation on prices of pharmaceuticals 
          procured for the Coast Guard.
Sec. 738. Restriction on use of Department of Defense facilities for 
          abortions.

                        Subtitle E--Other Matters

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

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

                     Subtitle A--Acquisition Reform

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

                        Subtitle B--Other Matters

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

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                       Subtitle A--General Matters

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

                    Subtitle B--Financial Management

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

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

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

                 Subtitle B--Naval Vessels and Shipyards

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

                   Subtitle C--Counter-Drug Activities

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

                     Subtitle D--Civilian Personnel

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

            Subtitle E--Miscellaneous Reporting Requirements

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

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

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

          Subtitle G--Department of Defense Education Programs

Sec. 1071. Continuation of Uniformed Services University of the Health 
          Sciences.
Sec. 1072. Additional graduate schools and programs at Uniformed 
          Services University of the Health Sciences.
Sec. 1073. Funding for adult education programs for military personnel 
          and dependents outside the United States.
Sec. 1074. Assistance to local educational agencies that benefit 
          dependents of members of the Armed Forces and Department of 
          Defense civilian employees.
Sec. 1075. Sharing of personnel of Department of Defense domestic 
          dependent schools and defense dependents' education system.
Sec. 1076. Increase in reserve component Montgomery GI Bill educational 
          assistance allowance with respect to skills or specialties for 
          which there is a critical shortage of personnel.
Sec. 1077. Date for annual report on reserve component Montgomery GI 
          Bill educational assistance program.
Sec. 1078. Scope of education programs of Community College of the Air 
          Force.
Sec. 1079. Amendments to education loan repayment programs.

                        Subtitle H--Other Matters

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

               TITLE XI--UNIFORM CODE OF MILITARY JUSTICE

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

                          Subtitle A--Offenses

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

                          Subtitle B--Sentences

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

               Subtitle C--Pretrial and Post-Trial Actions

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

                      Subtitle D--Appellate Matters

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

                        Subtitle E--Other Matters

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

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

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

              TITLE XIII--MATTERS RELATING TO OTHER NATIONS

                   Subtitle A--Peacekeeping Provisions

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

              Subtitle B--Humanitarian Assistance Programs

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

            Subtitle C--Arms Exports and Military Assistance

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

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

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

                        Subtitle E--Other Matters

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

                     TITLE XIV--ARMS CONTROL MATTERS

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

               TITLE XV--TECHNICAL AND CLERICAL AMENDMENTS

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

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

Sec. 1601. Short title.

         Subtitle A--Establishment and Operation of Corporation

Sec. 1611. Establishment of the Corporation.
Sec. 1612. Conduct of Civilian Marksmanship Program.
Sec. 1613. Eligibility for participation in Civilian Marksmanship 
          Program.
Sec. 1614. Issuance, loan, and sale of firearms and ammunition by the 
          Corporation.
Sec. 1615. Transfer of firearms and ammunition from the Army to the 
          Corporation.
Sec. 1616. Reservation by the Army of firearms and ammunition for the 
          Corporation.
Sec. 1617. Army logistical support for the program.
Sec. 1618. General authorities of the Corporation.
Sec. 1619. Distribution of Corporate assets in event of dissolution.

                   Subtitle B--Transitional Provisions

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

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                             TITLE XXI--ARMY

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

                            TITLE XXII--NAVY

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

                         TITLE XXIII--AIR FORCE

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

                      TITLE XXIV--DEFENSE AGENCIES

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

      TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION INFRASTRUCTURE

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

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

         TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

                    TITLE XXVIII--GENERAL PROVISIONS

          Subtitle A--Military Housing Privatization Initiative

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

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

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

            Subtitle C--Defense Base Closure and Realignment

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

                 Subtitle D--Land Conveyances Generally

                        Part I--Army Conveyances

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

                        Part II--Navy Conveyances

Sec. 2865. Transfer of jurisdiction, Naval Weapons Industrial Reserve 
          Plant, Calverton, New York.
Sec. 2866. Modification of land conveyance, Naval Weapons Industrial 
          Reserve Plant, Calverton, New York.
Sec. 2867. Land conveyance alternative to existing lease authority, 
          Naval Supply Center, Oakland, California.
Sec. 2868. Land conveyance, Naval Weapons Industrial Reserve Plant, 
          McGregor, Texas.
Sec. 2869. Land conveyance, Naval Surface Warfare Center, Memphis, 
          Tennessee.
Sec. 2870. Land conveyance, Navy property, Fort Sheridan, Illinois.
Sec. 2871. Land conveyance, Naval Communications Station, Stockton, 
          California.
Sec. 2872. Lease of property, Naval Air Station and Marine Corps Air 
          Station, Miramar, California.

                     Part III--Air Force Conveyances

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

            Subtitle E--Land Conveyances Involving Utilities

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

                        Subtitle F--Other Matters

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

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

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

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

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

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

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

                  Subtitle C--Miscellaneous Provisions

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

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

Sec. 3101. Weapons activities.
Sec. 3102. Environmental restoration and waste management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.

                Subtitle B--Recurring General Provisions

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

    Subtitle C--Program Authorizations, Restrictions, and Limitations

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

                        Subtitle D--Other Matters

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

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

         Subtitle A--Authorization of Disposals and Use of Funds

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

                     Subtitle B--Programmatic Change

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

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

         Subtitle A--Administration of Naval Petroleum Reserves

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

               Subtitle B--Sale of Naval Petroleum Reserve

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

                   TITLE XXXV--PANAMA CANAL COMMISSION

               Subtitle A--Authorization of Appropriations

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

   Subtitle B--Reconstitution of Commission as Government Corporation

Sec. 3521. Short title.
Sec. 3522. Reconstitution of Commission as Government corporation.
Sec. 3523. Supervisory Board.
Sec. 3524. General and specific powers of Commission.
Sec. 3525. Congressional review of budget.
Sec. 3526. Audits.
Sec. 3527. Prescription of measurement rules and rates of tolls.
Sec. 3528. Procedures for changes in rules of measurement and rates of 
          tolls.
Sec. 3529. Miscellaneous technical amendments.
Sec. 3530. Conforming amendment to title 31, United States Code.

                 DIVISION D--FEDERAL ACQUISITION REFORM

Sec. 4001. Short title.

                         TITLE XLI--COMPETITION

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

                      TITLE XLII--COMMERCIAL ITEMS

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

                TITLE XLIII--ADDITIONAL REFORM PROVISIONS

          Subtitle A--Additional Acquisition Reform Provisions

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

                    Subtitle B--Technical Amendments

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

             TITLE XLIV--EFFECTIVE DATES AND IMPLEMENTATION

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

          DIVISION E--INFORMATION TECHNOLOGY MANAGEMENT REFORM

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

   TITLE LI--RESPONSIBILITY FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

                      Subtitle A--General Authority

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

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

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

                     Subtitle C--Executive Agencies

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

                   Subtitle D--Other Responsibilities

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

                  Subtitle E--National Security Systems

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

      TITLE LII--PROCESS FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

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

      TITLE LIII--INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAMS

                  Subtitle A--Conduct of Pilot Programs

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

                   Subtitle B--Specific Pilot Programs

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

     TITLE LIV--ADDITIONAL INFORMATION RESOURCES MANAGEMENT MATTERS

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

   TITLE LV--PROCUREMENT PROTEST AUTHORITY OF THE COMPTROLLER GENERAL

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

              TITLE LVI--CONFORMING AND CLERICAL AMENDMENTS

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

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

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

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

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

    In the case of any provision of this Act, or any amendment 
made by a provision of this Act, requiring the submission of a 
report to Congress (or any committee of Congress), that report 
shall be submitted not later than the later of--
            (1) the date established for submittal of the 
        report in such provision or amendment; or
            (2) the date that is 45 days after the date of the 
        enactment of this Act.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

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

SEC. 102. NAVY AND MARINE CORPS.

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

SEC. 103. AIR FORCE.

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

SEC. 104. DEFENSE-WIDE ACTIVITIES.

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

SEC. 105. RESERVE COMPONENTS.

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

SEC. 106. DEFENSE INSPECTOR GENERAL.

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

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

    There is hereby authorized to be appropriated for fiscal 
year 1996 the amount of $672,250,000 for--
            (1) the destruction of lethal chemical agents and 
        munitions in accordance with section 1412 of the 
        Department of Defense Authorization Act, 1986 (50 
        U.S.C. 1521); and
            (2) the destruction of chemical warfare materiel of 
        the United States that is not covered by section 1412 
        of such Act.

SEC. 108. DEFENSE HEALTH PROGRAMS.

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

                       Subtitle B--Army Programs

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

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

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

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

SEC. 113. MULTIYEAR PROCUREMENT OF HELICOPTERS.

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

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

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

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

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

                       Subtitle C--Navy Programs

SEC. 131. NUCLEAR ATTACK SUBMARINES.

    (a) Amounts Authorized.--(1) Of the amount authorized by 
section 102 to be appropriated for Shipbuilding and Conversion, 
Navy, for fiscal year 1996--
            (A) $700,000,000 is available for construction of 
        the third vessel (designated SSN-23) in the Seawolf 
        attack submarine class, which shall be the final vessel 
        in that class; and
            (B) $804,498,000 is available for long-lead and 
        advance construction and procurement of components for 
        construction of the fiscal year 1998 and fiscal year 
        1999 submarines (previously designated by the Navy as 
        the New Attack Submarine), of which--
                    (i) $704,498,000 shall be available for 
                long-lead and advance construction and 
                procurement for the fiscal year 1998 submarine, 
                which shall be built by Electric Boat Division; 
                and
                    (ii) $100,000,000 shall be available for 
                long-lead and advance construction and 
                procurement for the fiscal year 1999 submarine, 
                which shall be built by Newport News 
                Shipbuilding.
    (2) Of the amount authorized by section 201(2), $10,000,000 
shall be available only for participation of Newport News 
Shipbuilding in the design of the submarine previously 
designated by the Navy as the New Attack Submarine.
    (b) Competition, Report, and Budget Revision Limitations.--
(1) Of the amounts specified in subsection (a)(1), not more 
than $200,000,000 may be obligated or expended until the 
Secretary of the Navy certifies in writing to the Committee on 
Armed Services of the Senate and the Committee on National 
Security of the House of Representatives that procurement of 
nuclear attack submarines to be constructed beginning--
            (A) after fiscal year 1999, or
            (B) if four submarines are procured as provided for 
        in the plan described in subsection (c), after fiscal 
        year 2001,
will be under one or more contracts that are entered into after 
competition between potential competitors (as defined in 
subsection (k)) in which the Secretary solicits competitive 
proposals and awards the contract or contracts on the basis of 
price.
    (2) Of the amounts specified in subsection (a)(1), not more 
than $1,000,000,000 may be obligated or expended until the 
Secretary of Defense, not later than March 15, 1996, 
accomplishes each of the following:
            (A) Submits to the Committee on Armed Services of 
        the Senate and the Committee on National Security of 
        the House of Representatives in accordance with 
        subsection (c) the plan required by that subsection for 
        a program to produce a more capable, less expensive 
        nuclear attack submarine than the submarine design 
        previously designated by the Navy as the New Attack 
        Submarine.
            (B) Notwithstanding any other provision of law, or 
        the funding level in the President's budget for each 
        year after fiscal year 1996, the Under Secretary of 
        Defense (Comptroller) shall incorporate the costs of 
        the plan required by subsection (c) in the Future Years 
        Defense Program (FYDP) even if the total cost of that 
        Program exceeds the President's budget.
            (C) Directs that the Under Secretary of Defense for 
        Acquisition and Technology conduct oversight over the 
        development and improvement of the nuclear attack 
        submarine program of the Navy. Officials of the 
        Department of the Navy exercising management oversight 
        of the program shall report to the Under Secretary of 
        Defense for Acquisition and Technology with respect to 
        that program.
    (c) Plan for Fiscal Year 1998, 1999, 2000, and 2001 
Submarines.--(1) The Secretary of Defense shall, not later than 
March 15, 1996, develop (and submit to the committees specified 
in subsection (b)(2)(A)) a detailed plan for development of a 
program that will lead to production of a more capable, less 
expensive submarine than the submarine previously designated as 
the New Attack Submarine.
    (2) As part of such plan, the Secretary shall provide for a 
program for the design, development, and procurement of four 
nuclear attack submarines to be procured during fiscal years 
1998 through 2001, the purpose of which shall be to develop and 
demonstrate new technologies that will result in each 
successive submarine of those four being a more capable and 
more affordable submarine than the submarine that preceded it. 
The program shall be structured so that--
            (A) one of the four submarines is to be constructed 
        with funds appropriated for each fiscal year from 
        fiscal year 1998 through fiscal year 2001;
            (B) in order to ensure flexibility for innovation, 
        the fiscal year 1998 and the fiscal year 2000 
        submarines are to be constructed by the Electric Boat 
        Division and the fiscal year 1999 and the fiscal year 
        2001 submarines are to be constructed by Newport News 
        Shipbuilding;
            (C) the design designated by the Navy for the 
        submarine previously designated as the New Attack 
        Submarine will be used as the base design by both 
        contractors;
            (D) each contractor shall be called upon to propose 
        improvements, including design improvements, for each 
        successive submarine as new and better technology is 
        demonstrated and matures so that--
                    (i) each successive submarine is more 
                capable and more affordable; and
                    (ii) the design for a future class of 
                nuclear attack submarines will incorporate the 
                latest, best, and most affordable technology; 
                and
            (E) the fifth and subsequent nuclear attack 
        submarines to be built after the SSN-23 submarine shall 
        be procured as required by subsection (b)(1).
    (3) The plan under paragraph (1) shall--
            (A) set forth a program to accomplish the design, 
        development, and construction of the four submarines 
        taking maximum advantage of a streamlined acquisition 
        process, as provided under subsection (d);
            (B) culminate in selection of a design for a next 
        submarine for serial production not earlier than fiscal 
        year 2003, with such submarine to be procured as 
        required by subsection (b)(1);
            (C) identify advanced technologies that are in 
        various phases of research and development, as well as 
        those that are commercially available off-the-shelf, 
        that are candidates to be incorporated into the plan to 
        design, develop, and procure the submarines;
            (D) designate the fifth submarine to be procured as 
        the lead ship in the next generation submarine class, 
        unless the Secretary of the Navy, in consultation with 
        the special submarine review panel described in 
        subsection (f), determines that more submarines should 
        be built before the design of the new class of 
        submarines is fixed, in which case each such additional 
        submarine shall be procured in the same manner as is 
        required by subsection (b)(1); and
            (E) identify the impact of the submarine program 
        described in paragraph (1) on the remainder of the 
        appropriation account known as ``Shipbuilding and 
        Conversion, Navy'', as such impact relates to--
                    (i) force structure levels required by the 
                October 1993 Department of Defense report 
                entitled ``Report on the Bottom-Up Review'';
                    (ii) force structure levels required by the 
                1995 report on the Surface Ship Combatant Study 
                that was carried out for the Department of 
                Defense; and
                    (iii) the funding requirements for 
                submarine construction, as a percentage of the 
                total ship construction account, for each 
                fiscal year throughout the FYDP.
    (4) As part of such plan, the Secretary shall provide--
                    (A) cost estimates and schedules for 
                developing new technologies that may be used to 
                make submarines more capable and more 
                affordable; and
                    (B) an analysis of significant risks 
                associated with fielding the new technologies 
                on the schedule proposed by the Secretary and 
                significant increased risks that are likely to 
                be incurred by accelerating that schedule.
    (d) Streamlined Acquisition Process.--The Secretary of 
Defense shall prescribe and use streamlined acquisition 
policies and procedures to reduce the cost and increase the 
efficiency of the submarine program under this section.
    (e) Annual Revisions to Plan.--The Secretary shall submit 
to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives 
an annual update to the plan required to be submitted under 
subsection (b). Each such update shall be submitted concurrent 
with the President's budget submission to Congress for each of 
fiscal years 1998 through 2002.
    (f) Special Submarine Review Panel.--(1) The plan under 
subsection (c) and each annual update under subsection (e) 
shall be reviewed by a special bipartisan congressional panel 
working with the Navy. The panel shall consist of three members 
of the Committee on Armed Services of the Senate, who shall be 
designated by the chairman of that committee, and three members 
of the Committee on National Security of the House of 
Representatives, who shall be designated by the chairman of 
that committee. The members of the panel shall be briefed by 
the Secretary of the Navy on the status of the submarine 
modernization program and the status of submarine-related 
research and development under this section.
    (2) Not later than May 1 of each year, the panel shall 
report to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives 
on the panel's findings and recommendations regarding the 
progress of the Secretary in procuring a more capable, less 
expensive submarine. The panel may recommend any funding 
adjustments it believes appropriate to achieve this objective.
    (g) Linkage of Fiscal Year 1998 and 1999 Submarines.--Funds 
referred to in subsection (a)(1)(B) that are available for the 
fiscal year 1998 and fiscal year 1999 submarines under this 
section may not be expended during fiscal year 1996 for the 
fiscal year 1998 submarine (other than for design) unless funds 
are obligated or expended during such fiscal year for a 
contract in support of procurement of the fiscal year 1999 
submarine.
    (h) Contracts Authorized.--The Secretary of the Navy is 
authorized, using funds available pursuant to paragraph (1)(B) 
of subsection (a), to enter into contracts with Electric Boat 
Division and Newport News Shipbuilding, and suppliers of 
components, during fiscal year 1996 for--
            (1) the procurement of long-lead components for the 
        fiscal year 1998 submarine and the fiscal year 1999 
        submarine under this section; and
            (2) advance construction of such components and 
        other components for such submarines.
    (i) Advanced Research Projects Agency Development of 
Advanced Technologies.--(1) Of the amount provided in section 
201(4) for the Advanced Research Projects Agency, $100,000,000 
is available only for development and demonstration of advanced 
technologies for incorporation into the submarines constructed 
as part of the plan developed under subsection (c). Such 
advanced technologies shall include the following:
            (A) Electric drive.
            (B) Hydrodynamic quieting.
            (C) Ship control automation.
            (D) Solid-state power electronics.
            (E) Wake reduction technologies.
            (F) Superconductor technologies.
            (G) Torpedo defense technologies.
            (H) Advanced control concept.
            (I) Fuel cell technologies.
            (J) Propulsors.
    (2) The Director of the Advanced Research Projects Agency 
shall implement a rapid prototype acquisition strategy for both 
land-based and at-sea subsystem and system demonstrations of 
advanced technologies under paragraph (1). Such acquisition 
strategy shall be developed and implemented in concert with 
Electric Boat Division and Newport News Shipbuilding and the 
Navy.
    (j) References to Contractors.--For purposes of this 
section--
            (1) the contractor referred to as ``Electric Boat 
        Division'' is the Electric Boat Division of the General 
        Dynamics Corporation; and
            (2) the contractor referred to as ``Newport News 
        Shipbuilding'' is the Newport News Shipbuilding and 
        Drydock Company.
    (k) Potential Competitor Defined.--For purposes of this 
section, the term ``potential competitor'' means any source to 
which the Secretary of the Navy has awarded, within 10 years 
before the date of the enactment of this Act, a contract or 
contracts to construct one or more nuclear attack submarines.

SEC. 132. RESEARCH FOR ADVANCED SUBMARINE TECHNOLOGY.

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

SEC. 133. COST LIMITATION FOR SEAWOLF SUBMARINE PROGRAM.

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

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

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

SEC. 135. ARLEIGH BURKE CLASS DESTROYER PROGRAM.

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

SEC. 136. ACQUISITION PROGRAM FOR CRASH ATTENUATING SEATS.

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

SEC. 137. T-39N TRAINER AIRCRAFT.

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

SEC. 138. PIONEER UNMANNED AERIAL VEHICLE PROGRAM.

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

                     Subtitle D--Air Force Programs

SEC. 141. B-2 AIRCRAFT PROGRAM.

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

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

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

SEC. 142. PROCUREMENT OF B-2 BOMBERS.

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

SEC. 143. MC-130H AIRCRAFT PROGRAM.

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

             Subtitle E--Chemical Demilitarization Program

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

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

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

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

SEC. 153. ADMINISTRATION OF CHEMICAL DEMILITARIZATION PROGRAM.

    (a) Travel Funding for Members of Chemical Demilitarization 
Citizens' Advisory Commissions.--Section 172(g) of Public Law 
102-484 (50 U.S.C. 1521 note) is amended to read as follows:
    ``(g) Pay and Expenses.--Members of each commission shall 
receive no pay for their involvement in the activities of their 
commissions. Funds appropriated for the Chemical Stockpile 
Demilitarization Program may be used for travel and associated 
travel costs for Citizens' Advisory Commissioners, when such 
travel is conducted at the invitation of the Assistant 
Secretary of the Army (Research, Development, and 
Acquisition).''.
    (b) Quarterly Report Concerning Travel Funding for 
Citizens' Advisory Commissioners.--Section 1412(g) of the 
Department of Defense Authorization Act, 1986 (50 U.S.C. 
1521(g)), is amended--
            (1) by striking out ``(g) Annual Report.--'' and 
        inserting in lieu thereof ``(g) Periodic Reports.--'';
            (2) in paragraph (2)--
                    (A) by striking out ``Each such report 
                shall con- tain--'' and inserting in lieu 
                thereof ``Each annual report shall contain--''
                    (B) in subparagraph (B)--
                            (i) by striking out ``and'' at the 
                        end of clause (iv);
                            (ii) by striking out the period at 
                        the end of clause (v) and inserting in 
                        lieu thereof ``; and''; and
                            (iii) by adding at the end the 
                        following:
                    ``(vi) travel and associated travel costs 
                for Citizens' Advisory Commissioners under 
                section 172(g) of Public Law 102-484 (50 U.S.C. 
                1521 note).'';
            (3) by redesignating paragraph (3) as paragraph 
        (4);
            (4) by inserting after paragraph (2) the following 
        new paragraph (3):
    ``(3) The Secretary shall transmit to the Committee on 
Armed Services and the Committee on Appropriations of the 
Senate and the Committee on National Security and the Committee 
on Appropriations of the House of Representatives a quarterly 
report containing an accounting of all funds expended (during 
the quarter covered by the report) for travel and associated 
travel costs for Citizens' Advisory Commissioners under section 
172(g) of Public Law 102-484 (50 U.S.C. 1521 note). The 
quarterly report for the final quarter of the period covered by 
a report under paragraph (1) may be included in that report.''; 
and
            (5) in paragraph (4), as redesignated by paragraph 
        (3)--
                    (A) by striking out ``this subsection'' and 
                inserting in lieu thereof ``paragraph (1)''; 
                and
                    (B) by adding at the end the following: 
                ``No quarterly report is required under 
                paragraph (3) after the transmittal of the 
                final report under paragraph (1).''.
    (c) Director of Program.--Section 1412(e)(3) of the 
Department of Defense Authorization Act, 1986 (50 U.S.C. 
1521(e)(3)), is amended by inserting ``or civilian equivalent'' 
after ``general officer''.

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

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

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

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

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

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

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

SEC. 204. DEFENSE DUAL USE TECHNOLOGY INITIATIVE.

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

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. SPACE LAUNCH MODERNIZATION.

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

SEC. 212. TACTICAL MANNED RECONNAISSANCE.

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

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

    (a) Allocation of Funds.--Of the amounts authorized to be 
appropriated pursuant to the authorizations in section 201, 
$200,156,000 shall be available for the Joint Advanced Strike 
Technology (JAST) program. Of that amount--
            (1) $83,795,000 shall be available for program 
        element 63800N in the budget of the Department of 
        Defense for fiscal year 1996;
            (2) $85,686,000 shall be available for program 
        element 63800F in such budget; and
            (3) $30,675,000 shall be available for program 
        element 63800E in such budget.
    (b) Additional Allocation.--Of the amounts made available 
under paragraphs (1), (2), and (3) of subsection (a)--
            (1) $25,000,000 shall be available from the amount 
        authorized to be appropriated pursuant to the 
        authorization in section 201(2) for the conduct, during 
        fiscal year 1996, of a 6-month program definition phase 
        for the A/F117X, an F-117 fighter aircraft modified for 
        use by the Navy as a long-range, medium attack 
        aircraft; and
            (2) $7,000,000 shall be available to provide for 
        competitive engine concepts.
    (c) Limitation.--Not more than 75 percent of the amount 
appropriated for the Joint Advanced Strike Technology program 
pursuant to the authorizations in section 201 may be obligated 
until a period of 30 days has expired after the report required 
by subsection (d) is submitted to the congressional defense 
committees.
    (d) Report.--The Secretary of Defense shall submit to the 
congressional defense committees a report, in unclassified and 
classified forms, not later than March 1, 1996, that sets forth 
in detail the following information for the period 1997 through 
2005:
            (1) The total joint requirement, assuming the 
        capability to successfully conduct two nearly 
        simultaneous major regional contingencies, for the 
        following:
                    (A) Numbers of bombers, tactical combat 
                aircraft, and attack helicopters and the 
                characteristics required of those aircraft in 
                terms of capabilities, range, and low-
                observability.
                    (B) Surface- and air-launched standoff 
                precision guided munitions.
                    (C) Cruise missiles.
                    (D) Ground-based systems, such as the 
                Extended Range-Multiple Launch Rocket System 
                and the Army Tactical Missile System (ATACMS), 
                for joint warfighting capability.
            (2) The warning time assumptions for two nearly 
        simultaneous major regional contingencies, and the 
        effects on future tactical attack/fighter aircraft 
        requirements using other warning time assumptions.
            (3) The requirements that exist for the Joint 
        Advanced Strike Technology program that cannot be met 
        by existing aircraft or by those in development.

SEC. 214. DEVELOPMENT OF LASER PROGRAM.

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

SEC. 215. NAVY MINE COUNTERMEASURES PROGRAM.

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

SEC. 216. SPACE-BASED INFRARED SYSTEM.

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

SEC. 217. DEFENSE NUCLEAR AGENCY PROGRAMS.

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

SEC. 218. COUNTERPROLIFERATION SUPPORT PROGRAM.

    (a) Funding.--Of the funds authorized to be appropriated to 
the Department of Defense under section 201(4), $138,237,000 
shall be available for the Counterproliferation Support 
Program, of which $30,000,000 shall be available for a tactical 
antisatellite technologies program.
    (b) Additional Authority To Transfer Authorizations.--(1) 
In addition to the transfer authority provided in section 1001, 
upon determination by the Secretary of Defense that such action 
is necessary in the national interest, the Secretary may 
transfer amounts of authorizations made available to the 
Department of Defense in this division for fiscal year 1996 to 
counterproliferation programs, projects, and activities 
identified as areas for progress by the Counterproliferation 
Program Review Committee established by section 1605 of the 
National Defense Authorization Act for Fiscal Year 1994 (Public 
Law 103-160; 107 Stat. 1845). Amounts of authorizations so 
transferred shall be merged with and be available for the same 
purposes as the authorization to which transferred.
    (2) The total amount of authorizations transferred under 
the authority of this subsection may not exceed $50,000,000.
    (3) The authority provided by this subsection to transfer 
authorizations--
            (A) may only be used to provide authority for items 
        that have a higher priority than the items from which 
        authority is transferred; and
            (B) may not be used to provide authority for an 
        item that has been denied authorization by Congress.
    (4) A transfer made from one account to another under the 
authority of this subsection shall be deemed to increase the 
amount authorized for the account to which the amount is 
transferred by an amount equal to the amount transferred.
    (5) The Secretary of Defense shall promptly notify Congress 
of transfers made under the authority of this subsection.

SEC. 219. NONLETHAL WEAPONS STUDY.

    (a) Findings.--Congress finds the following:
            (1) The role of the United States military in 
        operations other than war has increased.
            (2) Weapons and instruments that are nonlethal in 
        application yet immobilizing could have widespread 
        operational utility and application.
            (3) The use of nonlethal weapons in operations 
        other than war poses a number of important doctrine, 
        legal, policy, and operations questions which should be 
        addressed in a comprehensive and coordinated manner.
            (4) The development of nonlethal technologies 
        continues to spread across military and agency budgets.
            (5) The Department of Defense should provide 
        improved budgetary focus and management direction to 
        the nonlethal weapons program.
    (b) Responsibility for Development of Nonlethal Weapons 
Technology.--Not later than February 15, 1996, the Secretary of 
Defense shall assign centralized responsibility for development 
(and any other functional responsibility the Secretary 
considers appropriate) of nonlethal weapons technology to an 
existing office within the Office of the Secretary of Defense 
or to a military service as the executive agent.
    (c) Report.--Not later than February 15, 1996, the 
Secretary of Defense shall submit to Congress a report setting 
forth the following:
            (1) The name of the office or military service 
        assigned responsibility for the nonlethal weapons 
        program by the Secretary of Defense pursuant to 
        subsection (b) and a discussion of the rationale for 
        such assignment.
            (2) The degree to which nonlethal weapons are 
        required by more than one of the armed forces.
            (3) The time frame for the development and 
        deployment of such weapons.
            (4) The appropriate role of the military 
        departments and defense agencies in the development of 
        such weapons.
            (5) The military doctrine, legal, policy, and 
        operational issues that must be addressed by the 
        Department of Defense before such weapons achieve 
        operational capability.
    (d) Authorization.--Of the amount authorized to be 
appropriated under section 201(4), $37,200,000 shall be 
available for nonlethal weapons programs and nonlethal 
technologies programs.
    (e) Definition.--For purposes of this section, the term 
``nonlethal weapon'' means a weapon or instrument the effect of 
which on human targets is less than fatal.

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

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

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

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

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

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

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

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

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

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

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

    (a) Authority To Use Funds for Alternative Propellant 
Technologies.--During fiscal year 1996, the Secretary of the 
Army may use funds appropriated for the liquid propellant 
portion of the Advanced Field Artillery System (Crusader) 
program for fiscal year 1996 for alternative propellant 
technologies and integration of those technologies into the 
design of the Crusader if--
            (1) the Secretary determines that the technical 
        risk associated with liquid propellant will increase 
        costs and delay the initial operational capability of 
        the Crusader; and
            (2) the Secretary notifies the congressional 
        defense committees of the proposed use of the funds and 
        the reasons for the proposed use of the funds.
    (b) Limitation.--The Secretary of the Army may not spend 
funds for the liquid propellant portion of the Crusader program 
after August 15, 1996, unless--
            (1) the report required by subsection (c) has been 
        submitted by that date; and
            (2) such report includes documentation of 
        significant progress, as determined by the Secretary, 
        toward meeting the objectives for the liquid propellant 
        portion of the program, as set forth in the baseline 
        description for the Crusader program and approved by 
        the Office of the Secretary of Defense on January 4, 
        1995.
    (c) Report Required.--Not later than August 1, 1996, the 
Secretary of the Army shall submit to the congressional defense 
committees a report containing documentation of the progress 
being made in meeting the objectives set forth in the baseline 
description for the Crusader program and approved by the Office 
of the Secretary of Defense on January 4, 1995. The report 
shall specifically address the progress being made toward 
meeting the following objectives:
            (1) Establishment of breech and ignition design 
        criteria for rate of fire for the cannon of the 
        Crusader.
            (2) Selection of a satisfactory ignition concept 
        for the next prototype of the cannon.
            (3) Selection, on the basis of modeling and 
        simulation, of design concepts to prevent chamber 
        piston reversals, and validation of the selected 
        concepts by gun and mock chamber firings.
            (4) Achievement of an understanding of the 
        chemistry and physics of propellant burn resulting from 
        the firing of liquid propellant into any target zone, 
        and achievement, on the basis of modeling and 
        simulation, of an ignition process that is predictable.
            (5) Completion of an analysis of the management of 
        heat dissipation for the full range of performance 
        requirements for the cannon, completion of concept 
        designs supported by that analysis, and proposal of 
        such concept designs for engineering.
            (6) Development, for integration into the next 
        prototype of the cannon, of engineering designs to 
        control pressure oscillations in the chamber of the 
        cannon during firing.
            (7) Completion of an assessment of the sensitivity 
        of liquid propellant to contamination by various 
        materials to which it may be exposed throughout the 
        handling and operation of the cannon, and documentation 
        of predictable reactions of contaminated or sensitized 
        liquid propellant.
    (d) Additional Matters To Be Covered by Report.--The report 
required by subsection (c) also shall contain the following:
            (1) An assertion that all the known hazards 
        associated with liquid propellant have been identified 
        and are controllable to acceptable levels.
            (2) An assessment of the technology for each 
        component of the Crusader (the cannon, vehicle, and 
        crew module), including, for each performance goal of 
        the Crusader program (including the goal for total 
        system weight), information about the maturity of the 
        technology to achieve that goal, the maturity of the 
        design of the technology, and the manner in which the 
        design has been proven (for example, through 
        simulation, bench testing, or weapon firing).
            (3) An assessment of the cost of continued 
        development of the Crusader after August 1, 1996, and 
        the cost of each unit of the Crusader in the year the 
        Crusader will be completed.

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

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

SEC. 227. DEFENSE AIRBORNE RECONNAISSANCE PROGRAM.

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

           Subtitle C--Ballistic Missile Defense Act of 1995

SEC. 231. SHORT TITLE.

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

SEC. 232. FINDINGS.

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

SEC. 233. BALLISTIC MISSILE DEFENSE POLICY.

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

SEC. 234. THEATER MISSILE DEFENSE ARCHITECTURE.

    (a) Establishment of Core Program.--To implement the policy 
established in paragraph (1) of section 233, the Secretary of 
Defense shall restructure the core theater missile defense 
program to consist of the following systems, to be carried out 
so as to achieve the specified capabilities:
            (1) The Patriot PAC-3 system, with a first unit 
        equipped (FUE) during fiscal year 1998.
            (2) The Navy Lower Tier (Area) system, with a user 
        operational evaluation system (UOES) capability during 
        fiscal year 1997 and an initial operational capability 
        (IOC) during fiscal year 1999.
            (3) The Theater High-Altitude Area Defense (THAAD) 
        system, with a user operational evaluation system 
        (UOES) capability not later than fiscal year 1998 and a 
        first unit equipped (FUE) not later than fiscal year 
        2000.
            (4) The Navy Upper Tier (Theater Wide) system, with 
        a user operational evaluation system (UOES) capability 
        during fiscal year 1999 and an initial operational 
        capability (IOC) during fiscal year 2001.
    (b) Use of Streamlined Acquisition Procedures.--The 
Secretary of Defense shall prescribe and use streamlined 
acquisition policies and procedures to reduce the cost and 
increase the efficiency of developing and deploying the theater 
missile defense systems specified in subsection (a).
    (c) Interoperability and Support of Core Systems.--To 
maximize effectiveness and flexibility of the systems 
comprising the core theater missile defense program, the 
Secretary of Defense shall ensure that those systems are 
integrated and complementary and are fully capable of 
exploiting external sensor and battle management support from 
systems such as--
            (A) the Cooperative Engagement Capability (CEC) 
        system of the Navy;
            (B) airborne sensors; and
            (C) space-based sensors (including, in particular, 
        the Space and Missile Tracking System).
    (d) Follow-on Systems.--(1) The Secretary of Defense shall 
prepare an affordable development plan for theater missile 
defense systems to be developed as follow-on systems to the 
core systems specified in subsection (a). The Secretary shall 
make the selection of a system for inclusion in the plan based 
on the capability of the system to satisfy military 
requirements not met by the systems in the core program and on 
the capability of the system to use prior investments in 
technologies, infrastructure, and battle-management 
capabilities that are incorporated in, or associated with, the 
systems in the core program.
    (2) The Secretary may not proceed with the development of a 
follow-on theater missile defense system beyond the 
Demonstration/Validation stage of development unless the 
Secretary designates that system as a part of the core program 
under this section and submits to the congressional defense 
committees notice of that designation. The Secretary shall 
include with any such notification a report describing--
            (A) the requirements for the system and the 
        specific threats that such system is designed to 
        counter;
            (B) how the system will relate to, support, and 
        build upon existing core systems;
            (C) the planned acquisition strategy for the 
        system; and
            (D) a preliminary estimate of total program cost 
        for that system and the effect of development and 
        acquisition of such system on Department of Defense 
        budget projections.
    (e) Program Accountability Report.--(1) As part of the 
annual report of the Ballistic Missile Defense Organization 
required by section 224 of Public Law 101-189 (10 U.S.C. 2431 
note), the Secretary of Defense shall describe the technical 
milestones, the schedule, and the cost of each phase of 
development and acquisition (together with total estimated 
program costs) for each core and follow-on theater missile 
defense program.
    (2) As part of such report, the Secretary shall describe, 
with respect to each program covered in the report, any 
variance in the technical milestones, program schedule 
milestones, and costs for the program compared with the 
information relating to that program in the report submitted in 
the previous year and in the report submitted in the first year 
in which that program was covered.
    (f) Reports on TMD System Limitations Under ABM Treaty.--
(1) Whenever, after January 1, 1993, the Secretary of Defense 
issues a certification with respect to the compliance of a 
particular Theater Missile Defense system with the ABM Treaty, 
the Secretary shall transmit to the Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives a copy of such certification. Such 
transmittal shall be made not later than 30 days after the date 
on which such certification is issued, except that in the case 
of a certification issued before the date of the enactment of 
this Act, such transmittal shall be made not later than 60 days 
after the date of the enactment of this Act.
    (2) If a certification under paragraph (1) is based on 
application of a policy concerning United States compliance 
with the ABM Treaty that differs from the policy described in 
section 235(b)(1), the Secretary shall include with the 
transmittal under that paragraph a report providing a detailed 
assessment of--
            (A) how the policy applied differs from the policy 
        described in section 235(b)(1); and
            (B) how the application of that policy (rather than 
        the policy described in section 235(b)(1)) will affect 
        the cost, schedule, and performance of that system.

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

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

SEC. 236. BALLISTIC MISSILE DEFENSE COOPERATION WITH ALLIES.

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

SEC. 237. ABM TREATY DEFINED.

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

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

    The Missile Defense Act of 1991 (10 U.S.C. 2431 note) is 
repealed.

         Subtitle D--Other Ballistic Missile Defense Provisions

SEC. 251. BALLISTIC MISSILE DEFENSE PROGRAM ELEMENTS.

    (a) Elements Specified.--In the budget justification 
materials submitted to Congress in support of the Department of 
Defense budget for any fiscal year after fiscal year 1996 (as 
submitted with the budget of the President under section 
1105(a) of title 31, United States Code), the amount requested 
for activities of the Ballistic Missile Defense Organization 
shall be set forth in accordance with the following program 
elements:
            (1) The Patriot system.
            (2) The Navy Lower Tier (Area) system.
            (3) The Theater High-Altitude Area Defense (THAAD) 
        system.
            (4) The Navy Upper Tier (Theater Wide) system.
            (5) The Corps Surface-to-Air Missile (SAM) system.
            (6) Other Theater Missile Defense Activities.
            (7) National Missile Defense.
            (8) Follow-On and Support Technologies.
    (b) Treatment of Core Theater Missile Defense Programs.--
Amounts requested for core theater missile defense programs 
specified in section 234 shall be specified in individual, 
dedicated program elements, and amounts appropriated for such 
programs shall be available only for activities covered by 
those program elements.
    (c) BM/C3I Programs.--Amounts requested for programs, 
projects, and activities involving battle management, command, 
control, communications, and intelligence (BM/C3I) shall 
be included in the ``Other Theater Missile Defense Activities'' 
program element or the ``National Missile Defense'' program 
element, as determined on the basis of the primary objectives 
involved.
    (d) Management and Support.--Each program element shall 
include requests for the amounts necessary for the management 
and support of the programs, projects, and activities contained 
in that program element.

SEC. 252. TESTING OF THEATER MISSILE DEFENSE INTERCEPTORS.

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

SEC. 253. REPEAL OF MISSILE DEFENSE PROVISIONS.

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

        Subtitle E--Miscellaneous Reviews, Studies, and Reports

SEC. 261. PRECISION-GUIDED MUNITIONS.

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

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

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

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

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

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

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

SEC. 265. AERONAUTICAL RESEARCH AND TEST CAPABILITIES ASSESSMENT.

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

                       Subtitle F--Other Matters

SEC. 271. ADVANCED LITHOGRAPHY PROGRAM.

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

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

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

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

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

SEC. 274. CRUISE MISSILE DEFENSE INITIATIVE.

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

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

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

SEC. 276. MANUFACTURING TECHNOLOGY PROGRAM.

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

``2525. Manufacturing Technology Program.''.

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

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

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

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

SEC. 279. GLOBAL POSITIONING SYSTEM.

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

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

    (a) Purpose.--Subsection (b)(2) of section 1459 of the 
Department of Defense Authorization Act, 1986 (Public Law 99-
145; 99 Stat. 763) is amended by striking out ``to make 
available'' and all that follows and inserting in lieu thereof 
``to provide for the management, operation, and maintenance of 
those areas in the national science center that are designated 
for use by the Army and to provide incidental support for the 
operation of those areas in the center that are designated for 
general use.''.
    (b) Authority for Support.--Subsection (c) of such section 
is amended to read as follows:
    ``(c) National Science Center.--(1) The Secretary may 
manage, operate, and maintain facilities at the center under 
terms and conditions prescribed by the Secretary for the 
purpose of conducting educational outreach programs in 
accordance with chapter 111 of title 10, United States Code.
    ``(2) The Foundation, or NSC Discovery Center, 
Incorporated, a nonprofit corporation of the State of Georgia, 
shall submit to the Secretary for review and approval all 
matters pertaining to the acquisition, design, renovation, 
equipping, and furnishing of the center, including all plans, 
specifications, contracts, sites, and materials for the 
center.''.
    (c) Authority for Acceptance of Gifts and Fundraising.--
Subsection (d) of such section is amended to read as follows:
    ``(d) Gifts and Fundraising.--(1) Subject to paragraph (3), 
the Secretary may accept a conditional or unconditional 
donation of money or property that is made for the benefit of, 
or in connection with, the center.
    ``(2) Notwithstanding any other provision of law, the 
Secretary may endorse, promote, and assist the efforts of the 
Foundation and NSC Discovery Center, Incorporated, to obtain--
            ``(A) funds for the management, operation, and 
        maintenance of the center; and
            ``(B) donations of exhibits, equipment, and other 
        property for use in the center.
    ``(3) The Secretary may not accept a donation under this 
subsection that is made subject to--
            ``(A) any condition that is inconsistent with an 
        applicable law or regulation; or
            ``(B) except to the extent provided in 
        appropriations Acts, any condition that would 
        necessitate an expenditure of appropriated funds.
    ``(4) The Secretary shall prescribe in regulations the 
criteria to be used in determining whether to accept a 
donation. The Secretary shall include criteria to ensure that 
acceptance of a donation does not establish an unfavorable 
appearance regarding the fairness and objectivity with which 
the Secretary or any other officer or employee of the 
Department of Defense performs official responsibilities and 
does not compromise or appear to compromise the integrity of a 
Government program or any official involved in that program.''.
    (d) Authorized Uses.--Such section is amended--
            (1) by striking out subsection (f);
            (2) by redesignating subsection (g) as subsection 
        (f); and
            (3) in paragraph (1) of subsection (f), as 
        redesignated by paragraph (2), by inserting ``areas 
        designated for use by the Army in'' after ``The 
        Secretary may make''.
    (e) Alternative of Additional Development and Management.--
Such section, as amended by subsection (d), is further amended 
by adding at the end the following:
    ``(g) Alternative or Additional Development and Management 
of the Center.--(1) The Secretary may enter into an agreement 
with NSC Discovery Center, Incorporated, to develop, manage, 
and maintain a national science center under this section. In 
entering into an agreement with NSC Discovery Center, 
Incorporated, the Secretary may agree to any term or condition 
to which the Secretary is authorized under this section to 
agree for purposes of entering into an agreement with the 
Foundation.
    ``(2) The Secretary may exercise the authority under 
paragraph (1) in addition to, or instead of, exercising the 
authority provided under this section to enter into an 
agreement with the Foundation.''.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

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

SEC. 302. WORKING CAPITAL FUNDS.

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

SEC. 303. ARMED FORCES RETIREMENT HOME.

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

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

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

SEC. 305. CIVIL AIR PATROL.

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

                   Subtitle B--Depot-Level Activities

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

    (a) Findings.--Congress makes the following findings:
            (1) The Department of Defense does not have a 
        comprehensive policy regarding the performance of 
        depot-level maintenance and repair of military 
        equipment.
            (2) The absence of such a policy has caused the 
        Congress to establish guidelines for the performance of 
        such functions.
            (3) It is essential to the national security of the 
        United States that the Department of Defense maintain 
        an organic capability within the department, including 
        skilled personnel, technical competencies, equipment, 
        and facilities, to perform depot-level maintenance and 
        repair of military equipment in order to ensure that 
        the Armed Forces of the United States are able to meet 
        training, operational, mobilization, and emergency 
        requirements without impediment.
            (4) The organic capability of the Department of 
        Defense to perform depot-level maintenance and repair 
        of military equipment must satisfy known and 
        anticipated core maintenance and repair requirements 
        across the full range of peacetime and wartime 
        scenarios.
            (5) Although it is possible that savings can be 
        achieved by contracting with private-sector sources for 
        the performance of some work currently performed by 
        Department of Defense depots, the Department of Defense 
        has not determined the type or amount of work that 
        should be performed under contract with private-sector 
        sources nor the relative costs and benefits of 
        contracting for the performance of such work by those 
        sources.
    (b) Sense of Congress.--It is the sense of Congress that 
there is a compelling need for the Department of Defense to 
articulate known and anticipated core maintenance and repair 
requirements, to organize the resources of the Department of 
Defense to meet those requirements economically and 
efficiently, and to determine what work should be performed by 
the private sector and how such work should be managed.
    (c) Requirement for Policy.--Not later than March 31, 1996, 
the Secretary of Defense shall develop and report to the 
Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives a 
comprehensive policy on the performance of depot-level 
maintenance and repair for the Department of Defense that 
maintains the capability described in section 2464 of title 10, 
United States Code.
    (d) Content of Policy.--In developing the policy, the 
Secretary of Defense shall do each of the following:
            (1) Identify for each military department, with the 
        concurrence of the Secretary of that military 
        department, those depot-level maintenance and repair 
        activities that are necessary to ensure the depot-level 
        maintenance and repair capability as required by 
        section 2464 of title 10, United States Code.
            (2) Provide for performance of core depot-level 
        maintenance and repair capabilities in facilities owned 
        and operated by the United States.
            (3) Provide for the core capabilities to include 
        sufficient skilled personnel, equipment, and facilities 
        that--
                    (A) is of the proper size (i) to ensure a 
                ready and controlled source of technical 
                competence and repair and maintenance 
                capability necessary to meet the requirements 
                of the National Military Strategy and other 
                requirements for responding to mobilizations 
                and military contingencies, and (ii) to provide 
                for rapid augmentation in time of emergency; 
                and
                    (B) is assigned sufficient workload to 
                ensure cost efficiency and technical 
                proficiency in time of peace.
            (4) Address environmental liability.
            (5) In the case of depot-level maintenance and 
        repair workloads in excess of the workload required to 
        be performed by Department of Defense depots, provide 
        for competition for those workloads between public and 
        private entities when there is sufficient potential for 
        realizing cost savings based on adequate private-sector 
        competition and technical capabilities.
            (6) Address issues concerning exchange of technical 
        data between the Federal Government and the private 
        sector.
            (7) Provide for, in the Secretary's discretion and 
        after consultation with the Secretaries of the military 
        departments, the transfer from one military department 
        to another, in accordance with merit-based selection 
        processes, workload that supports the core depot-level 
        maintenance and repair capabilities in facilities owned 
        and operated by the United States.
            (8) Require that, in any competition for a workload 
        (whether among private-sector sources or between depot-
        level activities of the Department of Defense and 
        private-sector sources), bids are evaluated under a 
        methodology that ensures that appropriate costs to the 
        Government and the private sector are identified.
            (9) Provide for the performance of maintenance and 
        repair for any new weapons systems defined as core, 
        under section 2464 of title 10, United States Code, in 
        facilities owned and operated by the United States.
    (e) Considerations.--In developing the policy, the 
Secretary shall take into consideration the following matters:
            (1) The national security interests of the United 
        States.
            (2) The capabilities of the public depots and the 
        capabilities of businesses in the private sector to 
        perform the maintenance and repair work required by the 
        Department of Defense.
            (3) Any applicable recommendations of the Defense 
        Base Closure and Realignment Commission that are 
        required to be implemented under the Defense Base 
        Closure and Realignment Act of 1990.
            (4) The extent to which the readiness of the Armed 
        Forces would be affected by a necessity to construct 
        new facilities to accommodate any redistribution of 
        depot-level maintenance and repair workloads that is 
        made in accordance with the recommendation of the 
        Defense Base Closure and Realignment Commission, under 
        the Defense Base Closure and Realignment Act of 1990, 
        that such workloads be consolidated at Department of 
        Defense depots or private-sector facilities.
            (5) Analyses of costs and benefits of alternatives, 
        including a comparative analysis of--
                    (A) the costs and benefits, including any 
                readiness implications, of any proposed policy 
                to convert to contractor performance of depot-
                level maintenance and repair workloads where 
                the workload is being performed by Department 
                of Defense personnel; and
                    (B) the costs and benefits, including any 
                readiness implications, of a policy to transfer 
                depot-level maintenance and repair workloads 
                among depots.
    (f) Repeal of 60/40 Requirement and Requirement Relating to 
Competition.--(1) Sections 2466 and 2469 of title 10, United 
States Code, are repealed.
    (2) The table of sections at the beginning of chapter 146 
of such title is amended by striking out the items relating to 
sections 2466 and 2469.
    (3) The amendments made by paragraphs (1) and (2) shall 
take effect on the date (after the date of the enactment of 
this Act) on which legislation is enacted that contains a 
provision that specifically states one of the following:
            (A) ``The policy on the performance of depot-level 
        maintenance and repair for the Department of Defense 
        that was submitted by the Secretary of Defense to the 
        Committee on Armed Services of the Senate and the 
        Committee on National Security of the House of 
        Representatives pursuant to section 311 of the National 
        Defense Authorization Act for Fiscal Year 1996 is 
        approved.''; or
            (B) ``The policy on the performance of depot-level 
        maintenance and repair for the Department of Defense 
        that was submitted by the Secretary of Defense to the 
        Committee on Armed Services of the Senate and the 
        Committee on National Security of the House of 
        Representatives pursuant to section 311 of the National 
        Defense Authorization Act for Fiscal Year 1996 is 
        approved with the following modifications:'' (with the 
        modifications being stated in matter appearing after 
        the colon).
    (g) Annual Report.--If legislation referred to in 
subsection (f)(3) is enacted, the Secretary of Defense shall, 
not later than March 1 of each year (beginning with the year 
after the year in which such legislation is enacted), submit to 
Congress a report that--
            (1) specifies depot maintenance core capability 
        requirements determined in accordance with the 
        procedures established to comply with the policy 
        prescribed pursuant to subsections (d)(2) and (d)(3);
            (2) specifies the planned amount of workload to be 
        accomplished by the depot-level activities of each 
        military department in support of those requirements 
        for the following fiscal year; and
            (3) identifies the planned amount of workload, 
        which--
                    (A) shall be measured by direct labor hours 
                and by amounts to be expended; and
                    (B) shall be shown separately for each 
                commodity group.
    (h) Review by General Accounting Office.--(1) The Secretary 
shall make available to the Comptroller General of the United 
States all information used by the Department of Defense in 
developing the policy under subsections (c) through (e) of this 
section.
    (2) Not later than 45 days after the date on which the 
Secretary submits to Congress the report required by subsection 
(c), the Comptroller General shall transmit to Congress a 
report containing a detailed analysis of the Secretary's 
proposed policy as reported under such subsection.
    (i) Report on Depot-Level Maintenance and Repair 
Workload.--Not later than March 31, 1996, the Secretary of 
Defense shall submit to Congress a report on the depot-level 
maintenance and repair workload of the Department of Defense. 
The report shall, to the maximum extent practicable, include 
the following:
            (1) An analysis of the need for and effect of the 
        requirement under section 2466 of title 10, United 
        States Code, that no more than 40 percent of the depot-
        level maintenance and repair work of the Department of 
        Defense be contracted for performance by non-Government 
        personnel, including a description of the effect on 
        military readiness and the national security resulting 
        from that requirement and a description of any specific 
        difficulties experienced by the Department of Defense 
        as a result of that requirement.
            (2) An analysis of the distribution during the five 
        fiscal years ending with fiscal year 1995 of the depot-
        level maintenance and repair workload of the Department 
        of Defense between depot-level activities of the 
        Department of Defense and non-Government personnel, 
        measured by direct labor hours and by amounts expended, 
        and displayed, for that five-year period and for each 
        year of that period, so as to show (for each military 
        department (and separately for the Navy and Marine 
        Corps)) such distribution.
            (3) A projection of the distribution during the 
        five fiscal years beginning with fiscal year 1997 of 
        the depot-level maintenance and repair workload of the 
        Department of Defense between depot-level activities of 
        the Department of Defense and non-Government personnel, 
        measured by direct labor hours and by amounts expended, 
        and displayed, for that five-year period and for each 
        year of that period, so as to show (for each military 
        department (and separately for the Navy and Marine 
        Corps)) such distribution that would be accomplished 
        under a new policy as required under subsection (c).
    (j) Other Review by General Accounting Office.--(1) The 
Comptroller General of the United States shall conduct an 
independent audit of the findings of the Secretary of Defense 
in the report under subsection (i). The Secretary of Defense 
shall provide to the Comptroller General for such purpose all 
information used by the Secretary in preparing such report.
    (2) Not later than 45 days after the date on which the 
Secretary of Defense submits to Congress the report required 
under subsection (i), the Comptroller General shall transmit to 
Congress a report containing a detailed analysis of the report 
submitted under that subsection.

SEC. 312. MANAGEMENT OF DEPOT EMPLOYEES.

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

``Sec. 2472. Management of depot employees

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

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

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

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

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

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

                  Subtitle C--Environmental Provisions

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

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

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

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

SEC. 323. USE OF DEFENSE ENVIRONMENTAL RESTORATION ACCOUNT.

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

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

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

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

    (a) Purposes.--The purposes of this section are to--
            (1) enhance the operational flexibility of vessels 
        of the Armed Forces domestically and internationally;
            (2) stimulate the development of innovative vessel 
        pollution control technology; and
            (3) advance the development by the United States 
        Navy of environmentally sound ships.
    (b) Uniform National Discharge Standards Development.--
Section 312 of the Federal Water Pollution Control Act (33 
U.S.C. 1322) is amended by adding at the end the following:
    ``(n) Uniform National Discharge Standards for Vessels of 
the Armed Forces.--
            ``(1) Applicability.--This subsection shall apply 
        to vessels of the Armed Forces and discharges, other 
        than sewage, incidental to the normal operation of a 
        vessel of the Armed Forces, unless the Secretary of 
        Defense finds that compliance with this subsection 
        would not be in the national security interests of the 
        United States.
            ``(2) Determination of discharges required to be 
        controlled by marine pollution control devices.--
                    ``(A) In general.--The Administrator and 
                the Secretary of Defense, after consultation 
                with the Secretary of the department in which 
                the Coast Guard is operating, the Secretary of 
                Commerce, and interested States, shall jointly 
                determine the discharges incidental to the 
                normal operation of a vessel of the Armed 
                Forces for which it is reasonable and 
                practicable to require use of a marine 
                pollution control device to mitigate adverse 
                impacts on the marine environment. 
                Notwithstanding subsection (a)(1) of section 
                553 of title 5, United States Code, the 
                Administrator and the Secretary of Defense 
                shall promulgate the determinations in 
                accordance with such section. The Secretary of 
                Defense shall require the use of a marine 
                pollution control device on board a vessel of 
                the Armed Forces in any case in which it is 
                determined that the use of such a device is 
                reasonable and practicable.
                    ``(B) Considerations.--In making a 
                determination under subparagraph (A), the 
                Administrator and the Secretary of Defense 
                shall take into consideration--
                            ``(i) the nature of the discharge;
                            ``(ii) the environmental effects of 
                        the discharge;
                            ``(iii) the practicability of using 
                        the marine pollution control device;
                            ``(iv) the effect that installation 
                        or use of the marine pollution control 
                        device would have on the operation or 
                        operational capability of the vessel;
                            ``(v) applicable United States law;
                            ``(vi) applicable international 
                        standards; and
                            ``(vii) the economic costs of the 
                        installation and use of the marine 
                        pollution control device.
            ``(3) Performance standards for marine pollution 
        control devices.--
                    ``(A) In general.--For each discharge for 
                which a marine pollution control device is 
                determined to be required under paragraph (2), 
                the Administrator and the Secretary of Defense, 
                in consultation with the Secretary of the 
                department in which the Coast Guard is 
                operating, the Secretary of State, the 
                Secretary of Commerce, other interested Federal 
                agencies, and interested States, shall jointly 
                promulgate Federal standards of performance for 
                each marine pollution control device required 
                with respect to the discharge. Notwithstanding 
                subsection (a)(1) of section 553 of title 5, 
                United States Code, the Administrator and the 
                Secretary of Defense shall promulgate the 
                standards in accordance with such section.
                    ``(B) Considerations.--In promulgating 
                standards under this paragraph, the 
                Administrator and the Secretary of Defense 
                shall take into consideration the matters set 
                forth in paragraph (2)(B).
                    ``(C) Classes, types, and sizes of 
                vessels.--The standards promulgated under this 
                paragraph may--
                            ``(i) distinguish among classes, 
                        types, and sizes of vessels;
                            ``(ii) distinguish between new and 
                        existing vessels; and
                            ``(iii) provide for a waiver of the 
                        applicability of the standards as 
                        necessary or appropriate to a 
                        particular class, type, age, or size of 
                        vessel.
            ``(4) Regulations for use of marine pollution 
        control devices.--The Secretary of Defense, after 
        consultation with the Administrator and the Secretary 
        of the department in which the Coast Guard is 
        operating, shall promulgate such regulations governing 
        the design, construction, installation, and use of 
        marine pollution control devices on board vessels of 
        the Armed Forces as are necessary to achieve the 
        standards promulgated under paragraph (3).
            ``(5) Deadlines; effective date.--
                    ``(A) Determinations.--The Administrator 
                and the Secretary of Defense shall--
                            ``(i) make the initial 
                        determinations under paragraph (2) not 
                        later than 2 years after the date of 
                        the enactment of this subsection; and
                            ``(ii) every 5 years--
                                    ``(I) review the 
                                determinations; and
                                    ``(II) if necessary, revise 
                                the determinations based on 
                                significant new information.
                    ``(B) Standards.--The Administrator and the 
                Secretary of Defense shall--
                            ``(i) promulgate standards of 
                        performance for a marine pollution 
                        control device under paragraph (3) not 
                        later than 2 years after the date of a 
                        determination under paragraph (2) that 
                        the marine pollution control device is 
                        required; and
                            ``(ii) every 5 years--
                                    ``(I) review the standards; 
                                and
                                    ``(II) if necessary, revise 
                                the standards, consistent with 
                                paragraph (3)(B) and based on 
                                significant new information.
                    ``(C) Regulations.--The Secretary of 
                Defense shall promulgate regulations with 
                respect to a marine pollution control device 
                under paragraph (4) as soon as practicable 
                after the Administrator and the Secretary of 
                Defense promulgate standards with respect to 
                the device under paragraph (3), but not later 
                than 1 year after the Administrator and the 
                Secretary of Defense promulgate the standards. 
                The regulations promulgated by the Secretary of 
                Defense under paragraph (4) shall become 
                effective upon promulgation unless another 
                effective date is specified in the regulations.
                    ``(D) Petition for review.--The Governor of 
                any State may submit a petition requesting that 
                the Secretary of Defense and the Administrator 
                review a determination under paragraph (2) or a 
                standard under paragraph (3), if there is 
                significant new information, not considered 
                previously, that could reasonably result in a 
                change to the particular determination or 
                standard after consideration of the matters set 
                forth in paragraph (2)(B). The petition shall 
                be accompanied by the scientific and technical 
                information on which the petition is based. The 
                Administrator and the Secretary of Defense 
                shall grant or deny the petition not later than 
                2 years after the date of receipt of the 
                petition.
            ``(6) Effect on other laws.--
                    ``(A) Prohibition on regulation by states 
                or political subdivisions of states.--Beginning 
                on the effective date of--
                            ``(i) a determination under 
                        paragraph (2) that it is not reasonable 
                        and practicable to require use of a 
                        marine pollution control device 
                        regarding a particular discharge 
                        incidental to the normal operation of a 
                        vessel of the Armed Forces; or
                            ``(ii) regulations promulgated by 
                        the Secretary of Defense under 
                        paragraph (4);
                except as provided in paragraph (7), neither a 
                State nor a political subdivision of a State 
                may adopt or enforce any statute or regulation 
                of the State or political subdivision with 
                respect to the discharge or the design, 
                construction, installation, or use of any 
                marine pollution control device required to 
                control discharges from a vessel of the Armed 
                Forces.
                    ``(B) Federal laws.--This subsection shall 
                not affect the application of section 311 to 
                discharges incidental to the normal operation 
                of a vessel.
            ``(7) Establishment of state no-discharge zones.--
                    ``(A) State prohibition.--
                            ``(i) In general.--After the 
                        effective date of--
                                    ``(I) a determination under 
                                paragraph (2) that it is not 
                                reasonable and practicable to 
                                require use of a marine 
                                pollution control device 
                                regarding a particular 
                                discharge incidental to the 
                                normal operation of a vessel of 
                                the Armed Forces; or
                                    ``(II) regulations 
                                promulgated by the Secretary of 
                                Defense under paragraph (4);
                        if a State determines that the 
                        protection and enhancement of the 
                        quality of some or all of the waters 
                        within the State require greater 
                        environmental protection, the State may 
                        prohibit 1 or more discharges 
                        incidental to the normal operation of a 
                        vessel, whether treated or not treated, 
                        into the waters. No prohibition shall 
                        apply until the Administrator makes the 
                        determinations described in subclauses 
                        (II) and (III) of subparagraph (B)(i).
                            ``(ii) Documentation.--To the 
                        extent that a prohibition under this 
                        paragraph would apply to vessels of the 
                        Armed Forces and not to other types of 
                        vessels, the State shall document the 
                        technical or environmental basis for 
                        the distinction.
                    ``(B) Prohibition by the administrator.--
                            ``(i) In general.--Upon application 
                        of a State, the Administrator shall by 
                        regulation prohibit the discharge from 
                        a vessel of 1 or more discharges 
                        incidental to the normal operation of a 
                        vessel, whether treated or not treated, 
                        into the waters covered by the 
                        application if the Administrator 
                        determines that--
                                    ``(I) the protection and 
                                enhancement of the quality of 
                                the specified waters within the 
                                State require a prohibition of 
                                the discharge into the waters;
                                    ``(II) adequate facilities 
                                for the safe and sanitary 
                                removal of the discharge 
                                incidental to the normal 
                                operation of a vessel are 
                                reasonably available for the 
                                waters to which the prohibition 
                                would apply; and
                                    ``(III) the prohibition 
                                will not have the effect of 
                                discriminating against a vessel 
                                of the Armed Forces by reason 
                                of the ownership or operation 
                                by the Federal Government, or 
                                the military function, of the 
                                vessel.
                            ``(ii) Approval or disapproval.--
                        The Administrator shall approve or 
                        disapprove an application submitted 
                        under clause (i) not later than 90 days 
                        after the date on which the application 
                        is submitted to the Administrator. 
                        Notwithstanding clause (i)(II), the 
                        Administrator shall not disapprove an 
                        application for the sole reason that 
                        there are not adequate facilities to 
                        remove any discharge incidental to the 
                        normal operation of a vessel from 
                        vessels of the Armed Forces.
                    ``(C) Applicability to foreign flagged 
                vessels.--A prohibition under this paragraph--
                            ``(i) shall not impose any design, 
                        construction, manning, or equipment 
                        standard on a foreign flagged vessel 
                        engaged in innocent passage unless the 
                        prohibition implements a generally 
                        accepted international rule or 
                        standard; and
                            ``(ii) that relates to the 
                        prevention, reduction, and control of 
                        pollution shall not apply to a foreign 
                        flagged vessel engaged in transit 
                        passage unless the prohibition 
                        implements an applicable international 
                        regulation regarding the discharge of 
                        oil, oily waste, or any other noxious 
                        substance into the waters.
            ``(8) Prohibition relating to vessels of the armed 
        forces.--After the effective date of the regulations 
        promulgated by the Secretary of Defense under paragraph 
        (4), it shall be unlawful for any vessel of the Armed 
        Forces subject to the regulations to--
                    ``(A) operate in the navigable waters of 
                the United States or the waters of the 
                contiguous zone, if the vessel is not equipped 
                with any required marine pollution control 
                device meeting standards established under this 
                subsection; or
                    ``(B) discharge overboard any discharge 
                incidental to the normal operation of a vessel 
                in waters with respect to which a prohibition 
                on the discharge has been established under 
                paragraph (7).
            ``(9) Enforcement.--This subsection shall be 
        enforceable, as provided in subsections (j) and (k), 
        against any agency of the United States responsible for 
        vessels of the Armed Forces notwithstanding any 
        immunity asserted by the agency.''.
    (c) Conforming Amendments.--
            (1) Definitions.--Section 312(a) of the Federal 
        Water Pollution Control Act (33 U.S.C. 1322(a)) is 
        amended--
                    (A) in paragraph (8)--
                            (i) by striking ``or''; and
                            (ii) by inserting ``or agency of 
                        the United States,'' after 
                        ``association,'';
                    (B) in paragraph (11), by striking the 
                period at the end and inserting a semicolon; 
                and
                    (C) by adding at the end the following:
            ``(12) `discharge incidental to the normal 
        operation of a vessel'--
                    ``(A) means a discharge, including--
                            ``(i) graywater, bilge water, 
                        cooling water, weather deck runoff, 
                        ballast water, oil water separator 
                        effluent, and any other pollutant 
                        discharge from the operation of a 
                        marine propulsion system, shipboard 
                        maneuvering system, crew habitability 
                        system, or installed major equipment, 
                        such as an aircraft carrier elevator or 
                        a catapult, or from a protective, 
                        preservative, or absorptive application 
                        to the hull of the vessel; and
                            ``(ii) a discharge in connection 
                        with the testing, maintenance, and 
                        repair of a system described in clause 
                        (i) whenever the vessel is waterborne; 
                        and
                    ``(B) does not include--
                            ``(i) a discharge of rubbish, 
                        trash, garbage, or other such material 
                        discharged overboard;
                            ``(ii) an air emission resulting 
                        from the operation of a vessel 
                        propulsion system, motor driven 
                        equipment, or incinerator; or
                            ``(iii) a discharge that is not 
                        covered by part 122.3 of title 40, Code 
                        of Federal Regulations (as in effect on 
                        the date of the enactment of subsection 
                        (n));
            ``(13) `marine pollution control device' means any 
        equipment or management practice, for installation or 
        use on board a vessel of the Armed Forces, that is--
                    ``(A) designed to receive, retain, treat, 
                control, or discharge a discharge incidental to 
                the normal operation of a vessel; and
                    ``(B) determined by the Administrator and 
                the Secretary of Defense to be the most 
                effective equipment or management practice to 
                reduce the environmental impacts of the 
                discharge consistent with the considerations 
                set forth in subsection (n)(2)(B); and
            ``(14) `vessel of the Armed Forces' means--
                    ``(A) any vessel owned or operated by the 
                Department of Defense, other than a time or 
                voyage chartered vessel; and
                    ``(B) any vessel owned or operated by the 
                Department of Transportation that is designated 
                by the Secretary of the department in which the 
                Coast Guard is operating as a vessel equivalent 
                to a vessel described in subparagraph (A).''.
            (2) Enforcement.--The first sentence of section 
        312(j) of the Federal Water Pollution Control Act (33 
        U.S.C. 1322(j)) is amended--
                    (A) by striking ``of this section or'' and 
                inserting a comma; and
                    (B) by striking ``of this section shall'' 
                and inserting ``, or subsection (n)(8) shall''.
            (3) Other definitions.--Subparagraph (A) of the 
        second sentence of section 502(6) of the Federal Water 
        Pollution Control Act (33 U.S.C. 1362(6)) is amended by 
        striking `` `sewage from vessels' '' and inserting `` 
        `sewage from vessels or a discharge incidental to the 
        normal operation of a vessel of the Armed Forces' ''.
    (d) Cooperation in Standards Development.--The 
Administrator of the Environmental Protection Agency and the 
Secretary of Defense may, by mutual agreement, with or without 
reimbursement, provide for the use of information, reports, 
personnel, or other resources of the Environmental Protection 
Agency or the Department of Defense to carry out section 312(n) 
of the Federal Water Pollution Control Act (as added by 
subsection (b)), including the use of the resources--
            (1) to determine--
                    (A) the nature and environmental effect of 
                discharges incidental to the normal operation 
                of a vessel of the Armed Forces;
                    (B) the practicability of using marine 
                pollution control devices on vessels of the 
                Armed Forces; and
                    (C) the effect that installation or use of 
                marine pollution control devices on vessels of 
                the Armed Forces would have on the operation or 
                operational capability of the vessels; and
            (2) to establish performance standards for marine 
        pollution control devices on vessels of the Armed 
        Forces.

  Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 331. OPERATION OF COMMISSARY SYSTEM.

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

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

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

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

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

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

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

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

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

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

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

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

    (a) Demonstration Project Required.--(1) The Secretary of 
Defense shall conduct a demonstration project to evaluate the 
feasibility of using only nonappropriated funds to support 
morale, welfare, and recreation programs at military 
installations in order to facilitate the procurement of 
property and services for those programs and the management of 
employees used to carry out those programs.
    (2) Under the demonstration project--
            (A) procurements of property and services for 
        programs referred to in paragraph (1) may be carried 
        out in accordance with laws and regulations applicable 
        to procurements paid for with nonappropriated funds; 
        and
            (B) appropriated funds available for such programs 
        may be expended in accordance with laws applicable to 
        expenditures of nonappropriated funds as if the 
        appropriated funds were nonappropriated funds.
    (3) The Secretary shall prescribe regulations to carry out 
paragraph (2). The regulations shall provide for financial 
management and accounting of appropriated funds expended in 
accordance with subparagraph (B) of such paragraph.
    (b) Covered Military Installations.--The Secretary shall 
select not less than three and not more than six military 
installations to participate in the demonstration project.
    (c) Period of Demonstration Project.--The demonstration 
project shall terminate not later than September 30, 1998.
    (d) Effect on Employees.--For the purpose of testing fiscal 
accounting procedures, the Secretary may convert, for the 
duration of the demonstration project, the status of an 
employee who carries out a program referred to in subsection 
(a)(1) from the status of an employee paid by appropriated 
funds to the status of a nonappropriated fund instrumentality 
employee, except that such conversion may occur only--
            (1) if the employee whose status is to be 
        converted--
                    (A) is fully informed of the effects of 
                such conversion on the terms and conditions of 
                the employment of that employee for purposes of 
                title 5, United States Code, and on the 
                benefits provided to that employee under such 
                title; and
                    (B) consents to such conversion; or
            (2) in a manner which does not affect such terms 
        and conditions of employment or such benefits.
    (e) Reports.--(1) Not later than six months after the date 
of the enactment of this Act, the Secretary shall submit to 
Congress an interim report on the implementation of this 
section.
    (2) Not later than December 31, 1998, the Secretary shall 
submit to Congress a final report on the results of the 
demonstration project. The report shall include a comparison 
of--
            (A) the cost incurred under the demonstration 
        project in using employees paid by appropriated funds 
        together with nonappropriated fund instrumentality 
        employees to carry out the programs referred to in 
        subsection (a)(1); and
            (B) an estimate of the cost that would have been 
        incurred if only nonappropriated fund instrumentality 
        employees had been used to carry out such programs.

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

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

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

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

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

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

SEC. 337. DEFERRED PAYMENT PROGRAMS OF MILITARY EXCHANGES.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    (a) In General.--The Secretary of Defense shall conduct a 
demonstration program to evaluate the feasibility of using 
private contractors to audit accounting and procurement records 
of the Department of Defense in order to identify overpayments 
made to vendors by the Department. The demonstration program 
shall be conducted for the Defense Logistics Agency and include 
the Defense Personnel Support Center.
    (b) Program Requirements.--(1) Under the demonstration 
program, the Secretary shall, by contract, provide for one or 
more persons to audit the accounting and procurement records of 
the Defense Logistics Agency that relate to (at least) fiscal 
years 1993, 1994, and 1995. The Secretary may enter into more 
than one contract under the program.
    (2) A contract under the demonstration program shall 
require the contractor to use data processing techniques that 
are generally used in audits of private-sector records similar 
to the records audited under the contract.
    (c) Audit Requirements.--In conducting an audit under the 
demonstration program, a contractor shall compare Department of 
Defense purchase agreements (and related documents) with 
invoices submitted by vendors under the purchase agreements. A 
purpose of the comparison is to identify, in the case of each 
audited purchase agreement, the following:
            (1) Any payments to the vendor for costs that are 
        not allowable under the terms of the purchase agreement 
        or by law.
            (2) Any amounts not deducted from the total amount 
        paid to the vendor under the purchase agreement that 
        should have been deducted from that amount on account 
        of goods and services provided to the vendor by the 
        Department.
            (3) Duplicate payments.
            (4) Unauthorized charges.
            (5) Other discrepancies between the amount paid to 
        the vendor and the amount actually due the vendor under 
        the purchase agreement.
    (d) Bonus Payment.--To the extent provided for in a 
contract under the demonstration program, the Secretary may pay 
the contractor a bonus in addition to any other amount paid for 
performance of the contract. The amount of such bonus may not 
exceed the amount that is equal to 25 percent of all amounts 
recovered by the United States on the basis of information 
obtained as a result of the audit performed under the contract. 
Any such bonus shall be paid out of amounts made available 
pursuant to subsection (e).
    (e) Availability of Funds.--Of the amount authorized to be 
appropriated pursuant to section 301(5), not more than 
$5,000,000 shall be available for the demonstration program.

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

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

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

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

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

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

        Subtitle F--Miscellaneous Reviews, Studies, and Reports

SEC. 361. QUARTERLY READINESS REPORTS.

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

``Sec. 452. Quarterly readiness reports

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

``452. Quarterly readiness reports.''.

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

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

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

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

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

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

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

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

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

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

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

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

    (a) Development of Strategy.--The Secretary of Defense 
shall develop a strategy for the development or modernization 
of automated information systems for the Department of Defense.
    (b) Matters To Consider.--In developing the strategy 
required under subsection (a), the Secretary shall consider the 
following:
            (1) The use of performance measures and management 
        controls.
            (2) Findings of the Functional Management Review 
        conducted by the Secretary.
            (3) Program management actions planned by the 
        Secretary.
            (4) Actions and milestones necessary for completion 
        of functional and economic analyses for--
                    (A) the Automated System for Transportation 
                data;
                    (B) continuous acquisition and life cycle 
                support;
                    (C) electronic data interchange;
                    (D) flexible computer integrated 
                manufacturing;
                    (E) the Navy Tactical Command Support 
                System; and
                    (F) the Defense Information System Network.
            (5) Progress made by the Secretary in resolving 
        problems with respect to the Defense Information System 
        Network and the Joint Computer-Aided Acquisition and 
        Logistics Support System.
            (6) Tasks identified in the review conducted by the 
        Secretary of the Standard Installation/Division 
        Personnel System-3.
            (7) Such other matters as the Secretary considers 
        appropriate.
    (c) Report on Strategy.--(1) Not later than April 15, 1996, 
the Secretary shall submit to Congress a report on the 
development of the strategy required under subsection (a).
    (2) In the case of the Air Force Wargaming Center, the Air 
Force Command Exercise System, the Cheyenne Mountain Upgrade, 
the Transportation Coordinator Automated Command and Control 
Information Systems, and the Wing Command and Control Systems, 
the report required by paragraph (1) shall provide functional 
economic analyses and address waivers exercised for compelling 
military importance under section 381(d) of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-
337; 108 Stat. 2739).
    (3) The report required by paragraph (1) shall also include 
the following:
            (A) A certification by the Secretary of the 
        termination of the Personnel Electronic Record 
        Management System or a justification for the continued 
        need for such system.
            (B) Findings of the Functional Management Review 
        conducted by the Secretary and program management 
        actions planned by the Secretary for--
                    (i) the Base Level System Modernization and 
                the Sustaining Base Information System; and
                    (ii) the Standard Installation/Division 
                Personnel System-3.
            (C) An assessment of the implementation of 
        migration systems and applications, including--
                    (i) identification of the systems and 
                applications by functional or business area, 
                specifying target dates for operation of the 
                systems and applications;
                    (ii) identification of the legacy systems 
                and applications that will be terminated;
                    (iii) the cost of and schedules for 
                implementing the migration systems and 
                applications; and
                    (iv) termination schedules.
            (D) A certification by the Secretary that each 
        information system that is subject to review by the 
        Major Automated Information System Review Committee of 
        the Department is cost-effective and supports the 
        corporate information management goals of the 
        Department, including the results of the review 
        conducted for each such system by the Committee.

                       Subtitle G--Other Matters

SEC. 371. CODIFICATION OF DEFENSE BUSINESS OPERATIONS FUND.

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

``Sec. 2216. Defense Business Operations Fund

    ``(a) Management of Working-Capital Funds and Certain 
Activities.--The Secretary of Defense may manage the 
performance of the working-capital funds and industrial, 
commercial, and support type activities described in subsection 
(b) through the fund known as the Defense Business Operations 
Fund, which is established on the books of the Treasury. Except 
for the funds and activities specified in subsection (b), no 
other functions, activities, funds, or accounts of the 
Department of Defense may be managed or converted to management 
through the Fund.
    ``(b) Funds and Activities Included.--The funds and 
activities referred to in subsection (a) are the following:
            ``(1) Working-capital funds established under 
        section 2208 of this title and in existence on December 
        5, 1991.
            ``(2) Those activities that, on December 5, 1991, 
        were funded through the use of a working-capital fund 
        established under that section.
            ``(3) The Defense Finance and Accounting Service.
            ``(4) The Defense Commissary Agency.
            ``(5) The Defense Reutilization and Marketing 
        Service.
            ``(6) The Joint Logistics Systems Center.
    ``(c) Separate Accounting, Reporting, and Auditing of Funds 
and Activities.--(1) The Secretary of Defense shall provide in 
accordance with this subsection for separate accounting, 
reporting, and auditing of funds and activities managed through 
the Fund.
    ``(2) The Secretary shall maintain the separate identity of 
each fund and activity managed through the Fund that (before 
the establishment of the Fund) was managed as a separate Fund 
or activity.
    ``(3) The Secretary shall maintain separate records for 
each function for which payment is made through the Fund and 
which (before the establishment of the Fund) was paid directly 
through appropriations, including the separate identity of the 
appropriation account used to pay for the performance of the 
function.
    ``(d) Charges for Goods and Services Provided Through the 
Fund.--(1) Charges for goods and services provided through the 
Fund shall include the following:
            ``(A) Amounts necessary to recover the full costs 
        of the goods and services, whenever practicable, and 
        the costs of the development, implementation, 
        operation, and maintenance of systems supporting the 
        wholesale supply and maintenance activities of the 
        Department of Defense.
            ``(B) Amounts for depreciation of capital assets, 
        set in accordance with generally accepted accounting 
        principles.
            ``(C) Amounts necessary to recover the full cost of 
        the operation of the Defense Finance Accounting 
        Service.
    ``(2) Charges for goods and services provided through the 
Fund may not include the following:
            ``(A) Amounts necessary to recover the costs of a 
        military construction project (as defined in section 
        2801(b) of this title), other than a minor construction 
        project financed by the Fund pursuant to section 
        2805(c)(1) of this title.
            ``(B) Amounts necessary to cover costs incurred in 
        connection with the closure or realignment of a 
        military installation.
            ``(C) Amounts necessary to recover the costs of 
        functions designated by the Secretary of Defense as 
        mission critical, such as ammunition handling safety, 
        and amounts for ancillary tasks not directly related to 
        the mission of the function or activity managed through 
        the Fund.
    ``(3)(A) The Secretary of Defense may submit to a customer 
a bill for the provision of goods and services through the Fund 
in advance of the provision of those goods and services.
    ``(B) The Secretary shall submit to Congress a report on 
advance billings made pursuant to subparagraph (A)--
            ``(i) when the aggregate amount of all such 
        billings after the date of the enactment of the 
        National Defense Authorization Act for Fiscal Year 1996 
        reaches $100,000,000; and
            ``(ii) whenever the aggregate amount of all such 
        billings after the date of a preceding report under 
        this subparagraph reaches $100,000,000.
    ``(C) Each report under subparagraph (B) shall include, for 
each such advance billing, the following:
            ``(i) An explanation of the reason for the advance 
        billing.
            ``(ii) An analysis of the impact of the advance 
        billing on readiness.
            ``(iii) An analysis of the impact of the advance 
        billing on the customer so billed.
    ``(e) Capital Asset Subaccount.--(1) Amounts charged for 
depreciation of capital assets pursuant to subsection (d)(1)(B) 
shall be credited to a separate capital asset subaccount 
established within the Fund.
    ``(2) The Secretary of Defense may award contracts for 
capital assets of the Fund in advance of the availability of 
funds in the subaccount.
    ``(f) Procedures For Accumulation of Funds.--The Secretary 
of Defense shall establish billing procedures to ensure that 
the balance in the Fund does not exceed the amount necessary to 
provide for the working capital requirements of the Fund, as 
determined by the Secretary.
    ``(g) Purchase From Other Sources.--The Secretary of 
Defense or the Secretary of a military department may purchase 
goods and services that are available for purchase from the 
Fund from a source other than the Fund if the Secretary 
determines that such source offers a more competitive rate for 
the goods and services than the Fund offers.
    ``(h) Annual Reports and Budget.--The Secretary of Defense 
shall annually submit to Congress, at the same time that the 
President submits the budget under section 1105 of title 31, 
the following:
            ``(1) A detailed report that contains a statement 
        of all receipts and disbursements of the Fund 
        (including such a statement for each subaccount of the 
        Fund) for the fiscal year ending in the year preceding 
        the year in which the budget is submitted.
            ``(2) A detailed proposed budget for the operation 
        of the Fund for the fiscal year for which the budget is 
        submitted.
            ``(3) A comparison of the amounts actually expended 
        for the operation of the Fund for the fiscal year 
        referred to in paragraph (1) with the amount proposed 
        for the operation of the Fund for that fiscal year in 
        the President's budget.
            ``(4) A report on the capital asset subaccount of 
        the Fund that contains the following information:
                    ``(A) The opening balance of the subaccount 
                as of the beginning of the fiscal year in which 
                the report is submitted.
                    ``(B) The estimated amounts to be credited 
                to the subaccount in the fiscal year in which 
                the report is submitted.
                    ``(C) The estimated amounts of outlays to 
                be paid out of the subaccount in the fiscal 
                year in which the report is submitted.
                    ``(D) The estimated balance of the 
                subaccount at the end of the fiscal year in 
                which the report is submitted.
                    ``(E) A statement of how much of the 
                estimated balance at the end of the fiscal year 
                in which the report is submitted will be needed 
                to pay outlays in the immediately following 
                fiscal year that are in excess of the amount to 
                be credited to the subaccount in the 
                immediately following fiscal year.
    ``(i) Definitions.--In this section:
            ``(1) The term `capital assets' means the following 
        capital assets that have a development or acquisition 
        cost of not less than $50,000:
                    ``(A) Minor construction projects financed 
                by the Fund pursuant to section 2805(c)(1) of 
                this title.
                    ``(B) Automatic data processing equipment, 
                software.
                    ``(C) Equipment other than equipment 
                described in subparagraph (B).
                    ``(D) Other capital improvements.
            ``(2) The term `Fund' means the Defense Business 
        Operations Fund.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2215 
the following new item:

``2216. Defense Business Operations Fund.''.

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

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

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

SEC. 373. FINANCIAL MANAGEMENT TRAINING.

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

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

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

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

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

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

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

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

    (b) Conforming Amendments for Other Armed Forces.--(1) 
Section 4621 of such title is amended--
            (A) by striking out ``The branch, office, or 
        officer designated by the Secretary of the Army'' in 
        subsection (a) and inserting in lieu thereof ``The 
        Secretary of the Army'';
            (B) by striking out ``The branch, office, or 
        officer designated by the Secretary'' both places it 
        appears in subsections (b) and (c) and inserting in 
        lieu thereof ``The Secretary''; and
            (C) by inserting before the period at the end of 
        subsection (f) the following: ``or by commercial 
        credit''.
    (2) Section 9621 of such title is amended--
            (A) by striking out ``The Air Force shall'' in 
        subsection (b) and inserting in lieu thereof ``The 
        Secretary shall''; and
            (B) by inserting before the period at the end of 
        subsection (f) the following: ``or by commercial 
        credit''.

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

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

SEC. 377. RETENTION OF MONETARY AWARDS.

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

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

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

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

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

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

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

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

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

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

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

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

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

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

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

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

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

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

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

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

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

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

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

SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE 
                    RESERVES.

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

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

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

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

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

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

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

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

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

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

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

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

              Subtitle C--Military Training Student Loads

SEC. 421. AUTHORIZATION OF TRAINING STUDENT LOADS.

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

              Subtitle D--Authorization of Appropriations

SEC. 431. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

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

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

    (a) Authorization.--There is hereby authorized to be 
appropriated to the Department of Defense for fiscal year 1996 
for military personnel the sum of $112,000,000. Any amount 
appropriated pursuant to this section shall be allocated, in 
such manner as the Secretary of Defense prescribes, among 
appropriations for active-component military personnel for that 
fiscal year and shall be available only to increase the number 
of members of the Armed Forces on active duty during that 
fiscal year (compared to the number of members that would be on 
active duty but for such appropriation).
    (b) Effect on End Strengths.--The end-strength 
authorizations in section 401 shall each be deemed to be 
increased by such number as necessary to take account of 
additional members of the Armed Forces authorized by the 
Secretary of Defense pursuant to subsection (a).

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

SEC. 501. JOINT OFFICER MANAGEMENT.

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

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

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

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

    (a) Authority and Limitations.--(1) Chapter 45 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

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

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

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

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

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

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

SEC. 505. ARMY OFFICER MANNING LEVELS.

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

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

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

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

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

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

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

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

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

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

    (a) Extension of Authority.--Subsection (f) of section 5721 
of title 10, United States Code, is amended by striking out 
``September 30, 1995'' and inserting in lieu thereof 
``September 30, 1996''.
    (b) Limitation.--Such section is further amended--
            (1) by redesignating subsection (f), as amended by 
        subsection (a), as subsection (g); and
            (2) by inserting after subsection (e) the following 
        new subsection (f):
    ``(f) Limitation on Number of Eligible Positions.--(1) An 
appointment under this section may only be made for service in 
a position designated by the Secretary of the Navy for purposes 
of this section. The number of positions so designated may not 
exceed 325.
    ``(2) Whenever the Secretary makes a change to the 
positions designated under paragraph (1), the Secretary shall 
submit notice of the change in writing to Congress.''.
    (c) Report.--Not later than April 1, 1996, the Secretary of 
Defense shall submit to Congress a report providing the 
Secretary's assessment of that continuing need for the 
promotion authority under section 5721 of title 10, United 
States Code. The Secretary shall include in the report the 
following:
            (1) The nature and grade structure of the positions 
        for which such authority has been used.
            (2) The cause or causes of the reported chronic 
        shortages of qualified personnel in the required grade 
        to fill the positions specified under paragraph (1).
            (3) The reasons for the perceived inadequacy of the 
        officer promotion system (including ``below-the-zone'' 
        selections) to provide sufficient officers in the 
        required grade to fill those positions.
            (4) The extent to which a bonus program or some 
        other program would be a more appropriate means of 
        resolving the reported chronic shortages in engineering 
        positions.
    (d) Clerical Amendments.--Section 5721 of title 10, United 
States Code, is amended as follows:
            (1) Subsection (a) is amended by inserting 
        ``Promotion Authority for Certain Officer With Critical 
        Skills.--'' after ``(a)''.
            (2) Subsection (b) is amended by inserting ``Status 
        of Officers Appointed.--'' after ``(b)''.
            (3) Subsection (c) is amended by inserting ``Board 
        Recommendation Required.--'' after ``(c)''.
            (4) Subsection (d) is amended by inserting 
        ``Acceptance and Effective Date of Appointment.--'' 
        after ``(d)''.
            (5) Subsection (e) is amended by inserting 
        ``Termination of Appointment.--'' after ``(e)''.
            (6) Subsection (g), as redesignated by subsection 
        (b)(1), is amended by inserting ``Termination of 
        Appointment Authority.--'' after ``(g)''.
    (e) Effective Date.--Subsection (f) of section 5721 of 
title 10, United States Code, as added by subsection (b)(2), 
shall take effect at the end of the 30-day period beginning on 
the date of the enactment of this Act and shall apply to any 
appointment under that section after the end of such period.

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

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

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

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

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

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

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

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

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

           Subtitle B--Matters Relating to Reserve Components

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

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

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

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

      ``CHAPTER 1214--READY RESERVE MOBILIZATION INCOME INSURANCE

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

``Sec. 12521. Definitions

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

``Sec. 12522. Establishment of insurance program

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

``Sec. 12523. Risk insured

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

``Sec. 12524. Enrollment and election of benefits

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

``Sec. 12525. Benefit amounts

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

``Sec. 12526. Premiums

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

``Sec. 12527. Payment of premiums

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

``Sec. 12528. Reserve Mobilization Income Insurance Fund

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

``Sec. 12529. Board of Actuaries

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

``Sec. 12530. Payment of benefits

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

``Sec. 12531. Purchase of insurance

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

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

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

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

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

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

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

``Sec. 10216. Military technicians

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

``10216. Military technicians.''.

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

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

    (a) Prior Active Duty Personnel.--Section 1111 of the Army 
National Guard Combat Readiness Reform Act of 1992 (title XI of 
Public Law 102-484) is amended--
            (1) in the section heading, by striking out the 
        first three words;
            (2) by striking out subsections (a) and (b) and 
        inserting in lieu thereof the following:
    ``(a) Additional Prior Active Duty Officers.--The Secretary 
of the Army shall increase the number of qualified prior 
active-duty officers in the Army National Guard by providing a 
program that permits the separation of officers on active duty 
with at least two, but less than three, years of active service 
upon condition that the officer is accepted for appointment in 
the Army National Guard. The Secretary shall have a goal of 
having not fewer than 150 officers become members of the Army 
National Guard each year under this section.
    ``(b) Additional Prior Active Duty Enlisted Members.--The 
Secretary of the Army shall increase the number of qualified 
prior active-duty enlisted members in the Army National Guard 
through the use of enlistments as described in section 8020 of 
the Department of Defense Appropriations Act, 1994 (Public Law 
103-139). The Secretary shall enlist not fewer than 1,000 new 
enlisted members each year under enlistments described in that 
section.''; and
            (3) by striking out subsections (d) and (e).
    (b) Service in the Selected Reserve in Lieu of Active Duty 
Service for ROTC Graduates.--Section 1112(b) of such Act (106 
Stat. 2537) is amended by striking out ``National Guard'' 
before the period at the end and inserting in lieu thereof 
``Selected Reserve''.
    (c) Review of Officer Promotions.--Section 1113 of such Act 
(106 Stat. 2537) is amended--
            (1) in subsection (a), by striking out ``National 
        Guard'' both places it appears and inserting in lieu 
        thereof ``Selected Reserve''; and
            (2) by striking out subsection (b) and inserting in 
        lieu thereof the following:
    ``(b) Coverage of Selected Reserve Combat and Early 
Deploying Units.--(1) Subsection (a) applies to officers in all 
units of the Selected Reserve that are designated as combat 
units or that are designated for deployment within 75 days of 
mobilization.
    ``(2) Subsection (a) shall take effect with respect to 
officers of the Army Reserve, and with respect to officers of 
the Army National Guard in units not subject to subsection (a) 
as of the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 1996, at the end of the 90-
day period beginning on such date of enactment.''.
    (d) Initial Entry Training and Nondeployable Personnel.--
Section 1115 of such Act (106 Stat. 2538) is amended--
            (1) in subsections (a) and (b), by striking out 
        ``National Guard'' each place it appears and inserting 
        in lieu thereof ``Selected Reserve''; and
            (2) in subsection (c)--
                    (A) by striking out ``a member of the Army 
                National Guard enters the National Guard'' and 
                inserting in lieu thereof ``a member of the 
                Army Selected Reserve enters the Army Selected 
                Reserve''; and
                    (B) by striking out ``from the Army 
                National Guard''.
    (e) Accounting of Members Who Fail Physical Deployability 
Standards.--Section 1116 of such Act (106 Stat. 2539) is 
amended by striking out ``National Guard'' each place it 
appears and inserting in lieu thereof ``Selected Reserve''.
    (f) Use of Combat Simulators.--Section 1120 of such Act 
(106 Stat. 2539) is amended by inserting ``and the Army 
Reserve'' before the period at the end.

SEC. 515. ACTIVE DUTY ASSOCIATE UNIT RESPONSIBILITY.

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

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

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

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

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

                   Subtitle C--Decorations and Awards

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

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

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

    (a) Findings.--Congress makes the following findings:
            (1) The Ia Drang Valley (Pleiku) campaign, carried 
        out by the Armed Forces in the Ia Drang Valley of 
        Vietnam from October 23, 1965, to November 26, 1965, is 
        illustrative of the many battles during the Vietnam 
        conflict which pitted forces of the United States 
        against North Vietnamese Army regulars and Viet Cong in 
        vicious fighting.
            (2) Accounts of those battles that have been 
        published since the end of that conflict 
        authoritatively document numerous and repeated acts of 
        extraordinary heroism, sacrifice, and bravery on the 
        part of members of the Armed Forces, many of which have 
        never been officially recognized.
            (3) In some of those battles, United States 
        military units suffered substantial losses, with some 
        units sustaining casualties in excess of 50 percent.
            (4) The incidence of heavy casualties throughout 
        the Vietnam conflict inhibited the timely collection of 
        comprehensive and detailed information to support 
        recommendations for awards recognizing acts of heroism, 
        sacrifice, and bravery.
            (5) Subsequent requests to the Secretaries of the 
        military departments for review of award 
        recommendations for such acts have been denied because 
        of restrictions in law and regulations that require 
        timely filing of such recommendations and documented 
        justification.
            (6) Acts of heroism, sacrifice, and bravery 
        performed in combat by members of the Armed Forces 
        deserve appropriate and timely recognition by the 
        people of the United States.
            (7) It is appropriate to recognize acts of heroism, 
        sacrifice, or bravery that are belatedly, but properly, 
        documented by persons who witnessed those acts.
    (b) Waiver of Time Limitations for Recommendations for 
Awards.--(1) Any decoration covered by paragraph (2) may be 
awarded, without regard to any time limit imposed by law or 
regulation for a recommendation for such award to any person 
for actions by that person in the Southeast Asia theater of 
operations while serving on active duty during the Vietnam era. 
The waiver of time limitations under this paragraph applies 
only in the case of awards for acts of valor for which a 
request for consideration is submitted under subsection (c).
    (2) Paragraph (1) applies to any decoration (including any 
device in lieu of a decoration) that, during or after the 
Vietnam era and before the date of the enactment of this Act, 
was authorized by law or under regulations of the Department of 
Defense or the military department concerned to be awarded to 
members of the Armed Forces for acts of valor.
    (c) Review of Requests for Consideration of Awards.--(1) 
The Secretary of each military department shall review each 
request for consideration of award of a decoration described in 
subsection (b) that are received by the Secretary during the 
one-year period beginning on the date of enactment of this Act.
    (2) The Secretaries shall begin the review within 30 days 
after the date of the enactment of this Act and shall complete 
the review of each request for consideration not later than one 
year after the date on which the request is received.
    (3) The Secretary may use the same process for carrying out 
the review as the Secretary uses for reviewing other 
recommendations for award of decorations to members of the 
Armed Forces under the Secretary's jurisdiction for valorous 
acts.
    (d) Report.--(1) Upon completing the review of each such 
request under subsection (c), the Secretary shall submit a 
report on the review to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives.
    (2) The report shall include, with respect to each request 
for consideration received, the following information:
            (A) A summary of the request for consideration.
            (B) The findings resulting from the review.
            (C) The final action taken on the request for 
        consideration.
    (e) Definition.--For purposes of this section:
            (1) The term ``Vietnam era'' has the meaning given 
        that term in section 101 of title 38, United States 
        Code.
            (2) The term ``active duty'' has the meaning given 
        that term in section 101 of title 10, United States 
        Code.

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

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

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

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

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

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

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

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

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

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

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

                 Subtitle D--Officer Education Programs

                       PART I--SERVICE ACADEMIES

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

    (a) Military Academy.--Section 4348(a)(2)(B) of title 10, 
United States Code, is amended by striking out ``six years'' 
and inserting in lieu thereof ``five years''.
    (b) Naval Academy.--Section 6959(a)(2)(B) of such title is 
amended by striking out ``six years'' and inserting in lieu 
thereof ``five years''.
    (c) Air Force Academy.--Section 9348(a)(2)(B) of such title 
is amended by striking out ``six years'' and inserting in lieu 
thereof ``five years''.
    (d) Requirement for Review and Report.--(1) The Secretary 
of Defense shall review the effects that each of various 
periods of obligated active duty service for graduates of the 
United States Military Academy, the United States Naval 
Academy, and the United States Air Force Academy would have on 
the number and quality of the eligible and qualified applicants 
seeking appointment to such academies.
    (2) Not later than April 1, 1996, the Secretary shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives 
a report on the Secretary's findings under the review, together 
with any recommended legislation regarding the minimum periods 
of obligated active duty service for graduates of the United 
States Military Academy, the United States Naval Academy, and 
the United States Air Force Academy.
    (e) Applicability.--The amendments made by this section 
apply to persons first admitted to the United States Military 
Academy, United States Naval Academy, and United States Air 
Force Academy after December 31, 1991.

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

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

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

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

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

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

                PART II--RESERVE OFFICER TRAINING CORPS

SEC. 541. ROTC ACCESS TO CAMPUSES.

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

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

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

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

SEC. 542. ROTC SCHOLARSHIPS FOR THE NATIONAL GUARD.

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

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

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

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

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

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

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

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

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

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

        Subtitle E--Miscellaneous Reviews, Studies, and Reports

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

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

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

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

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

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

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

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

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

    (a) Report.--The Secretary of Defense shall submit to 
Congress a report on the consistency with which fingerprint 
cards and final disposition forms, as described in Criminal 
Investigations Policy Memorandum 10 issued by the Defense 
Inspector General on March 25, 1987, are reported by the 
Defense Criminal Investigative Organizations to the Federal 
Bureau of Investigation for inclusion in the Bureau's criminal 
history identification files. The report shall be prepared in 
consultation with the Director of the Federal Bureau of 
Investigation.
    (b) Matters To Be Included.--In the report, the Secretary 
shall--
            (1) survey fingerprint cards and final disposition 
        forms filled out in the past 24 months by each 
        investigative organization;
            (2) compare the fingerprint cards and final 
        disposition forms filled out to all judicial and 
        nonjudicial procedures initiated as a result of actions 
        taken by each investigative service in the past 24 
        months;
            (3) account for any discrepancies between the forms 
        filled out and the judicial and nonjudicial procedures 
        initiated;
            (4) compare the fingerprint cards and final 
        disposition forms filled out with the information held 
        by the Federal Bureau of Investigation criminal history 
        identification files;
            (5) identify any weaknesses in the collection of 
        fingerprint cards and final disposition forms and in 
        the reporting of that information to the Federal Bureau 
        of Investigation; and
            (6) determine whether or not other law enforcement 
        activities of the military services collect and report 
        such information or, if not, should collect and report 
        such information.
    (c) Submission of Report.--The report shall be submitted 
not later than one year after the date of the enactment of this 
Act.
    (d) Definition.--For the purposes of this section, the term 
``criminal history identification files'', with respect to the 
Federal Bureau of Investigation, means the criminal history 
record system maintained by the Federal Bureau of Investigation 
based on fingerprint identification and any other method of 
positive identification.

                       Subtitle F--Other Matters

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

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

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

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

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

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

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

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

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

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

SEC. 562. ARMY RANGER TRAINING.

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

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

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

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

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

SEC. 563. SEPARATION IN CASES INVOLVING EXTENDED CONFINEMENT.

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

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

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

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

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

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

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

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

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

SEC. 564. LIMITATIONS ON REDUCTIONS IN MEDICAL PERSONNEL.

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

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

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

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

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

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

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

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

    (a) Separation Benefits.--Subsection (a) of section 3 of 
the Act of August 10, 1956 (33 U.S.C. 857a), is amended by 
adding at the end the following new paragraph:
            ``(15) Section 1174a, special separation benefits 
        (except that benefits under subsection (b)(2)(B) of 
        such section are subject to the availability of 
        appropriations for such purpose and are provided at the 
        discretion of the Secretary of Commerce).''.
    (b) Technical Corrections.--Such section is further 
amended--
            (1) by striking out ``Coast and Geodetic Survey'' 
        in subsections (a) and (b) and inserting in lieu 
        thereof ``commissioned officer corps of the National 
        Oceanic and Atmospheric Administration''; and
            (2) in subsection (a), by striking out ``including 
        changes in those rules made after the effective date of 
        this Act'' in the matter preceding paragraph (1) and 
        inserting in lieu thereof ``as those provisions are in 
        effect from time to time''.
    (c) Temporary Early Retirement Authority.--Section 4403 
(other than subsection (f)) of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102-484; 106 
Stat. 2702; 10 U.S.C. 1293 note) shall apply to the 
commissioned officer corps of the National Oceanic and 
Atmospheric Administration in the same manner and to the same 
extent as that section applies to the Department of Defense. 
The Secretary of Commerce shall implement the provisions of 
that section with respect to such commissioned officer corps 
and shall apply the provisions of that section to the 
provisions of the Coast and Geodetic Survey Commissioned 
Officers' Act of 1948 relating to the retirement of members of 
such commissioned officer corps.
    (d) Effective Date.--This section shall apply only to 
members of the commissioned officer corps of the National 
Oceanic and Atmospheric Administration who are separated after 
September 30, 1995.

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

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

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

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

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

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

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

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

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

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

                ``SUBCHAPTER I--MILITARY FAMILY PROGRAMS

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

``Sec. 1781. Office of Family Policy

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

``Sec. 1782. Surveys of military families

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

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

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

``Sec. 1784. Employment opportunities for military spouses

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

``Sec. 1785. Youth sponsorship program

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

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

    ``Funds available to the Department of Defense for the 
travel and transportation of dependent students of members of 
the armed forces stationed overseas may be obligated for 
transportation allowances for travel within or between the 
contiguous States.

``Sec. 1787. Reporting of child abuse

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

                  ``SUBCHAPTER II--MILITARY CHILD CARE

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

``Sec. 1791. Funding for military child care

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

``Sec. 1792. Child care employees

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

``Sec. 1793. Parent fees

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

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

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

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

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

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

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

``Sec. 1797. Early childhood education program

    ``The Secretary of Defense shall require that all military 
child development centers meet standards of operation necessary 
for accreditation by an appropriate national early childhood 
programs accrediting body.

``Sec. 1798. Definitions

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

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

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

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

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

                     ``CHAPTER 76--MISSING PERSONS

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

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

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

``Sec. 1502. Missing persons: initial report

    ``(a) Preliminary Assessment and Recommendation by 
Commander.--After receiving information that the whereabouts 
and status of a person described in section 1501(c) of this 
title is uncertain and that the absence of the person may be 
involuntary, the commander of the unit, facility, or area to or 
in which the person is assigned shall make a preliminary 
assessment of the circumstances. If, as a result of that 
assessment, the commander concludes that the person is missing, 
the commander shall--
            ``(1) recommend that the person be placed in a 
        missing status; and
            ``(2) not later than 48 hours after receiving such 
        information, transmit a report containing that 
        recommendation to the theater component commander with 
        jurisdiction over the missing person in accordance with 
        procedures prescribed under section 1501(b) of this 
        title.
    ``(b) Transmission Through Theater Component Commander.--
Upon reviewing a report under subsection (a) recommending that 
a person be placed in a missing status, the theater component 
commander shall ensure that all necessary actions are being 
taken, and all appropriate assets are being used, to resolve 
the status of the missing person. Not later than 14 days after 
receiving the report, the theater component commander shall 
forward the report to the Secretary of Defense or the Secretary 
concerned in accordance with procedures prescribed under 
section 1501(b) of this title. The theater component commander 
shall include with such report a certification that all 
necessary actions are being taken, and all appropriate assets 
are being used, to resolve the status of the missing person.
    ``(c) Safeguarding and Forwarding of Records.--A commander 
making a preliminary assessment under subsection (a) with 
respect to a missing person shall (in accordance with 
procedures prescribed under section 1501 of this title) 
safeguard and forward for official use any information relating 
to the whereabouts and status of the missing person that 
results from the preliminary assessment or from actions taken 
to locate the person. The theater component commander through 
whom the report with respect to the missing person is 
transmitted under subsection (b) shall ensure that all 
pertinent information relating to the whereabouts and status of 
the missing person that results from the preliminary assessment 
or from actions taken to locate the person is properly 
safeguarded to avoid loss, damage, or modification.

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

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

``Sec. 1504. Subsequent board of inquiry

    ``(a) Additional Board.--If information that may result in 
a change of status of a person covered by a determination under 
section 1503(i) of this title becomes available within one year 
after the date of the transmission of a report with respect to 
the person under section 1502(a)(2) of this title, the 
Secretary concerned shall appoint a board under this section to 
conduct an inquiry into the information.
    ``(b) Date of Appointment.--The Secretary concerned shall 
appoint a board under this section to conduct an inquiry into 
the whereabouts and status of a missing person on or about one 
year after the date of the transmission of a report concerning 
the person under section 1502(a)(2) of this title.
    ``(c) Combined Inquiries.--If it appears to the Secretary 
concerned that the absence or status of two or more persons is 
factually related, the Secretary may appoint one board under 
this section to conduct the inquiry into the whereabouts and 
status of such persons.
    ``(d) Composition.--(1) A board appointed under this 
section shall be composed of at least three members as follows:
            ``(A) In the case of a board that will inquire into 
        the whereabouts and status of one or more members of 
        the armed forces (and no civilians described in 
        subparagraph (B)), the board shall be composed of 
        officers having the grade of major or lieutenant 
        commander or above.
            ``(B) In the case of a board that will inquire into 
        the whereabouts and status of one or more civilian 
        employees of the Department of Defense or contractors 
        of the Department of Defense (and no members of the 
        armed forces), the board shall be composed of--
                    ``(i) not less than three employees of the 
                Department of Defense whose rate of annual pay 
                is equal to or greater than the rate of annual 
                pay payable for grade GS-13 of the General 
                Schedule under section 5332 of title 5; and
                    ``(ii) such members of the armed forces as 
                the Secretary considers advisable.
            ``(C) In the case of a board that will inquire into 
        the whereabouts and status of both one or more members 
        of the armed forces and one or more civilians described 
        in subparagraph (B)--
                    ``(i) the board shall include at least one 
                officer described in subparagraph (A) and at 
                least one employee of the Department of Defense 
                described in subparagraph (B)(i); and
                    ``(ii) the ratio of such officers to such 
                employees on the board shall be roughly 
                proportional to the ratio of the number of 
                members of the armed forces who are subjects of 
                the board's inquiry to the number of civilians 
                who are subjects of the board's inquiry.
    ``(2) The Secretary concerned shall designate one member of 
a board appointed under this section as president of the board. 
The president of the board shall have a security clearance that 
affords the president access to all information relating to the 
whereabouts and status of each person covered by the inquiry.
    ``(3) One member of each board appointed under this 
subsection shall be an individual who--
            ``(A) has an occupational specialty similar to that 
        of one or more of the persons covered by the inquiry; 
        and
            ``(B) has an understanding of and expertise in the 
        type of official activities that one or more such 
        persons were engaged in at the time such person or 
        persons disappeared.
    ``(4) The Secretary who appoints a board under this 
subsection shall, for purposes of providing legal counsel to 
the board, assign to the board a judge advocate, or appoint to 
the board an attorney, with the same qualifications as 
specified in section 1503(c)(4) of this title.
    ``(e) Duties of Board.--A board appointed under this 
section to conduct an inquiry into the whereabouts and status 
of a person shall--
            ``(1) review the reports with respect to the person 
        transmitted under section 1502(a)(2) of this title and 
        submitted under section 1503(h) of this title;
            ``(2) collect and evaluate any document, fact, or 
        other evidence with respect to the whereabouts and 
        status of the person that has become available since 
        the determination of the status of the person under 
        section 1503 of this title;
            ``(3) draw conclusions as to the whereabouts and 
        status of the person;
            ``(4) determine on the basis of the activities 
        under paragraphs (1) and (2) whether the status of the 
        person should be continued or changed; and
            ``(5) submit to the Secretary concerned a report 
        describing the findings and conclusions of the board, 
        together with a recommendation for a determination by 
        the Secretary concerning the whereabouts and status of 
        the person.
    ``(f) Counsel for Missing Persons.--(1) When the Secretary 
concerned appoints a board to conduct an inquiry under this 
section, the Secretary shall appoint counsel to represent each 
person covered by the inquiry.
    ``(2) A person appointed as counsel under this subsection 
shall meet the qualifications and have the duties set forth in 
section 1503(f) of this title for a missing person's counsel 
appointed under that section.
    ``(3) The review of the report of a board on an inquiry 
that is submitted by such counsel shall be made an official 
part of the record of the board with respect to the inquiry.
    ``(g) Attendance of Family Members and Certain Other 
Interested Persons at Proceedings.--(1) With respect to any 
person covered by an inquiry under this section, the primary 
next of kin, other members of the immediate family, and any 
other previously designated person of the person may attend the 
proceedings of the board during the inquiry.
    ``(2) The Secretary concerned shall take reasonable actions 
to notify each individual referred to in paragraph (1) of the 
opportunity to attend the proceedings of a board. Such notice 
shall be provided not less than 60 days before the first 
meeting of the board.
    ``(3) An individual who receives notice under paragraph (2) 
shall notify the Secretary of the intent, if any, of that 
individual to attend the proceedings of the board not later 
than 21 days after the date on which the individual receives 
the notice.
    ``(4) Each individual who notifies the Secretary under 
paragraph (3) of the individual's intent to attend the 
proceedings of the board--
            ``(A) in the case of an individual who is the 
        primary next of kin or the previously designated 
        person, may attend the proceedings of the board with 
        private counsel;
            ``(B) shall have access to the personnel file of 
        the missing person, to unclassified reports, if any, of 
        the board appointed under section 1503 of this title to 
        conduct the inquiry into the whereabouts and status of 
        the person, and to any other unclassified information 
        or documents relating to the whereabouts and status of 
        the person;
            ``(C) shall be afforded the opportunity to present 
        information at the proceedings of the board that such 
        individual considers to be relevant to those 
        proceedings; and
            ``(D) subject to paragraph (5), shall be given the 
        opportunity to submit in writing an objection to any 
        recommendation of the board under subsection (i) as to 
        the status of the missing person.
    ``(5)(A) Individuals who wish to file objections under 
paragraph (4)(D) to any recommendation of the board shall--
            ``(i) submit a letter of intent to the president of 
        the board not later than 15 days after the date on 
        which the recommendations are made; and
            ``(ii) submit to the president of the board the 
        objections in writing not later than 30 days after the 
        date on which the recommendations are made.
    ``(B) The president of a board shall include any objections 
to a recommendation of the board that are submitted to the 
president of the board under subparagraph (A) in the report of 
the board containing the recommendation under subsection (i).
    ``(6) An individual referred to in paragraph (1) who 
attends the proceedings of a board under this subsection shall 
not be entitled to reimbursement by the United States for any 
costs (including travel, lodging, meals, local transportation, 
legal fees, transcription costs, witness expenses, and other 
expenses) incurred by that individual in attending such 
proceedings.
    ``(h) Availability of Information to Boards.--(1) In 
conducting proceedings in an inquiry under this section, a 
board may secure directly from any department or agency of the 
United States any information that the board considers 
necessary in order to conduct the proceedings.
    ``(2) Upon written request from the president of a board, 
the head of a department or agency of the United States shall 
release information covered by the request to the board. In 
releasing such information, the head of the department or 
agency shall--
            ``(A) declassify to an appropriate degree 
        classified information; or
            ``(B) release the information in a manner not 
        requiring the removal of markings indicating the 
        classified nature of the information.
    ``(3)(A) If a request for information under paragraph (2) 
covers classified information that cannot be declassified, or 
if the classification markings cannot be removed before release 
from the information covered by the request, or if the material 
cannot be summarized in a manner that prevents the release of 
classified information, the classified information shall be 
made available only to the president of the board making the 
request and the counsel for the missing person appointed under 
subsection (f).
    ``(B) The president of a board shall close to persons who 
do not have appropriate security clearances the proceeding of 
the board at which classified information is discussed. 
Participants at a proceeding of a board at which classified 
information is discussed shall comply with all applicable laws 
and regulations relating to the disclosure of classified 
information. The Secretary concerned shall assist the president 
of a board in ensuring that classified information is not 
compromised through board proceedings.
    ``(i) Recommendation on Status.--(1) Upon completion of an 
inquiry under this subsection, a board shall make a 
recommendation as to the current whereabouts and status of each 
missing person covered by the inquiry.
    ``(2) A board may not recommend under paragraph (1) that a 
person be declared dead unless in making the recommendation the 
board complies with section 1507 of this title.
    ``(j) Report.--A board appointed under this section shall 
submit to the Secretary concerned a report on the inquiry 
carried out by the board, together with the evidence considered 
by the board during the inquiry. The report may include a 
classified annex.
    ``(k) Actions by Secretary Concerned.--(1) Not later than 
30 days after the receipt of a report from a board under 
subsection (j), the Secretary shall review--
            ``(A) the report;
            ``(B) the review of the report submitted to the 
        Secretary under subsection (f)(3) by the counsel for 
        each person covered by the report; and
            ``(C) the objections, if any, to the report 
        submitted to the president of the board under 
        subsection (g)(5).
    ``(2) In reviewing a report under paragraph (1) (including 
the objections described in subparagraph (C) of that 
paragraph), the Secretary concerned shall determine whether or 
not the report is complete and free of administrative error. If 
the Secretary determines that the report is incomplete, or that 
the report is not free of administrative error, the Secretary 
may return the report to the board for further action on the 
report by the board.
    ``(3) Upon a determination by the Secretary that a report 
reviewed under this subsection is complete and free of 
administrative error, the Secretary shall make a determination 
concerning the status of each person covered by the report.
    ``(l) Report to Family Members and Other Interested 
Persons.--Not later than 60 days after the date on which the 
Secretary concerned makes a determination with respect to a 
missing person under subsection (k), the Secretary shall--
            ``(1) provide the report reviewed by the Secretary 
        in making the determination to the primary next of kin, 
        the other members of the immediate family, and any 
        other previously designated person of the person; and
            ``(2) in the case of a person who continues to be 
        in a missing status, inform each individual referred to 
        in paragraph (1) that the United States will conduct a 
        further investigation into the whereabouts and status 
        of the person as specified in section 1505 of this 
        title.
    ``(m) Treatment of Determination.--Any determination of the 
status of a missing person under subsection (k) shall supersede 
the determination of the status of the person under section 
1503 of this title and shall be treated as the determination of 
the status of the person by all departments and agencies of the 
United States.

``Sec. 1505. Further review

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

``Sec. 1506. Personnel files

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

``Sec. 1507. Recommendation of status of death

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

``Sec. 1508. Judicial review

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

``Sec. 1509. Preenactment, special interest cases

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

``Sec. 1510. Applicability to Coast Guard

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

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

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

``Sec. 1512. Effect on State law

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

``Sec. 1513. Definitions

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    ``(a) Authority To Provide Services and Support.--Under 
regulations prescribed by the Secretary of Defense, the 
Secretary of a military department may in accordance with this 
section authorize units or individual members of the armed 
forces under that Secretary's jurisdiction to provide support 
and services to non-Department of Defense organizations and 
activities specified in subsection (e), but only if--
            ``(1) such assistance is authorized by a provision 
        of law (other than this section); or
            ``(2) the provision of such assistance is 
        incidental to military training.
    ``(b) Scope of Covered Activities Subject to Section.--This 
section does not--
            ``(1) apply to the provision by the Secretary 
        concerned, under regulations prescribed by the 
        Secretary of Defense, of customary community relations 
        and public affairs activities conducted in accordance 
        with Department of Defense policy; or
            ``(2) prohibit the Secretary concerned from 
        encouraging members of the armed forces under the 
        Secretary's jurisdiction to provide volunteer support 
        for community relations activities under regulations 
        prescribed by the Secretary of Defense.
    ``(c) Requirement for Specific Request.--Assistance under 
subsection (a) may only be provided if--
            ``(1) the assistance is requested by a responsible 
        official of the organization to which the assistance is 
        to be provided; and
            ``(2) the assistance is not reasonably available 
        from a commercial entity or (if so available) the 
        official submitting the request for assistance 
        certifies that the commercial entity that would 
        otherwise provide such services has agreed to the 
        provision of such services by the armed forces.
    ``(d) Relationship to Military Training.--(1) Assistance 
under subsection (a) may only be provided if the following 
requirements are met:
            ``(A) The provision of such assistance--
                    ``(i) in the case of assistance by a unit, 
                will accomplish valid unit training 
                requirements; and
                    ``(ii) in the case of assistance by an 
                individual member, will involve tasks directly 
                related to the specific military occupational 
                specialty of the member.
            ``(B) The provision of such assistance will not 
        adversely affect the quality of training or otherwise 
        interfere with the ability of a member or unit of the 
        armed forces to perform the military functions of the 
        member or unit.
            ``(C) The provision of such assistance will not 
        result in a significant increase in the cost of the 
        training.
    ``(2) Subparagraph (A)(i) of paragraph (1) does not apply 
in a case in which the assistance to be provided consists 
primarily of military manpower and the total amount of such 
assistance in the case of a particular project does not exceed 
100 man-hours.
    ``(e) Eligible Entities.--The following organizations and 
activities are eligible for assistance under this section:
            ``(1) Any Federal, regional, State, or local 
        governmental entity.
            ``(2) Youth and charitable organizations specified 
        in section 508 of title 32.
            ``(3) Any other entity as may be approved by the 
        Secretary of Defense on a case-by-case basis.
    ``(f) Regulations.--The Secretary of Defense shall 
prescribe regulations governing the provision of assistance 
under this section. The regulations shall include the 
following:
            ``(1) Rules governing the types of assistance that 
        may be provided.
            ``(2) Procedures governing the delivery of 
        assistance that ensure, to the maximum extent 
        practicable, that such assistance is provided in 
        conjunction with, rather than separate from, civilian 
        efforts.
            ``(3) Procedures for appropriate coordination with 
        civilian officials to ensure that the assistance--
                    ``(A) meets a valid need; and
                    ``(B) does not duplicate other available 
                public services.
            ``(4) Procedures to ensure that Department of 
        Defense resources are not applied exclusively to the 
        program receiving the assistance.
    ``(g) Advisory Councils.--(1) The Secretary of Defense 
shall encourage the establishment of advisory councils at 
regional, State, and local levels, as appropriate, in order to 
obtain recommendations and guidance concerning assistance under 
this section from persons who are knowledgeable about regional, 
State, and local conditions and needs.
    ``(2) The advisory councils should include officials from 
relevant military organizations, representatives of appropriate 
local, State, and Federal agencies, representatives of civic 
and social service organizations, business representatives, and 
labor representatives.
    ``(3) The Federal Advisory Committee Act (5 U.S.C. App.) 
shall not apply to such councils.
    ``(h) Construction of Provision.--Nothing in this section 
shall be construed as authorizing--
            ``(1) the use of the armed forces for civilian law 
        enforcement purposes or for response to natural or 
        manmade disasters; or
            ``(2) the use of Department of Defense personnel or 
        resources for any program, project, or activity that is 
        prohibited by law.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:
``2012. Support and services for eligible organizations and activities 
          outside Department of Defense.''.

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

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

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

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

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

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

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

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

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

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

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

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

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

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

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

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

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

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

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

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

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

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

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

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

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

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

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

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

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

----------------------------------------------------------------------------------------------------------------
                                                 Years of service as an air weapons controller                  
                              ----------------------------------------------------------------------------------
         ``Pay grade             2 or                                                                           
                                 less     Over 2    Over 3    Over 4    Over 6    Over 8    Over 10             
----------------------------------------------------------------------------------------------------------------
``O-7 and above..............      $200      $200      $200      $200      $200      $200      $200             
``O-6........................       225       250       300       325       350       350       350             
``O-5........................       200       250       300       325       350       350       350             
``O-4........................       175       225       275       300       350       350       350             
``O-3........................       125       156       188       206       350       350       350             
``O-2........................       125       156       188       206       250       300       300             
``O-1........................       125       156       188       206       250       250       250             
``W-4........................       200       225       275       300       325       325       325             
``W-3........................       175       225       275       300       325       325       325             
``W-2........................       150       200       250       275       325       325       325             
``W-1........................       100       125       150       175       325       325       325             
``E-9........................       200       225       250       275       300       300       300             
``E-8........................       200       225       250       275       300       300       300             
``E-7........................       175       200       225       250       275       275       275             
``E-6........................       156       175       200       225       250       250       250             
``E-5........................       125       156       175       188       200       200       200             
``E-4 and below..............       125       156       175       188       200       200       200             
                              ----------------------------------------------------------------------------------
                                Over 12   Over 14   Over 16   Over 18   Over 20   Over 22   Over 24    Over 25  
                              ----------------------------------------------------------------------------------
``O-7 and above..............      $200      $200      $200      $200      $200      $200      $200        $110 
``O-6........................       350       350       350       350       300       250       250         225 
``O-5........................       350       350       350       350       300       250       250         225 
``O-4........................       350       350       350       350       300       250       250         225 
``O-3........................       350       350       350       300       275       250       225         200 
``O-2........................       300       300       300       275       245       210       200         180 
``O-1........................       250       250       250       245       210       200       180         150 
``W-4........................       325       325       325       325       276       250       225         200 
``W-3........................       325       325       325       325       325       250       225         200 
``W-2........................       325       325       325       325       275       250       225         200 
``W-1........................       325       325       325       325       275       250       225         200 
``E-9........................       300       300       300       300       275       230       200         200 
``E-8........................       300       300       300       300       265       230       200         200 
``E-7........................       300       300       300       300       265       230       200         200 
``E-6........................       300       300       300       300       265       230       200         200 
``E-5........................       250       250       250       250       225       200       175         150 
``E-4 and below..............       200       200       200       200       175       150       125      125''. 
----------------------------------------------------------------------------------------------------------------

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

SEC. 616. AVIATION CAREER INCENTIVE PAY.

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

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

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

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

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

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

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

            Subtitle C--Travel and Transportation Allowances

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

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

SEC. 622. DEPARTURE ALLOWANCES.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                       Subtitle E--Other Matters

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

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

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

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

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

    (a) In General.--Subsection (j) of section 5520a of title 
5, United States Code, is amended by striking out paragraph (2) 
and inserting in lieu thereof the following new paragraph:
    ``(2) Such regulations shall provide that an agency's 
administrative costs incurred in executing legal process to 
which the agency is subject under this section shall be 
deducted from the amount withheld from the pay of the employee 
concerned pursuant to the legal process.''.
    (b) Involuntary Allotments of Pay of Members of the 
Uniformed Services.--Subsection (k) of such section is 
amended--
            (1) by redesignating paragraph (3) as paragraph 
        (4); and
            (2) by inserting after paragraph (2) the following 
        new paragraph:
    ``(3) Regulations under this subsection may also provide 
that the administrative costs incurred in establishing and 
maintaining an involuntary allotment be deducted from the 
amount withheld from the pay of the member of the uniformed 
services concerned pursuant to such regulations.''.
    (c) Disposition of Amounts Withheld for Administrative 
Expenses.--Such section is further amended by adding at the end 
the following:
    ``(l) The amount of an agency's administrative costs 
deducted under regulations prescribed pursuant to subsection 
(j)(2) or (k)(3) shall be credited to the appropriation, fund, 
or account from which such administrative costs were paid.''.

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

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

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

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

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

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

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

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

                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

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

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

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

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

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

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

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

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

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

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

``Sec. 1076b. Selected Reserve dental insurance

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

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

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

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

    Section 1105 of title 10, United States Code, is amended by 
striking out subsection (h).

                      Subtitle B--TRICARE Program

SEC. 711. DEFINITION OF TRICARE PROGRAM.

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

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

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

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

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

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

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

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

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

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

    (a) Program Required.--(1) During fiscal year 1996, the 
Secretary of Defense, in consultation with the other 
administering Secretaries under chapter 55 of title 10, United 
States Code, shall implement a pilot program to provide 
residential and wraparound services to children described in 
paragraph (2) who are in need of mental health services. The 
Secretary shall implement the pilot program for an initial 
period of at least two years in a military health care region 
in which the TRICARE program has been implemented.
    (2) A child shall be eligible for selection to participate 
in the pilot program if the child is a dependent (as described 
in subparagraph (D) or (I) of section 1072(2) of title 10, 
United States Code) who--
            (A) is eligible for health care under section 1079 
        or 1086 of such title; and
            (B) has a serious emotional disturbance that is 
        generally regarded as amenable to treatment.
    (b) Wraparound Services Defined.--For purposes of this 
section, the term ``wraparound services'' means individualized 
mental health services that are provided principally to allow a 
child to remain in the family home or other least-restrictive 
and least-costly setting, but also are provided as an aftercare 
planning service for children who have received acute or 
residential care. Such term includes nontraditional mental 
health services that will assist the child to be maintained in 
the least-restrictive and least-costly setting.
    (c) Pilot Program Agreement.--Under the pilot program the 
Secretary of Defense shall enter into one or more agreements 
that require a mental health services provider under the 
agreement--
            (1) to provide wraparound services to a child 
        described in subsection (a)(2);
            (2) to continue to provide such services as needed 
        during the period of the agreement even if the child 
        moves to another location within the same TRICARE 
        program region during that period; and
            (3) to share financial risk by accepting as a 
        maximum annual payment for such services a case-rate 
        reimbursement not in excess of the amount of the annual 
        standard CHAMPUS residential treatment benefit payable 
        (as determined in accordance with section 8.1 of 
        chapter 3 of volume II of the CHAMPUS policy manual).
    (d) Report.--Not later than March 1, 1998, the Secretary of 
Defense shall submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a report on the program carried out under this 
section. The report shall contain--
            (1) an assessment of the effectiveness of the 
        program; and
            (2) the Secretary's views regarding whether the 
        program should be implemented throughout the military 
        health care system.

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

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

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

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

          Subtitle C--Uniformed Services Treatment Facilities

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

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

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

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

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

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

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

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

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

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

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

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

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

    Section 1252 of the Department of Defense Authorization 
Act, 1984 (42 U.S.C. 248d), is amended by striking out 
subsection (d).

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

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

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

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

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

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

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

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

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

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

    (a) Redesignation.--Section 1100 of title 10, United States 
Code, is amended--
            (1) in subsection (a)(1)--
                    (A) by striking out ``Military Health Care 
                Account'' and inserting in lieu thereof 
                ``Defense Health Program Account''; and
                    (B) by striking out ``the Civilian Health 
                and Medical Program of the Uniformed Services'' 
                and inserting in lieu thereof ``medical and 
                health care programs of the Department of 
                Defense''; and
            (2) in subsection (b)--
                    (A) by striking out ``entering into a 
                contract'' and inserting in lieu thereof 
                ``conducting programs and activities under this 
                chapter, including contracts entered into''; 
                and
                    (B) by inserting a comma after ``title''.
    (b) Two Year Availability of Certain Appropriations.--
Subsection (a)(2) of such section is amended to read as 
follows:
    ``(2) Of the total amount appropriated for a fiscal year 
for programs and activities carried out under this chapter, the 
amount equal to three percent of such total amount shall remain 
available for obligation until the end of the following fiscal 
year.''.
    (c) Conforming Amendments.--Such section is further 
amended--
            (1) by striking out subsections (c), (d), and (f); 
        and
            (2) by redesignating subsection (e) as subsection 
        (c).
    (d) Clerical Amendments.--(1) The heading of such section 
is amended to read as follows:

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

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

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

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

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

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

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

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

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

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

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

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

                       Subtitle E--Other Matters

SEC. 741. TRISERVICE NURSING RESEARCH.

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

``Sec. 2116. Military nursing research

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

``2116. Military nursing research.''.

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

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

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

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

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

    (a) Demonstration Program.--(1) Not later than April 1, 
1996, the Secretary of Defense shall implement a demonstration 
program to evaluate the feasibility of providing shock trauma 
training for military medical personnel through one or more 
public or nonprofit hospitals. The Secretary shall carry out 
the program pursuant to an agreement with such hospitals.
    (2) Under the agreement with a hospital, the Secretary 
shall assign military medical personnel participating in the 
demonstration program to temporary duty in shock trauma units 
operated by the hospitals that are parties to the agreement.
    (3) The agreement shall require, as consideration for the 
services provided by military medical personnel under the 
agreement, that the hospital provide appropriate care to 
members of the Armed Forces and to other persons whose care in 
the hospital would otherwise require reimbursement by the 
Secretary. The value of the services provided by the hospitals 
shall be at least equal to the value of the services provided 
by military medical personnel under the agreement.
    (b) Termination of Program.--The authority of the Secretary 
of Defense to conduct the demonstration program under this 
section, and any agreement entered into under the demonstration 
program, shall expire on March 31, 1998.
    (c) Report and Evaluation of Program.--(1) Not later than 
March 1 of each year in which the demonstration program is 
conducted under this section, the Secretary of Defense shall 
submit to Congress a report describing the scope and activities 
of the demonstration program during the preceding year.
    (2) Not later than May 1, 1998, the Comptroller General of 
the United States shall submit to Congress a report evaluating 
the effectiveness of the demonstration program in providing 
shock trauma training for military medical personnel.

SEC. 745. STUDY REGARDING DEPARTMENT OF DEFENSE EFFORTS TO DETERMINE 
                    APPROPRIATE FORCE LEVELS OF WARTIME MEDICAL 
                    PERSONNEL.

    (a) Study Required.--The Comptroller General of the United 
States shall conduct a study to evaluate the reasonableness of 
the models used by each military department for determining the 
appropriate wartime force level for medical personnel in the 
department. The study shall include the following:
            (1) An assessment of the modeling techniques used 
        by each department.
            (2) An analysis of the data used in the models to 
        identify medical personnel requirements.
            (3) An identification of the ability of the models 
        to integrate personnel of reserve components to meet 
        department requirements.
            (4) An evaluation of the ability of the Secretary 
        of Defense to integrate the various modeling efforts 
        into a comprehensive, coordinated plan for obtaining 
        the optimum force level for wartime medical personnel.
    (b) Report of Study.--Not later than June 30, 1996, the 
Comptroller General shall report to Congress on the results of 
the study conducted under subsection (a).

SEC. 746. REPORT ON IMPROVED ACCESS TO MILITARY HEALTH CARE FOR COVERED 
                    BENEFICIARIES ENTITLED TO MEDICARE.

    Not later than March 1, 1996, the Secretary of Defense 
shall submit to Congress a report evaluating the feasibility, 
costs, and consequences for the military health care system of 
improving access to the system for covered beneficiaries under 
chapter 55 of title 10, United States Code, who have 
limitedaccess to military medical treatment facilities and are 
ineligible for the Civilian Health and Medical Program of the Uniformed 
Services under section 1086(d)(1) of such title. The alternatives that 
the Secretary shall consider to improve access for such covered 
beneficiaries shall include--
            (1) whether CHAMPUS should serve as a second payer 
        for covered beneficiaries who are entitled to hospital 
        insurance benefits under part A of title XVIII of the 
        Social Security Act (42 U.S.C. 1395c et seq.); and
            (2) whether such covered beneficiaries should be 
        offered enrollment in the Federal Employees Health 
        Benefits program under chapter 89 of title 5, United 
        States Code.

SEC. 747. REPORT ON EFFECT OF CLOSURE OF FITZSIMONS ARMY MEDICAL 
                    CENTER, COLORADO, ON PROVISION OF CARE TO MILITARY 
                    PERSONNEL, RETIRED MILITARY PERSONNEL, AND THEIR 
                    DEPENDENTS.

    (a) Effect of Closure on Members Experiencing Health 
Difficulties Associated With Persian Gulf Syndrome.--Not later 
than 90 days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to Congress a report that--
            (1) assesses the effects of the closure of 
        Fitzsimons Army Medical Center, Colorado, on the 
        capability of the Department of Defense to provide 
        appropriate and adequate health care to members and 
        former members of the Armed Forces who suffer from 
        undiagnosed illnesses (or combination of illnesses) as 
        a result of service in the Armed Forces in the 
        Southwest Asia theater of operations during the Persian 
        Gulf conflict; and
            (2) describes the plans of the Secretary of Defense 
        and the Secretary of the Army to ensure that adequate 
        and appropriate health care is provided to such members 
        for such illnesses (or combination of illnesses).
    (b) Effect of Closure on Other Covered Beneficiaries.--The 
report required by subsection (a) shall also include--
            (1) an assessment of the effects of the closure of 
        Fitzsimons Army Medical Center on the capability of the 
        Department of Defense to provide appropriate and 
        adequate health care to the dependents of members and 
        former members of the Armed Forces and retired members 
        and their dependents who currently obtain care at the 
        medical center; and
            (2) a description of the plans of the Secretary of 
        Defense and the Secretary of the Army to ensure that 
        adequate and appropriate health care is provided to 
        such persons, as called for in the recommendations of 
        the Secretary of Defense for the closure of Fitzsimons 
        Army Medical Center.

SEC. 748. SENSE OF CONGRESS ON CONTINUITY OF HEALTH CARE SERVICES FOR 
                    COVERED BENEFICIARIES ADVERSELY AFFECTED BY 
                    CLOSURES OF MILITARY MEDICAL TREATMENT FACILITIES.

    (a) Findings.--Congress finds the following:
            (1) Military installations selected for closure in 
        the 1991 and 1993 rounds of the base closure process 
        will soon close.
            (2) Additional military installations have been 
        selected for closure in the 1995 round of the base 
        closure process.
            (3) Some of the military installations selected for 
        closure include military medical treatment facilities.
            (4) As a result of these base closures, tens of 
        thousands of covered beneficiaries under chapter 55 of 
        title 10, United States Code, who reside in the 
        vicinity of such installations will be left without 
        immediate access to military medical treatment 
        facilities.
    (b) Sense of Congress.--In light of the findings specified 
in subsection (a), it is the sense of Congress that the 
Secretary of Defense should take all appropriate steps 
necessary to ensure the continuation of medical and 
pharmaceutical benefits for covered beneficiaries adversely 
affected by the closure of military installations.

SEC. 749. STATE RECOGNITION OF MILITARY ADVANCE MEDICAL DIRECTIVES.

    (a) Requirement for Recognition by States.--(1) Chapter 53 
of title 10, United States Code, is amended by inserting after 
section 1044b the following new section:

``Sec. 1044c. Advance medical directives of members and dependents: 
                    requirement for recognition by States

    ``(a) Instruments To Be Given Legal Effect Without Regard 
to State Law.--An advance medical directive executed by a 
person eligible for legal assistance--
            ``(1) is exempt from any requirement of form, 
        substance, formality, or recording that is provided for 
        advance medical directives under the laws of a State; 
        and
            ``(2) shall be given the same legal effect as an 
        advance medical directive prepared and executed in 
        accordance with the laws of the State concerned.
    ``(b) Advance Medical Directives.--For purposes of this 
section, an advance medical directive is any written 
declaration that--
            ``(1) sets forth directions regarding the 
        provision, withdrawal, or withholding of life-
        prolonging procedures, including hydration and 
        sustenance, for the declarant whenever the declarant 
        has a terminal physical condition or is in a persistent 
        vegetative state; or
            ``(2) authorizes another person to make health care 
        decisions for the declarant, under circumstances stated 
        in the declaration, whenever the declarant is incapable 
        of making informed health care decisions.
    ``(c) Statement To Be Included.--(1) Under regulations 
prescribed by the Secretary concerned, an advance medical 
directive prepared by an attorney authorized to provide legal 
assistance shall contain a statement that sets forth the 
provisions of subsection (a).
    ``(2) Paragraph (1) shall not be construed to make 
inapplicable the provisions of subsection (a) to an advance 
medical directive that does not include a statement described 
in that paragraph.
    ``(d) States Not Recognizing Advance Medical Directives.--
Subsection (a) does not make an advance medical directive 
enforceable in a State that does not otherwise recognize and 
enforce advance medical directives under the laws of the State.
    ``(e) Definitions.--In this section:
            ``(1) The term `State' includes the District of 
        Columbia, the Commonwealth of Puerto Rico, and a 
        possession of the United States.
            ``(2) The term `person eligible for legal 
        assistance' means a person who is eligible for legal 
        assistance under section 1044 of this title.
            ``(3) The term `legal assistance' means legal 
        services authorized under section 1044 of this 
        title.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 
1044b the following:

``1044c. Advance medical directives of members and dependents: 
          requirement for recognition by States.''.

    (b) Effective Date.--Section 1044c of title 10, United 
States Code, shall take effect on the date of the enactment of 
this Act and shall apply to advance medical directives referred 
to in that section that are executed before, on, or after that 
date.

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

                     Subtitle A--Acquisition Reform

SEC. 801. INAPPLICABILITY OF LIMITATION ON EXPENDITURE OF 
                    APPROPRIATIONS TO CONTRACTS AT OR BELOW SIMPLIFIED 
                    ACQUISITION THRESHOLD.

    Section 2207 of title 10, United States Code, is amended--
            (1) by inserting ``(a)'' before ``Money 
        appropriated''; and
            (2) by adding at the end the following new 
        subsection:
    ``(b) This section does not apply to a contract that is for 
an amount not greater than the simplified acquisition threshold 
(as defined in section 4(11) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(11))).''.

SEC. 802. AUTHORITY TO DELEGATE CONTRACTING AUTHORITY.

    (a) Repeal of Duplicative Authority and Restriction.--
Section 2356 of title 10, United States Code, is repealed.
    (b) Clerical Amendment.--The table of sections at the 
beginning of chapter 139 of title 10, United States Code, is 
amended by striking out the item relating to section 2356.

SEC. 803. CONTROL IN PROCUREMENTS OF CRITICAL AIRCRAFT AND SHIP SPARE 
                    PARTS.

    (a) Repeal.--Section 2383 of title 10, United States Code, 
is repealed.
    (b) Clerical Amendment.--The table of sections at the 
beginning of chapter 141 of such title is amended by striking 
out the item relating to section 2383.

SEC. 804. FEES FOR CERTAIN TESTING SERVICES.

    Section 2539b(c) of title 10, United States Code, is 
amended by inserting ``and indirect'' after ``recoup the 
direct'' in the second sentence.

SEC. 805. COORDINATION AND COMMUNICATION OF DEFENSE RESEARCH 
                    ACTIVITIES.

    Section 2364 of title 10, United States Code, is amended--
            (1) in subsection (b)(5), by striking out 
        ``milestone O, milestone I, and milestone II'' and 
        inserting in lieu thereof ``acquisition program''; and
            (2) in subsection (c), by striking out paragraphs 
        (2), (3), and (4) and inserting in lieu thereof the 
        following:
            ``(2) The term `acquisition program decision' has 
        the meaning prescribed by the Secretary of Defense in 
        regulations.''.

SEC. 806. ADDITION OF CERTAIN ITEMS TO DOMESTIC SOURCE LIMITATION.

    (a) Limitation.--(1) Paragraph (3) of section 2534(a) of 
title 10, United States Code, is amended to read as follows:
            ``(3) Components for naval vessels.--(A) The 
        following components:
                    ``(i) Air circuit breakers.
                    ``(ii) Welded shipboard anchor and mooring 
                chain with a diameter of four inches or less.
                    ``(iii) Vessel propellers with a diameter 
                of six feet or more.
            ``(B) The following components of vessels, to the 
        extent they are unique to marine applications: 
        gyrocompasses, electronic navigation chart systems, 
        steering controls, pumps, propulsion and machinery 
        control systems, and totally enclosed lifeboats.''.
    (2) Subsection (b) of section 2534 of such title is amended 
by adding at the end the following:
            ``(3) Manufacturer of vessel propellers.--In the 
        case of a procurement of vessel propellers referred to 
        in subsection (a)(3)(A)(ii), the manufacturer of the 
        propellers meets the requirements of this subsection 
        only if--
                    ``(A) the manufacturer meets the 
                requirements set forth in paragraph (1); and
                    ``(B) all castings incorporated into such 
                propellers are poured and finished in the 
                United States.''.
    (3) Paragraph (1) of section 2534(c) of such title is 
amended to read as follows:
            ``(1) Components for naval vessels.--Subsection (a) 
        does not apply to a procurement of spare or repair 
        parts needed to support components for naval vessels 
        produced or manufactured outside the United States.''.
    (4) Section 2534 of such title is amended by adding at the 
end the following new subsection:
    ``(h) Implementation of Naval Vessel Component 
Limitation.--In implementing subsection (a)(3)(B), the 
Secretary of Defense--
            ``(1) may not use contract clauses or 
        certifications; and
            ``(2) shall use management and oversight techniques 
        that achieve the objective of the subsection without 
        imposing a significant management burden on the 
        Government or the contractor involved.''.
    (5) Subsection (a)(3)(B) of section 2534 of title 10, 
United States Code, as amended by paragraph (1), shall apply 
only to contracts entered into after March 31, 1996.
    (b) Extension of Limitation Relating to Ball Bearings and 
Roller Bearings.--Section 2534(c)(3) of such title is amended 
by striking out ``October 1, 1995'' and inserting in lieu 
thereof ``October 1, 2000''.
    (c) Termination of Vessel Propeller Limitation.--Section 
2534(c) of such title is amended by adding at the end the 
following new paragraph:
            ``(4) Vessel propellers.--Subsection (a)(3)(A)(iii) 
        and this paragraph shall cease to be effective on the 
        date occurring two years after the date of the 
        enactment of the National Defense Authorization Act for 
        Fiscal Year 1996.''.
    (d) Inapplicability of Simplified Acquisition Limitation to 
Contracts for Ball Bearings and Roller Bearings.--Section 
2534(g) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' before ``This section''; 
        and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) Paragraph (1) does not apply to contracts for items 
described in subsection (a)(5) (relating to ball bearings and 
roller bearings), notwithstanding section 33 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 429).''.

SEC. 807. ENCOURAGEMENT OF USE OF LEASING AUTHORITY.

    (a) In General.--(1) Section 2401a of title 10, United 
States Code, is amended--
            (A) by inserting before ``The Secretary of 
        Defense'' the following subsection heading: ``(b) 
        Limitation on Contracts With Terms of 18 Months or 
        More.--'';
            (B) by inserting after the section heading the 
        following:
    ``(a) Leasing of Commercial Vehicles and Equipment.--The 
Secretary of Defense may use leasing in the acquisition of 
commercial vehicles and equipment whenever the Secretary 
determines that leasing of such vehicles is practicable and 
efficient.''; and
            (C) by amending the section heading to read as 
        follows:

``Sec. 2401a. Lease of vehicles, equipment, vessels, and aircraft''.

    (2) The item relating to section 2401a in the table of 
sections at the beginning of chapter 141 of such title is 
amended to read as follows:

``2401a. Lease of vehicles, equipment, vessels, and aircraft.''.

    (b) Report.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
the Committee on Armed Services of the Senate and the Committee 
on National Security of the House of Representatives a report 
setting forth changes in legislation that would be required to 
facilitate the use of leasing in the acquisition of equipment 
by the Department of Defense.
    (c) Pilot Program.--(1) The Secretary of the Army may 
conduct a pilot program for leasing commercial utility cargo 
vehicles in accordance with this subsection.
    (2) Under the pilot program--
            (A) the Secretary may trade existing commercial 
        utility cargo vehicles of the Army for credit against 
        the costs of leasing new replacement commercial utility 
        cargo vehicles for the Army;
            (B) the quantities and trade-in value of commercial 
        utility cargo vehicles to be traded in shall be subject 
        to negotiation between the Secretary and the lessors of 
        the new replacement commercial utility cargo vehicles;
            (C) the lease agreement for a new commercial 
        utility cargo vehicle may be executed with or without 
        an option to purchase at the end of the lease period;
            (D) the lease period for a new commercial utility 
        cargo vehicle may not exceed the warranty period for 
        the vehicle; and
            (E) up to 40 percent of the validated requirement 
        for commercial utility cargo vehicles may be satisfied 
        by leasing such vehicles, except that one or more 
        options for satisfying the remainder of the validated 
        requirement may be provided for and exercised (subject 
        to the requirements of paragraph (6)).
    (3) In awarding contracts under the pilot program, the 
Secretary shall comply with section 2304 of title 10, United 
States Code.
    (4) The pilot program may not be commenced until--
            (A) the Secretary submits to the Committee on Armed 
        Services of the Senate and the Committee on National 
        Security of the House of Representatives a report that 
        contains the plans of the Secretary for implementing 
        the program and that sets forth in detail the savings 
        in operating and support costs expected to be derived 
        from retiring older commercial utility cargo vehicles, 
        as compared to the expected costs of leasing newer 
        commercial utility cargo vehicles; and
            (B) a period of 30 calendar days has elapsed after 
        submission of such report.
    (5) Not later than one year after the date on which the 
first lease under the pilot program is entered into, the 
Secretary of the Army shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a report on the status of the 
pilot program. Such report shall be based on at least six 
months of experience in operating the pilot program.
    (6) The Secretary may exercise an option provided for under 
paragraph (2) only after a period of 60 days has elapsed after 
the submission of the report.
    (7) No lease of commercial utility cargo vehicles may be 
entered into under the pilot program after September 30, 2000.

SEC. 808. COST REIMBURSEMENT RULES FOR INDIRECT COSTS ATTRIBUTABLE TO 
                    PRIVATE SECTOR WORK OF DEFENSE CONTRACTORS.

    (a) Defense Capability Preservation Agreement.--The 
Secretary of Defense may enter into an agreement, to be known 
as a ``defense capability preservation agreement'', with a 
defense contractor under which the cost reimbursement rules 
described in subsection (b) shall be applied. Such an agreement 
may be entered into in any case in which the Secretary 
determines that the application of such cost reimbursement 
rules would facilitate the achievement of the policy objectives 
set forth in section 2501(b) of title 10, United States Code.
    (b) Cost Reimbursement Rules.--(1) The cost reimbursement 
rules applicable under an agreement entered into under 
subsection (a) are as follows:
            (A) The Department of Defense shall, in determining 
        the reimbursement due a contractor for its indirect 
        costs of performing a defense contract, allow the 
        contractor to allocate indirect costs to its private 
        sector work only to the extent of the contractor's 
        allocable indirect private sector costs, subject to 
        subparagraph (C).
            (B) For purposes of subparagraph (A), the allocable 
        indirect private sector costs of a contractor are those 
        costs of the contractor that are equal to the sum of--
                    (i) the incremental indirect costs 
                attributable to such work; and
                    (ii) the amount by which the revenue 
                attributable to such private sector work 
                exceeds the sum of--
                            (I) the direct costs attributable 
                        to such private sector work; and
                            (II) the incremental indirect costs 
                        attributable to such private sector 
                        work.
            (C) The total amount of allocable indirect private 
        sector costs for a contract in any year of the 
        agreement may not exceed the amount of indirect costs 
        that a contractor would have allocated to its private 
        sector work during that year in accordance with the 
        contractor's established accounting practices.
    (2) The cost reimbursement rules set forth in paragraph (1) 
may be modified by the Secretary of Defense if the Secretary of 
Defense determines that modifications are appropriate to the 
particular situation to facilitate achievement of the policy 
set forth in section 2501(b) of title 10, United States Code.
    (c) Implementation.--Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
establish application procedures and procedures for expeditious 
consideration of defense capability preservation agreements as 
authorized by this section.
    (d) Contracts Covered.--An agreement entered into with a 
contractor under subsection (a) shall apply to each Department 
of Defense contract with the contractor in effect on the date 
on which the agreement is entered into and each Department of 
Defense contract that is awarded to the contractor during the 
term of the agreement.
    (e) Reports.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
the congressional defense committees a report setting forth--
            (1) the number of applications received and the 
        number of applications approved for defense capability 
        preservation agreements; and
            (2) any changes to the authority in this section 
        that the Secretary recommends to further facilitate the 
        policy set forth in section 2501(b) of title 10, United 
        States Code.

SEC. 809. SUBCONTRACTS FOR OCEAN TRANSPORTATION SERVICES.

    Notwithstanding any other provision of law, neither section 
901(b) of the Merchant Marine Act, 1936 (46 U.S.C. 1241(b)) nor 
section 2631 of title 10, United States Code, shall be included 
before May 1, 1996, on any list promulgated under section 34(b) 
of the Office of Federal Procurement Policy Act (41 U.S.C. 
430(b)).

SEC. 810. PROMPT RESOLUTION OF AUDIT RECOMMENDATIONS.

    Section 6009 of the Federal Acquisition Streamlining Act of 
1994 (Public Law 103-355; 108 Stat. 3367) is amended to read as 
follows:

``SEC. 6009. PROMPT MANAGEMENT DECISIONS AND IMPLEMENTATION OF AUDIT 
                    RECOMMENDATIONS.

    ``(a) Management Decisions.--(1) The head of a Federal 
agency shall make management decisions on all findings and 
recommendations set forth in an audit report of the inspector 
general of the agency within a maximum of six months after the 
issuance of the report.
    ``(2) The head of a Federal agency shall make management 
decisions on all findings and recommendations set forth in an 
audit report of any auditor from outside the Federal Government 
within a maximum of six months after the date on which the head 
of the agency receives the report.
    ``(b) Completion of Final Action.--The head of a Federal 
agency shall complete final action on each management decision 
required with regard to a recommendation in an inspector 
general's report under subsection (a)(1) within 12 months after 
the date of the inspector general's report. If the head of the 
agency fails to complete final action with regard to a 
management decision within the 12-month period, the inspector 
general concerned shall identify the matter in each of the 
inspector general's semiannual reports pursuant to section 
5(a)(3) of the Inspector General Act of 1978 (5 U.S.C. App.) 
until final action on the management decision is completed.''.

SEC. 811. TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE SUBCONTRACTING 
                    PLANS.

    (a) Revision of Authority.--Subsection (a) of section 834 
of National Defense Authorization Act for Fiscal Years 1990 and 
1991 (15 U.S.C. 637 note) is amended by striking out paragraph 
(1) and inserting in lieu thereof the following:
    ``(1) The Secretary of Defense shall establish a test 
program under which contracting activities in the military 
departments and the Defense Agencies are authorized to 
undertake one or more demonstration projects to determine 
whether the negotiation and administration of comprehensive 
subcontracting plans will reduce administrative burdens on 
contractors while enhancing opportunities provided under 
Department of Defense contracts for small business concerns and 
small business concerns owned and controlled by socially and 
economically disadvantaged individuals. In selecting the 
contracting activities to undertake demonstration projects, the 
Secretary shall take such action as is necessary to ensure that 
a broad range of the supplies and services acquired by the 
Department of Defense are included in the test program.''.
    (b) Covered Contractors.--Subsection (b) of such section is 
amended by striking out paragraph (3) and inserting in lieu 
thereof the following:
    ``(3) A Department of Defense contractor referred to in 
paragraph (1) is, with respect to a comprehensive 
subcontracting plan negotiated in any fiscal year, a business 
concern that,during the immediately preceding fiscal year, 
furnished the Department of Defense with supplies or services 
(including professional services, research and development services, 
and construction services) pursuant to at least three Department of 
Defense contracts having an aggregate value of at least $5,000,000.''.
    (c) Technical Amendments.--Such section is amended--
            (1) by striking out subsection (g); and
            (2) by redesignating subsection (h) as subsection 
        (g).

SEC. 812. PROCUREMENT OF ITEMS FOR EXPERIMENTAL OR TEST PURPOSES.

    Section 2373(b) of title 10, United States Code, is amended 
by inserting ``only'' after ``applies'' in the second sentence.

SEC. 813. USE OF FUNDS FOR ACQUISITION OF DESIGNS, PROCESSES, TECHNICAL 
                    DATA, AND COMPUTER SOFTWARE.

    Section 2386(3) of title 10, United States Code, is amended 
to read as follows:
            ``(3) Design and process data, technical data, and 
        computer software.''.

SEC. 814. INDEPENDENT COST ESTIMATES FOR MAJOR DEFENSE ACQUISITION 
                    PROGRAMS.

    Section 2434(b)(1)(A) of title 10, United States Code, is 
amended to read as follows:
                    ``(A) be prepared--
                            ``(i) by an office or other entity 
                        that is not under the supervision, 
                        direction, or control of the military 
                        department, Defense Agency, or other 
                        component of the Department of Defense 
                        that is directly responsible for 
                        carrying out the development or 
                        acquisition of the program; or
                            ``(ii) if the decision authority 
                        for the program has been delegated to 
                        an official of a military department, 
                        Defense Agency, or other component of 
                        the Department of Defense, by an office 
                        or other entity that is not directly 
                        responsible for carrying out the 
                        development or acquisition of the 
                        program; and''.

SEC. 815. CONSTRUCTION, REPAIR, ALTERATION, FURNISHING, AND EQUIPPING 
                    OF NAVAL VESSELS.

    (a) Applicability of Certain Law.--Chapter 633 of title 10, 
United States Code, is amended by inserting after section 7297 
the following:

``Sec. 7299. Contracts: applicability of Walsh-Healey Act

    ``Each contract for the construction, alteration, 
furnishing, or equipping of a naval vessel is subject to the 
Walsh-Healey Act (41 U.S.C. 35 et seq.) unless the President 
determines that this requirement is not in the interest of 
national defense.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 7297 the following:

``7299. Contracts: applicability of Walsh-Healey Act.''.

                       Subtitle B--Other Matters

SEC. 821. PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS.

    (a) Funding.--Of the amount authorized to be appropriated 
under section 301(5), $12,000,000 shall be available for 
carrying out the provisions of chapter 142 of title 10, United 
States Code.
    (b) Specific Programs.--Of the amounts made available 
pursuant to subsection (a), $600,000 shall be available for 
fiscal year 1996 for the purpose of carrying out programs 
sponsored by eligible entities referred to in subparagraph (D) 
of section 2411(1) of title 10, United States Code, that 
provide procurement technical assistance in distressed areas 
referred to in subparagraph (B) of section 2411(2) of such 
title. If there is an insufficient number of satisfactory 
proposals for cooperative agreements in such distressed areas 
to allow effective use of the funds made available in 
accordance with this subsection in such areas, the funds shall 
be allocated among the Defense Contract Administration Services 
regions in accordance with section 2415 of such title.

SEC. 822. DEFENSE FACILITY-WIDE PILOT PROGRAM.

    (a) Authority To Conduct Defense Facility-Wide Pilot 
Program.--The Secretary of Defense may conduct a pilot program, 
to be known as the ``defense facility-wide pilot program'', for 
the purpose of determining the potential for increasing the 
efficiency and effectiveness of the acquisition process in 
facilities by using commercial practices on a facility-wide 
basis.
    (b) Designation of Participating Facilities.--(1) Subject 
to paragraph (2), the Secretary may designate up to two 
facilities as participants in the defense facility-wide pilot 
program.
    (2) The Secretary may designate for participation in the 
pilot program only those facilities that are authorized to be 
so designated in a law authorizing appropriations for national 
defense programs that is enacted after the date of the 
enactment of this Act.
    (c) Scope of Program.--At a facility designated as a 
participant in the pilot program, the pilot program shall 
consist of the following:
            (1) All contracts and subcontracts for defense 
        supplies and services that are performed at the 
        facility.
            (2) All Department of Defense contracts and all 
        subcontracts under Department of Defense contracts 
        performed elsewhere that the Secretary determines are 
        directly and substantially related to the production of 
        defense supplies and services at the facility and are 
        necessary for the pilot program.
    (d) Criteria for Designation of Participating Facilities.--
The Secretary shall establish criteria for selecting a facility 
for designation as a participant in the pilot program. In 
developing such criteria, the Secretary shall consider the 
following:
            (1) The number of existing and anticipated 
        contracts and subcontracts performed at the facility--
                    (A) for which contractors are required to 
                provide certified cost or pricing data pursuant 
                to section 2306a of title 10, United States 
                Code; and
                    (B) which are administered with the 
                application of cost accounting standards under 
                section 26(f) of the Office of Federal 
                Procurement Policy Act (41 U.S.C. 422(f)).
            (2) The relationship of the facility to other 
        organizations and facilities performing under contracts 
        with the Department of Defense and subcontracts under 
        such contracts.
            (3) The impact that the participation of the 
        facility under the pilot program would have on 
        competing domestic manufacturers.
            (4) Such other factors as the Secretary considers 
        appropriate.
    (e) Notification.--(1) The Secretary shall transmit to the 
Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives a written 
notification of each facility proposed to be designated by the 
Secretary for participation in the pilot program.
    (2) The Secretary shall include in the notification 
regarding a facility designated for participation in the 
program a management plan addressing the following:
            (A) The proposed treatment of research and 
        development contracts or subcontracts to be performed 
        at the facility during the pilot program.
            (B) The proposed treatment of the cost impact of 
        the use of commercial practices on the award and 
        administration of contracts and subcontracts performed 
        at the facility.
            (C) The proposed method for reimbursing the 
        contractor for existing and new contracts.
            (D) The proposed method for measuring the 
        performance of the facility for meeting the management 
        goals of the Secretary.
            (E) Estimates of the annual amount and the total 
        amount of the contracts and subcontracts covered under 
        the pilot program.
    (3)(A) The Secretary shall ensure that the management plan 
for a facility provides for attainment of the following 
objectives:
            (i) A significant reduction of the cost to the 
        Government for programs carried out at the facility.
            (ii) A reduction of the schedule associated with 
        programs carried out at the facility.
            (iii) An increased use of commercial practices and 
        procedures for programs carried out at the facility.
            (iv) Protection of a domestic manufacturer 
        competing for contracts at such facility from being 
        placed at a significant competitive disadvantage by the 
        participation of the facility in the pilot program.
    (B) The management plan for a facility shall also require 
that all or substantially all of the contracts to be awarded 
and performed at the facility after the designation of that 
facility under subsection (b), and all or substantially all of 
the subcontracts to be awarded under those contracts and 
performed at the facility after the designation, be--
            (i) for the production of supplies or services on a 
        firm-fixed price basis;
            (ii) awarded without requiring the contractors or 
        subcontractors to provide certified cost or pricing 
        data pursuant to section 2306a of title 10, United 
        States Code; and
            (iii) awarded and administered without the 
        application of cost accounting standards under section 
        26(f) of the Office of Federal Procurement Policy Act 
        (41 U.S.C. 422(f)).
    (f) Exemption From Certain Requirements.--In the case of a 
contract or subcontract that is to be performed at a facility 
designated for participation in the defense facility-wide pilot 
program and that is subject to section 2306a of title 10, 
United States Code, or section 26(f) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 422(f)), the Secretary of 
Defense may exempt such contract or subcontract from the 
requirement to obtain certified cost or pricing data under such 
section 2306a or the requirement to apply mandatory cost 
accounting standards under such section 26(f) if the Secretary 
determines that the contract or subcontract--
            (1) is within the scope of the pilot program (as 
        described in subsection (c)); and
            (2) is fairly and reasonably priced based on 
        information other than certified cost and pricing data.
    (g) Special Authority.--The authority provided under 
subsection (a) includes authority for the Secretary of 
Defense--
            (1) to apply any amendment or repeal of a provision 
        of law made in this Act to the pilot program before the 
        effective date of such amendment or repeal; and
            (2) to apply to a procurement of items other than 
        commercial items under such program--
                    (A) the authority provided in section 34 of 
                the Office of Federal Procurement Policy Act 
                (41 U.S.C. 430) to waive a provision of law in 
                the case of commercial items, and
                    (B) any exception applicable under this Act 
                or the Federal Acquisition Streamlining Act of 
                1994 (Public Law 103-355) (or an amendment made 
                by a provision of either Act) in the case of 
                commercial items,
        before the effective date of such provision (or 
        amendment) to the extent that the Secretary determines 
        necessary to test the application of such waiver or 
        exception to procurements of items other than 
        commercial items.
    (h) Applicability.--(1) Subsections (f) and (g) apply to 
the following contracts, if such contracts are within the scope 
of the pilot program at a facility designated for the pilot 
program under subsection (b):
            (A) A contract that is awarded or modified during 
        the period described in paragraph (2).
            (B) A contract that is awarded before the beginning 
        of such period, that is to be performed (or may be 
        performed), in whole or in part, during such period, 
        and that may be modified as appropriate at no cost to 
        the Government.
    (2) The period referred to in paragraph (1), with respect 
to a facility designated under subsection (b), is the period 
that--
            (A) begins 45 days after the date of the enactment 
        of the Act authorizing the designation of that facility 
        in accordance with paragraph (2) of such subsection; 
        and
            (B) ends on September 30, 2000.
    (i) Commercial Practices Encouraged.--With respect to 
contracts and subcontracts within the scope of the defense 
facility-wide pilot program, the Secretary of Defense may, to 
the extent the Secretary determines appropriate and in 
accordance with applicable law, adopt commercial practices in 
the administration of contracts and subcontracts. Such 
commercial practices may include the following:
            (1) Substitution of commercial oversight and 
        inspection procedures for Government audit and access 
        to records.
            (2) Incorporation of commercial oversight, 
        inspection, and acceptance procedures.
            (3) Use of alternative dispute resolution 
        techniques (including arbitration).
            (4) Elimination of contract provisions authorizing 
        the Government to make unilateral changes to contracts.

SEC. 823. TREATMENT OF DEPARTMENT OF DEFENSE CABLE TELEVISION FRANCHISE 
                    AGREEMENTS.

    Not later than 180 days after the date of the enactment of 
this Act, the chief judge of the United States Court of Federal 
Claims shall transmit to Congress a report containing an 
advisory opinion on the following two questions:
            (1) Is it within the power of the executive branch 
        to treat cable television franchise agreements for the 
        construction, installation, or capital improvement of 
        cable television systems at military installations of 
        the Department of Defense as contracts under part 49 of 
        the Federal Acquisition Regulation without violating 
        title VI of the Communications Act of 1934 (47 U.S.C. 
        521 et seq.)?
            (2) If the answer to the question in paragraph (1) 
        is in the affirmative, is the executive branch required 
        by law to so treat such franchise agreements?

SEC. 824. EXTENSION OF PILOT MENTOR-PROTEGE PROGRAM.

    Section 831(j)(1) of the National Defense Authorization Act 
for Fiscal Year 1991 (10 U.S.C. 2301 note) is amended by 
striking out ``1995'' and inserting in lieu thereof ``1996''.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                      Subtitle A--General Matters

SEC. 901. ORGANIZATION OF THE OFFICE OF THE SECRETARY OF DEFENSE.

    (a) Findings.--Congress makes the following findings:
            (1) The statutory provisions that as of the date of 
        the enactment of this Act govern the organization of 
        the Office of the Secretary of Defense have evolved 
        from enactment of a number of executive branch 
        legislative proposals and congressional initiatives 
        over a period of years.
            (2) The May 1995 report of the congressionally 
        mandated Commission on Roles and Missions of the Armed 
        Forces included a number of recommendations relating to 
        the Office of the Secretary of Defense.
            (3) The Secretary of Defense has decided to create 
        a special Department task force and to conduct other 
        reviews to review many of the Commission's 
        recommendations.
            (4) The Secretary of Defense has decided to 
        institute a 5 percent per year reduction of civilian 
        personnel assigned to the Office of the Secretary of 
        Defense, including the Washington Headquarters Service 
        and the Defense Support Activities, for the period from 
        fiscal year 1996 through fiscal year 2001.
            (5) Over the ten-year period from 1986 through 
        1995, defense spending in real dollars has been reduced 
        by 34 percent and military end-strengths have been 
        reduced by 28 percent. During the same period, the 
        number of civilian employees of the Office of the 
        Secretary of Defense has increased by 22 percent.
            (6) To achieve greater efficiency and to revalidate 
        the role and mission of the Office of the Secretary of 
        Defense, a comprehensive review of the organizations 
        and functions of that Office and of the personnel 
        needed to carry out those functions is required.
    (b) Review.--The Secretary of Defense shall conduct a 
further review of the organizations and functions of the Office 
of the Secretary of Defense, including the Washington 
Headquarters Service and the Defense Support Activities, and 
the personnel needed to carry out those functions. The review 
shall include the following:
            (1) An assessment of the appropriate functions of 
        the Office and whether the Office of the Secretary of 
        Defense or some of its component parts should be 
        organized along mission lines.
            (2) An assessment of the adequacy of the present 
        organizational structure to efficiently and effectively 
        support the Secretary in carrying out his 
        responsibilities in a manner that ensures civilian 
        authority in the Department of Defense.
            (3) An assessment of the advantages and 
        disadvantages of the use of political appointees to 
        fill the positions of the various Under Secretaries of 
        Defense, Assistant Secretaries of Defense, and Deputy 
        Under Secretaries of Defense.
            (4) An assessment of the extent of unnecessary 
        duplication of functions between the Office of the 
        Secretary of Defense and the Joint Staff.
            (5) An assessment of the extent of unnecessary 
        duplication of functions between the Office of the 
        Secretary of Defense and the military departments.
            (6) An assessment of the appropriate number of 
        positions referred to in paragraph (3) and of Deputy 
        Assistant Secretaries of Defense.
            (7) An assessment of whether some or any of the 
        functions currently performed by the Office of 
        Humanitarian and Refugee Affairs are more properly or 
        effectively performed by another agency of Government 
        or elsewhere within the Department of Defense.
            (8) An assessment of the efficacy of the Joint 
        Requirements Oversight Council and whether it is 
        advisable or necessary to establish a statutory charter 
        for this organization.
            (9) An assessment of any benefits or efficiencies 
        derived from decentralizing certain functions currently 
        performed by the Office of the Secretary of Defense.
            (10) An assessment of the appropriate size, number, 
        and functional responsibilities of the Defense Agencies 
        and other Department of Defense support organizations.
    (c) Report.--Not later than March 1, 1996, the Secretary of 
Defense shall submit to the congressional defense committees a 
report containing--
            (1) his findings and conclusions resulting from the 
        review under subsection (b); and
            (2) a plan for implementing resulting 
        recommendations, including proposals for legislation 
        (with supporting rationale) that would be required as a 
        result of the review.
    (d) Personnel Reduction.--(1) Effective October 1, 1999, 
the number of OSD personnel may not exceed 75 percent of the 
number of OSD personnel as of October 1, 1994.
    (2) For purposes of this subsection, the term ``OSD 
personnel'' means military and civilian personnel of the 
Department of Defense who are assigned to, or employed in, 
functions in the Office of the Secretary of Defense (including 
Direct Support Activities of that Office and the Washington 
Headquarters Services of the Department of Defense).
    (3) In carrying out reductions in the number of personnel 
assigned to, or employed in, the Office of the Department of 
Defense in order to comply with paragraph (1), the Secretary 
may not reassign functions solely in order to evade the 
requirement contained in that paragraph.
    (4) If the Secretary of Defense determines, and certifies 
to Congress, that the limitation in paragraph (1) would 
adversely affect United States national security, the 
limitation under paragraph (1) shall be applied by substituting 
``80 percent'' for ``75 percent''.

SEC. 902. REDUCTION IN NUMBER OF ASSISTANT SECRETARY OF DEFENSE 
                    POSITIONS.

    (a) Reduction.--Section 138(a) of title 10, United States 
Code, is amended by striking out ``eleven'' and inserting in 
lieu thereof ``ten''.
    (b) Conforming Amendment.--Section 5315 of title 5, United 
States Code, is amended by striking out ``(11)'' after 
``Assistant Secretaries of Defense'' and inserting in lieu 
thereof ``(10)''.

SEC. 903. DEFERRED REPEAL OF VARIOUS STATUTORY POSITIONS AND OFFICES IN 
                    OFFICE OF THE SECRETARY OF DEFENSE.

    (a) Effective Date.--The amendments made by this section 
shall take effect on January 31, 1997.
    (b) Termination of Specification by Law of ASD Positions.--
Subsection (b) of section 138 of title 10, United States Code, 
is amended to read as follows:
    ``(b) The Assistant Secretaries shall perform such duties 
and exercise such powers as the Secretary of Defense may 
prescribe.''.
    (c) Repeal of Certain OSD Presidential Appointment 
Positions.--The following sections of chapter 4 of such title 
are repealed:
            (1) Section 133a, relating to the Deputy Under 
        Secretary of Defense for Acquisition and Technology.
            (2) Section 134a, relating to the Deputy Under 
        Secretary of Defense for Policy.
            (3) Section 134a, relating to the Director of 
        Defense Research and Engineering.
            (4) Section 142, relating to the Assistant to the 
        Secretary of Defense for Nuclear and Chemical and 
        Biological Defense Programs.
    (d) Director of Military Relocation Assistance Programs.--
Section 1056 of such title is amended by striking out 
subsection (d).
    (e) Conforming Amendments Relating to Repeal of Various OSD 
Positions.--Chapter 4 of such title is further amended--
            (1) in section 131(b)--
                    (A) by striking out paragraphs (6) and (8); 
                and
                    (B) by redesignating paragraphs (7), (9), 
                (10), and (11), as paragraphs (6), (7), (8), 
                and (9), respectively;
            (2) in section 138(d), by striking out ``the Under 
        Secretaries of Defense, and the Director of Defense 
        Research and Engineering'' and inserting in lieu 
        thereof ``and the Under Secretaries of Defense''; and
            (3) in the table of sections at the beginning of 
        the chapter, by striking out the items relating to 
        sections 133a, 134a, 137, 139, and 142.
    (f) Conforming Amendments Relating to Repeal of 
Specification of ASD Positions.--
            (1) Section 176(a)(3) of title 10, United States 
        Code, is amended--
                    (A) by striking out ``Assistant Secretary 
                of Defense for Health Affairs'' and inserting 
                in lieu thereof ``official in the Department of 
                Defense with principal responsibility for 
                health affairs''; and
                    (B) by striking out ``Chief Medical 
                Director of the Department of Veterans 
                Affairs'' and inserting in lieu thereof ``Under 
                Secretary for Health of the Department of 
                Veterans Affairs''.
            (2) Section 1216(d) of such title is amended by 
        striking out ``Assistant Secretary of Defense for 
        Health Affairs'' and inserting in lieu thereof 
        ``official in the Department of Defense with principal 
        responsibility for health affairs''.
            (3) Section 1587(d) of such title is amended by 
        striking out ``Assistant Secretary of Defense for 
        Manpower and Logistics'' and inserting in lieu thereof 
        ``official in the Department of Defense with principal 
        responsibility for personnel and readiness''.
            (4) The text of section 10201 of such title is 
        amended to read as follows:
    ``The official in the Department of Defense with 
responsibility for overall supervision of reserve component 
affairs of the Department of Defense is the official designated 
by the Secretary of Defense to have that responsibility.''.
            (5) Section 1211(b)(2) of the National Defense 
        Authorization Act for Fiscal Years 1988 and 1989 (P.L. 
        100-180; 101 Stat 1155; 10 U.S.C. 167 note) is amended 
        by striking out ``the Assistant Secretary of Defense 
        for Special Operations and Low Intensity Conflict'' and 
        inserting in lieu thereof ``the official designated by 
        the Secretary of Defense to have principal 
        responsibility for matters relating to special 
        operations and low intensity conflict''.
    (g) Repeal of Minimum Number of Senior Staff for Specified 
Assistant Secretary of Defense.--Section 355 of the National 
Defense Authorization Act for Fiscal Year 1991 (Public Law 101-
510; 104 Stat. 1540) is repealed.

SEC. 904. REDESIGNATION OF THE POSITION OF ASSISTANT TO THE SECRETARY 
                    OF DEFENSE FOR ATOMIC ENERGY.

    (a) In General.--(1) Section 142 of title 10, United States 
Code, is amended--
            (A) by striking out the section heading and 
        inserting in lieu thereof the following:

``Sec. 142. Assistant to the Secretary of Defense for Nuclear and 
                    Chemical and Biological Defense Programs'';

            (B) in subsection (a), by striking out ``Assistant 
        to the Secretary of Defense for Atomic Energy'' and 
        inserting in lieu thereof ``Assistant to the Secretary 
        of Defense for Nuclear and Chemical and Biological 
        Defense Programs''; and
            (C) by striking out subsection (b) and inserting in 
        lieu thereof the following:
    ``(b) The Assistant to the Secretary shall--
            ``(1) advise the Secretary of Defense on nuclear 
        energy, nuclear weapons, and chemical and biological 
        defense;
            ``(2) serve as the Staff Director of the Nuclear 
        Weapons Council established by section 179 of this 
        title; and
            ``(3) perform such additional duties as the 
        Secretary may prescribe.''.
    (2) The item relating to such section in the table of 
sections at the beginning of chapter 4 of such title is amended 
to read as follows:

``142. Assistant to the Secretary of Defense for Nuclear and Chemical 
          and Biological Defense Programs.''.

    (b) Conforming Amendments.--(1) Section 179(c)(2) of title 
10, United States Code, is amended by striking out ``The 
Assistant to the Secretary of Defense for Atomic Energy'' and 
inserting in lieu thereof ``The Assistant to the Secretary of 
Defense for Nuclear and Chemical and Biological Defense 
Programs''.
    (2) Section 5316 of title 5, United States Code, is amended 
by striking out ``The Assistant to the Secretary of Defense for 
Atomic Energy, Department of Defense.'' and inserting in lieu 
thereof the following:
            ``Assistant to the Secretary of Defense for Nuclear 
        and Chemical and Biological Defense Programs, 
        Department of Defense.''.

SEC. 905. JOINT REQUIREMENTS OVERSIGHT COUNCIL.

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

``Sec. 181. Joint Requirements Oversight Council

    ``(a) Establishment.--The Secretary of Defense shall 
establish a Joint Requirements Oversight Council in the 
Department of Defense.
    ``(b) Mission.--In addition to other matters assigned to it 
by the President or Secretary of Defense, the Joint 
Requirements Oversight Council shall--
            ``(1) assist the Chairman of the Joint Chiefs of 
        Staff in identifying and assessing the priority of 
        joint military requirements (including existing systems 
        and equipment) to meet the national military strategy;
            ``(2) assist the Chairman in considering 
        alternatives to any acquisition program that has been 
        identified to meet military requirements by evaluating 
        the cost, schedule, and performance criteria of the 
        program and of the identified alternatives; and
            ``(3) as part of its mission to assist the Chairman 
        in assigning joint priority among existing and future 
        programs meeting valid requirements, ensure that the 
        assignment of such priorities conforms to and reflects 
        resource levels projected by the Secretary of Defense 
        through defense planning guidance.
    ``(c) Composition.--(1) The Joint Requirements Oversight 
Council is composed of--
            ``(A) the Chairman of the Joint Chiefs of Staff, 
        who is the chairman of the Council;
            ``(B) an Army officer in the grade of general;
            ``(C) a Navy officer in the grade of admiral;
            ``(D) an Air Force officer in the grade of general; 
        and
            ``(E) a Marine Corps officer in the grade of 
        general.
    ``(2) Members of the Council, other than the Chairman of 
the Joint Chiefs of Staff, shall be selected by the Chairman of 
the Joint Chiefs of Staff, after consultation with the 
Secretary of Defense, from officers in the grade of general or 
admiral, as the case may be, who are recommended for such 
selection by the Secretary of the military department 
concerned.
    ``(3) The functions of the Chairman of the Joint Chiefs of 
Staff as chairman of the Council may only be delegated to the 
Vice Chairman of the Joint Chiefs of Staff.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``181. Joint Requirements Oversight Council.''.

    (b) Effective Date.--The amendments made by this section 
shall take effect on January 31, 1997.

SEC. 906. RESTRUCTURING OF DEPARTMENT OF DEFENSE ACQUISITION 
                    ORGANIZATION AND WORKFORCE.

    (a) Restructuring Report.--Not later than March 1, 1996, 
the Secretary of Defense shall submit to Congress a report on 
the acquisition organization and workforce of the Department of 
Defense. The report shall include--
            (1) the plan described in subsection (b); and
            (2) the assessment of streamlining and 
        restructuring options described in subsection (c).
    (b) Plan for Restructuring.--(1) The Secretary shall 
include in the report under subsection (a) a plan on how to 
restructure the current acquisition organization of the 
Department of Defense in a manner that would enable the 
Secretary to accomplish the following:
            (A) Reduce the number of military and civilian 
        personnel assigned to, or employed in, acquisition 
        organizations of the Department of Defense (as defined 
        by the Secretary) by 25 percent over a period of five 
        years, beginning on October 1, 1995.
            (B) Eliminate duplication of functions among 
        existing acquisition organizations of the Department of 
        Defense.
            (C) Maximize opportunity for consolidation among 
        acquisition organizations of the Department of Defense 
        to reduce management overhead.
    (2) In the report, the Secretary shall also identify any 
statutory requirement or congressional directive that inhibits 
any proposed restructuring plan or reduction in the size of the 
defense acquisition organization.
    (3) In designing the plan under paragraph (1), the 
Secretary shall give full consideration to the process 
efficiencies expected to be achieved through the implementation 
of the Federal Acquisition Streamlining Act of 1994 (Public Law 
103-355), the Federal Acquisition Reform Act of 1995 (division 
D of this Act), and other ongoing initiatives to increase the 
use of commercial practices and reduce contract overhead in the 
defense procurement system.
    (c) Assessment of Specified Restructuring Options.--The 
Secretary shall include in the report under subsection (a) a 
detailed assessment of each of the following options for 
streamlining and restructuring the existing defense acquisition 
organization, together with a specific recommendation as to 
whether each such option should be implemented:
            (1) Consolidation of certain functions of the 
        Defense Contract Audit Agency and the Defense Contract 
        Management Command.
            (2) Contracting for performance of a significant 
        portion of the workload of the Defense Contract Audit 
        Agency and other Defense Agencies that perform 
        acquisition functions.
            (3) Consolidation or selected elimination of 
        Department of Defense acquisition organizations.
            (4) Any other defense acquisition infrastructure 
        streamlining or restructuring option the Secretary may 
        determine.
    (d) Reduction of Acquisition Workforce.--(1) The Secretary 
of Defense shall accomplish reductions in defense acquisition 
personnel positions during fiscal year 1996 so that the total 
number of such personnel as of October 1, 1996, is less than 
the total number of such personnel as of October 1, 1995, by at 
least 15,000.
    (2) For purposes of this subsection, the term ``defense 
acquisition personnel'' means military and civilian personnel 
assigned to, or employed in, acquisition organizations of the 
Department of Defense (as specified in Department of Defense 
Instruction numbered 5000.58 dated January 14, 1992) with the 
exception of personnel who possess technical competence in 
trade-skill maintenance and repair positions involved in 
performing depot maintenance functions.

SEC. 907. REPORT ON NUCLEAR POSTURE REVIEW AND ON PLANS FOR NUCLEAR 
                    WEAPONS MANAGEMENT IN EVENT OF ABOLITION OF 
                    DEPARTMENT OF ENERGY.

    (a) Report Required.--The Secretary of Defense shall submit 
to Congress a report concerning the nuclear weapons complex. 
The report shall set forth--
            (1) the Secretary's views on the effectiveness of 
        the Department of Energy in managing the nuclear 
        weapons complex, including the fulfillment of the 
        requirements for nuclear weapons established for the 
        Department of Energy in the Nuclear Posture Review; and
            (2) the Secretary's recommended plan for the 
        incorporation into the Department of Defense of the 
        national security programs of the Department of Energy 
        if the Department of Energy should be abolished and 
        those programs be transferred to the Department of 
        Defense.
    (b) Definition.--For purposes of this section, the term 
``Nuclear Posture Review'' means the Department of Defense 
Nuclear Posture Review as contained in the report entitled 
``Report of the Secretary of Defense to the President and the 
Congress'', dated February 19, 1995, or in subsequent such 
reports.
    (c) Submission of Report.--The report under subsection (a) 
shall be submitted not later than March 15, 1996.

SEC. 908. REDESIGNATION OF ADVANCED RESEARCH PROJECTS AGENCY.

    (a) Redesignation.--The agency in the Department of Defense 
known as the Advanced Research Projects Agency shall after the 
date of the enactment of this Act be designated as the Defense 
Advanced Research Projects Agency.
    (b) References.--Any reference in any law, regulation, 
document, record, or other paper of the United States or in any 
provision of this Act to the Advanced Research Projects Agency 
shall be considered to be a reference to the Defense Advanced 
Research Projects Agency.

                    Subtitle B--Financial Management

SEC. 911. TRANSFER AUTHORITY REGARDING FUNDS AVAILABLE FOR FOREIGN 
                    CURRENCY FLUCTUATIONS.

    (a) Transfers to Military Personnel Accounts Authorized.--
Section 2779 of title 10, United States Code, is amended by 
adding at the end the following:
    ``(c) Transfers to Military Personnel Accounts.--The 
Secretary of Defense may transfer funds to military personnel 
appropriations for a fiscal year out of funds available to the 
Department of Defense for that fiscal year under the 
appropriation `Foreign Currency Fluctuations, Defense'.''.
    (b) Revision and Codification of Authority for Transfers to 
Foreign Currency Fluctuations Account.--Section 2779 of such 
title, as amended by subsection (a), is further amended by 
adding at the end the following:
    ``(d) Transfers to Foreign Currency Fluctuations Account.--
(1) The Secretary of Defense may transfer to the appropriation 
`Foreign Currency Fluctuations, Defense' unobligated amounts of 
funds appropriated for operation and maintenance and 
unobligated amounts of funds appropriated for military 
personnel.
    ``(2) Any transfer from an appropriation under paragraph 
(1) shall be made not later than the end of the second fiscal 
year following the fiscal year for which the appropriation is 
provided.
    ``(3) Any transfer made pursuant to the authority provided 
in this subsection shall be limited so that the amount in the 
appropriation `Foreign Currency Fluctuations, Defense' does not 
exceed $970,000,000 at the time the transfer is made.''.
    (c) Conditions of Availability for Transferred Funds.--
Section 2779 of such title, as amended by subsection (b), is 
further amended by adding at the end the following:
    ``(e) Conditions of Availability for Transferred Funds.--
Amounts transferred under subsection (c) or (d) shall be merged 
with and be available for the same purposes and for the same 
period as the appropriations to which transferred.''.
    (d) Repeal of Superseded Provisions.--(1) Section 767A of 
Public Law 96-527 (94 Stat. 3093) is repealed.
    (2) Section 791 of the Department of Defense Appropriation 
Act, 1983 (enacted in section 101(c) of Public Law 97-377; 96 
Stat. 1865) is repealed.
    (e) Technical Amendments.--Section 2779 of title 10, United 
States Code, is amended--
            (1) in subsection (a), by striking out ``(a)(1)'' 
        and inserting in lieu thereof ``(a) Transfers Back to 
        Foreign Currency Fluctuations Appropriation.--(1)'';
            (2) in subsection (a)(2), by striking out ``2d 
        fiscal year'' and inserting in lieu thereof ``second 
        fiscal year''; and
            (3) in subsection (b), by striking out ``(b)(1)'' 
        and inserting in lieu thereof ``(b) Funding for Losses 
        in Military Construction and Family Housing.--(1)''.
    (f) Effective Date.--Subsections (c) and (d) of section 
2779 of title 10, United States Code, as added by subsections 
(a) and (b), and the repeals made by subsection (d), shall 
apply only with respect to amounts appropriated for a fiscal 
year after fiscal year 1995.

SEC. 912. DEFENSE MODERNIZATION ACCOUNT.

    (a) Establishment and Use.--(1) Chapter 131 of title 10, 
United States Code, is amended by inserting after section 2215 
the following new section:

``Sec. 2216. Defense Modernization Account

    ``(a) Establishment.--There is established in the Treasury 
an account to be known as the `Defense Modernization Account'.
    ``(b) Transfers to Account.--(1)(A) Upon a determination by 
the Secretary of a military department or the Secretary of 
Defense with respect to Defense-wide appropriations accounts of 
the availability and source of funds described in subparagraph 
(B), that Secretary may transfer to the Defense Modernization 
Account during any fiscal year any amount of funds available to 
the Secretary described in that subparagraph. Such funds may be 
transferred to that account only after the Secretary concerned 
notifies the congressional defense committees in writing of the 
amount and source of the proposed transfer.
    ``(B) This subsection applies to the following funds 
available to the Secretary concerned:
            ``(i) Unexpired funds in appropriations accounts 
        that are available for procurement and that, as a 
        result of economies, efficiencies, and other savings 
        achieved in carrying out a particular procurement, are 
        excess to the requirements of that procurement.
            ``(ii) Unexpired funds that are available during 
        the final 30 days of a fiscal year for support of 
        installations and facilities and that, as a result of 
        economies, efficiencies, and other savings, are excess 
        to the requirements for support of installations and 
        facilities.
    ``(C) Any transfer under subparagraph (A) shall be made 
under regulations prescribed by the Secretary of Defense.
    ``(2) Funds referred to in paragraph (1) may not be 
transferred to the Defense Modernization Account if--
            ``(A) the funds are necessary for programs, 
        projects, and activities that, as determined by the 
        Secretary, have a higher priority than the purposes for 
        which the funds would be available if transferred to 
        that account; or
            ``(B) the balance of funds in the account, after 
        transfer of funds to the account, would exceed 
        $1,000,000,000.
    ``(3) Amounts credited to the Defense Modernization Account 
shall remain available for transfer until the end of the third 
fiscal year that follows the fiscal year in which the amounts 
are credited to the account.
    ``(4) The period of availability of funds for expenditure 
provided for in sections 1551 and 1552 of title 31 may not be 
extended by transfer into the Defense Modernization Account.
    ``(c) Scope of Use of Funds.--Funds transferred to the 
Defense Modernization Account from funds appropriated for a 
military department, Defense Agency, or other element of the 
Department of Defense shall be available in accordance with 
subsections (f) and (g) only for transfer to funds available 
for that military department, Defense Agency, or other element.
    ``(d) Authorized Use of Funds.--Funds available from the 
Defense Modernization Account pursuant to subsection (f) or (g) 
may be used for the following purposes:
            ``(1) For increasing, subject to subsection (e), 
        the quantity of items and services procured under a 
        procurement program in order to achieve a more 
        efficient production or delivery rate.
            ``(2) For research, development, test, and 
        evaluation and for procurement necessary for 
        modernization of an existing system or of a system 
        being procured under an ongoing procurement program.
    ``(e) Limitations.--(1) Funds in the Defense Modernization 
Account may not be used to increase the quantity of an item or 
services procured under a particular procurement program to the 
extent that doing so would--
            ``(A) result in procurement of a total quantity of 
        items or services in excess of--
                    ``(i) a specific limitation provided by law 
                on the quantity of the items or services that 
                may be procured; or
                    ``(ii) the requirement for the items or 
                services as approved by the Joint Requirements 
                Oversight Council and reported to Congress by 
                the Secretary of Defense; or
            ``(B) result in an obligation or expenditure of 
        funds in excess of a specific limitation provided by 
        law on the amount that may be obligated or expended, 
        respectively, for that procurement program.
    ``(2) Funds in the Defense Modernization Account may not be 
used for a purpose or program for which Congress has not 
authorized appropriations.
    ``(3) Funds may not be transferred from the Defense 
Modernization Account in any year for the purpose of--
            ``(A) making an expenditure for which there is no 
        corresponding obligation; or
            ``(B) making an expenditure that would satisfy an 
        unliquidated or unrecorded obligation arising in a 
        prior fiscal year.
    ``(f) Transfer of Funds.--(1) The Secretary of Defense may 
transfer funds in the Defense Modernization Account to 
appropriations available for purposes set forth in subsection 
(d).
    ``(2) Funds in the Defense Modernization Account may not be 
transferred under paragraph (1) until 30 days after the date on 
which the Secretary concerned notifies the congressional 
defense committees in writing of the amount and purpose of the 
proposed transfer.
    ``(3) The total amount of transfers from the Defense 
Modernization Account during any fiscal year under this 
subsection may not exceed $500,000,000.
    ``(g) Availability of Funds by Appropriation.--In addition 
to transfers under subsection (f), funds in the Defense 
Modernization Account may be made available for purposes set 
forth in subsection (d) in accordance with the provisions of 
appropriations Acts, but only to the extent authorized in an 
Act other than an appropriations Act.
    ``(h) Secretary To Act Through Comptroller.--The Secretary 
of Defense shall carry out this section through the Under 
Secretary of Defense (Comptroller), who shall be authorized to 
implement this section through the issuance of any necessary 
regulations, policies, and procedures after consultation with 
the General Counsel and Inspector General of the Department of 
Defense.
    ``(i) Quarterly Reports.--(1) Not later than 15 days after 
the end of each calendar quarter, the Secretary of Defense 
shall submit to the congressional committees specified in 
paragraph (2) a report on the Defense Modernization Account. 
Each such report shall set forth the following:
            ``(A) The amount and source of each credit to the 
        account during that quarter.
            ``(B) The amount and purpose of each transfer from 
        the account during that quarter.
            ``(C) The balance in the account at the end of the 
        quarter and, of such balance, the amount attributable 
        to transfers to the account from each Secretary 
        concerned.
    ``(2) The committees referred to in paragraph (1) are the 
congressional defense committees and the Committee on 
Governmental Affairs of the Senate and the Committee on 
Government Reform and Oversight of the House of 
Representatives.
    ``(j) Definitions.--In this section:
            ``(1) The term `Secretary concerned' includes the 
        Secretary of Defense with respect to Defense-wide 
        appropriations accounts.
            ``(2) The term `unexpired funds' means funds 
        appropriated for a definite period that remain 
        available for obligation.
            ``(3) The term `congressional defense committees' 
        means--
                    ``(A) the Committee on Armed Services and 
                the Committee on Appropriations of the Senate; 
                and
                    ``(B) the Committee on National Security 
                and the Committee on Appropriations of the 
                House of Representatives.''.
    (2) The table of sections at the beginning of chapter 131 
of such title is amended by inserting after the item relating 
to section 2215 the following new item:

``2216. Defense Modernization Account.''.

    (b) Effective Date.--Section 2216 of title 10, United 
States Code (as added by subsection (a)), shall apply only to 
funds appropriated for fiscal years after fiscal year 1995.
    (c) Expiration of Authority and Account.--(1) The authority 
under section 2216(b) of title 10, United States Code (as added 
by subsection (a)), to transfer funds into the Defense 
Modernization Account terminates at the close of September 30, 
2003.
    (2) Three years after the termination date specified in 
paragraph (1), the Defense Modernization Account shall be 
closed and any remaining balance in the account shall be 
canceled and thereafter shall not be available for any purpose.
    (d) GAO Reviews.--(1) The Comptroller General of the United 
States shall conduct two reviews of the administration of the 
Defense Modernization Account. In each review, the Comptroller 
General shall assess the operations and benefits of the 
account.
    (2) Not later than March 1, 2000, the Comptroller General 
shall--
            (A) complete the first review; and
            (B) submit to the specified committees of Congress 
        an initial report on the administration and benefits of 
        the Defense Modernization Account.
    (3) Not later than March 1, 2003, the Comptroller General 
shall--
            (A) complete the second review; and
            (B) submit to the specified committees of Congress 
        a final report on the administration and benefits of 
        the Defense Modernization Account.
    (4) Each such report shall include any recommended 
legislation regarding the account that the Comptroller General 
considers appropriate.
    (5) For purposes of this subsection, the term ``specified 
committees of Congress'' means the congressional committees 
referred to in section 2216(i)(2) of title 10, United States 
Code, as added by subsection (a).

SEC. 913. DESIGNATION AND LIABILITY OF DISBURSING AND CERTIFYING 
                    OFFICIALS.

    (a) Disbursing Officials.--(1) Section 3321(c) of title 31, 
United States Code, is amended by striking out paragraph (2) 
and inserting in lieu thereof the following:
            ``(2) The Department of Defense.''.
    (2) Section 2773 of title 10, United States Code, is 
amended--
            (A) in subsection (a)--
                    (i) in paragraph (1), by striking out 
                ``With the approval of a Secretary of a 
                military department when the Secretary 
                considers it necessary, a disbursing official 
                of the military department'' and inserting in 
                lieu thereof ``Subject to paragraph (3), a 
                disbursing official of the Department of 
                Defense''; and
                    (ii) by adding at the end the following new 
                paragraph:
    ``(3) A disbursing official may make a designation under 
paragraph (1) only with the approval of the Secretary of 
Defense or, in the case of a disbursing official of a military 
department, the Secretary of that military department.''; and
            (B) in subsection (b)(1), by striking out ``any 
        military department'' and inserting in lieu thereof 
        ``the Department of Defense''.
    (b) Designation of Members of the Armed Forces To Have 
Authority To Certify Vouchers.--Section 3325(b) of title 31, 
United States Code, is amended to read as follows:
    ``(b) In addition to officers and employees referred to in 
subsection (a)(1)(B) of this section as having authorization to 
certify vouchers, members of the armed forces under the 
jurisdiction of the Secretary of Defense may certify vouchers 
when authorized, in writing, by the Secretary to do so.''.
    (c) Conforming Amendments.--(1) Section 1012 of title 37, 
United States Code, is amended by striking out ``Secretary 
concerned'' both places it appears and inserting in lieu 
thereof ``Secretary of Defense''.
    (2) Section 1007(a) of title 37, United States Code, is 
amended by striking out ``Secretary concerned'' and inserting 
in lieu thereof ``Secretary of Defense, or upon the denial of 
relief of an officer pursuant to section 3527 of title 31''.
    (3)(A) Section 7863 of title 10, United States Code, is 
amended--
            (i) in the first sentence, by striking out 
        ``disbursements of public moneys or'' and ``the money 
        was paid or''; and
            (ii) in the second sentence, by striking out 
        ``disbursement or''.
    (B)(i) The heading of such section is amended to read as 
follows:

``Sec. 7863. Disposal of public stores by order of commanding 
                    officer''.

    (ii) The item relating to such section in the table of 
sections at the beginning of chapter 661 of such title is 
amended to read as follows:

``7863. Disposal of public stores by order of commanding officer.''.

    (4) Section 3527(b)(1) of title 31, United States Code, is 
amended--
            (A) by striking out ``a disbursing official of the 
        armed forces'' and inserting in lieu thereof ``an 
        official of the armed forces referred to in subsection 
        (a)'';
            (B) by striking out ``records,'' and inserting in 
        lieu thereof ``records, or a payment described in 
        section 3528(a)(4)(A) of this title,'';
            (C) by redesignating subparagraphs (A), (B), and 
        (C) as clauses (i), (ii), and (iii), and realigning 
        such clauses four ems from the left margin;
            (D) by inserting before clause (i), as so 
        redesignated, the following:
            ``(A) in the case of a physical loss or 
        deficiency--'';
            (E) in clause (iii), as so redesignated, by 
        striking out the period at the end and inserting in 
        lieu thereof ``; or''; and
            (F) by adding at the end the following:
            ``(B) in the case of a payment described in section 
        3528(a)(4)(A) of this title, the Secretary of Defense 
        or the Secretary of the appropriate military 
        department, after taking a diligent collection action, 
        finds that the criteria of section 3528(b)(1) of this 
        title are satisfied.''.
    (5) Section 3528 of title 31, United States Code, is 
amended by striking out subsection (d).

SEC. 914. FISHER HOUSE TRUST FUNDS.

    (a) Establishment.--(1) Chapter 131 of title 10, United 
States Code, is amended by adding at the end the following new 
section:

``Sec. 2221. Fisher House trust funds

    ``(a) Establishment.--The following trust funds are 
established on the books of the Treasury:
            ``(1) The Fisher House Trust Fund, Department of 
        the Army.
            ``(2) The Fisher House Trust Fund, Department of 
        the Air Force.
    ``(b) Investment.--Funds in the trust funds may be invested 
in securities of the United States. Earnings and gains realized 
from the investment of funds in a trust fund shall be credited 
to the trust fund.
    ``(c) Use of Funds.--(1) Amounts in the Fisher House Trust 
Fund, Department of the Army, that are attributable to earnings 
or gains realized from investments shall be available for the 
operation and maintenance of Fisher houses that are located in 
proximity to medical treatment facilities of the Army.
    ``(2) Amounts in the Fisher House Trust Fund, Department of 
the Air Force, that are attributable to earnings or gains 
realized from investments shall be available for the operation 
and maintenance of Fisher houses that are located in proximity 
to medical treatment facilities of the Air Force.
    ``(3) The use of funds under this section is subject to 
section 1321(b)(2) of title 31.
    ``(d) Fisher House Defined.--In this section, the term 
`Fisher House' means a housing facility that--
            ``(1) is located in proximity to a medical 
        treatment facility of the Army or the Air Force; and
            ``(2) is available for residential use on a 
        temporary basis by patients at such facilities, members 
        of the family of such patients, and others providing 
        the equivalent of familial support for such 
        patients.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``2221. Fisher House trust funds.''.

    (b) Corpus of Trust Funds.--(1) The Secretary of the 
Treasury shall--
            (A) close the accounts established with the funds 
        that were required by section 8019 of Public Law 102-
        172 (105 Stat. 1175) and section 9023 of Public Law 
        102-396 (106 Stat. 1905) to be transferred to an 
        appropriated trust fund; and
            (B) transfer the amounts in such accounts to the 
        Fisher House Trust Fund, Department of the Army, 
        established by subsection (a)(1) of section 2221 of 
        title 10, United States Code, as added by subsection 
        (a).
    (2) The Secretary of the Air Force shall transfer to the 
Fisher House Trust Fund, Department of the Air Force, 
established by subsection (a)(2) of section 2221 of title 10, 
United States Code (as added by section (a)), all amounts in 
the accounts for Air Force installations and other facilities 
that, as of the date of the enactment of this Act, are 
available for operation and maintenance of Fisher houses (as 
defined in subsection (d) of such section 2221).
    (c) Conforming Amendments.--Section 1321 of title 31, 
United States Code, is amended--
            (1) by adding at the end of subsection (a) the 
        following:
            ``(92) Fisher House Trust Fund, Department of the 
        Army.
            ``(93) Fisher House Trust Fund, Department of the 
        Air Force.''; and
            (2) in subsection (b)--
                    (A) by inserting ``(1)'' after ``(b)'';
                    (B) in the second sentence, by striking out 
                ``Amounts accruing to these funds (except to 
                the trust fund `Armed Forces Retirement Home 
                Trust Fund')'' and inserting in lieu thereof 
                ``Except as provided in paragraph (2), amounts 
                accruing to these funds'';
                    (C) by striking out the third sentence; and
                    (D) by adding at the end the following:
    ``(2) Expenditures from the following trust funds may be 
made only under annual appropriations and only if the 
appropriations are specifically authorized by law:
            ``(A) Armed Forces Retirement Home Trust Fund.
            ``(B) Fisher House Trust Fund, Department of the 
        Army.
            ``(C) Fisher House Trust Fund, Department of the 
        Air Force.''.
    (d) Repeal of Superseded Provisions.--The following 
provisions of law are repealed:
            (1) Section 8019 of Public Law 102-172 (105 Stat. 
        1175).
            (2) Section 9023 of Public Law 102-396 (106 Stat. 
        1905).
            (3) Section 8019 of Public Law 103-139 (107 Stat. 
        1441).
            (4) Section 8017 of Public Law 103-335 (108 Stat. 
        2620; 10 U.S.C. 1074 note).

SEC. 915. LIMITATION ON USE OF AUTHORITY TO PAY FOR EMERGENCY AND 
                    EXTRAORDINARY EXPENSES.

    Section 127 of title 10, United States Code, is amended--
            (1) by redesignating subsection (c) as subsection 
        (d); and
            (2) by inserting after subsection (b) the following 
        new subsection (c):
    ``(c)(1) Funds may not be obligated or expended in an 
amount in excess of $500,000 under the authority of subsection 
(a) or (b) until the Secretary of Defense has notified the 
Committee on Armed Services and the Committee on Appropriations 
of the Senate and the Committee on National Security and the 
Committee on Appropriations of the House of Representatives of 
the intent to obligate or expend the funds, and--
            ``(A) in the case of an obligation or expenditure 
        in excess of $1,000,000, 15 days have elapsed since the 
        date of the notification; or
            ``(B) in the case of an obligation or expenditure 
        in excess of $500,000, but not in excess of $1,000,000, 
        5 days have elapsed since the date of the notification.
    ``(2) Subparagraph (A) or (B) of paragraph (1) shall not 
apply to an obligation or expenditure of funds otherwise 
covered by such subparagraph if the Secretary of Defense 
determines that the national security objectives of the United 
States will be compromised by the application of the 
subparagraph to the obligation or expenditure. If the Secretary 
makes a determination with respect to an obligation or 
expenditure under the preceding sentence, the Secretary shall 
immediately notify the committees referred to in paragraph (1) 
that such obligation or expenditure is necessary and provide 
any relevant information (in classified form, if necessary) 
jointly to the chairman and ranking minority member (or their 
designees) of such committees.
    ``(3) A notification under paragraph (1) and information 
referred to in paragraph (2) shall include the amount to be 
obligated or expended, as the case may be, and the purpose of 
the obligation or expenditure.''.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--(1) Upon 
determination by the Secretary of Defense that such action is 
necessary in the national interest, the Secretary may transfer 
amounts of authorizations made available to the Department of 
Defense in this division for fiscal year 1996 between any such 
authorizations for that fiscal year (or any subdivisions 
thereof). Amounts of authorizations so transferred shall be 
merged with and be available for the same purposes as the 
authorization to which transferred.
    (2) The total amount of authorizations that the Secretary 
of Defense may transfer under the authority of this section may 
not exceed $2,000,000,000.
    (b) Limitations.--The authority provided by this section to 
transfer authorizations--
            (1) may only be used to provide authority for items 
        that have a higher priority than the items from which 
        authority is transferred; and
            (2) may not be used to provide authority for an 
        item that has been denied authorization by Congress.
    (c) Effect on Authorization Amounts.--A transfer made from 
one account to another under the authority of this section 
shall be deemed to increase the amount authorized for the 
account to which the amount is transferred by an amount equal 
to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly 
notify Congress of each transfer made under subsection (a).

SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.

    (a) Status of Classified Annex.--The Classified Annex 
prepared by the committee on conference to accompany the bill 
H.R. 1530 of the One Hundred Fourth Congress and transmitted to 
the President is hereby incorporated into this Act.
    (b) Construction With Other Provisions of Act.--The amounts 
specified in the Classified Annex are not in addition to 
amounts authorized to be appropriated by other provisions of 
this Act.
    (c) Limitation on Use of Funds.--Funds appropriated 
pursuant to an authorization contained in this Act that are 
made available for a program, project, or activity referred to 
in the Classified Annex may only be expended for such program, 
project, or activity in accordance with such terms, conditions, 
limitations, restrictions, and requirements as are set out for 
that program, project, or activity in the Classified Annex.
    (d) Distribution of Classified Annex.--The President shall 
provide for appropriate distribution of the Classified Annex, 
or of appropriate portions of the annex, within the executive 
branch of the Government.

SEC. 1003. IMPROVED FUNDING MECHANISMS FOR UNBUDGETED OPERATIONS.

    (a) Revision of Funding Mechanism.--(1) Section 127a of 
title 10, United States Code, is amended to read as follows:

``Sec. 127a. Operations for which funds are not provided in advance: 
                    funding mechanisms

    ``(a) In General.--(1) The Secretary of Defense shall use 
the procedures prescribed by this section with respect to any 
operation specified in paragraph (2) that involves--
            ``(A) the deployment (other than for a training 
        exercise) of elements of the Armed Forces for a purpose 
        other than a purpose for which funds have been 
        specifically provided in advance; or
            ``(B) the provision of humanitarian assistance, 
        disaster relief, or support for law enforcement 
        (including immigration control) for which funds have 
        not been specifically provided in advance.
    ``(2) This section applies to--
            ``(A) any operation the incremental cost of which 
        is expected to exceed $50,000,000; and
            ``(B) any other operation the expected incremental 
        cost of which, when added to the expected incremental 
        costs of other operations that are currently ongoing, 
        is expected to result in a cumulative incremental cost 
        of ongoing operations of the Department of Defense in 
        excess of $100,000,000.
Any operation the incremental cost of which is expected not to 
exceed $10,000,000 shall be disregarded for the purposes of 
subparagraph (B).
    ``(3) Whenever an operation to which this section applies 
is commenced or subsequently becomes covered by this section, 
the Secretary of Defense shall designate and identify that 
operation for the purposes of this section and shall promptly 
notify Congress of that designation (and of the identification 
of the operation).
    ``(4) This section does not provide authority for the 
President or the Secretary of Defense to carry out any 
operation, but establishes mechanisms for the Department of 
Defense by which funds are provided for operations that the 
armed forces are required to carry out under some other 
authority.
    ``(b) Waiver of Requirement To Reimburse Support Units.--
(1) The Secretary of Defense shall direct that, when a unit of 
the Armed Forces participating in an operation described in 
subsection (a) receives services from an element of the 
Department of Defense that operates through the Defense 
Business Operations Fund (or a successor fund), such unit of 
the Armed Forces may not be required to reimburse that element 
for the incremental costs incurred by that element in providing 
such services, notwithstanding any other provision of law or 
any Government accounting practice.
    ``(2) The amounts which but for paragraph (1) would be 
required to be reimbursed to an element of the Department of 
Defense (or a fund) shall be recorded as an expense 
attributable to the operation and shall be accounted for 
separately.
    ``(c) Transfer Authority.--(1) Whenever there is an 
operation of the Department of Defense described in subsection 
(a), the Secretary of Defense may transfer amounts describedin 
paragraph (3) to accounts from which incremental expenses for that 
operation were incurred in order to reimburse those accounts for those 
incremental expenses. Amounts so transferred shall be merged with and 
be available for the same purposes as the accounts to which 
transferred.
    ``(2) The total amount that the Secretary of Defense may 
transfer under the authority of this section in any fiscal year 
is $200,000,000.
    ``(3) Transfers under this subsection may only be made from 
amounts appropriated to the Department of Defense for any 
fiscal year that remain available for obligation, other than 
amounts within any operation and maintenance appropriation that 
are available for (A) an account (known as a budget activity 1 
account) that is specified as being for operating forces, or 
(B) an account (known as a budget activity 2 account) that is 
specified as being for mobilization.
    ``(4) The authority provided by this subsection is in 
addition to any other authority provided by law authorizing the 
transfer of amounts available to the Department of Defense. 
However, the Secretary may not use any such authority under 
another provision of law for a purpose described in paragraph 
(1) if there is authority available under this subsection for 
that purpose.
    ``(5) The authority provided by this subsection to transfer 
amounts may not be used to provide authority for an activity 
that has been denied authorization by Congress.
    ``(6) A transfer made from one account to another under the 
authority of this subsection shall be deemed to increase the 
amount authorized for the account to which the amount is 
transferred by an amount equal to the amount transferred.
    ``(d) Report Upon Designation of an Operation.--Within 45 
days after the Secretary of Defense identifies an operation 
pursuant to subsection (a)(2), the Secretary of Defense shall 
submit to Congress a report that sets forth the following:
            ``(1) The manner by which the Secretary proposes to 
        obtain funds for the cost to the United States of the 
        operation, including a specific discussion of how the 
        Secretary proposes to restore balances in--
                    ``(A) the Defense Business Operations Fund 
                (or a successor fund), or
                    ``(B) the accounts from which the Secretary 
                transfers funds under the authority of 
                subsection (c), to the levels that would have 
                been anticipated but for the provisions of 
                subsection (c).
            ``(2) If the operation is described in subsection 
        (a)(1)(B), a justification why the budgetary resources 
        of another department or agency of the Federal 
        Government, instead of resources of the Department of 
        Defense, are not being used for carrying out the 
        operation.
            ``(3) The objectives of the operation.
            ``(4) The estimated duration of the operation and 
        of any deployment of armed forces personnel in such 
        operation.
            ``(5) The estimated incremental cost of the 
        operation to the United States.
            ``(6) The exit criteria for the operation and for 
        the withdrawal of the elements of the armed forces 
        involved in the operation.
    ``(e) Limitations.--(1) The Secretary may not restore 
balances in the Defense Business Operations Fund through 
increases in rates charged by that fund in order to compensate 
for costs incurred and not reimbursed due to subsection (b).
    ``(2) The Secretary may not restore balances in the Defense 
Business Operations Fund or any other fund or account through 
the use of unobligated amounts in an operation and maintenance 
appropriation that are available within that appropriation for 
(A) an account (known as a budget activity 1 account) that is 
specified as being for operating forces, or (B) an account 
(known as a budget activity 2 account) that is specified as 
being for mobilization.
      ``(f) Submission of Requests for Supplemental 
Appropriations.--It is the sense of Congress that whenever 
there is an operation described in subsection (a), the 
President should, not later than 90 days after the date on 
which notification is provided pursuant to subsection (a)(3), 
submit to Congress a request for the enactment of supplemental 
appropriations for the then-current fiscal year in order to 
provide funds to replenish the Defense Business Operations Fund 
or any other fund or account of the Department of Defense from 
which funds for the incremental expenses of that operation were 
derived under this section and should, as necessary, submit 
subsequent requests for the enactment of such appropriations.
    ``(g) Incremental Costs.--For purposes of this section, 
incremental costs of the Department of Defense with respect to 
an operation are the costs of the Department that are directly 
attributable to the operation (and would not have been incurred 
but for the operation). Incremental costs do not include the 
cost of property or services acquired by the Department that 
are paid for by a source outside the Department or out of funds 
contributed by such a source.
    ``(h) Relationship to War Powers Resolution.--This section 
may not be construed as altering or superseding the War Powers 
Resolution. This section does not provide authority to conduct 
any military operation.
    ``(i) GAO Compliance Reviews.--The Comptroller General of 
the United States shall from time to time, and when requested 
by a committee of Congress, conduct a review of the defense 
funding structure under this section to determine whether the 
Department of Defense is complying with the requirements and 
limitations of this section.''.
    (2) The item relating to section 127a in the table of 
sections at the beginning of chapter 3 of such title is amended 
to read as follows:

``127a. Operations for which funds are not provided in advance: funding 
          mechanisms.''.

    (b) Effective Date.--The amendment to section 127a of title 
10, United States Code, made by subsection (a) shall take 
effect on the date of the enactment of this Act and shall apply 
to any operation of the Department of Defense that is in effect 
on or after that date, whether such operation is begun before, 
on, or after such date of enactment. In the case of an 
operation begun before such date, any reference in such section 
to the commencement of such operation shall be treated as 
referring to the effective date under the preceding sentence.

SEC. 1004. OPERATION PROVIDE COMFORT.

    (a) Authorization of Amounts Available.--Within the total 
amounts authorized to be appropriated in titles III and IV, 
there is hereby authorized to be appropriated for fiscal year 
1996 for costs associated with Operation Provide Comfort--
            (1) $136,300,000 for operation and maintenance 
        costs; and
            (2) $7,000,000 for incremental military personnel 
        costs.
    (b) Report.--Not more than $70,000,000 of the amount 
appropriated under subsection (a) may be obligated until the 
Secretary of Defense submits to the congressional defense 
committees a report on Operation Provide Comfort which includes 
the following:
            (1) A detailed presentation of the projected costs 
        to be incurred by the Department of Defense for 
        Operation Provide Comfort during fiscal year 1996, 
        together with a discussion of missions and functions 
        expected to be performed by the Department as part of 
        that operation during that fiscal year.
            (2) A detailed presentation of the projected costs 
        to be incurred by other departments and agencies of the 
        Federal Government participating in or providing 
        support to Operation Provide Comfort during fiscal year 
        1996.
            (3) A discussion of available options to reduce the 
        involvement of the Department of Defense in those 
        aspects of Operation Provide Comfort that are not 
        directly related to the military mission of the 
        Department of Defense.
            (4) A plan establishing an exit strategy for United 
        States involvement in, and support for, Operation 
        Provide Comfort.
    (c) Operation Provide Comfort.--For purposes of this 
section, the term ``Operation Provide Comfort'' means the 
operation of the Department of Defense that as of October 30, 
1995, is designated as Operation Provide Comfort.

SEC. 1005. OPERATION ENHANCED SOUTHERN WATCH.

    (a) Authorization of Amounts Available.--Within the total 
amounts authorized to be appropriated in titles III and IV, 
there is hereby authorized to be appropriated for fiscal year 
1996 for costs associated with Operation Enhanced Southern 
Watch--
            (1) $433,400,000 for operation and maintenance 
        costs; and
            (2) $70,400,000 for incremental military personnel 
        costs.
    (b) Report.--(1) Of the amounts specified in subsection 
(a), not more than $250,000,000 may be obligated until the 
Secretary of Defense submits to the congressional defense 
committees a report designating Operation Enhanced Southern 
Watch, or significant elements thereof, as a forward presence 
operation for which funding should be budgeted as part of the 
annual defense budget process in the same manner as other 
activities of the Armed Forces involving forward presence or 
forward deployed forces.
    (2) The report shall set forth the following:
            (A) The expected duration and annual costs of the 
        various elements of Operation Enhanced Southern Watch.
            (B) Those elements of Operation Enhanced Southern 
        Watch that are semi-permanent in nature and should be 
        budgeted in the future as part of the annual defense 
        budget process in the same manner as other activities 
        of the Armed Forces involving forward presence or 
        forward deployed forces.
            (C) The political and military objectives 
        associated with Operation Enhanced Southern Watch.
            (D) The contributions (both in-kind and actual) by 
        other nations to the costs of conducting Operation 
        Enhanced Southern Watch.
    (c) Operation Enhanced Southern Watch.--For purposes of 
this section, the term ``Operation Enhanced Southern Watch'' 
means the operation of the Department of Defense that as of 
October 30, 1995, is designated as Operation Enhanced Southern 
Watch.

SEC. 1006. AUTHORITY FOR OBLIGATION OF CERTAIN UNAUTHORIZED FISCAL YEAR 
                    1995 DEFENSE APPROPRIATIONS.

    (a) Authority.--The amounts described in subsection (b) may 
be obligated and expended for programs, projects, and 
activities of the Department of Defense in accordance with 
fiscal year 1995 defense appropriations.
    (b) Covered Amounts.--The amounts referred to in subsection 
(a) are the amounts provided for programs, projects, and 
activities of the Department of Defense in fiscal year 1995 
defense appropriations that are in excess of the amounts 
provided for such programs, projects, and activities in fiscal 
year 1995 defense authorizations.
    (c) Definitions.--For the purposes of this section:
            (1) Fiscal year 1995 defense appropriations.--The 
        term ``fiscal year 1995 defense appropriations'' means 
        amounts appropriated or otherwise made available to the 
        Department of Defense for fiscal year 1995 in the 
        Department of Defense Appropriations Act, 1995 (Public 
        Law 103-335).
            (2) Fiscal year 1995 defense authorizations.--The 
        term ``fiscal year 1995 defense authorizations'' means 
        amounts authorized to be appropriated for the 
        Department of Defense for fiscal year 1995 in the 
        National Defense Authorization Act for Fiscal Year 1995 
        (Public Law 103-337).

SEC. 1007. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL APPROPRIATIONS 
                    FOR FISCAL YEAR 1995.

    (a) Adjustment to Previous Authorizations.--Amounts 
authorized to be appropriated to the Department of Defense for 
fiscal year 1995 in the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337) are hereby adjusted, with 
respect to any such authorized amount, by the amount by which 
appropriations pursuant to such authorization were increased 
(by a supplemental appropriation) or decreased (by a 
rescission), or both, in title I of the Emergency Supplemental 
Appropriations and Rescissions for the Department of Defense to 
Preserve and Enhance Military Readiness Act of 1995 (Public Law 
104-6; 109 Stat. 73).
    (b) New Authorization.--The appropriation provided in 
section 104 of such Act (109 Stat. 79) is hereby authorized.

SEC. 1008. AUTHORIZATION REDUCTIONS TO REFLECT SAVINGS FROM REVISED 
                    ECONOMIC ASSUMPTIONS.

    (a) Reduction.--The total amount authorized to be 
appropriated in titles I, II, and III of this Act is hereby 
reduced by $832,000,000 to reflect savings from revised 
economic assumptions. Such reduction shall be made from 
accounts in those titles as follows:
            Operation and Maintenance, Army, $54,000,000.
            Operation and Maintenance, Navy, $80,000,000.
            Operation and Maintenance, Marine Corps, 
        $9,000,000.
            Operation and Maintenance, Air Force, $51,000,000.
            Operation and Maintenance, Defense-Wide, 
        $36,000,000.
            Operation and Maintenance, Army Reserve, 
        $4,000,000.
            Operation and Maintenance, Navy Reserve, 
        $4,000,000.
            Operation and Maintenance, Marine Corps Reserve, 
        $1,000,000.
            Operation and Maintenance, Air Force Reserve, 
        $3,000,000.
            Operation and Maintenance, Army National Guard, 
        $7,000,000.
            Operation and Maintenance, Air National Guard, 
        $7,000,000.
            Drug Interdiction and Counter-Drug Activities, 
        Defense, $5,000,000.
            Environmental Restoration, Defense, $11,000,000.
            Overseas Humanitarian, Disaster, and Civic Aid, 
        $1,000,000.
            Former Soviet Union Threat Reduction, $2,000,000.
            Defense Health Program, $51,000,000.
            Aircraft Procurement, Army, $9,000,000.
            Missile Procurement, Army, $5,000,000.
            Procurement of Weapons and Tracked Combat Vehicles, 
        Army, $10,000,000.
            Procurement of Ammunition, Army, $6,000,000.
            Other Procurement, Army, $17,000,000.
            Aircraft Procurement, Navy, $29,000,000.
            Weapons Procurement, Navy, $13,000,000.
            Shipbuilding and Conversion, Navy, $42,000,000.
            Other Procurement, Navy, $18,000,000.
            Procurement, Marine Corps, $4,000,000.
            Aircraft Procurement, Air Force, $50,000,000.
            Missile Procurement, Air Force, $29,000,000.
            Other Procurement, Air Force, $45,000,000.
            Procurement, Defense-Wide, $16,000,000.
            Chemical Agents and Munitions Destruction, Defense, 
        $5,000,000.
            Research, Development, Test and Evaluation, Army, 
        $20,000,000.
            Research, Development, Test and Evaluation, Navy, 
        $50,000,000.
            Research, Development, Test and Evaluation, Air 
        Force, $79,000,000.
            Research, Development, Test and Evaluation, 
        Defense-Wide, $57,000,000.
            Research, Development, Test and Evaluation, 
        Defense, $2,000,000.
    (b) Reductions To Be Applied Proportionally.--Reductions 
under this section shall be applied proportionally to each 
budget activity, activity group, and subactivity group and to 
each program, project, and activity within each account.

                Subtitle B--Naval Vessels and Shipyards

SEC. 1011. IOWA CLASS BATTLESHIPS.

    (a) Return to Naval Vessel Register.--The Secretary of the 
Navy shall list on the Naval Vessel Register, and maintain on 
such register, at least two of the Iowa-class battleships that 
were stricken from the register in February 1995.
    (b) Support.--The Secretary shall retain the existing 
logistical support necessary for support of at least two 
operational Iowa class battleships in active service, including 
technical manuals, repair and replacement parts, and ordnance.
    (c) Selection of Ships.--The Secretary shall select for 
listing on the Naval Vessel Register under subsection (a) Iowa 
class battleships that are in good material condition and can 
provide adequate fire support for an amphibious assault.
    (d) Replacement Fire-Support Capability.--(1) If the 
Secretary of the Navy makes a certification described in 
paragraph (2), the requirements of subsections (a) and (b) 
shall terminate, effective 60 days after the date of the 
submission of such certification.
    (2) A certification referred to in paragraph (1) is a 
certification submitted by the Secretary of the Navy in writing 
to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives 
that the Navy has within the fleet an operational surface fire-
support capability that equals or exceeds the fire-support 
capability that the Iowa class battleships listed on the Naval 
Vessel Register pursuant to subsection (a) would, if in active 
service, be ableto provide for Marine Corps amphibious assaults 
and operations ashore.

SEC. 1012. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES.

    (a) Transfers by Grant.--The Secretary of the Navy is 
authorized to transfer on a grant basis under section 516 of 
the Foreign Assistance Act of 1961 (22 U.S.C. 2321j) frigates 
of the Oliver Hazard Perry class to other countries as follows:
            (1) To the Government of Bahrain, the guided 
        missile frigate Jack Williams (FFG 24).
            (2) To the Government of Egypt, the frigate 
        Copeland (FFG 25).
            (3) To the Government of Turkey, the frigates 
        Clifton Sprague (FFG 16) and Antrim (FFG 20).
    (b) Transfers by Lease or Sale.--The Secretary of the Navy 
is authorized to transfer on a lease basis under section 61 of 
the Arms Export Control Act (22 U.S.C. 2796) or on a sale basis 
under section 21 of the Arms Export Control Act (22 U.S.C. 
2761) frigates of the Oliver Hazard Perry class to other 
countries as follows:
            (1) To the Government of Egypt, the frigate Duncan 
        (FFG 10).
            (2) To the Government of Oman, the guided missile 
        frigate Mahlon S. Tisdale (FFG 27).
            (3) To the Government of Turkey, the frigate 
        Flatley (FFG 21).
            (4) To the Government of the United Arab Emirates, 
        the guided missile frigate Gallery (FFG 26).
    (c) Financing for Transfers by Lease.--Section 23 of the 
Arms Export Control Act (22 U.S.C. 2763) may be used to provide 
financing for any transfer by lease under subsection (b) in the 
same manner as if such transfer were a procurement by the 
recipient nation of a defense article.
    (d) Costs of Transfers.--Any expense incurred by the United 
States in connection with a transfer authorized by subsection 
(a) or (b) shall be charged to the recipient.
    (e) Expiration of Authority.--The authority to transfer a 
vessel under subsection (a) and under subsection (b) shall 
expire at the end of the two-year period beginning on the date 
of the enactment of this Act, except that a lease entered into 
during that period under any provision of subsection (b) may be 
renewed.
    (f) Repair and Refurbishment in United States Shipyards.--
The Secretary of the Navy shall require, as a condition of the 
transfer of a vessel under this section, that the country to 
which the vessel is transferred have such repair or 
refurbishment of the vessel as is needed, before the vessel 
joins the naval forces of that country, performed at a shipyard 
located in the United States, including a United States Navy 
shipyard.
    (g) Prohibition on Certain Transfers of Vessels on Grant 
Basis.--(1) Section 516 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2321j) is amended by adding at the end the following 
new subsection:
    ``(g) Prohibition on Certain Transfers of Vessels on Grant 
Basis.--(1) The President may not transfer on a grant basis 
under this section a vessel that is in excess of 3,000 tons or 
that is less than 20 years of age.
    ``(2) If the President determines that it is in the 
national security interests of the United States to transfer a 
particular vessel on a grant basis under this section, the 
President may request that Congress enact legislation exempting 
the transfer from the prohibition in paragraph (1).''.
    (2) The amendment made by paragraph (1) shall apply with 
respect to the transfer of a vessel on or after the date of the 
enactment of this Act (other than a vessel the transfer of 
which is authorized by subsection (a) or by law before the date 
of the enactment of this Act).

SEC. 1013. CONTRACT OPTIONS FOR LMSR VESSELS.

    (a) Findings.--Congress makes the following findings:
            (1) A requirement for the Department of the Navy to 
        acquire 19 large, medium-speed, roll-on/roll-off (LMSR) 
        vessels was established by the Secretary of Defense in 
        the Mobility Requirements Study conducted after the 
        Persian Gulf War pursuant to section 909 of the 
        National Defense Authorization Act for Fiscal Year 1991 
        (Public Law 101-510; 104 Stat. 1623) and was 
        revalidated by the Secretary of Defense in the report 
        entitled ``Mobility Requirements Study Bottom-Up Review 
        Update'', submitted to Congress in April 1995.
            (2) The Strategic Sealift Program is a vital 
        element of the national military strategy calling for 
        the Nation to be able to fight and win two nearly 
        simultaneous major regional contingencies.
            (3) The Secretary of the Navy has entered into 
        contracts with shipyards covering acquisition of a 
        total of 17 such LMSR vessels, of which five are vessel 
        conversions and 12 are new construction vessels. Under 
        those contracts, the Secretary has placed orders for 
        the acquisition of 11 vessels and has options for the 
        acquisition of six more, all of which would be new 
        construction vessels. The options allow the Secretary 
        to place orders for one vessel to be constructed at 
        each of two shipyards for award before December 31, 
        1995, December 31, 1996, and December 31, 1997, 
        respectively.
            (4) Acquisition of an additional two such LMSR 
        vessels, for a total of 19 vessels (the requirement 
        described in paragraph (1)) would contribute to 
        preservation of the industrial base of United States 
        shipyards capable of building auxiliary and sealift 
        vessels.
    (b) Sense of Congress.--It is the sense of Congress that 
the Secretary of the Navy should plan for, and budget to 
provide for, the acquisition as soon as possible of a total of 
19 large, medium-speed, roll-on/roll-off (LMSR) vessels (the 
number determined to be required in the Mobility Requirements 
Study referred to in subsection (a)(1)), rather than only 17 
such vessels (the number of vessels under contract as of May 
1995).
    (c) Additional New Construction Contract Option.--The 
Secretary of the Navy should negotiate with each of the two 
shipyards holding new construction contracts referred to in 
subsection (a)(3) (Department of the Navy contracts numbered 
N00024-93-C-2203 and N00024-93-C-2205) for an option under each 
such contract for construction of one additional such LMSR 
vessel, with such option to be available to the Secretary for 
exercise during 1995, 1996, or 1997, subject to the 
availability of funds authorized and appropriated for such 
purpose. Nothing in this subsection shall be construed to 
preclude the Secretary of the Navy from competing the award of 
the two options between the two shipyards holding new 
construction contracts referred to in subsection (a)(3).
    (d) Report.--The Secretary of the Navy shall submit to the 
congressional defense committees, by March 31, 1996, a report 
stating the intentions of the Secretary regarding the 
acquisition of options for the construction of two additional 
LMSR vessels as described in subsection (c).

SEC. 1014. NATIONAL DEFENSE RESERVE FLEET.

    (a) Availability of National Defense Sealift Fund.--Section 
2218 of title 10, United States Code, is amended--
            (1) in subsection (c)(1)--
                    (A) by striking out ``only for--'' in the 
                matter preceding subparagraph (A) and inserting 
                in lieu thereof ``only for the following 
                purposes:'';
                    (B) by capitalizing the first letter of the 
                first word of subparagraphs (A), (B), (C), and 
                (D);
                    (C) by striking out the semicolon at the 
                end of subparagraphs (A) and (B) and inserting 
                in lieu thereof a period;
                    (D) by striking out ``; and'' at the end of 
                subparagraph (C) and inserting in lieu thereof 
                a period; and
                    (E) by adding at the end the following new 
                subparagraph:
            ``(E) Expenses for maintaining the National Defense 
        Reserve Fleet under section 11 of the Merchant Ship 
        Sales Act of 1946 (50 U.S.C. App. 1744), and for the 
        costs of acquisition of vessels for, and alteration and 
        conversion of vessels in (or to be placed in), the 
        fleet, but only for vessels built in United States 
        shipyards.''; and
            (2) in subsection (i), by inserting ``(other than 
        subsection (c)(1)(E))'' after ``Nothing in this 
        section''.
    (b) Clarification of Exemption of NDRF Vessels From 
Retrofit Requirement.--Section 11 of the Merchant Ship Sales 
Act of 1946 (50 U.S.C. App. 1744) is amended by adding at the 
end the following new subsection:
    ``(e) Vessels in the National Defense Reserve Fleet are 
exempt from the provisions of section 3703a of title 46, United 
States Code.''.
    (c) Authority To Use National Defense Sealift Fund To 
Convert Two Vessels.--Of the amount authorized to be 
appropriated in section 302 for fiscal year 1996 for the 
National Defense Sealift Fund under section 2218 of title 10, 
United States Code, not more than $20,000,000 shall be 
available for conversion work on the following two roll-on/
roll-off vessels, which were acquired by the Maritime 
Administration during fiscal year 1995:
            (1) M/V Cape Knox (ON-1036323).
            (2) M/V Cape Kennedy (ON-1036324).

SEC. 1015. NAVAL SALVAGE FACILITIES.

    Chapter 637 of title 10, United States Code, is amended to 
read as follows:

                   ``CHAPTER 637--SALVAGE FACILITIES

  ``Sec.
``7361. Authority to provide for necessary salvage facilities.
``7362. Acquisition and transfer of vessels and equipment.
``7363. Settlement of claims.
``7364. Disposition of receipts.

``Sec. 7361. Authority to provide for necessary salvage facilities

    ``(a) Authority.--The Secretary of the Navy may provide, by 
contract or otherwise, necessary salvage facilities for public 
and private vessels.
    ``(b) Coordination With Secretary of Transportation.--The 
Secretary shall submit to the Secretary of Transportation for 
comment each proposed contract for salvage facilities that 
affects the interests of the Department of Transportation.
    ``(c) Limitation.--The Secretary of the Navy may enter into 
a term contract under subsection (a) only if the Secretary 
determines that available commercial salvage facilities are 
inadequate to meet the requirements of national defense.
    ``(d) Public Notice.--The Secretary may not enter into a 
contract under subsection (a) until the Secretary has provided 
public notice of the intent to enter into such a contract.

``Sec. 7362. Acquisition and transfer of vessels and equipment

    ``(a) Authority.--The Secretary of the Navy may acquire or 
transfer for operation by private salvage companies such 
vessels and equipment as the Secretary considers necessary.
    ``(b) Agreement on Use.--Before any salvage vessel or 
salvage gear is transferred by the Secretary to a private 
party, the private party must agree in writing with the 
Secretary that the vessel or gear will be used to support 
organized offshore salvage facilities for a period of as many 
years as the Secretary considers appropriate.
    ``(c) Reference to Authority To Advance Funds for Immediate 
Salvage Operations.--For authority for the Secretary of the 
Navy to advance to private salvage companies such funds as the 
Secretary considers necessary to provide for the immediate 
financing of salvage operations, see section 2307(g)(2) of this 
title.

``Sec. 7363. Settlement of claims

    ``The Secretary of the Navy may settle any claim by the 
United States for salvage services rendered by the Department 
of the Navy and may receive payment of any such claim.

``Sec. 7364. Disposition of receipts

    ``Amounts received under this chapter shall be credited to 
appropriations for maintaining naval salvage facilities. 
However, any amount received under this chapter in any fiscal 
year in excess of naval salvage costs incurred by the Navy 
during that fiscal year shall be deposited into the general 
fund of the Treasury.''.

SEC. 1016. VESSELS SUBJECT TO REPAIR UNDER PHASED MAINTENANCE 
                    CONTRACTS.

    (a) In General.--The Secretary of the Navy shall ensure 
that any vessel that is covered by the contract referred to in 
subsection (b) remains covered by that contract, regardless of 
the operating command to which the vessel is subsequently 
assigned, unless the vessel is taken out of service for the 
Department of the Navy.
    (b) Covered Contract.--The contract referred to in 
subsection (a) is the contract entered into before the date of 
the enactment of this Act for the phased maintenance of AE 
class ships.

SEC. 1017. CLARIFICATION OF REQUIREMENTS RELATING TO REPAIRS OF 
                    VESSELS.

    Section 7310(a) of title 10, United States Code, is amended 
by inserting ``or Guam'' after ``the United States'' the second 
place it appears.

SEC. 1018. SENSE OF CONGRESS CONCERNING NAMING OF AMPHIBIOUS SHIPS.

    It is the sense of Congress that the Secretary of the 
Navy--
            (1) should name the vessel to be designated LHD-7 
        as the U.S.S. Iwo Jima; and
            (2) should name the vessel to be designated LPD-17, 
        and each subsequent ship of the LPD-17 class, after a 
        Marine Corps battle or a member of the Marine Corps.

SEC. 1019. SENSE OF CONGRESS CONCERNING NAMING OF NAVAL VESSEL.

    It is the sense of Congress that the Secretary of the Navy 
should name an appropriate ship of the United States Navy the 
U.S.S. Joseph Vittori, in honor of Marine Corporal Joseph 
Vittori (1929-1951) of Beverly, Massachusetts, who was 
posthumously awarded the Medal of Honor for actions against the 
enemy in Korea on September 15-16, 1951.

SEC. 1020. TRANSFER OF RIVERINE PATROL CRAFT.

    (a) Authority To Transfer Vessel.--Notwithstanding 
subsections (a) and (d) of section 7306 of title 10, United 
States Code, but subject to subsections (b) and (c) of that 
section, the Secretary of the Navy may transfer a vessel 
described in subsection (b) to Tidewater Community College, 
Portsmouth, Virginia, for scientific and educational purposes.
    (b) Vessel.--The authority under subsection (a) applies in 
the case of a riverine patrol craft of the U.S.S. Swift class.
    (c) Limitation.--The transfer authorized by subsection (a) 
may be made only if the Secretary determines that the vessel to 
be transferred is of no further use to the United States for 
national security purposes.
    (d) Terms and Conditions.--The Secretary may require such 
terms and conditions in connection with the transfer authorized 
by this section as the Secretary considers appropriate.

                  Subtitle C--Counter-Drug Activities

SEC. 1021. REVISION AND CLARIFICATION OF AUTHORITY FOR FEDERAL SUPPORT 
                    OF DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES OF 
                    THE NATIONAL GUARD.

    (a) Funding Assistance Authorized.--Subsection (a) of 
section 112 of title 32, United States Code, is amended to read 
as follows:
    ``(a) Funding Assistance.--The Secretary of Defense may 
provide funds to the Governor of a State who submits to the 
Secretary a State drug interdiction and counter-drug activities 
plan satisfying the requirements of subsection (c). Such funds 
shall be used for--
            ``(1) the pay, allowances, clothing, subsistence, 
        gratuities, travel, and related expenses, as authorized 
        by State law, of personnel of the National Guard of 
        that State used, while not in Federal service, for the 
        purpose of drug interdiction and counter-drug 
        activities;
            ``(2) the operation and maintenance of the 
        equipment and facilities of the National Guard of that 
        State used for the purpose of drug interdiction and 
        counter-drug activities; and
            ``(3) the procurement of services and leasing of 
        equipment for the National Guard of that State used for 
        the purpose of drug interdiction and counter-drug 
        activities.''.
    (b) Reorganization of Section.--Such section is further 
amended--
            (1) by redesignating subsection (f) as subsection 
        (h);
            (2) by redesignating subsection (d) as subsection 
        (g) and transferring that subsection to appear before 
        subsection (h), as redesignated by paragraph (1); and
            (3) by redesignating subsections (b) and (c) as 
        subsections (c) and (d), respectively.
    (c) State Drug Interdiction and Counter-drug Activities 
Plan.--Subsection (c) of such section, as redesignated by 
subsection (b)(3), is amended--
            (1) in the matter preceding paragraph (1), by 
        striking out ``A plan referred to in subsection (a)'' 
        and inserting in lieu thereof ``A State drug 
        interdiction and counter-drug activities plan'';
            (2) by striking out ``and'' at the end of paragraph 
        (2); and
            (3) in paragraph (3)--
                    (A) by striking out ``annual training'' and 
                inserting in lieu thereof ``training'';
                    (B) by striking out the period at the end 
                and inserting in lieu thereof a semicolon; and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(4) include a certification by the Attorney 
        General of the State (or, in the case of a State with 
        no position of Attorney General, a civilian official of 
        the State equivalent to a State attorney general) that 
        the use of the National Guard of the State for the 
        activities proposed under the plan is authorized by, 
        and is consistent with, State law; and
            ``(5) certify that the Governor of the State or a 
        civilian law enforcement official of the State 
        designated by the Governor has determined that any 
        activities included in the plan that are carried out in 
        conjunction with Federal law enforcement agencies serve 
        a State law enforcement purpose.''.
    (d) Examination of State Plan.--Subsection (d) of such 
section, as redesignated by subsection (b)(3), is amended--
            (1) in paragraph (1)--
                    (A) by striking out ``subsection (b)'' and 
                inserting in lieu thereof ``subsection (c)''; 
                and
                    (B) by inserting after ``Before funds are 
                provided to the Governor of a State under this 
                section'' the following: ``and before members 
                of the National Guard of that State are ordered 
                to full-time National Guard duty as authorized 
                in subsection (b)''; and
            (2) in paragraph (3)--
                    (A) in subparagraph (A), by striking out 
                ``subsection (b)'' and inserting in lieu 
                thereof ``subsection (c)''; and
                    (B) by striking out subparagraph (B) and 
                inserting in lieu thereof the following:
            ``(B) pursuant to the plan submitted for a previous 
        fiscal year, funds were provided to the State in 
        accordance with subsection (a) or personnel of the 
        National Guard of the State were ordered to perform 
        full-time National Guard duty in accordance with 
        subsection (b).''.
    (e) Use of Personnel Performing Full-Time National Guard 
Duty.--Such section is further amended by inserting after 
subsection (a) the following new subsection (b):
    ``(b) Use of Personnel Performing Full-Time National Guard 
Duty.--Under regulations prescribed by the Secretary of 
Defense, personnel of the National Guard of a State may, in 
accordance with the State drug interdiction and counter-drug 
activities plan referred to in subsection (c), be ordered to 
perform full-time National Guard duty under section 502(f) of 
this title for the purpose of carrying out drug interdiction 
and counter-drug activities.''.
    (f) End Strength Limitation.--Such section is further 
amended by inserting after subsection (e) the following new 
subsection (f):
    ``(f) End Strength Limitation.--(1) Except as provided in 
paragraph (2), at the end of a fiscal year there may not be 
more than 4000 members of the National Guard--
            ``(A) on full-time National Guard duty under 
        section 502(f) of this title to perform drug 
        interdiction or counter-drug activities pursuant to an 
        order to duty for a period of more than 180 days; or
            ``(B) on duty under State authority to perform drug 
        interdiction or counter-drug activities pursuant to an 
        order to duty for a period of more than 180 days with 
        State pay and allowances being reimbursed with funds 
        provided under subsection (a)(1).
    ``(2) The Secretary of Defense may increase the end 
strength authorized under paragraph (1) by not more than 20 
percent for any fiscal year if the Secretary determines that 
such an increase is necessary in the national security 
interests of the United States.''.
    (g) Definitions.--Subsection (h) of such section, as 
redesignated by subsection (b)(1), is amended by striking out 
paragraph (1) and inserting in lieu thereof the following:
            ``(1) The term `drug interdiction and counter-drug 
        activities', with respect to the National Guard of a 
        State, means the use of National Guard personnel in 
        drug interdiction and counter-drug law enforcement 
        activities authorized by the law of the State and 
        requested by the Governor of the State.''.
    (h) Technical Amendments.--Subsection (e) of such section 
is amended--
            (1) in paragraph (1), by striking out ``sections 
        517 and 524'' and inserting in lieu thereof ``sections 
        12011 and 12012''; and
            (2) in paragraph (2), by striking out ``the 
        Committees on Armed Services of the Senate and House of 
        Representatives'' and inserting in lieu thereof ``the 
        Committee on Armed Services of the Senate and the 
        Committee on National Security of the House of 
        Representatives''.

                     Subtitle D--Civilian Personnel

SEC. 1031. MANAGEMENT OF DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL.

    Section 129 of title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking out ``man-year constraint 
                or limitation'' and inserting in lieu thereof 
                ``constraint or limitation in terms of man 
                years, end strength, full-time equivalent 
                positions, or maximum number of employees''; 
                and
                    (B) by adding at the end the following new 
                sentence: ``The Secretary of Defense and the 
                Secretaries of the military departments may not 
                be required to make a reduction in the number 
                of full-time equivalent positions in the 
                Department of Defense unless such reduction is 
                necessary due to a reduction in funds available 
                to the Department or is required under a law 
                that is enacted after the date of the enactment 
                of the National Defense Authorization Act for 
                Fiscal Year 1996 and that refers specifically 
                to this subsection.'';
            (2) in subsection (b)(2), by striking out ``any 
        end-strength'' and inserting in lieu thereof ``any 
        constraint orlimitation in terms of man years, end 
strength, full-time equivalent positions, or maximum number of 
employees''; and
            (3) by adding at the end the following new 
        subsection:
    ``(d) With respect to each budget activity within an 
appropriation for a fiscal year for operations and maintenance, 
the Secretary of Defense shall ensure that there are employed 
during that fiscal year employees in the number and with the 
combination of skills and qualifications that are necessary to 
carry out the functions within that budget activity for which 
funds are provided for that fiscal year.''.

SEC. 1032. CONVERSION OF MILITARY POSITIONS TO CIVILIAN POSITIONS.

    (a) Conversion Requirement.--(1) By September 30, 1997, the 
Secretary of Defense shall convert at least 10,000 military 
positions to civilian positions.
    (2) At least 3,000 of the military positions converted to 
satisfy the requirement of paragraph (1) shall be converted to 
civilian positions not later than September 30, 1996.
    (3) In this subsection:
            (A) The term ``military position'' means a position 
        that, as of the date of the enactment of this Act, is 
        authorized to be filled by a member of the Armed Forces 
        on active duty.
            (B) The term ``civilian position'' means a position 
        that is required to be filled by a civilian employee of 
        the Department of Defense.
    (b) Implementation Plan.--Not later than March 31, 1996, 
the Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a plan for the implementation 
of subsection (a).

SEC. 1033. ELIMINATION OF 120-DAY LIMITATION ON DETAILS OF CERTAIN 
                    EMPLOYEES.

    (a) Elimination of Limitation.--Subsection (b) of section 
3341 of title 5, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following:
    ``(2) The 120-day limitation in paragraph (1) for details 
and renewals of details does not apply to the Department of 
Defense in the case of a detail--
            ``(A) made in connection with the closure or 
        realignment of a military installation pursuant to a 
        base closure law or an organizational restructuring of 
        the Department as part of a reduction in the size of 
        the armed forces or the civilian workforce of the 
        Department; and
            ``(B) in which the position to which the employee 
        is detailed is eliminated on or before the date of the 
        closure, realignment, or restructuring.
    ``(c) For purposes of this section--
            ``(1) the term `base closure law' means--
                    ``(A) section 2687 of title 10;
                    ``(B) title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act 
                (10 U.S.C. 2687 note); and
                    ``(C) the Defense Base Closure and 
                Realignment Act of 1990 (10 U.S.C. 2687 note); 
                and
            ``(2) the term `military installation'--
                    ``(A) in the case of an installation 
                covered by section 2687 of title 10, has the 
                meaning given such term in subsection (e)(1) of 
                such section;
                    ``(B) in the case of an installation 
                covered by the Act referred to in subparagraph 
                (B) of paragraph (1), has the meaning given 
                such term in section 209(6) of such Act; and
                    ``(C) in the case of an installation 
                covered by the Act referred to in subparagraph 
                (C) of that paragraph, has the meaning given 
                such term in section 2910(4) of such Act.''.
    (b) Applicability.--The amendments made by subsection (a) 
apply to details made before the date of the enactment of this 
Act but still in effect on that date and details made on or 
after that date.

SEC. 1034. AUTHORITY FOR CIVILIAN EMPLOYEES OF DEPARTMENT OF DEFENSE TO 
                    PARTICIPATE VOLUNTARILY IN REDUCTIONS IN FORCE.

    Section 3502 of title 5, United States Code, is amended by 
adding at the end the following:
    ``(f)(1) The Secretary of Defense or the Secretary of a 
military department may--
            ``(A) release in a reduction in force an employee 
        who volunteers for the release even though the employee 
        is not otherwise subject to release in the reduction in 
        force under the criteria applicable under the other 
        provisions of this section; and
            ``(B) for each employee voluntarily released in the 
        reduction in force under subparagraph (A), retain an 
        employee in a similar position who would otherwise be 
        released in the reduction in force under such criteria.
    ``(2) A voluntary release of an employee in a reduction in 
force pursuant to paragraph (1) shall be treated as an 
involuntary release in the reduction in force.
    ``(3) An employee with critical knowledge and skills (as 
defined by the Secretary concerned) may not participate in a 
voluntary release under paragraph (1) if the Secretary 
concerned determines that such participation would impair the 
performance of the mission of the Department of Defense or the 
military department concerned.
    ``(4) The regulations prescribed under this section shall 
incorporate the authority provided in this subsection.
    ``(5) The authority under paragraph (1) may not be 
exercised after September 30, 1996.''.

SEC. 1035. AUTHORITY TO PAY SEVERANCE PAYMENTS IN LUMP SUMS.

    Section 5595 of title 5, United States Code, is amended by 
adding at the end the following:
    ``(i)(1) In the case of an employee of the Department of 
Defense who is entitled to severance pay under this section, 
the Secretary of Defense or the Secretary of the military 
department concerned may, upon application by the employee, pay 
thetotal amount of the severance pay to the employee in one 
lump sum.
    ``(2)(A) If an employee paid severance pay in a lump sum 
under this subsection is reemployed by the Government of the 
United States or the government of the District of Columbia at 
such time that, had the employee been paid severance pay in 
regular pay periods under subsection (b), the payments of such 
pay would have been discontinued under subsection (d) upon such 
reemployment, the employee shall repay to the Department of 
Defense (for the military department that formerly employed the 
employee, if applicable) an amount equal to the amount of 
severance pay to which the employee was entitled under this 
section that would not have been paid to the employee under 
subsection (d) by reason of such reemployment.
    ``(B) The period of service represented by an amount of 
severance pay repaid by an employee under subparagraph (A) 
shall be considered service for which severance pay has not 
been received by the employee under this section.
    ``(C) Amounts repaid to an agency under this paragraph 
shall be credited to the appropriation available for the pay of 
employees of the agency for the fiscal year in which received. 
Amounts so credited shall be merged with, and shall be 
available for the same purposes and the same period as, the 
other funds in that appropriation.
    ``(3) If an employee fails to repay to an agency an amount 
required to be repaid under paragraph (2)(A), that amount is 
recoverable from the employee as a debt due the United States.
    ``(4) This subsection applies with respect to severance pay 
payable under this section for separations taking effect on or 
after the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 1996 and before October 1, 
1999.''.

SEC. 1036. CONTINUED HEALTH INSURANCE COVERAGE.

    Section 8905a(d)(4) of title 5, United States Code, is 
amended--
            (1) in subparagraph (A), by inserting ``, or a 
        voluntary separation from a surplus position,'' after 
        ``an involuntary separation from a position''; and
            (2) by adding at the end the following new 
        subparagraph:
    ``(C) For the purpose of this paragraph, `surplus position' 
means a position which is identified in pre-reduction-in-force 
planning as no longer required, and which is expected to be 
eliminated under formal reduction-in-force procedures.''.

SEC. 1037. REVISION OF AUTHORITY FOR APPOINTMENTS OF INVOLUNTARILY 
                    SEPARATED MILITARY RESERVE TECHNICIANS.

    (a) Revision of Authority.--Section 3329 of title 5, United 
States Code, as added by section 544 of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102-484; 106 
Stat. 2415), is amended--
            (1) in subsection (b), by striking out ``be 
        offered'' and inserting in lieu thereof ``be provided 
        placement consideration in a position described in 
        subsection (c) through a priority placement program of 
        the Department of Defense''; and
            (2) by striking out subsection (c) and inserting in 
        lieu thereof the following new subsection (c):
    ``(c)(1) The position for which placement consideration 
shall be provided to a former military technician under 
subsection (b) shall be a position--
            ``(A) in either the competitive service or the 
        excepted service;
            ``(B) within the Department of Defense; and
            ``(C) in which the person is qualified to serve, 
        taking into consideration whether the employee in that 
        position is required to be a member of a reserve 
        component of the armed forces as a condition of 
        employment.
    ``(2) To the maximum extent practicable, the position shall 
also be in a pay grade or other pay classification sufficient 
to ensure that the rate of basic pay of the former military 
technician, upon appointment to the position, is not less than 
the rate of basic pay last received by the former military 
technician for technician service before separation.''.
    (b) Technical and Clerical Amendments.--(1) The section 
3329 of title 5, United States Code, that was added by section 
4431 of the National Defense Authorization Act for Fiscal Year 
1993 (Public Law 102-484; 106 Stat. 2719) is redesignated as 
section 3330 of such title.
    (2) The table of sections at the beginning of chapter 33 of 
such title is amended by striking out the item relating to 
section 3329, as added by section 4431(b) of such Act (106 
Stat. 2720), and inserting in lieu thereof the following new 
item:

``3330. Government-wide list of vacant positions.''.

SEC. 1038. WEARING OF UNIFORM BY NATIONAL GUARD TECHNICIANS.

    (a) Requirement.--Section 709(b) of title 32, United States 
Code, is amended to read as follows:
    ``(b) Except as prescribed by the Secretary concerned, a 
technician employed under subsection (a) shall, while so 
employed--
            ``(1) be a member of the National Guard;
            ``(2) hold the military grade specified by the 
        Secretary concerned for that position; and
            ``(3) wear the uniform appropriate for the member's 
        grade and component of the armed forces while 
        performing duties as a technician.''.
    (b) Uniform Allowances for Officers.--Section 417 of title 
37, United States Code, is amended by adding at the end the 
following:
    ``(d)(1) For purposes of sections 415 and 416 of this 
title, a period for which an officer of an armed force, while 
employed as a National Guard technician, is required to wear a 
uniform under section 709(b) of title 32 shall be treated as a 
period of active duty (other than for training).
    ``(2) A uniform allowance may not be paid, and uniforms may 
not be furnished, to an officer under section 1593 of title 10 
or section 5901 of title 5 for a period of employmentreferred 
to in paragraph (1) for which an officer is paid a uniform allowance 
under section 415 or 416 of this title.''.
    (c) Clothing or Allowances for Enlisted Members.--Section 
418 of title 37, United States Code, is amended--
            (1) by inserting ``(a)'' before ``The President''; 
        and
            (2) by adding at the end the following:
    ``(b) In determining the quantity and kind of clothing or 
allowances to be furnished pursuant to regulations prescribed 
under this section to persons employed as National Guard 
technicians under section 709 of title 32, the President shall 
take into account the requirement under subsection (b) of such 
section for such persons to wear a uniform.
    ``(c) A uniform allowance may not be paid, and uniforms may 
not be furnished, under section 1593 of title 10 or section 
5901 of title 5 to a person referred to in subsection (b) for a 
period of employment referred to in that subsection for which a 
uniform allowance is paid under section 415 or 416 of this 
title.''.

SEC. 1039. MILITARY LEAVE FOR MILITARY RESERVE TECHNICIANS FOR CERTAIN 
                    DUTY OVERSEAS.

    Section 6323 of title 5, United States Code, is amended by 
adding at the end the following new subsection:
    ``(d)(1) A military reserve technician described in section 
8401(30) is entitled at such person's request to leave without 
loss of, or reduction in, pay, leave to which such person is 
otherwise entitled, credit for time or service, or performance 
or efficiency rating for each day, not to exceed 44 workdays in 
a calendar year, in which such person is on active duty without 
pay, as authorized pursuant to section 12315 of title 10, under 
section 12301(b) or 12301(d) of title 10 (other than active 
duty during a war or national emergency declared by the 
President or Congress) for participation in noncombat 
operations outside the United States, its territories and 
possessions.
    ``(2) An employee who requests annual leave or compensatory 
time to which the employee is otherwise entitled, for a period 
during which the employee would have been entitled upon request 
to leave under this subsection, may be granted such annual 
leave or compensatory time without regard to this section or 
section 5519.''.

SEC. 1040. PERSONNEL ACTIONS INVOLVING EMPLOYEES OF NONAPPROPRIATED 
                    FUND INSTRUMENTALITIES.

    (a) Clarification of Definition of Nonappropriated Fund 
Instrumentality Employee.--Subsection (a)(1) of section 1587 of 
title 10, United States Code, is amended by adding at the end 
the following new sentence: ``Such term includes a civilian 
employee of a support organization within the Department of 
Defense or a military department, such as the Defense Finance 
and Accounting Service, who is paid from nonappropriated funds 
on account of the nature of the employee's duties.''.
    (b) Direct Reporting of Violations.--Subsection (e) of such 
section is amended in the second sentence by inserting before 
the period the following: ``and to permit the reporting of 
alleged violations of subsection (b) directly to the Inspector 
General of the Department of Defense''.
    (c) Technical Amendment.--Subsection (a)(1) of such section 
is further amended by striking out ``Navy Resale and Services 
Support Office'' and inserting in lieu thereof ``Navy Exchange 
Service Command''.
    (d) Clerical Amendments.--(1) The heading of such section 
is amended to read as follows:

``Sec. 1587. Employees of nonappropriated fund instrumentalities: 
                    reprisals''.

    (2) The item relating to such section in the table of 
sections at the beginning of chapter 81 of such title is 
amended to read as follows:

``1587. Employees of nonappropriated fund instrumentalities: 
          reprisals.''.

SEC. 1041. COVERAGE OF NONAPPROPRIATED FUND EMPLOYEES UNDER AUTHORITY 
                    FOR FLEXIBLE AND COMPRESSED WORK SCHEDULES.

    Paragraph (2) of section 6121 of title 5, United States 
Code, is amended to read as follows:
            ``(2) `employee' has the meaning given the term in 
        subsection (a) of section 2105 of this title, except 
        that such term also includes an employee described in 
        subsection (c) of that section;''.

SEC. 1042. LIMITATION ON PROVISION OF OVERSEAS LIVING QUARTERS 
                    ALLOWANCES FOR NONAPPROPRIATED FUND INSTRUMENTALITY 
                    EMPLOYEES.

    (a) Conforming Allowance to Allowances for Other Civilian 
Employees.--Subject to subsection (b), an overseas living 
quarters allowance paid from nonappropriated funds and provided 
to a nonappropriated fund instrumentality employee after the 
date of the enactment of this Act may not exceed the amount of 
a quarters allowance provided under subchapter III of chapter 
59 of title 5 to a similarly situated civilian employee of the 
Department of Defense paid from appropriated funds.
    (b) Application to Certain Current Employees.--In the case 
of a nonappropriated fund instrumentality employee who, as of 
the date of the enactment of this Act, receives an overseas 
living quarters allowance under any other authority, subsection 
(a) shall apply to such employee only after the earlier of--
            (1) September 30, 1997; or
            (2) the date on which the employee otherwise ceases 
        to be eligible for such an allowance under such other 
        authority.
    (c) Nonappropriated Fund Instrumentality Employee 
Defined.--For purposes of this section, the term 
``nonappropriated fund instrumentality employee'' has the 
meaning given such term in section 1587(a)(1) of title 10, 
United States Code.

SEC. 1043. ELECTIONS RELATING TO RETIREMENT COVERAGE.

    (a) In General.--
            (1) Civil service retirement system.--Section 
        8347(q) of title 5, United States Code, is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``of the Department 
                        of Defense or the Coast Guard'' in the 
                        matter before subparagraph (A); and
                            (ii) by striking ``3 days'' and 
                        inserting ``1 year''; and
                    (B) in paragraph (2)(C)--
                            (i) by striking ``3 days'' and 
                        inserting ``1 year''; and
                            (ii) by striking ``in the 
                        Department of Defense or the Coast 
                        Guard, respectively,''.
            (2) Federal employees' retirement system.--Section 
        8461(n) of title 5, United States Code, is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``of the Department 
                        of Defense or the Coast Guard'' in the 
                        matter before subparagraph (A); and
                            (ii) by striking ``3 days'' and 
                        inserting ``1 year''; and
                    (B) in paragraph (2)(C)--
                            (i) by striking ``3 days'' and 
                        inserting ``1 year''; and
                            (ii) by striking ``in the 
                        Department of Defense or the Coast 
                        Guard, respectively,''.
    (b) Regulations.--Not later than 6 months after the date of 
the enactment of this Act, the Office of Personnel Management 
(and each of the other administrative authorities, within the 
meaning of subsection (c)(2)(C)(iii)) shall prescribe any 
regulations (or make any modifications in existing regulations) 
necessary to carry out this section and the amendments made by 
this section, including regulations to provide for the 
notification of individuals who may be affected by the 
enactment of this section. All regulations (and modifications 
to regulations) under the preceding sentence shall take effect 
on the same date.
    (c) Applicability; Related Provisions.--
            (1) Prospective rules.--Except as otherwise 
        provided in this subsection, the amendments made by 
        this section shall apply with respect to moves 
        occurring on or after the effective date of the 
        regulations under subsection (b). Moves occurring on or 
        after the date of the enactment of this Act and before 
        the effective date of such regulations shall be subject 
        to applicable provisions of title 5, United States 
        Code, disregarding the amendments made by this section, 
        except that any individual making an election pursuant 
        to this sentence shall be ineligible to make an 
        election otherwise allowable under paragraph (2).
            (2) Retroactive rules.--
                    (A) In general.--The regulations under 
                subsection (b) shall include provisions for the 
                application of sections 8347(q) and 8461(n) of 
                title 5, United States Code, as amended by this 
                section, with respect to any individual who, at 
                any time after December 31, 1965, and before 
                the effective date of such regulations, moved 
                between positions in circumstances that would 
                have qualified such individual to make an 
                election under the provisions of such section 
                8347(q) or 8461(n), as so amended, if such 
                provisions had then been in effect.
                    (B) Deadline; related provisions.--An 
                election pursuant to this paragraph--
                            (i) shall be made within 1 year 
                        after the effective date of the 
                        regulations under subsection (b), and
                            (ii) shall have the same force and 
                        effect as if it had been timely made at 
                        the time of the move,

                except that no such election may be made by any 
                individual--
                            (I) who has previously made, or had 
                        an opportunity to make, an election 
                        under section 8347(q) or 8461(n) of 
                        title 5, United States Code (as in 
                        effect before being amended by this 
                        section); however, this subclause shall 
                        not be considered to render an 
                        individual ineligible, based on an 
                        opportunity arising out of a move 
                        occurring during the period described 
                        in the second sentence of paragraph 
                        (1), if no election has in fact been 
                        made by such individual based on such 
                        move;
                            (II) who has not, since the move on 
                        which eligibility for the election is 
                        based, remained continuously subject 
                        (disregarding any break in service of 
                        less than 3 days) to CSRS or FERS or 
                        both seriatim (if the move was from a 
                        NAFI position) or any retirement system 
                        (or 2 or more such systems seriatim) 
                        established for employees described in 
                        section 2105(c) of such title (if the 
                        move was to a NAFI position); or
                            (III) if such election would be 
                        based on a move to the Civil Service 
                        Retirement System from a retirement 
                        system established for employees 
                        described in section 2105(c) of such 
                        title.
                    (C) Transfers of contributions.--
                            (i) In general.--If an individual 
                        makes an election under this paragraph 
                        to be transferred back to a retirement 
                        system in which such individual 
                        previously participated (in this 
                        section referred to as the ``previous 
                        system''), all individual contributions 
                        (including interest) and Government 
                        contributions to the retirement system 
                        in which such individual is then 
                        currently participating (in this 
                        section referred to as the ``current 
                        system''), excluding those made to the 
                        Thrift Savings Plan or any other 
                        defined contribution plan, which are 
                        attributable to periods of service 
                        performed since the move on which the 
                        election is based, shall be paid to the 
                        fund, account, or other repository for 
                        contributions made under the previous 
                        system. For purposes of this section, 
                        the term ``current system'' shall be 
                        considered also to include any 
                        retirement system (besides the one in 
                        which the individual is participating 
                        at the time of making the election) in 
                        which such individual previously 
                        participated since the move on which 
                        the election is based.
                            (ii) Condition subsequent relating 
                        to repayment of lump-sum credit.--In 
                        the case of an individual who has 
                        received such individual's lump-sum 
                        credit (within the meaning of section 
                        8401(19) of title 5, United States 
                        Code, or a similar payment) from such 
                        individual's previous system, the 
                        payment described in clause (i) shall 
                        not be made (and the election to which 
                        it relates shall be ineffective) unless 
                        such lump-sum credit is redeposited or 
                        otherwise paid at such time and in such 
                        manner as shall be required under 
                        applicable regulations. Regulations to 
                        carry out this clause shall include 
                        provisions for the computation of 
                        interest (consistent with section 
                        8334(e) (2) and (3) of title 5, United 
                        States Code), if no provisions for such 
                        computation otherwise exist.
                            (iii) Condition subsequent relating 
                        to deficiency in payments relative to 
                        amounts needed to ensure that benefits 
                        are fully funded.--
                                    (I) In general.--Except as 
                                provided in subclause (II), the 
                                payment described in clause (i) 
                                shall not be made (and the 
                                election to which it relates 
                                shall be ineffective) if the 
                                actuarial present value of the 
                                future benefits that would be 
                                payable under the previous 
                                system with respect to service 
                                performed by such individual 
                                after the move on which the 
                                election under this paragraph 
                                is based and before the 
                                effective date of the election, 
                                exceeds the total amounts 
                                required to be transferred to 
                                the previous system under the 
                                preceding provisions of this 
                                subparagraph with respect to 
                                such service, as determined by 
                                the authority administering 
                                such previous system (in this 
                                section referred to as the 
                                ``administrative authority'').
                                    (II) Payment of 
                                deficiency.--A determination of 
                                a deficiency under this clause 
                                shall not render an election 
                                ineffective if the individual 
                                pays or arranges to pay, at a 
                                time and in a manner 
                                satisfactory to such 
                                administrative authority, the 
                                full amount of the deficiency 
                                described in subclause (I).
                    (D) Alternative election for an individual 
                then participating in fers.--
                            (i) Applicability.--This 
                        subparagraph applies with respect to 
                        any individual who--
                                    (I) is then currently 
                                participating in FERS; and
                                    (II) would then otherwise 
                                be eligible to make an election 
                                under subparagraphs (A) through 
                                (C) of this paragraph, 
                                determined disregarding the 
                                matter in subclause (I) of 
                                subparagraph (B) before the 
                                first semicolon therein.
                            (ii) Election.--An individual 
                        described in clause (i) may, instead of 
                        making an election for which such 
                        individual is otherwise eligible under 
                        this paragraph, elect to have all prior 
                        qualifying NAFI service of such 
                        individual treated as creditable 
                        service for purposes of any annuity 
                        under FERS payable out of the Civil 
                        Service Retirement and Disability Fund.
                            (iii) Qualifying nafi service.--For 
                        purposes of this subparagraph, the term 
                        ``qualifying NAFI service'' means any 
                        service which, but for this 
                        subparagraph, would be creditable for 
                        purposes of any retirement system 
                        established for employees described in 
                        section 2105(c) of title 5, United 
                        States Code.
                            (iv) Service ceases to be 
                        creditable for nafi retirement system 
                        purposes.--Any qualifying NAFI service 
                        that becomes creditable for FERS 
                        purposes by virtue of an election made 
                        under this subparagraph shall not be 
                        creditable for purposes of any 
                        retirement system referred to in clause 
                        (iii).
                            (v) Conditions.--An election under 
                        this subparagraph shall be subject to 
                        requirements, similar to those set 
                        forth in subparagraph (C), to ensure 
                        that--
                                    (I) appropriate transfers 
                                of individual and Government 
                                contributions are made to the 
                                Civil Service Retirement and 
                                Disability Fund; and
                                    (II) the actuarial present 
                                value of future benefits under 
                                FERS attributable to service 
                                made creditable by such 
                                election is fully funded.
                    (E) Alternative election for an individual 
                then participating in a nafi retirement 
                system.--
                            (i) Applicability.--This 
                        subparagraph applies with respect to 
                        any individual who--
                                    (I) is then currently 
                                participating in any retirement 
                                system established for 
                                employees described in section 
                                2105(c) of title 5, United 
                                States Code (in this 
                                subparagraph referred to as a 
                                ``NAFI retirement system''); 
                                and
                                    (II) would then otherwise 
                                be eligible to make an election 
                                under subparagraphs (A) through 
                                (C) of this paragraph 
                                (determined disregarding the 
                                matter in subclause (I) of 
                                subparagraph (B) before the 
                                first semicolon therein) based 
                                on a move from FERS.
                            (ii) Election.--An individual 
                        described in clause (i) may, instead of 
                        making an election for which such 
                        individual is otherwise eligible under 
                        this paragraph, elect to have all prior 
                        qualifying FERS service of such 
                        individual treated as creditable 
                        service for purposes of determining 
                        eligibility for benefits under a NAFI 
                        retirement system, but not for purposes 
                        of computing the amount of any such 
                        benefits except as provided in clause 
                        (v)(II).
                            (iii) Qualifying fers service.--For 
                        purposes of this subparagraph, the term 
                        ``qualifying FERS service'' means any 
                        service which, but for this 
                        subparagraph, would be creditable for 
                        purposes of the Federal Employees' 
                        Retirement System.
                            (iv) Service ceases to be 
                        creditable for purposes of fers.--Any 
                        qualifying FERS service that becomes 
                        creditable for NAFI purposes by virtue 
                        of an election made under this 
                        subparagraph shall not be creditable 
                        for purposes of the Federal Employees' 
                        Retirement System.
                            (v) Funding requirements.--
                                    (I) In general.--Except as 
                                provided in subclause (II), 
                                nothing in this section or in 
                                any other provision of law or 
                                any other authority shall be 
                                considered to require any 
                                payment or transfer of monies 
                                in order for an election under 
                                this subparagraph to be 
                                effective.
                                    (II) Contribution required 
                                only if individual elects to 
                                have service made creditable 
                                for computation purposes as 
                                well.--Under regulations 
                                prescribed by the appropriate 
                                administrative authority, an 
                                individual making an election 
                                under this subparagraph may 
                                further elect to have the 
                                qualifying FERS service made 
                                creditable for computation 
                                purposes under a NAFI 
                                retirement system, but only if 
                                the individual pays or arranges 
                                to pay, at a time and in a 
                                manner satisfactory to such 
                                administrative authority, the 
                                amount necessary to fully fund 
                                the actuarial present value of 
                                future benefits under the NAFI 
                                retirement system attributable 
                                to the qualifying FERS service.
            (3) Information.--The regulations under subsection 
        (b) shall include provisions under which any 
        individual--
                    (A) shall, upon request, be provided 
                information or assistance in determining 
                whether such individual is eligible to make an 
                election under paragraph (2) and, if so, the 
                exact amount of any payment which would be 
                required of such individual in connection with 
                any such election; and
                    (B) may seek any other information or 
                assistance relating to any such election.
    (d) Creditability of NAFI Service for RIF Purposes.--
            (1) In general.--Clause (ii) of section 3502(a)(C) 
        of title 5, United States Code, is amended by striking 
        ``January 1, 1987'' and inserting ``January 1, 1966''.
            (2) Effective date.--Notwithstanding any provision 
        of subsection (c), the amendment made by paragraph (1) 
        shall--
                    (A) take effect on the date of the 
                enactment of this Act; and
                    (B) apply with respect to any reduction in 
                force carried out on or after such date.

SEC. 1044. EXTENSION OF TEMPORARY AUTHORITY TO PAY CIVILIAN EMPLOYEES 
                    WITH RESPECT TO THE EVACUATION FROM GUANTANAMO, 
                    CUBA.

    (a) Extension of Authority.--The Secretary of Defense may, 
until the end of January 31, 1996, and without regard to the 
time limitations specified in subsection (a) of section 5523 of 
title 5, United States Code, make payments under the provisions 
of such section from funds available for the pay of civilian 
personnel in the case of employees, or an employee's dependents 
or immediate family, evacuated from Guantanamo Bay, Cuba, 
pursuant to the August 26, 1994 order of the Secretary. This 
section shall take effect as of October 1, 1995, and shall 
apply with respect to payments made for periods occurring on or 
after that date.
    (b) Monthly Report.--On the first day of each month 
beginning after the date of the enactment of this Act and 
ending before March 1996, the Secretary of the Navy shall 
transmit to the Committee on Armed Services of the Senate and 
the Committee on National Security of the House of 
Representatives a report regarding the payment of employees 
pursuant to subsection (a). Each such report shall include, for 
the month preceding the month in which the report is 
transmitted, a statement of the following:
            (1) The number of the employees paid pursuant to 
        such section.
            (2) The positions of employment of the employees.
            (3) The number and location of the employees' 
        dependents and immediate families.
            (4) The actions taken by the Secretary to eliminate 
        the conditions which necessitated the payments.

            Subtitle E--Miscellaneous Reporting Requirements

SEC. 1051. REPORT ON FISCAL YEAR 1997 BUDGET SUBMISSION REGARDING GUARD 
                    AND RESERVE COMPONENTS.

    (a) Report.--The Secretary of Defense shall submit to the 
congressional defense committees, at the same time that the 
President submits the budget for fiscal year 1997 under section 
1105(a) of title 31, United States Code, a report on amounts 
requested in that budget for the Guard and Reserve components.
    (b) Content.--The report shall include the following:
            (1) A description of the anticipated effect that 
        the amounts requested (if approved by Congress) will 
        have to enhance the capabilities of each of the Guard 
        and Reserve components.
            (2) A listing, with respect to each such component, 
        of each of the following:
                    (A) The amount requested for each major 
                weapon system for which funds are requested in 
                the budget for that component.
                    (B) The amount requested for each item of 
                equipment (other than a major weapon system) 
                for which funds are requested in the budget for 
                that component.
                    (C) The amount requested for each military 
                construction project, together with the 
                location of each such project, for which funds 
                are requested in the budget for that component.
    (c) Inclusion of Information in Next FYDP.--The Secretary 
of Defense shall specifically display in the next future-years 
defense program (or program revision) submitted to Congress 
after the date of the enactment of this Act the amounts 
programmed for procurement of equipment and for military 
construction for each of the Guard and Reserve components.
    (d) Definition.--For purposes of this section, the term 
``Guard and Reserve components'' means the following:
            (1) The Army Reserve.
            (2) The Army National Guard of the United States.
            (3) The Naval Reserve.
            (4) The Marine Corps Reserve.
            (5) The Air Force Reserve.
            (6) The Air National Guard of the United States.

SEC. 1052. REPORT ON DESIRABILITY AND FEASIBILITY OF PROVIDING 
                    AUTHORITY FOR USE OF FUNDS DERIVED FROM RECOVERED 
                    LOSSES RESULTING FROM CONTRACTOR FRAUD.

    (a) Report.--Not later than April 1, 1996, the Secretary of 
Defense shall submit to Congress a report on the 
desirabilityand feasibility of authorizing by law the retention and use 
by the Department of Defense of a specified portion (not to exceed 
three percent) of amounts recovered by the Government during any fiscal 
year from losses and expenses incurred by the Department of Defense as 
a result of contractor fraud at military installations.
    (b) Matters To Be Included.--The report shall include the 
views of the Secretary of Defense regarding--
            (1) the degree to which such authority would create 
        enhanced incentives for the discovery, investigation, 
        and resolution of contractor fraud at military 
        installations; and
            (2) the appropriate allocation for funds that would 
        be available for expenditure pursuant to such 
        authority.

SEC. 1053. REPORT OF NATIONAL POLICY ON PROTECTING THE NATIONAL 
                    INFORMATION INFRASTRUCTURE AGAINST STRATEGIC 
                    ATTACKS.

    Not later than 120 days after the date of the enactment of 
this Act, the President shall submit to Congress a report 
setting forth the results of a review of the national policy on 
protecting the national information infrastructure against 
strategic attacks. The report shall include the following:
            (1) A description of the national policy and 
        architecture governing the plans for establishing 
        procedures, capabilities, systems, and processes 
        necessary to perform indications, warning, and 
        assessment functions regarding strategic attacks by 
        foreign nations, groups, or individuals, or any other 
        entity against the national information infrastructure.
            (2) An assessment of the future of the National 
        Communications System (NCS), which has performed the 
        central role in ensuring national security and 
        emergency preparedness communications for essential 
        United States Government and private sector users, 
        including a discussion of--
                    (A) whether there is a Federal interest in 
                expanding or modernizing the National 
                Communications System in light of the changing 
                strategic national security environment and the 
                revolution in information technologies; and
                    (B) the best use of the National 
                Communications System and the assets and 
                experience it represents as an integral part of 
                a larger national strategy to protect the 
                United States against a strategic attack on the 
                national information infrastructure.

SEC. 1054. REPORT ON DEPARTMENT OF DEFENSE BOARDS AND COMMISSIONS.

    (a) Study.--The Secretary of Defense shall conduct a study 
of the boards and commissions described in subsection (c). As 
part of such study, the Secretary shall determine, with respect 
to each such board or commission that received support from the 
Department of Defense during fiscal year 1995, whether that 
board or commission merits continued support from the 
Department.
    (b) Report.--Not later than April 1, 1996, the Secretary 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of 
Representatives a report on the results of the study. The 
report shall include the following:
            (1) A list of each board and commission described 
        in subsection (c) that received support from the 
        Department of Defense during fiscal year 1995.
            (2) With respect to the boards and commissions 
        specified on the list under paragraph (1)--
                    (A) a list of each such board or commission 
                concerning which the Secretary determined under 
                subsection (a) that continued support from the 
                Department of Defense is merited; and
                    (B) a list of each such board or commission 
                concerning which the Secretary determined under 
                subsection (a) that continued support from the 
                Department if not merited.
            (3) For each board and commission specified on the 
        list under paragraph (2)(A), a description of--
                    (A) the purpose of the board or commission;
                    (B) the nature and cost of the support 
                provided by the Department to the board or 
                commission during fiscal year 1995;
                    (C) the nature and duration of the support 
                that the Secretary proposes to provide to the 
                board or commission;
                    (D) the anticipated cost to the Department 
                of providing such support; and
                    (E) a justification of the determination 
                that the board or commission merits the 
                continued support of the Department.
            (4) For each board and commission specified on the 
        list under paragraph (2)(B), a description of--
                    (A) the purpose of the board or commission;
                    (B) the nature and cost of the support 
                provided by the Department to the board or 
                commission during fiscal year 1995; and
                    (C) a justification of the determination 
                that the board or commission does not merit the 
                continued support of the Department.
    (c) Covered Boards and Commissions.--Subsection (a) applies 
to any board or commission (including any board or commission 
authorized by law) that operates within or for the Department 
of Defense and that--
            (1) provides only policy-making assistance or 
        advisory services for the Department; or
            (2) carries out only activities that are not 
        routine activities, on-going activities, or activities 
        necessary to the routine, on-going operations of the 
        Department.
    (d) Support Defined.--For purposes of this section, the 
term ``support'' includes the provision of any of the 
following:
            (1) Funds.
            (2) Equipment, materiel, or other assets.
            (3) Services of personnel.

SEC. 1055. DATE FOR SUBMISSION OF ANNUAL REPORT ON SPECIAL ACCESS 
                    PROGRAMS.

    Section 119(a) of title 10, United States Code, is amended 
by striking out ``February 1'' and inserting in lieu thereof 
``March 1''.

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

SEC. 1061. REPEAL OF MISCELLANEOUS PROVISIONS OF LAW.

    (a) Volunteers Investing in Peace and Security Program.--
(1) Chapter 89 of title 10, United States Code, is repealed.
    (2) The tables of chapters at the beginning of subtitle A, 
and at the beginning of part II of subtitle A, of such title 
are each amended by striking out the item relating to chapter 
89.
    (b) Security and Control of Supplies.--(1) Chapter 171 of 
such title is repealed.
    (2) The tables of chapters at the beginning of subtitle A, 
and at the beginning of part IV of subtitle A, of such title 
are each amended by striking out the item relating to chapter 
171.
    (c) Annual Authorization of Military Training Student 
Loads.--Section 115 of such title is amended--
            (1) in subsection (a), by striking out paragraph 
        (3);
            (2) in subsection (b)--
                    (A) by inserting ``or'' at the end of 
                paragraph (1);
                    (B) by striking out ``; or'' at the end of 
                paragraph (2) and inserting in lieu thereof a 
                period; and
                    (C) by striking out paragraph (3); and
            (3) by striking out subsection (f).
    (d) Portions of Annual Manpower Requirements Report.--
Section 115a of such title is amended--
            (1) in subsection (b)(2), by striking out 
        subparagraph (C);
            (2) by striking out subsection (d);
            (3) by redesignating subsection (e) as subsection 
        (d) and striking out paragraphs (4) and (5) thereof;
            (4) by striking out subsection (f); and
            (5) by redesignating subsection (g) as subsection 
        (e).
    (e) Obsolete Authority for Payment of Stipends for Members 
of Certain Advisory Committees and Boards of Visitors of 
Service Academies.--(1) The second sentence of each of sections 
173(b) and 174(b) of such title is amended to read as follows: 
``Other members and part-time advisers shall (except as 
otherwise specifically authorized by law) serve without 
compensation for such service.''.
    (2) Sections 4355(h), 6968(h), and 9355(h) of such title 
are amended by striking out ``is entitled to not more than $5 a 
day and''.
    (f) Annual Budget Information Concerning Recruiting 
Costs.--(1) Section 227 of such title is repealed.
    (2) The table of sections at the beginning of chapter 9 of 
such title is amended by striking out the item relating to 
section 227.
    (g) Expired Authority Relating to Peacekeeping 
Activities.--(1) Section 403 of such title is repealed.
    (2) The table of sections at the beginning of subchapter I 
of chapter 20 of such title is amended by striking out the item 
relating to section 403.
    (h) Procurement of Gasohol for Department of Defense Motor 
Vehicles.--(1) Subsection (a) of section 2398 of such title is 
repealed.
    (2) Such section is further amended--
            (A) by redesignating subsections (b) and (c) as 
        subsections (a) and (b), respectively; and
            (B) in subsection (b), as so redesignated, by 
        striking out ``subsection (b)'' and inserting in lieu 
        thereof ``subsection (a)''.
    (i) Requirement of Notice of Certain Disposals and Gifts by 
Secretary of Navy.--Section 7545 of such title is amended--
            (1) by striking out subsection (c); and
            (2) by redesignating subsection (d) as subsection 
        (c).
    (j) Annual Report on Biological Defense Research Program.--
(1) Section 2370 of such title is repealed.
    (2) The table of sections at the beginning of chapter 139 
of such title is amended by striking out the item relating to 
such section.
    (k) Reports and Notifications Relating to Chemical and 
Biological Agents.--Subsection (a) of section 409 of Public Law 
91-121 (50 U.S.C. 1511) is repealed.
    (l) Annual Report on Balanced Technology Initiative.--
Subsection (e) of section 211 of the National Defense 
Authorization Act for Fiscal Years 1990 and 1991 (Public Law 
101-189; 103 Stat. 1394) is repealed.
    (m) Report on Environmental Restoration Costs for 
Installations To Be Closed Under 1990 Base Closure Law.--
Section 2827 of the National Defense Authorization Act for 
Fiscal Years 1992 and 1993 (Public Law 102-190; 10 U.S.C. 2687 
note) is amended by striking out subsection (b).
    (n) Limitation on American Diplomatic Facilities in 
Germany.--Section 1432 of the National Defense Authorization 
Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1833) 
is repealed.

SEC. 1062. REPORTS REQUIRED BY TITLE 10, UNITED STATES CODE.

    (a) Annual Report on Relocation Assistance Programs.--
Section 1056 of title 10, United States Code, is amended--
            (1) by striking out subsection (f); and
            (2) by redesignating subsection (g) as subsection 
        (f).
    (b) Notice of Salary Increases for Foreign National 
Employees.--Section 1584 of such title is amended--
            (1) by striking out subsection (b); and
            (2) in subsection (a), by striking out ``(a) Waiver 
        of Employment Restrictions for Certain Personnel.--''.
    (c) Notice Regarding Contracts Performed for Periods 
Exceeding 10 Years.--(1) Section 2352 of such title is 
repealed.
    (2) The table of sections at the beginning of chapter 139 
of such title is amended by striking out the item relating to 
section 2352.
    (d) Report on Low-Rate Production Under Naval Vessel and 
Military Satellite Programs.--Section 2400(c) of such title is 
amended--
            (1) by striking out paragraph (2); and
            (2) in paragraph (1)--
                    (A) by striking out ``(1)''; and
                    (B) by redesignating clauses (A) and (B) as 
                clauses (1) and (2), respectively.
    (e) Report on Waivers of Prohibition on Employment of 
Felons.--Section 2408(a)(3) of such title is amended by 
striking out the second sentence.
    (f) Report on Determination Not To Debar for Fraudulent Use 
of Labels.--Section 2410f(a) of such title is amended by 
striking out the second sentence.
    (g) Notice of Military Construction Contracts on Guam.--
Section 2864(b) of such title is amended by striking out 
``after the 21-day period'' and all that follows through 
``determination''.

SEC. 1063. REPORTS REQUIRED BY DEFENSE AUTHORIZATION AND APPROPRIATIONS 
                    ACTS.

    (a) Public Law 99-661 Requirement for Report on Funding for 
Nicaraguan Democratic Resistance.--Section 1351 of the National 
Defense Authorization Act for Fiscal Year 1987 (Public Law 99-
661; 100 Stat. 3995; 10 U.S.C. 114 note) is amended--
            (1) by striking out subsection (b); and
            (2) in subsection (a), by striking out ``(a) 
        Limitation.--''.
    (b) Annual Report on Overseas Military Facility Investment 
Recovery Account.--Section 2921 of the Military Construction 
Authorization Act for Fiscal Year 1991 (division B of Public 
Law 101-510; 10 U.S.C. 2687 note) is amended--
            (1) by striking out subsection (f); and
            (2) by redesignating subsections (g) and (h) as 
        subsections (f) and (g), respectively.
    (c) Science, Mathematics, and Engineering Education Master 
Plan.--Section 829 of the National Defense Authorization Act 
for Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat. 
1444; 10 U.S.C. 2192 note) is repealed.
    (d) Report Regarding Heating Facility Modernization at 
Kaiserslautern.--Section 8008 of the Department of Defense 
Appropriations Act, 1994 (Public Law 103-139; 107 Stat. 1438), 
is amended by inserting ``but without regard to the 
notification requirement in subsection (b)(2) of such 
section,'' after ``section 2690 of title 10, United States 
Code,''.

SEC. 1064. REPORTS REQUIRED BY OTHER PROVISIONS OF LAW.

    (a) Requirement Under Arms Export Control Act for Quarterly 
Report on Price and Availability Estimates.--Section 28 of the 
Arms Export Control Act (22 U.S.C. 2768) is repealed.
    (b) Annual Report on National Security Agency Executive 
Personnel.--Section 12(a) of the National Security Agency Act 
of 1959 (50 U.S.C. 402 note) is amended by striking out 
paragraph (5).
    (c) Reports Concerning Certain Federal Contracting and 
Financial Transactions.--Section 1352 of title 31, United 
States Code, is amended--
            (1) in subsection (b)(6)(A), by inserting ``(other 
        than the Secretary of Defense and Secretary of a 
        military department)'' after ``The head of each 
        agency''; and
            (2) in subsection (d)(1), by inserting ``(other 
        than in the case of the Department of Defense or a 
        military department)'' after ``paragraph (3) of this 
        subsection''.
    (d) Annual Report on Water Resources Project Agreements.--
Section 221 of the Flood Control Act of 1970 (42 U.S.C. 1962d-
5b) is amended--
            (1) by striking out subsection (e); and
            (2) by redesignating subsection (f) as subsection 
        (e).
    (e) Annual Report on Construction of Tennessee-Tombigbee 
Waterway.--Section 185 of the Water Resources Development Act 
of 1976 (33 U.S.C. 544c) is amended by striking out the second 
sentence.
    (f) Annual Report on Monitoring of Navy Home Port Waters.--
Section 7 of the Organotin Antifouling Paint Control Act of 
1988 (33 U.S.C. 2406) is amended--
            (1) by striking out subsection (d); and
            (2) by redesignating subsections (e) and (f) as 
        subsections (d) and (e), respectively.

          Subtitle G--Department of Defense Education Programs

SEC. 1071. CONTINUATION OF UNIFORMED SERVICES UNIVERSITY OF THE HEALTH 
                    SCIENCES.

    (a) Policy.--Congress reaffirms--
            (1) the prohibition set forth in subsection (a) of 
        section 922 of the National Defense Authorization Act 
        for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 
        2829; 10 U.S.C. 2112 note) regarding closure of the 
        Uniformed Services University of the Health Sciences; 
        and
            (2) the expression of the sense of Congress set 
        forth in subsection (b) of such section regarding the 
        budgetary commitment to continuation of the university.
    (b) Personnel Strength.--During the five-year period 
beginning on October 1, 1995, the personnel staffing levels for 
the Uniformed Services University of the Health Services may 
not be reduced below the personnel staffing levels for the 
university as of October 1, 1993.
    (c) Budgetary Commitment to Continuation.--It is the sense 
of Congress that the Secretary of Defense should budget for the 
operation of the Uniformed Services University of the Health 
Sciences during fiscal year 1997 at a level at least equal to 
the level of operations conducted at the University during 
fiscal year 1995.

SEC. 1072. ADDITIONAL GRADUATE SCHOOLS AND PROGRAMS AT UNIFORMED 
                    SERVICES UNIVERSITY OF THE HEALTH SCIENCES.

    (a) Additional Schools and Programs.--Subsection (h) of 
section 2113 of title 10, United States Code, is amended to 
read as follows:
    ``(h) The Secretary of Defense may establish the following 
educational programs at the University:
            ``(1) Postdoctoral, postgraduate, and technological 
        institutes.
            ``(2) A graduate school of nursing.
            ``(3) Other schools or programs that the Secretary 
        determines necessary in order to operate the University 
        in a cost-effective manner.''.
    (b) Conforming Amendments To Reflect Advisory Nature of 
Board of Regents.--(1) Section 2112(b) of such title is amended 
by striking out ``, upon recommendation of the Board of 
Regents,''.
    (2) Section 2113 of such title is amended--
            (A) in subsection (a)--
                    (i) by striking out ``a Board of Regents 
                (hereinafter in this chapter referred to as the 
                `Board')'' in the first sentence and inserting 
                in lieu thereof ``the Secretary of Defense''; 
                and
                    (ii) by inserting after the first sentence 
                the following new sentence: ``To assist the 
                Secretary in an advisory capacity, there is a 
                Board of Regents for the University.'';
            (B) in subsection (d), by striking out ``Board'' 
        the first place it appears and inserting in lieu 
        thereof ``Secretary'';
            (C) in subsection (e), by striking out ``of 
        Defense'';
            (D) in subsection (f)(1), by striking out ``of 
        Defense'';
            (E) in subsection (g)--
                    (i) by striking out ``Board is authorized 
                to'' in the first sentence and inserting in 
                lieu thereof ``Secretary may'';
                    (ii) by striking out ``Board is also 
                authorized to'' in the third sentence and 
                inserting in lieu thereof ``Secretary may''; 
                and
                    (iii) by striking out ``Board may also, 
                subject to the approval of the Secretary of 
                Defense,'' in the fifth sentence and inserting 
                in lieu thereof ``Secretary may''; and
            (F) by striking out ``Board'' each place it appears 
        in subsections (f), (i), and (j) and inserting in lieu 
        thereof ``Secretary''.
    (3) Section 2114(e)(1) of such title is amended by striking 
out ``Board, upon approval of the Secretary of Defense,'' and 
inserting in lieu thereof ``Secretary of Defense''.
    (c) Clerical Amendments.--(1) The heading of section 2113 
of such title is amended to read as follows:

``Sec. 2113. Administration of University''.

    (2) The item relating to such section in the table of 
sections at the beginning of chapter 104 of such title is 
amended to read as follows:

``2113. Administration of University.''.

SEC. 1073. FUNDING FOR ADULT EDUCATION PROGRAMS FOR MILITARY PERSONNEL 
                    AND DEPENDENTS OUTSIDE THE UNITED STATES.

    Of amounts appropriated pursuant to section 301, $600,000 
shall be available to carry out adult education programs, 
consistent with the Adult Education Act (20 U.S.C. 1201 et 
seq.), for the following:
            (1) Members of the Armed Forces who are serving in 
        locations--
                    (A) that are outside the United States; and
                    (B) for which amounts are not required to 
                be allotted under section 313(b) of such Act 
                (20 U.S.C. 1201b(b)).
            (2) The dependents of such members.

SEC. 1074. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT 
                    DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND 
                    DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.

    (a) Continuation of Department of Defense Program for 
Fiscal Year 1996.--(1) Of the amounts authorized to be 
appropriated in section 301(5)--
            (A) $30,000,000 shall be available for providing 
        educational agencies assistance (as defined in 
        paragraph (4)(A)) to local educational agencies; and
            (B) $5,000,000 shall be available for making 
        educational agencies payments (as defined in paragraph 
        (4)(B)) to local educational agencies.
    (2) Not later than June 30, 1996, the Secretary of Defense 
shall--
            (A) notify each local educational agency that is 
        eligible for educational agencies assistance for fiscal 
        year 1996 of that agency's eligibility for such 
        assistance and the amount of such assistance for which 
        that agency is eligible; and
            (B) notify each local educational agency that is 
        eligible for an educational agencies payment for fiscal 
        year 1996 of that agency's eligibility for such payment 
        and the amount of the payment for which that agency is 
        eligible.
    (3) The Secretary of Defense shall disburse funds made 
available under subparagraphs (A) and (B) of paragraph (1) not 
later than 30 days after the date on which notification to the 
eligible local educational agencies is provided pursuant to 
paragraph (2).
    (4) In this section:
            (A) The term ``educational agencies assistance'' 
        means assistance authorized under subsection (b) of 
        section 386 of the National Defense Authorization Act 
        for Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 238 
        note).
            (B) The term ``educational agencies payments'' 
        means payments authorized under subsection (d) of that 
        section, as amended by subsection (d).
    (b) Special Rule for 1994 Payments.--The Secretary of 
Education shall not consider any payment to a local educational 
agency by the Department of Defense, that is available to such 
agency for current expenditures and used for capital expenses, 
as funds available to such agency for purposes of making a 
determination for fiscal year 1994 under section 3(d)(2)(B)(i) 
of the Act of September 30, 1950 (Public Law 874, 81st 
Congress) (as such Act was in effect on September 30, 1994).
    (c) Reduction in Impact Threshold.--Subsection (c)(1) of 
section 386 of the National Defense Authorization Act for 
Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 238