LIQUIDITY OF WORKING-CAPITAL FUNDS.

SEC. 1007. LIQUIDITY OF WORKING-CAPITAL FUNDS. (a) Increased Cash Balances.— The Secretary of Defense shall administer the working-capital funds of the Department of Defense during fiscal year 1999 so as to ensure that the total amount of the cash balances in such funds on September 30, 1999, exceeds the total amount of the cash balances in such funds on September 30, 1998, by $1,300,000,000. (b) Actions Regarding Unbudgeted Losses.— The Under Secretary of Defense (Comptroller) shall take such actions regarding unbudgeted losses for the working-capital funds as may be necessary in order to ensure that such unbudgeted losses do not preclude the Secretary of Defense from achieving the increase in cash balances in working-capital funds required under subsection (a). (c) Waiver.— (1) The Secretary of Defense may waive the requirements of this section upon certifying to Congress, in writing, that the waiver is necessary to meet requirements associated with— (A) a contingency operation (as defined in section 101(a)(13) of title 10, United States Code); or (B) an operation of the Armed Forces that commenced before October 1, 1998, and continues during fiscal year 1999. (2) The waiver authority under paragraph (1) may not be delegated to any official other than the Deputy Secretary of Defense. (3) The waiver authority under paragraph (1) does not apply to the limitation in subsection (d) or the limitation in section 2208(l)(3) of title 10, United States Code (as added by subsection (e)). (d) Fiscal Year 1999 Limitation on Advance Billings.— (1) The total amount of the advance billings rendered or imposed 112 STAT. 2115for the working-capital funds of the Department of Defense and the Defense Business Operations Fund in fiscal year 1999— (A) for the Department of the Navy, may not exceed$400,000,000; and (B) for the Department of the Air Force, may not exceed$400,000,000. (2) In paragraph (1), the term “advance billing” has the meaning given such term in section 2208(1) of title 10, United States Code. (e) Permanent Limitation on Advance Billings.— (1) Section 2208(1) of title 10, United States Code, is amended— (A) by redesignating paragraph (3) as paragraph (4); and (B) by inserting after paragraph (2) the following new paragraph (3): “(3) The total amount of the advance billings rendered or imposed for all working-capital funds of the Department of Defense in a fiscal year may not exceed $1,000,000,000.”. (2) Section 2208(l)(3) of such title, as added by paragraph (1), applies to fiscal years after fiscal year 1999. (f) Semiannual Report.— (1) 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— (A) not later than May 1, 1999, a report on the administration of this section for the six-month period ending on March31, 1999; and (B) not later than November 1, 1999, a report on the administration of this section for the six-month period ending on September 30, 1999. (2) Each report shall include, for the period covered by the report, the following: (A) The profit and loss status of each working-capital fund activity. (B) The actions taken by the Secretary of each military department to use assessments of surcharges to correct for unbudgeted losses.