[Appendix, Budget of the United States Government, Fiscal Year 1999]
[Page 303-314]
[DOCID:1999_app_mil-11]
From the Budget of the U.S., FY 1999 Online via GPO Access
[wais.access.gpo.gov]

 
                GENERAL PROVISIONS--DEPARTMENT OF DEFENSE

    Sec. 8001. No part of any appropriation contained in this Act shall 
be used for publicity or propaganda purposes not authorized by the 
Congress.
    [Sec. 8002. During the current fiscal year, provisions of law 
prohibiting the payment of compensation to, or employment of, any person 
not a citizen of the United States shall not apply to personnel of the 
Department of Defense: Provided, That salary increases granted to direct 
and indirect hire foreign national employees of the Department of 
Defense funded by this Act shall not be at a rate in excess of the 
percentage increase authorized by law for civilian employees of the 
Department of Defense whose pay is computed under the provisions of 
section 5332 of title 5, United States Code, or at a rate in excess of 
the percentage increase provided by the appropriate host nation to its 
own employees, whichever is higher: Provided further, That this section 
shall not apply to Department of Defense foreign service national 
employees serving at United States diplomatic missions whose pay is set 
by the Department of State under the Foreign Service Act of 1980: 
Provided further, That the limitations of this provision shall not apply 
to foreign national employees of the Department of Defense in the 
Republic of Turkey.]
    Sec. [8003] 8002. No part of any appropriation contained in this Act 
shall remain available for obligation beyond the current fiscal year, 
unless expressly so provided herein.
    Sec. [8004] 8003. No more than 20 per centum of the appropriations 
in this Act which are limited for obligation during the current fiscal 
year shall be obligated during the last two months of the fiscal year: 
Provided, That this section shall not apply to obligations for support 
of active duty training of reserve components or summer camp training of 
the Reserve Officers' Training Corps.

                           (transfer of funds)

    Sec. [8005] 8004. Upon determination by the Secretary of Defense 
that such action is necessary in the national interest, he may, with the 
approval of the Office of Management and Budget, transfer not to exceed 
$2,000,000,000 of working capital funds of the Department of Defense or 
funds made available in this Act to the Department of Defense for 
military functions (except military construction) between such 
appropriations or funds or any subdivision thereof, to be merged with 
and to be available for the same purposes, and for the same time period, 
as the appropriation or fund to which transferred: Provided, That such 
authority to transfer may not be used unless for higher priority items, 
based on unforeseen military requirements, than those for which 
originally appropriated and in no case where the item for which funds 
are requested has been denied by Congress: Provided further,That the 
Secretary of Defense shall notify the Congress promptly of all transfers 
made pursuant to this authority or any other authority in this Act: 
Provided further, That no part of the funds in this Act shall be 
available to prepare or present a request to the Committees on 
Appropriations for reprogramming of funds, unless for higher priority 
items, based on unforeseen military requirements, than those for which 
originally appropriated and in no case where the item for which 
reprogramming is requested has been denied by the Congress[: Provided 
further, That of the authority provided under this section, not to 
exceed $65,000,000 shall be available to meet requirements for 
termination of the Reserve Mobilization Insurance Program, 
notwithstanding chapter 1214 of title 10, United States Code].

                           (transfer of funds)

    Sec. [8006] 8005. During the current fiscal year, cash balances in 
working capital funds of the Department of Defense established pursuant 
to section 2208 of title 10, United States Code, may be maintained in 
only such amounts as are necessary at any time for cash disbursements to 
be made from such funds: Provided, That transfers may be made between 
such funds: Provided further, That transfers may be made between working 
capital funds and the ``Foreign Currency Fluctuations, Defense'' 
appropriation and the ``Operation and Maintenance'' appropriation 
accounts in such amounts as may be determined by the Secretary of 
Defense, with the approval of the Office of Management and Budget, 
except that such transfers may not be made unless the Secretary of 
Defense has notified the Congress of the proposed transfer. Except in 
amounts equal to the amounts appropriated to working capital funds in 
this Act, no obligations may be made against a working capital fund to 
procure or increase the value of war reserve material inventory, unless 
the Secretary of Defense has notified the Congress prior to any such 
obligation.
    [Sec. 8007. Funds appropriated by this Act may not be used to 
initiate a special access program without prior notification 30 calendar 
days in session in advance to the congressional defense committees.]
    Sec. [8008] 8006. [(a) None of the funds provided in this Act shall 
be available to initiate: (1) a multiyear contract that employs economic 
order quantity procurement in excess of $20,000,000 in any one year of 
the contract or that includes an unfunded contingent liability in excess 
of $20,000,000; or (2) a contract for advance procurement leading to a 
multiyear contract that employs economic order quantity procurement in 
excess of $20,000,000 in any one year, unless the congressional defense 
committees have been notified at least 30 days in advance of the 
proposed contract award: Provided, That no part of any appropriation 
contained in this Act shall be available to initiate a multiyear 
contract for which the economic order quantity advance procurement is 
not funded at least to the limits of the Government's liability: 
Provided further, That no part of any appropriation contained in this 
Act shall be available to initiate multiyear procurement contracts for 
any systems or component thereof if the value of the multiyear contract 
would exceed $500,000,000 unless specifically provided in this Act: 
Provided further, That no multiyear procurement contract can be 
terminated without 10-day prior notification to the congressional 
defense committees: Provided further, That the execution of multiyear 
authority shall require the use of a present value analysis to determine 
lowest cost compared to an annual procurement.]
    Funds appropriated in title III of this Act may be used for 
multiyear procurement contracts as follows:
        [Apache Longbow radar;]
         AV-8B aircraft; [and
         Family of Medium Tactical Vehicles.]
        E-2C aircraft;
        T-45 aircraft;
        Medium Tactical Vehicle Replacement (MTVR) vehicle; and
        Longbow Hellfire missile.
    [(b) None of the funds provided in this Act and hereafter may be 
used to submit to Congress (or to any committee of Congress) a request 
for authority to enter into a contract covered by those provisions of 
subsection (a) that precede the first proviso of that subsection 
unless--
         (1) such request is made as part of the submission of the 
    President's Budget for the United States Government for any fiscal 
    year and is set forth in the Appendix to that budget as part of

[[Page 304]]

     proposed legislative language for appropriations bills for the next 
    fiscal year; or
         (2) such request is formally submitted by the President as a 
    budget amendment; or
         (3) the Secretary of Defense makes such request in writing to 
    the congressional defense committees.]
    Sec. [8009] 8007. Within the funds appropriated for the operation 
and maintenance of the Armed Forces, funds are hereby appropriated 
pursuant to section 401 of title 10, United States Code, for 
humanitarian and civic assistance costs under chapter 20 of title 10, 
United States Code. Such funds may also be obligated for humanitarian 
and civic assistance costs incidental to authorized operations and 
pursuant to authority granted in section 401 of chapter 20 of title 10, 
United States Code, and these obligations shall be reported to Congress 
on September 30 of each year: Provided, That funds available for 
operation and maintenance shall be available for providing humanitarian 
and similar assistance by using Civic Action Teams in the Trust 
Territories of the Pacific Islands and freely associated states of 
Micronesia, pursuant to the Compact of Free Association as authorized by 
Public Law 99-239: Provided further, That upon a determination by the 
Secretary of the Army that such action is beneficial for graduate 
medical education programs conducted at Army medical facilities located 
in Hawaii, the Secretary of the Army may authorize the provision of 
medical services at such facilities and transportation to such 
facilities, on a nonreimbursable basis, for civilian patients from 
American Samoa, the Commonwealth of the Northern Mariana Islands, the 
Marshall Islands, the Federated States of Micronesia, Palau, and Guam.
    [Sec. 8010. (a) During fiscal year 1998, the civilian personnel of 
the Department of Defense may not be managed on the basis of any end-
strength, and the management of such personnel during that fiscal year 
shall not be subject to any constraint or limitation (known as an end-
strength) on the number of such personnel who may be employed on the 
last day of such fiscal year.
     (b) The fiscal year 1999 budget request for the Department of 
Defense as well as all justification material and other documentation 
supporting the fiscal year 1999 Department of Defense budget request 
shall be prepared and submitted to the Congress as if subsections (a) 
and (b) of this provision were effective with regard to fiscal year 
1999.
     (c) Nothing in this section shall be construed to apply to military 
(civilian) technicians.]
    [Sec. 8011. Notwithstanding any other provision of law, none of the 
funds made available by this Act shall be used by the Department of 
Defense to exceed, outside the 50 United States, its territories, and 
the District of Columbia, 125,000 civilian workyears: Provided, That 
workyears shall be applied as defined in the Federal Personnel Manual: 
Provided further, That workyears expended in dependent student hiring 
programs for disadvantaged youths shall not be included in this workyear 
limitation.]
    Sec. [8012] 8008. None of the funds made available by this Act shall 
be used in any way, directly or indirectly, to influence congressional 
action on any legislation or appropriation matters pending before the 
Congress.
    Sec. [8013] 8009. (a) None of the funds appropriated by this Act 
shall be used to make contributions to the Department of Defense 
Education Benefits Fund pursuant to section 2006(g) of title 10, United 
States Code, representing the normal cost for future benefits under 
section 3015(c) of title 38, United States Code, for any member of the 
armed services who, on or after the date of enactment of this Act--
         (1) enlists in the armed services for a period of active duty 
    of less than three years; or
         (2) receives an enlistment bonus under section 308a or 308f of 
    title 37, United States Code,
nor shall any amounts representing the normal cost of such future 
benefits be transferred from the Fund by the Secretary of the Treasury 
to the Secretary of Veterans Affairs pursuant to section 2006(d) of 
title 10, United States Code; nor shall the Secretary of Veterans 
Affairs pay such benefits to any such member: Provided, That in the case 
of a member covered by clause (1), these limitations shall not apply to 
members in combat arms skills or to members who enlist in the armed 
services on or after July 1, 1989, under a program continued or 
established by the Secretary of Defense in fiscal year 1991 to test the 
cost-effective use of special recruiting incentives involving not more 
than nineteen noncombat arms skills approved in advance by the Secretary 
of Defense: Provided further, That this subsection applies only to 
active components of the Army.
     (b) None of the funds appropriated by this Act shall be available 
for the basic pay and allowances of any member of the Army participating 
as a full-time student and receiving benefits paid by the Secretary of 
Veterans Affairs from the Department of Defense Education Benefits Fund 
when time spent as a full-time student is credited toward completion of 
a service commitment: Provided, That this subsection shall not apply to 
those members who have reenlisted with this option prior to October 1, 
1987: Provided further, That this subsection applies only to active 
components of the Army.
    [Sec. 8014. None of the funds appropriated by this Act shall be 
available to convert to contractor performance an activity or function 
of the Department of Defense that, on or after the date of enactment of 
this Act, is performed by more than ten Department of Defense civilian 
employees until a most efficient and cost-effective organization 
analysis is completed on such activity or function and certification of 
the analysis is made to the Committees on Appropriations of the House of 
Representatives and the Senate: Provided, That this section shall not 
apply to a commercial or industrial type function of the Department of 
Defense that: (1) is included on the procurement list established 
pursuant to section 2 of the Act of June 25, 1938 (41 U.S.C. 47), 
popularly referred to as the Javits-Wagner-O'Day Act; (2) is planned to 
be converted to performance by a qualified nonprofit agency for the 
blind or by a qualified nonprofit agency for other severely handicapped 
individuals in accordance with that Act; or (3) is planned to be 
converted to performance by a qualified firm under 51 per centum Native 
American ownership.]

                           (transfer of funds)

    Sec. [8015] 8010. Funds appropriated in title III of this Act for 
the Department of Defense Pilot Mentor-Protege Program may be 
transferred to any other appropriation contained in this Act solely for 
the purpose of implementing a Mentor-Protege Program developmental 
assistance agreement pursuant to section 831 of the National Defense 
Authorization Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 
2301 note), as amended, under the authority of this provision or any 
other transfer authority contained in this Act.
    [Sec. 8016. None of the funds in this Act may be available for the 
purchase by the Department of Defense (and its departments and agencies) 
of welded shipboard anchor and mooring chain 4 inches in diameter and 
under unless the anchor and mooring chain are manufactured in the United 
States from components which are substantially manufactured in the 
United States: Provided, That for the purpose of this section 
manufactured will include cutting, heat treating, quality control, 
testing of chain and welding (including the forging and shot blasting 
process): Provided further, That for the purpose of this section 
substantially all of the components of anchor and mooring chain shall be 
considered to be produced or manufactured in the United States if the 
aggregate cost of the components produced or manufactured in the United 
States exceeds the aggregate cost of the components produced or 
manufactured outside the United States: Provided further, That when 
adequate domestic supplies are not available to meet Department of 
Defense requirements on a timely basis, the Secretary of the service 
responsible for the procurement may waive this restriction on a case-by-
case basis by certifying in writing to the Committees on Appropriations 
that such an acquisition must be made in order to acquire capability for 
national security purposes.]
    Sec. [8017] 8011. None of the funds appropriated by this Act 
available for the Civilian Health and Medical Program of the Uniformed 
Services (CHAMPUS) shall be available for the reimbursement of any 
health care provider for inpatient mental health service for care 
received when a patient is referred to a provider of inpatient mental 
health care or residential treatment care by a medical or health care 
professional having an economic interest in the facility to which the 
patient is referred: Provided, That this limitation does not apply in 
the case of inpatient mental health services provided under the program 
for [the handicapped] persons with disabilities under subsection (d) of 
section 1079 of title 10, United States Code, provided as partial 
hospital care, or provided pursuant to a waiver authorized by the 
Secretary of Defense because of medical or psychological circumstances 
of the patient that are confirmed by a health professional who is not a 
Federal employee after a review, pursuant to rules prescribed by the 
Secretary, which takes into account the appropriate level of care for 
the patient, the intensity of services required by the patient, and the 
availability of that care.

[[Page 305]]

    Sec. [8018] 8012. Funds available in this Act may be used to provide 
transportation for the next-of-kin of individuals who have been 
prisoners of war or missing in action from the Vietnam era to an annual 
meeting in the United States, under such regulations as the Secretary of 
Defense may prescribe.
    Sec. [8019] 8013. Notwithstanding any other provision of law, during 
the current fiscal year, the Secretary of Defense may, by executive 
agreement, establish with host nation governments in NATO member states 
a separate account into which such residual value amounts negotiated in 
the return of United States military installations in NATO member states 
may be deposited, in the currency of the host nation, in lieu of direct 
monetary transfers to the United States Treasury: Provided, That such 
credits may be utilized only for the construction of facilities to 
support United States military forces in that host nation, or such real 
property maintenance and base operating costs that are currently 
executed through monetary transfers to such host nations[: Provided 
further,That the Department of Defense's budget submission for fiscal 
year 1999 shall identify such sums anticipated in residual value 
settlements, and identify such construction, real property maintenance 
or base operating costs that shall be funded by the host nation through 
such credits: Provided further, That all military construction projects 
to be executed from such accounts must be previously approved in a prior 
Act of Congress: Provided further, That each such executive agreement 
with a NATO member host nation shall be reported to the congressional 
defense committees, the Committee on International Relations of the 
House of Representatives and the Committee on Foreign Relations of the 
Senate 30 days prior to the conclusion and endorsement of any such 
agreement established under this provision].
    [Sec. 8020. None of the funds available to the Department of Defense 
may be used to demilitarize or dispose of M-1 Carbines, M-1 Garand 
rifles, M-14 rifles, .22 caliber rifles, .30 caliber rifles, or M-1911 
pistols.]
    Sec. [8021] 8014. Notwithstanding any other provision of law, none 
of the funds appropriated by this Act shall be available to pay more 
than 50 per centum of an amount paid to any person under section 308 of 
title 37, United States Code, in a lump sum.
    [Sec. 8022. No more than $500,000 of the funds appropriated or made 
available in this Act shall be used during a single fiscal year for any 
single relocation of an organization, unit, activity or function of the 
Department of Defense into or within the National Capital Region: 
Provided, That the Secretary of Defense may waive this restriction on a 
case-by-case basis by certifying in writing to the congressional defense 
committees that such a relocation is required in the best interest of 
the Government.]
    Sec. [8023] 8015. A member of a reserve component whose unit or 
whose residence is located in a State which is not contiguous with 
another State is authorized to travel in a space required status on 
aircraft of the Armed Forces between home and place of inactive duty 
training, or place of duty in lieu of unit training assembly, when there 
is no road or railroad transportation (or combination of road and 
railroad transportation between those locations): Provided, That a 
member traveling in that status on a military aircraft pursuant to the 
authority provided in this section is not authorized to receive travel, 
transportation, or per diem allowances in connection with that travel.
    [Sec. 8024. In addition to funds provided elsewhere in this Act, 
$8,000,000 is appropriated only for incentive payments authorized by 
section 504 of the Indian Financing Act of 1974, 25 U.S.C. 1544: 
Provided, That these payments shall be available only to contractors 
which have submitted subcontracting plans pursuant to 15 U.S.C. 637(d), 
and according to regulations which shall be promulgated by the Secretary 
of Defense within 90 days of the passage of this Act: Provided further, 
That contractors participating in the test program established by 
section 854 of Public Law 101-189 (15 U.S.C. 637 note) shall be eligible 
for the program established by section 504 of the Indian Financing Act 
of 1974 (25 U.S.C. 1544).]
    [Sec. 8025. During the current fiscal year, none of the funds 
available to the Department of Defense may be used to procure or acquire 
(1) defensive handguns unless such handguns are the M-9 or M-11 9mm 
Department of Defense standard handguns, or (2) offensive handguns 
except for the Special Operations Forces: Provided, That the foregoing 
shall not apply to handguns and ammunition for marksmanship 
competitions.]
    Sec. [8026] 8016. During the current fiscal year, funds appropriated 
or otherwise available for any Federal agency, the Congress, the 
judicial branch, or the District of Columbia may be used for the pay, 
allowances, and benefits of an employee as defined by section 2105 of 
title 5, United States Code, or an individual employed by the government 
of the District of Columbia, permanent or temporary indefinite, who--
         (1) is a member of a Reserve component of the Armed Forces, as 
    described in section 10101 of title 10, United States Code, or the 
    National Guard, as described in section 101 of title 32;
         (2) performs, for the purpose of providing military aid to 
    enforce the law or providing assistance to civil authorities in the 
    protection or saving of life or property or prevention of injury--
             (A) Federal service under sections 331, 332, 333, or 12406 
        of title 10, or other provision of law, as applicable; or
             (B) full-time military service for his or her State, the 
        District of Columbia, the Commonwealth of Puerto Rico, or a 
        territory of the United States; and
         (3) requests and is granted--
             (A) leave under the authority of this section; or
             (B) annual leave, which may be granted without regard to 
        the provisions of sections 5519 and 6323(b) of title 5, if such 
        employee is otherwise entitled to such annual leave: Provided, 
        That any employee who requests leave under subsection (3)(A) for 
        service described in subsection (2) of this section is entitled 
        to such leave, subject to the provisions of this section and of 
        the last sentence of section 6323(b) of title 5, and such leave 
        shall be considered leave under section 6323(b) of title 5.
    [Sec. 8027. None of the funds appropriated by this Act shall be 
available to perform any cost study pursuant to the provisions of OMB 
Circular A-76 if the study being performed exceeds a period of 24 months 
after initiation of such study with respect to a single function 
activity or 48 months after initiation of such study for a multi-
function activity.]
    Sec. [8028] 8017. Funds appropriated by this Act for the American 
Forces Information Service shall not be used for any national or 
international political or psychological activities.
    Sec. [8029] 8018. Notwithstanding any other provision of law or 
regulation, the Secretary of Defense may adjust wage rates for civilian 
employees hired for certain health care occupations as authorized for 
the Secretary of Veterans Affairs by section 7455 of title 38, United 
States Code.
    [Sec. 8030. None of the funds appropriated or made available in this 
Act shall be used to reduce or disestablish the operation of the 53rd 
Weather Reconnaissance Squadron of the Air Force Reserve, if such action 
would reduce the WC-130 Weather Reconnaissance mission below the levels 
funded in this Act.]
    Sec. [8031] 8019. (a) Of the funds for the procurement of supplies 
or services appropriated by this Act, qualified nonprofit agencies for 
the blind or other severely handicapped shall be afforded the maximum 
practicable opportunity to participate as subcontractors and suppliers 
in the performance of contracts let by the Department of Defense.
     (b) During the current fiscal year, a business concern which has 
negotiated with a military service or defense agency a subcontracting 
plan for the participation by small business concerns pursuant to 
section 8(d) of the Small Business Act (15 U.S.C. 637(d)) shall be given 
credit toward meeting that subcontracting goal for any purchases made 
from qualified nonprofit agencies for the blind or other severely 
handicapped.
     (c) For the purpose of this section, the phrase ``qualified 
nonprofit agency for the blind or other severely handicapped'' means a 
nonprofit agency for the blind or other severely handicapped that has 
been approved by the Committee for the Purchase from the Blind and Other 
Severely Handicapped under the Javits-Wagner-O'Day Act (41 U.S.C. 46-
48).
    Sec. [8032] 8020. During the current fiscal year, net receipts 
pursuant to collections from third party payers pursuant to section 1095 
of title 10, United States Code, shall be made available to the local 
facility of the uniformed services responsible for the collections and 
shall be over and above the facility's direct budget amount.
    Sec. [8033] 8021. During the current fiscal year, the Department of 
Defense is authorized to incur obligations of not to exceed $350,000,000 
for purposes specified in section 2350j(c) of title 10, United States 
Code, in anticipation of receipt of contributions, only from the 
Government of Kuwait, under that section: Provided, That, upon receipt, 
such contributions from the Government of Kuwait shall be credited to 
the appropriations or fund which incurred such obligations.

[[Page 306]]

    [Sec. 8034. Of the funds made available in this Act, not less than 
$26,247,000 shall be available for the Civil Air Patrol, of which 
$22,702,000 shall be available for operation and maintenance.]
    Sec. [8035] 8022. [(a) None of the funds appropriated in this Act 
are available to establish a new Department of Defense (department) 
federally funded research and development center (FFRDC), either as a 
new entity, or as a separate entity administrated by an organization 
managing another FFRDC, or as a nonprofit membership corporation 
consisting of a consortium of other FFRDCs and other non-profit 
entities.]
     [(b)] Limitation on Compensation-Federally Funded Research and 
Development Center (FFRDC).--No member of a Board of Directors, 
Trustees, Overseers, Advisory Group, Special Issues Panel, Visiting 
Committee, or any similar entity of a defense FFRDC, and no paid 
consultant to any defense FFRDC, may be compensated for his or her 
services as a member of such entity, or as a paid consultant, except 
under the same conditions, and to the same extent, as members of the 
Defense Science Board: Provided, That a member of any such entity 
referred to previously in this subsection shall be allowed travel 
expenses and per diem as authorized under the Federal Joint Travel 
Regulations, when engaged in the performance of membership duties.
     [(c) Notwithstanding any other provision of law, none of the funds 
available to the department from any source during fiscal year 1998 may 
be used by a defense FFRDC, through a fee or other payment mechanism, 
for charitable contributions, for construction of new buildings, for 
payment of cost sharing for projects funded by Government grants, or for 
absorption of contract overruns.
     (d) Notwithstanding any other provision of law, of the funds 
available to the department during fiscal year 1998, not more than 6,206 
staff years of technical effort (staff years) may be funded for defense 
FFRDCs: Provided, That of the specific amount referred to previously in 
this subsection, not more than 1,105 staff years may be funded for the 
defense studies and analysis FFRDCs.
     (e) Notwithstanding any other provision of law, the Secretary of 
Defense shall control the total number of staff years to be performed by 
defense FFRDCs during fiscal year 1998 so as to reduce the total amounts 
appropriated in titles II, III, and IV of this Act by $71,800,000: 
Provided, That the total amounts appropriated in titles II, III, and IV 
of this Act are hereby reduced by $71,800,000 to reflect savings from 
the use of defense FFRDCs by the department.
     (f) Within 60 days after enactment of this Act, the Secretary of 
Defense shall submit to the congressional defense committees a report 
presenting the specific amounts of staff years of technical effort to be 
allocated by the department for each defense FFRDC during fiscal year 
1998: Provided, That, after the submission of the report required by 
this subsection, the department may not reallocate more than five per 
centum of an FFRDC's staff years among other defense FFRDCs until 30 
days after a detailed justification for any such reallocation is 
submitted to the congressional defense committees.
     (g) The Secretary of Defense shall, with the submission of the 
department's fiscal year 1999 budget request, submit a report presenting 
the specific amounts of staff years of technical effort to be allocated 
for each defense FFRDC during that fiscal year.
     (h) No part of the reductions contained in subsection (e) of this 
section may be applied against any budget activity, activity group, 
subactivity group, line item, program element, program, project, 
subproject or activity which does not fund defense FFRDC activities 
within each appropriation account, and the reductions in subsection (e) 
shall be allocated on a proportional basis.
     (i) Not later than 90 days after enactment of this Act, the 
Secretary of Defense shall submit to the congressional defense 
committees a report listing the specific funding reductions allocated to 
each category listed in subsection (h) above pursuant to this section.]
    [Sec. 8036. None of the funds in this or any other Act shall be 
available for the preparation of studies on--
         (1) the cost effectiveness or feasibility of removal and 
    transportation of unitary chemical weapons or agents from the 8 
    chemical storage sites within the continental United States to 
    Johnston Atoll: Provided, That this prohibition shall not apply to 
    General Accounting Office studies requested by a Member of Congress 
    or a Congressional Committee; and
         (2) the potential future uses of the 9 chemical disposal 
    facilities other than for the destruction of stockpile chemical 
    munitions and as limited by section 1412(c)(2), Public Law 99-145: 
    Provided, That this prohibition does not apply to future use studies 
    for the CAMDS facility at Tooele, Utah.]
    [Sec. 8037. None of the funds appropriated or made available in this 
Act shall be used to procure carbon, alloy or armor steel plate for use 
in any Government-owned facility or property under the control of the 
Department of Defense which were not melted and rolled in the United 
States or Canada: Provided, That these procurement restrictions shall 
apply to any and all Federal Supply Class 9515, American Society of 
Testing and Materials (ASTM) or American Iron and Steel Institute (AISI) 
specifications of carbon, alloy or armor steel plate: Provided 
further,That the Secretary of the military department responsible for 
the procurement may waive this restriction on a case-by-case basis by 
certifying in writing to the Committees on Appropriations of the House 
of Representatives and the Senate that adequate domestic supplies are 
not available to meet Department of Defense requirements on a timely 
basis and that such an acquisition must be made in order to acquire 
capability for national security purposes: Provided further, That these 
restrictions shall not apply to contracts which are in being as of the 
date of enactment of this Act.]
    [Sec. 8038. For the purposes of this Act, the term ``congressional 
defense committees'' means the National Security Committee of the House 
of Representatives, the Armed Services Committee of the Senate, the 
Subcommittee on Defense of the Committee on Appropriations of the 
Senate, and the Subcommittee on National Security of the Committee on 
Appropriations of the House of Representatives.]
    Sec. [8039] 8023. During the current fiscal year, the Department of 
Defense may acquire the modification, depot maintenance and repair of 
aircraft, vehicles and vessels as well as the production of components 
and other Defense-related articles, through competition between 
Department of Defense depot maintenance activities and private firms: 
Provided, That the Senior Acquisition Executive of the military 
department or defense agency concerned, with power of delegation, shall 
certify that successful bids include comparable estimates of all direct 
and indirect costs for both public and private bids: Provided further, 
That Office of Management and Budget Circular A-76 shall not apply to 
competitions conducted under this section.
    [Sec. 8040. (a)(1) If the Secretary of Defense, after consultation 
with the United States Trade Representative, determines that a foreign 
country which is party to an agreement described in paragraph (2) has 
violated the terms of the agreement by discriminating against certain 
types of products produced in the United States that are covered by the 
agreement, the Secretary of Defense shall rescind the Secretary's 
blanket waiver of the Buy American Act with respect to such types of 
products produced in that foreign country.
     (2) An agreement referred to in paragraph (1) is any reciprocal 
defense procurement memorandum of understanding, between the United 
States and a foreign country pursuant to which the Secretary of Defense 
has prospectively waived the Buy American Act for certain products in 
that country.
     (b) The Secretary of Defense shall submit to Congress a report on 
the amount of Department of Defense purchases from foreign entities in 
fiscal year 1998. Such report shall separately indicate the dollar value 
of items for which the Buy American Act was waived pursuant to any 
agreement described in subsection (a)(2), the Trade Agreement Act of 
1979 (19 U.S.C. 2501 et seq.), or any international agreement to which 
the United States is a party.
     (c) For purposes of this section, the term ``Buy American Act'' 
means title III of the Act entitled ``An Act making appropriations for 
the Treasury and Post Office Departments for the fiscal year ending June 
30, 1934, and for other purposes'', approved March 3, 1933 (41 U.S.C. 
10a et seq.).]
    [Sec. 8041. The total amounts appropriated in titles II, III, and IV 
of this Act are hereby reduced by $300,000,000 to reflect savings from 
the use of advisory and assistance services by the Department of 
Defense: Provided, That the savings shall be applied to the following 
titles in the following amounts:
         Title II, Operation and Maintenance, $112,000,000;
         Title III, Procurement, $62,000,000; and
         Title IV, Research, Development, Test and Evaluation, 
    $126,000,000: Provided further, That the savings specified shall be 
    applied only to funds budgeted to purchase advisory and assistance 
    services: Provided further,That the savings shall be applied on a 
    pro-rata basis to each program, project and activity which included 
    budget funds for advisory and assistance services.]
    Sec. [8042] 8024. Appropriations contained in this Act that remain 
available at the end of the current fiscal year as a result of energy

[[Page 307]]

cost savings realized by the Department of Defense shall remain 
available for obligation for the next fiscal year to the extent, and for 
the purposes, provided in section 2865 of title 10, United States Code.
    [Sec. 8043. Notwithstanding any other provision of this Act, the 
amounts provided in all appropriation accounts in titles III and IV of 
this Act are reduced by 1.5 percent: Provided, That these reductions 
shall be applied on a pro-rata basis to each line item, program element, 
program, project, subproject, and activity within each appropriation 
account: Provided further, That not later than 60 days after the 
enactment of this Act, the Undersecretary of Defense (Comptroller) shall 
submit a report to the congressional defense committees listing the 
specific funding reductions allocated to each category listed in the 
preceding proviso pursuant to this section.]

                      (including transfer of funds)

    Sec. [8044] 8025. Amounts deposited during the current fiscal year 
to the special account established under 40 U.S.C. 485(h)(2) and to the 
special account established under 10 U.S.C. 2667(d)(1) are appropriated 
and shall be available until transferred by the Secretary of Defense to 
current applicable appropriations or funds of the Department of Defense 
under the terms and conditions specified by 40 U.S.C. 485(h)(2)(A) and 
(B) and 10 U.S.C. 2667(d)(1)(B), to be merged with and to be available 
for the same time period and the same purposes as the appropriation to 
which transferred.
    Sec. [8045] 8026. During the current fiscal year, appropriations 
available to the Department of Defense may be used to reimburse a member 
of a reserve component of the Armed Forces who is not otherwise entitled 
to travel and transportation allowances and who occupies transient 
government housing while performing active duty for training or inactive 
duty training: Provided, That such members may be provided lodging in 
kind if transient government quarters are unavailable as if the member 
was entitled to such allowances under subsection (a) of section 404 of 
title 37, United States Code: Provided further, That if lodging in kind 
is provided, any authorized service charge or cost of such lodging may 
be paid directly from funds appropriated for operation and maintenance 
of the reserve component of the member concerned.
    [Sec. 8046. The President shall include with each budget for a 
fiscal year submitted to the Congress under section 1105 of title 31, 
United States Code, materials that shall identify clearly and separately 
the amounts requested in the budget for appropriation for that fiscal 
year for salaries and expenses related to administrative activities of 
the Department of Defense, the military departments, and the Defense 
Agencies.]
    Sec. [8047] 8027. Notwithstanding any other provision of law, funds 
available for ``Drug Interdiction and Counter-Drug Activities, Defense'' 
may be obligated for the Young Marines program.
    [Sec. 8048. Notwithstanding any other provision of this Act, the 
total amount appropriated in title IV of this Act is hereby reduced by 
$474,000,000: Provided, That each program element, program, project, 
subproject, and activity funded in title IV of this Act shall be 
allocated a pro-rata share of any of the reductions made by this 
section: Provided further, That not later than 60 days after the 
enactment of this Act, the Undersecretary of Defense (Comptroller) shall 
submit a report to the congressional defense committees listing the 
specific funding reductions allocated to each category listed in the 
preceding proviso pursuant to this section.]
    Sec. [8049] 8028. During the current fiscal year, amounts contained 
in the Department of Defense Overseas Military Facility Investment 
Recovery Account established by section 2921(c)(1) of the National 
Defense Authorization Act of 1991 (Public Law 101-510; 10 U.S.C. 2687 
note) shall be available until expended for the payments specified by 
section 2921(c)(2) of that Act.
    [Sec. 8050. Of the funds appropriated or otherwise made available by 
this Act, not more than $119,200,000 shall be available for payment of 
the operating costs of NATO Headquarters: Provided, That the Secretary 
of Defense may waive this section for Department of Defense support 
provided to NATO forces in and around the former Yugoslavia.]
    [Sec. 8051. During the current fiscal year, appropriations which are 
available to the Department of Defense for operation and maintenance may 
be used to purchase items having an investment item unit cost of not 
more than $100,000.]
    [Sec. 8052. (a) During the current fiscal year, none of the 
appropriations or funds available to the Department of Defense Working 
Capital Funds shall be used for the purchase of an investment item for 
the purpose of acquiring a new inventory item for sale or anticipated 
sale during the current fiscal year or a subsequent fiscal year to 
customers of the Department of Defense Working Capital Funds if such an 
item would not have been chargeable to the Department of Defense 
Business Operations Fund during fiscal year 1994 and if the purchase of 
such an investment item would be chargeable during the current fiscal 
year to appropriations made to the Department of Defense for 
procurement.
    (b) The fiscal year 1999 budget request for the Department of 
Defense as well as all justification material and other documentation 
supporting the fiscal year 1999 Department of Defense budget shall be 
prepared and submitted to the Congress on the basis that any equipment 
which was classified as an end item and funded in a procurement 
appropriation contained in this Act shall be budgeted for in a proposed 
fiscal year 1999 procurement appropriation and not in the supply 
management business area or any other area or category of the Department 
of Defense Working Capital Funds.]
    [Sec. 8053. None of the funds provided in this Act and hereafter 
shall be available for use by a military department to modify an 
aircraft, weapon, ship or other item of equipment, that the military 
department concerned plans to retire or otherwise dispose of within 5 
years after completion of the modification: Provided, That this 
prohibition shall not apply to safety modifications: Provided further, 
That this prohibition may be waived by the Secretary of a military 
department if the Secretary determines it is in the best national 
security interest of the United States to provide such waiver and so 
notifies the congressional defense committees in writing.]
    Sec. [8054] 8029. None of the funds appropriated by this Act for 
programs of the Central Intelligence Agency shall remain available for 
obligation beyond the current fiscal year, except for funds appropriated 
for the Reserve for Contingencies, which shall remain available until 
September 30, [1999] 2000: Provided, That funds appropriated, 
transferred, or otherwise credited to the Central Intelligence Agency 
Central Services Working Capital Fund during this or any prior or 
subsequent fiscal year shall remain available until expended.
    Sec. [8055] 8030. Notwithstanding any other provision of law, funds 
made available in this Act for the Defense Intelligence Agency may be 
used for the design, development, and deployment of General Defense 
Intelligence Program intelligence communications and intelligence 
information systems for the Services, the Unified and Specified 
Commands, and the component commands.
    [Sec. 8056. Of the funds appropriated by the Department of Defense 
under the heading ``Operation and Maintenance, Defense-Wide'', not less 
than $8,000,000 shall be made available only for the mitigation of 
environmental impacts, including training and technical assistance to 
tribes, related administrative support, the gathering of information, 
documenting of environmental damage, and developing a system for 
prioritization of mitigation and cost to complete estimates for 
mitigation, on Indian lands resulting from Department of Defense 
activities.]
    Sec. [8057] 8031. Amounts collected for the use of the facilities of 
the National Science Center for Communications and Electronics during 
the current fiscal year pursuant to section 1459(g) of the Department of 
Defense Authorization Act, 1986, and deposited to the special account 
established under subsection 1459(g)(2) of that Act are appropriated and 
shall be available until expended for the operation and maintenance of 
the Center as provided for in subsection 1459(g)(2).
    Sec. [8058] 8032. None of the funds appropriated in this Act may be 
used to fill the commander's position at any military medical facility 
with a health care professional unless the prospective candidate can 
demonstrate professional administrative skills.
    Sec. [8059] 8033. (a) None of the funds appropriated in this Act may 
be expended by an entity of the Department of Defense unless the entity, 
in expending the funds, complies with the Buy American Act. For purposes 
of this subsection, the term ``Buy American Act'' means title III of the 
Act entitled ``An Act making appropriations for the Treasury and Post 
Office Departments for the fiscal year ending June 30, 1934, and for 
other purposes'', approved March 3, 1933 (41 U.S.C. 10a et seq.).
     (b) If the Secretary of Defense determines that a person has been 
convicted of intentionally affixing a label bearing a ``Made in 
America'' inscription to any product sold in or shipped to the United 
States that is not made in America, the Secretary shall determine, in 
accordance with section 2410f of title 10, United States Code, whether 
the person should be debarred from contracting with the Department of 
Defense.

[[Page 308]]

     (c) In the case of any equipment or products purchased with 
appropriations provided under this Act, it is the sense of the Congress 
that any entity of the Department of Defense, in expending the 
appropriation, purchase only American-made equipment and products, 
provided that American-made equipment and products are cost-competitive, 
quality-competitive, and available in a timely fashion.
    Sec. [8060] 8034. None of the funds appropriated by this Act shall 
be available for a contract for studies, analysis, or consulting 
services entered into without competition on the basis of an unsolicited 
proposal unless the head of the activity responsible for the procurement 
determines--
         (1) as a result of thorough technical evaluation, only one 
    source is found fully qualified to perform the proposed work; or
         (2) the purpose of the contract is to explore an unsolicited 
    proposal which offers significant scientific or technological 
    promise, represents the product of original thinking, and was 
    submitted in confidence by one source; or
         (3) the purpose of the contract is to take advantage of unique 
    and significant industrial accomplishment by a specific concern, or 
    to insure that a new product or idea of a specific concern is given 
    financial support: Provided, That this limitation shall not apply to 
    contracts in an amount of less than $25,000, contracts related to 
    improvements of equipment that is in development or production, or 
    contracts as to which a civilian official of the Department of 
    Defense, who has been confirmed by the Senate, determines that the 
    award of such contract is in the interest of the national defense.
    Sec. [8061. (a) Except as provided in subsections (b) and (c), none 
of the funds made available by this Act may be used--
         (1) to establish a field operating agency; or
         (2) to pay the basic pay of a member of the Armed Forces or 
    civilian employee of the department who is transferred or reassigned 
    from a headquarters activity if the member or employee's place of 
    duty remains at the location of that headquarters.
     (b) The Secretary of Defense or Secretary of a military department 
may waive the limitations in subsection (a), on a case-by-case basis, if 
the Secretary determines, and certifies to the Committees on 
Appropriations of the House of Representatives and Senate that the 
granting of the waiver will reduce the personnel requirements or the 
financial requirements of the department.
     (c) This section does not apply to field operating agencies funded 
within the National Foreign Intelligence Program.]
    Sec. [8062] 8035. Funds appropriated by this Act for intelligence 
activities are deemed to be specifically authorized by the Congress for 
purposes of section 504 of the National Security Act of 1947 (50 U.S.C. 
414) during fiscal year [1998] 1999 until the enactment of the 
Intelligence Authorization Act for Fiscal Year [1998] 1999.
    Sec. [8063] 8036. Notwithstanding section 303 of Public Law 96-487 
or any other provision of law, the Secretary of the Navy is authorized 
to lease real and personal property at Naval Air Facility, Adak, Alaska, 
pursuant to 10 U.S.C. 2667(f), for commercial, industrial or other 
purposes.
  

                             [(rescissions)]

    [Sec. 8064. Of the funds provided in Department of Defense 
Appropriations Acts, the following funds are hereby rescinded from the 
following accounts in the specified amounts:
         ``Shipbuilding and Conversion, Navy, 1996/2000'', $35,600,000;
         ``Other Procurement, Navy, 1996/1998'', $3,300,000;
         ``Aircraft Procurement, Army, 1997/1999'', $5,000,000;
         ``Procurement of Ammunition, Army, 1997/1999'', $5,000,000;
         ``Other Procurement, Army, 1997/1999'', $6,000,000;
         ``Other Procurement, Navy, 1997/1999'', $2,200,000;
         ``Aircraft Procurement, Navy, 1997/1999'', $24,000,000;
         ``Research, Development, Test and Evaluation, Army, 1997/ 
    1998'', $6,000,000;
         ``Research, Development, Test and Evaluation, Navy, 1997/ 
    1998'', $40,000,000;
         ``Research, Development, Test and Evaluation, Air Force, 1997/ 
    1998'', $25,000,000; and
         ``Research, Development, Test and Evaluation, Defense-Wide, 
    1997/1998'', $24,000,000.]
    [Sec. 8065. None of the funds available in this Act may be used to 
reduce the authorized positions for military (civilian) technicians of 
the Army National Guard, the Air National Guard, Army Reserve and Air 
Force Reserve for the purpose of applying any administratively imposed 
civilian personnel ceiling, freeze, or reduction on military (civilian) 
technicians, unless such reductions are a direct result of a reduction 
in military force structure.]
    [Sec. 8066. None of the funds appropriated or otherwise made 
available in this Act may be obligated or expended for assistance to the 
Democratic People's Republic of North Korea unless specifically 
appropriated for that purpose.]
    Sec. [8067] 8037. During the current fiscal year, funds appropriated 
in this Act are available to compensate members of the National Guard 
for duty performed pursuant to a plan submitted by a Governor of a State 
and approved by the Secretary of Defense under section 112 of title 32, 
United States Code: Provided, That during the performance of such duty, 
the members of the National Guard shall be under State command and 
control: Provided further, That such duty shall be treated as full-time 
National Guard duty for purposes of sections 12602(a)(2) and (b)(2) of 
title 10, United States Code.
    Sec. [8068] 8038. Funds appropriated in this Act for operation and 
maintenance of the Military Departments, Unified and Specified Commands 
and Defense Agencies shall be available for reimbursement of pay, 
allowances and other expenses which would otherwise be incurred against 
appropriations for the National Guard and Reserve when members of the 
National Guard and Reserve provide intelligence  or counterintelligence 
support to Unified Commands, Defense Agencies and Joint Intelligence 
Activities, including the activities and programs included within [the 
General Defense Intelligence Program and the Consolidated Cryptologic 
Program] the National Foreign Intelligence Program (NFIP), the Joint 
Military Intelligence Program (JMIP), and the Tactical Intelligence and 
Related Activities (TIARA) aggregate: Provided, That nothing in this 
section authorizes deviation from established Reserve and National Guard 
personnel and training procedures.
    [Sec. 8069. During the current fiscal year, none of the funds 
appropriated in this Act may be used to reduce the civilian medical and 
medical support personnel assigned to military treatment facilities 
below the September 30, 1997 level: Provided, That the Service Surgeons 
General may waive this section by certifying to the congressional 
defense committees that the beneficiary population is declining in some 
catchment areas and civilian strength reductions may be consistent with 
responsible resource stewardship and capitation-based budgeting.]

                      (including transfer of funds)

    Sec. [8070] 8039. None of the funds appropriated in this Act may be 
transferred to or obligated from the Pentagon Reservation Maintenance 
Revolving Fund, unless the Secretary of Defense certifies that the total 
cost for the planning, design, construction and installation of 
equipment for the renovation of the Pentagon Reservation will not exceed 
$1,118,000,000.
    Sec. [8071] 8040. (a) None of the funds available to the Department 
of Defense for any fiscal year for drug interdiction or counter-drug 
activities may be transferred to any other department or agency of the 
United States except as specifically provided in an appropriations law.
     (b) None of the funds available to the Central Intelligence Agency 
for any fiscal year for drug interdiction and counter-drug activities 
may be transferred to any other department or agency of the United 
States except as specifically provided in an appropriations law.

                           (transfer of funds)

    Sec. [8072] 8041. Appropriations available in this Act under the 
heading ``Operation and Maintenance, Defense-Wide'' for increasing 
energy and water efficiency in Federal buildings may, during their 
period of availability, be transferred to other appropriations or funds 
of the Department of Defense for projects related to increasing energy 
and water efficiency, to be merged with and to be available for the same 
general purposes, and for the same time period, as the appropriation or 
fund to which transferred.
    [Sec. 8073. None of the funds appropriated by this Act may be used 
for the procurement of ball and roller bearings other than those 
produced by a domestic source and of domestic origin: Provided, That the 
Secretary of the military department responsible for such procurement 
may waive this restriction on a case-by-case basis by certifying in 
writing to the Committees on Appropriations of the House of 
Representatives and the Senate, that adequate domestic supplies are not 
available to meet Department of Defense requirements on a timely basis 
and that such an acquisition must be made in order to acquire capability 
for national security purposes.]
    Sec. [8074] 8042. Notwithstanding any other provision of law, funds 
available to the Department of Defense shall be made available

[[Page 309]]

to provide transportation of medical supplies and equipment, on a 
nonreimbursable basis, to American Samoa[: Provided, That 
notwithstanding any other provision of law, funds available to the 
Department of Defense] and shall be made available to provide 
transportation of medical supplies and equipment, on a nonreimbursable 
basis, to the Indian Health Service when it is in conjunction with a 
civil-military project.
    [Sec. 8075. None of the funds in this Act may be used to purchase 
any supercomputer which is not manufactured in the United States, unless 
the Secretary of Defense certifies to the congressional defense 
committees that such an acquisition must be made in order to acquire 
capability for national security purposes that is not available from 
United States manufacturers.]
    Sec. [8076] 8043. Notwithstanding any other provision of law, the 
Naval shipyards of the United States shall be eligible to participate in 
any manufacturing extension program financed by funds appropriated in 
this or any other Act.
    [Sec. 8077. Notwithstanding any other provision of law, each 
contract awarded by the Department of Defense during the current fiscal 
year for construction or service performed in whole or in part in a 
State which is not contiguous with another State and has an unemployment 
rate in excess of the national average rate of unemployment as 
determined by the Secretary of Labor, shall include a provision 
requiring the contractor to employ, for the purpose of performing that 
portion of the contract in such State that is not contiguous with 
another State, individuals who are residents of such State and who, in 
the case of any craft or trade, possess or would be able to acquire 
promptly the necessary skills: Provided, That the Secretary of Defense 
may waive the requirements of this section, on a case-by-case basis, in 
the interest of national security.]
    [Sec. 8078. During the current fiscal year, the Army shall use the 
former George Air Force Base as the airhead for the National Training 
Center at Fort Irwin: Provided, That none of the funds in this Act shall 
be obligated or expended to transport Army personnel into Edwards Air 
Force Base for training rotations at the National Training Center.]
    [Sec. 8079. (a) The Secretary of Defense shall submit, on a 
quarterly basis, a report to the congressional defense committees, the 
Committee on International Relations of the House of Representatives and 
the Committee on Foreign Relations of the Senate setting forth all costs 
(including incremental costs) incurred by the Department of Defense 
during the preceding quarter in implementing or supporting resolutions 
of the United Nations Security Council, including any such resolution 
calling for international sanctions, international peacekeeping 
operations, and humanitarian missions undertaken by the Department of 
Defense. The quarterly report shall include an aggregate of all such 
Department of Defense costs by operation or mission.
     (b) The Secretary of Defense shall detail in the quarterly reports 
all efforts made to seek credit against past United Nations expenditures 
and all efforts made to seek compensation from the United Nations for 
costs incurred by the Department of Defense in implementing and 
supporting United Nations activities.]
    [Sec. 8080. (a) Limitation on Transfer of Defense Articles and 
Services.--Notwithstanding any other provision of law, none of the funds 
available to the Department of Defense for the current fiscal year may 
be obligated or expended to transfer to another nation or an 
international organization any defense articles or services (other than 
intelligence services) for use in the activities described in subsection 
(b) unless the congressional defense committees, the Committee on 
International Relations of the House of Representatives, and the 
Committee on Foreign Relations of the Senate are notified 15 days in 
advance of such transfer.
     (b) Covered Activities.--This section applies to--
         (1) any international peacekeeping or peace-enforcement 
    operation under the authority of chapter VI or chapter VII of the 
    United Nations Charter under the authority of a United Nations 
    Security Council resolution; and
         (2) any other international peacekeeping, peace-enforcement, or 
    humanitarian assistance operation.
     (c) Required Notice.--A notice under subsection (a) shall include 
the following:
         (1) A description of the equipment, supplies, or services to be 
    transferred.
         (2) A statement of the value of the equipment, supplies, or 
    services to be transferred.
         (3) In the case of a proposed transfer of equipment or 
    supplies--
             (A) a statement of whether the inventory requirements of 
        all elements of the Armed Forces (including the reserve 
        components) for the type of equipment or supplies to be 
        transferred have been met; and
             (B) a statement of whether the items proposed to be 
        transferred will have to be replaced and, if so, how the 
        President proposes to provide funds for such replacement.]
    Sec. [8081] 8044. To the extent authorized by subchapter VI of 
chapter 148 of title 10, United States Code, the Secretary of Defense 
shall issue loan guarantees in support of United States defense exports 
not otherwise provided for: Provided, That the total contingent 
liability of the United States for guarantees issued under the authority 
of this section may not exceed $15,000,000,000: Provided further, That 
the exposure fees charged and collected by the Secretary for each 
guarantee, shall be paid by the country involved and shall not be 
financed as part of a loan guaranteed by the United States: Provided 
further,That the Secretary shall provide quarterly reports to the 
Committees on Appropriations, Armed Services and Foreign Relations of 
the Senate and the Committees on Appropriations, National Security and 
International Relations in the House of Representatives on the 
implementation of this program: Provided further, That $1,000,000 of the 
amounts charged for administrative fees and deposited to the special 
account provided for under section 2540c(d) of title 10, shall be 
available until expended for paying the costs of administrative expenses 
of the Department of Defense that are attributable to the loan guarantee 
program under subchapter VI of chapter 148 of title 10.
    [Sec. 8082. None of the funds available to the Department of Defense 
shall be obligated or expended to make a financial contribution to the 
United Nations for the cost of an United Nations peacekeeping activity 
(whether pursuant to assessment or a voluntary contribution) or for 
payment of any United States arrearage to the United Nations.]
    Sec. [8083] 8045. None of the funds available to the Department of 
Defense under this Act shall be obligated or expended to pay a 
contractor under a contract with the Department of Defense for costs of 
any amount paid by the contractor to an [employee] executive when--
         (1) such costs are for a bonus [or otherwise in excess of the 
    normal salary paid by the contractor to the employee; and
         (2) such bonus is part of restructuring costs associated with a 
    business combination.] associated with a change in management 
    control over, or ownership of, the contractor or a substantial 
    portion of its assets.
    [Sec. 8084. (a) None of the funds appropriated or otherwise made 
available in this Act may be used to transport or provide for the 
transportation of chemical munitions or agents to the Johnston Atoll for 
the purpose of storing or demilitarizing such munitions or agents.
     (b) The prohibition in subsection (a) shall not apply to any 
obsolete World War II chemical munition or agent of the United States 
found in the World War II Pacific Theater of Operations.
     (c) The President may suspend the application of subsection (a) 
during a period of war in which the United States is a party.]
    [Sec. 8085. None of the funds provided in title II of this Act for 
``Former Soviet Union Threat Reduction'' may be obligated or expended to 
finance housing for any individual who was a member of the military 
forces of the Soviet Union or for any individual who is or was a member 
of the military forces of the Russian Federation.]
    Sec. [8086] 8046. During the current fiscal year, no more than 
[$10,000,000] $15,000,000 of appropriations made in this Act under the 
heading ``Operation and Maintenance, Defense-Wide'' may be transferred 
to appropriations available for the pay of military personnel, to be 
merged with, and to be available for the same time period as the 
appropriations to which transferred, to be used in support of such 
personnel in connection with support and services for eligible 
organizations and activities outside the Department of Defense pursuant 
to section 2012 of title 10, United States Code.
    Sec. [8087] 8047. For purposes of section 1553(b) of title 31, 
United States Code, any subdivision of appropriations made in this Act 
under the heading ``Shipbuilding and Conversion, Navy'' shall be 
considered to be for the same purpose as any subdivision under the 
heading ``Shipbuilding and Conversion, Navy'' appropriations in any 
prior year, and the 1 percent limitation shall apply to the total amount 
of the appropriation.
    [Sec. 8088. Notwithstanding 31 U.S.C. 1552(a), not more than 
$14,000,000 appropriated under the heading ``Aircraft Procurement, Air 
Force'' in Public Law 102-396 which was available and obligated for the 
B-2 Aircraft Program shall remain available for expenditure

[[Page 310]]

and for adjusting obligations for such program until September 30, 
2003.]
    Sec. [8089] 8048. During the current fiscal year, in the case of an 
appropriation account of the Department of Defense for which the period 
of availability for obligation has expired or which has closed under the 
provisions of section 1552 of title 31, United States Code, and which 
has a negative unliquidated or unexpended balance, an obligation or an 
adjustment of an obligation may be charged to any current appropriation 
account for the same purpose as the expired or closed account if--
         (1) the obligation would have been properly chargeable (except 
    as to amount) to the expired or closed account before the end of the 
    period of availability or closing of that account;
         (2) the obligation is not otherwise properly chargeable to any 
    current appropriation account of the Department of Defense; and
         (3) in the case of an expired account, the obligation is not 
    chargeable to a current appropriation of the Department of Defense 
    under the provisions of section 1405(b)(8) of the National Defense 
    Authorization Act for Fiscal Year 1991, Public Law 101-510, as 
    amended (31 U.S.C. 1551 note): Provided, That in the case of an 
    expired account, if subsequent review or investigation discloses 
    that there was not in fact a negative unliquidated or unexpended 
    balance in the account, any charge to a current account under the 
    authority of this section shall be reversed and recorded against the 
    expired account: Provided further, That the total amount charged to 
    a current appropriation under this section may not exceed an amount 
    equal to 1 percent of the total appropriation for that account.

                          [(transfer of funds)]

    [Sec. 8090. Upon enactment of this Act, the Secretary of Defense 
shall make the following transfers of funds: Provided, That the amounts 
transferred shall be available for the same purposes as the 
appropriations to which transferred, and for the same time period as the 
appropriation from which transferred: Provided further, That the amounts 
shall be transferred between the following appropriations in the amount 
specified:
     From:
         Under the heading, ``Shipbuilding and Conversion, Navy, 1989/
    2000'':
         SSN-688 attack submarine program, $3,000,000;
         DDG-51 destroyer program, $1,500,000;
         LHD-1 amphibious assault ship program, $8,000,000;
         T-AO fleet oiler program, $3,453,000;
         AOE combat support ship program, $3,600,000; and
         For craft, outfitting, and post delivery, $2,019,000;
     To:
         Under the heading, ``Shipbuilding and Conversion, Navy, 1989/
    2000'':
         SSN-21 attack submarine program, $21,572,000;
     From:
         Under the heading, ``Shipbuilding and Conversion, Navy, 1991/
    2001'':
         DDG-51 destroyer program, $1,060,000;
         LHD-1 amphibious assault ship program, $1,600,000;
         LSD-41 cargo variant ship program, $2,666,000;
         AOE combat support ship program, $7,307,000; and
         For craft, outfitting, and post delivery, $12,000,000;
     To:
         Under the heading, ``Shipbuilding and Conversion, Navy, 1991/
    2001'':
         SSN-21 attack submarine program, $24,633,000;
     From:
         Under the heading, ``Shipbuilding and Conversion, Navy, 1996/
    2000'':
         LHD-1 amphibious assault ship program, $5,592,000;
     To:
         Under the heading, ``Shipbuilding and Conversion, Navy, 1996/
    2000'':
         SSN-21 attack submarine program, $5,592,000;
     From:
         Under the heading, ``Shipbuilding and Conversion, Navy, 1994/
    1998'':
         LHD-1 amphibious assault ship program, $400,000; and
         DDG-51 destroyer program, $1,054,000;
     From:
         Under the heading, ``Shipbuilding and Conversion, Navy, 1995/
    1999'':
         For craft, outfitting, and post delivery, conversions, and 
    first destination transportation, $715,000;
     From:
         Under the heading, ``Shipbuilding and Conversion, Navy, 1996/
    2000'':
         LHD-1 amphibious assault ship program, $17,513,000; and
         For craft, outfitting, and post delivery, conversions, and 
    first destination transportation, $878,000;
     From:
         Under the heading, ``Shipbuilding and Conversion, Navy, 1997/
    2001'':
         For craft, outfitting, and post delivery, conversions, and 
    first destination transportation, $3,600,000;
     To:
         Under the heading, ``Shipbuilding and Conversion, Navy, 1997/
    2001'':
         DDG-51 destroyer program, $24,160,000;
     From:
         Under the heading, ``Shipbuilding and Conversion, Navy, 1996/
    2000'':
         Fast Patrol Boat, $9,500,000;
     To:
         ``Research, Development, Test and Evaluation, Navy, 1998/
    1999'', $9,500,000;
     From:
         Under the heading, ``Shipbuilding and Conversion, Navy, 1997/
    2001'':
         Oceanographic ship SWATH, $45,000,000;
     To:
         ``Research, Development, Test and Evaluation, Navy, 1998/
    1999'', $45,000,000;
     From:
         ``Aircraft Procurement, Air Force, 1997/1999'', $73,531,000;
     To:
         ``Research, Development, Test and Evaluation, Air Force, 1997/
    1998'', $73,531,000: Provided further, That notwithstanding any 
    other provision of law, to facilitate a full and final settlement of 
    all claims under contracts N00024-79-C-2614 and N00024-77-C-2031, 
    the Secretary of the Navy may offset the amount of $1,660,680.84, 
    owed by the Navy under contract N00024-79-C-2614 for the T-ARC-7 
    against an equal amount, $1,660,680.84, owed to the Navy under 
    contract N00024-77-C-2031 for the AD 43.]
    [Sec. 8091. The Under Secretary of Defense (Comptroller) shall 
submit to the congressional defense committees by February 1, 1998 a 
detailed report identifying, by amount and by separate budget activity, 
activity group, subactivity group, line item, program element, program, 
project, subproject, and activity, any activity for which the fiscal 
year 1999 budget request was reduced because Congress appropriated funds 
above the President's budget request for that specific activity for 
fiscal year 1998.]
    [Sec. 8092. (a) None of the funds available to the Department of 
Defense under this Act may be obligated or expended to reimburse a 
defense contractor for restructuring costs associated with a business 
combination of the defense contractor that occurs after the date of 
enactment of this Act unless--
         (1) the auditable savings for the Department of Defense 
    resulting from the restructuring will exceed the costs allowed by a 
    factor of at least two to one; or
         (2) the savings for the Department of Defense resulting from 
    the restructuring will exceed the costs allowed and the Secretary of 
    Defense determines that the business combination will result in the 
    preservation of a critical capability that might otherwise be lost 
    to the Department; and
         (3) the report required by section 818(e) of Public Law 103-337 
    to be submitted to Congress in 1997 is submitted.
     (b) Not later than April 1, 1998, the Comptroller General shall, in 
consultation with the Inspector General of the Department of Defense, 
the Secretary of Defense, and the Secretary of Labor, submit to Congress 
a report which shall include the following:
         (1) an analysis and breakdown of the restructuring costs paid 
    by or submitted to the Department of Defense to companies involved 
    in business combinations since 1993;
         (2) an analysis of the specific costs associated with workforce 
    reductions;
         (3) an analysis of the services provided to the workers 
    affected by business combinations;

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         (4) an analysis of the effectiveness of the restructuring costs 
    used to assist laid off workers in gaining employment; and
         (5) in accordance with section 818 of Public Law 103-337, an 
    analysis of the savings reached from the business combination 
    relative to the restructuring costs paid by the Department of 
    Defense.
     (c) The report should set forth recommendations to make this 
program more effective for workers affected by business combinations and 
more efficient in terms of the use of Federal dollars.]
    Sec. [8093] 8049. Funds appropriated in title II of this Act for 
supervision and administration costs for facilities maintenance and 
repair, minor construction, or design projects may be obligated at the 
time the reimbursable order is accepted by the performing activity: 
Provided, That for the purpose of this section, supervision and 
administration costs includes all in-house Government cost.
    Sec. [8094] 8050. The Secretary of Defense may waive reimbursement 
of the cost of conferences, seminars, courses of instruction, or similar 
educational activities of the Asia-Pacific Center for Security Studies 
for military officers and civilian officials of foreign nations if the 
Secretary determines that attendance by such personnel, without 
reimbursement, is in the national security interest of the United 
States: Provided, That costs for which reimbursement is waived pursuant 
to this subsection shall be paid from appropriations available for the 
Asia-Pacific Center.
    Sec. [8095] 8051. (a) Notwithstanding any other provision of law, 
the Chief of the National Guard Bureau may permit the use of equipment 
of the National Guard Distance Learning Project by any person or entity 
on a space-available, reimbursable basis. The Chief of the National 
Guard Bureau shall establish the amount of reimbursement for such use on 
a case-by-case basis.
     (b) Amounts collected under subsection (a) shall be credited to 
funds available for the National Guard Distance Learning Project and be 
available to defray the costs associated with the use of equipment of 
the project under that subsection. Such funds shall be available for 
such purposes without fiscal year limitation.
    [Sec. 8096. Using funds available by this Act or any other Act, the 
Secretary of the Air Force, pursuant to a determination under section 
2690 of title 10, United States Code, may implement cost-effective 
agreements for required heating facility modernization in the 
Kaiserslautern Military Community in the Federal Republic of Germany: 
Provided, That in the City of Kaiserslautern such agreements will 
include the use of United States anthracite as the base load energy for 
municipal district heat to the United States Defense installations: 
Provided further, That at Landstuhl Army Regional Medical Center and 
Ramstein Air Base, furnished heat may be obtained from private, regional 
or municipal services, if provisions are included for the consideration 
of United States coal as an energy source.]
    [Sec. 8097. Notwithstanding any other provision of law, and 
notwithstanding the provisions in section 7306 of title 10, United 
States Code, in addition to amounts otherwise appropriated or made 
available by this Act, $13,000,000 is appropriated to the Department of 
the Navy and shall be available only for a grant to the Intrepid Sea-
Air-Space Foundation only for the refurbishment of the former U.S.S. 
Intrepid (CV 11).]
    [Sec. 8098. In accordance with section 1557 of title 31, United 
States Code, the following obligated balance shall be exempt from 
subchapter IV of chapter 15 of such title and shall remain available for 
expenditure without fiscal year limitation: Funds obligated by the 
Economic Development Administration for EDA Project No. 04-49-04095 from 
funds made available in the Department of Defense Appropriations Act, 
1994 (Public Law 103-189).]
    [Sec. 8099. None of the funds provided by this Act may be used to 
pay costs of instruction for an Air Force officer for enrollment 
commencing during the 1998-1999 academic year in a postgraduate degree 
program at a civilian educational institution if--
         (1) the degree program to be pursued by that officer is offered 
    by the Air Force Institute of Technology (or was offered by that 
    institute during the 1996-1997 academic year);
         (2) the officer is qualified for enrollment at the Air Force 
    Institute of Technology in that degree program; and
         (3) the number of students commencing that degree program at 
    the Air Force Institute of Technology during the first semester of 
    the 1998-1999 academic year is less than the number of students 
    commencing that degree program for the first semester of the 1996-
    1997 academic year.]
    Sec. [8100] 8052. During the current fiscal year, the amounts which 
are necessary for the operation and maintenance of the Fisher Houses 
administered by the Departments of the Army, the Navy, and the Air Force 
are hereby appropriated, to be derived from amounts which are available 
in the applicable Fisher House trust fund established under 10 U.S.C. 
2221 for the Fisher Houses of each such department.
    Sec. [8101] 8053. During the current fiscal year and hereafter, 
refunds attributable to the use of the Government travel card by 
military personnel and civilian employees of the Department of Defense 
and refunds attributable to official Government travel arranged by 
Government Contracted Travel Management Centers may be credited to 
operation and maintenance accounts of the Department of Defense which 
are current when the refunds are received.
    Sec. [8102] 8054. During the current fiscal year, not more than a 
total of $60,000,000 in withdrawal credits may be made by the Marine 
Corps Supply Management activity group of the Navy Working Capital Fund, 
Department of Defense Working Capital Funds, to the credit of current 
applicable appropriations of a Department of Defense activity in 
connection with the acquisition of critical low density repairables that 
are capitalized into the Navy Working Capital Fund.
    Sec. [8103] 8055. Notwithstanding 31 U.S.C. 3902, during the current 
fiscal year interest penalties may be paid by the Department of Defense 
from funds financing the operation of the military department or defense 
agency with which the invoice or contract payment is associated.
    [Sec. 8104. At the time the President submits his budget for fiscal 
year 1999, the Department of Defense shall transmit to the congressional 
defense committees a budget justification document for the active and 
reserve Military Personnel accounts, to be known as the ``M-1'', which 
shall identify, at the budget activity, activity group, and subactivity 
group level, the amounts requested by the President to be appropriated 
to the Department of Defense for military personnel in any budget 
request, or amended budget request, for fiscal year 1999.]
    [Sec. 8105. Notwithstanding any other provision in this Act, the 
total amount appropriated in this Act is hereby reduced by $100,000,000 
to reflect savings due to excess inventory, to be distributed as 
follows: ``Operation and Maintenance, Army'', $40,000,000; ``Operation 
and Maintenance, Navy'', $40,000,000; and ``Operation and Maintenance, 
Air Force'', $20,000,000.]
    [Sec. 8106. Notwithstanding any other provision in this Act, the 
total amount appropriated in title III of this Act is hereby reduced by 
$75,000,000 to reflect savings from repeal of section 2403 of title 10, 
United States Code.]
    [Sec. 8107. The Secretary of the Army may exchange or sell one Army 
C-20 aircraft and may apply the exchange allowance or sale proceeds in 
whole or in part payment for the acquisition of one C-37 aircraft: 
Provided, That in addition to such exchange allowance or sale proceeds, 
of the amount appropriated for fiscal year 1998 for Aircraft 
Procurement, Air Force, not more than $6,000,000 shall be made available 
for acquisition of the C-37 for the United States Army: Provided 
further, That in addition to such exchange allowance or sale proceeds, 
of the amount appropriated for fiscal year 1997 for Aircraft 
Procurement, Air Force, not more than $27,100,000 shall be made 
available for acquisition of the C-37 for the United States Army.]
    [Sec. 8108. During the current fiscal year, the Secretary of Defense 
may award contracts for capital assets having a development or 
acquisition cost of not less than $100,000 of a Working Capital Fund in 
advance of the availability of funds in the Working Capital Fund for 
minor construction, automatic data processing equipment, software, 
equipment, and other capital improvements.]
    [Sec. 8109. From funds made available by this Act for the Maritime 
Technology Program up to $250,000 shall be made available to assist with 
a pilot project that will facilitate the transfer of commercial cruise 
ship shipbuilding technology and expertise to United States yards, 
utilize the experience and expertise of existing U.S.-flag cruise ship 
operators, and enable the operation of a U.S.-flag foreign-built cruise 
ship, and two newly constructed U.S.-flag cruise ships: Provided, That a 
person (including a related person with respect to that person) who, 
within 18 months after the date of enactment, enters into a binding 
contract for construction in the United States of two cruise ships, 
which contract shall provide for the construction of two cruise ships of 
equal or greater size than the cruise ship being operated by such person 
on the date of enactment and shall require the delivery of the first 
cruise ship no later than January 1, 2005, and the second cruise ship no 
later than January 1, 2008, may document with a coastwise endorsement a 
cruise ship constructed pursuant to this section and a foreign-built 
cruise ship

[[Page 312]]

otherwise in compliance with 46 U.S.C. 289, 883, and 12106 until such 
date which is 24 months after the delivery of the second cruise ship or 
any subsequently delivered cruise ship: Provided further, That a person 
(including a related person with respect to that person) within the 
meaning of 46 U.S.C. 801 may not operate a U.S.-flag foreign-built 
cruise ship, or any other cruise ship, in coastwise trade between or 
among the islands of Hawaii, upon execution of the contract referred to 
in this section and continuing throughout the life expectancy (as that 
term is used in 46 U.S.C. App. 1125) of a newly constructed U.S.-flag 
cruise ship referred to in this section, unless the cruise ship is 
operated by a person (including a related person with respect to that 
person) that is operating a cruise ship in coastwise trade between or 
among the islands of Hawaii on the date of enactment, except if any 
cruise ship constructed pursuant to this section operates in regular 
service other than between or among the islands of Hawaii: Provided 
further, That for purposes of this section the term ``cruise ship'' 
means a vessel that is at least 10,000 gross tons (as measured under 
chapter 143 of title 46, United States Code) and has berth or stateroom 
accommodations for at least 275 passengers: Provided further, That for 
purposes of this section, unless otherwise defined in this section, the 
term ``person'' means a corporation, partnership or association the 
controlling interest of which is owned by citizens of the United States 
within the meaning of 46 U.S.C. 802(b): Provided further, That for 
purposes of this section the term ``related person'' means with respect 
to a person: (1) a holding company, subsidiary, affiliate or association 
of the person; and (2) an officer, director, or agent of the person or 
of an entity referred to in (1): Provided further, That none of the 
funds provided in this or any other Act may be obligated for the tooling 
to construct or the construction of vessels addressed by this section.]
    [Sec. 8110. The Secretary of Defense shall submit to the 
congressional defense committees not later than November 15, 1997 an 
aviation safety plan outlining an appropriate level of navigational 
safety upgrades for all Department of Defense aircraft and the 
associated funding profile to install these upgrades in an expeditious 
manner.]
    [Sec. 8111. Notwithstanding any other provision of law, the 
Secretary of Defense shall obligate the funds provided for University 
Research Initiatives in the Department of Defense Appropriations Act, 
1997 (titles I through VIII under section 101(b) of Public Law 104-208) 
for the projects and in the amounts provided for in House Report 104-863 
of the House of Representatives, 104th Congress, 2d session.]
    [Sec. 8112. The Secretary of Defense shall submit to the Committees 
on Appropriations of the House of Representatives and Senate, not later 
than April 15, 1998, a report on alternatives for current theater combat 
simulations: Provided, That this report shall be based on a review and 
evaluation by the Defense Science Board of the adequacy of the current 
models used by the Department of Defense for theater combat simulations, 
with particular emphasis on the tactical warfare (TACWAR) model and the 
ability of that model to adequately measure airpower, stealth, and other 
asymmetrical United States warfighting advantages, and shall include the 
recommendations of the Defense Science Board for improvements to current 
models and modeling techniques.]
    [Sec. 8113. Effective on June 30, 1998, section 8106(a) of the 
Department of Defense Appropriations Act, 1997 (titles I through VIII of 
the matter under section 101(b) of Public Law 104-208; 110 Stat. 3009-
111; 10 U.S.C. 113 note), is amended by striking ``$3,000,000'' and 
inserting ``$1,000,000''.]
    [Sec. 8114. None of the funds appropriated in title IV of this Act 
may be used to procure end-items for delivery to military forces for 
operational training, operational use or inventory requirements: 
Provided, That this restriction does not apply to end-items used in 
development, prototyping, and test activities preceding and leading to 
acceptance for operational use: Provided further, That this restriction 
does not apply to programs funded within the National Foreign 
Intelligence Program: Provided further, That the Secretary of Defense 
may waive this restriction on a case-by-case basis by certifying in 
writing to the Committees on Appropriations of the House of 
Representatives and the Senate that it is in the national security 
interest to do so.]
    [Sec. 8115. It is the sense of the Congress that all member nations 
of the North Atlantic Treaty Organization (NATO) should contribute their 
proportionate share to pay for the costs of the Partnership for Peace 
program and for any future costs attributable to the expansion of NATO.]
    [Sec. 8116. The budget of the President for fiscal year 1999 
submitted to Congress pursuant to section 1105 of title 31, United 
States Code, and each annual budget request thereafter, shall include 
budget activity groups (known as ``subactivities'') in the operation and 
maintenance accounts of the military departments and other appropriation 
accounts, as may be necessary, to separately identify all costs incurred 
by the Department of Defense to support the expansion of the North 
Atlantic Treaty Organization. The budget justification materials 
submitted to Congress in support of the budget of the Department of 
Defense for fiscal year 1999, and subsequent fiscal years, shall provide 
complete, detailed estimates for the incremental costs of such 
expansion.]
    [Sec. 8117. None of the funds made available in this Act may be 
obligated or expended to enter into or renew a contract with a 
contractor that is subject to the reporting requirement set forth in 
subsection (d) of section 4212 of title 38, United States Code, but has 
not submitted the most recent report required by such subsection for 
1997 or a subsequent year.]
    [Sec. 8118. None of the funds made available in this Act may be used 
to approve or license the sale of the F-22 advanced tactical fighter to 
any foreign government.]
    [Sec. 8119. None of the funds appropriated or otherwise made 
available by this Act may be made available for the United States Man 
and the Biosphere Program, or related projects.]
    [Sec. 8120. Up to $4,500,000 of funds available to the Department of 
Defense may be available for the payment of claims for loss and damage 
to personal property suffered as a direct result of the flooding in the 
Red River Basin during April and May, 1997 by members of the Armed 
Forces residing in the vicinity of Grand Forks Air Force Base, North 
Dakota, without regard to the provisions of section 3721(e) of title 31, 
United States Code.]
    [Sec. 8121. Of the total amount appropriated under title II for the 
Navy, the Secretary of the Navy shall make $25,000,000 available for a 
program to demonstrate expanded use of multitechnology automated reader 
cards throughout the Navy and the Marine Corps, including demonstration 
of the use of the so-called ``smartship'' technology of the ship-to-
shore work load/off load program.]
    [Sec. 8122. (a) Findings.--(1) The North Atlantic Treaty 
Organization, at the Madrid summit, decided to admit three new members, 
the Czech Republic, Poland and Hungary.
     (2) The President, on behalf of the United States endorsed and 
advocated the expansion of the North Atlantic Treaty Organization to 
include three additional members.
     (3) The Senate will consider the ratification of instruments to 
approve the admissions of new members to the North Atlantic Treaty 
Organization.
     (4) The United States has contributed more than $20,000,000,000 
since 1952 for infrastructure and support of the Alliance.
     (5) In appropriations Acts considered by the Congress for fiscal 
year 1998, $449,000,000 has been requested by the President for 
expenditures in direct support of United States participation in the 
Alliance.
     (6) In appropriations Acts considered by the Congress for fiscal 
year 1998, $9,983,300,000 has been requested by the President in support 
of United States military expenditures in North Atlantic Treaty 
Organization countries.
     (b) Report to Congress.--The Secretary of Defense shall identify 
and report to the congressional defense committees not later than 
October 1, 1997--
         (1) the amounts necessary, by appropriation account, for all 
    anticipated costs to the United States for the admission of the 
    Czech Republic, Poland and Hungary to the North Atlantic Treaty 
    Organization for the fiscal years 1998, 1999, 2000, 2001 and 2002; 
    and
         (2) any new commitments or obligations entered into or assumed 
    by the United States in association with the admission of new 
    members to the Alliance, to include the deployment of United States 
    military personnel, the provision of defense articles or equipment, 
    training activities and the modification and construction of 
    military facilities.]
    Sec. [8123] 8056. (a) The Secretary of Defense may, [on a case-by-
case basis,] waive with respect to a foreign country each limitation on 
the procurement of defense items from foreign sources provided in law if 
the Secretary determines that the application of the limitation with 
respect to that country would [invalidate] impede cooperative programs 
entered into between the Department of Defense and the foreign country, 
or would [invalidate] impede reciprocal trade agreements for the 
procurement of defense items entered into [under] in accordance with 
section 2531 of title 10, United States

[[Page 313]]

Code, and the country does not discriminate against the same or similar 
defense items produced in the United States for that country.
     (b) Subsection (a) applies with respect to--
         (1) contracts and subcontracts entered into on or after [the 
    date of the enactment of this Act] October 8, 1997; and
         (2) options for the procurement of items that are exercised 
    after such date under contracts that are entered into before such 
    date if the option prices are adjusted for any reason other than the 
    application of a waiver granted under subsection (a).
     (c) Subsection (a) does not apply to a limitation regarding 
construction of warships, ball and roller bearings, and clothing or 
textile materials as defined by section 11 (chapters 50-65) of the 
Harmonized Tariff Schedule and products classified under headings 4010, 
4202, 4203, 6401 through 6406, 6505, 7019, and 9404.
    [Sec. 8124. It is the sense of Congress that should the Senate 
ratify NATO enlargement, that the proportional cost of the United States 
share of the NATO common budget should not increase, and that if any 
NATO member does not pay its share, the United States shall not pay 
either.]
    [Sec. 8125. Congress finds that the Defense Base Closure and 
Realignment Commission directed the transfer of only 10 electro-magnetic 
test environment systems from Eglin Air Force Base, Florida to Nellis 
Air Force Base, Nevada.]
    [Sec. 8126. (a) Findings.--
         (1) the Department of Defense budget is insufficient to fulfill 
    all the requirements on the unfunded priorities lists of the 
    military services and defense agencies;
         (2) the documented printing expenses of the Department of 
    Defense amount to several hundred million dollars per year, and a 
    similar amount of undocumented printing expenses may be included in 
    external defense contracts;
         (3) printing in two or more colors generally increases costs;
         (4) the Joint Committee on Printing of the Congress of the 
    United States has established regulations intended to protect 
    taxpayers from extravagant Government printing expenses;
         (5) the Government Printing and Binding Regulations published 
    by the Joint Committee on Printing direct that ``* * * it is the 
    responsibility of the head of any department, independent office or 
    establishment of the Government to assure that all multicolor 
    printing shall contribute demonstrable value toward achieving a 
    greater fulfillment of the ultimate end-purpose of whatever printed 
    item in which it is included.'';
         (6) the Department of Defense publishes a large number of 
    brochures, calendars, and other products in which the use of 
    multicolor printing does not appear to meet the demonstrably 
    valuable contribution requirement of the Joint Committee on 
    Printing, but instead appears to be used primarily for decorative 
    effect; and
         (7) the Department of Defense could save resources for higher 
    priority needs by reducing printing expenses.
     (b) Sense of the Senate.--Therefore, it is the sense of the Senate 
that--
         (1) the Secretary of Defense should ensure that the printing 
    costs of the Department of Defense and military services are held to 
    the lowest amount possible;
         (2) the Department of Defense should strictly comply with the 
    Printing and Binding Regulations published by the Joint Committee on 
    Printing of the Congress of the United States; and
         (3) the Department of Defense budget submission for fiscal year 
    1999 should reflect the savings that will result from the stricter 
    printing guidelines in paragraphs (1) and (2).]
  

                             [(rescissions)]

    [Sec. 8127. Of the funds provided in title III of the Department of 
Defense Appropriations Act, 1996 (Public Law 104-61), $62,000,000 are 
rescinded, and of the funds provided in title IV of the Department of 
Defense Appropriations Act, 1997 (as contained in section 101(b) of 
Public Law 104-208), $38,000,000 are rescinded: Provided, That such 
rescissions shall not be made before July 1, 1998: Provided further, 
That not later than June 1, 1998, the Undersecretary of Defense 
(Comptroller) shall submit a report to the congressional defense 
committees listing the specific programs, projects and activities 
proposed for rescission subject to the provisions of this section.]
    [Sec. 8128. Section 303(e) of the 1997 Emergency Supplemental 
Appropriations Act for Recovery from Natural Disasters, and for Overseas 
Peacekeeping Efforts, Including Those in Bosnia (Public Law 105-18; 111 
Stat. 168) is struck and the following is inserted in lieu thereof:
     ``(e) Availability of Funds.--The Secretary may use funds available 
in the Defense Working Capital Fund for the payment of the costs of 
utilities, maintenance and repair, and improvements entered into under 
the lease under this section.''.]
    [Sec. 8129. Subject to amounts appropriated under the heading 
``Shipbuilding and Conversion, Navy'' in this Act for the New Attack 
Submarine Program, and notwithstanding any provisions of the National 
Defense Authorization Act for Fiscal Year 1996 and of the National 
Defense Authorization Act for Fiscal Year 1997 to the contrary, and 
notwithstanding section 2304(k) of title 10, United States Code, and the 
policy set forth in paragraph (1) of that section, the Secretary of the 
Navy may enter into a contract during fiscal year 1998 for the necessary 
procurement of four submarines under the New Attack Submarine Program 
with one of the two shipbuilders which are party to the Team Agreement 
between Electric Boat Corporation and Newport News Shipbuilding and Dry 
Dock Company dated February 25, 1997, that was submitted to the Congress 
by the Secretary of the Navy on March 31, 1997, as the prime contractor 
on the condition such prime contractor enter into one or more 
subcontracts (under such prime contract) with the other shipbuilder 
which is a party to such Team Agreement as contemplated in such Team 
Agreement, with such contract providing for construction of the first 
submarine in fiscal year 1998 and for the advance construction and 
advance procurement of material for the second, third, and fourth 
submarines in fiscal year 1998: Provided, That such prime contract shall 
provide that if such contract is terminated, the United States shall not 
be liable for termination costs in excess of the total amount 
appropriated for the New Attack Submarine Program.]
    [Sec. 8130. In addition to amounts provided elsewhere in this Act, 
$3,000,000 is hereby appropriated for ``Operation and Maintenance, 
Defense-Wide'', and shall be made available only for the establishment 
of the ``21st Century National Security Strategy Study Group'' 
(hereafter in this section referred to as the ``Study Group''): 
Provided, That these funds may be obligated only upon the completion of 
a memorandum of agreement between the Secretary of Defense (after 
consultation with the President), the Speaker of the House of 
Representatives, the Minority Leader of the House of Representatives, 
the Majority Leader of the Senate, and the Minority Leader of the 
Senate: Provided further, That this memorandum of agreement will set 
forth the scope of the Group's work, as well as its charter, 
composition, authorities, lifespan, and products to be generated: 
Provided further, That this memorandum of agreement shall be completed 
not later than December 15, 1997.]
    [Sec. 8131. (a) Panel To Review Long-Range Air Power.--(1) There is 
hereby established an independent panel to evaluate the adequacy of 
current planning for United States long-range air power and the 
requirement for continued low-rate production of B-2 stealth bombers.
     (2) The panel shall be composed of nine members appointed as 
follows:
         (A) two members shall be named by the President;
         (B) two members shall be named by the Speaker of the House of 
    Representatives;
         (C) one member shall be named by the Minority Leader of the 
    House of Representatives;
         (D) two members shall be named by the Majority Leader of the 
    Senate;
         (E) one member shall be named by the Minority Leader of the 
    Senate; and
         (F) one member, who will serve as chairman of the panel, shall 
    be named by the President.
     (b) Functions of Panel.--(1) Not later than March 1, 1998, the 
panel shall submit to the President and Congress a report containing its 
conclusions and recommendations concerning the appropriate B-2 bomber 
force and specifically stating its recommendation on whether additional 
funds for the B-2 should be used for continued low-rate production of 
the B-2 or for upgrades to improve deployability, survivability and 
maintainability.
     (2) As part of its evaluation and review, the panel shall consider, 
but not be limited to, the following:
         (A) scenarios involving no warning time and little warning time 
    from potential adversaries;
         (B) the make-up of the current bomber fleet and expected 
    attrition to that fleet over the next 15 years;
         (C) the potential effect of additional B-2 bombers on 
    deterrence;
         (D) the potential effect of additional B-2 bombers in the 
    ``halt phase'' of a conflict;
         (E) the potential of a biological or chemical ``lock-out'' of 
    tactical United States assets by future adversaries and the effect 
    of additional B-2 bombers toward mitigating such a tactic;

[[Page 314]]

         (F) trade-offs between additional B-2 bombers and other 
    programmed Department of Defense assets in meeting the scenarios 
    described in subsections (b)(2)(A) through (b)(2)(E) above;
         (G) the desirability of an increased rate of purchase of 
    precision-guided munitions for aircraft in the existing B-2 fleet;
         (H) the desirability of improving the low observable 
    characteristics of the existing B-2 fleet; and
         (I) the affordability of additional B-2 bombers in the context 
    of projected levels of future defense funding.
     (c) Panel Administration.--(1) The members of the panel shall be 
allowed travel expenses, including per diem in lieu of subsistence, at 
rates authorized for employees of agencies under subchapter I of chapter 
57 of title 5, United States Code, while away from their homes or 
regular places of business in the performance of services for the panel.
     (2) Upon the request of the chairman of the panel, the Secretary of 
Defense may detail to the panel, on a nonreimbursable basis, personnel 
of the Department of Defense to assist the panel in carrying out its 
duties. The Secretary of Defense shall furnish to the panel such 
administrative and support services as may be requested by the chairman 
of the panel and shall ensure that all appropriate actions are taken to 
preserve the options of the President until the panel submits its report 
under subsection (b)(1).
     (d) Funding.--The Secretary of Defense shall, upon the request of 
the panel, make available to the panel such amounts as the panel may 
require to carry out its duties under this section.
     (e) Termination of the Panel.--The panel shall terminate 30 days 
after the date on which it submits its report under subsection (b)(1).]
    [Sec. 8132. None of the funds in this Act may be made available for 
the deployment of United States Armed Forces in the Republic of Bosnia 
and Herzegovina after June 30, 1998, unless the President, after 
consultation with the bipartisan leadership of the Senate and the House 
of Representatives, transmits to the Congress not later than May 15, 
1998 a certification that the continued presence of United States Armed 
Forces is required in order to meet the national security interests of 
the United States: Provided, That such certification shall specify the 
following aspects of any deployment beyond June 30, 1998--
         (1) the reasons why such deployment is in the national 
    interest;
         (2) the number of United States military personnel to be 
    deployed in and around the Republic of Bosnia and Herzegovina and 
    the former Yugoslavia;
         (3) the expected duration of any such deployment;
         (4) the mission and objectives of United States military forces 
    deployed in and around the Republic of Bosnia and Herzegovina and 
    the former Yugoslavia;
         (5) the exit strategy for United States forces engaged in such 
    deployment;
         (6) the costs associated with any deployment beyond June 30, 
    1998; and
         (7) the impact of such deployment on the morale, retention, and 
    effectiveness of United States forces: Provided further, That 
    concurrent with said certification, the President shall submit a 
    supplemental appropriations request for such amounts as are 
    necessary for any continued deployment beyond June 30, 1998: 
    Provided further, That nothing in this section shall be deemed to 
    restrict the authority of the President under the Constitution to 
    protect the lives of United States citizens.]
    Sec. 8057. The unobligated balance of the amounts appropriated be 
section 8024 of the Department of Defense Appropriations Act (Public Law 
105-56) shall remain available until September 30, 1999 for incentive 
payments authorized by section 504 of the Indian Financing Act of 1974 
(25 U.S.C. 1544): Provided, That contractors particpating in the test 
program established by section 834 of Public Law 101-189 (15 U.S.C. 637 
note) shall be eligible for the program established by section 504 of 
the Indian Financing Act.
    Sec. 8058. Funds provided in this Act under the headings ``Operation 
and Maintenance, Defense-wide'' and ``Procurement, Defense-wide'' for 
the purpose of Combating Terrorism Readiness Initiatives may be 
transferred to other appropriations or funds of the Department for the 
purpose of meeting unanticipated, high priority requirements for 
combating terrorism and for force protection.
    Sec. 8059. Notwithstanding 31 U.S.C. 1552(a), of the funds provided 
in Department of Defense Appropriations Acts, not more than the 
specified amounts from the following accounts shall remain available for 
the payment of satellite on-orbit incentive fees until the fees are 
paid:
        ``Missile Procurement, Air Force, 1995/1997'', $20,978,000;
        ``Missile Procurement, Air Force, 1996/1998'', $16,782,400. 
    (Department of Defense Appropriations Act, 1998.)

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