Text: H.R.5122 — 109th Congress (2005-2006)All Information (Except Text)

Text available as:

Shown Here:
Public Law No: 109-364 (10/17/2006)

 
[109th Congress Public Law 364]
[From the U.S. Government Printing Office]


[DOCID: f:publ364.109]

[[Page 120 STAT. 2083]]

Public Law 109-364
109th Congress

                                 An Act


 
To authorize appropriations for fiscal year 2007 for military activities 
                                 of the 
   Department of Defense, for military construction, and for defense 
activities of the Department of Energy, to prescribe military personnel 
strengths for such fiscal year, and for other purposes. <<NOTE: Oct. 17, 
                         2006 -  [H.R. 5122]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: John Warner National 
Defense Authorization Act for Fiscal Year 2007.>> assembled,
SECTION 1. SHORT TITLE; FINDINGS.

    (a) Short Title.--This Act may be cited as the ``John Warner 
National Defense Authorization Act for Fiscal Year 2007''.
    (b) Findings.--Congress makes the following findings:
            (1) Senator John Warner of Virginia was elected a member of 
        the United States Senate on November 7, 1978, for a full term 
        beginning on January 3, 1979. He was subsequently appointed by 
        the Governor of Virginia to fill a vacancy on January 2, 1979, 
        and has served continuously since that date. He was appointed a 
        member of the Committee on Armed Services in January 1979, and 
        has served continuously on the Committee since that date, a 
        period of nearly 28 years. Senator Warner's service on the 
        Committee represents nearly half of its existence since it was 
        established after World War II.
            (2) Senator Warner came to the Senate and the Committee on 
        Armed Services after a distinguished record of service to the 
        Nation, including combat service in the Armed Forces and high 
        civilian office.
            (3) Senator Warner enlisted in the United States Navy upon 
        graduation from high school in 1945, and served until the summer 
        of 1946, when he was discharged as a Petty Officer 3rd Class. He 
        then attended Washington and Lee University on the G.I. Bill. He 
        graduated in 1949 and entered the University of Virginia Law 
        School.
            (4) Upon the outbreak of the Korean War in 1950, Senator 
        Warner volunteered for active duty, interrupting his education 
        to accept a commission in the United States Marine Corps. He 
        served in combat in Korea as a ground officer in the First 
        Marine Air Wing. Following his active service, he remained in 
        the Marine Corps Reserve for several years, attaining the rank 
        of captain.
            (5) Senator Warner resumed his legal education upon 
        returning from the Korean War and graduated from the University 
        of Virginia Law School in 1953. He was selected by the late 
        Chief Judge E. Barrett Prettyman of the United States Court of 
        Appeals for the District of Columbia Circuit as his law clerk. 
        After his service to Judge Prettyman, Senator Warner

[[Page 120 STAT. 2084]]

        became an Assistant United States Attorney in the District of 
        Columbia, and later entered private law practice.
            (6) In 1969, the Senate gave its advice and consent to the 
        appointment of Senator Warner as Under Secretary of the Navy. He 
        served in this position until 1972, when he was confirmed and 
        appointed as the 61st Secretary of the Navy since the office was 
        established in 1798. As Secretary, Senator Warner was the 
        principal United States negotiator and signatory of the 
        Incidents at Sea Executive Agreement with the Soviet Union, 
        which was signed in 1972 and remains in effect today. It has 
        served as the model for similar agreements between states 
        covering the operation of naval ships and aircraft in 
        international sea lanes throughout the world.
            (7) Senator Warner left the Department of the Navy in 1974. 
        His next public service was as Administrator of the American 
        Revolution Bicentennial Commission. In this capacity, he 
        coordinated the celebration of the Nation's founding, directing 
        the Federal role in all 50 States and in over 20 foreign 
        nations.
            (8) Senator Warner has served as chairman of the Committee 
        on Armed Services of the United States Senate from 1999 to 2001, 
        and again since January 2003. He served as ranking minority 
        member of the committee from 1987 to 1993, and again from 2001 
        to 2003. Senator Warner concludes his service as chairman at the 
        end of the 109th Congress, but will remain a member of the 
        committee.
            (9) This Act is the twenty-eighth annual authorization Act 
        for the Department of Defense for which Senator Warner has taken 
        a major responsibility as a member of the Committee on Armed 
        Services of the United States Senate, and the fourteenth for 
        which he has exercised a leadership role as chairman or ranking 
        minority member of the committee.
            (10) Senator Warner, as seaman, Marine officer, Under 
        Secretary and Secretary of the Navy, and member, ranking 
        minority member, and chairman of the Committee on Armed Services 
        of the United States Senate, has made unique and lasting 
        contributions to the national security of the United States.
            (11) It is altogether fitting and proper that this Act, the 
        last annual authorization Act for the national defense managed 
        by Senator Warner in and for the United States Senate as 
        chairman of the Committee on Armed Services, be named in his 
        honor, as provided in subsection (a).
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

    (a) Divisions.--This Act is organized into three 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.

    (b) Table of Contents.--The table of contents for this Act is as 
follows:

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

[[Page 120 STAT. 2085]]

            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.

                        Subtitle B--Army Programs

Sec. 111. Sense of Congress on future multiyear procurement authority 
           for Family of Medium Tactical Vehicles.
Sec. 112. Multiyear procurement authority for MH-60R helicopters and 
           mission equipment.
Sec. 113. Funding profile for Modular Force Initiative of the Army.
Sec. 114. Bridge to Future Networks program.
Sec. 115. Comptroller General report on the contract for the Future 
           Combat Systems program.
Sec. 116. Priority for allocation of replacement equipment to 
           operational units based on combat mission deployment 
           schedule.

                        Subtitle C--Navy Programs

Sec. 121. CVN-21 class aircraft carrier procurement.
Sec. 122. Adherence to Navy cost estimates for CVN-21 class of aircraft 
           carriers.
Sec. 123. Modification of limitation on total cost of procurement of 
           CVN-77 aircraft carrier.
Sec. 124. Construction of first two vessels under the DDG-1000 Next-
           Generation Destroyer program.
Sec. 125. Adherence to Navy cost estimates for LHA Replacement 
           amphibious assault ship program.
Sec. 126. Cost limitation for San Antonio (LPD-17) class amphibious ship 
           program.
Sec. 127. Multiyear procurement authority for V-22 tiltrotor aircraft 
           program.
Sec. 128. Alternative technologies for future surface combatants.
Sec. 129. Sense of Congress regarding the size of the attack submarine 
           force.
Sec. 130. Quality control in procurement of ship critical safety items 
           and related services.

                     Subtitle D--Air Force Programs

Sec. 131. Bomber force structure.
Sec. 132. Strategic airlift force structure.
Sec. 133. Limitation on retirement of U-2 aircraft.
Sec. 134. Multiyear procurement authority for F-22A Raptor fighter 
           aircraft.
Sec. 135. Limitation on retirement of KC-135E aircraft during fiscal 
           year 2007.
Sec. 136. Limitation on retirement of F-117A aircraft during fiscal year 
           2007.
Sec. 137. Limitation on retirement of C-130E tactical airlift aircraft.
Sec. 138. Procurement of Joint Primary Aircraft Training System aircraft 
           after fiscal year 2006.
Sec. 139. Minuteman III intercontinental ballistic missile 
           modernization.

               Subtitle E--Joint and Multiservice Matters

Sec. 141. Clarification of limitation on initiation of new unmanned 
           aerial vehicle systems.

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for defense science and technology.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Acquisition of, and independent cost analyses for, the Joint 
           Strike Fighter propulsion system.
Sec. 212. Expansion and extension of authority to award prizes for 
           advanced technology achievements.
Sec. 213. Defense Acquisition Challenge Program extension, enhancement, 
           and modification to address critical cost growth threshold 
           breaches in major defense acquisition programs.
Sec. 214. Future Combat Systems milestone review.
Sec. 215. Dedicated amounts for implementing or evaluating Navy 
           shipbuilding technology proposals under Defense Acquisition 
           Challenge Program.

[[Page 120 STAT. 2086]]

Sec. 216. Independent estimate of costs of the Future Combat Systems.
Sec. 217. Funding of defense science and technology programs.
Sec. 218. Hypersonics development.
Sec. 219. Report on program for replacement of nuclear warheads on 
           certain Trident sea-launched ballistic missiles with 
           conventional warheads.

                  Subtitle C--Missile Defense Programs

Sec. 221. Fielding of ballistic missile defense capabilities.
Sec. 222. Limitation on use of funds for space-based interceptor.
Sec. 223. Policy of the United States on priorities in the development, 
           testing, and fielding of missile defense capabilities.
Sec. 224. One-year extension of Comptroller General assessments of 
           ballistic missile defense programs.
Sec. 225. Submittal of plans for test and evaluation of the operational 
           capability of the Ballistic Missile Defense System.
Sec. 226. Annual reports on transition of ballistic missile defense 
           programs to the military departments.

                        Subtitle D--Other Matters

Sec. 231. Policies and practices on test and evaluation to address 
           emerging acquisition approaches.
Sec. 232. Extension of requirement for Global Research Watch Program.
Sec. 233. Sense of Congress on technology sharing of Joint Strike 
           Fighter technology.
Sec. 234. Report on vehicle-based active protection systems for certain 
           battlefield threats.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Other Department of Defense programs.

                  Subtitle B--Environmental Provisions

Sec. 311. Revision of requirement for unexploded ordnance program 
           manager.
Sec. 312. Funding of cooperative agreements under environmental 
           restoration program.
Sec. 313. Response plan for remediation of unexploded ordnance, 
           discarded military munitions, and munitions constituents.
Sec. 314. Research on effects of ocean disposal of munitions.
Sec. 315. Reimbursement of Environmental Protection Agency for certain 
           costs in connection with Moses Lake Wellfield Superfund Site, 
           Moses Lake, Washington.
Sec. 316. Transfer of Government-furnished uranium stored at Sequoyah 
           Fuels Corporation, Gore, Oklahoma.
Sec. 317. Extension of authority to grant exemptions to certain 
           requirements.
Sec. 318. National Academy of Sciences study on human exposure to 
           contaminated drinking water at Camp Lejeune, North Carolina.

     Subtitle C--Program Requirements, Restrictions, and Limitations

Sec. 321. Limitation on financial management improvement and audit 
           initiatives within the Department of Defense.
Sec. 322. Funds for exhibits for the national museums of the Armed 
           Forces.
Sec. 323. Prioritization of funds for equipment readiness and strategic 
           capability.
Sec. 324. Limitation on deployment of Marine Corps Total Force System to 
           Navy.

                 Subtitle D--Workplace and Depot Issues

Sec. 331. Permanent exclusion of certain contract expenditures from 
           percentage limitation on the performance of depot-level 
           maintenance.
Sec. 332. Minimum capital investment for certain depots.
Sec. 333. Extension of temporary authority for contractor performance of 
           security guard functions.

                           Subtitle E--Reports

Sec. 341. Report on Navy Fleet Response Plan.
Sec. 342. Report on Navy surface ship rotational crew programs.
Sec. 343. Report on Army live-fire ranges in Hawaii.
Sec. 344. Comptroller General report on joint standards and protocols 
           for access control systems at Department of Defense 
           installations.

[[Page 120 STAT. 2087]]

Sec. 345. Comptroller General report on readiness of Army and Marine 
           Corps ground forces.
Sec. 346. Report on Air Force safety requirements for Air Force flight 
           training operations at Pueblo Memorial Airport, Colorado.
Sec. 347. Annual report on Personnel Security Investigations for 
           Industry and National Industrial Security Program.
Sec. 348. Five-year extension of annual report on training range 
           sustainment plan and training range inventory.
Sec. 349. Reports on withdrawal or diversion of equipment from reserve 
           units for support of reserve units being mobilized and other 
           units.

                        Subtitle F--Other Matters

Sec. 351. Department of Defense strategic policy on prepositioning of 
           materiel and equipment.
Sec. 352. Authority to make Department of Defense horses available for 
           adoption.
Sec. 353. Sale and use of proceeds of recyclable munitions materials.
Sec. 354. Recovery and transfer to Corporation for the Promotion of 
           Rifle Practice and Firearms Safety of certain firearms, 
           ammunition, and parts granted to foreign countries.
Sec. 355. Extension of Department of Defense telecommunications benefit 
           program.
Sec. 356. Extension of availability of funds for commemoration of 
           success of the Armed Forces in Operation Enduring Freedom and 
           Operation Iraqi Freedom.
Sec. 357. Capital security cost sharing.
Sec. 358. Utilization of fuel cells as back-up power systems in 
           Department of Defense operations.
Sec. 359. Improving Department of Defense support for civil authorities.
Sec. 360. Energy efficiency in weapons platforms.
Sec. 361. Prioritization of funds within Navy mission operations, ship 
           maintenance, combat support forces, and weapons system 
           support.
Sec. 362. Provision of adequate storage space to secure personal 
           property outside of assigned military family housing unit.
Sec. 363. Expansion of payment of replacement value of personal property 
           damaged during transport at Government expense.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent active duty end strength minimum levels.
Sec. 403. Additional authority for increases of Army and Marine Corps 
           active duty end strengths for fiscal years 2008 and 2009.

                       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. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2007 limitation on number of non-dual status 
           technicians.
Sec. 415. Maximum number of reserve personnel authorized to be on active 
           duty for operational support.

               Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.
Sec. 422. Armed Forces Retirement Home.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

               Part I--Officer Personnel Policy Generally

Sec. 501. Military status of officers serving in certain intelligence 
           community positions.
Sec. 502. Extension of age for mandatory retirement for active-duty 
           general and flag officers.
Sec. 503. Increased mandatory retirement ages for reserve officers.
Sec. 504. Standardization of grade of senior dental officer of the Air 
           Force with that of senior dental officer of the Army.
Sec. 505. Management of chief warrant officers.
Sec. 506. Extension of temporary reduction of time-in-grade requirement 
           for eligibility for promotion for certain active-duty list 
           officers in grades of first lieutenant and lieutenant (junior 
           grade).

[[Page 120 STAT. 2088]]

Sec. 507. Grade and exclusion from active-duty general and flag officer 
           distribution and strength limitations of officer serving as 
           Attending Physician to the Congress.
Sec. 508. Modification of qualifications for leadership of the Naval 
           Postgraduate School.

                    Part II--Officer Promotion Policy

Sec. 511. Revisions to authorities relating to authorized delays of 
           officer promotions.
Sec. 512. Consideration of adverse information by selection boards in 
           recommendations on officers to be promoted.
Sec. 513. Expanded authority for removal from reports of selection 
           boards of officers recommended for promotion to grades below 
           general and flag grades.
Sec. 514. Special selection board authorities.
Sec. 515. Removal from promotion list of officers not promoted within 18 
           months of approval of list by the President.

             Part III--Joint Officer Management Requirements

Sec. 516. Modification and enhancement of general authorities on 
           management of officers who are joint qualified.
Sec. 517. Modification of promotion policy objectives for joint 
           officers.
Sec. 518. Applicability of joint duty assignment requirements limited to 
           graduates of National Defense University schools.
Sec. 519. Modification of certain definitions relating to jointness.

                  Subtitle B--Reserve Component Matters

                  Part I--Reserve Component Management

Sec. 521. Recognition of former Representative G. V. `Sonny' Montgomery 
           for his 30 years of service in the House of Representatives.
Sec. 522. Revisions to reserve call-up authority.
Sec. 523. Military retirement credit for certain service by National 
           Guard members performed while in a State duty status 
           immediately after the terrorist attacks of September 11, 
           2001.

         Part II--Authorities Relating to Guard and Reserve Duty

Sec. 524. Title 10 definition of Active Guard and Reserve duty.
Sec. 525. Authority for Active Guard and Reserve duties to include 
           support of operational missions assigned to the reserve 
           components and instruction and training of active-duty 
           personnel.
Sec. 526. Governor's authority to order members to Active Guard and 
           Reserve duty.
Sec. 527. Expansion of operations of civil support teams.
Sec. 528. Modification of authorities relating to the Commission on the 
           National Guard and Reserves.
Sec. 529. Additional matters to be reviewed by Commission on the 
           National Guard and Reserves.

                   Subtitle C--Education and Training

                        Part I--Service Academies

Sec. 531. Expansion of service academy exchange programs with foreign 
           military academies.
Sec. 532. Revision and clarification of requirements with respect to 
           surveys and reports concerning sexual harassment and sexual 
           violence at the service academies.
Sec. 533. Department of Defense policy on service academy and ROTC 
           graduates seeking to participate in professional sports 
           before completion of their active-duty service obligations.

         Part II--Scholarship and Financial Assistance Programs

Sec. 535. Authority to permit members who participate in the guaranteed 
           reserve forces duty scholarship program to participate in the 
           health professions scholarship program and serve on active 
           duty.
Sec. 536. Detail of commissioned officers as students at medical 
           schools.
Sec. 537. Increase in maximum amount of repayment under education loan 
           repayment for officers in specified health professions.
Sec. 538. Health Professions Scholarship and Financial Assistance 
           Program for Active Service.

                      Part III--Junior ROTC Program

Sec. 539. Junior Reserve Officers' Training Corps instructor 
           qualifications.

[[Page 120 STAT. 2089]]

Sec. 540. Expansion of members eligible to be employed to provide Junior 
           Reserve Officers' Training Corps instruction.
Sec. 541. Expansion of Junior Reserve Officers' Training Corps program.
Sec. 542. Review of legal status of Junior ROTC program.

             Part IV--Other Education and Training Programs

Sec. 543. Expanded eligibility for enlisted members for instruction at 
           Naval Postgraduate School.

                 Subtitle D--General Service Authorities

Sec. 546. Test of utility of test preparation guides and education 
           programs in enhancing recruit candidate performance on the 
           Armed Services Vocational Aptitude Battery (ASVAB) and Armed 
           Forces Qualification Test (AFQT).
Sec. 547. Clarification of nondisclosure requirements applicable to 
           certain selection board proceedings.
Sec. 548. Report on extent of provision of timely notice of long-term 
           deployments.

                  Subtitle E--Military Justice Matters

Sec. 551. Applicability of Uniform Code of Military Justice to members 
           of the Armed Forces ordered to duty overseas in inactive duty 
           for training status.
Sec. 552. Clarification of application of Uniform Code of Military 
           Justice during a time of war.

                   Subtitle F--Decorations and Awards

Sec. 555. Authority for presentation of Medal of Honor Flag to living 
           Medal of Honor recipients and to living primary next-of-kin 
           of deceased Medal of Honor recipients.
Sec. 556. Review of eligibility of prisoners of war for award of the 
           Purple Heart.
Sec. 557. Report on Department of Defense process for awarding 
           decorations.

               Subtitle G--Matters Relating to Casualties

Sec. 561. Authority for retention after separation from service of 
           assistive technology and devices provided while on active 
           duty.
Sec. 562. Transportation of remains of casualties dying in a theater of 
           combat operations.
Sec. 563.  Annual budget display of funds for POW/MIA activities of 
           Department of Defense.
Sec. 564. Military Severely Injured Center.
Sec. 565. Comprehensive review on procedures of the Department of 
           Defense on mortuary affairs.
Sec. 566. Additional elements of policy on casualty assistance to 
           survivors of military decedents.
Sec. 567.  Requirement for deploying military medical personnel to be 
           trained in preservation of remains under combat or combat-
           related conditions.

     Subtitle H--Impact Aid and Defense Dependents Education System

Sec. 571. Enrollment in defense dependents' education system of 
           dependents of foreign military members assigned to Supreme 
           Headquarters Allied Powers, Europe.
Sec. 572. Continuation of authority to assist local educational agencies 
           that benefit dependents of members of the Armed Forces and 
           Department of Defense civilian employees.
Sec. 573. Impact aid for children with severe disabilities.
Sec. 574. Plan and authority to assist local educational agencies 
           experiencing growth in enrollment due to force structure 
           changes, relocation of military units, or base closures and 
           realignments.
Sec. 575. Pilot program on parent education to promote early childhood 
           education for dependent children affected by military 
           deployment or relocation of military units.

                Subtitle I--Armed Forces Retirement Home

Sec. 578. Report on leadership and management of the Armed Forces 
           Retirement Home.
Sec. 579. Report on Local Boards of Trustees of the Armed Forces 
           Retirement Home.

                           Subtitle J--Reports

Sec. 581. Report on personnel requirements for airborne assets 
           identified as Low-Density, High-Demand Airborne Assets.

[[Page 120 STAT. 2090]]

Sec. 582. Report on feasibility of establishment of Military Entrance 
           Processing Command station on Guam.
Sec. 583. Inclusion in annual Department of Defense report on sexual 
           assaults of information on results of disciplinary actions.
Sec. 584. Report on provision of electronic copy of military records on 
           discharge or release of members from the Armed Forces.
Sec. 585. Report on omission of social security account numbers from 
           military identification cards.
Sec. 586. Report on maintenance and protection of data held by the 
           Secretary of Defense as part of the Department of Defense 
           Joint Advertising, Market Research and Studies (JAMRS) 
           program.
Sec. 587. Comptroller General report on military conscientious 
           objectors.

                        Subtitle K--Other Matters

Sec. 591. Modification in Department of Defense contributions to 
           Military Retirement Fund.
Sec. 592. Revision in Government contributions to Medicare-Eligible 
           Retiree Health Care Fund.
Sec. 593. Dental Corps of the Navy Bureau of Medicine and Surgery.
Sec. 594. Permanent authority for presentation of recognition items for 
           recruitment and retention purposes.
Sec. 595. Persons authorized to administer enlistment and appointment 
           oaths.
Sec. 596. Military voting matters.
Sec. 597. Physical evaluation boards.
Sec. 598. Military ID cards for retiree dependents who are permanently 
           disabled.
Sec. 599. United States Marine Band and United States Marine Drum and 
           Bugle Corps.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Fiscal year 2007 increase in military basic pay and reform of 
           basic pay rates.
Sec. 602. Increase in maximum rate of basic pay for general and flag 
           officer grades to conform to increase in pay cap for Senior 
           Executive Service personnel.
Sec. 603. One-year extension of prohibition against requiring certain 
           injured members to pay for meals provided by military 
           treatment facilities.
Sec. 604. Availability of second basic allowance for housing for certain 
           reserve component or retired members serving in support of 
           contingency operations.
Sec. 605. Extension of temporary continuation of housing allowance for 
           dependents of members dying on active duty to spouses who are 
           also members.
Sec. 606. Payment of full premium for coverage under Servicemembers' 
           Group Life Insurance program during service in Operation 
           Enduring Freedom or Operation Iraqi Freedom.
Sec. 607. Clarification of effective date of prohibition on compensation 
           for correspondence courses.
Sec. 608. Extension of pilot program on contributions to Thrift Savings 
           Plan for initial enlistees in the Army.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Extension of certain bonus and special pay authorities for 
           reserve forces.
Sec. 612. Extension of certain bonus and special pay authorities for 
           health care professionals.
Sec. 613. Extension of special pay and bonus authorities for nuclear 
           officers.
Sec. 614. Extension of authorities relating to payment of other bonuses 
           and special pays.
Sec. 615. Expansion of eligibility of dental officers for additional 
           special pay.
Sec. 616. Increase in maximum annual rate of special pay for Selected 
           Reserve health care professionals in critically short wartime 
           specialties.
Sec. 617. Expansion and enhancement of accession bonus authorities for 
           certain officers in health care specialities.
Sec. 618. Authority to provide lump sum payment of nuclear officer 
           incentive pay.
Sec. 619. Increase in maximum amount of nuclear career accession bonus.
Sec. 620. Increase in maximum amount of incentive bonus for transfer 
           between Armed Forces.
Sec. 621. Additional authorities and incentives to encourage retired 
           members and reserve component members to volunteer to serve 
           on active duty in high-demand, low-density assignments.
Sec. 622. Accession bonus for members of the Armed Forces appointed as 
           commissioned officers after completing officer candidate 
           school.
Sec. 623. Modification of certain authorities applicable to the targeted 
           shaping of the Armed Forces.

[[Page 120 STAT. 2091]]

Sec. 624. Enhancement of bonus to encourage certain persons to refer 
           other persons for enlistment in the Army.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Travel and transportation allowances for transportation of 
           family members incident to illness or injury of members.

              Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Retired pay of general and flag officers to be based on rates 
           of basic pay provided by law.
Sec. 642. Inapplicability of retired pay multiplier maximum percentage 
           to certain service of members of the Armed Forces in excess 
           of 30 years.
Sec. 643. Military Survivor Benefit Plan beneficiaries under insurable 
           interest coverage.
Sec. 644. Modification of eligibility for commencement of authority for 
           optional annuities for dependents under the Survivor Benefit 
           Plan.
Sec. 645. Study of training costs, manning, operations tempo, and other 
           factors that affect retention of members of the Armed Forces 
           with special operations designations.

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

Sec. 661. Treatment of price surcharges of certain merchandise sold at 
           commissary stores.
Sec. 662. Limitations on lease of non-excess Department of Defense 
           property for protection of morale, welfare, and recreation 
           activities and revenue.
Sec. 663. Report on cost effectiveness of purchasing commercial 
           insurance for commissary and exchange facilities and 
           facilities of other morale, welfare, and recreation programs 
           and nonappropriated fund instrumentalities.
Sec. 664. Study and report regarding access of disabled persons to 
           morale, welfare, and recreation facilities and activities.

                        Subtitle F--Other Matters

Sec. 670. Limitations on terms of consumer credit extended to 
           servicemembers and dependents.
Sec. 671. Enhancement of authority to waive claims for overpayment of 
           pay and allowances and travel and transportation allowances.
Sec. 672. Exception for notice to consumer reporting agencies regarding 
           debts or erroneous payments pending a decision to waive, 
           remit, or cancel.
Sec. 673. Expansion and enhancement of authority to remit or cancel 
           indebtedness of members and former members of the Armed 
           Forces incurred on active duty.
Sec. 674. Phased recovery of overpayments of pay made to members of the 
           uniformed services.
Sec. 675. Joint family support assistance program.
Sec. 676. Special working group on transition to civilian employment of 
           National Guard and Reserve members returning from deployment 
           in Operation Iraqi Freedom or Operation Enduring Freedom.
Sec. 677. Audit of pay accounts of members of the Army evacuated from a 
           combat zone for inpatient care.
Sec. 678. Report on eligibility and provision of assignment incentive 
           pay.
Sec. 679. Sense of Congress calling for payment to World War II veterans 
           who survived Bataan Death March.

                    TITLE VII--HEALTH CARE PROVISIONS

                Subtitle A--TRICARE Program Improvements

Sec. 701. TRICARE coverage for forensic examination following sexual 
           assault or domestic violence.
Sec. 702. Authorization of anesthesia and other costs for dental care 
           for children and certain other patients.
Sec. 703. Improvements to descriptions of cancer screening for women.
Sec. 704. Prohibition on increases in certain health care costs for 
           members of the uniformed services.
Sec. 705. Demonstration project on coverage of selected over-the-counter 
           drugs under the pharmacy benefits program.
Sec. 706. Expanded eligibility of Selected Reserve members under TRICARE 
           program.
Sec. 707. Relationship between the TRICARE program and employer-
           sponsored group health care plans.
Sec. 708. Temporary prohibition on increase in copayments under retail 
           pharmacy system of pharmacy benefits program.

[[Page 120 STAT. 2092]]

                     Subtitle B--Studies and Reports

Sec. 711. Department of Defense task force on the future of military 
           health care.
Sec. 712. Study relating to chiropractic health care services.
Sec. 713. Comptroller General audits of Department of Defense health 
           care costs and cost-saving measures.
Sec. 714. Transfer of custody of the Air Force Health Study assets to 
           Medical Follow-up Agency.
Sec. 715. Study on allowing dependents of activated members of reserve 
           components to retain civilian health care coverage.
Sec. 716. Study of health effects of exposure to depleted uranium.
Sec. 717. Report and plan on services to military dependent children 
           with autism.
Sec. 718. Comptroller General study on Department of Defense pharmacy 
           benefits program.
Sec. 719. Review of Department of Defense medical quality improvement 
           program.
Sec. 720. Report on distribution of hemostatic agents for use in the 
           field.
Sec. 721. Longitudinal study on traumatic brain injury incurred by 
           members of the Armed Forces in Operation Iraqi Freedom and 
           Operation Enduring Freedom.

            Subtitle C--Planning, Programming, and Management

Sec. 731. Standardization of claims processing under TRICARE program and 
           Medicare program.
Sec. 732. Requirements for support of military treatment facilities by 
           civilian contractors under TRICARE.
Sec. 733. Standards and tracking of access to health care services for 
           wounded, injured, or ill servicemembers returning to the 
           United States from a combat zone.
Sec. 734. Disease and chronic care management.
Sec. 735. Additional elements of assessment of Department of Defense 
           task force on mental health relating to mental health of 
           members who were deployed in Operation Iraqi Freedom and 
           Operation Enduring Freedom.
Sec. 736. Additional authorized option periods for extension of current 
           contracts under TRICARE.
Sec. 737. Military vaccination matters.
Sec. 738. Enhanced mental health screening and services for members of 
           the Armed Forces.

                        Subtitle D--Other Matters

Sec. 741. Pilot projects on early diagnosis and treatment of post 
           traumatic stress disorder and other mental health conditions.
Sec. 742. Requirement to certify and report on conversion of military 
           medical and dental positions to civilian medical and dental 
           positions.
Sec. 743. Three-year extension of joint incentives program on sharing of 
           health care resources by the Department of Defense and 
           Department of Veterans Affairs.
Sec. 744. Training curricula for family caregivers on care and 
           assistance for members and former members of the Armed Forces 
           with traumatic brain injury.
Sec. 745. Recognition of Representative Lane Evans upon his retirement 
           from the House of Representatives.

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

  Subtitle A--Provisions Relating to Major Defense Acquisition Programs

Sec. 801. Requirements management certification training program.
Sec. 802. Additional requirements relating to technical data rights.
Sec. 803. Study and report on revisions to Selected Acquisition Report 
           requirements.
Sec. 804. Biannual updates on implementation of acquisition reform in 
           the Department of Defense.
Sec. 805. Additional certification requirements for major defense 
           acquisition programs before proceeding to Milestone B.
Sec. 806. Original baseline estimate for major defense acquisition 
           programs.
Sec. 807. Lead system integrators.

              Subtitle B--Acquisition Policy and Management

Sec. 811. Time-certain development for Department of Defense information 
           technology business systems.
Sec. 812. Pilot program on time-certain development in acquisition of 
           major weapon systems.

[[Page 120 STAT. 2093]]

Sec. 813. Establishment of Panel on Contracting Integrity.
Sec. 814. Linking of award and incentive fees to acquisition outcomes.
Sec. 815. Report on defense instruction relating to contractor personnel 
           authorized to accompany Armed Forces.
Sec. 816. Major automated information system programs.
Sec. 817. Internal controls for procurements on behalf of the Department 
           of Defense by certain non-defense agencies.
Sec. 818. Determination of contract type for development programs.
Sec. 819. Three-year extension of requirement for reports on commercial 
           price trend analyses of the Department of Defense.
Sec. 820. Government performance of critical acquisition functions.

 Subtitle C--Amendments to General Contracting Authorities, Procedures, 
                             and Limitations

Sec. 831. One-year extension of special temporary contract closeout 
           authority.
Sec. 832. Limitation on contracts for the acquisition of certain 
           services.
Sec. 833. Use of Federal supply schedules by State and local governments 
           for goods and services for recovery from natural disasters, 
           terrorism, or nuclear, biological, chemical, or radiological 
           attack.
Sec. 834. Waivers to extend task order contracts for advisory and 
           assistance services.

      Subtitle D--United States Defense Industrial Base Provisions

Sec. 841. Assessment and annual report of United States defense 
           industrial base capabilities and acquisitions of articles, 
           materials, and supplies manufactured outside the United 
           States.
Sec. 842. Protection of strategic materials critical to national 
           security.
Sec. 843. Strategic Materials Protection Board.

                        Subtitle E--Other Matters

Sec. 851. Report on former Department of Defense officials employed by 
           contractors of the Department of Defense.
Sec. 852. Report and regulations on excessive pass-through charges.
Sec. 853. Program manager empowerment and accountability.
Sec. 854. Joint policies on requirements definition, contingency program 
           management, and contingency contracting.
Sec. 855. Clarification of authority to carry out certain prototype 
           projects.
Sec. 856. Contracting with employers of persons with disabilities.
Sec. 857. Enhanced access for small business.
Sec. 858. Procurement goal for Hispanic-serving institutions.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department of Defense Management

Sec. 901. Increase in authorized number of Assistant Secretaries of 
           Defense.
Sec. 902. Modifications to the Combatant Commander Initiative Fund.
Sec. 903. Addition to membership of specified council.
Sec. 904. Consolidation and standardization of authorities relating to 
           Department of Defense Regional Centers for Security Studies.
Sec. 905. Oversight by Office of Under Secretary of Defense for 
           Acquisition, Technology, and Logistics of exercise of 
           acquisition authority by combatant commanders and heads of 
           Defense Agencies.
Sec. 906. Standardization of statutory references to ``national security 
           system'' within laws applicable to Department of Defense.
Sec. 907. Correction of reference to predecessor of Defense Information 
           Systems Agency.

                      Subtitle B--Space Activities

Sec. 911. Designation of successor organizations for the disestablished 
           Interagency Global Positioning Executive Board.
Sec. 912.  Extension of authority for pilot program for provision of 
           space surveillance network services to non-United States 
           Government entities.
Sec. 913. Operationally responsive space.
Sec. 914. Independent review and assessment of Department of Defense 
           organization and management for national security in space.

              Subtitle C--Chemical Demilitarization Program

Sec. 921. Sense of Congress on completion of destruction of United 
           States chemical weapons stockpile.

[[Page 120 STAT. 2094]]

Sec. 922. Comptroller General review of cost-benefit analysis of off-
           site versus on-site treatment and disposal of hydrolysate 
           derived from neutralization of VX nerve gas at Newport 
           Chemical Depot, Indiana.
Sec. 923. Incentives clauses in chemical demilitarization contracts.
Sec. 924. Chemical demilitarization program contracting authority.

                Subtitle D--Intelligence-Related Matters

Sec. 931. Four-year extension of authority of Secretary of Defense to 
           engage in commercial activities as security for intelligence 
           collection activities.
Sec. 932. Annual reports on intelligence oversight activities of the 
           Department of Defense.
Sec. 933. Collection by National Security Agency of service charges for 
           certification or validation of information assurance 
           products.

                        Subtitle E--Other Matters

Sec. 941. Department of Defense policy on unmanned systems.
Sec. 942. Executive Schedule level IV for Deputy Under Secretary of 
           Defense for Logistics and Materiel Readiness.
Sec. 943. Study and report on reform of Defense Travel System.
Sec. 944. Administration of pilot project on Civilian Linguist Reserve 
           Corps.
Sec. 945. Improvement of authorities on the National Security Education 
           Program.
Sec. 946. Report on the posture of United States Special Operations 
           Command to conduct the global war on terrorism.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. General transfer authority.
Sec. 1002. Authorization of additional emergency supplemental 
           appropriations for fiscal year 2006.
Sec. 1003. Reduction in certain authorizations due to savings relating 
           to lower inflation.
Sec. 1004. Increase in fiscal year 2006 general transfer authority.
Sec. 1005. United States contribution to NATO common-funded budgets in 
           fiscal year 2007.
Sec. 1006. Report on budgeting for fluctuations in fuel cost rates.
Sec. 1007. Modification of date of submittal of OMB/CBO report on 
           scoring of outlays.
Sec. 1008. Budgeting for ongoing military operations in Afghanistan and 
           Iraq.

          Subtitle B--Policy Relating to Vessels and Shipyards

Sec. 1011. Aircraft carrier force structure.
Sec. 1012. Sense of Congress on naming the CVN-78 aircraft carrier as 
           the U.S.S. Gerald R. Ford.
Sec. 1013. Transfer of naval vessels to foreign nations based upon 
           vessel class.
Sec. 1014. Overhaul, repair, and maintenance of vessels in foreign 
           shipyards.
Sec. 1015. Report on options for future lease arrangement for Guam 
           Shipyard.
Sec. 1016. Assessments of naval vessel construction efficiencies and of 
           effectiveness of special contractor incentives.
Sec. 1017. Obtaining carriage by vessel: criterion regarding overhaul, 
           repair, and maintenance of vessels in the United States.
Sec. 1018. Riding gang member requirements.
Sec. 1019. Authority to transfer SS Arthur M. Huddell to the Government 
           of Greece.

                   Subtitle C--Counter-Drug Activities

Sec. 1021. Extension of authority of Department of Defense to provide 
           additional support for counterdrug activities of other 
           governmental agencies.
Sec. 1022. Extension and expansion of Department of Defense authority to 
           provide support for counter-drug activities of certain 
           foreign governments.
Sec. 1023. Extension of authority to support unified counterdrug and 
           counterterrorism campaign in Colombia.
Sec. 1024. Continuation of reporting requirement regarding Department of 
           Defense expenditures to support foreign counterdrug 
           activities.
Sec. 1025. Report on interagency counter-narcotics plan for Afghanistan 
           and South and Central Asian regions.
Sec. 1026. Report on United States support for Operation Bahamas, Turks 
           & Caicos.

         Subtitle D--Force Structure and Defense Policy Matters

Sec. 1031. Improvements to Quadrennial Defense Review.

[[Page 120 STAT. 2095]]

Sec. 1032. Quarterly reports on implementation of 2006 Quadrennial 
           Defense Review Report.
Sec. 1033. Report on feasibility of establishing a regional combatant 
           command for Africa.
Sec. 1034. Determination of Department of Defense intratheater and 
           intertheater airlift requirements and sealift mobility 
           requirements.
Sec. 1035. Presidential report on improving interagency support for 
           United States 21st century national security missions and 
           interagency operations in support of stability, security, 
           transition, and reconstruction operations.

                           Subtitle E--Reports

Sec. 1041. Additional element in annual report on chemical and 
           biological warfare defense.
Sec. 1042. Report on biodefense human capital requirements in support of 
           biosafety laboratories.
Sec. 1043. Report on technologies for neutralizing or defeating threats 
           to military rotary-wing aircraft from portable air defense 
           systems and rocket-propelled grenades.
Sec. 1044. Reports on expanded use of unmanned aerial vehicles in the 
           National Airspace System.
Sec. 1045. Report on incentives to encourage certain members and former 
           members of the Armed Forces to serve in the Bureau of Customs 
           and Border Protection.
Sec. 1046. Repeal of certain report requirements.
Sec. 1047. Requirement for identification of recently enacted recurring 
           reporting requirements applicable to the Department of 
           Defense.

 Subtitle F--Miscellaneous Authorities and Limitations on Availability 
                            and Use of Funds

Sec. 1051. Acceptance and retention of reimbursement from non-Federal 
           sources to defray Department of Defense costs of conferences.
Sec. 1052. Increased flexibility in use of funds for Joint Staff 
           exercises.
Sec. 1053. Prohibition on parking of funds.
Sec. 1054. Modification of authorities relating to the Special Inspector 
           General for Iraq Reconstruction.

                 Subtitle G--Matters Involving Detainees

Sec. 1061. Provision of information to Congress on certain criminal 
           investigations and prosecutions involving detainees.

                        Subtitle H--Other Matters

Sec. 1071. Technical and clerical amendments.
Sec. 1072. Revision to authorities relating to Commission on the 
           Implementation of the New Strategic Posture of the United 
           States.
Sec. 1073. Revised deadline for submission of final report of EMP 
           Commission.
Sec. 1074. Extension of returning worker exemption to H-2B numerical 
           limitation.
Sec. 1075. Patent term extensions for the badges of the American Legion, 
           the American Legion Women's Auxiliary, and the Sons of the 
           American Legion.
Sec. 1076. Use of the Armed Forces in major public emergencies.
Sec. 1077. Increased hunting and fishing opportunities for members of 
           the Armed Forces, retired members, and disabled veterans.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

Sec. 1101. Accrual of annual leave for members of the uniformed services 
           performing dual employment.
Sec. 1102. Strategy for improving the senior management, functional, and 
           technical workforce of the Department of Defense.
Sec. 1103. Three-year extension of authority for experimental personnel 
           management program for scientific and technical personnel.
Sec. 1104. Reports on members of the Armed Forces and civilian employees 
           of the Department of Defense serving in the legislative 
           branch.
Sec. 1105. Extension of authority to waive annual limitation on total 
           compensation paid to Federal civilian employees.

             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                   Subtitle A--Assistance and Training

Sec. 1201. Logistic support for allied forces participating in combined 
           operations.
Sec. 1202. Temporary authority to use acquisition and cross-servicing 
           agreements to lend certain military equipment to foreign 
           forces in Iraq and Afghanistan for personnel protection and 
           survivability.

[[Page 120 STAT. 2096]]

Sec. 1203. Recodification and revision to law relating to Department of 
           Defense humanitarian demining assistance.
Sec. 1204. Enhancements to Regional Defense Combating Terrorism 
           Fellowship Program.
Sec. 1205. Participation of the Department of Defense in multinational 
           military centers of excellence.
Sec. 1206. Modification and extension of authorities relating to program 
           to build the capacity of foreign military forces.
Sec. 1207. Authority for distribution to certain foreign personnel of 
           education and training materials and information technology 
           to enhance military interoperability.

      Subtitle B--Nonproliferation Matters and Countries of Concern

Sec. 1211. North Korea.
Sec. 1212. Report on participation of multinational partners in the 
           United Nations Command in the Republic of Korea.
Sec. 1213. Intelligence on Iran.
Sec. 1214. Sense of Congress on United States policy on the nuclear 
           programs of Iran.

                        Subtitle C--Other Matters

Sec. 1221. Exclusion of petroleum, oil, and lubricants from limitations 
           on annual amount of liabilities the United States may accrue 
           under acquisition and cross-servicing agreements.
Sec. 1222. Modification of limitations on assistance under the American 
           Servicemembers' Protection Act of 2002.
Sec. 1223. Humanitarian support for Iraqi children in urgent need of 
           medical care.
Sec. 1224. Sense of Congress opposing the granting of amnesty by the 
           government of Iraq to persons known to have attacked, killed, 
           or wounded members of the United States Armed Forces in Iraq.
Sec. 1225. Annual reports on United States contributions to the United 
           Nations.
Sec. 1226. Comprehensive regional strategy and annual reports on 
           Somalia.
Sec. 1227. Report on the implementation of the Darfur Peace Agreement.
Sec. 1228. Sense of Congress concerning cooperation with Russia on 
           issues pertaining to missile defense.
Sec. 1229. Sense of Congress calling for convening of a summit for a 
           comprehensive political agreement for Iraq.
Sec. 1230. Sense of Congress on the commendable actions of the Armed 
           Forces in Iraq.
Sec. 1231. Annual report on foreign sales of significant military 
           equipment manufactured in the United States.

   TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
                              SOVIET UNION

Sec. 1301. Specification of Cooperative Threat Reduction programs and 
           funds.
Sec. 1302. Funding allocations.
Sec. 1303. Extension of temporary authority to waive limitation on 
           funding for chemical weapons destruction facility in Russia.
Sec. 1304. National Academy of Sciences study of prevention of 
           proliferation of biological weapons.

  TITLE XIV--MATTERS RELATED TO DEFENSE AGAINST TERRORISM AND RELATED 
                            SECURITY MATTERS

Sec. 1401. Enhancement to authority to pay rewards for assistance in 
           combating terrorism.
Sec. 1402. Quarterly reports on Department of Defense response to threat 
           posed by improvised explosive devices.
Sec. 1403. Requirement that all military wheeled vehicles used in Iraq 
           and Afghanistan outside of secure military operating bases be 
           protected by Improvised Explosive Device (IED) jammers.
Sec. 1404. Report on assessment process of Chairman of the Joint Chiefs 
           of Staff relating to Global War on Terrorism.
Sec. 1405. Treatment under Freedom of Information Act of certain 
           confidential information shared with State and local 
           personnel.
Sec. 1406. Database of emergency response capabilities.

   TITLE XV--AUTHORIZATION FOR INCREASED COSTS DUE TO OPERATION IRAQI 
                 FREEDOM AND OPERATION ENDURING FREEDOM

Sec. 1501. Purpose.
Sec. 1502. Army procurement.

[[Page 120 STAT. 2097]]

Sec. 1503. Navy and Marine Corps procurement.
Sec. 1504. Air Force procurement.
Sec. 1505. Defense-wide activities procurement.
Sec. 1506. Research, development, test and evaluation.
Sec. 1507. Operation and maintenance.
Sec. 1508. Defense Health Program.
Sec. 1509. Classified programs.
Sec. 1510. Military personnel.
Sec. 1511. Treatment as additional authorizations.
Sec. 1512. Transfer authority.
Sec. 1513. Availability of funds.
Sec. 1514. Joint Improvised Explosive Device Defeat Fund.
Sec. 1515. Iraq Freedom Fund.
Sec. 1516. Iraq Security Forces Fund.
Sec. 1517. Afghanistan Security Forces Fund.
Sec. 1518. Submittal to Congress of Department of Defense supplemental 
           and cost of war execution reports.
Sec. 1519. Limitation on availability of funds for certain purposes 
           relating to Iraq.
Sec. 1520. Intelligence Community Management Account.

            DIVISION  B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.
Sec. 2002. Recognition of Representative Joel Hefley upon his retirement 
           from the House of Representatives.

                             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. Modification of authority to carry out certain fiscal year 
           2004, 2005, and 2006 projects.

                         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. Modification of authority to carry out certain fiscal year 
           2006 project.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition 
           projects.
Sec. 2402. Family housing.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorized base closure and realignment activities funded 
           through Department of Defense Base Closure Account 2005.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Modification of authority to carry out certain fiscal year 
           2006 project.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

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.

         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 2004 
           projects.
Sec. 2703. Extension of authorizations of certain fiscal year 2003 
           projects.

[[Page 120 STAT. 2098]]

Sec. 2704. Effective date.

         TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

 Subtitle A--Military Construction Program and Military Family Housing 
                                 Changes

Sec. 2801. Increase in maximum annual amount authorized to be obligated 
           for emergency military construction.
Sec. 2802. One-year extension of temporary, limited authority to use 
           operation and maintenance funds for construction projects 
           outside the United States.
Sec. 2803. Repeal of requirement to determine availability of suitable 
           alternative housing for acquisition in lieu of construction 
           of new family housing.
Sec. 2804. Authority to continue to occupy leased family housing for 
           United States Southern Command personnel.
Sec. 2805. Consideration of alternative and more efficient uses for 
           general officer and flag officer quarters in excess of 6,000 
           square feet.
Sec. 2806. Modification of notification requirements related to cost 
           variation authority.
Sec. 2807. Consideration of local comparability of floor areas in 
           construction, acquisition, and improvement of military 
           unaccompanied housing.
Sec. 2808. Certification required for military construction projects for 
           facilities designed to provide training in urban operations.
Sec. 2809. Authority to carry out military construction projects in 
           connection with industrial facility investment program.
Sec. 2810. Repeal of special requirement for military construction 
           contracts on Guam.
Sec. 2811. Temporary expansion of authority to convey property at 
           military installations to support military construction.
Sec. 2812. Pilot projects for acquisition or construction of military 
           unaccompanied housing.

         Subtitle B--Real Property and Facilities Administration

Sec. 2821. Congressional notice requirements, in advance of acquisition 
           of land by condemnation for military purposes.
Sec. 2822. Consolidation of Department of Defense authorities regarding 
           granting of easements for rights-of-way.
Sec. 2823. Authority to grant restrictive easements for conservation 
           purposes in connection with land conveyances.
Sec. 2824. Maximum term of leases for structures and real property 
           relating to structures in foreign countries needed for 
           purposes other than family housing.
Sec. 2825. Consolidation of laws relating to transfer of Department of 
           Defense real property within the Department of Defense and to 
           other Federal agencies.
Sec. 2826. Defense access road program.
Sec. 2827. Reports on Army operational ranges.

                Subtitle C--Base Closure and Realignment

Sec. 2831. Modification of deposit requirements in connection with lease 
           proceeds received at military installations approved for 
           closure or realignment after January 1, 2005.
Sec. 2832. Report on Air Force and Air National Guard bases affected by 
           2005 round of defense base closure and realignment.

                      Subtitle D--Land Conveyances

Sec. 2841. Conveyance of easement, Pine Bluff Arsenal, Arkansas.
Sec. 2842. Modification of land transfer authority, Potomac Annex, 
           District of Columbia.
Sec. 2843. Land conveyance, Naval Air Station, Barbers Point, Hawaii.
Sec. 2844. Land conveyances, Omaha, Nebraska.
Sec. 2845. Land conveyance, Hopkinton, New Hampshire.
Sec. 2846. Land conveyance, North Hills Army Reserve Center, Allison 
           Park, Pennsylvania.
Sec. 2847. Transfer of jurisdiction, Fort Jackson, South Carolina.
Sec. 2848. Sense of Congress regarding land conveyance involving Army 
           Reserve Center, Marshall, Texas.
Sec. 2849. Modifications to land conveyance authority, Engineering 
           Proving Ground, Fort Belvoir, Virginia.
Sec. 2850. Land conveyance, Radford Army Ammunition Plant, New River 
           Unit, Virginia.

                       Subtitle E--Energy Security

Sec. 2851. Consolidation and enhancement of laws to improve Department 
           of Defense energy efficiency and conservation.

[[Page 120 STAT. 2099]]

Sec. 2852. Department of Defense goal regarding use of renewable energy 
           to meet electricity needs.
Sec. 2853. Congressional notification of cancellation ceiling for 
           Department of Defense energy savings performance contracts.
Sec. 2854. Use of energy efficiency products in new construction.

                        Subtitle F--Other Matters

Sec. 2861. Availability of research and technical assistance under 
           Defense Economic Adjustment Program.
Sec. 2862. Availability of community planning assistance relating to 
           encroachment of civilian communities on military facilities 
           used for training by the Armed Forces.
Sec. 2863. Prohibitions against making certain military airfields or 
           facilities available for use by civil aircraft.
Sec. 2864. Modification of certain transportation projects.
Sec. 2865. Availability of funds for South County Commuter Rail project, 
           Providence, Rhode Island.
Sec. 2866. Fox Point Hurricane Barrier, Providence, Rhode Island.
Sec. 2867. Federal funding for fixed guideway projects.
Sec. 2868. Feasibility study regarding use of General Services 
           Administration property for Fort Belvoir, Virginia, 
           realignment.

 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. National Nuclear Security Administration.
Sec. 3102. Defense environmental cleanup.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.

    Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Plan for transformation of National Nuclear Security 
           Administration nuclear weapons complex.
Sec. 3112. Extension of Facilities and Infrastructure Recapitalization 
           Program.
Sec. 3113. Utilization of contributions to Global Threat Reduction 
           Initiative.
Sec. 3114. Utilization of contributions to Second Line of Defense 
           program.
Sec. 3115. Two-year extension of authority for appointment of certain 
           scientific, engineering, and technical personnel.
Sec. 3116. National Academy of Sciences study of quantification of 
           margins and uncertainty methodology for assessing and 
           certifying the safety and reliability of the nuclear 
           stockpile.
Sec. 3117. Consolidation of counterintelligence programs of Department 
           of Energy and National Nuclear Security Administration.
Sec. 3118. Notice-and-wait requirement applicable to certain third-party 
           financing arrangements.
Sec. 3119. Extension of deadline for transfer of lands to Los Alamos 
           County, New Mexico, and of lands in trust for the Pueblo of 
           San Ildefonso.
Sec. 3120. Limitations on availability of funds for Waste Treatment and 
           Immobilization Plant.
Sec. 3121. Report on Russian Surplus Fissile Materials Disposition 
           Program.
Sec. 3122. Limitation on availability of funds for construction of MOX 
           Fuel Fabrication Facility.
Sec. 3123. Education of future nuclear engineers.
Sec. 3124. Technical correction related to authorization of 
           appropriations for fiscal year 2006.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Authorized uses of National Defense Stockpile funds.
Sec. 3302. Revisions to required receipt objectives for previously 
           authorized disposals from National Defense Stockpile.

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations

[[Page 120 STAT. 2100]]

                   TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for fiscal year 2007.
Sec. 3502. Amendments relating to the Maritime Security Fleet program.
Sec. 3503. Applicability to certain Maritime Administration vessels of 
           limitations on overhaul, repair, and maintenance of vessels 
           in foreign shipyards.
Sec. 3504. Vessel transfer authority.
Sec. 3505. United States Merchant Marine Academy graduates: service 
           requirements.
Sec. 3506. United States Merchant Marine Academy graduates: service 
           obligation performance reporting requirement.
Sec. 3507. Temporary authority to transfer obsolete combatant vessels to 
           Navy for disposal.
Sec. 3508. Qualifying Reserve duty for receipt of student incentive 
           payments.
Sec. 3509. Large passenger ship crew requirements.
Sec. 3510. Miscellaneous Maritime Administration provisions.

SEC. 3. <<NOTE: 10 USC 101 note.>> CONGRESSIONAL DEFENSE 
                    COMMITTEES.

    For purposes of this Act, the term ``congressional defense 
committees'' has the meaning given that term in section 101(a)(16) of 
title 10, United States Code.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

 101. Army.
 102. Navy and Marine Corps.
 103. Air Force.
 104. Defense-wide activities.

                        Subtitle B--Army Programs

 111. Sense of Congress on future multiyear procurement authority for 
           Family of Medium Tactical Vehicles.
 112. Multiyear procurement authority for MH-60R helicopters and mission 
           equipment.
 113. Funding profile for Modular Force Initiative of the Army.
 114. Bridge to Future Networks program.
 115. Comptroller General report on the contract for the Future Combat 
           Systems program.
 116. Priority for allocation of replacement equipment to operational 
           units based on combat mission deployment schedule.

                        Subtitle C--Navy Programs

 121. CVN-21 class aircraft carrier procurement.
 122. Adherence to Navy cost estimates for CVN-21 class of aircraft 
           carriers.
 123. Modification of limitation on total cost of procurement of CVN-77 
           aircraft carrier.
 124. Construction of first two vessels under the DDG-1000 Next-
           Generation Destroyer program.
 125. Adherence to Navy cost estimates for LHA Replacement amphibious 
           assault ship program.
 126. Cost limitation for San Antonio (LPD-17) class amphibious ship 
           program.
 127. Multiyear procurement authority for V-22 tiltrotor aircraft 
           program.
 128. Alternative technologies for future surface combatants.
 129. Sense of Congress regarding the size of the attack submarine 
           force.
 130. Quality control in procurement of ship critical safety items and 
           related services.

                     Subtitle D--Air Force Programs

 131. Bomber force structure.
 132. Strategic airlift force structure.
 133. Limitation on retirement of U-2 aircraft.
 134. Multiyear procurement authority for F-22A Raptor fighter aircraft.

[[Page 120 STAT. 2101]]

 135. Limitation on retirement of KC-135E aircraft during fiscal year 
           2007.
 136. Limitation on retirement of F-117A aircraft during fiscal year 
           2007.
 137. Limitation on retirement of C-130E tactical airlift aircraft.
 138. Procurement of Joint Primary Aircraft Training System aircraft 
           after fiscal year 2006.
 139. Minuteman III intercontinental ballistic missile modernization.

               Subtitle E--Joint and Multiservice Matters

 141. Clarification of limitation on initiation of new unmanned aerial 
           vehicle systems.

               Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
for procurement for the Army as follows:
            (1) For aircraft, $3,451,429,000.
            (2) For missiles, $1,328,859,000.
            (3) For weapons and tracked combat vehicles, $2,278,604,000.
            (4) For ammunition, $1,984,325,000.
            (5) For other procurement, $7,687,502,000.
            (6) For National Guard Equipment, $318,000,000.
SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for fiscal 
year 2007 for procurement for the Navy as follows:
            (1) For aircraft, $10,734,071,000.
            (2) For weapons, including missiles and torpedoes, 
        $2,549,020,000.
            (3) For shipbuilding and conversion, $11,021,553,000.
            (4) For other procurement, $4,995,033,000.

    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2007 for procurement for the Marine Corps in the amount 
of $1,253,813,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for fiscal year 2007 for procurement of ammunition 
for the Navy and the Marine Corps in the amount of $797,943,000.
SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
for procurement for the Air Force as follows:
            (1) For aircraft, $12,179,154,000.
            (2) For ammunition, $1,072,749,000.
            (3) For missiles, $4,171,886,000.
            (4) For other procurement, $15,443,286,000.
SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
for Defense-wide procurement in the amount of $2,886,361,000.

[[Page 120 STAT. 2102]]

                        Subtitle B--Army Programs

SEC. 111. SENSE OF CONGRESS ON FUTURE MULTIYEAR PROCUREMENT 
                        AUTHORITY FOR FAMILY OF MEDIUM TACTICAL 
                        VEHICLES.

    (a) Future Acquisition Strategy.--It is the sense of Congress that, 
as part of the Army's planning, programming, and budgeting process for 
fiscal year 2008, the Secretary of the Army should request from Congress 
authority by law to enter into a multiyear procurement (MYP) contract 
for the Family of Medium Tactical Vehicles (FMTV) program and that, in 
support of such request, the Secretary should submit to Congress the 
necessary justification materials required by law to justify a multiyear 
procurement (MYP) contract, including the material required by section 
2306b of title 10, United States Code.
    (b) Incorporation of Product Improvements.--It is the sense of 
Congress that any proposal by the Secretary of the Army for multiyear 
procurement authority for procurement of vehicles under the Family of 
Medium Tactical Vehicles program should provide for incorporation into 
the vehicles to be procured through such authority of improvements 
from--
            (1) lessons learned from operations involving the Global War 
        on Terrorism; and
            (2) product improvement programs carried out for the Family 
        of Medium Tactical Vehicles program in the areas of force 
        protection, survivability, reliability, network communications, 
        situational awareness, and safety.
SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR MH-60R HELICOPTERS 
                        AND MISSION EQUIPMENT.

    (a) MH-60R Helicopter.--Subject to subsection (c), the Secretary of 
the Army, acting as executive agent for the Department of the Navy, may 
enter into a multiyear contract for the procurement of MH-60R 
helicopters.
    (b) MH-60R Helicopter Mission Equipment.--Subject to subsection (c), 
the Secretary of the Navy may enter into a multiyear contract for the 
procurement of MH-60R helicopter mission equipment for the helicopters 
covered by a multiyear contract under subsection (a).
    (c) Contract Requirements.--Any multiyear contract under this 
section--
            (1) shall be entered into in accordance with section 2306b 
        of title 10, United States Code, and shall commence with the 
        fiscal year 2007 program year; and
            (2) shall provide that any obligation of the United States 
        to make a payment under the contract is subject to the 
        availability of appropriations for that purpose.
SEC. 113. FUNDING PROFILE FOR MODULAR FORCE INITIATIVE OF THE 
                        ARMY.

    The Secretary of the Army shall set forth in the budget presentation 
materials of the Army submitted to Congress in support of the 
President's budget for any fiscal year after fiscal year 2007, and in 
other relevant materials submitted to Congress with respect to the 
budget of the Army for any such fiscal year, all amounts for procurement 
for the M1A2 Abrams tank System Enhancement Program (SEP) and for the 
Bradley A3 fighting vehicle as elements

[[Page 120 STAT. 2103]]

within the amounts requested for the Modular Force Initiative of the 
Army, in accordance with the report of the Army titled ``The Army 
Modular Force Initiative'', submitted to Congress in March 2006.
SEC. 114. BRIDGE TO FUTURE NETWORKS PROGRAM.

    (a) <<NOTE: Reports.>> Limitation on Fiscal Year 2007 Amount.--Of 
the amount authorized to be appropriated for the Army for fiscal year 
2007 for Other Procurement, Army, that is available for the program of 
the Army designated as the Bridge to Future Networks, not more than 75 
percent shall be made available for obligation until the Secretary of 
the Army submits to the congressional defense committees a report on 
that program that includes the matters specified in subsection (b).

    (b) Matters To Be Included.--The report under subsection (a) shall 
include the following:
            (1) An analysis of how the systems specified in subsection 
        (c) will fit together, including, for each such system, an 
        analysis of whether there are opportunities to leverage 
        technologies and equipment from that system as part of the 
        development of the other systems.
            (2) A description of the extent to which components of the 
        systems specified in subsection (c) could be used together as 
        elements of a single tactical network.
            (3) A description of the strategy of the Army for completing 
        the systems engineering necessary to ensure the end-to-end 
        interoperability of a single tactical network referred to in 
        paragraph (2).
            (4) An assessment of the costs of acquiring each of the 
        systems specified in subsection (c).
            (5) An assessment of the technical compatibility of the 
        systems specified in subsection (c).
            (6) A description of the plans of the Army for fielding the 
        systems specified in subsection (c).
            (7) A description of the plans of the Army for sustaining 
        the Joint Network Node through fiscal year 2020 and an 
        assessment of the need to upgrade its technologies and 
        equipment.
            (8) A description of the plans of the Army for the insertion 
        of new technology into the Joint Network Node.

    (c) Specified Systems.--The systems referred to in subsection (b) 
are as follows:
            (1) The Joint Network Node (JNN) element of the Bridge to 
        Future Networks program.
            (2) The Warfighter Information Network-Tactical (WIN-T) 
        program.
            (3) The Mounted Battle Command On-the-Move (MBCOTM) system.
SEC. 115. COMPTROLLER GENERAL REPORT ON THE CONTRACT FOR THE 
                        FUTURE COMBAT SYSTEMS PROGRAM.

    (a) Report Required.--Not later than March 15, 2007, the Comptroller 
General of the United States shall submit to the congressional defense 
committees a report on the participation and activities of the lead 
systems integrator in the Future Combat Systems (FCS) program under the 
contract of the Army for the Future Combat Systems.
    (b) Elements.--The report required by subsection (a) shall include 
the following:

[[Page 120 STAT. 2104]]

            (1) A description of the responsibilities of the lead 
        systems integrator in managing the Future Combat Systems program 
        under the contract for the Future Combat Systems, and an 
        assessment of the manner in which such responsibilities differ 
        from the typical responsibilities of a lead systems integrator 
        under acquisition contracts of the Department of Defense.
            (2) A description and assessment of the responsibilities of 
        the Army in managing the Future Combat Systems program, 
        including oversight of the activities of the lead systems 
        integrator and the decisions made by the lead systems 
        integrator.
            (3) An assessment of the manner in which the Army--
                    (A) ensures that the lead systems integrator meets 
                goals for the Future Combat Systems in a timely manner; 
                and
                    (B) evaluates the extent to which such goals are 
                met.
            (4) An identification of the mechanisms in place to ensure 
        the protection of the interests of the United States in the 
        Future Combat Systems program.
            (5) An identification of the mechanisms in place to mitigate 
        organizational conflicts of interest with respect to competition 
        on Future Combat Systems technologies and equipment under 
        subcontracts under the Future Combat Systems program.
SEC. 116. PRIORITY FOR ALLOCATION OF REPLACEMENT EQUIPMENT TO 
                        OPERATIONAL UNITS BASED ON COMBAT MISSION 
                        DEPLOYMENT SCHEDULE.

    The Secretary of Defense shall ensure that priority for the 
distribution of new and combat-serviceable replacement equipment 
acquired using funds authorized to be appropriated by this title 
(together with associated support and test equipment) is given to 
operational units (regardless of component) based on combat mission 
deployment schedule.

                        Subtitle C--Navy Programs

SEC. 121. CVN-21 CLASS AIRCRAFT CARRIER PROCUREMENT.

    (a) Contract Authority for Construction.--In the fiscal year 
immediately following the last fiscal year of the contract for advance 
procurement for a CVN-21 class aircraft carrier designated CVN-78, CVN-
79, or CVN-80, as applicable, the Secretary may enter into a contract 
for the construction of such aircraft carrier to be funded in the fiscal 
year of such contract for construction and the succeeding three fiscal 
years.
    (b) Condition for Out-Year Contract Payments.--A contract entered 
into under subsection (a) shall provide that any obligation of the 
United States to make a payment under the contract for any subsequent 
fiscal year is subject to the availability of appropriations for that 
purpose for such subsequent fiscal year.
    (c) Repeal of Superceded Provision.--Section 128 of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 
Stat. 3159) is repealed.
SEC. 122. ADHERENCE TO NAVY COST ESTIMATES FOR CVN-21 CLASS OF 
                        AIRCRAFT CARRIERS.

    (a) Limitation.--

[[Page 120 STAT. 2105]]

            (1) Lead ship.--The total amount obligated or expended from 
        funds appropriated or otherwise made available for Shipbuilding 
        and Conversion, Navy, or for any other procurement account, for 
        the aircraft carrier designated as CVN-21 may not exceed 
        $10,500,000,000 (as adjusted pursuant to subsection (b)).
            (2) Follow-on ships.--The total amount obligated or expended 
        from funds appropriated or otherwise made available for 
        Shipbuilding and Conversion, Navy, or for any other procurement 
        account, for the construction of any ship that is constructed in 
        the CVN-21 class of aircraft carriers after the lead ship of 
        that class may not exceed $8,100,000,000 (as adjusted pursuant 
        to subsection (b)).

    (b) Adjustment of Limitation Amount.--The Secretary of the Navy may 
adjust the amount set forth in subsection (a) for any ship constructed 
in the CVN-21 class of aircraft carriers by the following:
            (1) The amounts of increases or decreases in costs 
        attributable to economic inflation after September 30, 2006.
            (2) The amounts of increases or decreases in costs 
        attributable to compliance with changes in Federal, State, or 
        local laws enacted after September 30, 2006.
            (3) The amounts of outfitting costs and post-delivery costs 
        incurred for that ship.
            (4) The amounts of increases or decreases in costs of that 
        ship that are attributable to insertion of new technology into 
        that ship, as compared to the technology baseline as it was 
        defined in the approved acquisition program baseline estimate of 
        December 2005.
            (5) The amounts of increases or decreases to nonrecurring 
        design and engineering cost attributable to achieving compliance 
        with the cost limitation.
            (6) The amounts of increases or decreases to cost required 
        to correct deficiencies that may affect the safety of the ship 
        and personnel or otherwise preclude the ship from safe 
        operations and crew certification.

    (c) Limitation on Technology Insertion Cost Adjustment.--The 
Secretary of the Navy may use the authority under paragraph (4) of 
subsection (b) to adjust the amount set forth in subsection (a) for a 
ship referred to in that subsection with respect to insertion of new 
technology into that ship only if--
            (1) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the new 
        technology would lower the life-cycle cost of the ship; or
            (2) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the new 
        technology is required to meet an emerging threat and the 
        Secretary of Defense certifies to those committees that such 
        threat poses grave harm to national security.

    (d) Written Notice of Change in Amount.--
            (1) Requirement.--The Secretary of the Navy shall submit to 
        the congressional defense committees each year, at the same time 
        that the budget is submitted under section 1105(a) of title 31, 
        United States Code, for the next fiscal year, written notice of 
        any change in the amount set forth in subsection (a) during the 
        preceding fiscal year that the Secretary has

[[Page 120 STAT. 2106]]

        determined to be associated with a cost referred to in 
        subsection (b).
            (2) Effective date.--The requirement in paragraph (1) shall 
        become effective with the budget request for the year of 
        procurement of the first ship referred to in subsection (a).
SEC. 123. MODIFICATION OF LIMITATION ON TOTAL COST OF PROCUREMENT 
                        OF CVN-77 AIRCRAFT CARRIER.

    Section 122(f)(1) of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1650) is amended by 
striking ``$4,600,000,000 (such amount being the estimated cost for the 
procurement of the CVN-77 aircraft carrier in the March 1997 procurement 
plan)'' and inserting ``$6,057,000,000''.
SEC. 124. CONSTRUCTION OF FIRST TWO VESSELS UNDER THE DDG-1000 
                        NEXT-GENERATION DESTROYER PROGRAM.

    (a) Availability of Funds.--Of the amount authorized to be 
appropriated by section 102(a)(3) for fiscal year 2007 for Shipbuilding 
and Conversion, Navy, $2,568,000,000 may be available for the 
construction of the first two vessels under the DDG-1000 Next-Generation 
Destroyer program.
    (b) Contract Authority.--
            (1) In general.--The Secretary of the Navy may enter into a 
        contract beginning with the fiscal year 2007 program year for 
        procurement of each of the first two vessels under the DDG-1000 
        Next-Generation Destroyer program.
            (2) Limitation.--Not more than one contract described in 
        paragraph (1) may be awarded under that paragraph to a single 
        shipyard.
            (3) Split funding authorized.--Each contract under paragraph 
        (1) shall contemplate funding for the procurement of a vessel 
        under such contract using a combination of funds appropriated 
        for fiscal year 2007 and funds appropriated for fiscal year 
        2008.
            (4) Condition on out-year contract payments.--A contract 
        entered into under paragraph (1) shall provide that any 
        obligation of the United States to make a payment under such 
        contract for any fiscal year after fiscal year 2007 is subject 
        to the availability of appropriations for that purpose for such 
        fiscal year.

    (c) Sense of Congress on Funding for Follow-on Ships.--It is the 
sense of Congress that there is sufficient benefit to authorizing the 
one-time exception provided in this section to the full funding policy 
in order to support the competitive procurement of the follow-on ships 
of the DDG-1000 Next-Generation Destroyer program. However, it is the 
expectation of Congress that the Secretary of the Navy will structure 
the DDG-1000 program so that each ship, after the first two ships, is 
procured using the method of full funding in a single year.
SEC. 125. ADHERENCE TO NAVY COST ESTIMATES FOR LHA REPLACEMENT 
                        AMPHIBIOUS ASSAULT SHIP PROGRAM.

    (a) Limitation.--The total amount obligated or expended from funds 
appropriated or otherwise made available for Shipbuilding and 
Conversion, Navy, or for any other procurement account, for procurement 
of any ship that is constructed under the LHA Replacement (LHA(R)) 
amphibious assault ship program may not exceed $2,813,600,000 (as 
adjusted pursuant to subsection (b)).

[[Page 120 STAT. 2107]]

    (b) Adjustment of Limitation Amount.--The Secretary of the Navy may 
adjust the amount set forth in subsection (a) for any ship constructed 
under the LHA Replacement amphibious assault ship program by the 
following:
            (1) The amounts of increases or decreases in costs 
        attributable to economic inflation after September 30, 2006.
            (2) The amounts of increases or decreases in costs 
        attributable to compliance with changes in Federal, State, or 
        local laws enacted after September 30, 2006.
            (3) The amounts of outfitting costs and post-delivery costs 
        incurred for that ship.
            (4) The amounts of increases or decreases in costs of that 
        ship that are attributable to insertion of new technology into 
        that ship, as compared to the technology baseline as it was 
        defined at the development stage referred to as Milestone B.
            (5) The amounts of increases or decreases to nonrecurring 
        design and engineering cost attributable to achieving compliance 
        with the cost limitation.
            (6) The amounts of increases or decreases to cost required 
        to correct deficiencies that may affect the safety of the ship 
        and personnel or otherwise preclude the ship from safe 
        operations and crew certification.
            (7) Contract cost adjustments directly attributed to the 
        effect of Hurricane Katrina in August 2005 or other force 
        majeure contract modifications.

    (c) Limitation on Technology Insertion Cost Adjustment.--The 
Secretary of the Navy may use the authority under paragraph (4) of 
subsection (b) to adjust the amount set forth in subsection (a) for a 
ship referred to in that subsection with respect to insertion of new 
technology into that ship only if--
            (1) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the new 
        technology would lower the life-cycle cost of the ship; or
            (2) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the new 
        technology is required to meet an emerging threat and the 
        Secretary of Defense certifies to those committees that such 
        threat poses grave harm to national security.

    (d) Written Notice of Change in Amount.--
            (1) Requirement.--The Secretary of the Navy shall submit to 
        the congressional defense committees each year, at the same time 
        that the budget is submitted under section 1105(a) of title 31, 
        United States Code, for the next fiscal year, written notice of 
        any change in the amount set forth in subsection (a) during the 
        preceding fiscal year that the Secretary has determined to be 
        associated with a cost referred to in subsection (b).
            (2) Effective date.--The requirement in paragraph (1) shall 
        become effective with the budget request for the year of 
        procurement of the first ship referred to in subsection (a).
SEC. 126. COST LIMITATION FOR SAN ANTONIO (LPD-17) CLASS 
                        AMPHIBIOUS SHIP PROGRAM.

    (a) Limitation.--
            (1) Procurement cost.--The total amount obligated or 
        expended from funds appropriated or otherwise made available for 
        Shipbuilding and Conversion, Navy, for the San Antonio-

[[Page 120 STAT. 2108]]

        class amphibious ships designated as LPD-22, LPD-23, LPD-24, and 
        LPD-25 may not exceed the amount for each such vessel specified 
        in paragraph (2).
            (2) Specified cost limit by vessel.--The limitation under 
        this subsection for each vessel specified in paragraph (1) is 
        the following:
                    (A) For the LPD-22 ship, $1,523,000,000 (as adjusted 
                pursuant to subsection (b)).
                    (B) For the LPD-23 ship, $1,477,000,000 (as adjusted 
                pursuant to subsection (b)).
                    (C) For the LPD-24 ship, $1,633,000,000 (as adjusted 
                pursuant to subsection (b)).
                    (D) For the LPD-25 ship, $1,927,000,000 (as adjusted 
                pursuant to subsection (b)).

    (b) Adjustment of Limitation Amounts.--The Secretary of the Navy may 
adjust the amount set forth in subsection (a) for any ship specified in 
that subsection by the following:
            (1) The amounts of increases or decreases in costs 
        attributable to economic inflation after September 30, 2006.
            (2) The amounts of increases or decreases in costs 
        attributable to compliance with changes in Federal, State, or 
        local laws enacted after September 30, 2006.
            (3) The amounts of outfitting costs and post-delivery costs 
        incurred for that ship.
            (4) The amounts of increases or decreases in costs of that 
        ship that are attributable to insertion of new technology into 
        that ship, as compared to the technology built into the U.S.S. 
        San Antonio (LPD-17), the lead ship of the LPD-17 class.
            (5) Contract cost adjustments directly attributed to the 
        effect of Hurricane Katrina in August 2005 or other force 
        majeure contract modifications.
            (6) The amounts of closeout costs associated with completion 
        of the LPD-17 class program.

    (c) Limitation on Technology Insertion Cost Adjustment.--The 
Secretary of the Navy may use the authority under paragraph (4) of 
subsection (b) to adjust the amount set forth in subsection (a) for any 
LPD-17 class ship with respect to insertion of new technology into that 
ship only if--
            (1) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the new 
        technology would lower the life-cycle cost of the ship; or
            (2) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the new 
        technology is required to meet an emerging threat and the 
        Secretary of Defense certifies to those committees that such 
        threat poses grave harm to national security.

    (d) Written Notice of Change in Amount.--
            (1) Requirement.--The Secretary of the Navy shall submit to 
        the congressional defense committees each year, at the same time 
        that the budget is submitted under section 1105(a) of title 31, 
        United States Code, for the next fiscal year, written notice of 
        any change in the amount set forth in subsection (a) during the 
        preceding fiscal year that the Secretary has determined to be 
        associated with a cost referred to in subsection (b).

[[Page 120 STAT. 2109]]

            (2) Effective date.--The requirement in paragraph (1) shall 
        become effective with the budget request for the year of 
        procurement of the first ship referred to in subsection (a).
SEC. 127. MULTIYEAR PROCUREMENT AUTHORITY FOR V-22 TILTROTOR 
                        AIRCRAFT PROGRAM.

    The Secretary of the Navy, in accordance with section 2306b of title 
10, United States Code, and acting as executive agent for the Secretary 
of the Air Force and the commander of the United States Special 
Operations Command, may enter into a multiyear contract, beginning with 
the fiscal year 2008 program year, for procurement of V-22 tiltrotor 
aircraft.
SEC. 128. <<NOTE: 10 USC 7291 note.>> ALTERNATIVE TECHNOLOGIES FOR 
                        FUTURE SURFACE COMBATANTS.

    (a) Findings.--Congress makes the following findings:
            (1) Securing and maintaining access to affordable and 
        plentiful sources of energy is a vital national security 
        interest for the United States.
            (2) The Nation's dependence upon foreign oil is a threat to 
        national security due to the inherently volatile nature of the 
        global oil market and the political instability of some of the 
        world's largest oil producing states.
            (3) Given the recent increase in the cost of crude oil, 
        which cannot realistically be expected to improve over the long 
        term, other energy sources must be seriously considered.
            (4) Alternate propulsion sources such as nuclear power offer 
        many advantages over conventional power for major surface 
        combatant ships of the Navy, including--
                    (A) virtually unlimited high-speed endurance;
                    (B) elimination of vulnerable refueling; and
                    (C) reduction in the requirement for replenishment 
                vessels and the need to protect those vessels.

    (b) Sense of Congress.--In light of the findings in subsection (a), 
it is the sense of Congress that the Navy should make greater use of 
alternative technologies, including expanded application of integrated 
power systems, fuel cells, and nuclear power, for propulsion of future 
major surface combatant ships.
    (c) Requirement.--The Secretary of the Navy shall include integrated 
power systems, fuel cells, and nuclear power as propulsion alternatives 
to be evaluated within the analysis of alternatives for future major 
surface combatant ships.
SEC. 129. SENSE OF CONGRESS REGARDING THE SIZE OF THE ATTACK 
                        SUBMARINE FORCE.

    (a) Findings.--Congress makes the following findings:
            (1) The United States Navy must be large enough, agile 
        enough, and lethal enough to deter any threat and defeat any 
        foe.
            (2) The proliferation of modern nuclear and nonnuclear 
        submarines in the navies of nations around the globe will make 
        undersea superiority a more significant challenge in the future.
            (3) The unique combination of firepower, stealth, sensors, 
        and communications equipment contained in a modern attack 
        submarine make the attack submarine a critical component of the 
        Armed Forces of the United States.

[[Page 120 STAT. 2110]]

            (4) The report entitled ``Report to Congress on Annual Long-
        Range Plan for Construction of Naval Vessels for fiscal year 
        2007'', submitted to Congress by the Secretary of the Navy 
        pursuant to section 231 of title 10, United States Code--
                    (A) identifies future naval force structure 
                requirements indexed to Department of Defense fiscal 
                year 2020 threat assessments and compliant with the 
                Fiscal Year 2006 Quadrennial Defense Review and, with 
                respect to the attack submarine force, identifies a need 
                for the Navy to maintain a fleet of not less than 48 
                attack submarines; and
                    (B) projects that the attack submarine force will 
                fall below 48 vessels between 2020 and 2032.

    (b) Sense of Congress.--In light of the findings in subsection (a), 
it is the sense of Congress that the Secretary of the Navy should take 
all reasonable effort to accelerate the construction of Virginia Class 
submarines to maintain the attack submarine force structure at not less 
than 48 submarines and (if the number of attack submarines should fall 
below 48), to minimize the period the attack submarine force remains 
below 48 vessels.
SEC. 130. <<NOTE: 10 USC 2302 note.>> QUALITY CONTROL IN 
                        PROCUREMENT OF SHIP CRITICAL SAFETY ITEMS 
                        AND RELATED SERVICES.

    (a) <<NOTE: Regulations.>> Quality Control Policy.--The Secretary of 
Defense shall prescribe in regulations a quality control policy for the 
procurement of the following:
            (1) Ship critical safety items.
            (2) Modifications, repair, and overhaul of ship critical 
        safety items.

    (b) Elements.--The policy required under subsection (a) shall 
include requirements as follows:
            (1) That the head of the design control activity for ship 
        critical safety items establish processes to identify and manage 
        the procurement, modification, repair, and overhaul of such 
        items.
            (2) That the head of the contracting activity for a ship 
        critical safety item enter into a contract for the procurement, 
        modification, repair, or overhaul of such item only with a 
        source on a qualified manufacturers list or a source approved by 
        the design control activity in accordance with section 2319 of 
        title 10, United States Code (as amended by subsection (d)).
            (3) That the ship critical safety items delivered, and the 
        services performed with respect to such items, meet all 
        technical and quality requirements specified by the design 
        control activity.

    (c) Definitions.--In this section, the terms ``ship critical safety 
item'' and ``design control activity'' have the meanings given such 
terms in subsection (g) of section 2319 of title 10, United States Code 
(as so amended).
    (d) Conforming Amendments.--Section 2319 of title 10, United States 
Code, is amended--
            (1) in subsection (c)(3), by inserting ``or ship critical 
        safety item'' after ``aviation critical safety item''; and
            (2) in subsection (g)--
                    (A) by redesignating paragraph (2) as paragraph (3);

[[Page 120 STAT. 2111]]

                    (B) by inserting after paragraph (1) the following 
                new paragraph (2):
            ``(2) The term `ship critical safety item' means any ship 
        part, assembly, or support equipment containing a characteristic 
        the failure, malfunction, or absence of which could cause a 
        catastrophic or critical failure resulting in loss of or serious 
        damage to the ship or unacceptable risk of personal injury or 
        loss of life.''; and
                    (C) in paragraph (3), as so redesignated--
                          (i) by inserting ``or ship critical safety 
                      item'' after ``aviation critical safety item'';
                          (ii) by inserting ``, or the seaworthiness of 
                      a ship or ship equipment,'' after ``equipment''; 
                      and
                          (iii) by striking ``the item'' and inserting 
                      ``such item''.

                     Subtitle D--Air Force Programs

SEC. 131. BOMBER FORCE STRUCTURE.

    (a) Requirement for B-52 Force Structure.--
            (1) Retirement limitation.--During the B-52 retirement 
        limitation period, the Secretary of the Air Force--
                    (A) may not retire more than 18 B-52 aircraft; and
                    (B) shall maintain not less than 44 such aircraft as 
                combat-coded aircraft.
            (2) B-52 retirement limitation period.--For purposes of 
        paragraph (1), the B-52 retirement limitation period is the 
        period beginning on the date of the enactment of this Act and 
        ending on the date that is the earlier of--
                    (A) January 1, 2018; and
                    (B) the date as of which a long-range strike 
                replacement aircraft with equal or greater capability 
                than the B-52H model aircraft has attained initial 
                operational capability status.

    (b) Limitation on Retirement Pending Report on Bomber Force 
Structure.--
            (1) Limitation.--No funds authorized to be appropriated for 
        the Department of Defense may be obligated or expended for 
        retiring any of the 93 B-52H bomber aircraft in service in the 
        Air Force as of the date of the enactment of this Act until 45 
        days after the date on which the Secretary of the Air Force 
        submits the report specified in paragraph (2).
            (2) Report.--A report specified in this subsection is a 
        report submitted by the Secretary of the Air Force to the 
        Committees on Armed Services of the Senate and the House of 
        Representatives on the amount and type of bomber force structure 
        of the Air Force, including the matters specified in paragraph 
        (4).
            (3) Amount and type of bomber force structure defined.--In 
        this subsection, the term ``amount and type of bomber force 
        structure'' means the number of each of the following types of 
        aircraft that are required to carry out the national security 
        strategy of the United States:
                    (A) B-2 bomber aircraft.
                    (B) B-52H bomber aircraft.
                    (C) B-1 bomber aircraft.

[[Page 120 STAT. 2112]]

            (4) Matter to be included.--A report under paragraph (2) 
        shall include the following:
                    (A) The plan of the Secretary of the Air Force for 
                the modernization of the B-52, B-1, and B-2 bomber 
                aircraft fleets.
                    (B) The amount and type of bomber force structure 
                for the conventional mission and strategic nuclear 
                mission in executing two overlapping ``swift defeat'' 
                campaigns.
                    (C) A justification of the cost and projected 
                savings of any reductions to the B-52H bomber aircraft 
                fleet as a result of the retirement of the B-52H bomber 
                aircraft covered by the report.
                    (D) The life expectancy of each bomber aircraft to 
                remain in the bomber force structure.
                    (E) The capabilities of the bomber force structure 
                that would be replaced, augmented, or superseded by any 
                new bomber aircraft.
            (5) Preparation of report.--A report under paragraph (2) 
        shall be prepared by the Institute for Defense Analyses and 
        submitted to the Secretary of the Air Force for submittal by the 
        Secretary in accordance with that paragraph.
SEC. 132. STRATEGIC AIRLIFT FORCE STRUCTURE.

    Section 8062 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(g)(1) <<NOTE: Effective date.>> Effective October 1, 2008, the 
Secretary of the Air Force shall maintain a total aircraft inventory of 
strategic airlift aircraft of not less than 299 aircraft.

    ``(2) In this subsection:
            ``(A) The term `strategic airlift aircraft' means an 
        aircraft--
                    ``(i) that has a cargo capacity of at least 150,000 
                pounds; and
                    ``(ii) that is capable of transporting outsized 
                cargo an unrefueled range of at least 2,400 nautical 
                miles.
            ``(B) The term `outsized cargo' means any single item of 
        equipment that exceeds 1,090 inches in length, 117 inches in 
        width, or 105 inches in height.''.
SEC. 133. LIMITATION ON RETIREMENT OF U-2 AIRCRAFT.

    (a) Fiscal Year 2007.--The Secretary of the Air Force may not retire 
any U-2 aircraft of the Air Force in fiscal year 2007.
    (b) Years After Fiscal Year 2007.--
            (1) Certification required.--After fiscal year 2007, the 
        Secretary of the Air Force may retire a U-2 aircraft only if the 
        Secretary of Defense certifies to Congress that the 
        intelligence, surveillance, and reconnaissance (ISR) 
        capabilities provided by the U-2 aircraft no longer contribute 
        to mitigating any gaps in intelligence, surveillance, and 
        reconnaissance capabilities identified in the 2006 Quadrennial 
        Defense Review.
            (2) Limitations.--No action may be taken by the Department 
        of Defense to retire (or to prepare to retire) any U-2 aircraft 
        before a certification specified in paragraph (1) is submitted 
        to Congress. If such a certification is submitted, no such 
        action may be taken until after the end of the 60-day period 
        beginning on the date on which the certification is submitted.

[[Page 120 STAT. 2113]]

SEC. 134. MULTIYEAR PROCUREMENT AUTHORITY FOR F-22A RAPTOR FIGHTER 
                        AIRCRAFT.

    (a) Prohibition on Use of Incremental Funding.--The Secretary of the 
Air Force may not use incremental funding for the procurement of F-22A 
aircraft.
    (b) Multiyear Authority.--The Secretary of the Air Force may enter 
into a multiyear contract for the procurement of up to 60 F-22A Raptor 
fighter aircraft beginning with the 2007 program year.
    (c) Compliance With Law Applicable to Multiyear Contracts.--A 
contract under subsection (b) for the procurement of F-22A aircraft 
shall be entered into in accordance with section 2306b of title 10, 
United States Code, except that, notwithstanding subsection (k) of that 
section, such a contract may not be for a period in excess of three 
program years.
    (d) Secretary of Defense Certification.--In the case of a contract 
under subsection (b) for the procurement of F-22A aircraft, a 
certification under subsection (i)(1)(A) of section 2306b of title 10, 
United States Code, with respect to that contract may only be submitted 
if the certification includes an additional certification by the 
Secretary that each of the conditions specified in subsection (a) of 
that section has been satisfied with respect to that contract, as 
follows:
            (1) That the use of such contract will result in substantial 
        savings of the total anticipated costs of carrying out the 
        program through annual contracts.
            (2) That the minimum need for the property to be purchased 
        is expected to remain substantially unchanged during the 
        contemplated contract period in terms of production rate, 
        procurement rate, and total quantities.
            (3) That there is a reasonable expectation that throughout 
        the contemplated contract period the Secretary of the Air Force 
        will request funding for the contract at the level required to 
        avoid contract cancellation.
            (4) That there is a stable design for the property to be 
        acquired and that the technical risks associated with such 
        property are not excessive.
            (5) That the estimates of both the cost of the contract and 
        the anticipated cost avoidance through the use of a multiyear 
        contract are realistic.
            (6) That the use of such contract will promote the national 
        security of the United States.

In certifying that the cost savings are substantial, the Secretary shall 
duly consider the historical cost savings that led to a decision to 
proceed with a multiyear procurement contract under section 2306b of 
title 10, United States Code, in the case of previous aviation-related 
multiyear contracts authorized by law dating back to fiscal year 1982.
    (e) FFRDC Cost Report.--The Secretary of Defense shall provide for a 
federally funded research and development center (other than the 
Institute for Defense Analyses) to report on the cost estimates for a 
three year, 60-aircraft, F-22A multiyear procurement program, beginning 
in fiscal year 2007, compared to a corresponding annual procurement 
program.
    (f) Notice-and-Wait Requirement.--Upon submission to Congress of a 
certification referred to in subsection (d) with respect to a proposed 
contract under subsection (b) for the procurement

[[Page 120 STAT. 2114]]

of F-22A aircraft and the Secretary's submission to the congressional 
defense committees of the report referred to in subsection (e), the 
contract may then be entered into only after the end of the 30-day 
period beginning on the later of the date of the submission of the 
certification or the date of the submission of the report.
SEC. 135. LIMITATION ON RETIREMENT OF KC-135E AIRCRAFT DURING 
                        FISCAL YEAR 2007.

    (a) Limitation.--The number of KC-135E aircraft retired by the 
Secretary of the Air Force during fiscal year 2007 may not exceed 29.
    (b) Treatment of Retired Aircraft.--The Secretary of the Air Force 
shall maintain each KC-135E aircraft that is retired by the Secretary 
after September 30, 2006, in a condition that would allow recall of that 
aircraft to future service in the Air Force Reserve, Air National Guard, 
or active forces aerial refueling force structure.
SEC. 136. LIMITATION ON RETIREMENT OF F-117A AIRCRAFT DURING 
                        FISCAL YEAR 2007.

    (a) Limitation.--The number of F-117A aircraft retired by the 
Secretary of the Air Force during fiscal year 2007 may not exceed 10.
    (b) Treatment of Retired Aircraft.--The Secretary of the Air Force 
shall maintain each F-117A aircraft that is retired by the Secretary 
after September 30, 2006, in a condition that would allow recall of that 
aircraft to future service.
SEC. 137. LIMITATION ON RETIREMENT OF C-130E TACTICAL AIRLIFT 
                        AIRCRAFT.

    (a) Limitation.--The number of C-130E tactical airlift aircraft 
retired by the Secretary of the Air Force during fiscal year 2007 may 
not exceed 51.
    (b) Treatment of Retired Aircraft.--The Secretary of the Air Force 
shall maintain each C-130E tactical airlift aircraft that is retired by 
the Secretary after September 30, 2006, in a condition that would allow 
recall of that aircraft to future service.
SEC. 138. PROCUREMENT OF JOINT PRIMARY AIRCRAFT TRAINING SYSTEM 
                        AIRCRAFT AFTER FISCAL YEAR 2006.

    Any Joint Primary Aircraft Training System (JPATS) aircraft procured 
after fiscal year 2006 shall be procured through a contract under part 
15 of the Federal Acquisition Regulation (FAR), relating to acquisition 
of items by negotiated contract (48 C.F.R. 15.000 et seq.), rather than 
through a contract under part 12 of the Federal Acquisition Regulation, 
relating to acquisition of commercial items (48 C.F.R. 12.000 et seq.).
SEC. 139. MINUTEMAN III INTERCONTINENTAL BALLISTIC MISSILE 
                        MODERNIZATION.

    (a) Modernization of Intercontinental Ballistic Missiles Required.--
The Secretary of the Air Force shall modernize Minuteman III 
intercontinental ballistic missiles in the United States inventory as 
required to maintain a sufficient supply of launch test assets and 
spares to sustain the deployed force of such missiles through 2030.

[[Page 120 STAT. 2115]]

    (b) Limitation on Termination of Modernization Programs Pending 
Report.--
            (1) Limitation.--No funds authorized to be appropriated for 
        the Department of Defense may be obligated or expended for the 
        termination of any ICBM modernization program with respect to 
        the Minuteman III intercontinental ballistic missile system, or 
        for the withdrawal of any Minuteman III intercontinental 
        ballistic missile from the active force, until 30 days after the 
        date on which the Secretary of Defense submits to the 
        congressional defense committees a report described in 
        subsection (c).
            (2) ICBM modernization program defined.--In this subsection, 
        the term ``ICBM Modernization program'' means each of the 
        following:
                    (A) The Guidance Replacement Program (GRP).
                    (B) The Propulsion Replacement Program (PRP).
                    (C) The Propulsion System Rocket Engine (PSRE) 
                program.
                    (D) The Safety Enhanced Reentry Vehicle (SERV) 
                program.

    (c) Report Elements.--A report under subsection (b)(1) is a report 
setting forth the following:
            (1) A detailed strategic justification for the proposal to 
        reduce the Minuteman III intercontinental ballistic missile 
        force from 500 to 450 missiles, including an analysis of the 
        effects of the reduction on the ability of the United States to 
        assure allies and dissuade potential competitors.
            (2) A detailed analysis of the strategic ramifications of 
        continuing to equip a portion of the Minuteman III missile force 
        with multiple independent warheads rather than single warheads.
            (3) An assessment of the test assets and spares required to 
        maintain a force of 500 deployed Minuteman III missiles through 
        2030.
            (4) An assessment of the test assets and spares required to 
        maintain a force of 450 deployed Minuteman III missiles through 
        2030.
            (5) An inventory of currently available Minuteman III 
        missile test assets and spares.
            (6) A plan to sustain and complete the modernization of all 
        deployed and spare Minuteman III missiles, a test plan, and an 
        analysis of the funding required to carry out modernization of 
        all deployed and spare Minuteman III missiles.
            (7) An assessment of whether halting upgrades to the 
        Minuteman III missiles withdrawn from the deployed force would 
        compromise the ability of those missiles to serve as test 
        assets.
            (8) A description of the plan of the Department of Defense 
        for extending the life of the Minuteman III missile force beyond 
        fiscal year 2030.

[[Page 120 STAT. 2116]]

               Subtitle E--Joint and Multiservice Matters

SEC. 141. CLARIFICATION OF LIMITATION ON INITIATION OF NEW 
                        UNMANNED AERIAL VEHICLE SYSTEMS.

    (a) Applicability of Limitation Only to Procurement Funds.--
Subsection (a) of section 142 of National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3164) is amended--
            (1) by inserting ``for procurement'' after ``the Department 
        of Defense''; and
            (2) by inserting before the period at the end the following: 
        ``(or by an official within the Office of the Under Secretary 
        designated by the Under Secretary for that purpose)''.

    (b) Applicability Only to New Systems.--Subsection (b) of that 
section is amended to read as follows:
    ``(b) Exception for Existing Systems.--The limitation in subsection 
(a) does not apply with respect to an unmanned aerial vehicle (UAV) 
system (or any component or other item of associated equipment of any 
such system described in subsection (a)) if as of January 6, 2006--
            ``(1) the system (or component or item of associated 
        equipment) to be procured is otherwise under contract or has 
        previously been procured by the Department; or
            ``(2) funds have been appropriated but not yet obligated for 
        the system (or component or item of associated equipment).''.

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for defense science and technology.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Acquisition of, and independent cost analyses for, the Joint 
           Strike Fighter propulsion system.
Sec. 212. Expansion and extension of authority to award prizes for 
           advanced technology achievements.
Sec. 213. Defense Acquisition Challenge Program extension, enhancement, 
           and modification to address critical cost growth threshold 
           breaches in major defense acquisition programs.
Sec. 214. Future Combat Systems milestone review.
Sec. 215. Dedicated amounts for implementing or evaluating Navy 
           shipbuilding technology proposals under Defense Acquisition 
           Challenge Program.
Sec. 216. Independent estimate of costs of the Future Combat Systems.
Sec. 217. Funding of defense science and technology programs.
Sec. 218. Hypersonics development.
Sec. 219. Report on program for replacement of nuclear warheads on 
           certain Trident sea-launched ballistic missiles with 
           conventional warheads.

                  Subtitle C--Missile Defense Programs

Sec. 221. Fielding of ballistic missile defense capabilities.
Sec. 222. Limitation on use of funds for space-based interceptor.
Sec. 223. Policy of the United States on priorities in the development, 
           testing, and fielding of missile defense capabilities.
Sec. 224. One-year extension of Comptroller General assessments of 
           ballistic missile defense programs.
Sec. 225. Submittal of plans for test and evaluation of the operational 
           capability of the Ballistic Missile Defense System.
Sec. 226. Annual reports on transition of ballistic missile defense 
           programs to the military departments.

[[Page 120 STAT. 2117]]

                        Subtitle D--Other Matters

Sec. 231. Policies and practices on test and evaluation to address 
           emerging acquisition approaches.
Sec. 232. Extension of requirement for Global Research Watch Program.
Sec. 233. Sense of Congress on technology sharing of Joint Strike 
           Fighter technology.
Sec. 234. Report on vehicle-based active protection systems for certain 
           battlefield threats.

               Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $10,876,609,000.
            (2) For the Navy, $17,383,857,000.
            (3) For the Air Force, $24,235,951,000.
            (4) For Defense-wide activities, $21,111,559,000, of which 
        $181,520,000 is authorized for the Director of Operational Test 
        and Evaluation.
SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

    (a) Fiscal Year 2007.--Of the amounts authorized to be appropriated 
by section 201, $11,662,554,000 shall be available for the Defense 
Science and Technology Program, including basic research, applied 
research, and advanced technology development projects.
    (b) Basic Research, Applied Research, and Advanced Technology 
Development Defined.--For purposes of this section, the term ``basic 
research, applied research, and advanced technology development'' means 
work funded in program elements for defense research and development 
under Department of Defense budget activity 1, 2, or 3.

     Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. ACQUISITION OF, AND INDEPENDENT COST ANALYSES FOR, THE 
                        JOINT STRIKE FIGHTER PROPULSION SYSTEM.

    (a) Acquisition.--
            (1) In general.--The Secretary of Defense shall provide for 
        the development and procurement of the propulsion system for the 
        Joint Strike Fighter aircraft through the continued development 
        and sustainment of two interchangeable propulsion systems for 
        that aircraft by two separate contractors throughout the life 
        cycle of the aircraft.
            (2) Modifications prohibited.--Except as provided by 
        paragraph (3), the Secretary may not carry out any modification 
        to the acquisition program for the Joint Strike Fighter aircraft 
        that would result in the development or procurement of the 
        propulsion system for that aircraft in a manner other than that 
        required by paragraph (1).
            (3) Modifications allowed.--Notwithstanding paragraph (1), a 
        modification described in paragraph (2) may be carried

[[Page 120 STAT. 2118]]

        out to the extent that each of the following requirements is 
        met:
                    (A) The Secretary of Defense has notified the 
                congressional defense committees of the modification.
                    (B) Each of the reports required by subsection (b) 
                has been submitted.
                    (C) Funds are appropriated for that purpose pursuant 
                to an authorization of appropriations.

    (b) Independent Cost Analyses.--
            (1) In general.--A comprehensive and detailed cost analysis 
        of the Joint Strike Fighter engine program shall be 
        independently performed by each of the following:
                    (A) The Comptroller General.
                    (B) A federally funded research and development 
                center selected by the Secretary of Defense.
                    (C) The Secretary of Defense, acting through the 
                Cost Analysis Improvement Group of the Office of the 
                Secretary of Defense.
            (2) Matters covered.--Each such cost analysis shall cover--
                    (A) an alternative under which the Joint Strike 
                Fighter aircraft is capable of using the F135 engine 
                only;
                    (B) an alternative under which the program executes 
                a one-time firm-fixed price contract for a selected 
                propulsion system for the Joint Strike Fighter aircraft 
                for the life cycle of the aircraft following the Initial 
                Service Release of the propulsion system in fiscal year 
                2008;
                    (C) an alternative under which the Joint Strike 
                Fighter aircraft is capable of using either the F135 
                engine or the F136 engine, and the engine selection is 
                carried out on a competitive basis; and
                    (D) any other alternative, whether competitive or 
                sole source, that would reduce total life-cycle cost, 
                improve program schedule, or both.
            (3) Reports.--Not later than March 15, 2007, the Secretary 
        of Defense, the Comptroller General, and the chief executive 
        officer of the federally funded research and development center 
        selected under paragraph (1)(B) shall independently submit to 
        the congressional defense committees a report on the cost 
        analysis carried out under paragraph (1). Each such report shall 
        include each of the following matters:
                    (A) The key assumptions used in carrying out the 
                cost analysis.
                    (B) The methodology and techniques used in carrying 
                out the cost analysis.
                    (C) For each alternative required by paragraph (2)--
                          (i) a comparison of the life-cycle costs, 
                      including costs in current and constant dollars 
                      and a net-present-value analysis;
                          (ii) estimates of--
                                    (I) supply, maintenance, and other 
                                operations manpower required to support 
                                the alternative;
                                    (II) the number of flight hours 
                                required to achieve engine maturity and 
                                the year in which that is expected to be 
                                achieved; and

[[Page 120 STAT. 2119]]

                                    (III) the total number of engines 
                                expected to be procured over the 
                                lifetime of the Joint Strike Fighter 
                                program; and
                          (iii) an evaluation of benefits, other than 
                      cost, provided by competition, to include an 
                      assessment of improved performance, operational 
                      readiness and warfighting capability, risk 
                      reduction, technology innovation, and contractor 
                      responsiveness.
                    (D) A description of the acquisition strategies 
                (including development and production) that were used 
                for, and experience with respect to cost, schedule, and 
                performance under, past acquisition programs for engines 
                for tactical fighter aircraft, including the F-15, F-16, 
                F-18, and F-22 aircraft.
                    (E) A comparison of the experiences under past 
                acquisition programs carried out on a sole-source basis 
                with respect to performance, savings, maintainability, 
                reliability, and technical innovation.
                    (F) The impact that canceling the F136 competitive 
                engine would have on the high-performance military 
                engine industrial base, and on the Department of 
                Defense's ability to make competitive engine choices for 
                future combat aircraft systems beyond the Joint Strike 
                Fighter.
                    (G) Conclusions and recommendations.
            (4) Certifications.--In submitting the report required by 
        paragraph (3), the Comptroller General and the chief executive 
        officer of the federally funded research and development center 
        shall also submit a certification as to whether the Secretary of 
        Defense provided access to sufficient information to enable the 
        Comptroller General or the chief executive officer, as the case 
        may be, to make informed judgments on the matters required to be 
        included in the report.

    (c) Life-Cycle Costs Defined.--In this section, the term ``life-
cycle costs'' includes--
            (1) those elements of cost that would be considered for a 
        life-cycle cost analysis for a major defense acquisition 
        program, including procurement of engines, procurement of spare 
        engines, and procurement of engine components and parts; and
            (2) good-faith estimates of routine engine costs (such as 
        performance upgrades and component improvement) that 
        historically have occurred in tactical fighter engine programs.
SEC. 212. EXPANSION AND EXTENSION OF AUTHORITY TO AWARD PRIZES FOR 
                        ADVANCED TECHNOLOGY ACHIEVEMENTS.

    (a) Expansion.--
            (1) In general.--Subsection (a) of section 2374a of title 
        10, United States Code, is amended--
                    (A) by striking ``Director of the Defense Advanced 
                Research Projects Agency'' and inserting ``Director of 
                Defense Research and Engineering and the service 
                acquisition executive for each military department''; 
                and
                    (B) by striking ``a program'' and inserting 
                ``programs''.
            (2) Conforming amendments.--Such section is further 
        amended--
                    (A) in subsection (b), by striking ``The program'' 
                and inserting ``Each program''; and

[[Page 120 STAT. 2120]]

                    (B) in subsection (d)--
                          (i) by striking ``The program'' and inserting 
                      ``A program''; and
                          (ii) by striking ``the Director'' and 
                      inserting ``an official referred to in that 
                      subsection''.

    (b) Extension.--Subsection (f) of such section is amended by 
striking ``September 30, 2007'' and inserting ``September 30, 2010''.
    (c) Modification of Reporting Requirement.--Subsection (e) of such 
section is amended to read as follows:
    ``(e) Annual Report.--
            ``(1) In general.--Not later than March 1 of each year, the 
        Secretary shall submit to the Committee on Armed Services of the 
        Senate and the Committee on Armed Services of the House of 
        Representatives a report on the activities carried out during 
        the preceding fiscal year under the authority in subsection (a).
            ``(2) Information included.--The report for a fiscal year 
        under this subsection shall include, for each program under 
        subsection (a), the following:
                    ``(A) A description of the proposed goals of the 
                competitions established under the program, including 
                the areas of research, technology development, or 
                prototype development to be promoted by such 
                competitions and the relationship of such areas to the 
                military missions of the Department of Defense.
                    ``(B) An analysis of why the utilization of the 
                authority in subsection (a) was the preferable method of 
                achieving the goals described in subparagraph (A) as 
                opposed to other authorities available to the 
                Department, such as contracts, grants, and cooperative 
                agreements.
                    ``(C) The total amount of cash prizes awarded under 
                the program, including a description of the manner in 
                which the amounts of cash prizes awarded and claimed 
                were allocated among the accounts of the Department for 
                recording as obligations and expenditures.
                    ``(D) The methods used for the solicitation and 
                evaluation of submissions under the program, together 
                with an assessment of the effectiveness of such methods.
                    ``(E) A description of the resources, including 
                personnel and funding, used in the execution of the 
                program, together with a detailed description of the 
                activities for which such resources were used and an 
                accounting of how funding for execution was allocated 
                among the accounts of the Department for recording as 
                obligations and expenditures.
                    ``(F) A description of any plans to transition the 
                technologies or prototypes developed as a result of the 
                program into an acquisition program of the Department.
            ``(3) Suspension of authority for failure to include 
        information.--For each program under subsection (a), the 
        authority to obligate or expend funds under that program is 
        suspended as of the date specified in paragraph (1) if the 
        Secretary does not, by that date, submit a report that includes, 
        for that program, all the information required by paragraph (2). 
        As of the date on which the Secretary does submit a report that 
        includes, for that program, all the information required by 
        paragraph (2), the suspension is lifted.''.

[[Page 120 STAT. 2121]]

SEC. 213. DEFENSE ACQUISITION CHALLENGE PROGRAM EXTENSION, 
                        ENHANCEMENT, AND MODIFICATION TO ADDRESS 
                        CRITICAL COST GROWTH THRESHOLD BREACHES IN 
                        MAJOR DEFENSE ACQUISITION PROGRAMS.

    (a) Assessment of Additional Issues Required in the Event of 
Critical Cost Growth.--Section 2433(e)(2)(A) of title 10, United States 
Code, is amended--
            (1) by redesignating clauses (i), (ii), and (iii) as clauses 
        (ii), (iii), and (iv) respectively; and
            (2) by inserting before clause (ii) (as so redesignated) the 
        following new clause:
                    ``(i) any design, engineering, manufacturing, or 
                technology integration issues that contributed 
                significantly to the cost growth of the program;''.

    (b) Requirement for Challenge Program to Address Critical Cost 
Growth Threshold Breaches in Major Defense Acquisition Programs.--
            (1) Solicitation of challenge proposals.--Section 2359b(c) 
        of title 10, United States Code, is amended--
                    (A) by redesignating paragraphs (4), (5), and (6) as 
                paragraphs (5), (6), and (7), respectively; and
                    (B) by inserting after paragraph (3) the following 
                new paragraph (4):
            ``(4)(A) <<NOTE: Procedures.>> The Under Secretary shall 
        establish procedures for the prompt issuance of a solicitation 
        for challenge proposals addressing--
                    ``(i) any acquisition program for which, since the 
                last such announcement, the Secretary concerned has 
                determined under section 2433(d) of this title that the 
                program's acquisition unit cost or procurement unit cost 
                has increased by a percentage equal to or greater than 
                the critical cost growth threshold for the program (in 
                this section referred to as a `critical cost growth 
                threshold breach'); and
                    ``(ii) any design, engineering, manufacturing, or 
                technology integration issues, in accordance with the 
                assessment required by section 2433(e)(2)(A) of this 
                title, that have contributed significantly to the cost 
                growth of such program.
            ``(B) A solicitation under this paragraph may be included in 
        a broad agency announcement issued pursuant to paragraph (3) as 
        long as the broad agency announcement is released in an 
        expeditious manner following the determination of the Secretary 
        concerned that a critical cost growth threshold breach has 
        occurred with respect to a major defense acquisition program.''.
            (2) Requirement for guidelines for covering costs of 
        challenge proposals.--Section 2359b(e) of such title is amended 
        by adding at the end the following new paragraph:

    ``(3) In the case of a challenge proposal submitted in response to a 
solicitation issued as a result of a critical cost growth threshold 
breach that is determined under full review and evaluation to satisfy 
each of the criteria specified in subsection (c)(5), the Under Secretary 
shall establish guidelines for covering the costs of the challenge 
proposal. If appropriate, such guidelines shall not be restricted to 
funding provided by the Defense Acquisition Challenge Program, but shall 
also consider alternative funding sources, such

[[Page 120 STAT. 2122]]

as the acquisition program with respect to which the breach occurred.''.
            (3) Action upon unfavorable full review and evaluation.--
        Section 2359b of such title is amended--
                    (A) by redesignating subsections (f), (g), (h), (i), 
                and (j) as subsections (g), (h), (i), (j), and (k) 
                respectively; and
                    (B) by inserting after subsection (e) the following 
                new subsection (f):

    ``(f) Action Upon Unfavorable Full Review and Evalua- tion.--
Under <<NOTE: Procedures. Applicability.>> procedures prescribed by the 
Under Secretary, if a challenge proposal is determined by a Panel to 
satisfy each of the criteria specified in subsection (c)(5), but is not 
determined under a full review and evaluation to satisfy such criteria, 
the following provisions apply:
            ``(1) The office carrying out the full review and evaluation 
        shall provide to the Panel that conducted the preliminary 
        evaluation a statement containing a summary of the rationale for 
        the unfavorable evaluation.
            ``(2) If the Panel disagrees with the rationale provided 
        under paragraph (1), the Panel may return the challenge proposal 
        to the office for further consideration.''.
            (4) Additional information required to be included in annual 
        report.--Section 2359b(j) of such title, as redesignated by 
        paragraph (3), is amended by striking ``No report is required 
        for a fiscal year in which the Challenge Program is not carried 
        out.'' and inserting ``The report shall also include a list of 
        each challenge proposal that was determined by a Panel to 
        satisfy each of the criteria specified in subsection (c)(5), but 
        was not determined under a full review and evaluation to satisfy 
        such criteria, together with a detailed rationale for the 
        Department's determination that such criteria were not 
        satisfied.''.

    (c) Evaluation and Report Required.--The Under Secretary of Defense 
for Acquisition, Technology, and Logistics, in coordination with the 
service acquisition executives, shall--
            (1) evaluate the efficacy of the incentives provided to 
        encourage the adoption of each challenge proposal receiving 
        favorable full review and evaluation, as required by section 
        2359b(e)(2) of title 10, United States Code;
            (2) identify additional incentives and authorities required, 
        if any, to further facilitate the adoption of each challenge 
        proposal receiving favorable full review and evaluation, 
        particularly in the case of challenge proposals submitted in 
        response to critical cost growth threshold breaches (as such 
        term is used in section 2359b of such title); and
            (3) not later than March 1, 2007, submit to the Committees 
        on Armed Services of the Senate and the House of Representatives 
        a report setting forth the results of such evaluation and 
        identification.

    (d) Priority for Proposals From Certain Businesses.--Paragraph (6) 
of section 2359b(c) of such title, as redesignated by paragraph 
(b)(1)(A), is amended to read as follows:
    ``(6) The Under Secretary--
            ``(A) may establish procedures to ensure that the Challenge 
        Program does not become an avenue for the repetitive submission 
        of proposals that have been previously reviewed and found not to 
        have merit; and

[[Page 120 STAT. 2123]]

            ``(B) may establish procedures to ensure that the Challenge 
        Program establishes appropriate priorities for proposals from 
        businesses that are not major contractors with the Department of 
        Defense.''.

    (e) Confidentiality.--Subsection (h) of section 2359b of such title, 
as redesignated by subsection (b)(3), is amended--
            (1) by amending the heading to read as follows: ``Conflicts 
        of Interest and Confidentiality''; and
            (2) by striking the period at the end and inserting the 
        following: ``and that the identity of any person or activity 
        submitting a challenge proposal is not disclosed outside the 
        Federal Government, prior to contract award, without the consent 
        of the person or activity. For purposes of the proceeding 
        sentence, the term `Federal Government' includes both employees 
        of the Federal Government and employees of Federal Government 
        contractors providing advisory and assistance services as 
        described in part 37 of the Federal Acquisition Regulation.''.

    (f) Extension.--Subsection (k) of section 2359b of title 10, United 
States Code, as redesignated by subsection (b)(3), is amended by 
striking ``September 30, 2007'' and inserting ``September 30, 2012''.
    (g) Additional Conforming Amendments.--Section 2359b of such title 
is further amended--
            (1) in subsection (c)(7), as redesignated by subsection (b), 
        by striking ``paragraph (4)'' and inserting ``paragraph (5)'';
            (2) in subsection (d)(1), by striking ``subsection (c)(6)'' 
        and inserting ``subsection (c)(7)'';
            (3) in subsection (d)(2), by striking ``subsection (c)(4)'' 
        and inserting ``subsection (c)(5)''; and
            (4) in subsection (e)(1), by striking ``subsection (c)(4)'' 
        and inserting ``subsection (c)(5)''.
SEC. 214. FUTURE COMBAT SYSTEMS MILESTONE REVIEW.

    (a) Milestone Review Required.--Not <<NOTE: Deadline.>> later than 
120 days after the preliminary design review of the Future Combat 
Systems program is completed, the Secretary of Defense shall carry out a 
Defense Acquisition Board milestone review of the Future Combat Systems 
program. The milestone review shall include an assessment as to each of 
the following:
            (1) Whether the warfighter's needs are valid and can be best 
        met with the concept of the program.
            (2) Whether the concept of the program can be developed and 
        produced within existing resources.
            (3) Whether the program should--
                    (A) continue as currently structured;
                    (B) continue in restructured form; or
                    (C) be terminated.

    (b) Determinations To Be Made in Assessing Whether Program Should 
Continue.--In making the assessment required by subsection (a)(3), the 
Secretary shall make a determination with respect to each of the 
following:
            (1) Whether each critical technology for the program is at 
        least Technical Readiness Level 6.
            (2) For each system and network component of the program, 
        what the key design and technology risks are, based on System

[[Page 120 STAT. 2124]]

        Functional Reviews, Preliminary Design Reviews, and Technical 
        Readiness Levels.
            (3) Whether actual demonstrations, rather than simulations, 
        have shown that the concept of the program will work.
            (4) Whether actual demonstrations, rather than plans, have 
        shown that the software for the program is functional.
            (5) What the cost estimate for the program is.
            (6) What the affordability assessment for the program is, 
        based on that cost estimate.

    (c) Report.--The Secretary shall submit to the congressional defense 
committees a report on the findings and conclusions of the milestone 
review required by subsection (a). The report shall include, and 
display, each of the assessments required by subsection (a) and each of 
the determinations required by subsection (b).
    (d) Restriction on Procurement Funds Effective Fiscal 2009.--
            (1) In general.--For fiscal years beginning with 2009, the 
        Secretary may not obligate any funds for procurement for the 
        Future Combat Systems program.
            (2) Exceptions.--Paragraph (1) does not apply with respect 
        to--
                    (A) the obligation of funds for costs attributable 
                to an insertion of new technology (to include spinout 
                systems) into the current force, if the insertion is 
                approved by the Under Secretary of Defense for 
                Acquisition, Technology, and Logistics; or
                    (B) the obligation of funds for the non-line-of-
                sight cannon system.
            (3) Termination.--The requirement of paragraph (1) 
        terminates after the report required by subsection (c) is 
        submitted.
SEC. 215. DEDICATED AMOUNTS FOR IMPLEMENTING OR EVALUATING NAVY 
                        SHIPBUILDING TECHNOLOGY PROPOSALS UNDER 
                        DEFENSE ACQUISITION CHALLENGE PROGRAM.

    (a) Amounts Required.--Of the amounts appropriated pursuant to the 
authorization of appropriations in section 201(4) for research, 
development, test, and evaluation, Defense-wide, $4,000,000 may be 
available to implement or evaluate challenge proposals specified in 
subsection (b).
    (b) Challenge Proposals Covered.--A challenge proposal referred to 
in subsection (a) is a proposal under the Defense Acquisition Challenge 
Program established by section 2359b of title 10, United States Code, 
that relates to technology directly contributing to combat systems and 
open architecture design for Navy ship platforms.
SEC. 216. INDEPENDENT ESTIMATE OF COSTS OF THE FUTURE COMBAT 
                        SYSTEMS.

    (a) Independent Estimate Required.--
            (1) In general.--The Secretary of Defense shall provide for 
        the preparation of an independent estimate of the anticipated 
        costs of systems development and demonstration with respect to 
        the Future Combat Systems.
            (2) Conduct of estimate.--The estimate required by this 
        subsection shall be prepared by a federally funded research and 
        development center selected by the Secretary for purposes of 
        this subsection.

[[Page 120 STAT. 2125]]

            (3) Matters to be addressed.--The independent estimate 
        prepared under this subsection shall address costs of research, 
        development, test, and evaluation, and costs of procurement, 
        for--
                    (A) the system development and demonstration phase 
                of the core Future Combat Systems;
                    (B) the Future Combat Systems technologies to be 
                incorporated into the equipment of the current force of 
                the Army (often referred to as ``spinouts'');
                    (C) the installation kits for the incorporation of 
                such technologies into such equipment;
                    (D) the systems treated as complementary systems for 
                the Future Combat Systems;
                    (E) science and technology initiatives that support 
                the Future Combat Systems program; and
                    (F) any pass-through charges anticipated to be 
                assessed by the lead systems integrator of the Future 
                Combat Systems and its major subcontractors.
            (4) Submittal to congress.--Upon completion of the 
        independent estimate required by this subsection, the Secretary 
        shall submit to the congressional defense committees a report on 
        the estimate.
            (5) Deadline for submittal.--The report described in 
        paragraph (4) shall be submitted not later than April 1, 2007.

    (b) Pass-Through Charge Defined.--In this section, the term ``pass-
through charge'' has the meaning given that term in section 805(c)(5) of 
the National Defense Authorization Act for Fiscal Year 2006 (Public Law 
109-163; 119 Stat. 3373).
SEC. 217. FUNDING OF DEFENSE SCIENCE AND TECHNOLOGY PROGRAMS.

    (a) Failure To Comply With Funding Objective.--Section 212 of the 
National Defense Authorization Act for Fiscal Year 2000 (10 U.S.C. 2501 
note) is amended in subsection (a) by striking ``especially the Air 
Force Science and Technology Program,''.
    (b) Extension of Funding Objective.--Such section is amended in 
subsection (b) by striking ``through 2009'' and inserting ``through 
2012''.
    (c) Actions Following Failure To Comply With Objective.--Such 
section is further amended by adding at the end the following new 
subsection:
    ``(c) Actions Following Failure To Comply With Objective.--If the 
proposed budget for a fiscal year covered by subsection (b) fails to 
comply with the objective set forth in that subsection, the Secretary of 
Defense shall submit to the congressional defense committees, at the 
same time that the Department of Defense budget justification materials 
for the next fiscal year are submitted to Congress--
            ``(1) a detailed, prioritized list, including estimates of 
        required funding, of highly-rated science and technology 
        projects received by the Department through competitive 
        solicitations and broad agency announcements which--
                    ``(A) are not funded solely due to lack of 
                resources, but
                    ``(B) represent science and technology opportunities 
                that support the research and development programs and

[[Page 120 STAT. 2126]]

                goals of the military departments and the Defense 
                Agencies; and
            ``(2) <<NOTE: Reports. Classified information.>> a report, 
        in both classified and unclassified form, containing an analysis 
        and evaluation of international research and technology 
        capabilities, including an identification of any technology 
        areas in which the United States may not have global technical 
        leadership within the next 10 years, in each of the technology 
        areas described in the following plans:
                    ``(A) The most current Joint Warfighting Science and 
                Technology Plan required by section 270 of the National 
                Defense Authorization Act for Fiscal Year 1997 (10 
                U.S.C. 2501 note).
                    ``(B) The Defense Technology Area Plan of the 
                Department of Defense.
                    ``(C) The Basic Research Plan of the Department of 
                Defense.''.
SEC. 218. <<NOTE: 10 USC 2358 note.>> HYPERSONICS DEVELOPMENT.

    (a) Establishment of Joint Technology Office on Hypersonics.--The 
Secretary of Defense shall establish within the Office of the Secretary 
of Defense a joint technology office on hypersonics. The office shall 
carry out the program required under subsection (b), and shall have such 
other responsibilities relating to hypersonics as the Secretary shall 
specify.
    (b) Program on Hypersonics.--The joint technology office established 
under subsection (a) shall carry out a program for the development of 
hypersonics for defense purposes.
    (c) Responsibilities.--In carrying out the program required by 
subsection (b), the joint technology office established under subsection 
(a) shall do the following:
            (1) Coordinate and integrate current and future research, 
        development, test, and evaluation programs and system 
        demonstration programs of the Department of Defense on 
        hypersonics.
            (2) Undertake appropriate actions to ensure--
                    (A) close and continuous integration of the programs 
                on hypersonics of the military departments with the 
                programs on hypersonics of the Defense Agencies;
                    (B) coordination of the programs referred to in 
                subparagraph (A) with the programs on hypersonics of the 
                National Aeronautics and Space Administration; and
                    (C) that developmental testing resources are 
                adequate and facilities are made available in a timely 
                manner to support hypersonics research, demonstration 
                programs, and system development.
            (3) Approve demonstration programs on hypersonic systems.
            (4) Ensure that any demonstration program on hypersonic 
        systems that is carried out in any year after its approval under 
        paragraph (3) is carried out only if certified under subsection 
        (e) as being consistent with the roadmap under subsection (d).

    (d) Roadmap.--
            (1) Roadmap required.--The joint technology office 
        established under subsection (a) shall develop, and every two 
        years revise, a roadmap for the hypersonics programs of the 
        Department of Defense.

[[Page 120 STAT. 2127]]

            (2) Coordination.--The roadmap shall be developed and 
        revised under paragraph (1) in coordination with the Joint Staff 
        and in consultation with the National Aeronautics and Space 
        Administration.
            (3) Elements.--The roadmap shall include the following 
        matters:
                    (A) Anticipated or potential mission requirements 
                for hypersonics.
                    (B) Short-term, mid-term, and long-term goals for 
                the Department of Defense on hypersonics, which shall be 
                consistent with the missions and anticipated 
                requirements of the Department over the applicable 
                period.
                    (C) A schedule for meeting such goals, including--
                          (i) the activities and funding anticipated to 
                      be required for meeting such goals; and
                          (ii) the activities of the National 
                      Aeronautics and Space Administration to be 
                      leveraged by the Department to meet such goals.
                    (D) The test and evaluation facilities required to 
                support the activities identified in subparagraph (C), 
                along with the schedule and funding required to upgrade 
                those facilities, as necessary.
                    (E) Acquisition transition plans for hypersonics.
            (4) Submittal to congress.--The Secretary shall submit to 
        the congressional defense committees--
                    (A) at the same time as the submittal to Congress of 
                the budget for fiscal year 2008 (as submitted pursuant 
                to section 1105 of title 31, United States Code), the 
                roadmap developed under paragraph (1); and
                    (B) at the same time as the submittal to Congress of 
                the budget for each even-numbered fiscal year after 
                2008, the roadmap revised under paragraph (1).

    (e) Annual Review and Certification of Funding.--
            (1) Annual review.--The joint technology office established 
        under subsection (a) shall conduct on an annual basis a review 
        of--
                    (A) the funding available for research, development, 
                test, and evaluation and demonstration programs within 
                the Department of Defense for hypersonics, in order to 
                determine whether or not such funding is consistent with 
                the roadmap developed under subsection (d); and
                    (B) the hypersonics demonstration programs of the 
                Department, in order to determine whether or not such 
                programs avoid duplication of effort and support the 
                goals of the Department in a manner consistent with the 
                roadmap developed under subsection (d).
            (2) Certification.--The joint technology office shall, as a 
        result of each review under paragraph (1), certify to the 
        Secretary whether or not the funding and programs subject to 
        such review are consistent with the roadmap developed under 
        subsection (d).
            (3) Termination.--The requirements of this subsection shall 
        terminate after the submittal to Congress of the budget for 
        fiscal year 2012 pursuant to section 1105 of title 31, United 
        States Code.

    (f) Reports to Congress.--If, as a result of a review under 
subsection (e), funding or a program on hypersonics is certified

[[Page 120 STAT. 2128]]

under that subsection not to be consistent with the roadmap developed 
under subsection (d), the Secretary shall submit to the congressional 
defense committees, at the same time as the submittal to Congress of the 
budget (as submitted pursuant to section 1105 of title 31, United States 
Code), a report on such funding or program, as the case may be, 
describing how such funding or program is not consistent with the 
roadmap, together with a statement of the actions to be taken by the 
Department.
SEC. 219. REPORT ON PROGRAM FOR REPLACEMENT OF NUCLEAR WARHEADS ON 
                        CERTAIN TRIDENT SEA-LAUNCHED BALLISTIC 
                        MISSILES WITH CONVENTIONAL WARHEADS.

    (a) Report Required.--Not later than February 1, 2007, the Secretary 
of Defense shall submit to the congressional defense committees a report 
setting forth a proposal to replace nuclear warheads on 24 Trident D-5 
sea-launched ballistic missiles with conventional kinetic warheads for 
deployment on submarines that carry Trident sea-launched ballistic 
missiles. The report shall be prepared in consultation with the 
Secretary of State.
    (b) Elements.--The report required by subsection (a) shall include 
the following:
            (1) A description of the types of scenarios, types of 
        targets, and circumstances in which a conventional sea-launched 
        ballistic missile might be used.
            (2) A discussion of the weapon systems or weapons, whether 
        current or planned, that could be used as an alternative for 
        each of the scenarios, target types, and circumstances set forth 
        under paragraph (1), and a statement of any reason why each such 
        weapon system or weapon is not a suitable alternative to a 
        conventional sea-launched ballistic missile.
            (3) A description of the command and control arrangements 
        for conventional sea-launched ballistic missiles, including 
        launch authority and the use of Permissive Action Links (PALs).
            (4) An assessment of the capabilities of other countries to 
        detect and track the launch of a conventional or nuclear sea-
        launched ballistic missile.
            (5) An assessment of the capabilities of other countries to 
        discriminate between the launch of a nuclear sea-launched 
        ballistic missile and a conventional sea-launched ballistic 
        missile, other than in a testing scenario.
            (6) An assessment of the notification and other protocols 
        that would have to be in place before using any conventional 
        sea-launched ballistic missile and a plan for entering into such 
        protocols.
            (7) An assessment of the adequacy of the intelligence that 
        would be needed to support an attack involving conventional sea-
        launched ballistic missiles.
            (8) A description of the total program cost, including the 
        procurement costs of additional D-5 missiles, of the 
        conventional Trident sea-launched ballistic missile program, by 
        fiscal year.
            (9) An analysis and assessment of the implications for 
        ballistic missile proliferation if the United States decides to 
        go forward with the conventional Trident sea-launched ballistic 
        missile program or any other conventional long-range ballistic 
        missile program.

[[Page 120 STAT. 2129]]

            (10) An analysis and assessment of the implications for the 
        United States missile defense system if other countries use 
        conventional long-range ballistic missiles.
            (11) An analysis of any problems created by the ambiguity 
        that results from the use of the same ballistic missile for both 
        conventional and nuclear warheads.
            (12) An analysis and assessment of the methods that other 
        countries might use to resolve the ambiguities associated with a 
        nuclear or conventional sea-launched ballistic missile.
            (13) An analysis, by the Secretary of State, of the 
        international, treaty, and other concerns that would be 
        associated with the use of a conventional sea-launched ballistic 
        missile and recommendations for measures to mitigate or 
        eliminate such concerns.
            (14) A joint statement by the Secretary of Defense and the 
        Secretary of State on how to ensure that the use of a 
        conventional sea-launched ballistic missile will not result in 
        an intentional, inadvertent, mistaken, or accidental reciprocal 
        or responsive launch of a nuclear strike by any other country.

                  Subtitle C--Missile Defense Programs

SEC. 221. FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES.

    Upon approval by the Secretary of Defense, funds authorized to be 
appropriated for fiscal years 2007 and 2008 for research, development, 
test, and evaluation for the Missile Defense Agency may be used for the 
development and fielding of ballistic missile defense capabilities.
SEC. 222. LIMITATION ON USE OF FUNDS FOR SPACE-BASED INTERCEPTOR.

    (a) Limitation.--No funds appropriated or otherwise made available 
to the Department of Defense may be obligated or expended for the 
testing or deployment of a space-based interceptor until 90 days after 
the date on which a report described in subsection (c) is submitted.
    (b) Space-Based Interceptor Defined.--For purposes of this section, 
the term ``space-based interceptor'' means a kinetic or directed energy 
weapon that is stationed on a satellite or orbiting platform and that is 
intended to destroy another satellite in orbit or a ballistic missile 
launched from earth.
    (c) Report.--A report described in this subsection is a report 
prepared by the Director of the Missile Defense Agency and submitted to 
the congressional defense committees containing the following:
            (1) A description of the essential components of a proposed 
        space-based interceptor system, including a description of how 
        the system proposed would enhance or complement other missile 
        defense systems.
            (2) An estimate of the acquisition and life-cycle cost of 
        the system described under paragraph (1), including lift cost 
        and periodic replacement cost due to depreciation and attrition.
            (3) An analysis of the vulnerability of such a system to 
        counter-measures, including direct ascent and co-orbital 
        interceptors, and an analysis of the functionality of such a 
        system in the aftermath of a nuclear detonation in space.

[[Page 120 STAT. 2130]]

            (4) A projection of the foreign policy and national security 
        implications of a space-based interceptor program, including the 
        probable response of United States adversaries and United States 
        allies.
SEC. 223. <<NOTE: 10 USC 2431 note.>> POLICY OF THE UNITED STATES 
                        ON PRIORITIES IN THE DEVELOPMENT, TESTING, 
                        AND FIELDING OF MISSILE DEFENSE 
                        CAPABILITIES.

    (a) Findings.--Congress makes the following findings:
            (1) In response to the threat posed by ballistic missiles, 
        President George W. Bush in December 2002 directed the Secretary 
        of Defense to proceed with the fielding of an initial set of 
        missile defense capabilities in 2004 and 2005.
            (2) According to assessments by the intelligence community 
        of the United States, North Korea tested in 2005 a new solid 
        propellant short-range ballistic missile, conducted a launch of 
        a Taepodong-2 ballistic missile/space launch vehicle in 2006, 
        and is likely developing intermediate-range and intercontinental 
        ballistic missile capabilities that could someday reach as far 
        as the United States with a nuclear payload.
            (3) According to assessments by the intelligence community 
        of the United States, Iran continued in 2005 to test its medium-
        range ballistic missile, and the danger that Iran will acquire a 
        nuclear weapon and integrate it with a ballistic missile Iran 
        already possesses is a reason for immediate concern.

    (b) Policy.--It is the policy of the United States that the 
Department of Defense accord a priority within the missile defense 
program to the development, testing, fielding, and improvement of 
effective near-term missile defense capabilities, including the ground-
based midcourse defense system, the Aegis ballistic missile defense 
system, the Patriot PAC-3 system, the Terminal High Altitude Area 
Defense system, and the sensors necessary to support such systems.
SEC. 224. ONE-YEAR EXTENSION OF COMPTROLLER GENERAL ASSESSMENTS OF 
                        BALLISTIC MISSILE DEFENSE PROGRAMS.

    Section 232(g) of the National Defense Authorization Act for Fiscal 
Year 2002 (10 U.S.C. 2431 note) is amended--
            (1) in paragraph (1), by striking ``through 2007'' and 
        inserting ``through 2008''; and
            (2) in paragraph (2), by striking ``through 2008'' and 
        inserting ``through 2009''.
SEC. 225. SUBMITTAL OF PLANS FOR TEST AND EVALUATION OF THE 
                        OPERATIONAL CAPABILITY OF THE BALLISTIC 
                        MISSILE DEFENSE SYSTEM.

    Section 234(a) of the National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109-163; 119 Stat. 3174; 10 U.S.C. 2431 note) is 
amended by adding at the end the following new paragraph:
            ``(3) <<NOTE: Deadline.>> Submittal to congress.--Each plan 
        prepared under this subsection and approved by the Director of 
        Operational Test and Evaluation shall be submitted to the 
        congressional defense committees not later than 30 days after 
        the date of the approval of such plan by the Director.''.

[[Page 120 STAT. 2131]]

SEC. 226. ANNUAL REPORTS ON TRANSITION OF BALLISTIC MISSILE 
                        DEFENSE PROGRAMS TO THE MILITARY 
                        DEPARTMENTS.

    (a) Report Required.--Not later than March 1, 2007, and annually 
thereafter through 2013, the Under Secretary of Defense for Acquisition, 
Technology, and Logistics shall submit to the congressional defense 
committees a report on the plans of the Department of Defense for the 
transition of missile defense programs from the Missile Defense Agency 
to the military departments.
    (b) Scope of Reports.--Each report required by subsection (a) shall 
cover the period covered by the future-years defense program that is 
submitted under section 221 of title 10, United States Code, in the year 
in which such report is submitted.
    (c) Elements.--Each report required by subsection (a) shall include 
the following:
            (1) An identification of--
                    (A) the missile defense programs planned to be 
                transitioned from the Missile Defense Agency to the 
                military departments; and
                    (B) the missile defense programs, if any, not 
                planned for transition to the military departments.
            (2) The schedule for transition of each missile defense 
        program planned to be transitioned to a military department, and 
        an explanation of such schedule.
            (3) A description of--
                    (A) the status of the plans of the Missile Defense 
                Agency and the military departments for the transition 
                of missile defense programs from that agency to the 
                military departments; and
                    (B) the status of any agreement between the Missile 
                Defense Agency and one or more of the military 
                departments on the transition of any such program from 
                that agency to the military departments, including any 
                agreement on the operational test criteria that must be 
                achieved before such transition.
            (4) An identification of the entity of the Department of 
        Defense (whether the Missile Defense Agency, a military 
        department, or both) that will be responsible for funding each 
        missile defense program to be transitioned to a military 
        department, and at what date.
            (5) A description of the type of funds that will be used 
        (whether funds for research, development, test, and evaluation, 
        procurement, military construction, or operation and 
        maintenance) for each missile defense program to be transitioned 
        to a military department.
            (6) An explanation of the number of systems planned for 
        procurement for each missile defense program to be transitioned 
        to a military department, and the schedule for procurement of 
        each such system.

                        Subtitle D--Other Matters

SEC. 231. POLICIES AND PRACTICES ON TEST AND EVALUATION TO ADDRESS 
                        EMERGING ACQUISITION APPROACHES.

    (a) Revision to Report Requirement.--Section 2399(b) of title 10, 
United States Code, is amended--
            (1) by amending paragraph (2) to read as follows:

[[Page 120 STAT. 2132]]

    ``(2) The Director shall analyze the results of the operational test 
and evaluation conducted for each major defense acquisition program. At 
the conclusion of such testing, the Director shall prepare a report 
stating--
            ``(A) the opinion of the Director as to--
                    ``(i) whether the test and evaluation performed were 
                adequate; and
                    ``(ii) whether the results of such test and 
                evaluation confirm that the items or components actually 
                tested are effective and suitable for combat; and
            ``(B) additional information on the operational capabilities 
        of the items or components that the Director considers 
        appropriate based on the testing conducted.'';
            (2) by redesignating paragraph (5) as paragraph (6); and
            (3) by inserting after paragraph (4) the following:

    ``(5) If, before a final decision described in paragraph (4) is made 
for a major defense acquisition program, a decision is made within the 
Department of Defense to proceed to operational use of that program or 
to make procurement funds available for that program, the Director shall 
submit to the Secretary of Defense and the congressional defense 
committees the report with respect to that program under paragraph (2) 
as soon as practicable after the decision described in this paragraph is 
made.''.
    (b) <<NOTE: 10 USC 139 note.>> Review and Revision of Policies and 
Practices.--
            (1) Review.--During fiscal year 2007, the Under Secretary of 
        Defense for Acquisition, Technology, and Logistics and the 
        Director of Operational Test and Evaluation shall review 
        Department of Defense policies and practices on test and 
        evaluation in order to--
                    (A) reaffirm the test and evaluation principles that 
                should guide traditional acquisition programs; and
                    (B) determine how best to apply appropriate test and 
                evaluation principles to emerging acquisition 
                approaches.
            (2) Revised guidance.--If the Under Secretary determines as 
        a result of the review under paragraph (1) that a revision of 
        the policies and practices referred to in that paragraph is 
        necessary, the Under Secretary and the Director shall jointly 
        issue new or revised guidance for the Department of Defense on 
        test and evaluation to address that determination.

    (c) Issues To Be Addressed.--In carrying out subsection (b), the 
Under Secretary shall address policies and practices on test and 
evaluation in order to--
            (1) ensure the performance of test and evaluation activities 
        with regard to--
                    (A) items that are acquired pursuant to the 
                authority for rapid acquisition and deployment of items 
                in section 806 of the Bob Stump National Defense 
                Authorization Act for Fiscal Year 2003 (10 U.S.C. 2302 
                note);
                    (B) programs that are conducted pursuant to the 
                authority for spiral development in section 803 of the 
                Bob Stump National Defense Authorization Act for Fiscal 
                Year 2003 (Public Law 107-314; 116 Stat. 2603; 10 U.S.C. 
                2430 note), or other authority for the conduct of 
                incremental acquisition programs;
                    (C) systems that are acquired pursuant to other 
                emerging acquisition approaches, as approved by the 
                Under Secretary; and

[[Page 120 STAT. 2133]]

                    (D) equipment that is not subject to the operational 
                test and evaluation requirements in sections 2366 and 
                2399 of title 10, United States Code, but that may 
                require limited operational test and evaluation for the 
                purpose of ensuring the safety and survivability of such 
                equipment and personnel using such equipment; and
            (2) ensure the appropriate use, if any, of operational test 
        and evaluation resources to assess technology readiness levels 
        for the purpose of section 2366a of title 10, United States 
        Code, and other applicable technology readiness requirements.

    (d) Inclusion of Testing Needs in Strategic Plan.--The Director, 
Test Resource Management Center, shall ensure that the strategic plan 
for Department of Defense test and evaluation resources developed 
pursuant to section 196 of title 10, United States Code--
            (1) reflects any testing needs of the Department of Defense 
        that are identified as a result of activities under subsection 
        (b); and
            (2) includes an assessment of the test and evaluation 
        facilities, resources, and budgets that will be required to meet 
        such needs.

    (e) Report to Congress.--Not later than nine months after the date 
of the enactment of this Act, the Under Secretary and the Director of 
Operational Test and Evaluation shall submit to the congressional 
defense committees a report on the review conducted under paragraph (1) 
of subsection (b), including any new or revised guidance issued pursuant 
to paragraph (2) of that subsection.
    (f) Clarification of Duties With Respect to Force Protection 
Equipment.--Section 139(b) of title 10, United States Code, is amended--
            (1) by redesignating paragraphs (3) through (6) as 
        paragraphs (4) through (7), respectively; and
            (2) by inserting after paragraph (2) the following:
            ``(3) provide guidance to and consult with the officials 
        described in paragraph (2) with respect to operational test and 
        evaluation or survivability testing (or both) within the 
        Department of Defense of force protection equipment (including 
        non-lethal weapons), which, in such a case--
                    ``(A) shall be guidance and consultation for the 
                purposes of--
                          ``(i) expediting suitable operational test and 
                      evaluation;
                          ``(ii) providing objective subject-matter 
                      expertise;
                          ``(iii) encouraging data sharing between 
                      Department of Defense components; and
                          ``(iv) where appropriate, facilitating the use 
                      of common test standards; and
                    ``(B) does not authorize the Director--
                          ``(i) to approve test and evaluation plans for 
                      such equipment; or
                          ``(ii) to in any manner delay deployment of 
                      such equipment;''.

[[Page 120 STAT. 2134]]

SEC. 232. EXTENSION OF REQUIREMENT FOR GLOBAL RESEARCH WATCH 
                        PROGRAM.

    Section 2365(f) of title 10, United States Code, is amended by 
striking ``September 30, 2006'' and inserting ``September 30, 2011''.
SEC. 233. SENSE OF CONGRESS ON TECHNOLOGY SHARING OF JOINT STRIKE 
                        FIGHTER TECHNOLOGY.

    It is the sense of Congress that the Secretary of Defense should 
share technology with regard to the Joint Strike Fighter between the 
United States Government and the Government of the United Kingdom 
consistent with the national security interests of both nations.
SEC. 234. REPORT ON VEHICLE-BASED ACTIVE PROTECTION SYSTEMS FOR 
                        CERTAIN BATTLEFIELD THREATS.

    (a) <<NOTE: Contracts.>> Independent Assessment.--The Secretary of 
Defense shall enter into a contract with an appropriate entity 
independent of the United States Government to conduct an assessment of 
various foreign and domestic technological approaches to vehicle-based 
active protection systems for defense against both chemical energy and 
kinetic energy top-attack and direct fire threats, including anti-tank 
missiles and rocket propelled grenades, mortars, and other similar 
battlefield threats.

    (b) Report.--
            (1) Report required.--The contract required by subsection 
        (a) shall require the entity entering into such contract to 
        submit to the Secretary of Defense, and to the congressional 
        defense committees, not later than 180 days after the date of 
        the enactment of this Act, a report on the assessment required 
        by that subsection.
            (2) Elements.--The report required under paragraph (1) shall 
        include--
                    (A) a detailed comparative analysis and assessment 
                of the technical approaches covered by the assessment 
                under subsection (a), including the feasibility, 
                military utility, cost, and potential short-term and 
                long-term development and deployment schedule of such 
                approaches; and
                    (B) any other elements specified by the Secretary in 
                the contract under subsection (a).

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Other Department of Defense programs.

                  Subtitle B--Environmental Provisions

Sec. 311. Revision of requirement for unexploded ordnance program 
           manager.
Sec. 312. Funding of cooperative agreements under environmental 
           restoration program.
Sec. 313. Response plan for remediation of unexploded ordnance, 
           discarded military munitions, and munitions constituents.
Sec. 314. Research on effects of ocean disposal of munitions.

[[Page 120 STAT. 2135]]

Sec. 315. Reimbursement of Environmental Protection Agency for certain 
           costs in connection with Moses Lake Wellfield Superfund Site, 
           Moses Lake, Washington.
Sec. 316. Transfer of Government-furnished uranium stored at Sequoyah 
           Fuels Corporation, Gore, Oklahoma.
Sec. 317. Extension of authority to grant exemptions to certain 
           requirements.
Sec. 318. National Academy of Sciences study on human exposure to 
           contaminated drinking water at Camp Lejeune, North Carolina.

     Subtitle C--Program Requirements, Restrictions, and Limitations

Sec. 321. Limitation on financial management improvement and audit 
           initiatives within the Department of Defense.
Sec. 322. Funds for exhibits for the national museums of the Armed 
           Forces.
Sec. 323. Prioritization of funds for equipment readiness and strategic 
           capability.
Sec. 324. Limitation on deployment of Marine Corps Total Force System to 
           Navy.

                 Subtitle D--Workplace and Depot Issues

Sec. 331. Permanent exclusion of certain contract expenditures from 
           percentage limitation on the performance of depot-level 
           maintenance.
Sec. 332. Minimum capital investment for certain depots.
Sec. 333. Extension of temporary authority for contractor performance of 
           security guard functions.

                           Subtitle E--Reports

Sec. 341. Report on Navy Fleet Response Plan.
Sec. 342. Report on Navy surface ship rotational crew programs.
Sec. 343. Report on Army live-fire ranges in Hawaii.
Sec. 344. Comptroller General report on joint standards and protocols 
           for access control systems at Department of Defense 
           installations.
Sec. 345. Comptroller General report on readiness of Army and Marine 
           Corps ground forces.
Sec. 346. Report on Air Force safety requirements for Air Force flight 
           training operations at Pueblo Memorial Airport, Colorado.
Sec. 347. Annual report on Personnel Security Investigations for 
           Industry and National Industrial Security Program.
Sec. 348. Five-year extension of annual report on training range 
           sustainment plan and training range inventory.
Sec. 349. Reports on withdrawal or diversion of equipment from reserve 
           units for support of reserve units being mobilized and other 
           units.

                        Subtitle F--Other Matters

Sec. 351. Department of Defense strategic policy on prepositioning of 
           materiel and equipment.
Sec. 352. Authority to make Department of Defense horses available for 
           adoption.
Sec. 353. Sale and use of proceeds of recyclable munitions materials.
Sec. 354. Recovery and transfer to Corporation for the Promotion of 
           Rifle Practice and Firearms Safety of certain firearms, 
           ammunition, and parts granted to foreign countries.
Sec. 355. Extension of Department of Defense telecommunications benefit 
           program.
Sec. 356. Extension of availability of funds for commemoration of 
           success of the Armed Forces in Operation Enduring Freedom and 
           Operation Iraqi Freedom.
Sec. 357. Capital security cost sharing.
Sec. 358. Utilization of fuel cells as back-up power systems in 
           Department of Defense operations.
Sec. 359. Improving Department of Defense support for civil authorities.
Sec. 360. Energy efficiency in weapons platforms.
Sec. 361. Prioritization of funds within Navy mission operations, ship 
           maintenance, combat support forces, and weapons system 
           support.
Sec. 362. Provision of adequate storage space to secure personal 
           property outside of assigned military family housing unit.
Sec. 363. Expansion of payment of replacement value of personal property 
           damaged during transport at Government expense.

               Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
for the use of the Armed Forces and other activities and

[[Page 120 STAT. 2136]]

agencies of the Department of Defense for expenses, not otherwise 
provided for, for operation and maintenance, in amounts as follows:
            (1) For the Army, $24,416,352,000.
            (2) For the Navy, $31,157,639,000.
            (3) For the Marine Corps, $3,863,462,000.
            (4) For the Air Force, $31,081,257,000.
            (5) For Defense-wide activities, $20,093,876,000.
            (6) For the Army Reserve, $2,260,802,000.
            (7) For the Naval Reserve, $1,275,764,000.
            (8) For the Marine Corps Reserve, $211,311,000.
            (9) For the Air Force Reserve, $2,698,400,000.
            (10) For the Army National Guard, $4,776,421,000.
            (11) For the Air National Guard, $5,292,517,000.
            (12) For the United States Court of Appeals for the Armed 
        Forces, $11,721,000.
            (13) For Environmental Restoration, Army, $413,794,000.
            (14) For Environmental Restoration, Navy, $304,409,000.
            (15) For Environmental Restoration, Air Force, $423,871,000.
            (16) For Environmental Restoration, Defense-wide, 
        $18,431,000.
            (17) For Environmental Restoration, Formerly Used Defense 
        Sites, $282,790,000.
            (18) For Former Soviet Union Threat Reduction programs, 
        $372,128,000.
            (19) For Overseas Humanitarian Disaster and Civic Aid, 
        $63,204,000.
SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
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 Working Capital Funds, $161,998,000.
            (2) For the National Defense Sealift Fund, $1,071,932,000.
            (3) For the Defense Working Capital Fund, Defense 
        Commissary, $1,184,000,000.
            (4) For the Pentagon Reservation Maintenance Revolving Fund, 
        $18,500,000.
SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS.

    (a) Defense Health Program.--Funds are hereby authorized to be 
appropriated for the Department of Defense for fiscal year 2007 for 
expenses, not otherwise provided for, for the Defense Health Program, 
$21,426,621,000, of which--
            (1) $20,894,663,000 is for Operation and Maintenance;
            (2) $135,603,000 is for Research, Development, Test, and 
        Evaluation; and
            (3) $396,355,000 is for Procurement.

    (b) Chemical Agents and Munitions Destruction, Defense.--(1) Funds 
are hereby authorized to be appropriated for the Department of Defense 
for fiscal year 2007 for expenses, not otherwise provided for, for 
Chemical Agents and Munitions Destruction, Defense, $1,277,304,000, of 
which--
                    (A) $1,046,290,000 is for Operation and Maintenance; 
                and
                    (B) $231,014,000 is for Research, Development, Test, 
                and Evaluation.

[[Page 120 STAT. 2137]]

    (2) Amounts authorized to be appropriated under paragraph (1) are 
authorized for--
            (A) the destruction of lethal chemical agents and munitions 
        in accordance with section 1412 of the Department of Defense 
        Authorization Act for Fiscal Year 1986 (50 U.S.C. 1521); and
            (B) the destruction of chemical warfare materiel of the 
        United States that is not covered by section 1412 of such Act.

    (c) Drug Interdiction and Counter-Drug Activities, Defense-Wide.--
Funds are hereby authorized to be appropriated for the Department of 
Defense for fiscal year 2006 for expenses, not otherwise provided for, 
for Drug Interdiction and Counter-Drug Activities, Defense-wide, 
$926,890,000.
    (d) Defense Inspector General.--Funds are hereby authorized to be 
appropriated for the Department of Defense for fiscal year 2006 for 
expenses, not otherwise provided for, for the Office of the Inspector 
General of the Department of Defense, $216,297,000, of which--
            (1) $214,897,000 is for Operation and Maintenance; and
            (2) $1,400,000 is for Procurement.

                  Subtitle B--Environmental Provisions

SEC. 311. REVISION OF REQUIREMENT FOR UNEXPLODED ORDNANCE PROGRAM 
                        MANAGER.

    Section 2701(k) of title 10, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking ``establish'' and inserting 
                ``designate''; and
                    (B) by inserting ``research,'' after 
                ``characterization,'';
            (2) by striking paragraph (2) and redesignating paragraph 
        (3) as paragraph (4); and
            (3) by inserting after paragraph (1) the following new 
        paragraphs:

    ``(2) The position of program manager shall be filled by--
            ``(A) an employee in a position that is equivalent to pay 
        grade O-6 or above; or
            ``(B) a member of the armed forces who is serving in the 
        grade of colonel or, in the case of the Navy, captain, or in a 
        higher grade.

    ``(3) The program manager shall report to the Deputy Under Secretary 
of Defense for Installations and Environment.''.
SEC. 312. FUNDING OF COOPERATIVE AGREEMENTS UNDER ENVIRONMENTAL 
                        RESTORATION PROGRAM.

    Section 2701(d)(2) of title 10, United States Code, is amended by 
adding at the end the following new sentence: ``This two-year limitation 
does not apply to an agreement funded using amounts in the Department of 
Defense Base Closure Account 1990 or the Department of Defense Base 
Closure Account 2005 established under sections 2906 and 2906A 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).''.

[[Page 120 STAT. 2138]]

SEC. 313. <<NOTE: Deadlines. 10 USC 2710 note.>> RESPONSE PLAN FOR 
                        REMEDIATION OF UNEXPLODED ORDNANCE, 
                        DISCARDED MILITARY MUNITIONS, AND 
                        MUNITIONS CONSTITUENTS.

    (a) Performance Goals for Remediation.--The Secretary of Defense 
shall set the following remediation goals with regard to unexploded 
ordnance, discarded military munitions, and munitions constituents:
            (1) To complete, by not later than September 30, 2007, 
        preliminary assessments of unexploded ordnance, discarded 
        military munitions, and munitions constituents at all active 
        installations and formerly used defense sites (other than 
        operational ranges).
            (2) To complete, by not later than September 30, 2010, site 
        inspections of unexploded ordnance, discarded military 
        munitions, and munitions constituents at all active 
        installations and formerly used defense sites (other than 
        operational ranges).
            (3) To achieve, by not later than September 30, 2009, a 
        remedy in place or response complete for unexploded ordnance, 
        discarded military munitions, and munitions constituents at all 
        military installations closed or realigned as part of a round of 
        defense base closure and realignment occurring prior to the 2005 
        round.
            (4) To achieve, by a date certain established by the 
        Secretary of Defense, a remedy in place or response complete for 
        unexploded ordnance, discarded military munitions, and munitions 
        constituents at all active installations and formerly used 
        defense sites (other than operational ranges) and all military 
        installations realigned or closed under the 2005 round of 
        defense base closure and realignment.

    (b) Response Plan Required.--
            (1) In general.--Not later than March 1, 2007, the Secretary 
        of Defense shall submit to the congressional defense committees 
        a comprehensive plan for addressing the remediation of 
        unexploded ordnance, discarded military munitions, and munitions 
        constituents at current and former defense sites (other than 
        operational ranges).
            (2) Content.--The plan required by paragraph (1) shall 
        include--
                    (A) a schedule, including interim goals, for 
                achieving the goals described in paragraphs (1) through 
                (3) of subsection (a), based upon the Munitions Response 
                Site Prioritization Protocol established by the 
                Department of Defense;
                    (B) such interim goals as the Secretary determines 
                feasible for efficiently achieving the goal required 
                under paragraph (4) of such subsection; and
                    (C) an estimate of the funding required to achieve 
                the goals established pursuant to such subsection and 
                the interim goals established pursuant to subparagraphs 
                (A) and (B).
            (3) Updates.--Not later than March 15 of 2008, 2009, and 
        2010, the Secretary shall submit to the congressional defense 
        committees an update of the plan required under paragraph (1). 
        The Secretary may include the update in the report on 
        environmental restoration activities that is submitted to 
        Congress under section 2706(a) of title 10, United States Code, 
        in the year in which that update is required and may include

[[Page 120 STAT. 2139]]

        in the update any adjustment to the remediation goals 
        established under subsection (a) that the Secretary determines 
        necessary to respond to unforeseen circumstances.

    (c) Report on Reuse Standards and Principles.--Not later than March 
1, 2007, the Secretary of Defense shall submit to the congressional 
defense committees a report on the status of the efforts of the 
Department of Defense to achieve agreement with relevant regulatory 
agencies on appropriate reuse standards or principles, including--
            (1) a description of any standards or principles that have 
        been agreed upon; and
            (2) a discussion of any issues that remain in disagreement, 
        including the impact that any such disagreement is likely to 
        have on the ability of the Department of Defense to carry out 
        the response plan required by subsection (b).

    (d) Definitions.--In this section:
            (1) The terms ``unexploded ordnance'' and ``operational 
        range'' have the meanings given such terms in section 101(e) of 
        title 10, United States Code.
            (2) The terms ``discarded military munitions'', ``munitions 
        constituents'', and ``defense site'' have the meanings given 
        such terms in section 2710(e) of such title.

    (e) Conforming Repeal.--Section 313 of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 
1051; 10 U.S.C. 2706 note) is repealed.
SEC. 314. <<NOTE: 10 USC 2710 note.>> RESEARCH ON EFFECTS OF OCEAN 
                        DISPOSAL OF MUNITIONS.

    (a) Identification of Disposal Sites.--
            (1) Historical review.--The Secretary of Defense shall 
        conduct a historical review of available records to determine 
        the number, size, and probable locations of sites where the 
        Armed Forces disposed of military munitions in coastal waters. 
        The historical review shall, to the extent possible, identify 
        the types of munitions at individual sites.
            (2) Cooperation.--The Secretary shall request the assistance 
        of the Coast Guard, the National Oceanic and Atmospheric 
        Administration, and other relevant Federal agencies in 
        conducting the review required by this subsection.
            (3) Interim reports.--The Secretary shall periodically, but 
        no less often than annually, release any new information 
        obtained during the historical review conducted under paragraph 
        (1). The Secretary may withhold from public release the exact 
        nature and locations of munitions the potential unauthorized 
        retrieval of which could pose a significant threat to the 
        national defense or public safety.
            (4) Inclusion of information in annual report on 
        environmental restoration activities.--The Secretary shall 
        include the information obtained pursuant to the review 
        conducted under paragraph (1) in the annual report on 
        environmental restoration activities submitted to Congress under 
        section 2706 of title 10, United States Code.
            (5) Final report.--The Secretary shall complete the 
        historical review required under paragraph (1) and submit a 
        final report on the findings of such review in the annual report 
        on environmental restoration activities submitted to Congress 
        for fiscal year 2009.

    (b) Identification of Navigational and Safety Hazards.--

[[Page 120 STAT. 2140]]

            (1) Identification of hazards.--The Secretary of Defense 
        shall provide available information to the Secretary of Commerce 
        to assist the National Oceanic and Atmospheric Administration in 
        preparing nautical charts and other navigational materials for 
        coastal waters that identify known or potential hazards posed by 
        disposed military munitions to private activities, including 
        commercial shipping and fishing operations.
            (2) Continuation of information activities.--The Secretary 
        of Defense shall continue activities to inform potentially 
        affected users of the ocean environment, particularly fishing 
        operations, of the possible hazards from contact with disposed 
        military munitions and the proper methods to mitigate such 
        hazards.

    (c) Research.--
            (1) In general.--The Secretary of Defense shall continue to 
        conduct research on the effects on the ocean environment and 
        those who use it of military munitions disposed of in coastal 
        waters.
            (2) Scope.--Research under paragraph (1) shall include--
                    (A) the sampling and analysis of ocean waters and 
                sea beds at or adjacent to military munitions disposal 
                sites selected pursuant to paragraph (3) to determine 
                whether the disposed military munitions have caused or 
                are causing contamination of such waters or sea beds;
                    (B) investigation into the long-term effects of 
                seawater exposure on disposed military munitions, 
                particularly effects on chemical munitions;
                    (C) investigation into the impacts any such 
                contamination may have on the ocean environment and 
                those who use it, including public health risks;
                    (D) investigation into the feasibility of removing 
                or otherwise remediating the military munitions; and
                    (E) the development of effective safety measures for 
                dealing with such military munitions.
            (3) Research criteria.--In conducting the research required 
        by this subsection, the Secretary shall ensure that the 
        sampling, analysis, and investigations are conducted at 
        representative sites, taking into account factors such as depth, 
        water temperature, nature of the military munitions present, and 
        relative proximity to onshore populations. In conducting such 
        research, the Secretary shall select at least two representative 
        sites each in the areas of the Atlantic coast, the Pacific coast 
        (including Alaska), and the Hawaiian Islands.
            (4) Authority to make grants and enter into cooperative 
        agreements.--In conducting research under this subsection, the 
        Secretary may make grants to, and enter into cooperative 
        agreements with, qualified research entities.

    (d) <<NOTE: Reports.>> Monitoring.--If the historical review 
required by subsection (a) or the research required by subsection (c) 
indicates that contamination is being released into the ocean waters 
from disposed military munitions at a particular site or that the site 
poses a significant public health or safety risk, the Secretary of 
Defense shall institute appropriate monitoring mechanisms at that site 
and report to the congressional defense committees on any additional 
measures that may be necessary to address the release or risk, as 
applicable.

    (e) Definitions.--In this section:

[[Page 120 STAT. 2141]]

            (1) The term ``coastal waters'' means that part of the ocean 
        extending from the coast line of the United States to the outer 
        boundary of the outer Continental Shelf.
            (2) The term ``coast line'' has the meaning given that term 
        in section 2(c) of the Submerged Lands Act (43 U.S.C. 1301(c)).
            (3) The term ``military munitions'' has the meaning given 
        that term in section 101(e) of title 10, United States Code.
            (4) The term ``outer Continental Shelf'' has the meaning 
        given that term in section 2(a) of the Outer Continental Shelf 
        Lands Act (43 U.S.C. 1331(a)).
SEC. 315. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR 
                        CERTAIN COSTS IN CONNECTION WITH MOSES 
                        LAKE WELLFIELD SUPERFUND SITE, MOSES LAKE, 
                        WASHINGTON.

    (a) Authority To Reimburse.--
            (1) Transfer amount.--Using funds described in subsection 
        (b), the Secretary of Defense may transfer not more than 
        $111,114.03 to the Moses Lake Wellfield Superfund Site 10-6J 
        Special Account.
            (2) Purpose of reimbursement.--The payment under paragraph 
        (1) is to reimburse the Environmental Protection Agency for its 
        costs incurred in overseeing a remedial investigation/
        feasibility study performed by the Department of the Army under 
        the Defense Environmental Restoration Program at the former 
        Larson Air Force Base, Moses Lake Superfund Site, Moses Lake, 
        Washington.
            (3) Interagency agreement.--The reimbursement described in 
        paragraph (2) is provided for in the interagency agreement 
        entered into by the Department of the Army and the Environmental 
        Protection Agency for the Moses Lake Wellfield Superfund Site in 
        March 1999.

    (b) Source of Funds.--Any payment under subsection (a) shall be made 
using funds authorized to be appropriated by section 301(17) for 
operation and maintenance for Environmental Restoration, Formerly Used 
Defense Sites.
    (c) Use of Funds.--The Environmental Protection Agency shall use the 
amount transferred under subsection (a) to pay costs incurred by the 
Agency at the Moses Lake Wellfield Superfund Site.
SEC. 316. TRANSFER OF GOVERNMENT-FURNISHED URANIUM STORED AT 
                        SEQUOYAH FUELS CORPORATION, GORE, 
                        OKLAHOMA.

    (a) Transport and Disposal.--Subject to subsection (c), the 
Secretary of the Army shall transport to an authorized disposal facility 
for appropriate disposal all of the Government-furnished uranium in the 
chemical and physical form in which it is stored at the Sequoyah Fuels 
Corporation site in Gore, Oklahoma.
    (b) Source of Funds.--Funds authorized to be appropriated pursuant 
to section 301(1) for operation and maintenance for the Army may be used 
for the transport and disposal required under subsection (a).
    (c) Liability.--The Secretary may only transport uranium under 
subsection (a) after receiving from Sequoyah Fuels Corporation a written 
agreement satisfactory to the Secretary that provides that--

[[Page 120 STAT. 2142]]

            (1) the United States assumes no liability, legal or 
        otherwise, of Sequoyah Fuels Corporation by transporting the 
        uranium; and
            (2) the Sequoyah Fuels Corporation waives any and all claims 
        it may have against the United States related to the transported 
        uranium.

    (d) Completion of Transport.--The <<NOTE: Deadline.>> Secretary 
shall complete the transport of uranium under subsection (a) not later 
than March 31, 2007.
SEC. 317. EXTENSION OF AUTHORITY TO GRANT EXEMPTIONS TO CERTAIN 
                        REQUIREMENTS.

    (a) Amendment to Toxic Substances Control Act.--Section 6(e)(3) of 
the Toxic Substances Control Act (15 U.S.C. 2605(e)(3)) is amended--
            (1) in subparagraph (A), by striking ``subparagraphs (B) and 
        (C)'' and inserting ``subparagraphs (B), (C), and (D)'';
            (2) in subparagraph (B), by striking ``but not more than one 
        year from the date it is granted'' and inserting ``but not more 
        than 1 year from the date it is granted, except as provided in 
        subparagraph (D)''; and
            (3) by adding at the end the following new subparagraph:

    ``(D) The Administrator may extend an exemption granted pursuant to 
subparagraph (B) that has not yet expired for a period not to exceed 60 
days for the purpose of authorizing the Secretary of Defense and the 
Secretaries of the military departments to provide for the 
transportation into the customs territory of the United States of 
polychlorinated biphenyls generated by or under the control of the 
Department of Defense for purposes of their disposal, treatment, or 
storage in the customs territory of the United States if those 
polychlorinated biphenyls are already in transit from their storage 
locations but the Administrator determines, in the sole discretion of 
the Administrator, they would not otherwise arrive in the customs 
territory of the United States within the period of the original 
exemption. <<NOTE: Federal Register, publication.>> The Administrator 
shall promptly publish notice of such extension in the Federal 
Register.''.

    (b) <<NOTE: 15 USC 2605 note.>> Sunset Date.--The amendments made by 
subsection (a) shall cease to have effect on September 30, 2012. The 
termination of the authority to grant exemptions pursuant to such 
amendments shall not effect the validity of any exemption granted prior 
to such date.

    (c) Report.--Not later than March 1, 2011, the Secretary of Defense 
shall submit to the Committee on Armed Services and the Committee on 
Environment and Public Works of the Senate and the Committee on Armed 
Services and the Committee on Energy and Commerce of the House of 
Representatives a report on the status of foreign-manufactured 
polychlorinated biphenyls under the control of the Department of Defense 
outside the United States. The report shall address, at a minimum--
            (1) the remaining volume of such foreign-manufactured 
        polychlorinated biphenyls that may require transportation into 
        the customs territory of the United States for disposal, 
        treatment, or storage; and
            (2) the efforts that have been made by the Department of 
        Defense and other Federal agencies to reduce such volume by--

[[Page 120 STAT. 2143]]

                    (A) reducing the volume of foreign-manufactured 
                polychlorinated biphenyls under the control of the 
                Department of Defense outside the United States; or
                    (B) developing alternative options for the disposal, 
                treatment, or storage of such foreign-manufactured 
                polychlorinated biphenyls.
SEC. 318. NATIONAL ACADEMY OF SCIENCES STUDY ON HUMAN EXPOSURE TO 
                        CONTAMINATED DRINKING WATER AT CAMP 
                        LEJEUNE, NORTH CAROLINA.

    (a) Study Required.--
            (1) In general.--Not <<NOTE: Deadline. Contracts.>> later 
        than 60 days after the date of the enactment of this Act, the 
        Secretary of the Navy shall enter into an agreement with the 
        National Academy of Sciences to conduct a comprehensive review 
        and evaluation of the available scientific and medical evidence 
        regarding associations between pre-natal, child, and adult 
        exposure to drinking water contaminated with trichloroethylene 
        (TCE) and tetrachloroethylene (PCE) at Camp Lejeune, North 
        Carolina, as well as other pre-natal, child, and adult exposures 
        to levels of trichloroethylene and tetrachloroethylene similar 
        to those experienced at Camp Lejeune, and birth defects or 
        diseases and any other adverse health effects.
            (2) Elements.--In conducting the review and evaluation, the 
        Academy shall review and summarize the scientific and medical 
        evidence and assess the strength of that evidence in 
        establishing a link or association between exposure to 
        trichloroethylene and tetrachloroethylene and each birth defect 
        or disease suspected to be associated with such exposure. For 
        each birth defect or disease reviewed, the Academy shall 
        determine, to the extent practicable with available scientific 
        and medical data, whether--
                    (A) a statistical association with such contaminant 
                exposures exists; and
                    (B) there exist plausible biological mechanisms or 
                other evidence of a causal relationship between 
                contaminant exposures and the birth defect or disease.
            (3) Scope of review.--In conducting the review and 
        evaluation, the Academy shall include a review and evaluation 
        of--
                    (A) the toxicologic and epidemiologic literature on 
                adverse health effects of trichloroethylene and 
                tetrachloroethylene, including epidemiologic and risk 
                assessment reports from government agencies;
                    (B) recent literature reviews by the National 
                Research Council, Institute of Medicine, and other 
                groups;
                    (C) the completed and on-going Agency for Toxic 
                Substances Disease Registry (ATSDR) studies on potential 
                trichloroethylene and tetrachloroethylene exposure at 
                Camp Lejeune; and
                    (D) published meta-analyses.
            (4) Peer review.--The Academy shall obtain the peer review 
        of the report prepared as a result of the review and evaluation 
        under applicable Academy procedures.
            (5) <<NOTE: Reports. Deadline.>> Submittal.--The Academy 
        shall submit the report prepared as a result of the review and 
        evaluation to the Secretary and Congress not later than 18 
        months after entering into 


[[Page 120 STAT. 2144]]

        the agreement for the review and evaluation under paragraph (1).

    (b) Notice on Exposure.--
            (1) Notice required.--Upon completion of the current 
        epidemiological study by the Agency for Toxic Substances Disease 
        Registry, known as the Exposure to Volatile Organic Compounds in 
        Drinking Water and Specific Birth Defects and Childhood Cancers, 
        United States Marine Corps Base Camp Lejeune, North Carolina, 
        the Commandant of the Marine Corps shall take appropriate 
        actions, including the use of national media such as newspapers, 
        television, and the Internet, to notify former Camp Lejeune 
        residents and employees who may have been exposed to drinking 
        water impacted by trichloroethylene and tetrachloroethylene of 
        the results of the study.
            (2) Elements.--The information provided by the Commandant of 
        the Marine Corps under paragraph (1) shall be prepared in 
        conjunction with the Agency for Toxic Substances Disease 
        Registry and shall include a description of sources of 
        additional information relating to such exposure, including, but 
        not be limited to, the following:
                    (A) A description of the events resulting in 
                exposure to contaminated drinking water at Camp Lejeune.
                    (B) A description of the duration and extent of the 
                contamination of drinking water at Camp Lejeune.
                    (C) The known and suspected health effects of 
                exposure to the drinking water impacted by 
                trichloroethylene and tetrachloroethylene at Camp 
                Lejeune.

     Subtitle C--Program Requirements, Restrictions, and Limitations

SEC. 321. <<NOTE: 10 USC 2222 note.>> LIMITATION ON FINANCIAL 
                        MANAGEMENT IMPROVEMENT AND AUDIT 
                        INITIATIVES WITHIN THE DEPARTMENT OF 
                        DEFENSE.

    (a) Limitation.--The Secretary of Defense may not obligate or expend 
any funds for the purpose of any financial management improvement 
activity relating to the preparation, processing, or auditing of 
financial statements until the Secretary submits to the congressional 
defense committees a written determination that each activity proposed 
to be funded is--
            (1) consistent with the financial management improvement 
        plan of the Department of Defense required by section 376(a)(1) 
        of the National Defense Authorization Act for Fiscal Year 2006 
        (Public Law 190-163; 119 Stat. 3213); and
            (2) likely to improve internal controls or otherwise result 
        in sustained improvements in the ability of the Department to 
        produce timely, reliable, and complete financial management 
        information.

    (b) Exception.--The limitation in subsection (a) shall not apply to 
an activity directed exclusively at assessing the adequacy of internal 
controls and remediating any inadequacy identified pursuant to such 
assessment.

[[Page 120 STAT. 2145]]

SEC. 322. FUNDS FOR EXHIBITS FOR THE NATIONAL MUSEUMS OF THE ARMED 
                        FORCES.

    (a) National Museum of the United States Army.--Of the amounts 
authorized to be appropriated by section 301(1) for operation and 
maintenance for the Army, not less than $3,000,000 may be available to 
the Secretary of the Army for the acquisition, installation, and 
maintenance of exhibits at the facility designated by the Secretary as 
the National Museum of the United States Army. The Secretary may enter 
into a contract with the Army Historical Foundation for the purpose of 
performing such acquisition, installation, and maintenance.
    (b) National Museum of the United States Navy.--Of the amounts 
authorized to be appropriated by section 301(2) for operation and 
maintenance for the Navy, not less than $3,000,000 may be available to 
the Secretary of the Navy for the acquisition, installation, and 
maintenance of exhibits at the facility designated by the Secretary as 
the National Museum of the United States Navy. The Secretary may enter 
into a contract with the Naval Historical Foundation for the purpose of 
performing such acquisition, installation, and maintenance.
    (c) National Museum of the Marine Corps and Heritage Center.--Of the 
amounts authorized to be appropriated by section 301(3) for operation 
and maintenance for the Marine Corps, not less than $3,000,000 may be 
available to the Secretary of the Navy for the acquisition, 
installation, and maintenance of exhibits at the National Museum of the 
Marine Corps and Heritage Center. The Secretary may enter into a 
contract with the United States Marine Corps Heritage Foundation for the 
purpose of performing such acquisition, installation, and maintenance.
    (d) National Museum of the United States Air Force.--Of the amounts 
authorized to be appropriated by section 301(4) for operation and 
maintenance for the Air Force, not less than $3,000,000 may be available 
to the Secretary of the Air Force for the acquisition, installation, and 
maintenance of exhibits at the facility designated by the Secretary as 
the National Museum of the United States Air Force. The Secretary may 
enter into a contract with the Air Force Museum Foundation for the 
purpose of performing such acquisition, installation, and maintenance.
    (e) Reimbursement.--
            (1) Authority to accept reimbursement.--After September 30, 
        2006, the Secretary of a military department may accept funds 
        from any non-profit entity authorized to support the national 
        museum of the applicable Armed Force to reimburse the Secretary 
        for amounts obligated and expended by the Secretary from amounts 
        made available to the Secretary under this section.
            (2) Treatment.--Amounts accepted as reimbursement under 
        paragraph (1) shall be credited to the account that was used to 
        cover the costs for which the reimbursement was provided. 
        Amounts so credited shall be merged with amounts in that 
        account, and shall be available for the same purposes, and 
        subject to the same conditions and limitations, as other amounts 
        in that account.

[[Page 120 STAT. 2146]]

SEC. 323. <<NOTE: 10 USC 229 note.>> PRIORITIZATION OF FUNDS FOR 
                        EQUIPMENT READINESS AND STRATEGIC 
                        CAPABILITY.

    (a) Prioritization of Funds.--The Secretary of Defense shall take 
such steps as may be necessary through the planning, programming, 
budgeting, and execution systems of the Department of Defense to ensure 
that financial resources are provided for each fiscal year as necessary 
to enable--
            (1) the Secretary of each military department to meet the 
        requirements of that military department for that fiscal year 
        for the repair, recapitalization, and replacement of equipment 
        used in the global war on terrorism; and
            (2) the Secretary of the Army to meet the requirements of 
        the Army for that fiscal year, in addition to the requirements 
        under paragraph (1), for--
                    (A) the fulfillment of the equipment requirements of 
                units transforming to modularity in accordance with the 
                Modular Force Initiative report submitted to Congress in 
                March 2006; and
                    (B) the reconstitution of equipment and materiel in 
                prepositioned stocks in accordance with requirements 
                under the Army Prepositioned Stocks Strategy 2012 or a 
                subsequent strategy implemented under the guidelines in 
                section 2229 of title 10, United States Code.

    (b) Submission of Budget Information.--
            (1) Submission of information.--As part of the budget 
        justification materials submitted to Congress in support of the 
        President's budget for a fiscal year or a request for 
        supplemental appropriations, the Secretary of Defense shall 
        include the following:
                    (A) The information described in paragraph (2) for 
                the fiscal year for which the budget justification 
                materials are submitted, the fiscal year during which 
                the materials are submitted, and the preceding fiscal 
                year.
                    (B) The information described in paragraph (2) for 
                each of the fiscal years covered by the future-years 
                defense program for the fiscal year in which the report 
                is submitted based on estimates of any amounts required 
                to meet each of the requirements under subsection (a) 
                that are not met for that fiscal year and are deferred 
                to the future-years defense program.
                    (C) A consolidated budget justification summary of 
                the information submitted under subparagraphs (A) and 
                (B).
            (2) Information described.--The information described in 
        this paragraph is information that clearly and separately 
        identifies, by appropriations account, budget activity, activity 
        group, sub-activity group, and program element or line item, the 
        amounts requested for the programs, projects, and activities 
        of--
                    (A) each of the military departments for the repair, 
                recapitalization, or replacement of equipment used in 
                the global war on terrorism; and
                    (B) the Army for--
                          (i) the fulfillment of the equipment 
                      requirements of units transforming to modularity; 
                      and
                          (ii) the reconstitution of equipment and 
                      materiel in prepositioned stocks.

[[Page 120 STAT. 2147]]

            (3) Additional information in first report.--As part of the 
        budget justification materials submitted to Congress in support 
        of the President's budget for fiscal year 2008, the Secretary of 
        Defense shall also include the information described in 
        paragraph (2) for fiscal years 2003, 2004, and 2005.

    (c) Annual Report on Army Progress.--On the date on which the 
President submits to Congress the budget for a fiscal year under section 
1105 of title 31, United States Code, the Secretary of the Army shall 
submit to the congressional defense committees a report setting forth 
the progress of the Army in meeting the requirements of subsection (a). 
Any information required to be included in the report concerning funding 
priorities under paragraph (1) or (2) of subsection (a) shall be 
itemized by active duty component and reserve component. Each such 
report shall include the following:
            (1) A complete itemization of the requirements for the 
        funding priorities in subsection (a), including an itemization 
        for all types of modular brigades and an itemization for the 
        replacement of equipment withdrawn or diverted from the reserve 
        component for use in the global war on terrorism.
            (2) A list of any shortfalls that exist between available 
        funding, equipment, supplies, and industrial capacity and 
        required funding, equipment, supplies, and industrial capacity 
        in accordance with the funding priorities in subsection (a).
            (3) A list of the requirements for the funding priorities in 
        subsection (a) that the Army has included in the budget for that 
        fiscal year, including a detailed listing of the type, quantity, 
        and cost of the equipment the Army plans to repair, 
        recapitalize, or procure, set forth by appropriations account 
        and Army component.
            (4) An assessment of the progress made during that fiscal 
        year toward meeting the overall requirements of the funding 
        priorities in subsection (a).
            (5) A schedule for meeting the requirements of subsection 
        (a).
            (6) A description of how the Army defines costs associated 
        with modularity versus the costs associated with modernizing 
        equipment platforms and the reset (repair, recapitalization, or 
        replacement) of equipment used during the global war on 
        terrorism, including the funding expended on, and the future 
        funding required for, such reset requirements.
            (7) A complete itemization of the amount of funds expended 
        to date on the modular brigades.
            (8) The results of Army assessments of modular force 
        capabilities, including lessons learned from existing modular 
        units and any modifications that have been made to modularity.
            (9) The comments of the Chief of the National Guard Bureau 
        and the Chief of the Army Reserve on each of the items described 
        in paragraphs (1) through (8).

    (d) Annual Comptroller General Report on Army Progress.--Not later 
than 45 days after the date on which the President submits to Congress 
the budget for a fiscal year under section 1105 of title 31, United 
States Code, the Comptroller General shall submit to the congressional 
defense committees a report containing the assessment of the Comptroller 
General on the following:

[[Page 120 STAT. 2148]]

            (1) The progress of the Army in meeting the requirements of 
        subsection (a), including progress in equipping and manning 
        modular units in the regular components and reserve components 
        of the Armed Forces.
            (2) The use of funds by the Army for meeting the 
        requirements of subsection (a).
            (3) The progress of the Army in conducting further testing 
        and evaluations of designs under the modularity initiative.

    (e) Termination of Report Requirements.--The requirement for the 
submission of a report under subsection (c) or (d) shall terminate on 
the date of the submission of the report required to be submitted under 
that subsection to accompany or follow the President's budget submission 
for fiscal year 2012.
SEC. 324. LIMITATION ON DEPLOYMENT OF MARINE CORPS TOTAL FORCE 
                        SYSTEM TO NAVY.

    (a) Limitation.--The Secretary of the Navy may not deploy the Marine 
Corps Total Force System (MCTFS) (or any derivative system of the MCTFS) 
to the Navy until the date on which the congressional defense committees 
and the Secretary of the Navy receive the written determination of the 
Chairman of the Defense Business Systems Management Committee submitted 
under subsection (d) that the deployment of the MCTFS to the Navy is in 
the best interests of the Department of Defense.
    (b) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of the Navy shall submit to the 
congressional defense committees and the Comptroller General a report on 
the Marine Corps Total Force System (MCTFS). The report shall include 
the following:
            (1) An analysis of alternatives to the MCTFS, including a 
        detailed comparison between the cost of deploying and operating 
        the MCTFS within the Navy and the cost of including the Navy in 
        the Defense Integrated Military Human Resources System.
            (2) A business case analysis, including an analysis of the 
        costs and benefits to both the Department of the Navy and the 
        Department of Defense of the alternatives to the MCTFS 
        considered under the analysis required by paragraph (1).
            (3) An analysis of the compatibility of the MCTFS with the 
        enterprise architecture of the Department of Defense, including 
        a detailed estimate of all interface costs with current or 
        planned Department-wide military manpower, personnel, and pay 
        information technology systems.

    (c) Comptroller General Assessment.--Not <<NOTE: Deadline.>> later 
than 90 days after the date on which the Comptroller General receives 
the report submitted under subsection (b), the Comptroller General shall 
submit to the congressional defense committees and to the Chairman of 
the Defense Business Systems Management Committee a written assessment 
of the report.

    (d) Determination of Chairman of Defense Business Systems Management 
Committee.--Not <<NOTE: Deadline.>> sooner than 120 days after the date 
on which the Comptroller General receives the report submitted under 
subsection (b), the Chairman of the Defense Business Systems Management 
Committee shall review the analysis included in the report, together 
with any other relevant information available to the Chairman, and 
submit to the congressional defense committees and the Secretary of the 
Navy the written determination 


[[Page 120 STAT. 2149]]

of the Chairman of whether the deployment of the MCTFS to the Navy is in 
the best interests of the Department of Defense.

                 Subtitle D--Workplace and Depot Issues

SEC. 331. PERMANENT EXCLUSION OF CERTAIN CONTRACT EXPENDITURES 
                        FROM PERCENTAGE LIMITATION ON THE 
                        PERFORMANCE OF DEPOT-LEVEL MAINTENANCE.

    (a) Permanent Exclusion.--Section 2474(f) of title 10, United States 
Code, is amended--
            (1) by striking ``(1) Amounts'' and inserting ``Amounts'';
            (2) by striking ``entered into during fiscal years 2003 
        through 2009''; and
            (3) by striking paragraph (2).

    (b) Inclusion of Certain Items in Annual Report.--
            (1) Inclusion of certain items.--Paragraph (2) of section 
        2466(d) of such title is amended to read as follows:

    ``(2) Each report required under paragraph (1) shall include as a 
separate item any expenditure covered by section 2474(f) of this title 
that was made during the fiscal year covered by the report and shall 
specify the amount and nature of each such expenditure.''.
            (2) Conforming amendment.--The heading for subsection (d) of 
        section 2466 of such title is amended to read as follows: 
        ``Annual Report.--''.
SEC. 332. MINIMUM CAPITAL INVESTMENT FOR CERTAIN DEPOTS.

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

``Sec. 2476. Minimum capital investment for certain depots

    ``(a) Minimum Investment.--Each fiscal year, the Secretary of a 
military department shall invest in the capital budgets of the covered 
depots of that military department a total amount equal to not less than 
six percent of the average total combined workload funded at all the 
depots of that military department for the preceding three fiscal years.
    ``(b) Capital Budget.--For purposes of this section, the capital 
budget of a depot includes investment funds spent on depot 
infrastructure, equipment, and process improvement in direct support of 
depot operations.
    ``(c) Waiver.--The Secretary of Defense may waive the requirement 
under subsection (a) with respect to a military department for a fiscal 
year if the Secretary determines that the waiver is necessary for 
reasons of national security. <<NOTE: Notification.>> Whenever the 
Secretary makes such a waiver, the Secretary shall notify the 
congressional defense committees of the waiver and the reasons for the 
waiver.

    ``(d) Annual Report.--(1) Not later than 45 days after the date on 
which the President submits to Congress the budget for a fiscal year 
under section 1105 of title 31, the Secretary of Defense shall submit to 
the congressional defense committees a report containing budget 
justification documents summarizing the level of capital investment for 
each military department as of the end of the preceding fiscal year.
    ``(2) Each report submitted under paragraph (1) shall include the 
following:

[[Page 120 STAT. 2150]]

            ``(A) A specification of any statutory, regulatory, or 
        operational impediments to achieving the requirement under 
        subsection (a) with respect to each military department.
            ``(B) A description of the benchmarks for capital investment 
        established for each covered depot and military department and 
        the relationship of the benchmarks to applicable performance 
        measurement methods used in the private sector.
            ``(C) If the requirement under subsection (a) is not met for 
        a military department for the fiscal year covered by the report, 
        a statement of the reasons why the requirement was not met and a 
        plan of actions for meeting the requirement for the fiscal year 
        beginning in the year in which such report is submitted.

    ``(e) Covered Depot.--In this section, the term `covered depot' 
means any of the following:
            ``(1) With respect to the Department of the Army:
                    ``(A) Anniston Army Depot, Alabama.
                    ``(B) Letterkenny Army Depot, Pennsylvania.
                    ``(C) Tobyhanna Army Depot, Pennsylvania.
                    ``(D) Corpus Christi Army Depot, Texas.
                    ``(E) Red River Army Depot, Texas.
            ``(2) With respect to the Department of the Navy:
                    ``(A) Fleet Readiness Center East Site, Cherry 
                Point, North Carolina.
                    ``(B) Fleet Readiness Center Southwest Site, North 
                Island, California.
                    ``(C) Fleet Readiness Center Southeast Site, 
                Jacksonville, Florida.
                    ``(D) Portsmouth Naval Shipyard, Maine.
                    ``(E) Pearl Harbor Naval Shipyard, Hawaii.
                    ``(F) Puget Sound Naval Shipyard, Washington.
                    ``(G) Norfolk Naval Shipyard, Virginia.
                    ``(H) Marine Corps Logistics Base, Albany, Georgia.
                    ``(I) Marine Corps Logistics Base, Barstow, 
                California.
            ``(3) With respect to the Department of the Air Force:
                    ``(A) Warner-Robins Air Logistics Center, Georgia.
                    ``(B) Ogden Air Logistics Center, Utah.
                    ``(C) Oklahoma City Air Logistics Center, 
                Oklahoma.''.

    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2476. Minimum capital investment for certain depots.''.

    (c) <<NOTE: 10 USC 2476 note.>> Effective Date.--Section 2476 of 
title 10, United States Code, as added by subsection (a), shall take 
effect on October 1, 2006.

    (d) <<NOTE: 10 USC 2476 note.>> Two Year Phase-in for Departments of 
the Army and the Navy.--
            (1) Reduced percentage of required investment for fiscal 
        years 2007 and 2008.--The <<NOTE: Applicability.>> Secretary of 
        the Army shall apply subsection (a) of section 2476 of title 10, 
        United States Code, as added by subsection (a), to the covered 
        depots of the Army, and the Secretary of the Navy shall apply 
        such subsection to the covered depots of the Department of the 
        Navy--
                    (A) for fiscal year 2007, by substituting ``four 
                percent'' for ``six percent''; and

[[Page 120 STAT. 2151]]

                    (B) for fiscal year 2008, by substituting ``five 
                percent'' for ``six percent''.
            (2) Covered depots.--In this subsection, the term ``covered 
        depot'' has the meaning given that term in subsection (e) of 
        section 2476 of title 10, United States Code, as added by 
        subsection (a).
SEC. 333. EXTENSION OF TEMPORARY AUTHORITY FOR CONTRACTOR 
                        PERFORMANCE OF SECURITY GUARD FUNCTIONS.

    (a) Extension and Limitation on Total Number of Contractors.--
Section 332(c) of the Bob Stump National Defense Authorization Act for 
Fiscal Year 2003 (Public Law 107-314) is amended--
            (1) by striking ``September 30, 2007'' both places it 
        appears and inserting ``September 30, 2009'';
            (2) by redesignating subsection (d) as subsection (e); and
            (3) by inserting after subsection (c) the following new 
        subsection (d):

    ``(d) Limitation.--The total number of personnel employed to perform 
security guard functions under all contracts entered into pursuant to 
this section shall not exceed--
            ``(1) for fiscal year 2007, the total number of such 
        personnel employed under such contracts on October 1, 2006;
            ``(2) for fiscal year 2008, the number equal to 90 percent 
        of the total number of such personnel employed under such 
        contracts on October 1, 2006; and
            ``(3) for fiscal year 2009, the number equal to 80 percent 
        of the total number of such personnel employed under such 
        contracts on October 1, 2006.''.

    (b) Report on Contractor Performance of Security-Guard Functions.--
Not later than February 1, 2007, the Secretary of Defense shall submit 
to the Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives a report on contractor 
performance of security guard functions under section 332 of the Bob 
Stump National Defense Authorization Act for Fiscal Year 2003 (Public 
Law 107-314). The report shall include the following:
            (1) An explanation of progress made toward implementing each 
        of the seven recommendations in the Comptroller General report 
        entitled ``Contract Security Guards: Army's Guard Program 
        Requires Greater Oversight and Reassessment of Acquisition 
        Approach'' (GAO-06-284).
            (2) An assessment, taking into consideration the 
        observations made by the Comptroller General on the report of 
        the Department of Defense of November 2005 that is entitled 
        ``Department of Defense Installation Security Guard Requirement 
        Assessment and Plan'', of the following:
                    (A) The cost-effectiveness of using contractors 
                rather than Department of Defense employees to perform 
                security-guard functions.
                    (B) The performance of contractors employed as 
                security guards compared with the performance of 
                military personnel who have served as security guards.
                    (C) Specific results of on-site visits made by 
                officials designated by the Secretary of Defense to 
                military installations using contractors to perform 
                security-guard functions.

    (c) Contract Limitation.--No contract may be entered into under 
section 332 of the Bob Stump National Defense Authorization

[[Page 120 STAT. 2152]]

Act for Fiscal Year 2003 (Public Law 107-314) after September 30, 2007, 
until the report required under subsection (b) is submitted.

                           Subtitle E--Reports

SEC. 341. REPORT ON NAVY FLEET RESPONSE PLAN.

    (a) Report Required.--Not later than December 1, 2006, the Secretary 
of the Navy shall submit to the Committee on Armed Services of the 
Senate and the Committee on Armed Services of the House of 
Representatives a report on the program of the Navy referred to as the 
Fleet Response Plan. The report shall include the following:
            (1) A directive that provides guidance for the conduct of 
        the Plan and standardizes terms and definitions.
            (2) Performance measures for evaluation of the Plan.
            (3) Costs and resources needed to achieve objectives of the 
        Plan, including any incremental effect on the Navy Operation and 
        Maintenance budget.
            (4) Operational tests, exercises, war games, experiments, 
        and deployments used to test performance.
            (5) A collection and synthesis of lessons learned from the 
        implementation of the Plan as of the date on which the report is 
        submitted.
            (6) Evaluation of each of the following with respect to each 
        ship participating in the Plan:
                    (A) Combat readiness, including training 
                requirements.
                    (B) Ship material condition, including trending data 
                for mission degrading casualty reports rated as C3 or 
                C4.
                    (C) Professional development training requirements 
                accomplished during a deployment and at home station.
                    (D) Crew retention statistics.
            (7) Any proposed changes to the Surface Force Training 
        Manual.
            (8) The amount of funding required to effectively implement 
        the operation and maintenance requirements of the Plan by ship 
        class.
            (9) Any recommendations of the Secretary of the Navy with 
        respect to expanding the Plan to include Expeditionary Strike 
        Groups.

    (b) Comptroller General Report.--Not later than 120 days after the 
date on which the Secretary of the Navy submits the report required 
under subsection (a), the Comptroller General shall submit to the 
congressional defense committees a report containing a review of the 
report required under that subsection. The Comptroller General's report 
shall include the following:
            (1) An examination of the management approaches of the Navy 
        in implementing the Fleet Response Plan.
            (2) An assessment of the adequacy of Navy directives and 
        guidance with respect to maintenance and training requirements 
        and procedures.
            (3) An analysis and assessment of the adequacy of the Navy's 
        evaluation criteria for the Plan.
            (4) An evaluation of Navy data on aircraft carriers, 
        destroyers, and cruisers that participated in the Plan with 
        respect to readiness, response time, and availability for 
        routine or unforeseen deployments.

[[Page 120 STAT. 2153]]

            (5) An assessment of the Navy's progress in identifying the 
        amount of funding required to effectively implement the 
        operations and maintenance requirements of the Plan and the 
        effect of providing funding in an amount less than that amount.
            (6) Any recommendations of the Comptroller General with 
        respect to expanding the Plan to include Expeditionary Strike 
        Groups.

    (c) Postponement of Expansion.--The Secretary of the Navy may not 
expand the implementation of the Fleet Response Plan beyond the Carrier 
Strike Groups until the date that is six months after the date on which 
the Secretary of the Navy submits the report required under subsection 
(a).
SEC. 342. REPORT ON NAVY SURFACE SHIP ROTATIONAL CREW PROGRAMS.

    (a) Report Required.--Not later than April 1, 2007, the Secretary of 
the Navy shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of Representatives a 
report on the ship rotational crew experiment referred to in subsection 
(c)(1). The report shall include the following:
            (1) A comparison between the three destroyers participating 
        in that experiment and destroyers not participating in the 
        experiment that takes into consideration each of the following:
                    (A) Cost-effectiveness, including a comparison of 
                travel and per diem expenses, maintenance costs, and 
                other costs.
                    (B) Maintenance procedures, impacts, and 
                deficiencies, including the number and characterization 
                of maintenance deficiencies, the extent of voyage 
                repairs, post-deployment assessments of the material 
                condition of the ships, and the extent to which work 
                levels were maintained.
                    (C) Mission training requirements.
                    (D) Professional development requirements and 
                opportunities.
                    (E) Liberty port of call opportunities.
                    (F) Movement and transportation of crew.
                    (G) Inventory and property accountability.
                    (H) Policies and procedures for assigning billets 
                for rotating crews.
                    (I) Crew retention statistics.
                    (J) Readiness and mission capability data.
            (2) Results from surveys administered or focus groups held 
        to obtain representative views from commanding officers, 
        officers, and enlisted members on the effects of rotational crew 
        experiments on quality of life, training, professional 
        development, maintenance, mission effectiveness, and other 
        issues.
            (3) The extent to which standard policies and procedures 
        were developed and used for participating ships.
            (4) Lessons learned from the experiment.
            (5) An assessment from the combatant commanders on the crew 
        mission performance when deployed.
            (6) An assessment from the commander of the Fleet Forces 
        Command on the material condition, maintenance, and crew 
        training of each participating ship.

[[Page 120 STAT. 2154]]

            (7) Any recommendations of the Secretary of the Navy with 
        respect to the extension of the ship rotational crew experiment 
        or the implementation of the experiment for other surface 
        vessels.

    (b) Postponement of Implementation.--The Secretary of the Navy may 
not begin implementation of any new surface ship rotational crew 
experiment or program during the period beginning on the date of the 
enactment of this Act and ending on October 1, 2009.
    (c) Treatment of Existing Experiments.--
            (1) Destroyer experiment.--Not <<NOTE: Deadline.>> later 
        than January 1, 2007, the Secretary of the Navy shall terminate 
        the existing ship rotational crew experiment involving the 
        U.S.S. Gonzalez (DDG-66), the U.S.S. Stout (DDG-55), and the 
        U.S.S. Laboon (DDG-58) that is known as the ``sea swap''.
            (2) Patrol coastal class ship experiment.--The Secretary of 
        the Navy may continue the existing ship rotational crew program 
        that is currently in use by overseas-based Patrol Coastal class 
        ships.
            (3) Mine countermeasures ships.--The Secretary of the Navy 
        may continue the existing ship rotational crew program that is 
        currently in use by MCM and MHC ships.
            (4) Littoral combat ships.--The Secretary of the Navy may 
        employ a two crew for one ship (commonly referred to as Blue-
        Gold) rotational crew program for the first two ships of each 
        Littoral combat ship design (LCS 1-4).

    (d) Comptroller General Report.--Not later than July 15, 2007, the 
Comptroller General shall submit to the Committee on Armed Services of 
the Senate and the Committee on Armed Services of the House of 
Representatives a report on the ship rotational crew experiment referred 
to in subsection (c)(1). The report shall include the following:
            (1) A review of the report submitted by the Secretary of the 
        Navy under subsection (a) and an assessment of the extent to 
        which the Secretary fully addressed costs, quality of life, 
        training, maintenance, and mission effectiveness, and other 
        relevant issues in that report.
            (2) An assessment of the extent to which the Secretary 
        established and applied a comprehensive framework for assessing 
        the use of ship rotational crew experiments, including formal 
        objectives, metrics, and methodology for assessing the cost-
        effectiveness of such experiments.
            (3) An assessment of the extent to which the Secretary 
        established effective guidance for the use of ship rotational 
        crew experiments.
            (4) Lessons learned from recent ship rotational crew 
        experiments and an assessment of the extent to which the Navy 
        systematically collects and shares lessons learned.

    (e) Congressional Budget Office Report.--Not later than July 15, 
2007, the Director of the Congressional Budget Office shall submit to 
the Committee on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report on the long-term 
implications of the use of crew rotation on Navy ships on the degree of 
forward presence provided by Navy ships. The report shall include the 
following:

[[Page 120 STAT. 2155]]

            (1) An analysis of different approaches to crew rotation and 
        the degree of forward presence each approach would provide.
            (2) A comparison of the degree of forward presence provided 
        by the fleet under the long-term shipbuilding plan of the Navy 
        with and without the widespread use of crew rotation.
            (3) The long-term benefits and costs of using crew rotation 
        on Navy ships.
SEC. 343. REPORT ON ARMY LIVE-FIRE RANGES IN HAWAII.

    Not later than March 1, 2007, the Secretary of the Army shall submit 
to Congress a report on the adequacy of the live-fire ranges of the Army 
in the State of Hawaii with respect to current and future training 
requirements. The report shall include the following:
            (1) An evaluation of the capacity of the existing live-fire 
        ranges to meet the training requirements of the Army, including 
        the training requirements of Stryker Brigade Combat Teams.
            (2) A description of any existing plan to modify or expand 
        any range in Hawaii for the purpose of meeting anticipated live-
        fire training requirements.
            (3) A description of the current live-fire restrictions at 
        the Makua Valley range and the effect of these restrictions on 
        unit readiness.
            (4) Cost and schedule estimates for the construction of new 
        ranges or the modification of existing ranges that are necessary 
        to support future training requirements if existing restrictions 
        on training at the Makua Valley range remain in place.
SEC. 344. COMPTROLLER GENERAL REPORT ON JOINT STANDARDS AND 
                        PROTOCOLS FOR ACCESS CONTROL SYSTEMS AT 
                        DEPARTMENT OF DEFENSE INSTALLATIONS.

    (a) Report Required.--Not later than one year after the date of the 
enactment of this Act, the Comptroller General shall submit to the 
Committee on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report containing the 
assessment of the Comptroller General of--
            (1) the extent to which consistency exists in standards, 
        protocols, and procedures for access control across 
        installations of the Department of Defense; and
            (2) whether the establishment of joint standards and 
        protocols for access control at such installations would be 
        likely to--
                    (A) address any need of the Department identified by 
                the Comptroller General; or
                    (B) improve access control across such installations 
                by providing greater consistency and improved force 
                protection.

    (b) Issues to Be Assessed.--In conducting the assessment required by 
subsection (a), the Comptroller General shall assess the extent to which 
each installation of the Department of Defense has or would benefit from 
having an access control system with the ability to--
            (1) electronically check any identification card issued by 
        any Federal agency or any State or local government within the 
        United States, including any identification card of a visitor

[[Page 120 STAT. 2156]]

        to the installation who is a citizen or legal resident of the 
        United States;
            (2) verify that an identification card used to obtain access 
        to the installation was legitimately issued and has not been 
        reported lost or stolen;
            (3) check on a real-time basis all relevant watch lists 
        maintained by the Government, including terrorist watch lists 
        and lists of persons wanted by Federal, State, or local law 
        enforcement authorities;
            (4) maintain a log of individuals seeking access to the 
        installation and of individuals who are denied access to the 
        installation; and
            (5) exchange information with any installation with a system 
        that complies with the joint standards and protocols.
SEC. 345. COMPTROLLER GENERAL REPORT ON READINESS OF ARMY AND 
                        MARINE CORPS GROUND FORCES.

    (a) Report Required.--
            (1) In general.--Not later than June 1, 2007, the 
        Comptroller General shall submit to the Committee on Armed 
        Services of the Senate and the Committee on Armed Services of 
        the House of Representatives a report on the readiness of the 
        active component and reserve component ground forces of the Army 
        and the Marine Corps.
            (2) One or more reports.--In complying with the requirements 
        of this section, the Comptroller General may submit a single 
        report addressing all the elements specified in subsection (b) 
        or two or more reports addressing any combination of such 
        elements. If the Comptroller General submits more than one 
        report under this section, all such reports shall be submitted 
        not later than the date specified in paragraph (1).

    (b) Elements.--The elements specified in this subsection are the 
following:
            (1) An analysis of the current readiness status of each of 
        the active component and reserve component ground forces of the 
        Army and the Marine Corps, including a description of any major 
        deficiency identified, an analysis of the trends in readiness of 
        such forces during not less than the ten-year period preceding 
        the date on which the report is submitted, and a comparison of 
        the current readiness indicators of such ground forces with 
        historical patterns.
            (2) An assessment of the ability of the Army and the Marine 
        Corps to provide trained and ready forces for ongoing operations 
        as well as other commitments assigned to the Army and the Marine 
        Corps in defense planning documents.
            (3) An analysis of the availability of equipment for 
        training by units of the Army and the Marine Corps in the United 
        States in configurations comparable to the equipment being used 
        by units of the Army and the Marine Corps, as applicable, in 
        ongoing operations.
            (4) An analysis of the current and projected requirements 
        for repair or replacement of equipment of the Army and the 
        Marine Corps due to ongoing operations and the effect of such 
        required repair or replacement of equipment on the availability 
        of equipment for training.
            (5) An assessment of the current personnel tempo of Army and 
        Marine Corps forces, including--

[[Page 120 STAT. 2157]]

                    (A) a comparison of such tempos to historical 
                trends;
                    (B) an identification of particular occupational 
                specialties that are experiencing unusually high or low 
                deployment rates; and
                    (C) an analysis of retention rates in the 
                occupational specialties identified under subparagraph 
                (B).
            (6) An assessment of the efforts of the Army and the Marine 
        Corps to mitigate the impact of high operational tempos, 
        including cross-leveling of personnel and equipment or cross 
        training of personnel or units for new or additional mission 
        requirements.
            (7) A description of the current policy of the Army and the 
        Marine Corps with respect to the mobilization of reserve 
        component personnel, together with an analysis of the number of 
        reserve component personnel in each of the Army and the Marine 
        Corps that are projected to be available for deployment under 
        such policy.

    (c) Form of Report.--Any report submitted under subsection (a) shall 
be submitted in both classified and unclassified form.
SEC. 346. REPORT ON AIR FORCE SAFETY REQUIREMENTS FOR AIR FORCE 
                        FLIGHT TRAINING OPERATIONS AT PUEBLO 
                        MEMORIAL AIRPORT, COLORADO.

    (a) Report Required.--Not later than February 15, 2007, the 
Secretary of the Air Force shall submit to the congressional defense 
committees a report on Air Force safety requirements for Air Force 
flight training operations at Pueblo Memorial Airport, Colorado.
    (b) Elements.--The report required under subsection (a) shall 
include each of the following:
            (1) A description of the Air Force flying operations at 
        Pueblo Memorial Airport, including the Initial Flight Screening 
        program.
            (2) An assessment of the impact of Air Force operations at 
        Pueblo Memorial Airport on non-Air Force activities at the 
        airport.
            (3) A description of the requirements necessary at Pueblo 
        Memorial Airport to ensure safe Air Force flying operations, 
        including the continuous availability of fire protection, crash 
        rescue, and other emergency response capabilities.
            (4) An assessment of the necessity of providing for a 
        continuous fire-fighting capability at Pueblo Memorial Airport.
            (5) A description and analysis of any alternatives for Air 
        Force flying operations at Pueblo Memorial Airport, including 
        the cost and availability of any such alternatives.
            (6) A description of Air Force funding of fire-fighting and 
        crash rescue support at Pueblo Memorial Airport through the 
        services contract for the Initial Flight Screening program.
            (7) An assessment of whether Air Force funding is required 
        to assist the City of Pueblo, Colorado, in meeting Air Force 
        requirements for safe Air Force flight operations at Pueblo 
        Memorial Airport, and if such funding is required, the plan of 
        the Secretary of the Air Force to provide such funding to the 
        city.

[[Page 120 STAT. 2158]]

SEC. 347. ANNUAL REPORT ON PERSONNEL SECURITY INVESTIGATIONS FOR 
                        INDUSTRY AND NATIONAL INDUSTRIAL SECURITY 
                        PROGRAM.

    (a) <<NOTE: 10 USC 221 note.>> Annual Report Required.--The 
Secretary of Defense shall include in the budget justification documents 
submitted to Congress in support of the President's budget for the 
Department of Defense for each fiscal year, a report on the future 
requirements of the Department of Defense with respect to the Personnel 
Security Investigations for Industry and the National Industrial 
Security Program of the Defense Security Service.

    (b) Contents of Report.--Each report required to be submitted under 
subsection (a) shall include the following:
            (1) The funding requirements of the personnel security 
        clearance investigation program and ability of the Secretary of 
        Defense to fund the program.
            (2) The size of the personnel security clearance 
        investigation process backlog.
            (3) The length of the average delay for an individual case 
        pending in the personnel security clearance investigation 
        process.
            (4) Any progress made by the Secretary of Defense during the 
        12 months preceding the date on which the report is submitted 
        toward implementing planned changes in the personnel security 
        clearance investigation process.
            (5) <<NOTE: Certification.>> A determination certified by 
        the Secretary of Defense of whether the personnel security 
        clearance investigation process has improved during the 12 
        months preceding the date on which the report is submitted.

    (c) Comptroller General Report.--Not later than 180 days after the 
Secretary of Defense submits the first report required under subsection 
(a), the Comptroller General shall submit to Congress a report that 
contains a review of such report. The Comptroller General's report shall 
include the following:
            (1) The number of personnel security clearance 
        investigations conducted during the period beginning on October 
        1, 1999, and ending on September 30, 2006.
            (2) The number of each type of security clearance granted 
        during that period.
            (3) The unit cost to the Department of Defense of each 
        security clearance granted during that period.
            (4) The amount of any fee or surcharge paid to the Office of 
        Personnel Management as a result of conducting a personnel 
        security clearance investigation.
            (5) A description of the procedures used by the Secretary of 
        Defense to estimate the number of personnel security clearance 
        investigations to be conducted during a fiscal year.
            (6) A description of any plan developed by the Secretary of 
        Defense to reduce delays and backlogs in the personnel security 
        clearance investigation process.
            (7) A description of any plan developed by the Secretary of 
        Defense to adequately fund the personnel security clearance 
        investigation process.
            (8) A description of any plan developed by the Secretary of 
        Defense to establish a more stable and effective Personnel 
        Security Investigations Program.

[[Page 120 STAT. 2159]]

SEC. 348. FIVE-YEAR EXTENSION OF ANNUAL REPORT ON TRAINING RANGE 
                        SUSTAINMENT PLAN AND TRAINING RANGE 
                        INVENTORY.

    Section 366 of the Bob Stump National Defense Authorization Act for 
Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2522; 10 U.S.C. 113 
note) is amended--
            (1) in subsections (a)(5) and (c)(2), by striking ``fiscal 
        years 2005 through 2008'' and inserting ``fiscal years 2005 
        through 2013''; and
            (2) in subsection (d), by striking ``within 60 days of 
        receiving a report'' and inserting ``within 90 days of receiving 
        a report''.
SEC. 349. REPORTS ON WITHDRAWAL OR DIVERSION OF EQUIPMENT FROM 
                        RESERVE UNITS FOR SUPPORT OF RESERVE UNITS 
                        BEING MOBILIZED AND OTHER UNITS.

    (a) Report Required on Withdrawal or Diversion of Equipment.--Not 
later than 90 days after the date on which the Secretary concerned (as 
that term is defined in section 101(a)(9) of title 10, United States 
Code) withdraws or diverts equipment from any reserve component unit for 
the purpose of transferring such equipment to a reserve component unit 
that is ordered to active duty under section 12301, 12302, or 12304 of 
title 10, United States Code, or to an active component unit for the 
purpose of discharging the mission of the unit to which the equipment is 
diverted, the Secretary concerned shall submit to the Secretary of 
Defense a status report on such withdrawal or diversion of equipment.
    (b) Elements of Status Report.--Each status report under subsection 
(a) shall include the following:
            (1) A plan to repair, recapitalize, or replace the equipment 
        withdrawn or diverted within the unit from which it is being 
        withdrawn or diverted.
            (2) In the case of equipment that is to remain in a theater 
        of operations while the unit from which the equipment is 
        withdrawn or diverted leaves the theater of operations, a plan 
        to provide that unit with equipment appropriate to ensure the 
        continuation of the readiness training of the unit.
            (3) A signed memorandum of understanding between the active 
        or reserve component to which the equipment is diverted and the 
        reserve component from which the equipment is withdrawn or 
        diverted that specifies--
                    (A) how the equipment will be accounted for; and
                    (B) when the equipment will be returned to the 
                component from which it was withdrawn or diverted.

    (c) Reports to Congress.--Not later than 90 days after the date of 
the enactment of this Act and every 90 days thereafter, the Secretary of 
Defense shall submit to Congress all status reports submitted under 
subsection (a) during the 90-day period preceding the date on which the 
Secretary of Defense submits such reports.
    (d) Termination.--This section shall terminate on the date that is 
five years after the date of the enactment of this Act.

[[Page 120 STAT. 2160]]

                        Subtitle F--Other Matters

SEC. 351. DEPARTMENT OF DEFENSE STRATEGIC POLICY ON PREPOSITIONING 
                        OF MATERIEL AND EQUIPMENT.

    (a) Strategic Policy Required.--Chapter 131 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 2229. Strategic policy on prepositioning of materiel and 
                        equipment

    ``(a) Policy Required.--The Secretary of Defense shall maintain a 
strategic policy on the programs of the Department of Defense for the 
prepositioning of materiel and equipment. Such policy shall take into 
account national security threats, strategic mobility, service 
requirements, and the requirements of the combatant commands.
    ``(b) Limitation of Diversion of Prepositioned Materiel.--The 
Secretary of a military department may not divert materiel or equipment 
from prepositioned stocks except--
            ``(1) in accordance with a change made by the Secretary of 
        Defense to the policy maintained under subsection (a); or
            ``(2) for the purpose of directly supporting a contingency 
        operation or providing humanitarian assistance under chapter 20 
        of this title.

    ``(c) Congressional Notification.--The Secretary of Defense may not 
implement or change the policy required under subsection (a) until the 
Secretary submits to the congressional defense committees a report 
describing the policy or change to the policy.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2229. Strategic policy on prepositioning of materiel and equipment.''.

    (c) <<NOTE: 10 USC 2229 note.>> Deadline for Establishment of 
Policy.--
            (1) Deadline.--Not later than six months after the date of 
        the enactment of this Act, the Secretary of Defense shall 
        establish the strategic policy on the programs of the Department 
        of Defense for the prepositioning of materiel and equipment 
        required under section 2229 of title 10, United States Code, as 
        added by subsection (a).
            (2) Limitation on diversion of prepositioned materiel.--
        During the period beginning on the date of the enactment of this 
        Act and ending on the date on which the Secretary of Defense 
        submits the report required under section 2229(c) of title 10, 
        United States Code, on the policy referred to in paragraph (1), 
        the Secretary of a military department may not divert materiel 
        or equipment from prepositioned stocks except for the purpose of 
        directly supporting a contingency operation or providing 
        humanitarian assistance under chapter 20 of that title.
SEC. 352. AUTHORITY TO MAKE DEPARTMENT OF DEFENSE HORSES AVAILABLE 
                        FOR ADOPTION.

    (a) Inclusion of Department of Defense Horses in Existing 
Authority.--Section 2583 of title 10, United States Code, is amended--

[[Page 120 STAT. 2161]]

            (1) in the section heading, by striking ``working dogs'' and 
        inserting ``animals'';
            (2) by striking ``working'' each place it appears;
            (3) by striking ``dog'' and ``dogs'' each place they appear 
        and inserting ``animal'' and ``animals'', respectively;
            (4) by striking ``dog's'' in paragraphs (1) and (2) of 
        subsection (a) and inserting ``animal's'';
            (5) by striking ``a dog's adoptability'' in subsection (b) 
        and inserting ``the adoptability of the animal''; and
            (6) by adding at the end the following new subsection:

    ``(g) Military Animal Defined.--In this section, the term `military 
animal' means the following:
            ``(1) A military working dog.
            ``(2) A horse owned by the Department of Defense.''.

    (b) Clerical Amendment.--The item relating to such section in the 
table of sections at the beginning of chapter 153 of such title is 
amended to read as follows:

``2583. Military animals: transfer and adoption.''.

SEC. 353. SALE AND USE OF PROCEEDS OF RECYCLABLE MUNITIONS 
                        MATERIALS.

    (a) Establishment of Program.--Chapter 443 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 4690. Recyclable munitions materials: sale; use of proceeds

    ``(a) Authority for Program.--Notwithstanding section 2577 of this 
title, the Secretary of the Army may carry out a program to sell 
recyclable munitions materials resulting from the demilitarization of 
conventional military munitions without regard to chapter 5 of title 40 
and use any proceeds in accordance with subsection (c).
    ``(b) Method of Sale.--The Secretary shall use competitive 
procedures to sell recyclable munitions materials under this section in 
a manner consistent with Federal procurement laws and regulations.
    ``(c) Proceeds.--(1) Proceeds from the sale of recyclable munitions 
materials under this section shall be credited to an account that is 
specified as being for Army ammunition demilitarization from funds made 
available for the procurement of ammunition, to be available only for 
reclamation, recycling, and reuse of conventional military munitions 
(including research and development and equipment purchased for such 
purpose).
    ``(2) Amounts credited under this subsection shall be available for 
obligation for the fiscal year during which the funds are so credited 
and for three subsequent fiscal years.
    ``(d) Regulations.--The Secretary shall prescribe regulations to 
carry out the program established under this section. Such regulations 
shall be consistent and in compliance with the Solid Waste Disposal Act 
(42 U.S.C. 6901 et seq.) and the regulations implementing that Act.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``4690. Recyclable munitions materials: sale; use of proceeds.''.

[[Page 120 STAT. 2162]]

SEC. 354. RECOVERY AND TRANSFER TO CORPORATION FOR THE PROMOTION 
                        OF RIFLE PRACTICE AND FIREARMS SAFETY OF 
                        CERTAIN FIREARMS, AMMUNITION, AND PARTS 
                        GRANTED TO FOREIGN COUNTRIES.

    (a) Authority to Recover; Transfer to Corporation.--Subchapter II of 
chapter 407 of title 36, United States Code, is amended by inserting 
after section 40728 the following new section:

``Sec. 40728A. Recovery of excess firearms, ammunition, and parts 
                        granted to foreign countries and transfer to 
                        corporation

    ``(a) Authority to Recover.--The Secretary of the Army may recover 
from any country to which rifles, ammunition, repair parts, or other 
supplies described in section 40731(a) of this title are furnished on a 
grant basis under the conditions imposed by section 505 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2314) any such rifles, ammunition, 
repair parts, or supplies that become excess to the needs of such 
country.
    ``(b) Cost of Recovery.--(1) Except as provided in paragraph (2), 
the cost of recovery of any rifles, ammunition, repair parts, or 
supplies under subsection (a) shall be treated as incremental direct 
costs incurred in providing logistical support to the corporation for 
which reimbursement shall be required as provided in section 40727(a) of 
this title.
    ``(2) The Secretary may require the corporation to pay costs of 
recovery described in paragraph (1) in advance of incurring such costs. 
Amounts so paid shall not be subject to the provisions of section 3302 
of title 31, but shall be administered in accordance with the last 
sentence of section 40727(a) of this title.
    ``(c) Availability for Transfer to Corporation.--Any rifles, 
ammunition, repair parts, or supplies recovered under subsection (a) 
shall be available for transfer to the corporation in accordance with 
section 40728 of this title under such additional terms and conditions 
as the Secretary shall prescribe for purposes of this section.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
40728 the following new item:

``40728A. Recovery of excess firearms, ammunition, and parts granted to 
           foreign countries and transfer to corporation.''.

SEC. 355. EXTENSION OF DEPARTMENT OF DEFENSE TELECOMMUNICATIONS 
                        BENEFIT PROGRAM.

    (a) Termination at End of Contingency Operation.--Subsection (c) of 
section 344 of the National Defense Authorization Act for Fiscal Year 
2004 <<NOTE: 10 USC note prec. 1031.>> (Public Law 108-136) is amended 
to read as follows:

    ``(c) Termination of Benefit.--The authority to provide a benefit 
under subsection (a)(1) to a member directly supporting a contingency 
operation shall terminate on the date that is 60 days after the date on 
which the Secretary determines that the contingency operation has 
ended.''.
    (b) Application to Other Contingency Operations.--Such section is 
further amended--
            (1) in subsection (a), by striking ``Operation Iraqi Freedom 
        and Operation Enduring Freedom'' and inserting ``a contingency 
        operation''; and

[[Page 120 STAT. 2163]]

            (2) by adding at the end the following new subsection:

    ``(g) Contingency Operation Defined.--In this section, the term 
`contingency operation' has the meaning given that term in section 
101(a)(13) of title 10, United States Code. The term includes Operation 
Iraqi Freedom and Operation Enduring Freedom.''.
    (c) Extension to Hospitalized Members.--Subsection (a) of such 
section is further amended--
            (1) by striking ``As soon as possible after the date of the 
        enactment of this Act, the'' and inserting ``(1) The''; and
            (2) by adding at the end the following new paragraph:

    ``(2) As soon as possible after the date of the enactment of the 
John Warner National Defense Authorization Act for Fiscal Year 2007, the 
Secretary shall provide, wherever practicable, prepaid phone cards, 
packet based telephony service, or an equivalent telecommunications 
benefit which includes access to telephone service to members of the 
Armed Forces who, although are no longer directly supporting a 
contingency operation, are hospitalized as a result of wounds or other 
injuries incurred while serving in direct support of a contingency 
operation.''.
    (d) Report on Implementation of Modified Benefits.--Not later than 
90 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 Armed Services of the House of Representatives a 
report describing the status of the efforts of the Department of Defense 
to implement the modifications of the Department of Defense 
telecommunications benefit required by section 344 of the National 
Defense Authorization Act for Fiscal Year 2004 that result from the 
amendments made by this section.
SEC. 356. EXTENSION OF AVAILABILITY OF FUNDS FOR COMMEMORATION OF 
                        SUCCESS OF THE ARMED FORCES IN OPERATION 
                        ENDURING FREEDOM AND OPERATION IRAQI 
                        FREEDOM.

    Section 378(b)(2) of the National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3214) is amended by 
striking ``fiscal year 2006'' and inserting ``fiscal years 2006 and 
2007''.
SEC. 357. <<NOTE: 22 USC 4865 note.>> CAPITAL SECURITY COST 
                        SHARING.

    (a) Reconciliation Required.--For each fiscal year, the Secretary of 
Defense shall reconcile (1) the estimate of overseas presence of the 
Secretary of Defense under subsection (b) for that fiscal year, with (2) 
the determination of the Secretary of State under section 604(e)(1) of 
the Secure Embassy Construction and Counterterrorism Act of 1999 (22 
U.S.C. 4865 note) of the total overseas presence of the Department of 
Defense for that fiscal year.
    (b) Annual Estimate of Overseas Presence.--
Not <<NOTE: Deadline.>> later than February 1 of each year, the 
Secretary of Defense shall submit to the congressional defense 
committees an estimate of the total number of Department of Defense 
overseas personnel subject to chief of mission authority pursuant to 
section 207 of the Foreign Service Act of 1980 (22 U.S.C. 3927) during 
the fiscal year that begins on October 1 of that year.

[[Page 120 STAT. 2164]]

SEC. 358. <<NOTE: 10 USC 2911 note.>> UTILIZATION OF FUEL CELLS AS 
                        BACK-UP POWER SYSTEMS IN DEPARTMENT OF 
                        DEFENSE OPERATIONS.

    The Secretary of Defense shall consider the utilization of fuel 
cells as replacements for current back-up power systems in a variety of 
Department of Defense operations and activities, including in 
telecommunications networks, perimeter security, individual equipment 
items, and remote facilities, in order to increase the operational 
longevity of back-up power systems and stand-by power systems in such 
operations and activities.
SEC. 359. <<NOTE: 10 USC 2567 note.>> IMPROVING DEPARTMENT OF 
                        DEFENSE SUPPORT FOR CIVIL AUTHORITIES.

    (a) Consultation.--In the development of concept plans for the 
Department of Defense for providing support to civil authorities, the 
Secretary of Defense may consult with the Secretary of Homeland Security 
and State governments.
    (b) Prepositioning of Department of Defense Assets.--The Secretary 
of Defense may provide for the prepositioning of prepackaged or 
preidentified basic response assets, such as medical supplies, food and 
water, and communications equipment, in order to improve the ability of 
the Department of Defense to rapidly provide support to civil 
authorities. The prepositioning of basic response assets shall be 
carried out in a manner consistent with Department of Defense concept 
plans for providing support to civil authorities and section 2229 of 
title 10, United States Code, as added by section 351.
    (c) Reimbursement.--To the extent required by section 1535 of title 
31, United States Code, or other applicable law, the Secretary of 
Defense shall require that the Department of Defense be reimbursed for 
costs incurred by the Department in the prepositioning of basic response 
assets under subsection (b).
    (d) Military Readiness.--The Secretary of Defense shall ensure that 
the prepositioning of basic response assets under subsection (b) does 
not adversely affect the military preparedness of the United States.
    (e) Procedures and Guidelines.--The Secretary may develop procedures 
and guidelines applicable to the prepositioning of basic response assets 
under subsection (b).
SEC. 360. ENERGY EFFICIENCY IN WEAPONS PLATFORMS.

    (a) <<NOTE: 10 USC 2911 note.>> Policy.--It shall be the policy of 
the Department of Defense to improve the fuel efficiency of weapons 
platforms, consistent with mission requirements, in order to--
            (1) enhance platform performance;
            (2) reduce the size of the fuel logistics systems;
            (3) reduce the burden high fuel consumption places on 
        agility;
            (4) reduce operating costs; and
            (5) dampen the financial impact of volatile oil prices.

    (b) Report Required.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, the Secretary of Defense shall submit 
        to the congressional defense committees a report on the progress 
        of the Department of Defense in implementing the policy 
        established by subsection (a).
            (2) Elements.--The report shall include the following:

[[Page 120 STAT. 2165]]

                    (A) An assessment of the feasibility of designating 
                a senior Department of Defense official to be 
                responsible for implementing the policy established by 
                subsection (a).
                    (B) A summary of the recommendations made as of the 
                time of the report by--
                          (i) the Energy Security Integrated Product 
                      Team established by the Secretary of Defense in 
                      April 2006;
                          (ii) the Defense Science Board Task Force on 
                      Department of Defense Energy Strategy established 
                      by the Under Secretary of Defense for Acquisition, 
                      Technology and Logistics on May 2, 2006; and
                          (iii) the January 2001 Defense Science Board 
                      Task Force report on Improving Fuel Efficiency of 
                      Weapons Platforms.
                    (C) For each recommendation summarized under 
                subparagraph (B)--
                          (i) the steps that the Department has taken to 
                      implement such recommendation;
                          (ii) any additional steps the Department plans 
                      to take to implement such recommendation; and
                          (iii) for any recommendation that the 
                      Department does not plan to implement, the reasons 
                      for the decision not to implement such 
                      recommendation.
                    (D) An assessment of the extent to which the 
                research, development, acquisition, and logistics 
                guidance and directives of the Department for weapons 
                platforms are appropriately designed to address the 
                policy established by subsection (a).
                    (E) An assessment of the extent to which such 
                guidance and directives are being carried out in the 
                research, development, acquisition, and logistics 
                programs of the Department.
                    (F) A description of any additional actions that, in 
                the view of the Secretary, may be needed to implement 
                the policy established by subsection (a).
SEC. 361. PRIORITIZATION OF FUNDS WITHIN NAVY MISSION OPERATIONS, 
                        SHIP MAINTENANCE, COMBAT SUPPORT FORCES, 
                        AND WEAPONS SYSTEM SUPPORT.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the President's budget for fiscal year 2007 failed to 
        fund the required number of ship steaming days per quarter for 
        Navy ship operations as well as deferring projected depot 
        maintenance for Navy ships and aircraft; and
            (2) the Secretary of Defense should ensure that sufficient 
        financial resources are provided for each fiscal year to support 
        the critical training and depot maintenance accounts of the Navy 
        in order to enable the Navy to maintain the current readiness 
        levels required to support the national military strategy 
        without putting future readiness at risk by underfunding 
        investment in modernization, including ship construction 
        programs.

    (b) Certification.--The Secretary of Defense shall submit to the 
congressional defense committees a written certification, at the same 
time the President submits the budget for each of fiscal years 2008, 
2009, and 2010, that the Navy has budgeted and

[[Page 120 STAT. 2166]]

programmed funding to fully meet the requirements for that fiscal year 
for each of the following:
            (1) Ship steaming days per quarter for deployed and non-
        deployed ship operations.
            (2) Projected depot maintenance requirements for ships and 
        aircraft.

    (c) Limitation.--Of the funds available for Operation and 
Maintenance, Defense-Wide, for the Office of the Secretary of Defense 
for each of fiscal years 2008, 2009, and 2010, no more than 80 percent 
may be obligated in that fiscal year until after the submission of the 
certification required by subsection (b) for the annual budget submitted 
in February of that year for the following fiscal year.
    (d) Annual Report.--Beginning with the fiscal year 2008 budget of 
the President, the Secretary of the Navy shall submit to the 
congressional defense committees an annual report (to be submitted when 
the budget is submitted) setting forth the progress toward funding the 
requirements of subsection (a). The annual reporting requirement shall 
terminate after the fiscal year 2010 budget submission. Each such report 
shall include the following:
            (1) An assessment of the deployed and non-deployed quarterly 
        ship steaming day requirements, itemized by active-duty 
        component and reserve component.
            (2) An assessment of the associated budget request for each 
        of the following:
                    (A) Deployed and non-deployed ship steaming days per 
                quarter.
                    (B) Chief of Naval Operations ship depot maintenance 
                availabilities, shown by type of maintenance 
                availability and by location.
                    (C) Air depot maintenance workload, shown by type of 
                airframe and by location.

    (e) Report on Riverine Squadrons.--
            (1) Report required.--The Secretary of the Navy shall submit 
        to the congressional defense committees a report on the Riverine 
        Squadrons of the Navy. The report shall be submitted with the 
        President's budget for fiscal year 2008 and shall include the 
        following:
                    (A) The total amount funded for fiscal year 2006 and 
                projected funding for fiscal year 2007 and fiscal year 
                2008 for those squadrons.
                    (B) The operational requirement of the commander of 
                the United States Central Command for those squadrons 
                and the corresponding Department of Navy concept of 
                operations for deployments of those squadrons to support 
                Operation Iraqi Freedom or Operation Enduring Freedom.
                    (C) The military table of organization and equipment 
                for those squadrons.
                    (D) A summary of existing Department of Navy 
                equipment that has been assigned in fiscal year 2006 or 
                will be provided in fiscal year 2007 and fiscal year 
                2008 for those squadrons.
                    (E) The Department of Navy directive for the mission 
                assigned to those squadrons.
            (2) Limitation.--Of the amount made available for fiscal 
        year 2007 to the Department of Navy for operation and 
        maintenance for the Office of the Secretary of the Navy, not 
        more

[[Page 120 STAT. 2167]]

        than 80 percent may be obligated before the date on which the 
        report required under paragraph (1) is submitted.
SEC. 362. <<NOTE: 10 USC 2825 note.>> PROVISION OF ADEQUATE 
                        STORAGE SPACE TO SECURE PERSONAL PROPERTY 
                        OUTSIDE OF ASSIGNED MILITARY FAMILY 
                        HOUSING UNIT.

    The Secretary of a military department shall ensure that a member of 
the Armed Forces under the jurisdiction of the Secretary who occupies a 
unit of military family housing is provided with adequate storage space 
to secure personal property that the member is unable to secure within 
the unit whenever--
            (1) the member is assigned to duty in an area for which 
        special pay under section 310 of title 37, United States Code, 
        is available and the assignment is pursuant to orders specifying 
        an assignment of 180 days or more; and
            (2) the dependents of the member who otherwise occupy the 
        unit of military family housing are absent from the unit for 
        more than 30 consecutive days during the period of the 
        assignment of the member.
SEC. 363. EXPANSION OF PAYMENT OF REPLACEMENT VALUE OF PERSONAL 
                        PROPERTY DAMAGED DURING TRANSPORT AT 
                        GOVERNMENT EXPENSE.

    (a) Coverage of Property of Civilian Employees of Department of 
Defense.--Subsection (a) of section 2636a of title 10, United States 
Code, is amended by striking ``of baggage and household effects for 
members of the armed forces at Government expense'' and inserting ``at 
Government expense of baggage and household effects for members of the 
armed forces or civilian employees of the Department of Defense (or 
both)''.
    (b) Requirement for Payment and Deduction Upon Failure of Carrier to 
Settle.--Effective <<NOTE: Effective date.>> March 1, 2008, such section 
is further amended--
            (1) in subsection (a), by striking ``may include'' and 
        inserting ``shall include''; and
            (2) in subsection (b), by striking ``may be deducted'' and 
        inserting ``shall be deducted''.

    (c) <<NOTE: Reports.>> Certification on Families First Program.--The 
Secretary of Defense shall submit to the congressional defense 
committees a report containing the certifications of the Secretary with 
respect to the program of the Department of Defense known as ``Families 
First'' on the following matters:
            (1) Whether there is an alternative to the system under the 
        program that would provide equal or greater capability at a 
        lower cost.
            (2) Whether the estimates on costs, and the anticipated 
        schedule and performance parameters, for the program and system 
        are reasonable.
            (3) Whether the management structure for the program is 
        adequate to manage and control program costs.

    (d) Comptroller General Reports on Families First Program.--
            (1) Review and assessment required.--The Comptroller General 
        of the United States shall conduct a review and assessment of 
        the progress of the Department of Defense in implementing the 
        program of the Department of Defense known as ``Families 
        First''.

[[Page 120 STAT. 2168]]

            (2) Elements of review and assessment.--In conducting the 
        review and assessment required by paragraph (1), the Comptroller 
        General shall--
                    (A) assess the progress of the Department in 
                achieving the goals of the Families First program, 
                including progress in the development and deployment of 
                the Defense Personal Property System;
                    (B) assess the organization, staffing, resources, 
                and capabilities of the Defense Personal Property System 
                Project Management Office established on April 7, 2006;
                    (C) evaluate the growth in cost of the program since 
                the previous assessment of the program by the 
                Comptroller General, and estimate the current annual 
                cost of the Defense Personal Property System and each 
                component of that system; and
                    (D) assess the feasibility of implementing processes 
                and procedures, pending the satisfactory development of 
                the Defense Personal Property System, which would 
                achieve the goals of the program of providing improved 
                personal property management services to members of the 
                Armed Forces.
            (3) Reports.--The Comptroller General shall submit to the 
        Committee on Armed Services of the Senate and the Committee on 
        Armed Services of the House of Representatives reports as 
        follows:
                    (A) An interim report on the review and assessment 
                required by paragraph (1) by not later than December 1, 
                2006.
                    (B) A final report on such review and assessment by 
                not later than June 1, 2007.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent active duty end strength minimum levels.
Sec. 403. Additional authority for increases of Army and Marine Corps 
           active duty end strengths for fiscal years 2008 and 2009.

                       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. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2007 limitation on number of non-dual status 
           technicians.
Sec. 415. Maximum number of reserve personnel authorized to be on active 
           duty for operational support.

               Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.
Sec. 422. Armed Forces Retirement Home.

                        Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    (a) In General.--The Armed Forces are authorized strengths for 
active duty personnel as of September 30, 2007, as follows:
            (1) The Army, 512,400.

[[Page 120 STAT. 2169]]

            (2) The Navy, 340,700.
            (3) The Marine Corps, 180,000.
            (4) The Air Force, 334,200.

    (b) Limitation.--
            (1) Army.--The authorized strength for the Army provided in 
        paragraph (1) of subsection (a) for active duty personnel for 
        fiscal year 2007 is subject to the condition that costs of 
        active duty personnel of the Army for that fiscal year in excess 
        of 482,400 shall be paid out of funds authorized to be 
        appropriated for that fiscal year for a contingent emergency 
        reserve fund or as an emergency supplemental appropriation.
            (2) Marine corps.--The authorized strength for the Marine 
        Corps provided in paragraph (3) of subsection (a) for active 
        duty personnel for fiscal year 2007 is subject to the condition 
        that costs of active duty personnel of the Marine Corps for that 
        fiscal year in excess of 175,000 shall be paid out of funds 
        authorized to be appropriated for that fiscal year for a 
        contingent emergency reserve fund or as an emergency 
        supplemental appropriation.
SEC. 402. REVISION IN PERMANENT ACTIVE DUTY END STRENGTH MINIMUM 
                        LEVELS.

    Section 691(b) of title 10, United States Code, is amended by 
striking paragraphs (1) through (4) and inserting the following:
            ``(1) For the Army, 502,400.
            ``(2) For the Navy, 340,700.
            ``(3) For the Marine Corps, 180,000.
            ``(4) For the Air Force, 334,200.''.
SEC. 403. ADDITIONAL AUTHORITY FOR INCREASES OF ARMY AND MARINE 
                        CORPS ACTIVE DUTY END STRENGTHS FOR FISCAL 
                        YEARS 2008 AND 2009.

    Effective <<NOTE: Effective date.>> October 1, 2007, the text of 
section 403 of the Ronald W. Reagan National Defense Authorization Act 
for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 1863) <<NOTE: 10 USC 
115 note.>> is amended to read as follows:

    ``(a) Authority.--
            ``(1) Army.--For each of fiscal years 2008 and 2009, the 
        Secretary of Defense may, as the Secretary determines necessary 
        for the purposes specified in paragraph (3), establish the 
        active-duty end strength for the Army at a number greater than 
        the number otherwise authorized by law up to the number equal to 
        the fiscal-year 2007 baseline plus 20,000.
            ``(2) Marine corps.--For each of fiscal years 2008 and 2009, 
        the Secretary of Defense may, as the Secretary determines 
        necessary for the purposes specified in paragraph (3), establish 
        the active-duty end strength for the Marine Corps at a number 
        greater than the number otherwise authorized by law up to the 
        number equal to the fiscal-year 2007 baseline plus 4,000.
            ``(3) Purpose of increases.--The purposes for which 
        increases may be made in Army and Marine Corps active duty end 
        strengths under paragraphs (1) and (2) are--
                    ``(A) to support operational missions; and
                    ``(B) to achieve transformational reorganization 
                objectives, including objectives for increased numbers 
                of combat

[[Page 120 STAT. 2170]]

                brigades and battalions, increased unit manning, force 
                stabilization and shaping, and rebalancing of the active 
                and reserve component forces.
            ``(4) Fiscal-year 2007 baseline.--In this subsection, the 
        term `fiscal-year 2007 baseline', with respect to the Army and 
        Marine Corps, means the active-duty end strength authorized for 
        those services in section 401 of the John Warner National 
        Defense Authorization Act for Fiscal Year 2007.
            ``(5) Active-duty end strength.--In this subsection, the 
        term `active-duty end strength' means the strength for active-
        duty personnel of one of the Armed Forces as of the last day of 
        a fiscal year.

    ``(b) Relationship to Presidential Waiver Authority.--Nothing in 
this section shall be construed to limit the President's authority under 
section 123a of title 10, United States Code, to waive any statutory end 
strength in a time of war or national emergency.
    ``(c) Relationship to Other Variance Authority.--The authority under 
subsection (a) is in addition to the authority to vary authorized end 
strengths that is provided in subsections (e) and (f) of section 115 of 
title 10, United States Code.
    ``(d) Budget Treatment.--
            ``(1) Fiscal year 2008 budget.--The budget for the 
        Department of Defense for fiscal year 2008 as submitted to 
        Congress shall comply, with respect to funding, with subsections 
        (c) and (d) of section 691 of title 10, United States Code.
            ``(2) Other increases.--If the Secretary of Defense plans to 
        increase the Army or Marine Corps active duty end strength for a 
        fiscal year under subsection (a), then the budget for the 
        Department of Defense for that fiscal year as submitted to 
        Congress shall include the amounts necessary for funding that 
        active duty end strength in excess of the fiscal year 2007 
        active duty end strength authorized for that service under 
        section 401 of the John Warner National Defense Authorization 
        Act for Fiscal Year 2007.''.

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 30, 
2007, as follows:
            (1) The Army National Guard of the United States, 350,000.
            (2) The Army Reserve, 200,000.
            (3) The Navy Reserve, 71,300.
            (4) The Marine Corps Reserve, 39,600.
            (5) The Air National Guard of the United States, 107,000.
            (6) The Air Force Reserve, 74,900.
            (7) The Coast Guard Reserve, 10,000.

    (b) Adjustments.--The end strengths prescribed by subsection (a) for 
the Selected Reserve of any reserve component 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

[[Page 120 STAT. 2171]]

            (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 
increased proportionately 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, 2007, 
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, 27,441.
            (2) The Army Reserve, 15,416.
            (3) The Navy Reserve, 12,564.
            (4) The Marine Corps Reserve, 2,261.
            (5) The Air National Guard of the United States, 13,291.
            (6) The Air Force Reserve, 2,707.
SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL STATUS).

    The minimum number of military technicians (dual status) as of the 
last day of fiscal year 2007 for the reserve components of the Army and 
the Air Force (notwithstanding section 129 of title 10, United States 
Code) shall be the following:
            (1) For the Army Reserve, 7,912.
            (2) For the Army National Guard of the United States, 
        26,050.
            (3) For the Air Force Reserve, 10,124.
            (4) For the Air National Guard of the United States, 23,255.
SEC. 414. FISCAL YEAR 2007 LIMITATION ON NUMBER OF NON-DUAL STATUS 
                        TECHNICIANS.

    (a) Limitations.--
            (1) National guard.--Within the limitation provided in 
        section 10217(c)(2) of title 10, United States Code, the number 
        of non-dual status technicians employed by the National Guard as 
        of September 30, 2007, may not exceed the following:
                    (A) For the Army National Guard of the United 
                States, 1,600
                    (B) For the Air National Guard of the United States, 
                350.
            (2) Army reserve.--The number of non-dual status technicians 
        employed by the Army Reserve as of September 30, 2007, may not 
        exceed 595.
            (3) Air force reserve.--The number of non-dual status 
        technicians employed by the Air Force Reserve as of September 
        30, 2007, may not exceed 90.

[[Page 120 STAT. 2172]]

    (b) Non-Dual Status Technicians Defined.--In this section, the term 
``non-dual status technician'' has the meaning given that term in 
section 10217(a) of title 10, United States Code.
SEC. 415. MAXIMUM NUMBER OF RESERVE PERSONNEL AUTHORIZED TO BE ON 
                        ACTIVE DUTY FOR OPERATIONAL SUPPORT.

    During fiscal year 2007, the maximum number of members of the 
reserve components of the Armed Forces who may be serving at any time on 
full-time operational support duty under section 115(b) of title 10, 
United States Code, is the following:
            (1) The Army National Guard of the United States, 17,000.
            (2) The Army Reserve, 13,000.
            (3) The Navy Reserve, 6,200.
            (4) The Marine Corps Reserve, 3,000.
            (5) The Air National Guard of the United States, 16,000.
            (6) The Air Force Reserve, 14,000.

               Subtitle C--Authorization of Appropriations

SEC. 421. MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 2007 a total of 
$110,098,628,000. The authorization in the preceding sentence supersedes 
any other authorization of appropriations (definite or indefinite) for 
such purpose for fiscal year 2007.
SEC. 422. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 2007 
from the Armed Forces Retirement Home Trust Fund the sum of $54,846,000 
for the operation of the Armed Forces Retirement Home.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

               Part I--Officer Personnel Policy Generally

Sec. 501. Military status of officers serving in certain intelligence 
           community positions.
Sec. 502. Extension of age for mandatory retirement for active-duty 
           general and flag officers.
Sec. 503. Increased mandatory retirement ages for reserve officers.
Sec. 504. Standardization of grade of senior dental officer of the Air 
           Force with that of senior dental officer of the Army.
Sec. 505. Management of chief warrant officers.
Sec. 506. Extension of temporary reduction of time-in-grade requirement 
           for eligibility for promotion for certain active-duty list 
           officers in grades of first lieutenant and lieutenant (junior 
           grade).
Sec. 507. Grade and exclusion from active-duty general and flag officer 
           distribution and strength limitations of officer serving as 
           Attending Physician to the Congress.
Sec. 508. Modification of qualifications for leadership of the Naval 
           Postgraduate School.

                    Part II--Officer Promotion Policy

Sec. 511. Revisions to authorities relating to authorized delays of 
           officer promotions.

[[Page 120 STAT. 2173]]

Sec. 512. Consideration of adverse information by selection boards in 
           recommendations on officers to be promoted.
Sec. 513. Expanded authority for removal from reports of selection 
           boards of officers recommended for promotion to grades below 
           general and flag grades.
Sec. 514. Special selection board authorities.
Sec. 515. Removal from promotion list of officers not promoted within 18 
           months of approval of list by the President.

             Part III--Joint Officer Management Requirements

Sec. 516. Modification and enhancement of general authorities on 
           management of officers who are joint qualified.
Sec. 517. Modification of promotion policy objectives for joint 
           officers.
Sec. 518. Applicability of joint duty assignment requirements limited to 
           graduates of National Defense University schools.
Sec. 519. Modification of certain definitions relating to jointness.

                  Subtitle B--Reserve Component Matters

                  Part I--Reserve Component Management

Sec. 521. Recognition of former Representative G. V. `Sonny' Montgomery 
           for his 30 years of service in the House of Representatives.
Sec. 522. Revisions to reserve call-up authority.
Sec. 523. Military retirement credit for certain service by National 
           Guard members performed while in a State duty status 
           immediately after the terrorist attacks of September 11, 
           2001.

         Part II--Authorities Relating to Guard and Reserve Duty

Sec. 524. Title 10 definition of Active Guard and Reserve duty.
Sec. 525. Authority for Active Guard and Reserve duties to include 
           support of operational missions assigned to the reserve 
           components and instruction and training of active-duty 
           personnel.
Sec. 526. Governor's authority to order members to Active Guard and 
           Reserve duty.
Sec. 527. Expansion of operations of civil support teams.
Sec. 528. Modification of authorities relating to the Commission on the 
           National Guard and Reserves.
Sec. 529. Additional matters to be reviewed by Commission on the 
           National Guard and Reserves.

                   Subtitle C--Education and Training

                        Part I--Service Academies

Sec. 531. Expansion of service academy exchange programs with foreign 
           military academies.
Sec. 532. Revision and clarification of requirements with respect to 
           surveys and reports concerning sexual harassment and sexual 
           violence at the service academies.
Sec. 533. Department of Defense policy on service academy and ROTC 
           graduates seeking to participate in professional sports 
           before completion of their active-duty service obligations.

         Part II--Scholarship and Financial Assistance Programs

Sec. 535. Authority to permit members who participate in the guaranteed 
           reserve forces duty scholarship program to participate in the 
           health professions scholarship program and serve on active 
           duty.
Sec. 536. Detail of commissioned officers as students at medical 
           schools.
Sec. 537. Increase in maximum amount of repayment under education loan 
           repayment for officers in specified health professions.
Sec. 538. Health Professions Scholarship and Financial Assistance 
           Program for Active Service.

                      Part III--Junior ROTC Program

Sec. 539. Junior Reserve Officers' Training Corps instructor 
           qualifications.
Sec. 540. Expansion of members eligible to be employed to provide Junior 
           Reserve Officers' Training Corps instruction.
Sec. 541. Expansion of Junior Reserve Officers' Training Corps program.
Sec. 542. Review of legal status of Junior ROTC program.

             Part IV--Other Education and Training Programs

Sec. 543. Expanded eligibility for enlisted members for instruction at 
           Naval Postgraduate School.

[[Page 120 STAT. 2174]]

                 Subtitle D--General Service Authorities

Sec. 546. Test of utility of test preparation guides and education 
           programs in enhancing recruit candidate performance on the 
           Armed Services Vocational Aptitude Battery (ASVAB) and Armed 
           Forces Qualification Test (AFQT).
Sec. 547. Clarification of nondisclosure requirements applicable to 
           certain selection board proceedings.
Sec. 548. Report on extent of provision of timely notice of long-term 
           deployments.

                  Subtitle E--Military Justice Matters

Sec. 551. Applicability of Uniform Code of Military Justice to members 
           of the Armed Forces ordered to duty overseas in inactive duty 
           for training status.
Sec. 552. Clarification of application of Uniform Code of Military 
           Justice during a time of war.

                   Subtitle F--Decorations and Awards

Sec. 555. Authority for presentation of Medal of Honor Flag to living 
           Medal of Honor recipients and to living primary next-of-kin 
           of deceased Medal of Honor recipients.
Sec. 556. Review of eligibility of prisoners of war for award of the 
           Purple Heart.
Sec. 557. Report on Department of Defense process for awarding 
           decorations.

               Subtitle G--Matters Relating to Casualties

Sec. 561. Authority for retention after separation from service of 
           assistive technology and devices provided while on active 
           duty.
Sec. 562. Transportation of remains of casualties dying in a theater of 
           combat operations.
Sec. 563.  Annual budget display of funds for POW/MIA activities of 
           Department of Defense.
Sec. 564. Military Severely Injured Center.
Sec. 565. Comprehensive review on procedures of the Department of 
           Defense on mortuary affairs.
Sec. 566. Additional elements of policy on casualty assistance to 
           survivors of military decedents.
Sec. 567.  Requirement for deploying military medical personnel to be 
           trained in preservation of remains under combat or combat-
           related conditions.

     Subtitle H--Impact Aid and Defense Dependents Education System

Sec. 571. Enrollment in defense dependents' education system of 
           dependents of foreign military members assigned to Supreme 
           Headquarters Allied Powers, Europe.
Sec. 572. Continuation of authority to assist local educational agencies 
           that benefit dependents of members of the Armed Forces and 
           Department of Defense civilian employees.
Sec. 573. Impact aid for children with severe disabilities.
Sec. 574. Plan and authority to assist local educational agencies 
           experiencing growth in enrollment due to force structure 
           changes, relocation of military units, or base closures and 
           realignments.
Sec. 575. Pilot program on parent education to promote early childhood 
           education for dependent children affected by military 
           deployment or relocation of military units.

                Subtitle I--Armed Forces Retirement Home

Sec. 578. Report on leadership and management of the Armed Forces 
           Retirement Home.
Sec. 579. Report on Local Boards of Trustees of the Armed Forces 
           Retirement Home.

                           Subtitle J--Reports

Sec. 581. Report on personnel requirements for airborne assets 
           identified as Low-Density, High-Demand Airborne Assets.
Sec. 582. Report on feasibility of establishment of Military Entrance 
           Processing Command station on Guam.
Sec. 583. Inclusion in annual Department of Defense report on sexual 
           assaults of information on results of disciplinary actions.
Sec. 584. Report on provision of electronic copy of military records on 
           discharge or release of members from the Armed Forces.
Sec. 585. Report on omission of social security account numbers from 
           military identification cards.

[[Page 120 STAT. 2175]]

Sec. 586. Report on maintenance and protection of data held by the 
           Secretary of Defense as part of the Department of Defense 
           Joint Advertising, Market Research and Studies (JAMRS) 
           program.
Sec. 587. Comptroller General report on military conscientious 
           objectors.

                        Subtitle K--Other Matters

Sec. 591. Modification in Department of Defense contributions to 
           Military Retirement Fund.
Sec. 592. Revision in Government contributions to Medicare-Eligible 
           Retiree Health Care Fund.
Sec. 593. Dental Corps of the Navy Bureau of Medicine and Surgery.
Sec. 594. Permanent authority for presentation of recognition items for 
           recruitment and retention purposes.
Sec. 595. Persons authorized to administer enlistment and appointment 
           oaths.
Sec. 596. Military voting matters.
Sec. 597. Physical evaluation boards.
Sec. 598. Military ID cards for retiree dependents who are permanently 
           disabled.
Sec. 599. United States Marine Band and United States Marine Drum and 
           Bugle Corps.

                  Subtitle A--Officer Personnel Policy

               PART I--OFFICER PERSONNEL POLICY GENERALLY

SEC. 501. MILITARY STATUS OF OFFICERS SERVING IN CERTAIN 
                        INTELLIGENCE COMMUNITY POSITIONS.

    (a) Clarification of Military Status.--Section 528 of title 10, 
United States Code, is amended--
            (1) by striking subsections (a) and (b) and inserting the 
        following:

    ``(a) Military Status.--An officer of the armed forces, while 
serving in a position covered by this section--
            ``(1) shall not be subject to supervision or control by the 
        Secretary of Defense or any other officer or employee of the 
        Department of Defense, except as directed by the Secretary of 
        Defense concerning reassignment from such position; and
            ``(2) may not exercise, by reason of the officer's status as 
        an officer, any supervision or control with respect to any of 
        the military or civilian personnel of the Department of Defense 
        except as otherwise authorized by law.

    ``(b) Director and Deputy Director of CIA.--When the position of 
Director or Deputy Director of the Central Intelligence Agency is held 
by an officer of the armed forces, the officer serving in that position, 
while so serving, shall be excluded from the limitations in sections 525 
and 526 of this title. However, if both such positions are held by an 
officer of the armed forces, only one such officer may be excluded from 
those limitation while so serving.''; and
            (2) by adding at the end the following new subsections:

    ``(e) Effect of Appointment.--Except as provided in subsection (a), 
the appointment or assignment of an officer of the armed forces to a 
position covered by this section shall not affect--
            ``(1) the status, position, rank, or grade of such officer 
        in the armed forces; or
            ``(2) any emolument, perquisite, right, privilege, or 
        benefit incident to or arising out of such status, position, 
        rank, or grade.

    ``(f) Military Pay and Allowances.--(1) An officer of the armed 
forces on active duty who is appointed or assigned to a

[[Page 120 STAT. 2176]]

position covered by this section shall, while serving in such position 
and while remaining on active duty, continue to receive military pay and 
allowances and shall not receive the pay prescribed for such position.
    ``(2) Funds from which pay and allowances under paragraph (1) are 
paid to an officer while so serving shall be reimbursed as follows:
            ``(A) For an officer serving in a position within the 
        Central Intelligence Agency, such reimbursement shall be made 
        from funds available to the Director of the Central Intelligence 
        Agency.
            ``(B) For an officer serving in a position within the Office 
        of the Director of National Intelligence, such reimbursement 
        shall be made from funds available to the Director of National 
        Intelligence.

    ``(g) Covered Positions.--The positions covered by this section are 
the positions specified in subsections (b) and (c) and the positions 
designated under subsection (d).''.
    (b) Clerical Amendments.--
            (1) The heading of such section is amended to read as 
        follows:

``Sec. 528. Officers serving in certain intelligence positions: military 
                        status; exclusion from distribution and strength 
                        limitations; pay and allowances''.

            (2) The item relating to section 528 in the table of 
        sections at the beginning of chapter 32 of such title is amended 
        to read as follows:

``528. Officers serving in certain intelligence positions: military 
           status; exclusion from distribution and strength limitations; 
           pay and allowances.''.

SEC. 502. EXTENSION OF AGE FOR MANDATORY RETIREMENT FOR ACTIVE-
                        DUTY GENERAL AND FLAG OFFICERS.

    (a) Revised Age Limits for General and Flag Officers.--Chapter 63 of 
title 10, United States Code, is amended by inserting after section 1252 
the following new section:

``Sec. 1253. Age 64: regular commissioned officers in general and flag 
                        officer grades; exception

    ``(a) General Rule.--Unless retired or separated earlier, each 
regular commissioned officer of the Army, Navy, Air Force, or Marine 
Corps serving in a general or flag officer grade shall be retired on the 
first day of the month following the month in which the officer becomes 
64 years of age.
    ``(b) Exception for Officers Serving in O-9 and O-10 Positions.--In 
the case of an officer serving in a position that carries a grade above 
major general or rear admiral, the retirement under subsection (a) of 
that officer may be deferred--
            ``(1) by the President, but such a deferment may not extend 
        beyond the first day of the month following the month in which 
        the officer becomes 68 years of age; or
            ``(2) by the Secretary of Defense, but such a deferment may 
        not extend beyond the first day of the month following the month 
        in which the officer becomes 66 years of age.''.

    (b) Restatement and Modification of Current Age Limits for Other 
Officers.--Section 1251 of such title is amended to read as follows:

[[Page 120 STAT. 2177]]

``Sec. 1251. Age 62: regular commissioned officers in grades below 
                        general and flag officer grades; exceptions

    ``(a) General Rule.--Unless retired or separated earlier, each 
regular commissioned officer of the Army, Navy, Air Force, or Marine 
Corps (other than an officer covered by section 1252 of this title or a 
commissioned warrant officer) serving in a grade below brigadier general 
or rear admiral (lower half), in the case of an officer in the Navy, 
shall be retired on the first day of the month following the month in 
which the officer becomes 62 years of age.
    ``(b) Deferred Retirement of Health Professions Officers.--(1) The 
Secretary of the military department concerned may, subject to 
subsection (d), defer the retirement under subsection (a) of a health 
professions officer if during the period of the deferment the officer 
will be performing duties consisting primarily of providing patient care 
or performing other clinical duties.
    ``(2) For purposes of this subsection, a health professions officer 
is--
            ``(A) a medical officer;
            ``(B) a dental officer; or
            ``(C) an officer in the Army Nurse Corps, an officer in the 
        Navy Nurse Corps, or an officer in the Air Force designated as a 
        nurse.

    ``(c) Deferred Retirement of Chaplains.--The Secretary of the 
military department concerned may, subject to subsection (d), defer the 
retirement under subsection (a) of an officer who is appointed or 
designated as a chaplain if the Secretary determines that such deferral 
is in the best interest of the military department concerned.
    ``(d) Limitation on Deferment of Retirements.--(1) Except as 
provided in paragraph (2), a deferment under subsection (b) or (c) may 
not extend beyond the first day of the month following the month in 
which the officer becomes 68 years of age.
    ``(2) The Secretary of the military department concerned may extend 
a deferment under subsection (b) or (c) beyond the day referred to in 
paragraph (1) if the Secretary determines that extension of the 
deferment is necessary for the needs of the military department 
concerned. Such an extension shall be made on a case-by-case basis and 
shall be for such period as the Secretary considers appropriate.''.
    (c) Clerical Amendments.--The table of sections at the beginning of 
chapter 63 of such title is amended--
            (1) by striking the item relating to section 1251 and 
        inserting the following new item:

``1251. Age 62: regular commissioned officers in grades below general 
           and flag officer grades; exceptions.'';

        and
            (2) by inserting after the item relating to section 1252 the 
        following new item:

``1253. Age 64: regular commissioned officers in general and flag 
           officer grades; exception.''.

    (d) Conforming Amendments.--Chapter 71 of such title is amended--

[[Page 120 STAT. 2178]]

            (1) in the table in section 1401(a), by inserting at the 
        bottom of the column under the heading ``For sections'', in the 
        entry for Formula Number 5, the following: ``1253''; and
            (2) in the table in section 1406(b)(1), by inserting at the 
        bottom of the first column the following: ``1253''.
SEC. 503. INCREASED MANDATORY RETIREMENT AGES FOR RESERVE 
                        OFFICERS.

    (a) Major Generals and Rear Admirals.--
            (1) Increased age.--Section 14511 of title 10, United States 
        Code, is amended by striking ``62 years'' and inserting ``64 
        years''.
            (2) Conforming amendment.--The heading of such section is 
        amended to read as follows:

``Sec. 14511. Separation at age 64: major generals and rear admirals''.

    (b) Brigadier Generals and Rear Admirals (lower Half).--
            (1) Increased age.--Section 14510 of such title is amended 
        by striking ``60 years'' and inserting ``62 years''.
            (2) Conforming amendment.--The heading of such section is 
        amended to read as follows:

``Sec. 14510. Separation at age 62: brigadier generals and rear admirals 
                        (lower half)''.

    (c) Officers Below Brigadier General or Rear Admiral (Lower Half)--
            (1) Increased age.--Section 14509 of such title is amended 
        by striking ``60 years'' and inserting ``62 years''.
            (2) Conforming amendment.--The heading of such section is 
        amended to read as follows:

``Sec. 14509. Separation at age 62: reserve officers in grades below 
                        brigadier general or rear admiral (lower 
                        half)''.

    (d) Certain Other Officers.--
            (1) Increased age.--Section 14512 of such title is amended 
        by striking ``64 years'' both places it appears and inserting 
        ``66 years''.
            (2) Conforming amendment.--The heading of such section is 
        amended to read as follows:

``Sec. 14512. Separation at age 66: officers holding certain offices''.

    (e) Conforming Amendments.--Section 14508 of such title is amended--
            (1) in subsection (c), by striking ``60 years'' and 
        inserting ``62 years''; and
            (2) in subsection (d), by striking ``62 years'' and 
        inserting ``64 years''.

    (f) Clerical Amendment.--The table of sections at the beginning of 
chapter 1407 of such title is amended by striking the items relating to 
sections 14509, 14510, 14511, and 14512 and inserting the following new 
items:

``14509. Separation at age 62: reserve officers in grades below 
           brigadier general or rear admiral (lower half).
``14510. Separation at age 62: brigadier generals and rear admirals 
           (lower half).

[[Page 120 STAT. 2179]]

``14511. Separation at age 64: major generals and rear admirals.
``14512. Separation at age 66: officers holding certain offices.''.

SEC. 504. STANDARDIZATION OF GRADE OF SENIOR DENTAL OFFICER OF THE 
                        AIR FORCE WITH THAT OF SENIOR DENTAL 
                        OFFICER OF THE ARMY.

    (a) Air Force Assistant Surgeon General for Dental Services.--
Section 8081 of title 10, United States Code, is amended by striking 
``brigadier general'' in the second sentence and inserting ``major 
general''.
    (b) <<NOTE: 10 USC 8081 note.>> Effective Date.--The amendment made 
by subsection (a) shall take effect on the date of the occurrence of the 
next vacancy in the position of Assistant Surgeon General for Dental 
Services in the Air Force that occurs after the date of the enactment of 
this Act or, if earlier, on the date of the appointment to the grade of 
major general of the officer who is the incumbent in that position on 
the date of the enactment of the Act.
SEC. 505. MANAGEMENT OF CHIEF WARRANT OFFICERS.

    (a) Retention of Chief Warrant Officers, W-4, Who Have Twice Failed 
of Selection for Promotion.--Paragraph (1) of section 580(e) of title 
10, United States Code, is amended by striking ``continued on active 
duty if'' and all that follows and inserting ``continued on active duty 
if--
            ``(A) in the case of a warrant officer in the grade of chief 
        warrant officer, W-2, or chief warrant officer, W-3, the warrant 
        officer is selected for continuation on active duty by a 
        selection board convened under section 573(c) of this title; and
            ``(B) in the case of a warrant officer in the grade of chief 
        warrant officer, W-4, the warrant officer is selected for 
        continuation on active duty by the Secretary concerned under 
        such procedures as the Secretary may prescribe.''.

    (b) Eligibility for Consideration for Promotion of Warrant Officers 
Continued on Active Duty.--Paragraph (2) of such section is amended--
            (1) by inserting ``(A)'' after ``(2)''; and
            (2) by adding at the end the following new subparagraph:

    ``(B) A warrant officer in the grade of chief warrant officer, W-4, 
who is retained on active duty pursuant to procedures prescribed under 
paragraph (1)(B) is eligible for further consideration for promotion 
while remaining on active duty.''.
    (c) Mandatory Retirement for Length of Service.--Section 1305(a) of 
such title is amended--
            (1) by striking ``(1) Except as'' and all the follows 
        through ``W-5)'' and inserting ``A regular warrant officer'';
            (2) by inserting ``as a warrant officer'' after ``years of 
        active service'';
            (3) by inserting ``the date on which'' after ``60 days 
        after''; and
            (4) by striking paragraph (2).
SEC. 506. EXTENSION OF TEMPORARY REDUCTION OF TIME-IN-GRADE 
                        REQUIREMENT FOR ELIGIBILITY FOR PROMOTION 
                        FOR CERTAIN ACTIVE-DUTY LIST OFFICERS IN 
                        GRADES OF FIRST LIEUTENANT AND LIEUTENANT 
                        (JUNIOR GRADE).

    Section 619(a)(1)(B) of title 10, United States Code, is amended by 
striking ``October 1, 2005'' and inserting ``October 1, 2008''.

[[Page 120 STAT. 2180]]

SEC. 507. GRADE AND EXCLUSION FROM ACTIVE-DUTY GENERAL AND FLAG 
                        OFFICER DISTRIBUTION AND STRENGTH 
                        LIMITATIONS OF OFFICER SERVING AS 
                        ATTENDING PHYSICIAN TO THE CONGRESS.

    (a) Grade.--
            (1) Regular officer.--(A) Chapter 41 of title 10, United 
        States Code, is amended by adding at the end the following new 
        section:

``Sec. 722. Attending Physician to the Congress: grade

    ``A general officer serving as Attending Physician to the Congress, 
while so serving, holds the grade of major general. A flag officer 
serving as Attending Physician to the Congress, while so serving, holds 
the grade of rear admiral.''.
            (B) The table of sections at the beginning of such chapter 
        is amended by adding at the end the following new item:

``722. Attending Physician to the Congress: grade.''.

            (2) Reserve officer.--(A) Section 12210 of such title is 
        amended by striking ``who holds'' and all that follows and 
        inserting ``holds the reserve grade of major general or rear 
        admiral, as appropriate.''.
            (B) The heading of such section is amended to read as 
        follows:

``Sec. 12210. Attending Physician to the Congress: reserve grade''.

            (C) The table of sections at the beginning of chapter 1205 
        of such title is amended by striking the item relating to 
        section 12210 and inserting the following new item:

``12210. Attending Physician to the Congress: reserve grade.''.

    (b) Distribution Limitations.--Section 525 of such title is amended 
by adding at the end the following new subsection:
    ``(f) An officer while serving as Attending Physician to the 
Congress is in addition to the number that would otherwise be permitted 
for that officer's armed force for officers serving on active duty in 
grades above brigadier general or rear admiral (lower half) under 
subsection (a).''.
    (c) Active-Duty Strength Limitations.--Section 526 of such title is 
amended by adding at the end the following new subsection:
    ``(f) Exclusion of Attending Physician to the Congress.--The 
limitations of this section do not apply to the general or flag officer 
who is serving as Attending Physician to the Congress.''.
SEC. 508. MODIFICATION OF QUALIFICATIONS FOR LEADERSHIP OF THE 
                        NAVAL POSTGRADUATE SCHOOL.

     Subsection (a) of section 7042 of title 10, United States Code, is 
amended to read as follows:
    ``(a)(1) The President of the Naval Postgraduate School shall be one 
of the following:
            ``(A) An active-duty officer of the Navy or Marine Corps in 
        a grade not below the grade of captain, or colonel, 
        respectively, who is assigned or detailed to such position.
            ``(B) A civilian individual, including an individual who was 
        retired from the Navy or Marine Corps in a grade not below 
        captain, or colonel, respectively, who has the qualifications

[[Page 120 STAT. 2181]]

        appropriate to the position of President and is selected by the 
        Secretary of the Navy as the best qualified from among 
        candidates for the position in accordance with--
                    ``(i) the criteria specified in paragraph (4);
                    ``(ii) a process determined by the Secretary; and
                    ``(iii) other factors the Secretary considers 
                essential.

    ``(2) Before making an assignment, detail, or selection of an 
individual for the position of President of the Naval Postgraduate 
School, the Secretary shall--
            ``(A) consult with the Board of Advisors for the Naval 
        Postgraduate School;
            ``(B) consider any recommendation of the leadership and 
        faculty of the Naval Postgraduate School regarding the 
        assignment or selection to that position; and
            ``(C) consider the recommendations of the Chief of Naval 
        Operations and the Commandant of the Marine Corps.

    ``(3) An individual selected for the position of President of the 
Naval Postgraduate School under paragraph (1)(B) shall serve in that 
position for a term of not more than five years and may be continued in 
that position for an additional term of up to five years.
    ``(4) The qualifications appropriate for selection of an individual 
for detail or assignment to the position of President of the Naval 
Postgraduate School include the following:
            ``(A) An academic degree that is either--
                    ``(i) a doctorate degree in a field of study 
                relevant to the mission and function of the Naval 
                Postgraduate School; or
                    ``(ii) a master's degree in a field of study 
                relevant to the mission and function of the Naval 
                Postgraduate School, but only if--
                          ``(I) the individual is an active-duty or 
                      retired officer of the Navy or Marine Corps in a 
                      grade not below the grade of captain or colonel, 
                      respectively; and
                          ``(II) at the time of the selection of that 
                      individual as President, the individual 
                      permanently appointed to the position of Provost 
                      and Academic Dean has a doctorate degree in such a 
                      field of study.
            ``(B) A comprehensive understanding of the Department of the 
        Navy, the Department of Defense, and joint and combined 
        operations.
            ``(C) Leadership experience at the senior level in a large 
        and diverse organization.
            ``(D) Demonstrated ability to foster and encourage a program 
        of research in order to sustain academic excellence.
            ``(E) Other qualifications, as determined by the Secretary 
        of the Navy.''.

                    PART II--OFFICER PROMOTION POLICY

SEC. 511. REVISIONS TO AUTHORITIES RELATING TO AUTHORIZED DELAYS 
                        OF OFFICER PROMOTIONS.

    (a) Officers on Active-Duty List.--
            (1) Secretary of defense regulations for delays of 
        appointment upon promotion.--Paragraphs (1) and (2) of 
        subsection (d) of section 624 of title 10, United States Code, 
        are

[[Page 120 STAT. 2182]]

        amended by striking ``prescribed by the Secretary concerned'' in 
        and inserting ``prescribed by the Secretary of Defense''.
            (2) Additional basis for delay of appointment by reason of 
        investigations and proceedings.--Subsection (d)(1) of such 
        section is further amended--
                    (A) by striking ``or'' at the end of subparagraph 
                (C);
                    (B) by striking the period at the end of 
                subparagraph (D) and inserting ``; or'';
                    (C) by inserting after subparagraph (D) the 
                following new subparagraph:
            ``(E) substantiated adverse information about the officer 
        that is material to the decision to appoint the officer is under 
        review by the Secretary of Defense or the Secretary 
        concerned.''; and
                    (D) in the flush matter following subparagraph (E), 
                as inserted by subparagraph (C) of this paragraph--
                          (i) by striking ``or'' after ``chapter 60 of 
                      this title''; and
                          (ii) by inserting after ``brought against 
                      him,'' the following: ``or if, after a review of 
                      substantiated adverse information about the 
                      officer regarding the requirement for exemplary 
                      conduct set forth in section 3583, 5947, or 8583 
                      of this title, as applicable, the officer is 
                      determined to be among the officers best qualified 
                      for promotion,''.
            (3) Additional basis for delay in appointment for lack of 
        qualifications.--Subsection (d)(2) of such section is further 
        amended--
                    (A) in the first sentence, by inserting before ``is 
                mentally, physically,'' the following: ``has not met the 
                requirement for exemplary conduct set forth in section 
                3583, 5947, or 8583 of this title, as applicable, or''; 
                and
                    (B) in the second sentence, by striking ``If the 
                Secretary concerned later determines that the officer is 
                qualified for promotion to such grade'' and inserting 
                ``If it is later determined by a civilian official of 
                the Department of Defense (not below the level of 
                Secretary of a military department) that the officer is 
                qualified for promotion to such grade and, after a 
                review of adverse information regarding the requirement 
                for exemplary conduct set forth in section 3583, 5947, 
                or 8583 of this title, as applicable, the officer is 
                determined to be among the officers best qualified for 
                promotion to such grade''.

    (b) Officers on Reserve Active-Status List.--
            (1) Secretary of defense regulations for delays of 
        appointment upon promotion.--Subsections (a)(1) and (b) of 
        section 14311 of such title are amended by striking ``Secretary 
        of the military department concerned'' and inserting ``Secretary 
        of Defense''.
            (2) Additional basis for original delay of appointment by 
        reason of investigations and proceedings.--Section 14311(a) of 
        such title is further amended--
                    (A) in paragraph (1), by adding at the end the 
                following new subparagraph:
            ``(E) Substantiated adverse information about the officer 
        that is material to the decision to appoint the officer is under

[[Page 120 STAT. 2183]]

        review by the Secretary of Defense or the Secretary 
        concerned.''; and
                    (B) in paragraph (2)--
                          (i) by striking ``or'' after ``show cause for 
                      retention,''; and
                          (ii) by inserting after ``of the charges,'' 
                      the following: ``or if, after a review of 
                      substantiated adverse information about the 
                      officer regarding the requirement for exemplary 
                      conduct set forth in section 3583, 5947, or 8583 
                      of this title, as applicable, the officer is 
                      determined to be among the officers best qualified 
                      for promotion,''.
            (3) Additional basis for delay in appointment for lack of 
        qualifications.--Section 14311(b) of such section is further 
        amended--
                    (A) in the first sentence, by inserting before ``is 
                mentally, physically,'' the following: ``has not met the 
                requirement for exemplary conduct set forth in section 
                3583, 5947, or 8583 of this title, as applicable, or''; 
                and
                    (B) in the second sentence, by striking ``If the 
                Secretary concerned later determines that the officer is 
                qualified for promotion to the higher grade'' and 
                inserting ``If it is later determined by a civilian 
                official of the Department of Defense (not below the 
                level of Secretary of a military department) that the 
                officer is qualified for promotion to the higher grade 
                and, after a review of adverse information regarding the 
                requirement for exemplary conduct set forth in section 
                3583, 5947, or 8583 of this title, as applicable, the 
                officer is determined to be among the officers best 
                qualified for promotion to the higher grade''.

    (c) <<NOTE: 10 USC 624 note.>> Deadline for Uniform Regulations on 
Delay of Promotions.--
            (1) Deadline.--The Secretary of Defense shall prescribe the 
        regulations required by section 624(d) of title 10, United 
        States Code (as amended by subsection (a)(1) of this section), 
        and the regulations required by section 14311 of such title (as 
        amended by subsection (b)(1) of this section) not later than 
        March 1, 2008.
            (2) Savings clause for existing regulations.--Until the 
        Secretary of Defense prescribes regulations pursuant to 
        paragraph (1), regulations prescribed by the Secretaries of the 
        military departments under the sections referred to in paragraph 
        (1) shall remain in effect.

    (d) Technical Amendments to Clarify Date of Establishment of 
Promotion Lists.--
            (1) Promotion lists for active-duty list officers.--Section 
        624(a)(1) of title 10, United States Code, is amended by adding 
        at the end the following new sentence: ``A promotion list is 
        considered to be established under this section as of the date 
        of the approval of the report of the selection board under the 
        preceding sentence.''.
            (2) Promotion lists for reserve active-status list 
        officers.--Section 14308(a) of title 10, United States Code, is 
        amended by adding at the end the following new sentence: ``A 
        promotion list is considered to be established under this 
        section as of the date of the approval of the report of the 
        selection board under the preceding sentence.''.

[[Page 120 STAT. 2184]]

    (e) <<NOTE: 10 USC 624 note.>> Effective Date.--The amendments made 
by this section shall take effect on the date of the enactment of this 
Act and shall apply with respect to officers on promotion lists 
established on or after the date of the enactment of this Act.
SEC. 512. CONSIDERATION OF ADVERSE INFORMATION BY SELECTION BOARDS 
                        IN RECOMMENDATIONS ON OFFICERS TO BE 
                        PROMOTED.

    (a) Officers on Active-Duty List.--Section 616(c) of title 10, 
United States Code, is amended--
            (1) by striking ``and'' at the end of paragraph (1);
            (2) by striking the period at the end in paragraph (2) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(3) a majority of the members of the board, after 
        consideration by all members of the board of any adverse 
        information about the officer that is provided to the board 
        under section 615 of this title, finds that the officer is among 
        the officers best qualified for promotion to meet the needs of 
        the armed force concerned consistent with the requirement of 
        exemplary conduct set forth in section 3583, 5947, or 8583 of 
        this title, as applicable.''.

    (b) Officers on Reserve-Active Status List.--Section 14108(b) of 
such title is amended--
            (1) in the heading, by striking ``Majority Required.--'' and 
        inserting ``Actions Required.--'';
            (2) by striking ``and'' at the end of paragraph (1);
            (3) by striking the period at the end in paragraph (2) and 
        inserting ``; and''; and
            (4) by adding at the end the following new paragraph:
            ``(3) a majority of the members of the board, after 
        consideration by all members of the board of any adverse 
        information about the officer that is provided to the board 
        under section 14107 of this title, finds that the officer is 
        among the officers best qualified for promotion to meet the 
        needs of the armed force concerned consistent with the 
        requirement of exemplary conduct set forth in section 3583, 
        5947, or 8583 of this title, as applicable.''.

    (c) <<NOTE: 10 USC 616 note.>> Effective Date.--The amendments made 
by this section shall take effect on the date of the enactment of this 
Act and shall apply with respect to selection boards convened on or 
after that date.
SEC. 513. EXPANDED AUTHORITY FOR REMOVAL FROM REPORTS OF SELECTION 
                        BOARDS OF OFFICERS RECOMMENDED FOR 
                        PROMOTION TO GRADES BELOW GENERAL AND FLAG 
                        GRADES.

    (a) Officers on Active-Duty List.--Section 618(d) of title 10, 
United States Code, is amended--
            (1) by striking ``The name'' and inserting ``(1) Except as 
        provided in paragraph (2), the name''; and
            (2) by adding at the end the following new paragraph:

    ``(2) In the case of an officer recommended by a selection board for 
promotion to a grade below brigadier general or rear admiral (lower 
half), the name of the officer may also be removed from the report of 
the selection board by the Secretary of Defense or the Deputy Secretary 
of Defense.''.

[[Page 120 STAT. 2185]]

    (b) Officers on Reserve-Active Status List.--Section 14111(b) of 
such title is amended--
            (1) by striking ``The name'' and inserting ``(1) Except as 
        provided in paragraph (2), the name''; and
            (2) by adding at the end the following new paragraph:

    ``(2) In the case of an officer recommended by a selection board for 
promotion to a grade below brigadier general or rear admiral (lower 
half), the name of the officer may also be removed from the report of 
the selection board by the Secretary of Defense or the Deputy Secretary 
of Defense.''.
    (c) <<NOTE: 10 USC 618 note.>> Effective Date.--The amendments made 
by this section shall apply with respect to selection boards convened on 
or after the date of the enactment of this Act.
SEC. 514. SPECIAL SELECTION BOARD AUTHORITIES.

    (a) Officers on Active-Duty List.--
            (1) Boards for administrative error available only to 
        officers in or above promotion zone.--Subsection (a)(1) of 
        section 628 of title 10, United States Code, is amended by 
        inserting ``from in or above the promotion zone'' after ``for 
        selection for promotion''.
            (2) Actions treatable as material unfairness.--Subsection 
        (b)(1)(A) of such section is amended by inserting ``in a matter 
        material to the decision of the board'' after ``contrary to 
        law''.

    (b) Officers on Reserve Active-Status List.--Section 14502(b)(1)(A) 
of such title is amended by inserting ``in a matter material to the 
decision of the board'' after ``contrary to law''.
    (c) <<NOTE: 10 USC 628 note.>> Effective Date.--The amendments made 
by this section shall take effect on March 1, 2007, and shall apply with 
respect to selection boards convened on or after that date.
SEC. 515. REMOVAL FROM PROMOTION LIST OF OFFICERS NOT PROMOTED 
                        WITHIN 18 MONTHS OF APPROVAL OF LIST BY 
                        THE PRESIDENT.

    (a) Officers on Active-Duty Lists.--
            (1) Clarification of removal due to senate not giving advice 
        and consent.--Subsection (b) of section 629 of title 10, United 
        States Code, is amended--
                    (A) by inserting ``Removal Due to Senate Not Giving 
                Advice and Consent.--'' after ``(b)'' ; and
                    (B) by inserting ``to a grade for which appointment 
                is required by section 624(c) of this title to be made 
                by and with the advice and consent of the Senate'' after 
                ``the President''.
            (2) Removal after 18 months.--Such section is further 
        amended--
                    (A) by redesignating subsection (c) as subsection 
                (d); and
                    (B) by inserting after subsection (b) the following 
                new subsection (c):

    ``(c) Removal After 18 Months.--(1) If an officer whose name is on a 
list of officers approved for promotion under section 624(a) of this 
title to a grade for which appointment is required by section 624(c) of 
this title to be made by and with the advice and consent of the Senate 
is not appointed to that grade under such section during the officer's 
promotion eligibility period, the officer's name

[[Page 120 STAT. 2186]]

shall be removed from the list unless as of the end of such period the 
Senate has given its advice and consent to the appointment.
    ``(2) Before the end of the promotion eligibility period with 
respect to an officer under paragraph (1), the President may extend that 
period for purposes of paragraph (1) by an additional 12 months.
    ``(3) In this subsection, the term `promotion eligibility period' 
means, with respect to an officer whose name is on a list of officers 
approved for promotion under section 624(a) of this title to a grade for 
which appointment is required by section 624(c) of this title to be made 
by and with the advice and consent of the Senate, the period beginning 
on the date on which the list is so approved and ending on the first day 
of the eighteenth month following the month during which the list is so 
approved.''.
            (3) Cross-reference amendment.--Paragraph (1) of subsection 
        (d) of such section, as redesignated by paragraph (2)(A) of this 
        subsection, is amended by striking ``or (b)'' and inserting 
        ``(b), or (c)''.
            (4) Stylistic amendments.--Such section is further amended--
                    (A) in subsection (a), by inserting ``Removal by 
                President.--'' after ``(a)''; and
                    (B) in subsection (d) (as amended by paragraph (3)), 
                by inserting ``Continued Eligibility for Promotion.--'' 
                before ``(1)''.

    (b) Officers on Reserve Active Status List.--
            (1) Removal following return.--Section 14310 of such title 
        is amended--
                    (A) by redesignating subsection (c) as subsection 
                (d); and
                    (B) by inserting after subsection (b) the following 
                new subsection (c):

    ``(c) Removal After 18 Months.--(1) If an officer whose name is on a 
list of officers approved for promotion under section 14308(a) of this 
title to a grade for which appointment is required by section 12203(a) 
of this title to be made by and with the advice and consent of the 
Senate is not appointed to that grade under such section during the 
officer's promotion eligibility period, the officer's name shall be 
removed from the list unless as of the end of such period the Senate has 
given its advice and consent to the appointment.
    ``(2) Before the end of the promotion eligibility period with 
respect to an officer under paragraph (1), the President may extend that 
period for purposes of paragraph (1) by an additional 12 months.
    ``(3) In this subsection, the term `promotion eligibility period' 
means, with respect to an officer whose name is on a list of officers 
approved for promotion under section 14308(a) of this title to a grade 
for which appointment is required by section 12203(a) of this title to 
be made by and with the advice and consent of the Senate, the period 
beginning on the date on which the list is so approved and ending on the 
first day of the eighteenth month following the month during which the 
list is so approved.''.
            (2) Cross-reference amendment.--Paragraph (1) of subsection 
        (d) of such section, as redesignated by paragraph (1)(A) of this 
        subsection, is amended by striking ``or (b)'' and inserting 
        ``(b), or (c)''.

[[Page 120 STAT. 2187]]

    (c) Effective Date.--The amendments made by this section shall apply 
to any promotion list approved by the President after January 1, 2007.

             PART III--JOINT OFFICER MANAGEMENT REQUIREMENTS

SEC. 516. MODIFICATION AND ENHANCEMENT OF GENERAL AUTHORITIES ON 
                        MANAGEMENT OF OFFICERS WHO ARE JOINT 
                        QUALIFIED.

    (a) Redesignation of Applicability of Policies Toward Joint 
Qualification.--Subsection (a) of section 661 of title 10, United States 
Code, is amended by striking the last sentence.
    (b) Revision to General Authorities.--Subsections (b), (c), and (d) 
of such section are amended to read as follows:
    ``(b) Levels, Designation, and Numbers.--(1)(A) The Secretary of 
Defense shall establish different levels of joint qualification, as well 
as the criteria for qualification at each level. Such levels of joint 
qualification shall be established by the Secretary with the advice of 
the Chairman of the Joint Chiefs of Staff. Each level shall, as a 
minimum, have both joint education criteria and joint experience 
criteria. The purpose of establishing such qualification levels is to 
ensure a systematic, progressive, career-long development of officers in 
joint matters and to ensure that officers serving as general and flag 
officers have the requisite experience and education to be highly 
proficient in joint matters.
    ``(B) The number of officers who are joint qualified shall be 
determined by the Secretary of Defense, with the advice of the Chairman 
of the Joint Chiefs of Staff. Such number shall be large enough to meet 
the requirements of subsection (d).
    ``(2) Certain officers shall be designated as joint qualified by the 
Secretary of Defense with the advice of the Chairman of the Joint Chiefs 
of Staff.
    ``(3) An officer may be designated as joint qualified under 
paragraph (2) only if the officer--
            ``(A) meets the education and experience criteria of 
        subsection (c);
            ``(B) meets such additional criteria as prescribed by the 
        Secretary of Defense; and
            ``(C) holds the grade of captain or, in the case of the 
        Navy, lieutenant or a higher grade.

    ``(4) The authority of the Secretary of Defense under paragraph (2) 
to designate officers as joint qualified may be delegated only to the 
Deputy Secretary of Defense or an Under Secretary of Defense.
    ``(c) Education and Experience Requirements.--(1) An officer may not 
be designated as joint qualified until the officer--
            ``(A) successfully completes an appropriate program of joint 
        professional military education, as described in subsections (b) 
        and (c) of section 2155 of this title, at a joint professional 
        military education school; and
            ``(B) successfully completes--
                    ``(i) a full tour of duty in a joint assignment, as 
                described in section 664(f) of this title; or
                    ``(ii) such other assignments and experiences in a 
                manner that demonstrate the officer's mastery of 
                knowledge, skills, and abilities in joint matters, as 
                determined

[[Page 120 STAT. 2188]]

                under such regulations and policy as the Secretary of 
                Defense may prescribe.

    ``(2) Subject to paragraphs (3) through (6), the Secretary of 
Defense may waive the requirement under paragraph (1)(A) that an officer 
has successfully completed a program of education, as described in 
subsections (b) and (c) of section 2155 of this title.
    ``(3) In the case of an officer in a grade below brigadier general 
or rear admiral (lower half), a waiver under paragraph (2) may be 
granted only if--
            ``(A) the officer has completed two full tours of duty in a 
        joint duty assignment, as described in section 664(f) of this 
        title, in such a manner as to demonstrate the officer's mastery 
        of knowledge, skills, and abilities on joint matters; and
            ``(B) the Secretary of Defense determines that the types of 
        joint duty experiences completed by the officer have been of 
        sufficient breadth to prepare the officer adequately for service 
        as a general or flag officer in a joint duty assignment 
        position.

    ``(4) In the case of a general or flag officer, a waiver under 
paragraph (2) may be granted only--
            ``(A) under unusual circumstances justifying the variation 
        from the education requirement under paragraph (1)(A); and
            ``(B) under circumstances in which the waiver is necessary 
        to meet a critical need of the armed forces, as determined by 
        the Chairman of the Joint Chiefs of Staff.

    ``(5) In the case of officers in grades below brigadier general or 
rear admiral (lower half), the total number of waivers granted under 
paragraph (2) for officers in the same pay grade during a fiscal year 
may not exceed 10 percent of the total number of officers in that pay 
grade designated as joint qualified during that fiscal year.
    ``(6) There may not be more than 32 general and flag officers on 
active duty at the same time who, while holding a general or flag 
officer position, were designated joint qualified (or were selected for 
the joint specialty before October 1, 2007) and for whom a waiver was 
granted under paragraph (2).
    ``(d) Number of Joint Duty Assignments.--(1) The Secretary of 
Defense shall ensure that approximately one-half of the joint duty 
assignment positions in grades above major or, in the case of the Navy, 
lieutenant commander are filled at any time by officers who have the 
appropriate level of joint qualification.
    ``(2) The Secretary of Defense, with the advice of the Chairman of 
the Joint Chiefs of Staff, shall designate an appropriate number of 
joint duty assignment positions as critical joint duty assignment 
positions. A position may be designated as a critical joint duty 
assignment position only if the duties and responsibilities of the 
position make it important that the occupant be particularly trained in, 
and oriented toward, joint matters.
    ``(3)(A) Subject to subparagraph (B), a position designated under 
paragraph (2) may be held only by an officer who--
            ``(i) was designated as joint qualified in accordance with 
        this chapter; or
            ``(ii) was selected for the joint specialty before October 
        1, 2007.

    ``(B) The Secretary of Defense may waive the requirement in 
subparagraph (A) with respect to the assignment of an officer to a 
position designated under paragraph (2). Any such waiver shall be 
granted on a case-by-case basis. The authority of the

[[Page 120 STAT. 2189]]

Secretary to grant such a waiver may be delegated only to the Chairman 
of the Joint Chiefs of Staff.
    ``(4) The Secretary of Defense shall ensure that, of those joint 
duty assignment positions that are filled by general or flag officers, a 
substantial portion are among those positions that are designated under 
paragraph (2) as critical joint duty assignment positions.''.
    (c) Career Guidelines.--Subsection (e) of such section is amended by 
striking ``officers with the joint specialty'' and inserting ``officers 
to achieve joint qualification and for officers who have been designated 
as joint qualified''.
    (d) Technical Amendment Regarding Treatment of Certain Service.--
Subsection (f) of such section is amended by striking ``section 
619(e)(1)'' and inserting ``section 619a''.
    (e) Clerical Amendments.--
            (1) Section heading.--The heading of such section is amended 
        to read as follows:

``Sec. 661. Management policies for officers who are joint qualified''.

            (2) Table of sections.--The table of sections at the 
        beginning of chapter 38 of such title is amended by striking the 
        item relating to section 661 and inserting the following new 
        item:

``661. Management policies for officers who are joint qualified.''.

    (f) <<NOTE: 10 USC 661 note.>> Effective Date.--The amendments made 
by this section shall take effect on October 1, 2007.

    (g) <<NOTE: 10 USC 661 note.>> Treatment of Current Joint Specialty 
Officers.--For the purposes of chapter 38 of title 10, United States 
Code, and sections 154, 164, and 619a of such title, an officer who, as 
of September 30, 2007, has been selected for or has the joint specialty 
under section 661 of such title, as in effect on that date, shall be 
considered after that date to be an officer designated as joint 
qualified by the Secretary of Defense under section 661(b)(2) of such 
title, as amended by this section.

    (h) <<NOTE: 10 USC 661 note.>> Implementation Plan.--
            (1) Plan required.--Not <<NOTE: Deadline.>> later than March 
        31, 2007, the Secretary of Defense shall submit to the Committee 
        on Armed Services of the Senate and the Committee on Armed 
        Services of the House of Representatives a plan for the 
        implementation of the joint officer management system, which 
        will take effect on October 1, 2007, as provided in subsection 
        (f), as a result of the amendments made by this section and 
        other provisions of this Act to provisions of chapter 38 of 
        title 10, United States Code.
            (2) Elements of plan.--In developing the plan required by 
        this subsection, the Secretary shall pay particular attention to 
        matters related to the transition of officers from the joint 
        specialty system in effect before October 1, 2007, to the joint 
        officer management system in effect after that date. At a 
        minimum, the plan shall include the following:
                    (A) The policies and criteria to be used for 
                designating officers as joint qualified on the basis of 
                service performed by such officers before that date, had 
                the amendments made by this section and other provisions 
                of this Act to provisions of chapter 38 of title 10, 
                United States Code, taken effect before the date of the 
                enactment of this Act.

[[Page 120 STAT. 2190]]

                    (B) The policies and criteria prescribed by the 
                Secretary of Defense to be used in making determinations 
                under section 661(c)(1)(B)(ii) of such title, as amended 
                by this section.
                    (C) The recommendations of the Secretary for any 
                legislative changes that may be necessary to effectuate 
                the joint officer management system.
SEC. 517. MODIFICATION OF PROMOTION POLICY OBJECTIVES FOR JOINT 
                        OFFICERS.

    Section 662(a) of title 10, United States Code, is amended--
            (1) in paragraph (1), by inserting ``and'' after the 
        semicolon; and
            (2) by striking paragraphs (2) and (3) and inserting the 
        following new paragraph (2):
            ``(2) officers who are serving in or have served in joint 
        duty assignments are expected, as a group, to be promoted to the 
        next higher grade at a rate not less than the rate for all 
        officers of the same armed force in the same grade and 
        competitive category.''.
SEC. 518. APPLICABILITY OF JOINT DUTY ASSIGNMENT REQUIREMENTS 
                        LIMITED TO GRADUATES OF NATIONAL DEFENSE 
                        UNIVERSITY SCHOOLS.

    (a) Applicability.--Section 663 of title 10, United States Code, is 
amended--
            (1) in subsection (a), by striking ``a joint professional 
        military education school'' and inserting ``a school within the 
        National Defense University specified in subsection (c)''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``a joint 
                professional military education school'' and inserting 
                ``a school within the National Defense University 
                specified in subsection (c)''; and
                    (B) in paragraph (2), by striking ``a joint 
                professional military education school'' and inserting 
                ``a school referred to in paragraph (1)''.

    (b) Covered Schools Within NDU.--Such section is further amended by 
adding at the end the following new subsection:
    ``(c) Covered Schools Within the National Defense University.--For 
purposes of this section, a school within the National Defense 
University specified in this subsection is one of the following:
            ``(1) The National War College.
            ``(2) The Industrial College of the Armed Forces.
            ``(3) The Joint Forces Staff College.''.
SEC. 519. MODIFICATION OF CERTAIN DEFINITIONS RELATING TO 
                        JOINTNESS.

    (a) Definition of Joint Matters.--Subsection (a) of section 668 of 
title 10, United States Code, is amended to read as follows:
    ``(a) Joint Matters.--(1) In this chapter, the term `joint matters' 
means matters related to the achievement of unified action by multiple 
military forces in operations conducted across domains such as land, 
sea, or air, in space, or in the information environment, including 
matters relating to--
            ``(A) national military strategy;
            ``(B) strategic planning and contingency planning;

[[Page 120 STAT. 2191]]

            ``(C) command and control of operations under unified 
        command;
            ``(D) national security planning with other departments and 
        agencies of the United States; and
            ``(E) combined operations with military forces of allied 
        nations.

    ``(2) In the context of joint matters, the term `multiple military 
forces' refers to forces that involve participants from the armed forces 
and one or more of the following:
            ``(A) Other departments and agencies of the United States.
            ``(B) The military forces or agencies of other countries.
            ``(C) Non-governmental persons or entities.''.

    (b) Definition of Joint Duty Assignment.--Paragraph (1) of 
subsection (b) of such section is amended by striking ``That definition 
shall'' and all that follows and inserting the following: ``That 
definition--
            ``(A) shall be limited to assignments in which the officer 
        gains significant experience in joint matters; and
            ``(B) shall exclude assignments for joint training and 
        education, except an assignment as an instructor responsible for 
        preparing and presenting courses in areas of the curricula 
        designated in section 2155(c) of this title as part of a program 
        designated by the Secretary of Defense as joint professional 
        military education Phase II.''.

    (c) Definition of Critical Occupational Specialty.--Such section is 
further amended by adding at the end the following new subsection:
    ``(d) Critical Occupational Specialty.--(1) In this chapter, the 
term `critical occupational specialty' means a military occupational 
specialty involving combat operations within the combat arms, in the 
case of the Army, or the equivalent arms, in the case of the Navy, Air 
Force, and Marine Corps, that the Secretary of Defense designates as 
critical.
    ``(2) At a minimum, the Secretary of Defense shall designate as a 
critical occupational specialty under paragraph (1) any military 
occupational specialty within a combat arms (or the equivalent) that is 
experiencing a severe shortage of trained officers in that specialty, as 
determined by the Secretary.''.
    (d) Conforming Amendments.--
            (1) Initial assignment of officers with critical 
        occupational specialties.--Section 664(c) of such title is 
        amended--
                    (A) in the matter before paragraph (1) by striking 
                ``section 661(c)(2)'' and inserting ``section 
                661(c)(1)(B)'';
                    (B) by striking paragraph (1);
                    (C) by redesignating paragraph (2) as paragraph (1) 
                and, in such paragraph, by striking ``section 
                661(c)(2)'' and inserting ``section 668(d)''; and
                    (D) by redesignating paragraph (3) as paragraph (2).
            (2) Annual report on number of officers with critical 
        occupational specialties.--Section 667(3) of such title is 
        amended by striking ``section 661(c)(2)'' and inserting 
        ``section 668(d)''.

    (e) <<NOTE: 10 USC 664 note.>> Effective Date.--The amendments made 
by this section shall take effect on October 1, 2007.

[[Page 120 STAT. 2192]]

                  Subtitle B--Reserve Component Matters

                  PART I--RESERVE COMPONENT MANAGEMENT

SEC. 521. RECOGNITION OF FORMER REPRESENTATIVE G.V. `SONNY' 
                        MONTGOMERY FOR HIS 30 YEARS OF SERVICE IN 
                        THE HOUSE OF REPRESENTATIVES.

    (a) Findings.--Congress makes the following findings:
            (1) G.V. ``Sonny'' Montgomery was elected to the House of 
        Representatives in 1967 and served the people of east-central 
        Mississippi for 30 years with distinction, dedication, and 
        conviction.
            (2) Sonny Montgomery had a distinguished military career 
        both before and during his service in Congress, serving in World 
        War II and the Korean War, and retired from the Mississippi 
        National Guard with the rank of Major General.
            (3) As a Member of the House of Representatives, Sonny 
        Montgomery served on the Committee on Armed Services and served 
        with great distinction as the Chairman of the Committee on 
        Veterans' Affairs for 13 years from 1981 through 1994.
            (4) Representative Montgomery's colleagues knew him as a 
        statesman of the institution and as a tireless advocate for 
        policies that would improve the lives of persons who serve the 
        United States.
            (5) Representative Montgomery was deeply committed to all 
        members of the Armed Forces who served in combat and traveled to 
        Korea and Southeast Asia to recover remains and help determine 
        the fate of POW/MIAs from the Korean and Vietnam Wars.
            (6) Through his years of service on the Committee on Armed 
        Services, Representative Montgomery made great contributions to 
        the capabilities of the National Guard and Reserves, by 
        improving their training and equipment and by better integrating 
        them with the active force.
            (7) Under the revised GI Bill that bears his name and was 
        signed into law in 1984, Representative Montgomery brought 
        educational benefits to millions of veterans, including those 
        members who had served in the National Guard and Reserves, and 
        strengthened the all-volunteer force.
            (8) Representative Montgomery had received many honors and 
        commendations before his passing on May 12, 2006, including most 
        recently and notably the Presidential Medal of Freedom, the 
        highest civilian honor accorded by the United States.

    (b) Recognition.--Congress recognizes and commends former 
Representative G.V. ``Sonny'' Montgomery for his 30 years of service to 
benefit the people of Mississippi, members of the Armed Forces and their 
families, veterans, and the United States.
SEC. 522. REVISIONS TO RESERVE CALL-UP AUTHORITY.

    (a) Maximum Number of Days.--Subsection (a) of section 12304 of 
title 10, United States Code, is amended by striking ``270 days'' and 
inserting ``365 days.''
    (b) Fair Treatment.--Such section is further amended--
            (1) by redesignating subsection (i) as subsection (j); and
            (2) by inserting after subsection (h) the following new 
        subsection (i):

[[Page 120 STAT. 2193]]

    ``(i) Considerations for Involuntary Order to Active Duty.--(1) In 
determining which members of the Selected Reserve and Individual Ready 
Reserve will be ordered to duty without their consent under this 
section, appropriate consideration shall be given to--
            ``(A) the length and nature of previous service, to assure 
        such sharing of exposure to hazards as the national security and 
        military requirements will reasonably allow;
            ``(B) the frequency of assignments during service career;
            ``(C) family responsibilities; and
            ``(D) employment necessary to maintain the national health, 
        safety, or interest.

    ``(2) <<NOTE: Procedures.>> The Secretary of Defense shall prescribe 
such policies and procedures as the Secretary considers necessary to 
carry out this subsection.''.
SEC. 523. MILITARY RETIREMENT CREDIT FOR CERTAIN SERVICE BY 
                        NATIONAL GUARD MEMBERS PERFORMED WHILE IN 
                        A STATE DUTY STATUS IMMEDIATELY AFTER THE 
                        TERRORIST ATTACKS OF SEPTEMBER 11, 2001.

    Subsection (c) of section 514 of the National Defense Authorization 
Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3232) is amended 
by adding at the end the following new paragraph:
            ``(3) In the State of New Jersey: Bergen, Hudson, Union, and 
        Middlesex.''.

         PART II--AUTHORITIES RELATING TO GUARD AND RESERVE DUTY

SEC. 524. TITLE 10 DEFINITION OF ACTIVE GUARD AND RESERVE DUTY.

    Section 101 of title 10, United States Code, is amended--
            (1) by adding at the end of subsection (b) the following new 
        paragraph:
            ``(16) The term `Active Guard and Reserve' means a member of 
        a reserve component who is on active duty pursuant to section 
        12301(d) of this title or, if a member of the Army National 
        Guard or Air National Guard, is on full-time National Guard duty 
        pursuant to section 502(f) of title 32, and who is performing 
        Active Guard and Reserve duty.''; and
            (2) in paragraph (6)(A) of subsection (d)--
                    (A) by striking ``or full-time National Guard duty'' 
                after ``means active duty''; and
                    (B) by striking ``, pursuant to an order to active 
                duty or full-time National Guard duty'' and inserting 
                ``pursuant to an order to full-time National Guard 
                duty,''.
SEC. 525. AUTHORITY FOR ACTIVE GUARD AND RESERVE DUTIES TO INCLUDE 
                        SUPPORT OF OPERATIONAL MISSIONS ASSIGNED 
                        TO THE RESERVE COMPONENTS AND INSTRUCTION 
                        AND TRAINING OF ACTIVE-DUTY PERSONNEL.

    (a) AGR Duty Under Title 10.--Subsections (a) and (b) of section 
12310 of title 10, United States Code, are amended to read as follows:
    ``(a) Authority.--(1) The Secretary concerned may order a member of 
a reserve component under the Secretary's jurisdiction to active duty 
pursuant to section 12301(d) of this title to perform

[[Page 120 STAT. 2194]]

Active Guard and Reserve duty organizing, administering, recruiting, 
instructing, or training the reserve components.
    ``(2) A Reserve ordered to active duty under paragraph (1) shall be 
ordered in the Reserve's reserve grade. While so serving, the Reserve 
continues to be eligible for promotion as a Reserve, if otherwise 
qualified.
    ``(b) Duties.--A Reserve on active duty under subsection (a) may 
perform the following additional duties to the extent that the 
performance of those duties does not interfere with the performance of 
the Reserve's primary Active Guard and Reserve duties described in 
subsection (a)(1):
            ``(1) Supporting operations or missions assigned in whole or 
        in part to the reserve components.
            ``(2) Supporting operations or missions performed or to be 
        performed by--
                    ``(A) a unit composed of elements from more than one 
                component of the same armed force; or
                    ``(B) a joint forces unit that includes--
                          ``(i) one or more reserve component units; or
                          ``(ii) a member of a reserve component whose 
                      reserve component assignment is in a position in 
                      an element of the joint forces unit.
            ``(3) Advising the Secretary of Defense, the Secretaries of 
        the military departments, the Joint Chiefs of Staff, and the 
        commanders of the combatant commands regarding reserve component 
        matters.
            ``(4) Instructing or training in the United States or the 
        Commonwealth of Puerto Rico or possessions of the United States 
        of--
                    ``(A) active-duty members of the armed forces;
                    ``(B) members of foreign military forces (under the 
                same authorities and restrictions applicable to active-
                duty members providing such instruction or training);
                    ``(C) Department of Defense contractor personnel; or
                    ``(D) Department of Defense civilian employees.''.

    (b) Military Technicians Under Title 10.--Section 10216(a) of such 
title is amended--
            (1) in paragraph (1)(C), by striking ``administration and'' 
        and inserting ``organizing, administering, instructing, or''; 
        and
            (2) by adding at the end the following new paragraph:

    ``(3) A military technician (dual status) who is employed under 
section 3101 of title 5 may perform the following additional duties to 
the extent that the performance of those duties does not interfere with 
the performance of the primary duties described in paragraph (1):
            ``(A) Supporting operations or missions assigned in whole or 
        in part to the technician's unit.
            ``(B) Supporting operations or missions performed or to be 
        performed by--
                    ``(i) a unit composed of elements from more than one 
                component of the technician's armed force; or
                    ``(ii) a joint forces unit that includes--
                          ``(I) one or more units of the technician's 
                      component; or
                          ``(II) a member of the technician's component 
                      whose reserve component assignment is in a 
                      position in an element of the joint forces unit.

[[Page 120 STAT. 2195]]

            ``(C) Instructing or training in the United States or the 
        Commonwealth of Puerto Rico or possessions of the United States 
        of--
                    ``(i) active-duty members of the armed forces;
                    ``(ii) members of foreign military forces (under the 
                same authorities and restrictions applicable to active-
                duty members providing such instruction or training);
                    ``(iii) Department of Defense contractor personnel; 
                or
                    ``(iv) Department of Defense civilian employees.''.

    (c) National Guard Title 32 Training Duty.--Section 502(f) of title 
32, United States Code, title is amended--
            (1) by redesignating paragraphs (1) and (2) as subparagraphs 
        (A) and (B), respectively;
            (2) by inserting ``(1)'' before ``Under regulations''; and
            (3) by striking the last sentence and inserting the 
        following:

    ``(2) The training or duty ordered to be performed under paragraph 
(1) may include the following:
            ``(A) Support of operations or missions undertaken by the 
        member's unit at the request of the President or Secretary of 
        Defense.
            ``(B) Support of training operations and training missions 
        assigned in whole or in part to the National Guard by the 
        Secretary concerned, but only to the extent that such training 
        missions and training operations--
                    ``(i) are performed in the United States or the 
                Commonwealth of Puerto Rico or possessions of the United 
                States; and
                    ``(ii) are only to instruct active duty military, 
                foreign military (under the same authorities and 
                restrictions applicable to active duty troops), 
                Department of Defense contractor personnel, or 
                Department of Defense civilian employees.

    ``(3) Duty without pay shall be considered for all purposes as if it 
were duty with pay.''.
    (d) National Guard Technicians Under Title 32.--Section 709(a) of 
title 32, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking ``administration and'' and inserting 
                ``organizing, administering, instructing, or''; and
                    (B) by striking ``and'' at the end of such 
                paragraph;
            (2) by striking the period at the end of paragraph (2) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(3) the performance of the following additional duties to 
        the extent that the performance of those duties does not 
        interfere with the performance of the duties described by 
        paragraphs (1) and (2):
                    ``(A) Support of operations or missions undertaken 
                by the technician's unit at the request of the President 
                or the Secretary of Defense.
                    ``(B) Support of Federal training operations or 
                Federal training missions assigned in whole or in part 
                to the technician's unit.
                    ``(C) Instructing or training in the United States 
                or the Commonwealth of Puerto Rico or possessions of the 
                United States of--
                          ``(i) active-duty members of the armed forces;

[[Page 120 STAT. 2196]]

                          ``(ii) members of foreign military forces 
                      (under the same authorities and restrictions 
                      applicable to active-duty members providing such 
                      instruction or training);
                          ``(iii) Department of Defense contractor 
                      personnel; or
                          ``(iv) Department of Defense civilian 
                      employees.''.
SEC. 526. GOVERNOR'S AUTHORITY TO ORDER MEMBERS TO ACTIVE GUARD 
                        AND RESERVE DUTY.

    (a) In General.--Chapter 3 of title 32, United States Code, is 
amended by adding at the end the following new section:

``Sec. 328. Active Guard and Reserve duty: Governor's authority

    ``(a) Authority.--The Governor of a State or the Commonwealth of 
Puerto Rico, Guam, or the Virgin Islands, or the commanding general of 
the District of Columbia National Guard, as the case may be, with the 
consent of the Secretary concerned, may order a member of the National 
Guard to perform Active Guard and Reserve duty, as defined by section 
101(d)(6) of title 10, pursuant to section 502(f) of this title.
    ``(b) Duties.--A member of the National Guard performing duty under 
subsection (a) may perform the additional duties specified in section 
502(f)(2) of this title to the extent that the performance of those 
duties does not interfere with the performance of the member's primary 
Active Guard and Reserve duties of organizing, administering, 
recruiting, instructing, and training the reserve components.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``328. Active Guard and Reserve duty: Governor's authority.''.

SEC. 527. EXPANSION OF OPERATIONS OF CIVIL SUPPORT TEAMS.

    (a) In General.--Section 12310(c) of title 10, United States Code, 
is amended--
            (1) in paragraph (1)--
                    (A) by striking ``involving--'' and inserting 
                ``involving any of the following:''; and
                    (B) by striking subparagraphs (A) and (B) and 
                inserting the following:
            ``(A) The use or threatened use of a weapon of mass 
        destruction (as defined in section 12304(i)(2) of this title) in 
        the United States.
            ``(B) A terrorist attack or threatened terrorist attack in 
        the United States that results, or could result, in catastrophic 
        loss of life or property.
            ``(C) The intentional or unintentional release of nuclear, 
        biological, radiological, or toxic or poisonous chemical 
        materials in the United States that results, or could result, in 
        catastrophic loss of life or property.
            ``(D) A natural or manmade disaster in the United States 
        that results in, or could result in, catastrophic loss of life 
        or property.'';
            (2) by amending paragraph (3) to read as follows:

    ``(3) A Reserve may perform duty described in paragraph (1) only 
while assigned to a reserve component weapons of mass destruction civil 
support team.''; and

[[Page 120 STAT. 2197]]

            (3) by adding at the end the following new paragraph:

    ``(7) In this subsection, the term `United States' includes the 
Commonwealth of Puerto Rico, Guam, and the Virgin Islands.''.
    (b) Technical and Conforming Amendments.--Such section is further 
amended--
            (1) by striking the subsection heading and inserting 
        ``Operations Relating to Defense Against Weapons of Mass 
        Destruction and Terrorist Attacks.--'';
            (2) in paragraph (5), by striking ``rapid assessment element 
        team'' and inserting ``weapons of mass destruction civil support 
        team''; and
            (3) in paragraph (6)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``paragraph (3)'' and inserting ``paragraphs 
                (1) and (3)''; and
                    (B) in subparagraph (B), by striking ``paragraph 
                (3)(B)'' and inserting ``paragraph (3)''.
SEC. 528. MODIFICATION OF AUTHORITIES RELATING TO THE COMMISSION 
                        ON THE NATIONAL GUARD AND RESERVES.

    (a) Annuities and Pay of Members on Federal Reemployment.--
Subsection (e) of section 513 of the Ronald W. Reagan National Defense 
Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 
1882), as amended by section 516 of the National Defense Authorization 
Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3237), is 
further amended by adding at the end the following new paragraph:
    ``(3) If warranted by circumstances described in subparagraph (A) or 
(B) of section 8344(i)(1) of title 5, United States Code, or by 
circumstances described in subparagraph (A) or (B) of section 8468(f)(1) 
of such title, as applicable, the chairman of the Commission may 
exercise, with respect to the members of the Commission, the same waiver 
authority as would be available to the Director of the Office of 
Personnel Management under such section.''.
    (b) Final Report.--Subsection (f)(2) of such section 513 (118 Stat. 
1882) is amended by striking ``Not later than one year after the first 
meeting of the Commission'' and inserting ``Not later than January 31, 
2008''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as of October 28, 2004, as if included in the enactment of the 
Ronald W. Reagan National Defense Authorization Act for Fiscal Year 
2005. The amendment made by subsection (a) shall apply to members of the 
Commission on the National Guard and Reserves appointed on or after that 
date.
SEC. 529. ADDITIONAL MATTERS TO BE REVIEWED BY COMMISSION ON THE 
                        NATIONAL GUARD AND RESERVES.

    (a) Additional Matters To Be Reviewed by Commission.--The Commission 
on the National Guard and Reserves shall include among the matters it 
studies (in addition to the matters specified in subsection (c) of the 
commission charter) each of the following:
            (1) National guard bureau enhancement proposals.--The 
        advisability and feasibility of implementing the provisions of 
        S. 2658 and H.R. 5200 of the 109th Congress, as introduced in 
        the Senate and the House of Representatives, respectively, on 
        April 26, 2006.
            (2) Chief of national guard bureau.--As an alternative to 
        implementation of the provisions of the bills specified in

[[Page 120 STAT. 2198]]

        paragraph (1) that provide for the Chief of the National Guard 
        Bureau to be a member of the Joint Chiefs of Staff and to hold 
        the grade of general, the advisability and feasibility of 
        providing for the Chief of the National Guard Bureau to hold the 
        grade of general in the performance of the current duties of 
        that office.
            (3) National guard officers authority to command.--The 
        advisability and feasibility of implementing the provisions of 
        section 544 of H.R. 5122 of the 109th Congress, as passed by the 
        House of Representatives on May 11, 2006.
            (4) National guard equipment and funding requirements.--The 
        adequacy of the Department of Defense processes for defining the 
        equipment and funding necessary for the National Guard to 
        conduct both its responsibilities under title 10, United States 
        Code, and its responsibilities under title 32, United States 
        Code, including homeland defense and related homeland missions, 
        including as part of such study--
                    (A) consideration of the extent to which those 
                processes should be developed taking into consideration 
                the views of the Chief of the National Guard Bureau, as 
                well as the views of the 54 Adjutant Generals and the 
                views of the Chiefs of the Army National Guard and the 
                Air Guard; and
                    (B) whether there should be an improved means by 
                which National Guard equipment requirements are 
                validated by the Joint Chiefs of Staff and are 
                considered for funding by the Secretaries of the Army 
                and Air Force.

    (b) Priority Review and Report.--
            (1) Priority review.--The Commission on the National Guard 
        and Reserves shall carry out its study of the matters specified 
        in paragraphs (1), (2), and (3) of subsection (a) on a priority 
        basis, with a higher priority for matters under those paragraphs 
        relating to the grade and functions of the Chief of the National 
        Guard Bureau.
            (2) Report.--In addition to the reports required under 
        subsection (f) of the commission charter, the Commission shall 
        submit to the Committee on Armed Services of the Senate and the 
        Committee on Armed Services of the House of Representatives an 
        interim report, not later than March 1, 2007, specifically on 
        the matters covered by paragraph (1). In such report, the 
        Commission shall set forth its findings and any recommendations 
        it considers appropriate with respect to those matters.

    (c) Commission Charter Defined.--For purposes of this section, the 
term ``commission charter'' means section 513 of the Ronald W. Reagan 
National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-
375; 118 Stat. 1880).

                   Subtitle C--Education and Training

                        PART I--SERVICE ACADEMIES

SEC. 531. EXPANSION OF SERVICE ACADEMY EXCHANGE PROGRAMS WITH 
                        FOREIGN MILITARY ACADEMIES.

    (a) United States Military Academy.--

[[Page 120 STAT. 2199]]

            (1) Number of participants in exchange program.--Subsection 
        (b) of section 4345 of title 10, United States Code, is amended 
        by striking ``24'' and inserting ``100''.
            (2) Costs and expenses.--Subsection (c) of such section is 
        amended--
                    (A) by striking ``for the Academy'' in paragraph (3) 
                and all that follows in that paragraph and inserting 
                ``for the Academy and such additional funds as may be 
                available to the Academy from a source other than 
                appropriated funds to support cultural immersion, 
                regional awareness, or foreign language training 
                activities in connection with the exchange program.''; 
                and
                    (B) by adding at the end the following new 
                paragraph:

    ``(4) Expenditures in support of the exchange program from funds 
appropriated for the Academy may not exceed $1,000,000 during any fiscal 
year.''.
    (b) United States Naval Academy.--
            (1) Number of participants in exchange program.--Subsection 
        (b) of section 6957a of title 10, United States Code, is amended 
        by striking ``24'' and inserting ``100''.
            (2) Costs and expenses.--Subsection (c) of such section is 
        amended--
                    (A) by striking ``for the Academy'' in paragraph (3) 
                and all that follows in that paragraph and inserting 
                ``for the Academy and such additional funds as may be 
                available to the Academy from a source other than 
                appropriated funds to support cultural immersion, 
                regional awareness, or foreign language training 
                activities in connection with the exchange program.''; 
                and
                    (B) by adding at the end the following new 
                paragraph:

    ``(4) Expenditures in support of the exchange program from funds 
appropriated for the Naval Academy may not exceed $1,000,000 during any 
fiscal year.''.
    (c) United States Air Force Academy.--
            (1) Number of participants in exchange program.--Subsection 
        (b) of section 9345 of title 10, United States Code, is amended 
        by striking ``24'' and inserting ``100''.
            (2) Costs and expenses.--Subsection (c) of such section is 
        amended--
                    (A) by striking ``for the Academy'' in paragraph (3) 
                and all that follows in that paragraph and inserting 
                ``for the Academy and such additional funds as may be 
                available to the Academy from a source other than 
                appropriated funds to support cultural immersion, 
                regional awareness, or foreign language training 
                activities in connection with the exchange program.''; 
                and
                    (B) by adding at the end the following new 
                paragraph:

    ``(4) Expenditures in support of the exchange program from funds 
appropriated for the Academy may not exceed $1,000,000 during any fiscal 
year.''.
    (d) <<NOTE: 10 USC 4345 note.>> Effective Dates.--The amendments 
made by subsection (a) shall take effect on the date of the enactment of 
this Act. The amendments made by subsections (b) and (c) shall take 
effect on October 1, 2008.

[[Page 120 STAT. 2200]]

SEC. 532. REVISION AND CLARIFICATION OF REQUIREMENTS WITH RESPECT 
                        TO SURVEYS AND REPORTS CONCERNING SEXUAL 
                        HARASSMENT AND SEXUAL VIOLENCE AT THE 
                        SERVICE ACADEMIES.

    (a) Codification and Revision to Existing Requirement for Service 
Academy Policy on Sexual Harassment and Sexual Violence.--
            (1) United states military academy.--Chapter 403 of title 
        10, United States Code, is amended by adding at the end the 
        following new section:

``Sec. 4361. Policy on sexual harassment and sexual violence

    ``(a) Required Policy.--Under guidance prescribed by the Secretary 
of Defense, the Secretary of the Army shall direct the Superintendent of 
the Academy to prescribe a policy on sexual harassment and sexual 
violence applicable to the cadets and other personnel of the Academy.
    ``(b) Matters To Be Specified in Policy.--The policy on sexual 
harassment and sexual violence prescribed under this section shall 
include specification of the following:
            ``(1) Programs to promote awareness of the incidence of 
        rape, acquaintance rape, and other sexual offenses of a criminal 
        nature that involve cadets or other Academy personnel.
            ``(2) Procedures that a cadet should follow in the case of 
        an occurrence of sexual harassment or sexual violence, 
        including--
                    ``(A) if the cadet chooses to report an occurrence 
                of sexual harassment or sexual violence, a specification 
                of the person or persons to whom the alleged offense 
                should be reported and the options for confidential 
                reporting;
                    ``(B) a specification of any other person whom the 
                victim should contact; and
                    ``(C) procedures on the preservation of evidence 
                potentially necessary for proof of criminal sexual 
                assault.
            ``(3) Procedures for disciplinary action in cases of alleged 
        criminal sexual assault involving a cadet or other Academy 
        personnel.
            ``(4) Any other sanction authorized to be imposed in a 
        substantiated case of sexual harassment or sexual violence 
        involving a cadet or other Academy personnel in rape, 
        acquaintance rape, or any other criminal sexual offense, whether 
        forcible or nonforcible.
            ``(5) Required training on the policy for all cadets and 
        other Academy personnel, including the specific training 
        required for personnel who process allegations of sexual 
        harassment or sexual violence involving Academy personnel.

    ``(c) Annual Assessment.--(1) The Secretary of Defense, through the 
Secretary of the Army, shall direct the Superintendent to conduct at the 
Academy during each Academy program year an assessment, to be 
administered by the Department of Defense, to determine the 
effectiveness of the policies, training, and procedures of the Academy 
with respect to sexual harassment and sexual violence involving Academy 
personnel.
    ``(2) <<NOTE: Survey.>> For the assessment at the Academy under 
paragraph (1) with respect to an Academy program year that begins in an 
odd-numbered calendar year, the Secretary of the Army shall conduct 


[[Page 120 STAT. 2201]]

a survey, to be administered by the Department of Defense, of Academy 
personnel--
            ``(A) to measure--
                    ``(i) the incidence, during that program year, of 
                sexual harassment and sexual violence events, on or off 
                the Academy reservation, that have been reported to 
                officials of the Academy; and
                    ``(ii) the incidence, during that program year, of 
                sexual harassment and sexual violence events, on or off 
                the Academy reservation, that have not been reported to 
                officials of the Academy; and
            ``(B) to assess the perceptions of Academy personnel of--
                    ``(i) the policies, training, and procedures on 
                sexual harassment and sexual violence involving Academy 
                personnel;
                    ``(ii) the enforcement of such policies;
                    ``(iii) the incidence of sexual harassment and 
                sexual violence involving Academy personnel; and
                    ``(iv) any other issues relating to sexual 
                harassment and sexual violence involving Academy 
                personnel.

    ``(d) Annual Report.--(1) The Secretary of the Army shall direct the 
Superintendent of the Academy to submit to the Secretary a report on 
sexual harassment and sexual violence involving cadets or other 
personnel at the Academy for each Academy program year.
    ``(2) Each report under paragraph (1) shall include, for the Academy 
program year covered by the report, the following:
            ``(A) The number of sexual assaults, rapes, and other sexual 
        offenses involving cadets or other Academy personnel that have 
        been reported to Academy officials during the program year and, 
        of those reported cases, the number that have been 
        substantiated.
            ``(B) The policies, procedures, and processes implemented by 
        the Secretary of the Army and the leadership of the Academy in 
        response to sexual harassment and sexual violence involving 
        cadets or other Academy personnel during the program year.
            ``(C) A plan for the actions that are to be taken in the 
        following Academy program year regarding prevention of and 
        response to sexual harassment and sexual violence involving 
        cadets or other Academy personnel.

    ``(3) <<NOTE: Survey.>> Each report under paragraph (1) for an 
Academy program year that begins in an odd-numbered calendar year shall 
include the results of the survey conducted in that program year under 
subsection (c)(2).

    ``(4)(A) The Secretary of the Army shall transmit to the Secretary 
of Defense, and to the Board of Visitors of the Academy, each report 
received by the Secretary under this subsection, together with the 
Secretary's comments on the report.
    ``(B) The Secretary of Defense shall transmit each such report, 
together with the Secretary's comments on the report, to the Committee 
on Armed Services of the Senate and the Committee on Armed Services of 
the House of Representatives.''.
            (2) United states naval academy.--Chapter 603 of title 10, 
        United States Code, is amended by adding at the end the 
        following new section:

[[Page 120 STAT. 2202]]

``Sec. 6980. Policy on sexual harassment and sexual violence

    ``(a) Required Policy.--Under guidance prescribed by the Secretary 
of Defense, the Secretary of the Navy shall direct the Superintendent of 
the Naval Academy to prescribe a policy on sexual harassment and sexual 
violence applicable to the midshipmen and other personnel of the Naval 
Academy.
    ``(b) Matters To Be Specified in Policy.--The policy on sexual 
harassment and sexual violence prescribed under this section shall 
include specification of the following:
            ``(1) Programs to promote awareness of the incidence of 
        rape, acquaintance rape, and other sexual offenses of a criminal 
        nature that involve midshipmen or other Academy personnel.
            ``(2) Procedures that a midshipman should follow in the case 
        of an occurrence of sexual harassment or sexual violence, 
        including--
                    ``(A) if the midshipman chooses to report an 
                occurrence of sexual harassment or sexual violence, a 
                specification of the person or persons to whom the 
                alleged offense should be reported and the options for 
                confidential reporting;
                    ``(B) a specification of any other person whom the 
                victim should contact; and
                    ``(C) procedures on the preservation of evidence 
                potentially necessary for proof of criminal sexual 
                assault.
            ``(3) Procedures for disciplinary action in cases of alleged 
        criminal sexual assault involving a midshipman or other Academy 
        personnel.
            ``(4) Any other sanction authorized to be imposed in a 
        substantiated case of sexual harassment or sexual violence 
        involving a midshipman or other Academy personnel in rape, 
        acquaintance rape, or any other criminal sexual offense, whether 
        forcible or nonforcible.
            ``(5) Required training on the policy for all midshipmen and 
        other Academy personnel, including the specific training 
        required for personnel who process allegations of sexual 
        harassment or sexual violence involving Academy personnel.

    ``(c) Annual Assessment.--(1) The Secretary of Defense, through the 
Secretary of the Navy, shall direct the Superintendent to conduct at the 
Academy during each Academy program year an assessment, to be 
administered by the Department of Defense, to determine the 
effectiveness of the policies, training, and procedures of the Academy 
with respect to sexual harassment and sexual violence involving Academy 
personnel.
    ``(2) <<NOTE: Survey.>> For the assessment at the Academy under 
paragraph (1) with respect to an Academy program year that begins in an 
odd-numbered calendar year, the Secretary of the Navy shall conduct a 
survey, to be administered by the Department of Defense, of Academy 
personnel--
            ``(A) to measure--
                    ``(i) the incidence, during that program year, of 
                sexual harassment and sexual violence events, on or off 
                the Academy reservation, that have been reported to 
                officials of the Academy; and
                    ``(ii) the incidence, during that program year, of 
                sexual harassment and sexual violence events, on or off 
                the Academy reservation, that have not been reported to 
                officials of the Academy; and
            ``(B) to assess the perceptions of Academy personnel of--

[[Page 120 STAT. 2203]]

                    ``(i) the policies, training, and procedures on 
                sexual harassment and sexual violence involving Academy 
                personnel;
                    ``(ii) the enforcement of such policies;
                    ``(iii) the incidence of sexual harassment and 
                sexual violence involving Academy personnel; and
                    ``(iv) any other issues relating to sexual 
                harassment and sexual violence involving Academy 
                personnel.

    ``(d) Annual Report.--(1) The Secretary of the Navy shall direct the 
Superintendent of the Naval Academy to submit to the Secretary a report 
on sexual harassment and sexual violence involving midshipmen or other 
personnel at the Academy for each Academy program year.
    ``(2) Each report under paragraph (1) shall include, for the Academy 
program year covered by the report, the following:
            ``(A) The number of sexual assaults, rapes, and other sexual 
        offenses involving midshipmen or other Academy personnel that 
        have been reported to Naval Academy officials during the program 
        year and, of those reported cases, the number that have been 
        substantiated.
            ``(B) The policies, procedures, and processes implemented by 
        the Secretary of the Navy and the leadership of the Naval 
        Academy in response to sexual harassment and sexual violence 
        involving midshipmen or other Academy personnel during the 
        program year.
            ``(C) A plan for the actions that are to be taken in the 
        following Academy program year regarding prevention of and 
        response to sexual harassment and sexual violence involving 
        midshipmen or other Academy personnel.

    ``(3) <<NOTE: Survey.>> Each report under paragraph (1) for an 
Academy program year that begins in an odd-numbered calendar year shall 
include the results of the survey conducted in that program year under 
subsection (c)(2).

    ``(4)(A) The Secretary of the Navy shall transmit to the Secretary 
of Defense, and to the Board of Visitors of the Naval Academy, each 
report received by the Secretary under this subsection, together with 
the Secretary's comments on the report.
    ``(B) The Secretary of Defense shall transmit each such report, 
together with the Secretary's comments on the report, to the Committee 
on Armed Services of the Senate and the Committee on Armed Services of 
the House of Representatives.''.
            (3) United states air force academy.--Chapter 903 of title 
        10, United States Code, is amended by adding at the end the 
        following new section:

``Sec. 9361. Policy on sexual harassment and sexual violence

    ``(a) Required Policy.--Under guidance prescribed by the Secretary 
of Defense, the Secretary of the Air Force shall direct the 
Superintendent of the Academy to prescribe a policy on sexual harassment 
and sexual violence applicable to the cadets and other personnel of the 
Academy.
    ``(b) Matters to Be Specified in Policy.--The policy on sexual 
harassment and sexual violence prescribed under this section shall 
include specification of the following:
            ``(1) Programs to promote awareness of the incidence of 
        rape, acquaintance rape, and other sexual offenses of a criminal 
        nature that involve cadets or other Academy personnel.

[[Page 120 STAT. 2204]]

            ``(2) Procedures that a cadet should follow in the case of 
        an occurrence of sexual harassment or sexual violence, 
        including--
                    ``(A) if the cadet chooses to report an occurrence 
                of sexual harassment or sexual violence, a specification 
                of the person or persons to whom the alleged offense 
                should be reported and the options for confidential 
                reporting;
                    ``(B) a specification of any other person whom the 
                victim should contact; and
                    ``(C) procedures on the preservation of evidence 
                potentially necessary for proof of criminal sexual 
                assault.
            ``(3) Procedures for disciplinary action in cases of alleged 
        criminal sexual assault involving a cadet or other Academy 
        personnel.
            ``(4) Any other sanction authorized to be imposed in a 
        substantiated case of sexual harassment or sexual violence 
        involving a cadet or other Academy personnel in rape, 
        acquaintance rape, or any other criminal sexual offense, whether 
        forcible or nonforcible.
            ``(5) Required training on the policy for all cadets and 
        other Academy personnel, including the specific training 
        required for personnel who process allegations of sexual 
        harassment or sexual violence involving Academy personnel.

    ``(c) Annual Assessment.--(1) The Secretary of Defense, through the 
Secretary of the Air Force, shall direct the Superintendent to conduct 
at the Academy during each Academy program year an assessment, to be 
administered by the Department of Defense, to determine the 
effectiveness of the policies, training, and procedures of the Academy 
with respect to sexual harassment and sexual violence involving Academy 
personnel.
    ``(2) <<NOTE: Survey.>> For the assessment at the Academy under 
paragraph (1) with respect to an Academy program year that begins in an 
odd-numbered calendar year, the Secretary of the Air Force shall conduct 
a survey, to be administered by the Department of Defense, of Academy 
personnel--
            ``(A) to measure--
                    ``(i) the incidence, during that program year, of 
                sexual harassment and sexual violence events, on or off 
                the Academy reservation, that have been reported to 
                officials of the Academy; and
                    ``(ii) the incidence, during that program year, of 
                sexual harassment and sexual violence events, on or off 
                the Academy reservation, that have not been reported to 
                officials of the Academy; and
            ``(B) to assess the perceptions of Academy personnel of--
                    ``(i) the policies, training, and procedures on 
                sexual harassment and sexual violence involving Academy 
                personnel;
                    ``(ii) the enforcement of such policies;
                    ``(iii) the incidence of sexual harassment and 
                sexual violence involving Academy personnel; and
                    ``(iv) any other issues relating to sexual 
                harassment and sexual violence involving Academy 
                personnel.

    ``(d) Annual Report.--(1) The Secretary of the Air Force shall 
direct the Superintendent of the Academy to submit to the Secretary a 
report on sexual harassment and sexual violence involving cadets

[[Page 120 STAT. 2205]]

or other personnel at the Academy for each Academy program year.
    ``(2) Each report under paragraph (1) shall include, for the Academy 
program year covered by the report, the following:
            ``(A) The number of sexual assaults, rapes, and other sexual 
        offenses involving cadets or other Academy personnel that have 
        been reported to Academy officials during the program year and, 
        of those reported cases, the number that have been 
        substantiated.
            ``(B) The policies, procedures, and processes implemented by 
        the Secretary of the Air Force and the leadership of the Academy 
        in response to sexual harassment and sexual violence involving 
        cadets or other Academy personnel during the program year.
            ``(C) A plan for the actions that are to be taken in the 
        following Academy program year regarding prevention of and 
        response to sexual harassment and sexual violence involving 
        cadets or other Academy personnel.

    ``(3) <<NOTE: Survey.>> Each report under paragraph (1) for an 
Academy program year that begins in an odd-numbered calendar year shall 
include the results of the survey conducted in that program year under 
subsection (c)(2).

    ``(4)(A) The Secretary of the Air Force shall transmit to the 
Secretary of Defense, and to the Board of Visitors of the Academy, each 
report received by the Secretary under this subsection, together with 
the Secretary's comments on the report.
    ``(B) The Secretary of Defense shall transmit each such report, 
together with the Secretary's comments on the report, to the Committee 
on Armed Services of the Senate and the Committee on Armed Services of 
the House of Representatives.''.
    (b) <<NOTE: 10 USC 4361 note.>> Further Information From Cadets and 
Midshipmen at the Service Academies on Sexual Assault and Sexual 
Harassment Issues.--
            (1) Use of focus groups for years when survey not 
        required.--In any year in which the Secretary of a military 
        department is not required by law to conduct a survey at the 
        service academy under the Secretary's jurisdiction on matters 
        relating to sexual assault and sexual harassment issues at that 
        Academy, the Secretary shall provide for focus groups to be 
        conducted at that Academy for the purposes of ascertaining 
        information relating to sexual assault and sexual harassment 
        issues at that Academy.
            (2) Inclusion in report.--Information ascertained from a 
        focus group conducted pursuant to paragraph (1) shall be 
        included in the Secretary's annual report to Congress on sexual 
        harassment and sexual violence at the service academies.
            (3) Service academies.--For purposes of this subsection, the 
        term ``service academy'' means the following:
                    (A) The United States Military Academy.
                    (B) The United States Naval Academy.
                    (C) The United States Air Force Academy.

    (c) Repeal of Prior Law.--Section 527 of the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 
1469; 10 U.S.C. 4331 note) is repealed.
    (d) Clerical Amendments.--

[[Page 120 STAT. 2206]]

            (1) The table of sections at the beginning of chapter 403 of 
        title 10, United States Code, is amended by adding at the end 
        the following new item:

``4361.  Policy on sexual harassment and sexual violence.''.

            (2) The table of sections at the beginning of chapter 603 of 
        such title is amended by adding at the end the following new 
        item:

``6980.  Policy on sexual harassment and sexual violence.''.

            (3) The table of sections at the beginning of chapter 903 of 
        such title is amended by adding at the end the following new 
        item:

``9361.  Policy on sexual harassment and sexual violence.''.

SEC. 533. <<NOTE: 10 USC 4348 note.>> DEPARTMENT OF DEFENSE POLICY 
                        ON SERVICE ACADEMY AND ROTC GRADUATES 
                        SEEKING TO PARTICIPATE IN PROFESSIONAL 
                        SPORTS BEFORE COMPLETION OF THEIR ACTIVE-
                        DUTY SERVICE OBLIGATIONS.

    (a) Policy Required.--
            (1) In general.--Not <<NOTE: Deadline.>> later than July 1, 
        2007, the Secretary of Defense shall prescribe the policy of the 
        Department of Defense on--
                    (A) whether to authorize graduates of the service 
                academies and the Reserve Officers' Training Corps to 
                participate in professional sports before the completion 
                of their obligations for service on active duty as 
                commissioned officers; and
                    (B) if so, the obligations for service on active 
                duty as commissioned officers of such graduates who 
                participate in professional sports before the 
                satisfaction of the obligations referred to in 
                subparagraph (A).
            (2) Review of current policies.--In prescribing the policy, 
        the Secretary shall review current policies, practices, and 
        regulations of the military departments on the obligations for 
        service on active duty as commissioned officers of graduates of 
        the service academies and the Reserve Officers' Training Corps, 
        including policies on authorized leaves of absence and policies 
        under excess leave programs.
            (3) Considerations.--In prescribing the policy, the 
        Secretary shall take into account the following:
                    (A) The compatibility of participation in 
                professional sports (including training for professional 
                sports) with service on active duty in the Armed Forces 
                or as a member of a reserve component of the Armed 
                Forces.
                    (B) The benefits for the Armed Forces of waiving 
                obligations for service on active duty for cadets, 
                midshipmen, and commissioned officers in order to permit 
                such individuals to participate in professional sports.
                    (C) The manner in which the military departments 
                have resolved issues relating to the participation of 
                personnel in professional sports, including the extent 
                of and any reasons for, differences in the resolution of 
                such issues by such departments.
                    (D) The recoupment of the costs of education 
                provided by the service academies or under the Reserve 
                Officers'

[[Page 120 STAT. 2207]]

                Training Corps program if graduates of the service 
                academies or the Reserve Officers' Training Corps, as 
                the case may be, do not complete the period of obligated 
                service to which they have agreed by reason of 
                participation in professional sports.
                    (E) Any other matters that the Secretary considers 
                appropriate.

    (b) Elements of Policy.--The policy prescribed under subsection (a) 
shall address the following matters:
            (1) The eligibility of graduates of the service academies 
        and the Reserve Officers' Training Corps for a reduction in the 
        obligated length of service on active duty as a commissioned 
        officer otherwise required of such graduates on the basis of 
        their participation in professional sports.
            (2) Criteria for the treatment of an individual as a 
        participant or potential participant in professional sports.
            (3) The effect on obligations for service on active duty as 
        a commissioned officer of any unsatisfied obligations under 
        prior enlistment contracts or other forms of advanced education 
        assistance.
            (4) Any authorized variations in the policy that are 
        warranted by the distinctive requirements of a particular Armed 
        Force.
            (5) The eligibility of individuals for medical discharge or 
        disability benefits as a result of injuries incurred while 
        participating in professional sports.
            (6) A prospective effective date for the policy and for the 
        application of the policy to individuals serving on such 
        effective date as a commissioned officer, cadet, or midshipman.

    (c) Application of Policy to Armed Forces.--
Not <<NOTE: Deadline. Regulations.>> later than December 1, 2007, the 
Secretary of each military department shall prescribe regulations, or 
modify current regulations, in order to implement the policy prescribed 
by the Secretary of Defense under subsection (a) with respect to the 
Armed Forces under the jurisdiction of such Secretary.

         PART II--SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAMS

SEC. 535. AUTHORITY TO PERMIT MEMBERS WHO PARTICIPATE IN THE 
                        GUARANTEED RESERVE FORCES DUTY SCHOLARSHIP 
                        PROGRAM TO PARTICIPATE IN THE HEALTH 
                        PROFESSIONS SCHOLARSHIP PROGRAM AND SERVE 
                        ON ACTIVE DUTY.

    Paragraph (3) of section 2107a(b) of title 10, United States Code, 
is amended--
            (1) by inserting ``or a cadet or former cadet under this 
        section who signs an agreement under section 2122 of this 
        title,'' after ``military junior college,''; and
            (2) by inserting ``, or former cadet,'' after ``consent of 
        the cadet'' and after ``submitted by the cadet''.
SEC. 536. DETAIL OF COMMISSIONED OFFICERS AS STUDENTS AT MEDICAL 
                        SCHOOLS.

    (a) In General.--Chapter 101 of title 10, United States Code, is 
amended by inserting after section 2004 the following new section:

[[Page 120 STAT. 2208]]

``Sec. 2004a. Detail of commissioned officers as students at medical 
                        schools

    ``(a) Detail Authorized.--The Secretary of each military department 
may detail commissioned officers of the armed forces as students at 
accredited medical schools or schools of osteopathy located in the 
United States for a period of training leading to the degree of doctor 
of medicine. No more than 25 officers from each military department may 
commence such training in any single fiscal year.
    ``(b) Eligibility for Detail.--To be eligible for detail under 
subsection (a), an officer must be a citizen of the United States and 
must--
            ``(1) have served on active duty for a period of not less 
        than two years nor more than six years and be in the pay grade 
        0-3 or below as of the time the training is to begin; and
            ``(2) sign an agreement that unless sooner separated the 
        officer will--
                    ``(A) complete the educational course of medical 
                training;
                    ``(B) accept transfer or detail as a medical officer 
                within the military department concerned when the 
                officer's training is completed; and
                    ``(C) agree to serve, following completion of the 
                officer's training, on active duty (or on active duty 
                and in the Selected Reserve) for a period as specified 
                pursuant to subsection (c).

    ``(c) Service Obligation.--An agreement under subsection (c) shall 
provide that the officer shall serve on active duty for two years for 
each year or part thereof of the officer's medical training under 
subsection (a), except that the agreement may authorize the officer to 
serve a portion of the officer's service obligation on active duty and 
to complete the service obligation that remains upon separation from 
active duty in the Selected Reserve, in which case the officer shall 
serve three years in the Selected Reserve for each year or part thereof 
of the officer's medical training under subsection (a) for any service 
obligation that was not completed before separation from active duty.
    ``(d) Selection of Officers for Detail.--Officers detailed for 
medical training under subsection (a) shall be selected on a competitive 
basis by the Secretary of the military department concerned.
    ``(e) Relation of Service Obligations to Other Service 
Obligations.--Any service obligation incurred by an officer under an 
agreement entered into under subsection (b) shall be in addition to any 
service obligation incurred by the officer under any other provision of 
law or agreement.
    ``(f) Expenses.--Expenses incident to the detail of officers under 
this section shall be paid from any funds appropriated for the military 
department concerned.
    ``(g) Failure to Complete Program.--(1) An officer who is dropped 
from a program of medical training to which detailed under subsection 
(a) for deficiency in conduct or studies, or for other reasons, may be 
required to perform active duty in an appropriate military capacity in 
accordance with the active duty obligation imposed on the officer under 
regulations issued by the Secretary of Defense for purposes of this 
section.

[[Page 120 STAT. 2209]]

    ``(2) In no case shall an officer be required to serve on active 
duty under paragraph (1) for any period in excess of one year for each 
year or part thereof the officer participated in the program.
    ``(h) Limitation on Details.--No agreement detailing an officer of 
the armed forces to an accredited medical school or school of osteopathy 
may be entered into during any period in which the President is 
authorized by law to induct persons into the armed forces involuntarily. 
Nothing in this subsection shall affect any agreement entered into 
during any period when the President is not authorized by law to so 
induct persons into the armed forces''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2004 the following new item:

``2004a. Detail of commissioned officers as students at medical 
           schools.''.

SEC. 537. INCREASE IN MAXIMUM AMOUNT OF REPAYMENT UNDER EDUCATION 
                        LOAN REPAYMENT FOR OFFICERS IN SPECIFIED 
                        HEALTH PROFESSIONS.

    (a) Increase in Maximum Amount.--Section 2173(e)(2) of title 10, 
United States Code, is amended by striking ``$22,000'' and inserting 
``$60,000''.
    (b) <<NOTE: 10 USC 2173 note.>> Effective Date.--
            (1) In general.--The amendment made by subsection (a) shall 
        take effect on October 1, 2006, and shall apply to agreements 
        entered into or revised under section 2173 of title 10, United 
        States Code, on or after that date.
            (2) Prohibition on adjustment.--The adjustment required by 
        the second sentence of section 2173(e)(2) of title 10, United 
        States Code, to be made on October 1, 2006, shall not be made.
SEC. 538. HEALTH PROFESSIONS SCHOLARSHIP AND FINANCIAL ASSISTANCE 
                        PROGRAM FOR ACTIVE SERVICE.

    (a) Maximum Stipend Amount.--Section 2121(d) of title 10, United 
States Code, is amended--
            (1) by striking ``at the rate of $579 per month'' and 
        inserting ``at a monthly rate established by the Secretary of 
        Defense, but not to exceed a total of $30,000 per year''; and
            (2) by striking ``That rate'' and inserting ``The maximum 
        annual amount of the stipend''.

    (b) Maximum Annual Grant.--Section 2127(e) of such title is 
amended--
            (1) by striking ``$15,000'' and inserting ``in an amount not 
        to exceed $45,000''; and
            (2) by striking ``The amount'' and inserting ``The maximum 
        amount''.

    (c) Report on Program.--Not later than March 1, 2007, the Secretary 
of Defense shall submit to the Congress a report on the Health 
Professions Scholarship and Financial Assistance Program for Active 
Service under subchapter I of chapter 105 of title 10, United States 
Code. The report shall include the following:
            (1) An assessment of the success of each military department 
        in achieving its recruiting goals under the program during each 
        of fiscal years 2000 through 2006.
            (2) If any military department failed to achieve its 
        recruiting goals under the program during any fiscal year 
        covered by paragraph (1), an explanation of the failure of the

[[Page 120 STAT. 2210]]

        military department to achieve such goal during such fiscal 
        year.
            (3) An assessment of the adequacy of the stipend authorized 
        by section 2121(d) of title 10, United States Code, in meeting 
        the objectives of the program.
            (4) Such recommendations for legislative or administrative 
        action as the Secretary considers appropriate to enhance the 
        effectiveness of the program in meeting the annual recruiting 
        goals of the military departments for medical personnel covered 
        by the program.

    (d) <<NOTE: 10 USC 2121 note.>> Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on October 1, 2006.
            (2) Prohibition on adjustments.--The adjustments required by 
        the second sentence of subsection (d) of section 2121 of title 
        10, United States Code, and the second sentence of subsection 
        (e) of section 2127 of such title to be made in 2007 shall not 
        be made.

                      PART III--JUNIOR ROTC PROGRAM

SEC. 539. JUNIOR RESERVE OFFICERS' TRAINING CORPS INSTRUCTOR 
                        QUALIFICATIONS.

    (a) In General.--Chapter 102 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 2033. Instructor qualifications

    ``(a) In General.--In order for a retired officer or noncommissioned 
officer to be employed as an instructor in the program, the officer must 
be certified by the Secretary of the military department concerned as a 
qualified instructor in leadership, wellness and fitness, civics, and 
other courses related to the content of the program, according to the 
qualifications set forth in subsection (b)(2) or (c)(2), as appropriate.
    ``(b) Senior Military Instructors.--
            ``(1) Role.--Senior military instructors shall be retired 
        officers of the armed forces and shall serve as instructional 
        leaders who oversee the program.
            ``(2) Qualifications.--A senior military instructor shall 
        have the following qualifications:
                    ``(A) Professional military qualification, as 
                determined by the Secretary of the military department 
                concerned.
                    ``(B) Award of a baccalaureate degree from an 
                institution of higher learning.
                    ``(C) Completion of secondary education teaching 
                certification requirements for the program as 
                established by the Secretary of the military department 
                concerned.
                    ``(D) Award of an advanced certification by the 
                Secretary of the military department concerned in core 
                content areas based on--
                          ``(i) accumulated points for professional 
                      activities, services to the profession, awards, 
                      and recognitions;
                          ``(ii) professional development to meet 
                      content knowledge and instructional skills; and
                          ``(iii) performance evaluation of competencies 
                      and standards within the program through site 
                      visits and inspections.

[[Page 120 STAT. 2211]]

    ``(c) Non-Senior Military Instructors.--
            ``(1) Role.--Non-senior military instructors shall be 
        retired noncommissioned officers of the armed forces and shall 
        serve as instructional leaders and teach independently of, but 
        share program responsibilities with, senior military 
        instructors.
            ``(2) Qualifications.--A non-senior military instructor 
        shall demonstrate a depth of experience, proficiency, and 
        expertise in coaching, mentoring, and practical arts in 
        executing the program, and shall have the following 
        qualifications:
                    ``(A) Professional military qualification, as 
                determined by the Secretary of the military department 
                concerned.
                    ``(B) Award of an associates degree from an 
                institution of higher learning within five years of 
                employment.
                    ``(C) Completion of secondary education teaching 
                certification requirements for the program as 
                established by the Secretary of the military department 
                concerned.
                    ``(D) Award of an advanced certification by the 
                Secretary of the military department concerned in core 
                content areas based on--
                          ``(i) accumulated points for professional 
                      activities, services to the profession, awards, 
                      and recognitions;
                          ``(ii) professional development to meet 
                      content knowledge and instructional skills; and
                          ``(iii) performance evaluation of competencies 
                      and standards within the program through site 
                      visits and inspections.''.

    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2033. Instructor qualifications.''.

SEC. 540. EXPANSION OF MEMBERS ELIGIBLE TO BE EMPLOYED TO PROVIDE 
                        JUNIOR RESERVE OFFICERS' TRAINING CORPS 
                        INSTRUCTION.

    (a) Eligibility of ``Gray-Area'' Guard and Reserve Members.--Section 
2031 of title 10, United States Code, is amended by adding at the end 
the following new subsection:
    ``(e) Instead of, or in addition to, detailing officers and 
noncommissioned officers on active duty under subsection (c)(1) and 
authorizing the employment of retired officers and noncommissioned 
officers who are in receipt of retired pay and members of the Fleet 
Reserve and Fleet Marine Corps Reserve under subsection (d), the 
Secretary of the military department concerned may authorize qualified 
institutions to employ as administrators and instructors in the program 
officers and noncommissioned officers who are under 60 years of age and 
who, but for age, would be eligible for retired pay for non-regular 
service under section 12731 of this title and whose qualifications are 
approved by the Secretary and the institution concerned and who request 
such employment, subject to the following:
            ``(1) The Secretary concerned shall pay to the institution 
        an amount equal to one-half of the amount paid to the member by 
        the institution for any period, up to a maximum of one-half of 
        the difference between--
                    ``(A) the retired or retainer pay for an active duty 
                officer or noncommissioned officer of the same grade and 
                years of service for such period; and

[[Page 120 STAT. 2212]]

                    ``(B) the active duty pay and allowances which the 
                member would have received for that period if on active 
                duty.
            ``(2) Notwithstanding the limitation in paragraph (1), the 
        Secretary concerned may pay to the institution more than one-
        half of the amount paid to the member by the institution if (as 
        determined by the Secretary)--
                    ``(A) the institution is in an educationally and 
                economically deprived area; and
                    ``(B) the Secretary determines that such action is 
                in the national interest.
            ``(3) Payments by the Secretary concerned under this 
        subsection shall be made from funds appropriated for that 
        purpose.
            ``(4) Amounts may be paid under this subsection with respect 
        to a member after the member reaches the age of 60.
            ``(5) Notwithstanding any other provision of law, a member 
        employed by a qualified institution pursuant to an authorization 
        under this subsection is not, while so employed, considered to 
        be on active duty or inactive duty training for any purpose.''.

    (b) Clarification of Status of Retired Members Providing 
Instruction.--Subsection (d) of such section is amended in the matter 
preceding paragraph (1) by inserting ``who are in receipt of retired 
pay'' after ``retired officers and noncommissioned officers''.
SEC. 541. <<NOTE: 10 USC 2031 note.>> EXPANSION OF JUNIOR RESERVE 
                        OFFICERS' TRAINING CORPS PROGRAM.

    (a) In General.--The Secretaries of the military departments shall 
take appropriate actions to increase the number of secondary educational 
institutions at which a unit of the Junior Reserve Officers' Training 
Corps is organized under chapter 102 of title 10, United States Code.
    (b) Expansion Targets.--In increasing under subsection (a) the 
number of secondary educational institutions at which a unit of the 
Junior Reserve Officers' Training Corps is organized, the Secretaries of 
the military departments shall seek to organize units at an additional 
number of institutions as follows:
            (1) In the case of Army units, 15 institutions.
            (2) In the case of Navy units, 10 institutions.
            (3) In the case of Marine Corps units, 15 institutions.
            (4) In the case of Air Force units, 10 institutions.
SEC. 542. REVIEW OF LEGAL STATUS OF JUNIOR ROTC PROGRAM.

    (a) Review.--The Secretary of Defense shall conduct a review of the 
1976 legal opinion issued by the General Counsel of the Department of 
Defense regarding instruction of non-host unit students participating in 
Junior Reserve Officers' Training Corps programs. The review shall 
consider whether changes to law after the issuance of that opinion allow 
in certain circumstances for the arrangement for assignment of 
instructors that provides for the travel of an instructor from one 
educational institution to another once during the regular school day 
for the purposes of the Junior Reserve Officers' Training Corps program 
as an authorized arrangement that enhances administrative efficiency in 
the management of the program. If the Secretary, as a result of the

[[Page 120 STAT. 2213]]

review, determines that such authority is not available, the Secretary 
should also consider whether such authority should be available and 
whether there should be authority to waive the restrictions under 
certain circumstances.
    (b) Report.--The Secretary shall submit to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of the House 
of Representatives a report containing the results of the review not 
later than 180 days after the date of the enactment of this Act.
    (c) Interim Authority.--A current institution that has more than 70 
students and is providing support to another educational institutional 
with more than 70 students and has been providing for the assignment of 
instructors from one school to the other may continue to provide such 
support until 180 days following receipt of the report under subsection 
(b).

             PART IV--OTHER EDUCATION AND TRAINING PROGRAMS

SEC. 543. EXPANDED ELIGIBILITY FOR ENLISTED MEMBERS FOR 
                        INSTRUCTION AT NAVAL POSTGRADUATE SCHOOL.

    (a) Certificate Programs and Courses.--Subparagraph (C) of 
subsection (a)(2) of section 7045 of title 10, United States Code, is 
amended by striking ``Navy or Marine Corps'' and inserting ``armed 
forces''.
    (b) Graduate-Level Instruction.--Such subsection is further 
amended--
            (1) by redesignating subparagraph (D) as subparagraph (E); 
        and
            (2) by inserting after subparagraph (C) the following new 
        subparagraph (D):

    ``(D)(i) The Secretary may permit an eligible enlisted member of the 
armed forces to receive graduate-level instruction at the Naval 
Postgraduate School in a program leading to a master's degree in a 
technical, analytical, or engineering curriculum.
    ``(ii) To be eligible to be provided instruction under this 
subparagraph, the enlisted member must have been awarded a baccalaureate 
degree by an institution of higher education.
    ``(iii) Instruction under this subparagraph may be provided only on 
a space-available basis.
    ``(iv) An enlisted member who successfully completes a course of 
instruction under this subparagraph may be awarded a master's degree 
under section 7048 of this title.
    ``(v) <<NOTE: Regulations.>> Instruction under this subparagraph 
shall be provided pursuant to regulations prescribed by the Secretary. 
Such regulations may include criteria for eligibility of enlisted 
members for instruction under this subparagraph and specification of 
obligations for further service in the armed forces relating to receipt 
of such instruction.''.

    (c) Conforming Amendments.--Such section is further amended--
            (1) in subparagraph (E) of subsection (a)(2), as 
        redesignated by subsection (b)(1), by striking ``and (C)'' and 
        inserting ``(C), and (D)''; and
            (2) in subsection (b)(2), by striking ``(a)(2)(D)'' and 
        inserting ``(a)(2)(E)''.

[[Page 120 STAT. 2214]]

    (d) Deadline for Submission of Previously Required Report.--The 
report required by subsection (c) of section 526 of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 
3246), relating to the rationale and plans of the Navy to provide 
enlisted members an opportunity to obtain graduate degrees, shall be 
submitted, in accordance with that subsection, not later than March 30, 
2007.
    (e) Repeal of Requirement for Report on Pilot Program.--
            (1) Repeal.--Subsection (d) of section 526 of the National 
        Defense Authorization Act for Fiscal Year 2006 (Public Law 109-
        163; 119 Stat. 3246) is repealed.
            (2) Conforming amendment.--Subsection (c)(2) of such section 
        is amended by striking ``, particularly in the career fields 
        under consideration for the pilot program referred to in 
        subsection (d)''.

    (f) Report on Use of NPS and AFIT.--Not later than March 30, 2007, 
the Secretary of the Navy and the Secretary of the Air Force shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives a joint 
report on the manner by which each Secretary intends to use the Naval 
Postgraduate School and the Air Force Institute of Technology during 
fiscal years 2008 through 2013 to meet the overall requirements of the 
Navy and Marine Corps and of the Air Force for enlisted members with 
graduate degrees. The report shall include the following:
            (1) The numbers and occupational specialities of enlisted 
        members that each Secretary plans to enroll as candidates for 
        graduate degrees each year in each of the two schools.
            (2) A description of the graduate degrees that those 
        enlisted members will pursue at those schools.
            (3) Other matters that the two Secretaries jointly consider 
        to be useful for the committees to better understand the future 
        role that the two schools will each have in meeting service 
        requirements for enlisted members with graduate degrees.

                 Subtitle D--General Service Authorities

SEC. 546. TEST OF UTILITY OF TEST PREPARATION GUIDES AND EDUCATION 
                        PROGRAMS IN ENHANCING RECRUIT CANDIDATE 
                        PERFORMANCE ON THE ARMED SERVICES 
                        VOCATIONAL APTITUDE BATTERY (ASVAB) AND 
                        ARMED FORCES QUALIFICATION TEST (AFQT).

    (a) Requirement for Test.--The Secretary of Defense shall conduct a 
test of the utility of commercially available test preparation guides 
and education programs designed to assist recruit candidates achieve 
scores on military recruit qualification testing that better reflect the 
full potential of those recruit candidates in terms of aptitude and 
mental category. The test shall be conducted through the Secretaries of 
the Army, Navy, and Air Force.
    (b) Assessment of Commercially Available Guides and Programs.--The 
test shall assess commercially available test preparation guides and 
education programs designed to enhance test performance. The test 
preparation guides assessed shall test both written formats and self-
paced computer-assisted programs. Education programs assessed may test 
both self-study textbook and computer-assisted courses and instructor-
led courses.

[[Page 120 STAT. 2215]]

    (c) Objectives.--The objectives of the test are to determine the 
following:
            (1) The degree to which test preparation assistance degrades 
        test reliability and accuracy.
            (2) The degree to which test preparation assistance allows 
        more accurate testing of skill aptitudes and mental capability.
            (3) The degree to which test preparation assistance allows 
        individuals to achieve higher scores without sacrificing 
        reliability and accuracy.
            (4) What role is recommended for test preparation assistance 
        in military recruiting.

    (d) Control Group.--As part of the test, the Secretary shall 
identify a population of recruit candidates who will not receive test 
preparation assistance and will serve as a control group for the test. 
Data from recruit candidates participating in the test and data from 
recruit candidates in the control group shall be compared in terms of 
both (1) test performance, and (2) subsequent duty performance in 
training and unit settings following entry on active duty.
    (e) Number of Participants.--The Secretary shall provide test 
preparation assistance to a minimum of 2,000 recruit candidates and 
shall identify an equal number to be established as the control group 
population.
    (f) Duration of Test.--The <<NOTE: Deadline.>> Secretary shall begin 
the test not later than nine months after the date of the enactment of 
this Act. The test shall identify participants over a one-year period 
from the start of the test and shall assess duty performance for each 
participant for 18 months following entry on active duty. The last 
participant shall be identified, but other participants may not be 
identified.

    (g) Report on Findings.--Not later than six months after completion 
of the duty performance assessment of the last identified participant in 
the test, the Secretary of Defense shall submit to the Committee on 
Armed Services of the Senate and the Committee on Armed Services of the 
House of Representatives a report providing the findings of the 
Secretary with respect to each of the objectives specified in subsection 
(c) and the Secretary's recommendations.
SEC. 547. CLARIFICATION OF NONDISCLOSURE REQUIREMENTS APPLICABLE 
                        TO CERTAIN SELECTION BOARD PROCEEDINGS.

    (a) Active-Duty Selection Board Proceedings.--
            (1) Extension to all active-duty boards.--Chapter 36 of 
        title 10, United States Code, is amended by inserting after 
        section 613 the following new section:

``Sec. 613a. Nondisclosure of board proceedings

    ``(a) Nondisclosure.--The proceedings of a selection board convened 
under section 611 this title may not be disclosed to any person not a 
member of the board.
    ``(b) Prohibited Uses of Board Discussions, Deliberations, and 
Records.--The discussions and deliberations of a selection board 
described in subsection (a) and any written or documentary record of 
such discussions and deliberations--
            ``(1) are immune from legal process;
            ``(2) may not be admitted as evidence; and

[[Page 120 STAT. 2216]]

            ``(3) may not be used for any purpose in any action, suit, 
        or judicial or administrative proceeding without the consent of 
        the Secretary of the military department concerned.''.
            (2) Conforming amendment.--Section 618 of such title is 
        amended by striking subsection (f).

    (b) Reserve Selection Board Proceedings.--Section 14104 of such 
title is amended to read as follows:

``Sec. 14104. Nondisclosure of board proceedings

    ``(a) Nondisclosure.--The proceedings of a selection board convened 
under section 14101 of this title may not be disclosed to any person not 
a member of the board.
    ``(b) Prohibited Uses of Board Discussions, Deliberations, and 
Records.--The discussions and deliberations of a selection board 
described in subsection (a) and any written or documentary record of 
such discussions and deliberations--
            ``(1) are immune from legal process;
            ``(2) may not be admitted as evidence; and
            ``(3) may not be used for any purpose in any action, suit, 
        or judicial or administrative proceeding without the consent of 
        the Secretary of the military department concerned.''.

    (c) Applicability.--Section 613a of title 10, United States Code, as 
added by subsection (a), shall apply with respect to the proceedings of 
all selection boards convened under section 611 of that title, including 
selection boards convened before the date of the enactment of this Act. 
Section 14104 of such title, as amended by subsection (b), shall apply 
with respect to the proceedings of all selection boards convened under 
section 14101 of that title, including selection boards convened before 
the date of the enactment of this Act.
    (d) Clerical Amendments.--
            (1) The table of sections at the beginning of subchapter I 
        of chapter 36 of title 10, United States Code, is amended by 
        inserting after the item relating to section 613 the following 
        new item:

``613a. Nondisclosure of board proceedings.''.

            (2) The item relating to section 14104 in the table of 
        sections at the beginning of chapter 1403 of such title is 
        amended to read as follows:

``14104. Nondisclosure of board proceedings.''.

SEC. 548. REPORT ON EXTENT OF PROVISION OF TIMELY NOTICE OF LONG-
                        TERM DEPLOYMENTS.

    Not later than March 1, 2007, the Secretary of Defense shall submit 
to the Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives a report on the number of 
members of the Armed Forces (shown by service and within each service by 
reserve component and active component) who, during the period beginning 
on January 1, 2005, and ending on the date of the enactment of this Act, 
have not received at least 30 days notice (in the form of an official 
order) before a deployment that will last 180 days or more. With respect 
to members of the reserve components, the report shall describe the 
degree of compliance (or noncompliance) with Department of Defense 
policy concerning the amount of notice to be provided before long-term 
mobilizations or deployments.

[[Page 120 STAT. 2217]]

                  Subtitle E--Military Justice Matters

SEC. 551. <<NOTE: 10 USC 802 note.>> APPLICABILITY OF UNIFORM CODE 
                        OF MILITARY JUSTICE TO MEMBERS OF THE 
                        ARMED FORCES ORDERED TO DUTY OVERSEAS IN 
                        INACTIVE DUTY FOR TRAINING STATUS.

    Not <<NOTE: Regulations. Deadline.>> later than March 1, 2007, the 
Secretaries of the military departments shall prescribe regulations, or 
amend current regulations, in order to provide that members of the Armed 
Forces who are ordered to duty at locations overseas in an inactive duty 
for training status are subject to the jurisdiction of the Uniform Code 
of Military Justice, pursuant to the provisions of section 802(a)(3) of 
title 10, United States Code (article 2(a)(3) of the Uniform Code of 
Military Justice), continuously from the commencement of execution of 
such orders to the conclusion of such orders.
SEC. 552. CLARIFICATION OF APPLICATION OF UNIFORM CODE OF MILITARY 
                        JUSTICE DURING A TIME OF WAR.

    Paragraph (10) of section 802(a) of title 10, United States Code 
(article 2(a) of the Uniform Code of Military Justice), is amended by 
striking ``war'' and inserting ``declared war or a contingency 
operation''.

                   Subtitle F--Decorations and Awards

SEC. 555. AUTHORITY FOR PRESENTATION OF MEDAL OF HONOR FLAG TO 
                        LIVING MEDAL OF HONOR RECIPIENTS AND TO 
                        LIVING PRIMARY NEXT-OF-KIN OF DECEASED 
                        MEDAL OF HONOR RECIPIENTS.

    (a) Future Presentations.--Sections 3755, 6257, and 8755 of title 
10, United States Code, and section 505 of title 14, United States Code, 
are each amended--
            (1) by striking ``after October 23, 2002''; and
            (2) by adding at the end the following new sentence: ``In 
        the case of a posthumous presentation of the medal, the flag 
        shall be presented to the person to whom the medal is 
        presented.''.

    (b) <<NOTE: President. 10 USC 3755 note.>> Presentation of Flag for 
Prior Recipients of Medal of Honor.--
            (1) Living recipients.--The President shall provide for the 
        presentation of the Medal of Honor Flag as expeditiously as 
        possible after the date of the enactment of this Act to each 
        living recipient of the Medal of Honor who has not already 
        received a Medal of Honor Flag.
            (2) Survivors of deceased recipients.--In the case of 
        presentation of the Medal of Honor Flag for a recipient of the 
        Medal of Honor who was awarded the Medal of Honor before the 
        date of the enactment of this Act and who is deceased as of such 
        date (or who dies after such date and before the presentation 
        required by paragraph (1)), the President shall provide for 
        posthumous presentation of the Medal of Honor Flag, upon written 
        application therefor, to the primary living next of kin, as 
        determined under regulations or procedures prescribed by the 
        Secretary of Defense for the purposes of this paragraph (and 
        notwithstanding the amendments made by paragraph (2) of 
        subsection (a)).

[[Page 120 STAT. 2218]]

            (3) Medal of honor flag.--In this subsection, the term 
        ``Medal of Honor Flag'' means the flag designated under section 
        903 of title 36, United States Code.
SEC. 556. REVIEW OF ELIGIBILITY OF PRISONERS OF WAR FOR AWARD OF 
                        THE PURPLE HEART.

    (a) Report.--Not later than March 1, 2007, the President shall 
transmit to the Committees on Armed Services of the Senate and House of 
Representatives a report on the advisability of modifying the criteria 
for the award of the Purple Heart to authorize the award of the Purple 
Heart--
            (1) to a member of the Armed Forces who dies in captivity as 
        a prisoner of war under unknown circumstances or as a result of 
        conditions and treatment that, under criteria for eligibility 
        for the Purple Heart as in effect on the date of the enactment 
        of this Act, do not qualify the decedent for award of the Purple 
        Heart; and
            (2) to an individual who while a member of the Armed Forces 
        survives captivity as a prisoner of war, but who dies thereafter 
        as a result of disease or disability, or a result of disease and 
        condition and treatment, incurred during such captivity.

    (b) Determination.--As part of the review undertaken in order to 
prepare the report required by subsection (a), the President shall make 
a determination on the advisability of expanding eligibility for the 
award of the Purple Heart to deceased servicemembers held as a prisoner 
of war after December 7, 1941, who meet the criteria for eligibility for 
the prisoner-of-war medal under section 1128 of title 10, United States 
Code (including the criterion under subsection (e) of that section with 
respect to honorable conduct), but who do not meet the criteria for 
eligibility for the Purple Heart.
    (c) <<NOTE: President.>> Requirements.--In making the determination 
required by subsection (b), the President shall take into consideration 
the following:
            (1) The brutal treatment endured by thousands of prisoners 
        of war incarcerated by enemy forces.
            (2) The circumstance that many servicemembers held as 
        prisoners of war died during captivity due to causes that do not 
        meet the criteria for eligibility for award of the Purple Heart, 
        including starvation, abuse, the deliberate withholding of 
        medical treatment for injury or disease, or other causes.
            (3) The circumstance that some members of the Armed Forces 
        died in captivity under circumstances establishing eligibility 
        for the prisoner-of-war medal but under circumstances not 
        otherwise establishing eligibility for the Purple Heart.
            (4) The circumstance that some members and former members of 
        the Armed Forces who were held as prisoners of war and following 
        captivity were issued the prisoner-of-war medal subsequently 
        died due to a disease or disability that was incurred during 
        that captivity, without otherwise having been awarded the Purple 
        Heart due to the injury or conditions resulting in that disease 
        or disability or otherwise having been awarded the Purple Heart 
        for injury incurring during captivity.
            (5) The views of veterans service organizations, including 
        the Military Order of the Purple Heart.

[[Page 120 STAT. 2219]]

            (6) The importance that has been assigned to determining all 
        available facts before a decision is made to award the Purple 
        Heart.
            (7) The views of the Secretary of Defense and the Chairman 
        of the Joint Chiefs of Staff.
SEC. 557. <<NOTE: 10 USC note prec. 1211.>> REPORT ON DEPARTMENT 
                        OF DEFENSE PROCESS FOR AWARDING 
                        DECORATIONS.

    (a) Review.--The Secretary of Defense shall conduct a review of the 
policy, procedures, and processes of the military departments for 
awarding decorations to members of the Armed Forces.
    (b) Time Periods.--As part of the review under subsection (a), the 
Secretary shall compare the time frames of the awards process between 
active duty and reserve components--
            (1) from the time a recommendation for the award of a 
        decoration is submitted until the time the award of the 
        decoration is approved; and
            (2) from the time the award of a decoration is approved 
        until the time when the decoration is presented to the 
        recipient.

    (c) Reserve Components.--If the Secretary, in conducting the review 
under subsection (a), finds that the timeliness of the awards process 
for members of the reserve components is not the same as, or similar to, 
that for members of the active components, the Secretary shall take 
appropriate steps to address the discrepancy.
    (d) Report.--Not later than August 1, 2007, the Secretary shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives a report 
containing the Secretary's findings as a result of the review under 
subsection (a), together with a plan for implementing whatever changes 
are determined to be appropriate to the process for awarding decorations 
in order to ensure that decorations are awarded in a timely manner, to 
the extent practicable.

               Subtitle G--Matters Relating to Casualties

SEC. 561. AUTHORITY FOR RETENTION AFTER SEPARATION FROM SERVICE OF 
                        ASSISTIVE TECHNOLOGY AND DEVICES PROVIDED 
                        WHILE ON ACTIVE DUTY.

    (a) In General.--Chapter 58 of title 10, United States Code, is 
amended by inserting after section 1150 the following new section:

``Sec. 1151. Retention of assistive technology and services provided 
                        before separation

    ``(a) <<NOTE: Regulations.>> Authority.--A member of the armed 
forces who is provided an assistive technology or assistive technology 
device for a severe or debilitating illness or injury incurred or 
aggravated by such member while on active duty may, under regulations 
prescribed by the Secretary of Defense, be authorized to retain such 
assistive technology or assistive technology device upon the separation 
of the member from active service.

    ``(b) Definitions.--In this section, the terms `assistive 
technology' and `assistive technology device' have the meaning given 
those terms in section 3 of the Assistive Technology Act of 1998 (29 
U.S.C. 3002).''.

[[Page 120 STAT. 2220]]

    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1150 the following new item:

``1151. Retention of assistive technology and services provided before 
           separation.''.

SEC. 562. <<NOTE: 10 USC 1482 note.>> TRANSPORTATION OF REMAINS OF 
                        CASUALTIES DYING IN A THEATER OF COMBAT 
                        OPERATIONS.

    (a) <<NOTE: Regulations.>> Required Transportation.--In the case of 
a member of the Armed Forces who dies in a combat theater of operations 
and whose remains are returned to the United States through the mortuary 
facility at Dover Air Force Base, Delaware, the Secretary concerned, 
under regulations prescribed by the Secretary of Defense, shall provide 
transportation of the remains of that member from Dover Air Force Base 
to the applicable escorted remains destination in accordance with 
section 1482(a)(8) of title 10, United States Code, and this section.

    (b) Escorted Remains Destination.--In this section, the term 
``escorted remains destination'' means the place to which remains are 
authorized to be transported under section 1482(a)(8) of title 10, 
United States Code.
    (c) Air Transportation From Dover AFB.--
            (1) Military transportation.--If transportation of remains 
        under subsection (a) includes transportation by air, such 
        transportation (except as provided under paragraph (2)) shall be 
        made by military aircraft or military-contracted aircraft.
            (2) Alternative transportation by aircraft.--The provisions 
        of paragraph (1) shall not be applicable to the transportation 
        of remains by air to the extent that the person designated to 
        direct disposition of the remains directs otherwise.
            (3) Primary mission.--When remains are transported by 
        military aircraft or military-contracted aircraft under this 
        section, the primary mission of the aircraft providing that 
        transportation shall be the transportation of such remains. 
        However, more than one set of remains may be transported on the 
        same flight.

    (d) Escort.--
            (1) In general.--Except as provided in paragraph (2), the 
        Secretary concerned shall ensure that remains transported under 
        this section are continuously escorted from Dover Air Force Base 
        to the applicable escorted remains destination by a member of 
        the Armed Forces in an appropriate grade, as determined by the 
        Secretary.
            (2) Other escort.--If a specific military escort is 
        requested by the person designated to direct disposition of such 
        remains and the Secretary approves that request, then the 
        Secretary is not required to provide an additional military 
        escort under paragraph (1).

    (e) Honor Guard Detail.--
            (1) Provision of detail.--Except in a case in which the 
        person designated to direct disposition of remains requests that 
        no military honor guard be present, the Secretary concerned 
        shall ensure that an honor guard detail is provided in each case 
        of the transportation of remains under this section. The honor 
        guard detail shall be in addition to the escort provided for the 
        transportation of remains under section (d).

[[Page 120 STAT. 2221]]

            (2) Composition.--An honor guard detail provided under this 
        section shall consist of sufficient members of the Armed Forces 
        to perform the duties specified in paragraph (3). The members of 
        the honor guard detail shall be in uniform.
            (3) Duties.--Except to the extent that the person designated 
        to direct disposition of remains requests that any of the 
        following functions not be performed, an honor guard detail 
        under this section--
                    (A) shall--
                          (i) travel with the remains during 
                      transportation; or
                          (ii) meet the remains at the place to which 
                      transportation by air (or by rail or motor 
                      vehicle, if applicable) is made for the transfer 
                      of the remains;
                    (B) shall provide appropriate honors at the arrival 
                of the remains referred to in subparagraph (A)(ii) 
                (unless airline or other security requirements do not 
                permit such honors to be provided); and
                    (C) shall participate in the transfer of the remains 
                from an aircraft, when airport and airline security 
                requirements permit, by carrying out the remains with a 
                flag draped over the casket to a hearse or other form of 
                ground transportation for travel to a funeral home or 
                other place designated by the person designated to 
                direct disposition of such remains.

    (f) Secretary Concerned Defined.--In this section, the term 
``Secretary concerned'' has the meaning given that term in section 
101(a)(9) of title 10, United States Code.
    (g) Effective Date.--This section shall take effect at such time as 
may be prescribed by the Secretary of Defense, but not later than 
January 1, 2007.
SEC. 563. ANNUAL BUDGET DISPLAY OF FUNDS FOR POW/MIA ACTIVITIES OF 
                        DEPARTMENT OF DEFENSE.

    (a) Consolidated Budget Justification.--Chapter 9 of title 10, 
United States Code, is amended by adding at the end the following new 
section:

``Sec. 234. POW/MIA activities: display of budget information

    ``(a) Submission With Annual Budget Justification Documents.--The 
Secretary of Defense shall submit to Congress, as a part of the defense 
budget materials for a fiscal year, a consolidated budget justification 
display, in classified and unclassified form, that covers all programs 
and activities of Department of Defense POW/MIA accounting and recovery 
organizations.
    ``(b) Requirements for Budget Display.--The budget display under 
subsection (a) for a fiscal year shall include for each such 
organization the following:
            ``(1) A statement of what percentage of the requirements 
        originally requested by the organization in the budget review 
        process that the budget requests funds for.
            ``(2) A summary of actual or estimated expenditures by that 
        organization for the fiscal year during which the budget is 
        submitted and for the fiscal year preceding that year.
            ``(3) The amount in the budget for that organization.
            ``(4) A detailed explanation of the shortfalls, if any, in 
        the funding of any requirement shown pursuant to paragraph

[[Page 120 STAT. 2222]]

        (1), when compared to the amount shown pursuant to paragraph 
        (3).
            ``(5) The budget estimate for that organization for the five 
        fiscal years after the fiscal year for which the budget is 
        submitted.

    ``(c) Department of Defense POW/MIA Accounting and Recovery 
Organizations.--In this section, the term `Department of Defense POW/MIA 
accounting and recovery organization' means any of the following (and 
any successor organization):
            ``(1) The Defense Prisoner of War/Missing Personnel Office 
        (DPMO).
            ``(2) The Joint POW/MIA Accounting Command (JPAC).
            ``(3) The Armed Forces DNA Identification Laboratory 
        (AFDIL).
            ``(4) The Life Sciences Equipment Laboratory (LSEL) of the 
        Air Force.
            ``(5) Any other element of the Department of Defense the 
        mission of which (as designated by the Secretary of Defense) 
        involves the accounting for and recovery of members of the armed 
        forces who are missing in action or prisoners of war or who are 
        unaccounted for.

    ``(d) Other Definitions.--In this section:
            ``(1) The term `defense budget materials', with respect to a 
        fiscal year, means the materials submitted to Congress by the 
        Secretary of Defense in support of the budget for that fiscal 
        year.
            ``(2) The term `budget', with respect to a fiscal year, 
        means the budget for that fiscal year that is submitted to 
        Congress by the President under section 1105(a) of title 31.''.

    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``234. POW/MIA activities: display of budget information.''.

SEC. 564. <<NOTE: 10 USC 113 note.>> MILITARY SEVERELY INJURED 
                        CENTER.

    (a) Center Required.--In support of the comprehensive policy on the 
provision of assistance to severely wounded or injured servicemembers 
required by section 563 of the National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3269; 10 U.S.C. 113 
note), the Secretary of Defense shall establish within the Department of 
Defense a center to augment and support the programs and activities of 
the military departments for the provision of such assistance, including 
the programs of the military departments referred to in subsection (c).
    (b) Designation.--The center established under subsection (a) shall 
be known as the ``Military Severely Injured Center'' (in this section 
referred to as the ``Center'').
    (c) Programs of the Military Departments.--The programs of the 
military departments referred to in this subsection are the following:
            (1) The Army Wounded Warrior Support Program.
            (2) The Navy Safe Harbor Program.
            (3) The Palace HART Program of the Air Force.
            (4) The Marine for Life Injured Support Program of the 
        Marine Corps.

    (d) Activities of Center.--

[[Page 120 STAT. 2223]]

            (1) In general.--The Center shall carry out such programs 
        and activities to augment and support the programs and 
        activities of the military departments for the provision of 
        assistance to severely wounded or injured servicemembers and 
        their families as the Secretary of Defense, in consultation with 
        the Secretaries of the military departments and the heads of 
        other appropriate departments and agencies of the Federal 
        Government (including the Secretary of Labor and the Secretary 
        of Veterans Affairs), determines appropriate.
            (2) Database.--The activities of the Center under this 
        subsection shall include the establishment and maintenance of a 
        central database. The database shall be transparent and shall be 
        accessible for use by all of the programs of the military 
        departments referred to in subsection (c).

    (e) Resources.--The Secretary of Defense shall allocate to the 
Center such personnel and other resources as the Secretary of Defense, 
in consultation with the Secretaries of the military departments, 
considers appropriate in order to permit the Center to carry out 
effectively the programs and activities assigned to the Center under 
subsection (d).
SEC. 565. COMPREHENSIVE REVIEW ON PROCEDURES OF THE DEPARTMENT OF 
                        DEFENSE ON MORTUARY AFFAIRS.

    (a) Report.--As soon as practicable after the completion of a 
comprehensive review of the procedures of the Department of Defense on 
mortuary affairs, the Secretary of Defense shall submit to the Committee 
on Armed Services of the Senate and the Committee on Armed Services of 
the House of Representatives a report on the review.
    (b) Additional Elements.--In conducting the comprehensive review 
described in subsection (a), the Secretary shall address, in addition to 
any other matter covered by the review, the following:
            (1) The use of additional or increased refrigeration 
        (including icing) in combat theaters in order to enhance 
        preservation of remains.
            (2) The location of refrigeration assets further forward in 
        the field.
            (3) Specific time standards for the movement of remains from 
        combat units.
            (4) The forward location of autopsy and embalming 
        operations.
            (5) Any other matter that the Secretary considers 
        appropriate in order to expedite the return of remains to the 
        United States in a nondecomposed state.
SEC. 566. ADDITIONAL ELEMENTS OF POLICY ON CASUALTY ASSISTANCE TO 
                        SURVIVORS OF MILITARY DECEDENTS.

    Section 562(b) of the National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109-163; 119 Stat. 3267; 10 U.S.C. 1475 note) is 
amended by adding at the end the following new paragraph:
            ``(12) The process by which the Department of Defense, upon 
        request, provides information (in person and otherwise) to 
        survivors of a military decedent on the cause of, and any 
        investigation into, the death of such military decedent and on 
        the disposition and transportation of the remains of such 
        decedent, which process shall--

[[Page 120 STAT. 2224]]

                    ``(A) provide for the provision of such information 
                (in person and otherwise) by qualified Department of 
                Defense personnel;
                    ``(B) ensure that information is provided as soon as 
                possible after death and that, when requested, updates 
                are provided, in accordance with the procedures 
                established under this paragraph, in a timely manner 
                when new information becomes available;
                    ``(C) ensure that--
                          ``(i) the initial provision of such 
                      information, and each such update, relates the 
                      most complete and accurate information available 
                      at the time, subject to limitations applicable to 
                      classified information; and
                          ``(ii) incomplete or unverified information is 
                      identified as such during the course of the 
                      provision of such information or update; and
                    ``(D) include procedures by which such survivors 
                shall, upon request, receive updates or supplemental 
                information from qualified Department of Defense 
                personnel.''.
SEC. 567. <<NOTE: 10 USC 1481 note.>> REQUIREMENT FOR DEPLOYING 
                        MILITARY MEDICAL PERSONNEL TO BE TRAINED 
                        IN PRESERVATION OF REMAINS UNDER COMBAT OR 
                        COMBAT-RELATED CONDITIONS.

    (a) Requirement.--The Secretary of each military department shall 
ensure that each military health care professional under that 
Secretary's jurisdiction who is deployed to a theater of combat 
operations is trained, before such deployment, in the preservation of 
remains under combat or combat-related conditions.
    (b) Matters Covered by Training.--The training under subsection (a) 
shall include, at a minimum, the following:
            (1) Best practices and procedures for the preservation of 
        the remains of a member of the Armed Forces after death, taking 
        into account the conditions likely to be encountered and the 
        objective of returning the remains to the member's family in the 
        best possible condition.
            (2) Practical case studies based on experience of the Armed 
        Forces in a variety of climactic conditions.

    (c) Covered Military Health Care Professionals.--In this section, 
the term ``military health care professional'' means--
            (1) a physician, nurse, nurse practitioner, physician 
        assistant, or combat medic; and
            (2) any other medical personnel with medical specialties who 
        may provide direct patient care and who are designated by the 
        Secretary of the military department concerned.

    (d) Effective Date.--Subsection (a) shall apply with respect to any 
military health care professional who is deployed to a theater of combat 
operations after the end of the 90-day period beginning on the date of 
the enactment of this Act.

[[Page 120 STAT. 2225]]

     Subtitle H--Impact Aid and Defense Dependents Education System

SEC. 571. ENROLLMENT IN DEFENSE DEPENDENTS' EDUCATION SYSTEM OF 
                        DEPENDENTS OF FOREIGN MILITARY MEMBERS 
                        ASSIGNED TO SUPREME HEADQUARTERS ALLIED 
                        POWERS, EUROPE.

    (a) Temporary Enrollment Authority.--Section 1404A of the Defense 
Dependents' Education Act of 1978 (20 U.S.C. 923a) is amended--
            (1) in subsection (a)--
                    (A) by striking ``of the children'' and inserting 
                ``of--
            ``(1) the children'';
                    (B) by striking the period at the end and inserting 
                ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(2) the children of a foreign military member assigned to 
        the Supreme Headquarters Allied Powers, Europe, but only in a 
        school of the defense dependents' education system in Mons, 
        Belgium, and only through the 2010-2011 school year.''; and
            (2) by adding at the end the following new subsection:

    ``(c) Special Rules Regarding Enrollment of Dependents of Foreign 
Military Members Assigned to Supreme Headquarters Allied Powers, 
Europe.--(1) In the regulations required by subsection (a), the 
Secretary shall prescribe a methodology based on the estimated total 
number of dependents of sponsors under section 1414(2) enrolled in 
schools of the defense dependents' education system in Mons, Belgium, to 
determine the number of children described in paragraph (2) of 
subsection (a) who will be authorized to enroll under such subsection.
    ``(2) If the number of children described in paragraph (2) of 
subsection (a) who seek enrollment in schools of the defense dependents' 
education system in Mons, Belgium, exceeds the number authorized by the 
Secretary under paragraph (1), the Secretary may enroll the additional 
children on a space-available, tuition-free basis notwithstanding 
section 1404(d)(2).''.
    (b) Report on Long-Term Plan for Education of Dependents of Military 
Personnel Assigned to Shape.--Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Defense shall submit to 
Congress a report evaluating alternatives for the education of 
dependents of United States military personnel and dependents of foreign 
military personnel assigned to Supreme Headquarters Allied Powers, 
Europe, including--
            (1) an evaluation of the feasibility of establishing an 
        international school at Supreme Headquarters Allied Powers, 
        Europe; and
            (2) an estimate of the timeframe necessary for transition to 
        any new model for educating such dependents.
SEC. 572. CONTINUATION OF AUTHORITY TO ASSIST LOCAL EDUCATIONAL 
                        AGENCIES THAT BENEFIT DEPENDENTS OF 
                        MEMBERS OF THE ARMED FORCES AND DEPARTMENT 
                        OF DEFENSE CIVILIAN EMPLOYEES.

    (a) Assistance to Schools With Significant Numbers of Military 
Dependent Students.--Of the amount authorized to

[[Page 120 STAT. 2226]]

be appropriated pursuant to section 301(5) for operation and maintenance 
for Defense-wide activities, $35,000,000 shall be available only for the 
purpose of providing assistance to local educational agencies under 
subsection (a) of section 572 of the National Defense Authorization Act 
for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3271; 20 U.S.C. 
7703b).
    (b) Assistance to Schools With Enrollment Changes Due to Base 
Closures, Force Structure Changes, or Force Relocations.--Of the amount 
authorized to be appropriated pursuant to section 301(5) for operation 
and maintenance for Defense-wide activities, $10,000,000 shall be 
available only for the purpose of providing assistance to local 
educational agencies under subsection (b) of such section 572.
    (c) Local Educational Agency Defined.--In this section, the term 
``local educational agency'' has the meaning given that term in section 
8013(9) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
7713(9)).
SEC. 573. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.

    Of the amount authorized to be appropriated pursuant to section 
301(5) for operation and maintenance for Defense-wide activities, 
$5,000,000 shall be available for payments under section 363 of the 
Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
(as enacted into law by Public Law 106-398; 114 Stat. 1654A-77; 20 
U.S.C. 7703a).
SEC. 574. <<NOTE: 20 USC 7703b note.>> PLAN AND AUTHORITY TO 
                        ASSIST LOCAL EDUCATIONAL AGENCIES 
                        EXPERIENCING GROWTH IN ENROLLMENT DUE TO 
                        FORCE STRUCTURE CHANGES, RELOCATION OF 
                        MILITARY UNITS, OR BASE CLOSURES AND 
                        REALIGNMENTS.

    (a) Plan Required.--Not <<NOTE: Deadline.>> later than January 1, 
2007, the Secretary of Defense shall submit to the congressional defense 
committees a report setting forth a plan to provide assistance to local 
educational agencies that experience growth in the enrollment of 
military dependent students as a result of any of the following events:
            (1) Force structure changes.
            (2) The relocation of a military unit.
            (3) The closure or realignment of military installations 
        pursuant to defense base closure and realignment under the base 
        closure laws.

    (b) Elements.--The report required by subsection (a), and each 
updated report required by subsection (c), shall include the following:
            (1) An identification, current as of the date of the report, 
        of the total number of military dependent students who are 
        anticipated to be arriving at or departing from military 
        installations as a result of any event described in subsection 
        (a), including--
                    (A) an identification of the military installations 
                affected by such arrivals and departures;
                    (B) an estimate of the number of such students 
                arriving at or departing from each such installation; 
                and
                    (C) the anticipated schedule of such arrivals and 
                departures.
            (2) Such recommendations as the Office of Economic 
        Adjustment of the Department of Defense considers appropriate 
        for means of assisting affected local educational agencies in

[[Page 120 STAT. 2227]]

        accommodating increases in enrollment of military dependent 
        students as a result of any such event.
            (3) A plan for outreach to be conducted to affected local 
        educational agencies, commanders of military installations, and 
        members of the Armed Forces and civilian personnel of the 
        Department of Defense regarding information on the assistance to 
        be provided under the plan under subsection (a).

    (c) Updated Reports.--Not later than March 1, 2008, and annually 
thereafter to coincide with the submission of the budget of the 
President for a fiscal year under section 1105 of title 31, United 
States Code, the Secretary of Defense shall submit to the congressional 
defense committees an update of the report required by subsection (a).
    (d) Transition of Military Dependents From Department of Defense 
Dependent Schools to Other <<NOTE: Deadline.>> Schools.--During the 
period beginning on the date of the enactment of this Act and ending on 
September 30, 2011, the Secretary of Defense shall work collaboratively 
with the Secretary of Education in any efforts to ease the transition of 
military dependent students from attendance in Department of Defense 
dependent schools to attendance in schools of local educational 
agencies. The Secretary of Defense may use funds of the Department of 
Defense Education Activity to share expertise and experience of the 
Activity with local educational agencies as military dependent students 
make such transition, including such a transition resulting from the 
closure or realignment of military installations under a base closure 
law, global rebasing, and force restructuring.

    (e) Definitions.--In this section:
            (1) The term ``base closure law'' has the meaning given that 
        term in section 101 of title 10, United States Code.
            (2) The term ``local educational agency'' has the meaning 
        given that term in section 8013(9) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7713(9)).
            (3) The term ``military dependent students'' refers to--
                    (A) elementary and secondary school students who are 
                dependents of members of the Armed Forces; and
                    (B) elementary and secondary school students who are 
                dependents of civilian employees of the Department of 
                Defense.
SEC. 575. <<NOTE: 10 USC 1788 note.>> PILOT PROGRAM ON PARENT 
                        EDUCATION TO PROMOTE EARLY CHILDHOOD 
                        EDUCATION FOR DEPENDENT CHILDREN AFFECTED 
                        BY MILITARY DEPLOYMENT OR RELOCATION OF 
                        MILITARY UNITS.

    (a) Pilot Program Authorized.--Using such funds as may be 
appropriated for this purpose, the Secretary of Defense may carry out a 
pilot program on the provision of educational and support tools to the 
parents of preschool-age children--
            (1) whose parent or parents serve as members of the Armed 
        Forces on active duty (including members of the Selected Reserve 
        on active duty pursuant to a call or order to active duty of 180 
        days or more); and
            (2) who are affected by the deployment of their parent or 
        parents or the relocation of the military unit of which their 
        parent or parents are a member.

    (b) Purpose.--The purpose of the pilot program is to develop models 
for improving the capability of military child and youth

[[Page 120 STAT. 2228]]

programs on or near military installations to provide assistance to 
military parents with young children through a program of activities 
focusing on the unique needs of children described in subsection (a).
    (c) Limits on Commencement and Duration of Program.--The Secretary 
of Defense may not commence the pilot program before October 1, 2007, 
and shall conclude the pilot program not later than the end of the 
three-year period beginning on the date on which the Secretary commences 
the program.
    (d) Scope of Program.--Under the pilot program, the Secretary of 
Defense shall utilize one or more models, demonstrated through research, 
of universal access of parents of children described in subsection (a) 
to assistance under the pilot program to achieve the following goals:
            (1) The identification and mitigation of specific risk 
        factors for such children related to military life.
            (2) The maximization of the educational readiness of such 
        children.

    (e) Locations and Goals.--
            (1) Selection of participating installations.--In selecting 
        military installations to participate in the pilot program, the 
        Secretary of Defense shall limit selection to those military 
        installations whose military personnel are experiencing 
        significant transition or deployment or which are undergoing 
        transition as a result of the relocation or activation of 
        military units or activities relating to defense base closure 
        and realignment.
            (2) Selection of certain installations.--At least one of the 
        installations selected under paragraph (1) shall be a military 
        installation that will permit, under the pilot program, the 
        meaningful evaluation of a model under subsection (d) that 
        provides outreach to parents in families with a parent who is a 
        member of the National Guard or Reserve, which families live 
        more than 40 miles from the installation.
            (3) Goals of participating installations.--If a military 
        installation is selected under paragraph (1), the Secretary 
        shall require appropriate personnel at the military installation 
        to develop goals, and specific outcome measures with respect to 
        such goals, for the conduct of the pilot program at the 
        installation.
            (4) Evaluation required.--Upon completion of the pilot 
        program at a military installation, the personnel referred to in 
        paragraph (3) at the installation shall be required to conduct 
        an evaluation and assessment of the success of the pilot program 
        at the installation in meeting the goals developed for that 
        installation.

    (f) Guidelines.--As part of conducting the pilot program, the 
Secretary of Defense shall issue guidelines regarding--
            (1) the goals to be developed under subsection (e)(3);
            (2) specific outcome measures; and
            (3) the selection of curriculum and the conduct of 
        developmental screening under the pilot program.

    (g) Report.--Upon completion of the pilot program, the Secretary of 
Defense shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of Representatives a 
report on all of the evaluations prepared under subsection (e)(4) for 
the military installations participating in the

[[Page 120 STAT. 2229]]

pilot program. The report shall describe the results of the evaluations, 
and may include such recommendations for legislative or administrative 
action as the Secretary considers appropriate in light of the 
evaluations, including recommendations for the continuation of the pilot 
program.

                Subtitle I--Armed Forces Retirement Home

SEC. 578. REPORT ON LEADERSHIP AND MANAGEMENT OF THE ARMED FORCES 
                        RETIREMENT HOME.

    Not later than 30 days after the date of the enactment of this Act, 
the Secretary of Defense shall submit to the congressional defense 
committees a report evaluating the following:
            (1) The effect of changing the title of the Chief Operating 
        Officer of the Armed Forces Retirement Home to a chief executive 
        officer who will be responsible to the Secretary of Defense for 
        the overall direction, operation, and management of the 
        Retirement Home.
            (2) The effect of no longer permitting a civilian with 
        experience as a continuing care retirement community 
        professional to serve as the Director for a facility of the 
        Armed Forces Retirement Home, but to instead limit eligibility 
        for such positions to members of the Armed Forces serving on 
        active duty in a grade below brigadier general or, in the case 
        of the Navy, rear admiral (lower half).
            (3) The management of the Armed Forces Retirement Home and 
        whether or not there is a need for a greater role by members of 
        the Armed Forces serving on active duty in the overall 
        direction, operation, and management of the Retirement Home.
SEC. 579. REPORT ON LOCAL BOARDS OF TRUSTEES OF THE ARMED FORCES 
                        RETIREMENT HOME.

    Not later than 30 days after the date of the enactment of this Act, 
the Secretary of Defense shall submit to the congressional defense 
committees a report describing the following:
            (1) The current composition and activities of the Local 
        Board of Trustees of the Armed Forces Retirement Home--
        Washington under section 1516 of the Armed Forces Retirement 
        Home Act of 1991 (24 U.S.C. 416).
            (2) The current composition and activities of the Local 
        Board of Trustees of the Armed Forces Retirement Home--Gulfport 
        under such section.
            (3) The feasibility and effect of including as a member of 
        each Local Board of Trustees of the Armed Forces Retirement Home 
        a member of the Armed Forces who is serving on active duty in 
        the grade of brigadier general, or in the case of the Navy, rear 
        admiral (lower half).

[[Page 120 STAT. 2230]]

                           Subtitle J--Reports

SEC. 581. REPORT ON PERSONNEL REQUIREMENTS FOR AIRBORNE ASSETS 
                        IDENTIFIED AS LOW-DENSITY, HIGH-DEMAND 
                        AIRBORNE ASSETS.

    (a) Report Required.--Not later than 120 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 Armed 
Services of the House of Representatives a report on personnel 
requirements for airborne assets identified as Low-Density, High-Demand 
Airborne Assets based on combatant commander requirements to conduct and 
sustain operations for the global war on terrorism.
    (b) Matter To Be Included.--The report shall include the following 
for each airborne asset identified as a Low-Density, High-Demand 
Airborne Asset:
            (1) The numbers of operations and maintenance crews to meet 
        tasking contemplated to conduct operations for the global war on 
        terrorism.
            (2) The current numbers of operations and maintenance crews.
            (3) If applicable, shortages of operations and maintenance 
        crews.
            (4) Whether such shortages are addressed in the future-years 
        defense program.
            (5) Whether end-strength increases are required to meet any 
        such shortages.
            (6) Estimated manpower costs of personnel needed to address 
        shortfalls.
            (7) If applicable, the number and types of equipment needed 
        to address training shortfalls.
SEC. 582. REPORT ON FEASIBILITY OF ESTABLISHMENT OF MILITARY 
                        ENTRANCE PROCESSING COMMAND STATION ON 
                        GUAM.

    (a) Review.--The Secretary of Defense shall review the feasibility 
and cost effectiveness of establishing on Guam a station of the Military 
Entrance Processing Command to process new recruits for the Armed Forces 
who are drawn from the western Pacific region. For the purposes of the 
review, the cost effectiveness of establishing such a facility on Guam 
shall be measured, in part, against the system in effect in early 2006 
of using Hawaii and other locations for the processing of new recruits 
from Guam and other locations in the western Pacific region.
    (b) Report.--Not later than June 1, 2007, the Secretary shall submit 
to the Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives a report providing the 
results of the study under subsection (a).
SEC. 583. <<NOTE: 10 USC 113 note.>> INCLUSION IN ANNUAL 
                        DEPARTMENT OF DEFENSE REPORT ON SEXUAL 
                        ASSAULTS OF INFORMATION ON RESULTS OF 
                        DISCIPLINARY ACTIONS.

    Section 577(f)(2)(B) of the Ronald W. Reagan National Defense 
Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 
1927) is amended to read as follows:
            ``(B) A synopsis of each such substantiated case and, for 
        each such case, the disciplinary action taken in the case,

[[Page 120 STAT. 2231]]

        including the type of disciplinary or administrative sanction 
        imposed, if any.''.
SEC. 584. REPORT ON PROVISION OF ELECTRONIC COPY OF MILITARY 
                        RECORDS ON DISCHARGE OR RELEASE OF MEMBERS 
                        FROM THE ARMED FORCES.

    (a) Report Required.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report on the feasibility and 
advisability of providing an electronic copy of military records 
(including all military service, medical, and other military records) to 
members of the Armed Forces on their discharge or release from the Armed 
Forces.
    (b) Elements.--The report required by subsection (a) shall include 
the following:
            (1) An estimate of the costs of the provision of military 
        records as described in subsection (a).
            (2) An assessment of providing military records as described 
        in that subsection through the distribution of a portable, 
        readily accessible medium (such as a computer disk or other 
        similar medium) containing such records.
            (3) A description and assessment of the mechanisms required 
        to ensure the privacy of members of the Armed Forces in 
        providing military records as described in that subsection.
            (4) An assessment of the benefits to the members of the 
        Armed Forces of receiving their military records as described in 
        that subsection.
            (5) If the Secretary determines that providing military 
        records to members of the Armed Forces as described in that 
        subsection is feasible and advisable, a plan (including a 
        schedule) for providing such records to members of the Armed 
        Forces as so described in order to ensure that each member of 
        the Armed Forces is provided such records upon discharge or 
        release from the Armed Forces.
            (6) Any other matter relating to the provision of military 
        records as described in that subsection that the Secretary 
        considers appropriate.
SEC. 585. REPORT ON OMISSION OF SOCIAL SECURITY ACCOUNT NUMBERS 
                        FROM MILITARY IDENTIFICATION CARDS.

    (a) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to Congress 
a report setting forth the assessment of the Secretary of the 
feasibility of utilizing military identification cards that do not 
contain, display, or exhibit the social security account number of the 
individual identified by a military identification card.
    (b) Military Identification Card Defined.--In this section, the term 
``military identification card'' means a card or other form of 
identification used for purposes of demonstrating eligibility for any 
benefit from the Department of Defense.
SEC. 586. REPORT ON MAINTENANCE AND PROTECTION OF DATA HELD BY THE 
                        SECRETARY OF DEFENSE AS PART OF THE 
                        DEPARTMENT OF DEFENSE JOINT ADVERTISING, 
                        MARKET RESEARCH AND STUDIES (JAMRS) 
                        PROGRAM.

    Not later than 120 days after the date of the enactment of this Act, 
the Secretary of Defense shall submit to the Committees on Armed 
Services of the Senate and House of Representatives

[[Page 120 STAT. 2232]]

a report on how the data, including social security account numbers, 
held by the Secretary as part of the Joint Advertising, Market Research 
and Studies (JAMRS) program of the Department of Defense are maintained 
and protected, including a description of the security measures in place 
to prevent unauthorized access or inadvertent disclosure of such data 
that could lead to identity theft.
SEC. 587. COMPTROLLER GENERAL REPORT ON MILITARY CONSCIENTIOUS 
                        OBJECTORS.

    (a) Report Required.--Not later than September 1, 2007, the 
Comptroller General shall submit to Congress a report concerning members 
of the Armed Forces who claimed status as a military conscientious 
objector between September 11, 2001, and December 31, 2006.
    (b) Content of Report.--The report required by subsection (a) shall 
specifically address the following:
            (1) The number of all applications for status as a military 
        conscientious objector, broken down by Armed Force, including 
        the Coast Guard, and regular and reserve components.
            (2) Number of discharges or reassignments given.
            (3) The process generally used to consider applications, 
        including average processing times and any provision for 
        assignment or reassignment of members while their application is 
        pending.
            (4) Reasons for approval or disapproval of applications.
            (5) Any difference in benefits upon discharge as a military 
        conscientious objector compared to other discharges.
            (6) Pre-war statistical comparisons.

                        Subtitle K--Other Matters

SEC. 591. MODIFICATION IN DEPARTMENT OF DEFENSE CONTRIBUTIONS TO 
                        MILITARY RETIREMENT FUND.

    (a) Determination of Contributions to the Fund.--
            (1) Calculation of annual department of defense 
        contribution.--Subsection (b)(1) of section 1465 of title 10, 
        United States Code, is amended--
                    (A) in subparagraph (A)(ii), by striking ``to 
                members of'' and all that follows and inserting ``for 
                active duty (other than the Coast Guard) and for full-
                time National Guard duty (other than full-time National 
                Guard duty for training only), but excluding the amount 
                expected to be paid for any duty that would be excluded 
                for active-duty end strength purposes by section 115(i) 
                of this title.''; and
                    (B) in subparagraph (B)(ii)--
                          (i) by striking ``Ready Reserve'' and 
                      inserting ``Selected Reserve''; and
                          (ii) by striking ``Coast Guard and other than 
                      members on full-time National Guard duty other 
                      than for training) who are'' and inserting ``Coast 
                      Guard) for service''.
            (2) Quadrennial actuarial valuation.--Subsection (c)(1) of 
        such section is amended--
                    (A) in subparagraph (A), by striking ``for members 
                of the armed forces'' and all that follows through ``for 
                training

[[Page 120 STAT. 2233]]

                only)'' and inserting ``for active duty (other than the 
                Coast Guard) and for full-time National Guard duty 
                (other than full-time National Guard duty for training 
                only), but excluding the amount expected to be paid for 
                any duty that would be excluded for active-duty end 
                strength purposes by section 115(i) of this title''; and
                    (B) in subparagraph (B)--
                          (i) by striking ``Ready Reserve'' and 
                      inserting ``Selected Reserve''; and
                          (ii) by striking ``Coast Guard and other than 
                      members on full-time National Guard duty other 
                      than for training) who are'' and inserting ``Coast 
                      Guard) for service''.

    (b) Payments Into the Fund.--Section 1466(a) of such title is 
amended--
            (1) in paragraph (1)(B), by striking ``by members'' and all 
        that follows and inserting ``for active duty (other than the 
        Coast Guard) and for full-time National Guard duty (other than 
        full-time National Guard duty for training only), but excluding 
        the amount expected to be paid for any duty that would be 
        excluded for active-duty end strength purposes by section 115(i) 
        of this title''; and
            (2) in paragraph (2)(B)--
                    (A) by striking ``Ready Reserve'' and inserting 
                ``Selected Reserve''; and
                    (B) by striking ``Coast Guard and other than members 
                on full-time National Guard duty other than for 
                training) who are'' and inserting ``Coast Guard) for 
                service''.

    (c) <<NOTE: 10 USC 1465 note.>> Effective Date.--The amendments made 
by this section shall take effect on October 1, 2007.
SEC. 592. REVISION IN GOVERNMENT CONTRIBUTIONS TO MEDICARE-
                        ELIGIBLE RETIREE HEALTH CARE FUND.

    (a) Medicare-Eligible Retiree Health Care Fund.--Section 1111 of 
title 10, United States Code, is amended--
            (1) in subsection (a), by striking ``of the Department of 
        Defense'' and inserting ``of the uniformed services''; and
            (2) in subsection (b), by adding at the end the following 
        new paragraph:
            ``(5) The term `members of the uniformed services on active 
        duty' does not include a cadet at the United States Military 
        Academy, the United States Air Force Academy, or the Coast Guard 
        Academy or a midshipman at the United States Naval Academy.''.

    (b) Determination of Contributions to the Fund.--Section 1115 of 
such title is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)(B), by striking ``on active 
                duty'' and all that follows through ``training only)'' 
                and inserting the following: ``on active duty and full-
                time National Guard duty, but excluding any member who 
                would be excluded for active-duty end strength purposes 
                by section 115(i) of this title''; and
                    (B) in paragraph (2)(B)--
                          (i) by striking ``Ready Reserve'' and 
                      inserting ``Selected Reserve''; and

[[Page 120 STAT. 2234]]

                          (ii) by striking ``(other than members on 
                      full-time National Guard duty other than for 
                      training)''; and
            (2) in subsection (c)--
                    (A) in paragraph (1)(A), by striking ``on active 
                duty'' and all that follows through ``training only)'' 
                and inserting the following: ``on active duty and full-
                time National Guard duty, but excluding any member who 
                would be excluded for active-duty end strength purposes 
                by section 115(i) of this title''; and
                    (B) in paragraph (1)(B)--
                          (i) by striking ``Ready Reserve'' and 
                      inserting ``Selected Reserve''; and
                          (ii) by striking ``(other than members on 
                      full-time National Guard duty other than for 
                      training)''.

    (c) <<NOTE: 10 USC 1111 note.>> Effective Date.--The amendments made 
by this section shall take effect with respect to payments under chapter 
56 of title 10, United States Code, beginning with fiscal year 2008.
SEC. 593. DENTAL CORPS OF THE NAVY BUREAU OF MEDICINE AND SURGERY.

    (a) Deletion of References to Dental Division.--Section 5138 of 
title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking the first sentence; and
                    (B) by striking ``the Dental Division'' and 
                inserting ``the Dental Corps'';
            (2) in subsection (b), by striking ``Dental Division'' and 
        inserting ``Dental Corps''; and
            (3) in subsection (c)--
                    (A) by striking ``Dental Division'' at the end of 
                the first sentence and inserting ``Dental Corps''; and
                    (B) by striking ``that Division'' at the end of the 
                second sentence and inserting ``the Chief of the Dental 
                Corps''.

    (b) Functions of Chief of Dental Corps.--Subsection (d) of such 
section is amended to read as follows:
    ``(d) The Chief of the Dental Corps shall--
            ``(1) establish professional standards and policies for 
        dental practice;
            ``(2) initiate and recommend action pertaining to 
        complements, strength, appointments, advancement, training 
        assignment, and transfer of dental personnel; and
            ``(3) serve as the advisor for the Bureau on all matters 
        relating directly to dentistry.''.

    (c) Further Clarifying Amendments.--Subsection (c) of such section 
is further amended--
            (1) by striking ``so'' after ``shall be''; and
            (2) by striking ``that all such functions will be'' and 
        inserting ``so that all such functions are''.

    (d) Clerical Amendments.--
            (1) The heading of such section is amended to read as 
        follows:

[[Page 120 STAT. 2235]]

``Sec. 5138. Bureau of Medicine and Surgery: Dental Corps; Chief; 
                        functions''.

            (2) The item relating to such section in the table of 
        sections at the beginning of chapter 513 of such title is 
        amended to read as follows:

``5138. Bureau of Medicine and Surgery: Dental Corps; Chief; 
           functions.''.

SEC. 594. PERMANENT AUTHORITY FOR PRESENTATION OF RECOGNITION 
                        ITEMS FOR RECRUITMENT AND RETENTION 
                        PURPOSES.

    Section 2261 of title 10, United States Code, is amended by striking 
subsection (d).
SEC. 595. PERSONS AUTHORIZED TO ADMINISTER ENLISTMENT AND 
                        APPOINTMENT OATHS.

    (a) Enlistment Oath.--Section 502 of title 10, United States Code, 
is amended--
            (1) by inserting ``(a) Enlistment Oath.--'' before ``Each 
        person enlisting'';
            (2) by striking the last sentence; and
            (3) by adding at the end the following new subsection:

    ``(b) <<NOTE: Regulations.>> Who May Administer.--The oath may be 
taken before the President, the Vice-President, the Secretary of 
Defense, any commissioned officer, or any other person designated under 
regulations prescribed by the Secretary of Defense.''.

    (b) <<NOTE: Regulations.>> Oaths Generally.--Section 1031 of such 
title is amended by striking ``Any commissioned officer of any component 
of an armed force, whether or not on active duty, may administer any 
oath'' and inserting ``The President, the Vice-President, the Secretary 
of Defense, any commissioned officer, and any other person designated 
under regulations prescribed by the Secretary of Defense may administer 
any oath''.
SEC. 596. MILITARY VOTING MATTERS.

    (a) Repeal of Requirement for Periodic Inspector General 
Installation Visits for Assessment of Voting Assistance Program 
Compliance.--Section 1566 of title 10, United States Code, is amended by 
striking subsection (d).
    (b) Use of Electronic Voting Technology.--
            (1) Continuation of interim voting assistance system.--The 
        Secretary of Defense shall continue the Interim Voting 
        Assistance System (IVAS) ballot request program with respect to 
        all absent uniformed services voters (as defined under section 
        107(1) of the Uniformed and Overseas Citizens Absentee Voting 
        Act (42 U.S.C. 1973ff-6(1))) and overseas employees of the 
        Department of Defense for the general election and all elections 
        through December 31, 2006.
            (2) Reports.--
                    (A) In general.--Not later than 30 days after the 
                date of the regularly scheduled general election for 
                Federal office for November 2006, the Secretary of 
                Defense shall submit to the Congress a report setting 
                forth--
                          (i) an assessment of the success of the 
                      implementation of the Interim Voting Assistance 
                      System ballot request program carried out under 
                      paragraph (1);

[[Page 120 STAT. 2236]]

                          (ii) recommendations for continuation of the 
                      Interim Voting Assistance System and for 
                      improvements to that system; and
                          (iii) an assessment of available technologies 
                      and other means of achieving enhanced use of 
                      electronic and Internet-based capabilities under 
                      the Interim Voting Assistance System.
                    (B) Future elections.--Not later than May 15, 2007, 
                the Secretary of Defense shall submit to the Congress a 
                report setting forth in detail plans for expanding the 
                use of electronic voting technology for individuals 
                covered under the Uniformed and Overseas Citizens 
                Absentee Voting Act (42 U.S.C. 1973ff et seq.) for 
                elections through November 30, 2010.

    (c) Comptroller General Report.--Not later than March 1, 2007, the 
Comptroller General of the United States shall submit to Congress a 
report containing the assessment of the Comptroller General with respect 
to the following:
            (1) The programs and activities undertaken by the Department 
        of Defense to facilitate voter registration, transmittal of 
        ballots to absentee voters, and voting utilizing electronic 
        means of communication (such as electronic mail and fax 
        transmission) for military and civilian personnel covered by the 
        Uniformed and Overseas Citizens Absentee Voting Act (42 U.S.C. 
        1973ff et seq.).
            (2) The progress of the Department of Defense and the 
        Election Assistance Commission in developing a secure, 
        deployable system for Internet-based electronic voting pursuant 
        to the amendment made by section 567 of the Ronald W. Reagan 
        National Defense Authorization Act for Fiscal Year 2005 (Public 
        Law 108-375; 118 Stat. 1919).

    (d) Repeal of Expired Provision.--Section 1566(g)(2) of title 10, 
United States Code, is amended by striking the last sentence.
SEC. 597. PHYSICAL EVALUATION BOARDS.

    (a) In General.--
            (1) Procedural requirements.--Chapter 61 of title 10, United 
        States Code, is amended by adding at the end the following new 
        section:

``Sec. 1222. Physical evaluation boards

    ``(a) Response to Applications and Appeals.--The Secretary of each 
military department shall ensure, in the case of any member of the armed 
forces appearing before a physical evaluation board under that 
Secretary's supervision, that documents announcing a decision of the 
board in the case convey the findings and conclusions of the board in an 
orderly and itemized fashion with specific attention to each issue 
presented by the member in regard to that member's 
case. <<NOTE: Applicability.>> The requirement under the preceding 
sentence applies to a case both during initial consideration and upon 
subsequent consideration due to appeal by the member or other 
circumstance.

    ``(b) <<NOTE: Regulations.>> Liaison Officer (PEBLO) Requirements 
and Training.--(1) The Secretary of Defense shall prescribe regulations 
estab- lishing--
            ``(A) a requirement for the Secretary of each military 
        department to make available to members of the armed forces

[[Page 120 STAT. 2237]]

        appearing before physical evaluation boards operated by that 
        Secretary employees, designated as physical evaluation board 
        liaison officers, to provide advice, counsel, and general 
        information to such members on the operation of physical 
        evaluation boards operated by that Secretary; and
            ``(B) standards and guidelines concerning the training of 
        such physical evaluation board liaison officers.

    ``(2) The Secretary shall ensure compliance by the Secretary of each 
military department with physical evaluation board liaison officer 
requirements and training standards and guidelines at least once every 
three years.
    ``(c) <<NOTE: Regulations.>> Standardized Staff Training and 
Operations.--(1) The Secretary of Defense shall prescribe regulations on 
standards and guidelines concerning the physical evaluation board 
operated by each of the Secretaries of the military departments with 
regard to--
            ``(A) assignment and training of staff;
            ``(B) operating procedures; and
            ``(C) timeliness of board decisions.

    ``(2) The Secretary shall ensure compliance with standards and 
guidelines prescribed under paragraph (1) by each physical evaluation 
board at least once every three years.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following new item:

``1222.  Physical evaluation boards.''.

    (b) <<NOTE: 10 USC 1222 note.>> Effective Date.--Section 1222 of 
title 10, United States Code, as added by subsection (a), shall apply 
with respect to decisions rendered on cases commenced more than 120 days 
after the date of the enactment of this Act.
SEC. 598. MILITARY ID CARDS FOR RETIREE DEPENDENTS WHO ARE 
                        PERMANENTLY DISABLED.

    (a) In General.--Subsection (a) of section 1060b of title 10, United 
States Code, is amended to read as follows:
    ``(a) Issuance of Permanent ID Card.--(1) In issuing military ID 
cards to retiree dependents, the Secretary concerned shall issue a 
permanent ID card (not subject to renewal) to any such retiree dependent 
as follows:
            ``(A) A retiree dependent who has attained 75 years of age.
            ``(B) A retiree dependent who is permanently disabled.

    ``(2) A permanent ID card shall be issued to a retiree dependent 
under paragraph (1)(A) upon the expiration, after the retiree dependent 
attains 75 years of age, of any earlier, renewable military card or, if 
earlier, upon the request of the retiree dependent after attaining age 
75.''.
    (b) Conforming and Clerical Amendments.--
            (1) Heading amendment.--The heading of such section is 
        amended to read as follows:

``Sec. 1060b. Military ID cards: dependents and survivors of retirees''.

            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 53 of such title is amended by striking

[[Page 120 STAT. 2238]]

        the item relating to section 1060b and inserting the following 
        new item:

``1060b. Military ID cards: dependents and survivors of retirees.''.

SEC. 599. UNITED STATES MARINE BAND AND UNITED STATES MARINE DRUM 
                        AND BUGLE CORPS.

    (a) In General.--Section 6222 of title 10, United States Code, is 
amended to read as follows:

``Sec. 6222. United States Marine Band; United States Marine Drum and 
                        Bugle Corps: composition; appointment and 
                        promotion of members

    ``(a) United States Marine Band.--The band of the Marine Corps shall 
be composed of one director, two assistant directors, and other 
personnel in such numbers and grades as the Secretary of the Navy 
determines to be necessary.
    ``(b) United States Marine Drum and Bugle Corps.--The drum and bugle 
corps of the Marine Corps shall be composed of one commanding officer 
and other personnel in such numbers and grades as the Secretary of the 
Navy determines to be necessary.
    ``(c) Appointment and Promotion.--(1) <<NOTE: Regulations.>> The 
Secretary of the Navy shall prescribe regulations for the appointment 
and promotion of members of the Marine Band and members of the Marine 
Drum and Bugle Corps.

    ``(2) The President may from time to time appoint members of the 
Marine Band and members of the Marine Drum and Bugle Corps to grades not 
above the grade of captain. The authority of the President to make 
appointments under this paragraph may be delegated only to the Secretary 
of Defense.
    ``(3) The President, by and with the advice and consent of the 
Senate, may from time to time appoint any member of the Marine Band or 
of the Marine Drum and Bugle Corps to a grade above the grade of 
captain.
    ``(d) Retirement.--Unless otherwise entitled to higher retired grade 
and retired pay, a member of the Marine Band or Marine Drum and Bugle 
Corps who holds, or has held, an appointment under this section is 
entitled, when retired, to be retired in, and with retired pay based on, 
the highest grade held under this section in which the Secretary of the 
Navy determines that such member served satisfactorily.
    ``(e) Revocation of Appointment.--The Secretary of the Navy may 
revoke any appointment of a member of the Marine Band or Marine Drum and 
Bugle Corps. When a member's appointment to a commissioned grade 
terminates under this subsection, such member is entitled, at the option 
of such member--
            ``(1) to be discharged from the Marine Corps; or
            ``(2) to revert to the grade and status such member held at 
        the time of appointment under this section.''.

[[Page 120 STAT. 2239]]

    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 565 of such title is amended by striking the item relating to 
section 6222 and inserting the following new item:

``6222. United States Marine Band; United States Marine Drum and Bugle 
           Corps: composition; appointment and promotion of members.''.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Fiscal year 2007 increase in military basic pay and reform of 
           basic pay rates.
Sec. 602. Increase in maximum rate of basic pay for general and flag 
           officer grades to conform to increase in pay cap for Senior 
           Executive Service personnel.
Sec. 603. One-year extension of prohibition against requiring certain 
           injured members to pay for meals provided by military 
           treatment facilities.
Sec. 604. Availability of second basic allowance for housing for certain 
           reserve component or retired members serving in support of 
           contingency operations.
Sec. 605. Extension of temporary continuation of housing allowance for 
           dependents of members dying on active duty to spouses who are 
           also members.
Sec. 606. Payment of full premium for coverage under Servicemembers' 
           Group Life Insurance program during service in Operation 
           Enduring Freedom or Operation Iraqi Freedom.
Sec. 607. Clarification of effective date of prohibition on compensation 
           for correspondence courses.
Sec. 608. Extension of pilot program on contributions to Thrift Savings 
           Plan for initial enlistees in the Army.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Extension of certain bonus and special pay authorities for 
           reserve forces.
Sec. 612. Extension of certain bonus and special pay authorities for 
           health care professionals.
Sec. 613. Extension of special pay and bonus authorities for nuclear 
           officers.
Sec. 614. Extension of authorities relating to payment of other bonuses 
           and special pays.
Sec. 615. Expansion of eligibility of dental officers for additional 
           special pay.
Sec. 616. Increase in maximum annual rate of special pay for Selected 
           Reserve health care professionals in critically short wartime 
           specialties.
Sec. 617. Expansion and enhancement of accession bonus authorities for 
           certain officers in health care specialities.
Sec. 618. Authority to provide lump sum payment of nuclear officer 
           incentive pay.
Sec. 619. Increase in maximum amount of nuclear career accession bonus.
Sec. 620. Increase in maximum amount of incentive bonus for transfer 
           between Armed Forces.
Sec. 621. Additional authorities and incentives to encourage retired 
           members and reserve component members to volunteer to serve 
           on active duty in high-demand, low-density assignments.
Sec. 622. Accession bonus for members of the Armed Forces appointed as 
           commissioned officers after completing officer candidate 
           school.
Sec. 623. Modification of certain authorities applicable to the targeted 
           shaping of the Armed Forces.
Sec. 624. Enhancement of bonus to encourage certain persons to refer 
           other persons for enlistment in the Army.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Travel and transportation allowances for transportation of 
           family members incident to illness or injury of members.

              Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Retired pay of general and flag officers to be based on rates 
           of basic pay provided by law.
Sec. 642. Inapplicability of retired pay multiplier maximum percentage 
           to certain service of members of the Armed Forces in excess 
           of 30 years.
Sec. 643. Military Survivor Benefit Plan beneficiaries under insurable 
           interest coverage.
Sec. 644. Modification of eligibility for commencement of authority for 
           optional annuities for dependents under the Survivor Benefit 
           Plan.

[[Page 120 STAT. 2240]]

Sec. 645. Study of training costs, manning, operations tempo, and other 
           factors that affect retention of members of the Armed Forces 
           with special operations designations.

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

Sec. 661. Treatment of price surcharges of certain merchandise sold at 
           commissary stores.
Sec. 662. Limitations on lease of non-excess Department of Defense 
           property for protection of morale, welfare, and recreation 
           activities and revenue.
Sec. 663. Report on cost effectiveness of purchasing commercial 
           insurance for commissary and exchange facilities and 
           facilities of other morale, welfare, and recreation programs 
           and nonappropriated fund instrumentalities.
Sec. 664. Study and report regarding access of disabled persons to 
           morale, welfare, and recreation facilities and activities.

                        Subtitle F--Other Matters

Sec. 670. Limitations on terms of consumer credit extended to 
           servicemembers and dependents.
Sec. 671. Enhancement of authority to waive claims for overpayment of 
           pay and allowances and travel and transportation allowances.
Sec. 672. Exception for notice to consumer reporting agencies regarding 
           debts or erroneous payments pending a decision to waive, 
           remit, or cancel.
Sec. 673. Expansion and enhancement of authority to remit or cancel 
           indebtedness of members and former members of the Armed 
           Forces incurred on active duty.
Sec. 674. Phased recovery of overpayments of pay made to members of the 
           uniformed services.
Sec. 675. Joint family support assistance program.
Sec. 676. Special working group on transition to civilian employment of 
           National Guard and Reserve members returning from deployment 
           in Operation Iraqi Freedom or Operation Enduring Freedom.
Sec. 677. Audit of pay accounts of members of the Army evacuated from a 
           combat zone for inpatient care.
Sec. 678. Report on eligibility and provision of assignment incentive 
           pay.
Sec. 679. Sense of Congress calling for payment to World War II veterans 
           who survived Bataan Death March.

                     Subtitle A--Pay and Allowances

SEC. 601. <<NOTE: Effective dates. 37 USC 1009 note.>> FISCAL YEAR 
                        2007 INCREASE IN MILITARY BASIC PAY AND 
                        REFORM OF BASIC PAY RATES.

    (a) Waiver of Section 1009 Adjustment.--The adjustment to become 
effective during fiscal year 2007 required by section 1009 of title 37, 
United States Code, in the rates of monthly basic pay authorized members 
of the uniformed services shall not be made.
    (b) January 1, 2007, Increase in Basic Pay.--Effective on January 1, 
2007, the rates of monthly basic pay for members of the uniformed 
services are increased by 2.2 percent.
    (c) Reform of Basic Pay Rates.--Effective on April 1, 2007, the 
rates of monthly basic pay for members of the uniformed services within 
each pay grade (and with years of service computed under section 205 of 
title 37, United States Code) are as follows:

                                             COMMISSIONED OFFICERS1
----------------------------------------------------------------------------------------------------------------
                 Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
----------------------------------------------------------------------------------------------------------------
O-8                                             8,453.10      8,729.70      8,913.60      8,964.90      9,194.10
O-7                                             7,023.90      7,350.00      7,501.20      7,621.20      7,838.40
O-6                                             5,206.20      5,719.20      6,094.50      6,094.50      6,117.60
O-5                                             4,339.80      4,888.80      5,227.50      5,291.10      5,502.00
O-4                                             3,744.60      4,334.70      4,623.90      4,688.40      4,956.90
O-3 3                                           3,292.20      3,732.30      4,028.40      4,392.00      4,602.00

[[Page 120 STAT. 2241]]

 
O-2 3                                           2,844.30      3,239.70      3,731.40      3,857.40      3,936.60
O-1 3                                           2,469.30      2,569.80      3,106.50      3,106.50      3,106.50
                                           ---------------------------------------------------------------------
                                               Over 8        Over 10       Over 12       Over 14       Over 16
                                           ---------------------------------------------------------------------
O-8                                             9,577.20      9,666.30     10,030.20     10,134.30     10,447.80
O-7                                             8,052.90      8,301.30      8,548.80      8,797.20      9,577.20
O-6                                             6,380.10      6,414.60      6,414.60      6,779.10      7,423.80
O-5                                             5,628.60      5,906.40      6,110.10      6,373.20      6,776.40
O-4                                             5,244.60      5,602.80      5,882.40      6,076.20      6,187.50
O-3 3                                           4,833.00      4,982.70      5,228.40      5,355.90      5,355.90
O-2 3                                           3,936.60      3,936.60      3,936.60      3,936.60      3,936.60
O-1 3                                           3,106.50      3,106.50      3,106.50      3,106.50      3,106.50
                                           ---------------------------------------------------------------------
                                               Over 18       Over 20       Over 22       Over 24       Over 26
                                           ---------------------------------------------------------------------
O-10 2                                             $0.00    $13,659.00    $13,725.90    $14,011.20    $14,508.60
O-9                                                 0.00     11,946.60     12,118.50     12,367.20     12,801.30
O-8                                            10,900.80     11,319.00     11,598.30     11,598.30     11,598.30
O-7                                            10,236.00     10,236.00     10,236.00     10,236.00     10,287.90
O-6                                             7,802.10      8,180.10      8,395.20      8,613.00      9,035.70
O-5                                             6,968.10      7,158.00      7,373.10      7,373.10      7,373.10
O-4                                             6,252.30      6,252.30      6,252.30      6,252.30      6,252.30
O-3 3                                           5,355.90      5,355.90      5,355.90      5,355.90      5,355.90
O-2 3                                           3,936.60      3,936.60      3,936.60      3,936.60      3,936.60
O-1 3                                           3,106.50      3,106.50      3,106.50      3,106.50      3,106.50
                                           ---------------------------------------------------------------------
                                               Over 28       Over 30       Over 32       Over 34       Over 36
                                           ---------------------------------------------------------------------
O-10 2                                        $14,508.60    $15,234.00    $15,234.00    $15,995.70    $15,995.70
O-9                                            12,801.30     13,441.50     13,441.50     14,113.50     14,113.50
O-8                                            11,598.30     11,888.40     11,888.40     12,185.70     12,185.70
O-7                                            10,287.90     10,493.70     10,493.70     10,493.70     10,493.70
O-6                                             9,035.70      9,216.30      9,216.30      9,216.30      9,216.30
O-5                                             7,373.10      7,373.10      7,373.10      7,373.10      7,373.10
O-4                                             6,252.30      6,252.30      6,252.30      6,252.30      6,252.30
O-3 3                                           5,355.90      5,355.90      5,355.90      5,355.90      5,355.90
O-2 3                                           3,936.60      3,936.60      3,936.60      3,936.60      3,936.60
O-1 3                                           3,106.50      3,106.50      3,106.50      3,106.50      3,106.50
                                           ---------------------------------------------------------------------
                                               Over 38       Over 40
                                           ---------------------------------------------------------------------
O-10 2                                        $16,795.50    $16,795.50
O-9                                            14,819.10     14,819.10
O-8                                            12,185.70     12,185.70
O-7                                            10,493.70     10,493.70
O-6                                             9,216.30      9,216.30
O-5                                             7,373.10      7,373.10
O-4                                             6,252.30      6,252.30
O-3 3                                           5,355.90      5,355.90
O-2 3                                           3,936.60      3,936.60
O-1 3                                           3,106.50      3,106.50
----------------------------------------------------------------------------------------------------------------
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for commissioned
  oficers in pay grades 0-7 through 0-10 may not exceed the rate of pay for level II of the Executive Schedule
  and the actual rate of basic pay for all other officers may not exceed the rate of pay for level V of the
  Executive Schedule.
2 Subject to the preceding footnote, while serving as Chairman or Vice Chairman of the Joint Chiefs of Staff,
  Chief of Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air Force, Commandant of the
  Marine Corps, Commandant of the Coast Guard, or commander of a unified or specified combatant command (as
  defined in section 161(c) of title 10, United States Code), basic pay for this grade is $17,972.10, regardless
  of cumulative years of service computed under section 205 of title 37, United States Code.
3 This table does not apply to commissioned officers in pay grade O-1, O-2, or O-3 who have been credited with
  over 4 years of active duty service as an enlisted member or warrant officer.





[[Page 120 STAT. 2242]]



     COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER
----------------------------------------------------------------------------------------------------------------
                 Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
----------------------------------------------------------------------------------------------------------------
O-3E                                               $0.00         $0.00         $0.00     $4,392.00     $4,602.00
O-2E                                                0.00          0.00          0.00      3,857.40      3,936.60
O-1E                                                0.00          0.00          0.00      3,106.50      3,317.70
                                           ---------------------------------------------------------------------
                                               Over 8        Over 10       Over 12       Over 14       Over 16
                                           ---------------------------------------------------------------------
O-3E                                           $4,833.00     $4,982.70     $5,228.40     $5,435.40     $5,554.20
O-2E                                            4,062.00      4,273.50      4,437.00      4,558.80      4,558.80
O-1E                                            3,440.10      3,565.50      3,688.80      3,857.40      3,857.40
                                           ---------------------------------------------------------------------
                                               Over 18       Over 20       Over 22       Over 24       Over 26
                                           ---------------------------------------------------------------------
O-3E                                           $5,715.90     $5,715.90     $5,715.90     $5,715.90     $5,715.90
O-2E                                            4,558.80      4,558.80      4,558.80      4,558.80      4,558.80
O-1E                                            3,857.40      3,857.40      3,857.40      3,857.40      3,857.40
                                           ---------------------------------------------------------------------
                                               Over 28       Over 30       Over 32       Over 34       Over 36
                                           ---------------------------------------------------------------------
O-3E                                           $5,715.90     $5,715.90     $5,715.90     $5,715.90     $5,715.90
O-2E                                            4,558.80      4,558.80      4,558.80      4,558.80      4,558.80
O-1E                                            3,857.40      3,857.40      3,857.40      3,857.40      3,857.40
                                           ---------------------------------------------------------------------
                                               Over 38       Over 40
                                           ---------------------------------------------------------------------
O-3E                                           $5,715.90     $5,715.90
O-2E                                            4,558.80      4,558.80
O-1E                                            3,857.40      3,857.40
----------------------------------------------------------------------------------------------------------------





[[Page 120 STAT. 2243]]



                                               WARRANT OFFICERS 1
----------------------------------------------------------------------------------------------------------------
                 Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
----------------------------------------------------------------------------------------------------------------
W-5                                                $0.00         $0.00         $0.00         $0.00         $0.00
W-4                                             3,402.00      3,660.00      3,765.00      3,868.50      4,046.40
W-3                                             3,106.80      3,236.40      3,369.00      3,412.80      3,552.00
W-2                                             2,749.20      3,009.30      3,089.40      3,144.60      3,322.80
W-1                                             2,413.20      2,672.40      2,742.90      2,890.50      3,065.10
                                           ---------------------------------------------------------------------
                                               Over 8        Over 10       Over 12       Over 14       Over 16
                                           ---------------------------------------------------------------------
W-5                                                $0.00         $0.00         $0.00         $0.00         $0.00
W-4                                             4,222.20      4,400.70      4,669.20      4,904.40      5,128.20
W-3                                             3,825.90      4,110.90      4,245.30      4,400.40      4,560.30
W-2                                             3,600.00      3,737.10      3,872.40      4,037.70      4,166.70
W-1                                             3,322.20      3,442.20      3,610.20      3,775.50      3,905.10
                                           ---------------------------------------------------------------------
                                               Over 18       Over 20       Over 22       Over 24       Over 26
                                           ---------------------------------------------------------------------
W-5                                                $0.00     $6,049.50     $6,356.40     $6,585.00     $6,838.20
W-4                                             5,310.90      5,489.70      5,752.20      5,967.60      6,213.60
W-3                                             4,847.70      5,042.40      5,158.50      5,282.10      5,450.10
W-2                                             4,284.00      4,423.80      4,515.90      4,589.40      4,589.40
W-1                                             4,024.50      4,170.00      4,170.00      4,170.00      4,170.00
                                           ---------------------------------------------------------------------
                                               Over 28       Over 30       Over 32       Over 34       Over 36
                                           ---------------------------------------------------------------------
W-5                                            $6,838.20     $7,180.20     $7,180.20     $7,539.30     $7,539.30
W-4                                             6,213.60      6,337.80      6,337.80      6,337.80      6,337.80
W-3                                             5,450.10      5,450.10      5,450.10      5,450.10      5,450.10
W-2                                             4,589.40      4,589.40      4,589.40      4,589.40      4,589.40
W-1                                             4,170.00      4,170.00      4,170.00      4,170.00      4,170.00
                                           ---------------------------------------------------------------------
                                               Over 38       Over 40
                                           ---------------------------------------------------------------------
W-5                                            $7,916.40     $7,916.40
W-4                                             6,337.80      6,337.80
W-3                                             5,450.10      5,450.10
W-2                                             4,589.40      4,589.40
W-1                                             4,170.00      4,170.00
----------------------------------------------------------------------------------------------------------------
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for warrant officers
  may not exceed the rate of pay for level V of the Executive Schedule.





[[Page 120 STAT. 2244]]



                                               ENLISTED MEMBERS 1
----------------------------------------------------------------------------------------------------------------
                 Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
----------------------------------------------------------------------------------------------------------------
E-9 2                                              $0.00         $0.00         $0.00         $0.00         $0.00
E-8                                                 0.00          0.00          0.00          0.00          0.00
E-7                                             2,339.10      2,553.00      2,650.80      2,780.70      2,881.50
E-6                                             2,023.20      2,226.00      2,324.40      2,419.80      2,519.40
E-5                                             1,854.00      1,977.90      2,073.30      2,171.40      2,323.80
E-4                                             1,699.50      1,786.50      1,883.10      1,978.50      2,062.80
E-3                                             1,534.20      1,630.80      1,729.20      1,729.20      1,729.20
E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
E-1 3                                           1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
                                           ---------------------------------------------------------------------
                                               Over 8        Over 10       Over 12       Over 14       Over 16
                                           ---------------------------------------------------------------------
E-9 2                                              $0.00     $4,110.60     $4,203.90     $4,321.20     $4,459.50
E-8                                             3,364.80      3,513.90      3,606.00      3,716.40      3,835.80
E-7                                             3,055.20      3,152.70      3,326.70      3,471.00      3,569.70
E-6                                             2,744.10      2,831.40      3,000.00      3,051.90      3,089.70
E-5                                             2,483.70      2,613.90      2,630.10      2,630.10      2,630.10
E-4                                             2,062.80      2,062.80      2,062.80      2,062.80      2,062.80
E-3                                             1,729.20      1,729.20      1,729.20      1,729.20      1,729.20
E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
E-1 3                                           1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
                                           ---------------------------------------------------------------------
                                               Over 18       Over 20       Over 22       Over 24       Over 26
                                           ---------------------------------------------------------------------
E-9 2                                          $4,598.40     $4,821.60     $5,010.30     $5,209.20     $5,512.80
E-8                                             4,051.80      4,161.30      4,347.30      4,450.50      4,704.90
E-7                                             3,674.40      3,715.50      3,852.00      3,925.20      4,204.20
E-6                                             3,133.50      3,133.50      3,133.50      3,133.50      3,133.50
E-5                                             2,630.10      2,630.10      2,630.10      2,630.10      2,630.10
E-4                                             2,062.80      2,062.80      2,062.80      2,062.80      2,062.80
E-3                                             1,729.20      1,729.20      1,729.20      1,729.20      1,729.20
E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
E-1 3                                           1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
                                           ---------------------------------------------------------------------
                                               Over 28       Over 30       Over 32       Over 34       Over 36
                                           ---------------------------------------------------------------------
E-9 2                                          $5,512.80     $5,788.50     $5,788.50     $6,078.00     $6,078.00
E-8                                             4,704.90      4,799.10      4,799.10      4,799.10      4,799.10
E-7                                             4,204.20      4,204.20      4,204.20      4,204.20      4,204.20
E-6                                             3,133.50      3,133.50      3,133.50      3,133.50      3,133.50
E-5                                             2,630.10      2,630.10      2,630.10      2,630.10      2,630.10
E-4                                             2,062.80      2,062.80      2,062.80      2,062.80      2,062.80
E-3                                             1,729.20      1,729.20      1,729.20      1,729.20      1,729.20
E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
E-1                                             1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
                                           ---------------------------------------------------------------------
                                               Over 38       Over 40
                                           ---------------------------------------------------------------------
E-9 2                                          $6,381.90     $6,381.90
E-8                                             4,799.10      4,799.10
E-7                                             4,204.20      4,204.20
E-6                                             3,133.50      3,133.50
E-5                                             2,630.10      2,630.10
E-4                                             2,062.80      2,062.80
E-3                                             1,729.20      1,729.20
E-2                                             1,458.90      1,458.90
E-1                                             1,301.40      1,301.40
----------------------------------------------------------------------------------------------------------------
1 Notwithstanding the pay rates specified in this table, the actual basic pay for enlisted members may not
  exceed the rate of pay for level V of the Executive Schedule.

[[Page 120 STAT. 2245]]

 
2 Subject to the preceding footnote, the rate of basic pay for an enlisted member in this grade while serving as
  Sergeant Major of the Army, Master Chief Petty Officer of the Navy, Chief Master Sergeant of the Air Force,
  Sergeant Major of the Marine Corps, Master Chief Petty Officer of the Coast Guard, or Senior Enlisted Advisor
  to the Chairman of the Joint Chiefs of Staff is $6,642.60, regardless of cumulative years of service computed
  under section 205 of title 37, United States Code.
3 In the case of members in pay grade E-1 who have served less than 4 months on active duty, the rate of basic
  pay is $1,203.90.


SEC. 602. INCREASE IN MAXIMUM RATE OF BASIC PAY FOR GENERAL AND 
                        FLAG OFFICER GRADES TO CONFORM TO INCREASE 
                        IN PAY CAP FOR SENIOR EXECUTIVE SERVICE 
                        PERSONNEL.

    (a) Increase.--Section 203(a)(2) of title 37, United States Code, is 
amended by striking ``level III of the Executive Schedule'' and 
inserting ``level II of the Executive Schedule''.
    (b) <<NOTE: 37 USC 203 note.>> Effective Date.--The amendment made 
by subsection (a) shall take effect on January 1, 2007, and shall apply 
with respect to months beginning on or after that date.
SEC. 603. ONE-YEAR EXTENSION OF PROHIBITION AGAINST REQUIRING 
                        CERTAIN INJURED MEMBERS TO PAY FOR MEALS 
                        PROVIDED BY MILITARY TREATMENT FACILITIES.

    (a) Extension.--Section 402(h)(3) of title 37, United States Code, 
is amended by striking ``December 31, 2006'' and inserting ``December 
31, 2007''.
    (b) Report on Administration of Prohibition.--Not later than 
February 1, 2007, the Secretary of Defense shall submit to the 
congressional defense committees a report on the administration of 
section 402(h) of title 37, United States Code. The report shall 
include--
            (1) a description and assessment of the mechanisms used by 
        the military departments to implement the prohibition contained 
        in such section; and
            (2) such recommendations as the Secretary considers 
        appropriate regarding making such prohibition permanent.
SEC. 604. AVAILABILITY OF SECOND BASIC ALLOWANCE FOR HOUSING FOR 
                        CERTAIN RESERVE COMPONENT OR RETIRED 
                        MEMBERS SERVING IN SUPPORT OF CONTINGENCY 
                        OPERATIONS.

    (a) Availability.--Section 403(g) of title 37, United States Code, 
is amended--
            (1) by redesignating paragraphs (2), (3), and (4) as 
        paragraphs (3), (4), and (5), respectively;
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):

    ``(2) The Secretary concerned may provide a basic allowance for 
housing to a member described in paragraph (1) at a monthly rate equal 
to the rate of the basic allowance for housing established under 
subsection (b) or the overseas basic allowance for housing established 
under subsection (c), whichever applies to the location at which the 
member is serving, for members in the same grade at that location 
without dependents. The member may receive both a basic allowance for 
housing under paragraph (1) and under this paragraph for the same month, 
but may not receive the portion of the allowance authorized under 
section 404 of this title, if any, for lodging expenses if a basic 
allowance for housing is provided under this paragraph.''; and
            (3) in paragraph (3), as so redesignated, by striking 
        ``Paragraph (1)'' and inserting ``Paragraphs (1) and (2)''.

[[Page 120 STAT. 2246]]

    (b) <<NOTE: 37 USC 403 note.>> Effective Date.--Paragraph (2) of 
section 403(g) of title 37, United States Code, as added by subsection 
(a), shall apply with respect to months beginning on or after October 1, 
2006.
SEC. 605. EXTENSION OF TEMPORARY CONTINUATION OF HOUSING ALLOWANCE 
                        FOR DEPENDENTS OF MEMBERS DYING ON ACTIVE 
                        DUTY TO SPOUSES WHO ARE ALSO MEMBERS.

    (a) Extension.--Section 403(l) of title 37, United States Code, is 
amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following new 
        paragraph:

    ``(3) An allowance may be paid under paragraph (2) to the spouse of 
the deceased member even though the spouse is also a member of the 
uniformed services. The allowance paid under such paragraph is in 
addition to any other pay and allowances to which the spouse is entitled 
as a member.''.
    (b) <<NOTE: 37 USC 403 note.>> Effective Date.--
            (1) General rule.--The amendments made by subsection (a) 
        shall take effect on October 1, 2006.
            (2) Transitional rule.--After October 1, 2006, the Secretary 
        of Defense, and the Secretary of Homeland Security in the case 
        of the Coast Guard, may pay the allowance authorized by section 
        403(l)(2) of title 37, United States Code, to a member of the 
        uniformed services who is the spouse of a member who died on 
        active duty during the one-year period ending on that date, 
        except that the payment of the allowance must terminate within 
        365 days after the date of the member's death.
SEC. 606. PAYMENT OF FULL PREMIUM FOR COVERAGE UNDER 
                        SERVICEMEMBERS' GROUP LIFE INSURANCE 
                        PROGRAM DURING SERVICE IN OPERATION 
                        ENDURING FREEDOM OR OPERATION IRAQI 
                        FREEDOM.

    (a) Enhanced Allowance To Cover SGLI Deductions.--Subsection (a)(1) 
of section 437 of title 37, United States Code, is amended by striking 
``for the first $150,000'' and all that follows through ``of such 
title'' and inserting ``for the amount of Servicemembers' Group Life 
Insurance coverage held by the member under section 1967 of such 
title''.
    (b) Conforming Amendments.--Such section is further amended--
            (1) in subsection (a)--
                    (A) by striking ``(1)'' before ``in the case of''; 
                and
                    (B) by striking paragraph (2);
            (2) by striking subsection (b); and
            (3) by redesignating subsection (c) as subsection (b) and in 
        paragraph (2) of that subsection by striking ``coverage amount 
        specified in subsection (a)(1) or in effect pursuant to 
        subsection (b),'' and inserting ``maximum coverage amount 
        available for such insurance,''.

    (c) Clerical Amendments.--The heading for such section, and the item 
relating to such section in the table of sections at the beginning of 
chapter 7 of such title, are each amended by striking the fourth and 
fifth words.
    (d) <<NOTE: 37 USC 403 note.>> Effective Date.--The amendments made 
by this section shall take effect on the first day of the first month 
beginning on or after the date of the enactment of this Act and shall 
apply 


[[Page 120 STAT. 2247]]

with respect to service by members of the Armed Forces in the theater of 
operations for Operation Enduring Freedom or Operation Iraqi Freedom for 
months beginning on or after that date.
SEC. 607. CLARIFICATION OF EFFECTIVE DATE OF PROHIBITION ON 
                        COMPENSATION FOR CORRESPONDENCE COURSES.

    Section 206(d) of title 37, United States Code, is amended by adding 
at the end the following new paragraph:
    ``(3) The prohibition in paragraph (1), including the prohibition as 
it relates to a member of the National Guard while not in Federal 
service, applies to--
            ``(A) any work or study performed on or after September 7, 
        1962, unless that work or study is specifically covered by the 
        exception in paragraph (2); and
            ``(B) any claim based on that work or study arising after 
        that date.''.
SEC. 608. EXTENSION OF PILOT PROGRAM ON CONTRIBUTIONS TO THRIFT 
                        SAVINGS PLAN FOR INITIAL ENLISTEES IN THE 
                        ARMY.

    (a) Extension.--Subsection (a) of section 606 of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 
Stat. 3287; 37 U.S.C. 211 note) is amended by striking ``During fiscal 
year 2006'' and inserting ``During the period beginning on January 6, 
2006, and ending on December 31, 2008''.
    (b) Report Date.--Subsection (d)(1) of such section is amended by 
striking ``February 1, 2007'' and inserting ``February 1, 2008''.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. EXTENSION OF CERTAIN BONUS AND SPECIAL PAY AUTHORITIES 
                        FOR RESERVE FORCES.

    (a) Selected Reserve Reenlistment Bonus.--Section 308b(g) of title 
37, United States Code, is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.
    (b) Selected Reserve Affiliation or Enlistment Bonus.--Section 
308c(i) of such title is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.
    (c) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of such title is amended by striking 
``December 31, 2006'' and inserting ``December 31, 2007''.
    (d) Ready Reserve Enlistment Bonus for Persons Without Prior 
Service.--Section 308g(f)(2) of such title is amended by striking 
``December 31, 2006'' and inserting ``December 31, 2007''.
    (e) Ready Reserve Enlistment and Reenlistment Bonus for Persons With 
Prior Service.--Section 308h(e) of such title is amended by striking 
``December 31, 2006'' and inserting ``December 31, 2007''.
    (f) Selected Reserve Enlistment Bonus for Persons With Prior 
Service.--Section 308i(f) of such title is amended by striking 
``December 31, 2006'' and inserting ``December 31, 2007''.

[[Page 120 STAT. 2248]]

SEC. 612. EXTENSION OF CERTAIN BONUS AND SPECIAL PAY AUTHORITIES 
                        FOR HEALTH CARE PROFESSIONALS.

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking ``December 31, 
2006'' and inserting ``December 31, 2007''.
    (b) Repayment of Education Loans for Certain Health Professionals 
Who Serve in the Selected Reserve.--Section 16302(d) of such title is 
amended by striking ``January 1, 2007'' and inserting ``January 1, 
2008''.
    (c) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking ``December 31, 
2006'' and inserting ``December 31, 2007''.
    (d) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of such title is amended by striking ``December 31, 2006'' 
and inserting ``December 31, 2007''.
    (e) Special Pay for Selected Reserve Health Professionals in 
Critically Short Wartime Specialties.--Section 302g(e) of such title is 
amended by striking ``December 31, 2006'' and inserting ``December 31, 
2007''.
    (f) Accession Bonus for Dental Officers.--Section 302h(a)(1) of such 
title is amended by striking ``December 31, 2006'' and inserting 
``December 31, 2007''.
    (g) Accession Bonus for Pharmacy Officers.--Section 302j(a) of such 
title is amended by striking ``December 31, 2006'' and inserting 
``December 31, 2007''.
SEC. 613. EXTENSION OF SPECIAL PAY AND BONUS AUTHORITIES FOR 
                        NUCLEAR OFFICERS.

    (a) Special Pay for Nuclear-Qualified Officers Extending Period of 
Active Service.--Section 312(e) of title 37, United States Code, is 
amended by striking ``December 31, 2006'' and inserting ``December 31, 
2007''.
    (b) Nuclear Career Accession Bonus.--Section 312b(c) of such title 
is amended by striking ``December 31, 2006'' and inserting ``December 
31, 2007''.
    (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such 
title is amended by striking ``December 31, 2006'' and inserting 
``December 31, 2007''.
SEC. 614. EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF OTHER 
                        BONUSES AND SPECIAL PAYS.

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.
    (b) Assignment Incentive Pay.--Section 307a(g) of such title is 
amended by striking ``December 31, 2007'' and inserting ``December 31, 
2008''.
    (c) Reenlistment Bonus for Active Members.--Section 308(g) of such 
title is amended by striking ``December 31, 2006'' and inserting 
``December 31, 2007''.
    (d) Enlistment Bonus.--Section 309(e) of such title is amended by 
striking ``December 31, 2006'' and inserting ``December 31, 2007''.
    (e) Retention Bonus for Members With Critical Military Skills or 
Assigned to High Priority Units.--Section 323(i) of such title is 
amended by striking ``December 31, 2006'' and inserting ``December 31, 
2007''.

[[Page 120 STAT. 2249]]

    (f) Accession Bonus for New Officers in Critical Skills.--Section 
324(g) of such title is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.
    (g) Incentive Bonus for Conversion to Military Occupational 
Specialty to Ease Personnel Shortage.--Section 326(g) of such title is 
amended by striking ``December 31, 2006'' and inserting ``December 31, 
2007''.
    (h) Incentive Bonus for Transfer Between the Armed Forces.--Section 
327(h) of such title is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2009''.
SEC. 615. EXPANSION OF ELIGIBILITY OF DENTAL OFFICERS FOR 
                        ADDITIONAL SPECIAL PAY.

    (a) Repeal of Internship and Residency Exception.--Section 
302b(a)(4) of title 37, United States Code, is amended by striking the 
first sentence and inserting the following new sentence: ``An officer 
who is entitled to variable special pay under paragraph (2) or (3) is 
also entitled to additional special pay for any 12-month period during 
which an agreement executed under subsection (b) is in effect with 
respect to the officer.''.
    (b) <<NOTE: 37 USC 302b note.>> Effective Date.--The amendment made 
by this section shall take effect on October 1, 2006.
SEC. 616. INCREASE IN MAXIMUM ANNUAL RATE OF SPECIAL PAY FOR 
                        SELECTED RESERVE HEALTH CARE PROFESSIONALS 
                        IN CRITICALLY SHORT WARTIME SPECIALTIES.

    (a) Increase.--Section 302g(a) of title 37, United States Code, is 
amended by striking ``$10,000'' and inserting ``$25,000''.
    (b) <<NOTE: 37 USC 302g note.>> Effective Date.--The amendment made 
by subsection (a) shall take effect on October 1, 2006, and shall apply 
to agreements entered into or revised under section 302g of title 37, 
United States Code, on or after that date.
SEC. 617. EXPANSION AND ENHANCEMENT OF ACCESSION BONUS AUTHORITIES 
                        FOR CERTAIN OFFICERS IN HEALTH CARE 
                        SPECIALITIES.

    (a) Increase in Maximum Amount of Accession Bonus for Dental 
Officers.--Section 302h(a)(2) of title 37, United States Code, is 
amended by striking ``$30,000'' and inserting ``$200,000''.
    (b) Accession Bonus for Medical Officers in Critically Short Wartime 
Specialities.--Chapter 5 of title 37, United States Code, is amended by 
inserting after section 302j the following new section:

``Sec. 302k. Special pay: accession bonus for medical officers in 
                        critically short wartime specialties

    ``(a) Accession Bonus Authorized.--A person who is a graduate of an 
accredited school of medicine or osteopathy in a specialty designated by 
regulations as a critically short wartime specialty and who executes a 
written agreement described in subsection (d) to accept a commission as 
an officer of the armed forces and remain on active duty for a period of 
not less than four consecutive years may, upon the acceptance of the 
agreement by the Secretary concerned, be paid an accession bonus in the 
amount determined by the Secretary concerned.
    ``(b) Amount of Bonus.--The amount of an accession bonus under 
subsection (a) may not exceed $400,000.

[[Page 120 STAT. 2250]]

    ``(c) Limitation on Eligibility for Bonus.--A person may not be paid 
a bonus under subsection (a) if--
            ``(1) the person, in exchange for an agreement to accept an 
        appointment as an officer, received financial assistance from 
        the Department of Defense to pursue a course of study in 
        medicine or osteopathy; or
            ``(2) the Secretary concerned determines that the person is 
        not qualified to become and remain certified as a doctor or 
        osteopath in a specialty designated by regulations as a 
        critically short wartime specialty.

    ``(d) Agreement.--The agreement referred to in subsection (a) shall 
provide that, consistent with the needs of the armed force concerned, 
the person executing the agreement will be assigned to duty, for the 
period of obligated service covered by the agreement, as an officer of 
the Medical Corps of the Army or the Navy or as an officer of the Air 
Force designated as a medical officer in a specialty designated by 
regulations as a critically short wartime specialty.
    ``(e) Repayment.--A person who, after executing an agreement under 
subsection (a) is not commissioned as an officer of the armed forces, 
does not become licensed as a doctor or osteopath, as the case may be, 
or does not complete the period of active duty in a specialty specified 
in the agreement, shall be subject to the repayment provisions of 
section 303a(e) of this title.
    ``(f) Termination of Authority.--No agreement under this section may 
be entered into after December 31, 2007.''.
    (c) Accession Bonus for Dental Specialist Officers in Critically 
Short Wartime Specialities.--Such chapter is further amended by 
inserting after section 302k, as added by subsection (b), the following 
new section:

``Sec. 302l. Special pay: accession bonus for dental specialist officers 
                        in critically short wartime specialties

    ``(a) Accession Bonus Authorized.--A person who is a graduate of an 
accredited dental school in a specialty designated by regulations as a 
critically short wartime specialty and who executes a written agreement 
described in subsection (d) to accept a commission as an officer of the 
armed forces and remain on active duty for a period of not less than 
four consecutive years may, upon the acceptance of the agreement by the 
Secretary concerned, be paid an accession bonus in the amount determined 
by the Secretary concerned.
    ``(b) Amount of Bonus.--The amount of an accession bonus under 
subsection (a) may not exceed $400,000.
    ``(c) Limitation on Eligibility for Bonus.--A person may not be paid 
a bonus under subsection (a) if--
            ``(1) the person, in exchange for an agreement to accept an 
        appointment as an officer, received financial assistance from 
        the Department of Defense to pursue a course of study in 
        dentistry; or
            ``(2) the Secretary concerned determines that the person is 
        not qualified to become and remain certified as a dentist in a 
        specialty designated by regulations as a critically short 
        wartime specialty.

    ``(d) Agreement.--The agreement referred to in subsection (a) shall 
provide that, consistent with the needs of the armed force concerned, 
the person executing the agreement will be assigned

[[Page 120 STAT. 2251]]

to duty, for the period of obligated service covered by the agreement, 
as an officer of the Dental Corps of the Army or the Navy or as an 
officer of the Air Force designated as a dental officer in a specialty 
designated by regulations as a critically short wartime specialty.
    ``(e) Repayment.--A person who, after executing an agreement under 
subsection (a) is not commissioned as an officer of the armed forces, 
does not become licensed as a dentist, or does not complete the period 
of active duty in a specialty specified in the agreement, shall be 
subject to the repayment provisions of section 303a(e) of this title.
    ``(f) Coordination With Other Accession Bonus Authority.--A person 
eligible to execute an agreement under both subsection (a) and section 
302h of this title shall elect which authority to execute the agreement 
under. A person may not execute an agreement under both subsection (a) 
and such section 302h.
    ``(g) Termination of Authority.--No agreement under this section may 
be entered into after December 31, 2007.''.
    (d) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
302j the following new items:

``302k. Special pay: accession bonus for medical officers in critically 
           short wartime specialties.
``302l. Special pay: accession bonus for dental specialist officers in 
           critically short wartime specialties.''.

    (e) <<NOTE: 37 USC 302h note.>> Effective Date.--The amendments made 
by this section shall take effect on October 1, 2006, and shall apply to 
agreements--
            (1) entered into or revised under section 302h of title 37, 
        United States Code, on or after that date; or
            (2) entered into under section 302k or 302l of such title, 
        as added by subsections (b) and (c), on or after that date.
SEC. 618. AUTHORITY TO PROVIDE LUMP SUM PAYMENT OF NUCLEAR OFFICER 
                        INCENTIVE PAY.

    (a) Lump Sum Payment Option.--Subsection (a) of section 312 of title 
37, United States Code, is amended in the matter after paragraph (3)--
            (1) by striking ``in equal annual installments'' and 
        inserting ``in a single lump-sum or in annual installments of 
        equal or different amounts''; and
            (2) by striking ``with the number of installments being 
        equal to the number of years covered by the contract plus one'' 
        and inserting ``and, if the special pay will be paid in annual 
        installments, the number of installments may not exceed the 
        number of years covered by the agreement plus one''.

    (b) Stylistic and Conforming Amendments.--Such section is further 
amended--
            (1) by redesignating subsections (b) through (e) as 
        subsections (c) through (f), respectively;
            (2) in subsection (a)--
                    (A) by striking ``an officer'' in the matter before 
                paragraph (1) and inserting ``the Secretary may pay 
                special pay under subsection (b) to an officer'';
                    (B) by striking the comma at the end of paragraph 
                (3) and inserting a period;

[[Page 120 STAT. 2252]]

                    (C) by striking ``may, upon'' and all that follows 
                through ``The Secretary of the Navy shall'' and 
                inserting the following:

    ``(b) Payment Amount; Payment Options.--(1) The total amount paid to 
an officer under an agreement under subsection (a) or (e)(1) may not 
exceed $30,000 for each year of the active-service agreement. Amounts 
paid under the agreement are in addition to all other compensation to 
which the officer is entitled.
    ``(2) The Secretary shall'';
                    (D) by striking ``Upon acceptance of the agreement 
                by the Secretary or his designee'' and inserting the 
                following:

    ``(3) Upon acceptance of an agreement under subsection (a) or (e)(1) 
by the Secretary''; and
                    (E) by striking ``The Secretary (or his designee)'' 
                and inserting the following:

    ``(4) The Secretary'';
            (3) in subsection (c), as redesignated by paragraph (1), by 
        striking ``subsection (a) or subsection (d)(1)'' and inserting 
        ``subsection (b) or (e)(1)''; and
            (4) in the first sentence of subsection (e)(1), as 
        redesignated by paragraph (1)--
                    (A) by striking ``such subsection'' and inserting 
                ``subsection (b)''; and
                    (B) by striking ``that subsection'' and inserting 
                ``this subsection''.

    (c) Stylistic Amendments.--Such section is further amended--
            (1) in subsection (a), by inserting ``Special Pay 
        Authorized; Eligibility.--'' after ``(a)'';
            (2) in subsection (c), as redesignated by subsection (b)(1), 
        by inserting ``Repayment.--'' after ``(c)'';
            (3) in subsection (d), as redesignated by subsection (b)(1), 
        by inserting ``Relation to Service Obligation.--'' after 
        ``(d)'';
            (4) in subsection (e), as redesignated by subsection (b)(1), 
        by inserting ``New Agreement.--'' after ``(e)''; and
            (5) in subsection (f), as redesignated by subsection (b)(1), 
        by inserting ``Duration of Authority.--'' after ``(f)''.
SEC. 619. INCREASE IN MAXIMUM AMOUNT OF NUCLEAR CAREER ACCESSION 
                        BONUS.

    (a) Increase.--Section 312b(a)(1) of title 37, United States Code, 
is amended by striking ``$20,000'' and inserting ``$30,000''.
    (b) <<NOTE: 37 USC 312b note.>> Effective Date.--The amendment made 
by subsection (a) shall take effect on October 1, 2006, and shall apply 
to agreements entered into or revised under section 312b of title 37, 
United States Code, on or after that date.
SEC. 620. INCREASE IN MAXIMUM AMOUNT OF INCENTIVE BONUS FOR 
                        TRANSFER BETWEEN ARMED FORCES.

    (a) Increase.--Section 327(d)(1) of title 37, United States Code, is 
amended by striking ``$2,500'' and inserting ``$10,000''.
    (b) <<NOTE: 37 USC 327 note.>> Effective Date.--The amendment made 
by subsection (a) shall take effect on October 1, 2006, and shall apply 
to agreements entered into or revised under section 327 of title 37, 
United States Code, on or after that date.

[[Page 120 STAT. 2253]]

SEC. 621. ADDITIONAL AUTHORITIES AND INCENTIVES TO ENCOURAGE 
                        RETIRED MEMBERS AND RESERVE COMPONENT 
                        MEMBERS TO VOLUNTEER TO SERVE ON ACTIVE 
                        DUTY IN HIGH-DEMAND, LOW-DENSITY 
                        ASSIGNMENTS.

    (a) Authority To Offer Incentive Bonus.--Chapter 5 of title 37, 
United States Code, is amended by adding at the end the following new 
section:

``Sec. 329. Incentive bonus: retired members and reserve component 
                        members volunteering for high-demand, low-
                        density assignments

    ``(a) Incentive Bonus Authorized.--The Secretary of Defense may pay 
a bonus under this section to a retired member or former member of the 
Army, Navy, Air Force, or Marine Corps or to a member of a reserve 
component of the Army, Navy, Air Force, or Marine Corps (who is not 
otherwise serving on active duty) who executes a written agreement to 
serve on active duty for a period specified in the agreement in an 
assignment intended to alleviate the need for members in a high-demand, 
low-density military capability or in any other specialty designated by 
the Secretary as critical to meet wartime or peacetime requirements.
    ``(b) Maximum Amount of Bonus.--A bonus under subsection (a) and any 
incentive developed under subsection (d) may not exceed $50,000.
    ``(c) Methods of Payment.--At the election of the Secretary of 
Defense, a bonus under subsection (a) and any incentive developed under 
subsection (d) shall be paid or provided--
            ``(1) when the member commences service on active duty; or
            ``(2) in annual installments in such amounts as may be 
        determined by the Secretary.

    ``(d) Development of Additional Incentives.--(1) The Secretary of 
Defense may develop and provide to members referred to in subsection (a) 
additional incentives to encourage such members to return to active duty 
in assignments intended to alleviate the need for members in a high-
demand, low-density military capability or in other specialties 
designated by the Secretary as critical to meet wartime or peacetime 
requirements.
    ``(2) <<NOTE: Contracts.>> The provision of any incentive developed 
under this subsection shall be subject to an agreement, as required for 
bonuses under subsection (a).

    ``(3) <<NOTE: Deadline.>> Not later than 30 days before first 
offering any incentive developed under this subsection, the Secretary 
shall submit to the congressional defense committees a report that 
contains a description of that incentive and an explanation why a bonus 
under subsection (a) or other pay and allowances are not sufficient to 
alleviate the high-demand, low-density military capability or otherwise 
fill critical military specialties.

    ``(4) In this subsection, the term `congressional defense 
committees' has the meaning given that term in section 101(a)(16) of 
title 10.
    ``(e) Relationship to Other Pay and Allowances.--A bonus or other 
incentive paid or provided to a member under this section is in addition 
to any other pay and allowances to which the member is entitled.
    ``(f) Prohibition on Promotions.--The written agreement required by 
subsections (a) and (d) shall specify that a member

[[Page 120 STAT. 2254]]

who is paid or receives a bonus or other incentive under this section is 
not eligible for promotion while serving in the assignment for which the 
bonus or other incentive is provided.
    ``(g) Repayment.--A member who does not complete the period of 
active duty specified in the agreement executed under subsection (a) or 
(d) shall be subject to the repayment provisions of section 303a(e) of 
this title.
    ``(h) High-Demand, Low-Density Military Capability.--In this 
section, the term `high-demand, low-density military capability' means a 
combat, combat support or service support capability, unit, system, or 
occupational specialty that the Secretary of Defense determines has 
funding, equipment, or personnel levels that are substantially below the 
levels required to fully meet or sustain actual or expected operational 
requirements set by regional commanders.
    ``(i) Regulations.--The Secretary of Defense may prescribe such 
regulations as the Secretary considers necessary to carry out this 
section.
    ``(j) Termination of Authority.--No agreement under subsection (a) 
or (d) may be entered into after December 31, 2010.''.
    (b) Temporary Authority to Order Retired Members to Active Duty in 
High-Demand, Low-Density Military Capability.--Section 688a of title 10, 
United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking the first sentence and inserting the 
                following new sentence: ``The Secretary of a military 
                department may order to active duty a retired member who 
                agrees to serve on active duty in an assignment intended 
                to alleviate a high-demand, low-density military 
                capability or in any other specialty designated by the 
                Secretary as critical to meet wartime or peacetime 
                requirements.''; and
                    (B) in the second sentence, by striking ``officer'' 
                both places it appears and inserting ``member'';
            (2) in subsection (b), by striking ``an officer'' and 
        inserting ``a member'';
            (3) in subsection (c), by striking ``500 officers'' and 
        inserting ``1,000 members'';
            (4) in subsection (d), by striking ``officer'' and inserting 
        ``member'';
            (5) in subsection (e), by striking ``Officers'' and 
        inserting ``Retired members'';
            (6) in subsection (f)--
                    (A) by striking ``An officer'' and inserting ``A 
                retired member''; and
                    (B) by striking ``September 30, 2008'' and inserting 
                ``December 31, 2010''; and
            (7) by adding at the end the following new subsection:

    ``(g) High-Demand, Low-Density Military Capability Defined.--In this 
section, the term `high-demand, low-density military capability' means a 
combat, combat support or service support capability, unit, system, or 
occupational specialty that the Secretary of Defense determines has 
funding, equipment, or personnel levels that are substantially below the 
levels required to fully meet or sustain actual or expected operational 
requirements set by regional commanders.''.

[[Page 120 STAT. 2255]]

    (c) Exclusion From Active-Duty List.--Section 641 of title 10, 
United States Code, is amended by adding at the end the following new 
paragraph:
            ``(6) Officers appointed pursuant to an agreement under 
        section 329 of title 37.''.

    (d) Clerical Amendments.--
            (1) Title 37.--The table of sections at the beginning of 
        chapter 5 of title 37, United States Code, is amended by adding 
        at the end the following new item:

``329. Incentive bonus: retired members and reserve component members 
           volunteering for high-demand, low-density assignments.''.

            (2) Title 10.--(A) The heading of section 688a of title 10, 
        United States Code, is amended to read as follows:

``Sec. 688a. Retired members: temporary authority to order to active 
                        duty in high-demand, low-density assignments''.

            (B) The table of sections at the beginning of chapter 39 of 
        such title is amended by striking the item relating to section 
        688a and inserting the following new item:

``688a. Retired members: temporary authority to order to active duty in 
           high-demand, low-density assignments.''.

    (e) <<NOTE: 37 USC 329 note.>> Effective Date.--No agreement may be 
entered into under section 329 of title 37, United States Code, as added 
by subsection (a), before October 1, 2006.

    (f) Limitation on Fiscal Year 2007 Obligations.--During fiscal year 
2007, obligations incurred under section 329 of title 37, United States 
Code, as added by subsection (a), to provide bonuses or other incentives 
to retired members and former members of the Army, Navy, Air Force, or 
Marine Corps or to members of the reserve components of the Army, Navy, 
Air Force, and Marine Corps may not exceed $5,000,000.
SEC. 622. ACCESSION BONUS FOR MEMBERS OF THE ARMED FORCES 
                        APPOINTED AS COMMISSIONED OFFICERS AFTER 
                        COMPLETING OFFICER CANDIDATE SCHOOL.

    (a) Accession Bonus Authorized.--
            (1) In general.--Chapter 5 of title 37, United States Code, 
        is amended by inserting after section 329, as added by section 
        621 of this Act, the following new section:

``Sec. 330. Special pay: accession bonus for officer candidates

    ``(a) <<NOTE: Regulations.>> Accession Bonus Authorized.--Under 
regulations prescribed by the Secretary concerned, a person who executes 
a written agreement described in subsection (c) may be paid an accession 
bonus under this section upon acceptance of the agreement by the 
Secretary concerned.

    ``(b) Amount of Bonus.--The amount of an accession bonus under 
subsection (a) may not exceed $8,000.
    ``(c) Agreement.--A written agreement referred to in subsection (a) 
is a written agreement by a person--
            ``(1) to complete officer candidate school;
            ``(2) to accept a commission or appointment as an officer of 
        the armed forces; and
            ``(3) to serve on active duty as a commissioned officer for 
        a period specified in the agreement.

[[Page 120 STAT. 2256]]

    ``(d) <<NOTE: Contracts.>> Payment Method.--Upon acceptance of a 
written agreement under subsection (a) by the Secretary concerned, the 
total amount of the accession bonus payable under the agreement becomes 
fixed. The agreement shall specify whether the accession bonus will be 
paid in a lump sum or installments.

    ``(e) Repayment.--A person who, having received all or part of the 
bonus under a written agreement under subsection (a), does not complete 
the total period of active duty as a commissioned officer as specified 
in such agreement shall be subject to the repayment provisions of 
section 303a(e) of this title.
    ``(f) Termination of Authority.--No agreement under this section may 
be entered into after December 31, 2007.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the item 
        relating to section 329, as added by section 621, the following 
        new item:

``330. Special pay: accession bonus for officer candidates.''.

            (3) <<NOTE: 37 USC 330 note.>> Effective date.--The 
        amendments made by this subsection shall take effect on October 
        1, 2006.

    (b) Authority for Payment of Bonus Under Earlier Agreements.--
            (1) Authority.--The Secretary of the Army may pay a bonus to 
        any person who, during the period beginning on April 1, 2005, 
        and ending on April 6, 2006, executed an agreement to enlist for 
        the purpose of attending officer candidate school and receive a 
        bonus under section 309 of title 37, United States Code, and who 
        has completed the terms of the agreement required for payment of 
        the bonus.
            (2) Amount of bonus.--The amount of the bonus payable to a 
        person under this subsection may not exceed $8,000.
            (3) Relation to enlistment bonus.--The bonus payable under 
        this subsection is in addition to a bonus payable under section 
        309 of title 37, United States Code, or any other provision of 
        law.
SEC. 623. MODIFICATION OF CERTAIN AUTHORITIES APPLICABLE TO THE 
                        TARGETED SHAPING OF THE ARMED FORCES.

    (a) Voluntary Separation Pay and Benefits.--
            (1) Increase in maximum amount of pay.--Subsection (f) of 
        section 1175a of title 10, United States Code, is amended by 
        striking ``two times'' and inserting ``four times''.
            (2) Extension of authority.--Subsection (k)(1) of such 
        section is amended by striking ``December 31, 2008'' and 
        inserting ``December 31, 2012''.
            (3) Repeal of limitation on applicability.--Subsection (b) 
        of section 643 of the National Defense Authorization Act for 
        Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3310; 10 U.S.C. 
        1175a note) is repealed.

    (b) Enhanced Authority for Early Discharges.--
            (1) Renewal of authority.--Subsection (a) of section 638a of 
        title 10, United States Code, is amended by inserting ``and for 
        the purpose of subsection (b)(4) during the period beginning on 
        October 1, 2006, and ending on December 31, 2012,'' after 
        ``December 31, 2001,''.
            (2) Relaxation of limitation on selective early discharge.--
        Subsection (d)(2) of such section is amended--

[[Page 120 STAT. 2257]]

                    (A) in subparagraph (A), by inserting before the 
                semicolon the following: ``, except that during the 
                period beginning on October 1, 2006, and ending on 
                December 31, 2012, such number may be more than 30 
                percent of the officers considered in each competitive 
                category, but may not be more than 30 percent of the 
                number of officers considered in each grade''; and
                    (B) in subparagraph (B), by inserting before the 
                period the following: ``, except that during the period 
                beginning on October 1, 2006, and ending on December 31, 
                2012, such number may be more than 30 percent of the 
                officers considered in each competitive category, but 
                may not be more than 30 percent of the number of 
                officers considered in each grade''.
SEC. 624. ENHANCEMENT OF BONUS TO ENCOURAGE CERTAIN PERSONS TO 
                        REFER OTHER PERSONS FOR ENLISTMENT IN THE 
                        ARMY.

    (a) Individuals Eligible for Bonus.--Subsection (a) of section 645 
of the National Defense Authorization Act for Fiscal Year 2006 (Public 
Law 109-163; 119 Stat. 3310) is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
            ``(1) Authority.--The Secretary'';
            (2) by striking ``a member of the Army, whether in the 
        regular component of the Army or in the Army National Guard or 
        Army Reserve,'' and inserting ``an individual referred to in 
        paragraph (2)''; and
            (3) by adding at the end the following new paragraph:
            ``(2) Individuals eligible for bonus.--Subject to subsection 
        (c), the following individuals are eligible for a referral bonus 
        under this section:
                    ``(A) A member in the regular component of the Army.
                    ``(B) A member of the Army National Guard.
                    ``(C) A member of the Army Reserve.
                    ``(D) A member of the Army in a retired status, 
                including a member under 60 years of age who, but for 
                age, would be eligible for retired pay.
                    ``(E) A civilian employee of the Department of the 
                Army.''.

    (b) Certain Referrals Ineligible.--Subsection (c) of such section is 
amended by adding at the end the following new paragraph:
            ``(3) Junior reserve officers' training corps instructors.--
        A member of the Army detailed under subsection (c)(1) of section 
        2031 of title 10, United States Code, to serve as an 
        administrator or instructor in the Junior Reserve Officers' 
        Training Corps program or a retired member of the Army employed 
        as an administrator or instructor in the program under 
        subsection (d) of such section may not be paid a bonus under 
        subsection (a).''.

    (c) Amount of Bonus.--Subsection (d) of such section is amended to 
read as follows:
    ``(d) Amount of Bonus.--The amount of the bonus payable for a 
referral under subsection (a) may not exceed $2,000. The amount shall be 
payable in two lump sums as provided in subsection (e).''.

[[Page 120 STAT. 2258]]

    (d) Payment of Bonus.--Subsection (e) of such section is amended to 
read as follows:
    ``(e) Payment.--A bonus payable for a referral of a person under 
subsection (a) shall be paid as follows:
            ``(1) Not more than $1,000 shall be paid upon the 
        commencement of basic training by the person referred.
            ``(2) Not more than $1,000 shall be paid upon the completion 
        of basic training and individual advanced training by the person 
        referred.''.

    (e) Coordination With Receipt of Retired Pay.--Such section is 
further amended--
            (1) by redesignating subsection (g) as subsection (h); and
            (2) by inserting after subsection (f) the following new 
        subsection (g):

    ``(g) Coordination With Receipt of Retired Pay.--A bonus paid under 
this section to a member of the Army in a retired status is in addition 
to any compensation to which the member is entitled under title 10, 37, 
or 38, United States Code, or any other provision of law.''.
    (f) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act, and shall apply with 
respect to bonuses payable under section 645 of the National Defense 
Authorization Act for Fiscal Year 2006, as amended by this section, on 
or after that date.

            Subtitle C--Travel and Transportation Allowances

SEC. 631. TRAVEL AND TRANSPORTATION ALLOWANCES FOR TRANSPORTATION 
                        OF FAMILY MEMBERS INCIDENT TO ILLNESS OR 
                        INJURY OF MEMBERS.

    Section 411h(b)(1) of title 37, United States Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (C);
            (2) by striking the period at the end of subparagraph (D) 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
            ``(E) a person related to the member as described in 
        subparagraph (A), (B), (C), or (D) who is also a member of the 
        uniformed services.''.

              Subtitle D--Retired Pay and Survivor Benefits

SEC. 641. RETIRED PAY OF GENERAL AND FLAG OFFICERS TO BE BASED ON 
                        RATES OF BASIC PAY PROVIDED BY LAW.

    (a) Determination of Retired Pay Base.--Chapter 71 of title 10, 
United States Code, is amended by inserting after section 1407 the 
following new section:

``Sec. 1407a. Retired pay base: officers retired in general or flag 
                        officer grades

    ``(a) Rates of Basic Pay to Be Used in Determination.--In a case in 
which the determination under section 1406 or 1407 of this title of the 
retired pay base applicable to the computation

[[Page 120 STAT. 2259]]

of the retired pay of a covered general or flag officer involves a rate 
of basic pay payable to that officer for any period that was subject to 
a reduction under section 203(a)(2) of title 37 for such period, such 
retired-pay-base determination shall be made using the rate of basic pay 
for such period provided by law, rather than such rate as so reduced.
    ``(b) Covered General and Flag Officers.--In this section, the term 
`covered general or flag officer' means a member or former member who 
after September 30, 2006, is retired in a general officer grade or flag 
officer grade.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1407 the following new item:

``1407a.  Retired pay base: officers retired in general or flag officer 
           grades.''.

SEC. 642. INAPPLICABILITY OF RETIRED PAY MULTIPLIER MAXIMUM 
                        PERCENTAGE TO CERTAIN SERVICE OF MEMBERS 
                        OF THE ARMED FORCES IN EXCESS OF 30 YEARS.

    (a) In General.--Paragraph (3) of section 1409(b) of title 10, 
United States Code, is amended to read as follows:
            ``(3) 30 years of service.--
                    ``(A) Retirement before january 1, 2007.--In the 
                case of a member who retires before January 1, 2007, 
                with more than 30 years of creditable service, the 
                percentage to be used under subsection (a) is 75 
                percent.
                    ``(B) Retirement after december 31, 2006.--In the 
                case of a member who retires after December 31, 2006, 
                with more than 30 years of creditable service, the 
                percentage to be used under subsection (a) is the sum 
                of--
                          ``(i) 75 percent; and
                          ``(ii) the product (stated as a percentage) 
                      of--
                                    ``(I) 2\1/2\; and
                                    ``(II) the member's years of 
                                creditable service (as defined in 
                                subsection (c)) in excess of 30 years of 
                                creditable service, under conditions 
                                authorized for purposes of this 
                                subparagraph during a period designated 
                                by the Secretary of Defense for purposes 
                                of this subparagraph.''.

    (b) Retired Pay for Non-Regular Service.--Section 12739(c) of such 
title is amended--
            (1) by striking ``The total amount'' and inserting ``(1) 
        Except as provided in paragraph (2), the total amount''; and
            (2) by adding at the end the following new paragraph:
            ``(2) In the case of a person who retires after December 31, 
        2006, with more than 30 years of service credited to that person 
        under section 12733 of this title, the total amount of the 
        monthly retired pay computed under subsections (a) and (b) may 
        not exceed the sum of--
                    ``(A) 75 percent of the retired pay base upon which 
                the computation is based; and
                    ``(B) the product of--
                          ``(i) the retired pay base upon which the 
                      computation is based; and
                          ``(ii) 2\1/2\ percent of the years of service 
                      credited to that person under section 12733 of 
                      this title, for service under conditions 
                      authorized for purposes of

[[Page 120 STAT. 2260]]

                      this paragraph during a period designated by the 
                      Secretary of Defense for purposes of this 
                      paragraph.''.
SEC. 643. MILITARY SURVIVOR BENEFIT PLAN BENEFICIARIES UNDER 
                        INSURABLE INTEREST COVERAGE.

    (a) Authority to Elect New Beneficiary.--Section 1448(b)(1) of title 
10, United States Code, is amended--
            (1) by inserting ``or under subparagraph (G) of this 
        paragraph'' in the second sentence of subparagraph (E) before 
        the period at the end; and
            (2) by adding at the end the following new subparagraph:
                    ``(G) Election of new beneficiary upon death of 
                previous beneficiary.--
                          ``(i) Authority for election.--If the reason 
                      for discontinuation in the Plan is the death of 
                      the beneficiary, the participant in the Plan may 
                      elect a new beneficiary. Any such beneficiary must 
                      be a natural person with an insurable interest in 
                      the participant. Such an election may be made only 
                      during the 180-day period beginning on the date of 
                      the death of the previous beneficiary.
                          ``(ii) Procedures.--Such an election shall be 
                      in writing, signed by the participant, and made in 
                      such form and manner as the Secretary concerned 
                      may prescribe. Such an election shall be effective 
                      the first day of the first month following the 
                      month in which the election is received by the 
                      Secretary.
                          ``(iii) Vitiation of election by participant 
                      who dies within two years of election.--If a 
                      person providing an annuity under a election under 
                      clause (i) dies before the end of the two-year 
                      period beginning on the effective date of the 
                      election--
                                    ``(I) the election is vitiated; and
                                    ``(II) the amount by which the 
                                person's retired pay was reduced under 
                                section 1452 of this title that is 
                                attributable to the election shall be 
                                paid in a lump sum to the person who 
                                would have been the deceased person's 
                                beneficiary under the vitiated election 
                                if the deceased person had died after 
                                the end of such two-year period.''.

    (b) Change in Premium for Coverage of New Beneficiary.--Section 
1452(c) of such title is amended by adding at the end the following new 
paragraph:
            ``(5) Rule for designation of new insurable interest 
        beneficiary following death of original beneficiary.--The 
        Secretary of Defense shall prescribe in regulations premiums 
        which a participant making an election under section 
        1448(b)(1)(G) of this title shall be required to pay for 
        participating in the Plan pursuant to that election. The total 
        amount of the premiums to be paid by a participant under the 
        regulations shall be equal to the sum of the following:
                    ``(A) The total additional amount by which the 
                retired pay of the participant would have been reduced 
                before the effective date of the election if the 
                original beneficiary (i) had not died and had been 
                covered under the Plan through the date of the election, 
                and (ii) had been the

[[Page 120 STAT. 2261]]

                same number of years younger than the participant (if 
                any) as the new beneficiary designated under the 
                election.
                    ``(B) Interest on the amounts by which the retired 
                pay of the participant would have been so reduced, 
                computed from the dates on which the retired pay would 
                have been so reduced at such rate or rates and according 
                to such methodology as the Secretary of Defense 
                determines reasonable.
                    ``(C) Any additional amount that the Secretary 
                determines necessary to protect the actuarial soundness 
                of the Department of Defense Military Retirement Fund 
                against any increased risk for the fund that is 
                associated with the election.''.

    (c) <<NOTE: 10 USC 1448 note.>> Transition.--
            (1) Transition period.--In the case of a participant in the 
        Survivor Benefit Plan who made a covered insurable-interest 
        election (as defined in paragraph (2)) and whose designated 
        beneficiary under that election dies before the date of the 
        enactment of this Act or during the 18-month period beginning on 
        such date, the time period applicable for purposes of the 
        limitation in the third sentence of subparagraph (G)(i) of 
        section 1448(b)(1) of title 10, United States Code, as added by 
        subsection (a), shall be the two-year period beginning on the 
        date of the enactment of this Act (rather than the 180-day 
        period specified in that sentence).
            (2) Covered insurable-interest elections.--For purposes of 
        paragraph (1), a covered insurable-interest election is an 
        election under section 1448(b)(1) of title 10, United States 
        Code, made before the date of the enactment of this Act, or 
        during the 18-month period beginning on such date, by a 
        participant in the Survivor Benefit Plan to provide an annuity 
        under that plan to a natural person with an insurable interest 
        in that person.
            (3) Survivor benefit plan.--For purposes of this subsection, 
        the term ``Survivor Benefit Plan'' means the program under 
        subchapter II of chapter 73 of title 10, United States Code.
SEC. 644. MODIFICATION OF ELIGIBILITY FOR COMMENCEMENT OF 
                        AUTHORITY FOR OPTIONAL ANNUITIES FOR 
                        DEPENDENTS UNDER THE SURVIVOR BENEFIT 
                        PLAN.

    (a) In General.--Section 1448(d)(2)(B) of title 10, United States 
Code, is amended by striking ``who dies after November 23, 2003'' and 
inserting ``who dies after October 7, 2001''.
    (b) <<NOTE: 10 USC 1448 note.>> Applicability.--Any annuity payable 
to a dependent child under subchapter II of chapter 73 of title 10, 
United States Code, by reason of the amendment made by subsection (a) 
shall be payable only for months beginning on or after the date of the 
enactment of this Act.
SEC. 645. STUDY OF TRAINING COSTS, MANNING, OPERATIONS TEMPO, AND 
                        OTHER FACTORS THAT AFFECT RETENTION OF 
                        MEMBERS OF THE ARMED FORCES WITH SPECIAL 
                        OPERATIONS DESIGNATIONS.

    (a) Report Required.--Not later than August 1, 2007, the Secretary 
of Defense shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of

[[Page 120 STAT. 2262]]

the House of Representatives a report on factors that affect retention 
of members of the Armed Forces who have a special operations forces 
designation.
    (b) Elements.--The report under subsection (a) shall include the 
following:
            (1) Information on the cost of training of members of the 
        Armed Forces who have a special operations forces designation, 
        with such information displayed separately and shown as 
        aggregate costs of training for such members at the 4-year, 8-
        year, 12-year, 16-year, and 20-year points of service.
            (2) The average cost of special operations-unique training, 
        both predeployment and during deployment, for the number of 
        members of the Armed Forces who have a special operations forces 
        designation who have been deployed at least twice to areas in 
        which they were eligible for hostile fire pay.
            (3) For each component of the United States Special 
        Operations Command, an estimate of when the assigned strength of 
        that component will be under 90 percent of the authorized 
        strength of that component, taking into account anticipated 
        growth planned for in the most recent Quadrennial Defense 
        Review.
            (4) The percentage of members of the Armed Forces with a 
        special operations forces designation who have accumulated over 
        48 months of hostile fire pay and the percentage who have 
        accumulated over 60 months of such pay.

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

SEC. 661. TREATMENT OF PRICE SURCHARGES OF CERTAIN MERCHANDISE 
                        SOLD AT COMMISSARY STORES.

    (a) Merchandise Procured From Exchanges.--Subsection (c)(3) of 
section 2484 of title 10, United States Code, is amended--
            (1) by inserting ``(A)'' after ``(3)'';
            (2) by striking ``Subsections'' and inserting ``Except as 
        provided in subparagraph (B), subsections''; and
            (3) by adding at the end the following new subparagraph:

    ``(B) When a military exchange is the vendor of tobacco products or 
other merchandise authorized for sale in a commissary store under 
paragraph (1), any revenue above the cost of procuring the merchandise 
shall be allocated as if the revenue were a uniform sales price 
surcharge described in subsection (d).''.
    (b) Merchandise Treated as Noncommissary Store Inventory.--
Subsection (g) of such section is amended--
            (1) by inserting ``(1)'' before ``Notwithstanding'';
            (2) by striking ``Subsections'' and inserting ``Except as 
        provided in paragraph (2), subsections''; and
            (3) by adding at the end the following new paragraph:

    ``(2) When tobacco products are authorized for sale in a commissary 
store as noncommissary store inventory, any revenue above the cost of 
procuring the tobacco products shall be allocated as if the revenue were 
a uniform sales price surcharge described in subsection (d).''.

[[Page 120 STAT. 2263]]

SEC. 662. LIMITATIONS ON LEASE OF NON-EXCESS DEPARTMENT OF DEFENSE 
                        PROPERTY FOR PROTECTION OF MORALE, 
                        WELFARE, AND RECREATION ACTIVITIES AND 
                        REVENUE.

    (a) Additional Condition on Use of Lease Authority.--Subsection (b) 
section 2667 of title 10, United States Code, is amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(6) except as otherwise provided in subsection (d), shall 
        require the lessee to provide the covered entities specified in 
        paragraph (1) of that subsection the right to establish and 
        operate a community support facility or provide community 
        support services, or seek equitable compensation for morale, 
        welfare, and recreation programs of the Department of Defense in 
        lieu of the operation of such a facility or the provision of 
        such services, if the Secretary determines that the lessee will 
        provide merchandise or services in direct competition with 
        covered entities through the lease.''.

    (b) Application of Condition; Waiver.--Such section is further 
amended--
            (1) by redesignating subsections (d) through (i) as 
        subsections (e) through (j), respectively; and
            (2) by inserting after subsection (c) the following new 
        subsection (d):

    ``(d) Community Support Facilities and Community Support Services 
Under Lease; Waiver.--(1) In this subsection and subsection (b)(6), the 
term `covered entity' means each of the following:
            ``(A) The Army and Air Force Exchange Service.
            ``(B) The Navy Exchange Service Command.
            ``(C) The Marine Corps exchanges.
            ``(D) The Defense Commissary Agency.
            ``(E) The revenue-generating nonappropriated fund activities 
        of the Department of Defense conducted for the morale, welfare, 
        and recreation of members of the armed forces.

    ``(2) The Secretary of a military department may waive the 
requirement in subsection (b)(6) with respect to a lease if--
            ``(A) the lease is entered into under subsection (g); or
            ``(B) the Secretary determines that the waiver is in the 
        best interests of the Government.

    ``(3) <<NOTE: Notification.>> The Secretary of the military 
department concerned shall provide to the congressional defense 
committees written notice of each waiver under paragraph (2), including 
the reasons for the waiver.

    ``(4) <<NOTE: Deadline.>> The covered entities shall exercise the 
right provided in subsection (b)(6) with respect to a lease, if at all, 
not later than 90 days after receiving notice from the Secretary of the 
military department concerned regarding the opportunity to exercise such 
right with respect to the lease. The Secretary may, at the discretion of 
the Secretary, extend the period under this paragraph for the exercise 
of the right with respect to a lease for such additional period as the 
Secretary considers appropriate.

    ``(5) <<NOTE: Regulations.>> The Secretary of Defense shall 
prescribe in regulations uniform procedures and criteria for the 
evaluation of proposals 


[[Page 120 STAT. 2264]]

for enhanced use leases involving the operation of community support 
facilities or the provision of community support services by either a 
lessee under this section or a covered entity.
    ``(6) <<NOTE: Notification.>> The Secretary of the military 
department concerned shall provide written notification to the Committee 
on Armed Services of the Senate and the Committee on Armed Services of 
the House of Representatives regarding all leases under this section 
that include the operation of a community support facility or the 
provision of community support services, regardless of whether the 
facility will be operated by a covered entity or the lessee or the 
services will be provided by a covered entity or the lessee.''.

    (c) Definitions.--Subsection (i) of such section, as redesignated by 
subsection (b)(1) of this section, is amended to read as follows:
    ``(i) Definitions.--In this section:
            ``(1) The term `community support facility' includes an 
        ancillary supporting facility (as that term is defined in 
        section 2871(1) of this title).
            ``(2) The term `community support services' includes 
        revenue-generating food, recreational, lodging support services, 
        and resale operations and other retail facilities and services 
        intended to support a community.
            ``(3) The term `military installation' has the meaning given 
        such term in section 2687(e)(1) of this title.''.

    (d) Stylistic, Technical, and Conforming Amendments.--Such section 
is further amended--
            (1) in subsection (a), by inserting ``Lease Authority.--'' 
        after ``(a)'';
            (2) in subsection (b), by inserting ``Conditions on 
        Leases.--'' after ``(b)'';
            (3) in subsection (c), by inserting ``Types of In-Kind 
        Consideration.--'' after ``(c)'';
            (4) in subsection (e), as redesignated by subsection (b)(1) 
        of this section--
                    (A) by inserting ``Deposit and Use of Proceeds.--'' 
                after ``(e)''; and
                    (B) in paragraph (5), by striking ``subsection (f)'' 
                and inserting ``subsection (g)'';
            (5) in subsection (f), as redesignated by subsection (b)(1) 
        of this section, by inserting ``Treatment of Lessee Interest in 
        Property.--'' after ``(f)'';
            (6) in subsection (g), as redesignated by subsection (b)(1) 
        of this section--
                    (A) by inserting ``Special Rules for Base Closure 
                and Realignment Property.--'' after ``(g)''; and
                    (B) in paragraph (1), by striking ``subsection 
                (a)(3)'' and inserting ``subsection (a)(2)'';
            (7) in subsection (h), as redesignated by subsection (b)(1) 
        of this section, by inserting ``Competitive Procedures for 
        Selection of Certain Lessees; Exception.--'' after ``(h)''; and
            (8) in subsection (j), as redesignated by subsection (b)(1) 
        of this section, by inserting ``Exclusion of Certain Lands.--'' 
        after ``(j)''.

[[Page 120 STAT. 2265]]

SEC. 663. REPORT ON COST EFFECTIVENESS OF PURCHASING COMMERCIAL 
                        INSURANCE FOR COMMISSARY AND EXCHANGE 
                        FACILITIES AND FACILITIES OF OTHER MORALE, 
                        WELFARE, AND RECREATION PROGRAMS AND 
                        NONAPPROPRIATED FUND INSTRUMENTALITIES.

    (a) Report Required.--Not later than July 31, 2007, the Secretary of 
Defense shall submit to Congress a report evaluating the cost 
effectiveness of the Defense Commissary Agency and the nonappropriated 
fund activities specified in subsection (b) purchasing commercial 
insurance to protect financial interests in facilities operated by the 
Defense Commissary Agency or those nonappropriated fund activities.
    (b) <<NOTE: Applicability.>> Covered Nonappropriated Fund 
Activities.--The report shall apply with respect to--
            (1) the Army and Air Force Exchange Service;
            (2) the Navy Exchange Service Command;
            (3) the Marine Corps exchanges; and
            (4) any nonappropriated fund activity of the Department of 
        Defense for the morale, welfare, and recreation of members of 
        the Armed Forces.
SEC. 664. STUDY AND REPORT REGARDING ACCESS OF DISABLED PERSONS TO 
                        MORALE, WELFARE, AND RECREATION FACILITIES 
                        AND ACTIVITIES.

    (a) Study Required.--The Secretary of Defense shall conduct a study 
regarding the current capability of morale, welfare, and recreation 
facilities and activities operated by nonappropriated fund 
instrumentalities of the Department of Defense to provide access to and 
accommodate disabled persons who are otherwise eligible to use such 
facilities or participate in such activities and the legal requirements 
regarding such access and accommodation applicable to these morale, 
welfare, and recreation facilities and activities, with specific 
attention to the applicability of section 504 of the Rehabilitation Act 
of 1973 (29 U.S.C. 794).
    (b) Elements of Study.--In conducting the study, the Secretary of 
Defense shall address at a minimum the following:
            (1) The current plans of the Secretary of Defense and the 
        Secretaries of the military departments to improve the access 
        and accommodation of disabled persons to morale, welfare, and 
        recreation facilities and activities operated by nonappropriated 
        fund instrumentalities of the Department of Defense, including 
        plans to make available additional golf carts at military golf 
        courses that are accessible for disabled persons authorized to 
        use such courses, and whether any portion of these plans require 
        congressional authorization or funding.
            (2) The timing and cost of making these morale, welfare, and 
        recreation facilities and activities fully accessible to 
        disabled persons.
            (3) The expected utilization rates of these morale, welfare, 
        and recreation facilities and activities by disabled persons, if 
        the facilities and activities were fully accessible to disabled 
        persons.
            (4) Any legal requirements applicable to providing golf 
        carts at military golf courses that are accessible for disabled 
        persons authorized to use such courses and the current 
        availability of accessible golf carts at such courses.

[[Page 120 STAT. 2266]]

    (c) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to Congress 
a report containing the results of the study and any related findings, 
conclusions, and recommendations that the Secretary considers to be 
appropriate concerning the access of disabled persons to morale, 
welfare, and recreation facilities and activities, and specifically the 
Secretary's conclusions on making accessible golf carts available at all 
military golf courses for use by disabled persons authorized to use such 
courses.

                        Subtitle F--Other Matters

SEC. 670. LIMITATIONS ON TERMS OF CONSUMER CREDIT EXTENDED TO 
                        SERVICEMEMBERS AND DEPENDENTS.

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

``Sec. 987. Terms of consumer credit extended to members and dependents: 
                        limitations

    ``(a) Interest.--A creditor who extends consumer credit to a covered 
member of the armed forces or a dependent of such a member shall not 
require the member or dependent to pay interest with respect to the 
extension of such credit, except as--
            ``(1) agreed to under the terms of the credit agreement or 
        promissory note;
            ``(2) authorized by applicable State or Federal law; and
            ``(3) not specifically prohibited by this section.

    ``(b) Annual Percentage Rate.--A creditor described in subsection 
(a) may not impose an annual percentage rate of interest greater than 36 
percent with respect to the consumer credit extended to a covered member 
or a dependent of a covered member.
    ``(c) Mandatory Loan Disclosures.--
            ``(1) Information required.--With respect to any extension 
        of consumer credit (including any consumer credit originated or 
        extended through the internet) to a covered member or a 
        dependent of a covered member, a creditor shall provide to the 
        member or dependent the following information orally and in 
        writing before the issuance of the credit:
                    ``(A) A statement of the annual percentage rate of 
                interest applicable to the extension of credit.
                    ``(B) Any disclosures required under the Truth in 
                Lending Act (15 U.S.C. 1601 et seq.).
                    ``(C) A clear description of the payment obligations 
                of the member or dependent, as applicable.
            ``(2) <<NOTE: Regulations.>> Terms.--Such disclosures shall 
        be presented in accordance with terms prescribed by the 
        regulations issued by the Board of Governors of the Federal 
        Reserve System to implement the Truth in Lending Act (15 U.S.C. 
        1601 et seq.).

    ``(d) Preemption.--
            ``(1) Inconsistent laws.--Except as provided in subsection 
        (f)(2), this section preempts any State or Federal law, rule, or 
        regulation, including any State usury law, to the extent that 
        such law, rule, or regulation is inconsistent with this section, 
        except that this section shall not preempt any such law, rule, 
        or regulation that provides protection to a covered

[[Page 120 STAT. 2267]]

        member or a dependent of such a member in addition to the 
        protection provided by this section.
            ``(2) Different treatment under state law of members and 
        dependents prohibited.--States shall not--
                    ``(A) authorize creditors to charge covered members 
                and their dependents annual percentage rates of interest 
                for loans higher than the legal limit for residents of 
                the State; or
                    ``(B) permit violation or waiver of any State 
                consumer lending protections for the benefit of 
                residents of the State on the basis of nonresident or 
                military status of a covered member or dependent of such 
                a member, regardless of the member's or dependent's 
                domicile or permanent home of record.

    ``(e) Limitations.--It shall be unlawful for any creditor to extend 
consumer credit to a covered member or a dependent of such a member with 
respect to which--
            ``(1) the creditor rolls over, renews, repays, refinances, 
        or consolidates any consumer credit extended to the borrower by 
        the same creditor with the proceeds of other credit extended to 
        the same covered member or a dependent;
            ``(2) the borrower is required to waive the borrower's right 
        to legal recourse under any otherwise applicable provision of 
        State or Federal law, including any provision of the 
        Servicemembers Civil Relief Act;
            ``(3) the creditor requires the borrower to submit to 
        arbitration or imposes onerous legal notice provisions in the 
        case of a dispute;
            ``(4) the creditor demands unreasonable notice from the 
        borrower as a condition for legal action;
            ``(5) the creditor uses a check or other method of access to 
        a deposit, savings, or other financial account maintained by the 
        borrower, or the title of a vehicle as security for the 
        obligation;
            ``(6) the creditor requires as a condition for the extension 
        of credit that the borrower establish an allotment to repay an 
        obligation; or
            ``(7) the borrower is prohibited from prepaying the loan or 
        is charged a penalty or fee for prepaying all or part of the 
        loan.

    ``(f) Penalties and Remedies.--
            ``(1) Misdemeanor.--A creditor who knowingly violates this 
        section shall be fined as provided in title 18, or imprisoned 
        for not more than one year, or both.
            ``(2) Preservation of other remedies.--The remedies and 
        rights provided under this section are in addition to and do not 
        preclude any remedy otherwise available under law to the person 
        claiming relief under this section, including any award for 
        consequential and punitive damages.
            ``(3) Contract void.--Any credit agreement, promissory note, 
        or other contract prohibited under this section is void from the 
        inception of such contract.
            ``(4) Arbitration.--Notwithstanding section 2 of title 9, or 
        any other Federal or State law, rule, or regulation, no 
        agreement to arbitrate any dispute involving the extension of 
        consumer credit shall be enforceable against any covered member 
        or dependent of such a member, or any person who

[[Page 120 STAT. 2268]]

        was a covered member or dependent of that member when the 
        agreement was made.

    ``(g) Servicemembers Civil Relief Act Protections Unaffected.--
Nothing in this section may be construed to limit or otherwise affect 
the applicability of section 207 of the Servicemembers Civil Relief Act 
(50 U.S.C. App. 527).
    ``(h) Regulations.--(1) The Secretary of Defense shall prescribe 
regulations to carry out this section.
    ``(2) Such regulations shall establish the following:
            ``(A) Disclosures required of any creditor that extends 
        consumer credit to a covered member or dependent of such a 
        member.
            ``(B) The method for calculating the applicable annual 
        percentage rate of interest on such obligations, in accordance 
        with the limit established under this section.
            ``(C) A maximum allowable amount of all fees, and the types 
        of fees, associated with any such extension of credit, to be 
        expressed and disclosed to the borrower as a total amount and as 
        a percentage of the principal amount of the obligation, at the 
        time at which the transaction is entered into.
            ``(D) Definitions of `creditor' under paragraph (5) and 
        `consumer credit' under paragraph (6) of subsection (i), 
        consistent with the provisions of this section.
            ``(E) Such other criteria or limitations as the Secretary of 
        Defense determines appropriate, consistent with the provisions 
        of this section.

    ``(3) In prescribing regulations under this subsection, the 
Secretary of Defense shall consult with the following:
            ``(A) The Federal Trade Commission.
            ``(B) The Board of Governors of the Federal Reserve System.
            ``(C) The Office of the Comptroller of the Currency.
            ``(D) The Federal Deposit Insurance Corporation.
            ``(E) The Office of Thrift Supervision.
            ``(F) The National Credit Union Administration.
            ``(G) The Treasury Department.

    ``(i) Definitions.--In this section:
            ``(1) Covered member.--The term `covered member' means a 
        member of the armed forces who is--
                    ``(A) on active duty under a call or order that does 
                not specify a period of 30 days or less; or
                    ``(B) on active Guard and Reserve Duty.
            ``(2) Dependent.--The term `dependent', with respect to a 
        covered member, means--
                    ``(A) the member's spouse;
                    ``(B) the member's child (as defined in section 
                101(4) of title 38); or
                    ``(C) an individual for whom the member provided 
                more than one-half of the individual's support for 180 
                days immediately preceding an extension of consumer 
                credit covered by this section.
            ``(3) Interest.--The term `interest' includes all cost 
        elements associated with the extension of credit, including 
        fees, service charges, renewal charges, credit insurance 
        premiums, any ancillary product sold with any extension of 
        credit to a servicemember or the servicemember's dependent, as 
        applicable, and any other charge or premium with respect to the 
        extension of consumer credit.

[[Page 120 STAT. 2269]]

            ``(4) Annual percentage rate.--The term `annual percentage 
        rate' has the same meaning as in section 107 of the Truth and 
        Lending Act (15 U.S.C. 1606), as implemented by regulations of 
        the Board of Governors of the Federal Reserve System. For 
        purposes of this section, such term includes all fees and 
        charges, including charges and fees for single premium credit 
        insurance and other ancillary products sold in connection with 
        the credit transaction, and such fees and charges shall be 
        included in the calculation of the annual percentage rate.
            ``(5) Creditor.--The term `creditor' means a person--
                    ``(A) who--
                          ``(i) is engaged in the business of extending 
                      consumer credit; and
                          ``(ii) meets such additional criteria as are 
                      specified for such purpose in regulations 
                      prescribed under this section; or
                    ``(B) who is an assignee of a person described in 
                subparagraph (A) with respect to any consumer credit 
                extended.
            ``(6) Consumer credit.--The term `consumer credit' has the 
        meaning provided for such term in regulations prescribed under 
        this section, except that such term does not include (A) a 
        residential mortgage, or (B) a loan procured in the course of 
        purchasing a car or other personal property, when that loan is 
        offered for the express purpose of financing the purchase and is 
        secured by the car or personal property procured.''.

    (b) Clerical Amendment.--The table of sections at the beginning of 
such title is amended by adding at the end the following new item:

``987. Terms of consumer credit extended to members and dependents: 
           limitations.''.

    (c) <<NOTE: 10 USC 987 note.>> Effective Date.--
            (1) In general.--Except as provided in paragraph (2), 
        section 987 of title 10, United States Code, as added by 
        subsection (a), shall take effect on October 1, 2007, or on such 
        earlier date as may be prescribed by the Secretary of Defense, 
        and shall apply with respect to extensions of consumer credit on 
        or after such effective date.
            (2) Authority to prescribe regulations.--Subsection (h) of 
        such section shall take effect on the date of the enactment of 
        this Act.
            (3) Publication of earlier effective date.--
        If <<NOTE: Federal Register, publication.>> the Secretary of 
        Defense prescribes an effective date for section 987 of title 
        10, United States Code, as added by subsection (a), earlier than 
        October 1, 2007, the Secretary shall publish that date in the 
        Federal Register. <<NOTE: Deadline.>> Such publication shall be 
        made not less than 90 days before that earlier effective date.

    (d) <<NOTE: 10 USC 987 note.>> Interim Regulations.--The Secretary 
of Defense may prescribe interim regulations as necessary to carry out 
such section. For the purpose of prescribing such interim regulations, 
the Secretary is excepted from compliance with the notice-and-comment 
requirements of section 553 of title 5, United States 
Code. <<NOTE: Expiration date.>> All interim rules prescribed under the 
authority of this subsection that are not earlier superseded by final 
rules shall expire no later than 270 days after the effective date of 
section 987 of title 10, United States Code, as added by this section.

[[Page 120 STAT. 2270]]

SEC. 671. ENHANCEMENT OF AUTHORITY TO WAIVE CLAIMS FOR OVERPAYMENT 
                        OF PAY AND ALLOWANCES AND TRAVEL AND 
                        TRANSPORTATION ALLOWANCES.

    (a) Maximum Waiver Amount; Time for Exercise of Authority.--Section 
2774 of title 10, United States Code, is amended--
            (1) in subsection (a)(2)(A), by striking ``$1,500'' and 
        inserting ``$10,000''; and
            (2) in subsection (b)(2), by striking ``three years'' and 
        inserting ``five years''.

    (b) Conforming Amendments Regarding National Guard.--Section 716 of 
title 32, United States Code, is amended--
            (1) in subsection (a)(2)(A), by striking ``$1,500'' and 
        inserting ``$10,000''; and
            (2) in subsection (b)(2), by striking ``three years'' and 
        inserting ``five years''.

    (c) <<NOTE: 10 USC 2774 note.>> Effective Date.--The amendments made 
by this section shall take effect on March 1, 2007.
SEC. 672. EXCEPTION FOR NOTICE TO CONSUMER REPORTING AGENCIES 
                        REGARDING DEBTS OR ERRONEOUS PAYMENTS 
                        PENDING A DECISION TO WAIVE, REMIT, OR 
                        CANCEL.

    (a) Exception.--Section 2780(b) of title 10, United States Code, is 
amended--
            (1) by striking ``The Secretary'' and inserting ``(1) Except 
        as provided in paragraph (2), the Secretary of Defense''; and
            (2) by adding at the end the following new paragraph:

    ``(2) No disclosure shall be made under paragraph (1) with respect 
to an indebtedness while a decision regarding waiver of collection of 
the indebtedness is pending under section 2774 of this title or section 
716 of title 32, or while a decision regarding remission or cancellation 
of the indebtedness is pending under section 4837, 6161, or 9837 of this 
title, unless the Secretary concerned (as defined in section 101(5) of 
title 37) determines that disclosure under that paragraph pending such 
decision is in the best interests of the United States.''.
    (b) <<NOTE: 10 USC 2780 note.>> Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on March 1, 2007.
            (2) Application to prior actions.--Paragraph (2) of section 
        2780(b) of title 10, United States Code, as added by subsection 
        (a), shall not be construed to apply to or invalidate any action 
        taken under such section before March 1, 2007.

    (c) Report.--Not later than March 1, 2007, the Secretary of Defense 
shall submit to the congressional defense committees a report on the 
requirement in section 2780(b) of title 10, United States Code, to 
disclose to consumer reporting agencies in accordance with section 3711 
of title 31, United States Code, information concerning certain 
indebtedness owed to the United States. The report shall include the 
following:
            (1) The total number of members of the Armed Forces whose 
        indebtedness has been disclosed to consumer reporting agencies 
        under section 2780(b), United States Code, during the period 
        beginning on January 1, 2003, and ending on June 30, 2006.
            (2) The circumstances under which a decision to recover the 
        indebtedness was made, rather than a decision to waive,

[[Page 120 STAT. 2271]]

        remit, or cancel the indebtedness under the provisions of law 
        referred to in paragraph (2) of such section, as added by 
        subsection (a), and the title of the person who made the 
        decision.
            (3) The cost of contracts for collection services to recover 
        indebtedness owed to the United States that is delinquent.
            (4) An evaluation of whether or not such contracts, and the 
        practice of disclosing to consumer reporting agencies the 
        identity of members of the Armed Forces who owe a delinquent 
        debt to the United States, has been effective in reducing 
        indebtedness to the United States.
            (5) Such recommendations as the Secretary considers 
        appropriate regarding the continuing disclosure of such 
        information with respect to members of the Armed Forces.
SEC. 673. EXPANSION AND ENHANCEMENT OF AUTHORITY TO REMIT OR 
                        CANCEL INDEBTEDNESS OF MEMBERS AND FORMER 
                        MEMBERS OF THE ARMED FORCES INCURRED ON 
                        ACTIVE DUTY.

    (a) Department of the Army.--
            (1) Coverage of all members and former members.--Subsection 
        (a) of section 4837 of title 10, United States Code, is amended 
        by striking ``of a member'' and all that follows through ``on 
        active duty'' and inserting ``of a person to the United States 
        or any instrumentality of the United States incurred while the 
        person was serving on active duty as a member of the Army''.
            (2) Repeal of limitation on time for exercise of 
        authority.--Such section is further amended--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsections (c) and (d) as 
                subsections (b) and (c), respectively.
            (3) Repeal of termination of modified authority.--Paragraph 
        (3) of section 683(a) of the National Defense Authorization Act 
        for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3322; 10 
        U.S.C. 4837 note) is repealed.

    (b) Department of the Navy.--
            (1) Coverage of all members and former members.--Section 
        6161 of title 10, United States Code, is amended by striking 
        ``of a member'' and all that follows through ``on active duty'' 
        and inserting ``of a person to the United States or any 
        instrumentality of the United States incurred while the person 
        was serving on active duty as a member of the naval service''.
            (2) Repeal of limitation on time for exercise of 
        authority.--Such section is further amended--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsections (c) and (d) as 
                subsections (b) and (c), respectively.
            (3) Repeal of termination of modified authority.--Paragraph 
        (3) of section 683(b) of the National Defense Authorization Act 
        for Fiscal Year 2006 (119 Stat. 3323; 10 U.S.C. 6161 note) is 
        repealed.

    (c) Department of the Air Force.--
            (1) Coverage of all members and former members.--Subsection 
        (a) of section 9837 of title 10, United States Code, is amended 
        by striking ``of a member'' and all that follows through ``on 
        active duty'' and inserting ``of a person to the United States 
        or any instrumentality of the United States

[[Page 120 STAT. 2272]]

        incurred while the person was serving on active duty as a member 
        of the Air Force''.
            (2) Repeal of limitation on time for exercise of 
        authority.--Such section is further amended--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsections (c) and (d) as 
                subsections (b) and (c), respectively.
            (3) Repeal of termination of modified authority.--Paragraph 
        (3) of section 683(c) of the National Defense Authorization Act 
        for Fiscal Year 2006 (119 Stat. 3324; 10 U.S.C. 9837 note) is 
        repealed.

    (d) <<NOTE: 10 USC 4837 note.>> Deadline for Regulations.--The 
Secretary of Defense shall prescribe the regulations required for 
purposes of sections 4837, 6161, and 9837 of title 10, United States 
Code, as amended by this section, not later than March 1, 2007.

    (e) Clarifying and Editorial Amendments.--
            (1) Secretary of the army.--Subsection (a) of section 4837 
        of title 10, United States Code, as amended by subsection 
        (a)(1), is further amended--
                    (A) by striking ``If the'' and all that follows 
                through ``States, the Secretary'' and inserting ``The 
                Secretary of the Army''; and
                    (B) by inserting before the period at the end ``, 
                but only if the Secretary considers such action to be in 
                the best interest of the United States''.
            (2) Secretary of the navy.--Subsection (a) of section 6161 
        of such title, as amended by subsection (b)(1), is further 
        amended--
                    (A) by striking ``If the'' and all that follows 
                through ``States, the Secretary'' and inserting ``The 
                Secretary of the Navy''; and
                    (B) by inserting before the period at the end ``, 
                but only if the Secretary considers such action to be in 
                the best interest of the United States''.
            (3) Secretary of the air force.--Subsection (a) of section 
        9837 of such title, as amended by subsection (c)(1), is further 
        amended--
                    (A) by striking ``If the'' and all that follows 
                through ``States, the Secretary'' and inserting ``The 
                Secretary of the Air Force''; and
                    (B) by inserting before the period at the end ``, 
                but only if the Secretary considers such action to be in 
                the best interest of the United States''.
SEC. 674. PHASED RECOVERY OF OVERPAYMENTS OF PAY MADE TO MEMBERS 
                        OF THE UNIFORMED SERVICES.

    (a) Phased Recovery Required; Maximum Monthly Installment.--
Subsection (c) of section 1007 of title 37, United States Code, is 
amended by adding at the end the following new paragraph:
    ``(3) If the indebtedness of a member of the uniformed services to 
the United States is due to the overpayment of pay or allowances to the 
member through no fault of the member, the amount of the overpayment 
shall be recovered in monthly installments. The amount deducted from the 
pay of the member for a month to recover the overpayment amount may not 
exceed 20 percent of the member's pay for that month unless the member 
requests or consents to collection of the overpayment at an accelerated 
rate.''.

[[Page 120 STAT. 2273]]

    (b) Recovery Delay for Injured Members.--Such subsection is further 
amended by inserting after paragraph (3), as added by subsection (a), 
the following new paragraph:
    ``(4) If a member of the uniformed services is injured or wounded 
under the circumstances described in section 310(a)(2)(C) of this title 
or, while in the line of duty, incurs a wound, injury, or illness in a 
combat operation or combat zone designated by the Secretary of Defense, 
any overpayment of pay or allowances made to the member while the member 
recovers from the wound, injury, or illness may not be deducted from the 
member's pay until--
            ``(A) the end of the 90-day period beginning on the date on 
        which the member is notified of the overpayment; or
            ``(B) such earlier date as may be requested or agreed to by 
        the member.''.

    (c) Conforming Amendments.--Such subsection is further amended--
            (1) by inserting ``(1)'' before ``Under regulations'';
            (2) by striking ``his pay'' both places it appears and 
        inserting ``the member's pay'';
            (3) by striking ``However, after'' and inserting the 
        following:

    ``(2) After''; and
            (4) by inserting ``by a member of the uniformed services'' 
        after ``actually received''.
SEC. 675. <<NOTE: 10 USC 1781 note.>> JOINT FAMILY SUPPORT 
                        ASSISTANCE PROGRAM.

    (a) Program Required.--The Secretary of Defense shall carry out a 
joint family support assistance program for the purpose of providing to 
families of members of the Armed Forces the following types of 
assistance:
            (1) Financial and material assistance.
            (2) Mobile support services.
            (3) Sponsorship of volunteers and family support 
        professionals for the delivery of support services.
            (4) Coordination of family assistance programs and 
        activities provided by Military OneSource, Military Family Life 
        Consultants, counselors, the Department of Defense, other 
        Federal agencies, State and local agencies, and non-profit 
        entities.
            (5) Facilitation of discussion on military family assistance 
        programs, activities, and initiatives between and among the 
        organizations, agencies, and entities referred to in paragraph 
        (4).
            (6) Such other assistance that the Secretary considers 
        appropriate.

    (b) Locations.--The Secretary of Defense shall carry out the program 
in not more than six areas of the United States selected by the 
Secretary. Up to three of the areas selected for the program shall be 
areas that are geographically isolated from military installations.
    (c) Resources and Volunteers.--The Secretary of Defense shall 
provide personnel and other resources of the Department of Defense 
necessary for the implementation and operation of the program and may 
accept and utilize the services of non-Government volunteers and non-
profit entities under the program.
    (d) Procedures.--The Secretary of Defense shall establish procedures 
for the operation of the program and for the provision of assistance to 
families of members of the Armed Forces under the program.

[[Page 120 STAT. 2274]]

    (e) Relation to Family Support Centers.--The program is not intended 
to operate in lieu of existing family support centers, but is instead 
intended to augment the activities of the family support centers.
    (f) Implementation Plan.--
            (1) Plan required.--Not <<NOTE: Deadline.>> later than 90 
        days after the date on which funds are first obligated for the 
        program, the Secretary of Defense shall submit to the 
        congressional defense committees a report setting forth a plan 
        for the implementation of the program.
            (2) Elements.--The plan required under paragraph (1) shall 
        include the following:
                    (A) A description of the actions taken to select the 
                areas in which the program will be conducted.
                    (B) A description of the procedures established 
                under subsection (d).
                    (C) A review of proposed actions to be taken under 
                the program to improve coordination of family assistance 
                program and activities between and among the Department 
                of Defense, other Federal agencies, State and local 
                agencies, and non-profit entities.

    (g) Report.--
            (1) Report required.--Not later than 270 days after the date 
        on which funds are first obligated for the program, the 
        Secretary of Defense shall submit to the congressional defense 
        committees a report on the program.
            (2) Elements.--The report shall include the following:
                    (A) A description of the program, including the 
                areas in which the program is conducted, the procedures 
                established under subsection (d) for operation of the 
                program, and the assistance provided through the program 
                for families of members of the Armed Forces.
                    (B) An assessment of the effectiveness of the 
                program in providing assistance to families of members 
                of the Armed Forces.
                    (C) An assessment of the advisability of extending 
                the program or making it permanent.

    (h) Duration.--The authority to carry out the program shall expire 
at the end of the three-year period beginning on the date on which funds 
are first obligated for the program.
SEC. 676. <<NOTE: Establishment.>> SPECIAL WORKING GROUP ON 
                        TRANSITION TO CIVILIAN EMPLOYMENT OF 
                        NATIONAL GUARD AND RESERVE MEMBERS 
                        RETURNING FROM DEPLOYMENT IN OPERATION 
                        IRAQI FREEDOM OR OPERATION ENDURING 
                        FREEDOM.

    (a) Working Group Required.--The Secretary of Defense shall 
establish within the Department of Defense a working group to identify 
and assess the needs of members of the National Guard and Reserve 
returning from deployment in Operation Iraqi Freedom or Operation 
Enduring Freedom in making the transition to civilian employment on 
their return from such deployment.
    (b) Members.--
            (1) Appointment.--Subject to paragraph (2), the Secretary of 
        Defense shall appoint the members of the working group. The 
        Secretary of Defense shall attempt to achieve a balance of 
        members on the working group from among employees of the 
        following agencies:

[[Page 120 STAT. 2275]]

                    (A) The Department of Defense.
                    (B) The Department of Veterans Affairs.
                    (C) The Department of Labor.
            (2) Concurrence.--The appointment of employees of the 
        Department of Veterans Affairs and the Department of Labor under 
        paragraph (1) shall be subject to the concurrence of the 
        Secretary of Veterans Affairs and the Secretary of Labor, 
        respectively.

    (c) Responsibilities.--The working group shall--
            (1) identify and assess the needs of members of the National 
        Guard and Reserve returning from deployment in Operation Iraqi 
        Freedom or Operation Enduring Freedom in making the transition 
        to civilian employment on their return from deployment, 
        including the needs of--
                    (A) members who were self-employed before deployment 
                and seek to return to such employment after deployment;
                    (B) members who were students before deployment and 
                seek to return to school or commence employment after 
                deployment;
                    (C) members who have experienced multiple recent 
                deployments; and
                    (D) members who have been wounded or injured during 
                deployment;
            (2) identify and assess the extent to which such members 
        receive promotions on their return from deployment in Operation 
        Iraqi Freedom or Operation Enduring Freedom or experience 
        constructive termination by their employers as a result of such 
        deployment; and
            (3) develop recommendations on means of improving assistance 
        to such members in meeting the needs identified in paragraph (1) 
        on their return from deployment in Operation Iraqi Freedom or 
        Operation Enduring Freedom.

    (d) Consultation.--In carrying out its responsibilities under 
subsection (c), the working group shall consult with the following:
            (1) Employees of the Small Business Administration.
            (2) Representatives of employers that employ, and 
        associations of employers whose members employ, members of the 
        National Guard and Reserve deployed in Operation Iraqi Freedom 
        or Operation Enduring Freedom.
            (3) Representatives of employee assistance organizations.
            (4) Representatives of organizations that assist wounded or 
        injured members of the National Guard and Reserves in finding or 
        sustaining employment.
            (5) Representatives of such other public or private 
        organizations and entities as the working group considers 
        appropriate.

    (e) Report.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, the working group established under 
        subsection (a) shall submit to the Secretary of Defense and 
        Congress a report on its activities under subsection (c).
            (2) Elements.--The report shall include the following:
                    (A) The results of the identifications and 
                assessments required under subsection (c).
                    (B) The recommendations developed under subsection 
                (c)(3), including recommendations on the following:

[[Page 120 STAT. 2276]]

                          (i) The provision of outreach and training to 
                      employers, employment assistance organizations, 
                      and associations of employers on the employment 
                      and transition needs of members of the National 
                      Guard and Reserve returning from deployment in 
                      Operation Iraqi Freedom or Operation Enduring 
                      Freedom.
                          (ii) The provision of outreach and training to 
                      employers, employment assistance organizations, 
                      and associations of employers on the needs of 
                      family members of such members.
                          (iii) The improvement of collaboration between 
                      the public and private sectors in order to ensure 
                      the successful transition of such members into 
                      civilian employment upon their return from such 
                      deployment.
            (3) Availability to public.--
        The <<NOTE: Internet.>> Secretary shall take appropriate actions 
        to make the report available to the public, including through 
        the Internet website of the Department of Defense.

    (f) Termination.--The working group shall terminate on the date that 
is two years after the date of the enactment of this Act.
    (g) Employment Assistance Organization Defined.--In this section, 
the term ``employment assistance organization'' means an organization or 
entity, whether public or private, that provides assistance to 
individuals in finding or retaining employment, including organizations 
and entities under military career support programs.
SEC. 677. AUDIT OF PAY ACCOUNTS OF MEMBERS OF THE ARMY EVACUATED 
                        FROM A COMBAT ZONE FOR INPATIENT CARE.

    (a) Audit Required.--The Secretary of the Army shall conduct a 
complete audit of the pay accounts of each member of the Army wounded or 
injured in a combat zone who was evacuated from a theater of operations 
for inpatient care during the period beginning on May 1, 2005, and 
ending on April 30, 2006.
    (b) Report on Results of Audit.--
            (1) Report required.--Not later than 120 days after the date 
        of the enactment of this Act, the Secretary shall submit to the 
        congressional defense committees a report on the audit conducted 
        under subsection (a).
            (2) Identification of members.--The report shall include a 
        list of each member of the Army described in subsection (a) 
        identified, in a manner that protects the privacy of the 
        members, by--
                    (A) the date of the wound or injury that is the 
                basis for the inclusion of the member on the list; and
                    (B) the grade of the member and unit designation as 
                of that date.
            (3) Additional report elements.--For each member included on 
        the list prepared under paragraph (2), the report shall include 
        the following:
                    (A) A statement of any underpayment of each of any 
                pay, allowance, or other monetary benefit to which the 
                member was entitled during the period beginning on the 
                date on which the wound or injury was incurred and 
                ending on April 30, 2006, including basic pay, hazardous 
                duty pay, imminent danger pay, basic allowance for 
                housing,

[[Page 120 STAT. 2277]]

                basic allowance for subsistence, any family separation 
                allowance, any tax exclusion for combat duty, and any 
                other pay, allowance, or monetary benefit to which such 
                member was entitled during such period.
                    (B) A statement of any disbursements made to correct 
                underpayments made to the member, as identified under 
                subparagraph (A).
                    (C) A statement of any debts to the United States 
                collected or pending collection from the member.
                    (D) A statement of any reimbursements or debt relief 
                granted to the member for a debt identified under 
                subparagraph (C).
                    (E) If the member has applied to the United States 
                for a relief of debt--
                          (i) a description of the nature of the debt 
                      for which relief was applied; and
                          (ii) a description of the disposition of the 
                      application, including--
                                    (I) if relief was granted, the date 
                                of disbursement of relief; and
                                    (II) if relief was denied, the 
                                reasons for the denial of relief.
                    (F) A report of any referral of the member to a 
                collection or credit agency.
            (4) Form of report.--The report shall be submitted in 
        unclassified form, but may include a classified annex.
SEC. 678. REPORT ON ELIGIBILITY AND PROVISION OF ASSIGNMENT 
                        INCENTIVE PAY.

    Not later than 60 days after the date of the enactment of this Act, 
the Secretary of the Army shall submit to Congress a report--
            (1) specifying the number of members of the Army National 
        Guard and the Army Reserve adversely affected by the disparate 
        treatment afforded to members who previously served under a call 
        or order to active duty under section 12304 of title 10, United 
        States Code, in determining eligibility for assignment incentive 
        pay; and
            (2) containing proposed remedies or courses of action to 
        correct this disparity, including allowing time served during a 
        call or order to active duty under such section 12304 to count 
        toward the time needed to qualify for assignment incentive pay.
SEC. 679. SENSE OF CONGRESS CALLING FOR PAYMENT TO WORLD WAR II 
                        VETERANS WHO SURVIVED BATAAN DEATH MARCH.

    (a) Call for Appropriate Compensation.--It is the sense of Congress 
that--
            (1) there should be paid to each living Bataan Death March 
        survivor an appropriate amount of compensation in recognition of 
        their captivity during World War II; and
            (2) in the case of a Bataan Death March survivor who is 
        deceased, but who has an unremarried surviving spouse, such 
        compensation should be paid to that surviving spouse.

    (b) Bataan Death March Survivor.--In this section, the term ``Bataan 
Death March survivor'' means an individual who as a member of the Armed 
Forces during World War II was captured on the peninsula of Bataan or 
island of Corregidor in the territory

[[Page 120 STAT. 2278]]

of the Philippines by Japanese forces and participated in and survived 
the Bataan Death March.

                    TITLE VII--HEALTH CARE PROVISIONS

                Subtitle A--TRICARE Program Improvements

Sec. 701. TRICARE coverage for forensic examination following sexual 
           assault or domestic violence.
Sec. 702. Authorization of anesthesia and other costs for dental care 
           for children and certain other patients.
Sec. 703. Improvements to descriptions of cancer screening for women.
Sec. 704. Prohibition on increases in certain health care costs for 
           members of the uniformed services.
Sec. 705. Demonstration project on coverage of selected over-the-counter 
           drugs under the pharmacy benefits program.
Sec. 706. Expanded eligibility of Selected Reserve members under TRICARE 
           program.
Sec. 707. Relationship between the TRICARE program and employer-
           sponsored group health care plans.
Sec. 708. Temporary prohibition on increase in copayments under retail 
           pharmacy system of pharmacy benefits program.

                     Subtitle B--Studies and Reports

Sec. 711. Department of Defense task force on the future of military 
           health care.
Sec. 712. Study relating to chiropractic health care services.
Sec. 713. Comptroller General audits of Department of Defense health 
           care costs and cost-saving measures.
Sec. 714. Transfer of custody of the Air Force Health Study assets to 
           Medical Follow-up Agency.
Sec. 715. Study on allowing dependents of activated members of reserve 
           components to retain civilian health care coverage.
Sec. 716. Study of health effects of exposure to depleted uranium.
Sec. 717. Report and plan on services to military dependent children 
           with autism.
Sec. 718. Comptroller General study on Department of Defense pharmacy 
           benefits program.
Sec. 719. Review of Department of Defense medical quality improvement 
           program.
Sec. 720. Report on distribution of hemostatic agents for use in the 
           field.
Sec. 721. Longitudinal study on traumatic brain injury incurred by 
           members of the Armed Forces in Operation Iraqi Freedom and 
           Operation Enduring Freedom.

            Subtitle C--Planning, Programming, and Management

Sec. 731. Standardization of claims processing under TRICARE program and 
           Medicare program.
Sec. 732. Requirements for support of military treatment facilities by 
           civilian contractors under TRICARE.
Sec. 733. Standards and tracking of access to health care services for 
           wounded, injured, or ill servicemembers returning to the 
           United States from a combat zone.
Sec. 734. Disease and chronic care management.
Sec. 735. Additional elements of assessment of Department of Defense 
           task force on mental health relating to mental health of 
           members who were deployed in Operation Iraqi Freedom and 
           Operation Enduring Freedom.
Sec. 736. Additional authorized option periods for extension of current 
           contracts under TRICARE.
Sec. 737. Military vaccination matters.
Sec. 738. Enhanced mental health screening and services for members of 
           the Armed Forces.

                        Subtitle D--Other Matters

Sec. 741. Pilot projects on early diagnosis and treatment of post 
           traumatic stress disorder and other mental health conditions.
Sec. 742. Requirement to certify and report on conversion of military 
           medical and dental positions to civilian medical and dental 
           positions.
Sec. 743. Three-year extension of joint incentives program on sharing of 
           health care resources by the Department of Defense and 
           Department of Veterans Affairs.
Sec. 744. Training curricula for family caregivers on care and 
           assistance for members and former members of the Armed Forces 
           with traumatic brain injury.

[[Page 120 STAT. 2279]]

Sec. 745. Recognition of Representative Lane Evans upon his retirement 
           from the House of Representatives.

                Subtitle A--TRICARE Program Improvements

SEC. 701. TRICARE COVERAGE FOR FORENSIC EXAMINATION FOLLOWING 
                        SEXUAL ASSAULT OR DOMESTIC VIOLENCE.

    Section 1079(a) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(17) Forensic examinations following a sexual assault or 
        domestic violence may be provided.''.
SEC. 702. AUTHORIZATION OF ANESTHESIA AND OTHER COSTS FOR DENTAL 
                        CARE FOR CHILDREN AND CERTAIN OTHER 
                        PATIENTS.

    Paragraph (1) of section 1079(a) of title 10, United States Code, is 
amended to read as follows:
            ``(1) With respect to dental care--
                    ``(A) except as provided in subparagraph (B), only 
                that care required as a necessary adjunct to medical or 
                surgical treatment may be provided; and
                    ``(B) in connection with dental treatment for 
                patients with developmental, mental, or physical 
                disabilities or for pediatric patients age 5 or under, 
                only institutional and anesthesia services may be 
                provided.''.
SEC. 703. IMPROVEMENTS TO DESCRIPTIONS OF CANCER SCREENING FOR 
                        WOMEN.

    (a) Terms Related to Primary and Preventive Health Care Services for 
Women.--Section 1074d of title 10, United States Code, is amended--
            (1) in subsection (a)(1), by adding at the end the following 
        new sentence: ``The services described in paragraphs (1) and (2) 
        of subsection (b) shall be provided under such procedures and at 
        such intervals as the Secretary of Defense shall prescribe.''; 
        and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``Papanicolaou 
                tests (pap smear)'' and inserting ``Cervical cancer 
                screening''; and
                    (B) in paragraph (2), by striking ``Breast 
                examinations and mammography'' and inserting ``Breast 
                cancer screening''.

    (b) Terms Related to Contracts for Medical Care for Spouses and 
Children.--Section 1079(a)(2) of such title is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``the schedule of pap smears and mammograms'' and inserting 
        ``the schedule and method of cervical cancer screenings and 
        breast cancer screenings''; and
            (2) in subparagraph (B), by striking ``pap smears and 
        mammograms'' and inserting ``cervical and breast cancer 
        screenings''.

[[Page 120 STAT. 2280]]

SEC. 704. PROHIBITION ON INCREASES IN CERTAIN HEALTH CARE COSTS 
                        FOR MEMBERS OF THE UNIFORMED SERVICES.

    (a) Prohibition on Increase in Charges Under Contracts for Medical 
Care.--Section 1097(e) of title 10, United States Code, is amended by 
adding at the end the following: ``A premium, deductible, copayment, or 
other charge prescribed by the Secretary under this subsection may not 
be increased during the period beginning on April 1, 2006, and ending on 
September 30, 2007.''.
    (b) Prohibition on Increase in Charges for Inpatient Care.--Section 
1086(b)(3) of title 10, United States Code, is amended by inserting 
after ``charges for inpatient care'' the following: ``, except that in 
no case may the charges for inpatient care for a patient exceed $535 per 
day during the period beginning on April 1, 2006, and ending on 
September 30, 2007.''.
    (c) Prohibition on Increase in Premiums Under TRICARE Coverage for 
Certain Members in the Selected Reserve.--Section 1076d(d)(3) of title 
10, United States Code, is amended by adding at the end the following: 
``During the period beginning on April 1, 2006, and ending on September 
30, 2007, the monthly amount of the premium may not be increased above 
the amount in effect for the month of March 2006.''.
    (d) Prohibition on Increase in Premiums Under TRICARE Coverage for 
Members of the Ready Reserve.--Section 1076b(e)(3) of title 10, United 
States Code, is amended by adding at the end the following: ``During the 
period beginning on April 1, 2006, and ending on September 30, 2007, the 
monthly amount of a premium under paragraph (2) may not be increased 
above the amount in effect for the first month health care is provided 
under this section as amended by Public Law 109-163.''.
SEC. 705. <<NOTE: 10 USC 1074g note.>> DEMONSTRATION PROJECT ON 
                        COVERAGE OF SELECTED OVER-THE-COUNTER 
                        DRUGS UNDER THE PHARMACY BENEFITS PROGRAM.

    (a) Requirement to Conduct Demonstration.--The Secretary of Defense 
shall conduct a demonstration project under section 1092 of title 10, 
United States Code, to allow particular over-the-counter drugs to be 
included on the uniform formulary under section 1074g of such title.
    (b) Elements of Demonstration Project.--
            (1) Inclusion of certain over-the-counter drugs.--(A) As 
        part of the demonstration project, the Secretary shall modify 
        uniform formulary specifications under section 1074g(a) of such 
        title to include an over-the-counter drug (referred to in this 
        section as an ``OTC drug'') on the uniform formulary if the 
        Pharmacy and Therapeutics Committee finds that the OTC drug is 
        cost-effective and therapeutically equivalent to a prescription 
        drug. If the Pharmacy and Therapeutics Committee makes such a 
        finding, the OTC drug shall be considered to be in the same 
        therapeutic class of pharmaceutical agents as the prescription 
        drug.
            (B) An OTC drug shall be made available to a beneficiary 
        through the demonstration project, but only if--
                    (i) the beneficiary has a prescription for a drug 
                requiring a prescription; and
                    (ii) pursuant to subparagraph (A), the OTC drug--
                          (I) is on the uniform formulary; and

[[Page 120 STAT. 2281]]

                          (II) has been determined to be therapeutically 
                      equivalent to the prescription drug.
            (2) Conduct through military facilities, retail pharmacies, 
        or mail order program.--The Secretary shall conduct the 
        demonstration project through at least two of the means 
        described in subparagraph (E) of section 1074g(a)(2)(E) of such 
        title through which OTC drugs are provided and may conduct the 
        demonstration project throughout the entire pharmacy benefits 
        program or at a limited number of sites. If the project is 
        conducted at a limited number of sites, the number of sites 
        shall be not less than five in each TRICARE region for each of 
        the two means described in such subparagraph.
            (3) Period of demonstration.--The Secretary shall provide 
        for conducting the demonstration project for a period of time 
        necessary to evaluate the feasibility and cost effectiveness of 
        the demonstration. Such period shall be at least as long as the 
        period covered by pharmacy contracts in existence on the date of 
        the enactment of this Act (including any extensions of the 
        contracts), or five years, whichever is shorter.
            (4) Implementation deadline.--Implementation of the 
        demonstration project shall begin not later than May 1, 2007.

    (c) Evaluation of Demonstration Project.--The Secretary shall 
evaluate the demonstration project for the following:
            (1) The costs and benefits of providing OTC drugs under the 
        pharmacy benefits program in each of the means chosen by the 
        Secretary to conduct the demonstration project.
            (2) The clinical effectiveness of providing OTC drugs under 
        the pharmacy benefits program.
            (3) Customer satisfaction with the demonstration project.

    (d) Report.--Not later than two years after implementation of the 
demonstration project begins, the Secretary shall submit to the 
Committees on Armed Services of the Senate and House of Representatives 
a report on the demonstration project. The report shall contain--
            (1) the evaluation required by subsection (c);
            (2) recommendations for improving the provision of OTC drugs 
        under the pharmacy benefits program; and
            (3) recommendations on whether permanent authority should be 
        provided to cover OTC drugs under the pharmacy benefits program.

    (e) Continuation of Demonstration Project.--If the Secretary 
recommends in the report under subsection (d) that permanent authority 
should be provided, the Secretary may continue the demonstration project 
for up to one year after submitting the report.
    (f) Definitions.--In this section:
            (1) The term ``drug'' means a drug, including a biological 
        product, within the meaning of section 1074g(f)(2) of title 10, 
        United States Code.
            (2) The term ``OTC drug'' has the meaning indicated for such 
        term in subsection (b)(1)(A).
            (3) The term ``over-the-counter drug'' means a drug that is 
        not subject to section 503(b) of the Federal Food, Drug, and 
        Cosmetic Act.
            (4) The term ``prescription drug'' means a drug that is 
        subject to section 503(b) of the Federal Food, Drug, and 
        Cosmetic Act.

[[Page 120 STAT. 2282]]

SEC. 706. EXPANDED ELIGIBILITY OF SELECTED RESERVE MEMBERS UNDER 
                        TRICARE PROGRAM.

    (a) General Eligibility.--Subsection (a) of section 1076d of title 
10, United States Code, is amended--
            (1) by striking ``(a) Eligibility.--A member'' and inserting 
        ``(a) Eligibility.--(1) Except as provided in paragraph (2), a 
        member'';
            (2) by striking ``after the member completes'' and all that 
        follows through ``one or more whole years following such date''; 
        and
            (3) by adding at the end the following new paragraph:

    ``(2) Paragraph (1) does not apply to a member who is enrolled, or 
is eligible to enroll, in a health benefits plan under chapter 89 of 
title 5.''.
    (b) Condition for Termination of Eligibility.--Subsection (b) of 
such section is amended--
            (1) by striking ``(b) Period of Coverage.--(1) TRICARE 
        Standard'' and all that follows through ``(4) Eligibility'' and 
        inserting ``(b) Termination of Eligibility Upon Termination of 
        Service.--Eligibility''; and
            (2) by striking paragraph (5).

    (c) Conforming Amendments.--
            (1) Such section is further amended--
                    (A) by striking subsection (e);
                    (B) by redesignating subsection (g) as subsection 
                (e) and transferring such subsection within such section 
                so as to appear following subsection (d); and
                    (C) by striking paragraph (3) of subsection (f).
            (2) The heading for such section is amended to read as 
        follows:

``Sec. 1076d. TRICARE program: TRICARE standard coverage for members of 
                        the Selected Reserve''.

    (d) Repeal of Obsolete Provision.--Effective <<NOTE: Effective 
date.>> October 1, 2007, section 1076b of title 10, United States Code, 
is repealed.

    (e) Clerical Amendments.--Effective <<NOTE: Effective 
date.>> October 1, 2007, the table of sections at the beginning of 
chapter 55 of title 10, United States Code, is amended--
            (1) by striking the item relating to section 1076b; and
            (2) by striking the item relating to section 1076d and 
        inserting the following:

``1076d. TRICARE program: TRICARE Standard coverage for members of the 
           Selected Reserve.''.

    (f) <<NOTE: 10 USC 1076d note.>> Savings Provision.--Enrollments in 
TRICARE Standard that are in effect on the day before the date of the 
enactment of this Act under section 1076d of title 10, United States 
Code, as in effect on such day, shall be continued until terminated 
after such day under such section 1076d as amended by this section.

    (g) <<NOTE: 10 USC 1076d note.>> Effective Date.--The Secretary of 
Defense shall ensure that health care under TRICARE Standard is provided 
under section 1076d of title 10, United States Code, as amended by this 
section, beginning not later than October 1, 2007.

[[Page 120 STAT. 2283]]

SEC. 707. RELATIONSHIP BETWEEN THE TRICARE PROGRAM AND EMPLOYER-
                        SPONSORED GROUP HEALTH CARE PLANS.

    (a) In General.--Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1097b the following new section:

``Sec. 1097c. TRICARE program: relationship with employer-sponsored 
                        group health plans

    ``(a) Prohibition on Financial Incentives Not to Enroll in a Group 
Health Plan.--(1) Except as provided in this subsection, the provisions 
of section 1862(b)(3)(C) of the Social Security Act shall apply with 
respect to financial or other incentives for a TRICARE-eligible employee 
not to enroll (or to terminate enrollment) under a health plan which 
would (in the case of such enrollment) be a primary plan under sections 
1079(j)(1) and 1086(g) of this title in the same manner as such section 
1862(b)(3)(C) applies to financial or other incentives for an individual 
entitled to benefits under title XVIII of the Social Security Act not to 
enroll (or to terminate enrollment) under a group health plan or a large 
group health plan which would (in the case of enrollment) be a primary 
plan (as defined in section 1862(b)(2)(A) of such Act).
    ``(2)(A) The Secretary of Defense may by regulation adopt such 
additional exceptions to the prohibition referenced and applied under 
paragraph (1) as the Secretary deems appropriate and such paragraph (1) 
shall be implemented taking into account the adoption of such 
exceptions.
    ``(B) The Secretary of Defense and the Secretary of Health and Human 
Services are authorized to enter into agreements for carrying out this 
subsection. Any such agreement shall provide that any expenses incurred 
by the Secretary of Health and Human Services pertaining to carrying out 
this subsection shall be reimbursed by the Secretary of Defense.
    ``(C) Authorities of the Inspector General of the Department of 
Defense shall be available for oversight and investigations of 
responsibilities of employers and other entities under this subsection.
    ``(D) Information obtained under section 1095(k) of this title may 
be used in carrying out this subsection in the same manner as 
information obtained under section 1862(b)(5) of the Social Security Act 
may be used in carrying out section 1862(b) of such Act.
    ``(E) Any amounts collected in carrying out paragraph (1) shall be 
handled in accordance with section 1079a of this title.
    ``(b) Election of TRICARE-Eligible Employees to Participate in Group 
Health Plan.--A TRICARE-eligible employee shall have the opportunity to 
elect to participate in the group health plan offered by the employer of 
the employee and receive primary coverage for health care services under 
the plan in the same manner and to the same extent as similarly situated 
employees of such employer who are not TRICARE-eligible employees.
    ``(c) Inapplicability to Certain Employers.--The provisions of this 
section do not apply to any employer who has fewer than 20 employees.
    ``(d) Retention of Eligibility for Coverage Under TRICARE.--Nothing 
in this section, including an election made by a TRICARE-eligible 
employee under subsection (b), shall be construed to affect, modify, or 
terminate the eligibility of a

[[Page 120 STAT. 2284]]

TRICARE-eligible employee or spouse of such employee for health care or 
dental services under this chapter in accordance with the other 
provisions of this chapter.
    ``(e) Outreach.--The Secretary of Defense shall, in coordination 
with the other administering Secretaries, conduct outreach to inform 
covered beneficiaries who are entitled to health care benefits under the 
TRICARE program of the rights and responsibilities of such beneficiaries 
and employers under this section.
    ``(f) Definitions.--In this section:
            ``(1) The term `employer' includes a State or unit of local 
        government.
            ``(2) The term `group health plan' means a group health plan 
        (as that term is defined in section 5000(b)(1) of the Internal 
        Revenue Code of 1986 without regard to section 5000(d) of the 
        Internal Revenue Code of 1986).
            ``(3) The term `TRICARE-eligible employee' means a covered 
        beneficiary under section 1086 of this title entitled to health 
        care benefits under the TRICARE program.

    ``(g) Effective Date.--This section shall take effect on January 1, 
2008.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 55 of such title is amended by inserting after the item relating 
to section 1097b the following new item:

``1097c. TRICARE program: relationship with employer-sponsored group 
           health plans.''.

SEC. 708. TEMPORARY PROHIBITION ON INCREASE IN COPAYMENTS UNDER 
                        RETAIL PHARMACY SYSTEM OF PHARMACY 
                        BENEFITS PROGRAM.

    (a) Temporary Prohibition.--During <<NOTE: Effective date.>> the 
period beginning on October 1, 2006, and ending on September 30, 2007, 
the cost sharing requirements established under paragraph (6) of section 
1074g of title 10, United States Code, for pharmaceutical agents 
available through retail pharmacies covered by paragraph (2)(E)(ii) of 
such section may not exceed amounts as follows:
            (1) In the case of generic agents, $3.
            (2) In the case of formulary agents, $9.
            (3) In the case of nonformulary agents, $22.

    (b) Transfer of Funds.--The Secretary of Defense shall transfer 
$186,000,000 from the unobligated balances of the National Defense 
Stockpile Transaction Fund to the Department of Defense Medicare-
Eligible Retiree Health Care Fund.

                     Subtitle B--Studies and Reports

SEC. 711. DEPARTMENT OF DEFENSE TASK FORCE ON THE FUTURE OF 
                        MILITARY HEALTH CARE.

    (a) Requirement to Establish.--The Secretary of Defense shall 
establish within the Department of Defense a task force to examine 
matters relating to the future of military health care.
    (b) Composition.--
            (1) Members.--The task force shall consist of not more than 
        14 members appointed by the Secretary of Defense from among 
        individuals described in paragraph (2) who have demonstrated 
        expertise in the area of health care programs and costs.

[[Page 120 STAT. 2285]]

            (2) Range of members.--The individuals appointed to the task 
        force shall include--
                    (A) at least one member of each of the Medical 
                Departments of the Army, Navy, and Air Force;
                    (B) a number of persons from outside the Department 
                of Defense equal to the total number of personnel from 
                within the Department of Defense (whether members of the 
                Armed Forces or civilian personnel) who are appointed to 
                the task force;
                    (C) persons who have experience in--
                          (i) health care actuarial forecasting;
                          (ii) health care program and budget 
                      development;
                          (iii) health care information technology;
                          (iv) health care performance measurement;
                          (v) health care quality improvement including 
                      evidence-based medicine; and
                          (vi) women's health;
                    (D) the senior medical advisor to the Chairman of 
                the Joint Chiefs of Staff;
                    (E) the Director of Defense Procurement and 
                Acquisition Policy in the Office of the Under Secretary 
                of Defense for Acquisition, Technology, and Logistics;
                    (F) at least one member from the Defense Business 
                Board;
                    (G) at least one representative from an organization 
                that advocates on behalf of active duty and retired 
                members of the Armed Forces who has experience in health 
                care; and
                    (H) at least one member from the Institute of 
                Medicine.
            (3) Individuals appointed outside the department of 
        defense.--
                    (A) Individuals appointed to the task force from 
                outside the Department of Defense may include officers 
                or employees of other departments or agencies of the 
                Federal Government, officers or employees of State and 
                local governments, or individuals from the private 
                sector.
                    (B) Individuals appointed to the task force from 
                outside the Department of Defense shall include--
                          (i) an officer or employee of the Department 
                      of Veterans Affairs; and
                          (ii) an officer or employee of the Department 
                      of Health and Human Services.
            (4) Deadline for appointment.--All appointments of 
        individuals to the task force shall be made not later than 90 
        days after the date of the enactment of this Act.
            (5) Co-chairs of task force.--There shall be two co-chairs 
        of the task force. One of the co-chairs shall be designated by 
        the Secretary of Defense at the time of appointment from among 
        the Department of Defense personnel appointed to the task force. 
        The other co-chair shall be selected from among the members 
        appointed from outside the Department of Defense by members so 
        appointed.

    (c) Assessment and Recommendations on the Future of Military Health 
Care.--
            (1) In general.--Not <<NOTE: Reports.>> later than 12 months 
        after the date on which all members of the task force have been 
        appointed, the task force shall submit to the Secretary a report 
        containing

[[Page 120 STAT. 2286]]

        an assessment of, and recommendations for, sustaining the 
        military health care services being provided to members of the 
        Armed Forces, retirees, and their families.
            (2) Utilization of other efforts.--In preparing the report, 
        the task force shall take into consideration the findings and 
        recommendations included in the Healthcare for Military Retirees 
        Task Group of the Defense Business Board, previous Government 
        Accountability Office reports, studies and reviews by the 
        Assistant Secretary of Defense for Health Affairs, and any other 
        studies or research conducted by organizations regarding program 
        and organizational improvements to the military health care 
        system.
            (3) Elements.--The assessment and recommendations (including 
        recommendations for legislative or administrative action) shall 
        include measures to address the following:
                    (A) Wellness initiatives and disease management 
                programs of the Department of Defense, including health 
                risk tracking and the use of rewards for wellness.
                    (B) Education programs focused on prevention 
                awareness and patient-initiated health care.
                    (C) The ability to account for the true and accurate 
                cost of health care in the military health system.
                    (D) Alternative health care initiatives to manage 
                patient behavior and costs, including options and costs 
                and benefits of a universal enrollment system for all 
                TRICARE users.
                    (E) The appropriate command and control structure 
                within the Department of Defense and the Armed Forces to 
                manage the military health system.
                    (F) The adequacy of the military health care 
                procurement system, including methods to streamline 
                existing procurement activities.
                    (G) The appropriate mix of military and civilian 
                personnel to meet future readiness and high-quality 
                health care service requirements.
                    (H) The beneficiary and Government cost sharing 
                structure required to sustain military health benefits 
                over the long term.
                    (I) Programs focused on managing the health care 
                needs of Medicare-eligible military beneficiaries.
                    (J) Efficient and cost effective contracts for 
                health care support and staffing services, including 
                performance-based requirements for health care provider 
                reimbursement.

    (d) Administrative Matters.--
            (1) Compensation.--Each member of the task force who is a 
        member of the Armed Forces or a civilian officer or employee of 
        the United States shall serve without compensation (other than 
        compensation to which entitled as a member of the Armed Forces 
        or an officer or employee of the United States, as the case may 
        be). Other members of the task force shall be treated for 
        purposes of section 3161 of title 5, United States Code, as 
        having been appointed under subsection (b) of such section.
            (2) Oversight.--The Under Secretary of Defense for Personnel 
        and Readiness shall oversee the activities of the task force.

[[Page 120 STAT. 2287]]

            (3) Administrative support.--The Washington Headquarters 
        Services of the Department of Defense shall provide the task 
        force with personnel, facilities, and other administrative 
        support as necessary for the performance of the duties of the 
        task force.
            (4) Access to facilities.--The Under Secretary of Defense 
        for Personnel and Readiness shall, in coordination with the 
        Secretaries of the military departments, ensure appropriate 
        access by the task force to military installations and 
        facilities for purposes of the discharge of the duties of the 
        task force.

    (e) Reports.--
            (1) Interim report.--Not later than May 31, 2007, the task 
        force shall submit to the Secretary of Defense and the 
        Committees on Armed Services of the Senate and the House of 
        Representatives an interim report on the activities of the task 
        force. At a minimum, the report shall include interim findings 
        and recommendations regarding subsection (c)(3)(H), particularly 
        with regard to cost sharing under the pharmacy benefits program.
            (2) Final report.--(A) The task force shall submit to the 
        Secretary of Defense a final report on its activities under this 
        section. The report shall include--
                    (i) a description of the activities of the task 
                force;
                    (ii) the assessment and recommendations required by 
                subsection (c); and
                    (iii) such other matters relating to the activities 
                of the task force that the task force considers 
                appropriate.
            (B) Not later than 90 days after receipt of the report under 
        subparagraph (A), the Secretary shall transmit the report to the 
        Committees on Armed Services of the Senate and the House of 
        Representatives. The Secretary may include in the transmittal 
        such comments on the report as the Secretary considers 
        appropriate.

    (f) Termination.--The task force shall terminate 90 days after the 
date on which the final report of the task force is transmitted to 
Congress under subsection (e)(2).
SEC. 712. STUDY RELATING TO CHIROPRACTIC HEALTH CARE SERVICES.

    (a) Study Required.--
            (1) Groups covered.--The Secretary of Defense shall conduct 
        a study of providing chiropractic health care services and 
        benefits to the following groups:
                    (A) All members of the uniformed services on active 
                duty and entitled to care under section 1074(a) of title 
                10, United States Code.
                    (B) All members described in subparagraph (A) and 
                their eligible dependents, and all members of the 
                Selected Reserves and their eligible dependents.
                    (C) All members or former members of the uniformed 
                services who are entitled to retired or retainer pay or 
                equivalent pay and their eligible dependents.
            (2) Matters examined.--
                    (A) For each group listed in subparagraphs (A), (B), 
                and (C) of paragraph (1), the study shall examine the 
                following with respect to chiropractic health care 
                services and benefits:

[[Page 120 STAT. 2288]]

                          (i) The cost of providing such services and 
                      benefits.
                          (ii) The feasibility of providing such 
                      services and benefits.
                          (iii) An assessment of the health care 
                      benefits of providing such services and benefits.
                          (iv) An estimate of the potential cost savings 
                      of providing such services and benefits in lieu of 
                      other medical services.
                          (v) The identification of existing and planned 
                      health care infrastructure, including personnel, 
                      equipment, and facilities, to accommodate the 
                      provision of chiropractic health care services.
                    (B) For the members of the group listed in 
                subparagraph (A) of paragraph (1), the study shall also 
                examine the effects of providing chiropractic health 
                care services and benefits--
                          (i) on the readiness of such members; and
                          (ii) on the acceleration of the return to duty 
                      of such members following an identified injury or 
                      other malady that can be appropriately treated 
                      with chiropractic health care services.
            (3) Space available costs.--The study shall also include a 
        detailed analysis of the projected costs of providing 
        chiropractic health care services on a space available basis in 
        the military treatment facilities currently providing 
        chiropractic care under section 702 of the Floyd D. Spence 
        National Defense Authorization Act of Fiscal Year 2001 (as 
        enacted by Public Law 106-398; 10 U.S.C. 1092 note).
            (4) Eligible dependent defined.--In this section, the term 
        ``eligible dependent'' has the meaning given that term in 
        section 1076a(k) of title 10, United States Code.

    (b) Report Required.--Not later than March 31, 2008, the Secretary 
of Defense shall submit to the Committees on Armed Services of the 
Senate and the House of Representatives a report on the study required 
under subsection (a).
SEC. 713. COMPTROLLER GENERAL AUDITS OF DEPARTMENT OF DEFENSE 
                        HEALTH CARE COSTS AND COST-SAVING 
                        MEASURES.

    (a) General Audit Required.--
            (1) In general.--The Comptroller General of the United 
        States, in cooperation with the Director of the Congressional 
        Budget Office, shall conduct an audit of the Department of 
        Defense initiative to manage future medical benefits available 
        through the Department known as ``Sustain the Benefit''.
            (2) Elements.--The audit required by paragraph (1) shall 
        examine the following:
                    (A) The basis for the calculation by the Department 
                of Defense of the portion of the costs of health care 
                benefits provided by the Department to beneficiaries 
                that were paid by such beneficiaries in each of 1995 and 
                2005, including--
                          (i) a comparison of the cost to the Department 
                      of providing such benefits in each of 1995 and 
                      2005;
                          (ii) the explanation for any increases in the 
                      costs of the Department of providing such benefits 
                      between 1995 and 2005; and

[[Page 120 STAT. 2289]]

                          (iii) a comparison of the amounts paid, by 
                      category of beneficiaries, for health care 
                      benefits in 1995 with the amounts paid, by 
                      category of beneficiaries, for such benefits in 
                      2005.
                    (B) The calculations and assumptions utilized by the 
                Department in estimating the savings anticipated through 
                the implementation of proposed increases in cost-sharing 
                for health care benefits beginning in 2007.
                    (C) The average annual rate of increase, based on 
                inflation, of medical costs for the Department under the 
                Defense Health Program.
                    (D) The annual rate of growth in the cost of the 
                Defense Health Program that is attributable to inflation 
                in the cost of medical services over the last five years 
                and how such rate of growth compares with annual rates 
                of increases in health care premiums under the Federal 
                Employee Health Benefit Program and other health care 
                programs as well as rates of growth of other health care 
                cost indices over that time.
                    (E) The assumptions utilized by the Department in 
                estimating savings associated with adjustments in 
                copayments for pharmaceuticals.
                    (F) The costs of the administration of the Defense 
                Health Program and the TRICARE program for all 
                categories of beneficiaries.

    (b) Audit of TRICARE Reserve Select Program.--
            (1) In general.--In addition to the audit required by 
        subsection (a), the Comptroller General shall conduct an audit 
        of the costs of the Department of Defense in implementing the 
        TRICARE Reserve Select Program.
            (2) Elements.--The audit required by paragraph (1) shall 
        include an examination of the following:
                    (A) A comparison of the annual premium amounts 
                established by the Department of Defense for the TRICARE 
                Reserve Select Program with the actual costs of the 
                Department in providing benefits under that program in 
                fiscal years 2004 and 2005.
                    (B) The rate of inflation of health care costs of 
                the Department during fiscal years 2004 and 2005, and a 
                comparison of that rate of inflation with the annual 
                increase in premiums under the TRICARE Reserve Select 
                Program in January 2006.
                    (C) A comparison of the financial and health-care 
                utilization assumptions utilized by the Department in 
                establishing premiums under the TRICARE Reserve Select 
                Program with actual experiences under that program in 
                the first year of the implementation of that program.
            (3) TRICARE reserve select program defined.--In this 
        section, the term ``TRICARE Reserve Select Program'' means the 
        program carried out under section 1076d of title 10, United 
        States Code.

    (c) Use of Independent Experts.--Notwithstanding any other provision 
of law, in conducting the audits required by this section, the 
Comptroller General may engage the services of appropriate independent 
experts, including actuaries.
    (d) Report.--Not later than June 1, 2007, the Comptroller General 
shall submit to the congressional defense committees a

[[Page 120 STAT. 2290]]

report on the audits conducted under this section. The report shall 
include--
            (1) the findings of the Comptroller General as a result of 
        the audits; and
            (2) such recommendations as the Comptroller General 
        considers appropriate in light of such findings to ensure 
        maximum efficiency in the administration of the health care 
        benefits programs of the Department of Defense.
SEC. 714. TRANSFER OF CUSTODY OF THE AIR FORCE HEALTH STUDY ASSETS 
                        TO MEDICAL FOLLOW-UP AGENCY.

    (a) Transfer.--
            (1) Notification of participants.--The Secretary of the Air 
        Force shall notify the participants of the Air Force Health 
        Study that the study as currently constituted is ending as of 
        September 30, 2006. In consultation with the Medical Follow-up 
        Agency (in this section referred to as the ``Agency'') of the 
        Institute of Medicine of the National Academy of Sciences, the 
        Secretary of the Air Force shall request the written consent of 
        the participants to transfer their data and biological specimens 
        to the Agency during fiscal year 2007 and written consent for 
        the Agency to maintain the data and specimens and make them 
        available for additional studies.
            (2) Completion of <<NOTE: Deadline.>> transfer.--
        Custodianship of the Air Force Health Study shall be completely 
        transferred to the Agency on or before September 30, 2007. 
        Assets to be transferred shall include electronic data files and 
        biological specimens of all the study participants.
            (3) Copies to archives.--The Air Force shall send paper 
        copies of all study documents to the National Archives.

    (b) Report on Transfer.--
            (1) Requirement.--Not later than 30 days after completion of 
        the transfer of the assets of the Air Force Health Study under 
        subsection (a), the Secretary of the Air Force shall submit to 
        the Committees on Armed Services of the Senate and the House of 
        Representatives a report on the transfer.
            (2) Matters covered.--At a minimum, the report shall include 
        information on the number of study participants whose data and 
        biological specimens were not transferred, the efforts that were 
        taken to contact such participants, and the reasons why the 
        transfer of their data and specimens did not occur.

    (c) Disposition of Assets Not Transferred.--The Secretary of the Air 
Force may not destroy any data or biological specimens not transferred 
under subsection (a) until the expiration of the one-year period 
following submission of the report under subsection (b).
    (d) Funding.--
            (1) Costs of transfer.--The Secretary of Defense shall make 
        available to the Air Force $850,000 for preparation, transfer of 
        the assets of the Air Force Health Study, and shipment of data 
        and specimens to the Medical Follow-up Agency and the National 
        Archives during fiscal year 2007 from amounts available from the 
        Department of Defense for that fiscal year. The Secretary of 
        Defense is authorized to transfer the freezers and other 
        physical assets assigned to the Air Force Health Study to the 
        Agency without charge.

[[Page 120 STAT. 2291]]

            (2) Costs of collaboration.--The Secretary of Defense may 
        reimburse the National Academy of Sciences up to $200,000 for 
        costs of the Medical Follow-up Agency to collaborate with the 
        Air Force in the transfer and receipt of the assets of the Air 
        Force Health Study to the Agency during fiscal year 2007 from 
        amounts available from the Department of Defense for that fiscal 
        year.
SEC. 715. STUDY ON ALLOWING DEPENDENTS OF ACTIVATED MEMBERS OF 
                        RESERVE COMPONENTS TO RETAIN CIVILIAN 
                        HEALTH CARE COVERAGE.

    (a) Study Requirement.--The Secretary of Defense shall conduct a 
study on the feasibility of allowing family members of members of the 
reserve components of the Armed Forces who are called or ordered to 
active duty in support of a contingency operation to continue health 
care coverage under a civilian health care program and provide 
reimbursement for such health care.
    (b) Elements.--The study required by subsection (a) shall include 
the following:
            (1) An assessment of the number of military dependents with 
        special health care needs (such as ongoing chemotherapy or 
        physical therapy) who would benefit from continued coverage 
        under the member's civilian health care plan instead of 
        enrolling in the TRICARE program.
            (2) An assessment of the feasibility of providing 
        reimbursement to the member or the sponsor of the civilian 
        health coverage.
            (3) A recommendation on the appropriate rate of 
        reimbursement for members or sponsors of civilian health 
        coverage.
            (4) The feasibility of including dependents who do not have 
        access to health care providers that accept payment under the 
        TRICARE program.

    (c) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the study required under subsection (a).
SEC. 716. STUDY OF HEALTH EFFECTS OF EXPOSURE TO DEPLETED URANIUM.

    (a) Study.--The Secretary of Defense, in consultation with the 
Secretary for Veterans Affairs and the Secretary of Health and Human 
Services, shall conduct a comprehensive study of the health effects of 
exposure to depleted uranium munitions on uranium-exposed soldiers and 
on children of uranium-exposed soldiers who were born after the exposure 
of the uranium-exposed soldiers to depleted uranium.
    (b) Uranium-Exposed Soldiers.--In this section, the term ``uranium-
exposed soldiers'' means a member or former member of the Armed Forces 
who handled, came in contact with, or had the likelihood of contact with 
depleted uranium munitions while on active duty, including members and 
former members who--
            (1) were exposed to smoke from fires resulting from the 
        burning of vehicles containing depleted uranium munitions or 
        fires at depots at which depleted uranium munitions were stored;
            (2) worked within environments containing depleted uranium 
        dust or residues from depleted uranium munitions;

[[Page 120 STAT. 2292]]

            (3) were within a structure or vehicle while it was struck 
        by a depleted uranium munition;
            (4) climbed on or entered equipment or structures struck by 
        a depleted uranium munition; or
            (5) were medical personnel who provided initial treatment to 
        members of the Armed Forces described in paragraph (1), (2), 
        (3), or (4).

    (c) Report.--Not later than one year after the date of the enactment 
of this Act, the Secretary of Defense shall submit to Congress a report 
on the results of the study described in subsection (a).
SEC. 717. REPORT AND PLAN ON SERVICES TO MILITARY DEPENDENT 
                        CHILDREN WITH AUTISM.

    (a) Plan Required.--The Secretary of Defense shall, within 180 days 
after the date of the enactment of this Act, develop a plan to provide 
services to military dependent children with autism pursuant to the 
authority for an extended health care services program in subsections 
(d) and (e) of section 1079 of title 10, United States Code. Such plan 
shall include--
            (1) requirements for the education, training, and 
        supervision of individuals providing services for military 
        dependent children with autism;
            (2) standards for identifying and measuring the 
        availability, distribution, and training of individuals of 
        various levels of expertise to provide such services; and
            (3) procedures to ensure that such services are in addition 
        to other publicly provided services to such children.

    (b) Participation of Affected Families.--In developing the plan 
required under subsection (a), the Secretary shall ensure the 
involvement and participation of affected military families or their 
representatives.
    (c) Report Required.--Not later than 30 days after completion of the 
plan required under subsection (a), the Secretary shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the plan. The report may include any 
additional information the Secretary considers relevant.
SEC. 718. COMPTROLLER GENERAL STUDY ON DEPARTMENT OF DEFENSE 
                        PHARMACY BENEFITS PROGRAM.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study of the Department of Defense pharmacy benefits program 
required by section 1074g of title 10, United States Code.
    (b) Elements.--The study required by subsection (a) shall include an 
examination of the following:
            (1) The cost of the Department of Defense pharmacy benefits 
        program since the inception of the program.
            (2) The relative costs of various options under the program.
            (3) The copayment structure under the program.
            (4) The effectiveness of the rebate system under the program 
        as a way of passing on discounts received by the Federal 
        Government in the purchase of pharmaceutical agents.
            (5) The uniform formulary under the program, including the 
        success of the formulary in achieving savings anticipated 
        through use of the formulary.

[[Page 120 STAT. 2293]]

            (6) Various alternative means of purchasing pharmaceutical 
        agents more efficiently for availability under the program.
            (7) The composition and decision-making processes of the 
        Pharmacy and Therapeutics Committee.
            (8) The composition of the Beneficiary Advisory Panel and 
        its history as an advisory panel under the program (including 
        the frequency of the acceptance of its recommendations by the 
        Secretary of Defense).
            (9) Quality assurance mechanisms under the program.
            (10) The role of the program in support of the disease and 
        chronic care management programs of the Department of Defense.
            (11) Mechanisms for customer service and customer feedback 
        under the program.
            (12) Beneficiary satisfaction with the program.

    (c) Report.--Not later than nine months after the date of the 
enactment of this Act, the Comptroller General shall submit to the 
congressional defense committees a report on the study required by 
subsection (a). The report shall include such recommendations as the 
Comptroller General considers appropriate for legislative or 
administrative action to improve the Department of Defense pharmacy 
benefits program in light of the study.
SEC. 719. REVIEW OF DEPARTMENT OF DEFENSE MEDICAL QUALITY 
                        IMPROVEMENT PROGRAM.

    (a) Report Required.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary of Defense shall submit 
        to the Committees on Armed Services of the Senate and the House 
        of Representatives a report on actions taken in response to the 
        recommendations of the July 2001 report of the Department of 
        Defense Healthcare Quality Initiatives Review Panel.
            (2) Matters covered.--The report shall address the status of 
        actions concerning each of the Panel's general and specific 
        recommendations, including the amount of resources allocated by 
        fiscal year to implement each recommendation. In any instance in 
        which no action has been taken, justification for such inaction 
        shall be provided in the report.

    (b) Review Required.--
            (1) In general.--The <<NOTE: Contracts.>> Secretary of 
        Defense shall enter into a contract with the Institute of 
        Medicine of the National Academy of Sciences, or another 
        similarly qualified independent academic medical organization, 
        for the purpose of conducting an independent review of the 
        Department of Defense medical quality improvement program.
            (2) Elements.--The review required pursuant to paragraph (1) 
        shall include the following:
                    (A) An assessment of the methods used by the 
                Department of Defense to monitor medical quality in 
                services provided in military hospitals and clinics and 
                in services provided in civilian hospitals and providers 
                under the military health care system.
                    (B) An assessment of the transparency and public 
                reporting mechanisms of the Department on medical 
                quality.

[[Page 120 STAT. 2294]]

                    (C) An assessment of how the Department incorporates 
                medical quality into performance measures for military 
                and civilian health care providers within the military 
                health care system.
                    (D) An assessment of the patient safety programs of 
                the Department.
                    (E) A description of the extent to which the 
                Department seeks to address particular medical errors, 
                and an assessment of the adequacy of such efforts.
                    (F) An assessment of accountability within the 
                military health care system for preventable negative 
                outcomes involving negligence.
                    (G) An assessment of the performance of the health 
                care safety and quality measures of the Department.
                    (H) An assessment of the collaboration of the 
                Department with national initiatives to develop 
                evidence-based quality measures and intervention 
                strategies, especially the initiatives of the Agency for 
                Health Care Research and Quality within the Department 
                of Health and Human Services.
                    (I) A comparison of the methods, mechanisms, and 
                programs and activities referred to in subparagraphs (A) 
                through (G) with similar methods, mechanisms, programs, 
                and activities used in other public and private health 
                care systems and organizations.
            (3) Report.--
                    (A) In general.--Not later than one year after the 
                date of the enactment of this Act, the Secretary shall 
                submit to the Committees on Armed Services of the Senate 
                and the House of Representatives a report on the review 
                required pursuant to paragraph (1).
                    (B) Elements.--The report required by subparagraph 
                (A) shall include the following:
                          (i) The results of the review required 
                      pursuant to paragraph (1).
                          (ii) A discussion of recent highlights in the 
                      accomplishments of the Department of Defense 
                      medical quality assurance program.
                          (iii) Such recommendations for legislative or 
                      administrative action as the Secretary considers 
                      appropriate for the improvement of the program.
SEC. 720. REPORT ON DISTRIBUTION OF HEMOSTATIC AGENTS FOR USE IN 
                        THE FIELD.

    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 on the distribution of hemostatic agents to members 
of the Armed Forces serving in Iraq and Afghanistan, including a 
description of any distribution problems and attempts to resolve such 
problems.
SEC. 721. LONGITUDINAL STUDY ON TRAUMATIC BRAIN INJURY INCURRED BY 
                        MEMBERS OF THE ARMED FORCES IN OPERATION 
                        IRAQI FREEDOM AND OPERATION ENDURING 
                        FREEDOM.

    (a) Study Required.--The Secretary of Defense shall conduct a 
longitudinal study on the effects of traumatic brain injury incurred by 
members of the Armed Forces serving in Operation Iraqi

[[Page 120 STAT. 2295]]

Freedom or Operation Enduring Freedom on the members who incur such an 
injury and their families.
    (b) Duration.--The study required by subsection (a) shall be 
conducted for a period of 15 years.
    (c) Elements.--The study required by subsection (a) shall 
specifically address the following:
            (1) The long-term physical and mental health effects of 
        traumatic brain injuries incurred by members of the Armed Forces 
        during service in Operation Iraqi Freedom or Operation Enduring 
        Freedom.
            (2) The health care, mental health care, and rehabilitation 
        needs of such members for such injuries after the completion of 
        inpatient treatment through the Department of Defense, the 
        Department of Veterans Affairs, or both.
            (3) The type and availability of long-term care 
        rehabilitation programs and services within and outside the 
        Department of Defense and the Department of Veterans Affairs for 
        such members for such injuries, including community-based 
        programs and services and in-home programs and services.
            (4) The effect on family members of a member incurring such 
        an injury.

    (d) Consultation.--The Secretary of Defense shall conduct the study 
required by subsection (a) and prepare the reports required by 
subsection (e) in consultation with the Secretary of Veterans Affairs.
    (e) Periodic and Final Reports.--After the third, seventh, eleventh, 
and fifteenth years of the study required by subsection (a), the 
Secretary of Defense shall submit to Congress a comprehensive report on 
the results of the study during the preceding years. Each report shall 
include the following:
            (1) Current information on the cumulative outcomes of the 
        study.
            (2) Such recommendations as the Secretary of Defense and the 
        Secretary of Veterans Affairs jointly consider appropriate based 
        on the outcomes of the study, including recommendations for 
        legislative, programmatic, or administrative action to improve 
        long-term care and rehabilitation programs and services for 
        members of the Armed Forces with traumatic brain injuries.

            Subtitle C--Planning, Programming, and Management

SEC. 731. STANDARDIZATION OF CLAIMS PROCESSING UNDER TRICARE 
                        PROGRAM AND MEDICARE PROGRAM.

    (a) In General.--Effective beginning with the next contract option 
period for managed care support contracts under the TRICARE program, the 
claims processing requirements under the TRICARE program on the matters 
described in subsection (b) shall be identical to the claims processing 
requirements under the Medicare program on such matters.
    (b) Covered Matters.--The matters described in this subsection are 
as follows:
            (1) The utilization of single or multiple provider 
        identification numbers for purposes of the payment of health 
        care claims by Department of Defense contractors.

[[Page 120 STAT. 2296]]

            (2) The documentation required to substantiate medical 
        necessity for items and services that are covered under both the 
        TRICARE program and the Medicare program.

    (c) Report on Collection of Amounts Owed.--Not later than March 1, 
2007, the Secretary of Defense shall submit to the congressional defense 
committees a report setting forth a detailed description of the 
following:
            (1) All TRICARE policies and directives concerning 
        collection of amounts owed to the United States pursuant to 
        section 1095 of title 10, United States Code, from third party 
        payers, including--
                    (A) collection by military treatment facilities from 
                third-party payers; and
                    (B) collection by contractors providing managed care 
                support under the TRICARE program from other insurers in 
                cases of private insurance liability for health care 
                costs of a TRICARE beneficiary.
            (2) An estimate of the outstanding amounts owed from third 
        party payers in each of fiscal years 2002, 2003, and 2004.
            (3) The amounts collected from third party payers in each of 
        fiscal years 2002, 2003, and 2004.
            (4) A plan of action to streamline the business practices 
        that underlie the policies and directives described in paragraph 
        (1).
            (5) A plan of action to accelerate and increase the 
        collections or recoupments of amounts owed from third party 
        payers.

    (d) Annual Reports on Claims Processing Standardization.--
            (1) In general.--Not later than October 1, 2007, and 
        annually thereafter, the Secretary of Defense shall submit to 
        the congressional defense committees a report setting forth a 
        complete list of the claims processing requirements under the 
        TRICARE program that differ from claims processing requirements 
        under the Medicare program.
            (2) Elements.--Each report under paragraph (1) shall 
        include, for each claims processing requirement listed in such 
        report, a business case that justifies maintaining such 
        requirement under the TRICARE program as a different claims 
        processing requirement than that required under the Medicare 
        program.

    (e) Definitions.--In this section:
            (1) The term ``Medicare program'' means the program under 
        title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.).
            (2) The term ``TRICARE program'' has the meaning given that 
        term in section 1072(7) of title 10, United States Code.
SEC. 732. REQUIREMENTS FOR SUPPORT OF MILITARY TREATMENT 
                        FACILITIES BY CIVILIAN CONTRACTORS UNDER 
                        TRICARE.

    (a) Annual Integrated Regional Requirements on Support.--The 
Regional Director of each region under the TRICARE program shall develop 
each year integrated, comprehensive requirements for the support of 
military treatment facilities in such region that is provided by 
contract civilian health care and administrative personnel under the 
TRICARE program.
    (b) Purposes.--The purposes of the requirements established under 
subsection (a) shall be as follows:

[[Page 120 STAT. 2297]]

            (1) To ensure consistent standards of quality in the support 
        of military treatment facilities by contract civilian health 
        care personnel under the TRICARE program.
            (2) To identify targeted, actionable opportunities 
        throughout each region of the TRICARE program for the most 
        efficient and cost effective delivery of health care and support 
        of military treatment facilities.
            (3) To ensure the most effective use of various available 
        contracting methods in securing support of military treatment 
        facilities by civilian health care personnel under the TRICARE 
        program, including resource-sharing and clinical support 
        agreements, direct contracting, and venture capital investments.

    (c) Facilitation and Enhancement of Contractor Support.--
            (1) In general.--The Secretary of Defense shall take 
        appropriate actions to facilitate and enhance the support of 
        military treatment facilities under the TRICARE program in order 
        to assure maximum quality and productivity.
            (2) Actions.--In taking actions under paragraph (1), the 
        Secretary shall--
                    (A) require consistent standards of quality for 
                contract civilian health care personnel providing 
                support of military treatment facilities under the 
                TRICARE program, including--
                          (i) consistent credentialing requirements 
                      among military treatment facilities;
                          (ii) consistent performance standards for 
                      private sector companies providing health care 
                      staffing services to military treatment facilities 
                      and clinics, including, at a minimum, those 
                      standards established for accreditation of health 
                      care staffing firms by the Joint Commission on the 
                      Accreditation of Health Care Organizations Health 
                      Care Staffing Standards; and
                          (iii) additional standards covering--
                                    (I) financial stability;
                                    (II) medical management;
                                    (III) continuity of operations;
                                    (IV) training;
                                    (V) employee retention;
                                    (VI) access to contractor data; and
                                    (VII) fraud prevention;
                    (B) ensure the availability of adequate and 
                sustainable funding support for projects which produce a 
                return on investment to the military treatment 
                facilities;
                    (C) ensure that a portion of any return on 
                investment is returned to the military treatment 
                facility to which such savings are attributable;
                    (D) remove financial disincentives for military 
                treatment facilities and civilian contractors to 
                initiate and sustain agreements for the support of 
                military treatment facilities by such contractors under 
                the TRICARE program;
                    (E) provide for a consistent methodology across all 
                regions of the TRICARE program for developing cost 
                benefit analyses of agreements for the support of 
                military treatment facilities by civilian contractors 
                under the TRICARE program based on actual cost and 
                utilization data within each region of the TRICARE 
                program; and

[[Page 120 STAT. 2298]]

                    (F) provide for a system for monitoring the 
                performance of significant projects for support of 
                military treatment facilities by a civilian contractor 
                under the TRICARE program.

    (d) Reports to Congress.--
            (1) Annual reports required.--Not later than February 1, 
        2008, and each year thereafter, the Secretary, in coordination 
        with the military departments, shall submit to the Committees on 
        Armed Services of the Senate and the House of Representatives a 
        report on the support of military treatment facilities by 
        civilian contractors under the TRICARE program during the 
        preceding fiscal year.
            (2) Elements.--Each report shall set forth, for the fiscal 
        year covered by such report, the following:
                    (A) The level of support of military health 
                treatment facilities that is provided by contract 
                civilian health care personnel under the TRICARE program 
                in each region of the TRICARE program.
                    (B) An assessment of the compliance of such support 
                with regional requirements under subsection (a).
                    (C) The number and type of agreements for the 
                support of military treatment facilities by contract 
                civilian health care personnel.
                    (D) The standards of quality in effect under the 
                requirements under subsection (a).
                    (E) The savings anticipated, and any savings 
                achieved, as a result of the implementation of the 
                requirements under subsection (a).
                    (F) An assessment of the compliance of contracts for 
                health care staffing services for Department of Defense 
                facilities with the requirements of subsection 
                (c)(2)(A).

    (e) Effective Date.--This section shall take effect on October 1, 
2006.
SEC. 733. STANDARDS AND TRACKING OF ACCESS TO HEALTH CARE SERVICES 
                        FOR WOUNDED, INJURED, OR ILL 
                        SERVICEMEMBERS RETURNING TO THE UNITED 
                        STATES FROM A COMBAT ZONE.

    (a) Report on Uniform Standards for Access.--Not later than 90 days 
after the date of the enactment of this Act, the Secretary of Defense 
shall submit to the Committees on Armed Services of the Senate and the 
House of Representatives a report on uniform standards for the access of 
wounded, injured, or ill members of the Armed Forces to health care 
services in the United States following return from a combat zone.
    (b) Matters Covered.--The report required by subsection (a) shall 
describe in detail policies with respect to the following:
            (1) The access of wounded, injured, or ill members of the 
        Armed Forces to emergency care.
            (2) The access of such members to surgical services.
            (3) Waiting times for referrals and consultations of such 
        members by medical personnel, dental personnel, mental health 
        specialists, and rehabilitative service specialists, including 
        personnel and specialists with expertise in prosthetics and in 
        the treatment of head, vision, and spinal cord injuries.
            (4) Waiting times of such members for acute care and for 
        routine follow-up care.

[[Page 120 STAT. 2299]]

    (c) Referral to Providers Outside Military Health Care System.--The 
Secretary shall require that health care services and rehabilitation 
needs of members described in subsection (a) be met through whatever 
means or mechanisms possible, including through the referral of members 
described in that subsection to health care providers outside the 
military health care system.
    (d) Uniform System for Tracking of Performance.--The Secretary shall 
establish a uniform system for tracking the performance of the military 
health care system in meeting the requirements for access of wounded, 
injured, or ill members of the Armed Forces to health care services 
described in subsection (a).
    (e) Reports.--
            (1) Tracking system.--Not later than 180 days after the date 
        of the enactment of this Act, the Secretary shall submit to the 
        Committees on Armed Services of the Senate and the House of 
        Representatives a report on the system established under 
        subsection (d).
            (2) Access.--Not later than October 1, 2006, and each 
        quarter thereafter during fiscal year 2007, the Secretary shall 
        submit to such committees a report on the performance of the 
        health care system in meeting the access standards described in 
        the report required by subsection (a).
SEC. 734. DISEASE AND CHRONIC CARE MANAGEMENT.

    (a) Program Design and Development <<NOTE: Deadline.>> Required.--
Not later than October 1, 2007, the Secretary of Defense shall design 
and develop a fully integrated program on disease and chronic care 
management for the military health care system that provides, to the 
extent practicable, uniform policies and practices on disease management 
and chronic care management throughout that system, including both 
military hospitals and clinics and civilian healthcare providers within 
the TRICARE network.

    (b) Purposes of Program.--The purposes of the program required by 
subsection (a) are as follows:
            (1) To facilitate the improvement of the health status of 
        individuals under care in the military health care system.
            (2) To ensure the availability of effective health care 
        services in that system for individuals with diseases and other 
        chronic conditions.
            (3) To ensure the proper allocation of health care resources 
        for individuals who need care for disease or other chronic 
        conditions.

    (c) Elements of Program Design.--The program design required by 
subsection (a) shall meet the following requirements:
            (1) Based on uniform policies prescribed by the Secretary, 
        the program shall, at a minimum, address the following chronic 
        diseases and conditions:
                    (A) Diabetes.
                    (B) Cancer.
                    (C) Heart disease.
                    (D) Asthma.
                    (E) Chronic obstructive pulmonary disorder.
                    (F) Depression and anxiety disorders.
            (2) The program shall meet nationally recognized 
        accreditation standards for disease and chronic care management.
            (3) The program shall include specific outcome measures and 
        objectives on disease and chronic care management.

[[Page 120 STAT. 2300]]

            (4) The program shall include strategies for disease and 
        chronic care management for all beneficiaries, including 
        beneficiaries eligible for benefits under the Medicare program 
        under title XVIII of the Social Security Act (42 U.S.C. 1395 et 
        seq.), for whom the TRICARE program is not the primary payer for 
        health care benefits.
            (5) Activities under the program shall conform to applicable 
        laws and regulations relating to the confidentiality of health 
        care information.

    (d) Implementation Plan Required.--Not later than February 1, 2008, 
the Secretary of Defense, in coordination with the Secretaries of the 
military departments, shall develop an implementation plan for the 
disease and chronic care management program. In order to facilitate the 
carrying out of the program, the plan developed by the Secretary shall--
            (1) require a comprehensive analysis of the disease and 
        chronic care management opportunities within each region of the 
        TRICARE program, including within military treatment facilities 
        and through contractors under the TRICARE program;
            (2) ensure continuous, adequate funding of disease and 
        chronic care management activities throughout the military 
        health care system in order to achieve maximum health outcomes 
        and cost avoidance;
            (3) eliminate, to the extent practicable, any financial 
        disincentives to sustained investment by military hospitals and 
        health care services contractors of the Department of Defense in 
        the disease and chronic care management activities of the 
        Department;
            (4) ensure that appropriate clinical and claims data, 
        including pharmacy utilization data, is available for use in 
        implementing the program;
            (5) ensure outreach to eligible beneficiaries who, on the 
        basis of their clinical conditions, are candidates for the 
        program utilizing print and electronic media, telephone, and 
        personal interaction; and
            (6) provide a system for monitoring improvements in health 
        status and clinical outcomes under the program and savings 
        associated with the program.

    (e) Report.--
            (1) In general.--Not later than March 1, 2008, the Secretary 
        of Defense shall submit to the Committees on Armed Services of 
        the Senate and the House of Representatives a report on the 
        design, development, and implementation of the program on 
        disease and chronic care management required by this section.
            (2) Report elements.--The report required by paragraph (1) 
        shall include the following:
                    (A) A description of the design and development of 
                the program required by subsection (a).
                    (B) A description of the implementation plan 
                required by subsection (d).
                    (C) A description and assessment of improvements in 
                health status and clinical outcomes that are anticipated 
                as a result of implementation of the program.
                    (D) A description of the savings and return on 
                investment associated with the program.

[[Page 120 STAT. 2301]]

                    (E) A description of an investment strategy to 
                assure the sustainment of the disease and chronic care 
                management programs of the Department of Defense.
SEC. 735. ADDITIONAL ELEMENTS OF ASSESSMENT OF DEPARTMENT OF 
                        DEFENSE TASK FORCE ON MENTAL HEALTH 
                        RELATING TO MENTAL HEALTH OF MEMBERS WHO 
                        WERE DEPLOYED IN OPERATION IRAQI FREEDOM 
                        AND OPERATION ENDURING FREEDOM.

    Section 723(c) of the National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109-163; 119 Stat. 3348) is amended by adding at 
the end the following new paragraph:
            ``(4) Mental health needs of members who were deployed in 
        oif or oef.--As part of the assessment required by paragraph (1) 
        of the efficacy of mental health services provided to members of 
        the Armed Forces by the Department of Defense, the task force 
        shall consider the specific needs with respect to mental health 
        of members who were deployed in Operation Iraqi Freedom or 
        Operation Enduring Freedom upon their return from such 
        deployment, including the following:
                    ``(A) An identification of mental health conditions 
                and disorders (including Post Traumatic Stress Disorder, 
                suicide attempts, and suicide) occurring among members 
                who have undergone multiple deployments in Operation 
                Iraqi Freedom or Operation Enduring Freedom.
                    ``(B) An evaluation of the availability to members 
                of assessments under the Mental Health Self-Assessment 
                Program of the Department of Defense to ensure the long-
                term availability of the diagnostic mechanisms of the 
                assessment to detect mental health conditions that may 
                emerge in such members over time.
                    ``(C) The availability of programs and services 
                under the Mental Health Self-Assessment Program to 
                address the mental health of dependent children of 
                members who were deployed in Operation Iraqi Freedom or 
                Operation Enduring Freedom.
                    ``(D) Recommendations on mechanisms for improving 
                the mental health services available to members who were 
                deployed in Operation Iraqi Freedom or Operation 
                Enduring Freedom, including members who have undergone 
                multiple deployments.''.
SEC. 736. ADDITIONAL AUTHORIZED OPTION PERIODS FOR EXTENSION OF 
                        CURRENT CONTRACTS UNDER TRICARE.

    (a) Additional Number of Authorized Periods.--
            (1) In general.--The Secretary of Defense, after consulting 
        with the other administering Secretaries, may extend any 
        contract for the delivery of health care entered into under 
        section 1097 of title 10, United States Code, that is in force 
        on the date of the enactment of this Act by one year, and upon 
        expiration of such extension by one additional year, if the 
        Secretary determines that such extension--
                    (A) is in the best interests of the Department of 
                Defense and covered beneficiaries;
                    (B) is cost effective; and
                    (C) will--

[[Page 120 STAT. 2302]]

                          (i) facilitate the effective administration of 
                      the TRICARE program; or
                          (ii) ensure continuity in the delivery of 
                      health care under the TRICARE program.
            (2) Limitation on number of extensions.--The total number of 
        one-year extensions of a contract that may be granted under 
        paragraph (1) may not exceed two extensions.
            (3) Notice and wait.--The Secretary may not commence the 
        exercise of the authority in paragraph (1) with respect to a 
        contract covered by that paragraph until 30 days after the date 
        on which the Secretary submits to the Committees on Armed 
        Services of the Senate and House of Representatives a report 
        setting forth the following:
                    (A) The minimum level of performance, including 
                beneficiary satisfaction and cost, by the incumbent 
                contractor under the contract that will be required by 
                the Secretary in order to be eligible for an extension 
                authorized by such paragraph.
                    (B) The justification for such extension based on 
                each of the criteria in paragraph (1).
                    (C) The justification for such extension based on a 
                cost-benefit analysis.
            (4) Definitions.--In this subsection, the terms 
        ``administering Secretaries'', ``covered beneficiary'', and 
        ``TRICARE program'' have the meaning given such terms in section 
        1072 of title 10, United States Code.

    (b) Report on Contracting Mechanisms for Health Care Service Support 
Contracts.--Not later than 180 days after the date of the enactment of 
this Act, the Secretary shall submit to the Committees on Armed Services 
of the Senate and House of Representatives a report on contracting 
mechanisms under consideration for future contracts for health care 
service support under section 1097 of title 10, United States Code. The 
report shall include an assessment of the advantages and disadvantages 
for the Department of Defense (including the potential for stimulating 
competition and the effect on health care beneficiaries of the 
Department) of providing in such contracts for a single term of 5 years, 
with a single optional period of extension of an additional 5 years if 
performance under such contract is rated as ``excellent''.
SEC. 737. MILITARY VACCINATION MATTERS.

    (a) Additional Element for Comptroller General Study and Report on 
Vaccine Healthcare Centers.--Section 736(b) of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 
3356) is amended by adding at the end the following new paragraph:
            ``(10) The feasibility and advisability of transferring 
        direct responsibility for the Centers from the Army Medical 
        Command to the Under Secretary of Defense for Personnel and 
        Readiness and the Deputy Assistant Secretary of Defense for 
        Force Health Protection and Readiness.''.

    (b) Limitation on Restructuring of Vaccine Healthcare Centers.--The 
Secretary of Defense may not downsize or otherwise restructure the 
Vaccine Healthcare Centers of the Department of Defense during fiscal 
year 2007. The Secretary shall ensure that the Secretary of each 
military department shall, from amounts allocated during fiscal year 
2007 from the Defense Health Program,

[[Page 120 STAT. 2303]]

fund and maintain the Vaccine Healthcare Center of the military 
department concerned.
SEC. 738. ENHANCED MENTAL HEALTH SCREENING AND SERVICES FOR 
                        MEMBERS OF THE ARMED FORCES.

    (a) Additional Required Elements for Predeployment and 
Postdeployment Medical Examinations.--Subsection (b) of section 1074f of 
title 10, United States Code, is amended--
            (1) by inserting ``(1)'' before ``The system''; and
            (2) by adding at the end the following new paragraph:

    ``(2) The predeployment and postdeployment medical examination of a 
member of the armed forces required under paragraph (1) shall include 
the following:
            ``(A) An assessment of the current treatment of the member 
        and any use of psychotropic medications by the member for a 
        mental health condition or disorder.
            ``(B) An assessment of traumatic brain injury.''.

    (b) Criteria for Referral for Further Evaluations.--Such section is 
further amended by adding at the end the following:
    ``(e) Criteria for Referral for Further Evaluations.--The system 
described in subsection (a) shall include--
            ``(1) development of clinical practice guidelines to be 
        utilized by healthcare providers in determining whether to refer 
        a member of the armed forces for further evaluation relating to 
        mental health (including traumatic brain injury);
            ``(2) mechanisms to ensure that healthcare providers are 
        trained in the application of such clinical practice guidelines; 
        and
            ``(3) mechanisms for oversight to ensure that healthcare 
        providers apply such guidelines consistently.''.

    (c) Minimum Mental Health Standards for Deployment.--Such section is 
further amended by adding at the end the following:
    ``(f) Minimum Mental Health Standards for Deployment.--
(1) <<NOTE: Regulations.>> The Secretary of Defense shall prescribe in 
regulations minimum standards for mental health for the eligibility of a 
member of the armed forces for deployment to a combat operation or 
contingency operation.

    ``(2) The standards required by paragraph (1) shall include the 
following:
            ``(A) A specification of the mental health conditions, 
        treatment for such conditions, and receipt of psychotropic 
        medications for such conditions that preclude deployment of a 
        member of the armed forces to a combat operation or contingency 
        operation, or to a specified type of such operation.
            ``(B) Guidelines for the deployability and treatment of 
        members of the armed forces diagnosed with a severe mental 
        illness or post traumatic stress disorder.

    ``(3) The Secretary shall take appropriate actions to ensure the 
utilization of the standards prescribed under paragraph (1) in the 
making of determinations regarding the deployability of members of the 
armed forces to a combat operation or continency operation.''.
    (d) Quality Assurance.--Subsection (d) of such section is amended--
            (1) by inserting ``(1)'' before ``The Secretary of 
        Defense''; and
            (2) by adding at the end the following new paragraphs:

[[Page 120 STAT. 2304]]

    ``(2) The quality assurance program established under paragraph (1) 
shall also include the following elements:
            ``(A) The types of healthcare providers conducting 
        postdeployment health assessments.
            ``(B) The training received by such providers applicable to 
        the conduct of such assessments, including training on 
        assessments and referrals relating to mental health.
            ``(C) The guidance available to such providers on how to 
        apply the clinical practice guidelines developed under 
        subsection (e)(1) in determining whether to make a referral for 
        further evaluation of a member of the armed forces relating to 
        mental health.
            ``(D) The effectiveness of the tracking mechanisms required 
        under this section in ensuring that members who receive 
        referrals for further evaluations relating to mental health 
        receive such evaluations and obtain such care and services as 
        are warranted.
            ``(E) Programs established for monitoring the mental health 
        of each member who, after deployment to a combat operation or 
        contingency operations, is known--
                    ``(i) to have a mental health condition or disorder; 
                or
                    ``(ii) to be receiving treatment, including 
                psychotropic medications, for a mental health condition 
                or disorder.''.

    (e) Comptroller General Reports on Implementation of Requirements.--
            (1) Study on implementation.--The Comptroller General of the 
        United States shall carry out a study of the implementation of 
        the requirements of the amendments made by this section.
            (2) Reports.--Not later than March 1, 2008, the Comptroller 
        General shall submit to the Committees on Armed Services of the 
        Senate and the House of Representatives a report on the study 
        carried out under paragraph (1).

    (f) Implementation.--The <<NOTE: Deadline.>> Secretary of Defense 
shall implement the requirements of the amendments made by this section 
not later than six months after the date of the enactment of this Act.

    (g) Report Required.--The Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the actions taken to implement the 
requirements of the amendments made by this section not later than June 
1, 2007.

                        Subtitle D--Other Matters

SEC. 741. PILOT PROJECTS ON EARLY DIAGNOSIS AND TREATMENT OF POST 
                        TRAUMATIC STRESS DISORDER AND OTHER MENTAL 
                        HEALTH CONDITIONS.

    (a) Pilot Projects Required.--The Secretary of Defense shall carry 
out not less than three pilot projects to evaluate the efficacy of 
various approaches to improving the capability of the military and 
civilian health care systems to provide early diagnosis and treatment of 
post traumatic stress disorder and other mental health conditions.

[[Page 120 STAT. 2305]]

    (b) Duration.--Any <<NOTE: Deadlines.>> pilot project carried out 
under this section shall begin not later than October 1, 2007, and cease 
on September 30, 2008.

    (c) Pilot Project Requirements.--
            (1) Diagnostic and treatment approaches.--One of the pilot 
        projects under this section shall be designed to evaluate 
        effective diagnostic and treatment approaches for use by primary 
        care providers in the military health care system in order to 
        improve the capability of such providers to diagnose and treat 
        post traumatic stress disorder.
            (2) National guard or reserve members.--
                    (A) One of the pilot projects under this section 
                shall be focused on members of the National Guard or 
                Reserves who are located more than 40 miles from a 
                military medical facility and who are served primarily 
                by civilian community health resources.
                    (B) The pilot project described in subparagraph (A) 
                shall be designed to develop educational materials and 
                other tools for use by members of the National Guard or 
                Reserves who come into contact with other members of the 
                National Guard or Reserves who may suffer from post 
                traumatic stress disorder in order to encourage and 
                facilitate early reporting and referral for treatment.
            (3) Outreach.--One of the pilot projects under this section 
        shall be designed to provide outreach to the family members of 
        the members of the Armed Forces on post traumatic stress 
        disorder and other mental health conditions.

    (d) Evaluation of Pilot Projects.--The Secretary shall evaluate each 
pilot project carried out under this section in order to assess the 
effectiveness of the approaches taken under such pilot project--
            (1) to improve the capability of the military and civilian 
        health care systems to provide early diagnosis and treatment of 
        post traumatic stress disorder and other mental health 
        conditions among members of the regular components of the Armed 
        Forces, and among members of the National Guard and Reserves, 
        who have returned from deployment; and
            (2) to provide outreach to the family members of the members 
        of the Armed Forces described in paragraph (1) on post traumatic 
        stress disorder and other mental health conditions among such 
        members of the Armed Forces.

    (e) Report to Congress.--
            (1) Report required.--Not later than December 31, 2008, the 
        Secretary shall submit to the congressional defense committees a 
        report on the pilot projects carried out under this section.
            (2) Elements.--The report required by paragraph (1) shall 
        include the following:
                    (A) A description of each pilot project carried out 
                under this section.
                    (B) An assessment of the effectiveness of the 
                approaches taken under each pilot project to improve the 
                capability of the military and civilian health care 
                systems to provide early diagnosis and treatment of post 
                traumatic stress disorder and other mental health 
                conditions among members of the Armed Forces.

[[Page 120 STAT. 2306]]

                    (C) Any recommendations for legislative or 
                administrative action that the Secretary considers 
                appropriate in light of the pilot projects, including 
                recommendations on--
                          (i) the training of health care providers in 
                      the military and civilian health care systems on 
                      early diagnosis and treatment of post traumatic 
                      stress disorder and other mental health 
                      conditions; and
                          (ii) the provision of outreach on post 
                      traumatic stress disorder and other mental health 
                      conditions to members of the National Guard and 
                      Reserves who have returned from deployment.
                    (D) A plan, in light of the pilot projects, for the 
                improvement of the health care services provided to 
                members of the Armed Forces in order to better assure 
                the early diagnosis and treatment of post traumatic 
                stress disorder and other mental health conditions among 
                members of the Armed Forces, including a specific plan 
                for outreach on post traumatic stress disorder and other 
                mental health conditions to members of the National 
                Guard and Reserves who have returned from deployment in 
                order to facilitate and enhance the early diagnosis and 
                treatment of post traumatic stress disorder and other 
                mental health conditions among such members of the 
                National Guard and Reserves.
SEC. 742. REQUIREMENT TO CERTIFY AND REPORT ON CONVERSION OF 
                        MILITARY MEDICAL AND DENTAL POSITIONS TO 
                        CIVILIAN MEDICAL AND DENTAL POSITIONS.

    (a) Prohibition on Conversions.--
            (1) Submission of certification.--The Secretary of a 
        military department may not convert any military medical or 
        dental position to a civilian medical or dental position in a 
        fiscal year until the Secretary submits to the congressional 
        defense committees with respect to that fiscal year a 
        certification that the conversions within that department will 
        not increase cost or decrease quality of care or access to care.
            (2) Report on certification.--Each certification under 
        paragraph (1) shall include a written report setting forth the 
        following:
                    (A) The methodology used by the Secretary in making 
                the determinations necessary for the certification.
                    (B) The number of military medical or dental 
                positions, by grade or band and specialty, planned for 
                conversion to civilian medical or dental positions.
                    (C) The results of a market survey in each affected 
                area of the availability of civilian medical and dental 
                care providers in such area in order to determine 
                whether the civilian medical and dental care providers 
                available in such area are adequate to fill the civilian 
                positions created by the conversion of military medical 
                and dental positions to civilian positions in such area.
                    (D) An analysis, by affected area, showing the 
                extent to which access to health care and cost of health 
                care will be affected in both the direct care and 
                purchased care systems, including an assessment of the 
                effect of any increased shifts in patient load from the 
                direct care to the purchased care system, or any delays 
                in receipt of

[[Page 120 STAT. 2307]]

                care in either the direct or purchased care system 
                because of the planned conversions.
                    (E) The extent to which military medical and dental 
                positions planned for conversion to civilian medical or 
                dental positions will affect recruiting and retention of 
                uniformed medical and dental personnel.
                    (F) A comparison of the full costs for the military 
                medical and dental positions planned for conversion with 
                the estimated full costs for civilian medical and dental 
                positions, including expenses such as recruiting, 
                salary, benefits, training, and any other costs the 
                Department identifies.
                    (G) An assessment showing that the military medical 
                or dental positions planned for conversion are in excess 
                of the military medical and dental positions needed to 
                meet medical and dental readiness requirements of the 
                uniformed services, as determined jointly by all the 
                uniformed services.
                    (H) An identification of each medical and dental 
                position scheduled to be converted to a civilian 
                position in the subsequent fiscal year, including the 
                location of each position scheduled for conversion, the 
                estimated cost of such conversion, and whether or not 
                civilian personnel are available in the location for 
                filling a converted military medical or dental position.
            (3) Submission deadline.--A certification and report with 
        respect to any fiscal year after fiscal year 2007 shall be 
        submitted at the same time the budget of the President for such 
        fiscal year is submitted to Congress pursuant to section 1105(a) 
        of title 31, United States Code.

    (b) Requirement for <<NOTE: Deadline.>> Comptroller General 
Review.--Not later than 120 days after the submission of the budget of 
the President for a fiscal year, the Comptroller General shall submit to 
the congressional defense committees a report on any certifications and 
reports submitted with respect to that fiscal year under subsection (a).

    (c) Requirement to Resubmit Certification and Report Required by 
Public Law 109-163.--The Secretary of each military department shall 
resubmit the certification and report required by section 744(a) of the 
National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-
163; 119 Stat. 3360; 10 U.S.C. 129c note). Such resubmissions shall 
address in their entirety the elements required by section 744(a)(2) of 
such Act.
    (d) Special Requirements for Fiscal Year 2007 Certification.--
            (1) List of 2007 planned conversions.--The report required 
        by paragraph (2) of subsection (a) with respect to fiscal year 
        2007 shall contain, in addition to the elements required by that 
        paragraph, a list of each military medical or dental position 
        scheduled to be converted to a civilian medical or dental 
        position in fiscal year 2007.
            (2) Resubmission required first.--The certification and 
        report required by subsection (a) with respect to fiscal year 
        2007 may not be submitted prior to the resubmission required by 
        subsection (c).
            (3) Prohibition on conversions during fiscal year 2007.--No 
        conversions of a military medical or dental position

[[Page 120 STAT. 2308]]

        may occur during fiscal year 2007 prior to both the resubmission 
        required by subsection (c) and the submission of the 
        certification and report required by subsection (a).

    (e) Report on Fiscal Year 2008 Conversion.--Not later than 90 days 
after the date of the enactment of this Act, the Secretary of Defense 
shall submit to the Committees on Armed Services of the Senate and House 
of Representatives a report that identifies the military medical or 
dental positions scheduled to be converted to civilian medical or dental 
positions in fiscal year 2008. Such report shall include the location of 
the positions scheduled for conversion, the estimated cost of such 
conversion, and whether or not civilian personnel are available in the 
location for filling the proposed converted military medical or dental 
position.
    (f) Definitions.--In this section:
            (1) The term ``military medical or dental position'' means a 
        position for the performance of health care functions within the 
        Armed Forces held by a member of the Armed Forces.
            (2) The term ``civilian medical or dental position'' means a 
        position for the performance of health care functions within the 
        Department of Defense held by an employee of the Department or 
        of a contractor of the Department.
            (3) The term ``affected area'' means an area in which 
        military medical or dental positions were converted to civilian 
        medical or dental positions before October 1, 2004, or in which 
        such conversions are scheduled to occur in the future.
            (4) The term ``uniformed services'' has the meaning given 
        that term in section 1072(1) of title 10, United States Code.
            (5) The term ``conversion'', with respect to a military 
        medical or dental position, means a change, effective as of the 
        date of the documentation by the Department of Defense making 
        the change, of the position to a civilian medical or dental 
        position.
SEC. 743. THREE-YEAR EXTENSION OF JOINT INCENTIVES PROGRAM ON 
                        SHARING OF HEALTH CARE RESOURCES BY THE 
                        DEPARTMENT OF DEFENSE AND DEPARTMENT OF 
                        VETERANS AFFAIRS.

    Section 8111(d)(3) of title 38, United States Code, is amended by 
striking ``September 30, 2007'' and inserting ``September 30, 2010''.
SEC. 744. TRAINING CURRICULA FOR FAMILY CAREGIVERS ON CARE AND 
                        ASSISTANCE FOR MEMBERS AND FORMER MEMBERS 
                        OF THE ARMED FORCES WITH TRAUMATIC BRAIN 
                        INJURY.

    (a) Traumatic Brain Injury Family Caregiver Panel.--
            (1) Establishment.--The Secretary of Defense shall establish 
        a panel within the Department of Defense, to be known as the 
        ``Traumatic Brain Injury Family Caregiver Panel'', to develop 
        coordinated, uniform, and consistent training curricula to be 
        used in training family members in the provision of care and 
        assistance to members and former members of the Armed Forces 
        with traumatic brain injuries.
            (2) Members.--The Traumatic Brain Injury Family Caregiver 
        Panel shall consist of 15 members appointed by the Secretary of 
        Defense from among the following:
                    (A) Physicians, nurses, rehabilitation therapists, 
                and other individuals with an expertise in caring for 
                and assisting individuals with traumatic brain injury, 
                including

[[Page 120 STAT. 2309]]

                persons who specialize in caring for and assisting 
                individuals with traumatic brain injury incurred in 
                combat.
                    (B) Representatives of family caregivers or family 
                caregiver associations.
                    (C) Health and medical personnel of the Department 
                of Defense and the Department of Veterans Affairs with 
                expertise in traumatic brain injury and personnel and 
                readiness representatives of the Department of Defense 
                with expertise in traumatic brain injury.
                    (D) Psychologists or other individuals with 
                expertise in the mental health treatment and care of 
                individuals with traumatic brain injury.
                    (E) Experts in the development of training 
                curricula.
                    (F) Family members of members of the Armed Forces 
                with traumatic brain injury.
                    (G) Such other individuals the Secretary considers 
                appropriate.
            (3) Consultation.--In establishing the Traumatic Brain 
        Injury Family Caregiver Panel and appointing the members of the 
        Panel, the Secretary of Defense shall consult with the Secretary 
        of Veterans Affairs.

    (b) Development of Curricula.--
            (1) Development.--The Traumatic Brain Injury Family 
        Caregiver Panel shall develop training curricula to be used by 
        family members of members and former members of the Armed Forces 
        on techniques, strategies, and skills for care and assistance 
        for such members and former members with traumatic brain injury.
            (2) Scope of curricula.--The curricula shall--
                    (A) be based on empirical research and validated 
                techniques; and
                    (B) shall provide for training that permits 
                recipients to tailor caregiving to the unique 
                circumstances of the member or former member of the 
                Armed Forces receiving care.
            (3) Particular requirements.--In developing the curricula, 
        the Traumatic Brain Injury Family Caregiver Panel shall--
                    (A) specify appropriate training commensurate with 
                the severity of traumatic brain injury; and
                    (B) identify appropriate care and assistance to be 
                provided for the degree of severity of traumatic brain 
                injury for caregivers of various levels of skill and 
                capability.
            (4) Use of existing materials.--In developing the curricula, 
        the Traumatic Brain Injury Family Caregiver Panel shall use and 
        enhance any existing training curricula, materials, and 
        resources applicable to such curricula as the Panel considers 
        appropriate.
            (5) Deadline for development.--The Traumatic Brain Injury 
        Family Caregiver Panel shall develop the curricula not later 
        than one year after the date of the enactment of this Act.

    (c) Dissemination of Curricula.--
            (1) Dissemination mechanisms.--The Secretary of Defense 
        shall develop mechanisms for the dissemination of the curricula 
        developed under subsection (b)--

[[Page 120 STAT. 2310]]

                    (A) to health care professionals who treat or 
                otherwise work with members and former members of the 
                Armed Forces with traumatic brain injury;
                    (B) to family members affected by the traumatic 
                brain injury of such members and former members; and
                    (C) to other care or support personnel who may 
                provide service to members or former members affected by 
                traumatic brain injury.
            (2) Use of existing mechanisms.--In developing such 
        mechanisms, the Secretary may use and enhance existing 
        mechanisms, including the Military Severely Injured Center 
        (authorized under section 564 of this Act) and the programs for 
        service to severely injured members established by the military 
        departments.

    (d) Report.--Not later than one year after the development of the 
curricula required by subsection (b), the Secretary of Defense and the 
Secretary of Veterans Affairs shall submit to the Committees on Armed 
Services and Veterans Affairs of the Senate and the House of 
Representatives a report on the following:
            (1) The actions undertaken under this section.
            (2) Recommendations for the improvement or updating of 
        training curriculum developed and provided under this section.
SEC. 745. RECOGNITION OF REPRESENTATIVE LANE EVANS UPON HIS 
                        RETIREMENT FROM THE HOUSE OF 
                        REPRESENTATIVES.

    (a) Findings.--Congress makes the following findings:
            (1) Representative Lane Evans was elected to the House of 
        Representatives in 1982 and is completing his 12th term 
        representing the people of Illinois' 17th Congressional 
        district.
            (2) As a member of the Committee on Armed Services of the 
        House of Representatives since 1988, Representative Evans has 
        worked to bring common sense priorities to defense spending and 
        strengthen the military's conventional readiness.
            (3) Representative Evans has served as the ranking member of 
        the Committee on Veterans' Affairs of the House of 
        Representatives since 1997 and has been a tireless advocate for 
        military veterans, ensuring that veterans receive the medical 
        care they need and advocating for individuals suffering from 
        post-traumatic stress disorder and Gulf War Syndrome.
            (5) Drawing on his own experience as a member of the Marine 
        Corps, Representative Evans has tirelessly fought for both 
        current members of the Armed Forces and veterans and has been a 
        leader in legislative efforts to assist members exposed to Agent 
        Orange.
            (4) Representative Evans' efforts to improve the transition 
        of individuals from military service to the care of the 
        Department of Veterans Affairs will continue to benefit 
        generations of veterans long into the future.
            (6) Representative Evans is credited with bringing new 
        services to veterans living in his Congressional district, 
        including outpatient clinics in the Quad Cities and Quincy and 
        the Quad-Cities Vet Center.
            (7) Representative Evans has worked with local leaders to 
        promote the Rock Island Arsenal and has seen it win new jobs and 
        missions through his support.

    (b) Recognition.--Congress recognizes and commends Representative 
Lane Evans for his 24 years of service to benefit the

[[Page 120 STAT. 2311]]

people of Illinois, members of the Armed Forces and their families, 
veterans, and the United States.

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

  Subtitle A--Provisions Relating to Major Defense Acquisition Programs

Sec. 801. Requirements management certification training program.
Sec. 802. Additional requirements relating to technical data rights.
Sec. 803. Study and report on revisions to Selected Acquisition Report 
           requirements.
Sec. 804. Biannual updates on implementation of acquisition reform in 
           the Department of Defense.
Sec. 805. Additional certification requirements for major defense 
           acquisition programs before proceeding to Milestone B.
Sec. 806. Original baseline estimate for major defense acquisition 
           programs.
Sec. 807. Lead system integrators.

              Subtitle B--Acquisition Policy and Management

Sec. 811. Time-certain development for Department of Defense information 
           technology business systems.
Sec. 812. Pilot program on time-certain development in acquisition of 
           major weapon systems.
Sec. 813. Establishment of Panel on Contracting Integrity.
Sec. 814. Linking of award and incentive fees to acquisition outcomes.
Sec. 815. Report on defense instruction relating to contractor personnel 
           authorized to accompany Armed Forces.
Sec. 816. Major automated information system programs.
Sec. 817. Internal controls for procurements on behalf of the Department 
           of Defense by certain non-defense agencies.
Sec. 818. Determination of contract type for development programs.
Sec. 819. Three-year extension of requirement for reports on commercial 
           price trend analyses of the Department of Defense.
Sec. 820. Government performance of critical acquisition functions.

 Subtitle C--Amendments to General Contracting Authorities, Procedures, 
                             and Limitations

Sec. 831. One-year extension of special temporary contract closeout 
           authority.
Sec. 832. Limitation on contracts for the acquisition of certain 
           services.
Sec. 833. Use of Federal supply schedules by State and local governments 
           for goods and services for recovery from natural disasters, 
           terrorism, or nuclear, biological, chemical, or radiological 
           attack.
Sec. 834. Waivers to extend task order contracts for advisory and 
           assistance services.

      Subtitle D--United States Defense Industrial Base Provisions

Sec. 841. Assessment and annual report of United States defense 
           industrial base capabilities and acquisitions of articles, 
           materials, and supplies manufactured outside the United 
           States.
Sec. 842. Protection of strategic materials critical to national 
           security.
Sec. 843. Strategic Materials Protection Board.

                        Subtitle E--Other Matters

Sec. 851. Report on former Department of Defense officials employed by 
           contractors of the Department of Defense.
Sec. 852. Report and regulations on excessive pass-through charges.
Sec. 853.  Program manager empowerment and accountability.
Sec. 854. Joint policies on requirements definition, contingency program 
           management, and contingency contracting.
Sec. 855. Clarification of authority to carry out certain prototype 
           projects.
Sec. 856. Contracting with employers of persons with disabilities.
Sec. 857. Enhanced access for small business.
Sec. 858. Procurement goal for Hispanic-serving institutions.

[[Page 120 STAT. 2312]]

  Subtitle A--Provisions Relating to Major Defense Acquisition Programs

SEC. 801. REQUIREMENTS MANAGEMENT CERTIFICATION TRAINING PROGRAM.

    (a) Training Program.--
            (1) Requirement.--The Under Secretary of Defense for 
        Acquisition, Technology, and Logistics, in consultation with the 
        Defense Acquisition University, shall develop a training program 
        to certify military and civilian personnel of the Department of 
        Defense with responsibility for generating requirements for 
        major defense acquisition programs (as defined in section 
        2430(a) of title 10, United States Code).
            (2) Competency and other requirements.--The Under Secretary 
        shall establish competency requirements for the personnel 
        undergoing the training program. The Under Secretary shall 
        define the target population for such training program by 
        identifying which military and civilian personnel should have 
        responsibility for generating requirements. The Under Secretary 
        also may establish other training programs for personnel not 
        subject to chapter 87 of title 10, United States Code, who 
        contribute significantly to other types of acquisitions by the 
        Department of Defense.

    (b) Applicability.--Effective <<NOTE: Effective date.>> on and after 
September 30, 2008, a member of the Armed Forces or an employee of the 
Department of Defense with authority to generate requirements for a 
major defense acquisition program may not continue to participate in the 
requirements generation process unless the member or employee 
successfully completes the certification training program developed 
under this section.

    (c) Reports.--The Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and House of Representatives 
an interim report, not later than March 1, 2007, and a final report, not 
later than March 1, 2008, on the implementation of the training program 
required under this section.
SEC. 802. ADDITIONAL REQUIREMENTS RELATING TO TECHNICAL DATA 
                        RIGHTS.

    (a) Additional Requirements Relating to Technical Data Rights.--
Section 2320 of title 10, United States Code, is amended by adding at 
the end the following new subsection:
    ``(e) The Secretary of Defense shall require program managers for 
major weapon systems and subsystems of major weapon systems to assess 
the long-term technical data needs of such systems and subsystems and 
establish corresponding acquisition strategies that provide for 
technical data rights needed to sustain such systems and subsystems over 
their life cycle. Such strategies may include the development of 
maintenance capabilities within the Department of Defense or competition 
for contracts for sustainment of such systems or subsystems. Assessments 
and corresponding acquisition strategies developed under this section 
with respect to a weapon system or subsystem shall--
            ``(1) be developed before issuance of a contract 
        solicitation for the weapon system or subsystem;

[[Page 120 STAT. 2313]]

            ``(2) address the merits of including a priced contract 
        option for the future delivery of technical data that were not 
        acquired upon initial contract award;
            ``(3) address the potential for changes in the sustainment 
        plan over the life cycle of the weapon system or subsystem; and
            ``(4) apply to weapon systems and subsystems that are to be 
        supported by performance-based logistics arrangements as well as 
        to weapons systems and subsystems that are to be supported by 
        other sustainment approaches.''.

    (b) Modification of Presumption of Development Exclusively at 
Private Expense.--Section 2321(f) of title 10, United States Code, is 
amended--
            (1) by striking ``Expense for Commercial Items Contracts.--
        In'' and inserting ``Expense.--(1) Except as provided in 
        paragraph (2), in''; and
            (2) by adding at the end the following new paragraph:

    ``(2) In the case of a challenge to a use or release restriction 
that is asserted with respect to technical data of a contractor or 
subcontractor (whether or not under a contract for commercial items) for 
a major system or a subsystem or component thereof on the basis that the 
major system, subsystem or component was developed exclusively at 
private expense, the challenge to the use or release restriction shall 
be sustained unless information provided by the contractor or 
subcontractor demonstrates that the item was developed exclusively at 
private expense.''.
    (c) Regulations.--Not <<NOTE: Deadline.>> later than 180 days after 
the date of the enactment of this Act, the Secretary of Defense shall 
revise regulations under section 2320 of title 10, United States Code, 
to implement subsection (e) of such section (as added by this section), 
including incorporating policy changes developed under such subsection 
into Department of Defense Directive 5000.1 and Department of Defense 
Instruction 5000.2.
SEC. 803. STUDY AND REPORT ON REVISIONS TO SELECTED ACQUISITION 
                        REPORT REQUIREMENTS.

    (a) Study Requirement.--The Secretary of Defense, acting through the 
Under Secretary of Defense for Acquisition, Technology, and Logistics in 
coordination with the service acquisition executives of each military 
department, shall conduct a study on revisions to requirements relating 
to Selected Acquisition Reports, as set forth in section 2432 of title 
10, United States Code.
    (b) Matters Covered.--The study required under subsection (a) 
shall--
            (1) focus on incorporating into the Selected Acquisition 
        Report those elements of program progress that the Department of 
        Defense considers most relevant to evaluating the performance 
        and progress of major defense acquisition programs, with 
        particular reference to the cost estimates and program schedule 
        established when a major defense acquisition program receives 
        Milestone B approval;
            (2) address the need to ensure that data provided through 
        the Selected Acquisition Report is consistent with data provided 
        through internal Department of Defense reporting systems for 
        management purposes; and

[[Page 120 STAT. 2314]]

            (3) include any recommendations to add to, modify, or delete 
        elements of the Selected Acquisition Report, consistent with the 
        findings of the study.

    (c) Report.--Not later than March 1, 2007, the Secretary shall 
submit to the Committees on Armed Services of the Senate and the House 
of Representatives a report on the results of the study, including such 
recommendations as the Secretary considers appropriate.
SEC. 804. BIANNUAL UPDATES ON IMPLEMENTATION OF ACQUISITION REFORM 
                        IN THE DEPARTMENT OF DEFENSE.

    (a) Biannual Updates Requirement.--
Not <<NOTE: Reports. Deadlines.>> later than January 1 and July 1 of 
each year, beginning with January 1, 2007, the Secretary of Defense 
shall provide to the Committees on Armed Services of the Senate and the 
House of Representatives a report containing an update on the 
implementation of plans to reform the acquisition system in the 
Department of Defense.

    (b) Matters Covered.--Each report provided under subsection (a) 
shall cover the implementation of reforms of the processes for 
acquisition, including generation of requirements, award of contracts, 
and financial management. At a minimum, the reports shall take into 
account the recommendations made by the following:
            (1) The Defense Acquisition Performance Assessment Panel.
            (2) The Defense Science Board Summer Study on 
        Transformation, issued in February 2006.
            (3) The Beyond Goldwater-Nichols Study of the Center for 
        Strategic and International Studies.
            (4) The Quadrennial Defense Review, issued February 6, 2006.

    (c) Recommendations.--Each report submitted under subsection (a) 
shall include such recommendations as the Secretary considers 
appropriate, and implementation plans for the recommendations.
    (d) Termination of Report Requirement.--The requirement to submit 
reports under subsection (a) shall terminate on December 31, 2008.
SEC. 805. ADDITIONAL CERTIFICATION REQUIREMENTS FOR MAJOR DEFENSE 
                        ACQUISITION PROGRAMS BEFORE PROCEEDING TO 
                        MILESTONE B.

    (a) Additional Certification Requirements.--Subsection (a) of 
section 2366a of title 10, United States Code, is amended--
            (1) by redesignating paragraph (7) as paragraph (10);
            (2) by redesignating paragraphs (1) through (6) as 
        paragraphs (2) through (7), respectively;
            (3) by inserting before paragraph (2) (as so redesignated) 
        the following new paragraph (1):
            ``(1) appropriate market research has been conducted prior 
        to technology development to reduce duplication of existing 
        technology and products;'';
            (4) in paragraph (7) (as so redesignated), by striking 
        ``and'' at the end; and
            (5) by inserting after such paragraph (7) the following new 
        paragraphs:
            ``(8) reasonable cost and schedule estimates have been 
        developed to execute the product development and production plan 
        under the program;

[[Page 120 STAT. 2315]]

            ``(9) funding is available to execute the product 
        development and production plan under the program, through the 
        period covered by the future-years defense program submitted 
        during the fiscal year in which the certification is made, 
        consistent with the estimates described in paragraph (8) for the 
        program; and''.

    (b) Waiver for National Security.--Subsection (c) of such section is 
amended by striking ``(5), or (6)'' and inserting ``(5), (6), (7), (8), 
or (9)''.
SEC. 806. ORIGINAL BASELINE ESTIMATE FOR MAJOR DEFENSE ACQUISITION 
                        PROGRAMS.

    Section 2435(d)(1) of title 10, United States Code, is amended by 
inserting after ``with respect to the program under subsection (a)'' the 
following: ``prepared before the program enters system development and 
demonstration, or at program initiation, whichever occurs later''.
SEC. 807. LEAD SYSTEM INTEGRATORS.

    (a) Limitations on Contractors Acting as Lead System Integrators.--
            (1) In general.--Chapter 141 of title 10, United States 
        Code, is amended by adding at the end the following new section:

``Sec. 2410p. Contracts: limitations on lead system integrators

    ``(a) In General.--Except as provided in subsection (b), no entity 
performing lead system integrator functions in the acquisition of a 
major system by the Department of Defense may have any direct financial 
interest in the development or construction of any individual system or 
element of any system of systems.
    ``(b) Exception.--An entity described in subsection (a) may have a 
direct financial interest in the development or construction of an 
individual system or element of a system of systems if--
            ``(1) the Secretary of Defense certifies to the Committees 
        on Armed Services of the Senate and the House of Representatives 
        that--
                    ``(A) the entity was selected by the Department of 
                Defense as a contractor to develop or construct the 
                system or element concerned through the use of 
                competitive procedures; and
                    ``(B) the Department took appropriate steps to 
                prevent any organizational conflict of interest in the 
                selection process; or
            ``(2) the entity was selected by a subcontractor to serve as 
        a lower-tier subcontractor, through a process over which the 
        entity exercised no control.

    ``(c) Construction.--Nothing in this section shall be construed to 
preclude an entity described in subsection (a) from performing work 
necessary to integrate two or more individual systems or elements of a 
system of systems with each other.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 141 of such title is amended by adding at 
        the end the following new item:

``2410p. Contracts: limitations on lead system integrators''.


[[Page 120 STAT. 2316]]


            (3) Effective date.--Section 2410p of title 10, United 
        States Code, as added by paragraph (1), shall apply with respect 
        to contracts entered into after December 31, 2006.

    (b) Update of Regulations on Lead System Integrators.--
Not <<NOTE: Deadline.>> later than December 31, 2006, the Secretary of 
Defense shall update the acquisition regulations of the Department of 
Defense in order to specify fully in such regulations the matters with 
respect to lead system integrators set forth in section 805(b) of the 
National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-
163; 119 Stat. 3372) and the amendments made by subsection (a).

    (c) Additional Report Requirements.--The Secretary of Defense shall 
include in the report required by section 805 of such Act--
            (1) a precise and comprehensive definition of the term 
        ``lead system integrator'', as that term is used in such 
        section; and
            (2) a specification of various types of contracts and fee 
        structures that are appropriate for use by lead system 
        integrators in the production, fielding, and sustainment of 
        complex systems.

              Subtitle B--Acquisition Policy and Management

SEC. 811. TIME-CERTAIN DEVELOPMENT FOR DEPARTMENT OF DEFENSE 
                        INFORMATION TECHNOLOGY BUSINESS SYSTEMS.

    (a) Milestone A Limitation.--The Department of Defense executive or 
entity that is the milestone decision authority for an information 
system described in subsection (c) may not provide Milestone A approval 
for the system unless, as part of the decision process for such 
approval, that authority determines that the system will achieve initial 
operational capability within a specified period of time not exceeding 
five years.
    (b) Initial Operational Capability Limitation.--If an information 
system described in subsection (c), having received Milestone A 
approval, has not achieved initial operational capability within five 
years after the date of such approval, the system shall be deemed to 
have undergone a critical change in program requiring the evaluation and 
report required by section 2445c(d) of title 10, United States Code (as 
added by section 816 of this Act).
    (c) Covered Systems.--An information system described in this 
subsection is any Department of Defense information technology business 
system that is not a national security system, as defined in 3542(b)(2) 
of title 44, United States Code.
    (d) Definitions.--In this section:
            (1) Milestone decision authority.--The term ``milestone 
        decision authority'' has the meaning given that term in 
        Department of Defense Instruction 5000.2, dated May 12, 2003.
            (2) Milestone a.--The term ``Milestone A'' has the meaning 
        given that term in Department of Defense Instruction 5000.2, 
        dated May 12, 2003.

[[Page 120 STAT. 2317]]

SEC. 812. PILOT PROGRAM ON TIME-CERTAIN DEVELOPMENT IN ACQUISITION 
                        OF MAJOR WEAPON SYSTEMS.

    (a) Pilot Program Authorized.--The Secretary of Defense may carry 
out a pilot program on the use of time-certain development in the 
acquisition of major weapon systems.
    (b) Purpose of Pilot Program.--The purpose of the pilot program 
authorized by subsection (a) is to assess the feasibility and 
advisability of utilizing time-certain development in the acquisition of 
major weapon systems in order to deliver new capabilities to the 
warfighter more rapidly through--
            (1) disciplined decision-making;
            (2) emphasis on technological maturity; and
            (3) appropriate trade-offs between--
                    (A) cost and system performance; and
                    (B) program schedule.

    (c) Inclusion of Systems in Pilot Program.--
            (1) In general.--The Secretary of Defense may include a 
        major weapon system in the pilot program only if--
                    (A) the major weapon system meets the criteria under 
                paragraph (2) in accordance with that paragraph; and
                    (B) the Milestone Decision Authority nominates such 
                program to the Secretary of Defense for inclusion in the 
                program.
            (2) Criteria.--For purposes of paragraph (1) a major weapon 
        system meets the criteria under this paragraph only if the 
        Milestone Decision Authority determines, in consultation with 
        the service acquisition executive for the military department 
        carrying out the acquisition program for the system and one or 
        more combatant commanders responsible for fielding the system, 
        that--
                    (A) the certification requirements of section 2366a 
                of title 10, United States Code (as amended by section 
                805 of this Act), have been met, and no waivers have 
                been granted from such requirements;
                    (B) a preliminary design has been reviewed using 
                systems engineering, and the system, as so designed, 
                will meet battlefield needs identified by the relevant 
                combatant commanders after appropriate requirements 
                analysis;
                    (C) a representative model or prototype of the 
                system, or key subsystems, has been demonstrated in a 
                relevant environment, such as a well-simulated 
                operational environment;
                    (D) an independent cost estimate has been conducted 
                and used as the basis for funding requirements for the 
                acquisition program for the system;
                    (E) the budget of the military department 
                responsible for carrying out the acquisition program for 
                the system provides the funding necessary to execute the 
                product development and production plan consistent with 
                the requirements identified pursuant to subparagraph 
                (D);
                    (F) an appropriately qualified program manager has 
                entered into a performance agreement with the Milestone 
                Decision Authority that establishes expected parameters 
                for the cost, schedule, and performance of the 
                acquisition program for the system, consistent with a 
                business case for such acquisition program;

[[Page 120 STAT. 2318]]

                    (G) the service acquisition executive and the 
                program manager have developed a strategy to ensure 
                stability in program management until, at a minimum, the 
                delivery of the initial operational capability under the 
                acquisition program for the system has occurred;
                    (H) the service acquisition executive, the relevant 
                combatant commanders, and the program manager have 
                agreed that no additional requirements that would be 
                inconsistent with the agreed-upon program schedule will 
                be added during the development phase of the acquisition 
                program for the system; and
                    (I) a planned initial operational capability will be 
                delivered to the relevant combatant commanders within a 
                defined period of time as prescribed in regulations by 
                the Secretary of Defense.
            (3) Timing of decision.--The decision whether to include a 
        major weapon system in the pilot program shall be made at the 
        time of milestone approval for the acquisition program for the 
        system.

    (d) Limitation on Number of Weapons Systems in Pilot Program.--The 
number of major weapon systems included in the pilot program at any time 
may not exceed six major weapon systems.
    (e) Limitation on Cost of Weapons Systems in Pilot Program.--The 
Secretary of Defense may include a major weapon system in the pilot 
program only if, at the time a major weapon system is proposed for 
inclusion, the total cost for system design and development of the 
weapon system, as set forth in the cost estimate referred to in 
subsection (c)(2)(D), does not exceed $1,000,000,000 during the period 
covered by the current future-years defense program.
    (f) Special Funding Authority.--
            (1) Authority for reserve account.--Notwithstanding any 
        other provision of law, the Secretary of Defense may establish a 
        special reserve account utilizing funds made available for the 
        major weapon systems included in the pilot program.
            (2) Elements.--The special reserve account may include--
                    (A) funds made available for any major weapon system 
                included in the pilot program to cover termination 
                liability;
                    (B) funds made available for any major weapon system 
                included in the pilot program for award fees that may be 
                earned by contractors; and
                    (C) funds appropriated to the special reserve 
                account.
            (3) Availability of funds.--Funds in the special reserve 
        account may be used, in accordance with guidance issued by the 
        Secretary for purposes of this section, for the following 
        purposes:
                    (A) To cover termination liability for any major 
                weapon system included in the pilot program.
                    (B) To pay award fees that are earned by any 
                contractor for a major weapon system included in the 
                pilot program.
                    (C) To address unforeseen contingencies that could 
                prevent a major weapon system included in the pilot 
                program from meeting critical schedule or performance 
                requirements.

[[Page 120 STAT. 2319]]

            (4) Reports on use of funds.--Not later than 30 days after 
        the use of funds in the special reserve account for the purpose 
        specified in paragraph (3)(C), the Secretary shall submit to the 
        congressional defense committees a report on the use of funds in 
        the account for such purpose. The report shall set forth the 
        purposes for which the funds were used and the reasons for the 
        use of the funds for such purposes.
            (5) Relationship to appropriations.--Nothing in this 
        subsection may be construed as extending any period of time for 
        which appropriated funds are made available.

    (g) Administration of Pilot Program.--The Secretary of Defense shall 
prescribe policies and procedures on the administration of the pilot 
program. Such policies and procedures shall--
            (1) provide for the use of program status reports based on 
        earned value data to track progress on a major weapon system 
        under the pilot program against baseline estimates applicable to 
        such system at each systems engineering technical review point; 
        and
            (2) grant authority, to the maximum extent practicable, to 
        the program manager for the acquisition program for a major 
        weapon system to make key program decisions and trade-offs, 
        subject to management reviews only if cost or schedule 
        deviations exceed the baselines for such acquisition program by 
        10 percent or more.

    (h) Removal of Weapons Systems From Pilot Program.--The Secretary of 
Defense shall remove a major weapon system from the pilot program if--
            (1) the weapon system receives Milestone C approval; or
            (2) the Secretary determines that the weapon system is no 
        longer in substantial compliance with the criteria in subsection 
        (c)(2) or is otherwise no longer appropriate for inclusion in 
        the pilot program.

    (i) Expiration of Authority To Include Additional Systems in Pilot 
Program.--
            (1) Expiration.--A major weapon system may not be included 
        in the pilot program after September 30, 2012.
            (2) Retention of systems.--A major weapon system included in 
        the pilot program before the date specified in paragraph (1) in 
        accordance with the requirements of this section may remain in 
        the pilot program after that date.

    (j) Annual Report.--
            (1) In general.--Not later than one year after including the 
        first major weapon system in the pilot program, and annually 
        thereafter, the Secretary shall submit to the congressional 
        defense committees a report on the pilot program, and the major 
        weapon systems included in the pilot program, during the one-
        year period ending on the date of such report.
            (2) Elements.--Each report under this subsection shall 
        include--
                    (A) a description of progress under the pilot 
                program, and on each major weapon system included in the 
                pilot program, during the period covered by such report;
                    (B) a description of the use of all funds in the 
                special reserve account established under subsection 
                (f); and
                    (C) such other matters as the Secretary considers 
                appropriate.

[[Page 120 STAT. 2320]]

    (k) Major Weapon System Defined.--In this section, the term ``major 
weapon system'' means a weapon system that is treatable as a major 
system under section 2302(5) of title 10, United States Code.
SEC. 813. ESTABLISHMENT OF PANEL ON CONTRACTING INTEGRITY.

    (a) Establishment.--
            (1) In general.--The Secretary of Defense shall establish a 
        panel to be known as the ``Panel on Contracting Integrity''.
            (2) Composition.--The panel shall be composed of the 
        following:
                    (A) A representative of the Under Secretary of 
                Defense for Acquisition, Technology, and Logistics, who 
                shall be the chairman of the panel.
                    (B) A representative of the service acquisition 
                executive of each military department.
                    (C) A representative of the Inspector General of the 
                Department of Defense.
                    (D) A representative of the Inspector General of 
                each military department.
                    (E) A representative of each Defense Agency involved 
                with contracting, as determined appropriate by the 
                Secretary of Defense.
                    (F) Such other representatives as may be determined 
                appropriate by the Secretary of Defense.

    (b) Duties.--In addition to other matters assigned to it by the 
Secretary of Defense, the panel shall--
            (1) conduct reviews of progress made by the Department of 
        Defense to eliminate areas of vulnerability of the defense 
        contracting system that allow fraud, waste, and abuse to occur;
            (2) review the report by the Comptroller General required by 
        section 841 of the National Defense Authorization Act for Fiscal 
        Year 2006 (Public Law 109-163; 119 Stat. 3389), relating to 
        areas of vulnerability of Department of Defense contracts to 
        fraud, waste, and abuse; and
            (3) recommend changes in law, regulations, and policy that 
        it determines necessary to eliminate such areas of 
        vulnerability.

    (c) Meetings.--The panel shall meet as determined necessary by the 
Secretary of Defense but not less often than once every six months.
    (d) Report.--
            (1) Requirement.--The panel shall prepare and submit to the 
        Secretary of Defense and the congressional defense committees an 
        annual report on its activities. The report shall be submitted 
        not later than December 31 of each year and contain a summary of 
        the panel's findings and recommendations for the year covered by 
        the report.
            (2) First report.--The first report under this subsection 
        shall be submitted not later than December 31, 2007, and shall 
        contain an examination of the current structure in the 
        Department of Defense for contracting integrity and 
        recommendations for any changes needed to the system of 
        administrative safeguards and disciplinary actions to ensure 
        accountability at the appropriate level for any violations of 
        appropriate standards of behavior in contracting.

[[Page 120 STAT. 2321]]

            (3) Interim reports.--The panel may submit such interim 
        reports to the congressional defense committees as the Secretary 
        of Defense considers appropriate.

    (e) Termination.--The panel shall terminate on December 31, 2009.
SEC. 814. LINKING OF AWARD AND INCENTIVE FEES TO ACQUISITION 
                        OUTCOMES.

    (a) Guidance on Linking of Award and Incentive Fees to Acquisition 
Outcomes.--Not later <<NOTE: Deadline.>> than 180 days after the date of 
the enactment of this Act, the Secretary of Defense shall issue 
guidance, with detailed implementation instructions (including 
definitions), for the Department of Defense on the appropriate use of 
award and incentive fees in Department of Defense acquisition programs.

    (b) Elements.--The guidance under subsection (a) shall--
            (1) ensure that all new contracts using award fees link such 
        fees to acquisition outcomes (which shall be defined in terms of 
        program cost, schedule, and performance);
            (2) establish standards for identifying the appropriate 
        level of officials authorized to approve the use of award and 
        incentive fees in new contracts;
            (3) provide guidance on the circumstances in which 
        contractor performance may be judged to be ``excellent'' or 
        ``superior'' and the percentage of the available award fee which 
        contractors should be paid for such performance;
            (4) establish standards for determining the percentage of 
        the available award fee, if any, which contractors should be 
        paid for performance that is judged to be ``acceptable'', 
        ``average'', ``expected'', ``good'', or ``satisfactory'';
            (5) ensure that no award fee may be paid for contractor 
        performance that is judged to be below satisfactory performance 
        or performance that does not meet the basic requirements of the 
        contract;
            (6) provide specific direction on the circumstances, if any, 
        in which it may be appropriate to roll over award fees that are 
        not earned in one award fee period to a subsequent award fee 
        period or periods;
            (7) ensure consistent use of guidelines and definitions 
        relating to award and incentive fees across the military 
        departments and Defense Agencies;
            (8) ensure that the Department of Defense--
                    (A) collects relevant data on award and incentive 
                fees paid to contractors; and
                    (B) has mechanisms in place to evaluate such data on 
                a regular basis;
            (9) include performance measures to evaluate the 
        effectiveness of award and incentive fees as a tool for 
        improving contractor performance and achieving desired program 
        outcomes; and
            (10) provide mechanisms for sharing proven incentive 
        strategies for the acquisition of different types of products 
        and services among contracting and program management officials.

    (c) Assessment of Independent Evaluation Mechanisms.--
            (1) In general.--The Secretary of Defense shall select a 
        federally funded research and development center to assess

[[Page 120 STAT. 2322]]

        various mechanisms that could be used to ensure an independent 
        evaluation of contractor performance for the purpose of making 
        determinations applicable to the judging and payment of award 
        fees.
            (2) Considerations.--The assessment conducted pursuant to 
        paragraph (1) shall include consideration of the advantages and 
        disadvantages of a system in which award fees are--
                    (A) held in a separate fund or funds of the 
                Department of Defense; and
                    (B) allocated to a specific program only upon a 
                determination by an independent board, charged with 
                comparing contractor performance across programs, that 
                such fees have been earned by the contractor for such 
                program.
            (3) Report.--The Secretary shall submit to the congressional 
        defense committees a report on the assessment conducted pursuant 
        to paragraph (1) not later than one year after the date of the 
        enactment of this Act.
SEC. 815. REPORT ON DEFENSE INSTRUCTION RELATING TO CONTRACTOR 
                        PERSONNEL AUTHORIZED TO ACCOMPANY ARMED 
                        FORCES.

    (a) Report on Implementation of Instruction.--The Secretary of 
Defense shall submit to Congress a report on the Department of Defense 
instruction described in subsection (c).
    (b) Matters Covered.--The report shall include the following:
            (1) Information on the status of the implementation of the 
        instruction.
            (2) A discussion of how the instruction is being applied 
        to--
                    (A) contracts in existence on the date the 
                instruction was issued, including contracts with respect 
                to which an option to extend is exercised after such 
                date;
                    (B) task orders issued under such contracts after 
                the date referred to in subparagraph (A); and
                    (C) contracts entered into after the date referred 
                to in subparagraph (A).
            (3) An analysis of the effectiveness of the instruction.
            (4) A review of compliance with the instruction.

    (c) Instruction Described.--The instruction referred to in this 
section is Department of Defense Instruction Number 3020.14, titled 
``Contractor Personnel Authorized to Accompany the United States Armed 
Forces''.
SEC. 816. MAJOR AUTOMATED INFORMATION SYSTEM PROGRAMS.

    (a) Reports and Information on Program Cost and Performance.--
            (1) In general.--Part IV of subtitle A of title 10, United 
        States Code, is amended by inserting after chapter 144 the 
        following new chapter:

       ``CHAPTER 144A--MAJOR AUTOMATED INFORMATION SYSTEM PROGRAMS

``Sec.
``2445a. Major automated information system program defined.
``2445b. Cost, schedule, and performance information.
``2445c. Reports: quarterly reports; reports on program changes.
``2445d. Construction with other reporting requirements.


[[Page 120 STAT. 2323]]



``Sec. 2445a. Major automated information system program defined

    ``(a) In General.--In this chapter, the term `major automated 
information system program' means a Department of Defense program for 
the acquisition of an automated information system (either as a product 
or a service) if--
            ``(1) the program is designated by the Secretary of Defense, 
        or a designee of the Secretary, as a major automated information 
        system program; or
            ``(2) the dollar value of the program is estimated to 
        exceed--
                    ``(A) $32,000,000 in fiscal year 2000 constant 
                dollars for all program costs in a single fiscal year;
                    ``(B) $126,000,000 in fiscal year 2000 constant 
                dollars for all program acquisition costs for the entire 
                program; or
                    ``(C) $378,000,000 in fiscal year 2000 constant 
                dollars for the total life-cycle costs of the program 
                (including operation and maintenance costs).

    ``(b) Adjustment.--The Secretary of Defense may adjust the amounts 
(and base fiscal year) set forth in subsection (a) on the basis of 
Department of Defense escalation rates. An adjustment under this 
subsection shall be effective after the Secretary transmits a written 
notification of the adjustment to the congressional defense committees.
    ``(c) Increments.--In the event any increment of a major automated 
information system program separately meets the requirements for 
treatment as a major automated information system program, the 
provisions of this chapter shall apply to such increment as well as to 
the overall major automated information system program of which such 
increment is a part.

``Sec. 2445b. Cost, schedule, and performance information

    ``(a) Submittal of Cost, Schedule, and Performance Information.--
The <<NOTE: Deadline.>> Secretary of Defense shall submit to Congress 
each calendar year, not later than 45 days after the President submits 
to Congress the budget for a fiscal year under section 1105 of title 31, 
budget justification documents regarding cost, schedule, and performance 
for each major automated information system program for which funds are 
requested by the President in the budget.

    ``(b) Elements.--The documents submitted under subsection (a) with 
respect to a major automated information system program shall include 
detailed and summarized information with respect to the automated 
information system to be acquired under the program, and shall 
specifically include each of the following:
            ``(1) The development schedule, including major milestones.
            ``(2) The implementation schedule, including estimates of 
        milestone dates, initial operational capability, and full 
        operational capability.
            ``(3) Estimates of development costs and full life-cycle 
        costs.
            ``(4) A summary of key performance parameters.

    ``(c) Baseline.--(1) For purposes of this chapter, the initial 
submittal to Congress of the documents required by subsection (a) with 
respect to a major automated information system program shall constitute 
the original estimate or information originally submitted on such 
program for purposes of the reports and determinations on program 
changes in section 2445c of this title.

[[Page 120 STAT. 2324]]

    ``(2) An adjustment or revision of the original estimate or 
information originally submitted on a program may be treated as the 
original estimate or information originally submitted on the program if 
the adjustment or revision is the result of a critical change in the 
program covered by section 2445c(d) of this title.
    ``(3) In the event of an adjustment or revision to the original 
estimate or information originally submitted on a program under 
paragraph (2), the Secretary of Defense shall include in the next budget 
justification documents submitted under subsection (a) after such 
adjustment or revision a notification to the congressional defense 
committees of such adjustment or revision, together with the reasons for 
such adjustment or revision.

``Sec. 2445c. Reports: quarterly reports; reports on program changes

    ``(a) Quarterly Reports by Program Managers.--The program manager of 
a major automated information system program shall, on a quarterly 
basis, submit to the senior Department of Defense official responsible 
for the program a written report identifying any variance in the 
projected development schedule, implementation schedule, life-cycle 
costs, or key performance parameters for the major automated information 
system to be acquired under the program from such information as 
originally submitted to Congress under section 2445b of this title.
    ``(b) Senior Officials Responsible for Programs.--For purposes of 
this section, the senior Department of Defense official responsible for 
a major automated information system program is--
            ``(1) in the case of an automated information system to be 
        acquired for a military department, the senior acquisition 
        executive for the military department; or
            ``(2) in the case of any other automated information system 
        to be acquired for the Department of Defense or any component of 
        the Department of Defense, the Under Secretary of Defense for 
        Acquisition, Technology, and Logistics.

    ``(c) Report on Significant Changes in Program.--
            ``(1) In <<NOTE: Notification.>> general.--If, based on a 
        quarterly report submitted by the program manager of a major 
        automated information system program pursuant to subsection (a), 
        the senior Department of Defense official responsible for the 
        program makes a determination described in paragraph (2), the 
        official shall, not later than 45 days after receiving such 
        report, notify the congressional defense committees in writing 
        of such determination.
            ``(2) Covered determination.--A determination described in 
        this paragraph with respect to a major automated information 
        system program is a determination that--
                    ``(A) there has been a schedule change that will 
                cause a delay of more than six months but less than a 
                year in any program schedule milestone or significant 
                event from the schedule originally submitted to Congress 
                under paragraph (1) or (2) of section 2445b(b) of this 
                title;
                    ``(B) the estimated program development cost or full 
                life-cycle cost for the program has increased by at 
                least 15 percent, but less than 25 percent, over the 
                original estimate submitted to Congress under paragraph 
                (3) of section 2445b(b) of this title; or

[[Page 120 STAT. 2325]]

                    ``(C) there has been a significant, adverse change 
                in the expected performance of the major automated 
                information system to be acquired under the program from 
                the parameters originally submitted to Congress under 
                paragraph (4) of section 2445b(b) of this title.

    ``(d) Report on Critical Changes in Program.--
            ``(1) In general.--If, based on a quarterly report submitted 
        by the program manager of a major automated information system 
        program pursuant to subsection (a), the senior Department of 
        Defense official responsible for the program makes a 
        determination described in paragraph (2), the official shall, 
        not later than 60 days after receiving such report--
                    ``(A) carry out an evaluation of the program under 
                subsection (e); and
                    ``(B) submit, through the Secretary of Defense, to 
                the congressional defense committees a report meeting 
                the requirements of subsection (f).
            ``(2) Covered determination.--A determination described in 
        this paragraph with respect to a major automated information 
        system program is a determination that--
                    ``(A) the system failed to achieve initial 
                operational capability within five years of milestone A 
                approval;
                    ``(B) there has been a schedule change that will 
                cause a delay of one year or more in any program 
                schedule milestone or significant event from the 
                schedule originally submitted to Congress under 
                paragraph (1) or (2) of section 2445b(b) of this title;
                    ``(C) the estimated program development cost or full 
                life-cycle cost for the program has increased by 25 
                percent or more over the original estimate submitted to 
                Congress under paragraph (3) of section 2445b(b) of this 
                title; or
                    ``(D) there has been a change in the expected 
                performance of the major automated information system to 
                be acquired under the program that will undermine the 
                ability of the system to perform the functions 
                anticipated at the time information on the program was 
                originally submitted to Congress under section 2445b(b) 
                of this title.

    ``(e) Program Evaluation.--The evaluation of a major automated 
information system program conducted under this subsection for purposes 
of subsection (d)(1)(A) shall include an assessment of--
            ``(1) the projected cost and schedule for completing the 
        program if current requirements are not modified;
            ``(2) the projected cost and schedule for completing the 
        program based on reasonable modification of such requirements; 
        and
            ``(3) the rough order of magnitude of the cost and schedule 
        for any reasonable alternative system or capability.

    ``(f) Report on Critical Program <<NOTE: Certification.>> Changes.--
A report on a major automated information system program conducted under 
this subsection for purposes of subsection (d)(1)(B) shall include a 
written certification (with supporting explanation) stating that--
            ``(1) the automated information system to be acquired under 
        the program is essential to the national security or to the 
        efficient management of the Department of Defense;
            ``(2) there is no alternative to the system which will 
        provide equal or greater capability at less cost;

[[Page 120 STAT. 2326]]

            ``(3) the new estimates of the costs, schedule, and 
        performance parameters with respect to the program and system 
        are reasonable; and
            ``(4) the management structure for the program is adequate 
        to manage and control program costs.

    ``(g) Prohibition on Obligation of Funds.--(1) If the determination 
of a critical change to a program is made by the senior Department 
official responsible for the program under subsection (d)(2) and a 
report is not submitted to Congress within the 60-day period provided by 
subsection (d)(1), appropriated funds may not be obligated for any major 
contract under the program.
    ``(2) <<NOTE: Applicability. Termination date.>> The prohibition on 
the obligation of funds for a program under paragraph (1) shall cease to 
apply on the date on which Congress has received a report in compliance 
with the requirements of subsection (d)(2).

``Sec. 2445d. Construction with other reporting requirements

    ``In the case of a major automated information system program 
covered by this chapter that is also treatable as a major defense 
acquisition program for which reports would be required under chapter 
144 of this title, no reports on the program are required under such 
chapter if the requirements of this chapter with respect to the program 
are met.''.
            (2) Clerical amendments.--The tables of chapters the 
        beginning of subtitle A of such title, and of part IV of 
        subtitle A of such title, are each amended by inserting after 
        the item relating to chapter 144 the following new item:

``144A. Major Automated Information System Programs.............2445a''.

    (b) Report on Reporting Requirements Applicable to Major Automated 
Information System Programs.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report setting forth the reporting 
requirements applicable to major automated information system programs 
as of the date of the report, including a specification of such 
reporting requirements considered by the Secretary to be duplicative or 
redundant.
    (c) Effective Date.--
            (1) In general.--The amendments made by subsection (a) shall 
        take effect on January 1, 2008, and shall apply with respect to 
        any major automated information system program for which amounts 
        are requested in the budget of the President (as submitted to 
        Congress under section 1105 of title 31, United States Code) for 
        a fiscal year after fiscal year 2008, regardless of whether the 
        acquisition of the automated information system to be acquired 
        under the program was initiated before, on, or after January 1, 
        2008.
            (2) Report requirement.--Subsection (b) shall take effect on 
        the date of the enactment of this Act.
SEC. 817. INTERNAL CONTROLS FOR PROCUREMENTS ON BEHALF OF THE 
                        DEPARTMENT OF DEFENSE BY CERTAIN NON-
                        DEFENSE AGENCIES.

    (a) Inspector General Reviews and Determinations.--
            (1) In <<NOTE: Deadline.>> general.--For each covered non-
        defense agency, the Inspector General of the Department of 
        Defense and the Inspector General of such non-defense agency 
        shall, not later than March 15, 2007, jointly--

[[Page 120 STAT. 2327]]

                    (A) review--
                          (i) the procurement policies, procedures, and 
                      internal controls of such non-defense agency that 
                      are applicable to the procurement of property and 
                      services on behalf of the Department by such non-
                      defense agency; and
                          (ii) the administration of those policies, 
                      procedures, and internal controls; and
                    (B) determine in writing whether--
                          (i) such non-defense agency is compliant with 
                      defense procurement requirements;
                          (ii) such non-defense agency is not compliant 
                      with defense procurement requirements, but has a 
                      program or initiative to significantly improve 
                      compliance with defense procurement requirements;
                          (iii) neither of the conclusions stated in 
                      clauses (i) and (ii) is correct in the case of 
                      such non-defense agency; or
                          (iv) such non-defense agency is not compliant 
                      with defense procurement requirements to such an 
                      extent that the interests of the Department of 
                      Defense are at risk in procurements conducted by 
                      such non-defense agency.
            (2) Actions <<NOTE: Deadline.>> following certain 
        determinations.--If the Inspectors General determine under 
        paragraph (1) that a conclusion stated in clause (ii), (iii), or 
        (iv) of subparagraph (B) of that paragraph is correct in the 
        case of a covered non-defense agency, such Inspectors General 
        shall, not later than June 15, 2008, jointly--
                    (A) conduct a second review, as described in 
                subparagraph (A) of that paragraph, regarding such non-
                defense agency's procurement of property or services on 
                behalf of the Department of Defense in fiscal year 2007; 
                and
                    (B) determine in writing whether such non-defense 
                agency is or is not compliant with defense procurement 
                requirements.

    (b) Compliance With Defense Procurement Requirements.--For the 
purposes of this section, a covered non-defense agency is compliant with 
defense procurement requirements if such non-defense agency's 
procurement policies, procedures, and internal controls applicable to 
the procurement of products and services on behalf of the Department of 
Defense, and the manner in which they are administered, are adequate to 
ensure such non-defense agency's compliance with the requirements of 
laws and regulations that apply to procurements of property and services 
made directly by the Department of Defense.
    (c) Memoranda of Understanding Between Inspectors General.--
            (1) In <<NOTE: Deadline.>> general.--Not later than 60 days 
        after the date of the enactment of this Act, the Inspector 
        General of the Department of Defense and the Inspector General 
        of each covered non-defense agency shall enter into a memorandum 
        of understanding with each other to carry out the reviews and 
        make the determinations required by this section.
            (2) Scope of memoranda.--The Inspector General of the 
        Department of Defense and the Inspector General of a covered 
        non-defense agency may by mutual agreement conduct separate

[[Page 120 STAT. 2328]]

        reviews of the procurement of property and services on behalf of 
        the Department of Defense that are conducted by separate 
        business units, or under separate governmentwide acquisition 
        contracts, of such non-defense agency. In any case where such 
        separate reviews are conducted, the Inspectors General shall 
        make separate determinations under paragraph (1) or (2) of 
        subsection (a), as applicable, with respect to each such 
        separate review.

    (d) Limitations <<NOTE: Deadlines.>> on Procurements on Behalf of 
Department of Defense.--
            (1) Limitation during review period.--After March 15, 2007, 
        and before June 16, 2008, no official of the Department of 
        Defense may, except as provided in subsection (e) or (f), order, 
        purchase, or otherwise procure property or services in an amount 
        in excess of $100,000 through a covered non-defense agency for 
        which a determination described in clause (iii) or (iv) of 
        paragraph (1)(B) of subsection (a) has been made under 
        subsection (a).
            (2) Limitation after review period.--After June 15, 2008, no 
        official of the Department of Defense may, except as provided in 
        subsection (e) or (f), order, purchase, or otherwise procure 
        property or services in an amount in excess of $100,000 through 
        a covered non-defense agency that, having been subject to review 
        under this section, has not been determined under this section 
        as being compliant with defense procurement requirements.
            (3) Limitation following failure to reach mou.--Commencing 
        on the date that is 60 days after the date of the enactment of 
        this Act, if a memorandum of understanding between the Inspector 
        General of the Department of Defense and the Inspector General 
        of a covered non-defense agency cannot be attained causing the 
        review required by this section to not be performed, no official 
        of the Department of Defense, except as provided in subsection 
        (e) or (f), may order, purchase or otherwise procure property or 
        services in an amount in excess of $100,000 through such non-
        defense agency.

    (e) Exception From Applicability of Limitations.--
            (1) Exception.--No limitation applies under subsection (d) 
        with respect to the procurement of property and services on 
        behalf of the Department of Defense by a covered non-defense 
        agency during any period that there is in effect a determination 
        of the Under Secretary of Defense for Acquisition, Technology, 
        and Logistics, made in writing, that it is necessary in the 
        interest of the Department of Defense to continue to procure 
        property and services through such non-defense agency.
            (2) Applicability of determination.--A written determination 
        with respect to a covered non-defense agency under paragraph (1) 
        is in effect for the period, not in excess of one year, that the 
        Under Secretary shall specify in the written determination. The 
        Under Secretary may extend from time to time, for up to one year 
        at a time, the period for which the written determination 
        remains in effect.

    (f) Termination of Applicability of Limitations.--Subsection (d) 
shall cease to apply to a covered non-defense agency on the date on 
which the Inspector General of the Department of Defense and the 
Inspector General of such non-defense agency jointly--

[[Page 120 STAT. 2329]]

            (1) determine that such non-defense agency is compliant with 
        defense procurement requirements; and
            (2) <<NOTE: Notification.>> notify the Secretary of Defense 
        of that determination.

    (g) Identification of Procurements Made During a Particular Fiscal 
Year.--For the purposes of subsection (a), a procurement shall be 
treated as being made during a particular fiscal year to the extent that 
funds are obligated by the Department of Defense for that procurement in 
that fiscal year.

    (h) Resolution of Disagreements.--If the Inspector General of the 
Department of Defense and the Inspector General of a covered non-defense 
agency are unable to agree on a joint determination under subsection (a) 
or (f), a determination by the Inspector General of the Department of 
Defense under such subsection shall be conclusive for the purposes of 
this section.
    (i) Definitions.--In this section:
            (1) The term ``covered non-defense agency'' means each of 
        the following:
                    (A) The Department of Veterans Affairs.
                    (B) The National Institutes of Health.
            (2) The term ``governmentwide acquisition contract'', with 
        respect to a covered non-defense agency, means a task or 
        delivery order contract that--
                    (A) is entered into by the non-defense agency; and
                    (B) may be used as the contract under which property 
                or services are procured for one or more other 
                departments or agencies of the Federal Government.
SEC. 818. DETERMINATION OF CONTRACT TYPE FOR DEVELOPMENT PROGRAMS.

    (a) Repeal of Superseded Requirements.--Section 807 of the National 
Defense Authorization Act, Fiscal Year 1989 (10 U.S.C. 2304 note) is 
repealed.
    (b) Modification of <<NOTE: Deadline.>> Regulations.--Not later than 
120 days after the date of the enactment of this Act, the Secretary of 
Defense shall modify the regulations of the Department of Defense 
regarding the determination of contract type for development programs.

    (c) Elements.--As modified under subsection (b), the regulations 
shall require the Milestone Decision Authority for a major defense 
acquisition program to select the contract type for a development 
program at the time of a decision on Milestone B approval (or Key 
Decision Point B approval in the case of a space program) that is 
consistent with the level of program risk for the program. The Milestone 
Decision Authority may select--
            (1) a fixed-price type contract (including a fixed price 
        incentive contract); or
            (2) a cost type contract.

    (d) Conditions With Respect to Authorization of Cost Type 
Contract.--As modified under subsection (b), the regulations shall 
provide that the Milestone Decision Authority may authorize the use of a 
cost type contract under subsection (c) for a development program only 
upon a written determination that--
            (1) the program is so complex and technically challenging 
        that it would not be practicable to reduce program risk to a 
        level that would permit the use of a fixed-price type contract; 
        and

[[Page 120 STAT. 2330]]

            (2) the complexity and technical challenge of the program is 
        not the result of a failure to meet the requirements established 
        in section 2366a of title 10, United States Code.

    (e) Justification for Selection of Contract Type.--As modified under 
subsection (b), the regulations shall require the Milestone Decision 
Authority to document the basis for the contract type selected for a 
program. The documentation shall include an explanation of the level of 
program risk for the program and, if the Milestone Decision Authority 
determines that the level of program risk is high, the steps that have 
been taken to reduce program risk and reasons for proceeding with 
Milestone B approval despite the high level of program risk.
SEC. 819. THREE-YEAR EXTENSION OF REQUIREMENT FOR REPORTS ON 
                        COMMERCIAL PRICE TREND ANALYSES OF THE 
                        DEPARTMENT OF DEFENSE.

    Section 803(c)(4) of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (10 U.S.C. 2306a note) is amended 
by striking ``2006'' and inserting ``2009''.
SEC. 820. GOVERNMENT PERFORMANCE OF CRITICAL ACQUISITION 
                        FUNCTIONS.

    (a) Goal.--It <<NOTE: Deadline.>> shall be the goal of the 
Department of Defense and each of the military departments to ensure 
that, within five years after the date of the enactment of this Act, for 
each major defense acquisition program and each major automated 
information system program, each of the following positions is performed 
by a properly qualified member of the Armed Forces or full-time employee 
of the Department of Defense:
            (1) Program manager.
            (2) Deputy program manager.
            (3) Chief engineer.
            (4) Systems engineer.
            (5) Cost estimator.

    (b) Plan of <<NOTE: Deadline.>> Action.--Not later than six months 
after the date of enactment of this Act, the Secretary of Defense shall 
develop and begin implementation of a plan of action for recruiting, 
training, and ensuring appropriate career development of military and 
civilian personnel to achieve the objective established in subsection 
(a). The plan of action required by this subsection shall include 
specific, measurable interim milestones.

    (c) Reports.--Not later than one year after the date of the 
enactment of this Act and each year thereafter, the Secretary of Defense 
shall submit to the congressional defense committees a report on the 
progress made by the Department of Defense and the military departments 
toward achieving the goal established in subsection (a).
    (d) Definitions.--In this section:
            (1) The term ``major defense acquisition program'' has the 
        meaning given such term in section 2430(a) of title 10, United 
        States Code.
            (2) The term ``major automated information system program'' 
        has the meaning given such term in section 2445a(a) of title 10, 
        United States Code (as added by section 816 of this Act).

[[Page 120 STAT. 2331]]

 Subtitle C--Amendments to General Contracting Authorities, Procedures, 
                             and Limitations

SEC. 831. ONE-YEAR EXTENSION OF SPECIAL TEMPORARY CONTRACT 
                        CLOSEOUT AUTHORITY.

    Section 804(d) of the National Defense Authorization Act for Fiscal 
Year 2004 (Public Law 108-136; 117 Stat. 1542) is amended by striking 
``September 30, 2006'' and inserting ``September 30, 2007''.
SEC. 832. LIMITATION ON CONTRACTS FOR THE ACQUISITION OF CERTAIN 
                        SERVICES.

    (a) Limitation.--Except as provided in subsection (b), the Secretary 
of Defense may not enter into a service contract to acquire a military 
flight simulator.
    (b) Waiver.--The Secretary of Defense may waive subsection (a) with 
respect to a contract if the Secretary--
            (1) determines that a waiver is necessary for national 
        security purposes; and
            (2) provides to the congressional defense committees an 
        economic analysis as described in subsection (c) at least 30 
        days before the waiver takes effect.

    (c) Economic Analysis.--The economic analysis provided under 
subsection (b) shall include, at a minimum, the following:
            (1) A clear explanation of the need for the contract.
            (2) An examination of at least two alternatives for 
        fulfilling the requirements that the contract is meant to 
        fulfill, including the following with respect to each 
        alternative:
                    (A) A rationale for including the alternative.
                    (B) A cost estimate of the alternative and an 
                analysis of the quality of each cost estimate.
                    (C) A discussion of the benefits to be realized from 
                the alternative.
                    (D) A best value determination of each alternative 
                and a detailed explanation of the life-cycle cost 
                calculations used in the determination.

    (d) Definitions.--In this section:
            (1) The term ``military flight simulator'' means any major 
        system to simulate the form, fit, and function of a military 
        aircraft that has no commonly available commercial variant.
            (2) The term ``service contract'' means any contract entered 
        into by the Department of Defense the principal purpose of which 
        is to furnish services in the United States through the use of 
        service employees.
            (3) The term ``service employees'' has the meaning provided 
        in section 8(b) of the Service Contract Act of 1965 (41 U.S.C. 
        357(b)).

[[Page 120 STAT. 2332]]

SEC. 833. USE OF FEDERAL SUPPLY SCHEDULES BY STATE AND LOCAL 
                        GOVERNMENTS FOR GOODS AND SERVICES FOR 
                        RECOVERY FROM NATURAL DISASTERS, 
                        TERRORISM, OR NUCLEAR, BIOLOGICAL, 
                        CHEMICAL, OR RADIOLOGICAL ATTACK.

    (a) Authority To Use Supply Schedules for Certain Goods and 
Services.--Section 502 of title 40, United States Code, is amended by 
adding at the end the following new subsection:
    ``(d) Use of Supply Schedules for Certain Goods and Services.--
            ``(1) In general.--The Administrator may provide for the use 
        by State or local governments of Federal supply schedules of the 
        General Services Administration for goods or services that are 
        to be used to facilitate recovery from a major disaster declared 
        by the President under the Robert T. Stafford Disaster Relief 
        and Emergency Assistance Act (42 U.S.C. 5121 et seq.) or to 
        facilitate recovery from terrorism or nuclear, biological, 
        chemical, or radiological attack.
            ``(2) Determination by secretary of homeland security.--The 
        Secretary of Homeland Security shall determine which goods and 
        services qualify as goods and services described in paragraph 
        (1) before the Administrator provides for the use of the Federal 
        supply schedule relating to such goods and services.
            ``(3) Voluntary use.--In the case of the use by a State or 
        local government of a Federal supply schedule pursuant to 
        paragraph (1), participation by a firm that sells to the Federal 
        Government through the supply schedule shall be voluntary with 
        respect to a sale to the State or local government through such 
        supply schedule.
            ``(4) Definitions.--The definitions in subsection (c)(3) 
        shall apply for purposes of this subsection.''.

    (b) Procedures.--Not <<NOTE: Deadline.>> later than 30 days after 
the date of the enactment of this Act, the Administrator of General 
Services shall establish procedures to implement subsection (d) of 
section 502 of title 40, United States Code (as added by subsection 
(a)).
SEC. 834. WAIVERS TO EXTEND TASK ORDER CONTRACTS FOR ADVISORY AND 
                        ASSISTANCE SERVICES.

     (a) Defense Contracts.--
            (1) Waiver authority.--The head of an agency may issue a 
        waiver to extend a task order contract entered into under 
        section 2304b of title 10, United States Code, for a period not 
        exceeding 10 years, through five one-year options, if the head 
        of the agency determines in writing--
                    (A) that the contract provides engineering or 
                technical services of such a unique and substantial 
                technical nature that award of a new contract would be 
                harmful to the continuity of the program for which the 
                services are performed;
                    (B) that award of a new contract would create a 
                large disruption in services provided to the Department 
                of Defense; and
                    (C) that the Department of Defense would, through 
                award of a new contract, endure program risk during 
                critical program stages due to loss of program corporate 
                knowledge of ongoing program activities.

[[Page 120 STAT. 2333]]

            (2) Delegation.--The authority of the head of an agency 
        under paragraph (1) may be delegated only to the senior 
        procurement executive of the agency.
            (3) Report.--Not later than April 1, 2007, the Secretary of 
        Defense shall submit to the Committees on Armed Services of the 
        Senate and the House of Representatives a report on advisory and 
        assistance services. The report shall include the following 
        information:
                    (A) The methods used by the Department of Defense to 
                identify a contract as an advisory and assistance 
                services contract, as defined in section 2304b of title 
                10, United States Code.
                    (B) The number of such contracts awarded by the 
                Department during the five-year period preceding the 
                date of the enactment of this Act.
                    (C) The average annual expenditures by the 
                Department for such contracts.
                    (D) The average length of such contracts.
                    (E) The number of such contracts recompeted and 
                awarded to the previous award winner.
            (4) Prohibition on use of authority by department of defense 
        if report not submitted.--The head of an agency may not issue a 
        waiver under paragraph (1) if the report required by paragraph 
        (3) is not submitted by the date set forth in that paragraph.

    (b) Civilian Agency Contracts.--
            (1) Waiver authority.--The head of an executive agency may 
        issue a waiver to extend a task order contract entered into 
        under section 303I of the Federal Property and Administrative 
        Services Act of 1949 (41 U.S.C. 253i) for a period not exceeding 
        10 years, through five one-year options, if the head of the 
        agency determines in writing--
                    (A) that the contract provides engineering or 
                technical services of such a unique and substantial 
                technical nature that award of a new contract would be 
                harmful to the continuity of the program for which the 
                services are performed;
                    (B) that award of a new contract would create a 
                large disruption in services provided to the executive 
                agency; and
                    (C) that the executive agency would, through award 
                of a new contract, endure program risk during critical 
                program stages due to loss of program corporate 
                knowledge of ongoing program activities.
            (2) Delegation.--The authority of the head of an executive 
        agency under paragraph (1) may be delegated only to the Chief 
        Acquisition Officer of the agency (or the senior procurement 
        executive in the case of an agency for which a Chief Acquisition 
        Officer has not been appointed or designated under section 16(a) 
        of the Office of Federal Procurement Policy Act (41 U.S.C. 
        414(a))).
            (3) Report.--Not later than April 1, 2007, the Administrator 
        for Federal Procurement Policy shall submit to the Committee on 
        Homeland Security and Government