Text: S.2766 — 109th Congress (2005-2006)All Information (Except Text)

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Engrossed in Senate (06/22/2006)

 
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2766 Engrossed in Senate (ES)]


  
  
  
  
  
  
  
  
  
  
  
  
  
  
109th CONGRESS
  2d Session
                                S. 2766

_______________________________________________________________________

                                 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 
personnel strengths for such fiscal year for the Armed Forces, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress 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 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 Director 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, has made unique and lasting contributions to the 
        national security of the United States.
            (11) It is altogether fitting and proper that his Act, the 
        last annual authorization Act for the national defense that 
        Senator Warner manages 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.
            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. Limitation on availability of funds for the Joint Network 
                            Node.
Sec. 112. Comptroller General report on the contract for the Future 
                            Combat Systems program.
Sec. 113. Reports on Army Modularity Initiative.
Sec. 114. Replacement equipment.
                       Subtitle C--Navy Programs

Sec. 121. CVN-21 class aircraft carrier procurement.
Sec. 122. Construction of first two vessels under the next-generation 
                            destroyer program.
Sec. 123. Modification of limitation on total cost of procurement of 
                            CVN-77 aircraft carrier.
                     Subtitle D--Air Force Programs

Sec. 141. Procurement of Joint Primary Aircraft Training System 
                            aircraft after fiscal year 2006.
Sec. 142. Prohibition on retirement of C-130E/H tactical airlift 
                            aircraft.
Sec. 143. Limitation on retirement of KC-135E aircraft.
Sec. 144. Limitation on retirement of B-52H bomber aircraft.
Sec. 145. Retirement of B-52H bomber aircraft.
Sec. 146. Funding for procurement of F-22A fighter aircraft.
Sec. 147. Multiyear procurement of F-119 engines for F-22A fighter 
                            aircraft.
Sec. 148. Multi-spectral imaging capabilities.
Sec. 149. Minuteman III Intercontinental Ballistic Missiles.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for science and technology.
Sec. 203. Amount for development and validation of warfighter rapid 
                            awareness processing technology.
    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Independent estimate of costs of the Future Combat Systems.
Sec. 212. Funding of defense science and technology programs.
Sec. 213. Hypersonics development.
Sec. 214. Trident sea-launched ballistic missiles.
Sec. 215. Arrow ballistic missile defense system.
Sec. 216. High Energy Laser Low Aspect Target Tracking.
Sec. 217. Advanced Aluminum Aerostructures Initiative.
Sec. 218. Legged mobility robotic research.
Sec. 219. Wideband Digital Airborne Electronic Sensing Array.
Sec. 220. Science and technology.
                  Subtitle C--Missile Defense Programs

Sec. 231. Availability of research, development, test, and evaluation 
                            funds for fielding ballistic missile 
                            defense capabilities.
Sec. 232. Policy of the United States on priorities in the development, 
                            testing, and fielding of missile defense 
                            capabilities.
Sec. 233. One-year extension of Comptroller General assessments of 
                            ballistic missile defense programs.
Sec. 234. Submittal of plans for test and evaluation of the operational 
                            capability of the ballistic missile defense 
                            system.
Sec. 235. Annual reports on transition of ballistic missile defense 
                            programs to the military departments.
Sec. 236. Testing and operations for missile defense.
                       Subtitle D--Other Matters

Sec. 251. Extension of requirement for Global Research Watch Program.
Sec. 252. Expansion and extension of authority to award prizes for 
                            advanced technology achievements.
Sec. 253. Policies and practices on test and evaluation to address 
                            emerging acquisition approaches.
Sec. 254. Development of the propulsion system for the Joint Strike 
                            Fighter.
Sec. 255. Independent cost analyses for Joint Strike Fighter engine 
                            program.
Sec. 256. Sense of Senate on technology sharing of Joint Strike Fighter 
                            technology.
Sec. 257. Report on biometrics programs of the Department of Defense.
                  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--Program Requirements, Restrictions, and Limitations

Sec. 311. Limitation on availability of funds for the Army Logistics 
                            Modernization Program.
Sec. 312. Availability of funds for exhibits for the national museums 
                            of the Armed Forces.
Sec. 313. Limitation on financial management improvement and audit 
                            initiatives within the Department of 
                            Defense.
Sec. 314. Limitation on availability of operation and maintenance funds 
                            for the management headquarters of the 
                            Defense Information Systems Agency.
Sec. 315. Expansion of Junior Reserve Officers' Training Corps program.
Sec. 316. Infantry Combat Equipment.
Sec. 317. Individual First Aid Kit.
Sec. 318. Reading for the Blind and Dyslexic program of the Department 
                            of Defense.
Sec. 319. Military training infrastructure improvements at Virginia 
                            Military Institute.
Sec. 320. Environmental documentation for beddown of F-22A aircraft at 
                            Holloman Air Force Base, New Mexico.
                  Subtitle C--Environmental Provisions

Sec. 331. Response plan for remediation of military munitions.
Sec. 332. Extension of authority to grant exemptions to certain 
                            requirements.
Sec. 333. Research on effects of ocean disposal of munitions.
Sec. 334. Clarification of multi-year authority to use base closure 
                            funds to fund cooperative agreements under 
                            Environmental Restoration Program.
Sec. 335. Reimbursement of Environmental Protection Agency for certain 
                            costs in connection with Moses Lake 
                            Wellfield Superfund Site, Moses Lake, 
                            Washington.
                          Subtitle D--Reports

Sec. 351. Comptroller General report on readiness of the ground forces 
                            of the Army and the Marine Corps.
Sec. 352. National Academy of Sciences study on human exposure to 
                            contaminated drinking water at Camp 
                            Lejeune, North Carolina.
Sec. 353. Report on aerial training airspace requirements of the 
                            Department of Defense.
Sec. 354. Report on actions to reduce Department of Defense consumption 
                            of petroleum-based fuel.
Sec. 355. Reports on withdrawal or diversion of equipment from reserve 
                            units for support of reserve units being 
                            mobilized and other units.
Sec. 356. Plan to replace equipment withdrawn or diverted from the 
                            reserve components of the Armed Forces for 
                            Operation Iraqi Freedom or Operation 
                            Enduring Freedom.
Sec. 357. Plan to replace equipment withdrawn or diverted from the 
                            reserve components of the Armed Forces for 
                            Operation Iraqi Freedom or Operation 
                            Enduring Freedom.
Sec. 358. Report on vehicle-based active protection systems for certain 
                            battlefield threats.
Sec. 359. Report on high altitude aviation training site, Eagle County, 
                            Colorado.
Sec. 360. Report on Air Force safety requirements for Air Force flight 
                            training operations at Pueblo Memorial 
                            Airport, Colorado.
Sec. 360A. Report on use of alternative fuels by the Department of 
                            Defense.
                 Subtitle E--Workplace and Depot Issues

Sec. 361. Minimum capital investment levels for public depots serviced 
                            by working capital funds.
Sec. 362. Permanent exclusion of certain contract expenditures from 
                            percentage limitation on the performance of 
                            depot-level maintenance.
Sec. 363. Additional exception to prohibition on contractor performance 
                            of firefighting functions.
Sec. 364. Temporary security guard services for certain work caused by 
                            realignment of military installations under 
                            the base closure laws.
                       Subtitle F--Other Matters

Sec. 371. Recycling of military munitions.
Sec. 372. Incentives clauses in chemical demilitarization contracts.
Sec. 373. Extension of Department of Defense telecommunications benefit 
                            program.
Sec. 374. Extension of availability of funds for commemoration of 
                            success of the Armed Forces in Operation 
                            Enduring Freedom and Operation Iraqi 
                            Freedom.
Sec. 375. Energy efficiency in weapons platforms.
Sec. 376. Chemical demilitarization program contracting authority.
Sec. 377. Utilization of fuel cells as back-up power systems in 
                            Department of Defense operations.
Sec. 378. Prepositioning of Department of Defense assets to improve 
                            support to civilian authorities.
Sec. 379. Recovery and availability to corporation for the promotion of 
                            rifle practice and firearms safety of 
                            certain firearms, ammunition, and parts.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Repeal of requirement for permanent end strength levels to 
                            support two major regional contingencies.
                       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 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. 503. Extension of age limits for active-duty general and flag 
                            officers.
Sec. 504. Modification of authorities on senior members of the Judge 
                            Advocate General's Corps.
Sec. 505. Requirement for significant joint experience for officers 
                            appointed as Surgeon General of the Army, 
                            Navy, and Air Force.
Sec. 506. Grade and exclusion from active-duty general and flag officer 
                            distribution and strength limitations of 
                            officer serving as Attending Physician to 
                            the Congress.
Sec. 507. Discretionary separation and retirement of chief warrant 
                            officers, W-4, twice failing selection for 
                            promotion.
Sec. 508. Increased mandatory retirement ages for reserve officers.
Sec. 509. Modification of qualifications for leadership of the Naval 
                            Postgraduate School.
                   Part II--Officer Promotion Policy

Sec. 515. Promotions.
Sec. 516. Consideration of adverse information by promotion selection 
                            boards in recommendations on officers to be 
                            promoted.
Sec. 517. Expanded authority for removal from reports of selection 
                            boards of officers recommended for 
                            promotion to grades below general and flag 
                            grades.
Sec. 518. Clarification of nondisclosure requirements applicable to 
                            promotion selection board proceedings.
Sec. 519. Special selection board authorities.
Sec. 520. Removal from promotion lists of officers returned to the 
                            President by the Senate.
Sec. 521. Report on joint officer promotion boards.
            Part III--Joint Officer Management Requirements

Sec. 526. Modification and enhancement of general authorities on 
                            management of joint qualified officers.
Sec. 527. Modification of promotion policy objectives for joint 
                            officers.
Sec. 528. Applicability of joint duty assignment requirements limited 
                            to graduates of National Defense University 
                            schools.
Sec. 529. Modification of definitions relating to jointness.
Sec. 530. Condition on appointment of commissioned officers to position 
                            of Director of National Intelligence or 
                            Director of the Central Intelligence 
                            Agency.
            Subtitle B--Reserve Component Personnel Matters

Sec. 531. Enhanced flexibility in the management of reserve component 
                            personnel.
Sec. 532. Expansion of activities authorized for Reserves under Weapons 
                            of Mass Destruction Civil Support Teams.
Sec. 533. Modification of authorities relating to the Commission on the 
                            National Guard and Reserves.
Sec. 534. Pilot program on reintegration of members of the National 
                            Guard into civilian life after deployment.
            Subtitle C--Military Justice and Related Matters

Sec. 551. Applicability of Uniform Code of Military Justice to members 
                            of the Armed Forces ordered to active 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 D--Education and Training Matters

Sec. 561. Detail of commissioned officers as students at medical 
                            schools.
Sec. 562. Expansion of eligibility to provide Junior Reserve Officers' 
                            Training Corps instruction.
Sec. 563. Increase in maximum amount of repayment under education loan 
                            repayment for officers in specified health 
                            professions.
Sec. 564. Increase in benefits under Health Professions Scholarship and 
                            Financial Assistance program.
Sec. 565. Report on Health Professions Scholarship and Financial 
                            Assistance program.
Sec. 566. Expansion of instruction available at the Naval Postgraduate 
                            School for enlisted members of the Armed 
                            Forces.
Sec. 567. Modification of actions to address sexual harassment and 
                            sexual violence at the service academies.
Sec. 568. Department of Defense policy on service academy and ROTC 
                            graduates seeking to participate in 
                            professional sports before completion of 
                            their active-duty service obligations.
Sec. 569. Review of legal status of Junior ROTC program.
Sec. 570. Junior Reserve Officers' Training Corps instructor 
                            qualifications.
Sec. 570A. Modification of time limit for use of entitlement to 
                            educational assistance for reserve 
                            component members supporting contingency 
                            operations and other operations.
            Subtitle E--Defense Dependents Education Matters

Sec. 571. Funding for assistance to local educational agencies that 
                            benefit dependents of members of the Armed 
                            Forces and Department of Defense civilian 
                            employees.
Sec. 572. Impact aid for children with severe disabilities.
Sec. 573. Plan to assist local educational agencies experiencing growth 
                            in enrollment due to force structure 
                            changes, relocation of military units, or 
                            BRAC.
Sec. 574. Pilot program on parent education to promote early childhood 
                            education for dependent children affected 
                            by military deployment or relocation of 
                            military units.
                       Subtitle F--Other Matters

Sec. 581. Administration of oaths.
Sec. 582. Military ID cards for retiree dependents who are permanently 
                            disabled.
Sec. 583. Military voting matters.
Sec. 584. Presentation of Medal of Honor Flag to primary next of kin of 
                            Medal of Honor recipients.
Sec. 585. Modification of effective period of authority to present 
                            recognition items for recruitment and 
                            retention purposes.
Sec. 586. Military Severely Injured Center.
Sec. 587. Sense of Senate on notice to Congress of recognition of 
                            members of the Armed Forces for 
                            extraordinary acts of bravery, heroism, and 
                            achievement.
Sec. 588. Report on provision of electronic copy of military records on 
                            discharge or release of members from the 
                            Armed Forces.
Sec. 589. Purple Heart award eligibility.
Sec. 590. Comprehensive review on procedures of the Department of 
                            Defense on Mortuary Affairs.
Sec. 591. Report on omission of social security numbers on military 
                            identification cards.
Sec. 592. Funeral ceremonies for veterans.
          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.
Sec. 603. Clarification of effective date of prohibition on 
                            compensation for correspondence courses.
Sec. 604. One-year extension of prohibition against requiring certain 
                            injured members to pay for meals provided 
                            by military treatment facilities.
Sec. 605. Additional housing allowance for Reserves on active duty in 
                            support of a contingency operation.
Sec. 606. Extension of temporary continuation of housing allowance for 
                            dependents of members dying on active duty 
                            to spouses who are members of the uniformed 
                            services.
           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 
                            certain 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. Increase in special pay for Selected Reserve health care 
                            professionals in critically short wartime 
                            specialties.
Sec. 616. Expansion and enhancement of accession bonus authorities for 
                            certain officers in health care 
                            specialities.
Sec. 617. Increase in nuclear career accession bonus for nuclear-
                            qualified officers.
Sec. 618. Modification of certain authorities applicable to the 
                            targeted shaping of the Armed Forces.
Sec. 619. Extension of pilot program on contributions to Thrift Savings 
                            Plan for initial enlistees in the Army.
Sec. 620. Accession bonus for members of the Armed Forces appointed as 
                            commissioned officers after completing 
                            officer candidate school.
Sec. 621. Enhancement of bonus to encourage members of the Army to 
                            refer other persons for enlistment in the 
                            Army.
            Subtitle C--Travel and Transportation Allowances

Sec. 631. Expansion of payment of replacement value of personal 
                            property damaged during transport at 
                            government expense.
             Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Modification of Department of Defense contributions to 
                            Military Retirement Fund and government 
                            contributions to Medicare-Eligible Retiree 
                            Health Care Fund.
Sec. 642. Repeal of requirement of reduction of SBP survivor annuities 
                            by dependency and indemnity compensation.
Sec. 643. Effective date of paid-up coverage under Survivor Benefit 
                            Plan.
Sec. 644. Expansion of conditions for direct payment of divisible 
                            retired pay.
Sec. 645. Authority for cost of living adjustments of retired pay 
                            treated as divisible property.
Sec. 646. Notice and copy to members of court orders on payment of 
                            retired pay.
Sec. 647. Retention of assistive technology and devices by certain 
                            members of the Armed Forces after 
                            separation from service.
Sec. 648. Renaming of death gratuity payable for deaths of members of 
                            the Armed Forces as fallen hero 
                            compensation.
Sec. 649. Effective date of termination of phase-in of concurrent 
                            receipt for veterans with service-connected 
                            disabilities rated as total by virtue of 
                            unemployability.
Sec. 650. Determination of retired pay base of general and flag 
                            officers based on rates of basic pay 
                            provided by law.
Sec. 651. Inapplicability of retired pay multiplier maximum percentage 
                            to service of members of the Armed Forces 
                            in excess of 30 years.
Sec. 652. Modification of eligibility for commencement of authority for 
                            optional annuities for dependents under the 
                            survivor benefit plan.
Sec. 653. Commencement of receipt of non-regular service retired pay by 
                            members of the Ready Reserve on active 
                            Federal status or active duty for 
                            significant periods.
                       Subtitle E--Other Matters

Sec. 661. Audit of pay accounts of members of the Army evacuated from a 
                            combat zone for inpatient care.
Sec. 662. Pilot Program on Troops to Nurse Teachers.
Sec. 663. Expansion and enhancement of authority to remit or cancel 
                            indebtedness of members of the Armed 
                            Forces.
Sec. 664. Exception for notice to consumer reporting agencies regarding 
                            debts or erroneous payments pending a 
                            decision to waive, remit, or cancel.
Sec. 665. Enhancement of authority to waive claims for overpayment of 
                            pay and allowances.
Sec. 666. Terms of consumer credit extended to servicemember or 
                            servicemember's dependent.
Sec. 667. Joint family support assistance program.
Sec. 668. Improvement of management of Armed Forces Retirement Home.
Subtitle F--Transition Assistance for Members of the National Guard and 
    Reserve Returning From Deployment in Operation Iraqi Freedom or 
                       Operation Enduring Freedom

Sec. 681. Short title.
Sec. 682. Special working group on transition to civilian employment of 
                            members of the National Guard and Reserve 
                            returning from deployment in Operation 
                            Iraqi Freedom and Operation Enduring 
                            Freedom.
Sec. 683. Office for employers and employment assistance organizations.
Sec. 684. Additional responsibilities of Department of Defense task 
                            force on mental health relating to mental 
                            health of members of the National Guard and 
                            Reserve deployed in Operation Iraqi Freedom 
                            and Operation Enduring Freedom.
Sec. 685. Grants on assistance in community-based settings for members 
                            of the National Guard and Reserve and their 
                            families after deployment in Operation 
                            Iraqi Freedom and Operation Enduring 
                            Freedom.
Sec. 686. Longitudinal study on traumatic brain injury incurred by 
                            members of the Armed Forces in Operation 
                            Iraqi Freedom and Operation Enduring 
                            Freedom.
Sec. 687. Training curricula for family caregivers on care and 
                            assistance for members and former members 
                            of the Armed Forces with traumatic brain 
                            injury incurred in Operation Iraqi Freedom 
                            and Operation Enduring Freedom.
                         TITLE VII--HEALTH CARE

                      Subtitle A--Benefits Matters

Sec. 701. Improved procedures for cancer screening for women.
Sec. 702. National mail-order pharmacy program.
Sec. 703. Availability under TRICARE of anesthesia for children in 
                            connection with dental procedures for which 
                            dental anesthesia is inappropriate.
Sec. 704. TRICARE coverage for forensic examinations following sexual 
                            assaults and domestic violence. 
Sec. 705. Prohibition on increase in fiscal year 2007 in enrollment 
                            fees for coverage under TRICARE Prime.
Sec. 706. Limitation on fiscal year 2007 increase in premiums for 
                            coverage under TRICARE of members of 
                            reserve components who commit to continued 
                            service in Selected Reserve after release 
                            from active duty.
Sec. 707. Temporary prohibition on increase in copayments under retail 
                            pharmacy system of pharmacy benefits 
                            program.
Sec. 708. Expansion of eligibility of members of the Selected Reserve 
                            for coverage under TRICARE.
           Subtitle B--Planning, Programming, and Management

Sec. 721. Treatment of TRICARE Retail Pharmacy Network under Federal 
                            procurement of pharmaceuticals.
Sec. 722. Relationship between the TRICARE program and employer-
                            sponsored group health care plans.
Sec. 723. Enrollment in the TRICARE program.
Sec. 724. Incentive payments for the provision of services under the 
                            TRICARE program in medically underserved 
                            areas.
Sec. 725. Standardization of claims processing under TRICARE program 
                            and Medicare program.
Sec. 726. Requirements for support of military treatment facilities by 
                            civilian contractors under TRICARE.
Sec. 727. Uniform standards for access to health care services for 
                            wounded or injured servicemembers.
Sec. 728. Disease and chronic care management.
Sec. 729. Post-deployment health assessments for members of the Armed 
                            Forces returning from deployment in support 
                            of a contingency operation.
Sec. 730. Mental Health Self-Assessment Program.
Sec. 731. Additional authorized option periods for extension of current 
                            contracts under TRICARE.
Sec. 732. Military vaccination matters.
Sec. 733. Enhanced mental health screening and services for members of 
                            the Armed Forces.
Sec. 734. Education, training, and supervision of personnel providing 
                            special education services under extended 
                            benefits under TRICARE.
                    Subtitle C--Studies and Reports

Sec. 741. Pilot projects on early diagnosis and treatment of Post 
                            Traumatic Stress Disorder and other mental 
                            health conditions.
Sec. 742. Annual reports on certain medical malpractice cases.
Sec. 743. Comptroller General study on Department of Defense pharmacy 
                            benefits program.
Sec. 744. Comptroller General audits of Department of Defense health 
                            care costs and cost-saving measures.
Sec. 745. Review of Department of Defense medical quality improvement 
                            program.
Sec. 746. Study of health effects of exposure to depleted uranium.
                       Subtitle D--Other Matters

Sec. 761. Extension of limitation on conversion of military medical and 
                            dental positions to civilian medical and 
                            dental positions.
Sec. 762. Transfer of custody of the Air Force health study assets to 
                            Medical Follow-Up Agency.
Sec. 763. Sense of Senate on the Transformational Medical Technology 
                            Initiative of the Department of Defense.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

             Subtitle A--Acquisition Policy and Management

Sec. 801. Additional certification requirements for major defense 
                            acquisition programs.
Sec. 802. Extension and enhancement of Defense Acquisition Challenge 
                            Program.
Sec. 803. Baseline description and unit cost reports for major defense 
                            acquisition programs.
Sec. 804. Major automated information system programs.
Sec. 805. Adjustment of original baseline estimate for major defense 
                            acquisition programs experiencing cost 
                            growth resulting from damage caused by 
                            Hurricanes Katrina, Rita, and Wilma.
Sec. 806. Internal controls for procurements on behalf of the 
                            Department of Defense by certain non-
                            defense agencies.
Sec. 807. Regulations on use of fixed-price contracts in development 
                            programs.
Sec. 808. Availability of funds for performance-based logistics 
                            contracts for weapon systems logistics 
                            support.
Sec. 809. Quality control in procurement of ship critical safety items 
                            and related services.
Sec. 810. Three-year extension of requirement for reports on commercial 
                            price trend analyses of the Department of 
                            Defense.
Sec. 811. Pilot program on time-certain development in acquisition of 
                            major weapon systems.
Sec. 812. Government performance of critical acquisition functions.
              Subtitle B--Defense Industrial Base Matters

Sec. 821. Removal of hand and measuring tools from certain 
                            requirements.
Sec. 822. Applicability of certain requirements regarding specialty 
                            metals.
Sec. 823. Waiver authority for domestic source or content requirements.
Sec. 824. Repeal of requirement for identification of essential 
                            military items and military system 
                            essential item breakout list.
Sec. 825. Consistency with United States obligations under trade 
                            agreements.
                 Subtitle C--Defense Contractor Matters

Sec. 841. Requirements for defense contractors relating to certain 
                            former Department of Defense officials.
Sec. 842. Lead systems integrators.
Sec. 843. Linking of award and incentive fees to acquisition outcomes.
Sec. 844. Prohibition on excessive pass-through charges.
Sec. 845. Report on Department of Defense contracting with contractors 
                            or subcontractors employing members of the 
                            Selective Reserve.
                  Subtitle D--Program Manager Matters

Sec. 861. Program manager empowerment and accountability.
Sec. 862. Tenure and accountability of program managers for program 
                            development periods.
Sec. 863. Tenure and accountability of program managers for program 
                            execution periods.
Sec. 864. Department of Defense plan for contingency program 
                            management.
Sec. 865. Comptroller General report.
                       Subtitle E--Other Matters

Sec. 871. Clarification of authority to carry out certain prototype 
                            projects.
Sec. 872. One-year extension of special temporary contract closeout 
                            authority.
Sec. 873. One-year extension of inapplicability of certain laws to 
                            contracting with employers of persons with 
                            disabilities.
Sec. 874. Pilot program on expanded use of mentor-protege authority.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Duties and Functions of Department of Defense Officers and 
                             Organizations

Sec. 901. United States Military Cancer Institute.
Sec. 902. Senior acquisition executive for special operations within 
                            staff of the Assistant Secretary of Defense 
                            for Special Operations and Low Intensity 
                            Conflict.
Sec. 903. United States Marine Band and United States Marine Drum and 
                            Bugle Corps.
Sec. 904. Military deputies to the assistant secretaries of the 
                            military departments for acquisition, 
                            logistics, and technology matters.
                      Subtitle B--Space Activities

Sec. 911. Establishment of operationally responsive space capabilities.
Sec. 912. Extension of authority for pilot program on provision of 
                            space surveillance network services to non-
                            United States Government entities. 
Sec. 913. Independent review and assessment of Department of Defense 
                            organization and management for national 
                            security in space.
                       Subtitle C--Other Matters

Sec. 921. Department of Defense policy on unmanned systems.
Sec. 922. Executive Schedule level IV for Deputy Under Secretary of 
                            Defense for Logistics and Materiel 
                            Readiness.
Sec. 923. Three-year extension of joint incentives program on sharing 
                            of health care resources by the Department 
                            of Defense and Department of Veterans 
                            Affairs.
Sec. 924. Sense of Senate on nomination of individual to serve as 
                            Director of Operational Test and Evaluation 
                            on a permanent basis.
Sec. 925. Inclusion of homeland defense and civil support missions of 
                            the National Guard and Reserves in the 
                            Quadrennial Defense Review.
Sec. 926. Reforms to the Defense Travel System to a Fee-For-Use-of-
                            Service System.
Sec. 927. Report on incorporation of elements of the reserve components 
                            into the Special Forces.
               Subtitle D--National Guard Bureau Matters

Sec. 931. Short title.
Sec. 932. Expanded authority of Chief of the National Guard Bureau and 
                            expanded functions of the National Guard 
                            Bureau.
Sec. 933. Requirement that position of Deputy Commander of the United 
                            States Northern Command be filled by a 
                            qualified National Guard officer.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. 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. Modification of date of submittal of OMB/CBO report on 
                            scoring of outlays.
Sec. 1007. Prohibition on parking of funds.
Sec. 1008. Incorporation of Classified Annex.
Sec. 1009. Reports to Congress and notice to public on earmarks in 
                            funds available to the Department of 
                            Defense.
                       Subtitle B--Naval Vessels

Sec. 1011. Repeal of requirement for 12 operational aircraft carriers 
                            within the Navy.
Sec. 1012. Approval of transfer of naval vessels to foreign nations by 
                            vessel class.
Sec. 1013. Naming of CVN-78 Aircraft Carrier as the U.S.S. Gerald Ford.
Sec. 1014. Authority to donate SS ARTHUR M. HUDDELL to the Government 
                            of Greece.
                    Subtitle C--Counterdrug Matters

Sec. 1021. Extension of availability of funds for unified counterdrug 
                            and counterterrorism campaign in Colombia.
Sec. 1022. Extension of authority of Department of Defense to provide 
                            additional support for counterdrug 
                            activities of other governmental agencies.
Sec. 1023. Extension and expansion of certain authorities to provide 
                            additional support for counterdrug 
                            activities.
Sec. 1024. Operation Bahamas, Turks & Caicos.
          Subtitle D--Defense Intelligence and Related Matters

Sec. 1031. Two-year extension of authority to engage in commercial 
                            activities as security for intelligence 
                            collection activities.
Sec. 1032. Annual report on intelligence oversight activities of the 
                            Department of Defense.
Sec. 1033. Administration of pilot project on Civilian Linguist Reserve 
                            Corps.
Sec. 1034. Improvement of authorities on the National Security 
                            Education Program.
Sec. 1035. Collection by National Security Agency of service charges 
                            for certification or validation of 
                            information assurance products.
Sec. 1036. Funding for a certain military intelligence program.
   Subtitle E--Defense Against Terrorism and Related Security Matters

Sec. 1041. Enhancement of authority to pay monetary rewards for 
                            assistance in combating terrorism.
Sec. 1042. Use of the Armed Forces in major public emergencies.
Sec. 1043. Treatment under Freedom of Information Act of certain 
                            confidential information shared with State 
                            and local personnel.
Sec. 1044. Temporary National Guard support for securing the southern 
                            land border of the United States.
 Subtitle F--Miscellaneous Authorities 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. Minimum annual purchase amounts for airlift from carriers 
                            participating in the Civil Reserve Air 
                            Fleet.
Sec. 1053. Increased flexibility in use of funds for Joint Staff 
                            exercises.
Sec. 1054. Strengthening the Special Inspector General for Iraq 
                            Reconstruction.
                       Subtitle G--Report Matters

Sec. 1061. Report on clarification of prohibition on cruel, inhuman, or 
                            degrading treatment or punishment.
Sec. 1062. Reports on members of the Armed Forces and civilian 
                            employees of the Department of Defense 
                            serving in the Legislative Branch.
Sec. 1063. Additional element in annual report on chemical and 
                            biological warfare defense.
Sec. 1064. Report on Local Boards of Trustees of the Armed Forces 
                            Retirement Home.
Sec. 1065. Repeal of certain report requirements.
Sec. 1066. 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. 1067. Report on reporting requirements applicable to the 
                            Department of Defense.
Sec. 1068. Report on technologies for neutralizing or defeating threats 
                            to military rotary wing aircraft from 
                            portable air defense systems and rocket 
                            propelled grenades.
Sec. 1069. Reports on Department of Justice efforts to investigate and 
                            prosecute cases of contracting abuse in 
                            Iraq, Afghanistan, and throughout the war 
                            on terror.
Sec. 1070. Report on biodefense staffing and training requirements in 
                            support of national biosafety laboratories.
Sec. 1070A. Annual report on acquisitions of articles, materials, and 
                            supplies manufactured outside the United 
                            States.
Sec. 1070B. Annual report on foreign sales of significant military 
                            equipment manufactured inside the United 
                            States.
Sec. 1070C. Report on feasibility of establishing regional combatant 
                            command for Africa.
Sec. 1070D. Annual reports on expanded use of unmanned aerial vehicles 
                            in the National Airspace System.
            Subtitle H--Technical and Conforming Amendments

Sec. 1071. Uniform definition of national security system for certain 
                            Department of Defense purposes.
Sec. 1072. Conforming amendment relating to redesignation of Defense 
                            Communications Agency as Defense 
                            Information Systems Agency. 
Sec. 1073. Technical amendment.
                       Subtitle I--Other Matters

Sec. 1081. National Foreign Language Coordination Council.
Sec. 1082. Support of successor organizations of the disestablished 
                            Interagency Global Positioning System 
                            Executive Board. 
Sec. 1083. Quadrennial Defense Review.
Sec. 1084. Sense of Congress on the commendable actions of the Armed 
                            Forces.
Sec. 1085. Budgeting for ongoing military operations.
Sec. 1086. Court security improvements.
Sec. 1087. Sense of the Senate on destruction of chemical weapons.
Sec. 1088. Improved accountability for competitive contracting in 
                            hurricane recovery.
Sec. 1089. Protection of certain disclosures of information by Federal 
                            employees.
Sec. 1090. Sense of Congress regarding the men and women of the Armed 
                            Forces of the United States in Iraq.
Sec. 1091. Extension of returning worker exemption.
Sec. 1092. Limitation on the United States share of assessments for 
                            United Nations peacekeeping operations.
Sec. 1093. Termination of program.
Sec. 1094. Patent term extensions for the badges of the American 
                            Legion, the American Legion Women's 
                            Auxiliary, and the Sons of the American 
                            Legion.
Sec. 1095. Availability of funds for South County Commuter Rail 
                            Project, Providence, Rhode Island.
Sec. 1096. Sense of Congress on Iraq summit.
       TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

Sec. 1101. Accrual of annual leave for members of the uniformed 
                            services on terminal leave performing dual 
                            employment. 
Sec. 1102. Strategy for improving the senior management, functional, 
                            and technical workforce of the Department 
                            of Defense.
Sec. 1103. Authority to equalize allowances, benefits, and gratuities 
                            of personnel on official duty in Iraq and 
                            Afghanistan.
Sec. 1104. Programs for use of leave by caregivers for family members 
                            of individuals performing certain military 
                            service.
Sec. 1105. Three-year extension of authority for experimental personnel 
                            management program for scientific and 
                            technical personnel.
              TITLE XII--MATTERS RELATING TO OTHER NATIONS

                      Subtitle A--General Matters

Sec. 1201. Expansion of humanitarian and civic assistance to include 
                            communications and information capacity.
Sec. 1202. Modification of authorities relating to the Regional Defense 
                            Counterterrorism Fellowship Program.
Sec. 1203. Logistic support of allied forces for combined operations.
Sec. 1204. Exclusion of petroleum, oil, and lubricants from limitations 
                            on amount of liabilities the United States 
                            may accrue under acquisition and cross-
                            servicing agreements.
Sec. 1205. Temporary authority to use acquisition and cross-servicing 
                            agreements to loan significant military 
                            equipment to foreign forces in Iraq and 
                            Afghanistan for personnel protection and 
                            survivability.
Sec. 1206. Modification of authorities relating to the building of the 
                            capacity of foreign military forces.
Sec. 1207. Participation of the Department of Defense in multinational 
                            military centers of excellence.
Sec. 1208. Distribution of education and training materials and 
                            information technology to enhance 
                            interoperability.
Sec. 1209. United States' policy on the nuclear programs of Iran.
Sec. 1210. Modification of limitations on assistance under the American 
                            Servicemembers' Protection Act of 2002.
Sec. 1211. Sense of the Congress commending the Government of Iraq for 
                            affirming its position of no amnesty for 
                            terrorists who attack United States Armed 
                            Forces.
Sec. 1212. Sense of Congress on the granting of amnesty to persons 
                            known to have killed members of the Armed 
                            Forces in Iraq.
Sec. 1213. Annual reports on United States contributions to the United 
                            Nations.
Sec. 1214. North Korea.
Sec. 1215. Comprehensive strategy for Somalia.
Sec. 1216. Intelligence on Iran.
Sec. 1217. Reports on implementation of the Darfur Peace Agreement.
                       Subtitle B--Report Matters

Sec. 1221. Report on increased role and participation of multinational 
                            partners in the United Nations Command in 
                            the Republic of Korea.
Sec. 1222. Report on interagency operating procedures for stabilization 
                            and reconstruction operations.
Sec. 1223. Repeal of certain report requirements.
Sec. 1224. Reports on the Darfur Peace Agreement.
  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. Removal of certain restrictions on provision of cooperative 
                            threat reduction assistance.
  TITLE XIV--AUTHORIZATION FOR INCREASED COSTS DUE TO OPERATION IRAQI 
                 FREEDOM AND OPERATION ENDURING FREEDOM

Sec. 1401. Purpose.
Sec. 1402. Army procurement.
Sec. 1403. Marine Corps procurement.
Sec. 1404. Air Force procurement.
Sec. 1405. Operation and maintenance.
Sec. 1406. Defense Health Program.
Sec. 1407. Military personnel.
Sec. 1408. Joint Improvised Explosive Device Defeat Fund.
Sec. 1409. Classified programs.
Sec. 1410. Iraq Freedom Fund.
Sec. 1411. Treatment as additional authorizations.
Sec. 1412. Transfer authority.
Sec. 1413. Availability of funds.
Sec. 1414. Amount for procurement of hemostatic agents for use in the 
                            field.
Sec. 1415. Our Military Kids youth support program.
Sec. 1416. Joint Advertising, Market Research and Studies program.
Sec. 1417. Report.
Sec. 1418. Submittal to Congress of Department of Defense supplemental 
                            and cost of war execution reports.
Sec. 1419. Limitation on availability of funds for certain purposes 
                            relating to Iraq.
            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.
                            TITLE XXI--ARMY

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

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Modification of authority to carry out certain fiscal year 
                            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. Authorization of appropriations, Defense Agencies.
Sec. 2405. Modification of authority to carry out certain fiscal year 
                            2006 projects.
   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.
Sec. 2704. Effective date.
                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Three-year extension of temporary, limited authority to use 
                            operation and maintenance funds for 
                            construction projects outside the United 
                            States.
Sec. 2802. Authority to carry out military construction projects in 
                            connection with industrial facility 
                            investment program.
Sec. 2803. Modification of notification requirements related to cost 
                            variation authority.
Sec. 2804. Consideration of local comparability of floor areas in 
                            construction, acquisition, and improvement 
                            of military unaccompanied housing.
Sec. 2805. Increase in thresholds for unspecified minor military 
                            construction projects.
Sec. 2806. Inclusion of military transportation and support systems in 
                            energy savings program.
Sec. 2807. Repeal of authority to convey property at closed or 
                            realigned military installations to support 
                            military construction.
Sec. 2808. Repeal of requirement to determine availability of suitable 
                            alternative housing for acquisition in lieu 
                            of construction of new family housing.
Sec. 2809. Updating foreign currency fluctuation adjustment for certain 
                            military family housing leases in Korea.
Sec. 2810. Pilot projects for acquisition or construction of military 
                            unaccompanied housing.
Sec. 2811. Certification required for certain military construction 
                            projects.
Sec. 2812. Modification of land acquisition authority, Perquimans 
                            County, North Carolina.
Sec. 2813. Naming of research laboratory at Air Force Rome Research 
                            Site, Rome, New York, in honor of Sherwood 
                            L. Boehlert, a member of the House of 
                            Representatives.
Sec. 2814. Naming of administration building at Joint Systems 
                            Manufacturing Center in Lima, Ohio, after 
                            Michael G. Oxley, a member of the House of 
                            Representatives.
Sec. 2815. Naming of military family housing facility at Fort Carson, 
                            Colorado, in honor of Joel Hefley, a member 
                            of the House of Representatives.
Sec. 2816. Authority to occupy United States Southern Command family 
                            housing.
        Subtitle B--Real Property and Facilities Administration

Sec. 2821. Consolidation of easement provisions.
Sec. 2822. Authority to grant restrictive easements for conservation 
                            and environmental restoration purposes.
Sec. 2823. Consolidation of provisions relating to transfers of real 
                            property within the Department of Defense 
                            and to other Federal agencies.
Sec. 2824. Authority to use excess property as exchange under 
                            agreements to limit encroachments on 
                            military training, testing, and operations.
Sec. 2825. Modification of utility system authority and related 
                            reporting requirements.
Sec. 2826. Increase in authorized maximum lease term for certain 
                            structures and real property relating to 
                            structures in foreign countries.
Sec. 2827. Modification of land transfer authority, Potomac Annex, 
                            District of Columbia.
Sec. 2828. Reports on Army training ranges.
Sec. 2829. Use of renewable energy to meet electricity needs.
Sec. 2830. Naming of Navy and Marine Corps Reserve Center at Rock 
                            Island, Illinois, in honor of Lane Evans, a 
                            Member of the House of Representatives.
                Subtitle C--Base Closure and Realignment

Sec. 2831. Defense economic adjustment program: research and technical 
                            assistance.
Sec. 2832. Extension of eligibility for community planning assistance 
                            related to certain military facilities not 
                            under Department of Defense jurisdiction.
Sec. 2833. Modification of deposit requirements in connection with 
                            lease proceeds received at military 
                            installations approved for closure or 
                            realignment after January 1, 2005.
Sec. 2834. 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. Land conveyance, Radford Army Ammunition Plant, Virginia.
Sec. 2842. Modifications to land conveyance authority, Engineering 
                            Proving Ground, Fort Belvoir, Virginia.
Sec. 2843. Land conveyances, Omaha, Nebraska.
                       Subtitle E--Other Matters

Sec. 2851. Rickenbacker Airport, Columbus, Ohio.
Sec. 2852. Highway projects, Detroit, Michigan.
Sec. 2853. Fox Point Hurricane Barrier, Providence, Rhode Island.
Sec. 2854. Land conveyance, Hopkinton, New Hampshire.
Sec. 2855. Federal funding for fixed guideway projects.
 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

                 Subtitle A--National Security Programs

Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Defense environmental cleanup.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.
                       Subtitle B--Other Matters

Sec. 3111. Notice and wait requirement applicable to certain third 
                            party financing arrangements.
Sec. 3112. Utilization of international contributions to the Global 
                            Threat Reduction Initiative.
Sec. 3113. Utilization of international contributions to the Second 
                            Line of Defense Core Program.
Sec. 3114. Extension of Facilities and Infrastructure Recapitalization 
                            Program.
Sec. 3115. Two-year extension of authority for appointment of certain 
                            scientific, engineering, and technical 
                            personnel.
Sec. 3116. 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. 3117. Limitations on availability of funds for Waste Treatment and 
                            Immobilization Plant.
Sec. 3118. Limitation on availability of funds for implementation of 
                            the Russian Surplus Fissile Materials 
                            Disposition Program.
Sec. 3119. Limitation on availability of funds for construction of MOX 
                            Fuel Fabrication Facility.
Sec. 3120. Technical correction related to authorization of 
                            appropriations for fiscal year 2006.
Sec. 3121. Education of future nuclear engineers.
          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.
                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Transfer of government-furnished uranium stored at Sequoyah 
                            Fuels Corporation, Gore, Oklahoma.
                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Completion of equity finalization process for Naval 
                            Petroleum Reserve Numbered 1.

SEC. 3. 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

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
for procurement for the Army as follows:
            (1) For aircraft, $3,457,329,000.
            (2) For missiles, $1,428,859,000.
            (3) For weapons and tracked combat vehicles, 
        $2,849,743,000.
            (4) For ammunition, $2,036,785,000.
            (5) For other procurement, $7,729,602,000.

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, $10,704,155,000.
            (2) For weapons, including missiles and torpedoes, 
        $2,587,020,000.
            (3) For shipbuilding and conversion, $12,058,553,000.
            (4) For other procurement, $5,045,516,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2007 for procurement for the Marine Corps in the amount 
of $1,300,213,000.
    (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 $809,943,000.

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, $12,004,096,000.
            (2) For missiles, $4,224,145,000.
            (3) For ammunition, $1,076,749,000.
            (4) For other procurement, $15,434,586,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
for Defense-wide procurement in the amount of $2,980,498,000.

                       Subtitle B--Army Programs

SEC. 111. LIMITATION ON AVAILABILITY OF FUNDS FOR THE JOINT NETWORK 
              NODE.

    (a) Limitation.--Of the amount authorized to be appropriated by 
section 101(5) for other procurement for the Army and available for 
purposes of the procurement of the Joint Network Node, not more than 50 
percent of such amount may be available for such purposes until the 
Secretary of the Army submits to the congressional defense committees a 
report on the strategy of the Army for the convergence of the Joint 
Network Node, the Warfighter Information Network--Tactical, and the 
Mounted Battle Command On-the-Move communications programs.
    (b) Elements.--The report described in subsection (a) shall include 
a description of the acquisition plan required for the convergence 
described in that subsection, including the implementation plan, 
schedule, and funding of such acquisition plan.
    (c) Deadline.--The report described in subsection (a) shall be 
submitted under that subsection, if at all, not later than March 15, 
2007.

SEC. 112. 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:
            (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 interests with respect to 
        competition on Future Combat Systems technologies and equipment 
        under subcontracts under the Future Combat Systems program.

SEC. 113. REPORTS ON ARMY MODULARITY INITIATIVE.

    (a) Report by Secretary of the Army.--
            (1) Report required.--Not later than March 15, 2007, the 
        Secretary of the Army shall submit to the congressional defense 
        committees a report on the modularity initiative of the Army.
            (2) Elements.--The report required by this subsection shall 
        include the following:
                    (A) A description of the manner in which the Army 
                distinguishes costs under the modularity initiative 
                from costs of modernization and reset.
                    (B) An identification, by line item, of the amount 
                of funds expended to date on the modularity initiative.
                    (C) An identification, by line item, of the amount 
                of funds the Army has budgeted and programmed to date 
                on the modularity initiative.
                    (D) A detailed description on how modularity 
                equipment will be allocated to the regular components 
                and reserve components of the Armed Forces by 2011, and 
                a description of any anticipated shortfalls in such 
                allocation.
                    (E) A plan for further testing and evaluation of 
                modular designs, and a summary of any lessons learned 
                to date from modular brigades that have been 
                established, deployed to Iraq, or both.
    (b) Annual Comptroller General Reports.--
            (1) Reports required.--The Comptroller General of the 
        United States shall submit to the congressional defense 
        committees each year, not later than 45 days after the date on 
        which the budget of the President is submitted to Congress for 
        a fiscal year under section 1105 of title 31, United States 
        Code, a report on the assessment of the Comptroller General on 
        the following:
                    (A) The progress of the Army in equipping and 
                manning modular units in the regular components and 
                reserve components of the Armed Forces.
                    (B) The use of funds by the Army for the modularity 
                initiative.
                    (C) The progress of the Army in conducting further 
                testing and evaluations of designs under the modularity 
                initiative.
            (2) First report.--The first report required under this 
        subsection shall be submitted in conjunction with the budget 
        for fiscal year 2008.

SEC. 114. REPLACEMENT EQUIPMENT.

    (a) Priority.--Priority for the distribution of new and combat 
serviceable equipment, with associated support and test equipment for 
acting and reserve component forces, shall be given to units scheduled 
for mission deployment, employment first, or both regardless of 
component.
    (b) Allocation.--In the amounts authorized to be appropriated by 
section 101(5) for the procurement of replacement equipment, subject to 
subsection (a), priority for the distribution of Army National Guard 
equipment described in subsection (a) may be given to States that have 
experienced a major disaster, as determined under the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121-
5206), and may require replacement equipment to respond to future 
emergencies/disasters only after distribution of new and combat 
serviceable equipment has been made in accordance with subsection (a).

                       Subtitle C--Navy Programs

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

    (a) Availability of Funds for CVN-21 Class Aircraft Carriers.--
Amounts authorized to be appropriated to Shipbuilding and Conversion, 
Navy, for purposes of the construction of CVN-21 class aircraft 
carriers shall be available in the fiscal year for which authorized to 
be appropriated and the succeeding three fiscal years.
    (b) Amount Authorized From SCN Account for Fiscal Year 2007.--Of 
the amount authorized to be appropriated by section 102(a)(3) for 
fiscal year 2007 for Shipbuilding and Conversion, Navy, $834,100,000 
shall be available for advance procurement with respect to the CVN-21 
class aircraft carriers designated CVN-78, CVN-79, and CVN-80.
    (c) Contract Authority.--
            (1) Advance procurement.--The Secretary of the Navy may 
        enter into a contract during fiscal year 2007 for advance 
        procurement with respect to the CVN-21 class aircraft carriers 
        designated CVN-79 and CVN-80.
            (2) Construction.--In the fiscal year immediately following 
        the last fiscal year of the contract for advance procurement 
        for a CVN-21 class aircraft carrier referred to in paragraph 
        (1), 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.
    (d) Condition for Out-Year Contract Payments.--A contract entered 
into under subsection (b) 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.

SEC. 122. CONSTRUCTION OF FIRST TWO VESSELS UNDER THE 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 next-generation 
destroyer program.
    (b) Contract Authority.--
            (1) In general.--The Secretary of the Navy may in 
        accordance with section 2306b of title 10, United States Code, 
        enter into a multiyear contract beginning with the fiscal year 
        2007 program year for procurement of each of the first two 
        vessels under the next-generation destroyer program.
            (2) Limitation.--Not more than one contract described in 
        paragraph (1) may be awarded under that paragraph to a single 
        surface-combatant shipyard.
            (3) Duration on procurement.--Each contract under paragraph 
        (1) shall contemplate funding for the procurement of a vessel 
        under such contract in fiscal years 2007 and 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.

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''.

                     Subtitle D--Air Force Programs

SEC. 141. 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. 142. PROHIBITION ON RETIREMENT OF C-130E/H TACTICAL AIRLIFT 
              AIRCRAFT.

    The Secretary of the Air Force shall not retire any C-130E/H 
tactical airlift aircraft of the Air Force in fiscal year 2007.

SEC. 143. LIMITATION ON RETIREMENT OF KC-135E AIRCRAFT.

    The Secretary of the Air Force shall ensure that the number, if 
any, of KC-135E aircraft of the Air Force that is retired in fiscal 
year 2007 does not exceed 29 such aircraft.

SEC. 144. LIMITATION ON RETIREMENT OF B-52H BOMBER AIRCRAFT.

    The Secretary of the Air Force shall ensure that the number, if 
any, of B-52H bomber aircraft of the Air Force that is retired in 
fiscal year 2007 does not exceed 18 such aircraft.

SEC. 145. RETIREMENT OF B-52H BOMBER AIRCRAFT.

    (a) Limitation on Retirement Pending Report on Bomber Force 
Structure.--No funds authorized to be appropriated for the Department 
of Defense may be obligated or expended for retiring or dismantling any 
of the 93 B-52H bomber aircraft in service in the Air Force as of June 
1, 2006, until 30 days after the Secretary of the Air Force transmits 
to the Committees on Armed Services of the Senate and the House of 
Representatives a report on the bomber force structure of the Air Force 
meeting the requirements of subsection (b).
    (b) Elements.--
            (1) In general.--A report under subsection (a) shall set 
        forth the following:
                    (A) The plan of the Air Force for the modernization 
                of the B-52H bomber aircraft fleet.
                    (B) The plans of the Air Force for the 
                modernization of the balance of the bomber force 
                structure.
                    (C) The amount and type of bombers in the bomber 
                force structure that is appropriate to meet the 
                requirements of the national security strategy of the 
                United States.
                    (D) A justification of the cost and projected 
                savings of any reductions to the B-52H bomber aircraft 
                fleet as a result of the retirement or dismantlement of 
                the B-52H bomber aircraft covered by the report.
                    (E) The life expectancy of each bomber aircraft to 
                remain in the bomber force structure.
                    (F) The date by which any new bomber aircraft must 
                reach initial operational capability and the 
                capabilities of the bomber force structure that would 
                be replaced or superseded by any new bomber aircraft.
            (2) Amount and type of bomber force structure defined.--In 
        this subsection, the term ``amount and type of bomber force 
        structure'' means the number of B-2 bomber aircraft, B-52H 
        bomber aircraft, and B-1 bomber aircraft that are required to 
        carry out the national security strategy of the United States.
    (c) Preparation of Report.--A report under this section shall be 
prepared and submitted by the Institute of Defense Analysis to the 
Secretary of the Air Force for transmittal by the Secretary in 
accordance with subsection (a).

SEC. 146. FUNDING FOR PROCUREMENT OF F-22A FIGHTER AIRCRAFT.

    (a) Prohibition on Use of Incremental Funding.--The Secretary of 
the Air Force shall not use incremental funding for the procurement of 
F-22A fighter aircraft.
    (b) Multiyear Procurement.--The Secretary of the Air Force may, in 
accordance with section 2306b of title 10, United States Code, enter 
into a multiyear contract beginning with the fiscal year 2007 program 
year for procurement of not more than 60 F-22A fighter aircraft.

SEC. 147. MULTIYEAR PROCUREMENT OF F-119 ENGINES FOR F-22A FIGHTER 
              AIRCRAFT.

    The Secretary of the Air Force may, in accordance with section 
2306b of title 10, United States Code, enter into a multiyear contract 
beginning with the fiscal year 2007 program year for procurement of the 
following:
            (1) Not more than 120 F-119 engines for F-22A fighter 
        aircraft.
            (2) Not more than 13 spare F-119 engines for F-22A fighter 
        aircraft.

SEC. 148. MULTI-SPECTRAL IMAGING CAPABILITIES.

    (a) Findings.--The Senate makes the following findings:
            (1) The budget of the President for fiscal year 2007, as 
        submitted to Congress under section 1105(a) of title 31, United 
        States Code, and the current Future-Years Defense Program 
        adopts an Air Force plan to retire the remaining fleet of U-2 
        aircraft by 2011.
            (2) This retirement would eliminate the multi-spectral 
        capability provided by the electro-optical/infrared (EO/IR) 
        Senior Year Electro-optical Reconnaissance System (SYERS-2) 
        high-altitude imaging system.
            (3) The system referred to in paragraph (2) provides high-
        resolution, long-range, day-and-night image intelligence.
            (4) The infrared capabilities of the system referred to in 
        paragraph (2) can defeat enemy efforts to use camouflage or 
        concealment, as well as provide images through poor visibility 
        and smoke.
            (5) Although the Air Force has previously recognized the 
        military value of Senior Year Electro-optical Reconnaissance 
        System sensors, the Air Force has no plans to migrate this 
        capability to any platform remaining in the fleet.
            (6) The Air Force could integrate such capabilities onto 
        the Global Hawk platform to retain this capability for 
        combatant commanders.
            (7) The Nation risks a loss of an important intelligence 
        gathering capability if this capability is not transferred to 
        another platform.
    (b) Sense of Senate.--It is the sense of the Senate that the Air 
Force should investigate ways to retain the multi-spectral imaging 
capabilities provided by the Senior Year Electro-optical Reconnaissance 
System high-altitude imaging system after the retirement of the U-2 
aircraft fleet.
    (c) Report Requirement.--The Secretary of the Air Force shall 
submit to the congressional defense committees, at the same time the 
budget of the President for fiscal year 2008 is submitted to Congress 
under section 1105(a) of title 31, United States Code, a plan for 
migrating the capabilities provided by the Senior Year Electro-optical 
Reconnaissance System high-altitude imaging system from the U-2 
aircraft to the Global Hawk platform before the retirement of the U-2 
aircraft fleet in 2011.

SEC. 149. MINUTEMAN III INTERCONTINENTAL BALLISTIC MISSILES.

    (a) Findings.--Congress makes the following findings:
            (1) In the Joint Explanatory Statement of the Committee of 
        Conference on H.R. 1815, the National Defense Authorization Act 
        for Fiscal Year 2006, the conferees state that the policy of 
        the United States ``is to deploy a force of 500 ICBMs''. The 
        conferees further note ``that unanticipated strategic 
        developments may compel the United States to make changes to 
        this force structure in the future.''.
            (2) The Quadrennial Defense Review (QDR) conducted under 
        section 118 of title 10, United States Code, in 2005 finds that 
        maintaining a robust nuclear deterrent ``remains a keystone of 
        United States national power''. However, notwithstanding that 
        finding and without providing any specific justification for 
        the recommendation, the Quadrennial Defense Review recommends 
        reducing the number of deployed Minuteman III Intercontinental 
        Ballistic Missiles (ICBMs) from 500 to 450 beginning in fiscal 
        year 2007. The Quadrennial Defense Review also fails to 
        identify what unanticipated strategic developments compelled 
        the United States to reduce the Intercontinental Ballistic 
        Missile force structure.
            (3) The commander of the Strategic Command, General James 
        Cartwright, testified before the Committee on Armed Services of 
        the Senate that the reduction in deployment of Minuteman III 
        Intercontinental Ballistic Missiles is required so that the 50 
        missiles withdrawn from the deployed force could be used for 
        test assets and spares to extend the life of the Minuteman III 
        Intercontinental Ballistic Missile well into the future. If 
        spares are not modernized, the Air Force may not have 
        sufficient replacement missiles to sustain the force size.
    (b) Modernization of Intercontinental Ballistic Missiles 
Required.--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.
    (c) Limitation on Termination of Modernization Program Pending 
Report.--No funds authorized to be appropriated for the Department of 
Defense may be obligated or expended for the termination of any 
Minuteman III ICBM modernization program, or for the withdrawal of any 
Minuteman III Intercontinental Ballistic Missile from the active force, 
until 30 days after the Secretary of Defense submits to the 
congressional defense committees 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 
        Intercontinental Ballistic Missile force with multiple 
        independent warheads rather than single warheads as recommended 
        by past reviews of the United States nuclear posture.
            (3) An assessment of the test assets and spares required to 
        maintain a force of 500 deployed Minuteman III Intercontinental 
        Ballistic Missiles through 2030.
            (4) An assessment of the test assets and spares required to 
        maintain a force of 450 deployed Minuteman III Intercontinental 
        Ballistic Missiles through 2030.
            (5) An inventory of currently available Minuteman III 
        Intercontinental Ballistic Missile test assets and spares.
            (6) A plan to sustain and complete the modernization of all 
        deployed and spare Minuteman III Intercontinental Ballistic 
        Missiles, a test plan, and an analysis of the funding required 
        to carry out modernization of all deployed and spare Minuteman 
        III Intercontinental Ballistic Missiles.
            (7) An assessment of whether halting upgrades to the 
        Minuteman III Intercontinental Ballistic 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 Intercontinental 
        Ballistic Missile force beyond fiscal year 2030.
    (d) Remote Visual Assessment.--
            (1) Additional amount for research, development, test, and 
        evaluation, air force.--The amount authorized to be 
        appropriated by section 201(3) for research, development, test, 
        and evaluation for the Air Force is hereby increased by 
        $5,000,000.
            (2) Availability of amount.--Of the amount authorized to be 
        appropriated by section 201(3) for research, development, test, 
        and evaluation for the Air Force, as increased by paragraph 
        (1), $5,000,000 may be available for ICBM Security 
        Modernization (PE #0604851) for Remote Visual Assessment for 
        security for silos for intercontinental ballistic missiles 
        (ICBMs).
            (3) Offset.--The amount authorized to be appropriated by 
        section 103(2) for procurement of missiles for the Air Force is 
        hereby reduced by $5,000,000, with the amount of the reduction 
        to be allocated to amounts available for the Evolved Expendable 
        Launch Vehicle.
    (e) ICBM Modernization Program Defined.--In this section, the term 
``ICBM Modernization program'' means each of the following for the 
Minuteman III Intercontinental Ballistic Missile:
            (1) The Guidance Replacement Program (GRP).
            (2) The Propulsion Replacement Program (PRP).
            (3) The Propulsion System Rocket Engine (PSRE) program.
            (4) The Safety Enhanced Reentry Vehicle (SERV) program.

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

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $11,151,009,000.
            (2) For the Navy, $17,451,823,000.
            (3) For the Air Force, $24,400,857,000.
            (4) For Defense-wide activities, $21,160,459,000, of which 
        $181,520,000 is authorized for the Director of Operational Test 
        and Evaluation.

SEC. 202. AMOUNT FOR SCIENCE AND TECHNOLOGY.

    (a) Amount for Projects.--Of the total amount authorized to be 
appropriated by section 201, $11,468,959,000 shall be available for 
science and technology projects.
    (b) Science and Technology Defined.--In this section, the term 
``science and technology project'' means work funded in program 
elements for defense research, development, test, and evaluation under 
Department of Defense budget activities 1, 2, or 3.

SEC. 203. AMOUNT FOR DEVELOPMENT AND VALIDATION OF WARFIGHTER RAPID 
              AWARENESS PROCESSING TECHNOLOGY.

    (a) Increase in Amount for Research, Development, Test, and 
Evaluation for the Navy.--The amount authorized to be appropriated by 
section 201(2) for research, development, test, and evaluation for the 
Navy is hereby increased by $4,000,000.
    (b) Availability of Amount.--Of the amount authorized to be 
appropriated by section 201(2) for research, development, test, and 
evaluation for the Navy, as increased by subsection (a), $4,000,000 may 
be available for the development, validation, and demonstration of 
warfighter rapid awareness processing technology for distributed 
operations within the Marine Corps Landing Force Technology program.
    (c) Offset.--The amount authorized to be appropriated by section 
421 for military personnel is hereby decreased by $4,000,000, due to 
unexpended obligations, if available.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. INDEPENDENT ESTIMATE OF COSTS OF THE FUTURE COMBAT SYSTEMS.

    (a) Limitation on Availability of Funds for Certain Activities.--Of 
the amount authorized to be appropriated by this title and available 
for the Future Combat Systems (FCS) for purposes of system of systems 
engineering and program management for the Future Combat Systems, an 
amount equal to $500,000,000 of such amount may not be obligated and 
expended for such purposes until the Secretary of Defense submits to 
the congressional defense committees the report required by subsection 
(b)(4).
    (b) 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.
            (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 the date of the 
        submittal to Congress of the budget of the President for fiscal 
        year 2008 (as submitted to Congress under section 1105(a) of 
        title 31, United States Code).
    (c) 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. 212. FUNDING OF DEFENSE SCIENCE AND TECHNOLOGY PROGRAMS.

    (a) Extension of Funding Objective.--Subsection (b) of section 212 
of the National Defense Authorization Act for Fiscal Year 2000 (10 
U.S.C. 2501 note) is amended by striking ``through 2009'' and inserting 
``through 2012''.
    (b) 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.--(1) 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--
            ``(A) a detailed, prioritized list, including estimates of 
        required funding, of highly-rated, peer-reviewed science and 
        technology projects received by the Department through 
        competitive solicitations and broad agency announcements 
        which--
                    ``(i) are not funded solely due to lack of 
                resources, but
                    ``(ii) represent science and technology 
                opportunities that support the research and development 
                programs and goals of the military departments and the 
                Defense Agencies; and
            ``(B) 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 will not have 
        global technical leadership within the next five years, in each 
        of the technology areas described in the following plans:
                    ``(i) 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).
                    ``(ii) The Defense Technology Area Plan of the 
                Department of Defense.
                    ``(iii) The Basic Research Plan of the Department 
                of Defense.
    ``(2)(A) The list required by paragraph (1)(A) for a fiscal year in 
which the budget for such fiscal year fails to comply with the 
objective in subsection (b) shall be submitted together with the 
Department of Defense budget justification materials submitted to 
Congress under section 1105 of title 31, United States Code, with the 
budget for the next fiscal year.
    ``(B) The report required by paragraph (1)(B) for a fiscal year in 
which the budget for such fiscal year fails to comply with the 
objective in subsection (b) shall be submitted not later than the six 
months after the submittal of the Department of Defense budget 
justification materials that are submitted to Congress under section 
1105 of title 31, United States Code, with the budget for the next 
fiscal year.''.

SEC. 213. 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 the 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; and
                    (B) coordination of the programs referred to in 
                subparagraph (A) with the programs on hypersonics of 
                the National Aeronautics and Space Administration.
            (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, in coordination with 
        the Joint Staff and the National Aeronautics and Space 
        Administration, develop a roadmap for the hypersonics programs 
        of the Department of Defense.
            (2) Elements.--The roadmap shall include the following 
        matters:
                    (A) 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.
                    (B) Acquisition transition plans for hypersonics.
                    (C) Anticipated mission requirements for 
                hypersonics.
                    (D) A schedule for meeting such goals, including 
                the activities and funding anticipated to be required 
                for meeting such goals.
            (3) Submittal to congress.--The Secretary shall submit the 
        roadmap to the congressional defense committees 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).
    (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 the funding available for research, development, test, and 
        evaluation and demonstration programs of the Department of 
        Defense on hypersonics in order to determine whether or not 
        such funding and programs are 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 under 
that subsection not to be consistent with the roadmap developed under 
subsection (d), the Secretary shall submit to Congress a report on such 
funding or program, as the case may be, together with a statement of 
the actions to be taken to make such funding or program, as the case 
may be, consistent with the roadmap.
    (g) Hypersonics Defined.--In this section, the term ``hypersonics'' 
means aircraft and missiles capable of travelling at speeds in excess 
of Mach 5.

SEC. 214. TRIDENT SEA-LAUNCHED BALLISTIC MISSILES.

    (a) Limitation on Availability of Funds.--
            (1) In general.--Except as provided in paragraph (2), none 
        of the funds authorized to be appropriated by this Act for the 
        Conventional Trident Modification (CTM) program may be 
        obligated or expended for the development or modification of 
        the Trident D-5 sea-launched ballistic missile until 30 days 
        after the date on which the report required by subsection (b) 
        is submitted to the congressional defense committees.
            (2) Exception.--Paragraph (1) shall not apply with respect 
        to amounts authorized to be appropriated by section 201(2) for 
        research, development, test, and evaluation, Navy, and 
        available for Advanced Conventional Strike Capability (PE 
        #64327N) in an amount not to exceed $32,000,000.
    (b) Report.--
            (1) Report required.--The Secretary of Defense shall, in 
        consultation with the Secretary of State, submit to the 
        congressional defense committees a report setting forth a 
        proposal to replace nuclear warheads on twenty-four Trident D-5 
        sea-launched ballistic missiles with conventional kinetic 
        warheads for deployment on submarines that carry Trident sea-
        launched ballistic missiles.
            (2) Elements.--The report required by paragraph (1) shall 
        include the following:
                    (A) A description of the types of scenarios, types 
                of targets, and circumstances in which a conventional 
                sea-launched ballistic missile would be used.
                    (B) 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 subparagraph (A), and 
                a statement of any reason why each is not a suitable 
                alternative to a conventional sea-launched ballistic 
                missile.
                    (C) 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).
                    (D) An assessment of the capabilities of other 
                countries to detect and track the launch of a 
                conventional or nuclear sea-launched ballistic missile.
                    (E) 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.
                    (F) An assessment of the notification and other 
                protocols that would have to be in place prior to using 
                any conventional sea-launched ballistic missile and a 
                plan for entering into such protocols.
                    (G) An assessment of the adequacy of the 
                intelligence that would be needed to support an attack 
                involving conventional sea-launched ballistic missiles.
                    (H) 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.
                    (I) 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.
                    (J) An analysis and assessment of the implications 
                for the United States missile defense system if other 
                countries utilize long range conventional ballistic 
                missiles.
                    (K) 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.
                    (L) 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.
                    (M) 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.
                    (N) 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.
    (c) Availability of Funds for Report.--Of the amounts authorized to 
be appropriated by this Act (other than the amounts covered by the 
limitation in subsection (a)), $20,000,000 may be available to prepare 
the report required by subsection (b).

SEC. 215. ARROW BALLISTIC MISSILE DEFENSE SYSTEM.

    Of the amount authorized to be appropriated by section 201(4) for 
research, development, test, and evaluation for Defense-wide activities 
and available for ballistic missile defense--
            (1) $65,000,000 may be available for coproduction of the 
        Arrow ballistic missile defense system; and
            (2) $63,702,000 may be available for the Arrow System 
        Improvement Program.

SEC. 216. HIGH ENERGY LASER LOW ASPECT TARGET TRACKING.

    (a) Additional Amount for Research, Development, Test, and 
Evaluation, Army.--The amount authorized to be appropriated by section 
201(1) for research, development, test, and evaluation for the Army is 
hereby increased by $5,000,000.
    (b) Availability of Amount.--
            (1) In general.--Of the amount authorized to be 
        appropriated by section 201(1) for research, development, test, 
        and evaluation for the Army, as increased by subsection (a), 
        $5,000,000 may be available for the Department of Defense High 
        Energy Laser Test Facility for High Energy Laser Low Aspect 
        Target Tracking (HEL-LATT) test series done jointly with the 
        Navy.
            (2) Construction with other amounts.--The amount available 
        under paragraph (1) for the purpose set forth in that paragraph 
        is in addition to any amounts available under this Act for that 
        purpose.
    (c) Offset.--The amount authorized to be appropriated by section 
421 for military personnel is hereby reduced by $5,000,000, due to 
unexpended obligations, if available.

SEC. 217. ADVANCED ALUMINUM AEROSTRUCTURES INITIATIVE.

    (a) Additional Amount for Research, Development, Test, and 
Evaluation, Air Force.--The amount authorized to be appropriated by 
section 201(3) for research, development, test, and evaluation for the 
Air Force is hereby increased by $2,000,000.
    (b) Availability of Amount.--Of the amount authorized to be 
appropriated by section 201(3) for research, development, test, and 
evaluation for the Air Force, as increased by subsection (a), 
$2,000,000 may be available for Aerospace Technology Development and 
Demonstration (PE #603211F) for the Advanced Aluminum Aerostructures 
Initiative (A3I).
    (c) Offset.--The amount authorized to be appropriated by section 
421 for military personnel is hereby decreased by $2,000,000, due to 
unexpended obligations, if available.

SEC. 218. LEGGED MOBILITY ROBOTIC RESEARCH.

    (a) Additional Amount for Research, Development, Test, and 
Evaluation, Army.--The amount authorized to be appropriated by section 
201(1) for research, development, test, and evaluation for the Army is 
hereby increased by $1,000,000.
    (b) Availability of Amount.--Of the amount authorized to be 
appropriated by section 201(1) for research, development, test, and 
evaluation for the Army, as increased by subsection (a), $1,000,000 may 
be available for Combat Vehicle and Automotive Technology (PE #602601A) 
for legged mobility robotic research for military applications.
    (c) Offset.--The amount authorized to be appropriated by section 
421 for military personnel is hereby decreased by $1,000,000, due to 
unexpended obligations, if available

SEC. 219. WIDEBAND DIGITAL AIRBORNE ELECTRONIC SENSING ARRAY.

    (a) Additional Amount for Research, Development, Test, and 
Evaluation, Air Force.--The amount authorized to be appropriated by 
section 201(3) for research, development, test, and evaluation for the 
Air Force is hereby increased by $3,000,000.
    (b) Availability of Amount.--Of the amount authorized to be 
appropriated by section 201(3) for research, development, test, and 
evaluation for the Air Force, as increased by subsection (a), 
$3,000,000 may be available for Wideband Digital Airborne Electronic 
Sensing Array (PE #0602204F).
    (c) Offset.--The amount authorized to be appropriated by section 
421 for military personnel is hereby reduced by $3,000,000, due to 
unexpended obligations, if available.

SEC. 220. SCIENCE AND TECHNOLOGY.

    (a) Army Support for University Research Initiatives.--
            (1) Additional amount for research, development, test, and 
        evaluation, army.--The amount authorized to be appropriated by 
        section 201(1) for research, development, test, and evaluation 
        for the Army is hereby increased by $10,000,000.
            (2) Availability of amount.--Of the amount authorized to be 
        appropriated by section 201(1) for research, development, test, 
        and evaluation for the Army, as increased by paragraph (1), 
        $10,000,000 may be available for program element PE 0601103A 
        for University Research Initiatives.
    (b) Navy Support for University Research Initiatives.--
            (1) Additional amount for research, development, test, and 
        evaluation, navy.--The amount authorized to be appropriated by 
        section 201(2) for research, development, test, and evaluation 
        for the Navy is hereby increased by $10,000,000.
            (2) Availability of amount.--Of the amount authorized to be 
        appropriated by section 201(2) for research, development, test, 
        and evaluation for the Navy, as increased by paragraph (1), 
        $10,000,000 may be available for program element PE 0601103N 
        for University Research Initiatives.
    (c) Air Force Support for University Research Initiatives.--
            (1) Additional amount for research, development, test, and 
        evaluation, air force.--The amount authorized to be 
        appropriated by section 201(3) for research, development, test, 
        and evaluation for the Air Force is hereby increased by 
        $10,000,000.
            (2) Availability of amount.--Of the amount authorized to be 
        appropriated by section 201(3) for research, development, test, 
        and evaluation for the Air Force, as increased by paragraph 
        (1), $10,000,000 may be available for program element PE 
        0601103F for University Research Initiatives.
    (d) Computer Science and Cybersecurity.--
            (1) Additional amount for research, development, test, and 
        evaluation, defense-wide.--The amount authorized to be 
        appropriated by section 201(4) for research, development, test, 
        and evaluation for Defense-wide activities is hereby increased 
        by $10,000,000.
            (2) Availability of amount.--Of the amount authorized to be 
        appropriated by section 201(4) for research, development, test, 
        and evaluation for Defense-wide activities, as increased by 
        paragraph (1), $10,000,000 may be available for program element 
        PE 0601101E for the Defense Advanced Research Projects Agency 
        University Research Program in Computer Science and 
        Cybersecurity.
    (e) SMART National Defense Education Program.--
            (1) Additional amount for research, development, test, and 
        evaluation, defense-wide.--The amount authorized to be 
        appropriated by section 201(4) for research, development, test, 
        and evaluation for Defense-wide activities is hereby increased 
        by $5,000,000.
            (2) Availability of amount.--Of the amount authorized to be 
        appropriated by section 201(4) for research, development, test, 
        and evaluation for Defense-wide activities, as increased by 
        paragraph (1), $5,000,000 may be available for program element 
        PE 0601120D8Z for the SMART National Defense Education Program.
    (f) Offset.--The amount authorized to be appropriated by section 
421 for military personnel is hereby reduced by $45,000,000, due to 
unexpended obligations, if available.

                  Subtitle C--Missile Defense Programs

SEC. 231. AVAILABILITY OF RESEARCH, DEVELOPMENT, TEST, AND EVALUATION 
              FUNDS FOR FIELDING BALLISTIC MISSILE DEFENSE 
              CAPABILITIES.

    Upon approval by the Secretary of Defense, funds authorized to be 
appropriated for fiscal year 2008 for the use of the Department of 
Defense for research, development, test, and evaluation and available 
for the Missile Defense Agency may be used for the development and 
fielding of ballistic missile defense capabilities.

SEC. 232. 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 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. 233. 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. 234. SUBMITTAL OF PLANS FOR TEST AND EVALUATION OF THE OPERATIONAL 
              CAPABILITY OF THE BALLISTIC MISSILE DEFENSE SYSTEM.

    Section 234(a) of the National Defense 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) 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.''.

SEC. 235. 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 the status of the plans and agreements 
        of the Missile Defense Agency and the military departments on 
        the transition of missile defense programs to the military 
        departments.
            (4) An identification of the entity (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.

SEC. 236. TESTING AND OPERATIONS FOR MISSILE DEFENSE.

    (a) Additional Amount for Missile Defense Agency.--Of the amount 
authorized to be appropriated by section 201(4) for research, 
development, test, and evaluation for Defense-wide activities, the 
amount that is available for the Missile Defense Agency is hereby 
increased by $45,000,000.
    (b) Availability of Amount.--Of the amount authorized to be 
appropriated by section 201(4) for research, development, test, and 
evaluation for Defense-wide activities and available for the Missile 
Defense Agency, as increased by subsection (a), $45,000,000 may be 
available for Ballistic Missile Defense Midcourse Defense Segment (PE 
#63882C)--
            (1) to accelerate the ability to conduct concurrent test 
        and missile defense operations; and
            (2) to increase the pace of realistic flight testing of the 
        ground-based midcourse defense system.
    (c) Supplement.--Amounts available under subsection (b) for the 
program element referred to in that subsection are in addition to any 
other amounts available in this Act for that program element.
    (d) Offset.--The amount authorized to be appropriated by section 
421 for military personnel is hereby reduced by $45,000,000, due to 
unexpended obligations.

                       Subtitle D--Other Matters

SEC. 251. 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. 252. 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 Executives of the military departments''; 
                and
                    (B) by striking ``a program'' and inserting 
                ``programs''.
            (2) Conforming amendments.--(A) Subsection (b) of such 
        section is amended by striking ``The program'' and inserting 
        ``Any program''.
            (B) Subsection (d) of such section is amended--
                    (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, 2011''.
    (c) Modification of Reporting Requirement.--Subsection (e) of such 
section is amended to read as follows:
    ``(e) Annual Report.--(l) Not later than March 1 each year, the 
Secretary shall submit to the Committees on Armed Services of the 
Senate and the House of Representatives a report on the activities 
undertaken during the preceding fiscal year under the authority in 
subsection (a).
    ``(2) The report for a fiscal year under this subsection shall 
include the following:
            ``(A) A description of the proposed goals of the 
        competitions established under each program under subsection 
        (a), 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 analyses 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 each 
        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 each 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 each 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 each 
        program into an acquisition program of the Department.''.

SEC. 253. POLICIES AND PRACTICES ON TEST AND EVALUATION TO ADDRESS 
              EMERGING ACQUISITION APPROACHES.

    (a) Reports on Certain Determinations To Proceed Beyond Low-Rate 
Initial Production.--Section 2399(b) of title 10, United States Code, 
is amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following new 
        paragraph (5):
    ``(5) If, before a final decision is made within the Department of 
Defense to proceed with a major defense acquisition program beyond low-
rate initial production, a decision is made within the Department to 
proceed to operational use of the program or allocate funds available 
for procurement for the program, the Director shall submit to the 
Secretary of Defense and the congressional defense committees the 
report with respect to the program under paragraph (2) as soon as 
practicable after the decision under this paragraph is made.''.
    (b) Review and Revision of Policies and Practices.--
            (1) Review.--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 guide traditional acquisition programs; and
                    (B) determine how best to apply such 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 in light of emerging approaches to acquisitions, 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 time-
                certain development programs; and
                    (D) equipment that is not subject to the 
                operational test and evaluation requirements in section 
                2399 of title 10, United States Code, but which 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) Funding Matters.--The Director of the Defense 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 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) Time-Certain Development Program Defined.--In this section, the 
term ``time-certain development program'' means a development program 
that is assigned a specific length of time in which milestone events 
will be accomplished by contract, which length of time may be not more 
than 6 years from milestone B to initial operational capability.

SEC. 254. DEVELOPMENT OF THE PROPULSION SYSTEM FOR THE JOINT STRIKE 
              FIGHTER.

    (a) In General.--The Secretary of Defense shall provide for the 
development of the propulsion system for the F-35 fighter aircraft 
(commonly referred to as the ``Joint Strike Fighter'') by a means 
elected by the Secretary from among the following:
            (1) Through the continuing development and sustainment of 
        two interchangeable propulsion systems for the F-35 fighter 
        aircraft by two separate contractors throughout the life cycle 
        of the aircraft.
            (2) Through a one-time firm fixed price contract for a 
        selected propulsion system for the F-35 fighter aircraft for 
        the life cycle of the aircraft following the Initial Service 
        Release of the F-35 fighter aircraft propulsion system in 
        fiscal year 2008.
    (b) Notice of Change in Development.--The Secretary may not carry 
out any modification of the procurement program for the F-35 fighter 
aircraft that would result in the development of the propulsion system 
for such aircraft in a manner other than as elected by the Secretary 
under subsection (a) until the Secretary notifies the congressional 
defense committees of such modification.

SEC. 255. INDEPENDENT COST ANALYSES FOR JOINT STRIKE FIGHTER ENGINE 
              PROGRAM.

    (a) Cost Analyses.--
            (1) Analyses required.--The Secretary of Defense (acting 
        through the cost analysis improvement group of the Office of 
        the Secretary of Defense), a federally funded research and 
        development center (FFRDC) selected by the Secretary for 
        purposes of this section, and the Comptroller General of the 
        United States shall each perform three detailed and 
        comprehensive cost analyses of the engine program for the F-35 
        fighter aircraft (commonly referred to as the ``Joint Strike 
        Fighter'').
            (2) Elements.--Each official or entity performing cost 
        analyses under paragraph (1) shall perform a cost analysis of 
        each of the following:
                    (A) An alternative under which the F-35 fighter 
                aircraft is capable of using the F135 engine only.
                    (B) An alternative under which the F-35 fighter 
                aircraft is capable of using either the F135 engine or 
                the F136 engine.
                    (C) Any other alternative, whether secured through 
                a competitive or sole-source bidding process, that 
                would reduce cost, improve program schedule, and 
                improve performance and reliability of the F-35 fighter 
                aircraft program.
    (b) Reports.--
            (1) Reports required.--Not later than March 15, 2007, the 
        Secretary, the federally funded research and development center 
        selected under subsection (a), and the Comptroller General 
        shall each submit to the congressional defense committees a 
        report on the three independent cost analyses performed by such 
        official or entity under subsection (a).
            (2) Report elements.--Each report under paragraph (1) shall 
        include the following:
                    (A) A statement of the key assumptions utilized in 
                performing each cost analysis covered by such report.
                    (B) A discussion of the methodology and techniques 
                utilized in performing each cost analysis.
                    (C) For each alternative under subsection (a)(2)--
                            (i) a comparison of the life-cycle costs, 
                        including costs in current and constant dollars 
                        and a net-present-value analysis, with the 
                        other alternatives under that subsection; and
                            (ii) an estimate of--
                                    (I) the supply, maintenance, and 
                                other operations manpower required to 
                                support such alternative;
                                    (II) the number of flight hours 
                                required to achieve engine maturity, 
                                and the year in which engine maturity 
                                is anticipated to be achieved; and
                                    (III) the total number of engines 
                                anticipated to be procured over the 
                                lifetime of the F-35 fighter aircraft 
                                program.
                    (D) A discussion of the acquisition strategies used 
                for the acquisition of engines for other tactical 
                fighter aircraft, including the F-15, F-16, F-18, and 
                F-22 fighter aircraft, and an assessment of the 
                experience in terms of cost, schedule, and performance 
                under the acquisition programs for such engines.
                    (E) A comparison in terms of performance, savings, 
                maintainability, reliability, and technical innovation 
                of the acquisition programs for engines for tactical 
                fighter aircraft carried out on a sole-source basis 
                with the acquisition programs for tactical fighter 
                aircraft carried out on a competitive basis.
                    (F) Such conclusions and recommendations in light 
                of the cost analyses as the official or entity 
                submitting such report considers appropriate.
            (3) Certification of ffrdc and comptroller general.--In 
        submitting the report required by this subsection, the 
        federally funded research and development center and the 
        Comptroller General shall each also submit a certification as 
        to whether the federally funded research and development center 
        or the Comptroller General, as the case may be, had access to 
        sufficient information to enable the federally funded research 
        and development center or the Comptroller General, 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) the elements of costs that would be considered for a 
        life-cycle cost analysis for a major defense acquisition 
        program, such as 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. 256. SENSE OF SENATE ON TECHNOLOGY SHARING OF JOINT STRIKE FIGHTER 
              TECHNOLOGY.

    It is the sense of the Senate 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. 257. REPORT ON BIOMETRICS PROGRAMS OF THE DEPARTMENT OF DEFENSE.

    (a) Report.--The Secretary of Defense shall submit to Congress, at 
the same time as the submittal of the budget of the President for 
fiscal year 2008 (as submitted under section 1105(a) of title 31, 
United States Code) a report on the biometrics programs of the 
Department of Defense.
    (b) Elements.--The report shall address the following:
            (1) Whether the Department should modify the current 
        executive agent management structure for the biometrics 
        programs.
            (2) The requirements for the biometrics programs to meet 
        needs throughout the Department of Defense.
            (3) A description of programs currently fielded to meet 
        requirements in Iraq and Afghanistan.
            (4) An assessment of the adequacy of fielded programs to 
        meet operational requirements.
            (5) An assessment of programmatic or capability gaps in 
        meeting future requirements.
            (6) The actions being taken within the Executive Branch to 
        coordinate and integrate requirements, programs, and resources 
        among the departments and agencies of the Executive Branch with 
        a role in using or developing biometrics capabilities.
    (c) Biometrics Defined.--In this section, the term ``biometrics'' 
means an identity management program or system that utilizes distinct 
personal attributes, including DNA, facial features, irises, retinas, 
signatures, or voices, to identify individuals.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for expenses, not otherwise provided for, for 
operation and maintenance, in amounts as follows:
            (1) For the Army, $24,795,580,000.
            (2) For the Navy, $31,130,784,000.
            (3) For the Marine Corps, $3,905,262,000.
            (4) For the Air Force, $31,251,107,000.
            (5) For Defense-wide activities, $20,106,756,000.
            (6) For the Army Reserve, $2,139,702,000.
            (7) For the Naval Reserve, $1,288,764,000.
            (8) For the Marine Corps Reserve, $211,911,000.
            (9) For the Air Force Reserve, $2,575,100,000.
            (10) For the Army National Guard, $4,857,728,000.
            (11) For the Air National Guard, $5,318,717,000.
            (12) For the United States Court of Appeals for the Armed 
        Forces, $11,721,000.
            (13) For Environmental Restoration, Army, $463,794,000.
            (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 the Overseas Contingency Operations Transfer Fund, 
        $10,000,000.
            (19) For Cooperative Threat Reduction programs, 
        $372,128,000.
            (20) 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, $1,364,498,000.
            (2) For the National Defense Sealift Fund, $1,071,932,000.

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, 
$20,915,321,000, of which--
            (1) $20,381,863,000 is for Operation and Maintenance;
            (2) $135,603,000 is for Research, Development, Test, and 
        Evaluation; and
            (3) $397,855,000 is for Procurement.
    (b) Chemical Agents and Munitions Destruction, Defense.--
            (1) In general.--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.
            (2) Availability.--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, 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 2007 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 2007 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--Program Requirements, Restrictions, and Limitations

SEC. 311. LIMITATION ON AVAILABILITY OF FUNDS FOR THE ARMY LOGISTICS 
              MODERNIZATION PROGRAM.

    Of the funds authorized to be appropriated for the Department of 
Defense by this division and available for the Army Logistics 
Modernization Program (LMP), not more than $6,900,000 may be obligated 
or expended for the development, fielding, or operation of the program 
until the Chairman of the Defense Business Systems Modernization 
Committee certifies to the congressional defense committees each of the 
following:
            (1) That the program is essential to the national security 
        of the United States or to the efficient management of the 
        Department of Defense.
            (2) That there is no alternative to the system under the 
        program which will provide equal or greater capability at a 
        lower cost.
            (3) That the estimated costs, and the proposed schedule and 
        performance parameters, for the program and system are 
        reasonable.
            (4) That the management structure for the program is 
        adequate to manage and control program costs.

SEC. 312. AVAILABILITY OF 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, $3,000,000 may be available to the Secretary 
of the Army for education and training purposes to contract with the 
Army Historical Foundation for the acquisition, installation, and 
maintenance of exhibits at the facility designated by the Secretary as 
the National Museum of the United States Army.
    (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, $3,000,000 may be available to the Secretary 
of the Navy for education and training purposes to contract with the 
Naval Historical Foundation for the acquisition, installation, and 
maintenance of exhibits at the facility designated by the Secretary as 
the National Museum of the United States Navy.
    (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, $3,000,000 may be 
available to the Secretary of the Navy for education and training 
purposes to contract with the United States Marine Corps Heritage 
Foundation for the acquisition, installation, and maintenance of 
exhibits at the National Museum of the Marine Corps and Heritage 
Center.
    (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, $3,000,000 may be available to the 
Secretary of the Air Force for education and training purposes to 
contract with the Air Force Museum Foundation 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.
    (e) Reimbursement.--
            (1) Authority to accept reimbursement.--During any fiscal 
        year after fiscal year 2006, the Secretary of a military 
        department may accept from any non-profit entity authorized to 
        support the national museum of the applicable Armed Force 
        amounts to reimburse such Secretary for amounts obligated and 
        expended by such Secretary from amounts available to such 
        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 incurred by the Secretary of the military 
        department concerned under this section. Amounts so credited 
        shall be merged with amounts in such account, and shall be 
        available for the same purposes, and subject to the same 
        conditions and limitations, as amounts in such account.

SEC. 313. 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.

SEC. 314. LIMITATION ON AVAILABILITY OF OPERATION AND MAINTENANCE FUNDS 
              FOR THE MANAGEMENT HEADQUARTERS OF THE DEFENSE 
              INFORMATION SYSTEMS AGENCY.

    Of the amount authorized to be appropriated by this title and 
available for purposes of the operation and maintenance of the 
management headquarters of the Defense Information Systems Agency, not 
more than 50 percent may be available for such purposes until the 
Secretary of Defense submits to Congress the report on the acquisition 
strategy of the Department of Defense for commercial satellite 
communications services required by section 818(b) of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-136; 119 
Stat. 3385).

SEC. 315. 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. 316. INFANTRY COMBAT EQUIPMENT.

    Of the amount authorized to be appropriated by section 301(8) for 
operation and maintenance for the Marine Corps Reserve, $2,500,000 may 
be available for Infantry Combat Equipment (ICE).

SEC. 317. INDIVIDUAL FIRST AID KIT.

    Of the amount authorized to be appropriated by section 301(8) for 
operation and maintenance for the Marine Corps Reserve, $1,500,000 may 
be available for the Individual First Aid Kit (IFAK).

SEC. 318. READING FOR THE BLIND AND DYSLEXIC PROGRAM OF THE DEPARTMENT 
              OF DEFENSE.

    (a) Defense Dependents.--Of the amount authorized to be 
appropriated by section 301(5) for operation and maintenance for 
Defense-wide activities, $500,000 may be available for the Reading for 
the Blind and Dyslexic program of the Department of Defense for defense 
dependents of elementary and secondary school age in the continental 
United States and overseas.
    (b) Severely Wounded or Injured Members of the Armed Forces.--Of 
the amount authorized to be appropriated by section 1405(5) for 
operation and maintenance for Defense-wide activities, $500,000 may be 
available for the Reading for the Blind and Dyslexic program of the 
Department of Defense for severely wounded or injured members of the 
Armed Forces.

SEC. 319. MILITARY TRAINING INFRASTRUCTURE IMPROVEMENTS AT VIRGINIA 
              MILITARY INSTITUTE.

    Of the amount authorized to be appropriated by section 301(1) for 
operation and maintenance for the Army, $2,900,000 may be available to 
the Virginia Military Institute for military training infrastructure 
improvements to provide adequate field training of all Armed Forces 
Reserve Officer Training Corps.

SEC. 320. ENVIRONMENTAL DOCUMENTATION FOR BEDDOWN OF F-22A AIRCRAFT AT 
              HOLLOMAN AIR FORCE BASE, NEW MEXICO.

    The Secretary of the Air Force shall prepare environmental 
documentation per the requirements of the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.) for the beddown of F-22A aircraft 
at Holloman Air Force Base, New Mexico, as replacements for the 
retiring F-117A aircraft.

                  Subtitle C--Environmental Provisions

SEC. 331. RESPONSE PLAN FOR REMEDIATION OF MILITARY MUNITIONS.

    (a) Performance Goals for Remediation.--The Department of Defense 
shall set the following remediation goals:
            (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.
            (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.
            (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 time certain established by the 
        Secretary, 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.--(A) The Secretary shall, not later than March 
        15 of 2008, 2009, and 2010, submit to the congressional defense 
        committees an update of the plan required under paragraph (1). 
        Each update may be included in the report on environmental 
        restoration activities submitted to Congress under section 
        2706(a) of title 10, United States Code, that is submitted in 
        the year in which such update is submitted.
            (B) The Secretary may include in an update submitted under 
        subparagraph (A) 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 plan).
    (d) Definitions.--In this section, the terms ``unexploded 
ordnance'', ``discarded military munitions'', ``munitions 
constituents'', ``operational range'', and ``defense site'' have the 
meaning given such terms in section 2710(e) of title 10, United States 
Code.
    (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. 332. 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 1 
        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 grant an exemption 
                pursuant to subparagraph (B) for a period of up to 3 
                years 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.''.
    (b) 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 polychlorinated biphenyls 
generated by or 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 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--
                    (A) reducing the volume of polychlorinated 
                biphenyls generated by or 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 polychlorinated 
                biphenyls.

SEC. 333. RESEARCH ON EFFECTS OF OCEAN DISPOSAL OF MUNITIONS.

    (a) Identification of Disposal Sites.--
            (1) Historical review.--The Secretary of Defense, in 
        cooperation with the Commandant of the Coast Guard, the 
        Administrator of the National Oceanic and Atmospheric 
        Administration, and the heads of other relevant Federal 
        agencies, 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) Interim reports.--The Secretary of Defense 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.
            (3) 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.
            (4) 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.--
            (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) 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 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:
            (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 ``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. 334. CLARIFICATION OF MULTI-YEAR AUTHORITY TO USE BASE CLOSURE 
              FUNDS TO FUND COOPERATIVE AGREEMENTS UNDER ENVIRONMENTAL 
              RESTORATION PROGRAM.

    Section 2701 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 agreements funded through the Department of Defense Base 
Closure Account 1990 or the Department of Defense Base Closure Account 
2005 established by sections 2906 and 2906A, respectively, 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).''.

SEC. 335. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR CERTAIN 
              COSTS IN CONNECTION WITH MOSES LAKE WELLFIELD SUPERFUND 
              SITE, MOSES LAKE, WASHINGTON.

    (a) Authority To Reimburse.--(1) 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) 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) 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.

                          Subtitle D--Reports

SEC. 351. COMPTROLLER GENERAL REPORT ON READINESS OF THE GROUND FORCES 
              OF THE ARMY AND THE MARINE CORPS.

    (a) Report Required.--
            (1) In general.--Not later than March 1, 2007, the 
        Comptroller General of the United States shall submit to the 
        congressional defense committees 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 include 
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 years preceding the 
        report, 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 requirement 
        for repair or replacement of equipment of the Army and the 
        Marine Corps due to ongoing operations, and the impact 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--
                    (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. 352. NATIONAL ACADEMY OF SCIENCES STUDY ON HUMAN EXPOSURE TO 
              CONTAMINATED DRINKING WATER AT CAMP LEJEUNE, NORTH 
              CAROLINA.

    (a) Study Required.--
            (1) In general.--Not later than 60 days after the date of 
        the enactment of this Act, the Secretary of 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) 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 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.

SEC. 353. REPORT ON AERIAL TRAINING AIRSPACE REQUIREMENTS OF THE 
              DEPARTMENT OF DEFENSE.

    (a) Findings.--Congress makes the following findings:
            (1) Access to and use of available and unfettered aerial 
        training airspace is critical for preserving aircrew 
        warfighting proficiency and the ability to test, evaluate, and 
        improve capabilities of both personnel and equipment within the 
        most realistic training environments possible.
            (2) The growth of civilian and commercial aviation traffic 
        and the rapid expansion of commercial and general air traffic 
        lanes across the continental United States has left few 
        remaining areas of the country available for realistic air 
        combat training or expansion of existing training areas.
            (3) Many Military Operating Areas (MOAs) originally 
        established in what was once open and uncongested airspace are 
        now encroached upon by a heavy volume of commercial and general 
        air traffic, making training more difficult and potentially 
        hazardous.
            (4) Some aerial training areas in the upper great plains, 
        western States, and Gulf coast remain largely free from 
        encroachment and available for increased use, expansion, and 
        preservation for the future.
    (b) Sense of Congress.--It is the sense of Congress that the 
Department of Defense should--
            (1) establish a policy to identify military aerial training 
        areas that are projected to remain viable and free from 
        encroachment well into the 21st century;
            (2) determine aerial training airspace requirements to meet 
        future training and airspace requirements of current and next 
        generation military aircraft; and
            (3) undertake all necessary actions in a timely manner, 
        including coordination with the Federal Aviation 
        Administration, to preserve and, if necessary, expand those 
        areas of airspace to meet present and future training 
        requirements.
    (c) Report.--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 setting forth a proposed plan 
to preserve and, if necessary, expand available aerial training 
airspace to meet the projected needs of the Department of Defense for 
such airspace through 2025.

SEC. 354. REPORT ON ACTIONS TO REDUCE DEPARTMENT OF DEFENSE CONSUMPTION 
              OF PETROLEUM-BASED FUEL.

    (a) Report Required.--Not later than one year 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 actions taken, and to be taken, by the 
Department of Defense to reduce the consumption by the Department of 
petroleum-based fuel.
    (b) Elements.--The report shall include the status of 
implementation by the Department of the requirements of the following:
            (1) The Energy Policy Act of 2005 (Public Law 109-58).
            (2) The Energy Policy Act of 1992. (Public Law 102-486)
            (3) Executive Order 13123.
            (4) Executive Order 13149.
            (5) Any other law, regulation, or directive relating to the 
        consumption by the Department of petroleum-based fuel.

SEC. 355. REPORTS ON WITHDRAWAL OR DIVERSION OF EQUIPMENT FROM RESERVE 
              UNITS FOR SUPPORT OF RESERVE UNITS BEING MOBILIZED AND 
              OTHER UNITS.

    (a) Findings.--Congress makes the following findings:
            (1) The National Guard continues to provide invaluable 
        resources to meet national security, homeland defense, and 
        civil emergency mission requirements.
            (2) Current military operations, transnational threats, and 
        domestic emergencies will increase the use of the National 
        Guard for both military support to civilian authorities and to 
        execute the military strategy of the United States.
            (3) To meet the demand for certain types of equipment for 
        continuing United States military operations, the Army has 
        required Army National Guard Units to leave behind many items 
        for use by follow-on forces.
            (4) The Governors of every State and 2 Territories 
        expressed concern in February 2006 that units returning from 
        deployment overseas without adequate equipment would have 
        trouble carrying out their homeland security and domestic 
        disaster duties.
            (5) The Department of Defense estimates that it has 
        directed the Army National Guard to leave overseas more than 
        75,000 items valued at approximately $1,760,000,000 to support 
        Operation Enduring Freedom and Operation Iraqi Freedom.
            (6) Department of Defense Directive 1225.6 requires a 
        replacement and tracking plan be developed within 90 days for 
        equipment of the reserve components of the Armed Forces that is 
        transferred to the active components of the Armed Forces.
            (7) In October 2005, the Government Accountability Office 
        found that the Department of Defense can only account for about 
        45 percent of such equipment and has not developed a plan to 
        replace such equipment.
            (8) The Government Accountability Office also found that 
        without a completed and implemented plan to replace all 
        National Guard equipment left overseas, Army National Guard 
        units will likely face growing equipment shortages and 
        challenges in regaining readiness for future missions.
    (b) Reports on Withdrawal or Diversion of Equipment From Reserve 
Units for Support of Reserve Units Being Mobilized and Other Units.--
            (1) In general.--Chapter 1007 of title 10, United States 
        Code, is amended by inserting after section 10208 the following 
        new section:
``Sec. 10208a. Mobilization: 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 withdrawing or diverting equipment from a unit 
of the Reserve to a unit of the Reserve being ordered to active duty 
under section 12301, 12302, or 12304 of this title, or to a unit or 
units of a regular component of the armed forces, for purposes of the 
discharge of the mission of such unit or units, the Secretary concerned 
shall submit to the Secretary of Defense a status report on the 
withdrawal or diversion of equipment.
    ``(b) Elements.--Each status report under subsection (a) on 
equipment withdrawn or diverted shall include the following:
            ``(1) A plan to recapitalize or replace such equipment 
        within the unit from which withdrawn or diverted.
            ``(2) If such equipment is to remain in a theater of 
        operations while the unit from which withdrawn or diverted 
        returns to the United States, a plan to provide such unit with 
        recapitalized or replacement equipment appropriate to ensure 
        the continuation of the readiness training of such unit.
            ``(3) A signed memorandum of understanding between the 
        active or reserve component to which withdrawn or diverted and 
        the reserve component from which withdrawn or diverted that 
        specifies--
                    ``(A) how such equipment will be tracked; and
                    ``(B) when such equipment will be returned to the 
                component from which withdrawn or diverted.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 1007 of such title is amended by inserting 
        after the item relating to section 10208 the following new 
        item:

``10208a. Mobilization: reports on withdrawal or diversion of equipment 
                            from Reserve units for support of Reserve 
                            units being mobilized and other units.''.

SEC. 356. PLAN TO REPLACE EQUIPMENT WITHDRAWN OR DIVERTED FROM THE 
              RESERVE COMPONENTS OF THE ARMED FORCES FOR OPERATION 
              IRAQI FREEDOM OR OPERATION ENDURING FREEDOM.

    (a) Plan Required.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary shall submit to the congressional 
defense committees a plan to replace equipment withdrawn or diverted 
from units of the reserve components of the Armed Forces for use in 
Operation Iraqi Freedom or Operation Enduring Freedom.
    (b) Elements.--The plan required by subsection (a) shall--
            (1) identify the equipment to be recapitalized or acquired 
        to replace the equipment described in subsection (a);
            (2) specify a schedule for recapitalizing or acquiring the 
        equipment identified under paragraph (1), which schedule shall 
        take into account applicable depot workload and acquisition 
        considerations, including production capacity and current 
        production schedules; and
            (3) specify the funding to be required to recapitalize or 
        acquire the equipment identified under paragraph (1).

SEC. 357. PLAN TO REPLACE EQUIPMENT WITHDRAWN OR DIVERTED FROM THE 
              RESERVE COMPONENTS OF THE ARMED FORCES FOR OPERATION 
              IRAQI FREEDOM OR OPERATION ENDURING FREEDOM.

    (a) Plan Required.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary shall submit to the congressional 
defense committees a plan to replace equipment withdrawn or diverted 
from units of the reserve components of the Armed Forces for use in 
Operation Iraqi Freedom or Operation Enduring Freedom.
    (b) Elements.--The plan required by subsection (a) shall--
            (1) identify the equipment to be recapitalized or acquired 
        to replace the equipment described in subsection (a);
            (2) specify a schedule for recapitalizing or acquiring the 
        equipment identified under paragraph (1), which schedule shall 
        take into account applicable depot workload and acquisition 
        considerations, including production capacity and current 
        production schedules; and
            (3) specify the funding to be required to recapitalize or 
        acquire the equipment identified under paragraph (1).

SEC. 358. REPORT ON VEHICLE-BASED ACTIVE PROTECTION SYSTEMS FOR CERTAIN 
              BATTLEFIELD THREATS.

    (a) 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 in to 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).

SEC. 359. REPORT ON HIGH ALTITUDE AVIATION TRAINING SITE, EAGLE COUNTY, 
              COLORADO.

    (a) Report Required.--Not later than December 15, 2006, the 
Secretary of the Army shall submit to the congressional defense 
committees a report on the High Altitude Aviation Training Site (HAATS) 
in Eagle County, Colorado.
    (b) Elements.--The report required by subsection (a) shall include 
the following:
            (1) A description of the type of high altitude aviation 
        training being conducted at the High Altitude Aviation Training 
        Site, including the number of pilots who receive such training 
        on an annual basis and the types of aircraft used in such 
        training.
            (2) A description of the number and type of helicopters 
        required at the High Altitude Aviation Training Site to provide 
        the high altitude aviation training needed to sustain the war 
        strategies contained in the 2006 Quadrennial Defense Review, 
        assuming that priority is afforded in the provision of such 
        training to commanders, instructor pilots, aviation safety 
        officers, and deploying units.
            (3) A thorough evaluation of accident rates for deployed 
        helicopter pilots of the Army who receive high altitude 
        aviation training at the High Altitude Aviation Training Site, 
        and accident rates for deployed Army helicopter pilots who did 
        not receive such training, including the following:
                    (A) An estimate (set forth as a range) of the 
                number of accidents attributable to power management.
                    (B) The number of accidents occurring in a combat 
                environment.
                    (C) The number of accidents occurring in a non-
                combat environment.
            (4) An evaluation of the inventory and availability of Army 
        aircraft for purposes of establishing an appropriate schedule 
        for the assignment of a CH-47 aircraft to the High Altitude 
        Aviation Training Site, if the Chief of Staff of the Army 
        determines there is value in conducting such training at the 
        HAATS.
            (5) A description of the status of any efforts to ensure 
        that all helicopter aircrews deployed to the area of 
        responsibility of the Central Command (CENTCOM AOR) are 
        qualified in mountain flight and power management prior to 
        deployment, including the locations where such training 
        occurred, with particular focus on the status of such efforts 
        with respect to aircrews to be deployed in support of Operation 
        Enduring Freedom.
    (c) Tracking System.--The Secretary shall implement a system for 
tracking those pilots that have attended a school with an established 
program of instruction for high altitude aviation operations training. 
The system should, if practical, utilize an existing system that 
permits the query of pilot flight experience and training.

SEC. 360. 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 by subsection (a) shall include 
the following:
            (1) A description of the Air Force flying operations at 
        Pueblo Memorial Airport.
            (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 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 alternatives for Air 
        Force flying operations at Pueblo Memorial Airport, including 
        the cost and availability of such alternatives.
            (6) 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 required, the Air Force plan to 
        provide the funds to the city.

SEC. 360A. REPORT ON USE OF ALTERNATIVE FUELS BY THE DEPARTMENT OF 
              DEFENSE.

    (a) Study.--The Secretary of Defense shall conduct a study on the 
use of alternative fuels by the Armed Forces and the Defense Agencies, 
including any measures that can be taken to increase the use of such 
fuels by the Department of Defense and the Defense Agencies.
    (b) Elements.--The study shall address each matter set forth in 
paragraphs (1) through (7) of section 357(b) of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 
3207) with respect to alternative fuels (rather than to the fuels 
specified in such paragraphs).
    (c) Report.--
            (1) In general.--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 study conducted under this 
        section.
            (2) Manner of submittal.--The report required by this 
        subsection may be incorporated into, or provided as an annex 
        to, the study required by section 357(c) of the National 
        Defense Authorization Act for Fiscal Year 2006.
    (d) Alternative Fuels Defined.--In this section, the term 
``alternative fuels'' means biofuels, biodiesel, renewable diesel, 
ethanol that contain less than 85 percent ethyl alcohol, and cellulosic 
ethanol.

                 Subtitle E--Workplace and Depot Issues

SEC. 361. MINIMUM CAPITAL INVESTMENT LEVELS FOR PUBLIC DEPOTS SERVICED 
              BY WORKING CAPITAL FUNDS.

    (a) Minimum Investment Levels.--Section 2208 of title 10, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(s) Minimum Capital Investment for Public Depots Serviced by 
Working Capital Funds.--(1) Each public depot that is serviced by a 
working capital fund shall invest in its capital budget each fiscal 
year an amount equal to not less than six percent of the actual total 
revenue of the public depot for the previous fiscal year.
    ``(2) The Secretary of Defense may waive the requirement in 
paragraph (1) with respect to a particular public depot for a fiscal 
year if the Secretary determines that the waiver is necessary for 
reasons of national security and notifies the congressional defense 
committees of the reasons for the waiver.
    ``(3)(A) Each year, not later than 45 days after the President 
submits to Congress the budget for a fiscal year under section 1105 of 
title 31, the Secretary shall submit to the congressional defense 
committees budget justification documents summarizing the level of 
capital investment at each public depot serviced by working capital 
funds as of the end of the previous fiscal year.
    ``(B) Each report under this paragraph shall include the following:
            ``(i) A specification of the statutory, regulatory, or 
        operational impediments, if any, to achieving the requirement 
        in paragraph (1) with respect to each public depot described in 
        that paragraph.
            ``(ii) A description of the benchmarks established by each 
        public depot and working capital fund for capital investment 
        and the relationship of the benchmarks to applicable 
        performance measurement methods used in the private sector.
            ``(iii) If the requirement set out in paragraph (1) is not 
        met for any public depot in the previous fiscal year, a 
        statement of the reasons why and a plan of actions to meet the 
        requirement for such public depot in the fiscal year beginning 
        in the year in which such report is submitted.
    ``(4) In this subsection, the terms `total revenue' and `capital 
budget' have the meaning given such terms in Department of Defense 
Financial Management Regulation 7000.14-R of June 2004.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act, and shall apply with 
respect to fiscal years beginning on or after that date.

SEC. 362. PERMANENT EXCLUSION OF CERTAIN CONTRACT EXPENDITURES FROM 
              PERCENTAGE LIMITATION ON THE PERFORMANCE OF DEPOT-LEVEL 
              MAINTENANCE.

    Section 2474(f)(1) of title 10, United States Code, is amended by 
striking ``entered into during fiscal years 2003 through 2009''.

SEC. 363. ADDITIONAL EXCEPTION TO PROHIBITION ON CONTRACTOR PERFORMANCE 
              OF FIREFIGHTING FUNCTIONS.

    Section 2465(b) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(5) A contract for the performance of firefighting 
        functions to--
                    ``(A) fight wildland fires such as range or forest 
                fires; and
                    ``(B) perform wildland fire management, including 
                the conduct of hazardous fuels treatments to reduce 
                wildland fire risks (including prescribed fire and 
                mechanical treatments).''.

SEC. 364. TEMPORARY SECURITY GUARD SERVICES FOR CERTAIN WORK CAUSED BY 
              REALIGNMENT OF MILITARY INSTALLATIONS UNDER THE BASE 
              CLOSURE LAWS.

    (a) Authority for Temporary Services.--Notwithstanding section 2465 
of title 10, United States Code, the Secretary of the military 
department concerned may, for a period not to exceed one year at any 
single military installation, contract for security guard services at 
military installations approved for realignment under a base closure 
law when such services are required for the safe and secure relocation 
of either of the following:
            (1) Military munitions and munitions-related equipment.
            (2) High-value items in temporary storage areas.
    (b) Definitions.--In this section:
            (1) The term ``base closure law'' has the meaning given 
        such term in section 101(a)(17) of title 10, United States 
        Code.
            (2) The term ``military munitions'' has the meaning given 
        such term in section 101(e)(4) of title 10, United States Code.
    (c) Expiration.--The authority to enter into a contract under 
subsection (a) shall expire on September 15, 2011.

                       Subtitle F--Other Matters

SEC. 371. RECYCLING OF MILITARY MUNITIONS.

    (a) In General.--Chapter 443 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 4690. Sale of recyclable munitions materials
    ``(a) Authority for Program.--(1) The Secretary of the Army may 
carry out a program to--
            ``(A) sell recyclable munitions materials resulting from 
        the demilitarization of conventional military munitions; and
            ``(B) use the proceeds of sale for reclamation, recycling, 
        and reuse of conventional military munitions.
    ``(2) The program authorized by this section may be known as the 
`Military Munitions Recycling Program'.
    ``(b) Geographic Limitation.--The program authorized by subsection 
(a) may only be carried out in the United States and its possessions.
    ``(c) Method of Sale.--(1) Except as provided in paragraph (2), the 
Secretary shall use competitive procedures to sell recyclable munitions 
materials under the program authorized by this section.
    ``(2) The Secretary may use procedures other than competitive 
procedures to sell recyclable munitions materials under the program 
authorized by this section in any case in which the Secretary 
determines there is only one potential buyer of the items being offered 
for sale.
    ``(3) The provisions of title 40 concerning disposal of property 
are not applicable to sales of materials under the program authorized 
by this section.
    ``(d) Use of Proceeds.--(1) Proceeds from the sale of recyclable 
munitions materials under the program authorized by this section shall 
be credited to the Ammunition Demilitarization Account within the 
Procurement of Ammunition, Army, Account.
    ``(2) Amounts credited to the Ammunition Demilitarization Account 
under paragraph (1) shall be available solely for purposes of 
reclamation, recycling, and reuse of conventional military munitions, 
including for research and development for such purposes and for the 
procurement of equipment for such purposes.
    ``(3) Funds credited to the Ammunition Demilitarization Account 
under paragraph (1) in a fiscal year shall be available for obligation 
under paragraph (2) during the fiscal year in which the funds are so 
credited and for three fiscal years thereafter.
    ``(4) Funds credited to the Ammunition Demilitarization Account 
under paragraph (1) that are not obligated under paragraph (2) within 
the period of availability under paragraph (3) shall, at the end of 
such period, be deposited into the Treasury as miscellaneous receipts.
    ``(e) Regulations.--The Secretary shall prescribe regulations on 
the operation of the program authorized by this section. The 
regulations shall be consistent with the Solid Waste Disposal Act (42 
U.S.C. 6901 et seq.) and any regulations prescribed thereunder.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 443 of such title is amended by adding at the end the following 
new item:

``4690. Sale of recyclable munitions materials.''.

SEC. 372. INCENTIVES CLAUSES IN CHEMICAL DEMILITARIZATION CONTRACTS.

    (a) In General.--
            (1) Authority to include clauses in contracts.--The 
        Secretary of Defense may, for the purpose specified in 
        paragraph (2), authorize the inclusion of an incentives clause 
        in any contract for the destruction of the United States 
        stockpile of lethal chemical agents and munitions carried out 
        pursuant to section 1412 of the Department of Defense 
        Authorization Act, 1986 (50 U.S.C. 1521).
            (2) Purpose.--The purpose of a clause referred to in 
        paragraph (1) is to provide the contractor for a chemical 
        demilitarization facility an incentive to accelerate the safe 
        elimination of the United States chemical weapons stockpile and 
        to reduce the total cost of the Chemical Demilitarization 
        Program by providing incentive payments for the early 
        completion of destruction operations and the closure of such 
        facility.
    (b) Incentives Clauses.--
            (1) In general.--An incentives clause under this section 
        shall permit the contractor for the chemical demilitarization 
        facility concerned the opportunity to earn incentive payments 
        for the completion of destruction operations and facility 
        closure activities within target incentive ranges specified in 
        such clause.
            (2) Limitation on incentive payments.--The maximum 
        incentive payment under an incentives clause with respect to a 
        chemical demilitarization facility may not exceed amounts as 
        follows:
                    (A) In the case of an incentive payment for the 
                completion of destruction operations within the target 
                incentive range specified in such clause, $110,000,000.
                    (B) In the case of an incentive payment for the 
                completion of facility closure activities within the 
                target incentive range specified in such clause, 
                $55,000,000.
            (3) Target ranges.--An incentives clause in a contract 
        under this section shall specify the target incentive ranges of 
        costs for completion of destruction operations and facility 
        closure activities, respectively, as jointly agreed upon by the 
        contracting officer and the contractor concerned. An incentives 
        clause shall require a proportionate reduction in the maximum 
        incentive payment amounts in the event that the contractor 
        exceeds an agreed-upon target cost if such excess costs are the 
        responsibility of the contractor.
            (4) Calculation of incentive payments.--The amount of the 
        incentive payment earned by a contractor for a chemical 
        demilitarization facility under an incentives clause under this 
        section shall be based upon a determination by the Secretary on 
        how early in the target incentive range specified in such 
        clause destruction operations or facility closure activities, 
        as the case may be, are completed.
            (5) Consistency with existing obligations.--The provisions 
        of any incentives clause under this section shall be consistent 
        with the obligation of the Secretary of Defense under section 
        1412(c)(1)(A) of the Department of Defense Authorization Act, 
        1986 to provide for maximum protection for the environment, the 
        general public, and the personnel who are involved in the 
        destruction of the lethal chemical agents and munitions.
            (6) Additional terms and conditions.--In negotiating the 
        inclusion of an incentives clause in a contract under this 
        section, the Secretary may include in such clause such 
        additional terms and conditions as the Secretary considers 
        appropriate.
    (c) Additional Limitation on Payments.--
            (1) Payment conditional on performance.--No payment may be 
        made under an incentives clause under this section unless the 
        Secretary determines that the contractor concerned has 
        satisfactorily performed its duties under such incentives 
        clause.
            (2) Payment contingent on appropriations.--An incentives 
        clause under this section shall specify that the obligation of 
        the Government to make payment under such incentives clause is 
        subject to the availability of appropriations for that purpose. 
        Amounts appropriated for Chemical Agents and Munitions 
        Destruction, Defense, shall be available for payments under 
        incentives clauses under this section.

SEC. 373. 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 (Public Law 108-136; 117 Stat. 1449), as amended by section 341 of 
the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 
2005 (Public Law 108-375; 118 Stat. 1857), is further amended by 
striking ``terminate on September 30, 2006'' and inserting ``terminate 
with respect to a contingency operation 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
            (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 ``The''; and
            (2) by adding at the end the following new sentence: ``As 
        soon as possible after the date of the enactment of the 
        National Defense Authorization Act for Fiscal Year 2007, the 
        Secretary shall extend such telecommunications benefit to 
        members of the Armed Forces who, although no longer covered by 
        the preceding sentence, 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 congressional defense committees 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. 374. 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. 375. ENERGY EFFICIENCY IN WEAPONS PLATFORMS.

    (a) 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:
                    (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. 376. CHEMICAL DEMILITARIZATION PROGRAM CONTRACTING AUTHORITY.

    (a) Multiyear Contracting Authority.--The Secretary of Defense may 
carry out responsibilities under section 1412(a) of the Department of 
Defense Authorization Act, 1986 (Public Law 99-145; 50 U.S.C. 1521(a)) 
through multiyear contracts entered into before the date of the 
enactment of this Act.
    (b) Availability of Funds.--Contracts entered into under subsection 
(a) shall be funded through annual appropriations for the destruction 
of chemical agents and munitions.

SEC. 377. 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, 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. 378. PREPOSITIONING OF DEPARTMENT OF DEFENSE ASSETS TO IMPROVE 
              SUPPORT TO CIVILIAN AUTHORITIES.

    (a) Prepositioning Authorized.--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 Department of Defense 
support to civilian authorities.
    (b) Reimbursement.--To the extent required by section 1535 of title 
31, United States Code (popularly known as the ``Economy Act''), or 
other applicable law, the Secretary shall require reimbursement of the 
Department of Defense for costs incurred in the prepositioning of basic 
response assets under subsection (a).
    (c) Limitation.--Basic response assets may not be prepositioned 
under subsection (a) if the prepositioning of such assets will 
adversely affect the military preparedness of the United States.
    (d) Procedures and Guidelines.--The Secretary may develop 
procedures and guidelines applicable to the prepositioning of basic 
response assets under this section.

SEC. 379. RECOVERY AND AVAILABILITY TO CORPORATION FOR THE PROMOTION OF 
              RIFLE PRACTICE AND FIREARMS SAFETY OF CERTAIN FIREARMS, 
              AMMUNITION, AND PARTS.

    (a) In General.--Subchapter II of chapter 407 of title 36, United 
States Code, is amended by inserting after the item relating to section 
40728 the following new section:
``Sec. 40728A. Recovery and availability of excess firearms, 
              ammunition, and parts granted to foreign countries
    ``(a) Recovery.--The Secretary of the Army may recover from any 
country to which a grant of rifles, ammunition, repair parts, or other 
supplies described in section 40731(a) of this title is made under 
section 505 of the Foreign Assistance Act of 1961 (22 U.S.C. 2314) any 
such rifles, ammunition, repair parts, or supplies that are 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.--Any rifles, ammunition, repair parts, or 
supplies recovered under subsection (a) shall be available for transfer 
to the corporation in accordance with the provisions of 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 
chapter 407 of such title is amended by inserting after the item 
relating to section 40728 the following new item:

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

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    The Armed Forces are authorized strengths for active duty personnel 
as of September 30, 2007, as follows:
            (1) The Army, 512,400.
            (2) The Navy, 340,700.
            (3) The Marine Corps, 180,000.
            (4) The Air Force, 334,200.

SEC. 402. REPEAL OF REQUIREMENT FOR PERMANENT END STRENGTH LEVELS TO 
              SUPPORT TWO MAJOR REGIONAL CONTINGENCIES.

    (a) Repeal.--Section 691 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 39 of such title is amended by striking the item relating to 
section 691.

                       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
            (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, 13,206.
            (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.
    (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 
$112,043,468,000. 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.

    Section 528 of title 10, United States Code, is amended by adding 
at the end the following new subsections:
    ``(e) 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 by any officer or employee of the 
        Department of Defense, except as directed by the Secretary or 
        the Secretary's designee concerning reassignment from such 
        position; and
            ``(2) shall 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.
    ``(f) Effect of Appointment.--Except as provided in subsection (e), 
the appointment of an officer of the Armed Forces to a position covered 
by this section shall not affect the status, position, rank, or grade 
of such officer in the Armed Forces, or any emolument, perquisite, 
right, privilege, or benefit incident to or arising out of such status, 
position, rank, or grade.
    ``(g) Military Pay and Allowances.--(1) An officer of the Armed 
Forces on active duty who is appointed to a 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 shall be reimbursed from the following:
            ``(A) Funds available to the Director of the Central 
        Intelligence Agency, for positions within the Central 
        Intelligence Agency.
            ``(B) Funds available to the Director of National 
        Intelligence, for positions within the Office of the Director 
        of National Intelligence.''.

SEC. 502. 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''.

SEC. 503. EXTENSION OF AGE LIMITS FOR ACTIVE-DUTY GENERAL AND FLAG 
              OFFICERS.

    (a) Restatement and Modification of Current Age Limits.--Section 
1251 of title 10, United States Code, is amended to read as follows:
``Sec. 1251. Regular commissioned officers; exceptions
    ``(a) Age Limits for General and Flag Officers.--(1) Unless retired 
or separated earlier, each regular commissioned officer of the Army, 
Air Force, or Marine Corps serving in a grade at or above 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 64 years of age.
    ``(2) Notwithstanding paragraph (1), the Secretary of Defense may 
defer the retirement of an officer serving in a position that carries a 
grade above major general or rear admiral, 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.
    ``(3) Notwithstanding paragraphs (1) and (2), the President may 
defer the retirement of an officer serving in a position that carries a 
grade above major general or rear admiral, 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.
    ``(b) Age Limits for Other Officers.--Unless retired or separated 
earlier, each regular commissioned officer of the Army, 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.
    ``(c) Deferred Retirement of Health Professions Officers.--(1) The 
Secretary of the military department concerned may, subject to 
subsection (e), defer the retirement under subsection (b) 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.
    ``(d) Deferred Retirement of Chaplains.--The Secretary of the 
military department concerned may, subject to subsection (e), defer the 
retirement under subsection (b) 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.
    ``(e) Limitation on Deferral of Retirements.--(1) Except as 
provided in paragraph (2), a deferment under subsection (c) or (d) 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 (c) or (d) 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.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 63 of such title is amended by striking the item relating to 
section 1251 and inserting the following new item:

``1251. Regular commissioned officers; exceptions.''.

SEC. 504. MODIFICATION OF AUTHORITIES ON SENIOR MEMBERS OF THE JUDGE 
              ADVOCATE GENERAL'S CORPS.

    (a) Department of the Army.--
            (1) Grade of judge advocate general.--Subsection (a) of 
        section 3037 of title 10, United States Code, is amended by 
        striking the third sentence and inserting the following new 
        sentence: ``The Judge Advocate General, while so serving, has 
        the grade of lieutenant general.''.
            (2) Redesignation of assistant judge advocate general as 
        deputy judge advocate general.--Such section is further 
        amended--
                    (A) in subsection (a), by striking ``Assistant 
                Judge Advocate General'' each place it appears and 
                inserting ``Deputy Judge Advocate General''; and
                    (B) in subsection (d), by striking ``Assistant 
                Judge Advocate General'' and inserting ``Deputy Judge 
                Advocate General''.
            (3) Conforming and clerical amendments.--(A) The heading of 
        such section is amended by striking ``Assistant Judge Advocate 
        General'' and inserting ``Deputy Judge Advocate General''.
            (B) The table of sections at the beginning of chapter 305 
        of such title is amended in the item relating to section 3037 
        by striking ``Assistant Judge Advocate General'' and inserting 
        ``Deputy Judge Advocate General''.
    (b) Grade of Judge Advocate General of the Navy.--Section 5148(b) 
of such title is amended in subsection by striking the last sentence 
and inserting the following new sentence: ``The Judge Advocate General, 
while so serving, has the grade of vice admiral or lieutenant general, 
as appropriate.''.
    (c) Grade of Judge Advocate General of the Air Force.--Section 
8037(a) of such title is amended by striking the last sentence and 
inserting the following new sentence: ``The Judge Advocate General, 
while so serving, has the grade of lieutenant general.''.
    (d) Exclusion From Active-Duty General and Flag Officer Strength 
and Distribution Limitations.--Section 525(b) of such title is amended 
by adding at the end the following new paragraph:
    ``(9) An officer while serving as the Judge Advocate General of the 
Army, the Judge Advocate General of the Navy, or the Judge Advocate 
General of the Air Force 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 major general or rear admiral 
under paragraph (1) or (2), as applicable.''.

SEC. 505. REQUIREMENT FOR SIGNIFICANT JOINT EXPERIENCE FOR OFFICERS 
              APPOINTED AS SURGEON GENERAL OF THE ARMY, NAVY, AND AIR 
              FORCE.

    (a) Restatement and Standardization of Authorities on Surgeon 
General of the Army.--
            (1) In general.--Chapter 305 of title 10, United States 
        Code, is amended by inserting after section 3036 the following 
        new section:
``Sec. 3036a. Surgeon General: appointment; grade
    ``(a) Surgeon General.--There is a Surgeon General of the Army who 
is appointed by the President, by and with the advice and consent of 
the Senate, from officers in any corps of the Army Medical Department.
    ``(b) Grade.--The Surgeon General, while so serving, has the grade 
of lieutenant general.
    ``(c) Term of Office.--An officer appointed as Surgeon General 
normally holds office for four years.
    ``(d) Joint Experience Required for Appointment.--(1) The Secretary 
of Defense may not recommend an officer to the President for 
appointment as Surgeon General unless the officer is determined by the 
Chairman of the Joint Chiefs of Staff, in accordance with criteria and 
as a result of a process established by the Chairman, to have 
significant joint experience.
    ``(2) Until October 1, 2010, the Secretary of Defense may waive the 
limitation in paragraph (1) with respect to the recommendation of an 
officer as Surgeon General if--
            ``(A) the Secretary of the Army requests the waiver; and
            ``(B) in the judgment of the Secretary of Defense--
                    ``(i) the officer is qualified for service as 
                Surgeon General; and
                    ``(ii) the waiver is necessary for the good of the 
                Army.
    ``(3) Any waiver under paragraph (2) shall be made on a case-by-
case basis.''.
            (2) Conforming amendment.--Section 3036(b) of such title is 
        amended in the flush matter following paragraph (2) by striking 
        the second sentence.
            (3) Clerical amendment.--The table of sections at the 
        beginning of chapter 305 of such title is amended by inserting 
        after the item relating to section 3036 the following new item:

``3036a. Surgeon General: appointment; grade.''.
    (b) Surgeon General of the Navy.--
            (1) In general.--Section 5137 of such title is amended--
                    (A) by redesignating subsection (b) as subsection 
                (c); and
                    (B) by inserting after subsection (a) the following 
                new subsection (b):
    ``(b) Joint Experience Required for Appointment as Chief.--(1) The 
Secretary of Defense may not recommend an officer to the President for 
appointment as Surgeon General unless the officer is determined by the 
Chairman of the Joint Chiefs of Staff, in accordance with criteria and 
as a result of a process established by the Chairman, to have 
significant joint experience.
    ``(2) Until October 1, 2010, the Secretary of Defense may waive the 
limitation in paragraph (1) with respect to the recommendation of an 
officer as Surgeon General if--
            ``(A) the Secretary of the Navy requests the waiver; and
            ``(B) in the judgment of the Secretary of Defense--
                    ``(i) the officer is qualified for service as 
                Surgeon General; and
                    ``(ii) the waiver is necessary for the good of the 
                Navy.
    ``(3) Any waiver under paragraph (2) shall be made on a case-by-
case basis.''.
            (2) Technical amendments.--Such section is further 
        amended--
                    (A) in subsection (a), by inserting ``Chief.--'' 
                after ``(a)''; and
                    (B) in subsection (c), as redesignated by paragraph 
                (1)(A) of this subsection, by inserting ``Deputy 
                Chief.--'' after ``(c)''.
    (c) Surgeon General of the Air Force.--The text of section 8036 of 
such title is amended to read as follows:
    ``(a) Surgeon General.--There is a Surgeon General of the Air Force 
who is appointed by the President, by and with the advice and consent 
of the Senate, from officers of the Air Force who are in the Air Force 
medical department.
    ``(b) Grade.--The Surgeon General, while so serving, has the grade 
of lieutenant general.
    ``(c) Joint Experience Required for Appointment.--(1) The Secretary 
of Defense may not recommend an officer to the President for 
appointment as Surgeon General unless the officer is determined by the 
Chairman of the Joint Chiefs of Staff, in accordance with criteria and 
as a result of a process established by the Chairman, to have 
significant joint experience.
    ``(2) Until October 1, 2010, the Secretary of Defense may waive the 
limitation in paragraph (1) with respect to the recommendation of an 
officer as Surgeon General if--
            ``(A) the Secretary of the Air Force requests the waiver; 
        and
            ``(B) in the judgment of the Secretary of Defense--
                    ``(i) the officer is qualified for service as 
                Surgeon General; and
                    ``(ii) the waiver is necessary for the good of the 
                Air Force.
    ``(3) Any waiver under paragraph (2) shall be made on a case-by-
case basis.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2008, and shall apply with respect to appointments 
to the position of Surgeon General of the Army, Surgeon General of the 
Navy, and Surgeon General of the Air Force that are made on or after 
that date.

SEC. 506. 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 title 10, United 
States Code, 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. 507. DISCRETIONARY SEPARATION AND RETIREMENT OF CHIEF WARRANT 
              OFFICERS, W-4, TWICE FAILING SELECTION FOR PROMOTION.

    (a) In General.--Section 580(a) of title 10, United States Code, is 
amended--
            (1) in paragraph (1), by inserting ``, except as provided 
        in paragraph (5),'' after ``shall'';
            (2) by redesignating paragraphs (5) and (6) as paragraphs 
        (6) and (7), respectively; and
            (3) by inserting after paragraph (4) the following new 
        paragraph (5):
    ``(5) In the case of a warrant officer described in paragraph (1) 
who is in the grade of chief warrant officer, W-4, the retirement or 
separation of such member under this subsection shall be subject to the 
discretion of the Secretary concerned.''.
    (b) Eligibility for Promotion.--Paragraph (6) of such section, as 
redesignated by subsection (a)(2) of this section, is further amended--
            (1) by striking ``A warrant officer'' and inserting ``(A) 
        Except as provided in subparagraph (B), a warrant officer''; 
        and
            (2) by adding at the end the following new subparagraph:
    ``(B) A warrant officer who is retained on active duty pursuant to 
an exercise of the authority in paragraph (5) is eligible for further 
consideration for promotion while remaining on active duty.''.

SEC. 508. 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).
``14511. Separation at age 64: major generals and rear admirals.
``14512. Separation at age 66: officers holding certain offices.''.

SEC. 509. MODIFICATION OF QUALIFICATIONS FOR LEADERSHIP OF THE NAVAL 
              POSTGRADUATE SCHOOL.

    Section 7042(a) of title 10, United States Code, is amended--
            (1) in paragraph (1)(A)--
                    (A) by inserting ``active-duty or retired'' after 
                ``An'';
                    (B) by inserting ``or Marine Corps'' after 
                ``Navy'';
                    (C) by inserting ``or colonel, respectively'' after 
                ``captain''; and
                    (D) by inserting ``or assigned'' after 
                ``detailed'';
            (2) in paragraph (2), by inserting ``and the Commandant of 
        the Marine Corps'' after ``Operations''; and
            (3) in paragraph (4)(A)--
                    (A) by inserting ``(unless such individual is a 
                retired officer of the Navy or Marine Corps in a grade 
                not below the grade of captain or colonel, 
                respectively)'' after ``in the case of a civilian'';
                    (B) by inserting ``active-duty or retired'' after 
                ``in the case of an''; and
                    (C) by inserting ``or Marine Corps'' after 
                ``Navy''.

                   Part II--Officer Promotion Policy

SEC. 515. PROMOTIONS.

    (a) Officers on Active-Duty List.--
            (1) Clarification of approval of selection board reports.--
        Subsection (a)(1) of section 624 of title 10, United States 
        Code, is amended by inserting ``or a delegate of the 
        President'' after ``the President''.
            (2) Date of establishment of promotion list.--Such 
        subsection is further amended by adding at the end the 
        following new sentence: ``For promotions that occur by and with 
        the advice and consent of the Senate, a promotion list shall be 
        treated as being established for purposes of this chapter on 
        the date on which the list is received by the Senate for 
        consideration.''.
            (3) Uniform procedures for delays of appointment upon 
        promotion.--Subsection (d) of such section is amended--
                    (A) in paragraph (1), by striking ``prescribed by 
                the Secretary concerned'' and inserting ``prescribed by 
                the Secretary of Defense''; and
                    (B) in paragraph (2), by striking ``prescribed by 
                the Secretary concerned'' and inserting ``prescribed by 
                the Secretary of Defense''.
            (4) Additional basis for delay of appointment.--Subsection 
        (d)(1) of such section is further amended--
                    (A) in subparagraph (C), by striking ``or'' at the 
                end;
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting ``; or'';
                    (C) by inserting after subparagraph (D) the 
                following new subparagraph (E):
            ``(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 if the officer is 
                        acquitted'' and inserting ``if the officer is 
                        acquitted''; 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,''.
            (5) 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) Clarification of approval of selection board reports.--
        Subsection (a) of section 14308 of title 10, United States 
        Code, is amended by inserting ``or a delegate of the 
        President'' after ``the President''.
            (2) Date of establishment of promotion list.--Such 
        subsection is further amended by adding at the end the 
        following new sentence: ``For promotions that occur by and with 
        the advice and consent of the Senate, a promotion list shall be 
        treated as being established for purposes of this chapter on 
        the date on which the list is received by the Senate for 
        consideration.''.
            (3) Uniform procedures for delays of appointment upon 
        promotion.--Section 14311 of such title is amended--
                    (A) in subsection (a)(1), by striking ``Secretary 
                of the military department concerned'' and inserting 
                ``Secretary of Defense''; and
                    (B) in subsection (b), by striking ``Secretary of 
                the military department concerned'' and inserting 
                ``Secretary of Defense''.
            (4) Additional basis for original delay of appointment.--
        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 review by the Secretary of Defense or the Secretary 
        concerned.''; and
                    (B) in paragraph (2)--
                            (i) by striking ``or if the officer is 
                        acquitted'' and inserting ``if the officer is 
                        acquitted''; 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,''.
            (5) 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) Deadline for Uniform Regulations on Delay of Promotions.--The 
Secretary of Defense shall prescribe the regulations required by 
section 624(d) of title 10, United States Code (as amended by 
subsection (a)(3) of this section), and the regulations required by 
section 14311 of title 10, United States Code (as amended by subsection 
(b)(3) of this section), not later than March 1, 2008.
    (d) 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 that 
date.

SEC. 516. CONSIDERATION OF ADVERSE INFORMATION BY PROMOTION 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) in paragraph (1), by striking ``and'' at the end;
            (2) in paragraph (2), by striking the period at the end 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) in paragraph (1), by striking ``and'' at the end;
            (3) in paragraph (2), by striking the period at the end 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) 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 promotion selection boards convened on or after that date.

SEC. 517. 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.''.
    (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) 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 promotion selection boards convened on or after that date.

SEC. 518. CLARIFICATION OF NONDISCLOSURE REQUIREMENTS APPLICABLE TO 
              PROMOTION SELECTION BOARD PROCEEDINGS.

    (a) Selection Board Proceedings for Active Duty Officers.--
Subsection (f) of section 618 of title 10, United States Code, is 
amended to read as follows:
    ``(f)(1) Proceedings of a selection board convened under section 
611 of this title shall not be disclosed to any person not a member of 
the board.
    ``(2) Discussions and deliberations of a selection board described 
in paragraph (1), and any written or documentary records thereof, 
shall--
            ``(A) be immune from legal process;
            ``(B) not be admitted as evidence; and
            ``(C) 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.''.
    (b) Selection Board Proceedings for Reserve Officers.--
            (1) In general.--Section 14104 of such title is amended to 
        read as follows:
``Sec. 14104. Nondisclosure of board proceedings
    ``(a) In General.--The proceedings of a selection board convened 
under section 14101 of this title shall not be disclosed to any person 
not a member of the board.
    ``(b) Discussions and Deliberations.--Discussions and deliberations 
of a selection board described in subsection (a), and any written or 
documentary records thereof, shall--
            ``(1) be immune from legal process;
            ``(2) not be admitted as evidence; and
            ``(3) 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) Clerical amendment.--The table of sections at the 
        beginning of chapter 1403 of such title is amended by striking 
        the item relating to section 14104 and inserting the following 
        new item:

``14104. Nondisclosure of board proceedings.''.
    (c) 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 the proceedings of any promotion selection board, whether 
convened before, on, or after such date.

SEC. 519. 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) Effective Date.--The amendments made by this section shall take 
effect on March 1, 2007, and shall apply with respect to promotion 
selection boards convened on or after that date.

SEC. 520. REMOVAL FROM PROMOTION LISTS OF OFFICERS RETURNED TO THE 
              PRESIDENT BY THE SENATE.

    (a) Officers on Active-Duty List.--
            (1) Clarification of removal authority.--Subsection (a) of 
        section 629 of title 10, United States Code, is amended by 
        inserting ``or a delegee of the President'' after ``The 
        President''.
            (2) Removal following return.--Such section is further 
        amended--
                    (A) by redesignating subsection (c) as subsection 
                (d);
                    (B) by inserting after subsection (b) the following 
                new subsection (c):
    ``(c)(1) If an officer or group of officers on a list of officers 
approved for promotion by the President and submitted to the Senate for 
consideration is returned by the Senate to the President pursuant to 
the rules and procedures of the Senate, the officer or group of 
officers, as the case may be, shall automatically be removed from the 
list at the end of the 365-day period beginning on the date of such 
return.
    ``(2) Prior to the end of the 365-day period referred to in 
paragraph (1), the President may extend by an additional 365 days the 
period specified in that paragraph for the removal of an officer or 
group of officers from a list of officers approved for promotion by the 
President.
    ``(3) The President may, during the period specified in paragraph 
(1), as extended (if at all) under paragraph (2), resubmit to the 
Senate any officer or group of officers removed under paragraph (1) 
from a list of officers approved for promotion by the President.
    ``(4) If an officer or group of officers resubmitted to the Senate 
under paragraph (3) is returned by the Senate to the President pursuant 
to the rules and procedures of the Senate, the officer or group of 
officers, as the case may be, shall automatically be removed from the 
list of officers approved for promotion by the President.''; and
                    (C) in paragraph (1) of subsection (d), as 
                redesignated by paragraph (1) of this subsection, by 
                striking ``or (b)'' and inserting ``(b), or (c)''.
    (b) Officers on Reserve Active Status List.--
            (1) Clarification of removal authority.--Subsection (a) of 
        section 14310 of such title is amended by inserting ``or a 
        delegee of the President'' after ``The President''.
            (2) Removal following return.--Such section is further 
        amended--
                    (A) by redesignating subsection (c) as subsection 
                (d);
                    (B) by inserting after subsection (b) the following 
                new subsection (c):
    ``(c) Removal Following Return by the Senate to the President.--(1) 
If an officer or group of officers on a list of officers approved for 
promotion by the President and submitted to the Senate for 
consideration is returned by the Senate to the President pursuant to 
the rules and procedures of the Senate, the officer or group of 
officers, as the case may be, shall automatically be removed from the 
list at the end of the 365-day period beginning on the date of such 
return.
    ``(2) Prior to the end of the 365-day period referred to in 
paragraph (1), the President may extend by an additional 365 days the 
period specified in that paragraph for the removal of an officer or 
group of officers from a list of officers approved for promotion by the 
President.
    ``(3) The President may, during the period specified in paragraph 
(1), as extended (if at all) under paragraph (2), resubmit to the 
Senate any officer or group of officers removed under paragraph (1) 
from a list of officers approved for promotion by the President.
    ``(4) If an officer or group of officers resubmitted to the Senate 
under paragraph (3) is returned by the Senate to the President pursuant 
to the rules and procedures of the Senate, the officer or group of 
officers, as the case may be, shall automatically be removed from the 
list of officers approved for promotion by the President.''; and
                    (C) in subsection (d), as redesignated by paragraph 
                (1) of this subsection, by striking ``or (b)'' and 
                inserting ``(b), or (c)''.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on January 1, 2007.
            (2) Applicability to certain officers.--The amendments made 
        by this section shall not apply to any officer on the active-
        duty list or reserve active status list whose name is on a 
        promotion list or report of a selection board on the date of 
        the enactment of this Act. Any officer whose name is on a 
        promotion list as of the date of the enactment of this Act 
        following the return of the officer's nomination to the 
        President by the Senate and who is eligible as of that date for 
        retirement for years of service shall be retired not later than 
        October 1, 2008.

SEC. 521. REPORT ON JOINT OFFICER PROMOTION BOARDS.

    (a) Report Required.--Not later than June 1, 2007, the Secretary of 
Defense shall submit to the Committee on Armed Services of the Senate 
and House of Representatives a report on the desirability and 
feasibility of conducting joint officer promotion selection boards.
    (b) Elements.--The report under subsection (a) shall include--
            (1) a discussion of the limitations in existing officer 
        career paths and promotion procedures that might warrant the 
        conduct of joint officer promotion selection boards;
            (2) an identification of the requirements for officers for 
        which joint officer promotion selection boards would be 
        advantageous;
            (3) recommendations on methods to demonstrate how joint 
        officer promotion selection boards might be structured, and an 
        evaluation of the feasibility of such methods; and
            (4) any proposals for legislative action that the Secretary 
        considers appropriate.

            Part III--Joint Officer Management Requirements

SEC. 526. MODIFICATION AND ENHANCEMENT OF GENERAL AUTHORITIES ON 
              MANAGEMENT OF JOINT QUALIFIED OFFICERS.

    (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 and inserting the 
following new sentence: ``For purposes of this chapter, officers to be 
managed by such policies, procedures, and practices are referred to as 
`joint qualified'.''.
    (b) Numbers and Designation.--Subsection (b) of such section is 
amended--
            (1) in the heading, by striking ``Selection'' and inserting 
        ``Designation'';
            (2) in paragraph (1), by striking ``of officers with the 
        joint specialty'' and inserting ``and levels of joint qualified 
        officers'';
            (3) in paragraph (2)--
                    (A) by striking ``selected for the joint 
                specialty'' and inserting ``designated as joint 
                qualified officers''; and
                    (B) by striking the second and third sentences and 
                inserting the following new sentence: ``Officers 
                considered for joint qualification shall--
            ``(A) meet criteria prescribed by the Secretary of Defense; 
        and
            ``(B) be those officers who are serving in the grade of 
        captain or, in the case of the Navy, lieutenant, or a higher 
        grade.''; and
            (4) in paragraph (3)--
                    (A) by striking ``select officers for the joint 
                specialty'' and inserting ``designate officers as joint 
                qualified officers''; and
                    (B) by striking ``the Deputy Secretary of Defense'' 
                and inserting ``the Under Secretary of Defense for 
                Personnel and Readiness''.
    (c) Education and Experience Requirements.--Subsection (c) of such 
section is amended to read as follows:
    ``(c) Education and Experience Requirements.--(1) An officer may 
not be designated as a joint qualified officer until the officer--
            ``(A)(i) successfully completes an appropriate program at a 
        joint professional military education school; and
            ``(ii) successfully completes a full tour of duty in a 
        joint duty assignment (as described in section 664(f) of this 
        title (other than in paragraph (2) of such section)); or
            ``(B) under regulations and policy prescribed by the 
        Secretary of Defense, successfully demonstrates a mastery of 
        knowledge, skills, and abilities in joint matters.
    ``(2)(A) In the case of an officer who has completed two full tours 
of duty in a joint duty assignment (as described in section 664(f) of 
this title) and demonstrates a mastery of knowledge, skills, and 
abilities on joint matters, the Secretary of Defense may waive the 
requirement that the officer have successfully completed a program of 
education referred to in paragraph (1)(A)(i) if the Secretary 
determines that the types of joint duty experiences completed by the 
officer have been of sufficient breadth to prepare the officer 
adequately for the highest level of joint qualification.
    ``(B) The authority of the Secretary of Defense to grant a waiver 
under subparagraph (A) may be delegated only to the Under Secretary of 
Defense for Personnel and Readiness.
    ``(C)(i) A waiver under subparagraph (A) may be granted only on a 
case-by-case basis.
    ``(ii) A waiver under subparagraph (A) may be granted only under 
circumstances justifying variation from the requirements of paragraph 
(1) for designation of an officer for the highest level of joint 
qualification as specified by the Secretary of Defense.
    ``(iii) In the case of a general or flag officer, a waiver under 
subparagraph (A) may be granted only under circumstances described in 
clause (ii) and 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.
    ``(iv) In the case of officers in grades below brigadier general or 
rear admiral (lower half), the total number of waivers granted under 
subparagraph (A) 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 selected for the highest level of joint qualification during 
that fiscal year.
    ``(D) There may not be more than 32 general and flag officers on 
active duty at the same time who were selected for the joint specialty 
or highest level of joint qualification while holding a general or flag 
officer grade and for whom a waiver was granted under subparagraph 
(A).''.
    (d) Number of Joint Duty Assignments.--Subsection (d) of such 
section is amended to read as follows:
    ``(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 
highest 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) Except as provided in subparagraph (B), a position 
designated under paragraph (2) may be held only by an officer who has 
the highest level of joint qualification.
    ``(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 (1). Any such waiver shall be 
granted on a case-by-case basis. The authority of the 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.''.
    (e) Career Guidelines.--Subsection (e) of such section is amended 
by striking ``officers with the joint specialty'' and inserting 
``officers who are joint qualified officers''.
    (f) Treatment of Certain Service.--Subsection (f) of such section 
is amended by striking ``(including section 619(e)(1) of this title)''.
    (g) Clerical Amendment.--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 joint qualified officers.''.

SEC. 527. 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. 528. 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''; 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''; 
                and
                    (B) in paragraph (2), by striking ``a joint 
                professional military education school'' and inserting 
                ``a school referred to in paragraph (1)''.
    (b) Definition.--Such section is further amended by adding at the 
end the following new subsection:
    ``(c) School Within the National Defense University.--For purposes 
of this section, a school within the National Defense University 
includes a school as follows:
            ``(1) The National War College.
            ``(2) The Industrial College of the Armed Forces.
            ``(3) The Joint Advanced Warfighting School.
            ``(4) The Joint Forces Staff College.''.

SEC. 529. MODIFICATION OF DEFINITIONS RELATING TO JOINTNESS.

    (a) Modification of Definition of ``Joint Matters''.--Subsection 
(a) of section 668 of title 10, United States Code, is amended to read 
as follows:
    ``(a) Joint Matters.--In this chapter, the term `joint matters' 
means matters involving the integrated use of military forces relating 
to national military strategy, strategic and contingency planning, and 
command and control of operations under unified command that may be 
conducted under unified action on land, sea, or air, in space, or in 
the information environment with participants from multiple armed 
forces, the armed forces and other departments and agencies of the 
United States Government, the armed forces and the military forces or 
agencies of other countries, the armed forces and non-governmental 
persons or entities, or any combination thereof.''.
    (b) Modification of Definition of ``Joint Duty Assignment''.--
Paragraph (1) of subsection (b) of such section is amended by striking 
``and shall exclude'' and all that follows and inserting a period.
    (c) Restatement of Definition of ``Critical Occupational 
Specialty''.--
            (1) In general.--Section 668 of such title is further 
        amended by adding at the end the following new subsection:
    ``(d) Critical Occupational Specialty.--In this chapter, the term 
`critical occupational specialty' means a military occupational 
specialty within a combat arm of the Army, or an equivalent arm of the 
Navy, Air Force, and Marine Corps, that is designated by the Secretary 
of Defense as a critical occupational specialty because such combat arm 
is experiencing a severe shortage of trained officers in that military 
occupational specialty.''.
            (2) Conforming amendments.--The following provisions of 
        such title are each amended by striking ``under section 
        661(c)(2) of this title'':
                    (A) Section 664(c)(2).
                    (B) Section 667(3).

SEC. 530. CONDITION ON APPOINTMENT OF COMMISSIONED OFFICERS TO POSITION 
              OF DIRECTOR OF NATIONAL INTELLIGENCE OR DIRECTOR OF THE 
              CENTRAL INTELLIGENCE AGENCY.

    (a) Condition.--
            (1) In general.--Chapter 32 of title 10, United States 
        Code, is amended by adding at the end the following new 
        section:
``Sec. 529. Condition on appointment to certain positions: Director of 
              National Intelligence; Director of the Central 
              Intelligence Agency
    ``As a condition of appointment to the position of Director of 
National Intelligence or Director of the Central Intelligence Agency, 
an officer shall acknowledge that upon termination of service in such 
position the officer shall be retired in accordance with section 1253 
of this title.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 32 of such title is amended by adding at 
        the end the following new item:

``529. Condition on appointment to certain positions: Director of 
                            National Intelligence; Director of the 
                            Central Intelligence Agency.''.
    (b) Retirement.--
            (1) In general.--Chapter 63 of title 10, United States 
        Code, is amended by adding at the end the following new 
        section:
``Sec. 1253. Mandatory retirement: Director of National Intelligence; 
              Director of the Central Intelligence Agency
    ``Upon termination of the appointment of an officer to the position 
of Director of National Intelligence or Director of the Central 
Intelligence Agency, the Secretary of the military department concerned 
shall retire the officer under any provision of this title under which 
the officer is eligible to retire.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 63 of such title is amended by adding at 
        the end the following new item:

``1253. Mandatory retirement: Director of National Intelligence; 
                            Director of the Central Intelligence 
                            Agency.''.
    (c) 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 appointments of commissioned officers of the Armed Forces to 
the position of Director of National Intelligence or Director of the 
Central Intelligence Agency on or after that date.

            Subtitle B--Reserve Component Personnel Matters

SEC. 531. ENHANCED FLEXIBILITY IN THE MANAGEMENT OF RESERVE COMPONENT 
              PERSONNEL.

    (a) Clarification of Definition of ``Active Guard and Reserve 
Duty'' Under Title 10, United States Code.--Section 101(d)(6)(A) of 
title 10, United States Code, is amended--
            (1) by striking ``or full-time National Guard duty'' the 
        first place it appears;
            (2) by striking ``to active duty or'' and inserting ``to'';
            (3) by striking ``Guard, pursuant'' and inserting ``Guard 
        pursuant''; and
            (4) by inserting a comma before ``for a period''.
    (b) Expansion of Active Guard and Reserve Duty To Include Support 
of Reserve Component Operations and Additional Instruction and 
Training.--Section 12310 of title 10, United States Code, is amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively;
            (2) by striking subsections (a) and (b) and inserting the 
        following new subsections:
    ``(a) Active Guard and Reserve Duty.--The Secretary concerned may 
order a Reserve ordered to or retained on active duty under section 
12301(d) of this title to perform active Guard and Reserve duty.
    ``(b) Additional Duties.--A Reserve on active duty as described in 
subsection (a) who is performing active Guard and Reserve duty pursuant 
to an order under that subsection may be assigned additional duties (to 
the extent such duties do not interfere with the performance by the 
Reserve of active Guard and Reserve duty under that subsection) as 
follows:
            ``(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 on reserve component 
        matters.
            ``(4) Instructing or training members of the armed forces 
        on active duty, members of foreign military forces (under 
        authorities and limitations applicable to the provision of such 
        instruction or training by members of the Armed Forces on 
        active duty), Department of Defense contractor personnel, and 
        Department of Defense civilian employees.
    ``(c) Grade When Ordered to Active Duty.--A Reserve ordered to 
active duty under subsection (a) shall be ordered in his reserve grade. 
While so serving, he continues to be eligible for promotion as a 
Reserve, if he is otherwise qualified.''; and
            (3) in paragraph (1) of subsection (d), as so 
        redesignated--
                    (A) by striking ``Notwithstanding subsection (b), a 
                Reserve'' and inserting ``A Reserve''; and
                    (B) by striking ``functions'' and inserting 
                ``duty''.
    (c) Expansion of Duties of Military Technicians (Dual Status).--
            (1) General duties.--Section 10216(a)(1)(C) of such title 
        is amended by striking ``administration and'' and inserting 
        ``organizing, administering, instructing, or''.
            (2) Support of reserve component operations and additional 
        instruction and training.--Chapter 1007 of such title is 
        amended by inserting after section 10216 the following new 
        section:
``Sec. 10216a. Military technicians (dual status): additional duties
    ``A military technician (dual status) who is employed under section 
3101 of title 5 may perform additional duties (to the extent such 
duties do not interfere with the performance by the military technician 
of duties assigned under section 10216(a)(1)(C) of this title) as 
follows:
            ``(1) Supporting operations or missions assigned in whole 
        or in part to the military technician's unit.
            ``(2) Supporting operations or missions performed or to be 
        performed by--
                    ``(A) a unit composed of elements from more than 
                one component of the military technician's armed force; 
                or
                    ``(B) a joint forces unit that includes--
                            ``(i) one or more units of the military 
                        technician's reserve component; or
                            ``(ii) a member of the military 
                        technician's reserve component whose reserve 
                        component assignment is in a position in an 
                        element of the joint forces unit.
            ``(3) Instructing or training members of the Armed Forces 
        on active duty, members of foreign military forces (under 
        authorities and limitations applicable to the provision of such 
        instruction or training by members of the Armed Forces on 
        active duty), Department of Defense contractor personnel, and 
        Department of Defense civilian employees.''.
            (3) Clerical amendment.--The table of sections at the 
        beginning of chapter 1007 of such title is amended by inserting 
        after the item relating to section 10216 the following new 
        item:

``10216a. Military technicians (dual status): additional duties.''.
    (d) Order of National Guard Members To Perform National Guard 
Active Guard and Reserve Duty and Additional Duties.--
            (1) Definition of ``national guard active guard and reserve 
        duty''.--Section 101 of title 32, United States Code, is 
        amended by adding at the end the following:
            ``(20)(A) `National Guard active Guard and Reserve duty' 
        means full-time National Guard duty performed by a member of 
        the National Guard pursuant to an order to full-time National 
        Guard duty, for a period of 180 consecutive days or more for 
        the purpose of organizing, administering, recruiting, 
        instructing, or training the reserve components.
            ``(B) Such term does not include the following:
                    ``(i) Duty performed as a member of the Reserve 
                Forces Policy Board under section 10301 of title 10.
                    ``(ii) Duty performed as a property and fiscal 
                officer under section 708 of this title.
                    ``(iii) Duty performed for the purpose of 
                interdiction and counter-drug activities for which 
                funds have been provided under section 112 of this 
                title.
                    ``(iv) Duty performed as a general or flag officer.
                    ``(v) Service as a State director of the Selective 
                Service System under section 10(b)(2) of the Military 
                Selective Service Act (50 U.S.C. App. 460(b)(2)).''.
            (2) Order to perform duty.--Chapter 3 of such title is 
        amended by adding at the end the following new section:
``Sec. 328. National Guard active Guard and Reserve duty; additional 
              duties
    ``(a) Authority To Order to Duty.--The Governor of his State or 
Territory or Puerto Rico, or 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 National Guard active Guard and Reserve duty.
    ``(b) Nature of Duty.--(1) A member of the National Guard may be 
ordered to perform duty under subsection (a)--
            ``(A) without his consent, but with the pay and allowances 
        provided by law; or
            ``(B) with his consent, either with or without pay and 
        allowances.
    ``(2) Duty without pay shall be considered for all purposes as if 
it were duty with pay.
    ``(c) Duties.--A member of the National Guard performing duty under 
subsection (a) may perform the following additional duties (to the 
extent such duties do not interfere with the performance by the member 
of National Guard active Guard and Reserve duty under that subsection) 
as follows:
            ``(1) Support of operations or missions undertaken by the 
        member's unit at the request of the President or the Secretary 
        of Defense.
            ``(2) Support of Federal training operations or Federal 
        training missions assigned in whole or in part to the member's 
        unit.
            ``(3) Instructing or training members of the Armed Forces 
        on active duty, members of foreign military forces (under 
        authorities and limitations applicable to the provision of such 
        instruction or training by members of the Armed Forces on 
        active duty), Department of Defense contractor personnel, and 
        Department of Defense civilian employees.''.
            (3) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following new item:

``328. National Guard active Guard and Reserve duty; additional 
                            duties.''.
    (e) Expansion of Duties of National Guard Technicians.--Section 
709(a) of such title 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;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(3) the performance of additional duties (to the extent 
        such duties do not interfere with the performance by the 
        technician of duties under paragraphs (1) and (2)) as follows:
                    ``(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 members of the Armed 
                Forces on active duty, members of foreign military 
                forces (under authorities and limitations applicable to 
                the provision of such instruction or training by 
                members of the Armed Forces on active duty), Department 
                of Defense contractor personnel, and Department of 
                Defense civilian employees.''.

SEC. 532. EXPANSION OF ACTIVITIES AUTHORIZED FOR RESERVES UNDER WEAPONS 
              OF MASS DESTRUCTION CIVIL SUPPORT TEAMS.

    (a) In General.--Subsection (d) of section 12310 of title 10, 
United States Code, as redesignated and amended by section 531(b) of 
this Act, is further amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A)--
                            (i) by inserting ``in the United States, 
                        Canada, or the United Mexican States'' after 
                        ``title)''; and
                            (ii) by striking ``or'' at the end;
                    (B) in subparagraph (B)--
                            (i) by inserting ``, Canada, or the United 
                        Mexican States'' after ``United States''; and
                            (ii) by striking the period at the end and 
                        inserting a semicolon; and
                    (C) by adding at the end the following new 
                subparagraphs:
            ``(C) the intentional or unintentional release of nuclear, 
        biological, radiological, or toxic or poisonous chemical 
        materials in the United States, Canada, or the United Mexican 
        States that results, or could result, in catastrophic loss of 
        life or property; or
            ``(D) a natural or manmade disaster in the United States, 
        Canada, or the United Mexican States that results, or could 
        result, in catastrophic loss of life or property.''; and
            (2) by striking paragraph (3) and inserting the following 
        new paragraph (3):
    ``(3)(A) A Reserve may perform duties described in subparagraph 
(A), (B), or (C) of paragraph (1)--
            ``(i) only while assigned to a reserve component civil 
        support team; and
            ``(ii) if performing those duties in Canada or the United 
        Mexican States, only after being ordered to active duty under 
        this title.
    ``(B) A Reserve may perform the duties described in paragraph 
(1)(D)--
            ``(i) only while assigned to a reserve component civil 
        support team;
            ``(ii) only with the approval of the Secretary of Defense; 
        and
            ``(iii) if performing those duties in Canada or the United 
        Mexican States, only after being ordered to active duty under 
        this title.
    ``(C) Any duties described in paragraph (1) that are performed in 
Canada or the United Mexican States may occur, with consultation of the 
Secretary of State, at any distance beyond the borders of the United 
States with such country as is agreed to by appropriate authorities in 
such country.''.
    (b) Definition of ``United States''.--Such subsection is further 
amended by adding at the end the following new paragraph:
    ``(7) In this subsection, the term `United States' means each of 
the several States, the District of Columbia, Puerto Rico, Guam, and 
the Virgin Islands.''.
    (c) Conforming Amendments.--Such subsection is further amended--
            (1) in the heading, by inserting ``, Terrorist Attack, and 
        Natural or Manmade Disaster'' after ``Mass Destruction'';
            (2) in paragraph (5), by striking ``rapid assessment 
        element team'' and inserting ``civil support team''; and
            (3) in paragraph (6)(B), by striking ``paragraph (3)(B)'' 
        and inserting ``that paragraph''.

SEC. 533. 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 is amended 
by striking ``one year'' and inserting ``18 months''.
    (c) Effective Date.--The amendments made by this section shall be 
effective on 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. 534. PILOT PROGRAM ON REINTEGRATION OF MEMBERS OF THE NATIONAL 
              GUARD INTO CIVILIAN LIFE AFTER DEPLOYMENT.

    (a) Pilot Program Required.--The Secretary of the Army shall carry 
out a pilot program to assess the feasibility and advisability of 
utilizing the mechanisms specified in this section to facilitate the 
reintegration of members of the National Guard into civilian life after 
their return from deployment overseas.
    (b) Limitation on Location.--The pilot program required by 
subsection (a) may only be carried out in a State that has a National 
Guard brigade that is returning from deployment overseas during the 
period of the pilot program.
    (c) Program Elements.--The mechanisms under the pilot program 
required by subsection (a) shall include the following:
            (1) Initial reintegration training.--Training (to be known 
        as ``initial reintegration training'') of members of the 
        National Guard described in subsection (a) to facilitate the 
        reintegration of such members with their families and 
        communities after their return from deployment as described in 
        that subsection. Such training shall be conducted immediately 
        after the return of such members from such deployment. 
        Participation in such training shall be voluntary.
            (2) 30-day reintegration training.--Training (to be known 
        as ``30-day reintegration training'') of members of the 
        National Guard described in subsection (a) to assist such 
        members in identifying the signs and symptoms of combat stress. 
        Such training shall be conducted approximately 30 days after 
        provision of training under paragraph (1). Participation in 
        such training shall be voluntary.
            (3) 60-day reintegration training.--Training (to be known 
        as ``60-day reintegration training'') of members of the 
        National Guard described in subsection (a) to assist such 
        members in matters relating to combat stress, including 
        chemical dependency, anger management, and gambling abuse. Such 
        training shall be conducted approximately 30 days after 
        provision of training under paragraph (2). Participation in 
        such training shall be voluntary.
            (4) 90-day reintegration training.--Training (to be known 
        as ``90-day reintegration training'') of members of the 
        National Guard described in subsection (a) to ensure a thorough 
        physical and mental health assessment of such members after 
        deployment as described in that subsection. Such training shall 
        be conducted approximately 30 days after provision of training 
        under paragraph (3). Participation in such training shall be 
        voluntary.
            (5) Educational materials.--The development and 
        distribution of educational materials for families of members 
        of the National Guard described in subsection (a), and for the 
        communities in which such members and families reside, on 
        matters relating to the reintegration of such members into 
        civilian life after their return from deployment overseas.
    (d) Report.--Not later than one year after the commencement of the 
pilot program required by subsection (a), the Secretary shall submit to 
the congressional defense committees a report on the pilot program. The 
report shall include--
            (1) a description of the activities undertaken under the 
        pilot program;
            (2) an assessment of the effectiveness of such mechanisms 
        in facilitating the reintegration of members of the National 
        Guard into civilian life after their return from deployment 
        overseas; and
            (3) such recommendations for legislative or administrative 
        action as the Secretary considers appropriate in light of the 
        pilot program.
    (e) Funding.--Of the amount authorized to be appropriated by 
section 301(10) for operation and maintenance for the Army National 
Guard, $6,663,000 may be available for the pilot program required by 
subsection (a).

            Subtitle C--Military Justice and Related Matters

SEC. 551. APPLICABILITY OF UNIFORM CODE OF MILITARY JUSTICE TO MEMBERS 
              OF THE ARMED FORCES ORDERED TO ACTIVE DUTY OVERSEAS IN 
              INACTIVE DUTY FOR TRAINING STATUS.

    Not later than March 1, 2007, the Secretaries of the military 
departments shall prescribe regulations, or amend current regulations, 
in order to provide that officers and enlisted personnel of the Armed 
Forces who are ordered to active 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 D--Education and Training Matters

SEC. 561. 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:
``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 on active duty following 
                completion of training for a period of two years for 
                each year or part thereof of the officer's medical 
                training under subsection (a).
    ``(c) 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.
    ``(d) 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.
    ``(e) Expenses.--Expenses incident to the detail of officers under 
this section shall be paid from any funds appropriated for the military 
department concerned.
    ``(f) 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.
    ``(2) In no case shall an officer be required to serve on active 
duty under this subsection for any period in excess of one year for 
each year or part thereof the officer participated in the program.
    ``(g) Limitation on Details.--(1) 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.
    ``(2) 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 
chapter 101 of such title 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. 562. EXPANSION OF ELIGIBILITY TO PROVIDE JUNIOR RESERVE OFFICERS' 
              TRAINING CORPS INSTRUCTION.

    (a) Eligibility of Retired Members of National Guard and 
Reserves.--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, the detailing of active duty 
officers and noncommissioned officers under subsection (c)(1), and the 
employment of retired officers, noncommissioned officers, 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 retired officers and noncommissioned officers who qualify 
for retired pay for non-regular service under section 12731 of this 
title (other than those who qualify for age under subsection (a)(1) of 
such section) whose qualifications are approved by the Secretary and 
the institution concerned and who request such employment, subject to 
the following:
            ``(1) The Secretary 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 the retired or retainer pay for an active 
        duty officer or noncommissioned offer of the same grade and 
        years of service for such period and the active duty pay and 
        allowances which the member would have received for such period 
        if on active duty. Amounts may be paid with respect to members 
        under this subsection after such members reach the age of 60. 
        Payments by the Secretary under this paragraph shall be made 
        from funds appropriated for that purpose.
            ``(2) Notwithstanding any other provision of law, such a 
        member 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 Currently Providing 
Instruction.--Subsection (d) of such section is amended in the matter 
preceding paragraph (1) by striking ``and noncommissioned officers, and 
members of the Fleet Reserve and Fleet Marine Corps Reserve'' and 
inserting ``, noncommissioned officers, and members of the Fleet 
Reserve and Fleet Marine Corps Reserve who are drawing retired or 
retained pay''.

SEC. 563. 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) Effective Date.--
            (1) In general.--The amendment made by subsection (a) shall 
        take effect on October 1, 2006, and shall apply with respect 
        agreements entered into 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. 564. INCREASE IN BENEFITS UNDER HEALTH PROFESSIONS SCHOLARSHIP AND 
              FINANCIAL ASSISTANCE PROGRAM.

    (a) Stipend.--Section 2121(d) of title 10, United States Code, is 
amended--
            (1) by striking ``the rate of $579 per month'' and 
        inserting ``in an amount not to exceed $30,000 per year''; and
            (2) by striking ``That rate'' and inserting ``The maximum 
        amount of the stipend''.
    (b) 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) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2006.
    (d) Prohibition on Adjustments in 2007.--No adjustment under 
subsection (d) of section 2122 of title 10, United States Code, in the 
maximum amount of the stipend payable under such section 2122, and no 
adjustment under subsection (e) of section 2127 of such title in the 
maximum amount of the annual grant payable under such section 2127, 
shall be made in 2007.

SEC. 565. REPORT ON HEALTH PROFESSIONS SCHOLARSHIP AND FINANCIAL 
              ASSISTANCE PROGRAM.

    (a) Report Required.--Not later than March 1, 2007, the Secretary 
of Defense shall submit to the congressional defense committees 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.
    (b) Elements.--The report required by subsection (a) shall include 
the following:
            (1) An assessment of the success of each military 
        department in achieving its recruiting goals under the health 
        professions scholarship and financial assistance program for 
        active service 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 
        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.

SEC. 566. EXPANSION OF INSTRUCTION AVAILABLE AT THE NAVAL POSTGRADUATE 
              SCHOOL FOR ENLISTED MEMBERS OF THE ARMED FORCES.

    (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);
            (2) by inserting after subparagraph (C) the following new 
        subparagraph (D):
    ``(D)(i) The Secretary may, pursuant to regulations prescribed by 
the Secretary, 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 curricula.
    ``(ii) To be eligible for instruction under this subparagraph, an 
enlisted member shall hold a baccalaureate degree granted by an 
institution of higher education.
    ``(iii) Instruction shall be provided under this subparagraph 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) The regulations prescribed under clause (i) may include 
criteria for eligibility of enlisted members for instruction under this 
subparagraph and obligations for further service in the armed forces by 
enlisted members relating to receipt of such instruction.''; and
            (3) in subparagraph (E), as so redesignated, by striking 
        ``and (C)'' and inserting ``(C), and (D)''.
    (c) Conforming Amendment.--Subsection (b)(2) of such section is 
amended by striking ``(a)(2)(D)'' and inserting ``(a)(2)(E)''.
    (d) Repeal of Certain Requirements on Instruction.--Section 526 of 
the National Defense Authorization Act for Fiscal Year 2006 (Public Law 
109-163) is amended by striking subsections (c) and (d).

SEC. 567. MODIFICATION OF ACTIONS TO ADDRESS SEXUAL HARASSMENT AND 
              SEXUAL VIOLENCE AT THE SERVICE ACADEMIES.

    (a) Clarification of Scope of Actions.--Section 527 of the National 
Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136; 117 
Stat. 1468; 10 U.S.C. 4331 note) is amended--
            (1) in subsection (a)--
                    (A) in the subsection caption, by inserting 
                ``Sexual'' before ``Violence''; and
                    (B) in paragraph (1)--
                            (i) in subparagraph (A), by striking 
                        ``personnel of'' and inserting ``cadets at'';
                            (ii) in subparagraph (B), by striking 
                        ``personnel of'' and inserting ``midshipmen 
                        at''; and
                            (iii) in subparagraph (C), by striking 
                        ``personnel of'' and inserting ``cadets at'';
            (2) by inserting ``sexual'' before ``violence'' each place 
        it appears; and
            (3) by striking ``academy personnel'' each place it appears 
        and inserting ``cadets or midshipmen''.
    (b) Assessments of Academy Policies.--
            (1) Administration of assessments.--Subsection (b) of such 
        section is further amended--
                    (A) in paragraph (1)--
                            (i) by striking ``to conduct'' and 
                        inserting ``to provide''; and
                            (ii) by inserting ``(to be administered by 
                        the Department of Defense)'' after ``an 
                        assessment''; and
                    (B) in paragraph (2), by striking ``shall conduct'' 
                and inserting ``shall provide for the conduct of''.
            (2) Schedule for assessments.--Such subsection is further 
        amended--
                    (A) in the subsection caption, by striking ``Annual 
                Assessment'' and inserting ``Assessments Required'';
                    (B) in paragraph (1), by inserting ``specified in 
                paragraph (2)'' after ``each program year''; and
                    (C) in paragraph (2), by striking ``2007, and 
                2008'' and inserting ``2008, and 2010''.
    (c) Reports on Activities on Campus.--Subsection (c) of such 
section is further amended--
            (1) in the subsection caption, by striking ``Annual 
        Report'' and inserting ``Reports'';
            (2) in paragraph (1), by striking ``2007, and 2008'' and 
        inserting ``2008, and 2010'';
            (3) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``The annual report'' and inserting ``The 
                report''; and
                    (B) in subparagraph (D), by striking ``each of the 
                subsequent academy program years'' and inserting ``each 
                other academy program year covered by this 
                subsection''; and
            (4) in paragraphs (3) and (4), by striking ``the annual'' 
        and inserting ``each''.
    (d) Conforming Amendment.--The heading of such section is amended 
to read as follows:

``SEC. 527. ACTIONS TO ADDRESS SEXUAL HARASSMENT AND SEXUAL VIOLENCE AT 
              THE SERVICE ACADEMIES.''.

SEC. 568. 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 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' 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 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.

SEC. 569. 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 
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).

SEC. 570. 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.
    ``(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 5 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. 570A. MODIFICATION OF TIME LIMIT FOR USE OF ENTITLEMENT TO 
              EDUCATIONAL ASSISTANCE FOR RESERVE COMPONENT MEMBERS 
              SUPPORTING CONTINGENCY OPERATIONS AND OTHER OPERATIONS.

    (a) Modification.--Section 16164(a) of title 10, United States 
Code, is amended by striking ``this chapter while serving--'' and all 
that follows and inserting ``this chapter--
            ``(1) while the member is serving--
                    ``(A) in the Selected Reserve of the Ready Reserve, 
                in the case of a member called or ordered to active 
                service while serving in the Selected Reserve; or
                    ``(B) in the Ready Reserve, in the case of a member 
                ordered to active duty while serving in the Ready 
                Reserve (other than the Selected Reserve); and
            ``(2) in the case of a person who separates from the 
        Selected Reserve of the Ready Reserve after completion of a 
        period of active service described in section 16163 of this 
        title and completion of a service contract under other than 
        dishonorable conditions, during the 10-year period beginning on 
        the date on which the person separates from the Selected 
        Reserve.''.
    (b) Conforming Amendment.--Paragraph (2) of section 16165(a) of 
such title is amended to read as follows:
            ``(2) when the member separates from the Ready Reserve as 
        provided in section 16164(a)(1) of this title, or upon 
        completion of the period provided for in section 16164(a)(2) of 
        this title, as applicable.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 28, 2004, as if included in the enactment of the 
Ronald W. Reagan National Defense Authorization Act for Fiscal Year 
2005 (Public Law 108-375), to which such amendments relate.

            Subtitle E--Defense Dependents Education Matters

SEC. 571. FUNDING FOR ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT 
              BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND 
              DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.

    (a) Funding for Fiscal Year 2007.--Of the amount authorized to be 
appropriated pursuant to section 301(5) for operation and maintenance 
for Defense-wide activities--
            (1) $30,000,000 shall be available only for the purpose of 
        providing assistance to local educational agencies under 
        section 572(a) of the National Defense Authorization Act for 
        Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3271; 20 U.S.C. 
        7703b); and
            (2) $10,000,000 shall be available only for the purpose of 
        providing assistance to local educational agencies under 
        section 572(b) of that Act.
    (b) Treatment of Funding for Notification Purposes.--The funding 
provided under subsection (a) for fiscal year 2007 shall be treated as 
funding for that fiscal year for purposes of the notification of local 
educational agencies required by section 572(c) of the National Defense 
Authorization Act for Fiscal Year 2006 (119 Stat. 3272).
    (c) Transition of Military Dependents From Military to Civilian 
Schools.--
            (1) In general.--The Secretary of Defense shall work 
        collaboratively with the Secretary of Education in any efforts 
        to ease the transition of dependents of members of the Armed 
        Forces from attendance in Department of Defense dependent 
        schools to civilian schools in systems operated by local 
        educational agencies.
            (2) Utilization of existing resources.--In working with the 
        Secretary of Education under paragraph (1), the Secretary of 
        Defense may utilize funds authorized to be appropriated for 
        operation and maintenance for Defense-wide activities to share 
        expertise and experience of the Department of Defense Education 
        Activity with local educational agencies as dependents of 
        members of the Armed Forces make the transition from attendance 
        at Department of Defense dependent schools to attendance at 
        civilian schools in systems operated by such local educational 
        agencies, including such transitions resulting from defense 
        base closure and realignment, global rebasing, and force 
        restructuring.
            (3) Definitions.--In this subsection:
                    (A) The term ``expertise and experience'', with 
                respect to the Department of Defense Education 
                Activity, means resources of such activity relating 
                to--
                            (i) academic strategies which result in 
                        increased academic achievement;
                            (ii) curriculum development consultation 
                        and materials;
                            (iii) teacher training resources and 
                        materials;
                            (iv) access to virtual and distance 
                        learning technology capabilities and related 
                        applications for teachers; and
                            (v) such other services as the Secretary of 
                        Defense considers appropriate to improve the 
                        academic achievement of such students.
                    (B) 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)).
            (4) Expiration.--The authority of the Secretary of the 
        Defense under this subsection shall expire on September 30, 
        2011.

SEC. 572. 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. 573. PLAN TO ASSIST LOCAL EDUCATIONAL AGENCIES EXPERIENCING GROWTH 
              IN ENROLLMENT DUE TO FORCE STRUCTURE CHANGES, RELOCATION 
              OF MILITARY UNITS, OR BRAC.

    (a) Plan Required.--Not 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) 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 
        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) Update.--Not later than July 1, 2007, and every six months 
thereafter through January 1, 2011, the Secretary shall submit to the 
congressional defense committees an update of the report required by 
subsection (a). Each update shall include an update of each matter 
required under subsection (b) current as of the date of such update.
    (d) 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. 574. 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 Required.--The Secretary of Defense shall 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 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) Duration of Program.--The pilot program shall commence on 
October 1, 2007, and shall conclude on September 30, 2010.
    (d) Scope of Program.--The pilot program 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 in order 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.--
            (1) In general.--The pilot program shall be carried out at 
        military installations selected by the Secretary for purposes 
        of this section from among 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 by the Secretary under paragraph (1) 
        shall be an installation that permits 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 so selected.
    (f) Goals of Participating Installations.--Appropriate personnel at 
each military installation selected for participation in the pilot 
program shall develop goals, and specific outcome measures with respect 
to such goals, for the conduct of the pilot program at such 
installation.
    (g) Evaluation.--
            (1) Evaluation required.--Upon completion of the pilot 
        program at a military installation, the personnel referred to 
        in subsection (f) at such installation shall conduct an 
        evaluation and assessment of the success of the pilot program 
        at such installation in meeting the goals developed under that 
        subsection.
            (2) Report.--Upon completion of the evaluations under 
        paragraph (1) for all military installations participating in 
        the pilot program, the Secretary of Defense shall submit to the 
        congressional defense committees a report on such evaluations. 
        The report shall describe the results of such evaluations, and 
        may include such recommendations for legislative or 
        administrative action as the Secretary considers appropriate in 
        light of such evaluations, including recommendations for the 
        continuation of the pilot program.
    (h) Guidelines.--The Secretary shall issue guidelines applicable to 
the pilot program, including guidelines on the goals to be developed 
under subsection (f), specific outcome measures, and guidelines on the 
selection of curriculum and the conduct of developmental screening 
under the pilot program.
    (i) Funding.--Of the amounts authorized to be appropriated by 
section 301(1) for operation and maintenance for the Army, $1,500,000 
shall be available to carry out the pilot program in fiscal year 2007.

                       Subtitle F--Other Matters

SEC. 581. ADMINISTRATION OF OATHS.

    (a) In General.--Section 502 of title 10, United States Code, is 
amended by striking the flush matter at the end and inserting the 
following new flush matter:
``This oath may be taken before the President, the Vice President, the 
Secretary of Defense, any commissioned officer of any armed force, or 
any other person designated under regulations prescribed by the 
Secretary of Defense.''.
    (b) Conforming Amendment.--Section 1031 of such title is amended by 
striking ``Any commissioned officer'' and all that follows through ``on 
active duty,'' and inserting ``The President, the Vice President, the 
Secretary of Defense, any commissioned officer of an armed force, or 
any other person designated under regulations prescribed by the 
Secretary of Defense''.

SEC. 582. 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 
        the item relating to section 1060b and inserting the following 
        new item:

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

SEC. 583. MILITARY VOTING MATTERS.

    (a) Repeal of Periodic Inspector General Installation Visits for 
Assessment of Voting Assistance Programs.--Section 1566 of title 10, 
United States Code, is amended--
            (1) by striking subsection (d); and
            (2) by redesignating subsections (e) through (i) as 
        subsections (d) through (h), respectively.
    (b) 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).
    (c) 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 Overseas Citizens Absentee Voting Act 
        (42 U.S.C. 1973ff-6(1))), overseas employees of the Department 
        of Defense, and the dependents of such voters and employees, 
        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 congressional defense 
                committees 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);
                            (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 
                congressional defense committees a report detailing 
                plans for expanding the use of electronic voting 
                technology for individuals covered under the Uniformed 
                Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff 
                et seq.) for elections through November 30, 2010.

SEC. 584. PRESENTATION OF MEDAL OF HONOR FLAG TO PRIMARY NEXT OF KIN OF 
              MEDAL OF HONOR RECIPIENTS.

    (a) Army Recipients.--Section 3755 of title 10, United States Code, 
is amended--
            (1) by inserting ``(a) Presentation to Medal of Honor 
        Recipients.--'' before ``The President''; and
            (2) by striking ``after October 23, 2002''; and
            (3) by adding at the end the following new subsection:
    ``(b) Presentation to Primary Next of Kin.--The President may 
provide for the presentation of a Medal of Honor Flag to the primary 
living next of kin (as designated by the Secretary of Defense in 
regulations prescribed for purposes of this section) of a deceased 
medal of honor recipient described in subsection (a).''.
    (b) Navy and Marine Corps Recipients.--Section 6257 of such title 
is amended--
            (1) by inserting ``(a) In General.--'' before ``The 
        President''; and
            (2) by striking ``after October 23, 2002''; and
            (3) by adding at the end the following new subsection:
    ``(b) Presentation to Primary Next of Kin.--The President may 
provide for the presentation of a Medal of Honor Flag to the primary 
living next of kin (as designated by the Secretary of Defense in 
regulations prescribed for purposes of this section) of a deceased 
medal of honor recipient described in subsection (a).''.
    (c) Air Force Recipients.--Section 8755 of such title is amended--
            (1) by inserting ``(a) In General.--'' before ``The 
        President''; and
            (2) by striking ``after October 23, 2002''; and
            (3) by adding at the end the following new subsection:
    ``(b) Presentation to Primary Next of Kin.--The President may 
provide for the presentation of a Medal of Honor Flag to the primary 
living next of kin (as designated by the Secretary of Defense in 
regulations prescribed for purposes of this section) of a deceased 
medal of honor recipient described in subsection (a).''.
    (d) Coast Guard Recipients.--Section 505 of title 14, United States 
Code, is amended--
            (1) by inserting ``(a) In General.--'' before ``The 
        President''; and
            (2) by striking ``after October 23, 2002''; and
            (3) by adding at the end the following new subsection:
    ``(b) Presentation to Primary Next of Kin.--The President may 
provide for the presentation of a Medal of Honor Flag to the primary 
living next of kin (as designated by the Secretary of Homeland Security 
in regulations prescribed for purposes of this section) of a deceased 
medal of honor recipient described in subsection (a).''.

SEC. 585. MODIFICATION OF EFFECTIVE PERIOD OF AUTHORITY TO PRESENT 
              RECOGNITION ITEMS FOR RECRUITMENT AND RETENTION PURPOSES.

    Subsection (d) of section 2261 of title 10, United States Code, is 
amended to read as follows:
    ``(d) Effective Period.--The authority under this section shall be 
in effect during the period of any war or national emergency declared 
by the President or Congress.''.

SEC. 586. 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 as follows:
            (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.--
            (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 through individual case management 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 Department of Labor and the Department of Veterans 
        Affairs), shall assign the Center.
            (2) Database.--The activities of the Center under this 
        subsection shall include the establishment and maintenance of a 
        central database of information for purposes of tracking 
        severely wounded or injured servicemembers.
    (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. 587. SENSE OF SENATE ON NOTICE TO CONGRESS OF RECOGNITION OF 
              MEMBERS OF THE ARMED FORCES FOR EXTRAORDINARY ACTS OF 
              BRAVERY, HEROISM, AND ACHIEVEMENT.

    It is the sense of the Senate that the Secretary of Defense or the 
Secretary of the military department concerned should, upon awarding a 
medal to a member of the Armed Forces or otherwise commending or 
recognizing a member of the Armed Forces for an act of extraordinary 
heroism, bravery, achievement, or other distinction, notify the 
Committee on Armed Services of the Senate and House of Representatives, 
the Senators from the State in which such member resides, and the 
Member of the House of Representatives from the district in which such 
member resides of such extraordinary award, commendation, or 
recognition.

SEC. 588. 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 to relating to the provision of 
        military records as described in that subsection that the 
        Secretary considers appropriate.

SEC. 589. PURPLE HEART AWARD ELIGIBILITY.

    (a) Findings.--Congress makes the following findings:
            (1) The Purple Heart is the oldest military decoration in 
        the world in present use.
            (2) The Purple Heart was established on August 7, 1782, 
        during the Revolutionary War, when General George Washington 
        issued an order establishing the Honorary Badge of Distinction, 
        otherwise known as the Badge of Military Merit.
            (3) The award of the Purple Heart ceased with the end of 
        the Revolutionary War, but was revived in 1932, the 200th 
        anniversary of George Washington's birth, out of respect for 
        his memory and military achievements by War Department General 
        Orders No. 3, dated February 22, 1932.
            (4) The criteria for the award was originally announced in 
        War Department Circular dated February 22, 1932, and revised by 
        Presidential Executive Order 9277, dated December 3, 1942; 
        Executive Order 10409, dated February 12, 1952; Executive Order 
        11016, dated April 25, 1962; and Executive Order 12464, dated 
        February 23, 1984.
            (5) The Purple Heart is awarded in the name of the 
        President of the United States as Commander in Chief to members 
        of the Armed Forces who qualify under criteria set forth by 
        Presidential Executive Order.
    (b) Determination.--As part of the review and report required in 
subsection (d), the President shall make a determination on expanding 
eligibility to all deceased servicemembers held as a prisoner of war 
after December 7, 1941, and who meet the criteria establishing 
eligibility for the prisoner-of-war medal under section 1128 of title 
10, but who do not meet the criteria establishing eligibility for the 
Purple Heart.
    (c) Requirements.--In making the determination described in 
subsection (b), the President shall take into consideration--
            (1) the brutal treatment endured by thousands of POWs 
        incarcerated by enemy forces;
            (2) that many service members died due to starvation, 
        abuse, the deliberate withholding of medical treatment for 
        injury or disease, or other causes which do not currently meet 
        the criteria for award of the Purple Heart;
            (3) the views of veteran organizations, including the 
        Military Order of the Purple Heart;
            (4) the importance and gravity that has been assigned to 
        determining all available facts prior to a decision to award 
        the Purple Heart; and
            (5) the views of the Secretary of Defense and the Joint 
        Chiefs of Staff.
    (d) Report.--Not later than March 1, 2007, the President shall 
provide 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 to military members who die in captivity under unknown 
circumstances or as a result of conditions and treatment which 
currently do not qualify the decedent for award of the Purple Heart; 
and for military members who survive captivity as prisoners of war, but 
die thereafter as a result of disease or disability incurred during 
captivity.

SEC. 590. COMPREHENSIVE REVIEW ON PROCEDURES OF THE DEPARTMENT OF 
              DEFENSE ON MORTUARY AFFAIRS.

    (a) Report.--As soon as practicable after the completion of the 
comprehensive review of the procedures of the Department of Defense on 
mortuary affairs, the Secretary of Defense shall submit to the 
congressional defense committees a report on the review.
    (b) Additional Elements.--In conducting the comprehensive review 
described in subsection (a), the Secretary shall also address, in 
addition to any other matters covered by the review, the following:
            (1) The utilization of additional or increased 
        refrigeration (including icing) in combat theaters in order to 
        enhance preservation of remains.
            (2) The relocation 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 matters that the Secretary considers 
        appropriate in order to speed the return of remains to the 
        United States in a non-decomposed state.
    (c) Additional Element 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, briefs survivors of military decedents on the cause 
        of, and any investigation into, the death of such military 
        decedents and on the disposition and transportation of the 
        remains of such decedents, which process shall--
                    ``(A) provide for the provision of such briefings 
                by fully qualified Department personnel;
                    ``(B) ensure briefings take place as soon as 
                possible after death and updates are provided in a 
                timely manner when new information becomes available;
                    ``(C) ensure that--
                            ``(i) such briefings and updates relate the 
                        most complete and accurate information 
                        available at the time of such briefings or 
                        updates, as the case may be; and
                            ``(ii) incomplete or unverified information 
                        is identified as such during the course of such 
                        briefings or updates; and
                    ``(D) include procedures by which such survivors 
                shall, upon request, receive updates or supplemental 
                information on such briefings or updates from qualified 
                Department personnel.''.

SEC. 591. REPORT ON OMISSION OF SOCIAL SECURITY NUMBERS ON MILITARY 
              IDENTIFICATION CARDS.

    (a) Report.--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 Number of the 
individual identified by such military identification card.
    (b) Military Identification Card Defined.--In this section, the 
term ``military identification card'' has the meaning given the term 
``military ID card'' in section 1060b(b)(1) of title 10, United States 
Code.

SEC. 592. FUNERAL CEREMONIES FOR VETERANS.

    (a) Support for Ceremonies by Details Consisting Solely of Members 
of Veterans and Other Organizations.--
            (1) Support of ceremonies.--Section 1491 of title 10, 
        United States Code, is amended--
                    (A) by redesignating subsections (e), (f), (g), and 
                (h) as subsections (f), (g), (h), and (i), 
                respectively; and
                    (B) by inserting after subsection (d) the following 
                new subsection (e):
    ``(e) Support for Funeral Honors Details Composed of Members of 
Veterans Organizations.--(1) Subject to such regulations and procedures 
as the Secretary of Defense may prescribe, the Secretary of the 
military department of which a veteran was a member may support the 
conduct of funeral honors for such veteran that are provided solely by 
members of veterans organizations or other organizations referred to in 
subsection (b)(2).
    ``(2) The provision of support under this subsection is subject to 
the availability of appropriations for that purpose.
    ``(3) The support provided under this subsection may include the 
following:
            ``(A) Reimbursement for costs incurred by organizations 
        referred to in paragraph (1) in providing funeral honors, 
        including costs of transportation, meals, and similar costs.
            ``(B) Payment to members of such organizations providing 
        such funeral honors of the daily stipend prescribed under 
        subsection (d)(2).''.
            (2) Conforming amendments.--Such section is further 
        amended--
                    (A) in subsection (d)(2), by inserting ``and 
                subsection (e)'' after ``paragraph (1)(A)''; and
                    (B) in paragraph (1) of section (f), as 
                redesignated by subsection (a)(1) of this section, by 
                inserting ``(other than a requirement in subsection 
                (e)'' after ``pursuant to this section''.
    (b) Use of Excess M-1 Rifles for Ceremonial and Other Purposes.--
Section 4683 of such title is amended--
            (1) in subsection (a), by adding at the end the following 
        new paragraph:
    ``(3) Rifles loaned or donated under paragraph (1) may be used by 
an eligible designee for funeral ceremonies of a member or former 
member of the armed forces and for other ceremonial purposes.'';
            (2) in subsection (c), by inserting after 
        ``accountability'' the following: ``, provided that such 
        conditions do not unduly hamper eligible designees from 
        participating in funeral ceremonies of a member or former 
        member of the armed forces or other ceremonies'';
            (3) in subsection (d)--
                    (A) in paragraph (2), by striking ``; or'' and 
                inserting ``or fire department;'';
                    (B) in paragraph (3), by striking the period at the 
                end and inserting ``; or''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(4) any other member in good standing of an organization 
        described in paragraphs (1), (2), or (3).''; and
            (4) by adding at the end the following new subsection:
    ``(e) Eligible Designee Defined.--In this section, the term 
`eligible designee' means a designee of an eligible organization who--
            ``(1) is a spouse, son, daughter, nephew, niece, or other 
        family relation of a member or former member of the armed 
        forces;
            ``(2) is at least 18 years of age; and
            ``(3) has successfully completed a formal firearm training 
        program or a hunting safety program.''.

          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.

    (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 are as follows:

                            MONTHLY BASIC PAY
                        COMMISSIONED OFFICERS\1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-10\2\.........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
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
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-10\2\.........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
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\..........   4,833.30   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  $13,659.0  $13,725.9  $14,011.2  $14,508.60
                                     0          0          0
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\.........  $14,508.6  $15,234.0  $15,234.0  $15,995.7  $15,995.70
                          0          0          0          0
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\.........  $16,795.5  $16,795.5
                          0          0
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 pay rates specified in this table, the actual
  basic pay for commissioned officers in grades O-7 through O-10 may not
  exceed the rate of pay for level II of the Executive Schedule and the
  actual basic pay for all other officers, including warrant 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
  calculated to be $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 the 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.


  COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN
                   ENLISTED MEMBER OR WARRANT OFFICER
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    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
------------------------------------------------------------------------


                            WARRANT OFFICERS
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    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..............   4,589.50   4,589.40
W-1..............   4,170.00   4,170.00
------------------------------------------------------------------------


                           ENLISTED MEMBERS\1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    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.   1,301.40   1,301.40   1,301.40   1,301.40
                          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..............   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..............   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.
\2\Subject to the preceding footnote, 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, basic pay for this grade 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 the grade E-1 who have served less than 4
  months on active duty, basic pay is $1,203.90.

SEC. 602. INCREASE IN MAXIMUM RATE OF BASIC PAY FOR GENERAL AND FLAG 
              OFFICER GRADES.

    (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) 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. 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 this subsection (including the prohibition 
as it relates to a member of the National Guard while not in Federal 
service) shall apply to--
            ``(A) any work or study performed on or after September 7, 
        1962; and
            ``(B) any claim based on such work or study arising after 
        that date.''.

SEC. 604. 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)(3) of title 37, United States Code (as amended by 
subsection (a)). 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. 605. ADDITIONAL HOUSING ALLOWANCE FOR RESERVES ON ACTIVE DUTY IN 
              SUPPORT OF A CONTINGENCY OPERATION.

    (a) In General.--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)(A) Under regulations prescribed by the Secretary of Defense 
and the Secretary of Homeland Security with respect to the Coast Guard 
when it is not operating as a service in the Department of the Navy, 
the Secretary concerned may authorize payment of a housing allowance to 
a member described in paragraph (1) at a monthly rate equal to the rate 
of the basic allowance for housing under subsection (b) or the overseas 
basic allowance for housing under subsection (c), whichever applies to 
that location, for members of the regular components at that location 
in the same grade without dependents.
    ``(B) A member may concurrently receive a basic allowance for 
housing under paragraph (1) and a housing allowance under this 
paragraph, but may not receive the portion of the allowance, if any, 
authorized under section 404 of this title for lodging expenses if a 
housing allowance is authorized to be paid under this paragraph.''; and
            (3) in paragraph (3), as so redesignated, by striking 
        ``Paragraph (1)'' and inserting ``Paragraphs (1) and (2)''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2006, and shall apply with respect to months 
beginning on or after that date.

SEC. 606. EXTENSION OF TEMPORARY CONTINUATION OF HOUSING ALLOWANCE FOR 
              DEPENDENTS OF MEMBERS DYING ON ACTIVE DUTY TO SPOUSES WHO 
              ARE MEMBERS OF THE UNIFORMED SERVICES.

    (a) In General.--Section 403(l) of title 37, United States Code, is 
amended--
            (1) by redesignating paragraph (3) as paragraph (4);
            (2) by inserting after paragraph (2) the following new 
        paragraph (3):
    ``(3) A member of the uniformed services who is the spouse of a 
deceased member described in paragraph (2) may be paid a basic 
allowance for housing as provided for in that paragraph. An allowance 
paid under this paragraph is in addition to any other pay and 
allowances to which the member of the uniformed services is entitled 
under any other provision of law.''; and
            (3) in paragraph (4), as so redesignated, by striking 
        ``(2)'' and inserting ``(2) or (3)''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2006, and shall apply with respect to deaths 
occurring on or after that date.

           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''.

SEC. 612. EXTENSION OF CERTAIN BONUS AND SPECIAL PAY AUTHORITIES FOR 
              CERTAIN 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''.
    (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. INCREASE IN SPECIAL PAY FOR SELECTED RESERVE HEALTH CARE 
              PROFESSIONALS IN CRITICALLY SHORT WARTIME SPECIALTIES.

    Increase in Special Pay.--Section 302g(a) of title 37, United 
States Code, is amended by striking ``$10,000'' and inserting 
``$25,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2006, and shall apply to written agreements 
entered into under section 302g of title 37, United States Code, on or 
after that date.

SEC. 616. EXPANSION AND ENHANCEMENT OF ACCESSION BONUS AUTHORITIES FOR 
              CERTAIN OFFICERS IN HEALTH CARE SPECIALITIES.

    (a) Increase in 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.--(1) A person who is a graduate 
of an accredited school of medicine or osteopathy in a specialty 
described in subsection (c) 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.
    ``(2) The amount of an accession bonus under paragraph (1) may not 
exceed $400,000.
    ``(b) 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 described in subsection (c).
    ``(c) Covered Specialties.--A specialty described in this 
subsection is 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 service 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 described in 
subsection (c).
    ``(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.--Chapter 5 of title 37, United States Code, 
as amended by subsection (b), is further amended by inserting after 
section 302k the following new section:
``Sec. 302l. Special pay: accession bonus for dental specialist 
              officers in critically short wartime specialties
    ``(a) Accession Bonus Authorized.--(1) A person who is a graduate 
of an accredited dental school in a specialty described in subsection 
(c) 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.
    ``(2) The amount of an accession bonus under paragraph (1) may not 
exceed $400,000.
    ``(b) 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 described in subsection (c).
    ``(c) Covered Specialties.--A specialty described in this 
subsection is 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 service 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 Dental Corps of the Army or the Navy or as an officer of the Air 
Force designated as a dental officer in a specialty described in 
subsection (c).
    ``(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 
chapter 5 of such title is amended by inserting after the item relating 
to section 302j the following new item:

``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) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2006.

SEC. 617. INCREASE IN NUCLEAR CAREER ACCESSION BONUS FOR NUCLEAR-
              QUALIFIED OFFICERS.

    (a) Increase.--Section 312b(a)(1) of title 37, United States Code, 
is amended by striking ``$20,000'' and inserting ``$30,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2006, and shall apply with respect to 
agreements under section 312b of title 37, United States Code, entered 
into on or after that date.

SEC. 618. 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) Relaxation of Limitation on Selective Early Retirement.--
Section 638(a)(2) of title 10, United States Code, is amended by adding 
at the end the following new sentence: ``However, during the period 
beginning on October 1, 2006, and ending on December 31, 2012, such 
number may be more than 30 percent of the number of officers considered 
in each competitive category, but may not be more than 30 percent of 
the number of officers considered in each grade.''.
    (c) Enhanced Authority for Selective Early Retirement and Early 
Discharges.--
            (1) Renewal of authority.--Subsection (a) of section 638a 
        of title 10, United States Code, is amended by inserting ``and 
        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 
        retirement.--Subsection (c)(1) of such section is amended by 
        adding at the end the following new sentence: ``However, during 
        the period beginning on October 1, 2006, and ending on December 
        31, 2012, such number may be more than 30 percent of the number 
        of officers considered in each competitive category, but may 
        not be more than 30 percent of the number of officers 
        considered in each grade.''.
            (3) Relaxation of limitation on selective early 
        discharge.--Subsection (d)(2) of such section is amended--
                    (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''.
    (d) Increase in Amount of Incentive Bonus for Transfer Between 
Armed Forces.--Section 327(d)(1) of title 37, United States Code, is 
amended by striking ``$2,500'' and inserting ``$10,000''.

SEC. 619. 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''.

SEC. 620. 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 adding at the end the following new section:
``Sec. 329. Special pay: accession bonus for officer candidates
    ``(a) Accession Bonus Authorized.--Under regulations prescribed by 
the Secretary concerned, a person who, during the period beginning on 
October 1, 2006, and ending on December 31, 2007, executes a written 
agreement described in subsection (b) may, upon acceptance of the 
agreement by the Secretary concerned, be paid an accession bonus in an 
amount not to exceed $8,000 determined by the Secretary concerned.
    ``(b) Agreement.--A written agreement described in this subsection 
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 such agreement.
    ``(c) 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.
    ``(d) 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.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 5 of such title is amended by adding at 
        the end the following new item:

``329. Special pay: accession bonus for officer candidates.''.
            (3) 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) In general.--The Secretary of the Army may pay a bonus 
        to a 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) Limitation on amount.--The amount of the bonus payable 
        to a person under this subsection may not exceed $8,000.
            (3) Construction with 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. 621. ENHANCEMENT OF BONUS TO ENCOURAGE MEMBERS OF THE ARMY 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) In general.--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) 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).''.
    (c) 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.''.
    (d) 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 such member is entitled under title 10, 37, or 
38, United States Code, or under any other provision of law.''.
    (e) 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. 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 inserting ``or civilian employees of the Department 
of Defense'' after ``members of the armed forces''.
    (b) Requirement for Payment.--Effective March 1, 2008, such 
subsection is further amended by striking ``may include'' and inserting 
``shall include''.
    (c) Requirement for Deduction Upon Failure of Carrier To Settle.--
Subsection (b) of such section is amended by striking ``may be 
deducted'' and inserting ``shall be deducted''.
    (d) Certification on Families First Program.--The Secretary of 
Defense shall submit to the congressional defense committees a report 
containing the certifications of the Secretary on the following matters 
with respect to the program of the Department of Defense known as 
``Families First'':
            (1) Whether there is an alternative to the system under the 
        program that would provide equal or greater capability at less 
        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.
    (e) Comptroller General Reports on Families First Program.--
            (1) Review.--The Comptroller General of the United States 
        shall conduct a review and assessment of the progress of the 
        Department of Defense in implementing the Families First 
        program.
            (2) Elements.--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 
        Committees on Armed Services of the Senate and the House of 
        Representatives reports as follows:
                    (A) An interim report on the review and assessment 
                required by paragraph (1) not later than December 1, 
                2006.
                    (B) A final report on the review and assessment by 
                not later than June 1, 2007.

             Subtitle D--Retired Pay and Survivor Benefits

SEC. 641. MODIFICATION OF DEPARTMENT OF DEFENSE CONTRIBUTIONS TO 
              MILITARY RETIREMENT FUND AND GOVERNMENT CONTRIBUTIONS TO 
              MEDICARE-ELIGIBLE RETIREE HEALTH CARE FUND.

    (a) Department of Defense Military Retirement Fund.--
            (1) Determination of contributions.--Section 1465 of title 
        10, United States Code, is amended--
                    (A) in subsection (b)(1)--
                            (i) in subparagraph (A)(ii)--
                                    (I) by striking ``(other than 
                                active duty for training)'';
                                    (II) by striking ``(other than 
                                full-time National Guard duty for 
                                training only)''; and
                                    (III) by inserting before the 
                                period at the end the following: ``, 
                                except that amounts expected to be paid 
                                to members who would be excluded from 
                                counting for active-duty end strength 
                                purposes by section 115(i) of this 
                                title for duty covered by such section 
                                shall be excluded''; and
                            (ii) in subparagraph (B)(ii)--
                                    (I) by striking ``Ready Reserve'' 
                                and inserting ``Selected Reserve''; and
                                    (II) by striking ``and other than 
                                members on full-time National Guard 
                                duty other than for training) who are'' 
                                and inserting ``) for duty''; and
                    (B) in subsection (c)(1)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``(other than 
                                active duty for training)'';
                                    (II) by striking ``(other than 
                                full-time National Guard duty for 
                                training only)''; and
                                    (III) by inserting ``other than 
                                members who would be excluded from 
                                counting for active-duty end strength 
                                purposes by section 115(i) of this 
                                title for duty covered by such 
                                section,'' after ``full-time National 
                                Guard duty,''; and
                            (ii) in subparagraph (B)--
                                    (I) by striking ``Ready Reserve'' 
                                and inserting ``Selected Reserve''; and
                                    (II) by striking ``and other than 
                                members on full-time National Guard 
                                duty other than for training) who are'' 
                                and inserting ``) for duty''.
            (2) Payments.--Section 1466(a) of such title is amended--
                    (A) in paragraph (1)(B)--
                            (i) by striking ``(other than active duty 
                        for training)'';
                            (ii) by striking ``(other than full-time 
                        National Guard duty for training only)''; and
                            (iii) by inserting before the period at the 
                        end the following: ``, except that amounts 
                        accrued for that month by members who would be 
                        excluded from counting for active-duty end 
                        strength purposes by section 115(i) of this 
                        title for duty covered by such section shall be 
                        excluded''; and
                    (B) in paragraph (2)(B)--
                            (i) by striking ``Ready Reserve'' and 
                        inserting ``Selected Reserve''; and
                            (ii) by striking ``and other than members 
                        on full-time National Guard duty other than for 
                        training) who are'' and inserting ``) for 
                        duty''.
    (b) Department of Defense Medicare-Eligible Retiree Health Care 
Fund.--
            (1) Exclusion of cadets and midshipmen from treatment on 
        active duty.--Section 1111(b) of such title is amended 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 United 
        States Coast Guard Academy, or a midshipman at the United 
        States Naval Academy.''.
            (2) Determination of contributions.--Section 1115 of such 
        title is amended--
                    (A) in subsection (b)--
                            (i) in paragraph (1)(B)--
                                    (I) by striking ``(other than 
                                active duty for training)'';
                                    (II) by striking ``(other than 
                                full-time National Guard duty for 
                                training only)''; and
                                    (III) by inserting before the 
                                period at the end the following: ``, 
                                other than members who would be 
                                excluded from counting for active-duty 
                                end strength purposes by section 115(i) 
                                of this title for duty covered by such 
                                section''; and
                            (ii) in paragraph (2)(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)''; and
                    (B) in subsection (c)(1)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``(other than 
                                active duty for training)'';
                                    (II) by striking ``(other than 
                                full-time National Guard duty for 
                                training only)''; and
                                    (III) by inserting before the 
                                semicolon the following: ``, other than 
                                members who would be excluded from 
                                counting for active-duty end strength 
                                purposes by section 115(i) of this 
                                title for duty covered by such 
                                section''; and
                            (ii) in subparagraph (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) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2007.

SEC. 642. REPEAL OF REQUIREMENT OF REDUCTION OF SBP SURVIVOR ANNUITIES 
              BY DEPENDENCY AND INDEMNITY COMPENSATION.

    (a) Repeal.--
            (1) In general.--Subchapter II of chapter 73 of title 10, 
        United States Code, is amended as follows:
                    (A) In section 1450, by striking subsection (c).
                    (B) In section 1451(c)--
                            (i) by striking paragraph (2); and
                            (ii) by redesignating paragraphs (3) and 
                        (4) as paragraphs (2) and (3), respectively.
            (2) Conforming amendments.--Such subchapter is further 
        amended as follows:
                    (A) In section 1450--
                            (i) by striking subsection (e); and
                            (ii) by striking subsection (k).
                    (B) In section 1451(g)(1), by striking subparagraph 
                (C).
                    (C) In section 1452--
                            (i) in subsection (f)(2), by striking 
                        ``does not apply--'' and all that follows and 
                        inserting ``does not apply in the case of a 
                        deduction made through administrative error.''; 
                        and
                            (ii) by striking subsection (g).
                    (D) In section 1455(c), by striking ``, 
                1450(k)(2),''.
    (b) Prohibition on Retroactive Benefits.--No benefits may be paid 
to any person for any period before the effective date provided under 
subsection (e) by reason of the amendments made by subsection (a).
    (c) Return of SBP Premiums Previously Refunded to SBP Recipients.--
            (1) Return of certain refunded amounts required.--Under 
        regulations prescribed by the Secretary of Defense, a surviving 
        spouse who is or has been in receipt of an annuity under the 
        Survivor Benefit Plan under subchapter II of chapter 73 of 
        title 10, United States Code, that is in effect before the 
        effective date provided under subsection (e) and that is 
        adjusted by reason of the amendments made by subsection (a) and 
        who has received a refund of retired pay under section 1450(e) 
        of title 10, United States Code (as in effect on the day before 
        the effective date provided under subsection (e)), shall be 
        required to repay such refund to the United States.
            (2) Terms and conditions.--A surviving spouse repaying a 
        refund to the United States under this subsection shall not be 
        required to pay the United States any interest that would 
        otherwise accrue or have accrued on any balance of such refund 
        while such balance remains unpaid to the United States under 
        this subsection. The amount repayable to the United States 
        shall be repayable in a lump sum or over a period of years (not 
        to exceed 10 years) agreed to by the surviving spouse or 
        specified by the Secretary of Defense, in the absence of such 
        an agreement.
            (3) Waiver of repayment.--The Secretary of Defense may 
        waive the repayment of a refund under this subsection if the 
        Secretary determines that--
                    (A) hardship or other circumstances make repayment 
                of such refund unwarranted;
                    (B) repayment of such refund would otherwise not be 
                in the best interests of the United States.
    (d) Reconsideration of Optional Annuity.--Section 1448(d)(2)(B) of 
title 10, United States Code, is amended by adding at the end the 
following new sentences: ``The surviving spouse, however, may elect to 
terminate an annuity under this subparagraph in accordance with 
regulations prescribed by the Secretary concerned. Upon such an 
election, payment of an annuity to dependent children under this 
subparagraph shall terminate effective on the first day of the first 
month that begins after the date on which the Secretary concerned 
receives notice of the election, and, beginning on that day, an annuity 
shall be paid to the surviving spouse under paragraph (1) instead.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on the later of--
            (1) the first day of the first month that begins after the 
        date of the enactment of this Act; or
            (2) the first day of the fiscal year that begins in the 
        calendar year in which this Act is enacted.

SEC. 643. EFFECTIVE DATE OF PAID-UP COVERAGE UNDER SURVIVOR BENEFIT 
              PLAN.

    Section 1452(j) of title 10, United States Code, is amended by 
striking ``October 1, 2008'' and inserting ``October 1, 2006''.

SEC. 644. EXPANSION OF CONDITIONS FOR DIRECT PAYMENT OF DIVISIBLE 
              RETIRED PAY.

    (a) Repeal of Certain Condition.--Section 1408(d) of title 10, 
United States Code, is amended--
            (1) by striking paragraph (2); and
            (2) by redesignating paragraphs (3) through (7) as 
        paragraphs (2) through (6), respectively.
    (b) Effective Date.--
            (1) In general.--The amendments made by subsection (a) 
        shall take effect on the first day of the first month that 
        begins more than 120 days after the date of the enactment of 
        this Act.
            (2) Prohibition on retroactive payments.--No payment may be 
        made under section 1408(d) of title 10, United States Code, to 
        or for the benefit of any person covered by paragraph (2) of 
        such section (as in effect on the day before the effective date 
        specified in paragraph (1)) for any period before such 
        effective date.

SEC. 645. AUTHORITY FOR COST OF LIVING ADJUSTMENTS OF RETIRED PAY 
              TREATED AS DIVISIBLE PROPERTY.

    (a) In General.--Section 1408 of title 10, United States Code, is 
amended--
            (1) by redesignating subsections (i), (j), and (k) as 
        subsections (j), (k), and (l), respectively; and
            (2) by inserting after subsection (h) the following new 
        subsection (i):
    ``(i) Cost of Living Adjustments of Divisible Property.--A court 
order under subsection (a)(2)(C) may provide for the adjustment of the 
amount, if expressed in dollars, payable from the disposable retired 
pay of a member at the same time and in the same manner as retired pay 
is adjusted to reflect changes in the Consumer Price Index under 
section 1401a of this title.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of this Act, and shall apply 
with respect to court orders that become effective after the end of the 
90-day period beginning on the date of enactment of this Act.

SEC. 646. NOTICE AND COPY TO MEMBERS OF COURT ORDERS ON PAYMENT OF 
              RETIRED PAY.

    (a) Waiver of Notice.--Subsection (g) of section 1408 of title 10, 
United States Code, is amended--
            (1) by inserting ``(1)'' before ``A person''; and
            (2) by adding at the end the following new paragraph:
    ``(2) A member may waive receipt of notice on a court order 
otherwise required by paragraph (1). The waiver shall take such form 
and include such requirements as the Secretary concerned may 
prescribe.''.
    (b) Copy of Court Order Upon Request.--Such subsection is further 
amended--
            (1) in paragraph (1), as designated by subsection (a)(1) of 
        this section, by striking ``(together with a copy of such 
        order)''; and
            (2) by adding at the end the following new paragraph:
    ``(3) Upon the request of a member, written notice of a court order 
under paragraph (1) shall include a copy of the court order.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date that is 90 days after the date of the enactment of 
this Act, and shall apply with respect to court orders received on or 
after such date.

SEC. 647. RETENTION OF ASSISTIVE TECHNOLOGY AND DEVICES BY CERTAIN 
              MEMBERS OF THE ARMED FORCES AFTER SEPARATION FROM 
              SERVICE.

    (a) Retention Authorized.--Chapter 58 of title 10, United States 
Code, is amended by adding at the end the following new section:
``Sec. 1154. Retention of assistive technology and devices provided 
              before separation
    ``(a) In General.--Under regulations prescribed by the Secretary of 
Defense, a member of the armed forces who is provided an assistive 
technology or assistive technology device while a member of the armed 
forces for a severe or debilitating illness or injury incurred or 
aggravated by such member on active duty may retain such assistive 
technology or assistive technology device after separation from the 
armed forces.
    ``(b) Definitions.--In this section, the terms `assistive 
technology' and `assistive technology device' have the meaning given 
such terms in section 3 of the Assistive Technology Act of 1998 (29 
U.S.C. 3002).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 58 of such title is amended by adding at the end the following 
new item:

``1154. Retention of assistive technology and devices provided before 
                            separation.''.

SEC. 648. RENAMING OF DEATH GRATUITY PAYABLE FOR DEATHS OF MEMBERS OF 
              THE ARMED FORCES AS FALLEN HERO COMPENSATION.

    (a) In General.--Subchapter II of chapter 75 of title 10, United 
States Code, is amended as follows:
            (1) In section 1475(a), by striking ``have a death gratuity 
        paid'' and inserting ``have fallen hero compensation paid''.
            (2) In section 1476(a)--
                    (A) in paragraph (1), by striking ``a death 
                gratuity'' and inserting ``fallen hero compensation''; 
                and
                    (B) in paragraph (2), by striking ``A death 
                gratuity'' and inserting ``Fallen hero compensation''.
            (3) In section 1477(a), by striking ``A death gratuity'' 
        and inserting ``Fallen hero compensation''.
            (4) In section 1478(a), by striking ``The death gratuity'' 
        and inserting ``The amount of fallen hero compensation''.
            (5) In section 1479(1), by striking ``the death gratuity'' 
        and inserting ``fallen hero compensation''.
            (6) In section 1489--
                    (A) in subsection (a), by striking ``a gratuity'' 
                in the matter preceding paragraph (1) and inserting 
                ``fallen hero compensation''; and
                    (B) in subsection (b)(2), by inserting ``or other 
                assistance'' after ``lesser death gratuity''.
    (b) Clerical Amendments.--
            (1) Heading amendments.--Such subchapter is further amended 
        by striking ``Death Gratuity:'' each place it appears in the 
        heading of sections 1475 through 1480 and 1489 and inserting 
        ``Fallen Hero Compensation:''.
            (2) Table of sections.--The table of sections at the 
        beginning of such subchapter is amended by striking ``Death 
        gratuity:'' in the items relating to sections 1474 through 1480 
        and 1489 and inserting ``Fallen hero compensation:''.
    (c) General References.--Any reference to a death gratuity payable 
under subchapter II of chapter 75 of title 10, United States Code, in 
any law, regulation, document, paper, or other record of the United 
States shall be deemed to be a reference to fallen hero compensation 
payable under such subchapter, as amended by this section.

SEC. 649. EFFECTIVE DATE OF TERMINATION OF PHASE-IN OF CONCURRENT 
              RECEIPT FOR VETERANS WITH SERVICE-CONNECTED DISABILITIES 
              RATED AS TOTAL BY VIRTUE OF UNEMPLOYABILITY.

    (a) In General.--Section 1414(a)(1) of title 10, United States 
Code, is amended by striking ``100 percent'' the first place it appears 
and all that follows and inserting ``100 percent and in the case of a 
qualified retiree receiving veterans' disability compensation at the 
rate payable for a 100 percent disability by reason of a determination 
of individual unemployability, payment of retired pay to such veteran 
is subject to subsection (c) only during the period beginning on 
January 1, 2004, and ending on December 31, 2004.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on December 31, 2004.

SEC. 650. DETERMINATION OF RETIRED PAY BASE OF GENERAL AND FLAG 
              OFFICERS BASED ON RATES OF BASIC PAY PROVIDED BY LAW.

    (a) Determination of Retired Pay Base.--
            (1) In general.--Chapter 71 of title 10, United States 
        Code, is amended by inserting after section 1407 the following 
        new section:
``Sec. 1407a. Retired pay base: members who were general or flag 
              officers
    ``Notwithstanding any other provision of law, if the determination 
of the retired pay base or retainer pay base under section 1406 or 1407 
of this title with respect to a person who was a commissioned officer 
in pay grades O-7 through O-10 involves a rate or rates of basic pay 
that were subject to a reduction under section 203(a)(2) of title 37, 
such determination shall be made utilizing such rate or rates of basic 
pay in effect as provided by law rather than such rate or rates as so 
reduced under section 203(a)(2) of title 37.''.
            (2) Clerical amendment.--The table of sections for chapter 
        71 of such title is amended by inserting after the item 
        relating to section 1407 the following new item:

``1407a. Retired pay base: members who were general or flag 
                            officers.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2006, and shall apply with respect to the 
computation of retired pay for members of the Armed Forces who retire 
on or after that date.

SEC. 651. INAPPLICABILITY OF RETIRED PAY MULTIPLIER MAXIMUM PERCENTAGE 
              TO 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 in any service, 
                                regardless of when served, 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, regardless of when served, under 
                conditions authorized for purposes of this paragraph 
                during a period designated by the Secretary of Defense 
                for purposes of this paragraph.''.

SEC. 652. 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) 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. 653. COMMENCEMENT OF RECEIPT OF NON-REGULAR SERVICE RETIRED PAY BY 
              MEMBERS OF THE READY RESERVE ON ACTIVE FEDERAL STATUS OR 
              ACTIVE DUTY FOR SIGNIFICANT PERIODS.

    (a) Reduced Eligibility Age.--Section 12731 of title 10, United 
States Code, is amended--
            (1) in subsection (a), by striking paragraph (1) and 
        inserting the following:
            ``(1) has attained the eligibility age applicable under 
        subsection (f) to that person;''; and
            (2) by adding at the end the following new subsection:
    ``(f)(1) Subject to paragraph (2), the eligibility age for purposes 
of subsection (a)(1) is 60 years of age.
    ``(2)(A) In the case of a person who as a member of the Ready 
Reserve serves on active duty or performs active service described in 
subparagraph (B) after September 11, 2001, the eligibility age for 
purposes of subsection (a)(1) shall be reduced below 60 years of age by 
three months for each aggregate of 90 days on which such person so 
performs in any fiscal year after such date, subject to subparagraph 
(C). A day of duty may be included in only one aggregate of 90 days for 
purposes of this subparagraph.
    ``(B)(i) Service on active duty described in this subparagraph is 
service on active duty pursuant to a call or order to active duty under 
a provision of law referred to in section 101(a)(13)(B) of this title 
or under section 12301(d) of this title. Such service does not include 
service on active duty pursuant to a call or order to active duty under 
section 12310 of this title.
    ``(ii) Active service described in this subparagraph is service 
under a call to active service authorized by the President or the 
Secretary of Defense under section 502(f) of title 32 for purposes of 
responding to a national emergency declared by the President or 
supported by Federal funds.
    ``(C) The eligibility age for purposes of subsection (a)(1) may not 
be reduced below 50 years of age for any person under subparagraph 
(A).''.
    (b) Continuation of Age 60 as Minimum Age for Eligibility of Non-
Regular Service Retirees for Health Care.--Section 1074(b) of such 
title is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following new paragraph:
    ``(2) Paragraph (1) does not apply to a member or former member 
entitled to retired pay for non-regular service under chapter 1223 of 
this title who is under 60 years of age.''.
    (c) Administration of Related Provisions of Law or Policy.--With 
respect to any provision of law, or of any policy, regulation, or 
directive of the executive branch that refers to a member or former 
member of the uniformed services as being eligible for, or entitled to, 
retired pay under chapter 1223 of title 10, United States Code, but for 
the fact that the member or former member is under 60 years of age, 
such provision shall be carried out with respect to that member or 
former member by substituting for the reference to being 60 years of 
age a reference to having attained the eligibility age applicable under 
subsection (f) of section 12731 of title 10, United States Code (as 
added by subsection (a)), to such member or former member for 
qualification for such retired pay under subsection (a) of such 
section.
    (d) Effective Date and Applicability.--The amendment made by 
subsection (a) shall take effect as of September 11, 2001, and shall 
apply with respect to applications for retired pay that are submitted 
under section 12731(a) of title 10, United States Code, on or after the 
date of the enactment of this Act.

                       Subtitle E--Other Matters

SEC. 661. AUDIT OF PAY ACCOUNTS OF MEMBERS OF THE ARMY EVACUATED FROM A 
              COMBAT ZONE FOR INPATIENT CARE.

    (a) Audit Required.--
            (1) In general.--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.
            (2) Report.--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 paragraph (1).
            (3) Report elements.--The report under paragraph (2) shall 
        include the following:
                    (A) A list of each member of the Army described in 
                paragraph (1) identified (in a manner that protects the 
                privacy of members so listed) by--
                            (i) date of wound or injury on which 
                        inclusion of such member on the list is based; 
                        and
                            (ii) grade and unit designation as of such 
                        date.
                    (B) For each member so listed, a statement of any 
                underpayment of each of any pay, allowance, or other 
                monetary benefit to which such member was entitled 
                during the period beginning on the date of such wound 
                or injury and ending on April 30, 2006, including basic 
                pay, hazardous duty pay, imminent danger pay, basic 
                allowance for housing, 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.
                    (C) For each member so listed, a statement of any 
                disbursements made to correct underpayments made to 
                such member as identified under subparagraph (B).
                    (D) For each member so listed, a statement of any 
                debts to the United States collected or pending 
                collection from such member.
                    (E) For each member so listed, a statement of any 
                reimbursements or debt relief granted to such member 
                for a debt identified under subparagraph (D).
                    (F) For each member so listed who 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, if granted, the 
                        date of disbursement for relief granted, and, 
                        if denied, the reasons for the denial.
                    (G) For each member so listed, a report of any 
                referral of such member to a collection or credit 
                agency.
            (4) Form.--The report under paragraph (2) shall be in 
        unclassified form, but may include a classified annex.
    (b) Assistance With Pay or Account Difficulties.--
            (1) Call assistance center.--Not later than 60 days after 
        the date of the enactment of this Act, the Secretary of Defense 
        shall establish within the Department of Defense an assistance 
        center, accessible by toll-free telephone call, through which a 
        covered member of the Armed Forces, or the primary next of kin 
        of such a member in the case of such a member who dies, may 
        secure assistance in resolving difficulties relating to the 
        military pay or accounts of such member.
            (2) Requests for assistance.--A request for assistance 
        under paragraph (1) may be made--
                    (A) by a covered member of the Armed Forces; or
                    (B) by the primary next of kin on behalf of, or 
                with respect to, a covered member of the Armed Forces.
            (3) Response to requests for assistance.--The Secretary 
        shall ensure that, in providing assistance under paragraph (1) 
        to a covered member of the Armed Forces or next of kin of such 
        a member, personnel of the assistance center established under 
        that paragraph--
                    (A) provide an initial response to the request for 
                assistance under paragraph (2) not later than 10 days 
                after receipt of such request; and
                    (B) provide a final response to the request for 
                assistance under that paragraph not later than 30 days 
                after receipt of such request.
            (4) Covered member of the armed forces defined.--In this 
        subsection, the term ``covered member of the Armed Forces'' 
        means a member of the Armed Forces wounded or injured in a 
        combat zone who is evacuated from a theater of operations for 
        inpatient care.

SEC. 662. PILOT PROGRAM ON TROOPS TO NURSE TEACHERS.

    (a) Pilot Program Required.--
            (1) In general.--The Secretary of Defense shall, in 
        coordination with the Secretary of Health and Human Services 
        and the Secretary of Education, conduct a pilot program to 
        assess the feasibility and potential benefits of a program to--
                    (A) assist nurse corps officers described in 
                subsection (c) in achieving necessary qualifications to 
                become nurse educators and in securing employment as 
                nurse educators at accredited schools of nursing;
                    (B) provide scholarships to nurse corps officers 
                described in subsection (c) in return for continuing 
                service in the Selected Reserve or other forms of 
                public service; and
                    (C) help alleviate the national shortage of nurse 
                educators and registered nurses.
            (2) Duration.--Except as provided in subsection (h), the 
        pilot program shall be conducted during the period beginning on 
        January 1, 2007, and ending on December 31, 2012. A nurse corps 
        officer may not enter into an agreement to participate in the 
        pilot program after December 31, 2012.
            (3) Regulations.--The pilot program shall be conducted 
        under regulations prescribed by the Secretary of Defense in 
        consultation with the Secretary of Health and Human Services 
        and the Secretary of Education.
    (b) Designation.--The pilot program required by subsection (a) 
shall be known as the ``Troops to Nurse Teachers Pilot Program'' (in 
this section referred to as the ``Program'').
    (c) Nurse Corps Officers.--A nurse corps officer described in this 
subsection is any commissioned officer of the Armed Forces qualified 
and designated as an officer in a Nurse Corps of the Armed Forces who 
is--
            (1) serving in a reserve component of the Armed Forces;
            (2) honorably discharged from the Armed Forces; or
            (3) a retired member of the Armed Forces.
    (d) Selection of Participants in Program.--
            (1) Application.--An eligible nurse corps officer seeking 
        to participate in the Program shall submit to the Secretary of 
        Defense an application therefor. The application shall be in 
        such form, and contain such information, as the Secretary may 
        require.
            (2) Selection.--The Secretary shall select participants in 
        the Program from among qualified nurse corps officers 
        submitting applications therefor under paragraph (1).
    (e) Participant Agreement.--
            (1) In general.--A nurse corps officer selected under 
        subsection (d) to participate in the Program shall enter into 
        an agreement with the Secretary of Defense relating to 
        participation in the Program.
            (2) Elements.--The agreement of a nurse corps officer under 
        the program shall, at the election of the Secretary for 
        purposes of the Program and as appropriate with respect to that 
        status of such nurse corps officer--
                    (A) require such nurse corps officer, within such 
                time as the Secretary may require, to accept an offer 
                of full-time employment as a nurse educator from an 
                accredited school of nursing for a period of not less 
                than one year; or
                    (B) require such nurse corps officer--
                            (i) within such time as the Secretary may 
                        require, to successfully complete a program 
                        leading to a master's degree or doctoral degree 
                        in a nursing field from an accredited school of 
                        nursing or to a doctoral degree in a related 
                        field from an accredited institution of higher 
                        education;
                            (ii) to serve in the Selected Reserve or 
                        some other form of public service under terms 
                        and conditions established by the Secretary; 
                        and
                            (iii) upon completion of such program and 
                        service, to accept an offer of full-time 
                        employment as a nurse educator from an 
                        accredited school of nursing for a period of 
                        not less than 3 years.
    (f) Assistance.--
            (1) Transition assistance.--The Secretary of Defense may 
        provide a participant in the Program who enters into an 
        agreement described in subsection (e)(2)(A) assistance as 
        follows:
                    (A) Career placement assistance in securing full-
                time employment as a nurse educator at an accredited 
                school of nursing.
                    (B) A stipend in an amount not to exceed $5,000 for 
                transition to employment referred to in paragraph (1), 
                and for educational training for such employment, for a 
                period not to exceed two years after entry by such 
                participant into an agreement under subsection (e).
            (2) Scholarship assistance.--The Secretary of Defense may 
        provide a participant in the Program who enters into an 
        agreement described in subsection (e)(2)(B) scholarship 
        assistance to pursue a degree described in subsection 
        (e)(2)(B)(i) in an amount not to exceed $30,000 annually for a 
        period of not more than four years.
    (g) Treatment of Assistance.--A stipend or scholarship provided 
under subsection (f) shall not be taken into account in determining the 
eligibility of a participant in the Program for Federal student 
financial assistance provided under title IV of the Higher Education 
Act of 1965 (20 U.S.C. 1070 et seq.).
    (h) Administration After Initial Period.--
            (1) In general.--The termination of the Program on December 
        31, 2012, under subsection (a)(2) shall not terminate the 
        entitlement to assistance under the Program of any nurse corps 
        officer entering into an agreement to participate in the 
        Program under subsection (e) that continues in force after that 
        date.
            (2) Administration.--The Secretary of Education shall 
        undertake any administration of the Program that is required 
        after December 31, 2012, including responsibility for any 
        funding necessary to provide assistance under the Program after 
        that date.
    (i) Report.--
            (1) In general.--Not later than three years after the 
        commencement of the Program, the Secretary of Defense shall, in 
        consultation with the Secretary of Health and Human Services 
        and the Secretary of Education, submit to Congress a report on 
        the Program.
            (2) Elements.--The report shall--
                    (A) describe the activities undertaken under the 
                Program; and
                    (B) include an assessment of the effectiveness of 
                the Program in--
                            (i) facilitating the development of nurse 
                        educators;
                            (ii) encouraging service in the Selected 
                        Reserve and other forms of public service; and
                            (iii) helping alleviate the national 
                        shortage of nurse educators and registered 
                        nurses.
    (j) Definitions.--In this section:
            (1) Nurse educator.--The term ``nurse educator'' means a 
        registered nurse who--
                    (A) is a member of the nursing faculty at an 
                accredited school of nursing;
                    (B) holds a graduate degree in nursing from an 
                accredited school of nursing or a doctoral degree in a 
                related field from an accredited institution of higher 
                education;
                    (C) holds a valid, unrestricted license to practice 
                nursing from a State; and
                    (D) has successfully completed additional course 
                work in education and demonstrates competency in an 
                advanced practice area of nursing.
            (2) School of nursing.--The term ``school of nursing'' 
        means a school of nursing (as that term is defined in section 
        801 of the Public Health Service Act (42 U.S.C. 296)) that is 
        accredited (as that term is defined in section 801(6) of the 
        Public Health Service Act).
    (k) Funding.--From amounts authorized to be appropriated for the 
Department of Defense, $5,000,000 may be available for the Program.

SEC. 663. EXPANSION AND ENHANCEMENT OF AUTHORITY TO REMIT OR CANCEL 
              INDEBTEDNESS OF MEMBERS OF THE ARMED FORCES.

    (a) Members 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 ``a member of the Army'' and all that follows 
        through ``in an active status'' and inserting ``a member of the 
        Army (including a member on active duty or a member of a 
        reserve component in an active status), a retired member of the 
        Army, or a former member of the Army''.
            (2) Time for exercise of authority.--Subsection (b) of such 
        section is amended--
                    (A) in paragraph (1), by adding ``or'' at the end; 
                and
                    (B) by striking paragraphs (2) and (3) and 
                inserting the following new paragraph (2):
            ``(2) in the case of any other member of the Army covered 
        by subsection (a), during such period or periods as the 
        Secretary of Defense may provide in regulations prescribed by 
        the Secretary of Defense.''.
            (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) Members of the Navy.--
            (1) Coverage of all members and former members.--Section 
        6161 of title 10, United States Code, is amended by striking 
        ``a member of the Navy'' and all that follows through ``in an 
        active status'' and inserting ``a member of the Navy (including 
        a member on active duty or a member of a reserve component in 
        an active status), a retired member of the Navy , or a former 
        member of the Navy''.
            (2) Time for exercise of authority.--Subsection (b) of such 
        section is amended--
                    (A) in paragraph (1), by adding ``or'' at the end; 
                and
                    (B) by striking paragraphs (2) and (3) and 
                inserting the following new paragraph (2):
            ``(2) in the case of any other member of the Navy covered 
        by subsection (a), during such period or periods as the 
        Secretary of Defense may provide in regulations prescribed by 
        the Secretary of Defense.''.
            (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) Members of the Air Force.--
            (1) Coverage of all members and former members.--Subsection 
        (a) of section 4837 of title 10, United States Code, is amended 
        by striking ``a member of the Air Force'' and all that follows 
        through ``in an active status'' and inserting ``a member of the 
        Air Force (including a member on active duty or a member of a 
        reserve component in an active status), a retired member of the 
        Air Force, or a former member of the Air Force''.
            (2) Time for exercise of authority.--Subsection (b) of such 
        section is amended--
                    (A) in paragraph (1), by adding ``or'' at the end; 
                and
                    (B) by striking paragraphs (2) and (3) and 
                inserting the following new paragraph (2):
            ``(2) in the case of any other member of the Air Force 
        covered by subsection (a), during such period or periods as the 
        Secretary of Defense may provide in regulations prescribed by 
        the Secretary of Defense.''.
            (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) 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.

SEC. 664. 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''; 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 is 
pending under section 2774 of this title, or a decision regarding 
remission or cancellation is pending under section 4837, 6161, or 9837 
of this title, unless the Secretary concerned (as defined in section 
101(5) of title 37), or the designee of such Secretary, determines that 
disclosure under that paragraph pending such decision is in the best 
interests of the United States.''.
    (b) 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 
exercise of the authority in section 2780(b) of title 10, United States 
Code, including--
            (1) the total number of members of the Armed Forces who 
        have been reported to consumer reporting agencies under such 
        section;
            (2) the circumstances under which such authority has been 
        exercised, or waived (as provided in paragraph (2) of such 
        section (as amended by subsection (a))), and by whom;
            (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 reporting military debtors to collection agencies, 
        has been effective in reducing indebtedness to the United 
        States; and
            (5) such recommendations as the Secretary considers 
        appropriate regarding the continuing use of such authority with 
        respect to members of the Armed Forces.

SEC. 665. ENHANCEMENT OF AUTHORITY TO WAIVE CLAIMS FOR OVERPAYMENT OF 
              PAY AND ALLOWANCES.

    (a) Clarification of Pay and Allowances.--Subsection (a) of section 
2774 of title 10, United States Code, is amended in the matter 
preceding paragraph (1) by inserting ``(including any bonus or special 
or incentive pay)'' after ``pay or allowances''.
    (b) Waiver by Secretaries Concerned.--Paragraph (2) of such 
subsection is amended--
            (1) in the matter preceding subparagraph (A), by inserting 
        ``or the designee of such Secretary'' after ``title 37,''; and
            (2) in subparagraph (A), by striking ``$1,500'' and 
        inserting ``$10,000''.
    (c) Time for Waiver.--Subsection (b)(2) of such section is amended 
by striking ``three years'' and inserting ``five years''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on March 1, 2007.
    (e) Deadline for Revised Standards.--The Director of the Office of 
Management and Budget and the Secretary of Defense shall prescribe any 
modifications to the standards under section 2774 of title 10, United 
States Code, that are required or authorized by reason of the 
amendments made by this section not later than March 1, 2007.

SEC. 666. TERMS OF CONSUMER CREDIT EXTENDED TO SERVICEMEMBER OR 
              SERVICEMEMBER'S DEPENDENT.

    (a) Terms of Consumer Credit.--Title II of the Servicemembers Civil 
Relief Act (50 U.S.C. App. 521 et seq.) is amended by adding at the end 
the following new section:

``SEC. 208. TERMS OF CONSUMER CREDIT.

    ``(a) Interest.--A creditor who extends consumer credit to a 
servicemember or a servicemember's dependent shall not require the 
servicemember or the servicemember's 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) shall not impose an annual percentage rate greater than 36 percent 
with respect to the consumer credit extended to a servicemember or a 
servicemember's dependent.
    ``(c) Mandatory Loan Disclosures.--
            ``(1) Information required.--With respect to any extension 
        of consumer credit to a servicemember or a servicemember's 
        dependent, a creditor shall provide to the servicemember or the 
        servicemember's dependent the following information in writing, 
        at or before the issuance of the credit:
                    ``(A) A statement of the annual percentage rate 
                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 servicemember or the servicemember's 
                dependent, as applicable.
            ``(2) 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) Limitation.--A creditor described in subsection (a) shall not 
automatically renew, repay, refinance, or consolidate with the proceeds 
of other credit extended by the same creditor any consumer credit 
extended to a servicemember or a servicemember's dependent without--
            ``(1) executing new loan documentation signed by the 
        servicemember or the servicemember's dependent, as applicable; 
        and
            ``(2) providing the loan disclosures described in 
        subsection (c) to the servicemember or the servicemember's 
        dependent.
    ``(e) Preemption.--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 laws, rules, or 
regulations are inconsistent with this section, except that this 
section shall not preempt any such law, rule, or regulation that 
provides additional protection to a servicemember or a servicemember's 
dependent.
    ``(f) Penalties.--
            ``(1) Misdemeanor.--Any creditor who knowingly violates 
        this section shall be fined as provided in title 18, United 
        States Code, 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.
    ``(g) Definition.--For purposes of this section, the term 
`interest' includes service charges, renewal charges, fees, or any 
other charges (except bona fide insurance) with respect to the 
extension of consumer credit.''.
    (b) Clerical Amendment.--The table of contents of the 
Servicemembers Civil Relief Act (50 U.S.C. App. 501) is amended by 
inserting after the item relating to section 207 the following new 
item:

``Sec. 208. Terms of consumer credit''.

SEC. 667. 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 
assistance to families of members of the Armed Forces.
    (b) Locations.--
            (1) In general.--The Secretary shall carry out the program 
        for at least six regions of the country through sites 
        established by the Secretary for purposes of the program in 
        such regions.
            (2) Location of certain sites.--At least three of the sites 
        established under paragraph (1) shall be located in an area 
        that it geographically isolated from military installations.
    (c) Functions.--The Secretary shall provide assistance to families 
of the members of the Armed Forces under the program by providing at 
each site established for purposes of the program under subsection (b) 
the following:
            (1) Financial, material, and other assistance to families 
        of members of the Armed Forces.
            (2) Mobile support services to families of members of the 
        Armed Forces.
            (3) Sponsorship of volunteers and family support 
        professionals for the delivery of support services to families 
        of members of the Armed Forces.
            (4) Coordination of family assistance programs and 
        activities provided by Military OneSource, Military Family Life 
        Consultants, counselors, the Department of Defense, other 
        departments and agencies of the Federal Government, 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).
    (d) Resources.--
            (1) In general.--The Secretary shall provide personnel and 
        other resources necessary for the implementation and operation 
        of the program at each site established under subsection (b).
            (2) Acceptance of certain services.--In providing resources 
        under paragraph (1), the Secretary may accept and utilize the 
        services of non-Federal Government volunteers and non-profit 
        entities.
    (e) Procedures.--The Secretary shall establish procedures for the 
operation of each site established under subsection (b) and for the 
provision of assistance to families of members of the Armed Forces at 
such site.
    (f) Implementation Plan.--
            (1) Plan required.--Not later than 30 days after the first 
        obligation of amounts for the program, the Secretary 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 
                and establish sites for the program under subsection 
                (b).
                    (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 on family 
                assistance program and activities between and among the 
                Department of Defense, other departments and agencies 
                of the Federal Government, State and local agencies, 
                and non-profit entities.
    (g) Report.--
            (1) In general.--Not later than 270 days after the first 
        obligation of amounts for the program, the Secretary 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 each 
                site established for purposes of the program, the 
                procedures established under subsection (d) for 
                operations at each such site, and the assistance 
                provided through each such site 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) Assistance to Non-Profit Entities Providing Assistance to 
Military Families.--The Secretary may provide financial, material, and 
other assistance to non-profit entities in order to facilitate the 
provision by such entities of assistance to geographically isolated 
families of members of the Armed Forces.
    (i) Sunset.--The program required by this section, and the 
authority to provide assistance under subsection (h), shall cease upon 
the date that is three years after the first obligation of amounts for 
the program.
    (j) Funding.--Of the amount authorized to be appropriated by 
section 301(5) for operation and maintenance for Defense-wide 
activities, $5,000,000 may be available for the program required by 
this section and the provision of assistance under subsection (h).

SEC. 668. IMPROVEMENT OF MANAGEMENT OF ARMED FORCES RETIREMENT HOME.

    (a) Redesignation of Chief Operating Officer as Chief Executive 
Officer.--
            (1) In general.--Section 1515 of the Armed Forces 
        Retirement Home Act of 1991 (24 U.S.C. 415) is amended--
                    (A) by striking ``Chief Operating Officer'' each 
                place it appears and inserting ``Chief Executive 
                Officer''; and
                    (B) in subsection (e)(1), by striking ``Chief 
                Operating Officer's'' and inserting ``Chief Executive 
                Officer's''.
            (2) Conforming amendments.--Such Act is further amended by 
        striking ``Chief Operating Officer'' each place it appears in a 
        provision as follows and inserting ``Chief Executive Officer'':
                    (A) Section 1511 (24 U.S.C. 411).
                    (B) Section 1512 (24 U.S.C. 412).
                    (C) Section 1513(a) (24 U.S.C. 413(a)).
                    (D) Section 1514(c)(1) (24 U.S.C. 414(c)(1)).
                    (E) Section 1516(b) (24 U.S.C. 416(b)).
                    (F) Section 1517 (24 U.S.C. 417).
                    (G) Section 1518(c) (24 U.S.C. 418(c)).
                    (H) Section 1519(c) (24 U.S.C. 419(c)).
                    (I) Section 1521(a) (24 U.S.C. 421(a)).
                    (J) Section 1522 (24 U.S.C. 422).
                    (K) Section 1523(b) (24 U.S.C. 423(b)).
                    (L) Section 1531 (24 U.S.C. 431).
            (3) Clerical amendments.--(A) The heading of section 1515 
        of such Act is amended to read as follows:

``SEC. 1515. CHIEF EXECUTIVE OFFICER.''.

            (B) The table of contents for such Act is amended by 
        striking the item relating to section 1515 and inserting the 
        following new item:

        ``Sec. 1515. Chief Executive Officer.''.
            (4) References.--Any reference in any law, regulation, 
        document, record, or other paper of the United States to the 
        Chief Operating Officer of the Armed Forces Retirement Home 
        shall be considered to be a reference to the Chief Executive 
        Officer of the Armed Forces Retirement Home.
    (b) Director and Deputy Director of Facilities.--
            (1) Military director.--Subsection (b)(1) of section 1517 
        of such Act (24 U.S.C. 417) is amended by striking ``a civilian 
        with experience as a continuing care retirement community 
        professional or''.
            (2) Civilian deputy director.--Subsection (d)(1)(A) of such 
        section is amended by striking ``or a member'' and all that 
        follows and inserting ``; and''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on the date of the enactment of this Act, and 
        shall apply with respect to any vacancy that occur in the 
        position of Director or Deputy Director of a facility of the 
        Armed Forces Retirement Home that occurs on or after that date.
    (c) Clarification of Membership on Local Board of Trustees.--
Section 1516(c)(1)(H) of such Act (24 U.S.C. 416(c)(1)(K)) is amended 
by inserting before the period at the end the following: ``, who shall 
be a member of the Armed Forces serving on active duty in the grade of 
brigadier general, or in the case of the Navy, rear admiral (lower 
half)''.

Subtitle F--Transition Assistance for Members of the National Guard and 
    Reserve Returning From Deployment in Operation Iraqi Freedom or 
                       Operation Enduring Freedom

SEC. 681. SHORT TITLE.

    This subtitle may be cited as the ``Heroes at Home Act of 2006''.

SEC. 682. SPECIAL WORKING GROUP ON TRANSITION TO CIVILIAN EMPLOYMENT OF 
              MEMBERS OF THE NATIONAL GUARD AND RESERVE RETURNING FROM 
              DEPLOYMENT IN OPERATION IRAQI FREEDOM AND 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 transitioning to civilian employment on their 
return from such deployment.
    (b) Members.--The working group established under subsection (a) 
shall include a balance of individuals appointed by the Secretary of 
Defense from among the following:
            (1) Personnel of the Department of Defense.
            (2) With the concurrence of the Secretary of Veterans 
        Affairs, personnel of the Department of Veterans Affairs.
            (3) With the concurrence of the Secretary of Labor, 
        personnel of the Department of Labor.
    (c) Responsibilities.--The working group established under 
subsection (a) shall--
            (1) identify and assess the needs of members of the 
        National Guard and Reserve described in subsection (a) in 
        transitioning to civilian employment on their return from 
        deployment as described in that subsection, 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; and
            (2) develop recommendations on means of improving 
        assistance to members of the National Guard and Reserve 
        described in subsection (a) in meeting the needs identified in 
        paragraph (1) on their return from deployment as described in 
        subsection (a).
    (d) Consultation.--In carrying out its responsibilities under 
subsection (c), the working group established under subsection (a) 
shall consult with the following:
            (1) Appropriate personnel of the Small Business 
        Administration.
            (2) Representatives of employers who employ members of the 
        National Guard and Reserve described in subsection (a) on their 
        return to civilian employment as described in that subsection.
            (3) Representatives of employee assistance organizations.
            (4) Representatives of associations of employers.
            (5) Representatives of organizations that assist wounded or 
        injured members of the National Guard and Reserves in finding 
        or sustaining employment.
            (6) 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 required by paragraph (1) shall 
        include the following:
                    (A) The results of the identification and 
                assessment required under subsection (c)(1).
                    (B) The recommendations developed under subsection 
                (c)(2), including recommendations on the following:
                            (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 described in 
                        subsection (a) upon their return from 
                        deployment as described in that subsection.
                            (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 pubic 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 Secretary shall take 
        appropriate actions to make the report under paragraph (1) 
        available to the public, including through the Internet website 
        of the Department of Defense.
    (f) Termination.--
            (1) In general.--The working group established under 
        subsection (a) shall terminate on the date that is two years 
        after the date of the enactment of this Act.
            (2) Interim duties.--During the period beginning on the 
        date of the submittal of the report required by subsection (e) 
        and the termination of the working group under paragraph (1), 
        the working group shall serve as an advisory board to the 
        Office for Employers and Employment Assistance Organizations 
        under section 683.
    (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. 683. OFFICE FOR EMPLOYERS AND EMPLOYMENT ASSISTANCE ORGANIZATIONS.

    (a) Designation of Office.--
            (1) In general.--The Secretary of Defense shall designate 
        an office within the Department of Defense to assist employers, 
        employment assistance organizations, and associations of 
        employers in facilitating the successful transition to civilian 
        employment of members of the National Guard and Reserve 
        returning from deployment in Operation Iraqi Freedom or 
        Operation Enduring Freedom.
            (2) Name.--The office designated under this subsection 
        shall be known as the ``Office for Employers and Employment 
        Assistance Organizations'' (in this section referred to as the 
        ``Office'').
            (3) Head.--The Secretary shall designate an individual to 
        act as the head of the Office.
            (4) Integration.--In designating the Office, the Secretary 
        shall ensure close communication between the Office and the 
        military departments, including the commands of the reserve 
        components of the Armed Forces.
    (b) Functions.--The Office shall have the following functions:
            (1) To provide education and technical assistance to 
        employers, employment assistance organizations, and 
        associations of employers to assist them in facilitating the 
        successful transition to civilian employment of members of the 
        National Guard and Reserve described in subsection (a) on their 
        return from deployment as described in that subsection.
            (2) To provide education and technical assistance to 
        employers, employment assistance organizations, and 
        associations of employers to assist them in facilitating the 
        successful adjustment of family members of the National Guard 
        and Reserve to the deployment and return from deployment of 
        members of the National Guard and Reserve as described in that 
        subsection.
    (c) Resources To Be Provided.--
            (1) In general.--In carrying out the functions specified in 
        subsection (b), the Office shall provide employers, employment 
        assistance organizations, and associations of employers 
        resources, services, and assistance that include the following:
                    (A) Guidelines on best practices and effective 
                strategies.
                    (B) Education on the physical and mental health 
                conditions that can and may be experienced by members 
                of the National Guard and Reserve described in 
                subsection (a) on their return from deployment as 
                described in that subsection in transitioning to 
                civilian employment, including Post Traumatic Stress 
                Disorder (PTSD) and traumatic brain injury (TBI), 
                including education on--
                            (i) the detection of warning signs of such 
                        conditions;
                            (ii) the medical, mental health, and 
                        employment services available to such members, 
                        including materials on services offered by the 
                        Department of Defense, the Department of 
                        Veterans Affairs (including through the vet 
                        center program under section 1712A of title 38, 
                        United States Code), the Department of Labor, 
                        military support programs, and community mental 
                        health clinics; and
                            (iii) the mechanisms for referring such 
                        members for services described in clause (ii) 
                        and for other medical and mental health 
                        screening and care when appropriate.
                    (C) Education on the range and types of potential 
                physical and mental health effects of deployment and 
                post-deployment adjustment on family members of members 
                of the National Guard and Reserve described in 
                subsection (a), including education on--
                            (i) the detection of warning signs of such 
                        effects on family members of members of the 
                        National Guard and Reserves;
                            (ii) the medical, mental health, and 
                        employment services available to such family 
                        members, including materials on such services 
                        as described in subparagraph (B)(ii); and
                            (iii) mechanisms for referring such family 
                        members for services described in clause (ii) 
                        and for medical and mental health screening and 
                        care when appropriate.
                    (D) Education on mechanisms, strategies, and 
                resources for accommodating and employing wounded or 
                injured members of the National Guard and Reserves in 
                work settings.
            (2) Provision of resources.--The Office shall make 
        resources, services, and assistance available under this 
        subsection through such mechanisms as the head of the Office 
        considers appropriate, including the Internet, video 
        conferencing, telephone services, workshops, trainings, 
        presentations, group forums, and other mechanisms.
    (d) Personnel and Other Resources.--The Secretary of Defense shall 
assign to the Office such personnel, funding, and other resources as 
are required to ensure the effective discharge by the Office of the 
functions under subsection (b).
    (e) Reports on Activities.--
            (1) Annual report by office.--Not later than one year after 
        the designation of the Office, and annually thereafter, the 
        head of the Office, in consultation with the working group 
        established pursuant to section 682 (while in effect), shall 
        submit to the Secretary of Defense a written report on the 
        progress and outcomes of the Office during the one-year period 
        ending on the date of such report.
            (2) Transmittal to congress.--Not later than 60 days after 
        receipt of a report under paragraph (1), the Secretary shall 
        transmit such report to the Committees on Armed Services of the 
        Senate and the House of Representatives, together with--
                    (A) such comments on such report, and such 
                assessment of the effectiveness of the Office, as the 
                Secretary considers appropriate; and
                    (B) such recommendations on means of improving the 
                effectiveness of the Office as the Secretary considers 
                appropriate.
            (3) Availability to public.--The Secretary shall take 
        appropriate actions to make each report under paragraph (2) 
        available to the public, including through the Internet website 
        of the Office.
    (f) 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. 684. ADDITIONAL RESPONSIBILITIES OF DEPARTMENT OF DEFENSE TASK 
              FORCE ON MENTAL HEALTH RELATING TO MENTAL HEALTH OF 
              MEMBERS OF THE NATIONAL GUARD AND RESERVE DEPLOYED IN 
              OPERATION IRAQI FREEDOM AND OPERATION ENDURING FREEDOM.

    (a) Additional Responsibilities.--Section 723 of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 
Stat. 3348) is amended--
            (1) by redesignating subsections (d), (e), (f), and (g) as 
        subsections (e), (f), (g), and (h), respectively; and
            (2) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Assessment of Mental Health Needs of Members of National 
Guard and Reserve Deployed in OIF or OEF.--
            ``(1) In general.--In addition to the activities required 
        under subsection (c), the task force shall, not later than 12 
        months after the date of the enactment of the Heroes at Home 
        Act of 2006, submit to the Secretary a report containing an 
        assessment and recommendations on the needs with respect to 
        mental health of members of the National Guard and Reserve who 
        are deployed in Operation Iraqi Freedom or Operation Enduring 
        Freedom upon their return from such deployment.
            ``(2) Elements.--The assessment and recommendations 
        required by paragraph (1) shall include the following:
                    ``(A) An assessment of the specific needs with 
                respect to mental health of members of the National 
                Guard and Reserve who are deployed in Operation Iraqi 
                Freedom or Operation Enduring Freedom upon their return 
                from such deployment.
                    ``(B) An identification of mental health conditions 
                and disorders (including Post Traumatic Stress Disorder 
                (PTSD), suicide attempts, and suicide) occurring among 
                members of the National Guard and Reserve who undergo 
                multiple deployments in Operation Iraqi Freedom or 
                Operation Enduring Freedom upon their return from such 
                deployment.
                    ``(C) Recommendations on mechanisms for improving 
                the mental health services available to members of the 
                National Guard and Reserve who are deployed in 
                Operation Iraqi Freedom or Operation Enduring Freedom, 
                including such members who undergo multiple deployments 
                in such operations, upon their return from such 
                deployment.''.
    (b) Report.--Subsection (f) of such section, as redesignated by 
subsection (a)(1) of this section, is further amended--
            (1) in the subsection heading, by striking ``Report'' and 
        inserting ``Reports'';
            (2) by striking paragraph (1) and inserting the following 
        new paragraph (1):
            ``(1) In general.--The report submitted to the Secretary 
        under each of subsections (c) and (d) shall include--
                    ``(A) a description of the activities of the task 
                force under such subsection;
                    ``(B) the assessment and recommendations required 
                by such subsection; and
                    ``(C) such other matters relating to the activities 
                of the task force under such subsection as the task 
                force considers appropriate.''; and
            (3) in paragraph (2)--
                    (A) by striking ``the report under paragraph (1)'' 
                and inserting ``a report under paragraph (1)''; and
                    (B) by striking ``the report as'' and inserting 
                ``such report as''.
    (c) Plan Matters.--Subsection (g) of such section, as redesignated 
by subsection (a)(1) of this section, is further amended--
            (1) by striking ``the report from the task force under 
        subsection (e)(1)'' and inserting ``a report from the task 
        force under subsection (f)(1)''; and
            (2) by inserting ``contained in such report'' after ``the 
        task force'' the second place it appears.
    (d) Termination.--Subsection (h) of such section, as redesignated 
by subsection (a)(1) of this section, is further amended--
            (1) by inserting ``with respect to the assessment and 
        recommendations required by subsection (d)'' after ``the task 
        force''; and
            (2) by striking ``subsection (e)(2)'' and inserting 
        ``subsection (f)(2)''.

SEC. 685. GRANTS ON ASSISTANCE IN COMMUNITY-BASED SETTINGS FOR MEMBERS 
              OF THE NATIONAL GUARD AND RESERVE AND THEIR FAMILIES 
              AFTER DEPLOYMENT IN OPERATION IRAQI FREEDOM AND OPERATION 
              ENDURING FREEDOM.

    (a) In General.--The Secretary of Defense may award grants to 
eligible entities to carry out demonstration projects to assess the 
feasibility and advisability of utilizing community-based settings for 
the provision of assistance to members of the National Guard and 
Reserve who serve in Operation Iraqi Freedom or Operation Enduring 
Freedom, and their families, after the return of such members from 
deployment in Operation Iraqi Freedom or Operation Enduring Freedom, as 
the case may be, including--
            (1) services to improve the reuniting of such members of 
        the National Guard and Reserve and their families;
            (2) education to increase awareness of the physical and 
        mental health conditions that members of the National Guard and 
        Reserve can and may experience on their return from such 
        deployment, including education on--
                    (A) Post Traumatic Stress Disorder (PTSD) and 
                traumatic brain injury (TBI); and
                    (B) mechanisms for the referral of such members of 
                the National Guard and Reserve for medical and mental 
                health screening and care when necessary; and
            (3) education to increase awareness of the physical and 
        mental health conditions that family members of such members of 
        the National Guard and Reserve can and may experience on the 
        return of such members from such deployment, including 
        education on--
                    (A) depression, anxiety, and relationship problems; 
                and
                    (B) mechanisms for medical and mental health 
                screening and care when appropriate.
    (b) Eligible Entities.--An entity eligible for the award of a grant 
under this section is any public or private non-profit organization, 
such as a community mental health clinic, family support organization, 
military support organization, law enforcement agency, community 
college, or public school.
    (c) Application.--An eligible entity seeking a grant under this 
section shall submit to the Secretary of Defense an application 
therefor in such manner, and containing such information, as the 
Secretary may require for purposes of this section, including a 
description of how such entity will work with the Department of 
Defense, the Department of Veterans Affairs, State health agencies, 
other appropriate Federal, State, and local agencies, family support 
organizations, and other community organization in undertaking 
activities described in subsection (a).
    (d) Annual Reports by Grant Recipients.--An entity awarded a grant 
under this section shall submit to the Secretary of Defense on an 
annual basis a report on the activities undertaken by such entity 
during the preceding year utilizing amounts under the grant. Each 
report shall include such information as the Secretary shall specify 
for purposes of this subsection.
    (e) Annual Reports to Congress.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, and annually thereafter, the 
        Secretary of Defense shall submit to Congress a report on 
        activities undertaken under the grants awarded under this 
        section. The report shall include recommendations for 
        legislative, programmatic, or administrative action to improve 
        or enhance activities under the grants awarded under this 
        section.
            (2) Availability to public.--The Secretary shall take 
        appropriate actions to make each report under this subsection 
        available to the public.

SEC. 686. 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, in 
consultation with the Secretary of Veterans Affairs, conduct a 
longitudinal study on the effects of traumatic brain injury incurred by 
members of the Armed Forces in Operation Iraqi Freedom or Operation 
Enduring Freedom. The duration of the longitudinal study shall be 15 
years.
    (b) Elements.--The study required by subsection (a) shall 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.
    (c) Reports.--
            (1) Periodic and final reports.--After the third, seventh, 
        eleventh, and fifteenth years of the study required by 
        subsection (a), the Secretary of Defense shall, in consultation 
        with the Secretary of Veterans Affairs, submit to Congress a 
        comprehensive report on the results of the study during the 
        preceding years. Each report shall include the following:
                    (A) Current information on the cumulative outcomes 
                of the study.
                    (B) 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.
            (2) Availability to public.--The Secretary of Defense and 
        the Secretary of Veterans Affairs shall jointly take 
        appropriate actions to make each report under this subsection 
        available to the public.
    (d) Funding.--
            (1) Authorization of appropriations.--There is authorized 
        to be appropriated to the Department of Defense to carry out 
        this section amounts as follows:
                    (A) For fiscal year 2007, $5,000,000.
                    (B) For each of fiscal years 2008 through 2021, 
                such sums as may be necessary.
            (2) Offset.--The amount authorized to be appropriated by 
        section 102(a)(2) for weapons procurement for the Navy is 
        hereby reduced by $5,000,000, with the amount of the reduction 
        to be allocated to amounts for the Trident II conventional 
        modification program.

SEC. 687. TRAINING CURRICULA FOR FAMILY CAREGIVERS ON CARE AND 
              ASSISTANCE FOR MEMBERS AND FORMER MEMBERS OF THE ARMED 
              FORCES WITH TRAUMATIC BRAIN INJURY INCURRED IN OPERATION 
              IRAQI FREEDOM AND OPERATION ENDURING FREEDOM.

    (a) Traumatic Brain Injury Family Caregiver Panel.--
            (1) Establishment.--The Secretary of Defense shall, in 
        consultation with the Secretary of Veterans Affairs, establish 
        within the Department of Defense a 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 
        for traumatic brain injuries incurred during service in the 
        Armed Forces in Operation Iraqi Freedom or Operation Enduring 
        Freedom.
            (2) Designation of panel.--The panel established under 
        paragraph (1) shall be known as the ``Traumatic Brain Injury 
        Family Caregiver Panel''.
            (3) Members.--The Traumatic Brain Injury Family Caregiver 
        Panel established under paragraph (1) shall consist of 15 
        members appointed by the Secretary of Defense, in consultation 
        with the Secretary of Veterans Affairs, equally represented 
        from among--
                    (A) physicians, nurses, rehabilitation therapists, 
                and other individuals with an expertise in caring for 
                and assisting individuals with traumatic brain injury, 
                including those who specialize in caring for and 
                assisting individuals with traumatic brain injury 
                incurred in war;
                    (B) representatives of family caregivers or family 
                caregiver associations;
                    (C) Department of Defense and Department of 
                Veterans Affairs health and medical personnel with 
                expertise in traumatic brain injury, and Department of 
                Defense personnel and readiness representatives 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; and
                    (F) any other individuals the Secretary considers 
                appropriate.
    (b) Development of Curricula.--
            (1) In general.--The Traumatic Brain Injury Family 
        Caregiver Panel shall develop training curricula to be utilized 
        during the provision of training to family members of members 
        and former members of the Armed Forces described in subsection 
        (a) on techniques, strategies, and skills for care and 
        assistance for such members and former members with the 
        traumatic brain injuries described in that subsection.
            (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 utilize 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) In general.--The Secretary of Defense shall, in 
        consultation with the Traumatic Brain Injury Family Caregiver 
        Panel, develop mechanisms for the dissemination of the 
        curricula developed under subsection (b) to health care 
        professionals referred to in paragraph (2) who treat or 
        otherwise work with members and former members of the Armed 
        Forces with traumatic brain injury incurred in Operation Iraqi 
        Freedom or Operation Enduring Freedom. In developing such 
        mechanisms, the Secretary may utilize and enhance existing 
        mechanisms, including the Military Severely Injured Center.
            (2) Health care professionals.--The health care 
        professionals referred to in this paragraph are the following:
                    (A) Personnel at military medical treatment 
                facilities.
                    (B) Personnel at the polytrauma centers of the 
                Department of Veterans Affairs.
                    (C) Personnel and care managers at the Military 
                Severely Injured Center.
                    (D) Such other health care professionals of the 
                Department of Defense as the Secretary considers 
                appropriate.
                    (E) Such other health care professionals of the 
                Department of Veterans Affairs as the Secretary of 
                Defense, in consultation with the Secretary of Veterans 
                Affairs, considers appropriate.
            (3) Provision of training to family caregivers.--
                    (A) In general.--Health care professionals referred 
                to in paragraph (2) who are trained in the curricula 
                developed under subsection (b) shall provide training 
                to family members of members and former members of the 
                Armed Forces who incur traumatic brain injuries during 
                service in the Operation Iraqi Freedom or Operation 
                Enduring Freedom in the care and assistance to be 
                provided for such injuries.
                    (B) Timing of training.--Training under this 
                paragraph shall, to the extent practicable, be provided 
                to family members while the member or former member 
                concerned is undergoing treatment at a facility of the 
                Department of Defense or Department of Veterans 
                Affairs, as applicable, in order to ensure that such 
                family members receive practice on the provision of 
                such care and assistance under the guidance of 
                qualified health professionals.
                    (C) Particularized training.--Training provided 
                under this paragraph to family members of a particular 
                member or former member shall be tailored to the 
                particular care needs of such member or former member 
                and the particular caregiving needs of such family 
                members.
            (4) Quality assurance.--The Secretary shall develop 
        mechanisms to ensure quality in the provision of training under 
        this section to health care professionals referred to in 
        paragraph (2) and in the provision of such training under 
        paragraph (4) by such health care professionals.
            (5) Report.--Not later than one year after the development 
        of the curricula required by subsection (b), and annually 
        thereafter, the Traumatic Brain Injury Family Caregiver 
        Training Panel shall submit to the Secretary of Defense and the 
        Secretary of Veterans Affairs, and to Congress, a report on the 
        following:
                    (A) The actions undertaken under this subsection.
                    (B) The results of the tracking of outcomes based 
                on training developed and provided under this section.
                    (C) Recommendations for the improvement of training 
                developed and provided under this section.
    (d) Funding.--
            (1) Authorization of appropriations.--There is authorized 
        to be appropriated to the Department of Defense to carry out 
        this section amounts as follows:
                    (A) For fiscal year 2007, $1,000,000.
                    (B) For each of fiscal years 2008 through 2011, 
                such sums as may be necessary.
            (2) Offset.--The amount authorized to be appropriated by 
        section 102(a)(2) for weapons procurement for the Navy is 
        hereby reduced by $1,000,000, with the amount of the reduction 
        to be allocated to amounts for the Trident II conventional 
        modification program.

                         TITLE VII--HEALTH CARE

                      Subtitle A--Benefits Matters

SEC. 701. IMPROVED PROCEDURES FOR CANCER SCREENING FOR WOMEN.

    (a) Primary and Preventive Health Care Services Authority.--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), by striking paragraphs (1) and (2) 
        and inserting the following new paragraphs:
            ``(1) Cervical cancer screening.
            ``(2) Breast cancer screening.''.
    (b) TRICARE Program.--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''.

SEC. 702. NATIONAL MAIL-ORDER PHARMACY PROGRAM.

    (a) Availability of Refills of Maintenance-Type Medications Solely 
Through Program.--
            (1) In general.--Subsection (a)(2) of section 1074g of 
        title 10, United States Code, is amended--
                    (A) in subparagraph (E), by striking 
                ``Pharmaceutical agents'' and inserting ``Except as 
                provided in subparagraph (F), pharmaceutical agents''; 
                and
                    (B) by adding at the end the following new 
                subparagraph:
    ``(F)(i) Effective April 1, 2007, refills of maintenance 
medications shall, except as provided under clause (ii), be available 
to eligible covered beneficiaries solely through the national mail-
order pharmacy program referred to in subparagraph (E)(iii).
    ``(ii) Under such regulations as the Secretary may prescribe under 
this subparagraph, refills of a maintenance medication may be available 
to covered eligible beneficiaries through means other than the national 
mail-order pharmacy program if clinical requirements make it advisable 
that such medication be available to such beneficiaries through such 
other means.
    ``(iii) The Secretary shall specify the pharmaceutical agents 
constituting maintenance medications for purposes of this 
subparagraph.''.
            (2) Conforming amendment.--Subsection (f)(1) of such 
        section is amended by striking ``subsection (a)(2)(E)'' and 
        inserting ``subparagraphs (E) and (F) of subsection (a)(2)''.
    (b) Prohibition on Copayments for Certain Pharmaceuticals Available 
Through Program.--Subsection (a)(6) of such section is amended by 
adding at the end the following new subparagraph:
    ``(C) In establishing the cost-sharing requirements, the Secretary 
may not impose any copayment or cost-sharing requirement with respect 
to the following:
            ``(i) Refills of generic medications.
            ``(ii) Brand name medications determined by a physician to 
        be medically necessary.''.

SEC. 703. AVAILABILITY UNDER TRICARE OF ANESTHESIA FOR CHILDREN IN 
              CONNECTION WITH DENTAL PROCEDURES FOR WHICH DENTAL 
              ANESTHESIA IS INAPPROPRIATE.

    Section 1079(a)(1) of title 10, United States Code, is amended by 
inserting before the period at the end the following: ``, except that, 
pursuant to such regulations as the Secretary of Defense may prescribe, 
hospitalization and professional services may be provided in connection 
with the anesthesia of a child under the age of six years for a dental 
procedure which, as determined by a qualified dental specialist, is 
necessary''.

SEC. 704. TRICARE COVERAGE FOR FORENSIC EXAMINATIONS FOLLOWING SEXUAL 
              ASSAULTS AND 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. 705. PROHIBITION ON INCREASE IN FISCAL YEAR 2007 IN ENROLLMENT 
              FEES FOR COVERAGE UNDER TRICARE PRIME.

    (a) Prohibition.--Fees charged for enrollment in TRICARE Prime may 
not be increased during fiscal year 2007.
    (b) TRICARE Prime Defined.--In this section, the term ``TRICARE 
Prime'' means the managed care option of the TRICARE program.

SEC. 706. LIMITATION ON FISCAL YEAR 2007 INCREASE IN PREMIUMS FOR 
              COVERAGE UNDER TRICARE OF MEMBERS OF RESERVE COMPONENTS 
              WHO COMMIT TO CONTINUED SERVICE IN SELECTED RESERVE AFTER 
              RELEASE FROM ACTIVE DUTY.

    Any premium charged under subsection (d) of section 1076d of title 
10, United States Code, for coverage under TRICARE of members of 
reserve components who commit to continued service in the Selected 
Reserve after release from active duty, as authorized by subsection (a) 
of such section, may not be increased during fiscal year 2007 by an 
amount which exceeds 2.2 percent of such premium as of September 30, 
2006.

SEC. 707. TEMPORARY PROHIBITION ON INCREASE IN COPAYMENTS UNDER RETAIL 
              PHARMACY SYSTEM OF PHARMACY BENEFITS PROGRAM.

    Subsection (a)(6) of section 1074g of title 10, United States Code, 
as amended by section 702(b) of this Act, is further amended by adding 
at the end the following new subparagraph:
    ``(D) During the period beginning on October 1, 2006, and ending on 
September 31, 2007, the cost sharing requirements established under 
this paragraph for pharmaceutical agents available through retail 
pharmacies covered by paragraph (2)(E)(ii) may not exceed amounts as 
follows:
            ``(i) In the case of generic agents, $3.
            ``(ii) In the case of formulary agents, $9.
            ``(iii) In the case of nonformulary agents, $22.''.

SEC. 708. EXPANSION OF ELIGIBILITY OF MEMBERS OF THE SELECTED RESERVE 
              FOR COVERAGE UNDER TRICARE.

    (a) In General.--Subsection (a) of section 1076b of title 10, 
United States Code, is amended--
            (1) in paragraph (2), by striking ``or'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following new paragraph:
            ``(4) is an employee of a business with 20 or fewer 
        employees.''.
    (b) Premiums.--Subsection (e)(2) of such section is amended by 
adding at the end the following new subparagraph:
            ``(C) For members eligible under paragraph (4) of 
        subsection (a), the amount equal to 75 percent of the total 
        amount determined by the Secretary on an appropriate actuarial 
        basis as being reasonable for the coverage.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2006.

           Subtitle B--Planning, Programming, and Management

SEC. 721. TREATMENT OF TRICARE RETAIL PHARMACY NETWORK UNDER FEDERAL 
              PROCUREMENT OF PHARMACEUTICALS.

    Section 1074g of title 10, United States Code, is amended--
            (1) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively; and
            (2) by inserting after subsection (e) the following new 
        subsection (f):
    ``(f) TRICARE Retail Pharmacy Network.--The TRICARE Retail Pharmacy 
Network under the TRICARE program shall be treated as an element of the 
Department of Defense for purposes of the procurement of drugs by 
Federal agencies under section 8126 of title 38 in connection with the 
provision by pharmacies in the Network of pharmaceutical services to 
eligible covered beneficiaries under this section.''.

SEC. 722. 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) In General.--(1) The TRICARE program is the secondary payer 
for any health care services provided by an employer to a TRICARE 
eligible employee of such employer, and the spouse of such employee, 
through any group health plan offered by such employer.
    ``(2) An employer shall provide that a TRICARE eligible employee of 
such employer, and the spouse of such employee, is entitled to benefits 
and services under the group health plan offered by such employer in 
the same manner and to the same extent as similarly situated employees 
of such employer who are not TRICARE eligible employees.
    ``(3) An employer of a TRICARE eligible employee may not establish 
any condition applicable to the participation of the employee in a 
group health plan offered by such employer in connection with the 
entitlement of the employee for health care services under the TRICARE 
program, including any condition on--
            ``(A) the eligibility of the employee for participation in 
        the plan; or
            ``(B) benefits or services available to the employee under 
        the plan.
    ``(b) Prohibition on Incentives for TRICARE Eligible Employees Not 
To Enroll or To Disenroll in Group Health Plans.--(1) An employer may 
not offer a TRICARE eligible employee any financial or other benefit 
(including health services coverage that is supplemental to health 
services coverage under the TRICARE program) not to enroll, or to 
disenroll, in the group health plan offered by the employer in order to 
ensure that the TRICARE program, rather than the plan, is the primary 
payer for health care services received by the employee.
    ``(2)(A) An employer who violates the prohibition in paragraph (1) 
shall be liable to the United States for a civil penalty in an amount 
not to exceed $5,000 for each violation.
    ``(B) Any amounts collected under this paragraph shall be credited 
to the appropriation available for the TRICARE program for the fiscal 
year in which such amounts are collected.
    ``(3)(A) Except as provided in subparagraph (B), the provisions of 
section 1128A of the Social Security Act (42 U.S.C. 1320a-7a), other 
than subsections (a) and (b) of such section 1128A, which provisions 
relate to procedures for the imposition of civil money penalties for 
certain violations of the Social Security Act, shall apply to the 
imposition of penalties under paragraph (2).
    ``(B) The Secretary of Defense may provide in the regulations 
prescribed under this section for the application to the imposition of 
penalties under paragraph (2) of procedural requirements specified in 
such regulations rather than the procedural requirements referred to in 
subparagraph (A). Any procedural requirements under such regulations 
shall be comparable to the procedural requirements referred to in 
subparagraph (A).
    ``(c) 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.
    ``(d) Inapplicability to Certain Employers.--The provisions of this 
section do not apply to any employer who has fewer than 20 employees.
    ``(e) Retention of Eligibility for Coverage Under TRICARE.--Nothing 
in this section, including an election made by a TRICARE eligible 
employee under subsection (c), shall be construed to effect, modify, or 
terminate the eligibility of a 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.
    ``(f) Collection of Information.--(1) To improve the administration 
of this section, the Secretary of Defense may utilize the authorities 
on collection of information set forth in paragraphs (1) and (2) of 
section 1095(k) of this title, including the authority in the second 
sentence of paragraph (2) of such section.
    ``(2) Information obtained pursuant to the use of the authorities 
in paragraph (1) may not be disclosed for any purpose of than to carry 
out the purpose of this section.
    ``(g) 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.
    ``(h) Regulations.--The Secretary of Defense shall prescribe 
regulations relating to the administration and enforcement of this 
section. The regulations shall be prescribed in consultation with the 
other administering Secretaries and the Attorney General, as 
appropriate.
    ``(i) 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 `primary payer' means a group health plan 
        that provides a benefit that would be primary under section 
        1079(j)(1) or 1086(g) of this title.
            ``(4) The term `secondary payer' means a plan or program 
        whose medical benefits are payable only after a primary payer 
        has provided medical benefits in accordance with applicable law 
        and the plan of the primary payer.
            ``(5) The term `TRICARE eligible employee' means a covered 
        beneficiary under section 1086 of this title entitled to health 
        care benefits under the TRICARE program.
    ``(j) 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. 723. ENROLLMENT IN THE TRICARE PROGRAM.

    (a) System of Enrollment Required.--Chapter 55 of title 10, United 
States Code, is amended by inserting after section 1097c, as added by 
section 722(a) of this Act, the following new section:
``Sec. 1097d. TRICARE program: system of enrollment
    ``(a) Establishment of System.--Not later than October 1, 2007, the 
Secretary of Defense shall establish a universal system for enrollment 
of all beneficiaries who obtain health care services from military 
medical treatment facilities or civilian health care providers under 
the TRICARE program (in this section referred to as `participating 
beneficiaries').
    ``(b) Purposes of System.--The purposes of the system required by 
subsection (a) shall be as follows:
            ``(1) To ensure the efficient administration of benefits 
        under the TRICARE program, including the Standard option of 
        TRICARE.
            ``(2) To ensure that the geographic distribution of 
        healthcare providers under the TRICARE program meets the needs 
        of participating beneficiaries for ready access to health care 
        services under the program.
            ``(3) To promote the implementation of disease management 
        and chronic care management programs authorized by the National 
        Defense Authorization Act for Fiscal Year 2007 and other 
        provisions of law.
    ``(c) Elements.--The system required by subsection (a) shall be 
subject to the following:
            ``(1) Enrollment is required for all benefits options under 
        the TRICARE program.
            ``(2) A one-time enrollment fee (in the amount of $25, in 
        the case of an individual enrolling in self only coverage, or 
        $40, in the case of an individual enrolling in self and family 
        coverage) may be collected for all participating beneficiaries 
        who utilize the Standard option of TRICARE, except that such 
        enrollment fee may not be collected from the following:
                    ``(A) Dependents of members of the armed forces on 
                active duty.
                    ``(B) Dependents of Reserves on extended active 
                duty pursuant to a call or order to active duty of 30 
                days or more.
                    ``(C) Participating beneficiaries who are also 
                eligible for benefits under the Medicare program under 
                title XVIII of the Social Security Act (42 U.S.C. 1395 
                et seq.).
                    ``(D) Participating beneficiaries enrolled in 
                TRICARE Reserve Select under section 1076d of this 
                title.
            ``(3) Enrollment in the system may occur at any time.
            ``(4) Enrollment in the system shall be by a variety of 
        means utilizing a standard format.
    ``(d) Administration.--The Secretary shall provide for the 
administration of the system in each region of the TRICARE program by 
the TRICARE Regional Director for such region.
    ``(e) Health Risk Assessment.--(1) The Secretary of Defense shall 
provide to each participating beneficiary who enrolls in the system 
required by subsection (a) a health risk assessment not later than 120 
days after the date of the enrollment of such participating beneficiary 
in the system.
    ``(2) The Secretary shall provide health risk assessments under 
paragraph (1) by any means that the Secretary considers appropriate for 
purposes of this section.
    ``(f) Consequences of Lack of Payment of Enrollment Fee.--(1) In 
the case of any participating beneficiary who is subject to the payment 
of an enrollment fee under the authority in subsection (c)(2), payment 
of the enrollment fee shall, except as provided in paragraph (2), be a 
condition for receipt of benefits under the TRICARE program.
    ``(2) The Secretary of Defense may waive the applicability of 
paragraph (1) to any participating beneficiary or class of 
participating beneficiaries if the Secretary determines that the waiver 
is in the best interests of the United States.
    ``(g) Communications and Outreach With Enrollees.--(1) The 
Secretary of Defense shall, on a periodic basis but not less often than 
annually, provide to participating beneficiaries who are enrolled in 
the system required by subsection (a) information on current matters 
relating to the TRICARE program, including information on benefits 
available under the TRICARE program and information on preventive 
health care services and other practices intended to promote health and 
wellness among such participating beneficiaries.
    ``(2) The Secretary shall, on a periodic basis, conduct surveys or 
otherwise collect information on participating beneficiaries enrolled 
in the system with respect to the following:
            ``(A) The satisfaction of such beneficiaries who are 
        participants in the option of the TRICARE program known as 
        TRICARE Standard with the nature and scope of, and access to, 
        health care services under that option.
            ``(B) Other health care insurance, if any, that is 
        available to such beneficiaries.
            ``(C) Any other matters that the Secretary considers 
        appropriate to improve health care benefits and access to 
        health care services under the TRICARE program.
    ``(h) Consultation.--The Secretary of Defense shall carry out this 
section in consultation with the other administering Secretaries.''.
    (b) Comptroller General Report on System.--Not later than September 
15, 2007, the Comptroller General of the United States shall submit to 
the congressional defense committees a report on the system of 
enrollment required by section 1097d of title 10, United States Code 
(as added by subsection (a)). The report shall include the following:
            (1) An assessment of the progress made toward 
        implementation of the system.
            (2) A description and assessment of the integration of the 
        system with the regional business plan of the TRICARE Regional 
        Offices.
            (3) An assessment of the readiness of the Department to 
        implement the system by October 1, 2007.
    (c) Repeal of Superseded Authority.--Section 1099 of title 10, 
United States Code, is repealed.
    (d) Clerical Amendments.--The table of sections at the beginning of 
chapter 55 of such title is amended--
            (1) by inserting after the item relating to section 1097c, 
        as added by section 722(b) of this Act, the following new item:

``1097d. TRICARE program: system of enrollment.'';
        and
            (2) by striking the item relating to section 1099.

SEC. 724. INCENTIVE PAYMENTS FOR THE PROVISION OF SERVICES UNDER THE 
              TRICARE PROGRAM IN MEDICALLY UNDERSERVED AREAS.

    (a) In General.--Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1097d, as added by section 723(a) of 
this Act, the following new section:
``Sec. 1097e. TRICARE program: incentive payments for provision of 
              services in medically underserved areas
    ``(a) Incentive Payments Authorized.--(1) Commencing with the 
calendar quarter beginning on January 1, 2008, the Secretary of 
Defense, after consultation with the other administering Secretaries, 
shall make incentive payments under this section to physicians 
participating in the TRICARE program in a medically underserved area.
    ``(2) Incentive payments payable under this section shall be paid 
with respect to physician professional services furnished in medically 
underserved areas.
    ``(3) The incentive payment payable under this section with respect 
to a physician professional service is in addition to any other amounts 
payable for such service under the TRICARE program.
    ``(b) Medically Underserved Area.--For purposes of this section, a 
medically underserved area is either of the following:
            ``(1) A primary care scarcity county (with respect to a 
        primary care physician) or specialist care scarcity county 
        (with respect to any other physician) identified by the 
        Secretary of Health and Human Services under section 1833(u)(4) 
        of the Social Security Act (42 U.S.C. 1395l(u)(4)).
            ``(2) A health professional shortage area identified by the 
        Secretary of Health and Human Services under section 1833(m)(1) 
        of the Social Security Act (42 U.S.C. 1395l(m)(1)).
    ``(c) Amount of Incentive Payment.--The amount of the incentive 
payment payable under subsection (a) with respect to a physician 
professional service is as follows:
            ``(1) In the case of a service furnished by a primary care 
        physician in a primary care scarcity county or a service 
        furnished by any other physician in a specialist care scarcity 
        county covered by subsection (b)(1), an amount equal to 5 
        percent of the amount payable for the service under the TRICARE 
        program.
            ``(2) In the case of a service furnished in an area covered 
        by subsection (b)(2), an amount equal to 10 percent of the 
        amount payable for the service under the TRICARE program.
            ``(3) In the case of a service provided in a location that 
        is covered by both paragraphs (1) and (2) of subsection (b), an 
        amount equal to 15 percent of the amount payable for the 
        service under the TRICARE program.
    ``(d) Location of Provision of Service.--(1) For purposes of 
identifying the location in which a physician professional service is 
furnished for purposes of this section, the Secretary of Defense shall 
use the 5-digit postal ZIP code system.
    ``(2) If the 5-digit postal ZIP code for an area covers more than 
one county, the dominant county (as determined by the United States 
Postal Service or otherwise) shall be used to determine whether the 
postal ZIP code is in a scarcity county covered by subsection (b)(1).
    ``(e) Frequency of Payment.--Incentive payments payable under this 
section shall be paid on a quarterly basis for incentive payments 
accrued during the previous calendar quarter.
    ``(f) Regulations.--The Secretary of Defense, in consultation with 
the other administering Secretaries, shall prescribe regulations for 
the administration of this section.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 55 of such title, as amended by section 723(d)(1) of this Act, 
is further amended by inserting after the item relating to section 
1097d the following new item:

``1097e. TRICARE program: incentive payments for provision of services 
                            in medically underserved areas.''.

SEC. 725. STANDARDIZATION OF CLAIMS PROCESSING UNDER TRICARE PROGRAM 
              AND MEDICARE PROGRAM.

    (a) In General.--Effective October 1, 2007, 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.
            (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) Immediate Collection From Third-Party Payers.--
            (1) Policy required.--The Secretary of Defense, in 
        consultation with the other administering Secretaries, shall 
        prescribe in regulations a policy for the collection of amounts 
        from third-party payers as authorized by section 1095 of title 
        10, United States Code, immediately upon the presentation of 
        claims for health care services to the Department of Defense.
            (2) Overpayment.--The policy required by subsection (a) 
        shall include mechanisms for the recoupment by third-party 
        payers of amounts overpaid to the United States under the 
        policy.
    (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 ``administering Secretaries'' has the meaning 
        given that term in section 1072(3) of title 10, United States 
        Code.
            (2) The term ``Medicare program'' means the program under 
        title XVIII of the Social Security Act (42 U.S.C. 1395 et 
        seq.).
            (3) The term ``TRICARE program'' has the meaning given that 
        term in section 1072(7) of title 10, United States Code.

SEC. 726. 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:
            (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 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 personnel under the TRICARE program, 
        including resource-sharing and clinical support agreements, 
        direct contracting, and venture capital investments.
            (4) To achieve savings targets for each region under the 
        TRICARE program.
    (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) ensure approval by a Regional Director of all 
                proposals for the support of military treatment 
                facilities in the region concerned in accordance with 
                the most current requirements established by such 
                Regional Director under subsection (a);
                    (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) 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; and
                            (ii) accreditation of health care staffing 
                        firms by the Joint Commission on the 
                        Accreditation of Health Care Organization 
                        Health Care Staffing Standards;
                    (E) 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;
                    (F) provide for a consistent process 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
                    (G) provide for a system for tracking the 
                performance of each project 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 
        each year, the Secretary shall submit to the congressional 
        defense committees 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 status of the 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).

SEC. 727. UNIFORM STANDARDS FOR ACCESS TO HEALTH CARE SERVICES FOR 
              WOUNDED OR INJURED SERVICEMEMBERS.

    (a) Uniform Standards Required.--The Secretary of Defense shall 
prescribe in regulations uniform standards for the access of wounded or 
injured members of the Armed Forces to health care services through the 
military health care system.
    (b) Matters Covered by Standards.--The standards required by 
subsection (a) shall establish uniform policy with respect to the 
following:
            (1) The access of wounded or injured 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 the 
        in treatment of head, vision, and spinal cord injuries.
            (4) Waiting times of such members for acute care and for 
        routine follow-up care.
    (c) Referral to Providers Outside Military Health Care System.--To 
the extent practicable, the Secretary shall require in the standards 
under subsection (a) that the standards 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) Tracking of Performance.--The standards required by subsection 
(a) shall require each Secretary concerned to establish mechanisms for 
tracking the performance of the military health care system under the 
jurisdiction of such Secretary in meeting the requirements for access 
of wounded or injured members of the Armed Forces to health care 
services set forth in such standards.
    (e) Secretary Concerned Defined.--In this section, the term 
``Secretary concerned'' has the meaning given that term in section 
101(a) of title 10, United States Code.

SEC. 728. DISEASE AND CHRONIC CARE MANAGEMENT.

    (a) Program Required.--Not later than October 1, 2007, the 
Secretary of Defense shall establish and implement throughout the 
military health care system a fully-integrated program on disease and 
chronic care management that provides, to the extent practicable, 
uniform policies and practices, and regional execution of such policies 
and practices, on disease management and chronic care management 
throughout that system, including both military hospitals and clinics 
and civilian healthcare providers.
    (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.--The program required by subsection (a) shall meet 
the following requirements:
            (1) Based on uniform policies prescribed by the Secretary 
        under subsection (a), 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.
            (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) Design of Certain Portions of Program.--As part of the program 
required under subsection (a), the Secretary may contract for the 
design of a disease and chronic care management program for the 
military health care system.
    (e) Actions To Facilitate Program.--In order to facilitate the 
carrying out of the program required by subsection (a), 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.
    (f) Comptroller General Report.--Not later than September 15, 2007, 
the Comptroller General of the United States shall submit to the 
congressional defense committees a report on the program required by 
subsection (a). The report shall include the following:
            (1) An assessment of the progress made toward 
        implementation of the program.
            (2) A description and assessment of the integration of 
        disease and chronic care management strategies in the regional 
        business plan of the TRICARE Regional Offices.
            (3) An assessment of the readiness of the Department to 
        implement the program by October 1, 2007.
    (g) Secretary of Defense Reports.--
            (1) In general.--Not later than January 1, 2008, and every 
        year thereafter, the Secretary shall submit to the 
        congressional defense committees a report on the program 
        required by subsection (a).
            (2) Report elements.--Each report required by this 
        subsection shall include the following:
                    (A) An assessment of the program during the one-
                year period ending on the date of such report.
                    (B) A description and assessment of improvements in 
                health status and clinical outcomes.
                    (C) A description of the savings and return on 
                investment associated with the program.
                    (D) A description of an investment strategy to 
                assure the sustainment of the disease and chronic care 
                management programs of the Department of Defense.

SEC. 729. POST-DEPLOYMENT HEALTH ASSESSMENTS FOR MEMBERS OF THE ARMED 
              FORCES RETURNING FROM DEPLOYMENT IN SUPPORT OF A 
              CONTINGENCY OPERATION.

    (a) In General.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary of Defense shall prescribe in 
regulations requirements applicable to the conduct of post-deployment 
health assessments for members of the Armed Forces returning from 
deployment in support of a contingency operation.
    (b) General Requirements.--The regulations prescribed under 
subsection (a) shall require the following:
            (1) That a health assessment be conducted on each member of 
        the Armed Forces returning from deployment in support of a 
        contingency operation within such time after the return of such 
        member from deployment as the Secretary shall specify in the 
        regulations.
            (2) That each health assessment be conducted by a 
        healthcare provider having such qualifications as the Secretary 
        shall specify in the regulations.
            (3) That each health assessment assess such health-related 
        matters as the Secretary shall specify in the regulations, 
        including an assessment of mental health (including Traumatic 
        Brain Injury (TBI)) for referral of a member for further 
        evaluation relating to mental health (including evaluation of 
        the effects of combat or operational stress).
            (4) That the results of each health assessment be stored in 
        a centralized data base maintained by the Secretary under this 
        section.
    (c) Assessments of Mental Health.--
            (1) Criteria for referral for further evaluations.--The 
        regulations prescribed under subsection (a) shall include--
                    (A) criteria 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);
                    (B) mechanisms to ensure that healthcare providers 
                are trained in the application of such criteria in 
                making such determinations; and
                    (C) mechanisms for oversight to ensure that 
                healthcare providers apply such criteria consistently.
            (2) Availability of referral.--Under the regulations, a 
        copy of a referral of a member for further evaluation relating 
        to mental health shall be--
                    (A) provided to the member;
                    (B) placed in the healthcare record of the member 
                that is maintained by the Department of Defense; and
                    (C) provided to the healthcare manager of the 
                member.
            (3) Tracking mechanisms.--The regulations shall include 
        mechanisms to ensure that a member who receives a referral for 
        further evaluation relating to mental health receives such 
        evaluation and obtains such care and services as are warranted.
            (4) Quality assurance.--The regulations shall include a 
        requirement that the Department address, as part of the 
        deployment health assessment quality assurance program of the 
        Department, the following:
                    (A) The types of healthcare providers conducting 
                post-deployment 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 criteria prescribed under paragraph (1)(A) 
                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 paragraph (3) 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.
    (d) 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 prescribed under this section.
            (2) Periodic evaluation of mental health assessment 
        processes.--The Comptroller General shall, on a periodic basis, 
        evaluate the following:
                    (A) The compliance of the Department of Defense and 
                healthcare providers with the requirements under this 
                section applicable to the assessment and referral of 
                members of the Armed Forces relating to mental health.
                    (B) The effectiveness of the processes under such 
                requirements in addressing the mental health care needs 
                of members returning from deployments overseas.
            (3) Reports.--(A) Not later than March 1, 2007, 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).
            (B) Upon completion of an evaluation under paragraph (2), 
        the Comptroller General shall submit to the committees of 
        Congress referred to in subparagraph (A) a report on such 
        evaluation.
    (e) 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.

SEC. 730. MENTAL HEALTH SELF-ASSESSMENT PROGRAM.

    (a) Finding.--Congress finds that the Mental Health Self-Assessment 
Program (MHSAP) of the Department of Defense is vital to the overall 
health and well-being of deploying members of the Armed Forces and 
their families because that program provides--
            (1) a non-threatening, voluntary, anonymous self-assessment 
        of mental health that is effective in helping to detect mental 
        health and substance abuse conditions;
            (2) awareness regarding warning signs of such conditions; 
        and
            (3) information and outreach to members of the Armed Forces 
        (including members of the National Guard and Reserves) and 
        their families on specific services available for such 
        conditions.
    (b) Expansion of Program.--The Secretary of Defense shall, acting 
through the Office of Health Affairs of the Department of Defense, take 
appropriate actions to expand the Mental Health Self-Assessment Program 
in order to achieve the following:
            (1) The continuous availability of the assessment under the 
        program to members and former members of the Armed Forces in 
        order to ensure the long-term availability of the diagnostic 
        mechanisms of the assessment to detect mental health conditions 
        that may emerge over time.
            (2) The availability of programs and services under the 
        program to address the mental health of dependent children of 
        members of the Armed Forces who have been deployed or 
        mobilized.
    (c) Outreach.--The Secretary shall develop and implement a plan to 
conduct outreach and other appropriate activities to expand and enhance 
awareness of the Mental Health Self-Assessment Program, and the 
programs and services available under that program, among members of 
the Armed Forces (including members of the National Guard and Reserves) 
and their families.
    (d) Reports.--Not later than one year after the date of the 
enactment of this Act, the Secretary shall submit to Congress a report 
on the actions undertaken under this section during the one-year period 
ending on the date of such report.

SEC. 731. 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 United States; 
                and
                    (B) will--
                            (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 2 extensions.
            (3) Notice and wait.--The Secretary may not commence the 
        exercise of the authority in paragraph (1) until 30 days after 
        the date on which the Secretary submits to the congressional 
        defense committees a report setting forth the minimum level of 
        performance by an incumbent contractor under a contract covered 
        by such paragraph that will be required by the Secretary in 
        order to be eligible for an extension authorized by such 
        paragraph.
            (4) Definitions.--In this subsection, the terms 
        ``administering Secretaries'' 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 congressional 
defense committees 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. 732. 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 Assistant Secretary of Defense for Force 
        Protection and Readiness.''.
    (b) Response to Medical Needs Arising From Mandatory Military 
Vaccinations.--
            (1) In general.--The Secretary of Defense shall maintain a 
        joint military medical center of excellence focusing on the 
        medical needs arising from mandatory military vaccinations.
            (2) Elements.--The joint military medical center of 
        excellence under paragraph (1) shall consist of the following:
                    (A) The Vaccine Healthcare Centers of the 
                Department of Defense, which shall be the principal 
                elements of the center.
                    (B) Any other elements that the Secretary considers 
                appropriate.
            (3) Authorized activities.--In acting as the principal 
        elements of the joint military medical center under paragraph 
        (1), the Vaccine Healthcare Centers referred to in paragraph 
        (2)(A) may carry out the following:
                    (A) Medical assistance and care to individuals 
                receiving mandatory military vaccines and their 
                dependents, including long-term case management for 
                adverse events where necessary.
                    (B) Evaluations to identify and treat potential and 
                actual health effects from vaccines before and after 
                their use in the field.
                    (C) The development and sustainment of a long-term 
                vaccine safety and efficacy registry.
                    (D) Support for an expert clinical advisory board 
                for case reviews related to disability assessment 
                questions.
                    (E) Long-term and short-term studies to identify 
                unanticipated benefits and adverse events from 
                vaccines.
                    (F) Educational outreach for immunization providers 
                and those required to receive immunizations.
                    (G) The development, dissemination, and validation 
                of educational materials for Department of Defense 
                healthcare workers relating to vaccine safety, 
                efficacy, and acceptability.
    (c) Limitation on Restructuring of Vaccine Healthcare Centers.--
            (1) Limitation.--The Secretary of Defense may not downsize 
        or otherwise restructure the Vaccine Healthcare Centers of the 
        Department of Defense until the Secretary submits to Congress a 
        report setting forth a plan for meeting the immunization needs 
        of the Armed Forces during the 10-year period beginning on the 
        date of the submittal of the report.
            (2) Report elements.--The report submitted under paragraph 
        (1) shall include the following:
                    (A) An assessment of the potential biological 
                threats to members of the Armed Forces that are 
                addressable by vaccine.
                    (B) An assessment of the distance and time required 
                to travel to a Vaccine Healthcare Center by members of 
                the Armed Forces who have severe reactions to a 
                mandatory military vaccine.
                    (C) An identification of the most effective 
                mechanisms for ensuring the provision services by the 
                Vaccine Healthcare Centers to both military medical 
                professionals and members of the Armed Forces.
                    (D) An assessment of current military and civilian 
                expertise with respect to mass adult immunization 
                programs, including case management under such programs 
                for rare adverse reactions to immunizations.
                    (E) An organizational structure for each military 
                department to ensure support of the Vaccine Healthcare 
                Centers in the provision of services to members of the 
                Armed Forces.

SEC. 733. ENHANCED MENTAL HEALTH SCREENING AND SERVICES FOR MEMBERS OF 
              THE ARMED FORCES.

    (a) Required Elements of Assessments.--Each pre-deployment mental 
health assessment of a member of the Armed Forces, shall include the 
following:
            (1) A mental health history of the member, with emphasis on 
        mental health status during the 12-month period ending on the 
        date of the assessment and a review of military service during 
        that period.
            (2) 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.
            (3) An assessment of any behavior of the member identified 
        by the member's commanding officer that could indicate the 
        presence of a mental health condition.
            (4) Information provided by the member (through a checklist 
        or other means) on the presence of any serious mental illness 
        or any symptoms indicating a mental health condition or 
        disorder.
    (b) Referral for Further Evaluation.--Each member of the Armed 
Forces who is determined during a pre-deployment or post-deployment 
mental health assessment to have, or have symptoms or indicators for, a 
mental health condition or disorder shall be referred to a qualified 
health care professional with experience in the evaluation and 
diagnosis of mental health conditions.
    (c) Referral of Members Deployed in Contingency or Combat 
Operations.--Any member of the Armed Forces called or ordered to active 
duty in support of contingency or combat operations who requests access 
to mental health care services any time before, during, or after 
deployment shall be provided access to such services--
            (1) not later than 72 hours after the making of such 
        request; or
            (2) at the earliest practicable time thereafter.
    (d) Minimum Mental Health Standards for Deployment.--
            (1) Standards required.--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) Elements.--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 
                (PTSD).
            (3) Utilization.--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 contingency operation.
    (e) Monitoring of Certain Individuals.--The Secretary of Defense 
shall develop a plan, to be implemented throughout the Department of 
Defense, for monitoring the mental health of each member of the Armed 
Forces who, after deployment to a combat operation or contingency 
operation, is known--
            (1) to have a mental health condition or disorder; or
            (2) to be receiving treatment, including psychotropic 
        medications, for a mental health condition or disorder.
    (f) Implementation.--Not later than six months 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 or 
Representatives a report on the actions taken to implement the 
requirements of this section.

SEC. 734. EDUCATION, TRAINING, AND SUPERVISION OF PERSONNEL PROVIDING 
              SPECIAL EDUCATION SERVICES UNDER EXTENDED BENEFITS UNDER 
              TRICARE.

    Section 1079(d)(2) of title 10, United States Code is amended by 
adding at the end the following: ``The regulations shall include the 
following:
            ``(A) Requirements for education, training, and supervision 
        of individuals providing special education services known as 
        Applied Behavioral Analysis under this subsection that are in 
        addition to any other education, training, and supervision 
        requirements applicable to Board Certified Behavior Analysts or 
        Board Certified Associate Behavior Analysts or are otherwise 
        applicable to personnel providing such services under 
        applicable State law.
            ``(B) Metrics to identify and measure the availability and 
        distribution of individuals of various expertise in Applied 
        Behavioral Analysis in order to evaluate and assure the 
        availability of qualified personnel to meet needs for Applied 
        Behavioral Analysis under this subsection.''.

                    Subtitle C--Studies and Reports

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 (PTSD) and other mental health 
conditions.
    (b) Duration.--The requirement to carry out pilot projects under 
this section shall commence on October 1, 2007. Any pilot projects 
carried out under this section shall cease on September 30, 2008.
    (c) Pilot Project Requirements.--
            (1) Mobilization-demobilization facility.--
                    (A) In general.--One of the pilot projects under 
                this section shall be carried out at a military medical 
                facility at a large military installation at which the 
                mobilization or demobilization of members of the Armed 
                Forces occurs.
                    (B) Elements.--The pilot project under this 
                paragraph shall be designed to evaluate and produce 
                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 in a manner that avoids the referral of 
                patients to specialty care by a psychiatrist or other 
                mental health professional.
            (2) National guard or reserve facility.--
                    (A) In general.--One of the pilot projects under 
                this section shall be carried out at the location of a 
                National Guard or Reserve unit or units that are 
                located more than 40 miles from a military medical 
                facility and whose personnel are served primarily by 
                civilian community health resources.
                    (B) Elements.--The pilot project under this 
                paragraph shall be designed--
                            (i) to evaluate approaches for providing 
                        evidence-based clinical information on Post 
                        Traumatic Stress Disorder to civilian primary 
                        care providers; and
                            (ii) to develop educational materials and 
                        other tools for use by members of the National 
                        Guard or Reserve who come into contact with 
                        other members of the National Guard or Reserve 
                        who may suffer from Post Traumatic Stress 
                        Disorder in order to encourage and facilitate 
                        early reporting and referral for treatment.
            (3) Internet-based diagnosis and treatment.--One of the 
        pilot projects under this section shall be designed to 
        evaluate--
                    (A) Internet-based automated tools available to 
                military and civilian health care providers for the 
                early diagnosis and treatment of Post Traumatic Stress 
                Disorder, and for tracking patients who suffer from 
                Post Traumatic Stress Disorder; and
                    (B) Internet-based tools available to family 
                members of members of the Armed Forces in order to 
                assist such family members in the identification of the 
                emergence of Post Traumatic Stress Disorder.
    (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.
                    (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 Reserve 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.
    (f) Funding.--
            (1) In general.--Of the amount authorized to be 
        appropriated by section 303(a) for the Defense Health Program, 
        $10,000,000 shall be available for pilot projects under this 
        section.
            (2) Availability.--The amount available under paragraph (1) 
        shall remain available until expended.

SEC. 742. ANNUAL REPORTS ON CERTAIN MEDICAL MALPRACTICE CASES.

    (a) Annual Reports to Secretary of Defense.--
            (1) Annual reports required.--Not later than February 1, 
        2007, and annually thereafter, each Secretary of a military 
        department shall submit to the Secretary of Defense a report on 
        the following:
                    (A) Each case (other than a case involving the 
                treatment of a member of the Armed Forces on active 
                duty) during the preceding calendar year in which--
                            (i) a complaint or claim was made of 
                        medical malpractice committed in a medical 
                        treatment facility of such military department 
                        or by a health care provider of or employed by 
                        such military department; and
                            (ii) either--
                                    (I) a judgment was entered against 
                                the United States in the amount of 
                                $1,000,000 or more; or
                                    (II) an award, compromise, or 
                                settlement was entered into by the 
                                United States requiring payment by the 
                                United States in the amount of 
                                $1,000,000 or more.
                    (B) Each case during the preceding calendar year in 
                which the death of, or serious personal injury to, a 
                member of the Armed Forces on active duty occurred as a 
                result of medical malpractice while the member was a 
                patient in a medical treatment facility of such 
                military department or under the care of a health care 
                provider of or employed by such military department.
            (2) Required information.--The information required in a 
        report under paragraph (1) on a case covered by such paragraph 
        shall include the following:
                    (A) A description of the medical malpractice 
                involved.
                    (B) A description of the actions, if any, taken 
                with respect to the continued practice in the military 
                health care system of the health care professionals 
                involved.
    (b) Transmittal of Reports to Congress.--
            (1) Transmittal required.--Not later than April 1, 2007, 
        and annually thereafter, the Secretary of Defense shall 
        transmit to the congressional defense committees the reports 
        submitted to the Secretary by the Secretaries of the military 
        departments in such year.
            (2) Transmittal matters.--In transmitting reports for a 
        year under paragraph (1), the Secretary may include with such 
        reports the following:
                    (A) Any information or recommendations with respect 
                to the matters covered by such reports that the 
                Secretary considers appropriate.
                    (B) A summary of the actions taken during the year 
                to address medical malpractice in the military health 
                care system.
    (c) Disclosure of Information.--In submitting or transmitting 
reports under this section, the Secretaries of the military departments 
and the Secretary of Defense shall ensure that the information 
contained in such reports is suitable for disclosure to the public, 
taking into account the provisions of law as follows:
            (1) Section 552a of title 5, United States Code (commonly 
        referred to as the ``Privacy Act'').
            (2) Laws relating to the protection and confidentiality of 
        medical quality assurance records, including the provisions of 
        section 1102 of title 10, United States Code.
            (3) Any other laws relating to the protection and 
        confidentiality of medical records.

SEC. 743. 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.
            (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) Response to Certain Findings.--
            (1) Pharmacy and therapeutics committee.--The Pharmacy and 
        Therapeutics Committee shall--
                    (A) examine the results of the study of the 
                Comptroller General under subsection (b)(7); and
                    (B) make such recommendations to the Secretary of 
                Defense for modifications in the composition and 
                decision-making processes of the Committee as the 
                Committee considers appropriate in light of such 
                results in order to improve the efficiency of such 
                processes.
            (2) Beneficiary advisory panel.--The Beneficiary Advisory 
        Panel shall--
                    (A) examine the results of the study of the 
                Comptroller General under subsection (b)(8); and
                    (B) make such recommendations to the Secretary of 
                Defense for modifications in the composition and 
                advisory functions of the Panel as the Panel considers 
                appropriate in light of such results in order to--
                            (i) ensure the independence and consumer 
                        focus of the Panel;
                            (ii) ensure the participation of the Panel 
                        as an advisory board throughout implementation 
                        of the Department of Defense pharmacy benefits 
                        program; and
                            (iii) achieve more effective communication 
                        between the Secretary and the Panel.
    (d) 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. 744. 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 shall conduct an audit of the health care costs and 
        cost-saving measures of the Department of Defense in accordance 
        with this subsection. The Comptroller General shall conduct the 
        audit in conjunction with 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
                            (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.
    (c) 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 1074d of title 10, United 
        States Code.
    (d) 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.
    (e) Report.--Not later than April 1, 2007, the Comptroller General 
shall submit to the congressional defense committees a 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. 745. REVIEW OF DEPARTMENT OF DEFENSE MEDICAL QUALITY IMPROVEMENT 
              PROGRAM.

    (a) Review Required.--The 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.
    (b) Elements.--The review required pursuant to subsection (a) shall 
include the following:
            (1) 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.
            (2) An assessment of the transparency and public reporting 
        mechanisms of the Department on medical quality.
            (3) 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.
            (4) An assessment of the patient safety programs of the 
        Department.
            (5) A description of the extent to which the Department 
        seeks to address particular medical errors, and an assessment 
        of the adequacy of such efforts.
            (6) An assessment of accountability within the military 
        health care system for preventable negative outcomes involving 
        negligence.
            (7) An assessment of the performance of the health care 
        safety and quality measures of the Department.
            (8) 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.
            (9) A comparison of the methods, mechanisms, and programs 
        and activities referred to in paragraphs (1) through (8) with 
        similar methods, mechanisms, programs, and activities used in 
        other public and private health care systems and organizations.
    (c) Report.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, the Secretary shall submit to the 
        congressional defense committees a report on the review 
        required pursuant to subsection (a).
            (2) Elements.--The report required by paragraph (1) shall 
        include the following:
                    (A) The results of the review required pursuant to 
                subsection (a).
                    (B) A discussion of recent highlights in the 
                accomplishments of the Department of Defense medical 
                quality assurance program.
                    (C) Such recommendations for legislative or 
                administrative action as the Secretary considers 
                appropriate for the improvement of the program.

SEC. 746. 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;
            (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 1 year after the date of enactment of 
this Act, the Secretary of Defense shall submit a report to Congress on 
the results of the study described in subsection (a).

                       Subtitle D--Other Matters

SEC. 761. EXTENSION OF LIMITATION ON CONVERSION OF MILITARY MEDICAL AND 
              DENTAL POSITIONS TO CIVILIAN MEDICAL AND DENTAL 
              POSITIONS.

    Section 744(a)(1) of the National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3360; 10 U.S.C. 129c 
note) is amended--
            (1) by inserting ``in a fiscal year'' before ``until'';
            (2) by inserting ``with respect to that fiscal year'' after 
        ``House of Representatives''; and
            (3) by striking the last sentence and inserting the 
        following new sentences: ``The certification with respect to 
        fiscal year 2007 may not be submitted before June 30, 2006. The 
        certification 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.''.

SEC. 762. 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 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 Committee on Armed Services of the Senate and the 
        Committee on Armed Services of 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.--Of the funds available to the 
        Defense Health Program, the Secretary of Defense may 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 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.
            (2) Costs of collaboration.--Of the funds available to the 
        Defense Health Program, 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 year.

SEC. 763. SENSE OF SENATE ON THE TRANSFORMATIONAL MEDICAL TECHNOLOGY 
              INITIATIVE OF THE DEPARTMENT OF DEFENSE.

    (a) Findings.--The Senate finds the following:
            (1) The most recent Quadrennial Defense Review and other 
        studies have identified the need to develop broad-spectrum 
        medical countermeasures against the threat of genetically 
        engineered bioterror agents.
            (2) The Transformational Medical Technology Initiative of 
        the Department of Defense implements cutting edge 
        transformational medical technologies and applies them to 
        address the challenges of known, emerging, and bioengineered 
        threats.
            (3) The Transformational Medical Technology Initiative is 
        designed to provide such technologies in a much shorter 
        timeframe, and at lower cost, than is required with traditional 
        approaches.
    (b) Sense of Senate.--It is the sense of the Senate that--
            (1) the Transformational Medical Technology Initiative is 
        an important effort to provide needed capability within the 
        Department of Defense to field effective broad-spectrum 
        countermeasures against a significant array of current and 
        future biological threats; and
            (2) innovative technological approaches to achieve broad-
        spectrum medical countermeasures are a necessary component of 
        the capacity of the Department to provide chemical-biological 
        defense and force protection capabilities for the Armed Forces.

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

             Subtitle A--Acquisition Policy and Management

SEC. 801. ADDITIONAL CERTIFICATION REQUIREMENTS FOR MAJOR DEFENSE 
              ACQUISITION PROGRAMS.

    (a) Additional Certification Requirements.--Subsection (a) of 
section 2366a of title 10, United States Code, is amended--
            (1) in paragraph (6), by striking ``and'' at the end;
            (2) redesignating paragraph (7) as paragraph (10); and
            (3) by inserting after paragraph (6) the following new 
        paragraphs:
            ``(7) the program is needed to meet validated requirements 
        consistent with the national military strategy;
            ``(8) reasonable estimates have been developed to execute 
        the product development and production plan under the program;
            ``(9) funding is available to execute the product 
        development and production plan under the program 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. 802. EXTENSION AND ENHANCEMENT OF DEFENSE ACQUISITION CHALLENGE 
              PROGRAM.

    (a) Priority for Proposals From Certain Businesses.--Paragraph (5) 
of subsection (b) of section 2359b of title 10, United States Code, is 
amended to read as follows:
    ``(5) 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
            ``(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.''.
    (b) Extension.--Subsection (j) of such section is amended by 
striking ``September 30, 2007'' and inserting ``September 30, 2012''.

SEC. 803. BASELINE DESCRIPTION AND UNIT COST REPORTS FOR MAJOR DEFENSE 
              ACQUISITION PROGRAMS.

    (a) Specification of Original Baseline Estimate.--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: ``in preparation for entry into system development and 
demonstration, or at program initiation, whichever occurs later''.
    (b) Reports to Congress on Certain Cost Increases.--Section 
2433(e)(1) of such title is amended by adding at the end the following 
new subparagraph:
    ``(C) If the Secretary concerned determines that the program 
acquisition unit cost or procurement unit cost of a major defense 
acquisition program has increased by a percentage equal to or greater 
than the significant cost growth threshold for the program and a 
Selected Acquisition Report has been submitted to Congress under 
subparagraph (A) or (B), each subsequent quarterly or comprehensive 
annual Selected Acquisition Report shall include the information 
required by subsection (g). No further report on increases in the 
program acquisition unit cost or procurement unit cost shall be 
required under subsection (c) or (d) unless the program manager has 
reasonable cause to believe that the program acquisition unit cost or 
procurement unit cost has increased by a percentage equal to or greater 
than the critical cost growth threshold.''.

SEC. 804. 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.
``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 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.
    ``(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 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
                    ``(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) 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;
                    ``(B) 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
                    ``(C) 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 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;
            ``(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) 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. 805. ADJUSTMENT OF ORIGINAL BASELINE ESTIMATE FOR MAJOR DEFENSE 
              ACQUISITION PROGRAMS EXPERIENCING COST GROWTH RESULTING 
              FROM DAMAGE CAUSED BY HURRICANES KATRINA, RITA, AND 
              WILMA.

    (a) Adjustment Authorized.--Notwithstanding any limitations under 
section 2435(d) of title 10, United States Code, the Secretary of 
Defense may adjust the original Baseline Estimate for a major defense 
acquisition program that is carried out primarily in the Hurricane 
Katrina disaster area, Hurricane Rita disaster area, or Hurricane Wilma 
disaster area for the sole purpose of addressing cost growth in such 
program that, as determined by the Secretary, is directly attributable 
to damage caused by Hurricane Katrina, Hurricane Rita, or Hurricane 
Wilma.
    (b) Notice to Congress.--The Secretary shall identify any 
adjustment to the original Baseline Estimate of a major defense 
acquisition program under subsection (a), and provide an explanation of 
the basis for such adjustment, in the first Selected Acquisition Report 
that is submitted under section 2432 of title 10, United States Code, 
after such adjustment is made.
    (c) Sunset.--The authority to adjust an original Baseline Estimate 
for a major defense acquisition program under subsection (a) shall 
expire on the date that is one year after the date of the enactment of 
this Act.
    (d) Definitions.--In this section:
            (1) The term ``major defense acquisition program'' has the 
        meaning given that term in section 2430 of title 10, United 
        States Code.
            (2) The term ``original Baseline Estimate'', in the case of 
        a major defense acquisition program, means the first baseline 
        description for the program established under section 2435(a) 
        of title 10, United States Code.
            (3) The terms ``Hurricane Katrina disaster area'', 
        ``Hurricane Rita disaster area'', and ``Hurricane Wilma 
        disaster area'' have the meaning given such terms in section 
        1400M of the Internal Revenue Code of 1986.

SEC. 806. INTERNAL CONTROLS FOR PROCUREMENTS ON BEHALF OF THE 
              DEPARTMENT OF DEFENSE BY CERTAIN NON-DEFENSE AGENCIES.

    (a) Inspector General Reviews and Determinations.--
            (1) In 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--
                    (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 following certain determinations.--If the 
        Inspectors General determine under paragraph (1) that the 
        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 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 
        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 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--
            (1) determine that such non-defense agency is compliant 
        with defense procurement requirements; and
            (2) 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 subsection (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. 807. REGULATIONS ON USE OF FIXED-PRICE CONTRACTS IN DEVELOPMENT 
              PROGRAMS.

    (a) In General.--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 on the use of fixed-price type 
contracts in development programs.
    (b) Elements.--As modified under subsection (a), the regulations 
described in that subsection shall--
            (1) establish a preference for the use of fixed-price type 
        contracts in development programs to the maximum extent 
        practicable in light of the level of program risk; and
            (2) require the use of fixed-price type contracts in each 
        contract for system development and demonstration, or 
        operational system development, unless the use of a different 
        contract type is specifically authorized pursuant to subsection 
        (c).
    (c) Authorization of Use of Different Contract Type.--
            (1) In general.--As modified under subsection (a), the 
        regulations described in that subsection shall provide that the 
        Secretary of Defense may authorize the use of a difference 
        contract type under subsection (b)(2) with respect to a program 
        upon a written determination by the Secretary that--
                    (A) 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
                    (B) the complexity and technical challenge of the 
                program is not the result of a failure to meet the 
                certification requirements established in section 2366a 
                of title 10, United States Code.
            (2) Submittal to congressional defense committees.--The 
        regulations shall provide that a copy of any determination on a 
        program under paragraph (1), together with an explanation of 
        the basis for such determination, shall be submitted to the 
        congressional defense committees with the first Selected 
        Acquisition Report submitted under section 2432 of title 10, 
        United States Code, after such determination is made.
            (3) Delegation of authority.--The regulations shall provide 
        that the authority to make a determination under paragraph (1) 
        may not be delegated below the level of the Under Secretary of 
        Defense for Acquisition, Technology, and Logistics.
    (d) Repeal of Superseded Requirements.--Section 807 of the National 
Defense Authorization Act for Fiscal Year 1989 (10 U.S.C. 2304 note) is 
repealed.
    (e) Effective Date of Regulations.--
            (1) In general.--The modified regulations required under 
        this section shall apply to any contract entered into after the 
        date that is 120 days after the date of the enactment of this 
        Act.
            (2) System development and demonstration or operational 
        system development.--The modification required by subsection 
        (b)(2) in the regulations shall apply with respect to programs 
        that enter into system development and demonstration, or 
        operational system development, after the date that is 120 days 
        after the date of the enactment of this Act.

SEC. 808. AVAILABILITY OF FUNDS FOR PERFORMANCE-BASED LOGISTICS 
              CONTRACTS FOR WEAPON SYSTEMS LOGISTICS SUPPORT.

    (a) Availability of Operation and Maintenance Funds.--
            (1) In general.--Amounts available to the Department of 
        Defense for operation and maintenance--
                    (A) are available for performance-based logistics 
                contracts for weapon systems; and
                    (B) subject to paragraph (2), may be used in 
                accordance with the terms of such contracts to 
                implement engineering changes that result in a 
                reduction of the operation and maintenance costs to the 
                Government of such systems.
            (2) Limitation.--Funds may not be used for a performance-
        based logistics contract to implement engineering changes the 
        total cost of which is expected to exceed $20,000,000.
    (b) Notice to Congress on Entry Into Contracts.--
            (1) In general.--Not later than 30 days before entering 
        into a performance-based logistics contract under this section, 
        the Secretary of a military department shall submit to Congress 
        a notice of intent to enter into such contract.
            (2) Elements.--The notice on a performance-based logistics 
        contract under paragraph (1) shall include the following:
                    (A) A statement that the military department 
                concerned--
                            (i) has performed a business case analysis 
                        for such contract;
                            (ii) has determined, based on such 
                        analysis, that there is a reasonable 
                        expectation that such contract will result in 
                        an overall reduction of operation and 
                        maintenance costs with respect to a weapon 
                        system; and
                            (iii) has specific plans in place to--
                                    (I) update such analysis at 
                                appropriate decision points when 
                                sufficient cost and performance data 
                                have been collected to validate the 
                                assumptions used in developing such 
                                analysis; and
                                    (II) periodically review and 
                                validate the propriety and integrity of 
                                program performance measures, and 
                                verify the reliability of contractor 
                                cost and performance data, with respect 
                                to such contract.
                    (B) An estimate of the projected cost and savings 
                from such contract, together with an explanation of the 
                basis for such estimates.
    (c) Performance-Based Logistics Contract Defined.--In this section, 
the term ``performance-based logistics contract'' means a contract for 
the acquisition of logistics support (whether at the system, subsystem, 
or major assembly level) for a weapon system that combines logistics 
support in an integrated, affordable, performance package designed to 
optimize system readiness and meet performance goals for the weapon 
system through long-term support arrangements with clear lines of 
authority and responsibility for the provision of such support.
    (d) Report.--
            (1) In general.--Not later than March 1, 2012, the 
        Secretary of Defense shall submit to the congressional defense 
        committees a report on the status of all performance-bases 
        logistics contracts entered into pursuant to this section.
            (2) Elements.--The report under paragraph (1) shall 
        include, for each contract covered by such report, a comparison 
        of the projected cost and savings of such contract (as 
        estimated in the notice to Congress under subsection (b)(2)(B)) 
        with the actual cost and savings of such contract (as 
        determined in accordance with the plan for such contract under 
        subsection (b)(2)(A)(iii)).
    (e) Sunset.--
            (1) In general.--The authority to enter contracts under 
        this section shall terminate on September 30, 2012.
            (2) Effect on existing contracts.--The termination under 
        paragraph (1) of the authority to enter contracts under this 
        section shall not affect the use of funds for purposes 
        authorized by subsection (a) under contracts entered on or 
        before the date specified in that paragraph.

SEC. 809. QUALITY CONTROL IN PROCUREMENT OF SHIP CRITICAL SAFETY ITEMS 
              AND RELATED SERVICES.

    (a) 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 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);
                    (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''.

SEC. 810. 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. 811. 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 disciplined decision-making, emphasis 
on technological maturity, and appropriate trade-offs between system 
performance and schedule.
    (c) Inclusion of Systems in Pilot Program.--
            (1) In general.--The decision whether to include a major 
        weapon system in the pilot program shall be made by the 
        Milestone Decision Authority for the acquisition program for 
        the system.
            (2) Criteria.--A major weapon system may be included in the 
        pilot program 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, have been met, and no 
                waivers have been granted from such requirements;
                    (B) a preliminary design has been completed after 
                appropriate requirements analysis using systems 
                engineering, and the system, as so designed, will meet 
                battlefield needs identified by the relevant combatant 
                commanders;
                    (C) all critical technologies needed to meet system 
                requirements have been demonstrated in an 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;
                    (G) the service acquisition executive and the 
                program manager have agreed that the program manager 
                will continue in such position until the delivery of 
                the initial operational capability under the 
                acquisition program for the system;
                    (H) the service acquisition executive, the relevant 
                combatant commanders, and the program manager have 
                agreed that no additional requirements 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 no 
                more than 6 years after the date of the milestone B 
                approval for the system.
            (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 System in Pilot Program.--The number of 
major weapon systems included in the pilot program at any time may not 
exceed 12 major weapon systems.
    (e) 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.
            (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 report 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.
    (f) 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 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 10 percent baselines 
        for such acquisition program.
    (g) 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.
    (h) 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; and
                    (B) such other matters as the Secretary considers 
                appropriate.
    (i) 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. 812. GOVERNMENT PERFORMANCE OF CRITICAL ACQUISITION FUNCTIONS.

    (a) Government Performance of Functions.--
            (1) In general.--Section 2383 of title 10, United States 
        Code is amended--
                    (A) by redesignating subsection (b) as subsection 
                (c); and
                    (B) by inserting after subsection (a) the following 
                new subsection (b):
    ``(b) Government Performance of Critical Acquisition Functions.--
The head of an agency shall ensure that, at a minimum, for each major 
defense acquisition program and each major automated information system 
program, each of the following positions is performed by a properly 
qualified full-time Federal military or civilian employee:
            ``(1) Program manager.
            ``(2) Deputy program manager.
            ``(3) Chief engineer.
            ``(4) Systems engineer.
            ``(5) Cost estimator.''.
            (2) Definitional matters.--Subsection (c) of such section, 
        as redesignated by paragraph (1)(A) of this subsection, is 
        further amended by adding at the end the following new 
        paragraphs:
            ``(5) The term `major defense acquisition program' has the 
        meaning given such term in section 2430(a) of this title.
            ``(6) The term `major automated information system program' 
        has the meaning given such term in section 2445a(a) of this 
        title.''.
    (b) Effective Date and Phase-In.--
            (1) Effective date.--The amendments made by subsection (a) 
        shall take effect on the date that is one year after the date 
        of enactment of this Act.
            (2) Temporary waver.--During the two-year period beginning 
        on the effective date specified in paragraph (1), the head of 
        an agency may waive the requirement in subsection (b) of 
        section 2383 of title 10, United States Code, as amended by 
        subsection (a) of this section, with regard to a specific 
        function on a particular program upon a written determination 
        by the head of the agency that a properly qualified full-time 
        Federal military or civilian employee cannot reasonably be made 
        available to perform such function.

              Subtitle B--Defense Industrial Base Matters

SEC. 821. REMOVAL OF HAND AND MEASURING TOOLS FROM CERTAIN 
              REQUIREMENTS.

    (a) In General.--Subsection (b) of section 2533a of title 10, 
United States Code, is amended by striking paragraph (3).
    (b) Conforming Amendment.--Subsection (d) of such section is 
amended by striking ``(b)(1)(A), (b)(2), or (b)(3)'' each place it 
appears and inserting ``(b)(1)(A) or (b)(2)''.

SEC. 822. APPLICABILITY OF CERTAIN REQUIREMENTS REGARDING SPECIALTY 
              METALS.

    (a) Exemption for Certain Commercial Items.--Subsection (i) of 
section 2533a of title 10, United States Code, is amended--
            (1) by inserting ``, Dual-Use Items, and Electronic 
        Components'' after ``Commercial Items'';
            (2) by inserting ``(1)'' before ``this section'';
            (3) in paragraph (1), as so designated, by inserting 
        ``described in subsection (b)(1)'' after ``commercial items''; 
        and
            (4) by adding at the end the following new paragraphs:
    ``(2) This section is not applicable to--
            ``(A) a contract or subcontract for the procurement of a 
        commercial item containing specialty metals described in 
        subsections (b)(2) and (b)(3); or
            ``(B) specialty metals that are incorporated into an 
        electronic component, where the value of the specialty metal 
        used in the component is de minimis in relation to the value of 
        the electronic component.
    ``(3) For purposes of paragraph (2)(A), a commercial item does not 
include--
            ``(A) any item that contains noncommercial modifications 
        that cost or are expected to cost, in the aggregate, more than 
        5 percent of the total price of such item;
            ``(B) any item that would not be considered to be a 
        commercial item, but for sales to government entities or 
        inclusion in items that are sold to government entities;
            ``(C) forgings or castings for military unique end items;
            ``(D) fasteners other than commercial off-the-shelf items 
        (as defined in section 35(c) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 431(c)); or
            ``(E) specialty metals.''.
    (b) Exception for Certain Dual-Use Items To Facilitate Civil-
Military Integration.--Such section is further amended by adding at the 
end the following new subsection:
    ``(k) Exception for Certain Dual-Use Items To Facilitate Civil-
Military Integration.--Subsection (a) does not apply to the procurement 
of an item from a contractor or a first-tier subcontractor if the 
Secretary of Defense or the Secretary of a military department 
determines that--
            ``(1) the item is or will be produced using the same 
        production facilities, a common supply chain, and the same or 
        similar production processes that are used for the production 
        of similar items delivered to non-defense customers; and
            ``(2) the contractor or subcontractor has made a 
        contractual commitment to purchase a quality, grade, and amount 
        of domestically-melted specialty metals for use by the 
        purchaser during the period of contract performance in the 
        production of the item and other similar items delivered to 
        non-defense customers that is not less that the greater of--
                    ``(A) the amount of specialty metals that is 
                purchased by the contractor for use in the item 
                delivered to the Department of Defense; or
                    ``(B) 40 percent of the amount of specialty metals 
                purchased by the contractor or subcontractor for use 
                during such period in the production of the item and 
                similar items delivered to non-defense contractors.''.
    (c) De Minimis Standard for Specialty Metals.--Such section is 
further amended by adding at the end the following new subsection:
    ``(l) Minimum Threshold for Specialty Metals.--Notwithstanding the 
requirements of subsection (a), the Secretary of Defense or the 
Secretary of a military department may accept delivery of an item 
containing specialty metals that were not grown, reprocessed, reused, 
or produced in the United States if the total amount of noncompliant 
specialty metals in the item does not exceed 2 percent of the total 
amount of specialty metals in the item.''.
    (d) Effective Date.--
            (1) In general.--The amendments made by subsections (a) and 
        (c) shall take effect on the date of the enactment of this Act, 
        and shall apply with respect to items accepted for delivery on 
        or after that date.
            (2) Civil-military integration.--The amendment made by 
        subsection (b) shall take effect on the date of the enactment 
        of this Act, and shall apply to contracts entered into on or 
        after that date.

SEC. 823. WAIVER AUTHORITY FOR DOMESTIC SOURCE OR CONTENT REQUIREMENTS.

    (a) Authority.--Subchapter V of chapter 148 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 2539c. Waiver of domestic source or content requirements
    ``(a) Authority.--Except as provided in subsection (f), the 
Secretary of Defense may waive the application of any domestic source 
requirement or domestic content requirement referred to in subsection 
(b) and thereby authorize the procurement of items that are grown, 
reprocessed, reused, produced, or manufactured--
            ``(1) in a foreign country that has a Declaration of 
        Principles with the United States;
            ``(2) in a foreign country that has a Declaration of 
        Principles with the United States substantially from components 
        and materials grown, reprocessed, reused, produced, or 
        manufactured in the United States or any foreign country that 
        has a Declaration of Principles with the United States; or
            ``(3) in the United States substantially from components 
        and materials grown, reprocessed, reused, produced, or 
        manufactured in the United States or any foreign country that 
        has a Declaration of Principles with the United States.
    ``(b) Covered Requirements.--For purposes of this section:
            ``(1) A domestic source requirement is any requirement 
        under law that the Department of Defense satisfy its 
        requirements for an item by procuring an item that is grown, 
        reprocessed, reused, produced, or manufactured in the United 
        States or by a manufacturer that is a part of the national 
        technology and industrial base (as defined in section 2500(1) 
        of this title).
            ``(2) A domestic content requirement is any requirement 
        under law that the Department of Defense satisfy its 
        requirements for an item by procuring an item produced or 
        manufactured partly or wholly from components and materials 
        grown, reprocessed, reused, produced, or manufactured in the 
        United States.
    ``(c) Applicability.--The authority of the Secretary to waive the 
application of a domestic source or content requirements under 
subsection (a) applies to the procurement of items for which the 
Secretary of Defense determines that--
            ``(1) application of the requirement would impede the 
        reciprocal procurement of defense items under a Declaration of 
        Principles with the United States; and
            ``(2) such country does not discriminate against defense 
        items produced in the United States to a greater degree than 
        the United States discriminates against defense items produced 
        in that country.
    ``(d) Limitation on Delegation.--The authority of the Secretary to 
waive the application of domestic source or content requirements under 
subsection (a) may not be delegated to any officer or employee other 
than the Under Secretary of Defense for Acquisition, Technology, and 
Logistics.
    ``(e) Consultations.--The Secretary may grant a waiver of the 
application of a domestic source or content requirement under 
subsection (a) only after consultation with the United States Trade 
Representative, the Secretary of Commerce, and the Secretary of State.
    ``(f) Laws Not Waivable.--The Secretary of Defense may not exercise 
the authority under subsection (a) to waive any domestic source or 
content requirement contained in any of the following laws:
            ``(1) The Small Business Act (15 U.S.C. 631 et seq.).
            ``(2) The Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.).
            ``(3) Sections 7309 and 7310 of this title.
            ``(4) Section 2533a of this title.
    ``(g) Relationship to Other Waiver Authority.--The authority under 
subsection (a) to waive a domestic source requirement or domestic 
content requirement is in addition to any other authority to waive such 
requirement.
    ``(h) Clarification of Relationship With Buy American Act.--Nothing 
in this section shall be construed to alter in any way the 
applicability of the Buy American Act (41 U.S.C. 10a), or the authority 
of the Secretary of Defense to waive the requirements of such Act, with 
respect to the procurement of any item to which such Act would apply 
without regard to this section.
    ``(i) Construction With Respect to Later Enacted Laws.--This 
section may not be construed as being inapplicable to a domestic source 
requirement or domestic content requirement that is set forth in a law 
enacted after the enactment of this section solely on the basis of the 
later enactment.
    ``(j) Declaration of Principles.--(1) In this section, the term 
`Declaration of Principles' means a written understanding (including 
any Statement of Principles) between the Department of Defense and its 
counterpart in a foreign country signifying a cooperative relationship 
between the Department and its counterpart to standardize or make 
interoperable defense equipment used by the armed forces and the armed 
forces of the foreign country across a broad spectrum of defense 
activities, including--
            ``(A) harmonization of military requirements and 
        acquisition processes;
            ``(B) security of supply;
            ``(C) export procedures;
            ``(D) security of information;
            ``(E) ownership and corporate governance;
            ``(F) research and development;
            ``(G) flow of technical information; and
            ``(H) defense trade.
    ``(2) A Declaration of Principles is underpinned by a memorandum of 
understanding or other agreement providing for the reciprocal 
procurement of defense items between the United States and the foreign 
country concerned without unfair discrimination in accordance with 
section 2531 of this title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by inserting after the item relating to 
section 2539b the following new item:

``2539c. Waiver of domestic source or content requirements.''.

SEC. 824. REPEAL OF REQUIREMENT FOR IDENTIFICATION OF ESSENTIAL 
              MILITARY ITEMS AND MILITARY SYSTEM ESSENTIAL ITEM 
              BREAKOUT LIST.

    Section 813 of the National Defense Authorization Act for Fiscal 
Year 2004 (Public Law 108-136; 117 Stat. 1543) is repealed.

SEC. 825. CONSISTENCY WITH UNITED STATES OBLIGATIONS UNDER TRADE 
              AGREEMENTS.

    No provision of this Act or any amendment made by this Act shall 
apply to a procurement by or for the Department of Defense to the 
extent that the Secretary of Defense, in consultation with the 
Secretary of Commerce, the United States Trade Representative, and the 
Secretary of State, determines that it is inconsistent with United 
States obligations under a trade agreement.

                 Subtitle C--Defense Contractor Matters

SEC. 841. REQUIREMENTS FOR DEFENSE CONTRACTORS RELATING TO CERTAIN 
              FORMER DEPARTMENT OF DEFENSE OFFICIALS.

    (a) Requirements.--
            (1) In general.--Chapter 141 of title 10, United States 
        Code, is amended by adding at the end the following new 
        section:
``Sec. 2410p. Defense contractors: requirements concerning former 
              Department of Defense officials
    ``(a) In General.--Each contract for the procurement of goods or 
services in excess of $10,000,000, other than a contract for the 
procurement of commercial items, that is entered into by the Department 
of Defense shall include a provision under which the contractor agrees 
to submit to the Secretary of Defense, not later than April 1 of each 
year such contract is in effect, a written report setting forth the 
information required by subsection (b).
    ``(b) Report Information.--Except as provided in subsection (c), a 
report by a contractor under subsection (a) shall--
            ``(1) list the name of each person who--
                    ``(A) is a former officer or employee of the 
                Department of Defense or a former or retired member of 
                the armed forces who served--
                            ``(i) in an Executive Schedule position 
                        under subchapter II of chapter 53 of title 5;
                            ``(ii) in a position in the Senior 
                        Executive Service under subchapter VIII of 
                        chapter 53 of title 5;
                            ``(iii) in a general or flag officer 
                        position compensated at a rate of pay for grade 
                        0-7 or above under section 201 of title 37; or
                            ``(iv) as a program manager, deputy program 
                        manager, procuring contracting officer, 
                        administrative contracting officer, source 
                        selection authority, member of the source 
                        selection evaluation board, or chief of a 
                        financial or technical evaluation team for a 
                        contract with a value in excess of $10,000,000; 
                        and
                    ``(B) during the preceding calendar year was 
                provided compensation by the contractor, if such 
                compensation was first provided by the contractor not 
                more than two years after such officer, employee, or 
                member left service in the Department of Defense; and
            ``(2) in the case of each person listed under paragraph 
        (1)--
                    ``(A) identify the agency in which such person was 
                employed or served on active duty during the last two 
                years of such person's service with the Department of 
                Defense;
                    ``(B) state such person's job title and identify 
                each major defense system, if any, on which such person 
                performed any work with the Department of Defense 
                during the last two years of such person's service with 
                the Department; and
                    ``(C) state such person's current job title with 
                the contractor and identify each major defense system 
                on which such person has performed any work on behalf 
                of the contractor.
    ``(c) Duplicate Information Not Required.--An annual report 
submitted by a contractor pursuant to subsection (b) need not provide 
information with respect to any former officer or employee of the 
Department of Defense or former or retired member of the armed forces 
if such information has already been provided in a previous annual 
report filed by such contractor under this section.''.
            (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. Defense contractors: requirements concerning former Department 
                            of Defense officials.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of this Act, and shall apply 
with respect to contracts entered into on or after that date.

SEC. 842. LEAD SYSTEMS INTEGRATORS.

    (a) Limitations on Contractors Acting as Lead Systems 
Integrators.--
            (1) In general.--Chapter 141 of title 10, United States 
        Code, as amended by section 841(a)(1) of this Act, is further 
        amended by adding at the end the following new section:
``Sec. 2410q. Contracts: limitations on lead systems integrators
    ``(a) In General.--Except as provided in subsection (b), no 
contractor performing any inherently governmental functions, or 
functions closely associated with inherently governmental functions, 
relating to the acquisition, engineering, structuring, planning, 
integration, management, or control of a system of systems, regardless 
of whether or not such contractor is expressly designated as a so-
called `lead systems integrator', may have any financial interest in 
the development or construction of any individual system or element of 
such system of systems.
    ``(b) Exception.--A contractor described in subsection (a) may have 
a financial interest in the development or construction of an 
individual system or element of a system of systems if the Secretary of 
Defense certifies to the congressional defense committees that--
            ``(1) the contractor is the preferred best of industry 
        supplier of the system or element concerned; and
            ``(2) the contractor was selected to develop or construct 
        the system or element concerned only after a formal competition 
        for such system or element conducted by the Department of 
        Defense in which the contractor participated only as a 
        respondent to the request for proposal (RFP) under the 
        competition.
    ``(c) Construction.--Nothing in this section shall be construed to 
preclude a contractor 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.
    ``(d) Definitions.--In this section:
            ``(1) The term `best of industry', with respect to the 
        development or construction of a system or element by a 
        contractor, means that the contractor provides the Government 
        any of the following in the development or construction of the 
        system or element for the Government:
                    ``(A) Best overall value.
                    ``(B) Best technology.
                    ``(C) Best capability.
                    ``(D) Best availability.
            ``(2) The term `functions closely associated with 
        inherently governmental functions' has the meaning given such 
        term in section 2383(b)(3) of this title.
            ``(3) The term `inherently governmental functions' has the 
        meaning given such term in section 2383(b)(2) of this title.
            ``(4) The term `system of systems' means a set of 
        interdependent systems, including one or more major weapon 
        systems, that are related to provide a given capability and in 
        which the loss of any one would significantly degrade the 
        performance or capabilities of the set of systems as a 
        whole.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 141 of such title, as amended by section 
        841(a)(2) of this Act, is further amended by adding at the end 
        the following new item:

``2410q. Contracts: limitations on lead systems integrators.''.
            (3) Effective date.--The amendments made by subsection (a) 
        shall take effect on the date of the enactment of this Act, and 
        shall apply with respect to contracts entered into on or after 
        that date.
    (b) Update of Regulations on Lead Systems Integrators.--Not 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 
systems integrators set forth in section 805(b) of the National Defense 
Authorization for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 
3372).
    (c) Definition of Lead Systems Integrator.--
            (1) Definition required.--The Secretary of Defense shall 
        include in the report required by section 805 of the National 
        Defense Authorization for Fiscal Year 2006 a precise and 
        comprehensive definition of the term ``lead systems 
        integrator'', as that term is utilized in such section.
            (2) Matters to be addressed.--In defining the term ``lead 
        systems integrator'' under paragraph (1), the Secretary shall 
        take into account the following:
                    (A) The importance of lead systems integrators in 
                the production, fielding, and sustainment of complex 
                systems, including their role in addressing increases 
                in cost, the evolution of interoperability 
                requirements, and the maintenance and sustainment of 
                critical capabilities.
                    (B) The unique engineering and integration skills 
                of lead systems integrators.
                    (C) The management and organizational skills and 
                capabilities of lead systems integrators, including the 
                capacity of lead systems integrators to facilitate the 
                participation of small and disadvantaged businesses in 
                the production, fielding, and sustainment of complex 
                systems.
    (d) Contract Types and Fee Structures.--The Secretary of Defense 
shall include in the report required by section 805 of the National 
Defense Authorization for Fiscal Year 2006 a specification of various 
types of contracts and fee structures, including award and incentive 
fees, that are appropriate for use by lead systems integrators in the 
production, fielding, and sustainment of complex systems.

SEC. 843. LINKING OF AWARD AND INCENTIVE FEES TO ACQUISITION OUTCOMES.

    (a) Guidance on Linking of Award and Incentive Fees to Acquisition 
Outcomes.--Not later 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) 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;
            (3) 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'';
            (4) 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;
            (5) 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;
            (6) 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;
            (7) 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
            (8) 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 
        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. 844. PROHIBITION ON EXCESSIVE PASS-THROUGH CHARGES.

    (a) Regulations Required.--Not later than 120 days after the date 
of the enactment of this Act, the Secretary of Defense shall prescribe 
regulations prohibiting excessive pass-through charges on contracts or 
subcontracts (or task or delivery orders) that are entered into for or 
on behalf of the Department of Defense that are in excess of the 
simplified acquisition threshold, as specified in section 4(11) of the 
Office of Federal Procurement Policy Act (41 U.S.C. 403(11)).
    (b) Scope of Regulations.--The regulations prescribed under this 
section shall not apply to any firm, fixed-price contract or 
subcontract (or task or delivery order) that is--
            (1) awarded on the basis of adequate price competition; or
            (2) for the acquisition of a commercial item, as defined in 
        section 4(12) of the Office of Federal Procurement Policy Act 
        (41 U.S.C. 403(12)).
    (c) Definitions.--In this section:
            (1) The term ``excessive pass-through charge'' means a 
        charge by a covered contractor or subcontractor for overhead or 
        profit on work performed by a covered lower-tier contractor 
        (other than charges for the direct costs of managing lower-tier 
        contracts and overhead and profit based on such direct costs).
            (2) The term ``covered contractor'' means the following:
                    (A) A contractor that assigns work accounting for 
                more than 90 percent of the cost of contract 
                performance (not including overhead or profit) to 
                subcontractors.
                    (B) In the case of a contract providing for the 
                development or production of more than one weapon 
                system, a contractor that assigns work accounting for 
                more than 90 percent of the cost of contract 
                performance (not including overhead or profit) for any 
                particular weapon system under such contract to 
                subcontractors.
            (3) The term ``covered lower-tier contractor'' means the 
        following:
                    (A) With respect to a covered contractor described 
                by paragraph (2)(A) in a contract, any lower-tier 
                subcontractor under such contract.
                    (B) With respect to a covered contractor described 
                by paragraph (2)(B) in a contract, any lower-tier 
                subcontractor on a weapon system under such contract 
                for which such covered contractor has assigned work 
                accounting for more than 90 percent of the cost of 
                contract performance (not including overhead or 
                profit).
    (d) Effective Date.--The regulations prescribed under this section 
shall apply to contracts awarded for or on behalf of the Department of 
Defense on or after the date that is 120 days after the date of the 
enactment of this Act.

SEC. 845. REPORT ON DEPARTMENT OF DEFENSE CONTRACTING WITH CONTRACTORS 
              OR SUBCONTRACTORS EMPLOYING MEMBERS OF THE SELECTIVE 
              RESERVE.

    (a) Study Required.--The Secretary of Defense shall conduct a study 
on contracting with the Department of Defense by actual and potential 
contractors and subcontractors of the Department who employ members of 
the Selected Reserve of the reserve components of the Armed Forces.
    (b) Elements.--The study required by subsection (a) shall address 
the following:
            (1) The extent to which actual and potential contractors 
        and subcontractors of the Department, including small 
        businesses, employ members of the Selective Reserve.
            (2) The extent to which actual and potential contractors 
        and subcontractors of the Department have been or are likely to 
        be disadvantaged in the performance of contracts with the 
        Department, or in competition for new contracts with the 
        Department, when employees who are such members are mobilized 
        as part of a United States military operation overseas.
            (3) Any actions that, in the view of the Secretary, should 
        be taken to address any such disadvantage, including--
                    (A) the extension of additional time for the 
                performance of contracts to contractors and 
                subcontractors of Department who employ members of the 
                Selected Reserve who are mobilized as part of a United 
                States military operation overseas; and
                    (B) the provision of assistance in forming 
                contracting relationships with other entities to 
                ameliorate the temporary loss of qualified personnel.
    (c) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary shall submit to Congress a report 
on the study required by this section. The report shall set forth the 
findings and recommendations of the Secretary as a result of the study.
    (d) Repeal of Superseded Authority.--Section 819 of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 
Stat. 3385; 10 U.S.C. 2305 note) is repealed.

                  Subtitle D--Program Manager Matters

SEC. 861. PROGRAM MANAGER EMPOWERMENT AND ACCOUNTABILITY.

    (a) Strategy.--The Secretary of Defense shall develop a 
comprehensive strategy for enhancing the role of Department of Defense 
program managers in developing and carrying out defense acquisition 
programs.
    (b) Matters To Be Addressed.--The strategy required by this section 
shall address, at a minimum--
            (1) enhanced training and educational opportunities for 
        program managers;
            (2) increased emphasis on the mentoring of current and 
        future program managers by experienced senior executives and 
        program managers within the Department;
            (3) improved career paths and career opportunities for 
        program managers;
            (4) additional incentives for the recruitment and retention 
        of highly qualified individuals to serve as program managers;
            (5) improved resources and support (including systems 
        engineering expertise, cost estimating expertise, and software 
        development expertise) for program managers;
            (6) improved means of collecting and disseminating best 
        practices and lessons learned to enhance program management 
        across the Department;
            (7) common templates and tools to support improved data 
        gathering and analysis for program management and oversight 
        purposes;
            (8) increased accountability of program managers for the 
        results of defense acquisition programs; and
            (9) enhanced monetary and nonmonetary awards for successful 
        accomplishment of program objectives by program managers.
    (c) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall submit to the congressional 
defense committees a report on the strategy developed pursuant to this 
section.

SEC. 862. TENURE AND ACCOUNTABILITY OF PROGRAM MANAGERS FOR PROGRAM 
              DEVELOPMENT PERIODS.

    (a) Revised Guidance Required.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense shall 
revise Department of Defense guidance for defense acquisition programs 
to address the tenure and accountability of program managers for the 
program development period of defense acquisition programs.
    (b) Program Development Period.--For the purpose of this section, 
the term ``program development period'' refers to the period before a 
decision on Milestone B approval (or Key Decision Point B approval in 
the case of a space program).
    (c) Responsibilities.--The revised guidance required by subsection 
(a) shall provide that the program manager for the program development 
period of a defense acquisition program is responsible for--
            (1) bringing to maturity the technologies and manufacturing 
        processes that will be needed to carry out such program;
            (2) ensuring continuing focus during program development on 
        meeting stated mission requirements and other requirements of 
        the Department of Defense;
            (3) making trade-offs between program cost, schedule and 
        performance for the life-cycle of such program;
            (4) developing a business case for such program; and
            (5) ensuring that appropriate information is available to 
        the milestone decision authority to make a decision on 
        Milestone B approval (or Key Decision Point B approval in the 
        case of a space program), including information necessary to 
        make the certification required by section 2366a of title 10, 
        United States Code.
    (d) Qualifications, Resources, and Tenure.--The Secretary shall 
ensure that each program manager for the program development period of 
a defense acquisition program--
            (1) has the appropriate management, engineering, technical, 
        and financial expertise needed to meet the responsibilities 
        assigned pursuant to subsection (c);
            (2) is provided the resources and support (including 
        systems engineering expertise, cost estimating expertise, and 
        software development expertise) needed to meet such 
        responsibilities; and
            (3) is assigned to the program manager position for such 
        program until such time as such program is ready for a decision 
        on Milestone B approval (or Key Decision Point B approval in 
        the case of a space program).

SEC. 863. TENURE AND ACCOUNTABILITY OF PROGRAM MANAGERS FOR PROGRAM 
              EXECUTION PERIODS.

    (a) Revised Guidance Required.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense shall 
revise Department of Defense guidance for defense acquisition programs 
to address the tenure and accountability of program managers for the 
program execution period of defense acquisition programs.
    (b) Program Execution Period.--For the purpose of this section, the 
term ``program execution period'' refers to the period after Milestone 
B approval (or Key Decision Point B approval in the case of a space 
program).
    (c) Responsibilities.--The revised guidance required by subsection 
(a) shall--
            (1) require the program manager for the program execution 
        period of a defense acquisition program to enter into a 
        performance agreement with the milestone decision authority for 
        such program within six months of assignment, that--
                    (A) establishes expected parameters for the cost, 
                schedule, and performance of such program consistent 
                with the business case for such program;
                    (B) provides the commitment of the milestone 
                decision authority to provide the level funding and 
                resources required to meet such parameters; and
                    (C) provides the assurance of the program manager 
                that such parameters are achievable and that such 
                program manager will be accountable for meeting such 
                parameters; and
            (2) provide the program manager with the authority to--
                    (A) veto the addition of new program requirements 
                that would be inconsistent with the parameters 
                established in the performance agreement entered 
                pursuant to paragraph (1);
                    (B) make trade-offs between cost, schedule and 
                performance, provided that such trade-offs are 
                consistent with the parameters established in the 
                performance agreement entered pursuant to paragraph 
                (1);
                    (C) redirect funding within such program, to the 
                extent necessary to achieve the parameters established 
                in the performance agreement entered pursuant to 
                paragraph (1);
                    (D) develop such interim goals and milestones as 
                may be required to achieve the parameters established 
                in the performance agreement entered pursuant to 
                paragraph (1); and
                    (E) use program funds to recruit and hire such 
                technical experts as may be required to carry out such 
                program, if necessary expertise is not otherwise 
                provided by the Department of Defense.
    (d) Qualifications, Resources, and Tenure.--The Secretary shall 
ensure that each program manager for the program execution period of a 
defense acquisition program--
            (1) has the appropriate management, engineering, technical, 
        and financial expertise needed to meet the responsibilities 
        assigned pursuant to subsection (c);
            (2) is provided the resources and support (including 
        systems engineering expertise, cost estimating expertise, and 
        software development expertise) needed to meet such 
        responsibilities; and
            (3) is assigned to the program manager position for such 
        program at the time of Milestone B approval (or Key Decision 
        Point B approval in the case of a space program) and continues 
        in such position until the delivery of the first production 
        units of such program.
    (e) Limited Waiver Authority.--The Secretary may waive the 
requirement in subsection (d)(3) that a program manager for the program 
execution period of a defense acquisition program serve in that 
position until the delivery of the first production units of such 
program upon submitting to the congressional defense committees a 
written determination that--
            (1) such program is so complex, and the delivery of the 
        first production units will take so long, that it would not be 
        feasible for a single individual to serve as program manager 
        for the entire period covered by such subsection; and
            (2) the complexity of such program, and length of time that 
        will be required to deliver the first production units, are not 
        the result of a failure to meet the certification requirements 
        established in section 2366a of title 10, United States Code.

SEC. 864. DEPARTMENT OF DEFENSE PLAN FOR CONTINGENCY PROGRAM 
              MANAGEMENT.

    (a) Requirement.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Defense shall develop a plan 
for the Department of Defense for contingency program management during 
combat operations and post-conflict operations.
    (b) Matters To Be Covered.--The plan of the Department of Defense 
for contingency program management required by subsection (a) shall, at 
a minimum, provide for--
            (1) the designation of a senior executive service official 
        on the Joint Staff with the responsibility for administering 
        the plan;
            (2) the assignment of a senior commissioned officer of the 
        Armed Forces with appropriate program management experience and 
        qualifications to act as head of contingency program management 
        during combat operations, post-conflict operations, and 
        contingency operations, who shall report directly to the 
        commander of the combatant command in whose area of 
        responsibility the operations occur;
            (3) a preplanned organizational structure for contingency 
        program management that is designed to ensure that the 
        Department is prepared to conduct contingency program 
        management during combat operations and post-conflict 
        operations, including advance planning for--
                    (A) unified, agile program management processes and 
                procedures for an interagency and coalition 
                environment;
                    (B) standardized joint contract mechanisms with 
                clearly defined metrics;
                    (C) continuity of program and project management;
                    (D) identification of a deployable cadre of 
                experts, trained in processes required under paragraph 
                (4);
                    (E) required information technology resources and 
                reliable, interoperable connections and communications; 
                and
                    (F) coordination of program management operations 
                with the activities of commanders in the field;
            (4) a requirement for the development of a training program 
        for contingency program management, including--
                    (A) comprehension of program management that 
                focuses on cost, scope, schedule, success metrices, 
                project oversight, and resource balancing;
                    (B) contracting options and rules;
                    (C) procedures for the Department on funding, 
                accountability and component and partner 
                responsibilities; and
                    (D) effective communications and rules for 
                coordination with commanders in the field; and
            (5) a requirement for identification of hiring and 
        appointment authorities for rapid deployment of personnel under 
        this section to ensure the availability of key personnel for 
        sufficient lengths of time to provide for continuing of program 
        and project management.
    (c) Utilization in Plan for Interagency Procedures for 
Stabilization and Reconstruction Operations.--To the extent 
practicable, the elements of the plan of the Department of Defense for 
contingency program management required by subsection (a) shall be 
taken into account in the development of the plan for the establishment 
of interagency operating procedures for stabilization and 
reconstruction operations required by section 1222.

SEC. 865. COMPTROLLER GENERAL REPORT.

    Not later than February 1, 2007, the Comptroller General of the 
United States shall submit to the congressional defense committees a 
report on the actions taken by the Secretary of Defense to comply with 
the requirements of this subtitle. The report shall include a 
description of such actions and an assessment by the Comptroller 
General of the effectiveness of such actions in meeting such 
requirements.

                       Subtitle E--Other Matters

SEC. 871. CLARIFICATION OF AUTHORITY TO CARRY OUT CERTAIN PROTOTYPE 
              PROJECTS.

    Section 845(a) of the National Defense Authorization Act for Fiscal 
Year 1994 (10 U.S.C. 2371 note) is amended--
            (1) in paragraph (2)(A), by inserting ``or, for a defense 
        agency, the director of the defense agency'' after ``(41 U.S.C. 
        414(c))''; and
            (2) in paragraph (3), by inserting ``or director of a 
        defense agency'' after ``executive''.

SEC. 872. 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. 873. ONE-YEAR EXTENSION OF INAPPLICABILITY OF CERTAIN LAWS TO 
              CONTRACTING WITH EMPLOYERS OF PERSONS WITH DISABILITIES.

    Subsections (a)(2)(A) and (b)(2)(A) of the Ronald W. Reagan 
National Defense Authorization Act for Fiscal Year 2005 (Public Law 
108-375; 118 Stat. 2021), as amended by section 848(a) of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 
Stat. 3395), are each further amended by striking ``2006'' and 
inserting ``2007''.

SEC. 874. PILOT PROGRAM ON EXPANDED USE OF MENTOR-PROTEGE AUTHORITY.

    (a) Pilot Program Authorized.--The Secretary of Defense may carry 
out a pilot program to assess the feasibility and advisability of 
treating small business concerns described in subsection (b) as 
disadvantaged small business concerns under the Mentor-Protege Program 
under section 831 of the National Defense Authorization Act for Fiscal 
Year 1991 (10 U.S.C. 2302 note).
    (b) Covered Small Business Concerns.--The small business concerns 
described in this subsection are small business concerns that--
            (1) are participants in the Small Business Innovative 
        Research Program of the Department of Defense established 
        pursuant to section 9 of the Small Business Act (15 U.S.C. 
        638); and
            (2) as determined by the Secretary, are developing 
        technologies that will assist in detecting or defeating 
        Improvised Explosive Devices (IEDs) or other critical force 
        protection measures.
    (c) Treatment as Disadvantaged Small Business Concerns.--
            (1) In general.--For purposes of the pilot program, the 
        Secretary may treat a small business concern described in 
        subsection (b) as a disadvantaged small business concern under 
        the Mentor-Protege Program.
            (2) Mentor-protege agreement.--Any eligible business 
        concerned approved for participation in the Mentor-Protege 
        Program as a mentor firm may enter into a mentor-protege 
        agreement and provide assistance described in section 831 of 
        the National Defense Authorization Act for Fiscal Year 1991 
        with respect to a small business concern treated under 
        paragraph (1) as a disadvantaged small business concern under 
        the Mentor-Protege Program.
    (d) Funding.--
            (1) In general.--Notwithstanding the limitation in section 
        9(f)(2) of the Small Business Act (15 U.S.C. 638(f)(2)), funds 
        for any reimbursement provided to a mentor firm under section 
        831(g) of the National Defense Authorization Act for Fiscal 
        Year 1991 with respect to a small business concern described in 
        subsection (b) under the pilot program shall be derived from 
        funds available for the Small Business Innovative Research 
        Program of the Department of Defense.
            (2) Limitation.--The amount available under paragraph (1) 
        for reimbursement described in that paragraph may not exceed 
        the amount equal to one percent of the funds available for the 
        Small Business Innovative Research Program.
    (e) Sunset.--
            (1) Agreements.--No mentor-protege agreement may be entered 
        into under the pilot program after September 30, 2010.
            (2) Other matters.--No reimbursement may be paid, and no 
        credit toward the attainment of a subcontracting goal may be 
        granted, under the pilot program after September 30, 2013.
    (f) Report.--Not later than March 1, 2009, the Secretary shall 
submit to the appropriate committees of Congress a report on the pilot 
program. The report shall--
            (1) describe the extent to which mentor-protege agreements 
        have been entered under the pilot program; and
            (2) describe and assess the technological benefits arising 
        under such agreements.
    (g) Definitions.--In this section:
            (1) The term ``appropriate committees of Congress'' means--
                    (A) the Committees on Armed Services, 
                Appropriations, and Small Business and Entrepreneurship 
                of the Senate; and
                    (B) the Committees on Armed Services and 
                Appropriations of the House of Representatives.
            (2) The term ``small business concern'' has the meaning 
        given that term in section 831(m)(1) of the National Defense 
        Authorization Act for Fiscal Year 1991.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Duties and Functions of Department of Defense Officers and 
                             Organizations

SEC. 901. UNITED STATES MILITARY CANCER INSTITUTE.

    (a) Establishment.--Chapter 104 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2117. United States Military Cancer Institute
    ``(a) Establishment.--The Secretary of Defense shall establish in 
the University the United States Military Cancer Institute. The 
Institute shall be established pursuant to regulations prescribed by 
the Secretary.
    ``(b) Purposes.--The purposes of the Institute are as follows:
            ``(1) To establish and maintain a clearinghouse of data on 
        the incidence and prevalence of cancer among members and former 
        members of the armed forces.
            ``(2) To conduct research that contributes to the detection 
        or treatment of cancer among the members and former members of 
        the armed forces.
    ``(c) Head of Institute.--The Director of the United States 
Military Cancer Institute is the head of the Institute. The Director 
shall report to the President of the University regarding matters 
relating to the Institute.
    ``(d) Elements.--(1) The Institute is composed of clinical and 
basic scientists in the Department of Defense who have an expertise in 
research, patient care, and education relating to oncology and who meet 
applicable criteria for affiliation with the Institute.
    ``(2) The components of the Institute include military treatment 
and research facilities that meet applicable criteria and are 
designated as affiliates of the Institute.
    ``(e) Research.--(1) The Director of the United States Military 
Cancer Institute shall carry out research studies on the following:
            ``(A) The epidemiological features of cancer, including 
        assessments of the carcinogenic effect of genetic and 
        environmental factors, and of disparities in health, inherent 
        or common among populations of various ethnic origins within 
        the members of the armed forces.
            ``(B) The prevention and early detection of cancer among 
        members and former members of the armed forces.
            ``(C) Basic, translational, and clinical investigation 
        matters relating to the matters described in subparagraphs (A) 
        and (B).
    ``(2) The research studies under paragraph (1) shall include 
complementary research on oncologic nursing.
    ``(f) Collaborative Research.--The Director of the United States 
Military Cancer Institute shall carry out the research studies under 
subsection (e) in collaboration with other cancer research 
organizations and entities selected by the Institute for purposes of 
the research studies.
    ``(g) Annual Report.--(1) Not later than November 1 each year, the 
Director of the United States Military Cancer Institute shall submit to 
the President of the University a report on the current status of the 
research studies being carried out by the Institute under subsection 
(e).
    ``(2) Not later than 60 days after receiving a report under 
paragraph (1), the President of the University shall transmit such 
report to the Secretary of Defense and to Congress.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 104 of such title is amended by adding at the end the following 
new item:

``2117. United States Military Cancer Institute.''.

SEC. 902. SENIOR ACQUISITION EXECUTIVE FOR SPECIAL OPERATIONS WITHIN 
              STAFF OF THE ASSISTANT SECRETARY OF DEFENSE FOR SPECIAL 
              OPERATIONS AND LOW INTENSITY CONFLICT.

    (a) Inclusion Within Staff.--The staff of the Assistant Secretary 
of Defense for Special Operations and Low Intensity Conflict under 
section 138(b)(4) of title 10, United States Code, shall include a 
senior acquisition executive for special operations.
    (b) Duties.--The senior acquisition executive within the staff of 
the Assistant Secretary of Defense for Special Operations and Low 
Intensity Conflict under subsection (a) shall conduct policy and 
management oversight of the acquisition activities of the Special 
Operations Command under section 167 of title 10, United States Code, 
and shall have such other duties as the Assistant Secretary shall 
designate.

SEC. 903. 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) 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.''.
    (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.''.

SEC. 904. MILITARY DEPUTIES TO THE ASSISTANT SECRETARIES OF THE 
              MILITARY DEPARTMENTS FOR ACQUISITION, LOGISTICS, AND 
              TECHNOLOGY MATTERS.

    (a) Department of the Army.--
            (1) Establishment of position.--There is hereby established 
        within the Department of the Army the position of Military 
        Deputy to the Assistant Secretary of the Army for Acquisition, 
        Logistics, and Technology.
            (2) Lieutenant general.--The individual serving in the 
        position of Military Deputy to the Assistant Secretary of the 
        Army for Acquisition, Logistics, and Technology shall be a 
        lieutenant general of the Army on active duty.
            (3) Exclusion from grade and number limitations.--An 
        officer serving in the position of Military Deputy to the 
        Assistant Secretary of the Army for Acquisition, Logistics, and 
        Technology shall not be counted against the numbers and 
        percentages of officers of the Army of the grade of lieutenant 
        general.
    (b) Department of the Navy.--
            (1) Establishment of position.--There is hereby established 
        within the Department of the Navy the position of Military 
        Deputy to the Assistant Secretary of the Navy for Research, 
        Development, and Acquisition.
            (2) Vice admiral.--The individual serving in the position 
        of Military Deputy to the Assistant Secretary of the Navy for 
        Research, Development, and Acquisition shall be a vice admiral 
        on active duty.
            (3) Exclusion from grade and number limitations.--An 
        officer serving in the position of Military Deputy to the 
        Assistant Secretary of the Navy for Research, Development, and 
        Acquisition shall not be counted against the numbers and 
        percentages of officers of the grade of vice admiral.
    (c) Department of the Air Force.--
            (1) Establishment of position.--There is hereby established 
        within the Department of the Air Force the position of Military 
        Deputy to the Assistant Secretary of the Air Force for 
        Acquisition.
            (2) Lieutenant general.--The individual serving in the 
        position of Military Deputy to the Assistant Secretary of the 
        Air Force for Acquisition shall be a lieutenant general of the 
        Air Force on active duty.
            (3) Exclusion from grade and number limitations.--An 
        officer serving in the position of Military Deputy to the 
        Assistant Secretary of the Air Force for Acquisition shall not 
        be counted against the numbers and percentages of officers of 
        the Air Force of the grade of lieutenant general.

                      Subtitle B--Space Activities

SEC. 911. ESTABLISHMENT OF OPERATIONALLY RESPONSIVE SPACE CAPABILITIES.

    (a) Findings.--Congress makes the following findings:
            (1) Access to and use of space is critical for preserving 
        peace and protecting the national security, commercial, and 
        civil interests of the United States.
            (2) Key priorities for the national security space 
        activities of the United States include improving the capacity 
        to support military operations worldwide and responding to 
        strategic military threats.
            (3) To the maximum extent possible, space capabilities 
        should be integrated into the strategy, doctrine, operations, 
        and contingency plans of the Armed Forces of the United States.
            (4) The commanders of the combatant commands should have 
        access to responsive space capabilities that provide prompt, 
        focused support in their theater of operations, which 
        capabilities should compliment other national and Department of 
        Defense space assets while providing direct and flexible 
        support to the warfighter on the battlefield.
            (5) The United States Space Transportation Policy of 
        January 6, 2005, calls for the demonstration, before 2010, of 
        an initial capability for operationally responsive access to 
        and use of space to support the national security requirements 
        of the United States.
    (b) Policy.--It is the policy of the United States--
            (1) to demonstrate, acquire, and deploy an effective 
        capability for operationally responsive space to support the 
        warfighter from space; and
            (2) that the capability described in paragraph (1) shall 
        consist of--
                    (A) responsive satellite payloads;
                    (B) inexpensive space launch vehicles and range 
                procedures that facilitate the timely launch of 
                satellites;
                    (C) common technical standards for satellite 
                busses; and
                    (D) a configuration of operations and command and 
                control capabilities that permit the warfighter to 
                exploit responsive space assets for combat operations.
    (c) Operationally Responsive Space Hybrid Program Office.--
            (1) In general.--The Secretary of Defense shall establish 
        within the Department of Defense an office to be known as the 
        Operationally Responsive Space Hybrid Program Office (in this 
        subsection referred to as the ``Office'').
            (2) Elements.--The Office shall consist of elements of the 
        Department of Defense selected by the Secretary from among the 
        science and technology, acquisition, and operations elements of 
        the Department having the capacity to contribute to the 
        development of capabilities for operationally responsive space. 
        Such elements shall be selected so as to achieve a balanced 
        representation of the military departments in the Office in 
        order to ensure proper acknowledgment of joint considerations 
        in the activities of the Office.
            (3) Organization of elements.--The elements of the Office 
        under paragraph (2) shall be organized by the Secretary into 
        divisions as follows:
                    (A) A science and technology division that shall 
                pursue innovative approaches to the development of 
                capabilities for operationally responsive space through 
                basic and applied research focused on payloads, bus, 
                and launch equipment.
                    (B) An acquisition division that shall undertake 
                the acquisition of systems necessary to procure, 
                integrate, sustain, and launch assets for operationally 
                responsive space.
                    (C) An operations division that shall--
                            (i) sustain and maintain assets for 
                        operationally responsive space prior to launch;
                            (ii) integrate and launch such assets; and
                            (iii) operate such assets in orbit.
                    (D) A combatant command support division that shall 
                serve as the primary intermediary between the military 
                departments and the combatant commands on operationally 
                responsive space, including the integration of assets 
                for operationally responsive space into--
                            (i) the operations plans of the combatant 
                        commands;
                            (ii) the training and tactics procedures of 
                        the military departments; and
                            (iii) military exercises, demonstrations, 
                        and war games.
            (3) Accountability.--The head of the Office shall report to 
        the Executive Agent for Space of the Department of Defense 
        regarding the activities of Office under this subsection.
            (4) Acquisition authority.--The acquisition activities of 
        the Office shall be subject to the following:
                    (A) The Executive Agent for Space of the Department 
                of Defense shall be the senior acquisition executive of 
                the Office.
                    (B) The Joint Capabilities Integration and 
                Development System process shall not apply to 
                acquisitions by the Office.
                    (C) The commander of the United States Strategic 
                Command, or a designate of the commander, shall--
                            (i) validate all system requirements for 
                        systems to be acquired by the Office; and
                            (ii) participate in the approval of any 
                        acquisition program initiated by the Office.
                    (D) The unit procurement cost of a launch vehicle 
                procured by the Office may not exceed $20,000,000.
                    (E) The unit procurement cost of an integrated 
                satellite procured by the Office may not exceed 
                $40,000,000.
            (5) Adjustment of unit procurement cost limits.--The 
        Executive Agent for Space shall adjust the amounts specified in 
        subparagraphs (D) and (E) of paragraph (4) to take into account 
        the effects of inflation. Such adjustment shall take place once 
        every five years.
    (d) Plan for Operationally Responsive Space.--
            (1) Plan required.--Not later than 180 days after the date 
        of the enactment of this Act, the Secretary of Defense shall 
        submit to the congressional defense committees a report setting 
        forth a plan for the acquisition by the Department of Defense 
        of capabilities for operationally responsive space to support 
        the warfighter.
            (2) Elements.--The plan required by paragraph (1) shall 
        include the following:
                    (A) An identification of the roles and missions of 
                each military department, Defense Agency, and other 
                component or element of the Department of Defense for 
                the fulfillment of the mission of the Department with 
                respect to operationally responsive space.
                    (B) An identification of the capabilities required 
                by the Department to fulfill such mission.
                    (C) A description of the chain of command and 
                reporting structure of the Operationally Responsive 
                Space Hybrid Program Office under subsection (c).
                    (D) The security classification level required for 
                the Office in order to ensure that the Office carries 
                out its responsibilities under subsection (c) in a 
                proper and efficient manner.
                    (E) A description of the acquisition policies and 
                procedures applicable to the Office, including a 
                description of any legislative or administrative action 
                necessary to provide the Office additional acquisition 
                authority to carry out its responsibilities.
                    (F) A schedule for the implementation of the plan.
                    (G) The funding and personnel required to implement 
                the plan over the course of the current future-years 
                defense program under section 221 of title 10, United 
                States Code.
    (e) Definitions.--In this section:
            (1) The term ``operationally responsive space'' means the 
        development and launch of space assets upon demand in a low-
        cost manner.
            (2) The term ``procurement unit cost'' has the meaning 
        given that term in section 2432(a) of title 10, United States 
        Code.

SEC. 912. EXTENSION OF AUTHORITY FOR PILOT PROGRAM ON PROVISION OF 
              SPACE SURVEILLANCE NETWORK SERVICES TO NON-UNITED STATES 
              GOVERNMENT ENTITIES.

    Section 2274(i) of title 10, United States Code, is amended by 
striking ``shall be conducted during the three-year period beginning on 
a date specified by the Secretary of Defense, which date shall be not 
later than 180 days after the date of the enactment of this section'' 
and inserting ``may be conducted through September 30, 2009''.

SEC. 913. INDEPENDENT REVIEW AND ASSESSMENT OF DEPARTMENT OF DEFENSE 
              ORGANIZATION AND MANAGEMENT FOR NATIONAL SECURITY IN 
              SPACE.

    (a) Independent Review and Assessment Required.--
            (1) In general.--The Secretary of Defense shall provide for 
        an independent review and assessment of the organization and 
        management of the Department of Defense for national security 
        in space.
            (2) Conduct of review.--The review and assessment shall be 
        conducted by an appropriate entity outside the Department of 
        Defense selected by the Secretary for purposes of this section.
            (3) Elements.--The review and assessment shall address the 
        following:
                    (A) The requirements of the Department of Defense 
                for national security space capabilities, as identified 
                by the Department, and the efforts of the Department to 
                fulfill such requirements.
                    (B) The future space missions of the Department, 
                and the plans of the Department to meet the future 
                space missions.
                    (C) The actions that could be taken by the 
                Department to modify the organization and management of 
                the Department over the near-term, medium-term, and 
                long-term in order to strengthen United States national 
                security in space, and the ability of the Department to 
                implement its requirements and carry out the future 
                space missions, including the following:
                            (i) Actions to exploit existing and planned 
                        military space assets to provide support for 
                        United States military operations.
                            (ii) Actions to improve or enhance current 
                        interagency coordination processes regarding 
                        the operation of national security space 
                        assets, including improvements or enhancements 
                        in interoperability and communications.
                            (iii) Actions to improve or enhance the 
                        relationship between the intelligence aspects 
                        of national security space (so-called ``black 
                        space'') and the non-intelligence aspects of 
                        national security space (so-called ``white 
                        space'').
                            (iv) Actions to improve or enhance the 
                        manner in which military space issues are 
                        addressed by professional military education 
                        institutions.
            (4) Liaison.--The Secretary shall designate at least one 
        senior civilian employee of the Department of Defense, and at 
        least one general or flag officer of an Armed Force, to serve 
        as liaison between the Department, the Armed Forces, and the 
        entity conducting the review and assessment.
    (b) Report.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, the entity conducting the review and 
        assessment shall submit to the Secretary and the congressional 
        defense committees a report on the review and assessment.
            (2) Elements.--The report shall include--
                    (A) the results of the review and assessment; and
                    (B) recommendations on the best means by which the 
                Department may improve its organization and management 
                for national security in space.

                       Subtitle C--Other Matters

SEC. 921. DEPARTMENT OF DEFENSE POLICY ON UNMANNED SYSTEMS.

    (a) Policy Required.--The Secretary of Defense shall, in 
consultation with the Chairman of the Joint Chiefs of Staff, develop a 
policy applicable throughout the Department of Defense on research, 
development, test, and evaluation, procurement, and operation of 
unmanned systems.
    (b) Elements.--The policy required by subsection (a) shall include 
the following:
            (1) Mission requirements (including mission requirements 
        for the military departments and joint mission requirements) 
        for unmanned systems to replace manned systems in the 
        performance of routine or dangerous missions.
            (2) A strategy and schedules for the replacement of manned 
        systems with unmanned systems in the performance of such 
        missions.
            (3) Preference for joint unmanned systems in acquisition 
        programs for new systems, including a requirement under any 
        such program for the development of a manned system for a 
        certification that an unmanned system is incapable of meeting 
        program requirements.
            (4) Joint development and procurement of unmanned systems 
        and components.
            (5) A strategy for the divestment of the military 
        department unmanned systems unique to a particular department 
        with a preference for joint unmanned systems.
            (6) Programs to address technical, operational, and 
        production challenges, and gaps in capabilities, with respect 
        to unmanned systems.
            (7) An organizational structure for effective management, 
        coordination, and budgeting for the development and procurement 
        of unmanned systems, including an assessment of the feasibility 
        and advisability of designating a single department or other 
        element of the Department of Defense to act as executive agent 
        for the Department on unmanned systems.
            (8) Requirements for the integration of unmanned and manned 
        missions.
            (9) Requirements in order to satisfy the goals for unmanned 
        air and ground systems established in section 220 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-38).
    (c) Report.--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 setting forth the policy required by 
subsection (a).

SEC. 922. EXECUTIVE SCHEDULE LEVEL IV FOR DEPUTY UNDER SECRETARY OF 
              DEFENSE FOR LOGISTICS AND MATERIEL READINESS.

    (a) Executive Schedule Level IV.--Section 5315 of title 5, United 
States Code, is amended by inserting after the item relating to the 
Deputy Under Secretary of Defense for Personnel and Readiness the 
following new item:
            ``Deputy Under Secretary of Defense for Logistics and 
        Materiel Readiness.''.
    (b) Conforming Amendment.--Section 5314 of title 5, United States 
Code, is amended by striking the item relating to the Deputy Under 
Secretary of Defense for Logistics and Materiel Readiness.
    (c) 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 individuals appointed as Deputy Under Secretary of Defense 
for Logistics and Materiel Readiness on or after that date.

SEC. 923. 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)(4) of title 38, United States Code, is amended by 
striking ``September 30, 2007'' and inserting ``September 30, 2010''.

SEC. 924. SENSE OF SENATE ON NOMINATION OF INDIVIDUAL TO SERVE AS 
              DIRECTOR OF OPERATIONAL TEST AND EVALUATION ON A 
              PERMANENT BASIS.

    (a) Findings.--The Senate makes the following findings:
            (1) Congress established the position of Director of 
        Operational Test and Evaluation of the Department of Defense in 
        1983 to ensure the operational effectiveness and suitability of 
        weapon systems in combat.
            (2) The Director of Operational Test and Evaluation serves 
        as the principal adviser to the Secretary of Defense on 
        operational test and evaluation and is vital to ensuring the 
        operational effectiveness of weapon systems in combat.
            (3) The position of Director of Operational Test and 
        Evaluation has been held on an acting basis since February 15, 
        2005.
    (b) Sense of Senate.--It is the sense of the Senate that the 
President should submit to the Senate the nomination of an individual 
for the position of Director of Operational Test and Evaluation as soon 
as practicable.

SEC. 925. INCLUSION OF HOMELAND DEFENSE AND CIVIL SUPPORT MISSIONS OF 
              THE NATIONAL GUARD AND RESERVES IN THE QUADRENNIAL 
              DEFENSE REVIEW.

    Section 118(d) of title 10, United States Code, is amended--
            (1) by redesignating paragraph (15) as paragraph (16); and
            (2) by inserting after paragraph (14) the following new 
        paragraph (15):
            ``(15) The homeland defense mission and civil support 
        missions of the active and reserve components of the armed 
        forces, including the organization and capabilities required 
        for the active and reserve components to discharge each such 
        mission.''.

SEC. 926. REFORMS TO THE DEFENSE TRAVEL SYSTEM TO A FEE-FOR-USE-OF-
              SERVICE SYSTEM.

    No later than one year after the enactment of this Act, the 
Secretary of Defense may not obligate or expend any funds related to 
the Defense Travel System except those funds obtained through a one-
time, fixed price service fee per Department of Defense customer 
utilizing the system with an additional fixed fee for each transaction.

SEC. 927. REPORT ON INCORPORATION OF ELEMENTS OF THE RESERVE COMPONENTS 
              INTO THE SPECIAL FORCES.

    (a) Findings.--The Senate makes the following findings:
            (1) The Quadrennial Defense Review recommends an increase 
        in the size of the Special Operations Command and the Special 
        Forces as a fundamental part of our efforts to fight the war on 
        terror.
            (2) The Special Forces play a crucial role in the war on 
        terror, and the expansion of their force structure as outlined 
        in the Quadrennial Defense Review should be fully funded.
            (3) Expansion of the Special Forces should be consistent 
        with the Total Force Policy.
            (4) The Secretary of Defense should assess whether the 
        establishment of additional reserve component Special Forces 
        units and associated units is consistent with the Total Force 
        Policy.
            (5) Training areas in high-altitude and mountainous areas 
        represent a national asset for preparing Special Forces units 
        and personnel for duty in similar regions of Central Asia.
    (b) Report on Incorporation of Elements Into Special Forces.--Not 
later than six months after the date of the enactment of this Act, the 
Secretary of Defense shall submit to the congressional defense 
committees a report to address whether units and capabilities should be 
incorporated into the reserve components of the Armed Forces as part of 
the expansion of the Special Forces as outlined in the Quadrennial 
Defense Review, and consistent with the Total Force Policy.
    (c) Report on Special Forces Training.--Not later than six months 
after the date of the enactment of this Act, the Secretary of Defense 
shall submit to the congressional defense committees a report on the 
effort taken by the United States Special Operations Command to provide 
Special Forces training in high-altitude and mountainous areas within 
the United States.

               Subtitle D--National Guard Bureau Matters

SEC. 931. SHORT TITLE.

    This title may be cited as the ``National Defense Enhancement and 
National Guard Empowerment Act of 2006''.

SEC. 932. EXPANDED AUTHORITY OF CHIEF OF THE NATIONAL GUARD BUREAU AND 
              EXPANDED FUNCTIONS OF THE NATIONAL GUARD BUREAU.

    (a) Expanded Authority.--
            (1) In general.--Subsection (a) of section 10501 of title 
        10, United States Code, is amended by striking ``joint bureau 
        of the Department of the Army and the Department of the Air 
        Force'' and inserting ``joint activity of the Department of 
        Defense''.
            (2) Purpose.--Subsection (b) of such section is amended by 
        striking ``between'' and all that follows and inserting 
        ``between--
            ``(1)(A) the Secretary of Defense, the Joint Chiefs of 
        Staff, and the commanders of the combatant commands for the 
        United States, and (B) the Department of the Army and the 
        Department of the Air Force; and
            ``(2) the several States.''.
    (b) Enhancements of Position of Chief of the National Guard 
Bureau.--
            (1) Advisory function on national guard matters.--
        Subsection (c) of section 10502 of title 10, United States 
        Code, is amended by inserting ``to the Secretary of Defense, to 
        the Chairman of the Joint Chiefs of Staff,'' after ``principal 
        advisor''.
            (2) Grade.--Subsection (e) of such section, as redesignated 
        by paragraph (2)(A)(i) of this subsection, is further amended 
        by striking ``lieutenant general'' and inserting ``general''.
            (3) Annual report to congress on validated requirements.--
        Section 10504 of such title is amended by adding at the end the 
        following new subsection:
    ``(c) Annual Report on Validated Requirements.--Not later than 
December 31 each year, the Chief of the National Guard Bureau shall 
submit to Congress a report on the requirements validated under section 
10503a(b)(1) of this title during the preceding fiscal year.''.
    (c) Enhancement of Functions of National Guard Bureau.--
            (1) Development of charter.--Section 10503 of title 10, 
        United States Code, is amended--
                    (A) in the matter preceding paragraph (1), by 
                striking ``The Secretary of the Army and the Secretary 
                of the Air Force shall jointly develop'' and inserting 
                ``The Secretary of Defense, in consultation with the 
                Secretary of the Army and the Secretary of the Air 
                Force, shall develop''; and
                    (B) in paragraph (12), by striking ``the 
                Secretaries'' and inserting ``the Secretary of 
                Defense''.
            (2) Additional general functions.--Such section is further 
        amended--
                    (A) by redesignating paragraph (12), as amended by 
                paragraph (1)(B) of this subsection, as paragraph (13); 
                and
                    (B) by inserting after paragraph (11) the following 
                new paragraph (12):
            ``(12) Facilitating and coordinating with other Federal 
        agencies, and with the several States, the use of National 
        Guard personnel and resources for and in contingency 
        operations, military operations other than war, natural 
        disasters, support of civil authorities, and other 
        circumstances.''.
            (3) Military assistance for civil authorities.--Chapter 
        1011 of such title is further amended by inserting after 
        section 10503 the following new section:
``Sec. 10503a. Functions of National Guard Bureau: military assistance 
              to civil authorities
    ``(a) Identification of Additional Necessary Assistance.--The Chief 
of the National Guard Bureau shall--
            ``(1) identify gaps between Federal and State capabilities 
        to prepare for and respond to emergencies; and
            ``(2) make recommendations to the Secretary of Defense on 
        programs and activities of the National Guard for military 
        assistance to civil authorities to address such gaps.
    ``(b) Scope of Responsibilities.--In meeting the requirements of 
subsection (a), the Chief of the National Guard Bureau shall, in 
coordination with the Adjutant Generals of the States, have 
responsibilities as follows:
            ``(1) To validate the requirements of the several States 
        and Territories with respect to military assistance to civil 
        authorities.
            ``(2) To develop doctrine and training requirements 
        relating to the provision of military assistance to civil 
        authorities.
            ``(3) To administer amounts provided the National Guard for 
        the provision of military assistance to civil authorities.
            ``(4) To carry out any other responsibility relating to the 
        provision of military assistance to civil authorities as the 
        Secretary of Defense shall specify.
    ``(c) Assistance.--The Chairman of the Joint Chiefs of Staff shall 
assist the Chief of the National Guard Bureau in carrying out 
activities under this section.
    ``(d) Consultation.--The Chief of the National Guard Bureau shall 
carry out activities under this section in consultation with the 
Secretary of the Army and the Secretary of the Air Force.''.
            (4) Limitation on increase in personnel of national guard 
        bureau.--The Secretary of Defense shall, to the extent 
        practicable, ensure that no additional personnel are assigned 
        to the National Guard Bureau in order to address administrative 
        or other requirements arising out of the amendments made by 
        this subsection.
    (d) Conforming and Clerical Amendments.--
            (1) Conforming amendment.--The heading of section 10503 of 
        such title is amended to read as follows:
``Sec. 10503. Functions of National Guard Bureau: charter''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 1011 of such title is amended by striking 
        the item relating to section 10503 and inserting the following 
        new items:

``10503. Functions of National Guard Bureau: charter.
``10503a. Functions of National Guard Bureau: military assistance to 
                            civil authorities.''.

SEC. 933. REQUIREMENT THAT POSITION OF DEPUTY COMMANDER OF THE UNITED 
              STATES NORTHERN COMMAND BE FILLED BY A QUALIFIED NATIONAL 
              GUARD OFFICER.

    (a) In General.--The position of Deputy Commander of the United 
States Northern Command shall be filled by a qualified officer of the 
National Guard who is eligible for promotion to the grade of lieutenant 
general.
    (b) Purpose.--The purpose of the requirement in subsection (a) is 
to ensure that information received from the National Guard Bureau 
regarding the operation of the National Guard of the several States is 
integrated into the plans and operations of the United States Northern 
Command.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--
            (1) Authority.--Upon determination by the Secretary of 
        Defense that such action is necessary in the national interest, 
        the Secretary may transfer amounts of authorizations made 
        available to the Department of Defense in this division for 
        fiscal year 2007 between any such authorizations for that 
        fiscal year (or any subdivisions thereof). Amounts of 
        authorizations so transferred shall be merged with and be 
        available for the same purposes as the authorization to which 
        transferred.
            (2) Aggregate limitation.--The total amount of 
        authorizations that the Secretary may transfer under the 
        authority of this section may not exceed $4,000,000,000.
    (b) Limitations.--The authority provided by this section to 
transfer authorizations--
            (1) may only be used to provide authority for items that 
        have a higher priority than the items from which authority is 
        transferred; and
            (2) may not be used to provide authority for an item that 
        has been denied authorization by Congress.
    (c) Effect on Authorization Amounts.--A transfer made from one 
account to another under the authority of this section shall be deemed 
to increase the amount authorized for the account to which the amount 
is transferred by an amount equal to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly notify 
Congress of each transfer made under subsection (a).

SEC. 1002. AUTHORIZATION OF ADDITIONAL EMERGENCY SUPPLEMENTAL 
              APPROPRIATIONS FOR FISCAL YEAR 2006.

    (a) Iraq, Afghanistan, and the Global War on Terror.--Amounts 
authorized to be appropriated to the Department of Defense for fiscal 
year 2006 in the National Defense Authorization Act for Fiscal Year 
2006 (Public Law 109-163) are hereby adjusted, with respect to any such 
authorized amount, by the amount by which appropriations pursuant to 
such authorization are increased by a supplemental appropriation, or 
decreased by a rescission, or both, or are increased by a transfer of 
funds, pursuant to title I of the Emergency Supplemental Appropriations 
Act for Defense, the Global War on Terror, and Hurricane Recovery, 2006 
(Public Law 109-234).
    (b) Hurricane Disaster Relief and Recovery.--Amounts authorized to 
be appropriated to the Department of Defense for fiscal year 2006 in 
the National Defense Authorization Act for Fiscal Year 2006 are hereby 
adjusted, with respect to any such authorized amount, by the amount by 
which appropriations pursuant to such authorization are increased by a 
supplemental appropriation, or decreased by a rescission, or both, or 
are increased by a transfer of funds, pursuant to title II of the 
Emergency Supplemental Appropriations Act for Defense, the Global War 
on Terror, and Hurricane Recovery, 2006.
    (c) Border Security.--Amounts authorized to be appropriated to the 
Department of Defense for fiscal year 2006 in the National Defense 
Authorization Act for Fiscal Year 2006 are hereby adjusted, with 
respect to any such authorized amount, by the amount by which 
appropriations pursuant to such authorization are increased by a 
supplemental appropriation, or decreased by a rescission, or both, or 
are increased by a transfer of funds, pursuant to title V of the 
Emergency Supplemental Appropriations Act for Defense, the Global War 
on Terror, and Hurricane Recovery, 2006.

SEC. 1003. REDUCTION IN CERTAIN AUTHORIZATIONS DUE TO SAVINGS RELATING 
              TO LOWER INFLATION.

    (a) Reduction.--The aggregate amount authorized to be appropriated 
by titles I, II, and III is the amount equal to the sum of all the 
amounts authorized to be appropriated by such titles reduced by 
$951,469,000.
    (b) Source of Savings.--Reductions required in order to comply with 
subsection (a) shall be derived from savings resulting from lower-than-
expected inflation as a result of a review of the inflation assumptions 
used in the preparation of the budget of the President for fiscal year 
2007, as submitted to Congress pursuant to section 1005 of title 31, 
United States Code.
    (c) Allocation of Reduction.--The Secretary of Defense shall 
allocate the reduction required by subsection (a) among the amounts 
authorized to be appropriated for accounts in titles I, II, and III to 
reflect the extent to which net savings from lower-than-expected 
inflation are allocable to amounts authorized to be appropriated to 
such accounts.

SEC. 1004. INCREASE IN FISCAL YEAR 2006 GENERAL TRANSFER AUTHORITY.

    Section 1001(a)(2) of the National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3418) is amended by 
striking ``$3,500,000,000'' and inserting ``$5,000,000,000''.

SEC. 1005. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
              FISCAL YEAR 2007.

    (a) Fiscal Year 2007 Limitation.--The total amount contributed by 
the Secretary of Defense in fiscal year 2007 for the common-funded 
budgets of NATO may be any amount up to, but not in excess of, the 
amount specified in subsection (b) (rather than the maximum amount that 
would otherwise be applicable to those contributions under the fiscal 
year 1998 baseline limitation).
    (b) Total Amount.--The amount of the limitation applicable under 
subsection (a) is the sum of the following:
            (1) The amounts of unexpended balances, as of the end of 
        fiscal year 2006, of funds appropriated for fiscal years before 
        fiscal year 2007 for payments for those budgets.
            (2) The amount specified in subsection (c)(1).
            (3) The amount specified in subsection (c)(2).
            (4) The total amount of the contributions authorized to be 
        made under section 2501.
    (c) Authorized Amounts.--Amounts authorized to be appropriated by 
titles II and III of this Act are available for contributions for the 
common-funded budgets of NATO as follows:
            (1) Of the amount provided in section 201(1), $797,000 for 
        the Civil Budget.
            (2) Of the amount provided in section 301(1), $310,277,000 
        for the Military Budget.
    (d) Definitions.--For purposes of this section:
            (1) Common-funded budgets of nato.--The term ``common-
        funded budgets of NATO'' means the Military Budget, the 
        Security Investment Program, and the Civil Budget of the North 
        Atlantic Treaty Organization (and any successor or additional 
        account or program of NATO).
            (2) Fiscal year 1998 baseline limitation.--The term 
        ``fiscal year 1998 baseline limitation'' means the maximum 
        annual amount of Department of Defense contributions for 
        common-funded budgets of NATO that is set forth as the annual 
        limitation in section 3(2)(C)(ii) of the resolution of the 
        Senate giving the advice and consent of the Senate to the 
        ratification of the Protocols to the North Atlantic Treaty of 
        1949 on the Accession of Poland, Hungary, and the Czech 
        Republic (as defined in section 4(7) of that resolution), 
        approved by the Senate on April 30, 1998.

SEC. 1006. MODIFICATION OF DATE OF SUBMITTAL OF OMB/CBO REPORT ON 
              SCORING OF OUTLAYS.

    Section 226(a) of title 10, United States Code, is amended by 
striking ``January 15 of each year'' and inserting ``April 1 of each 
year''.

SEC. 1007. PROHIBITION ON PARKING OF FUNDS.

    (a) Prohibition.--
            (1) In general.--Chapter 165 of title 10, United States 
        Code, is amended by inserting after section 2773a the following 
        new section:
``Sec. 2773b. Parking of funds: prohibition; penalties
    ``(a) Prohibition.--An officer or employee of the Department of 
Defense may not direct the designation of funds for a particular 
purpose in the budget of the President, as submitted to Congress 
pursuant to section 1105 of title 31, or the supporting documents of 
the Department of Defense component of such budget, with the knowledge 
or intent that such funds, if made available to the Department, will 
not be used for the purpose for which they are designated.
    ``(b) Penalties.--The direction of the designation of funds in 
violation of the prohibition in subsection (a) shall be treated for 
purposes of chapter 13 of title 31 as a violation of section 
1341(a)(1)(A) of title 31.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 165 of such title is amended by inserting 
        after the item relating to section 2773a the following new 
        item:

``2773b. Parking of funds: prohibition; penalties.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by subsection (a) 
        shall take effect on the date that is 31 days after the date of 
        the enactment of this Act.
            (2) Modification of certain policies and regulations.--Not 
        later than 30 days after the date of the enactment of this Act, 
        the Secretary of Defense shall modify the policies and 
        regulations of the Department of Defense regarding the 
        preparation and submittal to Congress of budget materials for 
        the Department of Defense to take into account the provisions 
        of section 2773b of title 10, United States Code (as added by 
        subsection (a)).

SEC. 1008. INCORPORATION OF CLASSIFIED ANNEX.

    (a) Status of Classified Annex.--The Classified Annex prepared by 
the Committee on Armed Services of the Senate to accompany S. 2766 of 
the 109th Congress and transmitted to the President is hereby 
incorporated into this Act.
    (b) Construction With Other Provisions of Act.--The amounts 
specified in the Classified Annex are not in addition to amounts 
authorized to be appropriated by other provisions of this Act.
    (c) Limitation on Use of Funds.--Funds appropriated pursuant to an 
authorization contained in this Act that are made available for a 
program, project, or activity referred to in the Classified Annex may 
only be expended for such program, project, or activity in accordance 
with such terms, conditions, limitations, restrictions, and 
requirements as are set out for such program, project, or activity in 
the Classified Annex.
    (d) Distribution of Classified Annex.--The President shall provide 
for appropriate distribution of the Classified Annex, or of appropriate 
portions of the annex, within the executive branch of the Government.

SEC. 1009. REPORTS TO CONGRESS AND NOTICE TO PUBLIC ON EARMARKS IN 
              FUNDS AVAILABLE TO THE DEPARTMENT OF DEFENSE.

    (a) Annual Report and Notice Required.--The Secretary of Defense 
shall submit to Congress, and post on the Internet website of the 
Department of Defense available to the public, each year information as 
follows:
            (1) A description of each earmark of funds made available 
        to the Department of Defense for the previous fiscal year, 
        including the location (by city, State, country, and 
        congressional district if relevant) in which the earmarked 
        funds are to be utilized, the purpose of such earmark (if 
        known), and the recipient of such earmark.
            (2) The total cost of administering each such earmark 
        including the amount of such earmark, staff time, 
        administrative expenses, and other costs.
            (3) The total cost of administering all such earmarks.
            (4) An assessment of the utility of each such earmark in 
        meeting the goals of the Department, set forth using a rating 
        system as follows:
                    (A) A for an earmark that directly advances the 
                primary goals of the Department or an agency, element, 
                or component of the Department.
                    (B) B for an earmark that advances many of the 
                primary goals of the Department or an agency, element, 
                or component of the Department.
                    (C) C for an earmark that may advance some of the 
                primary goals of the Department or an agency, element, 
                or component of the Department.
                    (D) D for an earmark that cannot be demonstrated as 
                being cost-effective in advancing the primary goals of 
                the Department or any agency, element, or component of 
                the Department.
                    (E) F for an earmark that distracts from or 
                otherwise impedes that capacity of the Department to 
                meet the primary goals of the Department.
    (b) Earmark Defined.--In this section, the term ``earmark'' means a 
provision of law, or a directive contained within a joint explanatory 
statement or report accompanying a conference report or bill (as 
applicable), that specifies the identity of an entity, program, 
project, or service, including a defense system, to receive assistance 
not requested by the President and the amount of the assistance to be 
so received.

                       Subtitle B--Naval Vessels

SEC. 1011. REPEAL OF REQUIREMENT FOR 12 OPERATIONAL AIRCRAFT CARRIERS 
              WITHIN THE NAVY.

    Section 5062 of title 10, United States Code, is amended--
            (1) by striking subsection (b); and
            (2) by redesignating subsections (c) and (d) as subsections 
        (b) and (c), respectively.

SEC. 1012. APPROVAL OF TRANSFER OF NAVAL VESSELS TO FOREIGN NATIONS BY 
              VESSEL CLASS.

    Section 7307(a) of title 10, United States Code, is amended by 
inserting ``or vessel of that class'' after ``that vessel''.

SEC. 1013. NAMING OF CVN-78 AIRCRAFT CARRIER AS THE U.S.S. GERALD FORD.

    (a) Findings.--Congress makes the following findings:
            (1) Gerald R. Ford has served his country with honor and 
        distinction for the past 64 years, and continues to serve.
            (2) Gerald R. Ford joined the United States Naval Reserve 
        in 1942 and served valiantly at sea on the U.S.S. Monterey 
        (CVL-26) during World War II, taking part in major operations 
        in the Pacific, including at Makin Island, Kwajalein, Truk, 
        Saipan, and the Philippine Sea.
            (3) The U.S.S. Monterey earned 10 battle stars, awarded for 
        participation in battle, while Gerald R. Ford served on the 
        vessel.
            (4) Gerald R. Ford was first elected to the House of 
        Representatives in 1948.
            (5) In the course of 25 years of service in the House of 
        Representatives, Gerald R. Ford distinguished himself by his 
        exemplary record for character, decency, and trustworthiness.
            (6) Throughout his service in Congress, Gerald R. Ford was 
        an ardent proponent of strong national defense and 
        international leadership by the United States.
            (7) From 1965 to 1973, Gerald R. Ford served as minority 
        leader of the House of Representatives, raising the standard 
        for bipartisanship in his tireless fight for freedom, hope, and 
        justice.
            (8) In 1973, Gerald R. Ford was appointed by President 
        Nixon to the office of Vice President of the United States with 
        the overwhelming support of Congress.
            (9) From 1974 to 1976, Gerald R. Ford served as the 38th 
        President of the United States, taking office during one of the 
        most challenging periods in the history of the United States 
        and restoring the faith of the people of the United States in 
        the office of the President through his steady leadership, 
        courage, and ultimate integrity.
            (10) President Gerald R. Ford helped restore the prestige 
        of the United States in the world community by working to 
        achieve peace in the Middle East, preserve detente with the 
        Soviet Union, and set new limits on the spread of nuclear 
        weapons.
            (11) President Gerald R. Ford served as Commander in Chief 
        of the Armed Forces of the United States with great dignity, 
        supporting a strong Navy and a global military presence for the 
        United State and honoring the men and women of the Armed Forces 
        of the United States.
            (12) Since leaving the office of President, Gerald R. Ford 
        has been an international ambassador of American goodwill, a 
        noted scholar and lecturer, a strong supporter of human rights, 
        and a promoter of higher education.
            (13) Gerald R. Ford was awarded the Medal of Freedom and 
        the Congressional Gold Medal in 1999 in recognition of his 
        contribution to the Nation.
            (14) As President, Gerald R. Ford bore the weight of a 
        constitutional crisis and guided the Nation on a path of 
        healing and restored hope, earning forever the enduring respect 
        and gratitude of the Nation.
    (b) Naming of CVN-78 Aircraft Carrier.--CVN-78, a nuclear powered 
aircraft carrier of the Navy, shall be named the U.S.S. Gerald Ford.

SEC. 1014. AUTHORITY TO DONATE SS ARTHUR M. HUDDELL TO THE GOVERNMENT 
              OF GREECE.

    (a) Findings.--Congress makes the following findings:
            (1) It is in the economic and environmental interests of 
        the United States to promote the disposal of vessels in the 
        National Defense Reserve Fleet that are of insufficient value 
        to warrant further preservation.
            (2) The Maritime Administration of the Department of 
        Transportation has been authorized to make such disposals, 
        including the sale and recycling of such vessels and the 
        donation of such vessels to any State, commonwealth, or 
        possession of the United States, and to nonprofit 
        organizations.
            (3) The government of Greece has expressed an interest in 
        obtaining and using the ex-Liberty ship, SS ARTHUR M. HUDDELL, 
        for purposes of a museum exhibit.
            (4) It is in the interest of the United States to authorize 
        the Maritime Administration to donate SS ARTHUR M. HUDDELL to 
        Greece.
    (b) Donation of SS ARTHUR M. HUDDELL to Government of Greece.--
Notwithstanding Section 510(j) of the Merchant Marine Act, 1936 (46 
App. U.S.C. 1158), the Secretary of Transportation is authorized to 
transfer SS ARTHUR M. HUDDELL, by gift, to the Government of Greece, in 
accordance with terms and conditions determined by the Secretary.
    (c) Additional Equipment.--The Secretary may convey additional 
equipment from other obsolete vessels of the National Defense Reserve 
Fleet to assist the Government of Greece under this section for 
purposes of the museum exhibit referred to in subsection (a)(3).

                    Subtitle C--Counterdrug Matters

SEC. 1021. EXTENSION OF AVAILABILITY OF FUNDS FOR UNIFIED COUNTERDRUG 
              AND COUNTERTERRORISM CAMPAIGN IN COLOMBIA.

    Section 1021 of the Ronald W. Reagan National Defense Authorization 
Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2042) is 
amended--
            (1) in subsection (a)(1), by striking ``2005 and 2006'' and 
        inserting ``2005 through 2008''; and
            (2) in subsection (c), by striking ``2005 and 2006'' and 
        inserting ``2005 through 2008''.

SEC. 1022. EXTENSION OF AUTHORITY OF DEPARTMENT OF DEFENSE TO PROVIDE 
              ADDITIONAL SUPPORT FOR COUNTERDRUG ACTIVITIES OF OTHER 
              GOVERNMENTAL AGENCIES.

    Section 1004(a) of the National Defense Authorization Act for 
Fiscal Year 1991 (10 U.S.C. 374 note) is amended by striking ``through 
2006'' and inserting ``through 2011''.

SEC. 1023. EXTENSION AND EXPANSION OF CERTAIN AUTHORITIES TO PROVIDE 
              ADDITIONAL SUPPORT FOR COUNTERDRUG ACTIVITIES.

    (a) Concurrence of Secretary of State in Provision of Support.--
Paragraph (1) of subsection (a) of section 1033 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 
1881), as amended by section 1021 of the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108-136: 117 Stat. 1593), is 
further amended by striking ``shall consult with'' and inserting 
``shall seek the concurrence of''.
    (b) Extension of Authority.--Paragraph (2) of such subsection is 
amended by striking ``September 30, 2006'' and inserting ``September 
30, 2008''.
    (c) Additional Governments Eligible To Receive Support.--Subsection 
(b) of such section 1033, as so amended, is further amended by adding 
at the end the following new paragraphs:
            ``(10) The Government of Azerbaijan.
            ``(11) The Government of Kazakhstan.
            ``(12) The Government of Kyrgyzstan.
            ``(13) The Government of Armenia.
            ``(14) The Government of Niger.
            ``(15) The Government of Mauritania.
            ``(16) The Government of Mali.
            ``(17) The Government of Chad.
            ``(18) The Government of Indonesia.
            ``(19) The Government of Philippines.
            ``(20) The Government of Thailand.
            ``(21) The Government of Malaysia.
            ``(22) The Government of Guatemala.
            ``(23) The Government of Belize.
            ``(24) The Government of Panama.''.
    (d) Types of Support.--Subsection (c)(2) of such section 1033, as 
so amended, is further amended by inserting ``, vehicles, and, subject 
to section 484(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2291c(a)), aircraft, and detection, interception, monitoring, and 
testing equipment'' after ``patrol boats''.
    (e) Maximum Annual Amount of Support.--Subsection (e)(2) of such 
section 1033, as so amended, is further amended--
            (1) by striking ``or $40,000,000'' and inserting 
        ``$40,000,000''; and
            (2) by inserting before the period at the end the 
        following: ``, or $80,000,000 during any of the fiscal years 
        2007 through 2008''.
    (f) Annual Report on Support Provided to Additional Governments.--
Such section 1033 is further amended by adding at the end the following 
new subsection:
    ``(i) Annual Report on Support Provided to Certain Governments.--
Not later than November 30 each year through 2008, the Secretary of 
Defense shall submit to the congressional defense committees and the 
Committee on Foreign Relations of the Senate and the Committee on 
International Relations of the House of Representatives a comprehensive 
report on the support provided under this section during the preceding 
fiscal year to each government referred to in paragraphs (1) through 
(24) of subsection (b).''.

SEC. 1024. OPERATION BAHAMAS, TURKS & CAICOS.

    (a) Findings.--Congress makes the following findings:
            (1) In 1982 the United States Government created Operation 
        Bahamas, Turks & Caicos (OPBAT) to counter the smuggling of 
        cocaine into the United States.
            (2) According to the Drug Enforcement Agency, an estimated 
        80 percent of the cocaine entering the United States in the 
        1980s came through the Bahamas, whereas, according to the 
        Office of National Drug Control Policy, only an estimated 10 
        percent comes through the Bahamas today.
            (3) According to the Drug Enforcement Agency, more than 
        80,000 kilograms of cocaine and nearly 700,000 pounds of 
        marijuana have been seized in Operation Bahamas, Turks & Caicos 
        since 1986, with a combined street value of approximately two 
        trillion dollars.
            (4) The Army has provided military airlift to law 
        enforcement officials under Operation Bahamas, Turks & Caicos 
        to create an effective, reliable, and immediate response 
        capability for drug interdiction. This support is largely 
        responsible for the decline in cocaine shipments to the United 
        States through the Bahamas.
            (5) The Bahamas is an island nation composed of 
        approximately 700 islands and keys, which makes aviation assets 
        the best and most efficient method of transporting law 
        enforcement agents and interdicting smugglers.
            (6) It is in the interests of the United States to maintain 
        the results of the successful Operation Bahamas, Turks & Caicos 
        program and prevent drug smugglers from rebuilding their 
        operations through the Bahamas.
    (b) Report on United States Government Support for OPBAT.--
            (1) Report on decision to withdraw.--Not later than 30 days 
        before implementing a decision to withdraw Department of 
        Defense helicopters from Operation Bahamas, Turks & Caicos, the 
        Secretary of Defense shall submit to the Congress a report 
        outlining the plan for the coordination of the Operation 
        Bahamas, Turks & Caicos mission, at the same level of 
        effectiveness, using other United States Government assets.
            (2) Consultation.--The Secretary of Defense shall consult 
        with the Secretary of State, the Attorney General, and the 
        Secretary of Homeland Security, and with other appropriate 
        officials of the United States Government, in preparing the 
        report under paragraph (1).
            (3) Elements.--The report under paragraph (1) on the 
        withdrawal of equipment referred to in that paragraph shall 
        include the following:
                    (A) An explanation of the military justification 
                for the withdrawal of the equipment.
                    (B) An assessment of the availability of other 
                options (including other Government helicopters) to 
                provide the capability being provided by the equipment 
                to be withdrawn.
                    (C) An explanation of how each option specified 
                under subparagraph (B) will provide the capability 
                currently provided by the equipment to be withdrawn.
                    (D) An assessment of the potential use of unmanned 
                aerial vehicles in Operation Bahamas, Turks & Caicos, 
                including the capabilities of such vehicles and any 
                advantages or disadvantages associated with the use of 
                such vehicles in that operation, and a recommendation 
                on whether or not to deploy such vehicles in that 
                operation.

          Subtitle D--Defense Intelligence and Related Matters

SEC. 1031. TWO-YEAR EXTENSION OF AUTHORITY TO ENGAGE IN COMMERCIAL 
              ACTIVITIES AS SECURITY FOR INTELLIGENCE COLLECTION 
              ACTIVITIES.

    Section 431(a) of title 10, United States Code, is amended by 
striking ``December 31, 2006'' and inserting ``December 31, 2008''.

SEC. 1032. ANNUAL REPORT ON INTELLIGENCE OVERSIGHT ACTIVITIES OF THE 
              DEPARTMENT OF DEFENSE.

    (a) Annual Report Required.--Not later than March 1, 2007, and 
annually thereafter, the Secretary of Defense shall submit to the 
congressional defense committees and the congressional intelligence 
committees a report on the intelligence oversight activities of the 
Department of Defense during the previous calendar year.
    (b) Elements.--Each report under subsection (a) shall include, for 
the calendar year covered by such report, the following:
            (1) A description of any questionable intelligence activity 
        that came to the attention of any General Counsel or Inspector 
        General within the Department of Defense, or the Under 
        Secretary of Defense for Intelligence, and a description of the 
        actions taken by such official with respect to such activity.
            (2) A description of the results of intelligence oversight 
        inspections undertaken by each of the following:
                    (A) The Office of the Secretary of Defense.
                    (B) Each military department.
                    (C) Each combat support agency.
                    (D) Each field operating agency.
            (3) A description of any changes made in--
                    (A) any program for the intelligence oversight 
                activities of the Department of Defense, including any 
                training program; or
                    (B) any published directive or policy memoranda on 
                the intelligence or intelligence-related activities 
                of--
                            (i) any military department;
                            (ii) any combat support agency; or
                            (iii) any field operating agency.
    (c) Definitions.--In this section:
            (1) The term ``combat support agency'' has the meaning 
        given that term in section 193(f) of title 10, United States 
        Code.
            (2) The term ``congressional intelligence committees'' has 
        the meaning given that term in section 3(7) of the National 
        Security Act of 1947 (50 U.S.C. 401a(7)).
            (3) The term ``field operating agency'' means a specialized 
        subdivision of the Department of Defense that carries out 
        activities under the operational control of the Department.
            (4) The term ``intelligence oversight activities of the 
        Department of Defense'' refers to any activity undertaken by an 
        agency, element, or component of the Department of Defense to 
        ensure compliance with regard to requirements or instructions 
        on the intelligence and intelligence-related activities of the 
        Department under law or any Executive order or Presidential 
        directive (including Executive Order No. 12333).
            (5) The term ``questionable intelligence activity'' means 
        an intelligence or intelligence-related activity of the 
        Department of Defense that may violate the law or any Executive 
        order or Presidential directive (including Executive Order No. 
        12333).

SEC. 1033. ADMINISTRATION OF PILOT PROJECT ON CIVILIAN LINGUIST RESERVE 
              CORPS.

    (a) Transfer of Administration to Secretary of Defense.--
            (1) In general.--Administration of the pilot project on the 
        establishment of a Civilian Linguist Reserve Corps required by 
        section 613 of the Intelligence Authorization Act for Fiscal 
        Year 2005 (Public Law 108-487; 118 Stat. 3959; 50 U.S.C. 403-1b 
        note) is hereby transferred from the Director of National 
        Intelligence to the Secretary of Defense.
            (2) Conforming amendments.--Section 613 of the Intelligence 
        Authorization Act for Fiscal Year 2005 is amended--
                    (A) by striking ``Director of National 
                Intelligence'' each place it appears and inserting 
                ``Secretary of Defense''; and
                    (B) by striking ``Director'' each place it appears 
                and inserting ``Secretary''.
    (b) Discharge of Project.--Subsection (a) of such section is 
further amended by adding at the end the following new sentence: ``The 
Secretary shall carry out the pilot project through the National 
Security Education Program.''.
    (c) Repeal of Specification of Duration of Project.--Such section 
is further amended--
            (1) by striking subsection (c); and
            (2) by redesignating subsections (d) and (e) as subsections 
        (c) and (d), respectively.
    (d) Modification of Report Requirements.--Subsection (d) of such 
section, as redesignated by subsection (b) of this section, is further 
amended--
            (1) in paragraph (1), by striking ``an initial and a final 
        report'' and inserting ``a report'';
            (2) in paragraph (2), by striking ``Each report'' and 
        inserting ``The report''; and
            (3) in paragraph (3), by striking ``final report'' and 
        inserting ``report required under paragraph (1)''.
    (e) Repeal of Superseded Authorization.--Such section is further 
amended by striking subsection (f).

SEC. 1034. IMPROVEMENT OF AUTHORITIES ON THE NATIONAL SECURITY 
              EDUCATION PROGRAM.

    (a) Expansion of Employment Creditable Under Service Agreements.--
Paragraph (2) of subsection (b) of section 802 of the David L. Boren 
National Security Education Act of 1991 (50 U.S.C. 1902) is amended to 
read as follows:
            ``(2)(A) will (in accordance with regulations prescribed by 
        the Secretary of Defense in coordination with the heads of the 
        other Federal departments and agencies concerned) begin work 
        not later than three years after the recipient's completion of 
        degree study during which scholarship assistance was provided 
        under the program--
                    ``(i) for not less than one year in a position 
                certified by the Secretary of Defense, in coordination 
                with the Director of National Intelligence, the 
                Secretary of Homeland Security, and the Secretary of 
                State (as appropriate), as contributing to the national 
                security of the United States in the Department of 
                Defense, any element of the intelligence community, the 
                Department of Homeland Security, or the Department of 
                State;
                    ``(ii) for not less than one year in a position in 
                a Federal agency or office that is identified by the 
                Secretary of Defense under subsection (g) as having 
                national security responsibilities if the recipient 
                demonstrates to the Secretary that no position is 
                available in the departments and agencies covered by 
                clause (i); or
                    ``(iii) for not less than one academic year in a 
                position in the field of education in a discipline 
                related to the study supported by the program if the 
                recipient demonstrates to the Secretary of Defense that 
                no position is available in the departments, agencies, 
                and offices covered by clauses (i) and (ii); or
            ``(B) will (in accordance with such regulations) begin work 
        not later than two years after the recipient's completion or 
        termination of study for which fellowship assistance was 
        provided under the program--
                    ``(i) for not less than one year in a position 
                certified by the Secretary of Defense, in coordination 
                with the Director of National Intelligence, the 
                Secretary of Homeland Security, and the Secretary of 
                State (as appropriate), as contributing to the national 
                security of the United States in the Department of 
                Defense, any element of the intelligence community, the 
                Department of Homeland Security, or the Department of 
                State;
                    ``(ii) for not less than one year in a position in 
                a Federal agency or office that is identified by the 
                Secretary of Defense under subsection (g) as having 
                national security responsibilities if the recipient 
                demonstrates to the Secretary that no position is 
                available in the departments and agencies covered by 
                clause (i); or
                    ``(iii) for not less than one academic year in a 
                position in the field of education in a discipline 
                related to the study supported by the program if the 
                recipient demonstrates to the Secretary of Defense that 
                no position is available in the departments, agencies, 
                and offices covered by clauses (i) and (ii); and''.
    (b) Temporary Employment and Retention of Certain Participants.--
Such section is further amended--
            (1) by redesignating subsections (h) and (i) as subsections 
        (i) and (j), respectively; and
            (2) by inserting after subsection (g) the following new 
        subsection (h):
    ``(h) Temporary Employment and Retention of Certain Participants.--
            ``(1) In general.--The Secretary of Defense may--
                    ``(A) appoint or retain a person provided 
                scholarship or fellowship assistance under the program 
                in a position in the Department of Defense on an 
                interim basis during the period of the person's pursuit 
                of a degree under the program and for a period not to 
                exceed two years after completion of the degree, but 
                only if, in the case of the period after completion of 
                the degree--
                            ``(i) there is no appropriate permanent 
                        position for the person under subsection 
                        (b)(2)(A); and
                            ``(ii) there is an active and ongoing 
                        effort to identify and assign the person to an 
                        appropriate permanent position as soon as 
                        possible; and
                    ``(B) if there is no appropriate permanent position 
                available for the person after the end of the periods 
                described in subparagraph (A), separate the person from 
                employment with the Department without regard to any 
                other provision of law, in which event the service 
                agreement of the person under subsection (b) shall 
                terminate.
            ``(2) Treatment of certain service.--The period of service 
        of a person covered by paragraph (1) in a position on an 
        interim basis under that paragraph shall, after completion of 
        the degree, be treated as a period of service for purposes of 
        satisfying the obligated service requirements of the person 
        under the service agreement of the person under subsection 
        (b).''.
    (c) Plan for Improving Program.--Not later than 90 days after the 
date of the enactment of this Act, the Secretary of Defense shall 
submit to Congress a plan for improving the recruitment, placement, and 
retention within the Department of Defense of individuals who receive 
scholarships or fellowships under the David L. Boren National Security 
Education Act of 1991 (50 U.S.C. 1901 et seq.) in order to facilitate 
the purposes of that Act in meeting the requirements of the Department 
in acquiring individuals with critical foreign language skills and 
individuals who are regional experts.

SEC. 1035. COLLECTION BY NATIONAL SECURITY AGENCY OF SERVICE CHARGES 
              FOR CERTIFICATION OR VALIDATION OF INFORMATION ASSURANCE 
              PRODUCTS.

    The National Security Agency Act of 1959 (50 U.S.C. 402 note) is 
amended by adding at the end the following new section:
    ``Sec. 20.(a) The Director may collect charges for evaluating, 
certifying, or validating information assurance products under the 
National Information Assurance Program or successor program.
    ``(b) The charges collected under subsection (a) shall be 
established through a public rulemaking process in accordance with 
Office of Management and Budget Circular No. A-25.
    ``(c) Charges collected under subsection (a) shall not exceed the 
direct costs of the program referred to in that subsection.
    ``(d) The appropriation or fund bearing the cost of the service for 
which charges are collected under the program referred to in subsection 
(a) may be reimbursed, or the Director may require advance payment 
subject to such adjustment on completion of the work as may be agreed 
upon.
    ``(e) Amounts collected under this section shall be credited to the 
account or accounts from which costs associated with such amounts have 
been or will be incurred, to reimburse or offset the direct costs of 
the program referred to in subsection (a).''.

SEC. 1036. FUNDING FOR A CERTAIN MILITARY INTELLIGENCE PROGRAM.

    (a) Increase in Amount for Research, Development, Test, and 
Evaluation, Defense-Wide.--The amount authorized to be appropriated by 
section 201(4) for research, development, test, and evaluation for 
Defense-wide activities is hereby increased by $450,000,000.
    (b) Offset.--The amount authorized to be appropriated by section 
201(3) for research, development, test, and evaluation for the Air 
Force is hereby decreased by $450,000,000, with the amount of the 
reduction to be allocated to amounts available for a classified program 
as described on page 34 of Volume VII (Compartmented Annex) of the 
Fiscal Year 2007 Military Intelligence Program justification book.

   Subtitle E--Defense Against Terrorism and Related Security Matters

SEC. 1041. ENHANCEMENT OF AUTHORITY TO PAY MONETARY REWARDS FOR 
              ASSISTANCE IN COMBATING TERRORISM.

    Section 127b(c) of title 10, United States Code, is amended--
            (1) in paragraph (1)(B), by inserting ``, or to a 
        subcommander of a combatant command designated by the commander 
        of the combatant command and approved by an Under Secretary of 
        Defense to whom such authority is delegated under subparagraph 
        (A),'' after ``combatant command''; and
            (2) in paragraph (2), by striking ``$2,500'' and inserting 
        ``$10,000''.

SEC. 1042. USE OF THE ARMED FORCES IN MAJOR PUBLIC EMERGENCIES.

    (a) Use of the Armed Forces Authorized.--
            (1) In general.--Section 333 of title 10, United States 
        Code, is amended to read as follows:
``Sec. 333. Major public emergencies; interference with State and 
              Federal law
    ``(a) Use of Armed Forces in Major Public Emergencies.--(1) The 
President may employ the armed forces, including the National Guard in 
Federal service, to--
            ``(A) restore public order and enforce the laws of the 
        United States when, as a result of a natural disaster, 
        epidemic, or other serious public health emergency, terrorist 
        attack or incident, or other condition in any State or 
        possession of the United States, the President determines 
        that--
                    ``(i) domestic violence has occurred to such an 
                extent that the constituted authorities of the State or 
                possession are incapable of maintaining public order; 
                and
                    ``(ii) such violence results in a condition 
                described in paragraph (2); or
            ``(B) suppress, in a State, any insurrection, domestic 
        violence, unlawful combination, or conspiracy if such 
        insurrection, violation, combination, or conspiracy results in 
        a condition described in paragraph (2).
    ``(2) A condition described in this paragraph is a condition that--
            ``(A) so hinders the execution of the laws of a State or 
        possession, as applicable, and of the United States within that 
        State or possession, that any part or class of its people is 
        deprived of a right, privilege, immunity, or protection named 
        in the Constitution and secured by law, and the constituted 
        authorities of that State or possession are unable, fail, or 
        refuse to protect that right, privilege, or immunity, or to 
        give that protection; or
            ``(B) opposes or obstructs the execution of the laws of the 
        United States or impedes the course of justice under those 
        laws.
    ``(3) In any situation covered by paragraph (1)(B), the State shall 
be considered to have denied the equal protection of the laws secured 
by the Constitution.
    ``(b) Notice to Congress.--The President shall notify Congress of 
the determination to exercise the authority in subsection (a)(1)(A) as 
soon as practicable after the determination and every 14 days 
thereafter during the duration of the exercise of the authority.''.
            (2) Proclamation to disperse.--Section 334 of such title is 
        amended by inserting ``or those obstructing the enforcement of 
        the laws'' after ``insurgents''.
            (3) Heading amendment.--The heading of such 15 of such 
        title is amended to read as follows:

    ``CHAPTER 15--ENFORCEMENT OF THE LAWS TO RESTORE PUBLIC ORDER''.

            (4) Clerical amendments.--(A) The table of chapters at the 
        beginning of subtitle A of title 10, United States Code, and at 
        the beginning of part I of such subtitle, are each amended by 
        striking the item relating to chapter 15 and inserting the 
        following new item:

``15. Enforcement of the Laws To Restore Public Order.......     331''.
            (B) The table of sections at the beginning of chapter 15 of 
        such title is amended by striking the item relating to sections 
        333 and inserting the following new item:

``333. Major public emergencies; interference with State and Federal 
                            law.''.
    (b) Provision of Supplies, Services, and Equipment.--
            (1) In general.--Chapter 152 of such title is amended by 
        adding at the end the following new section:
``Sec. 2567. Provision of supplies, services, and equipment in major 
              public emergencies
    ``(a) Provision Authorized.--In any situation in which the 
President determines to exercise the authority in section 333(a)(1)(A) 
of this title, the President may direct the Secretary of Defense to 
provide supplies, services, and equipment to persons affected by the 
situation.
    ``(b) Covered Supplies, Services, and Equipment.--The supplies, 
services, and equipment provided under this section may include food, 
water, utilities, bedding, transportation, tentage, search and rescue, 
medical care, minor repairs, the removal of debris, and other 
assistance necessary for the immediate preservation of life and 
property.
    ``(c) Limitations.--(1) Supplies, services, and equipment may be 
provided under this section--
            ``(A) only to the extent that the constituted authorities 
        of the State or possession concerned are unable to provide such 
        supplies, services, and equipment, as the case may be; and
            ``(B) only until such authorities, or other departments or 
        agencies of the United States charged with the provision of 
        such supplies, services, and equipment, are able to provide 
        such supplies, services, and equipment.
    ``(2) The Secretary may provide supplies, services, and equipment 
under this section only to the extent that the Secretary determines 
that doing so will not interfere with military preparedness or ongoing 
military operations or functions.
    ``(d) Inapplicability of Certain Authorities.--The provision of 
supplies, services, or equipment under this section shall not be 
subject to the provisions of section 403(c) of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170b(c)).''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following new item:

``2567. Provision of supplies, services, and equipment in major public 
                            emergencies.''.
    (c) Conforming Amendments.--Section 12304(c) of such title is 
amended--
            (1) by striking paragraph (1); and
            (2) by redesignating paragraphs (2) and (3) as paragraphs 
        (1) and (2), respectively.

SEC. 1043. TREATMENT UNDER FREEDOM OF INFORMATION ACT OF CERTAIN 
              CONFIDENTIAL INFORMATION SHARED WITH STATE AND LOCAL 
              PERSONNEL.

    Confidential business information and other sensitive but 
unclassified homeland security information in the possession of the 
Department of Defense that is shared, pursuant to section 892 of the 
Homeland Security Act of 2002 (6 U.S.C. 482), with State and local 
personnel involved in the prevention, interdiction, or disruption of, 
or response to, terrorist activity shall not be subject to disclosure 
under section 552 of title 5, United States Code (commonly referred to 
as the ``Freedom of Information Act''), by virtue of the sharing of 
such information with such personnel.

SEC. 1044. TEMPORARY NATIONAL GUARD SUPPORT FOR SECURING THE SOUTHERN 
              LAND BORDER OF THE UNITED STATES.

    (a) Authority To Provide Assistance.--(1) With the approval of the 
Secretary of Defense, the Governor of a State may order any units or 
personnel of the National Guard of such State to annual training duty 
under section 502(a) of title 32, United States Code, to carry out in 
any State along the southern land border of the United States the 
activities authorized in subsection (b) for the purpose of securing 
such border. Such duty shall not exceed 21 days in any year.
    (2) With the approval of the Secretary of Defense, the Governor of 
a State may order any units or personnel of the National Guard of such 
State to perform duty under section 502(f) of title 32, United States 
Code, to provide command, control, and continuity of support for units 
and personnel performing annual training duty under paragraph (1).
    (b) Authorized Activities.--The activities authorized by this 
subsection are the following:
            (1) Ground surveillance activities.
            (2) Airborne surveillance activities.
            (3) Logistical support.
            (4) Provision of translation services and training.
            (5) Provision of administrative support services.
            (6) Provision of technical training services.
            (7) Provision of emergency medical assistance and services.
            (8) Provision of communications services.
            (9) Rescue of aliens in peril.
            (10) Construction of roadways, patrol roads, fences, 
        barriers, and other facilities to secure the southern land 
        border of the United States.
            (11) Ground and air transportation.
    (c) Cooperative Agreements.--Units and personnel of the National 
Guard of a State may perform activities in another State under 
subsection (a) only pursuant to the terms of an emergency management 
assistance compact or other cooperative arrangement entered into 
between the Governors of such States for purposes of this section, and 
only with the approval of the Secretary of Defense.
    (d) Coordination of Assistance.--The Secretary of Homeland Security 
shall, in consultation with the Secretary of Defense and the Governors 
of the States concerned, coordinate the performance of activities under 
this section by units and personnel of the National Guard.
    (e) Annual Training.--Annual training duty performed by members of 
the National Guard under this section shall be appropriate for the 
units and individual members concerned, taking into account the types 
of units and military occupational specialties of individual members 
performing such duty.
    (f) Prohibition on Direct Participation in Law Enforcement.--
Activities carried out under this section shall not include the direct 
participation of a member of the National Guard in a search, seizure, 
arrest, or similar activity.
    (g) Duration of Authority.--The authority of this section shall 
expire on January 1, 2009.
    (h) Definitions.--In this section:
            (1) The term ``Governor of a State'' means, in the case of 
        the District of Columbia, the Commanding General of the 
        National Guard of the District of Columbia.
            (2) The term ``State'' means each of the several States and 
        the District of Columbia, the Commonwealth of Puerto Rico, 
        Guam, and the Virgin Islands.
            (3) The term ``State along the southern land border of the 
        United States'' means each of the following:
                    (A) The State of Arizona.
                    (B) The State of California.
                    (C) The State of New Mexico.
                    (D) The State of Texas.

 Subtitle F--Miscellaneous Authorities 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.

    (a) In General.--Subchapter II of chapter 134 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 2262. Department of Defense conferences: collection of fees to 
              cover Department of Defense costs
    ``(a) In General.--(1) The Secretary of Defense may, whether 
directly or by contract, collect fees from any individual or commercial 
participant in a conference, seminar, exhibition, symposium, or similar 
meeting (in this section referred to collectively as a `conference') 
conducted by the Department of Defense.
    ``(2) Fees may be collected with respect to a conference under this 
subsection in advance of the conference.
    ``(3) The total amount of fees collected under this subsection with 
respect to a conference may not exceed the costs of the Department of 
Defense with respect to the conference.
    ``(b) Treatment of Collections.--(1) Amounts collected under 
subsection (a) with respect to a conference shall be credited to the 
appropriation or account from which the costs of the conference are 
paid.
    ``(2) In the event the total amount of fees collected with respect 
to a conference exceeds the costs of the Department with respect to the 
conference, the amount of such excess shall be deposited into the 
Treasury as miscellaneous receipts.
    ``(3) Amounts credited to an appropriation or account under 
paragraph (1) with respect to a conference shall be available to pay 
the costs of the Department with respect to the conference or to 
reimburse the Department for costs incurred with respect to the 
conference.
    ``(c) Annual Reports.--(1) Each year, not later than 45 days after 
the President submits to Congress the budget for a fiscal year under 
section 1105 of title 31, the Secretary shall submit to the 
congressional defense committees budget justification documents 
summarizing the use of the authority under this section.
    ``(2) Each report under this subsection shall include the 
following:
            ``(A) A list of conferences during the last two calendar 
        years for which fees were collected under subsection (a).
            ``(B) For each conference listed under subparagraph (A)--
                    ``(i) The estimated costs of the Department for 
                such conference.
                    ``(ii) The actual costs of the Department for such 
                conference, including a separate statement of the 
                amount of any conference coordinator fees associated 
                with such conference.
                    ``(iii) The amount for collected under subsection 
                (a) for such conference.
            ``(C) An estimate of the number of conferences to be 
        conducted in the calendar year of such report for which the 
        Department will collect fees under subsection (a).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
subchapter II of chapter 134 of such title is amended by adding at the 
end the following new item:

``2262. Department of Defense conferences: collection of fees to cover 
                            Department of Defense costs.''.

SEC. 1052. MINIMUM ANNUAL PURCHASE AMOUNTS FOR AIRLIFT FROM CARRIERS 
              PARTICIPATING IN THE CIVIL RESERVE AIR FLEET.

    (a) In General.--Chapter 931 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 9515. Airlift services: minimum annual purchase amount for 
              carriers participating in Civil Reserve Air Fleet
    ``(a) In General.--The Secretary of Defense may award to air 
carriers participating in the Civil Reserve Air Fleet on a fiscal year 
basis a one-year contract for airlift services with a minimum purchase 
amount determined in accordance with this section.
    ``(b) Minimum Purchase Amount.--(1) The aggregate amount of the 
minimum purchase amount for all contracts awarded under subsection (a) 
for a fiscal year shall be based on forecast needs, but may not exceed 
the amount equal to 80 percent of the annual average expenditure of the 
Department of Defense for airlift during the five-fiscal year period 
ending in the fiscal year before the fiscal year for which such 
contracts are awarded.
    ``(2) In calculating the annual average expenditure of the 
Department of Defense for airlift for purposes of paragraph (1), the 
Secretary of Defense may omit from the calculation any fiscal year 
exhibiting unusually high demand for airlift if the Secretary 
determines that the omission of such fiscal year from the calculation 
will result in a more accurate forecast of anticipated airlift for 
purposes of that paragraph.
    ``(3) The aggregate amount of the minimum purchase amount for all 
contracts awarded under subsection (a) for a fiscal year, as determined 
under paragraph (1), shall be allocated among all carriers awarded 
contracts under that subsection for such fiscal year in proportion to 
the commitments of such carriers to the Civil Reserve Air Fleet for 
such fiscal year.
    ``(c) Adjustment to Minimum Purchase Amount for Periods of 
Unavailability of Airlift.--In determining the minimum purchase amount 
payable under a contract under subsection (a) for airlift provided by a 
carrier during the fiscal year covered by such contract, the Secretary 
of Defense may adjust the amount allocated to the carrier under 
subsection (b)(3) to take into account periods during such fiscal year 
when services of the carrier are unavailable for usage by the 
Department of Defense, including during periods of refused business or 
suspended operations or when the carrier is placed in nonuse status 
pursuant to section 2640 of this title for safety issues.
    ``(d) Distribution of Amounts.--If any amount available under this 
section for the minimum purchase of airlift from a carrier for a fiscal 
year under a contract under subsection (a) is not utilized to purchase 
airlift from the carrier in such fiscal year, such amount shall be 
provided to the carrier prior to the first day of the following fiscal 
year.
    ``(e) Transfer of Funds.--At the beginning of each fiscal year, the 
Secretary of each military department shall transfer to the 
transportation working capital fund a percentage of the total amount 
anticipated to be required in such fiscal year for payment of minimum 
purchase amounts under all contracts awarded under subsection (a) for 
such fiscal year equivalent to the percentage of the anticipated use of 
airlift by such military department during such fiscal year from all 
carriers under contracts awarded under subsection (a) for such fiscal 
year.
    ``(f) Availability of Airlift.--(1) From the total amount of 
airlift available for a fiscal year under all contracts awarded under 
subsection (a) for such fiscal year, a military department shall be 
entitled to obtain a percentage of such airlift equivalent to the 
percentage of the contribution of the military department to the 
transportation working capital fund for such fiscal year under 
subsection (e).
    ``(2) A military department may transfer any entitlement to airlift 
under paragraph (1) to any other military department or to any other 
agency, element, or component of the Department of Defense.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 931 of such title is amended by adding at the end the following 
new item:

``9515. Airlift services: minimum annual purchase amount for carriers 
                            participating in Civil Reserve Air 
                            Fleet.''.

SEC. 1053. INCREASED FLEXIBILITY IN USE OF FUNDS FOR JOINT STAFF 
              EXERCISES.

    (a) In General.--Amounts available to the Chairman of the Joint 
Chiefs of Staff for joint staff exercises may be available for any 
expenses as follows:
            (1) Expenses of the Armed Forces in connection with such 
        exercises, including expense relating to self-deploying 
        watercraft under the jurisdiction of a military department.
            (2) Expenses relating to the costs of port support 
        activities in connection with such exercises, including 
        transportation and port handling.
            (3) Expenses relating to the breakout and operation of 
        prepositioned watercraft and lighterage for joint logistics and 
        over the shore exercises in connection with such exercises.
    (b) Supplement Not Supplant.--Any amounts made available by the 
Chairman of the Joint Chiefs of Staff under subsection (a) for expenses 
covered by that subsection are in addition to any other amounts 
available under law for such expenses.

SEC. 1054. STRENGTHENING THE SPECIAL INSPECTOR GENERAL FOR IRAQ 
              RECONSTRUCTION.

    For purposes of discharging the duties of the Special Inspector 
General for Iraq Reconstruction under subsection (f) of section 3001 of 
the Emergency Supplemental Appropriations Act for Defense and for the 
Reconstruction of Iraq and Afghanistan, 2004 (5 U.S.C. 8G note), and 
for purposes of determining the date of termination of the Office of 
the Special Inspector General under subsection (o) of such section, any 
funds appropriated or otherwise made available for fiscal year 2006 for 
the reconstruction of Iraq, regardless of how such funds may be 
designated, shall be treated as amounts appropriated or otherwise made 
available for the Iraq Relief and Reconstruction Fund.

                       Subtitle G--Report Matters

SEC. 1061. REPORT ON CLARIFICATION OF PROHIBITION ON CRUEL, INHUMAN, OR 
              DEGRADING TREATMENT OR PUNISHMENT.

    (a) Findings.--Congress makes the following findings:
            (1) It is critical that members of the Armed Forces have 
        clear guidelines about the legality of interrogation techniques 
        as they seek critical intelligence in the War on Terrorism.
            (2) To avoid confusion, any determination made about the 
        legality of various interrogation techniques must be consistent 
        across the United States Government.
            (3) Confusion continues about the permissibility of various 
        interrogation techniques, even after the enactment of the 
        Detainee Treatment Act of 2005 (title X of division A of Public 
        Law 109-148).
            (4) In testimony before the Senate and in written response 
        to queries from the Senate, senior military commanders, Judge 
        Advocates General of the Armed Forces, and various civilian 
        officials of the Executive Branch have given incomplete or 
        varying answers to questions on what constitutes cruel, 
        inhuman, or degrading treatment.
            (5) It is critical to clarify these matters in order to 
        ensure that members of the Armed Forces do not receive unclear 
        or misleading guidance on such matters.
    (b) Report.--Not later than 90 days after the date of the enactment 
of this Act, the President shall submit to the congressional defense 
committees a report setting forth the coordinated and definitive legal 
opinion of the United States Government on whether each of the 
following interrogation techniques constitutes cruel, inhuman, or 
degrading treatment or punishment (as defined in section 1002(d) of the 
Detainee Treatment Act of 2006 (as defined in the Detainee Treatment 
Act of 2005 (119 Stat. 2740; 42 U.S.C. 2000dd(d)):
            (1) Waterboarding, or any other technique using water, 
        bags, or other devices or substances to induce a sensation of 
        drowning or asphyxiation.
            (2) Sleep deprivation, including, at a minimum, depriving a 
        prisoner of sleep for 24 hours or more or permitting five or 
        less hours of sleep per day over a period of three or more 
        days.
            (3) Stress positions, including the use of any technique in 
        which a prisoner is placed or shackled in a painful or awkward 
        position (including prolonged standing or crouching, shackling 
        arms above the head for prolonged periods, or the use of 
        shackles or handcuffs in a manner which causes pain due to the 
        swelling of tissue over a prolonged period of time).
            (4) The use of extreme temperatures as an aid to 
        interrogation.
            (5) The use of beatings, slapping, or violent shaking.
            (6) The use of dogs as an aid to interrogation.
            (7) The use of nakedness or other forms of sexual 
        humiliation as an aid to interrogation.
    (c) Elements.--The report under subsection (b) shall state, for 
each interrogation technique listed in that subsection, the following
            (1) Whether the technique would constitute cruel and 
        unusual punishment under the Constitution of the United States 
        if used on a United States citizen within the United States.
            (2) Whether the technique would constitute cruel and 
        unusual punishment under the Constitution of the United States 
        if used on a United States citizen outside the United States.
            (3) Whether the technique would be legal if used to 
        interrogate a member of the Armed Forces of the United States 
        by a state party to the Geneva Conventions.
            (4) Whether the technique would be legal if used to 
        interrogate a United States citizen by a state party to the 
        Convention Against Torture and Other Cruel, Inhuman or 
        Degrading Treatment or Punishment.
    (d) Certification on Nature of Opinions.--The report under 
subsection (b) shall include a certification that the legal opinions 
set forth in the report are the coordinated and definitive opinion of 
the United States Government binding on all departments and agencies of 
the United States Government, any personnel of such departments and 
agencies, and any contractors of such departments and agencies.
    (e) Dissemination of Opinions.--
            (1) In general.--The President shall ensure the 
        dissemination of the legal opinions set forth in the report to 
        all departments and agencies of the United States Government, 
        together with the instruction that such opinions be further 
        disseminated to all personnel of such departments and agencies 
        and all contractors of such departments and agencies.
            (2) Certification on dissemination.--The report shall 
        include a certification regarding compliance with the 
        requirement in paragraph (1).
    (f) Definitions.--In this section:
            (1) The term ``Convention Against Torture and Other Cruel, 
        Inhuman or Degrading Treatment or Punishment'' means the 
        Convention Against Torture and Other Cruel, Inhuman or 
        Degrading Treatment or Punishment, done at New York, December 
        10, 1984, and entering into force June 26, 1987 (T. Doc. 100-
        20).
            (2) The term ``Geneva Conventions'' means--
                    (A) the Convention for the Amelioration of the 
                Condition of the Wounded and Sick in Armed Forces in 
                the Field, done at Geneva August 12, 1949 (6 UST 3114);
                    (B) the Convention for the Amelioration of the 
                Condition of the Wounded, Sick, and Shipwrecked Members 
                of Armed Forces at Sea, done at Geneva August 12, 1949 
                (6 UST 3217);
                    (C) the Convention Relative to the Treatment of 
                Prisoners of War, done at Geneva August 12, 1949 (6 UST 
                3316); and
                    (D) the Convention Relative to the Protection of 
                Civilian Persons in Time of War, done at Geneva August 
                12, 1949 (6 UST 3516).

SEC. 1062. REPORTS ON MEMBERS OF THE ARMED FORCES AND CIVILIAN 
              EMPLOYEES OF THE DEPARTMENT OF DEFENSE SERVING IN THE 
              LEGISLATIVE BRANCH.

    (a) Monthly Reports on Details and Fellowships of Long Duration.--
Not later than 120 days after the date of the enactment of this Act, 
and monthly thereafter, the Secretary of Defense shall submit to the 
congressional defense committees a report on the members of the Armed 
Forces and civilian employees of the Department of Defense who, as of 
the date of such report, have served continuously in the Legislative 
Branch for more than 12 consecutive months in one or a combination of 
covered legislative details or fellowships.
    (b) Reports on Certain Military Details and Fellowships.--If a 
member of the Armed Forces is assigned to a covered legislative detail 
or fellowship as the last tour of duty of such member before retirement 
or separation from the Armed Forces in contravention of the regulations 
of the Department of Defense, the Secretary shall submit to the 
congressional defense committees a report on the assignment of such 
member to such covered legislative detail or fellowship. The report 
shall include a rationale for the waiver of the regulations of the 
Department in order to permit the detail or fellowship.
    (c) Report Elements.--Each report under subsection (a) or (b) shall 
set forth, for each member of the Armed Forces or civilian employee 
covered of the Department of Defense covered by such report, the 
following:
            (1) The name of such member or employee.
            (2) In the case of a member, the Armed Force of such 
        member.
            (3) The committee or member of Congress to which such 
        member or employee is detailed or assigned.
            (4) A general description of the projects or tasks 
        undertaken or to be undertaken, as applicable, by such member 
        or employee as a detailee, fellow, or both.
            (5) The anticipated termination date of the current detail 
        or fellowship of such member or employee.
    (d) Covered Legislative Detail or Fellowship Defined.--In this 
section, the term ``covered legislative detail or fellowship'' means 
the following:
            (1) A detail under the provisions of Department of Defense 
        Directive 1000.17.
            (2) A legislative fellowship (including a legislative 
        fellowship under the provisions of Department of Defense 
        Directive 1322.6).

SEC. 1063. ADDITIONAL ELEMENT IN ANNUAL REPORT ON CHEMICAL AND 
              BIOLOGICAL WARFARE DEFENSE.

    Section 1703(b) of the National Defense Authorization Act for 
Fiscal Year 1994 (50 U.S.C. 1523(b)) is amended by adding at the end 
the following new paragraph:
            ``(10) A description of the coordination and integration of 
        the program of the Defense Advanced Research Projects Agency 
        (DARPA) on basic and applied research and advanced technology 
        development on chemical and biological warfare defense 
        technologies and systems under section 1701(c)(2) with the 
        overall program of the Department of Defense on chemical and 
        biological warfare defense, including--
                    ``(A) the degree to which the program of the 
                Defense Advanced Research Projects Agency supports the 
                objectives and requirements of the program of the 
                Department of Defense; and
                    ``(B) the means of determining the level of 
                coordination and support provided by the program of the 
                Defense Advanced Research Projects Agency for the 
                program of the Department of Defense.''.

SEC. 1064. 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 setting forth 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 section 1516 of such Act.

SEC. 1065. REPEAL OF CERTAIN REPORT REQUIREMENTS.

    (a) Annual Report on Aviation Career Incentive Pay.--Section 301a 
of title 37, United States Code, is amended by striking subsection (f).
    (b) Annual Report on Effects of Certain Initiatives on Recruitment 
and Retention.--
            (1) Repeal.--Section 1015 of title 37, United States Code, 
        is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 19 of such title is amended by striking 
        the item relating to section 1015.
    (c) Secretary of Defense Recommendation on Need for Defense Impact 
Review Process.--Section 1041 of the National Defense Authorization Act 
for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1217) is repealed.
    (d) Report on Pilot Program To Enhance Military Recruiting by 
Improving Military Awareness of School Counselors and Educators.--
Section 564 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-134); 10 U.S.C. 503 note) is amended by striking subsection 
(c).
    (e) Annual Report on Medical Informatics.--Section 723(d) of the 
National Defense Authorization Act for Fiscal Year 2000 (10 U.S.C. 1071 
note) is amended--
            (1) by striking paragraph (5); and
            (2) by redesignating paragraphs (6) and (7) as paragraphs 
        (5) and (6), respectively.
    (f) Report on Imposition of Additional Charges or Fees for 
Attendance at Certain Academies.--Section 553(b) of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 
Stat. 2772; 10 U.S.C. 4331 note) is amended by striking the second 
sentence.

SEC. 1066. REPORT ON INCENTIVES TO ENCOURAGE CERTAIN MEMBERS AND FORMER 
              MEMBERS OF THE ARMED FORCES TO SERVE IN THE BUREAU OF 
              CUSTOMS AND BORDER PROTECTION.

    (a) Report Required.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary of Homeland Security and the 
Secretary of Defense shall jointly submit to the appropriate committees 
of Congress a report assessing the desirability and feasibility of 
offering incentives to covered members and former members of the Armed 
Forces for the purpose of encouraging such members to serve in the 
Bureau of Customs and Border Protection.
    (b) Covered Members and Former Members of the Armed Forces.--For 
purposes of this section, covered members and former members of the 
Armed Forces are the following:
            (1) Members of the reserve components of the Armed Forces.
            (2) Former members of the Armed Forces within two years of 
        separation from service in the Armed Forces.
    (c) Requirements and Limitations.--
            (1) Nature of incentives.--In considering incentives for 
        purposes of the report required by subsection (a), the 
        Secretaries shall consider such incentives, whether monetary or 
        otherwise and whether or not authorized by current law or 
        regulations, as the Secretaries jointly consider appropriate.
            (2) Targeting of incentives.--In assessing any incentive 
        for purposes of the report, the Secretaries shall give 
        particular attention to the utility of such incentive in--
                    (A) encouraging service in the Bureau of Customs 
                and Border Protection after service in the Armed Forces 
                by covered members and former of the Armed Forces who 
                have provided border patrol or border security 
                assistance to the Bureau as part of their duties as 
                members of the Armed Forces; and
                    (B) leveraging military training and experience by 
                accelerating training, or allowing credit to be applied 
                to related areas of training, required for service with 
                the Bureau of Customs and Border Protection.
            (3) Payment.--In assessing incentives for purposes of the 
        report, the Secretaries shall assume that any costs of such 
        incentives shall be borne by the Department of Homeland 
        Security.
    (d) Elements.--The report required by subsection (a) shall include 
the following:
            (1) A description of various monetary and non-monetary 
        incentives considered for purposes of the report.
            (2) An assessment of the desirability and feasibility of 
        utilizing any such incentive for the purpose specified in 
        subsection (a), including an assessment of the particular 
        utility of such incentive in encouraging service in the Bureau 
        of Customs and Border Protection after service in the Armed 
        Forces by covered members and former members of the Armed 
        Forces described in subsection (c)(2).
            (3) Any other matters that the Secretaries jointly consider 
        appropriate.
    (e) Appropriate Committees of Congress Defined.--In this section, 
the term ``appropriate committees of Congress'' means--
            (1) the Committees on Armed Services, Homeland Security and 
        Governmental Affairs, and Appropriations of the Senate; and
            (2) the Committees on Armed Services, Homeland Security, 
        and Appropriations of the House of Representatives.

SEC. 1067. REPORT ON REPORTING REQUIREMENTS APPLICABLE TO THE 
              DEPARTMENT OF DEFENSE.

    (a) Report Required.--
            (1) In general.--Not later than March 1, 2007, the 
        Secretary of Defense shall submit to the congressional defense 
        committees a report on each report described in paragraph (2) 
        that is required by law to be submitted to the congressional 
        defense committees by the Department of Defense or any 
        department, agency, element, or component under the Department 
        of Defense.
            (2) Covered reports.--Paragraph (1) applies with respect to 
        any report required under a provision of law enacted on or 
        after the date of the enactment of the National Defense 
        Authorization Act for Fiscal Year 2004 (Public Law 108-136) 
        that requires recurring reports to the committees referred to 
        in that paragraph.
    (b) Elements.--The report required by subsection (a) shall set 
forth the following:
            (1) Each report described by that subsection, including a 
        statement of the provision of law under which such report is 
        required to be submitted to Congress.
            (2) For each such report, an assessment by the Secretary of 
        the utility of such report from the perspective of the 
        Department of Defense and a recommendation on the advisability 
        of repealing the requirement for the submittal of such report.

SEC. 1068. REPORT ON TECHNOLOGIES FOR NEUTRALIZING OR DEFEATING THREATS 
              TO MILITARY ROTARY WING AIRCRAFT FROM PORTABLE AIR 
              DEFENSE SYSTEMS AND ROCKET PROPELLED GRENADES.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
Congress a report on technologies for neutralizing or defeating threats 
to military rotary wing aircraft posed by portable air defense systems 
and rocket propelled grenades that are being researched, developed, 
employed, or considered by the United States Government or the North 
Atlantic Treaty Organization.
    (b) Content.--The report required under subsection (a) shall 
include--
            (1) an assessment of the expected value and utility of the 
        technologies, particularly with respect to--
                    (A) the saving of lives;
                    (B) the ability to reduce the vulnerability of 
                aircraft; and
                    (C) the enhancement of the ability of aircr