[DOCID: f:publ106.104]
         NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1996

[[Page 110 STAT. 186]]


Public Law 104-106
104th Congress

                                 An Act


 
To authorize appropriations for fiscal year 1996 for military activities 
of the Department of Defense, for military construction, and for defense 
activities of the Department of Energy, to prescribe personnel strengths 
 for such fiscal year for the Armed Forces, to reform acquisition laws 
and information technology management of the Federal Government, and for 
          other purposes. <<NOTE: Feb. 10, 1996 -  [S. 1124]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: National Defense 
Authorization Act for Fiscal Year 1996.>> 

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.

[[Page 110 STAT. 187]]

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.

[[Page 110 STAT. 188]]

Sec. 253. Repeal of missile defense provisions.

         Subtitle E--Miscellaneous Reviews, Studies, and Reports

Sec. 261. Precision-guided munitions.
Sec. 262. Review of C<SUP>4I 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.
                    
[[Page 110 STAT. 189]]

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

[[Page 110 STAT. 190]]


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 Reserve Officers' Training Corps 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.
                    
[[Page 110 STAT. 191]]

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 resulting in incidental 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.
                    
[[Page 110 STAT. 192]]

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.
                    
[[Page 110 STAT. 193]]

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 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. 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.
                    
[[Page 110 STAT. 194]]

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.
                      
[[Page 110 STAT. 195]]

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 of 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. Repeal of 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

[[Page 110 STAT. 196]]


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 the 
                      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.
                      
[[Page 110 STAT. 197]]

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 counter-proliferation authorities.
Sec. 1404. Limitation on retirement or dismantlement of strategic 
                      nuclear delivery systems.
Sec. 1405. Congressional findings and sense of Congress concerning 
                      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.
                      
[[Page 110 STAT. 198]]

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.
                      
[[Page 110 STAT. 199]]

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

[[Page 110 STAT. 200]]


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.
                      
[[Page 110 STAT. 201]]

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 
                      Num bered 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.

[[Page 110 STAT. 202]]

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 certified 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 amendment.
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.

[[Page 110 STAT. 203]]

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.

[[Page 110 STAT. 204]]

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.
        
[[Page 110 STAT. 205]]


    (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.

[[Page 110 STAT. 206]]


                        Subtitle B--Army Programs

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

    The prohibition in section 133(a)(2) of the National Defense 
Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 
103 Stat. 1383) does not apply to the obligation of funds in amounts not 
to exceed $140,000,000 for the procurement of not more than 20 OH-58D 
Armed Kiowa Warrior aircraft from funds appropriated for fiscal year 
1996 pursuant to section 101.
SEC. 112. REPEAL OF REQUIREMENTS FOR ARMORED VEHICLE UPGRADES.

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

SEC. 113. MULTIYEAR PROCUREMENT OF HELICOPTERS.

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

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

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

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

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

                        Subtitle C--Navy Programs

SEC. 131. NUCLEAR ATTACK SUBMARINES.

    (a) Amounts Authorized.--(1) Of the amount authorized by section 102 
to be appropriated for Shipbuilding and Conversion, Navy, for fiscal 
year 1996--

[[Page 110 STAT. 207]]

            (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

[[Page 110 STAT. 208]]
        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

[[Page 110 STAT. 209]]
        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) <<NOTE: Reports.>> 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

[[Page 110 STAT. 210]]
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.

[[Page 110 STAT. 211]]


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

[[Page 110 STAT. 212]]
        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

[[Page 110 STAT. 213]]
fiscal year 1996 for the activities and operations of such office, may 
be obligated until the Secretary of the Navy certifies to the Committee 
on Armed Services of the
Senate and the Committee on National Security of the House of 
Representatives that funds have been obligated to equip nine Pioneer 
Unmanned Aerial Vehicle systems with the Common Automatic Landing and 
Recovery System (CARS).

                     Subtitle D--Air Force Programs

SEC. 141. B-2 AIRCRAFT PROGRAM.

    (a) Repeal of Limitations.--The following provisions of law are 
repealed:
            (1) Section 151(c) of the National Defense Authorization Act 
        for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2339).
            (2) Sections 131(c) and 131(d) of the National Defense 
        Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 
        Stat. 1569).
            (3) Section 133(e) of the National Defense Authorization Act 
        for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2688).

    (b) Conversion of Limitation to Annual Report Requirement.--Section 
112 of the National Defense Authorization Act for Fiscal Years 1990 and 
1991 (Public Law 101-189; 103 Stat. 1373) is amended--
            (1) by striking out subsection (a);
            (2) by striking out the matter in subsection (b) preceding 
        paragraph (1) and inserting in lieu thereof the following:

    ``(a) Annual Reporting Requirement.--Not later than March 1 of each 
year, the Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives a report that sets forth the finding of the 
Secretary (as of January 1 of such year) on each of the following 
matters:'';
            (3) by striking out ``That'' in paragraphs (1), (2), (3), 
        (4), and (5) and inserting in lieu thereof ``Whether'';
            (4) in paragraph (1), by striking out ``latest'' and all 
        that follows through ``100-180'' and inserting in lieu thereof 
        ``Requirements Correlation Matrix found in the user-defined 
        Operational Requirements Document (as contained in Attachment B 
        to a letter from the Secretary of Defense to Congress dated 
        October 14, 1993)'';
            (5) in paragraph (3), by striking out ``congressional 
        defense'';
            (6) in paragraph (4), by striking out ``such certification 
        to be submitted'';
            (7) by adding at the end the following:

    ``(b) First Report.--The Secretary shall submit the first annual 
report under subsection (a) not later than March 1, 1996.''; and
            (8) by amending the section heading to read as follows:

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

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

[[Page 110 STAT. 214]]


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. <<NOTE: 50 USC 1521 note.>>  DESTRUCTION OF EXISTING 
                        STOCKPILE OF LETHAL CHEMICAL AGENTS AND 
                        MUNITIONS.

    (a) In General.--The Secretary of Defense shall proceed with the 
program for destruction of the chemical munitions stockpile of the 
Department of Defense while maintaining the maximum protection of the 
environment, the general public, and the personnel involved in the 
actual destruction of the munitions. In carrying out such program, the 
Secretary shall use technologies and procedures that will minimize the 
risk to the public at each site.
    (b) Initiation of Demilitarization Operations.--The Secretary of 
Defense may not initiate destruction of the chemical munitions stockpile 
stored at a site until the following support measures are in place:
            (1) Support measures that are required by Department of 
        Defense and Army chemical surety and security program 
        regulations.
            (2) Support measures that are required by the general and 
        site chemical munitions demilitarization plans specific to that 
        installation.
            (3) Support measures that are required by the permits 
        required by the Solid Waste Disposal Act (42 U.S.C. 6901 et 
        seq.) and the Clean Air Act (42 U.S.C. 7401 et seq.) for 
        chemical munitions demilitarization operations at that
installation, as approved by the appropriate State regulatory agencies.

    (c) Assessment of Alternatives.--(1) The Secretary of Defense shall 
conduct an assessment of the current chemical demilitarization program 
and of measures that could be taken to reduce

[[Page 110 STAT. 215]]
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) <<NOTE: Reports.>> 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) <<NOTE: Reports.>> 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

[[Page 110 STAT. 216]]
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.
        
[[Page 110 STAT. 217]]

            (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:
        
[[Page 110 STAT. 218]]


    ``(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) <<NOTE: 10 USC 2902 note.>> 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) <<NOTE: Effective date. 10 USC 2903 note.>> 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.
        
[[Page 110 STAT. 219]]


     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.
        
[[Page 110 STAT. 220]]


    (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;
                
[[Page 110 STAT. 221]]

                    (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

[[Page 110 STAT. 222]]
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) <<NOTE: Reports.>> 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.

[[Page 110 STAT. 223]]

    (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) <<NOTE: Notification.>> 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.

[[Page 110 STAT. 224]]

    (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. <<NOTE: Notice.>> 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

[[Page 110 STAT. 225]]
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) <<NOTE: Reports.>> 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

[[Page 110 STAT. 226]]
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) <<NOTE: Notification.>> 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 Sec

[[Page 110 STAT. 227]]
retary 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.

[[Page 110 STAT. 228]]


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 <<NOTE: Ballistic Missile 
Defense Act of 1995. 10 USC 2431 note.>> 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

[[Page 110 STAT. 229]]
        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 ballistic 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.
        
[[Page 110 STAT. 230]]

            (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) <<NOTE: Notice.>> 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. <<NOTE: Reports.>> 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

[[Page 110 STAT. 231]]
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) <<NOTE: Certification.>> 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,

[[Page 110 STAT. 232]]
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;
        
[[Page 110 STAT. 233]]

            (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. <<NOTE: 10 USC 221 note.>> 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

[[Page 110 STAT. 234]]
programs shall be available only for activities covered by those program 
elements.
    (c) BM/C<SUP>3I Programs.--Amounts requested for programs, projects, 
and activities involving battle management, command, control, 
communications, and intelligence (BM/C<SUP>3I) 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) <<NOTE: Certification.>> Testing of Theater Missile Defense 
Interceptors.--(1) The Secretary of Defense may not approve a theater 
missile defense interceptor program proceeding beyond the
low-rate initial production acquisition stage until the Secretary 
certifies to the congressional defense committees that such program has 
successfully completed initial operational test and evaluation.

    ``(2) In order to be certified under paragraph (1) as having been 
successfully completed, the initial operational test and evaluation 
conducted with respect to an interceptors program must have included 
flight tests--
            ``(A) that were conducted with multiple interceptors and 
        multiple targets in the presence of realistic countermeasures; 
        and
            ``(B) the results of which demonstrate the achievement by 
        the interceptors of the baseline performance thresholds.

    ``(3) For purposes of this subsection, the baseline performance 
thresholds with respect to a program are the weapons systems performance 
thresholds specified in the baseline description for the system 
established (pursuant to section 2435(a)(1) of title 10, United States 
Code) before the program entered the engineering and manufacturing 
development stage.
    ``(4) The number of flight tests described in paragraph (2) that are 
required in order to make the certification under paragraph (1) shall be 
a number determined by the Secretary of Defense to be sufficient for the 
purposes of this section.
    ``(5) The Secretary may augment live-fire testing to demonstrate 
weapons system performance goals for purposes of the certification under 
paragraph (1) through the use of modeling and simulation that is 
validated by ground and flight testing.''.

SEC. 253. REPEAL OF MISSILE DEFENSE PROVISIONS.

    The following provisions of law are repealed:
            (1) Section 222 of the Department of Defense Authorization 
        Act, 1986 (Public Law 99-145; 99 Stat. 613; 10 U.S.C. 2431 
        note).
            (2) Section 225 of the Department of Defense Authorization 
        Act, 1986 (Public Law 99-145; 99 Stat. 614).
            (3) Section 226 of the National Defense Authorization Act 
        for Fiscal Years 1988 and 1989 (Public Law 100-180; 101 Stat. 
        1057; 10 U.S.C. 2431 note).
        
[[Page 110 STAT. 235]]

            (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.
        
[[Page 110 STAT. 236]]


    (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. <<NOTE: 10 USC 113 note.>> REVIEW OF C<SUP>4I 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 (C<SUP>4I) 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 C<SUP>4I programs and the actual needs 
        of users of these programs.
            (2) The interoperability of service and defense-wide 
        C<SUP>4I systems that are planned to be operational in the 
        future.
            (3) The need for an overall defense-wide architecture for 
        C<SUP>4I.
            (4) Proposed strategies for ensuring that future C<SUP>4I 
        acquisitions are compatible and interoperable with an overall 
        architecture.
            (5) Technological and administrative aspects of the C<SUP>4I 
        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 C<SUP>4I 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.

[[Page 110 STAT. 237]]

    (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.

[[Page 110 STAT. 238]]

    (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

[[Page 110 STAT. 239]]
                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);''.
        
[[Page 110 STAT. 240]]


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.

[[Page 110 STAT. 241]]

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) <<NOTE: 10 USC 2358 
note.>> 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.''.

[[Page 110 STAT. 242]]

    (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.

[[Page 110 STAT. 243]]

    (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

[[Page 110 STAT. 244]]
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) <<NOTE: Regulations.>> 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,

[[Page 110 STAT. 245]]
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.
        
[[Page 110 STAT. 246]]


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. <<NOTE: 10 USC 2464 note.>> 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 mainte

[[Page 110 STAT. 247]]
        nance 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) <<NOTE: Reports.>> 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 accord

[[Page 110 STAT. 248]]
        ance 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) <<NOTE: Effective date.>> 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

[[Page 110 STAT. 249]]
        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) <<NOTE: Reports.>> 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

[[Page 110 STAT. 250]]
        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) <<NOTE: Reports.>> 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) <<NOTE: 10 USC 2472 note.>> 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).


[[Page 110 STAT. 251]]


    (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) <<NOTE: 10 USC 2701 note.>> 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) <<NOTE: Certification.>> the Secretary certifies to 
        Congress that the payment of the amount under this subparagraph 
        is essential for the

[[Page 110 STAT. 252]]
        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) <<NOTE: 10 USC 2706 note.>> 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:

[[Page 110 STAT. 253]]

    ``(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).''.
        
[[Page 110 STAT. 254]]


    (2)(A) <<NOTE: 10 USC 2705 note.>> 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) <<NOTE: 33 USC 1322 note.>> 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

[[Page 110 STAT. 255]]
                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

[[Page 110 STAT. 256]]
        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

[[Page 110 STAT. 257]]
                      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) <<NOTE: Regulations.>> 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

[[Page 110 STAT. 258]]
                                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,

[[Page 110 STAT. 259]]
                      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) <<NOTE: 33 USC 1322 note.>> 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

[[Page 110 STAT. 260]]
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

[[Page 110 STAT. 261]]
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.''.

[[Page 110 STAT. 262]]

    (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. <<NOTE: 10 USC 2241 note.>>  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) <<NOTE: Regulations.>> 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) <<NOTE: Termination date.>> 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

[[Page 110 STAT. 263]]
        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) <<NOTE: Texas.>> 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:

[[Page 110 STAT. 264]]

            ``(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) <<NOTE: Contracts.>> 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;
        
[[Page 110 STAT. 265]]

            (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) <<NOTE: Reports.>> 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

[[Page 110 STAT. 266]]
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. <<NOTE: 10 USC 2458 note.>>  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:

[[Page 110 STAT. 267]]

            (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) <<NOTE: 10 USC 2461 note.>> 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) <<NOTE: Reports.>> 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) <<NOTE: 10 USC 2461 note.>> 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.
        
[[Page 110 STAT. 268]]

            (B) The methodology, duration, and anticipated costs of the 
        program, including the cost of an arrangement pursuant to which 
        a private-sector source would receive an agreed-upon payment 
        plus an additional negotiated amount not to exceed 50 percent of 
        the dollar savings achieved in excess of the goal specified in 
        paragraph (4).
            (C) A specific citation to any provisions of law, rule, or 
        regulation that, if not waived, would prohibit the conduct of 
        the program or any part of the program.
            (D) A mechanism to evaluate the program.
            (E) A provision for all payroll, accounting, and finance 
        functions of nonappropriated fund instrumentalities of the 
        Department of Defense to be performed by private-sector
sources, if determined advisable on the basis of a final assessment of 
the results of the program.

    (6) The Secretary shall act through the Under Secretary of Defense 
(Comptroller) in the performance of the Secretary's responsibilities 
under this subsection.
    (c) Limitation on Opening of New Operating Locations for Defense 
Finance and Accounting Service.--(1) Except as provided in paragraph 
(2), the Secretary may not establish a new operating location for the 
Defense Finance and Accounting Service during fiscal year 1996.
    (2) The Secretary may establish a new operating location for the 
Defense Finance and Accounting Service if--
            (A) for a new operating location that the Secretary planned 
        before the date of the enactment of this Act to establish on or 
        after that date, the Secretary reconsiders the need for 
        establishing that new operating location; and
            (B) for each new operating location, including a new 
        operating location referred to in subparagraph (A)--
                    (i) the Secretary submits to Congress, as part of 
                the report required by subsection (a)(4), an analysis of 
                the need for establishing the new operating location; 
                and
                    (ii) a period of 30 days elapses after the Congress 
                receives the report.

    (3) In this subsection, the term ``new operating location'' means an 
operating location that is not in operation on the date of the enactment 
of this Act, except that such term does not include an operating 
location for which, as of such date--
            (A) the Secretary has established a date for the 
        commencement of operations; and
            (B) funds have been expended for the purpose of its 
        establishment.
SEC. 354. <<NOTE: 10 USC 2461 note.>>  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) <<NOTE: Contracts.>> 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

[[Page 110 STAT. 269]]
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. <<NOTE: 20 USC 921 note.>>  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.

[[Page 110 STAT. 270]]

SEC. 356. <<NOTE: 10 USC 2461 note.>>  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.
        
[[Page 110 STAT. 271]]

            (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. <<NOTE: 10 USC 2461 note.>>  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.
        
[[Page 110 STAT. 272]]


    (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

[[Page 110 STAT. 273]]
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) <<NOTE: 10 USC 452 note.>> 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--
        
[[Page 110 STAT. 274]]

                    ``(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

[[Page 110 STAT. 275]]
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. <<NOTE: 10 USC 113 note.>>  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.
        
[[Page 110 STAT. 276]]

            (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) <<NOTE: Certification.>> 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 manage

[[Page 110 STAT. 277]]
        ment 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) <<NOTE: Records.>> 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.
        
[[Page 110 STAT. 278]]

            ``(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) <<NOTE: Reports.>> 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 state

[[Page 110 STAT. 279]]
        ment 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).
        
[[Page 110 STAT. 280]]

            (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.
        
[[Page 110 STAT. 281]]

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--

[[Page 110 STAT. 282]]

            ``(A) articles designated by the Secretary to members of the 
        Navy and Marine Corps; and
            ``(B) items of individual clothing and equipment to members 
        of the Navy and Marine Corps, under such restrictions as the 
        Secretary may prescribe.

    ``(2) An account of sales on credit shall be kept and the amount due 
reported to the Secretary. Except for articles and items acquired 
through the use of working capital funds under section 2208 of this 
title, sales of articles shall be at cost, and sales of individual 
clothing and equipment shall be at average current prices, including 
overhead, as determined by the Secretary.
    ``(b) The Secretary shall sell subsistence supplies to members of 
other armed forces at the prices at which like property is sold to 
members of the Navy and Marine Corps.
    ``(c) The Secretary may sell serviceable supplies, other than 
subsistence supplies, to members of other armed forces for the buyers' 
use in the service. The prices at which the supplies are sold shall be 
the same prices at which like property is sold to members of the Navy 
and Marine Corps.
    ``(d) A person who has been discharged honorably or under honorable 
conditions from the Army, Navy, Air Force or Marine Corps and who is 
receiving care and medical treatment from the Public Health Service or 
the Department of Veterans Affairs may buy subsistence supplies and 
other supplies, except articles of uniform, at the prices at which like 
property is sold to members of the Navy and Marine Corps.
    ``(e) Under such conditions as the Secretary may prescribe, exterior 
articles of uniform may be sold to a person who has been discharged 
honorably or under honorable conditions from the Navy or Marine Corps, 
at the prices at which like articles are sold to members of the Navy or 
Marine Corps. This subsection does not modify sections 772 or 773 of 
this title.
    ``(f) <<NOTE: Regulations.>> 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.''.

[[Page 110 STAT. 283]]

    (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).

[[Page 110 STAT. 284]]

    ``(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

[[Page 110 STAT. 285]]
        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. <<NOTE: 10 USC 115 note.>> 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

[[Page 110 STAT. 286]]
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.  <<NOTE: 10 USC 523 note.>> 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:                      ---------------------------------------------------------
                                                              Major          Lieutenant 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.''.

[[Page 110 STAT. 287]]


    (b) Number of Officers on Active Duty in Grade of General or 
Admiral.--Section 528(b) of such title is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following:

    ``(2) An officer continuing to hold the grade of general or admiral 
under section 601(b)(4) of this title after relief from
the position of Chairman of the Joint Chiefs of Staff, Chief of Staff of 
the Army, Chief of Naval Operations, Chief of Staff of the Air Force, or 
Commandant of the Marine Corps shall not be counted for purposes of this 
section.''.

    (c) Clarification.--Section 601(b) of such title is amended--
            (1) in the matter preceding paragraph (1), by striking out 
        ``of importance and responsibility designated'' and inserting in 
        lieu thereof ``designated under subsection (a) or by law'';
            (2) in paragraph (1), by striking out ``of importance and 
        responsibility'';
            (3) in paragraph (2), by striking out ``designating'' and 
        inserting in lieu thereof ``designated under subsection (a) or 
        by law''; and
            (4) in paragraph (4), by inserting ``under subsection (a) or 
        by law'' after ``designated''.

                       Subtitle B--Reserve Forces

SEC. 411. <<NOTE: 10 USC 12001 note.>> 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.

[[Page 110 STAT. 288]]

SEC. 412.  <<NOTE: 10 USC 12001 note.>> 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:

[[Page 110 STAT. 289]]

            ``(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.

[[Page 110 STAT. 290]]


               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.  <<NOTE: 10 USC 115 note.>> 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--

[[Page 110 STAT. 291]]

            ``(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) <<NOTE: Regulations.>> 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.''.

[[Page 110 STAT. 292]]

    (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--

[[Page 110 STAT. 293]]

            (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) <<NOTE: 10 USC 1370 note.>> 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)''.
        
[[Page 110 STAT. 294]]

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) <<NOTE: 10 USC 777 note.>> 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

[[Page 110 STAT. 295]]
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 require

[[Page 110 STAT. 296]]
        ments 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) <<NOTE: 10 USC 3201 note.>> 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) <<NOTE: 10 USC 8037 note.>> 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
        
[[Page 110 STAT. 297]]

            (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) <<NOTE: Notice.>> 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 ``Promo tion 
        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) <<NOTE: 10 USC 5721 note.>> 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:

[[Page 110 STAT. 298]]

``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) <<NOTE: 10 USC 3360 note.>> 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''.

[[Page 110 STAT. 299]]

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.

[[Page 110 STAT. 300]]

    ``(c) Agreement With Secretary of Transportation.--The Secretary and 
the Secretary of Transportation shall enter into an agreement with 
respect to the administration of the insurance program for the Coast 
Guard Reserve.

``Sec. 12523. Risk insured

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

``Sec. 12524. Enrollment and election of benefits

    ``(a) Enrollment.--(1) Except as provided in subsection (f), upon 
first becoming a member of the Ready Reserve, a member shall be 
automatically enrolled for coverage under the insurance program. An 
automatic enrollment of a member shall be void if within 60 days after 
first becoming a member of the Ready Reserve the member declines 
insurance under the program in accordance with the regulations 
prescribed by the Secretary.
    ``(2) Promptly after the insurance program is established, the 
Secretary shall offer to members of the reserve components
who are then members of the Ready Reserve (other than members ineligible 
under subsection (f)) an opportunity to enroll for coverage under the 
insurance program. A member who fails to enroll within 60 days after 
being offered the opportunity shall be considered as having declined to 
be insured under the program.

    ``(3) A member of the Ready Reserve ineligible to enroll under 
subsection (f) shall be afforded an opportunity to enroll upon being 
released from active duty in accordance with regulations prescribed by 
the Secretary if the member has not previously had the opportunity to be 
enrolled under paragraph (1) or (2). A member who fails to enroll within 
60 days after being afforded that opportunity shall be considered as 
having declined to be insured under the program.
    ``(b) Election of Benefit Amount.--The amount of a member's monthly 
benefit under an enrollment shall be the basic benefit under subsection 
(a) of section 12525 of this title unless the member elects a different 
benefit under subsection (b) of such section within 60 days after first 
becoming a member of the Ready Reserve or within 60 days after being 
offered the opportunity to enroll, as the case may be.
    ``(c) Elections Irrevocable.--(1) An election to decline insurance 
pursuant to paragraph (1) or (2) of subsection (a) is irrevocable.
    ``(2) The amount of coverage may not be increased after enrollment.
    ``(d) Election To Terminate.--A member may terminate an enrollment 
at any time.

[[Page 110 STAT. 301]]

    ``(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

[[Page 110 STAT. 302]]
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.
        
[[Page 110 STAT. 303]]

            ``(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.

[[Page 110 STAT. 304]]


``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) <<NOTE: Regulations.>> 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

[[Page 110 STAT. 305]]
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) <<NOTE: Federal Register, publication. 10 USC 12521 
note.>> 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) <<NOTE: 10 USC 115 note.>> The amendment made by paragraph (1) 
does not apply with respect to fiscal year 1995.

    (b) <<NOTE: 10 USC 115 note.>> 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.
        
[[Page 110 STAT. 306]]


    (c) Administration of Military Technician Program.--(1) Chapter 1007 
of title 10, United States Code, is amended by adding at the end the 
following new section:

``Sec. 10216. Military technicians

    ``(a) Priority for Management of Military Technicians.--(1) As a 
basis for making the annual request to Congress pursuant to section 115 
of this title for authorization of end strengths for military 
technicians of the Army and Air Force reserve components, the Secretary 
of Defense shall give priority to supporting authorizations for dual 
status military technicians in the following high-priority units and 
organizations:
            ``(A) Units of the Selected Reserve that are scheduled to 
        deploy no later than 90 days after mobilization.
            ``(B) Units of the Selected Reserve that are or will deploy 
        to relieve active duty peacetime operations tempo.
            ``(C) Those organizations with the primary mission of 
        providing direct support surface and aviation maintenance for 
        the reserve components of the Army and Air Force, to the extent 
        that the military technicians in such units would mobilize and 
        deploy in a skill that is compatible with their civilian 
        position skill.

    ``(2) For each fiscal year, the Secretary of Defense shall, for the 
high-priority units and organizations referred to in paragraph (1), seek 
to achieve a programmed manning level for military technicians that is 
not less than 90 percent of the programmed manpower structure for those 
units and organizations for military technicians for that fiscal year.
    ``(3) Military technician authorizations and personnel in high-
priority units and organizations specified in paragraph (1) shall be 
exempt from any requirement (imposed by law or otherwise) for reductions 
in Department of Defense civilian personnel and shall only be reduced as 
part of military force structure reductions.
    ``(b) Dual-Status Requirement.--The Secretary of Defense shall 
require the Secretary of the Army and the Secretary of the Air Force to 
establish as a condition of employment for each individual who is hired 
after the date of the enactment of this section as a military technician 
that the individual maintain membership in the Selected Reserve (so as 
to be a so-called `dual-status' technician) and shall require that the 
civilian and military position skill requirements of dual-status 
military technicians be compatible. No Department of Defense funds may 
be spent for compensation for any military technician hired after the 
date of the enactment of this section who
is not a member of the Selected Reserve, except that compensation may be 
paid for up to six months following loss of membership in the Selected 
Reserve if such loss of membership was not due to the failure to meet 
military standards.''.

    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``10216. Military technicians.''.

    (d) Review of Reserve Component Management Headquarters.--(1) The 
Secretary of Defense shall, within six months after the date of the 
enactment of this Act, undertake steps to reduce, consolidate, and 
streamline management headquarters operations of the reserve components. 
As part of those steps, the Secretary shall identify those military 
technicians positions in such

[[Page 110 STAT. 307]]
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) <<NOTE: 10 USC 10105 note.>> 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

[[Page 110 STAT. 308]]
enlisted members each year under enlistments described in that 
section.''; and
            (3) by striking out subsections (d) and (e).

    (b) <<NOTE: 10 USC 10105 note.>> 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) <<NOTE: 10 USC 10105 note.>> 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) <<NOTE: Effective date.>> 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) <<NOTE: 10 USC 10105 note.>> 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) <<NOTE: 10 USC 10105 note.>> 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) <<NOTE: 10 USC 10105 note.>> 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 Sec

[[Page 110 STAT. 309]]
        retary) 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. <<NOTE: 10 USC 1129 note.>>  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

[[Page 110 STAT. 310]]
section if the person is eligible for the prisoner-of-war medal under 
section 1128 of title 10, United States Code.
SEC. 522. <<NOTE: 10 USC 1130 note.>>  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.

[[Page 110 STAT. 311]]

    (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.  <<NOTE: 10 USC 1130 note.>> 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

[[Page 110 STAT. 312]]
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.  <<NOTE: Records. 10 USC 3741 note.>> REVIEW REGARDING 
                        UPGRADING OF DISTINGUISHED-SERVICE CROSSES 
                        AND NAVY CROSSES AWARDED TO ASIAN-
                        AMERICANS AND NATIVE AMERICAN PACIFIC 
                        ISLANDERS FOR WORLD WAR II SERVICE.

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

    (c) Definition.--For purposes of this section, the term ``Native 
American Pacific Islander'' means a Native Hawaiian and any other Native 
American Pacific Islander within the
meaning of the Native American Programs Act of 1974 (42 U.S.C. 2991 et 
seq.).
SEC. 525.  <<NOTE: 10 USC 1130 note.>> 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.

[[Page 110 STAT. 313]]

    (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
                
[[Page 110 STAT. 314]]

                    ``(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) <<NOTE: 10 USC 4348 note.>> 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:

[[Page 110 STAT. 315]]

            ``(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). <<NOTE: 10 USC 6975, 6975 note.>> 

    (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

[[Page 110 STAT. 316]]
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) <<NOTE: Federal Register, publication.>> 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

[[Page 110 STAT. 317]]
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

[[Page 110 STAT. 318]]
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.  <<NOTE: 10 USC 113 note.>> 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:

[[Page 110 STAT. 319]]

            (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.  <<NOTE: 10 USC 115 note.>> 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.

[[Page 110 STAT. 320]]

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).

[[Page 110 STAT. 321]]

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).
        
[[Page 110 STAT. 322]]


    (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) <<NOTE: 10 USC 1405.>> 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:

[[Page 110 STAT. 323]]


``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) <<NOTE: 10 USC 972 note.>> 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

[[Page 110 STAT. 324]]
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) <<NOTE: 10 USC 4303 note.>> 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) <<NOTE: Reports.>> GAO Assessment.--(1) Not later than one year 
after 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.
        
[[Page 110 STAT. 325]]

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:

[[Page 110 STAT. 326]]


``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) <<NOTE: 10 USC 129c note.>> 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

[[Page 110 STAT. 327]]
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
        
[[Page 110 STAT. 328]]

            (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) <<NOTE: 10 USC 1293 note.>> 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) <<NOTE: 33 USC 857a note.>> 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.

[[Page 110 STAT. 329]]

    ``(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) <<NOTE: 10 USC 1177 note.>> 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.

[[Page 110 STAT. 330]]

``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) <<NOTE: President.>> 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.
        
[[Page 110 STAT. 331]]


    ``(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.

[[Page 110 STAT. 332]]

``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) <<NOTE: Regulations.>> 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
        
[[Page 110 STAT. 333]]

            ``(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) <<NOTE: Regulations.>> 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) <<NOTE: Public information.>> The Secretary shall publicize 
the existence of the number.

    ``(c) <<NOTE: Regulations.>> 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 sub

[[Page 110 STAT. 334]]
section (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. <<NOTE: Regulations.>> The Secretary shall prescribe 
regulations for the provision of such assistance.

[[Page 110 STAT. 335]]


``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) <<NOTE: 10 USC 1787 note.>> 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.

[[Page 110 STAT. 336]]


    (d) <<NOTE: 10 USC 1784 note.>> 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.  <<NOTE: 10 USC 1501 note.>> 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) <<NOTE: Establishment.>> 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

[[Page 110 STAT. 337]]
Defense among the military departments, the Joint Staff, and the 
commanders of the combatant commands.
    ``(3) The office shall establish policies, which shall apply 
uniformly throughout the Department of Defense, for personnel recovery 
(including search, rescue, escape, and evasion).
    ``(4) The office shall establish procedures to be followed by 
Department of Defense boards of inquiry, and by officials reviewing the 
reports of such boards, under this chapter.
    ``(b) Uniform DoD Procedures.--(1) The Secretary of Defense shall 
prescribe procedures, to apply uniformly throughout the Department of 
Defense, for--
            ``(A) the determination of the status of persons described 
        in subsection (c); and
            ``(B) for the systematic, comprehensive, and timely 
        collection, analysis, review, dissemination, and periodic update 
        of information related to such persons.

    ``(2) Such procedures may provide for the delegation by the 
Secretary of Defense of any responsibility of the Secretary under this 
chapter to the Secretary of a military department.

    ``(3) Such procedures shall be prescribed in a single directive 
applicable to all elements of the Department of Defense.
    ``(4) As part of such procedures, the Secretary may provide for the 
extension, on a case-by-case basis, of any time limit specified in 
section 1502, 1503, or 1504 of this title. Any such extension may not be 
for a period in excess of the period with respect to which the extension 
is provided. Subsequent extensions may be provided on the same basis.
    ``(c) Covered Persons.--Section 1502 of this title applies in the 
case of the following persons:
            ``(1) Any member of the armed forces on active duty who 
        becomes involuntarily absent as a result of a hostile action, or 
        under circumstances suggesting that the involuntary absence is a 
        result of a hostile action, and whose status is undetermined or 
        who is unaccounted for.
            ``(2) Any civilian employee of the Department of Defense, 
        and any employee of a contractor of the Department of Defense, 
        who serves with or accompanies the armed forces in the field 
        under orders who becomes involuntarily absent as a result of a 
        hostile action, or under circumstances suggesting that the 
        involuntary absence is a result of a hostile action, and whose 
        status is undetermined or who is unaccounted for.

    ``(d) Primary Next of Kin.--The individual who is primary next of 
kin of any person prescribed in subsection (c) may for purposes of this 
chapter designate another individual to act on behalf of that individual 
as primary next of kin. The Secretary concerned shall treat an 
individual so designated as if the individual designated were the 
primary next of kin for purposes of this chapter. A designation under 
this subsection may be revoked at any time by the person who made the 
designation.
    ``(e) Termination of Applicability of Procedures When Missing Person 
Is Accounted for.--The provisions
of this chapter relating to boards of inquiry and to the actions by the 
Secretary concerned on the reports of those boards shall cease to apply 
in the case of a missing person upon the person becoming accounted for 
or otherwise being determined to be in a status other than missing.

[[Page 110 STAT. 338]]


    ``(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.--