This booklet contains a report on a joint committee hearing on the Overseas Teachers Act of 1987 (H.R. 3424). The bill provides that anyone who is hired overseas (known as a local hire) in the Department of Defense Dependents' Schools (DODDS) before enactment of the bill and who has completed or completes three years of teaching will qualify for full benefits, provided he or she does not receive comparable benefits through a military or civilian spouse. In the future, anyone hired as a local hire may not continue to teach in the DODDS schools beyond one year, unless he or she reapplies as a state-side hire and competes with all other state-side hire applicants. The spouses of military personnel are the only exceptions to this one-year rule. The second major set of provisions in the bill are aimed at both reducing the reliance on local hires and helping to enforce an effective transfer program. (JD)