[[Page 2421]]

                                                                     ³N

         NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1997

[[Page 110 STAT. 2422]]



Public Law 104-201
104th Congress

                                 An Act


 
To authorize appropriations for fiscal year 1997 for military activities 
of the Department of Defense, for military construction, and for defense 
activities of the Department of Energy, to prescribe personnel strengths 
        for such fiscal year for the Armed Forces, and for other 
           purposes. <<NOTE: Sept. 23, 1996 -  [H.R. 3230]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in <<NOTE: National Defense Authorization Act 
for Fiscal Year 1997.>>  Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Defense Authorization Act 
for Fiscal Year 1997''.

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

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

    (b) Table of Contents.--The table of contents for this Act is as 
follows:
Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

Sec. 111. Repeal of limitation on procurement of Armed Kiowa Warrior 
                    helicopters.
Sec. 112. Multiyear procurement authority for Army programs.
Sec. 113. Bradley TOW 2 Test Program sets.

                        Subtitle C--Navy Programs

Sec. 121. Nuclear attack submarine programs.
Sec. 122. Arleigh Burke class destroyer program.
Sec. 123. EA-6B aircraft reactive jammer program.
Sec. 124. T-39N trainer aircraft for the Navy.
Sec. 125. Penguin missile program.


[[Page 110 STAT. 2423]]



                     Subtitle D--Air Force Programs

Sec. 131. Repeal of limitation on procurement of F-15E aircraft.
Sec. 132. Modification to multiyear procurement authority for C-17 
                    aircraft program.

                        Subtitle E--Other Matters

Sec. 141. Assessments of modernization priorities of the Reserve 
                    components.
Sec. 142. Destruction of existing stockpile of lethal chemical agents 
                    and munitions.
Sec. 143. Extension of authority to carry out Armament Retooling and 
                    Manufacturing Support Initiative.

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Dual-use technology programs.
Sec. 204. Defense Special Weapons Agency.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Space launch modernization.
Sec. 212. Space-Based Infrared System program.
Sec. 213. Clementine 2 micro-satellite development program.
Sec. 214. Live-fire survivability testing of V-22 Osprey aircraft.
Sec. 215. Live-fire survivability testing of F-22 aircraft.
Sec. 216. Limitation on funding for F-16 tactical manned reconnaissance 
                    aircraft.
Sec. 217. Cost analysis of F-22 aircraft program.
Sec. 218. F-22 aircraft program reports.
Sec. 219. Cost-benefit analysis of F/A-18E/F aircraft program.
Sec. 220. Joint Advanced Strike Technology (JAST) program.
Sec. 221. Unmanned aerial vehicles.
Sec. 222. High altitude endurance unmanned aerial reconnaissance system.
Sec. 223. Cyclone class patrol craft self-defense.
Sec. 224. One-year extension of deadline for delivery of Enhanced Fiber 
                    Optic Guided Missile (EFOG-M) system.
Sec. 225. Hydra-70 rocket product improvement program.
Sec. 226. Federally funded research and development centers.
Sec. 227. Demilitarization of conventional munitions, rockets, and 
                    explosives.
Sec. 228. Research activities of the Defense Advanced Research Projects 
                    Agency relating to chemical and biological warfare 
                    defense technology.
Sec. 229. Certification of capability of United States to prevent 
                    illegal importation of nuclear, biological, or 
                    chemical weapons.
Sec. 230. Nonlethal weapons and technologies programs.
Sec. 231. Counterproliferation support program.

             Subtitle C--Ballistic Missile Defense Programs

Sec. 241. Funding for ballistic missile defense programs for fiscal year 
                    1997.
Sec. 242. Certification of capability of United States to defend against 
                    single ballistic missile.
Sec. 243. Report on ballistic missile defense and proliferation.
Sec. 244. Revision to annual report on ballistic missile defense 
                    program.
Sec. 245. Report on Air Force National Missile Defense Plan.
Sec. 246. Capability of National Missile Defense system.
Sec. 247. Actions to limit adverse effects on private sector employment 
                    of establishment of National Missile Defense Joint 
                    Program Office.
Sec. 248. ABM Treaty defined.

                        Subtitle D--Other Matters

Sec. 261. Maintenance and repair at Air Force installations.
Sec. 262. Report relating to Small Business Innovation Research Program.
Sec. 263. Amendment to University Research Initiative Support program.
Sec. 264. Amendments to Defense Experimental Program To Stimulate 
                    Competitive Research.
Sec. 265. Elimination of report on the use of competitive procedures for 
                    the award of certain contracts to colleges and 
                    universities.
Sec. 266. Pilot program for transfer of defense technology information 
                    to private industry.
Sec. 267. Research under transactions other than contracts and grants.
Sec. 268. Desalting technologies.
Sec. 269. Evaluation of digital video network equipment used in Olympic 
                    games.

[[Page 110 STAT. 2424]]

Sec. 270. Annual joint warfighting science and technology plan.

         Subtitle E--National Oceanographic Partnership Program

Sec. 281. Findings.
Sec. 282. National Oceanographic Partnership Program.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Civil Air Patrol Corporation.
Sec. 306. Availability of additional funds for antiterrorism activities.
Sec. 307. Nonlethal weapons capabilities.
Sec. 308. SR-71 contingency reconnaissance force.

                   Subtitle B--Depot-Level Activities

Sec. 311. Extension of authority for aviation depots and naval shipyards 
                    to engage in defense-related production and 
                    services.
Sec. 312. Test programs for modernization-through-spares.

                  Subtitle C--Environmental Provisions

Sec. 321. Defense contractors covered by requirement for reports on 
                    contractor reimbursement costs for response actions.
Sec. 322. Establishment of separate environmental restoration accounts 
                    for each military department.
Sec. 323. Payment of stipulated penalties assessed under CERCLA.
Sec. 324. Shipboard solid waste control.
Sec. 325. Authority to develop and implement land use plans for defense 
                    environmental restoration program.
Sec. 326. Pilot program to test alternative technology for limiting air 
                    emissions during shipyard blasting and coating 
                    operations.
Sec. 327. Agreements for services of other agencies in support of 
                    environmental technology certification.
Sec. 328. Repeal of redundant notification and consultation requirements 
                    regarding remedial investigations and feasibility 
                    studies at certain installations to be closed under 
                    the base closure laws.
Sec. 329. Authority for agreements with Indian tribes for services under 
                    environmental restoration program.
Sec. 330. Authority to withhold listing of Federal facilities on 
                    National Priorities List.
Sec. 331. Clarification of meaning of uncontaminated property for 
                    purposes of transfer by the United States.
Sec. 332. Conservation and cultural activities.
Sec. 333. Navy program to monitor ecological effects of organotin.
Sec. 334. Authority to transfer contaminated Federal property before 
                    completion of required response actions.

   Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 341. Contracts with other agencies to provide or obtain goods and 
                    services to promote efficient operation and 
                    management of exchanges and morale, welfare, and 
                    recreation activities.
Sec. 342. Noncompetitive procurement of brand-name commercial items for 
                    resale in commissary stores.
Sec. 343. Prohibition of sale or rental of sexually explicit material.

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

Sec. 351. Extension of requirement for competitive procurement of 
                    printing and duplication services.
Sec. 352. Reporting requirements under demonstration project for 
                    purchase of fire, security, police, public works, 
                    and utility services from local government agencies.

                        Subtitle F--Other Matters

Sec. 361. Authority for use of appropriated funds for recruiting 
                    functions.
Sec. 362. Training of members of the uniformed services at non-
                    Government facilities.
Sec. 363. Requirement for preparation of plan for improved operation of 
                    working-capital funds and effect of failure to 
                    produce an approved plan.

[[Page 110 STAT. 2425]]

Sec. 364. Increase in capital asset threshold under Defense Business 
                    Operations Fund.
Sec. 365. Expansion of authority to donate unusable food.
Sec. 366. Assistance to committees involved in inauguration of the 
                    President.
Sec. 367. Department of Defense support for sporting events.
Sec. 368. Storage of motor vehicle in lieu of transportation.
Sec. 369. Security protections at Department of Defense facilities in 
                    National Capital Region.
Sec. 370. Administration of midshipmen's store and other naval academy 
                    support activities as nonappropriated fund 
                    instrumentality.
Sec. 371. Reimbursement under agreement for instruction of civilian 
                    students at Foreign Language Institute of the 
                    Defense Language Institute.
Sec. 372. Assistance to local educational agencies that benefit 
                    dependents of members of the Armed Forces and 
                    Department of Defense civilian employees.
Sec. 373. Renovation of building for Defense Finance and Accounting 
                    Service Center, Fort Benjamin Harrison, Indiana.
Sec. 374. Food donation pilot program at service academies.
Sec. 375. Authority of Air National Guard to provide certain services at 
                    Lincoln Municipal Airport, Lincoln, Nebraska.
Sec. 376. Technical amendment regarding Impact Aid program.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Permanent end strength levels to support two major regional 
                    contingencies.
Sec. 403. Authorized strengths for commissioned officers on active duty 
                    in grades of major, lieutenant colonel, and colonel 
                    and Navy grades of lieutenant commander, commander, 
                    and captain.
Sec. 404. Extension of requirement for recommendations regarding 
                    appointments to joint 4-star officer positions.
Sec. 405. Increase in authorized number of general officers on active 
                    duty in the Marine Corps.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for reserves on active duty in support of the 
                    Reserves.
Sec. 413. End strengths for military technicians.
Sec. 414. Assurance of continued assignment of military personnel to 
                    serve in Selective Service System.

               Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Grade of Chief of Naval Research.
Sec. 502. Chief and Assistant Chief of Army Nurse Corps and Air Force 
                    Nurse Corps.
Sec. 503. Navy spot promotion authority for certain lieutenants with 
                    critical skills.
Sec. 504. Time for award of degrees by unaccredited educational 
                    institutions for graduates to be considered 
                    educationally qualified for appointment as Reserve 
                    officers in grade O-3.
Sec. 505. Exception to baccalaureate degree requirement for appointment 
                    in the Naval Reserve in grades above O-2.
Sec. 506. Chief warrant officer promotions.
Sec. 507. Service credit for senior ROTC cadets and midshipmen in 
                    simultaneous membership program.
Sec. 508. Continuation on active status for certain Reserve officers of 
                    the Air Force.
Sec. 509. Reports on response to recommendations concerning improvements 
                    to Department of Defense joint manpower process.
Sec. 510. Frequency of reports to Congress on joint officer management 
                    policies.

                  Subtitle B--Enlisted Personnel Policy

Sec. 511. Career service reenlistments for members with at least 10 
                    years of service.
Sec. 512. Authority to extend period for entry on active duty under the 
                    delayed entry program.

[[Page 110 STAT. 2426]]

                    Subtitle C--Activation and Recall

Sec. 521. Limitations on recall of retired members to active duty.
Sec. 522. Clarification of definition of active status.
Sec. 523. Limitation of requirement for physical examinations of members 
                    of National Guard called into Federal service.

                Subtitle D--Reserve Component Retirement

Sec. 531. Increase in annual limit on days of inactive duty training 
                    creditable toward Reserve retirement.
Sec. 532. Retirement of Reserve enlisted members who qualify for active 
                    duty retirement after administrative reduction in 
                    enlisted grade.
Sec. 533. Authority for a Reserve on active duty to waive retirement 
                    sanctuary.
Sec. 534. Eligibility of Reserves for disability retirement.

               Subtitle E--Other Reserve Component Matters

Sec. 541. Training for Reserves on active duty in support of the 
                    Reserves.
Sec. 542. Eligibility for enrollment in Ready Reserve mobilization 
                    income insurance program.
Sec. 543. Reserve credit for participation in Health Professions 
                    Scholarship and Financial Assistance Program.
Sec. 544. Amendments to Reserve Officer Personnel Management Act 
                    provisions.
Sec. 545. Report on number of advisers in active component support of 
                    Reserves pilot program.
Sec. 546. Sense of Congress and report regarding reemployment rights for 
                    mobilized Reservists employed in foreign countries.
Sec. 547. Payment of premiums under Mobilization Income Insurance 
                    Program.

                 Subtitle F--Officer Education Programs

Sec. 551. Oversight and management of Senior Reserve Officers' Training 
                    Corps program.
Sec. 552. Prohibition on reorganization of Army ROTC cadet command or 
                    termination of senior ROTC units pending report on 
                    ROTC.
Sec. 553. Pilot program to test expansion of ROTC program to include 
                    graduate students.
Sec. 554. Demonstration project for instruction and support of Army ROTC 
                    units by members of the Army Reserve and National 
                    Guard.
Sec. 555. Extension of maximum age for appointment as a cadet or 
                    midshipman in the Senior Reserve Officers' Training 
                    Corps and the service academies.
Sec. 556. Expansion of eligibility for education benefits to include 
                    certain Reserve Officers' Training Corps (ROTC) 
                    participants.
Sec. 557. Comptroller General report on cost and policy implications of 
                    permitting up to five percent of service academy 
                    graduates to be assigned directly to Reserve duty 
                    upon graduation.

                   Subtitle G--Decorations and Awards

Sec. 561. Authority for award of Medal of Honor to certain African 
                    American soldiers who served during World War II.
Sec. 562. Waiver of time limitations for award of certain decorations to 
                    specified persons.
Sec. 563. Replacement of certain American Theater Campaign Ribbons.

                        Subtitle H--Other Matters

Sec. 571. Hate crimes in the military.
Sec. 572. Disability coverage for members granted excess leave for 
                    educational or emergency purposes.
Sec. 573. Clarification of authority of a Reserve judge advocate to act 
                    as a military notary public when not in a duty 
                    status.
Sec. 574. Panel on jurisdiction of courts-martial for the National Guard 
                    when not in Federal service.
Sec. 575. Authority to expand law enforcement placement program to 
                    include firefighters.
Sec. 576. Improvements to program to assist separated military and 
                    civilian personnel to obtain employment as teachers 
                    or teachers' aides.
Sec. 577. Retirement at grade to which selected for promotion when a 
                    physical disability is found at any physical 
                    examination.
Sec. 578. Revisions to missing persons authorities.

       Subtitle I--Commissioned Corps of the Public Health Service

Sec. 581. Applicability to Public Health Service of prohibition on 
                    crediting cadet or midshipmen service at the service 
                    academies.

[[Page 110 STAT. 2427]]

Sec. 582. Exception to strength limitations for Public Health Service 
                    officers assigned to the Department of Defense.
Sec. 583. Authority to provide legal assistance to Public Health Service 
                    officers.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Military pay raise for fiscal year 1997.
Sec. 602. Adjustment of rate of cadet and midshipman pay.
Sec. 603. Pay of senior noncommissioned officers while hospitalized.
Sec. 604. Availability of basic allowance for quarters for certain 
                    members without dependents who serve on sea duty.
Sec. 605. Uniform applicability of discretion to deny an election not to 
                    occupy Government quarters.
Sec. 606. Establishment of minimum monthly amount of variable housing 
                    allowance for high housing cost areas.
Sec. 607. Family separation allowance for members separated by military 
                    orders from spouses who are members.
Sec. 608. Waiver of time limitations for claim for pay and allowances.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay 
                    authorities for reserve forces.
Sec. 612. One-year extension of certain bonuses and special pay 
                    authorities for nurse officer candidates, registered 
                    nurses, and nurse anesthetists.
Sec. 613. One-year extension of authorities relating to payment of other 
                    bonuses and special pays.
Sec. 614. Special pay for certain Public Health Service officers.
Sec. 615. Special incentives to recruit and retain dental officers.
Sec. 616. Foreign language proficiency pay for Public Health Service and 
                    National Oceanic and Atmospheric Administration 
                    officers.

            Subtitle C--Travel and Transportation Allowances

Sec. 621. Allowance in connection with shipping motor vehicle at 
                    Government expense.
Sec. 622. Dislocation allowance at a rate equal to two and one-half 
                    months basic allowance for quarters.
Sec. 623. Allowance for travel performed in connection with leave 
                    between consecutive overseas tours.
Sec. 624. Funding for transportation of household effects of Public 
                    Health Service officers.

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

Sec. 631. Effective date for military retiree cost-of-living adjustment 
                    for fiscal year 1998.
Sec. 632. Clarification of initial computation of retiree COLAs after 
                    retirement.
Sec. 633. Suspension of payment of retired pay of members who are absent 
                    from the United States to avoid prosecution.
Sec. 634. Nonsubstantive restatement of Survivor Benefit Plan statute.
Sec. 635. Increases in Survivor Benefit Plan contributions to be 
                    effective concurrently with payment of retired pay 
                    cost-of-living increases.
Sec. 636. Amendments to the Uniformed Services Former Spouses' 
                    Protection Act.
Sec. 637. Prevention of circumvention of court order by waiver of 
                    retired pay to enhance civil service retirement 
                    annuity.
Sec. 638. Administration of benefits for so-called minimum income 
                    widows.

                        Subtitle E--Other Matters

Sec. 651. Discretionary allotment of pay, including retired or retainer 
                    pay.
Sec. 652. Reimbursement for adoption expenses incurred in adoptions 
                    through private placements.
Sec. 653. Waiver of recoupment of amounts withheld for tax purposes from 
                    certain separation pay.
Sec. 654. Technical correction clarifying limitation on furnishing 
                    clothing or allowances for enlisted National Guard 
                    technicians.
Sec. 655. Technical correction to prior authority for payment of back 
                    pay to certain persons.
Sec. 656. Compensation for persons awarded prisoner of war medal who did 
                    not previously receive compensation as a prisoner of 
                    war.
Sec. 657. Payments to certain persons captured and interned by North 
                    Vietnam.

                    TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Preventive health care screening for colon and prostate 
                    cancer.

[[Page 110 STAT. 2428]]

Sec. 702. Implementation of requirement for Selected Reserve dental 
                    insurance plan.
Sec. 703. Dental insurance plan for military retirees and unremarried 
                    surviving spouses and certain other dependents of 
                    military retirees.
Sec. 704. Plan for health care coverage for children with medical 
                    conditions caused by parental exposure to chemical 
                    munitions while serving as members of the Armed 
                    Forces.

                       Subtitle B--TRICARE Program

Sec. 711. CHAMPUS payment limits for TRICARE prime enrollees.
Sec. 712. Improved information exchange between military treatment 
                    facilities and TRICARE program contractors.
Sec. 713. Plans for medicare subvention demonstration programs.

           Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Definitions.
Sec. 722. Inclusion of designated providers in uniformed services health 
                    care delivery system.
Sec. 723. Provision of uniform benefit by designated providers.
Sec. 724. Enrollment of covered beneficiaries.
Sec. 725. Application of CHAMPUS payment rules.
Sec. 726. Payments for services.
Sec. 727. Repeal of superseded authorities.

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

Sec. 731. Authority to waive CHAMPUS exclusion regarding nonmedically 
                    necessary treatment in connection with certain 
                    clinical trials.
Sec. 732. Exception to maximum allowable payments to individual health-
                    care providers under CHAMPUS.
Sec. 733. Codification of annual authority to credit CHAMPUS refunds to 
                    current year appropriation.
Sec. 734. Exceptions to requirements regarding obtaining 
                    nonavailability-of-health-care statements.
Sec. 735. Enhancement of third-party collection and secondary payer 
                    authorities under CHAMPUS.

                        Subtitle E--Other Matters

Sec. 741. Alternatives to active duty service obligation under Armed 
                    Forces Health Professions Scholarship and Financial 
                    Assistance program and Uniformed Services University 
                    of the Health Sciences.
Sec. 742. External peer review for defense health program extramural 
                    medical research involving human subjects.
Sec. 743. Independent research regarding Gulf War syndrome.
Sec. 744. Comptroller General review of health care activities of 
                    Department of Defense relating to Gulf War 
                    illnesses.
Sec. 745. Report regarding specialized treatment facility program.
Sec. 746. Study of means of ensuring uniformity in provision of medical 
                    and dental care for members of Reserve components.
Sec. 747. Sense of Congress regarding tax treatment of Armed Forces 
                    Health Professions Scholarship and Financial 
                    Assistance program.

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

                   Subtitle A--Acquisition Management

Sec. 801. Procurement technical assistance programs.
Sec. 802. Extension of pilot mentor-protege program.
Sec. 803. Authority to waive certain requirements for defense 
                    acquisition pilot programs.
Sec. 804. Modification of authority to carry out certain prototype 
                    projects.
Sec. 805. Increase in threshold amounts for major systems.
Sec. 806. Revisions in information required to be included in selected 
                    acquisition reports.
Sec. 807. Increase in simplified acquisition threshold for humanitarian 
                    or peacekeeping operations.
Sec. 808. Expansion of audit reciprocity among Federal agencies to 
                    include post-award audits.
Sec. 809. Excessive compensation of certain contractor personnel.
Sec. 810. Exception to prohibition on procurement of foreign goods.

[[Page 110 STAT. 2429]]

                        Subtitle B--Other Matters

Sec. 821. Prohibition on release of contractor proposals under Freedom 
                    of Information Act.
Sec. 822. Amendments relating to reports on procurement regulatory 
                    activity.
Sec. 823. Amendment of multiyear limitation on contracts for inspection, 
                    maintenance, and repair.
Sec. 824. Streamlined notice requirements to contractors and employees 
                    regarding termination or substantial reduction in 
                    contracts under major defense programs.
Sec. 825. Repeal of notice requirements for substantially or seriously 
                    affected parties in downsizing efforts.
Sec. 826. Study of effectiveness of defense mergers.
Sec. 827. Annual report relating to Buy American Act.
Sec. 828. Foreign environmental technology.
Sec. 829. Assessment of national defense technology and industrial base 
                    and dependency of base on supplies available only 
                    from foreign countries.
Sec. 830. Expansion of report on implementation of automated information 
                    systems to include additional matters regarding 
                    information resources management.
Sec. 831. Year 2000 software conversion.
Sec. 832. Procurement from firms in industrial base for production of 
                    small arms.
Sec. 833. Cable television franchise agreements.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                       Subtitle A--General Matters

Sec. 901. Repeal of previously enacted reduction in number of statutory 
                    positions in Office of the Secretary of Defense.
Sec. 902. Additional required reduction in defense acquisition 
                    workforce.
Sec. 903. Reduction of personnel assigned to Office of the Secretary of 
                    Defense.
Sec. 904. Report on military department headquarters staffs.
Sec. 905. Matters to be considered in next assessment of current 
                    missions, responsibilities, and force structure of 
                    the unified combatant commands.
Sec. 906. Transfer of authority to control transportation systems in 
                    time of war.
Sec. 907. Codification of requirements relating to continued operation 
                    of the Uniformed Services University of the Health 
                    Sciences.
Sec. 908. Joint Requirements Oversight Council.
Sec. 909. Membership of the Ammunition Storage Board.
Sec. 910. Removal of Secretary of the Army from membership on the 
                    Foreign Trade Zone Board.
Sec. 911. Composition of aircraft accident investigation boards.
Sec. 912. Mission of the White House Communications Agency.

                   Subtitle B--Force Structure Review

Sec. 921. Short title.
Sec. 922. Findings.
Sec. 923. Quadrennial Defense Review.
Sec. 924. National Defense Panel.
Sec. 925. Postponement of deadlines.
Sec. 926. Definitions.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authority for obligation of certain unauthorized fiscal year 
                      1996 defense appropriations.
Sec. 1004. Authorization of prior emergency supplemental appropriations 
                      for fiscal year 1996.
Sec. 1005. Format for budget requests for Navy/Marine Corps and Air 
                      Force ammunition accounts.
Sec. 1006. Format for annual budget requests for Defense Airborne 
                      Reconnaissance Program.
Sec. 1007. Limitation on use of Department of Defense funds transferred 
                      to the Coast Guard.
Sec. 1008. Fisher House Trust Fund for the Department of the Navy.
Sec. 1009. Designation and liability of disbursing and certifying 
                      officials for the Coast Guard.
Sec. 1010. Authority to suspend or terminate collection actions against 
                      deceased members of the Coast Guard.

[[Page 110 STAT. 2430]]

Sec. 1011. Department of Defense disbursing official check cashing and 
                      exchange transactions.

                 Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Repeal of requirement for continuous applicability of 
                      contracts for phased maintenance of AE class 
                      ships.
Sec. 1022. Funding for second and third maritime prepositioning ships 
                      out of National Defense Sealift Fund.
Sec. 1023. Transfer of certain obsolete tugboats of the Navy.
Sec. 1024. Transfer of U.S.S. Drum to city of Vallejo, California.
Sec. 1025. Sense of Congress concerning USS LCS 102 (LSSL 102).

                   Subtitle C--Counter-Drug Activities

Sec. 1031. Authority to provide additional support for counter-drug 
                      activities of Mexico.
Sec. 1032. Availability of funds for certain drug interdiction and 
                      counter-drug activities.
Sec. 1033. Transfer of excess personal property to support law 
                      enforcement activities.
Sec. 1034. Sale by Federal departments or agencies of chemicals used to 
                      manufacture controlled substances.

                     Subtitle D--Reports and Studies

Sec. 1041. Annual report on Operation Provide Comfort and Operation 
                      Enhanced Southern Watch.
Sec. 1042. Annual report on emerging operational concepts.
Sec. 1043. Report on Department of Defense military child care programs.
Sec. 1044. Report on Department of Defense military youth programs.
Sec. 1045. Quarterly reports regarding coproduction agreements.
Sec. 1046. Report on witness interview procedures for Department of 
                      Defense criminal investigations.
Sec. 1047. Report on military readiness requirements of the Armed 
                      Forces.
Sec. 1048. Report on NATO enlargement.

         Subtitle E--Management of Armed Forces Retirement Home

Sec. 1051. Retirement Home Boards of Directors.
Sec. 1052. Acceptance of uncompensated services.
Sec. 1053. Disposal of tract of real property in the District of 
                      Columbia.

                        Subtitle F--Other Matters

Sec. 1061. Policy on protection of national information infrastructure 
                      against strategic attack.
Sec. 1062. Information systems security program.
Sec. 1063. Authority to accept services from foreign governments and 
                      international organizations for defense purposes.
Sec. 1064. Prohibition on collection and release of detailed satellite 
                      imagery relating to Israel.
Sec. 1065. George C. Marshall European Center for Strategic Security 
                      Studies.
Sec. 1066. Authority to award to civilian participants in the defense of 
                      Pearl Harbor the Congressional Medal previously 
                      authorized only for military participants in the 
                      defense of Pearl Harbor.
Sec. 1067. Assimilative crimes authority for traffic offenses on 
                      military installations.
Sec. 1068. Uniform Code of Military Justice amendments.
Sec. 1069. Punishment of interstate stalking.
Sec. 1070. Participation of members, dependents, and other persons in 
                      crime prevention efforts at installations.
Sec. 1071. Display of State flags at installations and facilities of the 
                      Department of Defense.
Sec. 1072. Treatment of excess operational support airlift aircraft.
Sec. 1073. Correction to statutory references to certain Department of 
                      Defense organizations.
Sec. 1074. Technical and clerical amendments.
Sec. 1075. Modification to third-party liability to United States for 
                      tortious infliction of injury or disease on 
                      members of the uniformed services.
Sec. 1076. Chemical Stockpile Emergency Preparedness Program.
Sec. 1077. Exemption from requirements applicable to savings 
                      associations for certain savings institutions 
                      serving military personnel.
Sec. 1078. Improvements to National Security Education Program.
Sec. 1079. Aviation and vessel war risk insurance.

[[Page 110 STAT. 2431]]

Sec. 1080. Designation of memorial as National D-Day Memorial.
Sec. 1081. Sense of Congress regarding semiconductor trade agreement 
                      between United States and Japan.
Sec. 1082. Agreements for exchange of defense personnel between the 
                      United States and foreign countries.
Sec. 1083. Sense of Senate regarding Bosnia and Herzegovina.
Sec. 1084. Defense burdensharing.

              TITLE XI--NATIONAL IMAGERY AND MAPPING AGENCY

Sec. 1101. Short title.
Sec. 1102. Findings.
Sec. 1103. Role of Director of Central Intelligence in appointment and 
                      evaluation of certain intelligence officials.

                   Subtitle A--Establishment of Agency

Sec. 1111. Establishment.
Sec. 1112. Missions and authority.
Sec. 1113. Transfers of personnel and assets.
Sec. 1114. Compatibility with authority under the National Security Act 
                      of 1947.
Sec. 1115. Creditable civilian service for career conditional employees 
                      of the Defense Mapping Agency.
Sec. 1116. Saving provisions.
Sec. 1117. Definitions.
Sec. 1118. Authorization of appropriations.

          Subtitle B--Conforming Amendments and Effective Dates

Sec. 1121. Redesignation and repeals.
Sec. 1122. Reference amendments.
Sec. 1123. Headings and clerical amendments.
Sec. 1124. Effective date.

                TITLE XII--RESERVE FORCES REVITALIZATION

Sec. 1201. Short title.
Sec. 1202. Purpose.

                 Subtitle A--Reserve Component Structure

Sec. 1211. Reserve component commands.
Sec. 1212. Reserve component chiefs.
Sec. 1213. Review of active duty and Reserve general and flag officer 
                      authorizations.
Sec. 1214. Guard and Reserve technicians.

               Subtitle B--Reserve Component Accessibility

Sec. 1231. Report to Congress on measures to improve National Guard and 
                      Reserve ability to respond to emergencies.
Sec. 1232. Report to Congress concerning tax incentives for employers of 
                      members of Reserve components.
Sec. 1233. Report to Congress concerning income insurance program for 
                      activated Reservists.
Sec. 1234. Report to Congress concerning small business loans for 
                      members released from Reserve service during 
                      contingency operations.

                 Subtitle C--Reserve Forces Sustainment

Sec. 1251. Report concerning tax deductibility of nonreimbursable 
                      expenses.
Sec. 1252. Authority to pay transient housing charges for members 
                      performing active duty for training.
Sec. 1253. Sense of Congress concerning quarters allowance during 
                      service on active duty for training.
Sec. 1254. Sense of Congress concerning military leave policy.
Sec. 1255. Reserve Forces Policy Board.
Sec. 1256. Report on parity of benefits for active duty service and 
                      Reserve service.
Sec. 1257. Information on proposed funding for the Guard and Reserve 
                      components in future-years defense programs.

              TITLE XIII--ARMS CONTROL AND RELATED MATTERS

 Subtitle A--Arms Control, Counterproliferation Activities, and Related 
                                 Matters

Sec. 1301. Extension of counterproliferation authorities.
Sec. 1302. Limitation on retirement or dismantlement of strategic 
                      nuclear delivery systems.

[[Page 110 STAT. 2432]]

Sec. 1303. Strengthening certain sanctions against nuclear proliferation 
                      activities.
Sec. 1304. Authority to pay certain expenses relating to humanitarian 
                      and civic assistance for clearance of landmines.
Sec. 1305. Report on military capabilities of People's Republic of 
                      China.
Sec. 1306. Presidential report regarding weapons proliferation and 
                      policies of the People's Republic of China.
Sec. 1307. United States-People's Republic of China Joint Defense 
                      Conversion Commission.
Sec. 1308. Sense of Congress concerning export controls.
Sec. 1309. Counterproliferation Program Review Committee.
Sec. 1310. Sense of Congress concerning assisting other countries to 
                      improve security of fissile material.
Sec. 1311. Review by Director of Central Intelligence of National 
                      Intelligence Estimate 95-19.

  Subtitle B--Commission to Assess the Ballistic Missile Threat to the 
                              United States

Sec. 1321. Establishment of Commission.
Sec. 1322. Duties of Commission.
Sec. 1323. Report.
Sec. 1324. Powers.
Sec. 1325. Commission procedures.
Sec. 1326. Personnel matters.
Sec. 1327. Miscellaneous administrative provisions.
Sec. 1328. Funding.
Sec. 1329. Termination of the Commission.

         TITLE XIV--DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION

Sec. 1401. Short title.
Sec. 1402. Findings.
Sec. 1403. Definitions.

                    Subtitle A--Domestic Preparedness

Sec. 1411. Response to threats of terrorist use of weapons of mass 
                      destruction.
Sec. 1412. Emergency response assistance program.
Sec. 1413. Nuclear, chemical, and biological emergency response.
Sec. 1414. Chemical-biological emergency response team.
Sec. 1415. Testing of preparedness for emergencies involving nuclear, 
                      radiological, chemical, and biological weapons.
Sec. 1416. Military assistance to civilian law enforcement officials in 
                      emergency situations involving biological or 
                      chemical weapons.
Sec. 1417. Rapid response information system.

  Subtitle B--Interdiction of Weapons of Mass Destruction and Related 
                                Materials

Sec. 1421. Procurement of detection equipment United States border 
                      security.
Sec. 1422. Extension of coverage of International Emergency Economic 
                      Powers Act.
Sec. 1423. Sense of Congress concerning criminal penalties.
Sec. 1424. International border security.

 Subtitle C--Control and Disposition of Weapons of Mass Destruction and 
             Related Materials Threatening the United States

Sec. 1431. Coverage of weapons-usable fissile materials in Cooperative 
                      Threat Reduction programs on elimination or 
                      transportation of nuclear weapons.
Sec. 1432. Elimination of plutonium production.

     Subtitle D--Coordination of Policy and Countermeasures Against 
              Proliferation of Weapons of Mass Destruction

Sec. 1441. National Coordinator on Nonproliferation.
Sec. 1442. National Security Council Committee on Nonproliferation.
Sec. 1443. Comprehensive preparedness program.
Sec. 1444. Termination.

                        Subtitle E--Miscellaneous

Sec. 1451. Sense of Congress concerning contracting policy.
Sec. 1452. Transfers of allocations among Cooperative Threat Reduction 
                      programs.
Sec. 1453. Sense of Congress concerning assistance to states of former 
                      Soviet Union.

[[Page 110 STAT. 2433]]

Sec. 1454. Purchase of low-enriched uranium derived from Russian highly 
                      enriched uranium.
Sec. 1455. Sense of Congress concerning purchase, packaging, and 
                      transportation of fissile materials at risk of 
                      theft.

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

Sec. 1501. Specification of Cooperative Threat Reduction programs.
Sec. 1502. Fiscal year 1997 funding allocations.
Sec. 1503. Prohibition on use of funds for specified purposes.
Sec. 1504. Limitation on use of funds until specified reports are 
                      submitted.
Sec. 1505. Availability of funds.

           TITLE XVI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Subtitle A--Miscellaneous Matters Relating to Personnel Management, Pay, 
                             and Allowances

Sec. 1601. Modification of requirement for conversion of military 
                      positions to civilian positions.
Sec. 1602. Retention of civilian employee positions at military training 
                      bases transferred to National Guard.
Sec. 1603. Clarification of applicability of certain management 
                      constraints on major range and test facility base 
                      structure.
Sec. 1604. Travel expenses and health care for civilian employees of the 
                      Department of Defense abroad.
Sec. 1605. Travel, transportation, and relocation allowances for certain 
                      former nonappropriated fund employees.
Sec. 1606. Employment and salary practices applicable to Department of 
                      Defense overseas teachers.
Sec. 1607. Employment and compensation of civilian faculty members at 
                      certain Department of Defense schools.
Sec. 1608. Reimbursement of Department of Defense domestic dependent 
                      school board members for certain expenses.
Sec. 1609. Modification of authority for civilian employees of 
                      Department of Defense to participate voluntarily 
                      in reductions in force.
Sec. 1610. Wage-board compensatory time off.
Sec. 1611. Liquidation of restored annual leave that remains unused upon 
                      transfer of employee from installation being 
                      closed or realigned.
Sec. 1612. Waiver of requirement for repayment of Voluntary Separation 
                      Incentive pay by former Department of Defense 
                      employees reemployed by the Government without 
                      pay.
Sec. 1613. Simplification of rules relating to the observance of certain 
                      holidays.
Sec. 1614. Revision of certain travel management authorities.
Sec. 1615. Failure to comply with veterans' preference requirements to 
                      be treated as a prohibited personnel practice.
Sec. 1616. Pilot programs for defense employees converted to contractor 
                      employees due to privatization at closed military 
                      installations.

     Subtitle B--Department of Defense Intelligence Personnel Policy

Sec. 1631. Short title.
Sec. 1632. Management of civilian intelligence personnel.
Sec. 1633. Repeal of superseded sections and clerical and conforming 
                      amendments.
Sec. 1634. Other personnel management authorities.
Sec. 1635. Effective date.

               TITLE XVII--FEDERAL EMPLOYEE TRAVEL REFORM

Sec. 1701. Short title.

                     Subtitle A--Relocation Benefits

Sec. 1711. Allowance for seeking permanent residence quarters.
Sec. 1712. Temporary quarters subsistence expenses allowance.
Sec. 1713. Modification of residence transaction expenses allowance.
Sec. 1714. Authority to pay for property management services.
Sec. 1715. Authority to transport a privately owned motor vehicle within 
                      the continental United States.
Sec. 1716. Authority to pay limited relocation allowances to an employee 
                      who is performing an extended assignment.
Sec. 1717. Authority to pay a home marketing incentive.
Sec. 1718. Revision and reenactment of additional provisions relating to 
                      relocation expenses.

[[Page 110 STAT. 2434]]

                  Subtitle B--Miscellaneous Provisions

Sec. 1721. Repeal of the long-distance telephone call certification 
                      requirement.
Sec. 1722. Transfer of authority to prescribe regulations.
Sec. 1723. Conforming and clerical amendments.
Sec. 1724. Assessment of cost savings.
Sec. 1725. Effective date and issuance of regulations.

     TITLE XVIII--FEDERAL CHARTER FOR THE FLEET RESERVE ASSOCIATION

Sec. 1801. Recognition and grant of Federal charter.
Sec. 1802. Powers.
Sec. 1803. Purposes.
Sec. 1804. Service of process.
Sec. 1805. Membership.
Sec. 1806. Board of directors.
Sec. 1807. Officers.
Sec. 1808. Restrictions.
Sec. 1809. Liability.
Sec. 1810. Maintenance and inspection of books and records.
Sec. 1811. Audit of financial transactions.
Sec. 1812. Annual report.
Sec. 1813. Reservation of right to alter, amend, or repeal charter.
Sec. 1814. Tax-exempt status required as condition of charter.
Sec. 1815. Termination.
Sec. 1816. Definition of State.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                             TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Land acquisition, National Ground Intelligence Center, 
                      Charlottesville, Virginia.

                            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. Beach replenishment, Naval Air Station, North Island, 
                      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. Elimination of authority to carry out fiscal year 1995 
                      project, Spangdahlem Air Force Base, Germany.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition 
                      projects.
Sec. 2402. Military housing planning and design.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Military housing improvement program.
Sec. 2405. Energy conservation projects.
Sec. 2406. Authorization of appropriations, Defense Agencies.
Sec. 2407. Reduction in amounts authorized to be appropriated for fiscal 
                      year 1996 Defense Agencies military construction, 
                      land acquisition, and military family housing 
                      functions.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

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

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
                      acquisition projects.

[[Page 110 STAT. 2435]]

Sec. 2602. Authorization and funding for construction and improvement of 
                      Naval Reserve Centers.
Sec. 2603. Upgrade Air National Guard facilities, Bangor International 
                      Airport, Maine.

         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 1994 
                      projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1993 
                      projects.
Sec. 2704. Extension of authorizations of certain fiscal year 1992 
                      projects.
Sec. 2705. Effective date.

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Increase in certain thresholds for unspecified minor 
                      construction projects.
Sec. 2802. Redesignation of North Atlantic Treaty Organization 
                      Infrastructure program.
Sec. 2803. Improvements to family housing units.
Sec. 2804. Availability of funds for planning, execution, and 
                      administration of contracts for family housing and 
                      unaccompanied housing.

            Subtitle B--Defense Base Closure and Realignment

Sec. 2811. Restoration of authority for certain intragovernment 
                      transfers under 1988 base closure law.
Sec. 2812. Contracting for certain services at facilities remaining on 
                      closed installations.
Sec. 2813. Authority to compensate owners of manufactured housing.
Sec. 2814. Additional purpose for which adjustment and diversification 
                      assistance is authorized.
Sec. 2815. Payment of stipulated penalties assessed under CERCLA in 
                      connection with Loring Air Force Base, Maine.
Sec. 2816. Plan for utilization, reutilization, or disposal of 
                      Mississippi Army Ammunition Plant.

                      Subtitle C--Land Conveyances

                        Part I--Army Conveyances

Sec. 2821. Transfer of lands, Arlington National Cemetery, Arlington, 
                      Virginia.
Sec. 2822. Land transfer, Fort Sill, Oklahoma.
Sec. 2823. Land conveyance, Army Reserve Center, Rushville, Indiana.
Sec. 2824. Land conveyance, Army Reserve Center, Anderson, South 
                      Carolina.
Sec. 2825. Land conveyance, Army Reserve Center, Montpelier, Vermont.
Sec. 2826. Land conveyance, Crafts Brothers Reserve Training Center, 
                      Manchester, New Hampshire.
Sec. 2827. Land conveyance, Pine Bluff Arsenal, Arkansas.
Sec. 2828. Reaffirmation of land conveyances, Fort Sheridan, Illinois.

                        Part II--Navy Conveyances

Sec. 2831. Land transfer, Potomac Annex, District of Columbia.
Sec. 2832. Land exchange, St. Helena Annex, Norfolk Naval Shipyard, 
                      Virginia.
Sec. 2833. Land conveyance, Calverton Pine Barrens, Naval Weapons 
                      Industrial Reserve Plant, Calverton, New York.
Sec. 2834. Land conveyance, former naval reserve facility, Lewes, 
                      Delaware.
Sec. 2835. Modification of land conveyance authority, Naval Reserve 
                      Center, Seattle, Washington.
Sec. 2836. Release of condition on reconveyance of transferred land, 
                      Guam.
Sec. 2837. Lease to facilitate construction of Reserve center, Naval Air 
                      Station, Meridian, Mississippi.

                     Part III--Air Force Conveyances

Sec. 2841. Land conveyance, Radar Bomb Scoring Site, Belle Fourche, 
                      South Dakota.
Sec. 2842. Conveyance of primate research complex and Air Force-owned 
                      chimpanzees, Holloman Air Force Base, New Mexico.

                       Part IV--Other Conveyances

Sec. 2851. Land conveyance, Tatum Salt Dome Test Site, Mississippi.

[[Page 110 STAT. 2436]]

Sec. 2852. Land conveyance, William Langer Jewel Bearing Plant, Rolla, 
                      North Dakota.
Sec. 2853. Land conveyance, Air Force Plant No. 85, Columbus, Ohio.
Sec. 2854. Modification of boundaries of White Sands National Monument 
                      and White Sands Missile Range.

                        Subtitle D--Other Matters

Sec. 2861. Authority to grant easements for rights-of-way.
Sec. 2862. Authority to enter into cooperative agreements for the 
                      management of cultural resources on military 
                      installations.
Sec. 2863. Demonstration project for installation and operation of 
                      electric power distribution system at Youngstown 
                      Air Reserve Station, Ohio.
Sec. 2864. Renovation of the Pentagon reservation.
Sec. 2865. Plan for repairs and stabilization of the historic district 
                      at the Forest Glen Annex of Walter Reed Medical 
                      Center, Maryland.
Sec. 2866. Naming of range at Camp Shelby, Mississippi.
Sec. 2867. Designation of Michael O'Callaghan military hospital.
Sec. 2868. Naming of building at the Uniformed Services University of 
                      the Health Sciences.

                  TITLE XXIX--MILITARY LAND WITHDRAWALS

     Subtitle A--Fort Carson-Pinon Canyon Military Lands Withdrawal

Sec. 2901. Short title.
Sec. 2902. Withdrawal and reservation of lands at Fort Carson Military 
                      Reser- vation.
Sec. 2903. Withdrawal and reservation of lands at Pinon Canyon Maneuver 
                      Site.
Sec. 2904. Maps and legal descriptions.
Sec. 2905. Management of withdrawn lands.
Sec. 2906. Management of withdrawn and acquired mineral resources.
Sec. 2907. Hunting, fishing, and trapping.
Sec. 2908. Termination of withdrawal and reservation.
Sec. 2909. Determination of presence of contamination and effect of 
                      contamination.
Sec. 2910. Delegation.
Sec. 2911. Hold harmless.
Sec. 2912. Amendment to Military Lands Withdrawal Act of 1986.
Sec. 2913. Authorization of appropriations.

       Subtitle B--El Centro Naval Air Facility Ranges Withdrawal

Sec. 2921. Short title and definitions.
Sec. 2922. Withdrawal and reservation of lands for El Centro.
Sec. 2923. Maps and legal descriptions.
Sec. 2924. Management of withdrawn lands.
Sec. 2925. Duration of withdrawal and reservation.
Sec. 2926. Continuation of ongoing decontamination activities.
Sec. 2927. Requirements for extension.
Sec. 2928. Early relinquishment of withdrawal.
Sec. 2929. Delegation of authority.
Sec. 2930. Hunting, fishing, and trapping.
Sec. 2931. Hold harmless.

 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. Defense fixed asset acquisition/privatization.
Sec. 3104. Other defense activities.
Sec. 3105. 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.

[[Page 110 STAT. 2437]]

Sec. 3127. Funds available for all national security programs of the 
                      Department of Energy.
Sec. 3128. Availability of funds.

    Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Stockpile stewardship program.
Sec. 3132. Manufacturing infrastructure for nuclear weapons stockpile.
Sec. 3133. Tritium production.
Sec. 3134. Modernization and consolidation of tritium recycling 
                      facilities.
Sec. 3135. Production of high explosives.
Sec. 3136. Limitation on use of funds for certain research and 
                      development purposes.
Sec. 3137. Prohibition on funding nuclear weapons activities with 
                      People's Republic of China.
Sec. 3138. International cooperative stockpile stewardship programs.
Sec. 3139. Temporary authority relating to transfers of defense 
                      environmental management funds.
Sec. 3140. Management structure for nuclear weapons production 
                      facilities and nuclear weapons laboratories.
Sec. 3141. Accelerated schedule for isolating high-level nuclear waste 
                      at the defense waste processing facility, Savannah 
                      River Site.
Sec. 3142. Processing and treatment of high-level nuclear waste and 
                      spent nuclear fuel rods.
Sec. 3143. Projects to accelerate closure activities at defense nuclear 
                      facilities.
Sec. 3144. Payment of costs of operation and maintenance of 
                      infrastructure at Nevada Test Site.

                        Subtitle D--Other Matters

Sec. 3151. Report on plutonium pit production and remanufacturing plans.
Sec. 3152. Amendments relating to baseline environmental management 
                      reports.
Sec. 3153. Requirement to develop future use plans for environmental 
                      management program.
Sec. 3154. Report on Department of Energy liability at Department 
                      superfund sites.
Sec. 3155. Requirement for annual five-year budget for the national 
                      security programs of the Department of Energy.
Sec. 3156. Requirements for Department of Energy weapons activities 
                      budgets for fiscal years after fiscal year 1997.
Sec. 3157. Repeal of requirement relating to accounting procedures for 
                      Department of Energy funds.
Sec. 3158. Update of report on nuclear test readiness postures.
Sec. 3159. Reports on critical difficulties at nuclear weapons 
                      laboratories and nuclear weapons production 
                      plants.
Sec. 3160. Extension of applicability of notice-and-wait requirement 
                      regarding proposed cooperation agreements.
Sec. 3161. Sense of Senate relating to redesignation of defense 
                      environmental restoration and waste management 
                      program.
Sec. 3162. Commission on maintaining United States nuclear weapons 
                      expertise.
Sec. 3163. Sense of Congress regarding reliability and safety of 
                      remaining nuclear forces.
Sec. 3164. Study on worker protection at the Mound facility.
Sec. 3165. Fiscal year 1998 funding for Greenville Road Improvement 
                      Project, Livermore, California.
Sec. 3166. Fellowship program for development of skills critical to 
                      Department of Energy nuclear weapons complex.

    Subtitle E--Defense Nuclear Environmental Cleanup and Management

Sec. 3171. Purpose.
Sec. 3172. Applicability.
Sec. 3173. Site manager.
Sec. 3174. Department of Energy orders.
Sec. 3175. Deployment of technology for remediation of defense nuclear 
                      waste.
Sec. 3176. Performance-based contracting.
Sec. 3177. Designation of covered facilities as environmental cleanup 
                      demonstration areas.
Sec. 3178. Definitions.
Sec. 3179. Termination.
Sec. 3180. Report.

 Subtitle F--Waste Isolation Pilot Plant Land Withdrawal Act Amendments

Sec. 3181. Short title.

[[Page 110 STAT. 2438]]

Sec. 3182. Definitions.
Sec. 3183. Management plan.
Sec. 3184. Repeal of test phase and retrieval plans.
Sec. 3185. Test phase activities.
Sec. 3186. Disposal operations.
Sec. 3187. Environmental Protection Agency disposal regulations.
Sec. 3188. Compliance with environmental laws and regulations.
Sec. 3189. Sense of Congress on commencement of emplacement of 
                      transuranic waste.
Sec. 3190. Decommissioning of WIPP.
Sec. 3191. Authorizations for economic assistance and miscellaneous 
                      payments.

          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 certain materials in National Defense Stockpile.

                     Subtitle B--Programmatic Change

Sec. 3311. Biennial report on stockpile requirements.
Sec. 3312. Notification requirements.
Sec. 3313. Importation of strategic and critical materials.

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.
Sec. 3402. Price requirement on sale of certain petroleum during fiscal 
                      year 1997.

                   TITLE XXXV--PANAMA CANAL COMMISSION

               Subtitle A--Authorization of Appropriations

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

           Subtitle B--Amendments to Panama Canal Act of 1979

Sec. 3521. Short title; references.
Sec. 3522. Definitions and recommendation for legislation.
Sec. 3523. Administrator.
Sec. 3524. Deputy Administrator and Chief Engineer.
Sec. 3525. Office of Ombudsman.
Sec. 3526. Appointment and compensation; duties.
Sec. 3527. Applicability of certain benefits.
Sec. 3528. Travel and transportation.
Sec. 3529. Clarification of definition of agency.
Sec. 3530. Panama Canal Employment System; merit and other employment 
                      requirements.
Sec. 3531. Employment standards.
Sec. 3532. Repeal of obsolete provision regarding interim application of 
                      Canal Zone Merit System.
Sec. 3533. Repeal of provision relating to recruitment and retention 
                      remuneration.
Sec. 3534. Benefits based on basic pay.
Sec. 3535. Vesting of general administrative authority of Commission.
Sec. 3536. Applicability of certain laws.
Sec. 3537. Repeal of provision relating to transferred or reemployed 
                      employees.
Sec. 3538. Administration of special disability benefits.
Sec. 3539. Panama Canal Revolving Fund.
Sec. 3540. Printing.
Sec. 3541. Accounting policies.
Sec. 3542. Interagency services; reimbursements.
Sec. 3543. Postal service.
Sec. 3544. Investigation of accidents or injury giving rise to claim.
Sec. 3545. Operations regulations.
Sec. 3546. Miscellaneous repeals.
Sec. 3547. Exemption from Metric Conversion Act of 1975.
Sec. 3548. Conforming and clerical amendments.
Sec. 3549. Repeal of Panama Canal Code.

[[Page 110 STAT. 2439]]

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

                          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. Repeal of limitation on procurement of Armed Kiowa Warrior 
                    helicopters.
Sec. 112. Multiyear procurement authority for Army programs.
Sec. 113. Bradley TOW 2 Test Program sets.

                        Subtitle C--Navy Programs

Sec. 121. Nuclear attack submarine programs.
Sec. 122. Arleigh Burke class destroyer program.
Sec. 123. EA-6B aircraft reactive jammer program.
Sec. 124. T-39N trainer aircraft for the Navy.
Sec. 125. Penguin missile program.

                     Subtitle D--Air Force Programs

Sec. 131. Repeal of limitation on procurement of F-15E aircraft.
Sec. 132. Modification to multiyear procurement authority for C-17 
                    aircraft program.

                        Subtitle E--Other Matters

Sec. 141. Assessments of modernization priorities of the reserve 
                    components.
Sec. 142. Destruction of existing stockpile of lethal chemical agents 
                    and munitions.
Sec. 143. Extension of authority to carry out Armament Retooling and 
                    Manufacturing Support Initiative.

               Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
for procurement for the Army as follows:
            (1) For aircraft, $1,314,015,000.
            (2) For missiles, $1,031,829,000.
            (3) For weapons and tracked combat vehicles, $1,409,514,000.
            (4) For ammunition, $1,003,028,000.
            (5) For other procurement, $2,990,240,000.

[[Page 110 STAT. 2440]]

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for fiscal 
year 1997 for procurement for the Navy as follows:
            (1) For aircraft, $7,034,926,000.
            (2) For weapons, including missiles and torpedoes, 
        $1,345,408,000.
            (3) For shipbuilding and conversion, $6,193,330,000.
            (4) For other procurement, $2,893,840,000.

    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 1997 for procurement for the Marine Corps in the amount 
of $560,148,000.
    (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 $293,239,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
for procurement for the Air Force as follows:
            (1) For aircraft, $6,764,420,000.
            (2) For missiles, $2,525,875,000.
            (3) For ammunition, $278,302,000.
            (4) For other procurement, $5,814,419,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
for Defense-wide procurement in the amount of $2,008,261,000.

SEC. 105. RESERVE COMPONENTS.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
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, $171,000,000.
            (2) For the Air National Guard, $234,000,000.
            (3) For the Army Reserve, $98,000,000.
            (4) For the Naval Reserve, $116,000,000.
            (5) For the Air Force Reserve, $94,000,000.
            (6) For the Marine Corps Reserve, $67,000,000.

SEC. 106. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
for procurement for the Inspector General of the Department of Defense 
in the amount of $2,000,000.

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

    There is hereby authorized to be appropriated for fiscal year 1997 
the amount of $759,847,000 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 1997 
for the Department of Defense for procurement for carrying

[[Page 110 STAT. 2441]]

out health care programs, projects, and activities of the Department of 
Defense in the total amount of $269,470,000.

                        Subtitle B--Army Programs

SEC. 111. REPEAL OF LIMITATION ON PROCUREMENT OF ARMED KIOWA 
                        WARRIOR HELICOPTERS.

    Section 133 of the National Defense Authorization Act for Fiscal 
Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1383) is repealed.
SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR ARMY PROGRAMS.

    (a) Avenger Air Defense Missile System.--Notwithstanding the 
limitation in subsection (k) of section 2306b of title 10, United States 
Code, relating to the maximum duration of a multiyear contract under the 
authority of that section, the Secretary of the Army may extend the 
multiyear contract in effect during fiscal year 1996 for the Avenger Air 
Defense
Missile system through fiscal year 1997 and may award such an extension.

    (b) Army Tactical Missile System.--The Secretary of the Army may, in 
accordance with section 2306b of title 10, United States Code, enter 
into a multiyear procurement contract, beginning with the fiscal year 
1997 program year, for procurement of the Army Tactical Missile System 
(Army TACMS).
    (c) Javelin Missile System.--The Secretary of the Army may, in 
accordance with section 2306b of title 10, United States Code, enter 
into multiyear procurement contracts for the procurement of the Javelin 
missile system.

SEC. 113. BRADLEY TOW 2 TEST PROGRAM SETS.

    Of the funds authorized to be appropriated under section 101(3) of 
the National Defense Authorization Act for Fiscal Year 1996 (Public Law 
104-106; 110 Stat. 204), $6,000,000 is available for the procurement of 
Bradley TOW-2 Test Program sets.

                        Subtitle C--Navy Programs

SEC. 121. NUCLEAR ATTACK SUBMARINE PROGRAMS.

    (a) Amounts Authorized From SCN Account.--(1) Of the amount 
authorized to be appropriated by section 102(a)(3) for fiscal year 
1997--
            (A) $699,071,000 is available for continued construction of 
        the third vessel (designated SSN-23) in the Seawolf attack 
        submarine class, which shall be the final vessel in that class;
            (B) $296,186,000 is available for long-lead and advance 
        construction and procurement of components for construction of a 
        submarine (previously designated by the Navy as the New Attack 
        Submarine) beginning in fiscal year 1998 to be built by Electric 
        Boat Division; and
            (C) $701,000,000 is available for long-lead and advance 
        construction and procurement of components for construction of a 
        second submarine (previously designated by the Navy as the New 
        Attack Submarine) beginning in fiscal year 1999 to be built by 
        Newport News Shipbuilding.

[[Page 110 STAT. 2442]]

    (2) In addition to the purposes for which the amounts under 
subparagraphs (B) and (C) of paragraph (1) are available, such amounts 
are also available for contracts with Electric Boat Division and Newport 
News Shipbuilding to carry out the provisions of the ``Memorandum of 
Agreement Among the Department of the Navy, Electric Boat Corporation 
(EB) and Newport News Shipbuilding and Drydock Company (NNS) Concerning 
the New Attack Submarine'', dated April 5, 1996, relating to design data 
transfer, design improvements, integrated process teams, and updated 
design base.
    (b) Amounts Authorized From Navy RDT&E Account.--(1) Of the amount 
authorized to be appropriated by section 201(2), $487,611,000 is 
available for the design of the submarine previously designated by the 
Navy as the New Attack Submarine.
    (2)(A) Of the amount authorized to be appropriated by section 
201(2), $60,000,000 is available for obligation under contracts with 
Electric Boat Division and Newport News Shipbuilding and other entities 
to address the inclusion on future nuclear attack submarines of the core 
advanced technologies that are identified by the Secretary of Defense 
(in the report of the Secretary entitled ``Report on Nuclear Attack 
Submarine Procurement and Submarine Technology'', submitted to Congress 
on March 26, 1996) as those technologies the maturation of which the 
Submarine Technology Assessment Panel recommended be addressed in its 
March 15, 1996, final report to the Assistant Secretary of the Navy for 
Research, Development, and Acquisition, as follows: hydrodynamics, 
alternative sail designs, advanced arrays, electric drive, external 
weapons, and active controls and mounts.
    (B) Of the amount available under subparagraph (A), $20,000,000 
shall be equally divided between Electric Boat Division and Newport News 
Shipbuilding for the purpose of ensuring that those shipbuilders are 
principal participants in the process of addressing the inclusion of 
technologies referred to in subparagraph (A) on future nuclear attack 
submarines. Contracts with the shipbuilders under this subparagraph 
shall provide the shipbuilders with wide latitude to pursue submarine-
wide, integrated systems approaches to the inclusion of such 
technologies. The Secretary of the Navy shall ensure that those 
shipbuilders have access for such purpose (under procedures prescribed 
by the Secretary) to the Navy laboratories and the Office of Naval 
Intelligence and (in accordance with arrangements to be made by the 
Secretary) to the Defense Advanced Research Projects Agency.
    (3) Of the amount authorized to be appropriated by section 201(2), 
$38,000,000 is available to begin funding those Category I and Category 
II advanced technologies described in Appendix C of the report of the 
Secretary of Defense referred to in paragraph (2)(A). The Secretary of 
the Navy shall ensure that Electric Boat Division and Newport News 
Shipbuilding are also principal participants in the technology 
initiatives pursued with such funds to ensure submarine-wide, integrated 
systems approaches to the inclusion of such technologies on future 
nuclear attack submarines.
    (4) In addition to the purposes for which the amounts under 
paragraphs (1), (2), and (3) are available, such amounts are also 
available for contracts with Electric Boat Division and Newport News 
Shipbuilding to carry out the provisions of the memorandum of agreement 
referred to in subsection (a)(2) for research and development activities 
under that memorandum of agreement.

[[Page 110 STAT. 2443]]

    (c) Amount From Fiscal Year 1996 Funds for National Defense Sealift 
Fund.--(1) Section 132 of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 210) is repealed.
    (2) The amount referred to in section 132 of the National Defense 
Authorization Act for Fiscal Year 1996 (as in effect immediately before 
the repeal by paragraph (1)) shall be available to the Secretary of the 
Navy for activities relating only to advanced submarine technology that 
involve the construction of large scale vehicles for purposes of 
hydrodynamic and
hydroacoustic research on developmental designs for hulls and propulsion 
systems.

    (d) Contracts Authorized.--(1) The Secretary of the Navy is 
authorized, using funds available pursuant to subparagraphs (B) and (C) 
of subsection (a)(1), to enter into contracts with Electric Boat 
Division and Newport News Shipbuilding, and suppliers of components, 
during fiscal year 1997 for--
            (A) the procurement of long-lead components for the fiscal 
        year 1998 submarine and the fiscal year 1999 submarine under 
        this section; and
            (B) advance construction of such components and other 
        components for such submarines.

    (2) The Secretary may enter into a contract or contracts under this 
section with the shipbuilder of the fiscal year 1998 submarine only if 
the Secretary enters into a contract or contracts under this section 
with the shipbuilder of the fiscal year 1999 submarine.
    (e) <<NOTE: Certification.>>  Limitations.--(1)(A) Of the amounts 
specified in subsection (a)(1), not more than $100,000,000 may be 
obligated until the Secretary of Defense 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 described in subparagraph (B) will be under one or 
more contracts that are entered into after competition between Electric 
Boat Division and Newport News Shipbuilding in which the Secretary of 
the Navy solicits competitive proposals and awards the contract or 
contracts on the basis of price.

    (B) The submarines referred to in subparagraph (A) are nuclear 
attack submarines that are to be constructed beginning--
            (i) after fiscal year 1999; or
            (ii) if four submarines are to be procured as provided for 
        in the plan required under section 131(c) of the National 
        Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
        106; 110 Stat. 208), after fiscal year 2001.

<<NOTE: Reports.>>     (2) Of the amounts specified in subsection 
(a)(1), not more than $675,000,000 may be obligated until the Under 
Secretary of Defense for Acquisition and Technology submits to the 
congressional committees specified in paragraph (1) a report in writing 
detailing the following:
            (A) The Under Secretary's oversight activities to date, and 
        plans for the future, for the development and improvement of the 
        nuclear attack submarine program of the Navy as required by 
        section 131(b)(2)(C) of the National Defense Authorization Act 
        for Fiscal Year 1996 (110 Stat. 207).
            (B) The implementation of, and activities conducted under, 
        the program required to be established by the Director of the 
        Defense Advanced Research Projects Agency by section 131(i) of 
        the National Defense Authorization Act for Fiscal Year 1996 (110 
        Stat. 210) for the development and demonstration of

[[Page 110 STAT. 2444]]

        advanced submarine technologies and a rapid prototype 
        acquisition strategy for both land-based and at-sea subsystem 
        and system demonstrations of such technologies.
            (C) A description of all research, development, test, and 
        evaluation programs, projects, or activities within the 
        Department of Defense which, in the opinion of the Under 
        Secretary, are designed to contribute to the development and 
        demonstration of advanced submarine technologies leading to a 
        more capable, more affordable nuclear attack submarine, 
        specifically identifying ongoing involvement, and plans for 
        future involvement, in any such program, project, or activity by 
        either Electric Boat Division or Newport News Shipbuilding, or 
        by both.

    (3) <<NOTE: Certification.>>  Of the amount specified in subsection 
(b)(1), not more than $100,000,000 may be obligated or expended until 
the Under Secretary of Defense (Comptroller) certifies in writing to the 
congressional committees specified in paragraph (1) that--
            (A) funds specified in subsection (c)(2) have been made 
        available for obligation; and
            (B) to the extent that funds specified in paragraphs (2) and 
        (3) of subsection (b) have been appropriated for the purposes 
        specified in such paragraphs, such funds have been made 
        available for obligation.

    (f) Acquisition Simplification.--In furtherance of the direction 
provided by subsection (d) of section 131 of the National Defense 
Authorization Act for Fiscal Year 1996 (110 Stat. 209) to the Secretary 
of Defense regarding the application of acquisition reform policies and 
procedures to the submarine program under that section, the Secretary 
shall direct the Secretary of the Navy to implement for the submarine 
programs of the Navy acquisition reform initiatives similar in intent 
and approach to the initiatives begun by the Secretary of the Air Force 
in May 1995 and referred to as the ``Lightning Bolt'' 
initiatives. <<NOTE: Reports.>>  The Secretary of the Navy shall, not 
later than March 31, 1997, submit to the congressional committees 
specified in subsection (e)(1) a report on the results of the 
implementation of such initiatives.

    (g) Design Responsibility.--(1) The Secretary of the Navy shall 
carry out the submarine program described in section 131 of the National 
Defense Authorization Act for Fiscal Year 1996 in a manner that ensures 
that each of the two shipbuilders in- volved in the design and 
construction of the four submarines described in that section be allowed 
to propose to the Secretary any design improvement that the shipbuilder 
considers appropriate for the submarines to be built by that shipbuilder 
as part of those four submarines. The Secretary shall ensure that both 
shipbuilders have full and open access to all design data concerning the 
design of the submarine previously designated by the Navy as the New 
Attack Submarine.
    (2) The designs proposed by the shipbuilders should proceed from, 
but not be limited to, the specific advanced technologies referred to in 
subsection (b)(2)(A), especially technologies involving hydrodynamics 
and hydroacoustics concepts.
    (3) <<NOTE: Reports.>> The Secretary shall require both shipbuilders 
to submit to the Secretary an annual report on the progress of the 
design work on the submarines referred to in paragraph (1) and shall 
transmit each such report to the committees specified in subsection 
(e)(1).

[[Page 110 STAT. 2445]]

    (4) <<NOTE: Reports.>>  The Secretary shall also submit an annual 
report to the committees specified in subsection (e)(1) on the design 
improvements proposed by the two shipbuilders under paragraph (1) for 
incorporation on any of the four submarines and on the degree to which 
design information on the base design and design improvements has been 
shared between the shipbuilders. Each annual report shall set forth each 
design improvement proposed and whether that proposal was--
            (A) reviewed, approved, and funded by the Navy;
            (B) reviewed and approved, but not funded; or
            (C) not approved, in which case the report shall include the 
        reasons therefor and any views of the shipyard making the 
        proposal.

    (5) The reports referred to in paragraphs (3) and (4) shall be 
submitted concurrently with the annual revisions to the Secretary of 
Defense's nuclear attack submarine plan required by section 131(e) of 
the National Defense Authorization Act for Fiscal Year 1996 (Public Law 
104-106; 110 Stat. 209).
    (h) Serial Production.--The Secretary of Defense shall modify the 
plan relating to development of a program leading to production of a 
more capable and less expensive submarine than the New Attack Submarine 
that was submitted to Congress pursuant to section 131(c) of the 
National Defense Authorization Act for Fiscal Year 1996 in order to 
provide in such plan the option for selection of a design for a next 
submarine for serial production not earlier than fiscal year 2002 
(rather than fiscal year 2003, as provided in paragraph (3)(B) of such 
section 131(c)).
    (i) References to Shipbuilders.--For purposes of this section--
            (1) the shipbuilder referred to as ``Electric Boat 
        Division'' is the Electric Boat Division of the General Dynamics 
        Corporation; and
            (2) the shipbuilder referred to as ``Newport News 
        Shipbuilding'' is the Newport News Shipbuilding and Drydock 
        Company.

    (j) Submarines Defined by Reference to Fiscal Year.--For purposes of 
this section--
            (1) the term ``fiscal year 1998 submarine'' means the 
        submarine referred to in subsection (a)(1)(B); and
            (2) the term ``fiscal year 1999 submarine'' means the 
        submarine referred to in subsection (a)(1)(C).

SEC. 122. ARLEIGH BURKE CLASS DESTROYER PROGRAM.

    (a) Funding.--(1) Subject to paragraph (3), funds authorized to be 
appropriated by section 102(a)(3) may be made available for contracts 
entered into during fiscal year 1996 under subsection (b)(1) of section 
135 of the National Defense Authorization Act for Fiscal Year 1996 
(Public Law 104-106; 110 Stat. 211) for construction for the third of 
the three Arleigh Burke class destroyers covered by that subsection. 
Such funds are in addition to amounts made available for such contracts 
by the second sentence of subsection (a) of that section.
    (2) Subject to paragraph (3), funds authorized to be appropriated by 
section 102(a)(3) may be made available for contracts entered into 
during fiscal year 1997 under subsection (b)(2) of such section 135 for 
construction (including advance procurement) for the Arleigh Burke class 
destroyers covered by such subsection (b)(2).

[[Page 110 STAT. 2446]]

    (3) The aggregate amount of funds available under paragraphs (1) and 
(2) for contracts referred to in such paragraphs may not exceed 
$3,483,030,000.
    (4) Within the amount authorized to be appropriated by section 
102(a)(3), $525,000,000 is authorized to be appropriated for advance 
procurement for construction for the Arleigh Burke class destroyers 
authorized by subsection (b).
    (b) Authority for Multiyear Procurement of Twelve Vessels.--The 
Secretary of the Navy is authorized, pursuant to section 2306b of title 
10, United States Code, to enter into multiyear contracts for the 
procurement of a total of 12 Arleigh Burke class destroyers at a 
procurement rate of three ships in each of fiscal years 1998, 1999, 
2000, and 2001 in accordance with this subsection and subsection (a)(4), 
subject to the availability of appropriations for such destroyers. A 
contract for construction of one or more vessels that is entered into in 
accordance with this subsection shall include a clause that limits the 
liability of the Government to the contractor for any termination of the 
contract.

SEC. 123. EA-6B AIRCRAFT REACTIVE JAMMER PROGRAM.

    (a) Limitation.--None of the funds appropriated pursuant to section 
102(a)(1) for modifications or upgrades of EA-6B aircraft may be 
obligated, other than for a reactive jammer program for such aircraft, 
until 30 days after the date on which the Secretary of the Navy submits 
to the congressional defense committees in writing--
            (1) <<NOTE: Certification.>>  a certification that some or 
        all of such funds have been obligated for a reactive jammer 
        program for EA-6B aircraft; and
            (2) <<NOTE: Reports.>>  a report that sets forth a detailed, 
        well-defined program for--
                    (A) developing a reactive jamming capability for EA-
                6B aircraft; and
                    (B) upgrading the EA-6B aircraft of the Navy to 
                incorporate the reactive jamming capability.

    (b) Contingent Transfer of Funds to Air Force.--(1) If the Secretary 
of the Navy has not submitted the certification and report described in 
subsection (a) to the congressional defense committees before June 1, 
1997, then, on that date, the Secretary of Defense shall transfer to the 
Air Force, out of appropriations available to the Navy for fiscal year 
1997 for procurement of aircraft, the amount equal to the amount 
appropriated to the Navy for fiscal year 1997 for modifications and 
upgrades of EA-6B aircraft.
    (2) Funds transferred to the Air Force pursuant to paragraph (1) 
shall be available for maintaining and upgrading the jamming capability 
of EF-111 aircraft.

SEC. 124. T-39N TRAINER AIRCRAFT FOR THE NAVY.

    The Secretary of the Navy may, using funds appropriated for fiscal 
year 1996 for procurement of T-39N trainer aircraft for the Navy that 
remain available for obligation for such purpose, enter into a contract 
for the acquisition of T-39N aircraft for naval flight officer training 
that are suitable for low-level training flights. Such a contract may be 
entered into only after the Secretary complies with section 137 of the 
National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106; 110 Stat. 212).

[[Page 110 STAT. 2447]]

SEC. 125. PENGUIN MISSILE PROGRAM.

    (a) Multiyear Procurement Authority.--The Secretary of the Navy may, 
in accordance with section 2306b of title 10, United States Code, enter 
into multiyear procurement contracts for the procurement of not more 
than 106 Penguin missile systems.
    (b) Limitation on Total Cost.--The total amount obligated or 
expended for procurement of Penguin missile systems under contracts 
under subsection (a) may not exceed $84,800,000.

                     Subtitle D--Air Force Programs

SEC. 131. REPEAL OF LIMITATION ON PROCUREMENT OF F-15E AIRCRAFT.

    Section 134 of the National Defense Authorization Act for Fiscal 
Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1383) is repealed.
SEC. 132. MODIFICATION TO MULTIYEAR PROCUREMENT AUTHORITY FOR C-17 
                        AIRCRAFT PROGRAM.

    (a) Multiyear Contracts Authorized.--The Secretary of the Air Force 
may enter into one or more multiyear contracts for the procurement of C-
17 aircraft (including the section 2703 contract entered into before the 
date of the enactment of this Act under the authority of section 2703 of 
the Supplemental Appropriations Act of 1996 (title II of Public Law 104-
134)). The total number of aircraft contracted to be procured under such 
multiyear contracts may not exceed 80. Any such contract shall be 
entered into in accordance with section 2306b of title 10, United States 
Code (and subject to such modifications as may be authorized by law in 
the maximum period for such contracts specified in subsection (k) of 
such section).
    (b) Requirement To Negotiate Option to Convert Existing Contract to 
Six Program Years.--The Secretary of the Air Force shall negotiate with 
the prime contractor for the C-17 aircraft program so as to achieve a 
contract option for the United States under the section 2703 contract to 
convert the multiyear procurement period under that contract to a period 
of six program years based upon the level of funding for that program 
for fiscal year 1997.
    (c) Contract Period.--A contract entered into after the date of the 
enactment of this Act on a multiyear basis under the authority of 
subsection (a) may (notwithstanding section 2306b(k) of title 10, United 
States Code) be for a period of six program years.
    (d) Section 2703 Contract Defined.--For purposes of this section, 
the term ``section 2703 contract'' means the contract entered into by 
the Secretary of the Air Force on May 31, 1996, with the prime 
contractor for the C-17 aircraft program under the authority of section 
2703 of the Supplemental Appropriations Act of 1996 (title II of Public 
Law 104-134) providing for a multiyear procurement of C-17 aircraft over 
seven program years with an option for the Secretary to convert that 
period to six program years.

[[Page 110 STAT. 2448]]

                        Subtitle E--Other Matters

SEC. 141. ASSESSMENTS OF MODERNIZATION PRIORITIES OF THE RESERVE 
                        COMPONENTS.

    (a) Assessments Required.--Not later than December 1, 1996, each 
officer referred to in subsection (b) shall submit to the congressional 
defense committees an assessment of the modernization priorities 
established for the reserve component or reserve components for which 
that officer is responsible.
    (b) Responsible Officers.--The officers required to submit a report 
under subsection (a) are as follows:
            (1) The Chief of the National Guard Bureau.
            (2) The Chief of Army Reserve.
            (3) The Chief of Air Force Reserve.
            (4) The Director of Naval Reserve.
            (5) The Commanding General, Marine Forces Reserve.
SEC. 142. DESTRUCTION OF EXISTING STOCKPILE OF LETHAL CHEMICAL 
                        AGENTS AND MUNITIONS.

    Section 152 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 214; 50 U.S.C. 1521 note) is 
amended by adding at the end the following new subsections:
    ``(e) Assessment of Alternative Technologies for Demilitarization of 
Assembled Chemical Munitions.--(1) In addition to the assessment 
required by subsection (c), the Secretary of Defense shall conduct an 
assessment of the chemical demilitarization program for destruction of 
assembled chemical munitions and of the alternative demilitarization 
technologies and processes (other than incineration) that could be used 
for the destruction of the lethal chemical agents that are associated 
with these munitions, while ensuring maximum protection for 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 and reduce the total cost of the 
chemical agents and munitions destruction program. The assessment shall 
be conducted without regard to any limitation that would otherwise apply 
to the conduct of such assessment under any provision of law.
    ``(2) The assessment shall be conducted in coordination with the 
National Research Council.
    ``(3) Among the alternatives, the assessment shall include a 
determination of the cost of incineration of the current chemical 
munitions stockpile by building incinerators at each existing facility 
compared to the proposed cost of dismantling those same munitions, 
neutralizing them at each storage site (other than Tooele Army Depot or 
Johnston Atoll), and transporting
the neutralized remains and all munitions parts to a treatment, storage, 
and disposal facility within the United States that has the necessary 
environmental permits to undertake incineration of the material.

    ``(4) Based on the results of the assessment, the Secretary shall 
develop appropriate recommendations for revision of the chemical 
demilitarization program.
    ``(5) <<NOTE: Reports.>>  Not later than December 31, 1997, the 
Secretary of Defense shall submit to Congress a report on the assessment 
conducted in accordance with paragraph (1) and any recommendations for

[[Page 110 STAT. 2449]]

revision of the chemical demilitarization program, including the 
continued development of alternative demilitarization technologies and 
processes other than incineration that could be used for the destruction 
of the lethal chemical agents that are associated with these assembled 
chemical munitions and the chemical munitions demilitarization sites for 
which the selected technologies should be developed.

    ``(f) Pilot Program for Demilitarization of Chemical Agents for 
Assembled Munitions.--(1) If the Secretary of Defense makes a decision 
to continue the development of an alternative demilitarization 
technology or process (other than incineration) that could be used for 
the destruction of the lethal chemical agents that are associated with 
assembled chemical munitions, $25,000,000 shall be available from the 
funds authorized to be appropriated in section 107 of the National 
Defense Authorization Act for Fiscal Year 1997 for the chemical agents 
and munitions destruction program, in order to initiate a pilot program 
using the selected alternative technology or process for the destruction 
of chemical agents that are stored at these sites.
    ``(2) <<NOTE: Notice.>>  Not less than 30 days before using funds to 
initiate the pilot program under paragraph (1), the Secretary shall 
submit notice in writing to Congress of the Secretary's intent to do so.

    ``(3) The pilot program shall be conducted at the selected chemical 
agent and munitions stockpile storage site for which the alternative 
technology or process is recommended.''.
SEC. 143. EXTENSION OF AUTHORITY TO CARRY OUT ARMAMENT RETOOLING 
                        AND MANUFACTURING SUPPORT INITIATIVE.

    Section 193(a) of the Armament Retooling and Manufacturing Support 
Act of 1992 (subtitle H of title I of Public Law 102-484; 10 U.S.C. 2501 
note) is amended by striking out ``During fiscal years 1993 through 
1996'' and inserting in lieu thereof ``During fiscal years 1993 through 
1998''.

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Dual-use technology programs.
Sec. 204. Defense Special Weapons Agency.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Space launch modernization.
Sec. 212. Space-Based Infrared System program.
Sec. 213. Clementine 2 micro-satellite development program.
Sec. 214. Live-fire survivability testing of V-22 Osprey aircraft.
Sec. 215. Live-fire survivability testing of F-22 aircraft.
Sec. 216. Limitation on funding for F-16 tactical manned reconnaissance 
                    aircraft.
Sec. 217. Cost analysis of F-22 aircraft program.
Sec. 218. F-22 aircraft program reports.
Sec. 219. Cost-benefit analysis of F/A-18E/F aircraft program.
Sec. 220. Joint Advanced Strike Technology (JAST) program.
Sec. 221. Unmanned aerial vehicles.
Sec. 222. High altitude endurance unmanned aerial reconnaissance system.
Sec. 223. Cyclone class patrol craft self-defense.
Sec. 224. One-year extension of deadline for delivery of Enhanced Fiber 
                    Optic Guided Missile (EFOG-M) system.
Sec. 225. Hydra-70 rocket product improvement program.

[[Page 110 STAT. 2450]]

Sec. 226. Federally funded research and development centers.
Sec. 227. Demilitarization of conventional munitions, rockets, and 
                    explosives.
Sec. 228. Research activities of the Defense Advanced Research Projects 
                    Agency relating to chemical and biological warfare 
                    defense technology.
Sec. 229. Certification of capability of United States to prevent 
                    illegal importation of nuclear, biological, or 
                    chemical weapons.
Sec. 230. Nonlethal weapons and technologies programs.
Sec. 231. Counterproliferation support program.

             Subtitle C--Ballistic Missile Defense Programs

Sec. 241. Funding for ballistic missile defense programs for fiscal year 
                    1997.
Sec. 242. Certification of capability of United States to defend against 
                    single ballistic missile.
Sec. 243. Report on ballistic missile defense and proliferation.
Sec. 244. Revision to annual report on ballistic missile defense 
                    program.
Sec. 245. Report on Air Force National Missile Defense Plan.
Sec. 246. Capability of National Missile Defense system.
Sec. 247. Actions to limit adverse effects on private sector employment 
                    of establishment of National Missile Defense Joint 
                    Program Office.
Sec. 248. ABM Treaty defined.

                        Subtitle D--Other Matters

Sec. 261. Maintenance and repair at Air Force installations.
Sec. 262. Report relating to Small Business Innovation Research Program.
Sec. 263. Amendment to University Research Initiative Support program.
Sec. 264. Amendments to Defense Experimental Program To Stimulate 
                    Competitive Research.
Sec. 265. Elimination of report on the use of competitive procedures for 
                    the award of certain contracts to colleges and 
                    universities.
Sec. 266. Pilot program for transfer of defense technology information 
                    to private industry.
Sec. 267. Research under transactions other than contracts and grants.
Sec. 268. Desalting technologies.
Sec. 269. Evaluation of digital video network equipment used in Olympic 
                    games.
Sec. 270. Annual joint warfighting science and technology plan.

         Subtitle E--National Oceanographic Partnership Program

Sec. 281. Findings.
Sec. 282. National Oceanographic Partnership Program.

               Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $4,780,615,000.
            (2) For the Navy, $8,068,299,000.
            (3) For the Air Force, $14,756,366,000.
            (4) For Defense-wide activities, $9,691,293,000, of which--
                    (A) $269,038,000 is authorized for the activities of 
                the Director, Test and Evaluation; and
                    (B) $21,968,000 is authorized for the Director of 
                Operational Test and Evaluation.

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

    (a) Fiscal Year 1997.--Of the amounts authorized to be appropriated 
by section 201, $4,031,343,000 shall be available for basic research and 
applied research projects.
    (b) Basic Research and Applied Research Defined.--For purposes of 
this section, the term ``basic research and applied research'' means 
work funded in program elements for defense

[[Page 110 STAT. 2451]]

research and development under Department of Defense category 6.1 or 
6.2.

SEC. 203. DUAL-USE TECHNOLOGY PROGRAM.

    (a) Allocation of Funds.--Of the amount appropriated pursuant to the 
authorization in section 201(4), $85,000,000 shall be available for the 
dual-use technology program under this section.
    (b) Designation of Official for Dual-Use Program.--(1) The Secretary 
of Defense shall designate a senior official in the Office of the 
Secretary of Defense to have as that official's sole responsibilities 
developing policy relating to, and ensuring effective implementation of, 
the dual-use technology program of the Department of Defense. In 
carrying out such responsibilities, the official shall ensure--
            (A) that commercial technologies are integrated into current 
        and future military systems to the maximum extent practicable;
            (B) that dual-use projects are coordinated with the joint 
        warfighting science and technology plan referred to in section 
        270; and
            (C) that dual-use projects of the military departments and 
        the defense agencies are coordinated and avoid unnecessary 
        duplication.

    (2) <<NOTE: Effective date. Termination date.>>  The senior official 
designated under paragraph (1) shall carry out such responsibilities 
during the period beginning on October 1, 1996, and ending on September 
30, 2000. Such official shall report directly to the Under Secretary of 
Defense for Acquisition and Technology.

    (c) Funding Requirement.--Of the amounts appropriated pursuant to 
the authorizations in section 201 for the Department of Defense for 
science and technology programs for fiscal year 1997, at least 5 percent 
of such amounts shall be available only for dual-use projects of the 
Department of Defense. The funds made available under the preceding 
sentence are in addition to the funds made available under subsection 
(a).
    (d) Limitation on Obligations.--Funds made available pursuant to 
subsections (a) and (c) may be used for a dual-use project only if the 
contract, cooperative agreement, or other
transaction by which the project is carried out is entered into through 
the use of competitive procedures.

    (e) Transfer Authority.--In addition to the transfer authority 
provided in section 1001, the Secretary of Defense may transfer funds 
made available pursuant to subsections (a) and (c) for a dual-use 
project from a military department or defense agency to another military 
department or defense agency to ensure efficient implementation of the 
dual-use technology program. The Secretary may delegate the authority 
provided in the preceding sentence to the senior official designated 
under subsection (b).
    (f) Federal Cost Share.--The share contributed by the Secretary of a 
military department or the head of a defense agency for the cost of a 
dual-use project during fiscal year 1997 may not be greater than 50 
percent of the cost of the project for that fiscal year.

    (g) Report.--At the same time the President submits to Congress the 
budget for fiscal year 1998 pursuant to section 1105(a) of title 31, 
United States Code, the Secretary of Defense shall submit to Congress a 
report that specifies the investment strategy

[[Page 110 STAT. 2452]]

for the dual-use technology program to be conducted during fiscal years 
1998, 1999, and 2000.
    (h) Definitions.--In this section:
            (1) The term ``dual-use technology program'' means the 
        program of the Department of Defense under which research or 
        development of a dual-use technology (as defined in section 2491 
        of title 10, United States Code) is carried out and the costs of 
        which are shared between the Department of Defense and non-
        Government entities. The term includes the dual-use critical 
        technology program established pursuant to section 2511 of title 
        10, United States Code.
            (2) The term ``dual-use project'' means a project under the 
        dual-use technology program.
            (3) The term ``science and technology program'' means a 
        program of a military department under which basic research, 
        applied research, or advanced technology development is carried 
        out.

SEC. 204. DEFENSE SPECIAL WEAPONS AGENCY.

    There is hereby authorized to be appropriated for fiscal year 1997 
the amount of $314,313,000 for the Defense Special Weapons Agency, of 
which--
            (1) $7,900,000 is for procurement;
            (2) $218,330,000 is for research, development, test, and 
        evaluation; and
            (3) $88,083,000 is for operations and maintenance.

     Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. SPACE LAUNCH MODERNIZATION.

    (a) Funding.--Funds appropriated pursuant to the authorization of 
appropriations in section 201(3) are authorized to be made available for 
space launch modernization for purposes and in amounts as follows:
            (1) For the Evolved Expendable Launch Vehicle program, 
        $44,457,000.
            (2) For a competitive reusable launch vehicle program 
        (program element 63401F), $25,000,000.

    (b) Limitations.--(1) Of the funds made available for the reusable 
launch vehicle program pursuant to subsection (a)(2), the total amount 
obligated for such purpose may not exceed the total amount allocated in 
the fiscal year 1997 current operating plan of the National Aeronautics 
and Space Administration for the Reusable Space Launch program of the 
National Aeronautics and Space Administration.
    (2) Of the funds made available for the Evolved Expendable Launch 
Vehicle program pursuant to subsection (a)(1), the total amount 
obligated for such purpose may not exceed $20,000,000 until the 
Secretary of Defense certifies to Congress that the Secretary has made 
available for obligation the funds, if any, that are made available for 
the Reusable Launch Vehicle program pursuant to subsection (a)(2).
    (c) <<NOTE: Plans.>>  Coordination of Engine Testing.--Not later 
than 90 days after the date of the enactment of this Act, the Secretary 
of Defense and the Administrator of the National Aeronautics and Space

[[Page 110 STAT. 2453]]

Administration shall submit to Congress a joint plan for coordinating 
and eliminating unnecessary duplication in the operations and planned 
improvements of rocket engine and rocket engine component test 
facilities managed by the Department of the Air Force and the National 
Aeronautics and Space Administration. The plan shall provide, to the 
extent practical, for the development of commonly funded and commonly 
operated facilities.

SEC. 212. SPACE-BASED INFRARED SYSTEM PROGRAM.

    (a) Funding.--Funds appropriated pursuant to the authorization of 
appropriations in section 201(3) are authorized to be made available for 
the Space-Based Infrared System program for purposes and in amounts as 
follows:
            (1) For Space Segment High, $173,290,000.
            (2) For Space Segment Low (the Space and Missile Tracking 
        System), $247,221,000.
            (3) For Cobra Brass, $6,930,000.

    (b) <<NOTE: Certification.>>  Limitation.--Not more than 
$100,000,000 of the funds authorized to be made available under 
subsection (a)(1) may be obligated or expended until the Secretary of 
Defense certifies to Congress that the Secretary has made available the 
funds authorized to be made available under subsection (a)(2) for the 
purpose of accelerating the deployment of the Space Segment Low (the 
Space and Missile Tracking System).

    (c) <<NOTE: Review.>>  Program Management.--Before the submission of 
the President's budget for fiscal year 1998, the Secretary of Defense 
shall conduct a review of the appropriate management responsibilities 
for the Space and Missile Tracking System, including whether 
transferring such management responsibility from the Air Force to the 
Ballistic Missile Defense Organization would result in improved program 
efficiencies and support.

SEC. 213. CLEMENTINE 2 MICRO-SATELLITE DEVELOPMENT PROGRAM.

    (a) Amount for Program.--Of the amount authorized to be appropriated 
under section 201(3), $50,000,000 shall be available for the Clementine 
2 micro-satellite near-Earth asteroid interception mission.
    (b) <<NOTE: Certification.>>  Limitation.--Of the funds authorized 
to be appropriated pursuant to this Act for the global positioning 
system (GPS) Block II F Satellite system, not more than $25,000,000 may 
be obligated until the Secretary of Defense certifies to Congress that--
            (1) funds appropriated for fiscal year 1996 for the 
        Clementine 2 Micro-Satellite development program have been 
        obligated in accordance with Public Law 104-106 and the Joint 
        Explanatory Statement of the Committee of Conference 
        accompanying S. 1124 (House Report 104-450 (104th Congress, 
        second session)); and
            (2) the Secretary has made available for obligation the 
        funds appropriated for fiscal year 1997 for the purpose 
        specified in subsection (a).
SEC. 214. LIVE-FIRE SURVIVABILITY TESTING OF V-22 OSPREY AIRCRAFT.

    (a) Authority for Retroactive Waiver.--The Secretary of Defense may, 
in accordance with section 2366(c) of title 10, United States Code, 
waive for the V-22 Osprey aircraft program the survivability tests 
required by that section, notwithstanding that such program has entered 
engineering and manufacturing development.

[[Page 110 STAT. 2454]]

    (b) Report to Congress.--In exercising the waiver authority in 
section 2366(c) of title 10, United States Code, the Secretary shall 
submit to Congress a report explaining how the Secretary plans to 
evaluate the survivability of the V-22 Osprey aircraft system and 
assessing possible alternatives to realistic survivability testing of 
the system.
    (c) Alternative Survivability Test Requirements.--If the Secretary 
of Defense submits in accordance with section 2366(c)(1) of title 10, 
United States Code, a certification that live-fire testing of the V-22 
Osprey aircraft would be unreasonably expensive and impractical, the 
Secretary shall require that components critical to the survivability of 
the V-22 Osprey aircraft be subjected to live-fire testing under an 
alternative live-fire testing program that, by reason of the number of 
such components tested and the realism of the threat environments under 
which the components are tested, will yield test results that provide a 
sufficient basis for drawing meaningful conclusions about the 
survivability of V-22 Osprey aircraft.
    (d) Funding.--The funds required to carry out any alternative live-
fire testing of the V-22 Osprey aircraft system shall be made available 
from amounts appropriated for the V-22 Osprey program.

SEC. 215. LIVE-FIRE SURVIVABILITY TESTING OF F-22 AIRCRAFT.

    (a) Authority for Retroactive Waiver.--The Secretary of Defense may, 
in accordance with section 2366(c) of title 10, United States Code, 
waive for the F-22 aircraft program the survivability tests required by 
that section, notwithstanding that such program has entered engineering 
and manufacturing development.
    (b) Alternative Survivability Test Requirements.--If the Secretary 
of Defense submits in accordance with section 2366(c)(1) of title 10, 
United States Code, a certification that live-fire testing of the F-22 
aircraft would be unreasonably expensive and impractical, the Secretary 
shall require that components and subsystems critical to the 
survivability of the F-22 aircraft be subjected to live-fire testing 
under an alternative live-fire testing program that, by reason of the 
number of such components and subsystems tested and the realism of the 
threat environments under which the components and subsystems are 
tested, will yield test results that provide a sufficient basis for 
drawing meaningful conclusions about the survivability of F-22 aircraft.
    (c) Funding.--The funds required to carry out any alternative live-
fire testing of the F-22 aircraft system shall be made available from 
amounts appropriated for the F-22 program.
SEC. 216. LIMITATION ON FUNDING FOR F-16 TACTICAL MANNED 
                        RECONNAISSANCE AIRCRAFT.

    (a) <<NOTE: Effective date.>>  Limitation.--Effective on the date of 
the enactment of this Act, not more than $50,000,000 (in fiscal year 
1997 constant dollars) may be obligated or expended for--
            (1) research, development, test, and evaluation for, and 
        acquisition and modification of, the F-16 tactical manned 
        reconnaissance aircraft program; and
            (2) costs associated with the termination of such program.

    (b) Exception.--The limitation in subsection (a) shall not apply to 
obligations required for improvements planned before the date of the 
enactment of this Act to incorporate the common data link into the F-16 
tactical manned reconnaissance aircraft.

[[Page 110 STAT. 2455]]

SEC. 217. COST ANALYSIS OF F-22 AIRCRAFT PROGRAM.

    (a) Review and Report.--The Secretary of Defense shall direct the 
Cost Analysis Improvement Group in the Office of the Secretary of 
Defense to review the F-22 aircraft program, analyze and estimate the 
production costs of the program, and submit to the Secretary a report on 
the results of the review.
    (b) Content of Report.--The report shall include--
            (1) a comparison of--
                    (A) the results of the review, with
                    (B) the results of the last independent estimate of 
                production costs of the program that was prepared by the 
                Cost Analysis Improvement Group in July 1991; and
            (2) a description of any major changes in programmatic 
        assumptions that have occurred since the estimate referred to in 
        paragraph (1)(B) was made, including any major change in 
        assumptions regarding the program schedule, the quantity of 
        aircraft to be developed and acquired, and the annual rates of 
        production, together with
an assessment of the effects of such changes on the program.

    (c) Submission of Report.--Not later than March 30, 1997, the 
Secretary shall submit the report to the congressional defense 
committees, together with the Secretary's views on the matters covered 
by the report.
    (d) Limitation on Use of Funds Pending Submission of Report.--Not 
more than 92 percent of the funds appropriated for the F-22 aircraft 
program pursuant to the authorization of appropriations in section 
103(1) may be expended until the Secretary of Defense submits the report 
required under this section.

SEC. 218. F-22 AIRCRAFT PROGRAM REPORTS.

    (a) Annual Report.--(1) At the same time that the President submits 
the budget for a fiscal year to Congress pursuant to section 1105(a) of 
title 31, United States Code, the Secretary of Defense shall submit to 
Congress a report on event-based decisionmaking for the F-22 aircraft 
program for that fiscal year. The Secretary shall submit the report for 
fiscal year 1997 not later than October 1, 1996.
    (2) The report for a fiscal year shall include the following:
            (A) A discussion of each decision known within the 
        Department of Defense as an ``event-based decision'' that is 
        expected to be made during that fiscal year regarding whether 
        the F-22 program is to proceed into a new phase or into a new 
        administrative subdivision of a phase.
            (B) The criteria known within the Department of Defense as 
        ``exit criteria'' to be applied, for purposes of making the 
        event-based decision, in determining whether the F-22 aircraft 
        program has demonstrated the specific progress necessary for 
        proceeding into the new phase or administrative subdivision of a 
        phase.

    (b) Report on Event-Based Decisions.--Not later than 30 days after 
an event-based decision has been made for the F-22 aircraft program, the 
Secretary of Defense shall submit to Congress a report on the decision. 
The report shall include the following:
            (1) A discussion of the commitments made, and the 
        commitments to be made, under the program as a result of the 
        decision.
            (2) The exit criteria applied for purposes of the decision.

[[Page 110 STAT. 2456]]

            (3) How, in terms of the exit criteria, the program 
        demonstrated the specific progress justifying the decision.

SEC. 219. COST-BENEFIT ANALYSIS OF F/A-18E/F AIRCRAFT PROGRAM.

    (a) Report on Program.--Not later than March 30, 1997, the Secretary 
of Defense shall submit to the congressional defense committees a report 
on the F/A-18E/F aircraft program.
    (b) Content of Report.--The report shall contain the following:
            (1) A review of the F/A-18E/F aircraft program.
            (2) An analysis and estimate of the production costs of the 
        program for the total number of aircraft realistically expected 
        to be procured at each of three annual production rates as 
        follows:
                    (A) 18 aircraft.
                    (B) 24 aircraft.
                    (C) 36 aircraft.
            (3) A comparison of the costs and benefits of the program 
        with the costs and benefits of the F/A-18C/D aircraft program 
        taking into account the operational combat effectiveness of the 
        aircraft.

    (c) Limitation on Use of Funds Pending Submission of Report.--Not 
more than 90 percent of the funds authorized to be appropriated by this 
Act for the procurement of F/A-18E/F aircraft may be obligated or 
expended for procurement of such aircraft before the date that is 30 
days after the date on which the congressional defense committees 
receive the report required under subsection (a).

SEC. 220. JOINT ADVANCED STRIKE TECHNOLOGY (JAST) PROGRAM.

    (a) Allocation of Funds.--Of the amounts authorized to be 
appropriated pursuant to the authorizations in section 201, $602,069,000 
shall be available only for advanced technology development for the 
Joint Advanced Strike Technology (JAST) program. Of that amount--
            (1) $259,833,000 shall be available only for program element 
        63800N in the budget of the Department of Defense for fiscal 
        year 1997;
            (2) $263,836,000 shall be available only for program element 
        63800F in the budget of the Department of Defense for fiscal 
        year 1997; and
            (3) $78,400,000 shall be available only for program element 
        63800E in the budget of the Department of Defense for fiscal 
        year 1997.

    (b) Analysis of Force Structure.--Of the amounts authorized to be 
appropriated by section 201 for the Joint Advanced Strike Technology 
program, up to $10,000,000 shall be available for the conduct of an 
analysis by the Institute for Defense Analyses of the following:
            (1) The weapon systems force structure required to meet the 
        anticipated range of threats projected by the intelligence 
        community for the period 2000 through 2025.
            (2) Alternative force mixes, including, at a minimum, the 
        following force mixes:
                    (A) Joint Strike Fighter derivative aircraft; 
                remanufactured AV-8 aircraft; F-18C/D, F-18E/F, AH-64, 
                AH-1W, RAH-66, F-14, F-16, F-15, F-117, F-22, B-1, B-2, 
                and

[[Page 110 STAT. 2457]]

                B-52 aircraft; and air-to-surface and surface-to-surface 
                weapons systems.
                    (B) Joint Strike Fighter derivative aircraft; 
                remanufactured AV-8 aircraft; F-18C/D, F-18E/F, F-14, F-
                16, F-15, F-117, and F-22 aircraft; and air-to-surface 
                and surface-to-surface weapons systems.
            (3) Cost and operational effectiveness of the alternative 
        force mixes analyzed under paragraph (2), including
sensitivity analyses related to system performance, costs, threats, and 
force employment scenarios.
            (4) Required operational capability dates of systems not yet 
        in production for the force mixes analyzed under paragraph (2).
            (5) Affordability, commonality, and roles and missions 
        considerations related to the alternative force mixes analyzed 
        under paragraph (2).

    (c) <<NOTE: Reports.>>  Cost Review of Force Structure Analysis.--
The Secretary of Defense shall direct the Cost Analysis Improvement 
Group in the Office of the Secretary of Defense to review cost estimates 
made under the analysis conducted under subsection (b) and submit to the 
Secretary a report on the results of the review. The report may include 
comments and additional cost sensitivity analyses.

    (d) Briefing and Report.--(1) Not later than November 15, 1996, the 
Secretary of Defense shall make available to the congressional defense 
committees a briefing on the plan and assumptions for the analysis to be 
conducted under subsection (b).
    (2) Not later than May 15, 1997, the Secretary of Defense shall 
submit to the congressional defense committees a report containing a 
copy of the analysis conducted under subsection (b) and of the cost 
review conducted under subsection (c), together with the views of the 
Secretary on such analysis and cost review.

SEC. 221. UNMANNED AERIAL VEHICLES.

    (a) Procurement Funding Request.--The funding request for 
procurement for unmanned aerial vehicles for any fiscal year shall be 
set forth under the funding requests for the military departments in the 
budget of the Department of Defense.
    (b) <<NOTE: Effective date.>>  Transfer of Program Management.--
Program management for the Predator Unmanned Aerial Vehicle, and 
programmed funding for such vehicle for fiscal years 1998, 1999, 2000, 
2001, and 2002 (as set forth in the future-years defense program), shall 
be transferred to the Department of the Air Force, effective October 1, 
1996, or the date of the enactment of this Act, whichever is later.

    (c) Prohibition on Providing Operating Capability from Naval 
Vessels.--No funds authorized to be appropriated by this Act may be 
obligated for purposes of providing the capability of the Predator 
Unmanned Aerial Vehicle to operate from naval vessels.

SEC. 222. HIGH ALTITUDE ENDURANCE UNMANNED AERIAL RECONNAISSANCE SYSTEM.

    Any concepts for an improved Tier III Minus (High Altitude Endurance 
Unmanned Aerial Reconnaissance) system, developed using funds authorized 
to be appropriated under this title, that would increase the unit 
flyaway cost for such system to an amount greater than the unit flyaway 
cost established in either of the original contracts for such system, 
may not be carried out under

[[Page 110 STAT. 2458]]

the original contracts, but must instead be carried out under another 
contract that is awarded using competitive procedures.

SEC. 223. CYCLONE CLASS PATROL CRAFT SELF-DEFENSE.

    (a) Study Required.--The Secretary of Defense shall perform a study 
of the operational requirements for vessel self-defense for the Cyclone 
class patrol craft and a comparative evaluation of the potential means 
for meeting the operational requirements for self-defense of the craft. 
The study shall consider the range of operational scenarios in which the 
craft is expected to be employed.
    (b) Systems To Be Evaluated.--The study under subsection (a) shall 
consider those self-defense systems that could be employed aboard the 
Cyclone class patrol craft, including the Barak ship self-defense 
missile system.
    (c) Report.--Not later than March 31, 1997, the Secretary shall 
submit to Congress a report containing the results of the study under 
subsection (a).
SEC. 224. ONE-YEAR EXTENSION OF DEADLINE FOR DELIVERY OF ENHANCED 
                        FIBER OPTIC GUIDED MISSILE (EFOG-M) 
                        SYSTEM.

    Section 272(a)(2) of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 239) is amended by 
striking out ``September 30, 1998,'' and inserting in lieu thereof 
``September 30, 1999,''.

SEC. 225. HYDRA-70 ROCKET PRODUCT IMPROVEMENT PROGRAM.

    (a) Funding Authorization.--Of the amount authorized to be 
appropriated under section 201(1) for the Army for Other Missile Product 
Improvement Programs, $9,000,000 is authorized as specified in 
subsection (b) for completion of the Hydra-70 product improvement 
program authorized for fiscal year 1996.
    (b) Authorized Actions.--Funding is authorized to be appropriated 
for the following:
            (1) Procurement for test and flight qualification of at 
        least one nondevelopmental item 2.75-inch composite rocket motor 
        propellant type, along with other nondevelopmental item 
        candidate motors that use composite propellant as the propulsion 
        component.
            (2) Platform integration, including additional quantities of 
        the motor chosen for operational certification on the Apache 
        attack helicopter.

    (c) Definition.--In this section, the term ``nondevelopmental item'' 
has the meaning provided in section 4 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403).
SEC. 226. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTERS.

    (a) Centers Covered.--Funds authorized to be appropriated for the 
Department of Defense for fiscal year 1997 under section 201 may be 
obligated to procure work from a federally funded research and 
development center (in this section referred to as an ``FFRDC'') 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

[[Page 110 STAT. 2459]]

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 from which work is proposed to be 
        procured for the Department of Defense for fiscal year 1997;
            (B) for each such center, the proposed funding level and the 
        estimated personnel level for fiscal year 1997; and
            (C) for each such center, an unambiguous definition of the 
        unique core competencies required to be maintained for fiscal 
        year 1997.

    (2) The total of the proposed funding levels set forth in the report 
for all FFRDCs may not exceed the amount set forth in subsection (d).
    (c) Limitation Pending Submission of Report.--Not more than 15 
percent of the funds authorized to be appropriated for the Department of 
Defense for fiscal year 1997 for FFRDCs under section 201 may be 
obligated to procure work from an FFRDC until the Secretary of Defense 
submits the report required by subsection (b).
    (d) Funding.--(1) Subject to paragraph (2), of the amounts 
authorized to be appropriated by section 201, not more than a total of 
$1,214,650,000 may be obligated to procure services from the FFRDCs 
named in the report required by subsection (b).
    (2) The limitation in paragraph (1) does not apply to funds 
obligated for the procurement of equipment for FFRDCs.
    (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. <<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.
SEC. 227. DEMILITARIZATION OF CONVENTIONAL MUNITIONS, ROCKETS, AND 
                        EXPLOSIVES.

    (a) Establishment of Conventional Munitions, Rockets, and Explosives 
Demilitarization Program.--The Secretary of Defense shall establish an 
integrated program for the development and demonstration of technologies 
for the demilitarization and disposal of conventional munitions, 
rockets, and explosives in a manner that complies with applicable 
environmental laws.
    (b) <<NOTE: Effective date.>>  Duration of Program.--The program 
established pursuant to subsection (a) shall be in effect for a period 
of at least five years, beginning with fiscal year 1997.

    (c) Funding.--Of the amount authorized to be appropriated in section 
201, $15,000,000 is authorized to be appropriated for the program 
established pursuant to subsection (a). The funding request for the 
program shall be set forth separately in the budget

[[Page 110 STAT. 2460]]

justification documents for the budget of the Department of Defense for 
each fiscal year during which the program is in effect.
    (d) Reports.--The Secretary of Defense shall submit to Congress a 
report on the plan for the program established pursuant to subsection 
(a) at the same time the President submits to Congress the budget for 
fiscal year 1998. The Secretary shall submit an updated version of such 
report, setting forth in detail the progress of the program, at the same 
time the President submits the budget for each fiscal year after fiscal 
year 1998 during which the program is in effect.
SEC. 228. RESEARCH ACTIVITIES OF THE DEFENSE ADVANCED RESEARCH 
                        PROJECTS AGENCY RELATING TO CHEMICAL AND 
                        BIOLOGICAL WARFARE DEFENSE TECHNOLOGY.

    (a) Authority.--Section 1701(c) of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 
1853; 50 U.S.C. 1522) is amended--
            (1) by inserting ``(1)'' before ``The Secretary''; and
            (2) by adding at the end the following new paragraph:

    ``(2) The Director of the Defense Advanced Research Projects Agency 
may conduct a program of basic and applied research and advanced 
technology development on chemical and biological warfare defense 
technologies and systems. In conducting such program, the Director shall 
seek to avoid unnecessary duplication of the activities under the 
program with chemical and biological warfare defense activities of the 
military departments and defense agencies and shall coordinate the 
activities under the program with those of the military departments and 
defense agencies.''.
    (b) Funding.--Section 1701(d) of such Act is amended--
            (1) in paragraph (1), by striking out ``military 
        departments'' and inserting in lieu thereof ``Department of 
        Defense'';
            (2) in paragraph (2), by inserting after ``requests for the 
        program'' in the first sentence the following: ``(other than for 
        activities under the program conducted by the Defense Advanced 
        Research Projects Agency under subsection (c)(2))'';
            (3) by redesignating paragraph (3) as paragraph (4); and
            (4) by inserting after paragraph (2) the following new 
        paragraph (3):

    ``(3) The program conducted by the Defense Advanced Research 
Projects Agency under subsection (c)(2) shall be set forth as a separate 
program element in the budget of that agency.''.
SEC. 229. CERTIFICATION <<NOTE: President.>> OF CAPABILITY OF 
                        UNITED STATES TO PREVENT ILLEGAL 
                        IMPORTATION OF NUCLEAR, BIOLOGICAL, AND 
                        CHEMICAL WEAPONS.

    Not later than 15 days after the date of the enactment of this Act, 
the President shall submit to Congress a certification in writing 
stating specifically whether or not the United States has the capability 
(as of the date of the certification) to prevent the illegal importation 
of nuclear, biological, and chemical weapons into the United States and 
its possessions.

SEC. 230. NONLETHAL WEAPONS AND TECHNOLOGIES PROGRAMS.

    (a) Funding.--Of the amount authorized to be appropriated under 
section 201(2), $15,000,000 shall be available for joint service 
research, development, test, and evaluation of nonlethal weapons and 
nonlethal technologies under the program element established pursuant to 
subsection (b).

[[Page 110 STAT. 2461]]

    (b) New Program Element Required.--The Secretary of Defense shall 
establish a new program element for the funds authorized to be 
appropriated under subsection (a). The funds within that program element 
shall be administered by the executive agent designated for joint 
service research, development, test, and evaluation of nonlethal weapons 
and nonlethal technologies.

SEC. 231. COUNTERPROLIFERATION SUPPORT PROGRAM.

    (a) Funding.--Of the funds authorized to be appropriated to the 
Department of Defense under section 201(4), $186,200,000 shall be 
available for the Counterproliferation Support Program, of which 
$75,000,000 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 1997 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 (22 
U.S.C. 2751 note). Amounts of authorizations so transferred shall be 
merged with and be available for the same purposes as the authorization 
to which transferred.
    (2) The total amount of authorizations transferred under the 
authority of this subsection may not exceed $50,000,000.
    (3) The authority provided by this subsection to transfer 
authorizations--
            (A) may only be used to provide authority for items that 
        have a higher priority than the items from which authority is 
        transferred; and
            (B) may not be used to provide authority for an item that 
        has been denied authorization by Congress.

    (4) A transfer made from one account to another under the authority 
of this subsection shall be deemed to increase the amount authorized for 
the account to which the amount is transferred by an amount equal to the 
amount transferred.
    (5) <<NOTE: Notification.>>  The Secretary of Defense shall promptly 
notify Congress of transfers made under the authority of this 
subsection.

    (c) Limitation on Use of Funds for Technical Studies and Analyses 
Pending Release of Funds.--(1) None of the funds authorized to be 
appropriated to the Department of Defense for fiscal year 1997 for 
program element 605104D, relating to technical studies and analyses, may 
be obligated or expended until the funds referred to in paragraph (2) 
have been released to the program manager of the tactical anti-satellite 
technology program for implementation of that program.
    (2) The funds for release referred to in paragraph (1) are as 
follows:
            (A) Funds authorized to be appropriated by section 218(a) of 
        the National Defense Authorization Act for Fiscal Year 1996 
        (Public Law 104-106; 110 Stat. 222) that are available for the 
        program referred to in paragraph (1).
            (B) Funds authorized to be appropriated to the Department 
        for fiscal year 1997 by this Act for the Counterproliferation

[[Page 110 STAT. 2462]]

        Support Program that are to be made available for that program.

             Subtitle C--Ballistic Missile Defense Programs

SEC. 241. FUNDING FOR BALLISTIC MISSILE DEFENSE PROGRAMS FOR 
                        FISCAL YEAR 1997.

    (a) Program Amounts.--Of the amount appropriated pursuant to section 
201(4), the following amounts may be obligated for the following systems 
managed by the Ballistic Missile Defense Organization:
            (1) For the Theater High Altitude Area Defense (THAAD) 
        System, $621,798,000.
            (2) For the Navy Upper Tier (Theater Wide) system, 
        $304,171,000.
            (3) For the National Missile Defense System, $858,437,000.
            (4) For the Corps Surface-to-Air Missile (SAM)/Medium 
        Extended Air Defense System (MEADS), $56,200,000.

    (b) <<NOTE: Certification.>>  Limitation.--None of the funds 
appropriated or otherwise made available for the Department of Defense 
pursuant to this or any other Act may be obligated or expended by the 
Office of the Under Secretary of Defense for Acquisition and Technology 
for official representation activities, or related activities, until the 
Secretary of Defense certifies to Congress that--
            (1) the Secretary has made available for obligation the 
        funds provided under subsection (a) for the purposes specified 
        in that subsection and in the amounts appropriated pursuant to 
        that subsection; and
            (2) the Secretary has included the Navy Upper Tier theater 
        missile defense system in the theater missile defense core 
        program.

    (c) Limitations.--Not more than $15,000,000 of the amount available 
for the Corps SAM/MEADS program under
subsection (a) may be obligated until the Secretary of Defense submits 
to the congressional defense committees the following:
            (1) An initial program estimate for the Corps SAM/MEADS 
        program, including a tentative schedule of major milestones and 
        an estimate of the total program cost through initial 
        operational capability.
            (2) <<NOTE: Reports.>>  A report on the options associated 
        with the use of existing systems, technologies, and program 
        management mechanisms to satisfy the requirement for the Corps 
        surface-to-air missile, including an assessment of cost and 
        schedule implications in relation to the program estimate 
        submitted under paragraph (1).
            (3) <<NOTE: Certification.>>  A certification that there 
        will be no increase in overall United States funding commitment 
        to the project definition and validation phase of the Corps SAM/
        MEADS program as a result of the withdrawal of France from 
        participation in the program.
SEC. 242. CERTIFICATION <<NOTE: President.>> OF CAPABILITY OF 
                        UNITED STATES TO DEFEND AGAINST SINGLE 
                        BALLISTIC MISSILE.

    Not later than 15 days after the date of the enactment of this Act, 
the President shall submit to Congress a certification

[[Page 110 STAT. 2463]]

in writing stating specifically whether or not the United States has the 
military capability (as of the time of the certification) to intercept 
and destroy a single ballistic missile launched at the territory of the 
United States.
SEC. 243. REPORT ON BALLISTIC MISSILE DEFENSE AND PRO- LIFERATION.

    The Secretary of Defense shall submit to Congress a report on 
ballistic missile defense and the proliferation of weapons of mass 
destruction, including nuclear, chemical, and biological weapons, and 
the missiles that can be used to deliver them. The report shall be 
submitted not later than December 31, 1996, and shall include the 
following:
            (1) An assessment of how United States theater missile 
        defenses contribute to United States efforts to prevent 
        proliferation, including an evaluation of the specific effect 
        United States theater missile defense systems can have on 
        dissuading other states from acquiring ballistic missiles.
            (2) An assessment of how United States national missile 
        defenses contribute to United States efforts to prevent 
        proliferation.
            (3) An assessment of the effect of the lack of national 
        missile defenses on the desire of other states to acquire 
        ballistic missiles and an evaluation of the types of missiles 
        other states might seek to acquire as a result.
            (4) A detailed review of the linkages between missile 
        defenses (both theater and national) and each of the categories 
        of counterproliferation activities identified by the Secretary 
        of Defense as part of the Defense Counterproliferation 
        Initiative announced by the Secretary in December 1993.
            (5) A description of how theater and national ballistic 
        missile defenses can augment the effectiveness of other 
        counterproliferation tools.
SEC. 244. REVISION TO ANNUAL REPORT ON BALLISTIC MISSILE DEFENSE 
                        PROGRAM.

    Section 224(b) of the National Defense Authorization Act for Fiscal 
Years 1990 and 1991 (10 U.S.C. 2431 note) is amended--
            (1) by striking out paragraphs (3), (4), and (10);
            (2) by redesignating paragraphs (5) and (6) as paragraphs 
        (3) and (4), respectively;
            (3) by redesignating paragraph (7) as paragraph (5) and in 
        that paragraph by striking out ``of the Soviet Union'' and ``for 
        the Soviet Union'';
            (4) by redesignating paragraph (8) as paragraph (6); and
            (5) by redesignating paragraph (9) as paragraph (7) and in 
        that paragraph--
                    (A) by striking out ``of the Soviet Union'' in 
                subparagraph (A);
                    (B) by striking out subparagraphs (C) through (F); 
                and
                    (C) by redesignating subparagraph (G) as 
                subparagraph (C).

SEC. 245. REPORT ON AIR FORCE NATIONAL MISSILE DEFENSE PLAN.

    Not later than 120 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

[[Page 110 STAT. 2464]]

Security of the House of Representatives a report on the following 
matters regarding the National Missile Defense Plan of the Air Force:
            (1) The cost and operational effectiveness of a system that 
        could be developed pursuant to that plan.
            (2) The arms control implications of such a system.
            (3) The growth potential of such a system to meet future 
        threats.
            (4) The recommendations of the Secretary for improvements to 
        that plan.

SEC. 246. CAPABILITY OF NATIONAL MISSILE DEFENSE SYSTEM.

    The Secretary of Defense shall ensure that any National Missile 
Defense system deployed by the United States is capable of defeating the 
threat posed by the Taepo Dong II missile of North Korea.
SEC. 247. ACTIONS TO LIMIT ADVERSE EFFECTS ON PRIVATE SECTOR 
                        EMPLOYMENT OF ESTABLISHMENT OF NATIONAL 
                        MISSILE DEFENSE JOINT PROGRAM OFFICE.

    The Secretary of Defense shall take such actions as are necessary in 
connection with the establishment of the National Missile Defense Joint 
Program Office within the Ballistic Missile Defense Organization to 
ensure that the establishment of that office does not make it necessary 
for a Federal Government contractor to reduce significantly the number 
of persons employed by that contractor for supporting the national 
missile defense development program at any particular location outside 
the National Capital Region (as defined in section 2674(f)(2) of title 
10, United States Code).

SEC. 248. 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.

                        Subtitle D--Other Matters

SEC. 261. MAINTENANCE AND REPAIR AT AIR FORCE INSTALLATIONS.

    (a) Allocation of Funds.--The Secretary of the Air Force shall 
allocate funds authorized to be appropriated by this title and title III 
of this Act for maintenance and repair of real property at military 
installations of the Department of the Air Force without regard to 
whether the installation is supported with funds authorized by this 
title or title III of this Act.
    (b) Mixing of Funds Prohibited on Individual Projects.--The 
Secretary of the Air Force may not combine funds authorized to be 
appropriated by this title and funds authorized to be appropriated by 
title III for an individual project for maintenance and repair of real 
property at a military installation of the Department of the Air Force.

[[Page 110 STAT. 2465]]

SEC. 262. REPORT RELATING TO SMALL BUSINESS INNOVATION RESEARCH 
                        PROGRAM.

    Not later than March 30, 1997, the Comptroller General shall submit 
to Congress and to the Secretary of Defense a report setting forth the 
following with respect to the Small Business Innovation Research Program 
(as defined by section 2491(11) of title 10, United States Code):
            (1) An assessment of whether there has been a demonstrable 
        reduction in the quality of research performed under funding 
        agreements awarded by the Department of Defense under the 
        program since fiscal year 1995.
            (2) An assessment of the degree to which competitive 
        procedures are being followed throughout the military 
        departments and defense agencies in awarding funding agreements 
        under the program.
            (3) An assessment of the degree to which technologies 
        developed through the program are or are likely to be used in 
        military projects and programs.
SEC. 263. AMENDMENT TO UNIVERSITY RESEARCH INITIATIVE SUPPORT 
                        PROGRAM.

    Section 802(c) of the National Defense Authorization Act for Fiscal 
Year 1994 (Public Law 103-160; 107 Stat. 1701; 10 U.S.C. 2358 note) is 
amended by striking out ``fiscal years before the fiscal year in which 
the institution submits a proposal'' and inserting in lieu thereof 
``most recent fiscal years for which complete statistics are available 
when proposals are requested''.
SEC. 264. AMENDMENTS TO DEFENSE EXPERIMENTAL PROGRAM TO STIMULATE 
                        COMPETITIVE RESEARCH.

    Section 257(d) 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--
            (1) in paragraph (1)--
                    (A) by striking out ``Director of the National 
                Science Foundation'' and inserting in lieu thereof 
                ``Under Secretary of Defense for Acquisition and 
                Technology''; and
                    (B) by striking out ``and shall notify the Director 
                of Defense Research and Engineering of the States so 
                designated''; and
            (2) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A)--
                          (i) by striking out ``Director of the National 
                      Science Foundation'' and inserting in lieu thereof 
                      ``Under Secretary of Defense for Acquisition and 
                      Technology''; and
                          (ii) by striking out ``as determined by the 
                      Director'' and inserting in lieu thereof ``as 
                      determined by the Under Secretary'';
                    (B) in subparagraph (A), by striking out ``(to be 
                determined in consultation with the Secretary of 
                Defense);'' and inserting in lieu thereof ``; and'';
                    (C) by striking out ``; and'' at the end of 
                subparagraph (B) and inserting in lieu thereof a period; 
                and
                    (D) by striking out subparagraph (C).

[[Page 110 STAT. 2466]]

SEC. 265. ELIMINATION OF REPORT ON THE USE OF COMPETITIVE 
                        PROCEDURES FOR THE AWARD OF CERTAIN 
                        CONTRACTS TO COLLEGES AND UNIVERSITIES.

    Section 2361 of title 10, United States Code, is amended by striking 
out subsection (c).
SEC. 266. PILOT PROGRAM FOR TRANSFER OF DEFENSE TECHNOLOGY 
                        INFORMATION TO PRIVATE INDUSTRY.

    (a) Program Required.--The Secretary of Defense shall carry out a 
pilot program to demonstrate online transfers of information on defense 
technologies to businesses in the private sector through an interactive 
data network involving Small Business Development Centers of 
institutions of higher education.
    (b) Computerized Data Base of Defense Technologies.--
(1) <<NOTE: Contracts.>>  Under the pilot program, the Secretary shall 
enter into an agreement with the head of an eligible institution of 
higher education that provides for such institution--
            (A) to develop and maintain a computerized data base of 
        information on defense technologies;
            (B) to make such information available online to--
                    (i) businesses; and
                    (ii) other institutions of higher education entering 
                into partnerships with the Secretary under subsection 
                (c).

    (2) The online accessibility may be established by means of any of, 
or any combination of, the following:
            (A) Digital teleconferencing.
            (B) International Signal Digital Network lines.
            (C) Direct modem hookup.

    (c) Partnership <<NOTE: Contracts.>> Network.--Under the pilot 
program, the Secretary shall seek to enter into agreements with the 
heads of several eligible institutions of higher education having strong 
business education programs to provide for the institutions of higher 
education entering into such agreements--
            (1) to establish interactive computer links with the data 
        base developed and maintained under subsection (b); and
            (2) to assist the Secretary in making information on defense 
        technologies available online to the broadest practicable 
        number, types, and sizes of businesses.

    (d) Eligible Institutions.--For the purposes of this section, an 
institution of higher education is eligible to enter into an agreement 
under subsection (b) or (c) if the institution has a Small Business 
Development Center.
    (e) Defense Technologies Covered.--(1) The Secretary shall designate 
the technologies to be covered by the pilot program from among the 
existing and experimental technologies that the Secretary determines--
            (A) are useful in meeting Department of Defense needs; and
            (B) should be made available under the pilot program to 
        facilitate the satisfaction of such needs by private sector 
        sources.

    (2) Technologies covered by the program should include technologies 
useful for defense purposes that can also be used for nondefense 
purposes (with or without modification).
    (f) Definitions.--In this section:

[[Page 110 STAT. 2467]]

            (1) The term ``Small Business Development Center'' means a 
        small business development center established pursuant to 
        section 21 of the Small Business Act (15 U.S.C. 648).
            (2) The term ``defense technology'' means a technology 
        designated by the Secretary of Defense under subsection (d).
            (3) The term ``partnership'' means an agreement entered into 
        under subsection (c).

    (g) Termination of Pilot Program.--The pilot program shall terminate 
one year after the Secretary enters into an agreement under subsection 
(b).
    (h) Authorization of Appropriations.--Of the amount authorized to be 
appropriated under section 201(4) for university research initiatives, 
$3,000,000 is available for the pilot program.
SEC. 267. RESEARCH UNDER TRANSACTIONS OTHER THAN CONTRACTS AND 
                        GRANTS.

    (a) Conditions for Use of Authority.--Subsection (e) of section 2371 
of title 10, United States Code, is amended--
            (1) by redesignating paragraphs (1) and (2) as subparagraphs 
        (A) and (B);
            (2) by inserting ``and'' after the semicolon at the end of 
        subparagraph (A), as so redesignated;
            (3) by striking out ``; and'' at the end of subparagraph 
        (B), as so redesignated, and inserting in lieu thereof a period;
            (4) by inserting ``(1)'' after ``(e) Conditions.--''; and
            (5) by striking out paragraph (3) and inserting in lieu 
        thereof the following:

    ``(2) A cooperative agreement containing a clause under subsection 
(d) or a transaction authorized by subsection (a) may be used for a 
research project when the use of a standard contract, grant, or 
cooperative agreement for such project is not feasible or 
appropriate.''.
    (b) Revised Requirement for Annual Report.--Section 2371 of such 
title is amended by striking out subsection (h) and inserting in lieu 
thereof the following:
    ``(h) Annual Report.--(1) Not later than 90 days after the end 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 use by the Department of 
Defense during such fiscal year of--
            ``(A) cooperative agreements authorized under section 2358 
        of this title that contain a clause under subsection (d); and
            ``(B) transactions authorized by subsection (a).

    ``(2) The report shall include, with respect to the cooperative 
agreements and other transactions covered by the report, the following:
            ``(A) The technology areas in which research projects were 
        conducted under such agreements or other transactions.
            ``(B) The extent of the cost-sharing among Federal 
        Government and non-Federal sources.
            ``(C) The extent to which the use of the cooperative 
        agreements and other transactions--
                    ``(i) has contributed to a broadening of the 
                technology and industrial base available for meeting 
                Department of Defense needs; and

[[Page 110 STAT. 2468]]

                    ``(ii) has fostered within the technology and 
                industrial base new relationships and practices that 
                support the national security of the United States.
            ``(D) The total amount of payments, if any, that were 
        received by the Federal Government during the fiscal year 
        covered by the report pursuant to a clause described in 
        subsection (d) that was included in the cooperative agreements 
        and other transactions, and the amount of such payments, if any, 
        that were credited to each account established under subsection 
        (f).''.

    (c) Division of Section Into Distinct Provisions by Subject 
Matter.--(1) Chapter 139 of title 10, United States Code, is amended--
            (A) by inserting before the last subsection of section 2371 
        (relating to cooperative research and development agreements 
        under the Stevenson-Wydler Technology Innovation Act of 1980) 
        the following:
``Sec. 2371a. Cooperative research and development agreements 
                      under Stevenson-Wydler Technology Innovation 
                      Act of 1980'';
            (B) in section 2371a (as designated by the amendment made by 
        subparagraph (A)), by striking out ``(i) Cooperative Research 
        and Development Agreements Under Stevenson-Wydler Technology 
        Innovation Act of 1980.--''; and
            (C) in the table of sections at the beginning of such 
        chapter, by inserting after the item relating to section 2371 
        the following:

``2371a. Cooperative research and development agreements under 
              Stevenson-Wydler Technology Innovation Act of 1980.''.

    (2) Section 2358(d) of such title is amended by striking out 
``section 2371'' and inserting in lieu thereof ``sections 2371 and 
2371a''.

SEC. 268. DESALTING TECHNOLOGIES.

    (a) Findings.--Congress makes the following findings:
            (1) Access to scarce fresh water is likely to be a cause of 
        future military conflicts in the Middle East and has a direct 
        impact on stability and security in the region.
            (2) The Middle East is an area of vital and strategic 
        importance to the United States.
            (3) The United States has played a military role in the 
        Middle East, most recently in the Persian Gulf War, and may 
        likely be called upon again to deter aggression in the region.
            (4) United States troops have used desalting technologies to 
        guarantee the availability of fresh water in past deployments in 
        the Middle East.
            (5) Adequate, efficient, and cheap access to high-quality 
        fresh water will be vital to maintaining the readiness and 
        sustainability of troops of both the United States and its 
        allies.

    (b) Sense of Congress.--It is the sense of Congress that, as 
improved access to fresh water will be an important factor in helping 
prevent future conflicts in the Middle East, the United States should, 
in cooperation with its allies, promote and invest in technologies to 
reduce the costs of converting saline water into fresh water.

[[Page 110 STAT. 2469]]

    (c) Funding for Research and Development.--Of the amounts authorized 
to be appropriated by this title, the Secretary shall place greater 
emphasis on making funds available for research and development into 
efficient and economical processes and methods for converting saline 
water into fresh water.
SEC. 269. EVALUATION OF DIGITAL VIDEO NETWORK EQUIPMENT USED IN 
                        OLYMPIC GAMES.

    (a) Evaluation.--The Secretary of Defense shall evaluate the digital 
video network equipment used in the 1996 Olympic games to determine 
whether such equipment would be the most appropriate equipment for use 
as a test bed for the military application of commercial off-the-shelf 
advanced technology linking multiple continents, multiple satellites, 
and multiple theaters of operations by compressed digital audio and 
visual broadcasting technology.
    (b) Report.--Not later than April 1, 1997, the Secretary of Defense 
shall submit to Congress a report on the results of the evaluation 
conducted under subsection (a).
SEC. 270. ANNUAL <<NOTE: 10 USC 2501 note.>> JOINT WARFIGHTING 
                        SCIENCE AND TECHNOLOGY PLAN.

    (a) Annual Plan Required.--On 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 
plan for ensuring that the science and technology program of the 
Department of Defense supports the development of the future joint 
warfighting capabilities identified as priority requirements for the 
Armed Forces.
    (b) First Plan.--The first plan under subsection (a) shall be 
submitted not later than March 1, 1997.

         Subtitle E--National Oceanographic Partnership Program

SEC. 281. <<NOTE: 10 USC 7901 note.>>  FINDINGS.

    Congress finds the following:
            (1) The oceans and coastal areas of the United States are 
        among the Nation's most valuable natural resources, making 
        substantial contributions to economic growth, quality of life, 
        and national security.
            (2) Oceans drive global and regional climate. Hence, they 
        contain information affecting agriculture, fishing, and the 
        prediction of severe weather.
            (3) Understanding of the oceans through basic and applied 
        research is essential for using the oceans wisely and protecting 
        their limited resources. Therefore, the United States should 
        maintain its world leadership in oceanography as one key to its 
        competitive future.
            (4) Ocean research and education activities take place 
        within Federal agencies, academic institutions, and industry. 
        These entities often have similar requirements for research 
        facilities, data, and other resources (such as oceanographic 
        research vessels).
            (5) The need exists for a formal mechanism to coordinate 
        existing partnerships and establish new partnerships for the 
        sharing of resources, intellectual talent, and facilities in the

[[Page 110 STAT. 2470]]

        ocean sciences and education, so that optimal use can be made of 
        this most important natural resource for the well-being of all 
        Americans.

SEC. 282. NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM.

    (a) Program Required.--(1) Subtitle C of title 10, United States 
Code, is amended by adding after chapter 663 the following new chapter:

        ``CHAPTER 665--NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM

``Sec.
``7901. National Oceanographic Partnership Program.
``7902. National Ocean Research Leadership Council.
``7903. Ocean Research Advisory Panel.

``Sec. 7901. National Oceanographic Partnership Program

    ``(a) Establishment.--The Secretary of the Navy shall establish a 
program to be known as the `National Oceanographic Partnership Program'.
    ``(b) Purposes.--The purposes of the program are as follows:
            ``(1) To promote the national goals of assuring national 
        security, advancing economic development, protecting quality of 
        life, and strengthening science education and communication 
        through improved knowledge of the ocean.
            ``(2) To coordinate and strengthen oceanographic efforts in 
        support of those goals by--
                    ``(A) identifying and carrying out partnerships 
                among Federal agencies, academia, industry, and other 
                members of the oceanographic scientific community in the 
                areas of data, resources, education, and communication; 
                and
                    ``(B) reporting annually to Congress on the program.

``Sec. 7902. National Ocean Research Leadership Council

    ``(a) Council.--There is a National Ocean Research Leadership 
Council (hereinafter in this chapter referred to as the `Council').
    ``(b) Membership.--The Council is composed of the following members:
            ``(1) The Secretary of the Navy.
            ``(2) The Administrator of the National Oceanic and 
        Atmospheric Administration.
            ``(3) The Director of the National Science Foundation.
            ``(4) The Administrator of the National Aeronautics and 
        Space Administration.
            ``(5) The Deputy Secretary of Energy.
            ``(6) The Administrator of the Environmental Protection 
        Agency.
            ``(7) The Commandant of the Coast Guard.
            ``(8) The Director of the Geological Survey of the 
        Department of the Interior.
            ``(9) The Director of the Defense Advanced Research Projects 
        Agency.
            ``(10) The Director of the Minerals Management Service of 
        the Department of the Interior.
            ``(11) The President of the National Academy of Sciences, 
        the President of the National Academy of Engineering, and the 
        President of the Institute of Medicine.

[[Page 110 STAT. 2471]]

            ``(12) The Director of the Office of Science and Technology.
            ``(13) The Director of the Office of Management and Budget.
            ``(14) One member appointed by the chairman from among 
        individuals who will represent the views of ocean industries.
            ``(15) One member appointed by the chairman from among 
        individuals who will represent the views of State governments.
            ``(16) One member appointed by the chairman from among 
        individuals who will represent the views of academia.
            ``(17) One member appointed by the chairman from among 
        individuals who will represent such other views as the chairman 
        considers appropriate.

    ``(c) Chairman and Vice Chairman.--(1) Except as provided in 
paragraph (2), the chairman and vice chairman of the Council shall be 
appointed every two years by a selection committee of the Council 
composed of, at a minimum, the Secretary of the Navy, the Administrator 
of the National Oceanic and Atmospheric Administration, and the Director 
of the National Science Foundation. The term of office of the chairman 
and vice chairman shall be two years. A person who has previously served 
as chairman or vice chairman may be reappointed.
    ``(2) The first chairman of the Council shall be the Secretary of 
the Navy. The first vice chairman of the Council shall be the 
Administrator of the National Oceanic and Atmospheric Administration.
    ``(d) Term of Office.--The term of office of a member of the Council 
appointed under paragraph (14), (15), (16), or (17) of subsection (b) 
shall be two years, except that any person appointed to fill a vacancy 
occurring before the expiration of the term for which his predecessor 
was appointed shall be appointed for the remainder of such term.
    ``(e) Responsibilities.--The Council shall have the following 
responsibilities:
            ``(1) To prescribe policies and procedures to implement the 
        National Oceanographic Partnership Program.
            ``(2) To review, select, and identify and allocate funds for 
        partnership projects for implementation under the program, based 
        on the following criteria:
                    ``(A) Whether the project addresses critical 
                research objectives or operational goals, such as data 
                accessibility and quality assurance, sharing of 
                resources, education, or communication.
                    ``(B) Whether the project has, or is designed to 
                have, broad participation within the oceanographic 
                community.
                    ``(C) Whether the partners have a long-term 
                commitment to the objectives of the project.
                    ``(D) Whether the resources supporting the project 
                are shared among the partners.
                    ``(E) Whether the project has been subjected to 
                adequate peer review.
            ``(3) To assess whether there is a need for a facility (or 
        facilities) to provide national centralization of oceanographic 
        data, and to establish such a facility or facilities if 
        determined necessary. In conducting the assessment, the Council 
        shall review, at a minimum, the following:
                    ``(A) The need for a national oceanographic data 
                center.
                    ``(B) The need for a national coastal data center.
                    ``(C) Accessibility by potential users of such 
                centers.

[[Page 110 STAT. 2472]]

                    ``(D) Preexisting facilities and expertise.

    ``(f) Annual Report.--Not later than March 1 of each year, the 
Council shall submit to Congress a report on the National Oceanographic 
Partnership Program. The report shall contain the following:
            ``(1) A description of activities of the program carried out 
        during the fiscal year before the fiscal year in which the 
        report is prepared, together with a list of the members of the 
        Ocean Research Advisory Panel and any working groups in 
        existence during the fiscal year covered.
            ``(2) A general outline of the activities planned for the 
        program during the fiscal year in which the report is prepared.
            ``(3) 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.
            ``(4) A description of the involvement of the program with 
        Federal interagency coordinating entities.
            ``(5) The amounts requested, in the budget submitted to 
        Congress pursuant to section 1105(a) of title 31, United States 
        Code, for the fiscal year following the fiscal year in which the 
        report is prepared, for the programs, projects, and activities 
        of the program and the estimated expenditures under such 
        programs, projects, and activities during such following fiscal 
        year.

    ``(g) Partnership Program Office.--(1) <<NOTE: Establishment.>>  The 
Council shall establish a partnership program office for the National 
Oceanographic Partnership Program. The Council shall use competitive 
procedures in selecting an operator for the partnership program office.

    ``(2) The Council shall assign the following duties to the 
partnership program office:
            ``(A) To establish and oversee working groups to propose 
        partnership projects to the Council and advise the Council on 
        such projects.
            ``(B) To manage the process for proposing partnership 
        projects to the Council, including managing peer review of such 
        projects.
            ``(C) <<NOTE: Reports.>>  To submit to the Council an annual 
        report on the status of all partnership projects and activities 
        of the office.
            ``(D) Any additional duties for the administration of the 
        National Oceanographic Partnership Program that the Council 
        considers appropriate.

    ``(3) The Council shall supervise the performance of duties by the 
partnership program office.

    ``(h) Contract and Grant Authority.--The Council may authorize one 
or more of the departments or agencies represented on the Council to 
enter into contracts and make grants, using funds appropriated pursuant 
to an authorization of appropriations for the National Oceanographic 
Partnership Program, for the purpose of implementing the program and 
carrying out the responsibilities of the Council.

    ``(i) Establishment and Forms of Partnership Projects.--(1) A 
partnership project under the National Oceanographic Partnership Program 
may be established by any instrument that the Council considers 
appropriate, including a memorandum of under

[[Page 110 STAT. 2473]]

standing, a cooperative research and development agreement, and any 
similar instrument.
    ``(2) Projects under the program may include demonstration projects.

``Sec. 7903. Ocean Research Advisory Panel

    ``(a) Establishment.--The Council shall establish an Ocean Research 
Advisory Panel consisting of not less than 10 and not more than 18 
members appointed by the Council from among persons eminent in the 
fields of marine science or marine policy, or related fields, and who 
are representative, at a minimum, of the interests of government, 
academia, and industry.
    ``(b) Responsibilities.--The Council shall assign to the Advisory 
Panel responsibilities that the Council considers appropriate.''.
    (2) The table of chapters at the beginning of subtitle C of title 
10, United States Code, and the table of chapters at the beginning of 
part IV of such subtitle, are each amended by inserting after the item 
relating to chapter 663 the following:

``665. National Oceanographic Partnership Program................7901''.

    (b) Initial <<NOTE: 10 USC 7902 note.>> Appointments of Council 
Members.--The Secretary of the Navy shall make the appointments required 
by section 7902(b) of title 10, United States Code, as added by 
subsection (a)(1), not later than December 1, 1996.

    (c) <<NOTE: 10 USC 7903 note.>>  Initial Appointments of Advisory 
Panel Members.--The National Ocean Research Leadership Council 
established by section 7902 of title 10, United States Code, as added by 
subsection (a)(1), shall make the appointments required by section 7903 
of such title not later than January 1, 1997.

    (d) <<NOTE: 10 USC 7902 note.>>  First Annual Report of National 
Ocean Research Leadership Council.--The first annual report required by 
section 7902(f) of title 10, United States Code, as added by subsection 
(a)(1), shall be submitted to Congress not later than March 1, 1997. The 
first report shall include, in addition to the information required by 
such section, information about the terms of office, procedures, and 
responsibilities of the Ocean Research Advisory Panel established by the 
Council.

    (e) Authorization.--(1) Of the amount authorized to be appropriated 
to the Department of the Navy by section 201(2), $13,000,000 shall be 
available for the National Oceanographic Partnership Program established 
pursuant to section 7901 of title 10, United States Code, as added by 
subsection (a)(1).
    (2) Of the amount authorized to be appropriated to the Department of 
the Navy by section 301(2), $7,500,000 shall be available for such 
program.
    (f) Funding for Program Office.--Of the amount appropriated for the 
National Oceanographic Partnership Program for fiscal year 1997, at 
least $500,000, or 3 percent of the amount appropriated, whichever is 
greater, shall be available for operations of the partnership program 
office established pursuant to section 7902(g) of title 10, United 
States Code, as added by subsection (a)(1), for such fiscal year.

[[Page 110 STAT. 2474]]

                  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 Corporation.
Sec. 306. Availability of additional funds for antiterrorism activities.
Sec. 307. Nonlethal weapons capabilities.
Sec. 308. SR-71 contingency reconnaissance force.

                   Subtitle B--Depot-Level Activities

Sec. 311. Extension of authority for aviation depots and naval shipyards 
                    to engage in defense-related production and 
                    services.
Sec. 312. Test programs for modernization-through-spares.

                  Subtitle C--Environmental Provisions

Sec. 321. Defense contractors covered by requirement for reports on 
                    contractor reimbursement costs for response actions.
Sec. 322. Establishment of separate environmental restoration accounts 
                    for each military department.
Sec. 323. Payment of stipulated penalties assessed under CERCLA.
Sec. 324. Shipboard solid waste control.
Sec. 325. Authority to develop and implement land use plans for Defense 
                    Environmental Restoration program.
Sec. 326. Pilot program to test alternative technology for limiting air 
                    emissions during shipyard blasting and coating 
                    operations.
Sec. 327. Agreements for services of other agencies in support of 
                    environmental technology certification.
Sec. 328. Repeal of redundant notification and consultation requirements 
                    regarding remedial investigations and feasibility 
                    studies at certain installations to be closed under 
                    the base closure laws.
Sec. 329. Authority for agreements with Indian tribes for services under 
                    environmental restoration program.
Sec. 330. Authority to withhold listing of Federal facilities on 
                    National Priorities List.
Sec. 331. Clarification of meaning of uncontaminated property for 
                    purposes of transfer by the United States.
Sec. 332. Conservation and cultural activities.
Sec. 333. Navy program to monitor ecological effects of organotin.
Sec. 334. Authority to transfer contaminated Federal property before 
                    completion of required response actions.

   Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 341. Contracts with other agencies to provide or obtain goods and 
                    services to promote efficient operation and 
                    management of exchanges and morale, welfare, and 
                    recreation activities.
Sec. 342. Noncompetitive procurement of brand-name commercial items for 
                    resale in commissary stores.
Sec. 343. Prohibition of sale or rental of sexually explicit material.

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

Sec. 351. Extension of requirement for competitive procurement of 
                    printing and duplication services.
Sec. 352. Reporting requirements under demonstration project for 
                    purchase of fire, security, police, public works, 
                    and utility services from local government agencies.

                        Subtitle F--Other Matters

Sec. 361. Authority for use of appropriated funds for recruiting 
                    functions.
Sec. 362. Training of members of the uniformed services at non-
                    Government facilities.
Sec. 363. Requirement for preparation of plan for improved operation of 
                    working-capital funds and effect of failure to 
                    produce an approved plan.
Sec. 364. Increase in capital asset threshold under Defense Business 
                    Operations Fund.

[[Page 110 STAT. 2475]]

Sec. 365. Expansion of authority to donate unusable food.
Sec. 366. Assistance to committees involved in inauguration of the 
                    President.
Sec. 367. Department of Defense support for sporting events.
Sec. 368. Storage of motor vehicle in lieu of transportation.
Sec. 369. Security protections at Department of Defense facilities in 
                    National Capital Region.
Sec. 370. Administration of midshipmen's store and other Naval Academy 
                    support activities as nonappropriated fund 
                    instrumentality.
Sec. 371. Reimbursement under agreement for instruction of civilian 
                    students at Foreign Language Institute of the 
                    Defense Language Institute.
Sec. 372. Assistance to local educational agencies that benefit 
                    dependents of members of the Armed Forces and 
                    Department of Defense civilian employees.
Sec. 373. Renovation of building for Defense Finance and Accounting 
                    Service Center, Fort Benjamin Harrison, Indiana.
Sec. 374. Food donation pilot program at service academies.
Sec. 375. Authority of Air National Guard to provide certain services at 
                    Lincoln Municipal Airport, Lincoln, Nebraska.
Sec. 376. Technical amendment regarding Impact Aid program.

               Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
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, $18,264,406,000.
            (2) For the Navy, $20,387,737,000.
            (3) For the Marine Corps, $2,421,007,000.
            (4) For the Air Force, $17,635,335,000.
            (5) For Defense-wide activities, $9,912,962,000.
            (6) For the Army Reserve, $1,136,436,000.
            (7) For the Naval Reserve, $858,927,000.
            (8) For the Marine Corps Reserve, $113,367,000.
            (9) For the Air Force Reserve, $1,499,553,000.
            (10) For the Army National Guard, $2,277,477,000.
            (11) For the Air National Guard, $2,711,173,000.
            (12) For the Defense Inspector General, $136,501,000.
            (13) For the United States Court of Appeals for the Armed 
        Forces, $6,797,000.
            (14) For Environmental Restoration, Army, $356,916,000.
            (15) For Environmental Restoration, Navy, $302,900,000.
            (16) For Environmental Restoration, Air Force, $414,700,000.
            (17) For Environmental Restoration, Defense-wide, 
        $258,500,000.
            (18) For Overseas Humanitarian, Disaster, and Civic Aid 
        programs, $54,544,000.
            (19) For Drug Interdiction and Counter-drug Activities, 
        Defense-wide, $796,524,000.
            (20) For the Kaho'olawe Island Conveyance, Remediation, and 
        Environmental Restoration Trust Fund, $10,000,000.
            (21) For Medical Programs, Defense, $9,833,288,000.
            (22) For Cooperative Threat Reduction programs, 
        $364,900,000.
            (23) For Domestic Emergency Assistance programs, 
        $97,000,000.
            (24) For OPLAN 34A-35 P.O.W. payments, $20,000,000.

[[Page 110 STAT. 2476]]

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
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, $947,900,000.
            (2) For the National Defense Sealift Fund, $1,118,002,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 1997 
from the Armed Forces Retirement Home Trust Fund the sum of $57,300,000 
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 1997 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 CORPORATION.

    (a) Funding.--Of the amount authorized to be appropriated pursuant 
to section 301 for operation and maintenance, $14,526,000 shall be 
available for the Civil Air Patrol Corporation.
    (b) Amount for Certain Operations.--Of the amount made available to 
the Civil Air Patrol Corporation pursuant to subsection (a), not less 
than 25 percent of such amount shall be reserved to cover the costs of 
search and rescue missions and disaster relief missions.
SEC. 306. AVAILABILITY OF ADDITIONAL FUNDS FOR ANTITERRORISM 
                        ACTIVITIES.

    Of the amount authorized to be appropriated pursuant to section 301 
for operation and maintenance, $14,000,000 shall be available to the 
Secretary of Defense for activities designed to meet the antiterrorism 
responsibilities of the Department of Defense, including activities 
related to intelligence support, physical security measures, and 
education and training regarding antiterrorism. The amount made 
available by this section is in addition to amounts otherwise made 
available by this Act for antiterrorism activities.

[[Page 110 STAT. 2477]]

SEC. 307. NONLETHAL WEAPONS CAPABILITIES.

    Of the amount authorized to be appropriated pursuant to section 301, 
$5,000,000 shall be available for the immediate procurement of nonlethal 
weapons capabilities to meet existing deficiencies in inventories of 
such capabilities, of which--
            (1) $2,000,000 shall be available for the Army; and
            (2) $3,000,000 shall be available for the Marine Corps.

SEC. 308. SR-71 CONTINGENCY RECONNAISSANCE FORCE.

    Of the funds authorized to be appropriated by section 301(4), 
$30,000,000 is authorized to be made available for the SR-71 contingency 
reconnaissance force.

                   Subtitle B--Depot-Level Activities

SEC. 311. 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, 1996'' and inserting in lieu thereof ``September 30, 
1997''.

SEC. 312. <<NOTE: Reports.>>  TEST PROGRAMS FOR MODERNIZATION-THROUGH-
            SPARES.

    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 on the steps that the Secretary has 
taken to ensure that each program included in the modernization-through-
spares program of the Army is conducted in accordance with--
            (1) the competition requirements in section 2304 of title 
        10, United States Code;
            (2) the core logistics requirements in section 2464 of such 
        title;
            (3) the public-private competition requirements in section 
        2469 of such title; and
            (4) requirements relating to contract bundling and spare 
        parts breakout in subsections (a) and (l) of section 15 of the 
        Small Business Act (15 U.S.C. 644) and regulations implementing 
        such subsections in the Defense Federal Acquisition Regulation 
        Supplement.

                  Subtitle C--Environmental Provisions

SEC. 321. DEFENSE CONTRACTORS COVERED BY REQUIREMENT FOR REPORTS 
                        ON CONTRACTOR REIMBURSEMENT COSTS FOR 
                        RESPONSE ACTIONS.

    Section 2706(d)(1)(A) of title 10, United States Code, is amended by 
striking out ``100'' and inserting in lieu thereof ``20''.
SEC. 322. ESTABLISHMENT OF SEPARATE ENVIRONMENTAL RESTORATION 
                        ACCOUNTS FOR EACH MILITARY DEPARTMENT.

    (a) Establishment.--(1) Section 2703 of title 10, United States 
Code, is amended to read as follows:

[[Page 110 STAT. 2478]]

``Sec. 2703. Environmental restoration accounts

    ``(a) Establishment of Accounts.--There are hereby established in 
the Department of Defense the following accounts:
            ``(1) An account to be known as the `Environmental 
        Restoration Account, Defense'.
            ``(2) An account to be known as the `Environmental 
        Restoration Account, Army'.
            ``(3) An account to be known as the `Environmental 
        Restoration Account, Navy'.
            ``(4) An account to be known as the `Environmental 
        Restoration Account, Air Force'.

    ``(b) Obligation of Authorized Amounts.--Funds authorized for 
deposit in an account under subsection (a) may be obligated or expended 
from the account only in order to carry out the environmental 
restoration functions of the Secretary of Defense and the Secretaries of 
the military departments under this chapter and under any other 
provision of law. Funds so authorized shall remain available until 
expended.
    ``(c) Budget <<NOTE: President.>> Reports.--In proposing the budget 
for any fiscal year pursuant to section 1105 of title 31, United States 
Code, the President shall set forth separately the amounts requested for 
environmental restoration programs of the Department of Defense and of 
each of the military departments under this chapter and under any other 
Act.

    ``(d) Credit of Amounts Recovered.--The following amounts shall be 
credited to the appropriate environmental restoration account:
            ``(1) Amounts recovered under CERCLA for response actions.
            ``(2) Any other amounts recovered from a contractor, 
        insurer, surety, or other person to reimburse the Department of 
        Defense or a military department for any expenditure for 
        environmental response activities.

    ``(e) Payments of Fines and Penalties.--None of the funds 
appropriated to the Environmental Restoration Account, Defense, for 
fiscal years 1995 through 1999, or to any environmental restoration 
account of a military department for fiscal years 1997 through 1999, may 
be used for the payment of a fine or penalty (including any supplemental 
environmental project carried out as part of such penalty) imposed 
against the Department of Defense or a military department unless the 
act or omission for which the fine or penalty is imposed arises out of 
an activity funded by the environmental restoration account concerned 
and the payment of the fine or penalty has been specifically authorized 
by law.''.
    (2) The table of sections at the beginning of chapter 160 of title 
10, United States Code, is amended by striking out the item relating to 
section 2703 and inserting in lieu thereof the following new item:

``2703. Environmental restoration accounts.''.

    (b) References.--Any <<NOTE: 10 USC 2703 note.>> reference to the 
Defense Environmental Restoration Account in any Federal law, Executive 
Order, regulation, delegation of authority, or document shall be deemed 
to refer to the appropriate environmental restoration account 
established under section 2703(a)(1) of title 10, United States Code (as 
amended by subsection (a)(1)).

[[Page 110 STAT. 2479]]

    (c) Conforming Amendment.--Section 2705(g)(1) of title 10, United 
States Code, is amended by striking out ``the Defense Environmental 
Restoration Account established'' and inserting in lieu thereof ``the 
environmental restoration account concerned''.
    (d) Treatment <<NOTE: 10 USC 2703 note.>> of Unobligated Balances.--
Any unobligated balances that remain in the Defense Environmental 
Restoration Account under section 2703(a) of title 10, United States 
Code, as of the effective date specified in subsection (e) shall be 
transferred on such date to the Environmental Restoration Account, 
Defense, established under section 2703(a)(1) of title 10, United States 
Code (as amended by subsection (a)(1)).

    (e) Effective <<NOTE: 10 USC 2703 note.>> Date.--The amendments made 
by this section shall take effect on the later of--
            (1) October 1, 1996; or
            (2) the date of the enactment of this Act.
SEC. 323. PAYMENTS OF STIPULATED PENALTIES ASSESSED UNDER CERCLA.

    (a) Authority.--The Secretary of Defense may pay the following:
            (1) Stipulated civil penalties, to the Hazardous Substance 
        Superfund established under section 9507 of the Internal Revenue 
        Code of 1986, in amounts, and using funds, as follows:
                    (A) Using funds authorized to be appropriated to the 
                Environmental Restoration Account, Army, established 
                under section 2703(a)(2) of title 10, United States Code 
                (as amended by section 322 of this Act)--
                          (i) not more than $34,000 assessed against 
                      Fort Riley, Kansas, under CERCLA; and
                          (ii) not more than $37,500 assessed against 
                      Lake City Army Ammunition Plant, Missouri, under 
                      CERCLA.
                    (B) Using funds authorized to be appropriated to the 
                Environmental Restoration Account, Navy, established 
                under section 2703(a)(3) of that title, as so amended, 
                not more than $30,000 assessed against the Naval 
                Education and Training Center, Newport, Rhode Island, 
                under CERCLA.
                    (C) Using funds authorized to be appropriated to the 
                Environmental Restoration Account, Air Force, 
                established under section 2703(a)(4) of that title, as 
                so amended--
                          (i) not more than $55,000 assessed against the 
                      Massachusetts Military Reservation, Massachusetts, 
                      under CERCLA; and
                          (ii) not more than $10,000 assessed against 
                      F.E. Warren Air Force Base, Wyoming, under CERCLA.
            (2) Using funds authorized to be appropriated to the 
        Environmental Restoration Account, Air Force, established under 
        section 2703(a)(4) of that title, as so amended, not more than 
        $500,000 to carry out one environmental restoration project, as 
        part of a negotiated agreement in lieu of stipulated penalties 
        assessed under CERCLA against the Massachusetts Military 
        Reservation, Massachusetts.

    (b) CERCLA Defined.--In this section, the term ``CERCLA'' means the 
Comprehensive Environmental Response, Compensation, and Liability Act of 
1980 (42 U.S.C. 9601 et seq.).

[[Page 110 STAT. 2480]]

SEC. 324. SHIPBOARD SOLID WASTE CONTROL.

    (a) In General.--Section 3(c) of the Act to Prevent Pollution from 
Ships (33 U.S.C. 1902(c)) is amended--
            (1) in paragraph (1), by striking out ``Not later than'' and 
        inserting in lieu thereof ``Except as provided in paragraphs (2) 
        and (3), not later than''; and
            (2) by striking out paragraphs (2), (3), and (4) and 
        inserting in lieu thereof the following:

    ``(2)(A) Subject to subparagraph (B), any ship described in 
subparagraph (C) may discharge, without regard to the special area 
requirements of Regulation 5 of Annex V to the Convention, the following 
non-plastic, non-floating garbage:
            ``(i) A slurry of seawater, paper, cardboard, or food waste 
        that is capable of passing through a screen with openings no 
        larger than 12 millimeters in diameter.
            ``(ii) Metal and glass that have been shredded and bagged so 
        as to ensure negative buoyancy.

    ``(B)(i) Garbage described in subparagraph (A)(i) may not be 
discharged within 3 nautical miles of land.
    ``(ii) Garbage described in subparagraph (A)(ii) may not be 
discharged within 12 nautical miles of land.
    ``(C) <<NOTE: Applicability.>>  This paragraph applies to any ship 
that is owned or operated by the Department of the Navy that, as 
determined by the Secretary of the Navy--
            ``(i) has unique military design, construction, manning, or 
        operating requirements; and
            ``(ii) cannot fully comply with the special area 
        requirements of Regulation 5 of Annex V to the Convention 
        because compliance is not technologically feasible or would 
        impair the operations or operational capability of the ship.

    ``(3)(A) <<NOTE: Regulations. Federal Register, publication.>>  Not 
later than December 31, 2000, the Secretary of the Navy shall prescribe 
and publish in the Federal Register standards to ensure that each ship 
described in subparagraph (B) is, to the maximum extent practicable 
without impairing the operations or operational capabilities of the 
ship, operated in a manner that is consistent with the special area 
requirements of Regulation 5 of Annex V to the Convention.

    ``(B) <<NOTE: Applicability. Effective date. Termination date.>>  
Subparagraph (A) applies to surface ships that are owned or operated by 
the Department of the Navy that the Secretary plans to decommission 
during the period beginning on January 1, 2001, and ending on December 
31, 2005.

    ``(C) <<NOTE: Federal Register, publication.>>  At the same time 
that the Secretary publishes standards under subparagraph (A), the 
Secretary shall publish in the Federal Register a list of the ships 
covered by subparagraph (B).''.

    (b) Sense of Congress.--(1) It is the sense of Congress that it 
should be an objective of the Navy to achieve full compliance with Annex 
V to the Convention as part of the Navy's development of ships that are 
environmentally sound.
    (2) In this subsection, the terms ``Convention'' and ``ship'' have 
the meanings given such terms in section 2(a) of the Act to Prevent 
Pollution from Ships (33 U.S.C. 1901(a)).
    (c) <<NOTE: 10 USC 2706 note.>>  Report on Compliance With Annex V 
to the Convention.--The Secretary of Defense shall include in each 
report on environmental compliance activities submitted to Congress 
under section 2706(b) of title 10, United States Code, the following 
information:

[[Page 110 STAT. 2481]]

            (1) A list of the ship types, if any, for which the 
        Secretary of the Navy has made the determination referred to in 
        paragraph (2)(C) of section 3(c) of the Act to Prevent Pollution 
        from Ships, as amended by subsection (a)(2) of this section.
            (2) A list of ship types which the Secretary of the Navy has 
        determined can comply with Regulation 5 of Annex V to the 
        Convention.
            (3) A summary of the progress made by the Navy in 
        implementing the requirements of paragraphs (2) and (3) of such 
        section 3(c), as so amended.
            (4) A description of any emerging technologies offering the 
        potential to achieve full compliance with Regulation 5 of Annex 
        V to the Convention.
            (5) The amount and nature of the discharges in special 
        areas, not otherwise authorized under the Act to Prevent 
        Pollution from Ships (33 U.S.C. 1901 et seq.), during the 
        preceding year from ships referred to in section 3(b)(1)(A) of 
        such Act owned or operated by the Department of the Navy.

    (d) Publication Regarding Special Area Discharges.--Subparagraph (A) 
of section 3(e)(4) of the Act to Prevent Pollution from Ships (33 U.S.C. 
1902(e)(4)) is amended to read as follows:
                    ``(A) Each year, the amount and nature of the 
                discharges in special areas, not otherwise authorized 
                under this Act, during the preceding year from ships 
                referred to in subsection (b)(1)(A) of this section 
                owned or operated by the Department of the Navy.''.
SEC. 325. AUTHORITY <<NOTE: 10 USC 2701 note.>> TO DEVELOP AND 
                        IMPLEMENT LAND USE PLANS FOR DEFENSE 
                        ENVIRONMENTAL RESTORATION PROGRAM.

    (a) Authority.--The Secretary of Defense may, to the extent possible 
and practical, develop and implement, as part of the Defense 
Environmental Restoration Program provided for in chapter 160 of title 
10, United States Code, a land use
plan for any defense site selected by the Secretary under subsection 
(b).

    (b) Selection of Sites.--The Secretary may select up to 10 defense 
sites, from among sites where the Secretary is planning or implementing 
environmental restoration activities, for which land use plans may be 
developed under this section.
    (c) Requirement To Consult With Review Committee or Advisory 
Board.--In developing a land use plan under this section, the Secretary 
shall consult with a technical review committee established pursuant to 
section 2705(c) of title 10, United States Code, a restoration advisory 
board established pursuant to section 2705(d) of such title, a local 
land use redevelopment authority, or another appropriate State agency.
    (d) 50-Year Planning Period.--A land use plan developed under this 
section shall cover a period of at least 50 years.
    (e) Implementation.--For each defense site for which the Secretary 
develops a land use plan under this section, the Secretary shall take 
into account the land use plan in selecting and implementing, in 
accordance with applicable law, environmental restoration activities at 
the site.
    (f) Deadlines.--For each defense site for which the Secretary 
intends to develop a land use plan under this section, the Secretary 
shall develop a draft land use plan by October 1, 1997, and a final land 
use plan by March 15, 1998.

[[Page 110 STAT. 2482]]

    (g) Definition of Defense Site.--For purposes of this section, the 
term ``defense site'' means (A) any building, structure, installation, 
equipment, pipe or pipeline (including any pipe into a sewer or publicly 
owned treatment works), well, pit, pond, lagoon, impoundment, ditch, 
landfill, storage container, motor vehicle, rolling stock, or aircraft 
under the jurisdiction of the Department of Defense, or (B) any site or 
area under the jurisdiction of the Department of Defense where a 
hazardous substance has been deposited, stored, disposed of, or placed, 
or otherwise come to be located; but does not include any consumer 
product in consumer use or any vessel.
    (h) Report.--In the annual report required under section 2706(a) of 
title 10, United States Code, the Secretary shall include information on 
the land use plans developed under this section and the effect such 
plans have had on environmental restoration activities at the defense 
sites where they have been implemented. The annual report submitted in 
1999 shall include recommendations on whether such land use plans should 
be developed and implemented throughout the Department of Defense.
    (i)  Savings Provisions.--(1) Nothing in this section, or in a land 
use plan developed under this section with respect to a defense site, 
shall be construed as requiring any modification to a land use plan that 
was developed before the date of the enactment of this Act.

    (2) Nothing in this section may be construed to affect statutory 
requirements for an environmental restoration or waste management 
activity or project or to modify or otherwise affect applicable 
statutory or regulatory environmental restoration and waste management 
requirements, including substantive standards intended to protect public 
health and the environment, nor shall anything in this section be 
construed to preempt or impair any local land use planning or zoning 
authority or State authority.
SEC. 326. PILOT PROGRAM TO TEST ALTERNATIVE TECHNOLOGY FOR 
                        LIMITING AIR EMISSIONS DURING SHIPYARD 
                        BLASTING AND COATING OPERATIONS.

    (a) Determination by Secretary of the Navy.--(1) The Secretary of 
the Navy shall make a determination whether the alternative technology 
described in paragraph (2) has the clear potential for significant 
benefit to the Navy. <<NOTE: Notification.>> The Secretary shall submit 
to Congress a notification in writing of the determination not later 
than 60 days after the date of the enactment of this Act.

    (2) The technology referred to in paragraph (1) is an alternative 
technology designed to capture and destroy or remove particulate 
emissions and volatile air pollutants that occur during abrasive 
blasting and coating operations at naval shipyards.
    (b) Pilot Program.--If the determination made under subsection 
(a)(1) is in the affirmative, the Secretary shall establish a pilot 
program to test the alternative technology. In conducting the test, the 
Secretary shall seek to demonstrate whether the technology is valid, 
cost effective, and in compliance with environmental laws and 
regulations.
    (c) Report.--Upon completion of the test conducted under the pilot 
program, 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 setting forth in detail the results of the 
test. The report shall include 

[[Page 110 STAT. 2483]]

recommendations on whether the alternative technology merits 
implementation at naval shipyards and such other recommendations as the 
Secretary considers appropriate.
SEC. 327. <<NOTE: 10 USC 2702 note.>>  AGREEMENTS FOR SERVICES OF 
                        OTHER AGENCIES IN SUPPORT OF ENVIRONMENTAL 
                        TECHNOLOGY CERTIFICATION.

    (a) Authority.--Subject to subsection (b), the Secretary of Defense 
may enter into a cooperative agreement with an agency of a State or 
local government to obtain assistance in certifying environmental 
technologies.
    (b) Limitations.--The Secretary of Defense may enter into a 
cooperative agreement with respect to an environmental technology under 
subsection (a) only if the Secretary determines--
            (1) that the technology has clear potential to be of 
        significant value to the Department of Defense in carrying out 
        its environmental restoration activities; and
            (2) that there is no reasonably available market in the 
        private sector for the technology without a certification by the 
        Department of Defense, the Environmental Protection Agency, or a 
        State environmental agency.

    (c) Types of Assistance.-- The types of assistance that may be 
obtained under subsection (a) include the following:
            (1) Data collection and analysis.
            (2) Technical assistance in conducting a demonstration of an 
        environmental technology, including the implementation of 
        quality assurance and quality control programs.

    (d) Report.--In the annual report required under section 2706(a) of 
title 10, United States Code, the Secretary of Defense shall include the 
following information with respect to cooperative agreements entered 
into under this section:
            (1) The number of such agreements.
            (2) The number of States in which such agreements have been 
        entered into.
            (3) A description of the nature of the technology involved 
        in each such agreement.
            (4) The amount of funds obligated or expended by the 
        Department of Defense for each such agreement during the year 
        covered by the report.

    (e) Termination of Authority.--The authority provided under 
subsection (a) shall terminate five years after the date of the 
enactment of this Act.
SEC. 328. REPEAL OF REDUNDANT NOTIFICATION AND CONSULTATION 
                        REQUIREMENTS REGARDING REMEDIAL 
                        INVESTIGATIONS AND FEASIBILITY STUDIES AT 
                        CERTAIN INSTALLATIONS TO BE CLOSED UNDER 
                        THE BASE CLOSURE LAWS.

    Section 334 of the National Defense Authorization Act for Fiscal 
Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1340; 10 U.S.C. 2687 
note) is repealed.
SEC. 329. AUTHORITY FOR AGREEMENTS WITH INDIAN TRIBES FOR SERVICES 
                        UNDER ENVIRONMENTAL RESTORATION PROGRAM.

    Section 2701(d) of title 10, United States Code, is amended--
            (1) in the first sentence of paragraph (1), by striking out 
        ``, or with any State or local government agency,'' and 
        inserting

[[Page 110 STAT. 2484]]

        in lieu thereof ``, with any State or local government agency, 
        or with any Indian tribe,''; and
            (2) by adding at the end the following:
            ``(3) Definition.--In this subsection, the term `Indian 
        tribe' has the meaning given such term in section 101(36) of the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (42 U.S.C. 9601(36)).''.
SEC. 330. AUTHORITY TO WITHHOLD LISTING OF FEDERAL FACILITIES ON 
                        NATIONAL PRIORITIES LIST.

    Section 120(d) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9620(d)) is amended--
            (1) by redesignating paragraphs (1) and (2) as subparagraphs 
        (A) and (B), respectively;
            (2) by striking out ``Not later than 18 months after the 
        enactment of the Superfund Amendments and Reauthorization Act of 
        1986, the Administrator'' and inserting in lieu thereof the 
        following:
            ``(1) In general.--The Administrator'';
            (3) by moving the remainder of the text of paragraph (1), as 
        designated by paragraph (2) of this section (including 
        subparagraphs (A) and (B), as redesignated by paragraph (1) of 
        this section) 2 ems to the right; and
            (4) by striking out ``Such criteria'' and all that follows 
        through the end of the subsection and inserting in lieu thereof 
        the following:
            ``(2) Application of criteria.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                criteria referred to in paragraph (1) shall be applied 
                in the same manner as the criteria are applied to 
                facilities that are owned or operated by persons other 
                than the United States.
                    ``(B) Response under other law.--It shall be an 
                appropriate factor to be taken into consideration for 
                the purposes of section 105(a)(8)(A) that the head of 
                the department, agency, or instrumentality that owns or 
                operates a facility has arranged with the Administrator 
                or appropriate State authorities to respond 
                appropriately, under authority of a law other than this 
                Act, to a release or threatened release of a hazardous 
                substance.
            ``(3) Completion.--Evaluation and listing under this 
        subsection shall be completed in accordance with a reasonable 
        schedule established by the Administrator.''.
SEC. 331. CLARIFICATION OF MEANING OF UNCONTAMINATED PROPERTY FOR 
                        PURPOSES OF TRANSFER BY THE UNITED STATES.

    Section 120(h)(4)(A) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9620(h)(4)(A)) is 
amended in the first sentence by striking out ``stored for one year or 
more, known to have been released,'' and inserting in lieu thereof 
``known to have been released''.

SEC. 332. CONSERVATION AND CULTURAL ACTIVITIES.

    (a) In General.--(1) Chapter 159 of title 10, United States Code, is 
amended by adding at the end the following new section:

[[Page 110 STAT. 2485]]

``Sec. 2694. Conservation and cultural activities

    ``(a) Establishment.--The Secretary of Defense may establish and 
carry out a program to conduct and manage in a coordinated manner the 
conservation and cultural activities described in subsection (b).
    ``(b) Activities.--(1) A conservation or cultural activity eligible 
for the program that the Secretary establishes under subsection (a) is 
any activity--
            ``(A) that has regional or Department of Defense-wide 
        significance and that involves more than one military 
        department;
            ``(B) that is necessary to meet legal requirements or to 
        support military operations;
            ``(C) that can be more effectively managed at the Department 
        of Defense level; and
            ``(D) for which no executive ageny has been designated 
        responsible by the Secretary.

    ``(2) Such activities include the following:
            ``(A) The development of ecosystem-wide land management 
        plans.
            ``(B) The conduct of wildlife studies to ensure the safety 
        of military operations.
            ``(C) The identification and return of Native American human 
        remains and cultural items in the possession or control of the 
        Department of Defense, or discovered on land under the 
        jurisdiction of the Department, to the appropriate Native 
        American tribes.
            ``(D) The control of invasive species that may hinder 
        military activities or degrade military training ranges.
            ``(E) The establishment of a regional curation system for 
        artifacts found on military installations.

    ``(c) Cooperative Agreements.--The Secretary may negotiate and enter 
into cooperative agreements with public and private agencies, 
organizations, institutions, individuals, or other entities to carry out 
the program established under subsection (a).
    ``(d) Effect on Other Laws.--Nothing in this section shall be 
construed or interpreted as preempting any otherwise applicable Federal, 
State, or local law or regulation relating to the management of natural 
and cultural resources on military installations.''.

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

``2694. Conservation and cultural activities.''.

    (b) <<NOTE: 10 USC 2694 note.>>  Effective Date.--Section 2694 of 
title 10, United States Code, as added by subsection (a), shall take 
effect on October 1, 1996.
SEC. 333. <<NOTE: Water. 33 USC 2406 note.>>  NAVY PROGRAM TO 
                        MONITOR ECOLOGICAL EFFECTS OF ORGANOTIN.

    (a) Monitoring Requirement.--The Secretary of the Navy shall, in 
consultation with the Administrator of the Environmental Protection 
Agency, develop and implement a program to monitor the concentrations of 
organotin in the water column, sediments, and aquatic organisms of 
representative estuaries and near-coastal waters in the United States, 
as described in section 7(a) of the Organotin Antifouling Paint Control 
Act of 1988 (33 U.S.C. 2406(a)). The program shall be designed to 
produce high-quality data to

[[Page 110 STAT. 2486]]

enable the Environmental Protection Agency to develop water quality 
criteria concerning organotin compounds.
    (b) Funding.--The Administrator of the Environmental Protection 
Agency shall provide, in advance, such sums as are necessary to the 
Secretary of the Navy for the costs of developing and implementing the 
program under subsection (a).
    (c) Written Agreement.--The Secretary of the Navy and the 
Administrator of the Environmental Protection Agency shall enter into a 
written agreement setting forth the actions that the Secretary plans to 
take under subsection (a) and the funding that the Administrator agrees 
to provide under subsection (b). <<NOTE: Notification.>>  If the 
Secretary determines that the Administrator will not enter into such an 
agreement, the Secretary shall notify the Committee on National Security 
of the House of Representatives and the Committee on Armed Services of 
the Senate not later than 30 days after such determination.

    (d) Nonimpairment of Mission.--Compliance with subsection (a) shall 
be conducted in such a manner so as not to impair the ability of the 
Department of the Navy to meet its operational requirements.
    (e) Report.--Not later than June 1, 1997, the Secretary of the Navy 
shall submit to Congress a report containing the following:
            (1) A description of the monitoring program developed 
        pursuant to subsection (a).
            (2) An analysis of the results of the monitoring program as 
        of the date of the submission of the report.
            (3) Information about the progress of Navy programs, 
        referred to in section 7(c) of the Organotin Antifouling Paint 
        Control Act of 1988 (33 U.S.C. 2406(c)), for evaluating the 
        laboratory toxicity and environmental risks associated with the 
        use of antifouling paints containing organotin.
            (4) An assessment, developed in consultation with the 
        Administrator of the Environmental Protection Agency, of the 
        effectiveness of existing laws and rules concerning organotin 
        compounds in ensuring protection of human health and the 
        environment.

    (f) Sense of Congress.--(1) It is the sense of Congress that the 
Administrator of the Environmental Protection Agency, in consultation 
with the Secretary of the Navy, should develop, for purposes of the 
national pollutant discharge elimination system, a model permit for the 
discharge of organotin compounds at shipbuilding and ship repair 
facilities.
    (2) For purposes of this subsection, the term ``organotin'' has the 
meaning provided in section 3 of the Organotin Antifouling Paint Control 
Act of 1988 (33 U.S.C. 2402).
    (g) Termination.--The program required by subsection (a) shall 
terminate five years after the date of the enactment of this Act.
SEC. 334. AUTHORITY TO TRANSFER CONTAMINATED FEDERAL PROPERTY 
                        BEFORE COMPLETION OF REQUIRED RESPONSE 
                        ACTIONS.

    (a) In General.--Section 120(h)(3) of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 (42 
U.S.C. 9620(h)(3)) is amended--
            (1) by redesignating subparagraph (A) as clause (i) and 
        clauses (i), (ii), and (iii) of that subparagraph as subclauses 
        (I), (II), and (III), respectively;

[[Page 110 STAT. 2487]]

            (2) by striking out ``After the last day'' and inserting in 
        lieu thereof the following:
                    ``(A) In general.--After the last day'';
            (3) by redesignating subparagraph (B) as clause (ii) and 
        clauses (i) and (ii) of that subparagraph as subclauses (I) and 
        (II), respectively;
            (4) by redesignating subparagraph (C) as clause (iii);
            (5) by moving the remainder of the text of subparagraph (A), 
        as designated by paragraph (2) of this subsection (including the 
        clauses and subclauses redesignated
by paragraphs (1), (3), and (4) of this subsection) 2 ems to the right;
            (6) by striking ``For purposes of subparagraph (B)(i)'' and 
        inserting the following:
                    ``(B) Covenant requirements.--For purposes of 
                subparagraphs (A)(ii)(I) and (C)(iii)'';
            (7) in subparagraph (B), as designated by paragraph (5), by 
        striking ``subparagraph (B)'' each place it appears and 
        inserting ``subparagraph (A)(ii)''; and
            (8) by adding at the end the following:
                    ``(C) Deferral.--
                          ``(i) In general.--The Administrator, with the 
                      concurrence of the Governor of the State in which 
                      the facility is located (in the case of real 
                      property at a Federal facility that is listed on 
                      the National Priorities List), or the Governor of 
                      the State in which the facility is located (in the 
                      case of real property at a Federal facility not 
                      listed on the National Priorities List) may defer 
                      the requirement of subparagraph (A)(ii)(I) with 
                      respect to the property if the Administrator or 
                      the Governor, as the case may be, determines that 
                      the property is suitable for transfer, based on a 
                      finding that--
                                    ``(I) the property is suitable for 
                                transfer for the use intended by the 
                                transferee, and the intended use is 
                                consistent with protection of human 
                                health and the environment;
                                    ``(II) the deed or other agreement 
                                proposed to govern the transfer between 
                                the United States and the transferee of 
                                the property contains the assurances set 
                                forth in clause (ii);
                                    ``(III) the Federal agency 
                                requesting deferral has provided notice, 
                                by publication in a newspaper of general 
                                circulation in the vicinity of the 
                                property, of the proposed transfer and 
                                of the opportunity for the public to 
                                submit, within a period of not less than 
                                30 days after the date of the notice, 
                                written comments on the suitability of 
                                the property for transfer; and
                                    ``(IV) the deferral and the transfer 
                                of the property will not substantially 
                                delay any necessary response action at 
                                the property. 
                          ``(ii) Response action assurances.--With 
                      regard to a release or threatened release of a 
                      hazardous substance for which a Federal agency is 
                      potentially responsible under this section, the 
                      deed or other agreement proposed to govern the 
                      transfer shall contain assurances that--

[[Page 110 STAT. 2488]]

                                    ``(I) provide for any necessary 
                                restrictions on the use of the property 
                                to ensure the protection of human health 
                                and the environment;
                                    ``(II) provide that there will be 
                                restrictions on use necessary to ensure 
                                that required remedial investigations, 
                                response action, and oversight 
                                activities will not be disrupted;
                                    ``(III) provide that all necessary 
                                response action will be taken and 
                                identify the schedules for investigation 
                                and completion of all necessary response 
                                action as approved by the appropriate 
                                regulatory agency; and
                                    ``(IV) provide that the Federal 
                                agency responsible for the property 
                                subject to transfer will submit a budget 
                                request to the Director of the Office of 
                                Management and Budget that adequately 
                                addresses schedules for investigation 
                                and completion of all necessary response 
                                action, subject to congressional 
                                authorizations and appropriations.
                          ``(iii) Warranty.--When all response action 
                      necessary to protect human health and the 
                      environment with respect to any substance 
                      remaining on the property on the date of transfer 
                      has been taken, the United States shall execute 
                      and deliver to the transferee an appropriate 
                      document containing a warranty that all such 
                      response action has been taken, and the making of 
                      the warranty shall be considered to satisfy the 
                      requirement of subparagraph (A)(ii)(I).
                          ``(iv) Federal responsibility.--A deferral 
                      under this subparagraph shall not increase, 
                      diminish, or affect in any manner any rights or 
                      obligations of a Federal agency (including any 
                      rights or obligations under sections 106, 107, and 
                      120 existing prior to transfer) with respect to a 
                      property transferred under this subparagraph.''.

    (b) Continued Application of State Law.--The first sentence of 
section 120(a)(4) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9620(a)(4)) is 
amended by inserting ``or facilities that are the subject of a deferral 
under subsection (h)(3)(C)'' after ``United States''.

   Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 341. CONTRACTS WITH OTHER AGENCIES TO PROVIDE OR OBTAIN GOODS 
                        AND SERVICES TO PROMOTE EFFICIENT 
                        OPERATION AND MANAGEMENT OF EXCHANGES AND 
                        MORALE, WELFARE, AND RECREATION 
                        ACTIVITIES.

    (a) Contracts To Promote Efficient Operation and Management.--(1) 
Chapter 147 of title 10, United States Code, is amended by inserting 
after section 2482 the following new section:

[[Page 110 STAT. 2489]]

``Sec. 2482a. Nonappropriated fund instrumentalities: contracts 
                      with other agencies and instrumentalities to 
                      provide and obtain goods and services

    ``An agency or instrumentality of the Department of Defense that 
supports the operation of the exchange system, or the operation of a 
morale, welfare, and recreation system, of the Department of Defense may 
enter into a contract or other
agreement with another element of the Department of Defense or with 
another Federal department, agency, or instrumentality to provide or 
obtain goods and services beneficial to the efficient management and 
operation of the exchange system or that morale, welfare, and recreation 
system.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2482 the 
following new item:

``2482a. Nonappropriated fund instrumentalities: contracts with other 
            agencies and instrumentalities to provide and obtain goods 
            and services.''.

    (b) Conforming Amendment Regarding Commissary System.--Section 
2482(b)(1) of such title is amended by striking out ``another 
department'' and all that follows through ``provide services'' and 
inserting in lieu thereof ``another element of the Department of Defense 
or with another Federal department, agency, or instrumentality to 
provide or obtain services''.
SEC. 342. NONCOMPETITIVE PROCUREMENT OF BRAND-NAME COMMERCIAL 
                        ITEMS FOR RESALE IN COMMISSARY STORES.

    (a) Clarification of Exception to Competitive Procurement.--Section 
2486 of title 10, United States Code, is amended by adding at the end 
the following new subsection:
    ``(e) The Secretary of Defense may not use the exception provided in 
section 2304(c)(5) of this title regarding the procurement of a brand-
name commercial item for resale in commissary stores unless the 
commercial item is regularly sold outside of commissary stores under the 
same brand name as the name by which the commercial item will be sold in 
commissary stores.''.
    (b) <<NOTE: 10 USC 2486 note.>>  Effect on Existing Contracts or 
Other Agreements.--Section 2486(e) of title 10, United States Code, as 
added by subsection (a), shall not affect the terms, conditions, or 
duration of any contract or other agreement entered into by the 
Secretary of Defense before the date of the enactment of this Act for 
the procurement of commercial items for resale in commissary stores.
SEC. 343. PROHIBITION OF SALE OR RENTAL OF SEXUALLY EXPLICIT 
                        MATERIAL.

    (a) In General.--(1) Chapter 147 of title 10, United States Code, is 
amended by inserting after section 2489 the following new section:
``Sec. 2489a. Sale or rental of sexually explicit material pro- 
                    hibited

    ``(a) Prohibition of Sale or Rental.--The Secretary of Defense may 
not permit the sale or rental of sexually explicit material on property 
under the jurisdiction of the Department of Defense.

[[Page 110 STAT. 2490]]

    ``(b) Prohibition of Officially Provided Sexually Explicit 
Material.--A member of the armed forces or a civilian officer or 
employee of the Department of Defense acting in an official capacity may 
not provide for sale, remuneration, or rental sexually explicit material 
to another person.
    ``(c) Regulations.--The Secretary of Defense shall prescribe 
regulations to implement this section.
    ``(d) Definitions.--In this section:
            ``(1) The term `sexually explicit material' means an audio 
        recording, a film or video recording, or a periodical with 
        visual depictions, produced in any medium, the dominant theme of 
        which depicts or describes nudity, including sexual or excretory 
        activities or organs, in a lascivious way.
            ``(2) The term `property under the jurisdiction of the 
        Department of Defense' includes commissaries, all facilities 
        operated by the Army and Air Force Exchange Service, the Navy 
        Exchange Service Command, the Navy Resale and Services Support 
        Office, Marine Corps exchanges, and ships' stores.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2489 the 
following new item:

``2489a. Sale or rental of sexually explicit material prohibited.''.

    (b) <<NOTE: 10 USC 2489a note.>>  Effective Date.--Subsection (a) of 
section 2489a of title 10, United States Code, as added by subsection 
(a) of this section, shall take effect 90 days after the date of the 
enactment of this Act.

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

SEC. 351. EXTENSION OF REQUIREMENT FOR COMPETITIVE PROCUREMENT OF 
                        PRINTING AND DUPLICATION SERVICES.

    (a) Extension.--Section 351(a) of the National Defense Authorization 
Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 266) is amended 
by striking out ``fiscal year 1996'' and inserting in lieu thereof 
``fiscal years 1996 and 1997''.
    (b) Reporting Requirements.--Such section is further amended by 
adding at the end the following new subsection:
    ``(c) Reporting Requirements.--(1) Not later than 90 days after the 
end of each fiscal year in which the requirement of subsection (a) 
applies, the Secretary of Defense shall submit to Congress a report--
            ``(A) describing the extent of the compliance of the 
        Secretary with the requirement during that fiscal year;
            ``(B) specifying the total volume of printing and 
        duplication services procured by the Department of Defense 
        during that fiscal year--
                    ``(i) from sources within the Department of Defense;
                    ``(ii) from private-sector sources; and
                    ``(iii) from other sources in the Federal Govern- 
                ment; and
            ``(C) specifying the total volume of printed and duplicated 
        material during that fiscal year covered by the exception in 
        subsection (b).

[[Page 110 STAT. 2491]]

    ``(2) The report required for fiscal year 1996 shall also include 
the plans of the Secretary for further implementation of the requirement 
of subsection (a) during fiscal year 1997.''.
SEC. 352. REPORTING REQUIREMENTS UNDER DEMONSTRATION PROJECT FOR 
                        PURCHASE OF FIRE, SECURITY, POLICE, PUBLIC 
                        WORKS, AND UTILITY SERVICES FROM LOCAL 
                        GOVERNMENT AGENCIES.

    Section 816(b) of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2820) is amended by striking 
out ``, 1996'' and inserting in lieu thereof ``of each of the years 1997 
and 1998''.

                        Subtitle F--Other Matters

SEC. 361. AUTHORITY FOR USE OF APPROPRIATED FUNDS FOR RECRUITING 
                        FUNCTIONS.

    (a) Authority.--Chapter 31 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 520c. Recruiting functions: use of funds

    ``(a) <<NOTE: Regulations.>>  Provision of Meals and Refreshments.--
Under regulations prescribed by the Secretary concerned, funds 
appropriated to the Department of Defense for recruitment of military 
personnel may be expended for small meals and refreshments during 
recruiting functions for the following persons:
            ``(1) Persons who have enlisted under the Delayed Entry 
        Program authorized by section 513 of this title.
            ``(2) Persons who are objects of armed forces recruiting 
        efforts.
            ``(3) Persons whose assistance in recruiting efforts of the 
        military departments is determined to be influential by the 
        Secretary concerned.
            ``(4) Members of the armed forces and Federal employees when 
        attending recruiting events in accordance with a requirement to 
        do so.
            ``(5) Other persons whose presence at recruiting efforts 
        will contribute to recruiting efforts.

    ``(b) Annual Report.--Not later than February 1 of each of the years 
1998 through 2002, the Secretary of Defense shall submit to Congress a 
report on the extent to which the authority under subsection (a) was 
exercised during the fiscal year ending in the preceding year.
    ``(c) Termination of Authority.--The authority in subsection (a) may 
not be exercised after September 30, 2001.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``520c. Recruiting functions: use of funds.''.

SEC. 362. TRAINING OF MEMBERS OF THE UNIFORMED SERVICES AT NON-
                        GOVERNMENT FACILITIES.

    (a) Authority to Enter Into Agreements for Training at Non-
Government Facilities.--(1) Chapter 101 of title 10, United States Code, 
is amended by adding at the end the following new section:

[[Page 110 STAT. 2492]]

``Sec. 2013. Training at non-Government facilities

    ``(a) Authority To Enter Into Agreements.--(1) The Secretary 
concerned, without regard to section 3709 of the Revised Statutes (41 
U.S.C. 5), may make agreements or other arrangements for the training of 
members of the uniformed services under the jurisdiction of that 
Secretary by, in, or through non-Government facilities.
    ``(2) In this section, the term `non-Government facility' means any 
of the following:
            ``(A) The government of a State or of a territory or 
        possession of the United States, including the Commonwealth of 
        Puerto Rico, an interstate governmental organization, and a 
        unit, subdivision, or instrumentality of any of the foregoing.
            ``(B) A foreign government or international organization, or 
        instrumentality of either, which is designated by the President 
        as eligible to provide training under this section.
            ``(C) A medical, scientific, technical, educational, 
        research, or professional institution, foundation, or 
        organization.
            ``(D) A business, commercial, or industrial firm, 
        corporation, partnership, proprietorship, or other organization.
            ``(E) Individuals other than civilian or military personnel 
        of the Government.
            ``(F) The services and property of any of the foregoing 
        providing the training.

    ``(b) Expenses.--The Secretary concerned, from appropriations or 
other funds available to the Secretary, may--
            ``(1) pay all or a part of the pay of a member of a 
        uniformed service who is selected and assigned for training 
        under this section, for the period of training; and
            ``(2) pay, or reimburse the member of a uniformed service 
        for, all or a part of the necessary expenses of the training 
        (without regard to subsections (a) and (b) of section 3324 of 
        title 31), including among those expenses the necessary costs of 
        the following:
                    ``(A) Travel and per diem instead of subsistence 
                under sections 404 and 405 of title 37 and the Joint 
                Travel Regulations for the Uniformed Services.
                    ``(B) Transportation of immediate family, household 
                goods and personal effects, packing, crating, 
                temporarily storing, draying, and unpacking under 
                sections 406 and 409 of title 37 and the Joint Travel 
                Regulations for the Uniformed Services when the 
                estimated costs of transportation and related services 
                are less than the estimated aggregate per diem payments 
                for the period of training.
                    ``(C) Tuition and matriculation fees.
                    ``(D) Library and laboratory services.
                    ``(E) Purchase or rental of books, materials, and 
                supplies.
                    ``(F) Other services or facilities directly related 
                to the training of the member.

    ``(c) Certain Expenses Excluded.--The expenses of training do not 
include membership fees except to the extent that the fee is a necessary 
cost directly related to the training itself or that payment of the fee 
is a condition precedent to undergoing the training.''.

[[Page 110 STAT. 2493]]

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

``2013. Training at non-Government facilities.''.

  (b) <<NOTE: 10 USC 2013 note.>>  Effective Date.--Section 2013 of 
title 10, United States Code, as added by subsection (a), shall take 
effect on October 1, 1996.
SEC. 363. <<NOTE: 10 USC 2216a note.>>  REQUIREMENT FOR 
                        PREPARATION OF PLAN FOR IMPROVED OPERATION 
                        OF WORKING-CAPITAL FUNDS AND EFFECT OF 
                        FAILURE TO PRODUCE AN APPROVED PLAN.

    (a) Plan for Improved Operation of Working-Capital Funds.--Not later 
than September 30, 1997, the Secretary of Defense shall submit to 
Congress a plan to improve the management and performance of the 
industrial, commercial, and support type activities of the military 
departments or the Defense Agencies that are currently managed through 
the Defense Business Operations Fund.
    (b) Elements of Plan.--The plan required by subsection (a) shall 
address the following issues:
            (1) The ability of each military department or Defense 
        Agency to set working capital requirements and set charges at 
        its own industrial and supply activities.
            (2) The desirability of separate business accounts for the 
        management of both industrial and supply activities for each 
        military department or Defense Agency.
            (3) Liability for operation losses at industrial and supply 
        activities.
            (4) Reimbursement to the Department of Defense by each 
        military department or Defense Agency of its fair share of the 
        costs of legitimate common business support services (such as 
        accounting and financial services and central logistics 
        services) provided by the Department of Defense.
            (5) The role of the Department of Defense in setting charges 
        or imposing surcharges for activities managed by the business 
        accounts of a military department or Defense Agency (except for 
        the common business support cost described in paragraph (4)), 
        and what such charges should properly reflect.
            (6) The appropriate use of operating profits arising from 
        the operations of the industrial and supply activities of a 
        military department or Defense Agency.
            (7) The ability of a military department or Defense Agency 
        to purchase industrial and supply services from, and provide 
        such services to, other military departments or Defense 
        Agencies.
            (8) Standardization of financial management and accounting 
        practices employed by the business accounts of a military 
        department or Defense Agency.
            (9) Reporting requirements related to actual and projected 
        performance of business management account activities of a 
        military department or Defense Agency.

    (c) <<NOTE: 10 USC 2216a.>>  Effect of Failure to Submit or Approve 
of Plan.--(1) Unless, before October 1, 1999, the Secretary of Defense 
submits the plan required by subsection (a) and Congress enacts a 
provision of law described in paragraph (2) that approves of the plan as 
submitted or in an amended form, then section 2216a of title 10, United 
States Code, regarding the Defense Business Operations

[[Page 110 STAT. 2494]]

Fund (as redesignated by section 1074(a)(10) of this Act), shall be 
repealed effective as of that date.

    (2) The provision of law referred to in paragraph (1) is a provision 
of law that--
            (A) is enacted after the submission of the plan required by 
        subsection (a);
            (B) specifically refers to the plan and this section; and
            (C) specifically states that the plan required by subsection 
        (a) is approved as submitted or with such amendments as may be 
        contained in such law.

    (d) Basis for Charges for Goods And Services; Comptroller General 
Review.--(1) In the development of the proposed budget for the Defense 
Business Operations Fund for a fiscal year, the Secretary of Defense 
shall ensure that accurate and realistic pricing and quantity estimates 
are used regarding the goods and services to be provided by working-
capital funds and industrial, commercial, and support type activities 
managed through the Fund.
    (2) The Secretary of Defense shall make available to the Comptroller 
General information used to establish the charges for goods and services 
to be provided by working-capital funds and industrial, commercial, and 
support type activities managed through the Fund. The Comptroller 
General shall conduct an annual review of the adequacy of the basis for 
the charges. <<NOTE: Reports.>>  Not later than 30 days after the date 
on which the Secretary submits the annual report and proposed budget for 
the Fund under subsection (h) of section 2216a of title 10, United 
States Code, as redesignated by section 1074(a)(10) of this Act, the 
Comptroller General shall submit to Congress a report containing the 
results of the review.
SEC. 364. INCREASE IN CAPITAL ASSET THRESHOLD UNDER DEFENSE 
                        BUSINESS OPERATIONS FUND.

    Section 2216a of title 10, United States Code, as redesignated by 
section 1074(a)(10) of this Act, is amended in subsection (i)(1) by 
striking out ``$50,000'' and inserting in lieu thereof ``$100,000''.

SEC. 365. EXPANSION OF AUTHORITY TO DONATE UNUSABLE FOOD.

    (a) Authority for Donations From Defense Agencies.--Section 2485 of 
title 10, United States Code, is amended by striking out ``Secretary of 
a military department'' in subsections (a) and (b) and inserting in lieu 
thereof ``Secretary of Defense''.
    (b) Expansion of Eligible Recipients.--Such section is further 
amended--
            (1) in subsection (a), by striking out ``authorized 
        charitable nonprofit food banks'' and inserting in lieu thereof 
        ``entities specified under subsection (d)''; and
            (2) in subsection (d), by striking out ``may only be made'' 
        and all that follows and inserting in lieu thereof the
following: ``may only be made to an entity that is one of the following:
            ``(1) A charitable nonprofit food bank that is designated by 
        the Secretary of Defense or the Secretary of Health and Human 
        Services as authorized to receive such donations.
            ``(2) A State or local agency that is designated by the 
        Secretary of Defense or the Secretary of Health and Human 
        Services as authorized to receive such donations.
            ``(3) A chapter or other local unit of a recognized national 
        veterans organization that provides services to persons without 
        adequate shelter and is designated by the Secretary of Veterans 
        Affairs as authorized to receive such donations.

[[Page 110 STAT. 2495]]

            ``(4) A not-for-profit organization that provides care for 
        homeless veterans and is designated by the Secretary of Veterans 
        Affairs as authorized to receive such donations.''.

    (c) Clarification of Food That May Be Donated.--Subsection (b) of 
such section is further amended by inserting ``rations known as 
humanitarian daily rations (HDRs),'' after ``(MREs),''.
SEC. 366. ASSISTANCE TO COMMITTEES INVOLVED IN INAUGURATION OF THE 
                        PRESIDENT.

    (a) In General.--Section 2543 of title 10, United States Code, is 
amended to read as follows:
``Sec. 2543. Equipment and services: Presidential inaugural 
                    ceremonies

    ``(a) Assistance Authorized.--The Secretary of Defense may, with 
respect to the ceremonies relating to the inaugu- ration of a President, 
provide the assistance referred to in subsection (b) to--
            ``(1) the Presidential Inaugural Committee; and
            ``(2) the congressional Joint Inaugural Committee.

    ``(b) Assistance.--Assistance that may be provided under subsection 
(a) is the following:
            ``(1) Planning and carrying out activities relating to 
        security and safety.
            ``(2) Planning and carrying out ceremonial activities.
            ``(3) Loan of property.
            ``(4) Any other assistance that the Secretary considers 
        appropriate.

    ``(c) Reimbursement.--(1) The Presidential Inaugural Committee shall 
reimburse the Secretary for any costs incurred in connection with the 
provision to the committee of assistance referred to in subsection 
(b)(4).
    ``(2) Costs reimbursed under paragraph (1) shall be credited to the 
appropriations from which the costs were paid. The amount credited to an 
appropriation shall be proportionate to the amount of the costs charged 
to that appropriation.
    ``(d) Loaned Property.--With respect to property loaned for a 
presidential inauguration under subsection (b)(3), the Presidential 
Inaugural Committee shall--
            ``(1) return that property within nine days after the date 
        of the ceremony inaugurating the President;
            ``(2) give good and sufficient bond for the return in good 
        order and condition of that property;
            ``(3) indemnify the United States for any loss of, or damage 
        to, that property; and
            ``(4) defray any expense incurred for the delivery, return, 
        rehabilitation, replacement, or operation of that property.

    ``(e) Definitions.--In this section:
            ``(1) The term `Presidential Inaugural Committee' means the 
        committee referred to in subsection (b)(2) of the first section 
        of the Presidential Inaugural Ceremonies Act (36 U.S.C. 721) 
        that is appointed with respect to the inauguration of a 
        President-elect and Vice President-elect.
            ``(2) The term `congressional Joint Inaugural Committee' 
        means the joint committee of the Senate and House of 
        Representatives referred to in the proviso in section 9 of the 
        Presidential Inaugural Ceremonies Act (36 U.S.C. 729) that is

[[Page 110 STAT. 2496]]

        appointed with respect to the inauguration of a President-elect 
        and Vice President-elect.''.

    (b) Clerical Amendment.--The item relating to section 2543 in the 
table of sections at the beginning of chapter 152 of such title is 
amended to read as follows:

``2543. Equipment and services: Presidential inaugural ceremonies.''.

SEC. 367. DEPARTMENT OF DEFENSE SUPPORT FOR SPORTING EVENTS.

    (a) Authority To Provide Support.--Subchapter II of chapter 152 of 
title 10, United States Code, is amended by adding at the end the 
following new section:

``Sec. 2554. Provision of support for certain sporting events

    ``(a) Security and Safety Assistance.--At the request of a Federal, 
State, or local government agency responsible for providing law 
enforcement services, security services, or safety services, the 
Secretary of Defense may authorize the commander of a military 
installation or other facility of the Department of Defense or the 
commander of a specified or unified combatant command to provide 
assistance for the World Cup Soccer Games, the Goodwill Games, the 
Olympics, and any other civilian sporting event in support of essential 
security and safety at such event, but only if the Attorney General 
certifies that such assistance is necessary to meet essential security 
and safety needs.
    ``(b) Other Assistance.--The Secretary of Defense may authorize a 
commander referred to in subsection (a) to provide assistance for a 
sporting event referred to in that subsection in support of other needs 
relating to such event, but only--
            ``(1) to the extent that such needs cannot reasonably be met 
        by a source other than the Department;
            ``(2) to the extent that the provision of such assistance 
        does not adversely affect the military preparedness of the armed 
        forces; and
            ``(3) if the organization requesting such assistance agrees 
        to reimburse the Department for amounts expended by the 
        Department in providing the assistance in accordance with the 
        provisions of section 377 of this title and other applicable 
        provisions of law.

    ``(c) Inapplicability to Certain Events.--Subsections (a) and (b) do 
not apply to the following sporting events:
            ``(1) Sporting events for which funds have been appropriated 
        before the date of the enactment of this Act.
            ``(2) The Special Olympics.
            ``(3) The Paralympics.

    ``(d) Terms and Conditions.--The Secretary of Defense may require 
such terms and conditions in connection with the provision of assistance 
under this section as the Secretary considers necessary and appropriate 
to protect the interests of the United States.
    ``(e) Report on Assistance.--Not later than January 30 of each year 
following a year in which the Secretary of Defense provides assistance 
under this section, the Secretary shall submit to Congress a report on 
the assistance provided. The report shall set forth--
            ``(1) a description of the assistance provided;
            ``(2) the amount expended by the Department in providing the 
        assistance;

[[Page 110 STAT. 2497]]

            ``(3) if the assistance was provided under subsection (a), 
        the certification of the Attorney General with respect to the 
        assistance under that subsection; and
            ``(4) if the assistance was provided under subsection (b)--
                    ``(A) an explanation why the assistance could not 
                reasonably be met by a source other than the Department; 
                and
                    ``(B) the amount the Department was reimbursed under 
                that subsection.

    ``(f) Relationship to Other Laws.--Assistance provided under this 
section shall be subject to the provisions of sections 375 and 376 of 
this title.''.

    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by adding at the end the following new item:

``2554. Provision of support for certain sporting events.''.

SEC. 368. STORAGE OF MOTOR VEHICLE IN LIEU OF TRANSPORTATION.

    (a) Storage Authorized.--(1) Section 2634 of title 10, United States 
Code, is amended--
            (A) by redesignating subsection (b) as subsection (g);
            (B) by transferring subsection (g), as so redesignated, to 
        the end of such section; and
            (C) by inserting after subsection (a) the following new 
        subsection:

    ``(b)(1) In lieu of transportation authorized by this section, if a 
member is ordered to make a change of permanent station to a foreign 
country and the laws, regulations, or other restrictions imposed by the 
foreign country or the United States preclude entry of a motor vehicle 
described in subsection (a) into that country, or would require 
extensive modification of the vehicle as a condition to entry, the 
member may elect to have the vehicle stored at the expense of the United 
States at a location approved by the Secretary concerned.
    ``(2) If a member is transferred or assigned in connection with a 
contingency operation to duty at a location other than the permanent 
station of the member for a period of more than 30 consecutive days, but 
the transfer or assignment is not considered a change of permanent 
station, the member may elect to have a motor vehicle described in 
subsection (a) stored at the expense of the United States at a location 
approved by the Secretary concerned.
    ``(3) Authorized expenses under this subsection include costs 
associated with the delivery of the motor vehicle for storage and 
removal of the vehicle for delivery to a destination approved by the 
Secretary concerned.''.
    (2)(A) The heading of such section is amended to read as follows:

[[Page 110 STAT. 2498]]

``Sec. 2634. Motor vehicles: transportation or storage for members 
                    on change of permanent station or extended 
                    deployment''.

    (B) The item relating to such section in the table of sections at 
the beginning of chapter 157 of title 10, United States Code, is amended 
to read as follows:

``2634. Motor vehicles: transportation or storage for members on change 
           of permanent station or extended deployment.''.

    (b) Conforming Amendment.--Subparagraph (B) of section 406(h)(1) of 
title 37, United States Code, is amended to read as follows:
            ``(B) in the case of a member described in paragraph (2)(A), 
        authorize the transportation of one motor vehicle, which is 
        owned or leased by the member (or a dependent of the member) and 
        is for the personal use of a dependent of the member, to that 
        location by means of transportation authorized under section 
        2634 of title 10 or authorize the storage of the motor vehicle 
        pursuant to subsection (b) of such section.''.

    (c) <<NOTE: 10 USC 2634 note.>>  Effective Date.--The amendments 
made by this section shall take effect on April 1, 1997.
SEC. 369. SECURITY PROTECTIONS AT DEPARTMENT OF DEFENSE FACILITIES 
                        IN NATIONAL CAPITAL REGION.

    (a) Expansion of Authority.--Subsection (b) of section 2674 of title 
10, United States Code, is amended by striking out ``at the Pentagon 
Reservation'' and inserting in lieu thereof ``in the National Capital 
Region''.
    (b) Clerical Amendments.--(1) The heading of such section is amended 
to read as follows:
``Sec. 2674. Operation and control of Pentagon Reservation and 
                    defense facilities in National Capital 
                    Region''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 159 of such title is amended to read as 
follows:

``2674. Operation and control of Pentagon Reservation and defense 
           facilities in National Capital Region.''.

SEC. 370. ADMINISTRATION OF MIDSHIPMEN'S STORE AND OTHER NAVAL ACADEMY 
            SUPPORT ACTIVITIES AS NONAPPROPRIATED FUND INSTRUMENTALITY.

    (a) In General.--Section 6971 of title 10, United States Code, is 
amended to read as follows:
 ``Sec. 6971. Midshipmen's store, trade shops, dairy, and laundry: 
                    nonappropriated fund instrumentality and 
                    accounts

    ``(a) Operation as Nonappropriated Fund Instrumentality.--The 
Superintendent of the Naval Academy shall operate the Naval Academy 
activities referred to in subsection (b) as a nonappropriated fund 
instrumentality under the jurisdiction of the Navy.
    ``(b) Covered Activities.--The nonappropriated fund instrumentality 
required under subsection (a) shall consist of the following Naval 
Academy activities:
            ``(1) The midshipmen's store.
            ``(2) The barber shop.

[[Page 110 STAT. 2499]]

            ``(3) The cobbler shop.
            ``(4) The tailor shop.
            ``(5) The dairy.
            ``(6) The laundry.

    ``(c) Nonappropriated Fund Accounts.--The Superintendent of the 
Naval Academy shall administer a separate nonappropriated fund account 
for each of the Naval Academy activities included in the nonappropriated 
fund instrumentality required under subsection (a).
    ``(d) Crediting of Revenue.--The Superintendent shall credit all 
revenue received from a Naval Academy activity referred to in subsection 
(b) to the account administered with respect to that activity under 
subsection (c), and amounts so credited shall be available for operating 
expenses of that activity.
    ``(e) Regulations.--This section shall be carried out under 
regulations prescribed by the Secretary of the Navy.''.
    (b) Civil Service Employment Status of Employees of Covered 
Activities.--Section 2105(b) of title 5, United States Code, is 
amended--
            (1) by inserting ``who is'' after ``An individual''; and
            (2) by inserting ``and whose employment in such a position 
        began before October 1, 1996, and has been uninterrupted in such 
        a position since that date'' after ``Academy dairy,''.

    (c) Conforming Repeal.--Section 6970 of title 10, United States 
Code, is repealed.
    (d) Clerical Amendments.--The table of sections at the beginning of 
chapter 603 of title 10, United States Code, is amended by striking out 
the items relating to sections 6970 and 6971 and inserting in lieu 
thereof the following new item:

``6971. Midshipmen's store, trade shops, dairy, and laundry: 
           nonappropriated fund instrumentality and accounts.''.

    (e) <<NOTE: 5 USC 2105 note.>>  Effective Date.--The amendments made 
by this section shall take effect on October 1, 1996.
SEC. 371. REIMBURSEMENT UNDER AGREEMENT FOR INSTRUCTION OF 
                        CIVILIAN STUDENTS AT FOREIGN LANGUAGE 
                        INSTITUTE OF THE DEFENSE LANGUAGE 
                        INSTITUTE.

    (a) Authority to Accept Reimbursement In Kind.--Section 559(a)(1) of 
the National Defense Authorization Act for Fiscal Year 1995 (Public Law 
103-337; 108 Stat. 2776; 10 U.S.C. 4411 note) is amended--
            (1) by redesignating subsections (c), (d), and (e) as 
        subsections (d), (e), and (f), respectively; and
            (2) by inserting after subsection (b) the following new 
        subsection:

    ``(c) Reimbursement Options for Certain Instruction.--In the case of 
instruction provided to students described in subsection (a)(1), the 
Secretary may provide the instruction on a cost-reimbursable basis, a 
reimbursement-in-kind basis, or a combination of both options. 
Regardless of the reimbursement option, the value of the reimbursement 
received under this subsection may not be less than the amount charged 
for providing language instruction to Federal employees who are not 
Department of Defense employees. The Secretary may not delegate the 
authority to accept an offer for in-kind reimbursement below the level 
of the Assistant Secretary of the Army.''.

[[Page 110 STAT. 2500]]

    (b) Conforming Amendments.--Such section is further amended--
            (1) in subsection (a)(1), by striking out ``cost-reimburs- 
        able,''; and
            (2) in subsection (d), as redesignated by subsection (a)(1) 
        of this section, by striking out ``subsection (a)'' the first 
        place it appears and inserting in lieu thereof ``subsection (a) 
        or (c)''.
SEC. 372. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT 
                        DEPENDENTS OF MEMBERS OF THE ARMED FORCES 
                        AND DEPARTMENT OF DEFENSE CIVILIAN 
                        EMPLOYEES.

    (a) Continuation of Department of Defense Program for Fiscal Year 
1997.--Of the amounts authorized to be appropriated in section 301(5)--
            (1) $30,000,000 shall be available for providing educational 
        agencies assistance (as defined in subsection (d)(1)) to local 
        educational agencies; and
            (2) $5,000,000 shall be available for making educational 
        agencies payments (as defined in subsection (d)(2)) to local 
        educational agencies.

    (b) Notification.--Not later than June 30, 1997, the Secretary of 
Defense shall--
            (1) notify each local educational agency that is eligible 
        for educational agencies assistance for fiscal year 1997 of that 
        agency's eligibility for such assistance and the amount of such 
        assistance for which that agency is eligible; and
            (2) notify each local educational agency that is eligible 
        for an educational agencies payment for fiscal year 1997 of that 
        agency's eligibility for such payment and the amount of the 
        payment for which that agency is eligible.

    (c) Disbursement of Funds.--The Secretary of Defense shall disburse 
funds made available under paragraphs (1) and (2) of subsection (a) not 
later than 30 days after the date on which notification to the eligible 
local educational agencies is provided pursuant to subsection (b).
    (d) Definitions.--In this section:
            (1) The term ``educational agencies assistance'' means 
        assistance authorized under section 386(b) of the National 
        Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
        484; 20 U.S.C. 7703 note).
            (2) The term ``educational agencies payments'' means 
        payments authorized under section 386(d) of the National Defense 
        Authorization Act for Fiscal Year 1993 (Public Law 102-484; 20 
        U.S.C. 7703 note).
            (3) The term ``local educational agency'' has the meaning 
        given that term in section 8013(9) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7713(9)).
SEC. 373. RENOVATION OF BUILDING FOR DEFENSE FINANCE AND 
                        ACCOUNTING SERVICE CENTER, FORT BENJAMIN 
                        HARRISON, INDIANA.

    (a) Transfer Authority.--To pay the costs of planning, design, and 
renovation of Building One, Fort Benjamin Harrison, Indiana, for use as 
a Defense Finance and Accounting Service Center, the Secretary of 
Defense may transfer to the Administrator of General Services in the 
manner provided in subsection (b) funds available

[[Page 110 STAT. 2501]]

to the Department of Defense for the Defense Finance and Accounting 
Service for a fiscal year for operation and maintenance.
    (b) Authority Subject to Authorizations and Appropriations.--To the 
extent provided in appropriations Acts--
            (1) of funds described in subsection (a) and appropriated 
        for fiscal year 1997, $9,000,000 may be transferred under such 
        subsection; and
            (2) of funds described in subsection (a) and appropriated 
        for fiscal years 1998, 1999, 2000, and 2001, funds may be 
        transferred under such subsection in such amounts as are 
        authorized to be transferred in an Act enacted after the date of 
        the enactment of this Act.

    (c) <<NOTE: Effective date.>>  Authority Subject To Agreement 
Between Department of Defense and General Services Administration.--The 
transfer authority provided in subsection (a) shall not take effect 
until the date on which the Secretary of Defense and the Administrator 
of General Services enter into an agreement that provides for the 
Department of Defense to receive a full reimbursement for the funds 
transferred under such subsection. Such reimbursement may include 
reimbursement in the form of reduced or static rental rates for Building 
One.

SEC. 374. FOOD DONATION PILOT PROGRAM AT SERVICE ACADEMIES.

    (a) Program Authorized.--The Secretaries of the military departments 
and the Secretary of Transportation may each carry out a food donation 
pilot program at the service academy under the jurisdiction of such 
Secretary.
    (b) Donations and Collections of Food and Grocery Products.--Under 
the pilot program, the Secretary concerned may donate to, and permit 
others to collect for, a nonprofit organization any food or grocery 
product that--
            (1) is--
                    (A) an apparently wholesome food;
                    (B) an apparently fit grocery product; or
                    (C) a food or grocery product that is donated in 
                accordance with section 402(e) of the National and 
                Community Service Act of 1990 (42 U.S.C. 12672(e));
            (2) is owned by the United States;
            (3) is located at a service academy under the jurisdiction 
        of such Secretary; and
            (4) is excess to the requirements of the academy.

    (c) Program Commencement.--The Secretary concerned shall commence 
carrying out the pilot program, if at all, during fiscal year 1997.
    (d) Applicability of Good Samaritan Food Donation Act.--Section 402 
of the National and Community Service Act of 1990 (42 U.S.C. 12672) 
shall apply to donations and collections of food and grocery products 
under the pilot program without regard to section 403 of such Act (42 
U.S.C. 12673).
    (e) Reports.--(1) Each Secretary that carries out a pilot program at 
a service academy under this section shall submit to Congress an interim 
report and a final report on the pilot program.
    (2) The Secretary concerned shall submit the interim report not 
later than one year after the date on which the Secretary commences the 
pilot program at a service academy.

[[Page 110 STAT. 2502]]

    (3) The Secretary concerned shall submit the final report not later 
than 90 days after the Secretary completes the pilot program at a 
service academy.
    (4) Each report shall include the following:
            (A) A description of the conduct of the pilot program.
            (B) A discussion of the experience under the pilot program.
            (C) An evaluation of the extent to which section 402 of the 
        National and Community Service Act of 1990 (42 U.S.C. 12672) has 
        been effective in protecting the United States and others from 
        liabilities associated with actions taken under the pilot 
        program.
            (D) Any recommendations for legislation to facilitate 
        donations or collections of excess food and grocery products of 
        the United States or others for nonprofit organizations.

    (f) Definitions.--For purposes of this section:
            (1) The term ``service academy'' means each of the 
        following:
                    (A) The United States Military Academy.
                    (B) The United States Naval Academy.
                    (C) The United States Air Force Academy.
                    (D) The United States Coast Guard Academy.
            (2) The term ``Secretary concerned'' means the following:
                    (A) The Secretary of the Army, with respect to the 
                United States Military Academy.
                    (B) The Secretary of the Navy, with respect to the 
                United States Naval Academy.
                    (C) The Secretary of the Air Force, with respect to 
                the United States Air Force Academy.
                    (D) The Secretary of Transportation, with respect to 
                the United States Coast Guard Academy.
            (3) The terms ``apparently fit grocery product'', 
        ``apparently wholesome food'', ``donate'', ``food'', and 
        ``grocery product'' have the meanings given those terms in 
        section 402(b) of the National and Community Service Act of 1990 
        (42 U.S.C. 12672(b)).
SEC. 375. AUTHORITY OF AIR NATIONAL GUARD TO PROVIDE CERTAIN 
                        SERVICES AT LINCOLN MUNICIPAL AIRPORT, 
                        LINCOLN, NEBRASKA.

    (a) Authority.--The Nebraska Air National Guard may provide fire 
protection services and rescue services relating to aircraft at Lincoln 
Municipal Airport, Lincoln, Nebraska, on behalf of the Lincoln Municipal 
Airport Authority, Lincoln, Nebraska.
    (b) Agreement.--The Nebraska Air National Guard may not provide 
services under subsection (a) until the Nebraska Air National Guard and 
the authority enter into an agreement under which the authority agrees--
            (1) to reimburse the Nebraska Air National Guard for the 
        cost of the services provided; and
            (2) to hold harmless and indemnify the United States, except 
        in cases of willful misconduct or gross negligence, from any 
        claim for damages or injury to any person or property arising 
        out of the provision of, or the failure to provide, such 
        services.

    (c) Effect on Military Preparedness.--Services may only be provided 
under subsection (a) to the extent that the provision of such services 
does not adversely affect the military preparedness of the Armed Forces.

[[Page 110 STAT. 2503]]

SEC. 376. TECHNICAL AMENDMENT REGARDING IMPACT AID PROGRAM.

    Paragraph (3) of section 8003(a) of the Elementary and  Secondary 
Education Act of 1965 (20 U.S.C. 7703(a)) is amended by striking out 
``2,000 and such number equals or exceeds 15'' and inserting in lieu 
thereof ``1,000 or such number equals or exceeds 10''.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Permanent end strength levels to support two major regional 
                    contingencies.
Sec. 403. Authorized strengths for commissioned officers on active duty 
                    in grades of major, lieutenant colonel, and colonel 
                    and navy grades of lieutenant commander, commander, 
                    and captain.
Sec. 404. Extension of requirement for recommendations regarding 
                    appointments to joint 4-star officer positions.
Sec. 405. Increase in authorized number of general officers on active 
                    duty in the Marine Corps.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for reserves on active duty in support of the 
                    Reserves.
Sec. 413. End strengths for military technicians.
Sec. 414. Assurance of continued assignment of military personnel to 
                    serve in Selective Service System.

               Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                        Subtitle A--Active Forces

SEC. 401. <<NOTE: 10 USC 115 note.>>  END STRENGTHS FOR ACTIVE FORCES.

    The Armed Forces are authorized strengths for active duty personnel 
as of September 30, 1997, as follows:
            (1) The Army, 495,000.
            (2) The Navy, 407,318.
            (3) The Marine Corps, 174,000.
            (4) The Air Force, 381,100.

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

    (a) Requirement To Budget for and Maintain Statutory End Strength 
Levels.--Section 691 of title 10, United States Code, is amended--
            (1) by redesignating subsections (d) and (e) as subsections 
        (e) and (f), respectively; and
            (2) by striking out subsection (c) and inserting in lieu 
        thereof the following:

    ``(c) The budget for the Department of Defense for any fiscal year 
as submitted to Congress shall include amounts for funding for each of 
the armed forces (other than the Coast Guard) at least in the amounts 
necessary to maintain the active duty end strengths prescribed in 
subsection (b), as in effect at the time that such budget is submitted.

[[Page 110 STAT. 2504]]

    ``(d) 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 (other than the Coast Guard) for any fiscal year below the 
level specified in subsection (b) unless the reduction in end strength 
for that armed force for that fiscal year is specifically authorized by 
law.''.
    (b) Temporary Flexibility Relating to Permanent End Strength 
Levels.--Subsection (e) of such section, as redesignated by subsection 
(a)(1), is amended by striking out ``not more than 0.5 percent'' and 
inserting in lieu thereof ``not more than 1 percent''.
SEC. 403. AUTHORIZED STRENGTHS FOR COMMISSIONED OFFICERS ON ACTIVE 
                        DUTY IN GRADES OF MAJOR, LIEUTENANT 
                        COLONEL, AND COLONEL AND NAVY GRADES OF 
                        LIEUTENANT COMMANDER, COMMANDER, AND 
                        CAPTAIN.

    (a) Revision in Army, Air Force, and Marine Corps Limitations.--The 
table in paragraph (1) of section 523(a) of title 10, United States 
Code, is amended to read as follows:
      

----------------------------------------------------------------------------------------------------------------
                                                                     Number of officers who may be serving on   
                                                                           active duty in the grade of:         
 ``Total number of commissioned officers (excluding officers in  -----------------------------------------------
     categories specified in subsection (b)) on active duty:                        Lieutenant                  
                                                                       Major          Colonel         Colonel   
----------------------------------------------------------------------------------------------------------------
Army:                                                                                                           
  20,000........................................................           6,848           5,253        1,613   
  25,000........................................................           7,539           5,642        1,796   
  30,000........................................................           8,231           6,030        1,980   
  35,000........................................................           8,922           6,419        2,163   
  40,000........................................................           9,614           6,807        2,347   
  45,000........................................................          10,305           7,196        2,530   
  50,000........................................................          10,997           7,584        2,713   
  55,000........................................................          11,688           7,973        2,897   
  60,000........................................................          12,380           8,361        3,080   
  65,000........................................................          13,071           8,750        3,264   
  70,000........................................................          13,763           9,138        3,447   
  75,000........................................................          14,454           9,527        3,631   
  80,000........................................................          15,146           9,915        3,814   
  85,000........................................................          15,837          10,304        3,997   
  90,000........................................................          16,529          10,692        4,181   
  95,000........................................................          17,220          11,081        4,364   
  100,000.......................................................          17,912          11,469        4,548   
  110,000.......................................................          19,295          12,246        4,915   
  120,000.......................................................          20,678          13,023        5,281   
  130,000.......................................................          22,061          13,800        5,648   
  170,000.......................................................          27,593          16,908        7,116   
Air Force:                                                                                                      
  35,000........................................................           9,216           7,090        2,125   
  40,000........................................................          10,025           7,478        2,306   
  45,000........................................................          10,835           7,866        2,487   
  50,000........................................................          11,645           8,253        2,668   
  55,000........................................................          12,454           8,641        2,849   
  60,000........................................................          13,264           9,029        3,030   
  65,000........................................................          14,073           9,417        3,211   

[[Page 110 STAT. 2505]]

                                                                                                                
  70,000........................................................          14,883           9,805        3,392   
  75,000........................................................          15,693          10,193        3,573   
  80,000........................................................          16,502          10,582        3,754   
  85,000........................................................          17,312          10,971        3,935   
  90,000........................................................          18,121          11,360        4,115   
  95,000........................................................          18,931          11,749        4,296   
  100,000.......................................................          19,741          12,138        4,477   
  105,000.......................................................          20,550          12,527        4,658   
  110,000.......................................................          21,360          12,915        4,838   
  115,000.......................................................          22,169          13,304        5,019   
  120,000.......................................................          22,979          13,692        5,200   
  125,000.......................................................          23,789          14,081        5,381   
Marine Corps:                                                                                                   
  10,000........................................................           2,525           1,480          571   
  12,500........................................................           2,900           1,600          592   
  15,000........................................................           3,275           1,720          613   
  17,500........................................................           3,650           1,840          633   
  20,000........................................................           4,025           1,960          654   
  22,500........................................................           4,400           2,080          675   
  25,000........................................................           4,775           2,200          695.''
----------------------------------------------------------------------------------------------------------------


    (b) Revision in Navy Limitations.--The table in paragraph (2) of 
such section is amended to read as follows:
      

----------------------------------------------------------------------------------------------------------------
                                                                     Number of officers who may be serving on   
                                                                             active duty in grade of:           
 ``Total number of commissioned officers (excluding officers in  -----------------------------------------------
     categories specified in subsection (b)) on active duty:        Lieutenant                                  
                                                                     commander       Commander        Captain   
----------------------------------------------------------------------------------------------------------------
Navy:                                                                                                           
  30,000........................................................           7,331           5,018        2,116   
  33,000........................................................           7,799           5,239        2,223   
  36,000........................................................           8,267           5,460        2,330   
  39,000........................................................           8,735           5,681        2,437   
  42,000........................................................           9,203           5,902        2,544   
  45,000........................................................           9,671           6,123        2,651   
  48,000........................................................          10,139           6,343        2,758   
  51,000........................................................          10,606           6,561        2,864   
  54,000........................................................          11,074           6,782        2,971   
  57,000........................................................          11,541           7,002        3,078   
  60,000........................................................          12,009           7,222        3,185   
  63,000........................................................          12,476           7,441        3,292   
  66,000........................................................          12,944           7,661        3,398   
  70,000........................................................          13,567           7,954        3,541   
  90,000........................................................          16,683           9,419        4,254.''
----------------------------------------------------------------------------------------------------------------


    (c) Repeal of Temporary Authority for Variations in End Strengths.--
The following provisions of law are repealed:

[[Page 110 STAT. 2506]]

            (1) Section 402 of the National Defense Authorization Act 
        for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1639; 10 
        U.S.C. 523 note).
            (2) Section 402 of the National Defense Authorization Act 
        for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2743; 10 
        U.S.C. 523 note).
            (3) Section 402 of the National Defense Authorization Act 
        for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 286; 10 
        U.S.C. 523 note).

    (d) <<NOTE: 10 USC 523 note.>>  Effective Date.--The amendments made 
by subsections (a), (b), and (c) shall take effect on September 1, 1997.

SEC. 404. EXTENSION OF REQUIREMENT FOR RECOMMENDATIONS REGARDING 
            APPOINTMENTS TO JOINT 4-STAR OFFICER POSITIONS.

    (a) Service Secretary Recommendation Required.--Section 604(c) of 
title 10, United States Code, is amended by striking out ``September 30, 
1997'' and inserting in lieu thereof ``September 30, 2000''.
    (b) Grade Relief When Recommendation Made.--Section 525(b)(5)(C) of 
such title is amended by striking out ``September 30, 1997'' and 
inserting in lieu thereof ``September 30, 2000''.
SEC. 405. INCREASE IN AUTHORIZED NUMBER OF GENERAL OFFICERS ON 
                        ACTIVE DUTY IN THE MARINE CORPS.

    Section 526(a)(4) of title 10, United States Code, is amended by 
striking out ``68'' and inserting in lieu thereof ``80''.

                       Subtitle B--Reserve Forces

SEC. 411. <<NOTE: 10 USC 12001 note.>>  END STRENGTHS FOR SELECTED 
            RESERVE.

    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 30, 
1997, as follows:
            (1) The Army National Guard of the United States, 366,758.
            (2) The Army Reserve, 215,179.
            (3) The Naval Reserve, 96,304.
            (4) The Marine Corps Reserve, 42,000.
            (5) The Air National Guard of the United States, 109,178.
            (6) The Air Force Reserve, 73,311.
            (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.

[[Page 110 STAT. 2507]]

Whenever such units or such individual members are released from active 
duty during any fiscal year, the end strength prescribed for such fiscal 
year for the Selected Reserve of such reserve component shall be 
proportionately increased by the total authorized strengths of such 
units and by the total number of such individual members.

SEC. 412. <<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, 1997, 
the following number of Reserves to be serving on full-time active duty 
or full-time duty, in the case of members of the National Guard, for the 
purpose of organizing, administering, recruiting, instructing, or 
training the reserve components:
            (1) The Army National Guard of the United States, 22,798.
            (2) The Army Reserve, 11,729.
            (3) The Naval Reserve, 16,603.
            (4) The Marine Corps Reserve, 2,559.
            (5) The Air National Guard of the United States, 10,403.
            (6) The Air Force Reserve, 655.

SEC. 413 <<NOTE: 10 USC 115 note.>> . END STRENGTHS FOR MILITARY 
            TECHNICIANS.

    (a) Authorization for Fiscal Year 1997.--The minimum number of 
military technicians as of the last day of fiscal year 1997 for the 
reserve components of the Army and the Air Force (notwithstanding 
section 129 of title 10, United States Code) shall be the following:
            (1) For the Army Reserve, 6,799.
            (2) For the Army National Guard of the United States, 
        25,500.
            (3) For the Air Force Reserve, 9,802.
            (4) For the Air National Guard of the United States, 23,299.

    (b) Information To Be Provided With Future Authorization Requests.--
Section 10216 of title 10, United States Code, is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b) Information Required To Be Submitted With Annual End Strength 
Authorization Request.--(1) The Secretary of Defense shall include as 
part of the budget justification documents submitted to Congress with 
the budget of the Department of Defense for any fiscal year the 
following information with respect to the end strengths for military 
technicians requested in that budget pursuant to section 115(g) of this 
title, shown separately for each of the Army and Air Force reserve 
components:
            ``(A) The number of dual-status technicians in the high 
        priority units and organizations specified in subsection (a)(1).
            ``(B) The number of technicians other than dual-status 
        technicians in the high priority units and organizations 
        specified in subsection (a)(1).
            ``(C) The number of dual-status technicians in other than 
        high priority units and organizations specified in subsection 
        (a)(1).
            ``(D) The number of technicians other than dual-status 
        technicians in other than high priority units and organizations 
        specified in subsection (a)(1).

[[Page 110 STAT. 2508]]

    ``(2)(A) If the budget submitted to Congress for any fiscal year 
requests authorization for that fiscal year under section 115(g) of this 
title of a military technician end strength for a reserve component of 
the Army or Air Force in a number that constitutes a reduction from the 
end strength minimum established by law for that reserve component for 
the fiscal year during which the budget is submitted, the Secretary of 
Defense shall submit to the congressional defense committees with that 
budget a justification providing the basis for that requested reduction 
in technician end strength.
    ``(B) Any justification submitted under subparagraph (A) shall 
clearly delineate--
            ``(i) in the case of a reduction that includes a reduction 
        in technicians described in subparagraph (A) or (C) of paragraph 
        (1), the specific force structure reductions forming the basis 
        for such requested technician reduction (and
the numbers related to those force structure reductions); and
            ``(ii) in the case of a reduction that includes reductions 
        in technicians described in subparagraphs (B) or (D) of 
        paragraph (1), the specific force structure reductions, 
        Department of Defense civilian personnel reductions, or other 
        reasons forming the basis for such requested technician 
        reduction (and the numbers related to those reductions).''.

    (c) Technical Amendments.--Such section is further amended--
            (1) in subsection (a), by striking out ``section 115'' and 
        inserting in lieu thereof ``section 115(g)''; and
            (2) in subsection (c), as redesignated by subsection (b)(1), 
        by striking out ``after the date of the enactment of this 
        section'' both places it appears and inserting in lieu thereof 
        ``after February 10, 1996,''.
SEC. 414. ASSURANCE OF CONTINUED ASSIGNMENT OF MILITARY PERSONNEL 
                        TO SERVE IN SELECTIVE SERVICE SYSTEM.

    (a) Number of Military Personnel To Be Assigned.--Section 10 of the 
Military Selective Service Act (50 U.S.C. App. 460) is amended--
            (1) in subsection (b)(2), by inserting ``, subject to 
        subsection (e),'' after ``to employ such number of civilians, 
        and''; and
            (2) by inserting after subsection (d) the following new 
        subsection:

    ``(e) The total number of armed forces personnel assigned to the 
Selective Service System under subsection (b)(2) at any time may not be 
less than the number of such personnel determined by the Director of 
Selective Service to be necessary, but not to exceed 745 persons, except 
that the President may assign additional armed forces personnel to the 
Selective Service System during a time of war or a national emergency 
declared by Congress or the President.''.
    (b) Stylistic Amendments.--Subsection (b) of such section is 
amended--
            (1) by striking out ``authorized--'' in the matter preceding 
        paragraph (1) and inserting in lieu thereof ``authorized to 
        undertake the following:'';
            (2) by striking out ``to'' at the beginning of paragraphs 
        (1) through (7) and inserting in lieu thereof ``To'';

[[Page 110 STAT. 2509]]

            (3) by striking out ``subject'' at the beginning of 
        paragraphs (8), (9), and (10) and inserting in lieu thereof 
        ``Subject''; and
            (4) by striking out the semicolon at the end of paragraphs 
        (1) through (9) and inserting in lieu thereof a period.

               Subtitle C--Authorization of Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 1997 a total of 
$70,056,130,000. The authorization in the preceding sentence supersedes 
any other authorization of appropriations (definite or indefinite) for 
such purpose for fiscal year 1997.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Grade of Chief of Naval Research.
Sec. 502. Chief and assistant chief of Army Nurse Corps and Air Force 
                    Nurse Corps.
Sec. 503. Navy spot promotion authority for certain lieutenants with 
                    critical skills.
Sec. 504. Time for award of degrees by unaccredited educational 
                    institutions for graduates to be considered 
                    educationally qualified for appointment as Reserve 
                    officers in grade O-3.
Sec. 505. Exception to baccalaureate degree requirement for appointment 
                    in the Naval Reserve in grades above O-2.
Sec. 506. Chief warrant officer promotions.
Sec. 507. Service credit for senior ROTC cadets and midshipmen in 
                    simultaneous membership program.
Sec. 508. Continuation on active status for certain Reserve officers of 
                    the Air Force.
Sec. 509. Reports on response to recommendations concerning improvements 
                    to Department of Defense joint manpower process.
Sec. 510. Frequency of reports to Congress on joint officer management 
                    policies.

                  Subtitle B--Enlisted Personnel Policy

Sec. 511. Career service reenlistments for members with at least 10 
                    years of service.
Sec. 512. Authority to extend period for entry on active duty under the 
                    delayed entry program.

                    Subtitle C--Activation and Recall

Sec. 521. Limitations on recall of retired members to active duty.
Sec. 522. Clarification of definition of active status.
Sec. 523. Limitation of requirement for physical examinations of members 
                    of National Guard called into Federal service.

                Subtitle D--Reserve Component Retirement

Sec. 531. Increase in annual limit on days of inactive duty training 
                    creditable toward reserve retirement.
Sec. 532. Retirement of reserve enlisted members who qualify for active 
                    duty retirement after administrative reduction in 
                    enlisted grade.
Sec. 533. Authority for a Reserve on active duty to waive retirement 
                    sanctuary.
Sec. 534. Eligibility of Reserves for disability retirement.

               Subtitle E--Other Reserve Component Matters

Sec. 541. Training for Reserves on active duty in support of the 
                    Reserves.
Sec. 542. Eligibility for enrollment in Ready Reserve mobilization 
                    income insurance program.
Sec. 543. Reserve credit for participation in Health Professions 
                    Scholarship and Financial Assistance Program.

[[Page 110 STAT. 2510]]

Sec. 544. Amendments to Reserve Officer Personnel Management Act 
                    provisions.
Sec. 545. Report on number of advisers in active component support of 
                    Reserves pilot program.
Sec. 546. Sense of Congress and report regarding reemployment rights for 
                    mobilized Reservists employed in foreign countries.
Sec. 547. Payment of premiums under Mobilization Income Insurance 
                    Program.

                 Subtitle F--Officer Education Programs

Sec. 551. Oversight and management of Senior Reserve Officers' Training 
                    Corps program.
Sec. 552. Prohibition on reorganization of Army ROTC cadet command or 
                    termination of senior ROTC units pending report on 
                    ROTC.
Sec. 553. Pilot program to test expansion of ROTC program to include 
                    graduate students.
Sec. 554. Demonstration project for instruction and support of Army ROTC 
                    units by members of the Army Reserve and National 
                    Guard.
Sec. 555. Extension of maximum age for appointment as a cadet or 
                    midshipman in the Senior Reserve Officers' Training 
                    Corps and the service academies.
Sec. 556. Expansion of eligibility for education benefits to include 
                    certain Reserve Officers' Training Corps (ROTC) 
                    participants.
Sec. 557. Comptroller General report on cost and policy implications of 
                    permitting up to five percent of service academy 
                    graduates to be assigned directly to Reserve duty 
                    upon graduation.

                   Subtitle G--Decorations and Awards

Sec. 561. Authority for award of Medal of Honor to certain African 
                    American soldiers who served during World War II.
Sec. 562. Waiver of time limitations for award of certain decorations to 
                    specified persons.
Sec. 563. Replacement of certain American Theater Campaign Ribbons.

                        Subtitle H--Other Matters

Sec. 571. Hate crimes in the military.
Sec. 572. Disability coverage for members granted excess leave for 
                    educational or emergency purposes.
Sec. 573. Clarification of authority of a reserve judge advocate to act 
                    as a military notary public when not in a duty 
                    status.
Sec. 574. Panel on jurisdiction of courts-martial for the National Guard 
                    when not in Federal service.
Sec. 575. Authority to expand law enforcement placement program to 
                    include firefighters.
Sec. 576. Improvements to program to assist separated military and 
                    civilian personnel to obtain employment as teachers 
                    or teachers' aides.
Sec. 577. Retirement at grade to which selected for promotion when a 
                    physical disability is found at any physical 
                    examination.
Sec. 578. Revisions to missing persons authorities.

       Subtitle I--Commissioned Corps of the Public Health Service

Sec. 581. Applicability to Public Health Service of prohibition on 
                    crediting cadet or midshipmen service at the service 
                    academies.
Sec. 582. Exception to strength limitations for Public Health Service 
                    officers assigned to the Department of Defense.
Sec. 583. Authority to provide legal assistance to Public Health Service 
                    officers.

                  Subtitle A--Officer Personnel Policy

SEC. 501. GRADE OF CHIEF OF NAVAL RESEARCH.

    (a) Rear Admiral (Upper Half).--Section 5022(a) of title 10, United 
States Code, is amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following:

    ``(2) Unless appointed to higher grade under another provision of 
law, an officer, while serving in the Office of Naval Research as Chief 
of Naval Research, has the rank of rear admiral (upper half).''.
    (b) <<NOTE: 10 USC 5022 note.>>  Effective Date.--Paragraph (2) of 
section 5022(a) of title 10, United States Code, as added by subsection 
(a), shall take

[[Page 110 STAT. 2511]]

effect upon the occurrence of the first vacancy in the position of Chief 
of Naval Research after the date of the enactment of this Act.
Sec. 502. CHIEF AND ASSISTANT CHIEF OF ARMY NURSE CORPS AND AIR 
                        FORCE NURSE CORPS.

    (a) Army Nurse Corps.--(1) Subsection (b) of section 3069 of title 
10, United States Code, is amended--
            (A) in the first sentence, by striking out ``major'' and 
        inserting in lieu thereof ``lieutenant colonel'';
            (B) by inserting after the first sentence the following: 
        ``An appointee who holds a lower regular grade shall be 
        appointed in the regular grade of brigadier general.''; and
            (C) in the last sentence, by inserting ``to the same 
        position'' before the period at the end.

    (2) Subsection (c) of such section is amended by striking out 
``major'' in the first sentence and inserting in lieu thereof 
``lieutenant colonel''.
    (3) The heading of such section is amended to read as follows:
 ``Sec. 3069. Army Nurse Corps: composition; Chief and assistant 
                    chief; appointment; grade

    (b) Air Force Nurse Corps.--Chapter 807 of such title is amended by 
inserting after section 8067 the following new section:
 ``Sec. 8069. Air Force nurses: Chief and assistant chief; 
                    appointment; grade

    ``(a) Positions of Chief and Assistant Chief.--There are a Chief and 
assistant chief of the Air Force Nurse Corps.
    ``(b) Chief.--The Secretary of the Air Force shall appoint the Chief 
from the officers of the Regular Air Force designated as Air Force 
nurses whose regular grade is above lieutenant colonel and who are 
recommended by the Surgeon General. An appointee who holds a lower 
regular grade shall be appointed in the regular grade of brigadier 
general. The Chief serves during the pleasure of the Secretary, but not 
for more than three years, and may not be reappointed to the same 
position.
    ``(c) Assistant Chief.--The Surgeon General shall appoint the 
assistant chief from the officers of the Regular Air Force designated as 
Air Force nurses whose regular grade is above lieutenant colonel.''.
    (c) Clerical Amendments.--(1) The item relating to section 3069 in 
the table of sections at the beginning of chapter 307 of such title is 
amended to read as follows:
``3069. Army Nurse Corps: composition; Chief and assistant chief; 
                    appointment; grade.''.

    (2) The table of sections at the beginning of chapter 807 of such 
title is amended by inserting after the item relating to section 8067 
the following new item:
``8069. Air Force Nurse Corps: Chief and assistant chief; appointment; 
                    grade.''.

Sec. 503. NAVY SPOT PROMOTION AUTHORITY FOR CERTAIN LIEUTENANTS WITH 
            CRITICAL SKILLS.

    (a) Advice-and-Consent Appointments.--Subsection (a) of section 5721 
of title 10, United States Code, is amended by striking out ``the 
President alone'' and inserting in lieu thereof ``the President, by and 
with the advice and consent of the Senate''.

[[Page 110 STAT. 2512]]

    (b) Repeal of Termination of Authority.--Such section is further 
amended by striking out subsection (g).

    (c) Clerical Amendment.--The caption for subsection (a) is amended 
to read as follows: ``Promotion Authority for Certain Officers With 
Critical Skills.--''.
SEC. 504. TIME FOR AWARD OF DEGREES BY UNACCREDITED EDUCATIONAL 
                        INSTITUTIONS FOR GRADUATES TO BE 
                        CONSIDERED EDUCATIONALLY QUALIFIED FOR 
                        APPOINTMENT AS RESERVE OFFICERS IN GRADE 
                        O-3.

    Section 12205(c)(2)(C) of title 10, United States Code, is amended 
by striking out ``three years'' and inserting in lieu thereof ``eight 
years''.
SEC. 505. EXCEPTION TO BACCALAUREATE DEGREE REQUIREMENT FOR 
                        APPOINTMENT IN THE NAVAL RESERVE IN GRADES 
                        ABOVE O-2.

    Section 12205(b)(3) of title 10, United States Code, is amended by 
inserting ``or the Seaman to Admiral program'' after ``(NAVCAD) 
program''.
SEC. 506. CHIEF WARRANT OFFICER PROMOTIONS.

    (a) Reduction of Minimum Time in Grade Required for Consideration 
for Promotion.--Section 574(e) of title 10, United States Code, is 
amended by striking out ``three years of service'' and inserting in lieu 
thereof ``two years of service''.
    (b) Below-Zone Selection.--Section 575(b)(1) of such title is 
amended by inserting ``chief warrant officer, W-3,'' in the first 
sentence after ``to consider warrant officers for selection for 
promotion to the grade of''.
SEC. 507. SERVICE CREDIT FOR SENIOR ROTC CADETS AND MIDSHIPMEN IN 
                        SIMULTANEOUS MEMBERSHIP PROGRAM.

    (a) Amendments to Title 10.--(1) Section 2106(c) of title 10, United 
States Code, is amended by striking out ``while serving on active duty 
other than for training after July 31, 1990, while a member of the 
Selected Reserve'' and inserting in lieu thereof ``performed on or after 
August 1, 1979, as a member of the Selected Reserve''.
    (2) Section 2107(g) of such title is amended by striking out ``while 
serving on active duty other than for training after July 31, 1990, 
while a member of the Selected Reserve'' and inserting in lieu thereof 
``performed on or after August 1, 1979, as a member of the Selected 
Reserve''.
    (3) Section 2107a(g) of such title is amended by inserting ``, other 
than enlisted service performed after August 1, 1979, as a member of 
Selected Reserve'' after ``service as a cadet or with concurrent 
enlisted service''.
    (b) Amendment to Title 37.--Section 205(d) of title 37, United 
States Code, is amended by striking out ``that service after July 31, 
1990, that the officer performed while serving on active duty'' and 
inserting in lieu thereof ``for service that the officer performed on or 
after August 1, 1979.''.
    (c) <<NOTE: 10 USC 2106 note.>>  Benefits Not To Accrue for Prior 
Periods.--No increase in pay or retired or retainer pay shall accrue for 
periods before the date of the enactment of this Act by reason of the 
amendments made by this section.

[[Page 110 STAT. 2513]]

SEC. 508. CONTINUATION ON ACTIVE STATUS FOR CERTAIN RESERVE 
                        OFFICERS OF THE AIR FORCE.

    (a) Authority.--Section 14507 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(c) Temporary Authority To Retain Certain Officers Designated as 
Judge Advocates.--(1) Notwithstanding the provisions of subsections (a) 
and (b), the Secretary of the Air Force may retain on the reserve 
active-status list any reserve officer of the Air Force who is 
designated as a judge advocate and who obtained the first professional 
degree in law while on an educational delay program subsequent to being 
commissioned through the Reserve Officers' Training Corps.
    ``(2) No more than 50 officers may be retained on the reserve 
active-status list under the authority of paragraph (1) at any time.
    ``(3) No officer may be retained on the reserve active-status list 
under the authority of paragraph (1) for a period exceeding three years 
from the date on which, but for that authority, that officer would have 
been removed from the reserve active-status list under subsection (a) or 
(b).
    ``(4) <<NOTE: Expiration date.>>  The authority of the Secretary of 
the Air Force under paragraph (1) expires on September 30, 2003.''.

  (b) <<NOTE: 10 USC 14507 note.>>  Effective Date.--Subsection (c) of 
section 14507 of title 10, United States Code, as added by subsection 
(a), shall take effect on October 1, 1996.
SEC. 509. REPORTS ON RESPONSE TO RECOMMENDATIONS CONCERNING 
                        IMPROVEMENTS TO DEPARTMENT OF DEFENSE 
                        JOINT MANPOWER PROCESS.

    (a) Semiannual Report.--The Secretary of Defense shall submit to 
Congress a semiannual report on the status of actions taken by the 
Secretary to implement the recommendations made by the Department of 
Defense Inspector General in the report of November 29, 1995, entitled 
``Inspection of the Department of Defense Joint Manpower Process'' 
(Report No. 96-029). The first such report shall be submitted not later 
than February 1, 1997. The requirement <<NOTE: Termination date.>> to 
submit such reports terminates after the fourth such report is 
submitted.

    (b) Additional Matter for First Report.--As part of the first report 
under subsection (a), the Secretary shall include the following:
            (1) The Secretary's assessment as to the need to establish a 
        joint, centralized permanent organization in the Department of 
        Defense to determine, validate, approve, and manage military and 
        civilian manpower requirements resources at joint organizations.
            (2) The Secretary's assessment of the Department of Defense 
        timeline and plan to increase the capability of the joint 
        professional military education system (including the Armed 
        Forces Staff College) to overcome the capacity limitations cited 
        in the report referred to in subsection (a).
            (3) The Secretary's plan and timeline to provide the 
        necessary training and education of reserve component officers.

    (c) GAO Assessment.--The Comptroller General of the United States 
shall assess the completeness and adequacy of the corrective actions 
taken by the Secretary with respect to the matters covered in the 
Inspector General report referred to in subsection (a). Not later than 
one year after the date of the enactment of this Act,

[[Page 110 STAT. 2514]]

the Comptroller General shall submit to Congress a report, based on the 
assessment under this subsection, providing the Comptroller General's 
findings and recommendations.
SEC. 510. FREQUENCY OF REPORTS TO CONGRESS ON JOINT OFFICER 
                        MANAGEMENT POLICIES.

    (a) Change from Semiannual to Annual Report.--Section 662(b) of 
title 10, United States Code, is amended by striking out ``Report.--The 
Secretary of Defense shall periodically (and not less often than every 
six months) report to Congress on the promotion rates'' and inserting in 
lieu thereof ``Annual Report.--Not later than January 1 of each year, 
the Secretary of Defense shall submit to Congress a report on the 
promotion rates during the preceding fiscal year''.
    (b) Technical and Conforming Amendments.--Such section is further 
amended--
            (1) in the first sentence, by striking out ``clauses'' and 
        inserting in lieu thereof ``paragraphs''; and
            (2) in the second sentence--
                    (A) by inserting ``for any fiscal year'' after 
                ``such objectives''; and
                    (B) by striking out ``periodic report required by 
                this subsection'' and inserting in lieu thereof ``report 
                for that fiscal year''.

                  Subtitle B--Enlisted Personnel Policy

SEC. 511. CAREER SERVICE REENLISTMENTS FOR MEMBERS WITH AT LEAST 
                        10 YEARS OF SERVICE.

    Subsection (d) of section 505 of title 10, United States Code, is 
amended to read as follows:
    ``(d)(1) The Secretary concerned may accept a reenlistment in the 
Regular Army, Regular Navy, Regular Air Force, Regular Marine Corps, or 
Regular Coast Guard, as the case may be, for a period determined under 
this subsection.
    ``(2) In the case of a member who has less than 10 years of service 
in the armed forces as of the day before the first day of the period for 
which reenlisted, the period for which the member reenlists shall be at 
least two years but not more than six years.
    ``(3) In the case of a member who has at least 10 years of service 
in the armed forces as of the day before the first day of the period for 
which reenlisted, the Secretary concerned may accept a reenlistment for 
either--
            ``(A) a specified period of at least two years but not more 
        than six years; or
            ``(B) an unspecified period.

    ``(4) No enlisted member is entitled to be reenlisted for a period 
that would expire before the end of the member's current enlistment.''.
SEC. 512. AUTHORITY TO EXTEND PERIOD FOR ENTRY ON ACTIVE DUTY 
                        UNDER THE DELAYED ENTRY PROGRAM.

    (a) Authority.--Section 513(b) of title 10, United States Code, is 
amended by inserting after the first sentence the following: ``The 
Secretary concerned may extend the 365-day period for any person for up 
to an additional 180 days if the Secretary determines

[[Page 110 STAT. 2515]]

that it is in the best interests of the armed force of which that person 
is a member to do so.''.
    (b) Technical Amendments.--Section 513(b) of such title, as amended 
by subsection (a), is further amended--
            (1) by inserting ``(1)'' after ``(b)'';
            (2) by designating the third sentence as paragraph (2); and
            (3) in paragraph (2), as so designated, by striking out 
        ``the preceding sentence'' and inserting in lieu thereof 
        ``paragraph (1)''.

                    Subtitle C--Activation and Recall

SEC. 521. LIMITATIONS ON RECALL OF RETIRED MEMBERS TO ACTIVE DUTY.

    (a) Revision and Recodification of Authorities Relating to Retired 
Members Ordered to Active Duty.--Chapter 39 of title 10, United States 
Code, is amended by striking out section 688 and inserting in lieu 
thereof the following:
 ``Sec. 688. Retired members: authority to order to active duty; 
                  duties

    ``(a) <<NOTE: Regulations.>>  Authority.--Under regulations 
prescribed by the Secretary of Defense, a member described in subsection 
(b) may be ordered to active duty by the Secretary of the military 
department concerned at any time.

    ``(b) Covered Members.--Except as provided in subsection (d), 
subsection (a) applies to the following members of the armed forces:
            ``(1) A retired member of the Regular Army, Regular Navy, 
        Regular Air Force, or Regular Marine Corps.
            ``(2) A member of the Retired Reserve who was retired under 
        section 1293, 3911, 3914, 6323, 8911, or 8914 of this title.
            ``(3) A member of the Fleet Reserve or Fleet Marine Corps 
        Reserve.

    ``(c) Duties of Member Ordered to Active Duty.--The Secretary 
concerned may, to the extent consistent with other provisions of law, 
assign a member ordered to active duty under this section to such duties 
as the Secretary considers necessary in the interests of national 
defense.
    ``(d) Exclusion of Officers Retired on Selective Early Retirement 
Basis.--The following officers may not be ordered to active duty under 
this section:
            ``(1) An officer who retired under section 638 of this 
        title.
            ``(2) An officer who--
                    ``(A) after having been notified that the officer 
                was to be considered for early retirement under section
638 of this title by a board convened under section 611(b) of this title 
and before being considered by that board, requested retirement under 
section 3911, 6323, or 8911 of this title; and
                    ``(B) was retired pursuant to that request.

    ``(e) Limitation of Period of Recall Service.--A member ordered to 
active duty under subsection (a) may not serve on active duty pursuant 
to orders under that subsection for more than 12

[[Page 110 STAT. 2516]]

months within the 24 months following the first day of the active duty 
to which ordered under that subsection.
    ``(f) Waiver for Periods of War or National Emergency.--Subsections 
(d) and (e) do not apply in time of war or of national emergency 
declared by Congress or the President.
 ``Sec. 689. Retired members: grade in which ordered to active 
                  duty and upon release from active duty

    ``(a) General Rule for Grade in Which Ordered to Active Duty.--
Except as provided in subsections (b) and (c), a retired member ordered 
to active duty under section 688 of this title shall be ordered to 
active duty in the member's retired grade.
    ``(b) Members Retired in O-9 and O-10 Grades.--A retired member 
ordered to active duty under section 688 of this title whose retired 
grade is above the grade of major general or rear admiral shall be 
ordered to active duty in the highest permanent grade held by such 
member while serving on active duty.
    ``(c) Members Who Previously Served in Grade Higher Than Retired 
Grade.--(1) A retired member ordered to active duty under section 688 of 
this title who has previously served on active duty satisfactorily, as 
determined by the Secretary of the military department concerned, in a 
grade higher than that member's retired grade may be ordered to active 
duty in the highest grade in which the member had so served 
satisfactorily, except that such a member may not be so ordered to 
active duty in a grade above major general or rear admiral.
    ``(2) A retired member ordered to active duty in a grade that is 
higher than the member's retired grade pursuant to subsection (a) shall 
be treated for purposes of section 690 of this title as if the member 
was promoted to that higher grade while on that tour of active duty.
    ``(3) If, upon being released from that tour of active duty, such a 
retired member has served on active duty satisfactorily, as determined 
by the Secretary concerned, for not less than a total of 36 months in a 
grade that is a higher grade than the member's retired grade, the member 
is entitled to placement on the retired list in that grade.
    ``(d) Grade Upon Release From Active Duty.--A member ordered to 
active duty under section 688 of this title who, while on active duty, 
is promoted to a grade that is higher than that member's retired grade 
is entitled, upon that member's release from that tour of active duty, 
to placement on the retired list in the highest grade in which the 
member served on active duty satisfactorily, as determined by the 
Secretary of the military department concerned, for not less than six 
months.
 ``Sec. 690. Retired members ordered to active duty: limitation on 
                  number

    ``(a) General and Flag Officers.--Not more than 15 retired general 
officers of the Army, Air Force, or Marine Corps, and not more than 15 
retired flag officers of the Navy, may be on active duty at any one 
time. For the purposes of this subsection a retired officer ordered to 
active duty for a period of 60 days or less is not counted.
    ``(b) Limitation by Service.--(1) Not more than 25 officers of any 
one armed force may be serving on active duty concurrently

[[Page 110 STAT. 2517]]

pursuant to orders to active duty issued under section 688 of this 
title.
    ``(2) In the administration of paragraph (1), the following officers 
shall not be counted:
            ``(A) A chaplain who is assigned to duty as a chaplain for 
        the period of active duty to which ordered.
            ``(B) A health care professional (as characterized by the 
        Secretary concerned) who is assigned to duty as a health care 
        professional for the period of the active duty to which ordered.
            ``(C) Any officer assigned to duty with the American Battle 
        Monuments Commission for the period of active duty to which 
        ordered.

    ``(c) Waiver for Periods of War or National Emergency.--Subsection 
(a) does not apply in time of war or of national emergency declared by 
Congress or the President after November 30, 1980. Subsection (b) does 
not apply in time of war or of national emergency declared by Congress 
or the President.''.
    (b) <<NOTE: 10 USC 688 note.>>  Effective Date.--The amendments made 
by this section shall take effect on September 30, 1997.

    (c) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by striking out the item relating to section 688 
and inserting in lieu thereof the following:
``688. Retired members: authority to order to active duty; duties.
``689. Retired members: grade in which ordered to active duty and upon 
          release from active duty.
``690. Retired members ordered to active duty: limitation on number.''.

    (d) Cross Reference Amendment.--Section 6151(a) of title 10, United 
States Code, is amended by striking out ``688'' and inserting in lieu 
thereof ``689''.

SEC. 522. CLARIFICATION OF DEFINITION OF ACTIVE STATUS.

    Section 101(d)(4) of title 10, United States Code, is amended by 
striking out ``a reserve commissioned officer, other than a commissioned 
warrant officer,'' and inserting in lieu thereof the following: ``a 
member of a reserve component''.
SEC. 523. LIMITATION OF REQUIREMENT FOR PHYSICAL EXAMINATIONS OF 
                        MEMBERS OF NATIONAL GUARD CALLED INTO 
                        FEDERAL SERVICE.

    Section 12408(a) of title 10, United States Code, is amended by 
inserting ``under section 12301(a), 12302, or 12304 of this title'' 
after ``called into Federal service''.

                Subtitle D--Reserve Component Retirement

SEC. 531. INCREASE IN ANNUAL LIMIT ON DAYS OF INACTIVE DUTY 
                        TRAINING CREDITABLE TOWARD RESERVE 
                        RETIREMENT.

    (a) Increase in Limit.--Section 12733(3) is amended by inserting 
before the period at the end the following: ``of service before the year 
of service in which the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 1997 occurs and not more than 75 days 
in any subsequent year of service''.
    (b) <<NOTE: 10 USC 12732 note.>>  Tracking System for Award of 
Retirement Points.--To better enable the Secretary of Defense and 
Congress to assess

[[Page 110 STAT. 2518]]

the cost and the effect on readiness of the amendment made by subsection 
(a) and of other potential changes to the Reserve retirement system 
under chapter 1223 of title 10, United States Code, the Secretary of 
Defense shall require the Secretary of each military department to 
implement a system to monitor the award of retirement points for 
purposes of that chapter by categories in accordance with the 
recommendation set forth in the August 1988 report of the Sixth 
Quadrennial Review of Military Compensation.

    (c) <<NOTE: 10 USC 12732 note.>> Recommendations to Congress.--The 
Secretary shall submit to Congress, not later than one year after the 
date of the enactment of this Act, the recommendations of the Secretary 
with regard to the adoption of the following Reserve retirement 
initiatives recommended in the August 1988 report of the Sixth 
Quadrennial Review of Military Compensation:
            (1) Elimination of membership points under subparagraph (C) 
        of section 12732(a)(2) of title 10, United States Code, in 
        conjunction with a decrease from 50 to 35 in the number of 
        points required for a satisfactory year under that section.
            (2) Limitation to 60 in any year on the number of points 
        that may be credited under subparagraph (B) of section 
        12732(a)(2) of such title at two points per day.
            (3) Limitation to 360 in any year on the total number of 
        retirement points countable for purposes of section 12733 of 
        such title.
SEC. 532. RETIREMENT OF RESERVE ENLISTED MEMBERS WHO QUALIFY FOR 
                        ACTIVE DUTY RETIREMENT AFTER 
                        ADMINISTRATIVE REDUCTION IN ENLISTED 
                        GRADE.

    (a) Army.--(1) Chapter 369 of title 10, United States Code, is 
amended by inserting after section 3962 the following new section:
 ``Sec. 3963. Highest grade held satisfactorily: Reserve enlisted 
                    members reduced in grade not as a result of 
                    the member's misconduct

    ``(a) A Reserve enlisted member of the Army described in subsection 
(b) who is retired under section 3914 of this title shall be retired in 
the highest enlisted grade in which the member served on active duty 
satisfactorily (or, in the case of a member of the National Guard, in 
which the member served on full-time National Guard duty 
satisfactorily), as determined by the Secretary of the Army.
    ``(b) <<NOTE: Applicability.>> This section applies to a Reserve 
enlisted member who--
            ``(1) at the time of retirement is serving on active duty 
        (or, in the case of a member of the National Guard, on full-time 
        National Guard duty) in a grade lower than the highest enlisted 
        grade held by the member while on active duty (or full-time 
        National Guard duty); and
            ``(2) was previously administratively reduced in grade not 
        as a result of the member's own misconduct, as determined by the 
        Secretary of the Army.

    ``(c) <<NOTE: Applicability.>>  This section applies with respect to 
Reserve enlisted members who are retired under section 3914 of this 
title after September 30, 1996.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 3962 the 
following new item:


[[Page 110 STAT. 2519]]


``3963. Highest grade held satisfactorily: Reserve enlisted members 
            reduced in grade not as a result of the member's 
            misconduct.''.

    (b) Navy and Marine Corps.--(1) Chapter 571 of title 10, United 
States Code, is amended by adding at the end the following new section:
 ``Sec. 6336. Highest grade held satisfactorily: Reserve enlisted 
                    members reduced in grade not as a result of 
                    the member's misconduct

    ``(a) A member of the Naval Reserve or Marine Corps Reserve 
described in subsection (b) who is transferred to the Fleet Reserve or 
the Fleet Marine Corps Reserve under section 6330 of this title shall be 
transferred in the highest enlisted grade in which the member served on 
active duty satisfactorily, as determined by the Secretary of the Navy.
    ``(b) <<NOTE: Applicability.>>  This section applies to a Reserve 
enlisted member who--
            ``(1) at the time of transfer to the Fleet Reserve or Fleet 
        Marine Corps Reserve is serving on active duty in a grade lower 
        than the highest enlisted grade held by the member while on 
        active duty; and
            ``(2) was previously administratively reduced in grade not 
        as a result of the member's own misconduct, as determined by the 
        Secretary of the Navy.

    ``(c) <<NOTE: Applicability.>>  This section applies with respect to 
enlisted members of the Naval Reserve and Marine Corps Reserve who are 
transferred to the Fleet Reserve or the Fleet Marine Corps Reserve after 
September 30, 1996.''.

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

``6336. Highest grade held satisfactorily: Reserve enlisted members 
            reduced in grade not as a result of the member's 
            misconduct.''.

    (c) Air Force.--(1) Chapter 869 of title 10, United States Code, is 
amended by inserting after section 8962 the following new section:
``Sec. 8963. Highest grade held satisfactorily: Reserve enlisted 
                    members reduced in grade not as a result of 
                    the member's misconduct

    ``(a) A Reserve enlisted member of the Air Force described in 
subsection (b) who is retired under section 8914 of this title shall be 
retired in the highest enlisted grade in which the member served on 
active duty satisfactorily (or, in the case of a member of the National 
Guard, in which the member served on full-time National Guard duty 
satisfactorily), as determined by the Secretary of the Air Force.
    ``(b) <<NOTE: Applicability.>>  This section applies to a Reserve 
enlisted member who--
            ``(1) at the time of retirement is serving on active duty 
        (or, in the case of a member of the National Guard, on full-time 
        National Guard duty) in a grade lower than the highest enlisted 
        grade held by the member while on active duty (or full-time 
        National Guard duty); and
            ``(2) was previously administratively reduced in grade not 
        as a result of the member's own misconduct, as determined by the 
        Secretary of the Air Force.

    ``(c) <<NOTE: Applicability.>>  This section applies with respect to 
Reserve enlisted members who are retired under section 8914 of this 
title after September 30, 1996.''.

[[Page 110 STAT. 2520]]

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 8962 the 
following new item:

``8963. Highest grade held satisfactorily: Reserve enlisted members 
            reduced in grade not as a result of the member's 
            misconduct.''.

    (d) Computation of Retired and Retainer Pay Based Upon Retired 
Grade.--(1) Section 3991 of such title is amended by adding at the end 
the following new subsection:
    ``(c) Special Rule for Retired Reserve Enlisted Members Covered by 
Section 3963.--In the case of a Reserve enlisted member retired under 
section 3914 of this title whose retired grade is determined under 
section 3963 of this title and who first became a member of a uniformed 
service before September 8, 1980, the retired pay base of the member 
(notwithstanding section 1406(a)(1) of this title) is the amount of the 
monthly basic pay of the member's retired grade (determined based upon 
the rates of basic pay applicable on the date of the member's 
retirement), and that amount shall be used for the purposes of 
subsection (a)(1)(A) rather than the amount computed under section 
1406(c) of this title.''.
    (2) Section 6333 of such title is amended by adding at the end the 
following new subsection:
    ``(c) In the case of a Reserve enlisted member whose grade upon 
transfer to the Fleet Reserve or Fleet Marine Corps Reserve is 
determined under section 6336 of this title and who first became a 
member of a uniformed service before September 8, 1980, the retainer pay 
base of the member (notwithstanding section 1406(a)(1) of this title) is 
the amount of the monthly basic pay of the grade in which the member is 
so transferred (determined based upon the rates of basic pay applicable 
on the date of the member's transfer), and that amount shall be used for 
the purposes of the table in subsection (a) rather than the amount 
computed under section 1406(d) of this title.''.

    (3) Section 8991 of such title is amended by adding at the end the 
following new subsection:
    ``(c) Special Rule for Retired Reserve Enlisted Members Covered by 
Section 8963.--In the case of a Reserve enlisted member retired under 
section 8914 of this title whose retired grade is determined under 
section 8963 of this title and who first became a member of a uniformed 
service before September 8, 1980, the retired pay base of the member 
(notwithstanding section 1406(a)(1) of this title) is the amount of the 
monthly basic pay of the member's retired grade (determined based upon 
the rates of basic pay applicable on the date of the member's 
retirement), and that amount shall be used for the purposes of 
subsection (a)(1)(A) rather than the amount computed under section 
1406(e) of this title.''.
SEC. 533. AUTHORITY FOR A RESERVE ON ACTIVE DUTY TO WAIVE 
                        RETIREMENT SANCTUARY.

    Section 12686 of title 10, United States Code, is amended--
            (1) by inserting ``(a) Limitation.--'' before ``Under 
        regulations''; and
            (2) by adding at the end the following:

    ``(b) Waiver.--With respect to a member of a reserve component who 
is to be ordered to active duty (other than for training) under section 
12301 of this title pursuant to an order to active duty that specifies a 
period of less than 180 days and who (but for this subsection) would be 
covered by subsection (a), the Secretary

[[Page 110 STAT. 2521]]

concerned may require, as a condition of such order to active duty, that 
the member waive the applicability of subsection (a) to the member for 
the period of active duty covered by that order. In carrying out this 
subsection, the Secretary concerned may require that a waiver under the 
preceding sentence be executed before the period of active duty 
begins.''.

SEC. 534. ELIGIBILITY OF RESERVES FOR DISABILITY RETIREMENT.

    Paragraph (2) of section 1204 of title 10, United States Code, is 
amended to read as follows:
            ``(2) the disability is the proximate result of, or was 
        incurred in line of duty after the date of the enactment of this 
        Act as a result of--
                    ``(A) performing active duty or inactive-duty 
                training;
                    ``(B) traveling directly to or from the place at 
                which such duty is performed; or
                    ``(C) an injury, illness, or disease incurred or 
                aggravated while remaining overnight, between successive 
                periods of inactive-duty training, at or in the vicinity 
                of the site of the inactive duty training, if the site 
                is outside reasonable commuting distance of the member's 
                residence;''.

               Subtitle E--Other Reserve Component Matters

SEC. 541. TRAINING FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE 
                        RESERVES.

    Subsection (b) of section 12310 of title 10, United States Code, is 
amended to read as follows:
    ``(b) A Reserve on active duty as described in subsection (a) may be 
provided training consistent with training provided to other members on 
active duty, as the Secretary concerned sees fit.''.

SEC. 542. ELIGIBILITY FOR ENROLLMENT IN READY RESERVE MOBILIZATION 
            INCOME INSURANCE PROGRAM.

    Section 12524 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(g) <<NOTE: Regulations.>>  Members of Individual Ready Reserve.--
Notwithstanding any other provision of this section, and pursuant to 
regulations issued by the Secretary, a member of the Individual Ready 
Reserve who becomes a member of the Selected Reserve shall not be denied 
eligibility to purchase insurance under this chapter upon becoming a 
member of the Selected Reserve unless the member previously declined to 
enroll in the program of insurance under this chapter while a member of 
the Selected Reserve.''.
SEC. 543. RESERVE CREDIT FOR PARTICIPATION IN HEALTH PROFESSIONS 
                        SCHOLARSHIP AND FINANCIAL ASSISTANCE 
                        PROGRAM.

    (a) Credit Authorized.--Section 2126 of title 10, United States 
Code, is amended--
            (1) by striking out ``Service performed'' and inserting in 
        lieu thereof ``(a) Service Not Creditable.--Except as provided 
        in subsection (b), service performed''; and
            (2) by adding at the end the following:

[[Page 110 STAT. 2522]]

    ``(b) Service Creditable for Certain Purposes.--(1) The Secretary 
concerned may authorize service performed by a member of the program in 
pursuit of a course of study under this subchapter to be counted in 
accordance with this subsection if the member--
            ``(A) completes the course of study;
            ``(B) completes the active duty obligation imposed under 
        section 2123(a) of this title; and
            ``(C) possesses a specialty designated by the Secretary 
        concerned as critically needed in wartime.

    ``(2) Service credited under paragraph (1) counts only for the 
following purposes:
            ``(A) Award of retirement points for computation of years of 
        service under section 12732 of this title and for computation of 
        retired pay under section 12733 of this title.
            ``(B) Computation of years of service creditable under 
        section 205 of title 37.

    ``(3) For purposes of paragraph (2)(A), a member may be credited in 
accordance with paragraph (1) with not more than 50 points for each year 
of participation in a course of study that the member satisfactorily 
completes as a member of the program.
    ``(4) Service may not be counted under paragraph (1) for more than 
four years of participation in a course of study as a member of the 
program.
    ``(5) A member is not entitled to any retroactive award of, or 
increase in, pay or allowances under title 37 by reason of an award of 
service credit under paragraph (1).''.
    (b) Award of Retirement Points.--(1) Section 12732(a)(2) of such 
title is amended--
            (A) by inserting after clause (C) the following:
                    ``(D) Points credited for the year under section 
                2126(b) of this title.''; and
            (B) in the matter following clause (D), as inserted by 
        paragraph (1), by striking out ``and (C)'' and inserting in lieu 
        thereof ``(C), and (D)''.

    (2) Section 12733(3) of such title is amended by striking out ``or 
(C)'' and inserting in lieu thereof ``(C), or (D)''.
SEC. 544. AMENDMENTS TO RESERVE OFFICER PERSONNEL MANAGEMENT ACT 
                        PROVISIONS.

    (a) Service Requirement for Retirement in Highest Grade Held.--
Section 1370(d) of title 10, United States Code, is amended--
            (1) by redesignating paragraph (3) as paragraph (4);
            (2) in paragraph (2)(A), by striking out ``(A)'';
            (3) by redesignating paragraph (2)(B) as paragraph (3); and
            (4) in paragraph (3), as so redesignated--
                    (A) by designating the first sentence as subpara- 
                graph (A);
                    (B) by designating the second sentence as 
                subparagraph (B);
                    (C) in subparagraph (B), as so redesignated, by 
                striking out ``the preceding sentence'' and inserting in 
                lieu thereof ``subparagraph (A)''; and
                    (D) by adding at the end the following:

    ``(C) If a person covered by subparagraph (A) has completed at least 
six months of satisfactory service in grade, the person

[[Page 110 STAT. 2523]]

was serving in that grade while serving in a position of adjutant 
general required under section 314 of title 32 or while serving in a 
position of assistant adjutant general subordinate to such a position of 
adjutant general, and the person has failed to complete three years of 
service in that grade solely because the person's appointment to such 
position has been terminated or vacated as described in section 324(b) 
of such title, then such person may be credited with satisfactory 
service in that grade, notwithstanding the failure to complete three 
years of service in that grade.
    ``(D) To the extent authorized by the Secretary of the military 
department concerned, a person who, after having been recommended for 
promotion in a report of a promotion board but before being promoted to 
the recommended grade, served in a position for which that grade is the 
minimum authorized grade may be credited for purposes of subparagraph 
(A) as having served in that grade for the period for which the person
served in that position while in the next lower grade. The period 
credited may not include any period before the date on which the Senate 
provides advice and consent for the appointment of that person in the 
recommended grade.

    ``(E) To the extent authorized by the Secretary of the military 
department concerned, a person who, after having been extended temporary 
Federal recognition as a reserve officer of the Army National Guard in a 
particular grade under section 308 of title 32 or temporary Federal 
recognition as a reserve officer of the Air National Guard in a 
particular grade under such section, served in a position for which that 
grade is the minimum authorized grade may be credited for purposes of 
subparagraph (A) as having served in that grade for the period for which 
the person served in that position while extended the temporary Federal 
recognition, but only if the person was subsequently extended permanent 
Federal recognition as a reserve officer in that grade and also served 
in that position after being extended the permanent Federal 
recognition.''.
    (b) Exception to Requirement for Retention of Reserve Officers Until 
Completion of Required Service.--Section 12645(b)(2) of such title is 
amended by inserting ``or a reserve active-status list'' after ``active-
duty list''.
    (c) Technical Correction.--Section 14314(b)(2)(B) of such title is 
amended by striking out ``of the Air Force''.
SEC. 545. REPORT ON NUMBER OF ADVISERS IN ACTIVE COMPONENT SUPPORT 
                        OF RESERVES PILOT PROGRAM.

    (a) Report on Number of Active Component Advisers.--Not later than 
six months after the date of the enactment of this Act, the Secretary of 
Defense shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representatives a 
report setting forth the Secretary's determination as to the appropriate 
number of active component personnel to be assigned to serve as advisers 
to reserve components under section 414 of the National Defense 
Authorization Act for Fiscal Years 1992 and 1993 (10 U.S.C. 12001 note). 
If the Secretary's determination is that such number should be a number 
other than the required minimum number in effect under subsection (c) of 
such section, the Secretary shall include in the report an explanation 
providing the Secretary's justification for the number recommended.

[[Page 110 STAT. 2524]]

    (b) Technical Amendment.--Section 414(a) of the National Defense 
Authorization Act for Fiscal Years 1992 and 1993 (10 U.S.C. 12001 note) 
is amended by striking out ``During fiscal years 1992 and 1993, the 
Secretary of the Army shall institute'' and inserting in lieu thereof 
``The Secretary of the Army shall carry out''.
SEC. 546. SENSE OF CONGRESS AND REPORT REGARDING REEMPLOYMENT 
                        RIGHTS FOR MOBILIZED RESERVISTS EMPLOYED 
                        IN FOREIGN COUNTRIES.

    (a) Sense of Congress.--Congress is concerned about the lack of 
reemployment rights afforded Reserve component members who reside in 
foreign countries and either work for United States companies that 
maintain offices or operations in foreign countries or work for foreign 
employers. Being outside the jurisdiction of the United States, these 
employers are not subject to the provisions of chapter 43 of title 38, 
United States Code, known as the Uniformed Services Employment and 
Reemployment Rights Act (USERRA). The purpose of that Act is to provide 
statutory employment protections that include reinstatement, seniority, 
status, and rate of pay coverage for Reservists who are ordered to 
active duty for a specified period of time, including involuntary active 
duty in support of an operational contingency. While most Reserve 
members are afforded the protections of that Act (which covers 
reemployment rights in their civilian jobs upon completion of military 
service), approximately 2,000 members of the Selected Reserve reside 
outside the United States and its territories and, not being guaranteed 
the job protection envisioned by the USERRA, are potentially subject to 
reemployment problems after release from active duty. This situation 
poses a continuing personnel management challenge for the reserve 
components.
    (b) Recognition of Problem.--Congress, while recognizing that 
foreign governments and companies located abroad, not being within the 
jurisdiction of the United States, cannot be required to comply with the 
provisions of the Uniformed Services Employment and Reemployment Rights 
Act, also recognizes that there is a need to provide assistance to 
Reservists in the situation described in subsection (a), both in the 
near term and the long term.
    (c) Report Requirement.--Not later than April 1, 1997, 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 recommended actions to help alleviate 
reemployment problems for Reservists who are employed outside the United 
States and its territories by United States companies that maintain 
offices or operations in foreign countries or by foreign employers. The 
report shall include recommendations on the assistance and support that 
may be required by other organizations of the Government, including the 
Defense Attache Offices, the Department of Labor, and the Department of 
State. The report shall be prepared in consultation with the Secretary 
of State and the Secretary of Labor.
SEC. 547. PAYMENT OF PREMIUMS UNDER MOBILIZATION INCOME INSURANCE 
                        PROGRAM.

    Section 12527(a) of title 10, United States Code, is amended--
            (1) in paragraph (1), by inserting ``of the Selected 
        Reserve'' after ``a member''; and

[[Page 110 STAT. 2525]]

            (2) by striking out paragraph (2) and inserting in lieu 
        thereof the following:

    ``(2) <<NOTE: Regulations.>>  The Secretary of Defense, in 
consultation with the Secretary of Transportation, shall prescribe 
regulations which specify the procedures for payment of premiums by 
members of the Individual Ready Reserve and other members who do not 
receive pay on a monthly basis.''.

                 Subtitle F--Officer Education Programs

SEC. 551. OVERSIGHT AND MANAGEMENT OF SENIOR RESERVE OFFICERS' 
                        TRAINING CORPS PROGRAM.

    (a) Enrollment Priority To Be Consistent With Purpose of Program.--
(1) Section 2103 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(e) An educational institution at which a unit of the program has 
been established shall give priority for enrollment in the program to 
students who are eligible for advanced training under section 2104 of 
this title.''.
    (2) Section 2109 of such title is amended by adding at the end the 
following new subsection:
    ``(c)(1) A person who is not qualified for, and (as determined by 
the Secretary concerned) will not be able to become qualified for, 
advanced training by reason of one or more of the requirements 
prescribed in paragraphs (1) through (3) of section 2104(b) of this 
title shall not be permitted to participate in--
            ``(A) field training or a practice cruise under section 
        2106(b)(6) of this title; or
            ``(B) practical military training under subsection (a).

    ``(2) The Secretary of the military department concerned may waive 
the limitation in paragraph (1) under procedures prescribed by the 
Secretary. Such procedures shall ensure uniform application of 
limitations and restrictions without regard to the reason for 
disqualification for advanced training.''.
    (b) Wear of the Military Uniform.--Section 772(h) of such title is 
amended by inserting before the period at the end the following: ``if 
the wear of such uniform is specifically authorized under regulations 
prescribed by the Secretary of the military department concerned''.
SEC. 552. PROHIBITION ON REORGANIZATION OF ARMY ROTC CADET COMMAND 
                        OR TERMINATION OF SENIOR ROTC UNITS 
                        PENDING REPORT ON ROTC.

    (a) <<NOTE: Reports.>>  Prohibition.--(1) The Secretary of the Army 
may not reorganize or restructure the Reserve Officers Training Corps 
Cadet Command, and may not terminate any Senior Reserve Officer Training 
Corps unit identified in the document referred to in paragraph (2), 
until 180 days after the date on which the Secretary submits to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives the report described in 
subsection (b).

    (2) The document referred to in paragraph (1) is the Department of 
Defense document dated May 20, 1996, entitled ``Information for Members 
of Congress concerning Senior Reserve Officer Training Corps (ROTC) Unit 
Closures''.

[[Page 110 STAT. 2526]]

    (b) Report Contents.--The report referred to in subsection (a) is a 
report by the Secretary of the Army in which the Secretary--
            (1) describes the selection process used to identify the 
        Reserve Officer Training Corps units of the Army to be 
        terminated;
            (2) lists the criteria used by the Army to select Reserve 
        Officer Training Corps units for termination;
            (3) sets forth the specific ranking of each unit of the 
        Reserve Officer Training Corps of the Army to be terminated as 
        against all other such units;
            (4) sets forth the authorized and actual cadre staffing of 
        each such unit for each fiscal year of the 10-fiscal year period 
        ending with fiscal year 1996;
            (5) sets forth the production goals and performance 
        evaluations of each such unit for each fiscal year of the 10-
        fiscal year period ending with fiscal year 1996;
            (6) describes how cadets currently enrolled in the units 
        referred to in paragraph (5) will be accommodated after the 
        closure of such units;
            (7) describes the incentives to enhance the Reserve Officer 
        Training Corps program that are provided by each of the colleges 
        on the closure list;
            (8) includes the projected officer accession plan by source 
        of commission for the active-duty Army, the Army Reserve, and 
        the Army National Guard; and
            (9) describes whether the closure of any ROTC unit will 
        adversely affect the recruitment of minority officer candidates.
SEC. 553. PILOT PROGRAM TO TEST EXPANSION OF ROTC PROGRAM TO 
                        INCLUDE GRADUATE STUDENTS.

    (a) Test Program.--Section 2107(c) of title 10, United States Code, 
is amended--
            (1) by inserting ``(1)'' after ``(c)''; and
            (2) by adding at the end the following:

    ``(2) The Secretary of Defense shall authorize the Secretaries of 
the military departments to carry out a test program to determine the 
desirability of enabling graduate students to participate in the 
financial assistance program under this section. As part of such test 
program, the Secretary of a military department may provide financial 
assistance, as described in paragraph (1), to a student enrolled in an 
advanced education program beyond the baccalaureate degree level if the 
student also is a cadet or midshipman in an advanced training program. 
Not more than 15 percent of the total number of scholarships awarded 
under this section in any year may be awarded under the test program. No 
scholarship may be awarded under the test program after September 30, 
1999.''.
    (b) Authority To Enroll in Advanced Training Program.--Paragraph (3) 
of section 2101 of title 10, United States Code, is amended by inserting 
``students enrolled in an advanced education program beyond the 
baccalaureate degree level or to'' after `instruction offered in the 
Senior Reserve Officers' Training Corps to''.
    (c) <<NOTE: 10 USC 2107 note.>>  Report to Congress.--Not later than 
December 31, 1998, the Secretary of Defense shall submit to Congress a 
report on the experience to that date under the test program authorized 
under the amendment made by subsection (a)(2). The report shall include 
the Secretary's assessment of the effect of the test program

[[Page 110 STAT. 2527]]

on the Senior ROTC program and the Secretary's recommendation as to 
whether the authority under the test program should be made permanent.
SEC. 554. <<NOTE: 10 USC 2111 note.>>  DEMONSTRATION PROJECT FOR 
                        INSTRUCTION AND SUPPORT OF ARMY ROTC UNITS 
                        BY MEMBERS OF THE ARMY RESERVE AND 
                        NATIONAL GUARD.

    (a) Demonstration Project Required.--The Secretary of the Army shall 
carry out a demonstration project in order to assess the feasibility and 
advisability of providing instruction and similar support to units of 
the Senior Reserve Officers' Training Corps of the Army through members 
of the Army Reserve (including members of the Individual Ready Reserve) 
and members of the Army National Guard.

    (b) Project Requirements.--(1) The Secretary shall carry out the 
demonstration project at at least one institution of higher education.
    (2) In order to enhance the value of the project, the Secretary may 
take actions to ensure that members of the Army Reserve and the Army 
National Guard provide instruction and support under the project in a 
variety of innovative ways.
    (c) Inapplicability of Limitation on Reserves in Support of ROTC.--
The assignment of a member of the Army Reserve or the Army National 
Guard to provide instruction or support under the demonstration project 
shall not be treated as an assignment of the member to duty with a unit 
of a Reserve Officer Training Corps program for purposes of section 
12321 of title 10, United States Code.
    (d) Reports to Congress.--Not later than February 1 in each of 1998 
and 1999, the Secretary shall submit to Congress a report assessing the 
activities under the demonstration project during the preceding year. 
The report submitted in 1999 shall include the Secretary's 
recommendation as to the advisability of continuing or expanding the 
authority for the project.
    (e) Termination.--The authority of the Secretary to carry out the 
demonstration project shall expire three years after the date of the 
enactment of this Act.
SEC. 555. EXTENSION OF MAXIMUM AGE FOR APPOINTMENT AS A CADET OR 
                        MIDSHIPMAN IN THE SENIOR RESERVE OFFICERS' 
                        TRAINING CORPS AND THE SERVICE ACADEMIES.

    (a) Senior Reserve Officers' Training Corps.--Sections 2107(a) and 
2107a(a) of title 10, United States Code, are amended--
            (1) by striking out ``25 years of age'' and inserting in 
        lieu thereof ``27 years of age''; and
            (2) by striking out ``29 years of age'' and inserting in 
        lieu thereof ``30 years of age''.

    (b) United States Military Academy.--Section 4346(a) of such title 
is amended by striking out ``twenty-second birthday'' and inserting in 
lieu thereof ``twenty-third birthday''.
    (c) United States Naval Academy.--Section 6958(a)(1) of such title 
is amended by striking out ``twenty-second birthday'' and inserting in 
lieu thereof ``twenty-third birthday''.
    (d) United States Air Force Academy.--Section 9346(a) of such title 
is amended by striking out ``twenty-second birthday'' and inserting in 
lieu thereof ``twenty-third birthday''.

[[Page 110 STAT. 2528]]

SEC. 556. EXPANSION OF ELIGIBILITY FOR EDUCATION BENEFITS TO 
                        INCLUDE CERTAIN RESERVE OFFICERS' TRAINING 
                        CORPS (ROTC) PARTICIPANTS.

    (a) Active Duty Service.--Section 3011(c) of title 38, United States 
Code, is amended--
            (1) by striking out ``or upon completion of a program of 
        educational assistance under section 2107 of title 10'' in 
        paragraph (2); and
            (2) by adding at the end the following:

    ``(3) An individual who after December 31, 1976, receives a 
commission as an officer in the Armed Forces upon completion of a 
program of educational assistance under section 2107 of title 10 is not 
eligible for educational assistance under this section if the individual 
enters on active duty--
            ``(A) before October 1, 1996; or
            ``(B) after September 30, 1996, and while participating in 
        such program received more than $2,000 for each year of such 
        participation.''.

    (b) Selected Reserve.--Section 3012(d) of title 38, United States 
Code, is amended--
            (1) by striking out ``or upon completion of a program of 
        educational assistance under section 2107 of title 10'' in 
        paragraph (2); and
            (2) by adding at the end the following:

    ``(3) An individual who after December 31, 1976, receives a 
commission as an officer in the Armed Forces upon completion of a 
program of educational assistance under section 2107 of title 10 is not 
eligible for educational assistance under this section if the individual 
enters on active duty--
            ``(A) before October 1, 1996; or
            ``(B) after September 30, 1996, and while participating in 
        such program received more than $2,000 for each year of such 
        participation.''.
SEC. 557. COMPTROLLER GENERAL REPORT ON COST AND POLICY 
                        IMPLICATIONS OF PERMITTING UP TO FIVE 
                        PERCENT OF SERVICE ACADEMY GRADUATES TO BE 
                        ASSIGNED DIRECTLY TO RESERVE DUTY UPON 
                        GRADUATION.

    (a) Report Required.--The Comptroller General of the United States 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
providing an analysis of the cost implications, and the policy 
implications, of permitting up to five percent of each graduating class 
of each of the service academies to be placed, upon graduation and 
commissioning, in an active status in the appropriate reserve component 
(without a minimum period of obligated active duty service), with a
corresponding increase in the number of ROTC graduates each year who are 
permitted to serve on active duty upon commissioning.

    (b) Information on Current Academy Graduates in Reserve 
Components.--The Comptroller General shall include in the report 
information (shown in the aggregate and separately for each of the Armed 
Forces and for graduates of each service academy) on--
            (1) the number of academy graduates who at the time of the 
        report are serving in an active status in a reserve component; 
        and

[[Page 110 STAT. 2529]]

            (2) within the number under paragraph (1), the number for 
        each reserve component and, of those, the number within each 
        reserve component who are on active duty under section 12301(d) 
        of title 10, United States Code, for the purpose of organizing, 
        administering, recruiting, instructing, or training the reserve 
        components.

    (c) Submission of Report.--The report shall be submitted not later 
than six months after the date of the enactment of this Act.
    (d) Service Academies.--For purposes of this section, the term 
``service academies'' means--
            (1) the United States Military Academy;
            (2) the United States Naval Academy; and
            (3) the United States Air Force Academy.

                   Subtitle G--Decorations and Awards

SEC. 561. AUTHORITY FOR AWARD OF MEDAL OF HONOR TO CERTAIN AFRICAN 
                        AMERICAN SOLDIERS WHO SERVED DURING WORLD 
                        WAR II.

    (a) Inapplicability of Time Limitations.--Notwithstanding the time 
limitations in section 3744(b) of title 10, United States Code, or any 
other time limitation, the President may award the Medal of Honor to the 
persons specified in subsection (b), each of whom has been found by the 
Secretary of the Army to have distinguished himself conspicuously by 
gallantry and intrepidity at the risk of his life above and beyond the 
call of duty while serving in the United States Army during World War 
II.
    (b) Persons Eligible To Receive the Medal of Honor.--The persons 
referred to in subsection (a) are the following:
            (1) <<NOTE: Vernon J. Baker.>>  Vernon J. Baker, who served 
        as a first lieutenant in the 370th Infantry Regiment, 92nd 
        Infantry Division.
            (2) <<NOTE: Edward A. Carter.>>  Edward A. Carter, who 
        served as a staff sergeant in the 56th Armored Infantry 
        Battalion, Twelfth Armored Division.
            (3) <<NOTE: John R. Fox.>>  John R. Fox, who served as a 
        first lieutenant in the 366th Infantry Regiment, 92nd Infantry 
        Division.
            (4) <<NOTE: Willy F. James, Jr.>>  Willy F. James, Jr., who 
        served as a private first class in the 413th Infantry Regiment, 
        104th Infantry Division.
            (5) <<NOTE: Ruben Rivers.>>  Ruben Rivers, who served as a 
        staff sergeant in the 761st Tank Battalion.
            (6) <<NOTE: Charles L. Thomas.>>  Charles L. Thomas, who 
        served as a first lieutenant in the 614th Tank Destroyer 
        Battalion.
            (7) <<NOTE: George Watson.>>  George Watson, who served as a 
        private in the 29th Quartermaster Regiment.

    (c) Posthumous Award.--The Medal of Honor may be awarded under this 
section posthumously, as provided in section 3752 of title 10, United 
States Code.
    (d) Prior Award.--The Medal of Honor may be awarded under this 
section for service for which a Distinguished-Service Cross, or other 
award, has been awarded.
SEC. 562. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN 
                        DECORATIONS TO SPECIFIED PERSONS.

    (a) Waiver of Time Limitation.--Any limitation established by law or 
policy for the time within which a recommendation

[[Page 110 STAT. 2530]]

for the award of a military decoration or award must be submitted shall 
not apply in the case of awards of decorations as described in 
subsection (b), the award of each such decoration having been determined 
by the Secretary of the Navy to be warranted in accordance with section 
1130 of title 10, United States Code.
    (b) Distinguished Flying Cross.--Subsection (a) applies to awards of 
the Distinguished Flying Cross for service during World War II as 
follows:
            (1) First award.--First award, for completion of at least 20 
        qualifying combat missions, to the following members and former 
        members of the Armed Forces:
                    Vernard V. Aiken of Wilmington, Vermont.
                    Ira V. Babcock of Dothan, Georgia.
                    George S. Barlow of Grafton, Virginia.
                    Earl A. Bratton of Bodega Bay, California.
                    Travis C. Cork of Leesburg, Florida.
                    Herman C. Edwards of Johns Island, South Carolina.
                    Norman J. Ehr of Kiel, Wisconsin.
                    James M. Fitzgerald of Anchorage, Alaska.
                    Raymond C. Gordon of Sherborn, Massachusetts.
                    Paul L. Hitchcock of Raleigh, North Carolina.
                    Harold H. Hottle of Hillsboro, Ohio.
                    Samuel M. Keith of Anderson, South Carolina.
                    Stanley J. Ksiadz of Cheektowaga, New York.
                    Otis Lancaster of Wyoming, Michigan.
                    Robert W. Lorette of Wilton, New Hampshire.
                    John B. McCabe of Biglerville, Pennsylvania.
                    James P. Merriman of Midland, Texas.
                    The late Michael L. Michalak, formerly of Akron, New 
                York.
                    The late Edward J. Naparkowsky, formerly of 
                Hartford, Connecticut.
                    Pete G. Nicora of Warren, Ohio.
                    Stanley J. Orlowski of Jackson, Michigan.
                    Raymond A. Peischl of Allentown, Pennsylvania.
                    A. Jerome Pfeiffer of Racine, Wisconsin.
                    Duane L. Rhodes of Earp, California.
                    Frank V. Roach of Bloomfield, New Jersey.
                    Arnold V. Rosekrans of Horseheads, New York.
                    Joseph E. Seaman, Jr. of Bordentown, New Jersey.
                    Richard F. Shumaker of Hilliard, Ohio.
                    Luther E. Thomas of Panama City, Florida.
                    Merton S. Ward of South Hamilton, Massachusetts.
                    Simon L. Webb of Magnolia, Mississippi.
                    Jerry W. Webster of Leander, Texas.
            (2) Second award.--Second award, for completion of at least 
        40 qualifying combat missions, to the following members and 
        former members of the Armed Forces:
                    Arthur C. Adair of Grants Pass, Oregon.
                    Robert B. Carnes of West Yarmouth, Massachusetts.
                    Daniel K. Connors of Hampton, New Hampshire.
                    Glen E. Danielson of Whittier, California.
                    Ralph J. Deceuster of Dover, Ohio.
                    Albert P. Emsley of Bothell, Washington.
                    Urbain J. Fournier of Houma, Louisiana.
                    Prescott C. Jernegan of Hemet, California.
                    Stephen K. Johnson of Englewood, Florida.

[[Page 110 STAT. 2531]]

                    Warren E. Johnson of Vista, California.
                    Elbert J. Kimble of San Francisco, California.
                    George W. Knauff of Monument, Colorado.
                    John W. Lincoln of Rockland, Massachusetts.
                    Alan D. Marker of Sonoma, California.
                    Joseph J. Oliver of White Haven, Pennsylvania.
                    Shefield Phelps of Seattle, Washington.
                    John B. Tagliapiri of St. Helena, California.
                    Dewilles A.H.W. Schwartz of Watertown, South Dakota.
                    Ray B. Stiltner of Centralia, Washington.
            (3) Third award.--Third award, for completion of at least 60 
        qualifying combat missions, to the following members and former 
        members of the Armed Forces:
                    Glenn Bowers of Dillsburg, Pennsylvania.
                    Arthur C. Casey of Irving, California.
                    Robert J. Larsen of Gulf Breeze, Florida.
                    David Mendoza of McAllen, Texas.
                    William A. Nickerson of Portland, Oregon.
                    Maurice F. Smith of Sequim, Washington.
            (4) Fourth award.--Fourth award, for completion of at least 
        80 qualifying combat missions, to the following members and 
        former members of the Armed Forces:
                    Robert Bair of Ontario, California.
                    Arvid L. Kretz of Santa Rosa, California.
                    George E. McClane of Cocoa Beach, Florida.
                    Orville R. Swick of Issaquah, Washington.
            (5) Fifth award.--Fifth award, for completion of at least 
        100 qualifying combat missions, to the following members and 
        former members of the Armed Forces:
                    William A. Baldwin of San Clemente, California.
                    George Bobb of Blackwood, New Jersey.
                    John R. Conrad of Hot Springs, Arkansas.
                    Herbert R. Hetrick of Roaring Springs, Pennsylvania.
                    William L. Wells of Cordele, Georgia.
            (6) Sixth award.--Sixth award, for completion of at least 
        120 qualifying combat missions, to Richard L. Murray of Dallas, 
        Texas.
SEC. 563. REPLACEMENT OF CERTAIN AMERICAN THEATER CAMPAIGN 
                        RIBBONS.

    (a) Replacement Ribbons.--The Secretary of the Army, pursuant to 
section 3751 of title 10, United States Code, may replace any World War 
II decoration known as the American Theater Campaign Ribbon that was 
awarded to a person listed in the order described in subsection (b).
     (b) Ribbons Properly Awarded.--Any person listed in the document 
titled ``General Order Number 1'', issued by the Third Auxiliary 
Surgical Group, APO 647, United States Army, dated February 1, 1943, 
shall be considered to have been properly awarded the American Theater 
Campaign Ribbon for service during World War II.

[[Page 110 STAT. 2532]]

                        Subtitle H--Other Matters

SEC. 571. <<NOTE: 10 USC 113 note.>>  HATE CRIMES IN THE MILITARY.

    (a) Human Relations Training.--(1) The Secretary of Defense shall 
ensure that the Secretary of each military department conducts ongoing 
programs for human relations training for all members of the Armed 
Forces under the jurisdiction of the Secretary. Matters to be covered by 
such training include race relations, equal opportunity, opposition to 
gender discrimination, and sensitivity to ``hate group'' activity. Such 
training shall be provided during basic training (or other initial 
military training) and on a regular basis thereafter.
    (2) The Secretary of Defense shall also ensure that unit commanders 
are aware of their responsibilities in ensuring that impermissible 
activity based upon discriminatory motives does not occur in units under 
their command.
    (b) Information To Be Provided to Prospective Recruits.--The 
Secretary of Defense shall ensure that each individual preparing to 
enter an officer accession program or to execute an original enlistment 
agreement is provided information concerning the meaning of the oath of 
office or oath of enlistment for service in the Armed Forces in terms of 
the equal protection and civil liberties guarantees of the Constitution, 
and each such individual shall be informed that if supporting those 
guarantees is not possible personally for that individual, then that 
individual should decline to enter the Armed Forces.
    (c) Annual Survey.--(1) Section 451 of title 10, United States Code, 
is amended to read as follows:
``Sec. 451. Race relations, gender discrimination, and hate group 
                  activity: annual survey and report

    ``(a) Annual Survey.--The Secretary of Defense shall carry out an 
annual survey to measure the state of racial, ethnic, and gender issues 
and discrimination among members of the Armed Forces serving on active 
duty and the extent (if any) of activity among such members that may be 
seen as so-called `hate group' activity. The survey shall solicit 
information on the
race relations and gender relations climate in the Armed Forces, 
including--
            ``(1) indicators of positive and negative trends of 
        relations among all racial and ethnic groups and between the 
        sexes;
            ``(2) the effectiveness of Department of Defense policies 
        designed to improve race, ethnic, and gender relations; and
            ``(3) the effectiveness of current processes for complaints 
        on and investigations into racial, ethnic, and gender 
        discrimination.

    ``(b) Implementing Entity.--The Secretary shall carry out each 
annual survey through the entity in the Department of Defense known as 
the Armed Forces Survey on Race/Ethnic Issues.
    ``(c) Reports to Congress.--Upon completion of each annual survey 
under subsection (a), the Secretary shall submit to Congress a report 
containing the results of the survey.''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 22 of such title is amended to read as follows:

``451. Race relations, gender discrimination, and hate group activity: 
          annual survey and report.''.


[[Page 110 STAT. 2533]]



SEC. 572. DISABILITY COVERAGE FOR MEMBERS GRANTED EXCESS LEAVE FOR 
            EDUCATIONAL OR EMERGENCY PURPOSES.

    (a) Eligibility for Retirement.--Section 1201 of title 10, United 
States Code, is amended--
            (1) by striking out the matter preceding paragraph (1) and 
        inserting in lieu thereof the following:

    ``(a) Retirement.--Upon a determination by the Secretary concerned 
that a member described in subsection (c) is unfit to perform the duties 
of the member's office, grade, rank, or rating because of physical 
disability incurred while entitled to basic pay or while absent as 
described in subsection (c)(3), the Secretary may retire the member, 
with retired pay computed under section 1401 of this title, if the 
Secretary also makes the determinations with respect to the member and 
that disability specified in subsection (b).
    ``(b) Required Determinations of Disability.--Determinations 
referred to in subsection (a) are determinations by the Secretary that--
''; and
            (2) by adding at the end the following:

    ``(c) Eligible Members.--This section and sections 1202 and 1203 of 
this title apply to the following members:
            ``(1) A member of a regular component of the armed forces 
        entitled to basic pay.
            ``(2) Any other member of the armed forces entitled to basic 
        pay who has been called or ordered to active duty (other than 
        for training under section 10148(a) of this title) for a period 
        of more than 30 days.
            ``(3) Any other member of the armed forces who is on active 
        duty but is not entitled to basic pay by reason of section 
        502(b) of title 37 due to authorized absence (A) to participate 
        in an educational program, or (B) for an emergency purpose, as 
        determined by the Secretary concerned.''.

    (b) Eligibility for Placement on Temporary Disability Retirement 
List.--Section 1202 of title 10, United States Code, is amended by 
striking out ``a member of a regular component'' and all that follows 
through ``more than 30 days,'' and inserting in lieu thereof ``a member 
described in section 1201(c) of this title''.
    (c) Eligibility for Separation.--Section 1203 of title 10, United 
States Code, is amended by striking out the matter preceding paragraph 
(1) and inserting in lieu thereof the following:
    ``(a) Separation.--Upon a determination by the Secretary concerned 
that a member described in section 1201(c) of this title is unfit to 
perform the duties of the member's office, grade, rank, or rating 
because of physical disability incurred while entitled to basic pay or 
while absent as described in section 1201(c)(3) of this title, the 
member may be separated from the member's armed force, with severance 
pay computed under section 1212 of this title, if the Secretary also 
makes the determinations with respect to the member and that disability 
specified in subsection (b).
    ``(b) Required Determinations of Disability.--Determinations 
referred to in subsection (a) are determinations by the Secretary that--
''.
    (d) <<NOTE: Applicability. 10 USC 1201 note.>>  Effective Date.--The 
amendments made by this section shall take effect on the date of the 
enactment of this Act and shall apply with respect to physical 
disabilities incurred on or after such date.

[[Page 110 STAT. 2534]]

SEC. 573. CLARIFICATION OF AUTHORITY OF A RESERVE JUDGE ADVOCATE 
                        TO ACT AS A MILITARY NOTARY PUBLIC WHEN 
                        NOT IN A DUTY STATUS.

    Section 1044a(b) of title 10, United States Code, is amended--
            (1) in paragraph (1), by striking out ``on active duty or 
        performing inactive-duty training'' and inserting in lieu 
        thereof ``, including reserve judge advocates when not in a duty 
        status'';
            (2) in paragraph (3), by striking out ``adjutants on active 
        duty or performing inactive-duty training'' and inserting in 
        lieu thereof ``adjutants, including reserve members when not in 
        a duty status''; and
            (3) in paragraph (4), by striking out ``persons on active 
        duty or performing inactive-duty training'' and inserting in 
        lieu thereof ``members of the armed forces, including reserve 
        members when not in a duty status,''.
SEC. 574. PANEL ON JURISDICTION OF COURTS-MARTIAL FOR THE NATIONAL 
                        GUARD WHEN NOT IN FEDERAL SERVICE.

    (a) Establishment.--The Secretary of Defense shall establish a panel 
to review the various authorities for court-martial and nonjudicial 
punishment jurisdiction for the National Guard not in Federal service 
and the use of those authorities.
    (b) Membership.--The Secretary shall appoint the members of the 
panel so as to ensure representation of the following:
            (1) The State Adjutants General of the National Guard.
            (2) The State Attorneys General.
            (3) The Joint Service Committee on Military Justice of the 
        Department of Defense.

    (c) Duties.--Matters reviewed by the panel shall include the 
following:
            (1) The extent of the use of court-martial and nonjudicial 
        punishment authority for the National Guard not in Federal 
        service.
            (2) The extent to which the authority used is--
                    (A) authority under title 32, United States Code; or
                    (B) authority under State law.

    (d) Report.--(1) Not later than February 1, 1997, the panel shall 
submit a report on the panel's findings and conclusions to the Secretary 
of Defense.
    (2) The report shall include recommended legislation for amending 
title 32, United States Code--
            (A) to increase the uniformity in State use of courts-
        martial and nonjudicial punishment for the National Guard when 
        not in Federal service; and
            (B) to achieve increased comparability between the court-
        martial and nonjudicial punishment procedures that are 
        applicable to the National Guard not in Federal service and the 
        court-martial and nonjudicial punishment procedures that are 
        applicable under the Uniform Code of Military Justice to the 
        National Guard in Federal service.

    (e) Submission of Report to Congress.--Not later than March 1, 1997, 
the Secretary of Defense shall submit to Congress the report of the 
panel under subsection (d) together with the views of the Secretary 
regarding the report and the matters covered in the report.

[[Page 110 STAT. 2535]]

SEC. 575. AUTHORITY TO EXPAND LAW ENFORCEMENT PLACEMENT PROGRAM TO 
                        INCLUDE FIREFIGHTERS.

    Section 1152(g) of title 10, United States Code, is amended--
            (1) by striking out ``(g) Conditional Expansion of Placement 
        to Include Firefighters.--(1) Subject to paragraph (2), the'' 
        and inserting in lieu thereof ``(g) Authority To Expand 
        Placement To Include Firefighters.--The''; and
            (2) in paragraph (2)--
                    (A) by striking out the first sentence; and
                    (B) in the second sentence, by inserting 
                ``authorized by this subsection'' after ``expansion''.
SEC. 576. IMPROVEMENTS TO PROGRAM TO ASSIST SEPARATED MILITARY AND 
                        CIVILIAN PERSONNEL TO OBTAIN EMPLOYMENT AS 
                        TEACHERS OR TEACHERS' AIDES.

    (a) Program for Separated Members.--(1) Section 1151 of title 10, 
United States Code, is amended--
            (A) in subsection (f)(2), by striking out ``five school 
        years'' in subparagraphs (A) and (B) and inserting in lieu 
        thereof ``two school years''; and
            (B) in subsection (h)(3)(A), by striking out ``five 
        consecutive school years'' and inserting in lieu thereof ``two 
        consecutive school years''.

    (2) Subsection (g)(2) of such section is amended--
            (A) by striking out the comma after ``section 1174a of this 
        title'' and inserting in lieu thereof ``or''; and
            (B) by striking out ``, or retires pursuant to the authority 
        provided in section 4403 of the National Defense Authorization 
        Act for fiscal year 1993 (Public Law 102-484; 10 U.S.C. 1293 
        note)''.

    (3) Subsection (h)(3)(B) of such section is amended--
            (A) in clause (i), by striking out ``$25,000'' and inserting 
        in lieu thereof ``$17,000'';
            (B) in clause (ii)--
                    (i) by striking out ``40 percent'' and inserting in 
                lieu thereof ``25 percent''; and
                    (ii) by striking out ``$10,000'' and inserting in 
                lieu thereof ``$8,000''; and
            (C) by striking out clauses (iii), (iv), and (v).

    (b) Separated Civilian Employees of the Department of Defense.--
Section 1598(d)(2) of such title is amended by striking out ``five 
school years'' in subparagraphs (A) and (B) and inserting in lieu 
thereof ``two school years''.
    (c) Displaced Department of Defense Contractor Employees.--Section 
2410j(f)(2) of such title is amended by striking out ``five school 
years'' in subparagraphs (A) and (B) and inserting in lieu thereof ``two 
school years''.
    (d) <<NOTE: 10 USC 1151 note.>>  Savings Provision.--The amendments 
made by this section do not affect obligations under agreements entered 
into in accordance with section 1151, 1598, or 2410j of title 10, United 
States Code, before the date of the enactment of this Act.

[[Page 110 STAT. 2536]]

SEC. 577. RETIREMENT AT GRADE TO WHICH SELECTED FOR PROMOTION WHEN 
                        A PHYSICAL DISABILITY IS FOUND AT ANY 
                        PHYSICAL EXAMINATION.

    Section 1372 of title 10, United States Code, is amended by striking 
out ``his physical examination for promotion'' in paragraphs (3) and (4) 
and inserting in lieu thereof ``a physical examination''.

SEC. 578. REVISIONS TO MISSING PERSONS AUTHORITIES.

    (a) Repeal of Applicability of Authorities to Department of Defense 
Civilian Employees and Contractor Employees.--(1) Section 1501 of title 
10, United States Code, is amended--
            (A) in subsection (c)--
                    (i) by striking out ``applies in the case of'' and 
                all that follows through ``(1) Any member'' and 
                inserting in lieu thereof ``applies in the case of any 
                member''; and
                    (ii) by striking out paragraph (2); and
            (B) by striking out subsection (f).

    (2) Section 1503(c) of such title is amended--
            (A) in paragraph (1), by striking out ``one individual 
        described in paragraph (2)'' and inserting in lieu thereof ``one 
        military officer'';
            (B) by striking out paragraph (2); and
            (C) by redesignating paragraphs (3) and (4) as paragraphs 
        (2) and (3), respectively.

    (3) Section 1504(d) of such title is amended--
            (A) by striking out the text of paragraph (1) and inserting 
        in lieu thereof the following new text: ``A board appointed 
        under this section shall be composed of at least three members 
        who are officers having the grade of major or lieutenant 
        commander or above.''; and
            (B) in paragraph (4), by striking out ``section 1503(c)(4)'' 
        and inserting in lieu thereof ``section 1503(c)(3)''.

    (4) Paragraph (1) of section 1513 of such title is amended to read 
as follows:
            ``(1) The term `missing person' means a member of the armed 
        forces on active duty who is in a missing status.''.

    (b) Report on Preliminary Assessment of Status.--(1) Section 1502 of 
such title is amended--
            (A) in subsection (a)(2)--
                    (i) by striking out ``48 hours'' and inserting in 
                lieu thereof ``10 days''; and
                    (ii) by striking out ``theater component commander 
                with jurisdiction over the missing person'' and 
                inserting in lieu thereof ``Secretary concerned'';
            (B) by striking out subsection (b);
            (C) by redesignating subsection (c) as subsection (b); and
            (D) in subsection (b), as so redesignated, by striking out 
        the second sentence.

    (2) Section 1503(a) of such title is amended by striking out 
``section 1502(b)'' and inserting in lieu thereof ``section 1502(a)''.
    (3) Section 1513 of such title is amended by striking out paragraph 
(8).
    (c) Frequency of Subsequent Reviews.--Subsection (b) of section 1505 
of such title is amended to read as follows:
    ``(b) Frequency of Subsequent Reviews.--The Secretary concerned 
shall conduct inquiries into the whereabouts and status of a person 
under subsection (a) upon receipt of information that

[[Page 110 STAT. 2537]]

may result in a change of status of the person. The Secretary concerned 
shall appoint a board to conduct such inquiries.''.
    (d) Repeal of Statutory Penalties for Wrongful Withholding of 
Information.--Section 1506 of such title is amended--
            (1) by striking out subsection (e); and
            (2) by redesignating subsection (f) as subsection (e).

    (e) Information To Accompany Recommendation of Status of Death.--
Section 1507(b) of such title is amended by striking out paragraphs (3) 
and (4).
    (f) Scope of Preenactment Review.--(1) Section 1509 of such title is 
amended--
            (A) by striking out subsection (c); and
            (B) by redesignating subsection (d) as subsection (c).

    (2)(A) The heading of such section is amended by striking out ``, 
special interest''.
    (B) The item relating to such section in the table of sections at 
the beginning of chapter 76 of such title is amended by striking out ``, 
special interest''.

       Subtitle I--Commissioned Corps of the Public Health Service

SEC. 581. APPLICABILITY TO PUBLIC HEALTH SERVICE OF PROHIBITION ON 
                        CREDITING CADET OR MIDSHIPMEN SERVICE AT 
                        THE SERVICE ACADEMIES.

    (a) Prohibition on Counting Enlisted Service Performed While at 
Service Academy.--Subsection (a) of section 971 of title 10, United 
States Code, is amended by inserting before the period at the end the 
following: ``or an officer in the Commissioned Corps of the Public 
Health Service''.
    (b) Prohibition on Counting Service as a Cadet or Midshipman.--
Subsection (b) of such section is amended to read as follows:
    ``(b) Prohibition on Counting Service as a Cadet or Midshipman.--In 
computing length of service for any purpose, service as a cadet or 
midshipman may not be credited to any of the following officers:
            ``(1) An officer of the Navy or Marine Corps.
            ``(2) A commissioned officer of the Army or Air Force.
            ``(3) An officer of the Coast Guard.
            ``(4) An officer in the commissioned corps of the Public 
        Health Service.''.

    (c) Technical Amendments.--(1) Such section is further amended by 
adding at the end the following new subsection:
    ``(c) Service as a Cadet or Midshipman Defined.--In this section, 
the term `service as a cadet or midshipman' means--
            ``(1) service as a cadet at the United States Military 
        Academy, United States Air Force Academy, or United States Coast 
        Guard Academy; or
            ``(2) service as a midshipman at the United States Naval 
        Academy.''.

    (2) Subsection (a) of such section is further amended--
            (A) by inserting ``Prohibition on Counting Enlisted Service 
        Performed While at Service Academy or in Naval Reserve.--'' 
        after ``(a)''; and

[[Page 110 STAT. 2538]]

            (B) by striking out ``while also serving'' and all that 
        follows through ``Naval Academy or'' and inserting in lieu 
        thereof ``while also performing service as a cadet or midshipman 
        or serving as a midshipman''.

    (3) The heading of such section, and the item relating to such 
section in the table of sections at the beginning of chapter 49 of such 
title, are amended by striking out the seventh word.
SEC. 582. EXCEPTION TO STRENGTH LIMITATIONS FOR PUBLIC HEALTH 
                        SERVICE OFFICERS ASSIGNED TO THE 
                        DEPARTMENT OF DEFENSE.

    Section 206 of the Public Health Service Act (42 U.S.C. 207) is 
amended by adding at the end the following new subsection:
    ``(f) In computing the maximum number of commissioned officers of 
the Public Health Service authorized by law or administrative 
determination to serve on active duty, there may be excluded from such 
computation officers who are assigned to duty in the Department of 
Defense.''.
SEC. 583. AUTHORITY TO PROVIDE LEGAL ASSISTANCE TO PUBLIC HEALTH 
                        SERVICE OFFICERS.

    (a) Legal Assistance Available.--Subsection (a) of section 1044 of 
title 10, United States Code, is amended by striking out paragraph (3) 
and inserting in lieu thereof the following:
            ``(3) Officers of the commissioned corps of the Public 
        Health Service who are on active duty or entitled to retired or 
        equivalent pay.
            ``(4) Dependents of members and former members described in 
        paragraphs (1), (2), and (3).''.

    (b) Limitation on Assistance.--Subsection (c) of such section is 
amended--
            (1) by striking out ``armed forces'' and inserting in lieu 
        thereof ``uniformed services described in subsection (a)''; and
            (2) by inserting ``such'' after ``dependent of''.

    (c) Clarifying Amendments.--Subsection (a) of such section is 
further amended by striking out ``under his jurisdiction'' in paragraphs 
(1) and (2).
    (d) Stylistic Amendments.--Subsection (a) of such section is further 
amended--
            (1) in the matter preceding paragraph (1), by striking out 
        ``to--'' and inserting in lieu thereof ``to the following 
        persons:'';
            (2) by capitalizing the first letter of the first word of 
        paragraphs (1) and (2);
            (3) by striking out the semicolon at the end of paragraph 
        (1) and inserting in lieu thereof a period; and
            (4) by striking out ``; and'' at the end of paragraph (2) 
        and inserting in lieu thereof a period.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Military pay raise for fiscal year 1997.
Sec. 602. Adjustment of rate of cadet and midshipman pay.
Sec. 603. Pay of senior noncommissioned officers while hospitalized.
Sec. 604. Availability of basic allowance for quarters for certain 
                    members without dependents who serve on sea duty.

[[Page 110 STAT. 2539]]

Sec. 605. Uniform applicability of discretion to deny an election not to 
                    occupy Government quarters.
Sec. 606. Establishment of minimum monthly amount of variable housing 
                    allowance for high housing cost areas.
Sec. 607. Family separation allowance for members separated by military 
                    orders from spouses who are members.
Sec. 608. Waiver of time limitations for claim for pay and allowances.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay 
                    authorities for Reserve forces.
Sec. 612. One-year extension of certain bonuses and special pay 
                    authorities for nurse officer candidates, registered 
                    nurses, and nurse anesthetists.
Sec. 613. One-year extension of authorities relating to payment of other 
                    bonuses and special pays.
Sec. 614. Special pay for certain Public Health Service officers.
Sec. 615. Special incentives to recruit and retain dental officers.
Sec. 616. Foreign language proficiency pay for Public Health Service and 
                    National Oceanic and Atmospheric Administration 
                    officers.

            Subtitle C--Travel and Transportation Allowances

Sec. 621. Allowance in connection with shipping motor vehicle at 
                    Government expense.
Sec. 622. Dislocation allowance at a rate equal to two and one-half 
                    months basic allowance for quarters.
Sec. 623. Allowance for travel performed in connection with leave 
                    between consecutive overseas tours.
Sec. 624. Funding for transportation of household effects of Public 
                    Health Service officers.

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

Sec. 631. Effective date for military retiree cost-of-living adjustment 
                    for fiscal year 1998.
Sec. 632. Clarification of initial computation of retiree COLAs after 
                    retirement.
Sec. 633. Suspension of payment of retired pay of members who are absent 
                    from the United States to avoid prosecution.
Sec. 634. Nonsubstantive restatement of Survivor Benefit Plan statute.
Sec. 635. Increases in Survivor Benefit Plan contributions to be 
                    effective concurrently with payment of retired pay 
                    cost-of-living increases.
Sec. 636. Amendments to the Uniformed Services Former Spouses' 
                    Protection Act.
Sec. 637. Prevention of circumvention of court order by waiver of 
                    retired pay to enhance civil service retirement 
                    annuity.
Sec. 638. Administration of benefits for so-called minimum income 
                    widows.

                        Subtitle E--Other Matters

Sec. 651. Discretionary allotment of pay, including retired or retainer 
                    pay.
Sec. 652. Reimbursement for adoption expenses incurred in adoptions 
                    through private placements.
Sec. 653. Waiver of recoupment of amounts withheld for tax purposes from 
                    certain separation pay.
Sec. 654. Technical correction clarifying limitation on furnishing 
                    clothing or allowances for enlisted National Guard 
                    technicians.
Sec. 655. Technical correction to prior authority for payment of back 
                    pay to certain persons.
Sec. 656. Compensation for persons awarded prisoner of war medal who did 
                    not previously receive compensation as a prisoner of 
                    war.
Sec. 657. Payments to certain persons captured and interned by North 
                    Vietnam.

                     Subtitle A--Pay and Allowances

SEC. 601. <<NOTE: 37 USC 1009 note.>>  MILITARY PAY RAISE FOR FISCAL 
            YEAR 1997.

    (a) Waiver of Section 1009 Adjustment.--Any adjustment required by 
section 1009 of title 37, United States Code, in elements of 
compensation of members of the uniformed services to become effective 
during fiscal year 1997 shall not be made.
    (b) <<NOTE: Effective date.>>  Increase in Basic Pay and BAS.--
Effective on January 1, 1997, the rates of basic pay and basic allowance 
for subsistence of members of the uniformed services are increased by 
3.0 percent.

[[Page 110 STAT. 2540]]

    (c) <<NOTE: Effective date.>>  Increase in BAQ.--Effective on 
January 1, 1997, the rates of basic allowance for quarters of members of 
the uniformed services are increased by 4.6 percent.

SEC. 602. ADJUSTMENT OF RATE OF CADET AND MIDSHIPMAN PAY.

    Section 203(c) of title 37, United States Code, is amended--
            (1) by striking out paragraph (2); and
            (2) in paragraph (1), by striking out ``(1)''.
SEC. 603. PAY OF SENIOR NONCOMMISSIONED OFFICERS WHILE 
                        HOSPITALIZED.

    (a) Pay During Hospitalization.--Section 210 of title 37, United 
States Code, is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b) A noncommissioned officer of an armed force who is 
hospitalized and who, during or immediately before such hospitalization, 
completed service as the senior enlisted member of that armed force, 
shall continue to be entitled, for not more than 180 days while so 
hospitalized, to the rate of basic pay authorized for the senior 
enlisted member of that armed force.''.
    (b) Clerical Amendments.--(1) The heading of such section is amended 
to read as follows:

``Sec. 210. Pay of senior enlisted members during terminal leave and 
                        while hospitalized''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 3 of title 37, United States Code, is amended 
to read as follows:

``210. Pay of senior enlisted members during terminal leave and while 
           hospitalized.''.

SEC. 604. AVAILABILITY OF BASIC ALLOWANCE FOR QUARTERS FOR CERTAIN 
            MEMBERS WITHOUT DEPENDENTS WHO SERVE ON SEA DUTY.

    (a) Entitlement of Single Members Above Grade E-5.--Section 
403(c)(2) of title 37, United States Code, is amended--
            (1) by striking out ``A member'' in the first sentence and 
        inserting in lieu thereof ``(A) Except as provided in 
        subparagraphs (B) and (C), a member''; and
            (2) by striking out the second sentence.

    (b) Entitlement of Certain Single Members in Grade E-5.--Such 
section is further amended by adding at the end the following new 
subparagraph:
    ``(B) <<NOTE: Regulations.>>  Under regulations prescribed by the 
Secretary concerned, the Secretary may authorize the payment of a basic 
allowance for quarters to a member of a uniformed service without 
dependents who is serving in pay grade E-5 and is assigned to sea duty. 
In prescribing regulations under this subparagraph, the Secretary 
concerned shall consider the availability of quarters for members 
serving in pay grade E-5.''.

    (c) Entitlement When Both Spouses in Grades Below Grade E-6 Are 
Assigned to Sea Duty.--Such section is further amended by inserting 
after subparagraph (B), as added by subsection (b), the following new 
subparagraph:
    ``(C) Notwithstanding section 421 of this title, two members of the 
uniformed services in a pay grade below pay grade 

[[Page 110 STAT. 2541]]

E-6 who are married to each other, have no other dependents, and are 
simultaneously assigned to sea duty are jointly entitled to one basic 
allowance for quarters during the period of such simultaneous sea duty. 
The amount of the allowance shall be based on the without dependents 
rate for the pay grade of the senior member of the couple. However, this 
subparagraph shall not apply to a couple if one or both of the members 
are entitled to a basic allowance for quarters under subparagraph 
(B).''.
    (d) Conforming Amendment Regarding Variable Housing Allowance.--
Section 403a(b)(2)(C) of title 37, United States Code, is amended by 
striking out ``E-6'' and inserting in lieu thereof ``E-4''.
    (e) <<NOTE: 37 USC 403 note.>>  Effective Date.--The amendments made 
by this section shall take effect on July 1, 1997.
SEC. 605. UNIFORM APPLICABILITY OF DISCRETION TO DENY AN ELECTION 
                        NOT TO OCCUPY GOVERNMENT QUARTERS.

    Section 403(b)(3) of title 37, United States Code, is amended by 
striking out ``A member'' and inserting in lieu thereof ``Subject to the 
provisions of subsection (j), a member''.
SEC. 606. ESTABLISHMENT OF MINIMUM MONTHLY AMOUNT OF VARIABLE 
                        HOUSING ALLOWANCE FOR HIGH HOUSING COST 
                        AREAS.

    (a) Minimum Monthly Amount of Allowance.--Subsection (c) of section 
403a of title 37, United States Code, is amended by striking out 
paragraph (1) and inserting in lieu thereof the following new paragraph:
    ``(1) The monthly amount of a variable housing allowance under this 
section for a member of a uniformed service with respect to an area is 
equal to the greater of the following amounts:
            ``(A) An amount equal to the difference between--
                    ``(i) the median monthly cost of housing in that 
                area for members of the uniformed services serving in 
                the same pay grade and with the same dependency status 
                as that member; and
                    ``(ii) 80 percent of the median monthly cost of 
                housing in the United States for members of the 
                uniformed services serving in the same pay grade and 
                with the same dependency status as that member.
            ``(B) An amount equal to the difference between--
                    ``(i) the adequate housing allowance floor 
                determined by the Secretary of Defense for all members 
                of the uniformed services in that area entitled to a 
                variable housing allowance under this section; and
                    ``(ii) the monthly basic allowance for quarters for 
                members of the uniformed services serving in the same 
                pay grade and with the same dependency status as that 
                member.''.

    (b) Adequate Housing Allowance Floor.--Such subsection is further 
amended by adding at the end the following new paragraph:
    ``(7)(A) For purposes of paragraph (1)(B)(i), the Secretary of 
Defense shall establish an adequate housing allowance floor for members 
of the uniformed services in an area as a selected percentage, not to 
exceed 85 percent, of the cost of adequate housing in that area based on 
an index of housing costs selected by the Secretary of Defense from 
among the following:

[[Page 110 STAT. 2542]]

            ``(i) The fair market rentals established annually by the 
        Secretary of Housing and Urban Development under section 8(c)(1) 
        of the United States Housing Act of 1937 (42 U.S.C. 
        1437f(c)(1)).
            ``(ii) An index developed in the private sector that the 
        Secretary of Defense determines is comparable to the fair market 
        rentals referred to in clause (i) and is appropriate for use to 
        determine the adequate housing allowance floor.

    ``(B) The Secretary of Defense shall carry out this paragraph in 
consultation with the Secretary of Transportation, the Secretary of 
Commerce, and the Secretary of Health and Human Services.''.
    (c) Effect on Total Amount Available for Allowance.--Subsection 
(d)(3) of such section is amended in the second sentence by striking out 
``the second sentence of subsection (c)(3)'' and inserting in lieu 
thereof ``paragraph (1)(B) of subsection (c) and the second sentence of 
paragraph (3) of that subsection''.
    (d) Conforming Amendments.--Subsection (c) of such section is 
further amended--
            (1) in paragraph (3), by striking out ``this subsection'' in 
        the first sentence and inserting in lieu thereof ``paragraph 
        (1)(A) or the minimum amount of a variable housing allowance 
        under paragraph (1)(B)''; and
            (2) in paragraph (5), by inserting ``or minimum amount of a 
        variable housing allowance'' after ``costs of housing''.

    (e) <<NOTE: Federal Register, publication. 37 USC 403a note.>>  
Effective Date.--The amendments made by this section shall take effect 
on January 1, 1997, except that the Secretary of Defense may delay 
implementation of the requirements imposed by the amendments to such 
later date as the Secretary considers appropriate upon publication of 
notice to that effect in the Federal Register.
SEC. 607. FAMILY SEPARATION ALLOWANCE FOR MEMBERS SEPARATED BY 
                        MILITARY ORDERS FROM SPOUSES WHO ARE 
                        MEMBERS.

    (a) Additional Basis for Allowance.--Paragraph (1) of section 427(b) 
of title 37, United States Code, is amended--
            (1) by striking out ``or'' at the end of subparagraph (B);
            (2) by striking out the period at the end of subparagraph 
        (C) and inserting in lieu thereof ``; or''; and
            (3) by adding at the end the following new subparagraph:
            ``(D) the member is married to a member of a uniformed 
        service, the member has no dependent other than the spouse, the 
        two members are separated by reason of the execution of military 
        orders, and the two members were residing together immediately 
        before being separated by reason of execution of military 
        orders.''.

    (b) Conforming Amendment.--Such section is further amended by adding 
at the end the following new paragraph:
    ``(5) Section 421 of this title does not apply to bar an entitlement 
to an allowance under paragraph (1)(D). However, not more than one 
monthly allowance may be paid with respect to a married couple under 
paragraph (1)(D) for any month.''.
SEC. 608. WAIVER OF TIME LIMITATIONS FOR CLAIM FOR PAY AND 
                        ALLOWANCES.

    Section 3702 of title 31, United States Code, is amended by adding 
at the end the following new subsection:

[[Page 110 STAT. 2543]]

    ``(e)(1) Upon the request of the Secretary concerned (as defined in 
section 101 of title 37, United States Code), the Comptroller General 
may waive the time limitations set forth in subsection (b) or (c) in the 
case of a claim for pay or allowances provided under title 37 and, 
subject to paragraph (2), settle the claim.
    ``(2) Payment of a claim settled under paragraph (1) shall be 
subject to the availability of appropriations for payment of that 
particular claim.
    ``(3) This subsection does not apply to a claim in excess of 
$25,000.''.

           Subtitle B--Bonuses and Special and Incentive Pays

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

    (a) Special Pay for Critically Short Wartime Health Specialists.--
Section 302g(f) of title 37, United States Code, is amended by striking 
out ``September 30, 1997'' and inserting in lieu thereof ``September 30, 
1998''.
    (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) of title 
37, United States Code, is amended by striking out ``September 30, 
1997'' and inserting in lieu thereof ``September 30, 1998''.
    (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of title 37, 
United States Code, is amended by striking out ``September 30, 1997'' 
and inserting in lieu thereof ``September 30, 1998''.
    (d) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of title 37, United States Code, is 
amended by striking out ``September 30, 1997'' and inserting in lieu 
thereof ``September 30, 1998''.
    (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of title 
37, United States Code, is amended by striking out ``September 30, 
1997'' and inserting in lieu thereof ``September 30, 1998''.
    (f) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(g) of title 37, United States Code, is amended by striking out 
``September 30, 1997'' and inserting in lieu thereof ``September 30, 
1998''.
    (g) Prior Service Enlistment Bonus.--Section 308i(i) of title 37, 
United States Code, is amended by striking out ``September 30, 1997'' 
and inserting in lieu thereof ``September 30, 1998''.
SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY 
                        AUTHORITIES FOR NURSE OFFICER CANDIDATES, 
                        REGISTERED NURSES, AND NURSE ANESTHETISTS.

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking out ``September 
30, 1997'' and inserting in lieu thereof ``September 30, 1998''.
    (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking out ``September 30, 
1997'' and inserting in lieu thereof ``September 30, 1998''.
    (c) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of title 37, United States Code, is amended by striking out 
``September 30, 1997'' and inserting in lieu thereof ``September 30, 
1998''.

[[Page 110 STAT. 2544]]

SEC. 613. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF 
                        OTHER BONUSES AND SPECIAL PAYS.

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking out ``September 30, 1997'' 
and inserting in lieu thereof ``September 30, 1998,''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) of title 
37, United States Code, is amended by striking out ``September 30, 
1997'' and inserting in lieu thereof ``September 30, 1998''.
    (c) Enlistment Bonuses for Critical Skills.--Sections 308a(c) and 
308f(c) of title 37, United States Code, are each amended by striking 
out ``September 30, 1997'' and inserting in lieu thereof ``September 30, 
1998''.
    (d) Special Pay for Nuclear Qualified Officers Extending Period of 
Active Service.--Section 312(e) of title 37, United States Code, is 
amended by striking out ``September 30, 1997'' and inserting in lieu 
thereof ``September 30, 1998''.
    (e) Nuclear Career Accession Bonus.--Section 312b(c) of title 37, 
United States Code, is amended by striking out ``September 30, 1997'' 
and inserting in lieu thereof ``September 30, 1998''.
    (f) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of title 
37, United States Code, is amended by striking out ``October 1, 1997'' 
and inserting in lieu thereof ``October 1, 1998''.
    (g) Repayment of Education Loans for Certain Health Professionals 
Who Serve in the Selected Reserve.--Section 16302(d) of title 10, United 
States Code, is amended by striking out ``October 1, 1997'' and 
inserting in lieu thereof ``October 1, 1998''.
SEC. 614. SPECIAL PAY FOR CERTAIN PUBLIC HEALTH SERVICE OFFICERS.

    (a) Optometrists.--Section 302a(b) of title 37, United States Code, 
is amended--
            (1) in paragraph (2)--
                    (A) by striking out ``an armed force'' in the matter 
                preceding subparagraph (A) and inserting in lieu thereof 
                ``a uniformed service''; and
                    (B) by striking out ``of the military department'' 
                in subparagraph (C); and
            (2) in paragraph (4), by striking out ``of the military 
        department''.

    (b) Nonphysician Health Care Providers.--Section 302c(d) of title 
37, United States Code, is amended--
            (1) in the matter preceding paragraph (1), by striking out 
        ``Secretary of Defense'' and inserting in lieu thereof 
        ``Secretary concerned''; and
            (2) in paragraph (1)--
                    (A) by striking out ``or'' the third place it 
                appears; and
                    (B) by inserting before the period at the end the 
                following: ``, or an officer in the Regular or Reserve 
                Corps of the Public Health Service''.

[[Page 110 STAT. 2545]]

SEC. 615. SPECIAL INCENTIVES TO RECRUIT AND RETAIN DENTAL 
                        OFFICERS.

    (a) Variable, Additional, and Board Certified Special Pays for 
Active Duty Dental Officers.--Section 302b(a) of title 37, United States 
Code, is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A), by striking out ``$1,200'' 
                and inserting in lieu thereof ``$3,000'';
                    (B) in subparagraph (B), by striking out ``$2,000'' 
                and inserting in lieu thereof ``$7,000''; and
                    (C) in subparagraph (C), by striking out ``$4,000'' 
                and inserting in lieu thereof ``$7,000'';
            (2) in paragraph (4), by striking out subparagraphs (A), 
        (B), and (C) and inserting in lieu thereof the following:
            ``(A) $4,000 per year, if the officer has less than three 
        years of creditable service.
            ``(B) $6,000 per year, if the officer has at least three but 
        less than 14 years of creditable service.
            ``(C) $8,000 per year, if the officer has at least 14 but 
        less than 18 years of creditable service.
            ``(D) $10,000 per year, if the officer has at least 18 or 
        more years of creditable service.''; and
            (3) in paragraph (5), by striking out subparagraphs (A), 
        (B), and (C) and inserting in lieu thereof the following:
            ``(A) $2,500 per year, if the officer has less than 10 years 
        of creditable service.
            ``(B) $3,500 per year, if the officer has at least 10 but 
        less than 12 years of creditable service.
            ``(C) $4,000 per year, if the officer has at least 12 but 
        less than 14 years of creditable service.
            ``(D) $5,000 per year, if the officer has at least 14 but 
        less than 18 years of creditable service.
            ``(E) $6,000 per year, if the officer has 18 or more years 
        of creditable service.''.

    (b) Reserve Dental Officers Special Pay.--Section 302b of title 37, 
United States Code, is amended by adding at the end the following new 
subsection:
    ``(h) Reserve Dental Officers Special Pay.--(1) A reserve dental 
officer described in paragraph (2) is entitled to special pay at the 
rate of $350 a month for each month of active duty, including active 
duty in the form of annual training, active duty for training, and 
active duty for special work.
    ``(2) A reserve dental officer referred to in paragraph (1) is a 
reserve officer who--
            ``(A) is an officer of the Dental Corps of the Army or the 
        Navy or an officer of the Air Force designated as a dental 
        officer; and
            ``(B) is on active duty under a call or order to active duty 
        for a period of less than one year.''.

    (c) Accession Bonus for Dental School Graduates Who Enter the Armed 
Forces.--(1) Chapter 5 of title 37, United States Code, is amended by 
inserting after section 302g the following new section:

``Sec. 302h. Special pay: accession bonus for dental officers

    ``(a) Accession Bonus Authorized.--(1) A person who is a graduate of 
an accredited dental school and who, during the period

[[Page 110 STAT. 2546]]

beginning on the date of the enactment of this section, and ending on 
September 30, 2002, executes a written agreement described in subsection 
(c) to accept a commission as an officer of the armed forces and remain 
on active duty for a period of not less than four years may, upon the 
acceptance of the agreement by the Secretary concerned, be paid an 
accession bonus in an amount determined by the Secretary concerned.
    ``(2) The amount of an accession bonus under paragraph (1) may not 
exceed $30,000.
    ``(b) Limitation on Eligibility for Bonus.--A person may not be paid 
a bonus under subsection (a) if--
            ``(1) the person, in exchange for an agreement to accept an 
        appointment as an officer, received financial assistance from 
        the Department of Defense to pursue a course of study in 
        dentistry; or
            ``(2) the Secretary concerned determines that the person is 
        not qualified to become and remain certified and licensed as a 
        dentist.

    ``(c) Agreement.--The agreement referred to in subsection (a) shall 
provide that, consistent with the needs of the armed service concerned, 
the person executing the agreement will be assigned to duty, for the 
period of obligated service covered by the agreement, as an officer of 
the Dental Corps of the Army or the Navy or an officer of the Air Force 
designated as a dental officer.
    ``(d) Repayment.--(1) An officer who receives a payment under 
subsection (a) and who fails to become and remain certified or licensed 
as a dentist during the period for which the payment is made shall 
refund to the United States an amount equal to the full amount of such 
payment.
    ``(2) An officer who voluntarily terminates service on active duty 
before the end of the period agreed to be served under subsection (a) 
shall refund to the United States an amount that bears the same ratio to 
the amount paid to the officer as the unserved part of such period bears 
to the total period agreed to be served.
    ``(3) An obligation to reimburse the United States imposed under 
paragraph (1) or (2) is for all purposes a debt owed to the United 
States.
    ``(4) A discharge in bankruptcy under title 11 that is entered less 
than five years after the termination of an agreement under this section 
does not discharge the person signing such agreement from a debt arising 
under such agreement or this subsection. This paragraph applies to any 
case commenced under title 11 after the date of the enactment of this 
section.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 302g the 
following new item:

``302h. Special pay: accession bonus for dental officers.''.

    (3) Section 303a of title 37, United States Code, is amended by 
striking out ``302g'' each place it appears and inserting in lieu 
thereof ``302h''.
    (d) Report on Additional Activities To Increase Recruitment of 
Dentists.--Not later than April 1, 1997, the Secretary of Defense shall 
submit to Congress a report describing the feasibility of increasing the 
number of persons enrolled in the Armed Forces Health Professions 
Scholarship and Financial Assistance program who are pursuing a course 
of study in dentistry in anticipation of service as an officer of the 
Dental Corps of the Army

[[Page 110 STAT. 2547]]

or the Navy or an officer of the Air Force designated as a dental 
officer.
    (e) Stylistic Amendments.--Section 302b of title 37, United States 
Code, is amended--
            (1) in subsection (a), by inserting ``Variable, Additional, 
        and Board Certification Special Pay.--'' after ``(a)'';
            (2) in subsection (b), by inserting ``Active-Duty 
        Agreement.--'' after ``(b)'';
            (3) in subsection (c), by inserting ``Regulations.--'' after 
        ``(c)'';
            (4) in subsection (d), by inserting ``Frequency of 
        Payments.--'' after ``(d)'';
            (5) in subsection (e), by inserting ``Refund for Period of 
        Unserved Obligated Service.--'' after ``(e)'';
            (6) in subsection (f), by inserting ``Effect of Discharge in 
        Bankruptcy.--'' after ``(f)''; and
            (7) in subsection (g), by inserting ``Determination of 
        Creditable Service.--'' after ``(g)''.
SEC. 616. FOREIGN LANGUAGE PROFICIENCY PAY FOR PUBLIC HEALTH 
                        SERVICE AND NATIONAL OCEANIC AND 
                        ATMOSPHERIC ADMINISTRATION OFFICERS.

    (a) Eligibility.--Subsection (a) of section 316 of title 37, United 
States Code, is amended--
            (1) in the matter preceding paragraph (1), by striking out 
        ``armed forces'' and inserting in lieu thereof ``uniformed 
        services'';
            (2) in paragraph (2)--
                    (A) by striking out ``Secretary of Defense'' and 
                inserting in lieu thereof ``Secretary concerned''; and
                    (B) by inserting ``or public health'' after 
                ``national defense''; and
            (3) in paragraph (3)--
                    (A) in subparagraph (A), by striking out 
                ``military'' and inserting in lieu thereof ``uniformed 
                services'';
                    (B) in subparagraph (C), by striking out 
                ``military''; and
                    (C) in subparagraph (D)--
                          (i) by striking out ``Department of Defense'' 
                      and inserting in lieu thereof ``uniformed 
                      service''; and
                          (ii) by striking out ``Secretary of Defense'' 
                      and inserting in lieu thereof ``Secretary 
                      concerned''.

    (b) Administration.--Subsection (d) of such section is amended--
            (1) by striking out ``his jurisdiction and'' and inserting 
        in lieu thereof ``the jurisdiction of the Secretary,''; and
            (2) by inserting before the period at the end the following: 
        ``, by the Secretary of Health and Human Services for the 
        Commissioned Corps of the Public Health Service, and by the 
        Secretary of Commerce for the National Oceanic and Atmospheric 
        Administration''.

    (c) <<NOTE: Applicability. 37 USC 316 note.>>  Effective Date.--The 
amendments made by this section shall take effect on October 1, 1996, 
and apply with respect to months beginning on or after such date.

[[Page 110 STAT. 2548]]

            Subtitle C--Travel and Transportation Allowances

SEC. 621. ALLOWANCE IN CONNECTION WITH SHIPPING MOTOR VEHICLE AT 
                        GOVERNMENT EXPENSE.

    (a) Allowance Authorized.--Section 406(b)(1)(B) of title 37, United 
States Code, is amended by adding at the end the following: ``If clause 
(i)(I) applies to the transportation by the member of a motor vehicle 
from the old duty station, the monetary allowance under this 
subparagraph shall also cover return travel to the old duty station by 
the member or other person transporting the vehicle. In the case of 
transportation described in clause (ii), the monetary allowance shall 
also cover travel from the new duty station to the port of debarkation 
to pick up the vehicle.''.
    (b) <<NOTE: 37 USC 406 note.>>  Effective Date.--The amendment made 
by subsection (a) shall take effect on January 1, 1997.
SEC. 622. DISLOCATION ALLOWANCE AT A RATE EQUAL TO TWO AND ONE-
                        HALF MONTHS BASIC ALLOWANCE FOR QUARTERS.

    (a) Allowance Authorized.--Section 407(a) of title 37, United States 
Code, is amended in the matter preceding paragraph (1) by striking out 
``two months'' and inserting in lieu thereof ``two and one-half 
months''.
    (b) <<NOTE: 37 USC 407 note.>>  Effective Date.--The amendment made 
by subsection (a) shall take effect on January 1, 1997.
SEC. 623. ALLOWANCE FOR TRAVEL PERFORMED IN CONNECTION WITH LEAVE 
                        BETWEEN CONSECUTIVE OVERSEAS TOURS.

    (a) Authority for Additional Deferral of Travel.--Section 411b(a)(2) 
of title 37, United States Code, is amended by adding at the end the 
following: ``If the member is unable to undertake the travel before the 
end of such one-year period as a result of duty in connection with a 
contingency operation, the member may defer the travel for one 
additional year beginning on the date the duty of the member in 
connection with the contingency operation ends.''.
    (b) <<NOTE: 37 USC 411b note.>>  Effective Date.--The amendment made 
by subsection (a) shall take effect as of November 1, 1995.
SEC. 624. FUNDING FOR TRANSPORTATION OF HOUSEHOLD EFFECTS OF 
                        PUBLIC HEALTH SERVICE OFFICERS.

    Section 406(j) of title 37, United States Code, is amended--
            (1) in the first sentence of paragraph (1)--
                    (A) by striking out ``Appropriations available'' and 
                all that follows through ``to a member'' and inserting 
                in lieu thereof ``The Secretary concerned may pay a 
                monetary allowance to a member of the armed forces or a 
                member of the Commissioned Corps of the Public Health 
                Service''; and
                    (B) by striking out ``of the military department''; 
                and
            (2) by adding at the end the following new paragraph:

    ``(3) Appropriations available to the Department of Defense for 
providing transportation of household effects of members of the armed 
forces under subsection (b) shall be available to pay the monetary 
allowance authorized under paragraph (1) to such members. Appropriations 
available to the Department of Health

[[Page 110 STAT. 2549]]

and Human Services for providing transportation of household effects of 
members of the Commissioned Corps of the Public Health Service under 
subsection (b) shall be available to pay the monetary allowance 
authorized under paragraph (1) to such members.''.

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

SEC. 631. EFFECTIVE DATE FOR MILITARY RETIREE COST-OF-LIVING 
                        ADJUSTMENT FOR FISCAL YEAR 1998.

    (a) Repeal of Adjustment of Effective Date for Fiscal Year 1998.--
Section 1401a(b)(2)(B) of title 10, United States Code, is amended--
            (1) by striking out ``(B) Special rules'' and all that 
        follows through ``In the case of'' in clause
(i) and inserting in lieu thereof ``(B) Special rule for fiscal year 
1996.--In the case of''; and
            (2) by striking out clause (ii).

    (b) Repeal of Contingent Alternative Date for Fiscal Year 1998.--
Section 631 of the National Defense Authorization Act for Fiscal Year 
1996 (Public Law 104-106; <<NOTE: 10 USC 1401a note.>>  110 Stat. 364) 
is amended by striking out subsection (b).
SEC. 632. CLARIFICATION OF INITIAL COMPUTATION OF RETIREE COLAS 
                        AFTER RETIREMENT.

    (a) In General.--Section 1401a of title 10, United States Code, is 
amended by striking out subsections (c) and (d) and inserting in lieu 
thereof the following new subsections:
    ``(c) First COLA Adjustment for Members With Retired Pay Computed 
Using Final Basic Pay.--
            ``(1) First adjustment with intervening increase in basic 
        pay.--Notwithstanding subsection (b), if a person described in 
        paragraph (3) becomes entitled to retired pay based on rates of 
        monthly basic pay that became effective after the last day of 
        the calendar quarter of the base index, the retired pay of the 
        member or former member shall be increased on the effective date 
        of the next adjustment of retired pay under subsection (b) only 
        by the percent (adjusted to the nearest one-tenth of 1 percent) 
        by which--
                    ``(A) the price index for the base quarter of that 
                year, exceeds
                    ``(B) the price index for the calendar quarter 
                immediately before the calendar quarter in which the 
                rates of monthly basic pay on which the retired pay is 
                based became effective.
            ``(2) First adjustment with no intervening increase in basic 
        pay.--If a person described in paragraph (3) becomes entitled to 
        retired pay on or after the effective date of an adjustment in 
        retired pay under subsection (b) but before the effective date 
        of the next increase in the rates of monthly basic pay, the 
        retired pay of the member or former member shall be increased, 
        effective on the date the member becomes entitled to that pay, 
        by the percent (adjusted to the nearest one-tenth of 1 percent) 
        by which--
                    ``(A) the base index, exceeds

[[Page 110 STAT. 2550]]

                    ``(B) the price index for the calendar quarter 
                immediately before the calendar quarter in which the 
                rates of monthly basic pay on which the retired pay is 
                based became effective.
            ``(3) Members covered.--Paragraphs (1) and (2) apply to a 
        member or former member of an armed force who first became a 
        member of a uniformed service before August 1, 1986, and whose 
        retired pay base is determined under section 1406 of this title.

    ``(d) First COLA Adjustment for Members With Retired Pay Computed 
Using High-Three.--Notwithstanding subsection (b), the retired pay of a 
member or former member of an armed force who first became a member of a 
uniformed service before August 1, 1986, and whose retired pay base is 
determined under section 1407 of this title shall be increased on the 
effective date of the first adjustment of retired pay under subsection 
(b) after the member or former member becomes entitled to retired pay by 
the percent (adjusted to the nearest one-tenth of 1 percent) equal to 
the difference between the percent by which--
            ``(1) the price index for the base quarter of that year, 
        exceeds
            ``(2) the price index for the calendar quarter immediately 
        before the calendar quarter during which the member became 
        entitled to retired pay.''.

    (b) <<NOTE: Applicability. 10 USC 1401a note.>>  Effective Date.--
The amendment made by subsection (a) shall apply only to adjustments of 
retired and retainer pay effective after the date of the enactment of 
this Act.
SEC. <<NOTE: 5 USC 8313 note.>>  633. SUSPENSION OF PAYMENT OF 
                        RETIRED PAY OF MEMBERS WHO ARE ABSENT FROM 
                        THE UNITED STATES TO AVOID PROSECUTION.

    (a) Development of Procedures for Suspension.--The Secretary of 
Defense shall develop uniform procedures under which the Secretary of a 
military department may suspend the payment of the retired pay of a 
member or former member of the Armed Forces during periods in which the 
member willfully remains outside the United States to avoid criminal 
prosecution or civil liability. The procedures shall address the types 
of criminal offenses and civil proceedings for which the procedures may 
be used, including the offenses specified in section 8312 of title 5, 
United States Code, and the manner by which a member, upon the return of 
the member to the United States, may obtain retired pay withheld during 
the member's absence.
    (b) Report to Congress.--The Secretary of Defense shall submit to 
Congress a report describing the procedures developed under subsection 
(a). The report shall include recommendations regarding changes to 
existing provisions of law (including section 8313 of title 5, United 
States Code) that the Secretary determines are necessary to fully 
implement the procedures.
    (c) Retired Pay Defined.--For purposes of this section, the term 
``retired pay'' means retired pay, retirement pay, retainer pay, or 
equivalent pay, payable under a statute to a member or former member of 
a uniformed service.
    (d) Effective Date.--The uniform procedures required by subsection 
(a) shall be developed not later than 30 days after the date of the 
enactment of this Act.

[[Page 110 STAT. 2551]]

SEC. 634. NONSUBSTANTIVE RESTATEMENT OF SURVIVOR BENEFIT PLAN 
                        STATUTE.

    Subchapter II of chapter 73 of title 10, United States Code, is 
amended to read as follows:

                 ``SUBCHAPTER II--SURVIVOR BENEFIT PLAN

``Sec.
``1447. Definitions.
``1448. Application of Plan.
``1449. Mental incompetency of member.
``1450. Payment of annuity: beneficiaries.
``1451. Amount of annuity.
``1452. Reduction in retired pay.
``1453. Recovery of amounts erroneously paid.
``1454. Correction of administrative errors.
``1455. Regulations.

``Sec. 1447. Definitions

    ``In this subchapter:
            ``(1) Plan.--The term `Plan' means the Survivor Benefit Plan 
        established by this subchapter.
            ``(2) Standard annuity.--The term `standard annuity' means 
        an annuity provided by virtue of eligibility under section 
        1448(a)(1)(A) of this title.
            ``(3) Reserve-component annuity.--The term `reserve-
        component annuity' means an annuity provided by virtue of 
        eligibility under section 1448(a)(1)(B) of this title.
            ``(4) Retired pay.--The term `retired pay' includes retainer 
        pay paid under section 6330 of this title.
            ``(5) Reserve-component retired pay.--The term `reserve-
        component retired pay' means retired pay under chapter 1223 of 
        this title (or under chapter 67 of this title as in effect 
        before the effective date of the Reserve Officer Personnel 
        Management Act).
            ``(6) Base amount.--The term `base amount' means the 
        following:
                    ``(A) Full amount under standard annuity.--In the 
                case of a person who dies after becoming entitled to 
                retired pay, such term means the amount of monthly 
                retired pay (determined without regard to any reduction 
                under section 1409(b)(2) of this title) to which the 
                person--
                          ``(i) was entitled when he became eligible for 
                      that pay; or
                          ``(ii) later became entitled by being advanced 
                      on the retired list, performing active duty, or 
                      being transferred from the temporary disability 
                      retired list to the permanent disability retired 
                      list.
                    ``(B) Full amount under reserve-component annuity.--
                In the case of a person who would have become eligible 
                for reserve-component retired pay but for the fact that 
                he died before becoming 60 years of age, such term means 
                the amount of monthly retired pay for which the person 
                would have been eligible--
                          ``(i) if he had been 60 years of age on the 
                      date of his death, for purposes of an annuity to 
                      become effective on the day after his death in 
                      accordance with a designation made under section 
                      1448(e) of this title; or

[[Page 110 STAT. 2552]]

                          ``(ii) upon becoming 60 years of age (if he 
                      had lived to that age), for purposes of an annuity 
                      to become effective on the 60th anniversary of his 
                      birth in accordance with a designation made under 
                      section 1448(e) of this title.
                    ``(C) Reduced amount.--Such term means any amount 
                less than the amount otherwise applicable under 
                subparagraph (A) or (B) with respect to an annuity 
                provided under the Plan but which is not less than $300 
                and which is designated by the person (with the 
                concurrence of the person's spouse, if required under 
                section 1448(a)(3) of this title) providing the annuity 
                on or before--
                          ``(i) the first day for which he becomes 
                      eligible for retired pay, in the case of a person 
                      providing a standard annuity, or
                          ``(ii) the end of the 90-day period beginning 
                      on the date on which he receives the notification 
                      required by section 12731(d) of this title that he 
                      has completed the years of service required for 
                      eligibility for reserve-component retired pay, in 
                      the case of a person providing a reserve-component 
                      annuity.
            ``(7) Widow.--The term `widow' means the surviving wife of a 
        person who, if not married to the person at the time he became 
        eligible for retired pay--
                    ``(A) was married to him for at least one year 
                immediately before his death; or
                    ``(B) is the mother of issue by that marriage.
            ``(8) Widower.--The term `widower' means the surviving 
        husband of a person who, if not married to the person at the 
        time she became eligible for retired pay--
                    ``(A) was married to her for at least one year 
                immediately before her death; or
                    ``(B) is the father of issue by that marriage.
            ``(9) Surviving spouse.--The term `surviving spouse' means a 
        widow or widower.
            ``(10) Former spouse.--The term `former spouse' means the 
        surviving former husband or wife of a person who is eligible to 
        participate in the Plan.
            ``(11) Dependent child.--
                    ``(A) In general.--The term `dependent child' means 
                a person who--
                          ``(i) is unmarried;
                          ``(ii) is (I) under 18 years of age, (II) at 
                      least 18, but under 22, years of age and pursuing 
                      a full-time course of study or training in a high 
                      school, trade school, technical or vocational 
                      institute, junior college, college, university, or 
                      comparable recognized educational institution, or 
                      (III) incapable of self support because of a 
                      mental or physical incapacity existing before the 
                      person's eighteenth birthday or incurred on or 
                      after that birthday, but before the person's 
                      twenty-second birthday, while pursuing such a 
                      full-time course of study or training; and
                          ``(iii) is the child of a person to whom the 
                      Plan applies, including (I) an adopted child, and 
                      (II) a stepchild, foster child, or recognized 
                      natural child who lived with that person in a 
                      regular parent-child relationship.

[[Page 110 STAT. 2553]]

                    ``(B) Special rules for college students.--For the 
                purpose of subparagraph (A), a child whose twenty-second 
                birthday occurs before July 1 or after August 31 of a 
                calendar year, and while regularly pursuing such a 
                course of study or training, is considered to have 
                become 22 years of age on the first day of July after 
                that birthday. A child who is a student is considered 
                not to have ceased to be a student during an interim 
                between school years if the interim is not more than 150 
                days and if the child shows to the satisfaction of the 
                Secretary of Defense that the child has a bona fide 
                intention of continuing to pursue a course of study or 
                training in the same or a different school during the 
                school semester (or other period into which the school 
                year is divided) immediately after the interim.
                    ``(C) Foster children.--A foster child, to qualify 
                under this paragraph as the dependent child of a person 
                to whom the Plan applies, must, at the time of the death 
                of that person, also reside with, and receive over one-
                half of his support from, that person, and not be cared 
                for under a social agency contract. The temporary 
                absence of a foster child from the residence of that 
                person, while a student as described in this paragraph, 
                shall not be considered to affect the residence of such 
                a foster child.
            ``(12) Court.--The term `court' has the meaning given that 
        term by section 1408(a)(1) of this title.
            ``(13) Court order.--
                    ``(A) In general.--The term `court order' means a 
                court's final decree of divorce, dissolution, or 
                annulment or a court ordered, ratified, or approved 
                property settlement incident to such a decree (including 
                a final decree modifying the terms of a previously 
                issued decree of divorce, dissolution, annulment, or 
                legal separation, or of a court ordered, ratified, or 
                approved property settlement agreement incident to such 
                previously issued decree).
                    ``(B) Final decree.--The term `final decree' means a 
                decree from which no appeal may be taken or from which 
                no appeal has been taken within the time allowed for the 
                taking of such appeals under the laws applicable to such 
                appeals, or a decree from which timely appeal has been 
                taken and such appeal has been finally decided under the 
                laws applicable to such appeals.
                    ``(C) Regular on its face.--The term `regular on its 
                face', when used in connection with a court order, means 
                a court order that meets the conditions prescribed in 
                section 1408(b)(2) of this title.

``Sec. 1448. Application of plan

    ``(a) General Rules for Participation in the Plan.--
            ``(1) Name of plan; eligible participants.--The program 
        established by this subchapter shall be known as the Survivor 
        Benefit Plan. The following persons are eligible to participate 
        in the Plan:
                    ``(A) Persons entitled to retired pay.
                    ``(B) Persons who would be eligible for reserve-
                component retired pay but for the fact that they are 
                under 60 years of age.

[[Page 110 STAT. 2554]]

            ``(2) Participants in the plan.--The Plan applies to the 
        following persons, who shall be participants in the Plan:
                    ``(A) Standard annuity participants.--A person who 
                is eligible to participate in the Plan under paragraph 
                (1)(A) and who is married or has a dependent child when 
                he becomes entitled to retired pay, unless he elects 
                (with his spouse's concurrence, if required under 
                paragraph (3)) not to participate in the Plan before the 
                first day for which he is eligible for that pay.
                    ``(B) Reserve-component annuity participants.--A 
                person who (i) is eligible to participate in the Plan 
                under paragraph (1)(B), (ii) is married or has a 
                dependent child when he is notified under section 
                12731(d) of this title that he has completed the years 
                of service required for eligibility for reserve-
                component retired pay, and (iii) elects to participate 
                in the Plan (and makes a designation under subsection 
                (e)) before the end of the 90-day period beginning on 
                the date he receives such notification.
        A person described in clauses (i) and (ii) of subparagraph (B) 
        who does not elect to participate in the Plan before the end of 
        the 90-day period referred to in that clause remains eligible, 
        upon reaching 60 years of age and otherwise becoming entitled to 
        retired pay, to participate in the Plan in accordance with 
        eligibility under paragraph (1)(A).
            ``(3) Elections.--
                    ``(A) Spousal consent for certain elections 
                respecting standard annuity.--A married person who is 
                eligible to provide a standard annuity may not without 
                the concurrence of the person's spouse elect--
                          ``(i) not to participate in the Plan;
                          ``(ii) to provide an annuity for the person's 
                      spouse at less than the maximum level; or
                          ``(iii) to provide an annuity for a dependent 
                      child but not for the person's spouse.
                    ``(B) Spousal consent for certain elections 
                respecting reserve-component annuity.--A married person 
                who elects to provide a reserve-component annuity may 
                not without the concurrence of the person's spouse 
                elect--
                          ``(i) to provide an annuity for the person's 
                      spouse at less than the maximum level; or
                          ``(ii) to provide an annuity for a dependent 
                      child but not for the person's spouse.
                    ``(C) Exception when spouse unavailable.--A person 
                may make an election described in subparagraph (A) or 
                (B) without the concurrence of the person's spouse if 
                the person establishes to the satisfaction of the 
                Secretary concerned--
                          ``(i) that the spouse's whereabouts cannot be 
                      determined; or
                          ``(ii) that, due to exceptional circumstances, 
                      requiring the person to seek the spouse's consent 
                      would otherwise be inappropriate.
                    ``(D) Construction with former spouse election 
                provisions.--This paragraph does not affect any right or 
                obligation to elect to provide an annuity for a former 
                spouse

[[Page 110 STAT. 2555]]

                (or for a former spouse and dependent child) under 
                subsection (b)(2).
                    ``(E) Notice to spouse of election to provide former 
                spouse annuity.--If a married person who is eligible to 
                provide a standard annuity elects to provide an annuity 
                for a former spouse (or for a former spouse and 
                dependent child) under subsection (b)(2), that person's 
                spouse shall be notified of that election.
            ``(4) Irrevocability of elections.--
                    ``(A) Standard annuity.--An election under paragraph 
                (2)(A) not to participate in the Plan is irrevocable if 
                not revoked before the date on which the person first 
                becomes entitled to retired pay.
                    ``(B) Reserve-component annuity.--An election under 
                paragraph (2)(B) to participate in the Plan is 
                irrevocable if not revoked before the end of the 90-day 
                period referred to in that paragraph.
            ``(5) Participation by person marrying after re- tirement, 
        etc.--
                    ``(A) Election to participate in plan.--A person who 
                is not married and has no dependent child upon becoming 
                eligible to participate in the Plan but who later 
                marries or acquires a dependent child may elect to 
                participate in the Plan.
                    ``(B) Manner and time of election.--Such an election 
                must be written, signed by the person making the 
                election, and received by the Secretary concerned within 
                one year after the date on which that person marries or 
                acquires that dependent child.
                    ``(C) Limitation on revocation of election.--Such an 
                election may not be revoked except in accordance with 
                subsection (b)(3).
                    ``(D) Effective date of election.--The election is 
                effective as of the first day of the first calendar 
                month following the month in which the election is 
                received by the Secretary concerned.
                    ``(E) Designation if rcsbp election.--In the case of 
                a person providing a reserve-component annuity, such an 
                election shall include a designation under subsection 
                (e).
            ``(6) Election out of plan by person with spouse coverage 
        who remarries.--
                    ``(A) General rule.--A person--
                          ``(i) who is a participant in the Plan and is 
                      providing coverage under the Plan for a spouse (or 
                      a spouse and child);
                          ``(ii) who does not have an eligible spouse 
                      beneficiary under the Plan; and
                          ``(iii) who remarries,
                may elect not to provide coverage under the Plan for the 
                person's spouse.
                    ``(B) Effect of election on retired pay.--If such an 
                election is made, reductions in the retired pay of that 
                person under section 1452 of this title shall not be 
                made.
                    ``(C) Terms and conditions of election.--An election 
                under this paragraph--
                          ``(i) is irrevocable;

[[Page 110 STAT. 2556]]

                          ``(ii) shall be made within one year after the 
                      person's remarriage; and
                          ``(iii) shall be made in such form and manner 
                      as may be prescribed in regulations under section 
                      1455 of this title.
                    ``(D) Notice to spouse.--If a person makes an 
                election under this paragraph--
                          ``(i) not to participate in the Plan;
                          ``(ii) to provide an annuity for the person's 
                      spouse at less than the maximum level; or
                          ``(iii) to provide an annuity for a dependent 
                      child but not for the person's spouse,
                the person's spouse shall be notified of that election.
                    ``(E) Construction with former spouse election 
                provisions.--This paragraph does not affect any right or 
                obligation to elect to provide an annuity to a former 
                spouse under subsection (b).

    ``(b) Insurable Interest and Former Spouse Coverage.--
            ``(1) Coverage for person with insurable interest.--
                    ``(A) General rule.--A person who is not married and 
                does not have a dependent child upon becoming eligible 
                to participate in the Plan may elect to provide an 
                annuity under the Plan to a natural person with an 
                insurable interest in that person. In the case of a 
                person providing a reserve-component annuity, such an 
                election shall include a designation under subsection 
                (e).
                    ``(B) Termination of coverage.--An election under 
                subparagraph (A) for a beneficiary who is not the former 
                spouse of the person providing the annuity may be 
                terminated. Any such termination shall be made by a 
                participant by the submission to the Secretary concerned 
                of a request to discontinue participation in the Plan, 
                and such participation in the Plan shall be discontinued 
                effective on the first day of the first month following 
                the month in which the request is received by the 
                Secretary concerned. Effective on
such date, the Secretary concerned shall discontinue the reduction being 
made in such person's retired pay on account of participation in the 
Plan or, in the case of a person who has been required to make deposits 
in the Treasury on account of participation in the Plan, such person may 
discontinue making such deposits effective on such date.
                    ``(C) Form for discontinuation.--A request under 
                subparagraph (B) to discontinue participation in the 
                Plan shall be in such form and shall contain such 
                information as may be required under regulations 
                prescribed by the Secretary of Defense.
                    ``(D) Withdrawal of request for discontinuation.--
                The Secretary concerned shall furnish promptly to each 
                person who submits a request under subparagraph (B) to 
                discontinue participation in the Plan a written 
                statement of the advantages and disadvantages of 
                participating in the Plan and the possible disadvantages 
                of discontinuing participation. A person may withdraw 
                the request to discontinue participation if withdrawn 
                within 30 days after having been submitted to the 
                Secretary concerned.

[[Page 110 STAT. 2557]]

                    ``(E) Consequences of discontinuation.--Once 
                participation is discontinued, benefits may not be paid 
                in conjunction with the earlier participation in the 
                Plan and premiums paid may not be refunded. 
                Participation in the Plan may not later be resumed 
                except through a qualified election under paragraph (5) 
                of subsection (a).
            ``(2) Former spouse coverage upon becoming a participant in 
        the plan.--
                    ``(A) General rule.--A person who has a former 
                spouse upon becoming eligible to participate in the Plan 
                may elect to provide an annuity to that former spouse.
                    ``(B) Effect of former spouse election on spouse or 
                dependent child.--In the case of a person with a spouse 
                or a dependent child, such an election prevents payment 
                of an annuity to that spouse or child (other than a 
                child who is a beneficiary under an election under 
                paragraph (4)), including payment under subsection (d).
                    ``(C) Designation if more than one former spouse.--
                If there is more than one former spouse, the person 
                shall designate which former spouse is to be provided 
                the annuity.
                    ``(D) Designation if rcsbp election.--In the case of 
                a person providing a reserve-component annuity, such an 
                election shall include a designation under subsection 
                (e).
            ``(3) Former spouse coverage by persons already 
        participating in plan.--
                    ``(A) Election of coverage.--
                          ``(i) Authority for election.--A person--
                                    ``(I) who is a participant in the 
                                Plan and is providing coverage for a 
                                spouse or a spouse and child (even 
                                though there is no beneficiary currently 
                                eligible for such coverage), and
                                    ``(II) who has a former spouse who 
                                was not that person's former spouse when 
                                that person became eligible to 
                                participate in the Plan,
                      may (subject to subparagraph (B)) elect to provide 
                      an annuity to that former spouse.
                          ``(ii) Termination of previous coverage.--Any 
                      such election terminates any previous coverage 
                      under the Plan.
                          ``(iii) Manner and time of election.--Any such 
                      election must be written, signed by the person 
                      making the election, and received by the Secretary 
                      concerned within one year after the date of the 
                      decree of divorce, dissolution, or annulment.
                    ``(B) Limitation on election.--A person may not make 
                an election under subparagraph (A) to provide an annuity 
                to a former spouse who that person married after 
                becoming eligible for retired pay unless--
                          ``(i) the person was married to that former 
                      spouse for at least one year, or
                          ``(ii) that former spouse is the parent of 
                      issue by that marriage.
                    ``(C) Irrevocability, effective date, etc.--An 
                election under this paragraph may not be revoked except 
                in accordance with section 1450(f) of this title. Such 
                an election is effective as of the first day of the 
                first calendar

[[Page 110 STAT. 2558]]

                month following the month in which it is received by the 
                Secretary concerned. This paragraph does not provide the 
                authority to change a designation previously made under 
                subsection (e).
                    ``(D) Notice to spouse.--If a person who is married 
                makes an election to provide an annuity to a former 
                spouse under this paragraph, that person's spouse shall 
                be notified of the election.
            ``(4) Former spouse and child coverage.--A person who elects 
        to provide an annuity for a former spouse under paragraph (2) or 
        (3) may, at the time of the election, elect to provide coverage 
        under that annuity for both the former spouse and a dependent 
        child, if the child resulted from the person's marriage to that 
        former spouse.
            ``(5) Disclosure of whether election of former spouse 
        coverage is required.--A person who elects to provide an annuity 
        to a former spouse under paragraph (2) or (3) shall, at the time 
        of making the election, provide the Secretary concerned with a 
        written statement (in a form to be prescribed by that Secretary 
        and signed by such person and the former spouse) setting forth--
                    ``(A) whether the election is being made pursuant to 
                the requirements of a court order; or
                    ``(B) whether the election is being made pursuant to 
                a written agreement previously entered into voluntarily 
                by such person as a part of, or incident to, a 
                proceeding of divorce, dissolution, or annulment and (if 
                so)
whether such voluntary written agreement has been incorporated in, or 
ratified or approved by, a court order.

    ``(c) Persons on Temporary Disability Retired List.--The application 
of the Plan to a person whose name is on the temporary disability 
retired list terminates when his name is removed from that list and he 
is no longer entitled to disability retired pay.
    ``(d) Coverage for Survivors of Retirement-Eligible Members Who Die 
on Active Duty.--
            ``(1) Surviving spouse annuity.--The Secretary concerned 
        shall pay an annuity under this subchapter to the surviving 
        spouse of a member who dies on active duty after--
                    ``(A) becoming eligible to receive retired pay;
                    ``(B) qualifying for retired pay except that he has 
                not applied for or been granted that pay; or
                    ``(C) completing 20 years of active service but 
                before he is eligible to retire as a commissioned 
                officer because he has not completed 10 years of active 
                commissioned service.
            ``(2) Dependent child annuity.--The Secretary concerned 
        shall pay an annuity under this subchapter to the dependent 
        child of a member described in paragraph (1) if there is no 
        surviving spouse or if the member's surviving spouse 
        subsequently dies.
            ``(3) Mandatory former spouse annuity.--If a member 
        described in paragraph (1) is required under a court order or 
        spousal agreement to provide an annuity to a former spouse upon 
        becoming eligible to be a participant in the Plan or has made an 
        election under subsection (b) to provide an annuity to a former 
        spouse, the Secretary--

[[Page 110 STAT. 2559]]

                    ``(A) may not pay an annuity under paragraph (1) or 
                (2); but
                    ``(B) shall pay an annuity to that former spouse as 
                if the member had been a participant in the Plan and had 
                made an election under subsection (b) to provide an 
                annuity to the former spouse, or in accordance with that 
                election, as the case may be, if the Secretary receives 
                a written request from the former spouse concerned that 
                the election be deemed to have been made in the same 
                manner as provided in section 1450(f)(3) of this title.
            ``(4) Priority.--An annuity that may be provided under this 
        subsection shall be provided in preference to an annuity that 
        may be provided under any other provision of this subchapter on 
        account of service of the same member.
            ``(5) Computation.--The amount of an annuity under this 
        subsection is computed under section 1451(c) of this title.

    ``(e) Designation for Commencement of Reserve-Component Annuity.--In 
any case in which a person electing to participate in the Plan is 
required to make a designation under this subsection, the person making 
such election shall designate whether, in the event he dies before 
becoming 60 years of age, the annuity provided shall become effective 
on--
            ``(1) the day after the date of his death; or
            ``(2) the 60th anniversary of his birth.

    ``(f) Coverage of Survivors of Persons Dying When Eligible To Elect 
Reserve-Component Annuity.--
            ``(1) Surviving spouse annuity.--The Secretary concerned 
        shall pay an annuity under this subchapter to the surviving 
        spouse of a person who is eligible to provide a reserve-
        component annuity and who dies--
                    ``(A) before being notified under section 12731(d) 
                of this title that he has completed the years of service 
                required for eligibility for reserve-component retired 
                pay; or
                    ``(B) during the 90-day period beginning on the date 
                he receives notification under section 12731(d) of this 
                title that he has completed the years of service 
                required for eligibility for reserve-component retired 
                pay if he had not made an election under subsection 
                (a)(2)(B) to participate in the Plan.
            ``(2) Dependent child annuity.--The Secretary concerned 
        shall pay an annuity under this subchapter to the dependent 
        child of a person described in paragraph (1) if there is no 
        surviving spouse or if the person's surviving spouse 
        subsequently dies.
            ``(3) Mandatory former spouse annuity.--If a person 
        described in paragraph (1) is required under a court order or 
        spousal agreement to provide an annuity to a former spouse upon 
        becoming eligible to be a participant in the Plan or has made an 
        election under subsection (b) to provide an annuity to a former 
        spouse, the Secretary--
                    ``(A) may not pay an annuity under paragraph (1) or 
                (2); but
                    ``(B) shall pay an annuity to that former spouse as 
                if the person had been a participant in the Plan and had 
                made an election under subsection (b) to provide an 
                annuity to the former spouse, or in accordance with that 
                election, as the case may be, if the Secretary receives 
                a written

[[Page 110 STAT. 2560]]

                request from the former spouse concerned that the 
                election be deemed to have been made in the same manner 
                as provided in section 1450(f)(3) of this title.
            ``(4) Computation.--The amount of an annuity under this 
        subsection is computed under section 1451(c) of this title.

    ``(g) Election To Increase Coverage Upon Remarriage.--
            ``(1) Election.--A person--
                    ``(A) who is a participant in the Plan and is 
                providing coverage under subsection (a) for a spouse or 
                a spouse and child, but at less than the maximum level; 
                and
                    ``(B) who remarries,
        may elect, within one year of such remarriage, to increase the 
        level of coverage provided under the Plan to a level not in 
        excess of the current retired pay of that person.
            ``(2) Payment required.--Such an election shall be 
        contingent on the person paying to the United States the amount 
        determined under paragraph (3) plus interest on such amount at a 
        rate determined under regulations prescribed by the Secretary of 
        Defense.
            ``(3) Amount to be paid.--The amount referred to in 
        paragraph (2) is the amount equal to the difference between--
                    ``(A) the amount that would have been withheld from 
                such person's retired pay under section 1452 of this 
                title if the higher level of coverage had been in effect 
                from the time the person became a participant in the 
                Plan; and
                    ``(B) the amount of such person's retired pay 
                actually withheld.
            ``(4) Manner of making election.--An election under 
        paragraph (1) shall be made in such manner as the Secretary 
        shall prescribe and shall become effective upon receipt of the 
        payment required by paragraph (2).
            ``(5) Disposition of payments.--A payment received under 
        this subsection by the Secretary of Defense shall be deposited 
        into the Department of Defense Military Retirement Fund. Any 
        other payment received under this subsection shall be deposited 
        in the Treasury as miscellaneous receipts.

``Sec. 1449. Mental incompetency of member

    ``(a) Election by Secretary Concerned on Behalf of Mentally 
Incompetent Member.--If a person to whom section 1448 of this title 
applies is determined to be mentally incompetent by medical officers of 
the armed force concerned or of the Department of Veterans Affairs, or 
by a court of competent jurisdiction, an election described in 
subsection (a)(2) or (b) of section 1448 of this title may be made on 
behalf of that person by the Secretary concerned.
    ``(b) Revocation of Election by Member.--
            ``(1) Authority upon subsequent determination of mental 
        competence.--If a person for whom the Secretary has made an 
        election under subsection (a) is later determined to be mentally 
        competent by an authority named in that subsection, that person 
        may, within 180 days after that determination, revoke that 
        election.
            ``(2) Deductions from retired pay not to be refunded.--Any 
        deduction made from retired pay by reason of such an election 
        may not be refunded.

[[Page 110 STAT. 2561]]

``Sec. 1450. Payment of annuity: beneficiaries

    ``(a) <<NOTE: Effective date.>> In General.--Effective as of the 
first day after the death of a person to whom section 1448 of this title 
applies (or on such other day as that person may provide under 
subsection (j)), a monthly annuity under section 1451 of this title 
shall be paid to the person's beneficiaries under the Plan, as follows:
            ``(1) Surviving spouse or former spouse.--The eligible 
        surviving spouse or the eligible former spouse.
            ``(2) Surviving children.--The surviving dependent children 
        in equal shares, if the eligible surviving spouse or the 
        eligible former spouse is dead, dies, or otherwise becomes 
        ineligible under this section.
            ``(3) Dependent children.--The dependent children in equal 
        shares if the person to whom section 1448 of this title applies 
        (with the concurrence of the person's spouse, if required under 
        section 1448(a)(3) of this title) elected to provide an annuity 
        for dependent children but not for the spouse or former spouse.
            ``(4) Natural person designated under `insurable interest' 
        coverage.--The natural person designated under section 
        1448(b)(1) of this title, unless the election to provide an 
        annuity to the natural person has been changed as provided in 
        subsection (f).

    ``(b) Termination of Annuity for Death, Remarriage Before Age 55, 
Etc.--
            ``(1) General rule.--An annuity payable to the beneficiary 
        terminates effective as of the first day of the month in which 
        eligibility is lost.
            ``(2) Termination of spouse annuity upon death or remarriage 
        before age 55.--An annuity for a surviving spouse or former 
        spouse shall be paid to the surviving spouse or former spouse 
        while the surviving spouse or former spouse is living or, if the 
        surviving spouse or former spouse remarries before reaching age 
        55, until the surviving spouse or former spouse remarries.
            ``(3) Effect of termination of subsequent marriage before 
        age 55.--If the surviving spouse or former spouse remarries 
        before reaching age 55 and that marriage is terminated by death, 
        annulment, or divorce, payment of the annuity shall be resumed 
        effective as of the first day of the month in which the marriage 
        is so terminated. However, if the surviving spouse or former 
        spouse is also entitled to an annuity under the Plan based upon 
        the marriage so terminated, the surviving spouse or former 
        spouse may not receive both annuities but must elect which to 
        receive.

    ``(c) Offset for Amount of Dependency and Indemnity Compensation.--
            ``(1) Required offset.--If, upon the death of a person to 
        whom section 1448 of this title applies, the surviving spouse or 
        former spouse of that person is also entitled to dependency and 
        indemnity compensation under section 1311(a) of title 38, the 
        surviving spouse or former spouse may be paid an annuity under 
        this section, but only in the amount that the annuity otherwise 
        payable under this section would exceed that compensation.
            ``(2) Effective date of offset.--A reduction in an annuity 
        under this section required by paragraph (1) shall be effective

[[Page 110 STAT. 2562]]

        on the date of the commencement of the period of payment of such 
        dependency and indemnity compensation under title 38.

    ``(d) Limitation on Payment of Annuities When Coverage Under Civil 
Service Retirement Elected.--If, upon the death of a person to whom 
section 1448 of this title applies, that person had in effect a waiver 
of that person's retired pay for the purposes of subchapter III of 
chapter 83 of title 5, an annuity under this section shall not be 
payable unless, in accordance with section 8339(j) of title 5, that 
person
notified the Office of Personnel Management that he did not desire any 
spouse surviving him to receive an annuity under section 8341(b) of that 
title.

    ``(e) Refund of Amounts Deducted From Retired Pay When DIC Offset Is 
Applicable.--
            ``(1) Full refund when dic greater than sbp annuity.--If an 
        annuity under this section is not payable because of subsection 
        (c), any amount deducted from the retired pay of the deceased 
        under section 1452 of this title shall be refunded to the 
        surviving spouse or former spouse.
            ``(2) Partial refund when sbp annuity reduced by dic.--If, 
        because of subsection (c), the annuity payable is less than the 
        amount established under section 1451 of this title, the annuity 
        payable shall be recalculated under that section. The amount of 
        the reduction in the retired pay required to provide that 
        recalculated annuity shall be computed under section 1452 of 
        this title, and the difference between the amount deducted 
        before the computation of that recalculated annuity and the 
        amount that would have been deducted on the basis of that 
        recalculated annuity shall be refunded to the surviving spouse 
        or former spouse.

    ``(f) Change in Election of Insurable Interest or Former Spouse 
Beneficiary.--
            ``(1) Authorized changes.--
                    ``(A) Election in favor of spouse or child.--A 
                person who elects to provide an annuity to a person 
                designated by him under section 1448(b) of this title 
                may, subject to paragraph (2), change that election and 
                provide an annuity to his spouse or dependent child.
                    ``(B) Notice.--The Secretary concerned shall notify 
                the former spouse or other natural person previously 
                designated under section 1448(b) of this title of any 
                change of election under subparagraph (A).
                    ``(C) Procedures, effective date, etc.--Any such 
                change of election is subject to the same rules with 
                respect to execution, revocation, and effectiveness as 
                are set forth in section 1448(a)(5) of this title 
                (without regard to the eligibility of the person making 
                the change of election to make such an election under 
                that section).
            ``(2) Limitation on change in beneficiary when former spouse 
        coverage in effect.--A person who, incident to a proceeding of 
        divorce, dissolution, or annulment, is required by a court order 
        to elect under section 1448(b) of this title to provide an 
        annuity to a former spouse (or to both a former spouse and 
        child), or who enters into a written agreement (whether 
        voluntary or required by a court order) to make such an 
        election, and who makes an election pursuant to such order or 
        agreement, may not change that election under paragraph

[[Page 110 STAT. 2563]]

        (1) unless, of the following requirements, whichever are 
        applicable in a particular case are satisfied:
                    ``(A) In a case in which the election is required by 
                a court order, or in which an agreement to make the 
                election has been incorporated in or ratified or 
                approved by a court order, the person--
                          ``(i) furnishes to the Secretary concerned a 
                      certified copy of a court order which is regular 
                      on its face and which modifies the provisions of 
                      all previous court orders relating to such 
                      election, or the agreement to make such election, 
                      so as to permit the person to change the election; 
                      and
                          ``(ii) certifies to the Secretary concerned 
                      that the court order is valid and in effect.
                    ``(B) In a case of a written agreement that has not 
                been incorporated in or ratified or approved by a court 
                order, the person--
                          ``(i) furnishes to the Secretary concerned a 
                      statement, in such form as the Secretary concerned 
                      may prescribe, signed by the former spouse and 
                      evidencing the former spouse's agreement to a 
                      change in the election under paragraph (1); and
                          ``(ii) certifies to the Secretary concerned 
                      that the statement is current and in effect.
            ``(3) Required former spouse election to be deemed to have 
        been made.--
                    ``(A) Deemed election upon request by former 
                spouse.--If a person described in paragraph (2) or (3) 
                of section 1448(b) of this title is required (as 
                described in subparagraph (B)) to elect under section 
                1448(b) of this title to provide an annuity to a former 
                spouse and such person then fails or refuses to make 
                such an election, such person shall be deemed to have 
                made such an election if the Secretary concerned 
                receives the following:
                          ``(i) Request from former spouse.--A written 
                      request, in such manner as the Secretary shall 
                      prescribe, from the former spouse concerned 
                      requesting that such an election be deemed to have 
                      been made.
                          ``(ii) Copy of court order or other official 
                      statement.--Either--
                                    ``(I) a copy of the court order, 
                                regular on its face, which requires such 
                                election or incorporates, ratifies, or 
                                approves the written agreement of such 
                                person; or
                                    ``(II) a statement from the clerk of 
                                the court (or other appropriate 
                                official) that such agreement has been 
                                filed with the court in accordance with 
                                applicable State law.
                    ``(B) Persons required to make election.--A person 
                shall be considered for purposes of subparagraph (A) to 
                be required to elect under section 1448(b) of this title 
                to provide an annuity to a former spouse if--
                          ``(i) the person enters, incident to a 
                      proceeding of divorce, dissolution, or annulment, 
                      into a written agreement to make such an election 
                      and the agreement (I) has been incorporated in or 
                      ratified or
approved by a court order, or (II) has been filed with the court

[[Page 110 STAT. 2564]]

of appropriate jurisdiction in accordance with appli- cable State law; 
or
                          ``(ii) the person is required by a court order 
                      to make such an election.
                    ``(C) Time limit for request by former spouse.--An 
                election may not be deemed to have been made under 
                subparagraph (A) in the case of any person unless the 
                Secretary concerned receives a request from the former 
                spouse of the person within one year of the date of the 
                court order or filing involved.
                    ``(D) Effective date of deemed election.--An 
                election deemed to have been made under subparagraph (A) 
                shall become effective on the first day of the first 
                month which begins after the date of the court order or 
                filing involved.
            ``(4) Former spouse coverage may be required by court 
        order.--A court order may require a person to elect (or to enter 
        into an agreement to elect) under section 1448(b) of this title 
        to provide an annuity to a former spouse (or to both a former 
        spouse and child).

    ``(g) Limitation on Changing or Revoking Elections.--
            ``(1) In general.--An election under this section may not be 
        changed or revoked.
            ``(2) Exceptions.--Paragraph (1) does not apply to--
                    ``(A) a revocation of an election under section 
                1449(b) of this title; or
                    ``(B) a change in an election under subsection (f).

    ``(h) Treatment of Annuities Under Other Laws.--Except as provided 
in section 1451 of this title, an annuity under this section is in 
addition to any other payment to which a person is entitled under any 
other provision of law. Such annuity shall be considered as income under 
laws administered by the Secretary of Veterans Affairs.
    ``(i) Annuities Exempt From Certain Legal Process.--Except as 
provided in subsection (l)(3)(B), an annuity under this section is not 
assignable or subject to execution, levy, attachment, garnishment, or 
other legal process.
    ``(j) Effective Date of Reserve-Component Annuities.--
            ``(1) Persons making section 1448(e) designation.--An 
        annuity elected by a person providing a reserve-component 
        annuity shall be effective in accordance with the designation 
        made by such person under section 1448(e) of this title.
            ``(2) Persons dying before making section 1448(e) 
        designation.--An annuity payable under section 1448(f) of this 
        title shall be effective on the day after the date of the death 
        of the person upon whose service the right to the annuity is 
        based.

    ``(k) Adjustment of Spouse or Former Spouse Annuity Upon Loss of 
Dependency and Indemnity Compensation.--
            ``(1) Readjustment if beneficiary 55 years of age or more.--
        If a surviving spouse or former spouse whose annuity has been 
        adjusted under subsection (c) subsequently loses entitlement to 
        dependency and indemnity compensation under section 1311(a) of 
        title 38 because of the remarriage of the surviving spouse, or 
        former spouse, and if at the time of such remarriage the 
        surviving spouse or former spouse is 55 years of age or more, 
        the amount of the annuity of the surviving

[[Page 110 STAT. 2565]]

        spouse or former spouse shall be readjusted, effective on the 
        effective date of such loss of dependency and indemnity 
        compensation, to the amount of the annuity which would be in 
        effect with respect to the surviving spouse or former spouse if 
        the adjustment under subsection (c) had never been made.
            ``(2) Repayment of amounts previously refunded.--
                    ``(A) General rule.--A surviving spouse or former 
                spouse whose annuity is readjusted under paragraph (1) 
                shall repay any amount refunded under subsection (e) by 
                reason of the adjustment under subsection (c).
                    ``(B) Interest required if repayment not a lump 
                sum.--If the repayment is not made in a lump sum, the 
                surviving spouse or former spouse shall pay interest on 
                the amount to be repaid. Such interest shall commence on 
                the date on which the first such payment is due and 
                shall be applied over the period during which any part 
                of the repayment remains to be paid.
                    ``(C) Manner of repayment; rate of interest.--The 
                manner in which such repayment shall be made, and the 
                rate of any such interest, shall be prescribed in 
                regulations under section 1455 of this title.
                    ``(D) Deposit of amounts repaid.--An amount repaid 
                under this paragraph (including any such interest) 
                received by the Secretary of Defense shall be deposited 
                into the Department of Defense Military Retirement Fund. 
                Any other amount repaid under this paragraph shall be 
                deposited into the Treasury as miscellaneous receipts.

    ``(l) Participants in the Plan Who Are Missing.--
            ``(1) Authority to presume death of missing participant.--
                    ``(A) In general.--Upon application of the 
                beneficiary of a participant in the Plan who is missing, 
                the Secretary concerned may determine for purposes of 
                this subchapter that the participant is presumed dead.
                    ``(B) Participant who is missing.--A participant in 
                the Plan is considered to be missing for purposes of 
                this subsection if--
                          ``(i) the retired pay of the participant has 
                      been suspended on the basis that the participant 
                      is missing; or
                          ``(ii) in the case of a participant in the 
                      Plan who would be eligible for reserve-component 
                      retired pay but for the fact that he is under 60 
                      years of
age, his retired pay, if he were entitled to retired pay, would be 
suspended on the basis that he is missing.
                    ``(C) Requirements applicable to presumption of 
                death.--Any such determination shall be made in 
                accordance with regulations prescribed under section 
                1455 of this title. The Secretary concerned may not make 
                a determination for purposes of this subchapter that a 
                participant who is missing is presumed dead unless the 
                Secretary finds that--
                          ``(i) the participant has been missing for at 
                      least 30 days; and
                          ``(ii) the circumstances under which the 
                      participant is missing would lead a reasonably 
                      prudent person to conclude that the participant is 
                      dead.

[[Page 110 STAT. 2566]]

            ``(2) Commencement of annuity.--Upon a determination under 
        paragraph (1) with respect to a participant in the Plan, an 
        annuity otherwise payable under this subchapter shall be paid as 
        if the participant died on the date as of which the retired pay 
        of the participant was suspended.
            ``(3) Effect of person not being dead.--
                    ``(A) Termination of annuity.--If, after a 
                determination under paragraph (1), the Secretary 
                concerned determines that the participant is alive--
                          ``(i) any annuity being paid under this 
                      subchapter by reason of this subsection shall be 
                      terminated; and
                          ``(ii) the total amount of any annuity 
                      payments made by reason of this subsection shall 
                      constitute a debt to the United States.
                    ``(B) Collection from participant of annuity amounts 
                erroneously paid.--A debt under subparagraph (A)(ii) may 
                be collected or offset--
                          ``(i) from any retired pay otherwise payable 
                      to the participant;
                          ``(ii) if the participant is entitled to 
                      compensation under chapter 11 of title 38, from 
                      that compen- sation; or
                          ``(iii) if the participant is entitled to any 
                      other payment from the United States, from that 
                      payment.
                    ``(C) Collection from beneficiary.--If the 
                participant dies before the full recovery of the amount 
                of annuity payments described in subparagraph (A)(ii) 
                has been made by the United States, the remaining amount 
                of such annuity payments may be collected from the 
                participant's beneficiary under the Plan if that 
                beneficiary was the recipient of the annuity payments 
                made by reason of this subsection.

``Sec. 1451. Amount of annuity

    ``(a) Computation of Annuity for a Spouse, Former Spouse, or 
Child.--
            ``(1) Standard annuity.--In the case of a standard annuity 
        provided to a beneficiary under section 1450(a) of this title 
        (other than under section 1450(a)(4)), the monthly annuity 
        payable to the beneficiary shall be determined as follows:
                    ``(A) Beneficiary under 62 years of age.--If the 
                beneficiary is under 62 years of age or is a dependent 
                child when becoming entitled to the annuity, the monthly 
                annuity shall be the amount equal to 55 percent of the 
                base amount.
                    ``(B) Beneficiary 62 years of age or older.--
                          ``(i) General rule.--If the beneficiary (other 
                      than a dependent child) is 62 years of age or 
                      older when becoming entitled to the annuity, the 
                      monthly annuity shall be the amount equal to 35 
                      percent of the base amount.
                          ``(ii) Rule if beneficiary eligible for social 
                      security offset computation.--If the beneficiary 
                      is eligible to have the annuity computed under 
                      subsection (e) and if, at the time the beneficiary 
                      becomes entitled to the annuity, computation of 
                      the annuity under that subsection is more 
                      favorable to the beneficiary than computation 
                      under clause (i), the annuity shall be

[[Page 110 STAT. 2567]]

                      computed under that subsection rather than under 
                      clause (i).
            ``(2) Reserve-component annuity--In the case of a reserve-
        component annuity provided to a beneficiary under section 
        1450(a) of this title (other than under section 1450(a)(4)), the 
        monthly annuity payable to the beneficiary shall be determined 
        as follows:
                    ``(A) Beneficiary under 62 years of age.--If the 
                beneficiary is under 62 years of age or is a dependent 
                child when becoming entitled to the annuity, the monthly 
                annuity shall be the amount equal to a percentage of the 
                base amount that--
                          ``(i) is less than 55 percent; and
                          ``(ii) is determined under subsection (f).
                    ``(B) Beneficiary 62 years of age or older.--
                          ``(i) General rule.--If the beneficiary (other 
                      than a dependent child) is 62 years of age or 
                      older when becoming entitled to the annuity, the 
                      monthly annuity shall be the amount equal to a 
                      percentage of the base amount that--
                                    ``(I) is less than 35 percent; and
                                    ``(II) is determined under 
                                subsection (f).
                          ``(ii) Rule if beneficiary eligible for social 
                      security offset computation.--If the beneficiary 
                      is eligible to have the annuity computed under 
                      subsection (e) and if, at the time the beneficiary 
                      becomes entitled to the annuity, computation of 
                      the annuity under that subsection is more 
                      favorable to the beneficiary than computation 
                      under clause (i), the annuity shall be computed 
                      under that subsection rather than under clause 
                      (i).

    ``(b) Insurable Interest Beneficiary.--
            ``(1) Standard annuity.--In the case of a standard annuity 
        provided to a beneficiary under section 1450(a)(4) of this 
        title, the monthly annuity payable to the beneficiary shall be 
        the amount equal to 55 percent of the retired pay of the person 
        who elected to provide the annuity after the reduction in that 
        pay in accordance with section 1452(c) of this title.
            ``(2) Reserve-component annuity.--In the case of a reserve-
        component annuity provided to a beneficiary under section 
        1450(a)(4) of this title, the monthly annuity payable to the 
        beneficiary shall be the amount equal to a percentage of the 
        retired pay of the person who elected to provide the annuity 
        after the reduction in such pay in accordance with section 
        1452(c) of this title that--
                    ``(A) is less than 55 percent; and
                    ``(B) is determined under subsection (f).
            ``(3) Computation of reserve-component annuity when 
        participant dies before age 60.--For the purposes of paragraph 
        (2), a person--
                    ``(A) who provides an annuity that is determined in 
                accordance with that paragraph;
                    ``(B) who dies before becoming 60 years of age; and
                    ``(C) who at the time of death is otherwise entitled 
                to retired pay,
        shall be considered to have been entitled to retired pay at the 
        time of death. The retired pay of such person for the

[[Page 110 STAT. 2568]]

        purposes of such paragraph shall be computed on the basis of the 
        rates of basic pay in effect on the date on which the annuity 
        provided by such person is to become effective in accordance 
        with the designation of such person under section 1448(e) of 
        this title.

    ``(c) Annuities for Survivors of Certain Persons Dying During a 
Period of Special Eligibility for SBP.--
            ``(1) In general.--In the case of an annuity provided under 
        section 1448(d) or 1448(f) of this title, the amount of the 
        annuity shall be determined as follows:
                    ``(A) Beneficiary under 62 years of age.--If the 
                person receiving the annuity is under 62 years of age or 
                is a dependent child when the member or former member 
                dies, the monthly annuity shall be the amount equal to 
                55 percent of the retired pay to which the member or 
                former member would have been entitled if the member or 
                former member had been entitled to that pay based upon 
                his years of active service when he died.
                    ``(B) Beneficiary 62 years of age or older.--
                          ``(i) General rule.--If the person receiving 
                      the annuity (other than a dependent child) is 62 
                      years of age or older when the member or former 
                      member dies, the monthly annuity shall be the 
                      amount equal to 35 percent of the retired pay to 
                      which the member or former member would have been 
                      entitled if the member or former member had been 
                      entitled to that pay based upon his years of 
                      active service when he died.
                          ``(ii) Rule if beneficiary eligible for social 
                      security offset computation.--If the beneficiary 
                      is eligible to have the annuity computed under 
                      subsection (e) and if, at the time the beneficiary 
                      becomes entitled to the annuity, computation of 
                      the annuity under that subsection is more 
                      favorable to the beneficiary than computation 
                      under clause (i), the annuity shall be computed 
                      under that subsection rather than under clause 
                      (i).
            ``(2) DIC offset.--An annuity computed under paragraph (1) 
        that is paid to a surviving spouse shall be reduced by the 
        amount of dependency and indemnity compensation to which the 
        surviving spouse is entitled under section 1311(a) of title 38. 
        Any such reduction shall be effective on the date of the 
        commencement of the period of payment of such compensation under 
        title 38.
            ``(3) Servicemembers not yet granted retired pay.--In the 
        case of an annuity provided by reason of the service of a member 
        described in section 1448(d)(1)(B) or 1448(d)(1)(C) of this 
        title who first became a member of a uniformed service before 
        September 8, 1980, the retired pay to which the member would 
        have been entitled when he died shall be determined for purposes 
        of paragraph (1) based upon the rate of basic pay in effect at 
        the time of death for the grade in which the member was serving 
        at the time of death, unless (as determined by the Secretary 
        concerned) the member would have been entitled to be retired in 
        a higher grade.
            ``(4) Rate of pay to be used in computing annuity.--In the 
        case of an annuity paid under section 1448(f) of this

[[Page 110 STAT. 2569]]

        title by reason of the service of a person who first became a 
        member of a uniformed service before September 8, 1980, the 
        retired pay of the person providing the annuity shall for the 
        purposes of paragraph (1) be computed on the basis of the rates 
        of basic pay in effect on the effective date of the annuity.

    ``(d) Reduction of Annuities at Age 62.--
            ``(1) Reduction required.--The annuity of a person whose 
        annuity is computed under subparagraph (A) of subsection (a)(1), 
        (a)(2), or (c)(1) shall be reduced on the first day of the month 
        after the month in which the person becomes 62 years of age.
            ``(2) Amount of annuity as reduced.--
                    ``(A) 35 percent annuity.--Except as provided in 
                subparagraph (B), the reduced amount of the annuity 
                shall be the amount of the annuity that the person would 
                be receiving on that date if the annuity had initially 
                been computed under subparagraph (B) of that subsection.
                    ``(B) Savings provision for beneficiaries eligible 
                for social security offset
computation.--In the case of a person eligible to have an annuity 
computed under subsection (e) and for whom, at the time the person 
becomes 62 years of age, the annuity computed with a reduction under 
subsection (e)(3) is more favorable than the annuity with a reduction 
described in subparagraph (A), the reduction in the annuity shall be 
computed in the same manner as a reduction under subsection (e)(3).

    ``(e) Savings Provision for Certain Beneficiaries.--
            ``(1) Persons covered.--The following beneficiaries under 
        the Plan are eligible to have an annuity under the Plan computed 
        under this subsection:
                    ``(A) A beneficiary receiving an annuity under the 
                Plan on October 1, 1985, as the surviving spouse or 
                former spouse of the person providing the annuity.
                    ``(B) A spouse or former spouse beneficiary of a 
                person who on October 1, 1985--
                          ``(i) was a participant in the Plan;
                          ``(ii) was entitled to retired pay or was 
                      qualified for that pay except that he had not 
                      applied for and been granted that pay; or
                          ``(iii) would have been eligible for reserve-
                      component retired pay but for the fact that he was 
                      under 60 years of age.
            ``(2) Amount of annuity.--Subject to paragraph (3), an 
        annuity computed under this subsection is determined as follows:
                    ``(A) Standard annuity.--In the case of the 
                beneficiary of a standard annuity, the annuity shall be 
                the amount equal to 55 percent of the base amount.
                    ``(B) Reserve-component annuity.--In the case of the 
                beneficiary of a reserve-component annuity, the annuity 
                shall be the percentage of the base amount that--
                          ``(i) is less than 55 percent; and
                          ``(ii) is determined under subsection (f).
                    ``(C) Beneficiaries of persons dying during a period 
                of special eligibility for sbp.--In the case of the 
                beneficiary of an annuity under section 1448(d) or 
                1448(f) of

[[Page 110 STAT. 2570]]

                this title, the annuity shall be the amount equal to 55 
                percent of the retired pay of the person providing the 
                annuity (as that pay is determined under subsection 
                (c)).
            ``(3) Social security offset.--An annuity computed under 
        this subsection shall be reduced by the lesser of the following:
                    ``(A) Social security computation.--The amount of 
                the survivor benefit, if any, to which the surviving 
                spouse (or the former spouse, in the case of a former 
                spouse beneficiary who became a former spouse under a 
                divorce that became final after November 29, 1989) would 
                be entitled under title II of the Social Security Act 
                (42 U.S.C. 401 et seq.) based solely upon service by the 
                person concerned as described in section 210(l)(1) of 
                such Act (42 U.S.C. 410(l)(1)) and calculated assuming 
                that the person concerned lives to age 65.
                    ``(B) Maximum amount of reduction.--40 percent of 
                the amount of the monthly annuity as determined under 
                paragraph (2).
            ``(4) Special rules for social security offset 
        computation.--
                    ``(A) Treatment of deductions made on account of 
                work.--For the purpose of paragraph (3), a surviving 
                spouse (or a former spouse, in the case of a person who 
                becomes a former spouse under a divorce that becomes 
                final after November 29, 1989) shall not be considered 
                as entitled to a benefit under title II of the Social 
                Security Act (42 U.S.C. 401 et seq.) to the extent that 
                such benefit has been offset by deductions under section 
                203 of such Act (42 U.S.C. 403) on account of work.
                    ``(B) Treatment of certain periods for which social 
                security refunds are made.--In the computation of any 
                reduction made under paragraph (3), there shall be 
                excluded any period of service described in section 
                210(l)(1) of the Social Security Act (42 U.S.C. 
                410(l)(1))--
                          ``(i) which was performed after December 1, 
                      1980; and
                          ``(ii) which involved periods of service of 
                      less than 30 continuous days for which the person 
                      concerned is entitled to receive a refund under 
                      section 6413(c) of the Internal Revenue Code of 
                      1986 of the social security tax which the person 
                      had paid.

    ``(f) Determination of Percentages Applicable to Computation of 
Reserve-Component Annuities.-- <<NOTE: Regulations.>> The percentage to 
be applied in determining the amount of an annuity computed under 
subsection (a)(2), (b)(2), or (e)(2)(B) shall be determined under 
regulations prescribed by the Secretary of Defense. Such regulations 
shall be prescribed taking into consideration the following:
            ``(1) The age of the person electing to provide the annuity 
        at the time of such election.
            ``(2) The difference in age between such person and the 
        beneficiary of the annuity.
            ``(3) Whether such person provided for the annuity to become 
        effective (in the event he died before becoming 60 years of age) 
        on the day after his death or on the 60th anniversary of his 
        birth.
            ``(4) Appropriate group annuity tables.
            ``(5) Such other factors as the Secretary considers 
        relevant.

[[Page 110 STAT. 2571]]

    ``(g) Adjustments to Annuities.--
            ``(1) Periodic adjustments for cost-of-living.--
                    ``(A) Increases in annuities when retired pay 
                increased.--Whenever retired pay is increased under 
                section 1401a of this title (or any other provision
of law), each annuity that is payable under the Plan shall be increased 
at the same time.
                    ``(B) Percentage of increase.--The increase shall, 
                in the case of any annuity, be by the same percent as 
                the percent by which the retired pay of the person 
                providing the annuity would have been increased at such 
                time if the person were alive (and otherwise entitled to 
                such pay).
                    ``(C) Certain reductions to be disregarded.--The 
                amount of the increase shall be based on the monthly 
                annuity payable before any reduction under section 
                1450(c) of this title or under subsection (c)(2).
            ``(2) Rounding down.--The monthly amount of an annuity 
        payable under this subchapter, if not a multiple of $1, shall be 
        rounded to the next lower multiple of $1.

    ``(h) Adjustments to Base Amount.--
            ``(1) Periodic adjustments for cost-of-living.--
                    ``(A) Increases in base amount when retired pay 
                increased.--Whenever retired pay is increased under 
                section 1401a of this title (or any other provision of 
                law), the base amount applicable to each participant in 
                the Plan shall be increased at the same time.
                    ``(B) Percentage of increase.--The increase shall be 
                by the same percent as the percent by which the retired 
                pay of the participant is so increased.
            ``(2) Recomputation at age 62.--When the retired pay of a 
        person who first became a member of a uniformed service on or 
        after August 1, 1986, and who is a participant in the Plan is 
        recomputed under section 1410 of this title upon the person's 
        becoming 62 years of age, the base amount applicable to that 
        person shall be recomputed (effective on the effective date of 
        the recomputation of such retired pay under section 1410 of this 
        title) so as to be the amount equal to the amount of the base 
        amount that would be in effect on that date if increases in such 
        base amount under paragraph (1) had been computed as provided in 
        paragraph (2) of section 1401a(b) of this title (rather than 
        under paragraph (3) of that section).
            ``(3) Disregarding of retired pay reductions for retirement 
        before 30 years of service.--Computation of a member's retired 
        pay for purposes of this section shall be made without regard to 
        any reduction under section 1409(b)(2) of this title.

    ``(i) Recomputation of Annuity for Certain Beneficiaries.--In the 
case of an annuity under the Plan which is computed on the basis of the 
retired pay of a person who would have been entitled to have that 
retired pay recomputed under section 1410 of this title upon attaining 
62 years of age, but who dies before attaining that age, the annuity 
shall be recomputed, effective on the first day of the first month 
beginning after the date on which the member or former member would have 
attained 62 years of age, so as to be the amount equal to the amount of 
the annuity that would be in effect on that date if increases

[[Page 110 STAT. 2572]]

under subsection (h)(1) in the base amount applicable to that annuity to 
the time of the death of the member or former member, and increases in 
such annuity under subsection (g)(1), had been computed as provided in 
paragraph (2) of section 1401a(b) of this title (rather than under 
paragraph (3) of that section).

``Sec. 1452. Reduction in retired pay

    ``(a) Spouse and Former Spouse Annuities.--
            ``(1) Required reduction in retired pay.--Except as provided 
        in subsection (b), the retired pay of a participant in the Plan 
        who is providing spouse coverage (as described in paragraph (5)) 
        shall be reduced as follows:
                    ``(A) Standard annuity.--If the annuity coverage 
                being providing is a standard annuity, the reduction 
                shall be as follows:
                          ``(i) Disability and nonregular service re- 
                      tirees.--In the case of a person who is entitled 
                      to retired pay under chapter 61 or chapter 1223 of 
                      this title, the reduction shall be in whichever of 
                      the alternative reduction amounts is more 
                      favorable to that person.
                          ``(ii) Members as of enactment of flat-rate 
                      reduction.--In the case of a person who first 
                      became a member of a uniformed service before 
                      March 1, 1990, the reduction shall be in whichever 
                      of the alternative reduction amounts is more 
                      favorable to that person.
                          ``(iii) New entrants after enactment of flat-
                      rate reduction.--In the case of a person who first 
                      becomes a member of a uniformed service on or 
                      after March 1, 1990, and who is entitled to 
                      retired pay under a provision of law other than 
                      chapter 61 or chapter 1223 of this title, the 
                      reduction shall be in an amount equal to 6\1/2\ 
                      percent of the base amount.
                          ``(iv) Alternative reduction amounts.--For 
                      purposes of clauses (i) and (ii), the alternative 
                      reduction amounts are the following:
                                    ``(I) Flat-rate reduction.--An 
                                amount equal to 6\1/2\ percent of the 
                                base amount.
                                    ``(II) Amount under pre-flat-rate 
                                reduction.--An amount equal to 2\1/2\ 
                                percent of the first $337 (as adjusted 
                                after November 1, 1989, under paragraph 
                                (4)) of the base amount plus 10 percent 
                                of the remainder of the base amount.
                    ``(B) Reserve-component annuity.--If the annuity 
                coverage being provided is a reserve-component annuity, 
                the reduction shall be in whichever of the following 
                amounts is more favorable to that person:
                          ``(i) Flat-rate reduction.--An amount equal to 
                      6\1/2\ percent of the base amount plus an amount 
                      determined in accordance with regulations 
                      prescribed by the Secretary of Defense as a 
                      premium for the additional coverage provided 
                      through
reserve-component annuity coverage under the Plan.
                          ``(ii) Amount under pre-flat-rate reduction.--
                      An amount equal to 2\1/2\ percent of the first 
                      $337 (as adjusted after November 1, 1989, under 
                      paragraph (4)) of the base amount plus 10 percent 
                      of the remain

[[Page 110 STAT. 2573]]

                      der of the base amount plus an amount determined 
                      in accordance with regulations prescribed by the 
                      Secretary of Defense as a premium for the 
                      additional coverage provided through reserve-
                      component annuity coverage under the Plan.
            ``(2) <<NOTE: Regulations.>>  Additional reduction for child 
        coverage.--If there is a dependent child as well as a spouse or 
        former spouse, the amount prescribed under paragraph (1) shall 
        be increased by an amount prescribed under regulations of the 
        Secretary of Defense.
            ``(3) No reduction when no beneficiary.--The reduction in 
        retired pay prescribed by paragraph (1) shall not be applicable 
        during any month in which there is no eligible spouse or former 
        spouse beneficiary.
            ``(4) Periodic adjustments.--
                    ``(A) Adjustments for increases in rates of basic 
                pay.--Whenever there is an increase in the rates of 
                basic pay of members of the uniformed services effective 
                on or after October 1, 1985, the amounts under paragraph 
                (1) with respect to which the percentage factor of 2\1/
                2\ is applied shall be increased by the overall 
                percentage of such increase in the rates of basic pay. 
                The increase under the preceding sentence shall apply 
                only with respect to persons whose retired pay is 
                computed based on the rates of basic pay in effect on or 
                after the date of such increase in rates of basic pay.
                    ``(B) Adjustments for retired pay colas.--In 
                addition to the increase under subparagraph (A), the 
                amounts under paragraph (1) with respect to which the 
                percentage factor of 2\1/2\ is applied shall be further 
                increased at the same time and by the same percentage as 
                an increase in retired pay under section 1401a of this 
                title effective on or after October 1, 1985. Such 
                increase under the preceding sentence shall apply only 
                with respect to a person who initially participates in 
                the Plan on a date which is after both the effective 
                date of such increase under section 1401a and the 
                effective date of the rates of basic pay upon which that 
                person's retired pay is computed.
            ``(5) Spouse coverage described.--For the purposes of 
        paragraph (1), a participant in the Plan who is providing spouse 
        coverage is a participant who--
                    ``(A) has (i) a spouse or former spouse, or (ii) a 
                spouse or former spouse and a dependent child; and
                    ``(B) has not elected to provide an annuity to a 
                person design