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   104th Congress 1st 
         Session        HOUSE OF REPRESENTATIVES        Report
                                                       104-406
_______________________________________________________________________

 
         NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1996

                               ----------                              

                           CONFERENCE REPORT

                              to accompany

                               H.R. 1530

<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>


               December 13, 1995.--Ordered to be printed
         NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1996
   104th Congress 1st   HOUSE OF REPRESENTATIVES        Report
         Session
                                                       104-406
_______________________________________________________________________


                   NATIONAL DEFENSE AUTHORIZATION ACT

                          FOR FISCAL YEAR 1996

                               ----------                              

                           CONFERENCE REPORT

                              to accompany

                               H.R. 1530

<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>


               December 13, 1995.--Ordered to be printed
  


                            C O N T E N T S

                               __________
DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS
                                                                   Page
Title I--Procurement.............................................   554
    Funding Explanations.........................................   555
    Items of Special Interest....................................   625
    Legislative Provisions.......................................   626
    Legislative Provisions Adopted...............................   626
        Subtitle A--Authorization of Appropriations..............   626
        Subtitle B--Army Programs................................   626
        Subtitle C--Navy Programs................................   628
        Subtitle D--Air Force Programs...........................   636
        Subtitle E--Chemical Demilitarization Program............   638
    Legislative Provisions Not Adopted...........................   640
Title II--Research, Development, Test, and Evaluation............   642
    Funding Explanations.........................................   643
    Items of Special Interest....................................   709
    Legislative Provisions.......................................   712
    Legislative Provisions Adopted...............................   712
        Subtitle A--Authorization of Appropriations..............   712
        Subtitle B--Program Requirements, Restrictions, and 
          Limitations............................................   713
        Subtitle C--Ballistic Missile Defense Act of 1995........   729
        Subtitle D--Other Ballistic Missile Defense Provisions...   734
        Subtitle E--Miscellaneous Reviews, Studies, and Reports..   734
        Subtitle F--Other Matters................................   735
    Legislative Provisions Not Adopted...........................   738
Title III--Operation and Maintenance.............................   742
    Funding Explanations.........................................   743
    Items of Special Interest....................................   767
    Legislative Provisions.......................................   772
    Legislative Provisions Adopted...............................   772
        Subtitle A--Authorization of Appropriations..............   772
        Subtitle B--Depot-Level Activities.......................   773
        Subtitle C--Environmental Provisions.....................   775
        Subtitle D--Commissaries and Nonappropriated Fund 
          Instrumentalities......................................   777
        Subtitle E--Performance of Functions by Private-Sector 
          Sources................................................   781
        Subtitle F--Miscellaneous Reviews, Studies, and Reports..   783
        Subtitle G--Other Matters................................   784
    Legislative Provisions Not Adopted...........................   787
Title IV--Military Personnel Authorizations......................   794
    Items of Special Interest....................................   794
    Legislative Provisions.......................................   794
    Legislative Provisions Adopted...............................   794
        Subtitle A--Active Forces................................   794
        Subtitle B--Reserve Forces...............................   796
        Subtitle C--Military Training Student Loads..............   798
        Subtitle D--Authorization of Appropriations..............   798
Title V--Military Personnel Policy...............................   798
    Items of Special Interest....................................   798
    Legislative Provisions.......................................   799
    Legislative Provisions Adopted...............................   799
        Subtitle A--Officer Personnel Policy.....................   799
        Subtitle B--Matters Relating to Reserve Components.......   802
        Subtitle C--Decorations and Awards.......................   804
        Subtitle D--Officer Education Programs...................   805
            Service Academies....................................   805
            Reserve Officer Training Corps.......................   806
        Subtitle E--Miscellaneous Reviews, Studies, and Reports..   807
        Subtitle F--Other Matters................................   809
        Subtitle G--Support for Non-Department of Defense 
          Activities.............................................   811
    Legislative Provisions Not Adopted...........................   813
Title VI--Compensation and Other Personnel Benefits..............   813
    Legislative Provisions.......................................   813
    Legislative Provisions Adopted...............................   813
        Subtitle A--Pay and Allowances...........................   813
        Subtitle B--Bonuses and Special and Incentive Pays.......   815
        Subtitle C--Travel and Transportation Allowances.........   817
        Subtitle D--Retired Pay, Survivor Benefits, and Related 
          Matters................................................   817
        Subtitle E--Other Matters................................   819
    Legislative Provisions Not Adopted...........................   820
Title VII--Health Care Provisions................................   821
    Items of Special Interest....................................   821
    Legislative Provisions.......................................   821
    Legislative Provisions Adopted...............................   821
        Subtitle A--Health Care Services.........................   821
        Subtitle B--TRICARE Program..............................   822
        Subtitle C--Uniformed Services Treatment Facilities......   824
        Subtitle D--Other Changes to Existing Laws Regarding 
          Health Care Management.................................   826
        Subtitle E--Other Matters................................   827
    Legislative Provisions Not Adopted...........................   830
Title VIII--Acquisition Policy, Acquisition Management, and 
  Related Matters................................................   830
    Items of Special Interest....................................   830
    Legislative Provisions.......................................   831
    Legislative Provisions Adopted...............................   831
        Subtitle A--Acquisition Reform...........................   831
        Subtitle B--Other Matters................................   834
    Legislative Provisions Not Adopted...........................   835
Title IX--Department of Defense Organization and Management......   836
    Legislative Provisions.......................................   836
    Legislative Provisions Adopted...............................   836
        Subtitle A--General Matters..............................   836
        Subtitle B--Financial Management.........................   838
    Legislative Provisions Not Adopted...........................   840
Title X--General Provisions......................................   841
    Items of Special Interest....................................   841
    Legislative Provisions.......................................   842
    Legislative Provisions Adopted...............................   842
        Subtitle A--Financial Matters............................   842
        Subtitle B--Naval Vessels and Shipyards..................   844
        Subtitle C--Counter-Drug Activities......................   848
        Subtitle D--Civilian Personnel...........................   850
        Subtitle E--Miscellaneous Reporting Requirements.........   852
        Subtitle F--Repeal of Certain Reporting and Other 
          Requirements and Authorities...........................   853
        Subtitle G--Department of Defense Education Programs.....   854
        Subtitle H--Other Matters................................   856
    Legislative Provisions Not Adopted...........................   859
Title XI--Uniform Code of Military Justice.......................   862
    Legislative Provisions.......................................   862
    Legislative Provisions Adopted...............................   862
        Subtitle A--Offenses.....................................   862
        Subtitle B--Sentences....................................   862
        Subtitle C--Pretrial and Post-Trial Actions..............   863
        Subtitle D--Appellate Matters............................   864
        Subtitle E--Other Matters................................   865
    Legislative Provisions Not Adopted...........................   865
Title XII--Cooperative Threat Reduction With States of Former 
  Soviet Union...................................................   866
    Legislative Provisions.......................................   866
    Legislative Provisions Adopted...............................   866
Title XIII--Matters Relating to Other Nations....................   868
    Items of Special Interest....................................   868
    Legislative Provisions.......................................   869
    Legislative Provisions Adopted...............................   869
        Subtitle A--Peacekeeping Provisions......................   869
        Subtitle B--Humanitarian Assistance Programs.............   870
        Subtitle C--Arms Exports and Military Assistance.........   871
        Subtitle D--Burdensharing and Other Cooperative 
          Activities Involving Allies and NATO...................   874
        Subtitle E--Other Matters................................   875
Title XIV--Arms Control Matters..................................   876
    Legislative Provisions.......................................   876
    Legislative Provisions Adopted...............................   876
Title XV--Technical and Clerical Amendments......................   882
    Legislative Provisions.......................................   882
    Legislative Provisions Adopted...............................   882
Title XVI--Corporation for the Promotion of Rifle Practice and 
  Firearms Safety................................................   882
    Legislative Provisions.......................................   882
    Legislative Provisions Adopted...............................   882

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS
Title XXI--Army..................................................   902
    Legislative Provisions.......................................   902
    Legislative Provisions Adopted...............................   902
    Legislative Provisions Not Adopted...........................   903
Title XXII--Navy.................................................   903
    Legislative Provisions.......................................   904
    Legislative Provisions Adopted...............................   904
Title XXIII--Air Force...........................................   905
    Items of Special Interest....................................   905
    Legislative Provisions.......................................   906
    Legislative Provisions Adopted...............................   906
    Legislative Provisions Not Adopted...........................   906
Title XXIV--Defense Agencies.....................................   906
    Legislative Provisions.......................................   907
    Legislative Provisions Adopted...............................   907
    Legislative Provisions Not Adopted...........................   908
Title XXV--North Atlantic Treaty Organization Infrastructure.....   908
    Legislative Provisions.......................................   908
    Legislative Provisions Adopted...............................   908
Title XXVI--Guard and Reserve Forces Facilities..................   909
    Legislative Provisions.......................................   909
    Legislative Provisions Adopted...............................   909
Title XXVIII--General Provisions.................................   910
    Items of Special Interest....................................   910
    Legislative Provisions.......................................   910
    Legislative Provisions Adopted...............................   910
        Subtitle A--Military Housing Privatization Initiative....   910
        Subtitle B--Other Military Construction Program and 
          Military Family Housing Changes........................   911
        Subtitle C--Defense Base Closure and Realignment.........   914
        Subtitle D--Land Conveyances Generally...................   917
            Part I--ARMY CONVEYANCES.............................   917
            Part II--NAVY CONVEYANCES............................   922
            Part III--AIR FORCE CONVEYANCES......................   925
        Subtitle E--Land Conveyances Involving Utilities.........   926
        Subtitle F--Other Matters................................   927
    Legislative Provisions Not Adopted...........................   929
Title XXIX--Land Conveyances Involving Joliet Army Ammunition 
  Plant..........................................................   930
    Legislative Provisions.......................................   930
    Legislative Provisions Adopted...............................   930
        Conversion of Joliet Army Ammunition Plant to Midewin 
          National Tallgrass Prairie.............................   930
        Other Land Conveyances Involving Joliet Army Ammunition 
          Plant..................................................   931

DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS 
  AND OTHER AUTHORIZATIONS
Title XXXI--Department of Energy National Security Programs......   932
    Legislative Provisions.......................................   953
    Legislative Provisions Adopted...............................   953
        Subtitle A--National Security Programs Authorizations....   953
        Subtitle B--Recurring General Provisions.................   959
        Subtitle C--Program Authorizations, Restrictions, and 
          Limitations............................................   961
        Subtitle D--Other Matters................................   966
    Legislative Provisions Not Adopted...........................   969
Title XXXII--Defense Nuclear Facilities Safety Board.............   971
    Legislative Provisions.......................................   971
    Legislative Provisions Adopted...............................   971
Title XXXIII--National Defense Stockpile.........................   971
    Legislative Provisions.......................................   971
    Legislative Provisions Adopted...............................   971
        Subtitle A--Authorization of Disposals and Use of Funds..   971
        Subtitle B--Programmatic Change..........................   972
    Legislative Provisions Not Adopted...........................   972
Title XXXIV--Naval Petroleum Reserves............................   972
    Legislative Provisions.......................................   972
    Legislative Provisions Adopted...............................   972
        Subtitle A--Administration of Naval Petroleum Reserves...   972
        Subtitle B--Sale of Naval Petroleum Reserve..............   973
Title XXXV--Panama Canal Commission..............................   974
    Legislative Provisions.......................................   974
    Legislative Provisions Adopted...............................   974

DIVISION D--FEDERAL ACQUISITION REFORM
Title XLI--Competition...........................................   975
    Legislative Provisions.......................................   975
    Legislative Provisions Adopted...............................   975
Title XLII--Commercial Items.....................................   976
Title XLIII--Additional Reform Provisions........................   978
        Subtitle A--Additional Acquisition Reform Provisions.....   978
        Subtitle B--Technical Amendments.........................   981
Title XLIV--Effective Dates and Implementation...................   981

DIVISION E--INFORMATION TECHNOLOGY MANAGEMENT REFORM
Title LI--Responsibility for Acquisitions of Information 
  Technology.....................................................   984
    Legislative Provisions.......................................   982
    Legislative Provisions Adopted...............................   982
        Subtitle A--General Authority............................   984
        Subtitle B--Director of the Office of Management and 
          Budget.................................................   984
        Subtitle C--Executive Agencies...........................   986
        Subtitle D--Other Responsibilities.......................   988
        Subtitle E--National Security Systems....................   989
Title LII--Process for Acquisitions of Information Technology....   989
Title LIII--Information Technology Acquisition Pilot Programs....   989
        Subtitle A--Conduct of Pilot Programs....................   989
        Subtitle B--Specific Pilot Programs......................   989
Title LIV--Additional Information Resources Management Matters...   990
Title LV--Procurement Protest Authority of the Comptroller 
  General........................................................   991
Title LVI--Conforming and Clerical Amendments....................   991
Title LVII--Effective Date, Savings Provisions, and Rules of 
  Construction...................................................   991
104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    104-406
_______________________________________________________________________


        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1996

                                _______


               December 13, 1995.--Ordered to be printed

_______________________________________________________________________


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

                           CONFERENCE REPORT

                        [To accompany H.R. 1530]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
1530), to authorize appropriations for fiscal year 1996 for 
military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of 
Energy, to prescribe personnel strengths for such fiscal year 
for the Armed Forces, and for other purposes, having met, after 
full and free conference, have agreed to recommend and do 
recommend to their respective Houses as follows:
      That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

SECTION 1. SHORT TITLE.

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

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

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

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

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

                        Subtitle C--Navy Programs

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

                     Subtitle D--Air Force Programs

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

              Subtitle E--Chemical Demilitarization Program

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

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

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Space launch modernization.
Sec. 212. Tactical manned reconnaissance.
Sec. 213. Joint Advanced Strike Technology (JAST) program.
Sec. 214. Development of laser program.
Sec. 215. Navy mine countermeasures program.
Sec. 216. Space-based infrared system.
Sec. 217. Defense Nuclear Agency programs.
Sec. 218. Counterproliferation support program.
Sec. 219. Nonlethal weapons study.
Sec. 220. Federally funded research and development centers and 
          university-affiliated research centers.
Sec. 221. Joint seismic program and global seismic network.
Sec. 222. Hydra-70 rocket product improvement program.
Sec. 223. Limitation on obligation of funds until receipt of electronic 
          combat consolidation master plan.
Sec. 224. Obligation of certain funds delayed until receipt of report on 
          science and technology rescissions.
Sec. 225. Obligation of certain funds delayed until receipt of report on 
          reductions in research, development, test, and evaluation.
Sec. 226. Advanced Field Artillery System (Crusader).
Sec. 227. Demilitarization of conventional munitions, rockets, and 
          explosives.
Sec. 228. Defense Airborne Reconnaissance program.

            Subtitle C--Ballistic Missile Defense Act of 1995

Sec. 231. Short title.
Sec. 232. Findings.
Sec. 233. Ballistic Missile Defense policy.
Sec. 234. Theater Missile Defense architecture.
Sec. 235. National Missile Defense system architecture.
Sec. 236. Policy regarding the ABM Treaty.
Sec. 237. Prohibition on use of funds to implement an international 
          agreement concerning Theater Missile Defense systems.
Sec. 238. Ballistic Missile Defense cooperation with allies.
Sec. 239. ABM Treaty defined.
Sec. 240. Repeal of Missile Defense Act of 1991.

         Subtitle D--Other Ballistic Missile Defense Provisions

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

         Subtitle E--Miscellaneous Reviews, Studies, and Reports

Sec. 261. Precision-guided munitions.
Sec. 262. Review of C<SUP>4I by National Research Council.
Sec. 263. Analysis of consolidation of basic research accounts of 
          military departments.
Sec. 264. Change in reporting period from calendar year to fiscal year 
          for annual report on certain contracts to colleges and 
          universities.
Sec. 265. Aeronautical research and test capabilities assessment.

                        Subtitle F--Other Matters

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

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

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

                   Subtitle B--Depot-Level Activities

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

                  Subtitle C--Environmental Provisions

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

   Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

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

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

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

         Subtitle F--Miscellaneous Reviews, Studies, and Reports

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

                        Subtitle G--Other Matters

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

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

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

                       Subtitle B--Reserve Forces

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

               Subtitle C--Military Training Student Loads

Sec. 421. Authorization of training student loads.

               Subtitle D--Authorization of Appropriations

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

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

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

           Subtitle B--Matters Relating to Reserve Components

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

                   Subtitle C--Decorations and Awards

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

                 Subtitle D--Officer Education Programs

                        Part I--Service Academies

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

                 Part II--Reserve Officer Training Corps

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

         Subtitle E--Miscellaneous Reviews, Studies, and Reports

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

                        Subtitle F--Other Matters

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

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

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

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

            Subtitle C--Travel and Transportation Allowances

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

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

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

                        Subtitle E--Other Matters

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

                    TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

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

                       Subtitle B--TRICARE Program

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

           Subtitle C--Uniformed Services Treatment Facilities

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

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

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

                        Subtitle E--Other Matters

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

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

                     Subtitle A--Acquisition Reform

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

                        Subtitle B--Other Matters

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

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                       Subtitle A--General Matters

Sec. 901. Organization of the Office of the Secretary of Defense.
Sec. 902. Reduction in number of Assistant Secretary of Defense 
          positions.
Sec. 903. Deferred repeal of various statutory positions and offices in 
          Office of the Secretary of Defense.
Sec. 904. Redesignation of the position of Assistant to the Secretary of 
          Defense for Atomic Energy.
Sec. 905. Joint Requirements Oversight Council.
Sec. 906. Restructuring of Department of Defense acquisition 
          organization and workforce.
Sec. 907. Report on Nuclear Posture Review and on plans for nuclear 
          weapons management in event of abolition of Department of 
          Energy.
Sec. 908. Redesignation of Advanced Research Projects Agency.
Sec. 909. Naval nuclear propulsion program.

                    Subtitle B--Financial Management

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

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

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

                 Subtitle B--Naval Vessels and Shipyards

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

                   Subtitle C--Counter-Drug Activities

Sec. 1021. Revision and clarification of authority for Federal support 
          of drug interdiction and counter-drug activities of the 
          National Guard.
Sec. 1022. National Drug Intelligence Center.

                     Subtitle D--Civilian Personnel

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

            Subtitle E--Miscellaneous Reporting Requirements

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

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

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

          Subtitle G--Department of Defense Education Programs

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

                        Subtitle H--Other Matters

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

               TITLE XI--UNIFORM CODE OF MILITARY JUSTICE

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

                          Subtitle A--Offenses

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

                          Subtitle B--Sentences

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

               Subtitle C--Pretrial and Post-Trial Actions

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

                      Subtitle D--Appellate Matters

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

                        Subtitle E--Other Matters

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

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

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

              TITLE XIII--MATTERS RELATING TO OTHER NATIONS

                   Subtitle A--Peacekeeping Provisions

Sec. 1301. Placement of United States forces under United Nations 
          operational or tactical control.
Sec. 1302. Limitation on use of Department of Defense funds for United 
          States share of costs of United Nations peacekeeping 
          activities.

              Subtitle B--Humanitarian Assistance Programs

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

            Subtitle C--Arms Exports and Military Assistance

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

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

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

                        Subtitle E--Other Matters

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

                     TITLE XIV--ARMS CONTROL MATTERS

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

               TITLE XV--TECHNICAL AND CLERICAL AMENDMENTS

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

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

Sec. 1601. Short title.

         Subtitle A--Establishment and Operation of Corporation

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

                   Subtitle B--Transitional Provisions

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

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                             TITLE XXI--ARMY

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

                            TITLE XXII--NAVY

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

                         TITLE XXIII--AIR FORCE

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

                      TITLE XXIV--DEFENSE AGENCIES

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

      TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION INFRASTRUCTURE

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

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

         TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

                    TITLE XXVIII--GENERAL PROVISIONS

          Subtitle A--Military Housing Privatization Initiative

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

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

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

            Subtitle C--Defense Base Closure and Realignment

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

                 Subtitle D--Land Conveyances Generally

                        PART I--ARMY CONVEYANCES

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

                        PART II--NAVY CONVEYANCES

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

                     PART III--AIR FORCE CONVEYANCES

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

            Subtitle E--Land Conveyances Involving Utilities

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

                        Subtitle F--Other Matters

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

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

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

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

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

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

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

                  Subtitle C--Miscellaneous Provisions

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

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

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

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

                Subtitle B--Recurring General Provisions

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

    Subtitle C--Program Authorizations, Restrictions, and Limitations

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

                        Subtitle D--Other Matters

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

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

         Subtitle A--Authorization of Disposals and Use of Funds

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

                     Subtitle B--Programmatic Change

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

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

         Subtitle A--Administration of Naval Petroleum Reserves

Sec. 3401. Authorization of appropriations.
Sec. 3402. Price requirement on sale of certain petroleum during fiscal 
          year 1996.

               Subtitle B--Sale of Naval Petroleum Reserve

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

                   TITLE XXXV--PANAMA CANAL COMMISSION

               Subtitle A--Authorization of Appropriations

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

   Subtitle B--Reconstitution of Commission as Government Corporation

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

                 DIVISION D--FEDERAL ACQUISITION REFORM

Sec. 4001. Short title.

                         TITLE XLI--COMPETITION

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

                      TITLE XLII--COMMERCIAL ITEMS

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

                TITLE XLIII--ADDITIONAL REFORM PROVISIONS

          Subtitle A--Additional Acquisition Reform Provisions

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

                    Subtitle B--Technical Amendments

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

             TITLE XLIV--EFFECTIVE DATES AND IMPLEMENTATION

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

          DIVISION E--INFORMATION TECHNOLOGY MANAGEMENT REFORM

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

   TITLE LI--RESPONSIBILITY FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

                      Subtitle A--General Authority

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

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

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

                     Subtitle C--Executive Agencies

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

                   Subtitle D--Other Responsibilities

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

                  Subtitle E--National Security Systems

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

      TITLE LII--PROCESS FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

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

      TITLE LIII--INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAMS

                  Subtitle A--Conduct of Pilot Programs

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

                   Subtitle B--Specific Pilot Programs

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

     TITLE LIV--ADDITIONAL INFORMATION RESOURCES MANAGEMENT MATTERS

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

   TITLE LV--PROCUREMENT PROTEST AUTHORITY OF THE COMPTROLLER GENERAL

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

              TITLE LVI--CONFORMING AND CLERICAL AMENDMENTS

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

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

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

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

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

SEC. 102. NAVY AND MARINE CORPS.

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

SEC. 103. AIR FORCE.

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

SEC. 104. DEFENSE-WIDE ACTIVITIES.

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

SEC. 105. RESERVE COMPONENTS.

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

SEC. 106. DEFENSE INSPECTOR GENERAL.

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

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

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

SEC. 108. DEFENSE HEALTH PROGRAMS.

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

                       Subtitle B--Army Programs

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

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

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

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

SEC. 113. MULTIYEAR PROCUREMENT OF HELICOPTERS.

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

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

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

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

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

                       Subtitle C--Navy Programs

SEC. 131. NUCLEAR ATTACK SUBMARINES.

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

SEC. 132. RESEARCH FOR ADVANCED SUBMARINE TECHNOLOGY.

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

SEC. 133. COST LIMITATION FOR SEAWOLF SUBMARINE PROGRAM.

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

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

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

SEC. 135. ARLEIGH BURKE CLASS DESTROYER PROGRAM.

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

SEC. 136. ACQUISITION PROGRAM FOR CRASH ATTENUATING SEATS.

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

SEC. 137. T-39N TRAINER AIRCRAFT.

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

SEC. 138. PIONEER UNMANNED AERIAL VEHICLE PROGRAM.

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

                     Subtitle D--Air Force Programs

SEC. 141. B-2 AIRCRAFT PROGRAM.

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

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

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

SEC. 142. PROCUREMENT OF B-2 BOMBERS.

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

SEC. 143. MC-130H AIRCRAFT PROGRAM.

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

             Subtitle E--Chemical Demilitarization Program

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

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

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

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

SEC. 153. ADMINISTRATION OF CHEMICAL DEMILITARIZATION PROGRAM.

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

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

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

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

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

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

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

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

SEC. 204. DEFENSE DUAL USE TECHNOLOGY INITIATIVE.

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

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. SPACE LAUNCH MODERNIZATION.

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

SEC. 212. TACTICAL MANNED RECONNAISSANCE.

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

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

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

SEC. 214. DEVELOPMENT OF LASER PROGRAM.

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

SEC. 215. NAVY MINE COUNTERMEASURES PROGRAM.

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

SEC. 216. SPACE-BASED INFRARED SYSTEM.

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

SEC. 217. DEFENSE NUCLEAR AGENCY PROGRAMS.

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

SEC. 218. COUNTERPROLIFERATION SUPPORT PROGRAM.

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

SEC. 219. NONLETHAL WEAPONS STUDY.

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

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

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

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

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

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

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

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

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

SEC. 224. OBLIGATION OF CERTAIN FUNDS DELAYED UNTIL RECEIPT OF REPORT 
                    ON SCIENCE AND TECHNOLOGY RESCISSIONS.

    (a) Delay in Obligation of Certain Funds.--None of the 
amounts appropriated or otherwise made available pursuant to 
the authorization in section 201(4) may be obligated until 14 
days after the date on which the congressional defense 
committees receive a report by the Under Secretary of Defense 
(Comptroller) that sets forth in detail the allocation of 
rescissions for science and technology described in subsection 
(b).
    (b) Description of Rescissions.--The rescissions for 
science and technology covered by subsection (a) are the Army, 
Navy, Air Force, and Defense-wide science and technology (1995/
1996) rescissions that are made by the Emergency Supplemental 
Appropriations and Rescissions for the Department of Defense to 
Preserve and Enhance Military Readiness Act of 1995 (Public Law 
104-6), as set forth in the Joint Explanatory Statement of the 
Committee of Conference in the conference report accompanying 
that Act (House Report 104-101).

SEC. 225. OBLIGATION OF CERTAIN FUNDS DELAYED UNTIL RECEIPT OF REPORT 
                    ON REDUCTIONS IN RESEARCH, DEVELOPMENT, TEST, AND 
                    EVALUATION.

    (a) Delay in Obligation of Certain Funds.--Not more than 50 
percent of the amounts appropriated or otherwise made available 
pursuant to the authorization in section 201(4) may be 
obligated until 14 days after the date on which the 
congressional defense committees receive a report by the Under 
Secretary of Defense (Comptroller) that sets forth in detail 
the allocation of reductions for research, development, test, 
and evaluation described in subsection (b).
    (b) Description of Reductions.--The reductions for 
research, development, test, and evaluation covered by 
subsection (a) are the following Army, Navy, Air Force, and 
Defense-wide reductions, as required by the Department of 
Defense Appropriations Act, 1996:
            (1) General reductions.<greek-l>8129(b) deg.
            (2) Reductions to reflect savings from revised 
        economic assumptions.<greek-l>8125 deg.
            (3) Reductions to reflect the funding ceiling for 
        defense federally funded research and development 
        centers.<greek-l>8046(d) deg.
            (4) Reductions for savings through improved 
        management of contractor automatic data processing 
        costs charged through indirect rates on Department of 
        Defense acquisition contracts.<greek-l>8101 deg.

SEC. 226. ADVANCED FIELD ARTILLERY SYSTEM (CRUSADER).

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

SEC. 227. DEMILITARIZATION OF CONVENTIONAL MUNITIONS, ROCKETS, AND 
                    EXPLOSIVES.

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

SEC. 228. DEFENSE AIRBORNE RECONNAISSANCE PROGRAM.

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

           Subtitle C--Ballistic Missile Defense Act of 1995

SEC. 231. SHORT TITLE.

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

SEC. 232. FINDINGS.

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

SEC. 233. BALLISTIC MISSILE DEFENSE POLICY.

    It is the policy of the United States--
            (1) to deploy affordable and operationally 
        effective theater missile defenses to protect forward-
        deployed and expeditionary elements of the Armed Forces 
        of the United States and to complement the missile 
        defense capabilities of forces of coalition partners 
        and of allies of the United States;
            (2) to--
                    (A) deploy a National Missile Defense 
                system that--
                            (i) is affordable and operationally 
                        effective against limited, accidental, 
                        or unauthorized ballistic missile 
                        attacks on the territory of the United 
                        States; and
                            (ii) can be augmented over time as 
                        the threat changes to provide a layered 
                        defense against limited, accidental, or 
                        unauthorized ballistic missile threats;
                    (B) initiate negotiations with the Russian 
                Federation as necessary to provide for the 
                National Missile Defense system specified in 
                section 235; and
                    (C) consider, if those negotiations fail, 
                the option of withdrawing from the ABM Treaty 
                in accordance with the provisions of Article XV 
                of that treaty, subject to consultations 
                between the President and the Congress;
            (3) to ensure congressional review, before 
        deployment of the system specified in paragraph (2), of 
        (A) the affordability and operational effectiveness of 
        such system, (B) the threat to be countered by such a 
        system, and (C) ABM Treaty considerations with respect 
        to such a system; and
            (4) to seek a cooperative, negotiated transition to 
        a regime that does not feature an offense-only form of 
        deterrence as the basis for strategic stability.

SEC. 234. THEATER MISSILE DEFENSE ARCHITECTURE.

    (a) Establishment of Core Program.--To implement the policy 
established in paragraph (1) of section 233, the Secretary of 
Defense shall restructure the core theater missile defense 
program to consist of the following systems, to be carried out 
so as to achieve the specified capabilities:
            (1) The Patriot PAC-3 system, with a first unit 
        equipped (FUE) during fiscal year 1998.
            (2) The Navy Lower Tier (Area) system, with a user 
        operational evaluation system (UOES) capability during 
        fiscal year 1997 and an initial operational capability 
        (IOC) during fiscal year 1999.
            (3) The Theater High-Altitude Area Defense (THAAD) 
        system, with a user operational evaluation system 
        (UOES) capability not later than fiscal year 1998 and a 
        first unit equipped (FUE) not later than fiscal year 
        2000.
            (4) The Navy Upper Tier (Theater Wide) system, with 
        a user operational evaluation system (UOES) capability 
        during fiscal year 1999 and an initial operational 
        capability (IOC) during fiscal year 2001.
    (b) Use of Streamlined Acquisition Procedures.--The 
Secretary of Defense shall prescribe and use streamlined 
acquisition policies and procedures to reduce the cost and 
increase the efficiency of developing and deploying the theater 
missile defense systems specified in subsection (a).
    (c) Interoperability and Support of Core Systems.--To 
maximize effectiveness and flexibility of the systems 
comprising the core theater missile defense program, the 
Secretary of Defense shall ensure that those systems are 
integrated and complementary and are fully capable of 
exploiting external sensor and battle management support from 
systems such as--
            (A) the Cooperative Engagement Capability (CEC) 
        system of the Navy;
            (B) airborne sensors; and
            (C) space-based sensors (including, in particular, 
        the Space and Missile Tracking System).
    (d) Follow-on Systems.--(1) The Secretary of Defense shall 
prepare an affordable development plan for theater missile 
defense systems to be developed as follow-on systems to the 
core systems specified in subsection (a). The Secretary shall 
make the selection of a system for inclusion in the plan based 
on the capability of the system to satisfy military 
requirements not met by the systems in the core program and on 
the capability of the system to use prior investments in 
technologies, infrastructure, and battle-management 
capabilities that are incorporated in, or associated with, the 
systems in the core program.
    (2) The Secretary may not proceed with the development of a 
follow-on theater missile defense system beyond the 
Demonstration/Validation stage of development unless the 
Secretary designates that system as a part of the core program 
under this section and submits to the congressional defense 
committees notice of that designation. The Secretary shall 
include with any such notification a report describing--
            (A) the requirements for the system and the 
        specific threats that such system is designed to 
        counter;
            (B) how the system will relate to, support, and 
        build upon existing core systems;
            (C) the planned acquisition strategy for the 
        system; and
            (D) a preliminary estimate of total program cost 
        for that system and the effect of development and 
        acquisition of such system on Department of Defense 
        budget projections.
    (e) Program Accountability Report.--(1) As part of the 
annual report of the Ballistic Missile Defense Organization 
required by section 224 of Public Law 101-189 (10 U.S.C. 2431 
note), the Secretary of Defense shall describe the technical 
milestones, the schedule, and the cost of each phase of 
development and acquisition (together with total estimated 
program costs) for each core and follow-on theater missile 
defense program.
    (2) As part of such report, the Secretary shall describe, 
with respect to each program covered in the report, any 
variance in the technical milestones, program schedule 
milestones, and costs for the program compared with the 
information relating to that program in the report submitted in 
the previous year and in the report submitted in the first year 
in which that program was covered.
    (f) Reports on TMD System Limitations Under ABM Treaty.--
(1) Whenever, after January 1, 1993, the Secretary of Defense 
issues a certification with respect to the compliance of a 
particular Theater Missile Defense system with the ABM Treaty, 
the Secretary shall transmit to the Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives a copy of such certification. Such 
transmittal shall be made not later than 30 days after the date 
on which such certification is issued, except that in the case 
of a certification issued before the date of the enactment of 
this Act, such transmittal shall be made not later than 60 days 
after the date of the enactment of this Act.
    (2) If a certification under paragraph (1) is based on 
application of a policy concerning United States compliance 
with the ABM Treaty that differs from the policy of the United 
States specified in section 237(b)(1), the Secretary shall 
include with the transmittal under that paragraph a report 
providing a detailed assessment of--
            (A) how the policy applied differs from the policy 
        of the United States specified in section 237(b)(1); 
        and
            (B) how the application of that policy (rather than 
        the policy specified in section 237(b)(1)) will affect 
        the cost, schedule, and performance of that system.

SEC. 235. NATIONAL MISSILE DEFENSE SYSTEM ARCHITECTURE.

    (a) Requirement for Development of System.--To implement 
the policy established in paragraph (2) of section 233, the 
Secretary of Defense shall develop for deployment an affordable 
and operationally effective National Missile Defense (NMD) 
system which shall achieve an initial operational capability 
(IOC) by the end of 2003.
    (b) Elements of the NMD System.--The system to be developed 
for deployment shall include the following elements:
            (1) Ground-based interceptors capable of being 
        deployed at multiple sites, the locations and numbers 
        of which are to be determined so as to optimize 
        defensive coverage of the continental United States, 
        Alaska, and Hawaii against limited, accidental, or 
        unauthorized ballistic missile attacks.
            (2) Fixed ground-based radars.
            (3) Space-based sensors, including the type of 
        space-based sensors known as ABM-adjunct sensors (and 
        specifically including the system known as the Space 
        and Missile Tracking System), such ABM-adjunct 
        sensors--
                    (A) not being prohibited by the ABM Treaty; 
                and
                    (B) being capable of cuing ground-based 
                anti-ballistic missile interceptors and of 
                providing initial targeting vectors.
            (4) Battle management, command, control, and 
        communications (BM/C<SUP>3).
    (c) Implementation.--The Secretary shall--
            (1) during fiscal year 1996 initiate required 
        preparatory and planning actions (such as initial site 
        surveys and selection and planning for the necessary 
        environmental impact studies) that are necessary so as 
        to be capable of meeting the initial operational 
        capability (IOC) date specified in subsection (a);
            (2) plan to conduct by the end of 1998 an 
        integrated systems test which uses elements (including 
        BM/C<SUP>3 elements) that are representative of and 
        traceable to the national missile defense system 
        architecture specified in subsection (b);
            (3) prescribe and use streamlined acquisition 
        policies and procedures to reduce the cost and increase 
        the efficiency of developing the system specified in 
        subsection (b); and
            (4) develop an affordable NMD follow-on program 
        which--
                    (A) leverages off of the NMD system 
                specified in subsection (a), and
                    (B) can augment that system, as the threat 
                changes, to provide for a layered defense.
    (d) Report on Plan for NMD System Development and 
Deployment.--Not later than the date on which the President 
submits the budget for fiscal year 1997 under section 1105 of 
title 31, United States Code, the Secretary of Defense shall 
submit to the congressional defense committees a report 
containing the following matters:
            (1) The Secretary's plan for carrying out this 
        section.
            (2) The Secretary's estimate of the appropriations 
        required for research, development, test, evaluation, 
        and for procurement, for each of fiscal years 1997 
        through 2003 in order to achieve the initial 
        operational capability date specified in subsection 
        (a).
            (3) A sensitivity analysis of options to improve 
        the effectiveness of such system by adding one or a 
        combination of the following:
                    (A) Additional ground-based interceptors.
                    (B) Sea-based missile defense systems.
                    (C) Space-based kinetic energy 
                interceptors.
                    (D) Space-based directed energy systems.
            (4) A determination of the point at which any 
        activity that is required to be carried out under this 
        section and section 233(2) would conflict with the 
        terms of the ABM Treaty, together with a description of 
        any such activity, the legal basis for the Secretary's 
        determination, and an estimate of the time at which 
        such point would be reached in order to meet the 
        initial operational capability date specified in 
        subsection (a).

SEC. 236. POLICY REGARDING THE ABM TREATY.

    (a) Findings.--Congress makes the following findings:
            (1) Article XIII of the ABM Treaty envisions 
        ``possible changes in the strategic situation which 
        have a bearing on the provisions of this treaty''.
            (2) Articles XIII and XIV of the treaty establish 
        means for the parties to amend the treaty, and the 
        parties have in the past used those means to amend the 
        treaty.
            (3) Article XV of the treaty establishes the means 
        for a party to withdraw from the treaty, upon six 
        months notice ``if it decides that extraordinary events 
        related to the subject matter of this treaty have 
        jeopardized its supreme interests''.
            (4) The policies, programs, and requirements of 
        this subtitle can be accomplished through processes 
        specified within, or consistent with, the ABM Treaty, 
        which anticipates the need and provides the means for 
        amendment to the Treaty.
            (5) Previous discussions between the United States 
        and Russia, based on Russian President Yeltsin's 
        proposal for a Global Protection System, held promise 
        of an agreement to amend the ABM Treaty to allow (among 
        other measures) deployment of as many as four ground-
        based interceptor sites in addition to the one site 
        permitted under the ABM Treaty and unrestricted 
        exploitation of sensors based within the atmosphere and 
        in space.
    (b) ABM Treaty Negotiations.--In light of the findings in 
subsection (a), Congress urges the President to pursue high-
level discussions with the Russian Federation to amend the ABM 
Treaty to allow--
            (1) deployment of multiple ground-based ABM sites 
        to provide effective defense of the territory of the 
        United States against limited ballistic missile attack;
            (2) the unrestricted exploitation of sensors based 
        within the atmosphere and in space; and
            (3) increased flexibility for development, testing, 
        and deployment of follow-on NMD systems.

SEC. 237. PROHIBITION ON USE OF FUNDS TO IMPLEMENT AN INTERNATIONAL 
                    AGREEMENT CONCERNING THEATER MISSILE DEFENSE 
                    SYSTEMS.

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

SEC. 238. BALLISTIC MISSILE DEFENSE COOPERATION WITH ALLIES.

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

SEC. 239. ABM TREATY DEFINED.

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

SEC. 240. REPEAL OF MISSILE DEFENSE ACT OF 1991.

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

         Subtitle D--Other Ballistic Missile Defense Provisions

SEC. 251. BALLISTIC MISSILE DEFENSE PROGRAM ELEMENTS.

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

SEC. 252. TESTING OF THEATER MISSILE DEFENSE INTERCEPTORS.

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

SEC. 253. REPEAL OF MISSILE DEFENSE PROVISIONS.

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

        Subtitle E--Miscellaneous Reviews, Studies, and Reports

SEC. 261. PRECISION-GUIDED MUNITIONS.

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

SEC. 262. REVIEW OF C<SUP>4I BY NATIONAL RESEARCH COUNCIL.

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

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

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

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

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

SEC. 265. AERONAUTICAL RESEARCH AND TEST CAPABILITIES ASSESSMENT.

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

                       Subtitle F--Other Matters

SEC. 271. ADVANCED LITHOGRAPHY PROGRAM.

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

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

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

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

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

SEC. 274. CRUISE MISSILE DEFENSE INITIATIVE.

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

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

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

SEC. 276. MANUFACTURING TECHNOLOGY PROGRAM.

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

``2525. Manufacturing Technology Program.''.

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

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

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

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

SEC. 279. GLOBAL POSITIONING SYSTEM.

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

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

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

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

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

SEC. 302. WORKING CAPITAL FUNDS.

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

SEC. 303. ARMED FORCES RETIREMENT HOME.

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

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

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

SEC. 305. CIVIL AIR PATROL.

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

                   Subtitle B--Depot-Level Activities

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

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

SEC. 312. MANAGEMENT OF DEPOT EMPLOYEES.

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

``Sec. 2472. Management of depot employees

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

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

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

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

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

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

                  Subtitle C--Environmental Provisions

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

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

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

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

SEC. 323. USE OF DEFENSE ENVIRONMENTAL RESTORATION ACCOUNT.

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

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

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

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

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

  Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 331. OPERATION OF COMMISSARY SYSTEM.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 337. DEFERRED PAYMENT PROGRAMS OF MILITARY EXCHANGES.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

        Subtitle F--Miscellaneous Reviews, Studies, and Reports

SEC. 361. QUARTERLY READINESS REPORTS.

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

``Sec. 452. Quarterly readiness reports

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

``452. Quarterly readiness reports.''.

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

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

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

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

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

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

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

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

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

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

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

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

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

                       Subtitle G--Other Matters

SEC. 371. CODIFICATION OF DEFENSE BUSINESS OPERATIONS FUND.

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

``Sec. 2216. Defense Business Operations Fund

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

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

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

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

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

SEC. 373. PROHIBITION ON CAPITAL LEASE FOR DEFENSE BUSINESS MANAGEMENT 
                    UNIVERSITY.

    None of the funds appropriated to the Department of Defense 
for fiscal year 1996 may be used to enter into any lease with 
respect to the Center for Financial Management Education and 
Training of the Defense Business Management University if the 
lease would be treated as a capital lease for budgetary 
purposes.

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

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

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

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

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

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

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

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

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

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

SEC. 377. RETENTION OF MONETARY AWARDS.

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

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

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

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

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

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

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

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

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

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

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

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

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

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

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

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


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

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

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

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

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

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

              Subtitle C--Military Training Student Loads

SEC. 421. AUTHORIZATION OF TRAINING STUDENT LOADS.

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

              Subtitle D--Authorization of Appropriations

SEC. 431. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

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

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

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

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

SEC. 501. JOINT OFFICER MANAGEMENT.

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

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

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

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

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

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

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

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

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

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

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

SEC. 505. ARMY OFFICER MANNING LEVELS.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

           Subtitle B--Matters Relating to Reserve Components

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

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

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

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

      ``CHAPTER 1214--READY RESERVE MOBILIZATION INCOME INSURANCE

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

``Sec. 12521. Definitions

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

``Sec. 12522. Establishment of insurance program

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

``Sec. 12523. Risk insured

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

``Sec. 12524. Enrollment and election of benefits

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

``Sec. 12525. Benefit amounts

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

``Sec. 12526. Premiums

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

``Sec. 12527. Payment of premiums

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

``Sec. 12528. Reserve Mobilization Income Insurance Fund

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

``Sec. 12529. Board of Actuaries

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

``Sec. 12530. Payment of benefits

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

``Sec. 12531. Purchase of insurance

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

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

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

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

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

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

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

``Sec. 10216. Military technicians

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

``10216. Military technicians.''.

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

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

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

SEC. 515. ACTIVE DUTY ASSOCIATE UNIT RESPONSIBILITY.

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

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

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

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

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

                   Subtitle C--Decorations and Awards

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                 Subtitle D--Officer Education Programs

                       PART I--SERVICE ACADEMIES

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

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

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

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

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

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

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

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

                PART II--RESERVE OFFICER TRAINING CORPS

SEC. 541. ROTC ACCESS TO CAMPUSES.

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

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

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

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

SEC. 542. ROTC SCHOLARSHIPS FOR THE NATIONAL GUARD.

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

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

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

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

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

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

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

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

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

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

        Subtitle E--Miscellaneous Reviews, Studies, and Reports

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

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

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

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

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

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

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

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

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

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

                       Subtitle F--Other Matters

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

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

the period of such desertion, absence, confinement, or 
inability to perform duties may not be counted in computing, 
for any purpose other than basic pay under section 205 of title 
37, the officer's length of service.''.
    (c) Clerical Amendments.--(1) The heading of such section 
is amended to read as follows:

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

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

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

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

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

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

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

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

SEC. 562. ARMY RANGER TRAINING.

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

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

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

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

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

SEC. 563. SEPARATION IN CASES INVOLVING EXTENDED CONFINEMENT.

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

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

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

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

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

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

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

``12687. Reserves under confinement by sentence of court-martial:

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

SEC. 564. LIMITATIONS ON REDUCTIONS IN MEDICAL PERSONNEL.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     ``CHAPTER 88--MILITARY FAMILY PROGRAMS AND MILITARY CHILD CARE
  ``Subchapter                                                      Sec.
       Military Family Programs.....................................1781
       Military Child Care..........................................1791
                ``SUBCHAPTER I--MILITARY FAMILY PROGRAMS
``Sec.
``1781. Office of Family Policy.
``1782. Surveys of military families.
``1783. Family members serving on advisory committees.
``1784. Employment opportunities for military spouses.
``1785. Youth sponsorship program.
``1786. Dependent student travel within the United States.
``1787. Reporting of child abuse.

``Sec. 1781. Office of Family Policy

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

``Sec. 1782. Surveys of military families

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

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

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

``Sec. 1784. Employment opportunities for military spouses

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

``Sec. 1785. Youth sponsorship program

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

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

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

``Sec. 1787. Reporting of child abuse

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

                  ``SUBCHAPTER II--MILITARY CHILD CARE

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

``Sec. 1791. Funding for military child care

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

``Sec. 1792. Child care employees

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