108 STAT. 2848 PUBLIC LAW 103-337—OCT. 5, 1994 "(d)(1) The Secretary of the Air Force may authorize the Civil Air Patrol to employ, as administrators and liaison officers, persons retired from service in the Air Force whose qualifications are approved under regulations prescribed by the Secretary and who request such employment. "(2) A person employed pursuant to paragraph (1) may receive the person's retired pay and an additional amount for such employ- ment that is not more than the difference between the person's retired pay and the pay and allowances the person would be entitled to receive if ordered to active duty in the grade in which the person retired from service in the Air Force. The additional amount shall be paid to the Civil Air Patrol by the Secretary from funds appropriated for that purpose. "(3) A person employed pursuant to paragraph (1) may not, while so employed, be considered to be on active duty or inactiveduty training for any purpose. ". SEC. 1063. PROHIBITION ON THE PURCHASE OF SURETY BONDS AND OTHER GUARANTEES FOR THE DEPARTMENT OF DEFENSE. (a) PROHIBITION. —Subchapter I of chapter 134 of title 10, United States Code, as amended by section 372, is further amended by adding at the end the following new section: ^§ 2248. Purchase of surety bonds: prohibition "Funds appropriated or otherwise made available to the Department of Defense for fiscal years 1995 through 1999 may not be obligated or expended for the purchase of surety bonds or other guarantees of financial responsibility in order to guarantee the performance of any direct function of the Department of Defense.". (b) CLERICAL AMENDMENT.— The table of sections at the beginning of such subchapter is amended by adding at the end the following new item: "2248. Purchase of surety bonds: prohibition.". SEC. 1064. REVISION OF AUTHORITY FOR USE OF NAVY INSTALLATIONS TO PROVIDE PRERELEASE EMPLOYMENT TRAINING TO NONVIOLENT OFFENDERS IN STATE PENAL SYSTEMS. (a) SOURCES OF TRAINING. —Subsection (b) of section 1374 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1821; 10 U.S.C. 5013 note) is amended— (1) by striking out the subsection caption and inserting in lieu thereof "SOURCES OF TRAINING.— "; and (2) by inserting before the period at the end the following: "or may provide such training directly at such installations by agreement with the State concerned". (b) LIABILITY AND INDEMNIFICATION. —Subsection (e) of such section is amended to read as follows: "(e) LL\BILITY AND INDEMNIFICATION. —(1) The Secretary may not enter into a cooperative agreement under subsection (b) with a nonprofit organization for the participation of that organization in the demonstration project unless the agreement includes provisions that the nonprofit organization shall— "(A) be liable for any loss or damage to Federal Government property that may result from, or in connection with, the provision of prerelease employment training by the organization under the demonstration project; and
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