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109th Congress 
 2d Session             HOUSE OF REPRESENTATIVES                 Report
                                                                109-702
_______________________________________________________________________

                                     



               JOHN WARNER NATIONAL DEFENSE AUTHORIZATION

                        ACT FOR FISCAL YEAR 2007

                               __________

                           CONFERENCE REPORT

                              to accompany

                               H.R. 5122

                                     


                                     

               September 29, 2006.--Ordered to be printed











                            C O N T E N T S

                               __________
                                                                   Page
DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS.................   459
Title I--Procurement.............................................   459
        Procurement overview.....................................   459
    Budget Items.................................................   461
        Aircraft Procurement, Army overview......................   461
        Missile Procurement, Army overview.......................   465
        Procurement of Weapons and Tracked Combat Vehicles, Army 
          overview...............................................   468
        Procurement of Ammunition, Army overview.................   472
        Other Procurement, Army overview.........................   476
        Aircraft Procurement, Navy overview......................   487
        Weapons Procurement, Navy overview.......................   492
        Procurement of Ammunition, Navy and Marine Corps overview   496
        Shipbuilding and Conversion, Navy overview...............   499
        Other Procurement, Navy overview.........................   502
        Procurement, Marine Corps overview.......................   512
        Aircraft Procurement, Air Force overview.................   518
        Procurement of Ammunition, Air Force overview............   525
        Missile Procurement, Air Force overview..................   528
        Other Procurement, Air Force overview....................   532
        Procurement, Defense-wide overview.......................   539
        National Guard and Reserve Equipment.....................   545
    Items of Special Interest....................................   547
        Battleship transfer......................................   547
        Study on replacement of the T-38 training aircraft.......   548
    Subtitle A--Authorization of Appropriations..................   548
        Authorization of appropriations (secs. 101-104)..........   548
    Subtitle B--Army Programs....................................   548
        Sense of Congress on future multiyear procurement 
          authority for the Family of Medium Tactical Vehicles 
          (sec. 111).............................................   548
        Multiyear procurement authority for MH-60R helicopter and 
          mission equipment (sec. 112)...........................   549
        Funding profile for modular force initiative of the Army 
          (sec. 113).............................................   549
        Bridge to Future Networks Program (sec. 114).............   550
        Comptroller General report on the contract for the Future 
          Combat Systems program (sec. 115)......................   550
        Priority for allocation of replacement equipment to 
          operational units based on combat mission deployment 
          schedule (sec. 116)....................................   550
    Subtitle C--Navy Programs....................................   551
        CVN-21 class aircraft carrier procurement (sec. 121).....   551
        Adherence to Navy cost estimates for CVN-21 class of 
          aircraft carriers (sec. 122)...........................   551
        Modification of limitation on total cost of procurement 
          of CVN-77 aircraft carrier (sec. 123)..................   552
        Construction of first two vessels under the DDG-1000 
          Next-Generation Destroyer program (sec. 124)...........   552
        Adherence to Navy cost estimates for LHA Replacement 
          amphibious assault ship program (sec. 125).............   553
        Cost limitation for San Antonio (LPD-17) class amphibious 
          ship program (sec. 126)................................   554
        Multiyear procurement authority for V-22 tiltrotor 
          aircraft program (sec. 127)............................   555
        Alternative technologies for future surface combatants 
          (sec. 128).............................................   555
        Sense of Congress regarding the size of the attack 
          submarine force (sec. 129).............................   555
        Quality control in procurement of ship critical safety 
          items and related services (sec. 130)..................   556
    Subtitle D--Air Force Programs...............................   556
        Bomber force structure (sec. 131)........................   556
        Strategic airlift force structure (sec. 132).............   557
        Limitation on retirement of U-2 aircraft (sec. 133)......   557
        Limitation on retirement of KC-135E aircraft during 
          fiscal year 2007 (sec. 135)............................   558
        Limitation on retirement of F-117A aircraft during fiscal 
          year 2007 (sec. 136)...................................   558
        Limitation on retirement of C-130E tactical airlift 
          aircraft (sec. 137)....................................   559
        Procurement of Joint Primary Aircraft Training System 
          aircraft after fiscal year 2006 (sec. 138).............   559
        Minuteman III intercontinental ballistic missiles 
          modernization (sec. 139)...............................   559
    Subtitle E--Joint and Multi-Service..........................   560
        Clarification of limitation on initiation of new unmanned 
          aerial vehicle systems (sec. 141)......................   560
    Legislative Provisions Not Adopted...........................   560
        Reports on Army modularity initiative....................   560
        Funding for the Call for Fire Trainer/Joint Fires and 
          Effects Trainer System.................................   561
        Air Force program........................................   561
        Multi-spectral imaging capabilities......................   561
Title II--Research, Development, Test, and Evaluation............   561
        Budget Items.............................................   561
        Research, Development, Test, and Evaluation overview.....   561
        Research, Development, Test, and Evaluation, Army 
          overview...............................................   563
        Research, Development, Test, and Evaluation, Navy 
          overview...............................................   579
        Sea Fighter (X-Craft)....................................   595
        Research, Development, Test, and Evaluation, Air Force 
          overview...............................................   595
        Transformational satellite communications................   610
        Space Radar..............................................   610
        Combatant commanders' integrated command and control 
          system.................................................   611
        Research, Development, Test, and Evaluation, Defense-wide 
          overview...............................................   612
        National Defense Education Program.......................   627
        Printed circuit board supply chain.......................   627
        Joint modeling, simulation, and experimentation..........   627
        Ballistic Missile Defense................................   628
            Ground-based Midcourse Ballistic Missile Defense.....   628
            Aegis Ballistic Missile Defense......................   629
            Arrow Ballistic Missile Defense System...............   629
            Kinetic Energy Interceptor...........................   630
        Space Tracking and Surveillance System...................   630
        Products.................................................   630
        Systems Core.............................................   630
        Special Programs.........................................   630
        Multiple Kill Vehicle....................................   631
        Operationally responsive space capabilities..............   631
        Operational Test and Evaluation, Defense overview........   631
    Item of Special Interest.....................................   633
        Proposed realignment of Air Force test and evaluation 
          facilities.............................................   633
    Subtitle A--Authorization of Appropriations..................   634
        Authorization of appropriations (sec. 201)...............   634
        Amount for defense science and technology (sec. 202).....   634
    Subtitle B--Program Requirements, Restrictions, and 
      Limitations................................................   634
        Acquisition of, and independent cost analyses for, the 
          Joint Strike Fighter propulsion system (sec. 211)......   634
        Expansion and extension of authority to award prizes for 
          advanced technology achievements (sec. 212)............   635
        Defense Acquisition Challenge Program extension, 
          enhancement, and modification to address critical cost 
          growth threshold breaches in major defense acquisition 
          programs (sec. 213)....................................   635
        Future Combat Systems milestone review (sec. 214)........   636
        Dedicated amounts for implementing or evaluating Navy 
          shipbuilding technology proposals under Defense 
          Acquisition Challenge Program (sec. 215)...............   636
        Independent estimate of costs of the Future Combat 
          Systems (sec. 216).....................................   637
        Funding of defense science and technology programs (sec. 
          217)...................................................   637
        Hypersonics development (sec. 218).......................   637
        Report on program for replacement of nuclear warheads on 
          certain Trident sea-launched ballistic missiles with 
          conventional warheads (sec. 219).......................   638
    Subtitle C--Missile Defense Programs.........................   638
        Fielding of ballistic missile defense capabilities (sec. 
          221)...................................................   638
        Limitation on use of funds for space-based interceptor 
          (sec. 222).............................................   638
        Policy of the United States on priorities in the 
          development, testing, and fielding of missile defense 
          capabilities (sec. 223)................................   639
        One-year extension of Comptroller General assessments of 
          ballistic missile defense programs (sec. 224)..........   640
        Submittal of plans for test and evaluation of the 
          operational capability of the Ballistic Missile Defense 
          System (sec. 225)......................................   640
        Annual reports on transition of ballistic missile defense 
          programs to the military departments (sec. 226)........   640
    Subtitle D--Other Matters....................................   640
        Policies and practices on test and evaluation to address 
          emerging acquisition approaches (sec. 231).............   640
        Extension of requirement for Global Research Watch 
          Program (sec. 232).....................................   641
        Sense of Congress on technology sharing of Joint Strike 
          Fighter technology (sec. 233)..........................   641
        Report on vehicle-based active protection systems for 
          certain battlefield threats (sec. 234).................   641
    Legislative Provisions Not Adopted...........................   642
        Amount for development and validation of warfighter rapid 
          awareness processing technology........................   642
        Alternate engine for Joint Strike Fighter................   642
        Arrow ballistic missile defense..........................   642
        Independent cost analyses for Joint Strike Fighter engine 
          program................................................   642
        High energy laser low aspect target tracking.............   643
        Advanced Aluminum Aerostructures Initiative..............   643
        Legged mobility robotic research.........................   643
        Wideband digital airborne electronic sensing array.......   643
        Science and technology...................................   643
        High Altitude Airship program............................   644
        Testing and operations for missile defense...............   644
        Report on biometrics programs of the Department of 
          Defense................................................   644
Title III--Operation and Maintenance.............................   645
        Operation and Maintenance overview.......................   645
    Items of Special Interest....................................   684
        C-17 maintenance, sustainment, and modernization.........   684
        Disposal of land at Norwalk Defense Fuel Supply Point, 
          Norwalk, California....................................   684
        Public sale of damaged equipment.........................   684
    Subtitle A--Authorization of Appropriations..................   685
        Authorization of appropriations (secs. 301-303)..........   685
    Subtitle B--Environmental Provisions.........................   685
        Revision of requirement for unexploded ordnance program 
          manager (sec. 311).....................................   685
        Funding of cooperative agreements under environmental 
          restoration program (sec. 312).........................   685
        Response plan for remediation of unexploded ordnance, 
          discarded military munitions, and munitions 
          constituents (sec. 313)................................   685
        Research on effects of ocean disposal of munitions (sec. 
          314)...................................................   686
        Reimbursement of Environmental Protection Agency for 
          certain costs in connection with Moses Lake Wellfield 
          Superfund Site, Moses Lake, Washington (sec. 315)......   687
        Transfer of Government-furnished uranium stored at 
          Sequoyah Fuels Corporation, Gore, Oklahoma (sec. 316)..   687
        Extension of authority to grant exemptions to certain 
          requirements (sec. 317)................................   687
        National Academy of Sciences study on human exposure to 
          contaminated drinking water at Camp Lejeune, North 
          Carolina (sec. 318)....................................   687
    Subtitle C--Program Requirements, Restrictions, and 
      Limitations................................................   688
        Limitation on financial management improvement and audit 
          initiatives within the Department of Defense (sec. 321)   688
        Funds for exhibits for the national museums of the Armed 
          Forces (sec. 322)......................................   688
        Prioritization of funds for equipment readiness and 
          strategic capability (sec. 323)........................   688
        Limitation on deployment.................................   689
    Subtitle D--Workplace and Depot Issues.......................   689
        Permanent exclusion of certain contract expenditures from 
          percentage limitation on the performance of depot-level 
          maintenance (sec. 331).................................   689
        Minimum capital investment for certain depots (sec. 332).   690
        Extension of temporary authority for contractor 
          performance of security guard functions (sec. 333).....   690
    Subtitle E--Reports..........................................   691
        Report on Navy Fleet Response Plan (sec. 341)............   691
        Report on Navy surface ship rotational crew programs 
          (sec. 342).............................................   691
        Report on Army live-fire ranges in Hawaii (sec. 343).....   691
        Comptroller General report on joint standards and 
          protocols for access control systems at Department of 
          Defense installations (sec. 344).......................   692
        Comptroller General report on readiness of Army and 
          Marine Corps ground forces (sec. 345)..................   692
        Report on Air Force safety requirements for Air Force 
          flight training operations at Pueblo Memorial Airport, 
          Colorado (sec. 346)....................................   692
        Annual report on Personnel Security Investigations for 
          Industry and National Industrial Security Program (sec. 
          347)...................................................   692
        Five-year extension of annual report on training range 
          sustainment plan and training range inventory (sec. 
          348)...................................................   693
        Reports on withdrawal or diversion of equipment from 
          reserve units for support of reserve units being 
          mobilized and other units (sec. 349)...................   694
    Subtitle F--Other Matters....................................   694
        Department of Defense strategic policy on prepositioning 
          of materiel and equipment (sec. 351)...................   694
        Authority to make Department of Defense horses available 
          for adoption (sec. 352)................................   694
        Sale and use of proceeds of recyclable munitions 
          materials (sec. 353)...................................   695
        Recovery and transfer to Corporation for the Promotion of 
          Rifle Practice and Firearms Safety of certain firearms, 
          ammunition, and parts granted to foreign countries 
          (sec. 354).............................................   695
        Extension of Department of Defense telecommunications 
          benefit program (sec. 355).............................   695
        Extension of availability of funds for commemoration of 
          success of the Armed Forces in Operation Enduring 
          Freedom and Operation Iraqi Freedom (sec. 356).........   695
        Capital security cost sharing (sec. 357).................   695
        Utilization of fuel cells as back-up power systems in 
          Department of Defense operations (sec. 358)............   696
        Improving Department of Defense support for civil 
          authorities (sec. 359).................................   696
        Energy efficiency in weapons platforms (sec. 360)........   696
        Prioritization of funds within Navy mission operations, 
          ship maintenance, combat support forces, and weapons 
          system support (sec. 361)..............................   696
        Provision of adequate storage space to secure personal 
          property outside of assigned military family housing 
          unit (sec. 362)........................................   697
        Expansion of payment of replacement value of personal 
          property damaged during transport at Government expense 
          (sec. 363).............................................   697
    Legislative Provisions Not Adopted...........................   698
        Limitation on availability of funds for the Army 
          Logistics Modernization Program........................   698
        Limitation on availability of operation and maintenance 
          funds for the management headquarters of the Defense 
          Information Systems Agency.............................   698
        Analysis and report regarding contamination and 
          remediation responsibility.............................   698
        Report regarding scope of perchlorate contamination at 
          Formerly Used Defense Sites............................   698
        Infantry combat equipment................................   699
        Individual First Aid Kit.................................   699
        Reading for the Blind and Dyslexic program of the 
          Department of Defense..................................   699
        Military training infrastructure improvements at Virginia 
          Military Institute.....................................   699
        Environmental documentation for beddown of F-22A aircraft 
          at Holloman Air Force Base, New Mexico.................   699
        Report on CH-47 helicopter reset.........................   700
        Report on nuclear attack submarine depot maintenance.....   700
        Report on actions to reduce Department of Defense 
          consumption of petroleum-based fuel....................   700
        Plan to replace equipment withdrawn or diverted from the 
          reserve components of the Armed Forces for Operation 
          Iraqi Freedom or Operation Enduring Freedom............   701
        Report on High Altitude Aviation Training Site, Eagle 
          County Colorado........................................   701
        Report on use of alternative fuels by the Department of 
          Defense................................................   701
        Additional exception to prohibition on contractor 
          performance of firefighting functions..................   701
        Temporary security guard services for certain work caused 
          by realignment of military installations under the base 
          closure laws...........................................   702
Title IV--Military Personnel Authorizations......................   702
    Subtitle A--Active Forces....................................   702
        End strengths for active forces (sec. 401)...............   702
        Revision in permanent active duty end strength minimum 
          levels (sec. 402)......................................   703
        Additional authority for increases of Army and Marine 
          Corps active duty end strengths for fiscal years 2008 
          and 2009 (sec. 403)....................................   703
    Subtitle B--Reserve Forces...................................   703
        End strengths for Selected Reserve (sec. 411)............   703
        End strengths for Reserves on active duty in support of 
          the reserves (sec. 412)................................   704
        End strengths for military technicians (dual status) 
          (sec. 413).............................................   705
        Fiscal year 2007 limitation on number of non-dual status 
          technicians (sec. 414).................................   705
        Maximum number of reserve personnel authorized to be on 
          active duty for operational support (sec. 415).........   706
    Subtitle C--Authorization of Appropriations..................   706
        Military personnel (sec. 421)............................   706
        Armed Forces Retirement Home (sec. 422)..................   707
Title V--Military Personnel Policy...............................   707
    Item of Special Interest.....................................   707
        Department of Defense oversight of recruiter misconduct..   707
    Subtitle A--Officer Personnel Policy.........................   707
        Part I--Officer Personnel Policy Generally...............   707
            Military status of officers serving in certain 
              intelligence community positions (sec. 501)........   707
            Extension of age for mandatory retirement for active-
              duty general and flag officers (sec. 502)..........   708
            Increased mandatory retirement ages for reserve 
              officers (sec. 503)................................   708
            Standardization of grade of senior dental officer of 
              the Air Force with that of senior dental officer of 
              the Army (sec. 504)................................   708
            Management of chief warrant officers (sec. 505)......   708
            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. 506).........................................   709
            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)................................   709
            Modification of qualifications for leadership of the 
              Naval Postgraduate School (sec. 508)...............   709
        Part II--Officer Promotion Policy........................   710
            Revisions to authorities relating to authorized 
              delays of officer promotions (sec. 511)............   710
            Consideration of adverse information by selection 
              boards in recommendations on officers to be 
              promoted (sec. 512)................................   710
            Expanded authority for removal from reports of 
              selection boards of officers recommended for 
              promotion to grades below general and flag grades 
              (sec. 513).........................................   710
            Special selection board authorities (sec. 514).......   711
            Removal from promotion list of officers not promoted 
              within 18 months of approval of list by the 
              President (sec. 515)...............................   711
        Part III--Joint Officer Management Requirements..........   711
            Modification and enhancement of general authorities 
              on management of officers who are joint qualified 
              (sec. 516).........................................   711
            Modification of promotion policy objectives for joint 
              officers (sec. 517)................................   712
            Applicability of joint duty assignment requirements 
              limited to graduates of National Defense University 
              schools (sec. 518).................................   712
            Modification of certain definitions relating to 
              jointness (sec. 519)...............................   712
    Subtitle B--Reserve Component Matters........................   713
        Part I--Reserve Component Management.....................   713
            Recognition of former Representative G.V. `Sonny' 
              Montgomery for his 30 years of service in the House 
              of Representatives (sec. 521)......................   713
            Revisions to reserve call-up authority (sec. 522)....   713
            Military retirement credit for certain service by 
              National Guard members performed while in a State 
              duty status immediately after the terrorist attacks 
              of September 11, 2001 (sec. 523)...................   713
        Part II--Authorities Relating to Guard and Reserve Duty..   714
            Title 10 definition of Active Guard and Reserve duty 
              (sec. 524).........................................   714
            Authority for Active Guard and Reserve duties to 
              include support of operational missions assigned to 
              the reserve components and instruction and training 
              of active-duty personnel (sec. 525)................   714
            Governor's authority to order members to Active Guard 
              and Reserve duty (sec. 526)........................   714
            Expansion of operations of civil support teams (sec. 
              527)...............................................   715
            Modification of authorities relating to the 
              Commission on the National Guard and Reserves (sec. 
              528)...............................................   715
            Additional matters to be reviewed by Commission on 
              the National Guard and Reserves (sec. 529).........   715
    Subtitle C--Education and Training...........................   717
        Part I--Service Academies................................   717
            Expansion of service academy exchange programs with 
              foreign military academies (sec. 531)..............   717
            Revision and clarification of requirements with 
              respect to surveys and reports concerning sexual 
              harassment and sexual violence at the service 
              academies (sec. 532)...............................   717
            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. 533).........   718
        Part II--Scholarship and Financial Assistance Programs...   718
            Authority to permit members who participate in the 
              guaranteed reserve forces duty scholarship program 
              to participate in the health professions 
              scholarship program and serve on active duty (sec. 
              535)...............................................   718
            Detail of commissioned officers as students at 
              medical schools (sec. 536).........................   718
            Increase in maximum amount of repayment under 
              education loan repayment for officers in specified 
              health professions (sec. 537)......................   719
            Health Professions Scholarship and Financial 
              Assistance Program for Active Service (sec. 538)...   719
        Part III--Junior ROTC Program............................   719
            Junior Reserve Officers' Training Corps instructor 
              qualifications (sec. 539)..........................   719
            Expansion of members eligible to be employed to 
              provide Junior Reserve Officers' Training Corps 
              instruction (sec. 540).............................   720
            Expansion of Junior Reserve Officers' Training Corps 
              program (sec. 541).................................   720
            Review of legal status of Junior ROTC program (sec. 
              542)...............................................   720
        Part IV--Other Education and Training Programs...........   721
            Expanded eligibility for enlisted members for 
              instruction at Naval Postgraduate School (sec. 543)   721
    Subtitle D--General Service Authorities......................   721
        Test of utility of test preparation guides and education 
          programs in enhancing recruit candidate performance on 
          the Armed Services Vocational Aptitude Battery (ASVAB) 
          and Armed Forces Qualification Test (AFQT) (sec. 546)..   721
        Clarification of nondisclosure requirements applicable to 
          certain selection board proceedings (sec. 547).........   722
        Report on extent of provision of timely notice of long-
          term deployments (sec. 548)............................   722
    Subtitle E--Military Justice Matters.........................   722
        Applicability of Uniform Code of Military Justice to 
          members of the Armed Forces ordered to duty overseas in 
          inactive duty for training status (sec. 551)...........   722
        Clarification of application of Uniform Code of Military 
          Justice during a time of war (sec. 552)................   723
    Subtitle F--Decorations and Awards...........................   723
        Authority for presentation of Medal of Honor Flag to 
          living Medal of Honor recipients and to living primary 
          next-of-kin of deceased Medal of Honor recipients (sec. 
          555)...................................................   723
        Review of eligibility of prisoners of war for award of 
          the Purple Heart (sec. 556)............................   723
        Report on Department of Defense process for awarding 
          decorations (sec. 557).................................   724
    Subtitle G--Matters Relating to Casualties...................   724
        Authority for retention after separation from service of 
          assistive technology and devices provided while on 
          active duty (sec. 561).................................   724
        Transportation of remains of casualties dying in a 
          theater of combat operations (sec. 562)................   724
        Annual budget display of funds for POW/MIA activities of 
          Department of Defense (sec. 563).......................   725
        Military Severely Injured Center (sec. 564)..............   725
        Comprehensive review on procedures of the Department of 
          Defense on mortuary affairs (sec. 565).................   725
        Additional elements of policy on casualty assistance to 
          survivors of military decedents (sec. 566).............   725
        Requirement for deploying military medical personnel to 
          be trained in preservation of remains under combat or 
          combat-related conditions (sec. 567)...................   726
    Subtitle H--Impact Aid and Defense Dependents Education 
      System.....................................................   726
        Enrollment in defense dependents' education system of 
          dependents of foreign military members assigned to 
          Supreme Headquarters Allied Powers, Europe (sec. 571)..   726
        Continuation of authority to assist local educational 
          agencies that benefit dependents of members of the 
          Armed Forces and Department of Defense civilian 
          employees (sec. 572)...................................   726
        Impact aid for children with severe disabilities (sec. 
          573)...................................................   727
        Plan and authority to assist local educational agencies 
          experiencing growth in enrollment due to force 
          structure changes, relocation of military units, or 
          base closures and realignments (sec. 574)..............   727
        Pilot program on parent education to promote early 
          childhood education for dependent children affected by 
          military deployment or relocation of military units 
          (sec. 575).............................................   728
    Subtitle I--Armed Forces Retirement Home.....................   728
        Report on leadership and management of the Armed Forces 
          Retirement Home (sec. 578).............................   728
        Report on Local Boards of Trustees of the Armed Forces 
          Retirement Home (sec. 579).............................   729
    Subtitle J--Reports..........................................   729
        Report on personnel requirements for airborne assets 
          identified as Low-Density, High-Demand Airborne Assets 
          (sec. 581).............................................   729
        Report on feasibility of establishment of Military 
          Entrance Processing Command station on Guam (sec. 582).   729
        Inclusion in annual Department of Defense report on 
          sexual assaults of information on results of 
          disciplinary actions (sec. 583)........................   729
        Report on provision of electronic copy of military 
          records on discharge or release of members from the 
          Armed Forces (sec. 584)................................   730
        Report on omission of social security account numbers 
          from military identification cards (sec. 585)..........   730
        Report on maintenance and protection of data held by the 
          Secretary of Defense as part of the Department of 
          Defense Joint Advertising, Market Research and Studies 
          (JAMRS) program (sec. 586).............................   730
        Comptroller General report on military conscientious 
          objectors (sec. 587)...................................   730
    Subtitle K--Other Matters....................................   731
        Report on using six-month deployments for Operation 
          Enduring Freedom and Operation Iraqi Freedom...........   736
        National Guard officers authority to command.............   736
        Cold War Victory Medal...................................   737
        Advancement on the retired list of certain decorated 
          retired Navy and Marine Corps officers.................   737
        Criteria for removal of member from temporary disability 
          retired list...........................................   737
        Modification of time limit for use of entitlement to 
          educational assistance for reserve component members 
          supporting contingency operations and other operations.   737
        Postal benefits program for members of the Armed Forces..   738
        Funding..................................................   738
        Duration.................................................   738
        Sense of Senate on notice to Congress of recognition of 
          members of the Armed Forces for extraordinary acts of 
          bravery, heroism, and achievement......................   738
        Department of Labor Transitional Assistance Program......   738
        Entrepreneurial service members empowerment task force...   740
        Funeral ceremonies for veterans..........................   740
Title VI--Compensation and Other Personnel Benefits..............   741
    Subtitle A--Pay and Allowances...............................   741
        Fiscal year 2007 increase in military basic pay and 
          reform of basic pay rates (sec. 601)...................   741
        Increase in maximum rate of basic pay for general and 
          flag officer grades to conform to increase in pay cap 
          for Senior Executive Service personnel (sec. 602)......   741
        One-year extension of prohibition against requiring 
          certain injured members to pay for meals provided by 
          military treatment facilities (sec. 603)...............   741
        Availability of second basic allowance for housing for 
          certain reserve component or retired members serving in 
          support of contingency operations (sec. 604)...........   742
        Extension of temporary continuation of housing allowance 
          for dependents of members dying on active duty to 
          spouses who are also members (sec. 605)................   742
        Payment of full premium for coverage under 
          Servicemembers' Group Life Insurance program during 
          service in Operation Enduring Freedom or Operation 
          Iraqi Freedom (sec. 606)...............................   742
        Clarification of effective date of prohibition on 
          compensation for correspondence courses (sec. 607).....   742
        Extension of pilot program on contributions to Thrift 
          Savings Plan for initial enlistees in the Army (sec. 
          608)...................................................   743
    Subtitle B--Bonuses and Special and Incentive Pays...........   743
        Extension of certain bonus and special pay authorities 
          for reserve forces (sec. 611)..........................   743
        Extension of certain bonus and special pay authorities 
          for health care professionals (sec. 612)...............   743
        Extension of special pay and bonus authorities for 
          nuclear officers (sec. 613)............................   744
        Extension of authorities relating to payment of other 
          bonuses and special pays (sec. 614)....................   744
        Expansion of eligibility of dental officers for 
          additional special pay (sec. 615)......................   744
        Increase in maximum annual rate of special pay for 
          Selected Reserve health care professionals in 
          critically short wartime specialties (sec. 616)........   744
        Expansion and enhancement of accession bonus authorities 
          for certain officers in health care specialties (sec. 
          617)...................................................   745
        Authority to provide lump sum payment of nuclear officer 
          incentive pay (sec. 618)...............................   745
        Increase in maximum amount of nuclear career accession 
          bonus (sec. 619).......................................   745
        Increase in maximum amount of incentive bonus for 
          transfer between Armed Forces (sec. 620)...............   745
        Additional authorities and incentives to encourage 
          retired members and reserve component members to 
          volunteer to serve on active duty in high-demand, low-
          density assignments (sec. 621).........................   745
        Accession bonus for members of the Armed Forces appointed 
          as commissioned officers after completing officer 
          candidate school (sec. 622)............................   746
        Modification of certain authorities applicable to the 
          targeted shaping of the Armed Forces (sec. 623)........   746
        Enhancement of bonus to encourage certain persons to 
          refer other persons for enlistment in the Army (sec. 
          624)...................................................   747
    Subtitle C--Travel and Transportation Allowances.............   747
        Travel and transportation allowances for transportation 
          of family members incident to illness or injury of 
          members (sec. 631).....................................   747
    Subtitle D--Retired Pay and Survivor Benefits................   747
        Retired pay of general and flag officers to be based on 
          rates of basic pay provided by law (sec. 641)..........   747
        Inapplicability of retired pay multiplier maximum 
          percentage to service of members of the Armed Forces in 
          excess of 30 years (sec. 642)..........................   748
        Military Survivor Benefit Plan beneficiaries under 
          insurable interest coverage (sec. 643).................   748
        Modification of eligibility for commencement of authority 
          for optional annuities for dependents under the 
          Survivor Benefit Plan (sec. 644).......................   748
        Study of training costs, manning, operations tempo, and 
          other factors that affect retention of members of the 
          Armed Forces with special operations designations (sec. 
          645)...................................................   748
    Subtitle E--Commissary and Nonappropriated Fund 
      Instrumentality Benefits...................................   749
        Treatment of price surcharges of certain merchandise sold 
          at commissary stores (sec. 661)........................   749
        Limitations on lease of non-excess Department of Defense 
          property for protection of morale, welfare, and 
          recreation activities and revenue (sec. 662)...........   749
        Report on cost effectiveness of purchasing commercial 
          insurance for commissary and exchange facilities and 
          facilities of other morale, welfare, and recreation 
          programs and nonappropriated fund instrumentalities 
          (sec. 663).............................................   750
        Study and report regarding access of disabled persons to 
          morale, welfare, and recreation facilities and 
          activities (sec. 664)..................................   750
    Subtitle F--Other Matters....................................   750
        Limitations on terms of consumer credit extended to 
          servicemembers and dependents (sec. 670)...............   750
        Exception for notice to consumer reporting agencies 
          regarding debts or erroneous payments pending a 
          decision to waive, remit, or cancel (sec. 672).........   751
        Expansion and enhancement of authority to remit or cancel 
          indebtedness of members and former members of the Armed 
          Forces incurred on active duty (sec. 673)..............   752
        Phased recovery of overpayments of pay made to members of 
          the uniformed services (sec. 674)......................   752
        Joint family support assistance program (sec. 675).......   753
        Special working group on transition to civilian 
          employment of National Guard and Reserve members 
          returning from deployment in Operation Iraqi Freedom or 
          Operation Enduring Freedom (sec. 676)..................   753
        Audit of pay accounts of members of the Army evacuated 
          from a combat zone for inpatient care (sec. 677).......   753
        Report on eligibility and provision of assignment 
          incentive pay (sec. 678)...............................   754
        Sense of Congress calling for payment to World War II 
          veterans who survived Bataan Death March (sec. 679)....   754
    Legislative Provisions Not Adopted...........................   755
        Authority to pay costs associated with delivery of motor 
          vehicle to storage location selected by member and 
          subsequent removal of vehicle..........................   755
        Transportation of additional motor vehicle of members on 
          change of permanent station to or from nonforeign areas 
          outside the continental United States..................   755
        Retroactive payment of additional death gratuity for 
          certain members not previously covered.................   755
        Repeal of requirement of reduction of Survivor Benefit 
          Plan survivor annuities by dependency and indemnity 
          compensation...........................................   755
        Effective date of paid-up coverage under Survivor Benefit 
          Plan...................................................   755
        Equity in computation of disability retired pay for 
          reserve component members wounded in action............   756
        Expansion of conditions for direct payment of divisible 
          retired pay............................................   756
        Authority for cost of living adjustments of retired pay 
          treated as divisible property..........................   756
        Notice and copy to members of court orders on payment of 
          retired pay............................................   757
        Renaming of death gratuity payable for deaths of members 
          of the Armed Forces as fallen hero compensation........   757
        Effective date of termination of phase-in of concurrent 
          receipt for veterans with service-connected 
          disabilities rated as total by virtue of 
          unemployability........................................   757
        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..........   757
        Use of nonappropriated funds to supplement or replace 
          appropriated funds for construction of facilities of 
          exchange stores system or other nonappropriated fund 
          instrumentalities, military lodging facilities, and 
          community facilities...................................   758
        Pilot program on Troops to Nurse Teachers................   758
        Short title..............................................   759
        Office for employers and employment assistance 
          organizations..........................................   759
        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.........................   759
Title VII--Health Care Provisions................................   759
    Subtitle A--TRICARE Program Improvements.....................   759
        TRICARE coverage for forensic examination following 
          sexual assault or domestic violence (sec. 701).........   759
        Authorization of anesthesia and other costs for dental 
          care for children and certain other patients (sec. 702)   760
        Improvements to descriptions of cancer screening for 
          women (sec. 703).......................................   760
        Prohibition on increases in certain health care costs for 
          members of the uniformed services (sec. 704)...........   760
        Demonstration project on coverage of selected over-the-
          counter drugs under the pharmacy benefits program (sec. 
          705)...................................................   760
        Expanded eligibility of Selected Reserve members under 
          TRICARE program (sec. 706).............................   761
        Relationship between the TRICARE program and employer-
          sponsored group health care plans (sec. 707)...........   761
    Subtitle B--Studies and Reports..............................   762
        Department of Defense task force on the future of 
          military health care (sec. 711)........................   762
        Study relating to chiropractic health care services (sec. 
          712)...................................................   763
        Comptroller General audits of Department of Defense 
          health care costs and cost-saving measures (sec. 713)..   763
        Transfer of custody of the Air Force Health Study assets 
          to Medical Follow-up Agency (sec. 714).................   763
        Study on allowing dependents of activated members of 
          reserve components to retain civilian health care 
          coverage (sec. 715)....................................   764
        Study of health effects of exposure to depleted uranium 
          (sec. 716).............................................   764
        Report and plan on services to military dependent 
          children with autism (sec. 717)........................   764
        Comptroller General study on Department of Defense 
          pharmacy benefits program (sec. 718)...................   765
        Review of Department of Defense medical quality 
          improvement program (sec. 719).........................   765
        Report on distribution of hemostatic agents for use in 
          the field (sec. 720)...................................   765
        Longitudinal study on traumatic brain injury incurred by 
          members of the Armed Forces in Operation Iraqi Freedom 
          and Operation Enduring Freedom (sec. 721)..............   765
    Subtitle C--Planning, Programming, and Management............   766
        Standardization of claims processing under TRICARE 
          program and Medicare program (sec. 731)................   766
        Requirements for support of military treatment facilities 
          by civilian contractors under TRICARE (sec. 732).......   766
        Standards and tracking of access to health care services 
          for wounded, injured, or ill servicemembers returning 
          to the United States from a combat zone (sec. 733).....   766
        Disease and chronic care management (sec. 734)...........   767
        Additional elements of assessment of Department of 
          Defense task force on mental health relating to mental 
          health of members who were deployed in Operation Iraqi 
          Freedom and Operation Enduring Freedom (sec. 735)......   767
        Additional authorized option periods for extension of 
          current contracts under TRICARE (sec. 736).............   768
        Military vaccination matters (sec. 737)..................   768
        Enhanced mental health screening services for members of 
          the Armed Forces (sec. 738)............................   769
    Subtitle D--Other Matters....................................   769
        Pilot projects on early diagnosis and treatment of post 
          traumatic stress disorder and other mental health 
          conditions (sec. 741)..................................   769
        Requirement to certify and report on conversion of 
          military medical and dental positions to civilian 
          medical and dental positions (sec. 742)................   770
        Three-year extension of joint incentives program on 
          sharing of health care resources by the Department of 
          Defense and Department of Veterans Affairs (sec. 743)..   770
        Training curricula for family caregivers on care and 
          assistance for members and former members of the Armed 
          Forces with traumatic brain injury (sec. 744)..........   771
    Legislative Provisions Not Adopted...........................   771
        Annual reports on certain medical malpractice cases......   774
        Costs of incentive payments to employees for TRICARE 
          enrollment made unallowable for contractors............   772
        Enrollment in the TRICARE program........................   772
        Incentive payments for the provision of services under 
          the TRICARE program in medically underserved areas.....   773
        Inflation adjustment of differential payments to 
          children's hospitals participating in TRICARE program..   772
        Post deployment health assessments for members of the 
          Armed Forces returning from deployment in support of a 
          contingency operation..................................   773
        Requirement to reimburse certain travel expenses of 
          certain beneficiaries covered by TRICARE for Life......   771
        Services of mental health counselors.....................   771
        Treatment of TRICARE retail pharmacy network under 
          Federal procurement of pharmaceuticals.................   772
Title VIII--Acquisition Policy, Acquisition Management, and 
  Related Matters................................................   774
    Subtitle A--Provisions Relating to Major Defense Acquisition 
      Programs...................................................   774
        Requirements management certification training program 
          (sec. 801).............................................   774
        Additional requirements relating to technical data rights 
          (sec. 802).............................................   775
        Study and report on revisions to Selected Acquisition 
          Report requirements (sec. 803).........................   775
        Biannual updates on implementation of acquisition reform 
          in the Department of Defense (sec. 804)................   776
        Additional certification requirements for major defense 
          acquisition programs before proceeding to Milestone B 
          (sec. 805).............................................   776
        Original baseline estimate for major defense acquisition 
          programs (sec. 806)....................................   776
        Lead system integrators (sec. 807).......................   776
    Subtitle B--Acquisition Policy and Management................   777
        Time-certain development for Department of Defense 
          information technology business systems (sec. 811).....   777
        Pilot program on time-certain development in acquisition 
          of major weapon systems (sec. 812).....................   777
        Establishment of Panel on Contracting Integrity (sec. 
          813)...................................................   777
        Linking of award and incentive fees to acquisition 
          outcomes (sec. 814)....................................   778
        Report on defense instruction relating to contractor 
          personnel authorized to accompany Armed Forces (sec. 
          815)...................................................   778
        Major automated information system program (sec. 816)....   779
        Internal controls for procurements on behalf of the 
          Department of Defense by certain non-defense agencies 
          (sec. 817).............................................   779
        Determination of contract type for development programs 
          (sec. 818).............................................   779
        Three-year extension of requirement for reports on 
          commercial price trend analyses of the Department of 
          Defense (sec. 819).....................................   780
        Government performance of critical acquisition functions 
          (sec. 820).............................................   780
    Subtitle C--Amendments to General Contracting Authorities, 
      Procedures, and Limitations................................   780
        One-year extension of special temporary contract closeout 
          authority (sec. 831)...................................   780
        Limitation on contracts for the acquisition of certain 
          services (sec. 832)....................................   780
        Use of Federal supply schedules by State and local 
          governments for goods and services for recovery from 
          natural disasters, terrorism, or nuclear, biological, 
          chemical, or radiological attack (sec. 833)............   781
        Waivers to extend task order contracts for advisory and 
          assistance services (sec. 834).........................   781
    Subtitle D--United States Defense Industrial Base Provisions.   782
        Assessment and annual report of United States defense 
          industrial base capabilities and acquisitions of 
          articles, materials, and supplies manufactured outside 
          the United States (sec. 841)...........................   782
        Protection of strategic materials critical to national 
          security (sec. 842)....................................   782
        Strategic Materials Protection Board (sec. 843)..........   782
    Subtitle E--Other Matters....................................   783
        Report on former Department of Defense officials employed 
          by contractors of the Department of Defense (sec. 851).   783
        Report and regulations on excessive pass-through charges 
          (sec. 852).............................................   783
        Program manager empowerment and accountability (sec. 853)   784
        Joint policies on requirements definition, contingency 
          program management, and contingency contracting (sec. 
          854)...................................................   785
        Clarification of authority to carry out certain prototype 
          projects (sec. 855)....................................   786
        Contracting with employers of persons with disabilities 
          (sec. 856).............................................   786
        Enhanced access for small business (sec. 857)............   786
        Procurement goal for Hispanic-serving institutions (sec. 
          858)...................................................   786
    Legislative Provisions Not Adopted...........................   787
        Adjustment of original baseline estimates for major 
          defense acquisition program experiencing cost growth 
          resulting from damage caused by hurricanes Katrina, 
          Rita, and Wilma........................................   787
        Availability of funds for performance-based logistics 
          contracts for weapons systems logistics support........   787
        Applicability of statutory executive compensation cap 
          made prospective.......................................   787
        Prohibition on procurement from beneficiaries of foreign 
          subsidies..............................................   787
        Removal of hand and measuring tools from certain 
          requirements...........................................   788
        Waiver authority for domestic source or content 
          requirements...........................................   788
        Repeal of requirement for identification of essential 
          military items and military system essential item 
          breakout list..........................................   788
        Consistency with United States obligations under trade 
          agreements.............................................   788
        Prohibition on defense contractors requiring licenses or 
          fees for use of military likenesses and designations...   788
        Report on Department of Defense contracting with 
          contractors or subcontractors employing members of the 
          Selected Reserve.......................................   789
        Pilot program on expanded use of Mentor-Protege authority   789
Title IX--Department of Defense Organization And Management......   790
    Subtitle A--Department of Defense Management.................   790
        Increase in authorized number of assistant secretaries of 
          defense (sec. 901).....................................   790
        Modifications to the Combatant Commander Initiative Fund 
          (sec. 902).............................................   791
        Addition to membership of specified council (sec. 903)...   792
        Consolidation and standardization of authorities relating 
          to Department of Defense Regional Centers for Security 
          Studies (sec. 904).....................................   792
        Oversight by Office of Under Secretary of Defense for 
          Acquisition, Technology, and Logistics of exercise of 
          acquisition authority by combatant commanders and heads 
          of Defense Agencies (sec. 905).........................   792
        Standardization of statutory references to ``national 
          security system'' within laws applicable to Department 
          of Defense (sec. 906)..................................   793
        Correction of reference to predecessor of Defense 
          Information Systems Agency (sec. 907)..................   793
    Subtitle B--Space Activities.................................   793
        Designation of successor organizations for the 
          disestablished Interagency Global Positioning Executive 
          Board (sec. 911).......................................   793
        Extension of authority for pilot program for provision of 
          space surveillance network services to non-United 
          States Government entities (sec. 912)..................   794
        Operationally responsive space (sec. 913)................   794
        Independent review and assessment of Department of 
          Defense organization and management for national 
          security in space (sec. 914)...........................   795
    Subtitle C--Chemical Demilitarization Program................   796
        Sense of Congress on completion of destruction of United 
          States chemical weapons stockpile (sec. 921)...........   796
        Comptroller General review of cost-benefit analysis of 
          off-site versus on-site treatment and disposal of 
          hydrolysate derived from neutralization of VX nerve gas 
          at Newport Chemical Depot, Indiana (sec. 922)..........   796
        Incentives clauses in chemical demilitarization contracts 
          (sec. 923).............................................   796
        Chemical demilitarization program contracting authority 
          (sec. 924).............................................   797
    Subtitle D--Intelligence-Related Matters.....................   797
        Four-year extension of authority of Secretary of Defense 
          to engage in commercial activities as security for 
          intelligence collection activities (sec. 931)..........   797
        Annual reports on intelligence oversight activities of 
          the Department of Defense (sec. 932)...................   798
        Collection by National Security Agency of service charges 
          for certification or validation of information 
          assurance products (sec. 933)..........................   798
    Subtitle E--Other Matters....................................   798
        Department of Defense policy on unmanned systems (sec. 
          941)...................................................   798
        Executive Schedule level IV for Deputy Under Secretary of 
          Defense for Logistics and Materiel Readiness (sec. 942)   799
        Study and report on reform of Defense Travel System (sec. 
          943)...................................................   799
        Administration of pilot project on Civilian Linguist 
          Reserve Corps (sec. 944)...............................   799
        Improvement of authorities on the National Security 
          Education Program (sec. 945)...........................   799
        Report on the posture of the United States Special 
          Operations Command to conduct the global war on 
          terrorism (sec. 946)...................................   800
    Legislative Provisions Not Adopted...........................   800
        United States Military Cancer Institute..................   800
        Military deputies to the assistant secretaries of the 
          military departments for acquisition, logistics, and 
          technology matters.....................................   800
        Redesignation of the Department of the Navy as the 
          Department of the Navy and Marine Corps................   801
        Transfer to Secretary of the Army of responsibility for 
          Assembled Chemical Weapons Alternatives program........   801
        Sense of Congress regarding the safe and expeditious 
          disposal of chemical weapons...........................   801
        Sense of Senate on nomination of individual to serve as 
          Director of Operational Test and Evaluation on a 
          permanent basis........................................   801
        Inclusion of homeland defense and civil support missions 
          of the National Guard and Reserves in the Quadrennial 
          Defense Review.........................................   801
Title X--General Provisions......................................   802
    Item of Special Interest.....................................   802
        Vietnam conflict.........................................   802
        Subtitle A--Financial Matters............................   802
        General transfer authority (sec. 1001)...................   802
        Authorization of additional emergency supplemental 
          appropriations for fiscal year 2006 (sec. 1002)........   803
        Reduction in certain authorizations due to savings 
          relating to lower inflation (sec. 1003)................   803
        Increase in fiscal year 2006 general transfer authority 
          (sec. 1004)............................................   803
        United States contribution to NATO common-funded budgets 
          in fiscal year 2007 (sec. 1005)........................   803
        Report on budgeting for fluctuations in fuel cost rates 
          (sec. 1006)............................................   804
        Modification of date of submittal of OMB/CBO report on 
          scoring of outlays (sec. 1007).........................   804
        Budgeting for ongoing military operations in Afghanistan 
          and Iraq (sec. 1008)...................................   804
    Subtitle B--Policy Relating to Vessels and Shipyards.........   804
        Aircraft carrier force structure (sec. 1011).............   804
        Sense of Congress on naming the CVN-78 aircraft carrier 
          as the USS Gerald R. Ford (sec. 1012)..................   806
        Transfer of naval vessels to foreign nations based upon 
          vessel class (sec. 1013)...............................   806
        Overhaul, repair, and maintenance of vessels in foreign 
          shipyards (sec. 1014)..................................   806
        Report on options for future lease arrangement for Guam 
          Shipyard (sec. 1015)...................................   806
        Assessments of naval vessel construction efficiencies and 
          of effectiveness of special contractor incentives (sec. 
          1016)..................................................   806
        Obtaining carriage by vessel: criterion regarding 
          overhaul, repair, and maintenance of vessels in the 
          United States (sec. 1017)..............................   807
        Riding gang member requirements (sec. 1018)..............   808
        Authority to transfer SS Arthur M. Huddell to the 
          Government of Greece (sec. 1019).......................   809
    Subtitle C--Counter Drug Activities..........................   809
        Extension of authority of Department of Defense to 
          provide additional support for counterdrug activities 
          of other governmental agencies (sec. 1021).............   809
        Extension and expansion of Department of Defense 
          authority to provide support for counter-drug 
          activities of certain foreign governments (sec. 1022)..   809
        Extension of authority to support unified counterdrug and 
          counterterrorism campaign in Colombia (sec. 1023)......   810
        Continuation of reporting requirement regarding 
          Department of Defense expenditures to support foreign 
          counter drug activities (sec. 1024)....................   810
        Report on interagency counter-narcotics plan for 
          Afghanistan and South and Central Asian regions (sec. 
          1025)..................................................   810
        Report on United States support for Operation Bahamas, 
          Turks & Caicos (sec. 1026).............................   810
    Subtitle D--Force Structure and Defense Policy Matters.......   811
        Improvements to Quadrennial Defense Review (sec. 1031)...   811
        Quarterly reports on implementation of 2006 Quadrennial 
          Defense Review Report (sec. 1032)......................   811
        Report on feasibility of establishing a regional 
          combatant command for Africa (sec. 1033)...............   811
        Determination of Department of Defense intratheater and 
          intertheater airlift requirements and sealift mobility 
          requirements (sec. 1034)...............................   811
        Presidential report on improving interagency support for 
          United States 21st century national security missions 
          and interagency operations in support of stability, 
          security, transition, and reconstruction operations 
          (sec. 1035)............................................   812
    Subtitle E--Reports..........................................   813
        Additional element in annual report on chemical and 
          biological warfare defense (sec. 1041).................   813
        Report on biodefense human capital requirements in 
          support of biosafety laboratories (sec. 1042)..........   813
        Report on technologies for neutralizing or defeating 
          threats to military rotary-wing aircraft from portable 
          air defense systems and rocket-propelled grenades (sec. 
          1043)..................................................   814
        Reports on expanded use of unmanned aerial vehicles in 
          the National Airspace System (sec. 1044)...............   814
        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. 1045)....   814
        Repeal of certain report requirements (sec. 1046)........   815
        Requirement for identification of recently enacted 
          recurring reporting requirements applicable to the 
          Department of Defense (sec. 1047)......................   815
    Subtitle F--Miscellaneous Authorities and Limitations on 
      Availability and Use of Funds..............................   816
        Acceptance and retention of reimbursement from non-
          Federal sources to defray Department of Defense costs 
          of conferences (sec. 1051).............................   816
        Increased flexibility in use of funds for Joint Staff 
          exercises (sec. 1052)..................................   816
        Prohibition on parking of funds (sec. 1053)..............   816
        Modification of authorities relating to the Special 
          Inspector General for Iraq Reconstruction (sec. 1054)..   817
    Subtitle G--Matters Involving Detainees......................   817
        Provision of information to Congress on certain criminal 
          investigations and prosecutions involving detainees 
          (sec. 1061)............................................   817
    Subtitle H--Other Matters....................................   818
        Technical and clerical amendments (sec. 1071)............   818
        Revision to authorities relating to Commission on the 
          Implementation of the New Strategic Posture of the 
          United States (sec. 1072)..............................   818
        Revised deadline for submission of final report of EMP 
          Commission (sec. 1073).................................   818
        Patent term extensions for the badges of the American 
          Legion, the American Legion Women's Auxiliary, and the 
          Sons of the American Legion (sec. 1075)................   819
        Use of the Armed Forces in major public emergencies (sec. 
          1076)..................................................   819
    Legislative Provision Not Adopted............................   820
        Sense of the Senate on the Transformational Medical 
          Technology Initiative..................................   820
        Incorporation of classified annex........................   821
        Reports to Congress and notice to public on earmarks in 
          funds available to the Department of Defense...........   821
        Transfer of operational control of certain Patrol Coastal 
          ships to Coast Guard...................................   821
        Limitation on leasing of foreign-built vessels...........   822
        Restatement in title 10, United States Code, and revision 
          of Department of Defense authority to provide for 
          support for counterdrug activities of Federal, State, 
          local, and foreign law enforcement.....................   822
        Restatement in title 10, United States Code, and revision 
          of Department of Defense authority to provide for 
          support for counterdrug activities of certain foreign 
          governments............................................   822
        Assignment of members of the Armed Forces to assist 
          Bureau of Customs and Border Protection and United 
          States Immigration and Customs Enforcement.............   822
        Funding for a certain intelligence program...............   823
        Temporary National Guard support for securing the 
          southern land border of the United States..............   823
        Minimum annual purchase amounts for airlift from carriers 
          participating in the Civil Reserve Air Fleet...........   823
        Report on clarification of prohibition on cruel, inhuman, 
          and degrading treatment or punishment..................   824
        Reports on Department of Justice efforts to investigate 
          and prosecute cases of contracting abuse in Iraq, 
          Afghanistan, and throughout the war on terror..........   824
        National Foreign Language Coordination Council...........   824
        Court security improvements..............................   824
        Improved accountability for competitive contracting in 
          hurricane recovery.....................................   825
        Protection of certain disclosures of information by 
          Federal employees......................................   825
        Sense of Congress regarding the men and women of the 
          Armed Forces of the United States in Iraq..............   826
        Limitation on United States share of assessments for 
          United Nations peacekeeping operations.................   826
        Termination of program...................................   826
Title XI--Civilian Personnel Matters.............................   826
    Legislative Provisions Adopted...............................   826
        Accrual of annual leave for members of the uniformed 
          services performing dual employment (sec. 1101)........   826
        Strategy for improving the senior management, functional, 
          and technical workforce of the Department of Defense 
          (sec. 1102)............................................   826
        Three-year extension of authority for experimental 
          personnel management program for scientific and 
          technical personnel (sec. 1103)........................   827
        Reports on members of the Armed Forces and civilian 
          employees of the Department of Defense serving in the 
          legislative branch (sec. 1104).........................   827
        Extension of authority to waive annual limitation on 
          total compensation paid to Federal civilian employees 
          (sec. 1105)............................................   827
    Legislative Provisions Not Adopted...........................   828
        Death gratuity authorized for federal employees..........   828
        Programs for use of leave by caregivers for family 
          members of individuals performing certain military 
          service................................................   829
Title XII--Matters Relating to Foreign Nations...................   829
    Subtitle A--Assistance and Training..........................   829
        Logistic support for allied forces participating in 
          combined operations (sec. 1201)........................   829
        Temporary authority to use acquisition and cross-
          servicing agreements to lend certain military equipment 
          to foreign forces in Iraq and Afghanistan for personnel 
          protection and survivability (sec. 1202)...............   830
        Recodification and revision to law relating to Department 
          of Defense humanitarian demining assistance (sec. 1203)   831
        Enhancements to Regional Defense Combating Terrorism 
          Fellowship Program (sec. 1204).........................   832
        Participation of the Department of Defense in 
          multinational military centers of excellence (sec. 
          1205)..................................................   832
        Modification and extension of authorities relating to 
          program to build the capacity of foreign military 
          forces (sec. 1206).....................................   833
        Authority for distribution to certain foreign personnel 
          of education and training materials and information 
          technology to enhance military interoperability (sec. 
          1207)..................................................   834
    Subtitle B--Nonproliferation Matters and Countries of Concern   835
        North Korea (sec. 1211)..................................   835
        Report on participation of multinational partners in the 
          United Nations Command in the Republic of Korea (sec. 
          1212)..................................................   835
        Intelligence on Iran (sec. 1213).........................   835
        Sense of Congress on United States policy on the nuclear 
          programs of Iran (sec. 1214)...........................   836
Title XIII--Cooperative Threat Reduction With States of the 
  Former Soviet Union............................................   841
        Specification of Cooperative Threat Reduction programs 
          and funds (sec. 1301)..................................   841
        Funding allocations (sec. 1302)..........................   842
        Extension of temporary authority to waive limitation on 
          funding for chemical weapons destruction facility in 
          Russia (sec. 1303).....................................   842
        National Academy of Sciences study of prevention of 
          proliferation of biological weapons (sec. 1304)........   842
    Legislative Provision Not Adopted............................   843
        Removal of certain restrictions on provision of 
          Cooperative Threat Reduction assistance................   843
Title XIV--Matters Related to Defense Against Terrorism and 
  Related Security Matters.......................................   843
    Legislative Provisions Adopted...............................   843
        Enhancement to authority to pay rewards for assistance in 
          combating terrorism (sec. 1401)........................   843
        Quarterly reports on Department of Defense response to 
          threat posed by improvised explosive devices (sec. 
          1402)..................................................   844
        Requirement that all military wheeled vehicles used in 
          Iraq and Afghanistan outside of secure military 
          operating bases be protected by Improvised Explosive 
          Device (IED) jammers (sec. 1403).......................   844
        Report on assessment process of Chairman of the Joint 
          Chiefs of Staff relating to Global War on Terrorism 
          (sec. 1404)............................................   845
        Treatment under Freedom of Information Act of certain 
          confidential information shared with State and local 
          personnel (sec. 1405)..................................   845
        Database of emergency response capabilities (sec. 1406)..   845
    Legislative Provision Not Adopted............................   845
        Homeland defense technology transfer.....................   845
Title XV--Authorization for Increased Costs Due to Operation 
  IRAQI Freedom and Operation Enduring Freedom...................   846
        Overview.................................................   846
        Summary table of authorization...........................   846
    Legislative Provisions Adopted...............................   879
        Purpose (sec. 1501)......................................   879
        Army Procurement (sec. 1502).............................   879
        Navy and Marine Corps procurement (sec. 1503)............   879
        Air Force procurement (sec. 1504)........................   879
        Defense-wide activities procurement (sec. 1505)..........   879
        Research, development, test and evaluation (sec. 1506)...   880
        Operation and maintenance (sec. 1507)....................   880
        Defense Health Program (sec. 1508).......................   880
        Classified programs (sec. 1509)..........................   880
        Military personnel (sec. 1510)...........................   881
        Treatment as additional authorizations (sec. 1511).......   881
        Transfer authority (sec. 1512)...........................   881
        Availability of funds (sec. 1513)........................   881
        Joint Improvised Explosive Device Defeat Fund (sec. 1514)   881
        Iraq Freedom Fund (sec. 1515)............................   881
        Iraq Security Forces Fund (sec. 1516)....................   882
        Afghanistan Security Forces Fund (sec. 1517).............   882
        Submittal to Congress of Department of Defense 
          supplemental and cost of war execution reports (sec. 
          1518)..................................................   882
        Limitation on availability of funds for certain purposes 
          relating to Iraq (sec. 1519)...........................   882
        Intelligence Community Management Account (sec. 1520)....   883
DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS.................   883
    Budget Items.................................................   883
        Explanation of funding table.............................   883
        2005 Defense Base Closure and Realignment accounts 
          authorized for appropriations in 2006..................   906
        2005 Defense Base Closure and Realignment accounts.......   909
    Legislative Provisions Adopted...............................   916
        Short title (sec. 2001)..................................   916
        Recognition of Representative Joel Hefley upon his 
          retirement from the House of Representatives (sec. 
          2002)..................................................   916
Title XXI--Army..................................................   916
    Budget Item..................................................   916
        Overview.................................................   916
        Authorized Army construction and land acquisition 
          projects (sec. 2101)...................................   917
        Family housing (sec. 2102)...............................   917
        Improvements to military family housing units (sec. 2103)   918
        Authorization of appropriations, Army (sec. 2104)........   918
    Items of Special Interest....................................   918
        Impact of 2005 Defense Base Closure and Realignment 
          decisions to the transportation infrastructure in 
          Northern Virginia......................................   918
        Request for data related to unaccompanied housing 
          requirements in the Department of the Army.............   919
Title XXII--Navy.................................................   920
    Budget Item..................................................   920
        Overview.................................................   920
    Legislative Provisions Adopted...............................   920
        Authorized Navy construction and land acquisition 
          projects (sec. 2201)...................................   920
        Family housing (sec. 2202)...............................   921
        Improvements to military family housing units (sec. 2203)   921
        Authorization of appropriations, Navy (sec. 2204)........   921
        Modification of authority to carry out certain fiscal 
          year 2004, 2005, and 2006 projects (sec. 2205).........   921
Title XXIII--Air Force...........................................   922
    Budget Item..................................................   922
        Overview.................................................   922
    Legislative Provisions Adopted...............................   923
        Authorized Air Force construction and land acquisition 
          projects (sec. 2301)...................................   923
        Family housing (sec. 2302)...............................   923
        Improvements to military family housing units (sec. 2303)   923
        Authorization of appropriations, Air Force (sec. 2304)...   924
        Modification of authority to carry out certain fiscal 
          year 2006 project (sec. 2305)..........................   924
    Item of Special Interest.....................................   924
        Military construction project for Phase 1 of a Basic 
          Expeditionary Airman Skill Training Campus at Lackland 
          Air Force Base, Texas..................................   924
Title XXIV--Defense Agencies.....................................   925
    Budget Item..................................................   925
        Overview.................................................   925
    Legislative Provisions Adopted...............................   925
        Authorized Defense Agencies construction and land 
          acquisition projects (sec. 2401).......................   925
        Family housing (sec. 2402)...............................   926
        Energy conservation projects (sec. 2403).................   926
        Authorized base closure and realignment activities funded 
          through Department of Defense Base Closure Account 2005 
          (sec. 2404)............................................   926
        Authorization of appropriations, Defense Agencies (sec. 
          2405)..................................................   926
        Modification of authority to carry out certain fiscal 
          year 2006 project (sec. 2406)..........................   926
Title XXV--North Atlantic Treaty Organization Security Investment 
  Program........................................................   927
        Budget Item..............................................   927
Title XXVI--Guard and Reserve Forces Facilities..................   928
    Budget Item..................................................   928
        Overview.................................................   928
    Legislative Provision Adopted................................   928
        Authorized Guard and Reserve construction and land 
          acquisition projects (sec. 2601........................   928
TItle XXVII--Expiration and Extension of Authorizations..........   928
    Legislative Provisions Adopted...............................   928
        Expiration of authorizations and amounts required to be 
          specified by law (sec. 2701)...........................   928
        Extension of authorizations of certain fiscal year 2004 
          projects (sec. 2702)...................................   929
        Extension of authorizations of certain fiscal year 2003 
          projects (sec. 2703)...................................   929
        Effective date (sec. 2704)...............................   929
Title XXVIII--Military Construction General Provisions...........   929
    Items of Special Interest....................................   929
        Incremental funding of military construction projects....   929
        Updating foreign currency fluctuation adjustment for 
          certain military family housing leases in Korea........   930
    Subtitle A--Military Construction Program and Military Family 
      Housing Changes............................................   931
        Legislative Provisions Adopted...........................   931
        Increase in maximum annual amount authorized to be 
          obligated for emergency military construction (sec. 
          2801)..................................................   931
        One-year extension of temporary, limited authority to use 
          operation and maintenance funds for construction 
          projects outside the United States (sec. 2802).........   931
        Repeal of requirement to determine availability of 
          suitable alternative housing for acquisition in lieu of 
          construction of new family housing (sec. 2803).........   931
        Authority to continue to occupy leased family housing for 
          United States Southern Command personnel (sec. 2804)...   932
        Consideration of alternative and more efficient uses for 
          general officer and flag officer quarters in excess of 
          6,000 square feet (sec. 2805)..........................   932
        Modification of notification requirements related to cost 
          variation authority (sec. 2806)........................   932
        Consideration of local comparability of floor areas in 
          construction, acquisition, and improvement to military 
          unaccompanied housing (sec. 2807)......................   932
        Certification required for military construction projects 
          for facilities designed to provide training in urban 
          operations (sec. 2808).................................   932
        Authority to carry out military construction projects in 
          connection with industrial facility investment program 
          (sec. 2809)............................................   933
        Repeal of special requirement for military construction 
          contracts on Guam (sec. 2810)..........................   933
        Temporary expansion of authority to convey property at 
          military installations to support military construction 
          (sec. 2811)............................................   934
        Pilot projects for acquisition or construction of 
          military unaccompanied housing (sec. 2812).............   934
    Subtitle B--Real Property and Facilities Administration......   934
        Congressional notice requirements, in advance of 
          acquisition of land by condemnation for military 
          purposes (sec. 2821)...................................   934
        Consolidation of Department of Defense authorities 
          regarding granting of easements for rights-of-way (sec. 
          2822)..................................................   935
        Authority to grant restrictive easements for conservation 
          purposes in connection with land conveyances (sec. 
          2823)..................................................   935
        Maximum term of leases for structures and real property 
          relating to structures in foreign countries needed for 
          purposes other than family housing (sec. 2824).........   935
        Consolidation of laws relating to transfer of Department 
          of Defense real property within the Department of 
          Defense and to other Federal agencies (sec. 2825)......   935
        Defense access road program (sec. 2826)..................   936
        Reports on Army operational ranges (sec. 2827)...........   936
    Subtitle C--Base Closure and Realignment.....................   936
        Modification of deposit requirements in connection with 
          lease proceeds received at military installations 
          approved for closure or realignment after January 1, 
          2005 (sec. 2831).......................................   936
        Report on Air Force and Air National Guard bases affected 
          by 2005 round of defense base closure and Realignment 
          (sec. 2832)............................................   936
    Subtitle D--Land Conveyances.................................   937
        Conveyance of easement, Pine Bluff Arsenal, Arkansas 
          (sec. 2841)............................................   937
        Modification of land transfer authority, Potomac Annex, 
          District of Columbia (sec. 2842).......................   937
        Land conveyance, Naval Air Station, Barbers Point, Hawaii 
          (sec. 2843)............................................   937
        Land conveyances, Omaha, Nebraska (sec. 2844)............   937
        Land conveyance, Hopkinton, New Hampshire (sec. 2845)....   938
        Land conveyance, North Hills Army Reserve Center, Allison 
          Park, Pennsylvania (sec. 2846).........................   938
        Transfer of jurisdiction, Fort Jackson, South Carolina 
          (sec. 2847)............................................   938
        Sense of Congress regarding land conveyance involving 
          Army Reserve Center, Marshall, Texas (sec. 2848).......   938
        Modifications to land conveyance authority, Engineering 
          Proving Grounds, Fort Belvoir, Virginia (sec. 2849)....   939
        Land conveyance, Radford Army Ammunition Plant, New River 
          Unit, Virginia (sec. 2850).............................   939
    Subtitle E--Energy Security..................................   939
        Consolidation and enhancement of laws to improve 
          Department of Defense energy efficiency and 
          conservation (sec. 2851)...............................   939
        Department of Defense goal regarding use of renewable 
          energy to meet electricity needs (sec. 2852)...........   940
        Congressional notification of cancellation ceiling for 
          Department of Defense energy savings performance 
          contracts (sec. 2853)..................................   940
        Use of energy efficiency products in new construction 
          (sec. 2854)............................................   940
    Subtitle F--Other Matters....................................   940
        Availability of research and technical assistance under 
          Defense Economic Adjustment Program (sec. 2861)........   940
        Availability of community planning assistance relating to 
          encroachment of civilian communities on military 
          facilities used for training by the armed forces (sec. 
          2862)..................................................   940
        Prohibitions against making certain military airfields or 
          facilities available for use by civil aircraft (sec. 
          2863)..................................................   941
        Modification of certain transportation projects (sec. 
          2864)..................................................   941
        Availability of funds for South County Commuter Rail 
          project, Providence, Rhode Island (sec. 2865)..........   941
        Fox Point hurricane barrier, Providence, Rhode Island 
          (sec. 2866)............................................   941
        Federal funding for fixed guideway projects (sec. 2867)..   941
        Feasibility study regarding use of General Services 
          Administration property for Fort Belvoir, Virginia, 
          realignment (sec. 2868)................................   942
    Legislative Provisions Not Adopted...........................   942
        Authority to use proceeds from sale of military family 
          housing to support military housing privatization 
          initiative.............................................   942
        Limitations on availability of funds for Waste Treatment 
          and Immobilization Plant (sec. 3120)...................   971
        Report on Russian Surplus Fissile Materials Disposition 
          Program (sec. 3121)....................................   972
        Limitation on availability of funds for construction of 
          MOX Fuel Fabrication Facility (sec. 3122)..............   974
        Education of future nuclear engineers (sec. 3123)........   975
        Technical correction related to authorization of 
          appropriations for fiscal year 2006 (sec. 3124)........   976
Title XXXII--Defense Nuclear Facilities Safety Board.............   976
    Legislative Provision Adopted Authorization (sec. 3201)......   976
Title XXXIII--National Defense Stockpile.........................   977
    Legislative Provisions Adopted Authorized uses of National 
      Defense Stockpile funds (sec. 3301)........................   977
        Revisions to required receipt objectives for previously 
          authorized disposals from National Defense Stockpile 
          (sec. 3302)............................................   977
Title XXXIV--Naval Petroleum Reserves............................   977
    Legislative Provision Adopted................................   977
        Authorization of appropriations (sec. 3401)..............   977
    Legislative Provision Not Adopted............................   977
        Completion of equity finalization process for Naval 
          Petroleum Reserve Numbered 1...........................   977
Title XXXV--Maritime Administration..............................   978
    Legislative Provisions Adopted...............................   978
        Authorization of appropriations for fiscal year 2007 
          (sec. 3501)............................................   978
        Amendments relating to the Maritime Security Fleet 
          program (sec. 3502)....................................   978
        Applicability to certain Maritime Administration vessels 
          of limitations on overhaul, repair, and maintenance of 
          vessels in foreign shipyards (sec. 3503)...............   979
        Vessel transfer authority (sec. 3504)....................   979
        United States Merchant Marine Academy graduates: service 
          requirements (sec. 3505)...............................   979
        United States Merchant Marine Academy graduates: service 
          obligation performance reporting requirement (sec. 
          3506)..................................................   979
        Temporary authority to transfer obsolete combatant 
          vessels to Navy for disposal (sec. 3507)...............   980
        Qualifying Reserve duty for receipt of student incentive 
          payments (sec. 3508)...................................   980
        Large passenger ship crew requirements (sec. 3509).......   980
        Miscellaneous Maritime Administration provisions (sec. 
          3510)..................................................   981
    Legislative Provision Not Adopted............................   981
        Temporary requirement to maintain Ready Reserve Force....   981
    Earmarks.....................................................   981
        Increase in thresholds for unspecified minor military 
          construction projects..................................   949
        Repeal of temporary minor military construction program..   943
        Updating foreign currency fluctuation adjustment for 
          certain military family housing leases in Korea........   943
        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...............   943
        Naming of administrative building at Joint Systems 
          Manufacturing Center in Lima, Ohio after Michael G. 
          Oxley, a member of the House of Representatives........   943
        Naming of military family housing facility at Fort 
          Carson, Colorado, in honor of Joel Hefley, a member of 
          the House of Representatives...........................   943
        Authority to use excess property as exchange under 
          agreements to limit encroachments on military training, 
          testing, and operations................................   944
        Modification of utility system authority and related 
          reporting requirements.................................   944
        Naming of Navy and Marine Corps Reserve Center at Rock 
          Island, Illinois, in honor of Lane Evans, a member of 
          the House of Representatives...........................   944
        Modification of land acquisition authority, Perquimans 
          County, North Carolina.................................   944
        Highway projects, Detroit, Michigan......................   945
DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS 
  AND OTHER AUTHORIZATIONS.......................................   945
Title XXXI--Department of Energy National Security Programs......   945
        Overview.................................................   945
    Legislative Provisions Adopted...............................   966
        National Nuclear Security Administration (sec. 3101).....   966
        Defense environmental cleanup (sec. 3102)................   967
        Other defense activities (sec. 3103).....................   967
        Defense nuclear waste disposal (sec. 3104)...............   967
    Subtitle B--Program Authorizations, Restrictions, and 
      Limitations................................................   968
        Plan for transformation of National Nuclear Security 
          Administration nuclear weapons complex (sec. 3111).....   968
        Extension of Facilities and Infrastructure 
          Recapitalization Program (sec. 3112)...................   968
        Utilization of contributions to Global Threat Reduction 
          Initiative (sec. 3113).................................   968
        Utilization of contributions to Second Line of Defense 
          program (sec. 3114)....................................   968
        Two-year extension of authority for appointment of 
          certain scientific, engineering, and technical 
          personnel (sec. 3115)..................................   969
        National Academy of Sciences study of quantification of 
          margins and uncertainty methodology for assessing and 
          certifying the safety and reliability of the nuclear 
          stockpile (sec. 3116)..................................   969
        Consolidation of counterintelligence programs of 
          Department of Energy and National Nuclear Security 
          Administration (sec. 3117).............................   969
        Notice-and-wait requirement applicable to certain third-
          party financing arrangements (sec. 3118)...............   971
        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. 3119)....................   971










109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-702

======================================================================



 
  JOHN WARNER NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2007

                                _______
                                

               September 29, 2006.--Ordered to be printed

                                _______
                                

 Mr. Hunter, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 5122]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
5122), to authorize appropriations for fiscal year 2007 for 
military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of 
Energy, to prescribe military personnel strengths for such 
fiscal year, and for other purposes, having met, after full and 
free conference, have agreed to recommend and do recommend to 
their respective Houses as follows:
      That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

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 Administrator 
        of the American Revolution Bicentennial Commission. In 
        this capacity, he coordinated the celebration of the 
        Nation's founding, directing the Federal role in all 50 
        States and in over 20 foreign nations.
            (8) Senator Warner has served as chairman of the 
        Committee on Armed Services of the United States Senate 
        from 1999 to 2001, and again since January 2003. He 
        served as ranking minority member of the committee from 
        1987 to 1993, and again from 2001 to 2003. Senator 
        Warner concludes his service as chairman at the end of 
        the 109th Congress, but will remain a member of the 
        committee.
            (9) This Act is the twenty-eighth annual 
        authorization Act for the Department of Defense for 
        which Senator Warner has taken a major responsibility 
        as a member of the Committee on Armed Services of the 
        United States Senate, and the fourteenth for which he 
        has exercised a leadership role as chairman or ranking 
        minority member of the committee.
            (10) Senator Warner, as seaman, Marine officer, 
        Under Secretary and Secretary of the Navy, and member, 
        ranking minority member, and chairman of the Committee 
        on Armed Services of the United States Senate, has made 
        unique and lasting contributions to the national 
        security of the United States.
            (11) It is altogether fitting and proper that this 
        Act, the last annual authorization Act for the national 
        defense managed by Senator Warner in and for the United 
        States Senate as chairman of the Committee on Armed 
        Services, be named in his honor, as provided in 
        subsection (a).

SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

    (a) Divisions.--This Act is organized into three divisions 
as follows:
            (1) Division A--Department of Defense 
        Authorizations.
            (2) Division B--Military Construction 
        Authorizations.
            (3) Division C--Department of Energy National 
        Security Authorizations and Other Authorizations.
    (b) Table of Contents.--The table of contents for this Act 
is as follows:

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

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

                        Subtitle C--Navy Programs

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

                     Subtitle D--Air Force Programs

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

               Subtitle E--Joint and Multiservice Matters

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

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

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

                  Subtitle C--Missile Defense Programs

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

                        Subtitle D--Other Matters

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

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

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

                  Subtitle B--Environmental Provisions

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

     Subtitle C--Program Requirements, Restrictions, and Limitations

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

                 Subtitle D--Workplace and Depot Issues

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

                           Subtitle E--Reports

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

                        Subtitle F--Other Matters

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

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

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

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
          reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2007 limitation on number of non-dual status 
          technicians.
Sec. 415. Maximum number of reserve personnel authorized to be on active 
          duty for operational support.

               Subtitle C--Authorization of Appropriations

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

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

               Part I--Officer Personnel Policy Generally

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

                    Part II--Officer Promotion Policy

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

             Part III--Joint Officer Management Requirements

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

                  Subtitle B--Reserve Component Matters

                  Part I--Reserve Component Management

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

         Part II--Authorities Relating to Guard and Reserve Duty

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

                   Subtitle C--Education and Training

                        Part I--Service Academies

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

         Part II--Scholarship and Financial Assistance Programs

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

                      Part III--Junior ROTC Program

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

             Part IV--Other Education and Training Programs

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

                 Subtitle D--General Service Authorities

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

                  Subtitle E--Military Justice Matters

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

                   Subtitle F--Decorations and Awards

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

               Subtitle G--Matters Relating to Casualties

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

     Subtitle H--Impact Aid and Defense Dependents Education System

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

                Subtitle I--Armed Forces Retirement Home

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

                           Subtitle J--Reports

Sec. 581. Report on personnel requirements for airborne assets 
          identified as Low-Density, High-Demand Airborne Assets.
Sec. 582. Report on feasibility of establishment of Military Entrance 
          Processing Command station on Guam.
Sec. 583. Inclusion in annual Department of Defense report on sexual 
          assaults of information on results of disciplinary actions.
Sec. 584. Report on provision of electronic copy of military records on 
          discharge or release of members from the Armed Forces.
Sec. 585. Report on omission of social security account numbers from 
          military identification cards.
Sec. 586. Report on maintenance and protection of data held by the 
          Secretary of Defense as part of the Department of Defense 
          Joint Advertising, Market Research and Studies (JAMRS) 
          program.
Sec. 587. Comptroller General report on military conscientious 
          objectors.

                        Subtitle K--Other Matters

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

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

            Subtitle C--Travel and Transportation Allowances

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

              Subtitle D--Retired Pay and Survivor Benefits

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

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

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

                        Subtitle F--Other Matters

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

                    TITLE VII--HEALTH CARE PROVISIONS

                Subtitle A--TRICARE Program Improvements

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

                     Subtitle B--Studies and Reports

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

            Subtitle C--Planning, Programming, and Management

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

                        Subtitle D--Other Matters

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

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

  Subtitle A--Provisions Relating to Major Defense Acquisition Programs

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

              Subtitle B--Acquisition Policy and Management

Sec. 811. Time-certain development for Department of Defense information 
          technology business systems.
Sec. 812. Pilot program on time-certain development in acquisition of 
          major weapon systems.
Sec. 813. Establishment of Panel on Contracting Integrity.
Sec. 814. Linking of award and incentive fees to acquisition outcomes.
Sec. 815. Report on defense instruction relating to contractor personnel 
          authorized to accompany Armed Forces.
Sec. 816. Major automated information system programs.
Sec. 817. Internal controls for procurements on behalf of the Department 
          of Defense by certain non-defense agencies.
Sec. 818. Determination of contract type for development programs.
Sec. 819. Three-year extension of requirement for reports on commercial 
          price trend analyses of the Department of Defense.
Sec. 820. Government performance of critical acquisition functions.

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

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

      Subtitle D--United States Defense Industrial Base Provisions

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

                        Subtitle E--Other Matters

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

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department of Defense Management

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

                      Subtitle B--Space Activities

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

              Subtitle C--Chemical Demilitarization Program

Sec. 921. Sense of Congress on completion of destruction of United 
          States chemical weapons stockpile.
Sec. 922. Comptroller General review of cost-benefit analysis of off-
          site versus on-site treatment and disposal of hydrolysate 
          derived from neutralization of VX nerve gas at Newport 
          Chemical Depot, Indiana.
Sec. 923. Incentives clauses in chemical demilitarization contracts.
Sec. 924. Chemical demilitarization program contracting authority.

                Subtitle D--Intelligence-Related Matters

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

                        Subtitle E--Other Matters

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

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

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

          Subtitle B--Policy Relating to Vessels and Shipyards

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

                   Subtitle C--Counter-Drug Activities

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

         Subtitle D--Force Structure and Defense Policy Matters

Sec. 1031. Improvements to Quadrennial Defense Review.
Sec. 1032. Quarterly reports on implementation of 2006 Quadrennial 
          Defense Review Report.
Sec. 1033. Report on feasibility of establishing a regional combatant 
          command for Africa.
Sec. 1034. Determination of Department of Defense intratheater and 
          intertheater airlift requirements and sealift mobility 
          requirements.
Sec. 1035. Presidential report on improving interagency support for 
          United States 21st century national security missions and 
          interagency operations in support of stability, security, 
          transition, and reconstruction operations.

                           Subtitle E--Reports

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

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

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

                 Subtitle G--Matters Involving Detainees

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

                        Subtitle H--Other Matters

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

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

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

             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                   Subtitle A--Assistance and Training

Sec. 1201. Logistic support for allied forces participating in combined 
          operations.
Sec. 1202. Temporary authority to use acquisition and cross-servicing 
          agreements to lend certain military equipment to foreign 
          forces in Iraq and Afghanistan for personnel protection and 
          survivability.
Sec. 1203. Recodification and revision to law relating to Department of 
          Defense humanitarian demining assistance.
Sec. 1204. Enhancements to Regional Defense Combating Terrorism 
          Fellowship Program.
Sec. 1205. Participation of the Department of Defense in multinational 
          military centers of excellence.
Sec. 1206. Modification and extension of authorities relating to program 
          to build the capacity of foreign military forces.
Sec. 1207. Authority for distribution to certain foreign personnel of 
          education and training materials and information technology to 
          enhance military interoperability.

      Subtitle B--Nonproliferation Matters and Countries of Concern

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

                        Subtitle C--Other Matters

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

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

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

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

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

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

Sec. 1501. Purpose.
Sec. 1502. Army procurement.
Sec. 1503. Navy and Marine Corps procurement.
Sec. 1504. Air Force procurement.
Sec. 1505. Defense-wide activities procurement.
Sec. 1506. Research, development, test and evaluation.
Sec. 1507. Operation and maintenance.
Sec. 1508. Defense Health Program.
Sec. 1509. Classified programs.
Sec. 1510. Military personnel.
Sec. 1511. Treatment as additional authorizations.
Sec. 1512. Transfer authority.
Sec. 1513. Availability of funds.
Sec. 1514. Joint Improvised Explosive Device Defeat Fund.
Sec. 1515. Iraq Freedom Fund.
Sec. 1516. Iraq Security Forces Fund.
Sec. 1517. Afghanistan Security Forces Fund.
Sec. 1518. Submittal to Congress of Department of Defense supplemental 
          and cost of war execution reports.
Sec. 1519. Limitation on availability of funds for certain purposes 
          relating to Iraq.
Sec. 1520. Intelligence Community Management Account.

            DIVISION  B--MILITARY CONSTRUCTION AUTHORIZATIONS

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

                             TITLE XXI--ARMY

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

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Modification of authority to carry out certain fiscal year 
          2004, 2005, and 2006 projects.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
          projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Modification of authority to carry out certain fiscal year 
          2006 project.

                      TITLE XXIV--DEFENSE AGENCIES

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

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
          acquisition projects.

         TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
          specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 2004 
          projects.
Sec. 2703. Extension of authorizations of certain fiscal year 2003 
          projects.
Sec. 2704. Effective date.

         TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

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

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

         Subtitle B--Real Property and Facilities Administration

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

                Subtitle C--Base Closure and Realignment

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

                      Subtitle D--Land Conveyances

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

                       Subtitle E--Energy Security

Sec. 2851. Consolidation and enhancement of laws to improve Department 
          of Defense energy efficiency and conservation.
Sec. 2852. Department of Defense goal regarding use of renewable energy 
          to meet electricity needs.
Sec. 2853. Congressional notification of cancellation ceiling for 
          Department of Defense energy savings performance contracts.
Sec. 2854. Use of energy efficiency products in new construction.

                        Subtitle F--Other Matters

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

 DIVISION  C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

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

    Subtitle B--Program Authorizations, Restrictions, and Limitations

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

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

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

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

                   TITLE XXXV--MARITIME ADMINISTRATION

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

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

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

                        Subtitle C--Navy Programs

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

                     Subtitle D--Air Force Programs

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

               Subtitle E--Joint and Multiservice Matters

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

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

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

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated 
for fiscal year 2007 for procurement for the Navy as follows:
            (1) For aircraft, $10,734,071,000.
            (2) For weapons, including missiles and torpedoes, 
        $2,549,020,000.
            (3) For shipbuilding and conversion, 
        $11,021,553,000.
            (4) For other procurement, $4,995,033,000.
    (b) Marine Corps.--Funds are hereby authorized to be 
appropriated for fiscal year 2007 for procurement for the 
Marine Corps in the amount of $1,253,813,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby 
authorized to be appropriated for fiscal year 2007 for 
procurement of ammunition for the Navy and the Marine Corps in 
the amount of $797,943,000.

SEC. 103. AIR FORCE.

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

SEC. 104. DEFENSE-WIDE ACTIVITIES.

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

                       Subtitle B--Army Programs

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

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

SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR MH-60R HELICOPTERS AND 
                    MISSION EQUIPMENT.

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

SEC. 113. FUNDING PROFILE FOR MODULAR FORCE INITIATIVE OF THE ARMY.

    The Secretary of the Army shall set forth in the budget 
presentation materials of the Army submitted to Congress in 
support of the President's budget for any fiscal year after 
fiscal year 2007, and in other relevant materials submitted to 
Congress with respect to the budget of the Army for any such 
fiscal year, all amounts for procurement for the M1A2 Abrams 
tank System Enhancement Program (SEP) and for the Bradley A3 
fighting vehicle as elements within the amounts requested for 
the Modular Force Initiative of the Army, in accordance with 
the report of the Army titled ``The Army Modular Force 
Initiative'', submitted to Congress in March 2006.

SEC. 114. BRIDGE TO FUTURE NETWORKS PROGRAM.

    (a) Limitation on Fiscal Year 2007 Amount.--Of the amount 
authorized to be appropriated for the Army for fiscal year 2007 
for Other Procurement, Army, that is available for the program 
of the Army designated as the Bridge to Future Networks, not 
more than 75 percent shall be made available for obligation 
until the Secretary of the Army submits to the congressional 
defense committees a report on that program that includes the 
matters specified in subsection (b).
    (b) Matters To Be Included.--The report under subsection 
(a) shall include the following:
            (1) An analysis of how the systems specified in 
        subsection (c) will fit together, including, for each 
        such system, an analysis of whether there are 
        opportunities to leverage technologies and equipment 
        from that system as part of the development of the 
        other systems.
            (2) A description of the extent to which components 
        of the systems specified in subsection (c) could be 
        used together as elements of a single tactical network.
            (3) A description of the strategy of the Army for 
        completing the systems engineering necessary to ensure 
        the end-to-end interoperability of a single tactical 
        network referred to in paragraph (2).
            (4) An assessment of the costs of acquiring each of 
        the systems specified in subsection (c).
            (5) An assessment of the technical compatibility of 
        the systems specified in subsection (c).
            (6) A description of the plans of the Army for 
        fielding the systems specified in subsection (c).
            (7) A description of the plans of the Army for 
        sustaining the Joint Network Node through fiscal year 
        2020 and an assessment of the need to upgrade its 
        technologies and equipment.
            (8) A description of the plans of the Army for the 
        insertion of new technology into the Joint Network 
        Node.
    (c) Specified Systems.--The systems referred to in 
subsection (b) are as follows:
            (1) The Joint Network Node (JNN) element of the 
        Bridge to Future Networks program.
            (2) The Warfighter Information Network-Tactical 
        (WIN-T) program.
            (3) The Mounted Battle Command On-the-Move (MBCOTM) 
        system.

SEC. 115. COMPTROLLER GENERAL REPORT ON THE CONTRACT FOR THE FUTURE 
                    COMBAT SYSTEMS PROGRAM.

    (a) Report Required.--Not later than March 15, 2007, the 
Comptroller General of the United States shall submit to the 
congressional defense committees a report on the participation 
and activities of the lead systems integrator in the Future 
Combat Systems (FCS) program under the contract of the Army for 
the Future Combat Systems.
    (b) Elements.--The report required by subsection (a) shall 
include the following:
            (1) A description of the responsibilities of the 
        lead systems integrator in managing the Future Combat 
        Systems program under the contract for the Future 
        Combat Systems, and an assessment of the manner in 
        which such responsibilities differ from the typical 
        responsibilities of a lead systems integrator under 
        acquisition contracts of the Department of Defense.
            (2) A description and assessment of the 
        responsibilities of the Army in managing the Future 
        Combat Systems program, including oversight of the 
        activities of the lead systems integrator and the 
        decisions made by the lead systems integrator.
            (3) An assessment of the manner in which the Army--
                    (A) ensures that the lead systems 
                integrator meets goals for the Future Combat 
                Systems in a timely manner; and
                    (B) evaluates the extent to which such 
                goals are met.
            (4) An identification of the mechanisms in place to 
        ensure the protection of the interests of the United 
        States in the Future Combat Systems program.
            (5) An identification of the mechanisms in place to 
        mitigate organizational conflicts of interest with 
        respect to competition on Future Combat Systems 
        technologies and equipment under subcontracts under the 
        Future Combat Systems program.

SEC. 116. PRIORITY FOR ALLOCATION OF REPLACEMENT EQUIPMENT TO 
                    OPERATIONAL UNITS BASED ON COMBAT MISSION 
                    DEPLOYMENT SCHEDULE.

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

                       Subtitle C--Navy Programs

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

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

SEC. 122. ADHERENCE TO NAVY COST ESTIMATES FOR CVN-21 CLASS OF AIRCRAFT 
                    CARRIERS.

    (a) Limitation.--
            (1) Lead ship.--The total amount obligated or 
        expended from funds appropriated or otherwise made 
        available for Shipbuilding and Conversion, Navy, or for 
        any other procurement account, for the aircraft carrier 
        designated as CVN-21 may not exceed $10,500,000,000 (as 
        adjusted pursuant to subsection (b)).
            (2) Follow-on ships.--The total amount obligated or 
        expended from funds appropriated or otherwise made 
        available for Shipbuilding and Conversion, Navy, or for 
        any other procurement account, for the construction of 
        any ship that is constructed in the CVN-21 class of 
        aircraft carriers after the lead ship of that class may 
        not exceed $8,100,000,000 (as adjusted pursuant to 
        subsection (b)).
    (b) Adjustment of Limitation Amount.--The Secretary of the 
Navy may adjust the amount set forth in subsection (a) for any 
ship constructed in the CVN-21 class of aircraft carriers by 
the following:
            (1) The amounts of increases or decreases in costs 
        attributable to economic inflation after September 30, 
        2006.
            (2) The amounts of increases or decreases in costs 
        attributable to compliance with changes in Federal, 
        State, or local laws enacted after September 30, 2006.
            (3) The amounts of outfitting costs and post-
        delivery costs incurred for that ship.
            (4) The amounts of increases or decreases in costs 
        of that ship that are attributable to insertion of new 
        technology into that ship, as compared to the 
        technology baseline as it was defined in the approved 
        acquisition program baseline estimate of December 2005.
            (5) The amounts of increases or decreases to 
        nonrecurring design and engineering cost attributable 
        to achieving compliance with the cost limitation.
            (6) The amounts of increases or decreases to cost 
        required to correct deficiencies that may affect the 
        safety of the ship and personnel or otherwise preclude 
        the ship from safe operations and crew certification.
    (c) Limitation on Technology Insertion Cost Adjustment.--
The Secretary of the Navy may use the authority under paragraph 
(4) of subsection (b) to adjust the amount set forth in 
subsection (a) for a ship referred to in that subsection with 
respect to insertion of new technology into that ship only if--
            (1) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the 
        new technology would lower the life-cycle cost of the 
        ship; or
            (2) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the 
        new technology is required to meet an emerging threat 
        and the Secretary of Defense certifies to those 
        committees that such threat poses grave harm to 
        national security.
    (d) Written Notice of Change in Amount.--
            (1) Requirement.--The Secretary of the Navy shall 
        submit to the congressional defense committees each 
        year, at the same time that the budget is submitted 
        under section 1105(a) of title 31, United States Code, 
        for the next fiscal year, written notice of any change 
        in the amount set forth in subsection (a) during the 
        preceding fiscal year that the Secretary has determined 
        to be associated with a cost referred to in subsection 
        (b).
            (2) Effective date.--The requirement in paragraph 
        (1) shall become effective with the budget request for 
        the year of procurement of the first ship referred to 
        in subsection (a).

SEC. 123. MODIFICATION OF LIMITATION ON TOTAL COST OF PROCUREMENT OF 
                    CVN-77 AIRCRAFT CARRIER.

    Section 122(f)(1) of the National Defense Authorization Act 
for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1650) is 
amended by striking ``$4,600,000,000 (such amount being the 
estimated cost for the procurement of the CVN-77 aircraft 
carrier in the March 1997 procurement plan)'' and inserting 
``$6,057,000,000''.

SEC. 124. CONSTRUCTION OF FIRST TWO VESSELS UNDER THE DDG-1000 NEXT-
                    GENERATION DESTROYER PROGRAM.

    (a) Availability of Funds.--Of the amount authorized to be 
appropriated by section 102(a)(3) for fiscal year 2007 for 
Shipbuilding and Conversion, Navy, $2,568,000,000 may be 
available for the construction of the first two vessels under 
the DDG-1000 Next-Generation Destroyer program.
    (b) Contract Authority.--
            (1) In general.--The Secretary of the Navy may 
        enter into a contract beginning with the fiscal year 
        2007 program year for procurement of each of the first 
        two vessels under the DDG-1000 Next-Generation 
        Destroyer program.
            (2) Limitation.--Not more than one contract 
        described in paragraph (1) may be awarded under that 
        paragraph to a single shipyard.
            (3) Split funding authorized.--Each contract under 
        paragraph (1) shall contemplate funding for the 
        procurement of a vessel under such contract using a 
        combination of funds appropriated for fiscal year 2007 
        and funds appropriated for fiscal year 2008.
            (4) Condition on out-year contract payments.--A 
        contract entered into under paragraph (1) shall provide 
        that any obligation of the United States to make a 
        payment under such contract for any fiscal year after 
        fiscal year 2007 is subject to the availability of 
        appropriations for that purpose for such fiscal year.
    (c) Sense of Congress on Funding for Follow-on Ships.--It 
is the sense of Congress that there is sufficient benefit to 
authorizing the one-time exception provided in this section to 
the full funding policy in order to support the competitive 
procurement of the follow-on ships of the DDG-1000 Next-
Generation Destroyer program. However, it is the expectation of 
Congress that the Secretary of the Navy will structure the DDG-
1000 program so that each ship, after the first two ships, is 
procured using the method of full funding in a single year.

SEC. 125. ADHERENCE TO NAVY COST ESTIMATES FOR LHA REPLACEMENT 
                    AMPHIBIOUS ASSAULT SHIP PROGRAM.

    (a) Limitation.--The total amount obligated or expended 
from funds appropriated or otherwise made available for 
Shipbuilding and Conversion, Navy, or for any other procurement 
account, for procurement of any ship that is constructed under 
the LHA Replacement (LHA(R)) amphibious assault ship program 
may not exceed $2,813,600,000 (as adjusted pursuant to 
subsection (b)).
    (b) Adjustment of Limitation Amount.--The Secretary of the 
Navy may adjust the amount set forth in subsection (a) for any 
ship constructed under the LHA Replacement amphibious assault 
ship program by the following:
            (1) The amounts of increases or decreases in costs 
        attributable to economic inflation after September 30, 
        2006.
            (2) The amounts of increases or decreases in costs 
        attributable to compliance with changes in Federal, 
        State, or local laws enacted after September 30, 2006.
            (3) The amounts of outfitting costs and post-
        delivery costs incurred for that ship.
            (4) The amounts of increases or decreases in costs 
        of that ship that are attributable to insertion of new 
        technology into that ship, as compared to the 
        technology baseline as it was defined at the 
        development stage referred to as Milestone B.
            (5) The amounts of increases or decreases to 
        nonrecurring design and engineering cost attributable 
        to achieving compliance with the cost limitation.
            (6) The amounts of increases or decreases to cost 
        required to correct deficiencies that may affect the 
        safety of the ship and personnel or otherwise preclude 
        the ship from safe operations and crew certification.
            (7) Contract cost adjustments directly attributed 
        to the effect of Hurricane Katrina in August 2005 or 
        other force majeure contract modifications.
    (c) Limitation on Technology Insertion Cost Adjustment.--
The Secretary of the Navy may use the authority under paragraph 
(4) of subsection (b) to adjust the amount set forth in 
subsection (a) for a ship referred to in that subsection with 
respect to insertion of new technology into that ship only if--
            (1) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the 
        new technology would lower the life-cycle cost of the 
        ship; or
            (2) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the 
        new technology is required to meet an emerging threat 
        and the Secretary of Defense certifies to those 
        committees that such threat poses grave harm to 
        national security.
    (d) Written Notice of Change in Amount.--
            (1) Requirement.--The Secretary of the Navy shall 
        submit to the congressional defense committees each 
        year, at the same time that the budget is submitted 
        under section 1105(a) of title 31, United States Code, 
        for the next fiscal year, written notice of any change 
        in the amount set forth in subsection (a) during the 
        preceding fiscal year that the Secretary has determined 
        to be associated with a cost referred to in subsection 
        (b).
            (2) Effective date.--The requirement in paragraph 
        (1) shall become effective with the budget request for 
        the year of procurement of the first ship referred to 
        in subsection (a).

SEC. 126. COST LIMITATION FOR SAN ANTONIO (LPD-17) CLASS AMPHIBIOUS 
                    SHIP PROGRAM.

    (a) Limitation.--
            (1) Procurement cost.--The total amount obligated 
        or expended from funds appropriated or otherwise made 
        available for Shipbuilding and Conversion, Navy, for 
        the San Antonio-class amphibious ships designated as 
        LPD-22, LPD-23, LPD-24, and LPD-25 may not exceed the 
        amount for each such vessel specified in paragraph (2).
            (2) Specified cost limit by vessel.--The limitation 
        under this subsection for each vessel specified in 
        paragraph (1) is the following:
                    (A) For the LPD-22 ship, $1,523,000,000 (as 
                adjusted pursuant to subsection (b)).
                    (B) For the LPD-23 ship, $1,477,000,000 (as 
                adjusted pursuant to subsection (b)).
                    (C) For the LPD-24 ship, $1,633,000,000 (as 
                adjusted pursuant to subsection (b)).
                    (D) For the LPD-25 ship, $1,927,000,000 (as 
                adjusted pursuant to subsection (b)).
    (b) Adjustment of Limitation Amounts.--The Secretary of the 
Navy may adjust the amount set forth in subsection (a) for any 
ship specified in that subsection by the following:
            (1) The amounts of increases or decreases in costs 
        attributable to economic inflation after September 30, 
        2006.
            (2) The amounts of increases or decreases in costs 
        attributable to compliance with changes in Federal, 
        State, or local laws enacted after September 30, 2006.
            (3) The amounts of outfitting costs and post-
        delivery costs incurred for that ship.
            (4) The amounts of increases or decreases in costs 
        of that ship that are attributable to insertion of new 
        technology into that ship, as compared to the 
        technology built into the U.S.S. San Antonio (LPD-17), 
        the lead ship of the LPD-17 class.
            (5) Contract cost adjustments directly attributed 
        to the effect of Hurricane Katrina in August 2005 or 
        other force majeure contract modifications.
            (6) The amounts of closeout costs associated with 
        completion of the LPD-17 class program.
    (c) Limitation on Technology Insertion Cost Adjustment.--
The Secretary of the Navy may use the authority under paragraph 
(4) of subsection (b) to adjust the amount set forth in 
subsection (a) for any LPD-17 class ship with respect to 
insertion of new technology into that ship only if--
            (1) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the 
        new technology would lower the life-cycle cost of the 
        ship; or
            (2) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the 
        new technology is required to meet an emerging threat 
        and the Secretary of Defense certifies to those 
        committees that such threat poses grave harm to 
        national security.
    (d) Written Notice of Change in Amount.--
            (1) Requirement.--The Secretary of the Navy shall 
        submit to the congressional defense committees each 
        year, at the same time that the budget is submitted 
        under section 1105(a) of title 31, United States Code, 
        for the next fiscal year, written notice of any change 
        in the amount set forth in subsection (a) during the 
        preceding fiscal year that the Secretary has determined 
        to be associated with a cost referred to in subsection 
        (b).
            (2) Effective date.--The requirement in paragraph 
        (1) shall become effective with the budget request for 
        the year of procurement of the first ship referred to 
        in subsection (a).

SEC. 127. MULTIYEAR PROCUREMENT AUTHORITY FOR V-22 TILTROTOR AIRCRAFT 
                    PROGRAM.

    The Secretary of the Navy, in accordance with section 2306b 
of title 10, United States Code, and acting as executive agent 
for the Secretary of the Air Force and the commander of the 
United States Special Operations Command, may enter into a 
multiyear contract, beginning with the fiscal year 2008 program 
year, for procurement of V-22 tiltrotor aircraft.

SEC. 128. ALTERNATIVE TECHNOLOGIES FOR FUTURE SURFACE COMBATANTS.

    (a) Findings.--Congress makes the following findings:
            (1) Securing and maintaining access to affordable 
        and plentiful sources of energy is a vital national 
        security interest for the United States.
            (2) The Nation's dependence upon foreign oil is a 
        threat to national security due to the inherently 
        volatile nature of the global oil market and the 
        political instability of some of the world's largest 
        oil producing states.
            (3) Given the recent increase in the cost of crude 
        oil, which cannot realistically be expected to improve 
        over the long term, other energy sources must be 
        seriously considered.
            (4) Alternate propulsion sources such as nuclear 
        power offer many advantages over conventional power for 
        major surface combatant ships of the Navy, including--
                    (A) virtually unlimited high-speed 
                endurance;
                    (B) elimination of vulnerable refueling; 
                and
                    (C) reduction in the requirement for 
                replenishment vessels and the need to protect 
                those vessels.
    (b) Sense of Congress.--In light of the findings in 
subsection (a), it is the sense of Congress that the Navy 
should make greater use of alternative technologies, including 
expanded application of integrated power systems, fuel cells, 
and nuclear power, for propulsion of future major surface 
combatant ships.
    (c) Requirement.--The Secretary of the Navy shall include 
integrated power systems, fuel cells, and nuclear power as 
propulsion alternatives to be evaluated within the analysis of 
alternatives for future major surface combatant ships.

SEC. 129. SENSE OF CONGRESS REGARDING THE SIZE OF THE ATTACK SUBMARINE 
                    FORCE.

    (a) Findings.--Congress makes the following findings:
            (1) The United States Navy must be large enough, 
        agile enough, and lethal enough to deter any threat and 
        defeat any foe.
            (2) The proliferation of modern nuclear and 
        nonnuclear submarines in the navies of nations around 
        the globe will make undersea superiority a more 
        significant challenge in the future.
            (3) The unique combination of firepower, stealth, 
        sensors, and communications equipment contained in a 
        modern attack submarine make the attack submarine a 
        critical component of the Armed Forces of the United 
        States.
            (4) The report entitled ``Report to Congress on 
        Annual Long-Range Plan for Construction of Naval 
        Vessels for fiscal year 2007'', submitted to Congress 
        by the Secretary of the Navy pursuant to section 231 of 
        title 10, United States Code--
                    (A) identifies future naval force structure 
                requirements indexed to Department of Defense 
                fiscal year 2020 threat assessments and 
                compliant with the Fiscal Year 2006 Quadrennial 
                Defense Review and, with respect to the attack 
                submarine force, identifies a need for the Navy 
                to maintain a fleet of not less than 48 attack 
                submarines; and
                    (B) projects that the attack submarine 
                force will fall below 48 vessels between 2020 
                and 2032.
    (b) Sense of Congress.--In light of the findings in 
subsection (a), it is the sense of Congress that the Secretary 
of the Navy should take all reasonable effort to accelerate the 
construction of Virginia Class submarines to maintain the 
attack submarine force structure at not less than 48 submarines 
and (if the number of attack submarines should fall below 48), 
to minimize the period the attack submarine force remains below 
48 vessels.

SEC. 130. 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''.

                     Subtitle D--Air Force Programs

SEC. 131. BOMBER FORCE STRUCTURE.

    (a) Requirement for B-52 Force Structure.--
            (1) Retirement limitation.--During the B-52 
        retirement limitation period, the Secretary of the Air 
        Force--
                    (A) may not retire more than 18 B-52 
                aircraft; and
                    (B) shall maintain not less than 44 such 
                aircraft as combat-coded aircraft.
            (2) B-52 retirement limitation period.--For 
        purposes of paragraph (1), the B-52 retirement 
        limitation period is the period beginning on the date 
        of the enactment of this Act and ending on the date 
        that is the earlier of--
                    (A) January 1, 2018; and
                    (B) the date as of which a long-range 
                strike replacement aircraft with equal or 
                greater capability than the B-52H model 
                aircraft has attained initial operational 
                capability status.
    (b) Limitation on Retirement Pending Report on Bomber Force 
Structure.--
            (1) Limitation.--No funds authorized to be 
        appropriated for the Department of Defense may be 
        obligated or expended for retiring any of the 93 B-52H 
        bomber aircraft in service in the Air Force as of the 
        date of the enactment of this Act until 45 days after 
        the date on which the Secretary of the Air Force 
        submits the report specified in paragraph (2).
            (2) Report.--A report specified in this subsection 
        is a report submitted by the Secretary of the Air Force 
        to the Committees on Armed Services of the Senate and 
        the House of Representatives on the amount and type of 
        bomber force structure of the Air Force, including the 
        matters specified in paragraph (4).
            (3) Amount and type of bomber force structure 
        defined.--In this subsection, the term ``amount and 
        type of bomber force structure'' means the number of 
        each of the following types of aircraft that are 
        required to carry out the national security strategy of 
        the United States:
                    (A) B-2 bomber aircraft.
                    (B) B-52H bomber aircraft.
                    (C) B-1 bomber aircraft.
            (4) Matter To be included.--A report under 
        paragraph (2) shall include the following:
                    (A) The plan of the Secretary of the Air 
                Force for the modernization of the B-52, B-1, 
                and B-2 bomber aircraft fleets.
                    (B) The amount and type of bomber force 
                structure for the conventional mission and 
                strategic nuclear mission in executing two 
                overlapping ``swift defeat'' campaigns.
                    (C) A justification of the cost and 
                projected savings of any reductions to the B-
                52H bomber aircraft fleet as a result of the 
                retirement of the B-52H bomber aircraft covered 
                by the report.
                    (D) The life expectancy of each bomber 
                aircraft to remain in the bomber force 
                structure.
                    (E) The capabilities of the bomber force 
                structure that would be replaced, augmented, or 
                superseded by any new bomber aircraft.
            (5) Preparation of report.--A report under 
        paragraph (2) shall be prepared by the Institute for 
        Defense Analyses and submitted to the Secretary of the 
        Air Force for submittal by the Secretary in accordance 
        with that paragraph.

SEC. 132. STRATEGIC AIRLIFT FORCE STRUCTURE.

    Section 8062 of title 10, United States Code, is amended by 
adding at the end the following new subsection:
    ``(g)(1) Effective October 1, 2008, the Secretary of the 
Air Force shall maintain a total aircraft inventory of 
strategic airlift aircraft of not less than 299 aircraft.
    ``(2) In this subsection:
            ``(A) The term `strategic airlift aircraft' means 
        an aircraft--
                    ``(i) that has a cargo capacity of at least 
                150,000 pounds; and
                    ``(ii) that is capable of transporting 
                outsized cargo an unrefueled range of at least 
                2,400 nautical miles.
            ``(B) The term `outsized cargo' means any single 
        item of equipment that exceeds 1,090 inches in length, 
        117 inches in width, or 105 inches in height.''.

SEC. 133. LIMITATION ON RETIREMENT OF U-2 AIRCRAFT.

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

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

    (a) Prohibition on Use of Incremental Funding.--The 
Secretary of the Air Force may not use incremental funding for 
the procurement of F-22A aircraft.
    (b) Multiyear Authority.--The Secretary of the Air Force 
may enter into a multiyear contract for the procurement of up 
to 60 F-22A Raptor fighter aircraft beginning with the 2007 
program year.
    (c) Compliance With Law Applicable to Multiyear 
Contracts.--A contract under subsection (b) for the procurement 
of F-22A aircraft shall be entered into in accordance with 
section 2306b of title 10, United States Code, except that, 
notwithstanding subsection (k) of that section, such a contract 
may not be for a period in excess of three program years.
    (d) Secretary of Defense Certification.--In the case of a 
contract under subsection (b) for the procurement of F-22A 
aircraft, a certification under subsection (i)(1)(A) of section 
2306b of title 10, United States Code, with respect to that 
contract may only be submitted if the certification includes an 
additional certification by the Secretary that each of the 
conditions specified in subsection (a) of that section has been 
satisfied with respect to that contract, as follows:
            (1) That the use of such contract will result in 
        substantial savings of the total anticipated costs of 
        carrying out the program through annual contracts.
            (2) That the minimum need for the property to be 
        purchased is expected to remain substantially unchanged 
        during the contemplated contract period in terms of 
        production rate, procurement rate, and total 
        quantities.
            (3) That there is a reasonable expectation that 
        throughout the contemplated contract period the 
        Secretary of the Air Force will request funding for the 
        contract at the level required to avoid contract 
        cancellation.
            (4) That there is a stable design for the property 
        to be acquired and that the technical risks associated 
        with such property are not excessive.
            (5) That the estimates of both the cost of the 
        contract and the anticipated cost avoidance through the 
        use of a multiyear contract are realistic.
            (6) That the use of such contract will promote the 
        national security of the United States.
In certifying that the cost savings are substantial, the 
Secretary shall duly consider the historical cost savings that 
led to a decision to proceed with a multiyear procurement 
contract under section 2306b of title 10, United States Code, 
in the case of previous aviation-related multiyear contracts 
authorized by law dating back to fiscal year 1982.
    (e) FFRDC Cost Report.--The Secretary of Defense shall 
provide for a federally funded research and development center 
(other than the Institute for Defense Analyses) to report on 
the cost estimates for a three year, 60-aircraft, F-22A 
multiyear procurement program, beginning in fiscal year 2007, 
compared to a corresponding annual procurement program.
    (f) Notice-and-Wait Requirement.--Upon submission to 
Congress of a certification referred to in subsection (d) with 
respect to a proposed contract under subsection (b) for the 
procurement of F-22A aircraft and the Secretary's submission to 
the congressional defense committees of the report referred to 
in subsection (e), the contract may then be entered into only 
after the end of the 30-day period beginning on the later of 
the date of the submission of the certification or the date of 
the submission of the report.

SEC. 135. LIMITATION ON RETIREMENT OF KC-135E AIRCRAFT DURING FISCAL 
                    YEAR 2007.

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

SEC. 136. LIMITATION ON RETIREMENT OF F-117A AIRCRAFT DURING FISCAL 
                    YEAR 2007.

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

SEC. 137. LIMITATION ON RETIREMENT OF C-130E TACTICAL AIRLIFT AIRCRAFT.

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

SEC. 138. PROCUREMENT OF JOINT PRIMARY AIRCRAFT TRAINING SYSTEM 
                    AIRCRAFT AFTER FISCAL YEAR 2006.

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

SEC. 139. MINUTEMAN III INTERCONTINENTAL BALLISTIC MISSILE 
                    MODERNIZATION.

    (a) Modernization of Intercontinental Ballistic Missiles 
Required.--The Secretary of the Air Force shall modernize 
Minuteman III intercontinental ballistic missiles in the United 
States inventory as required to maintain a sufficient supply of 
launch test assets and spares to sustain the deployed force of 
such missiles through 2030.
    (b) Limitation on Termination of Modernization Programs 
Pending Report.--
            (1) Limitation.--No funds authorized to be 
        appropriated for the Department of Defense may be 
        obligated or expended for the termination of any ICBM 
        modernization program with respect to the Minuteman III 
        intercontinental ballistic missile system, or for the 
        withdrawal of any Minuteman III intercontinental 
        ballistic missile from the active force, until 30 days 
        after the date on which the Secretary of Defense 
        submits to the congressional defense committees a 
        report described in subsection (c).
            (2) ICBM modernization program defined.--In this 
        subsection, the term ``ICBM Modernization program'' 
        means each of the following:
                    (A) The Guidance Replacement Program (GRP).
                    (B) The Propulsion Replacement Program 
                (PRP).
                    (C) The Propulsion System Rocket Engine 
                (PSRE) program.
                    (D) The Safety Enhanced Reentry Vehicle 
                (SERV) program.
    (c) Report Elements.--A report under subsection (b)(1) is a 
report setting forth the following:
            (1) A detailed strategic justification for the 
        proposal to reduce the Minuteman III intercontinental 
        ballistic missile force from 500 to 450 missiles, 
        including an analysis of the effects of the reduction 
        on the ability of the United States to assure allies 
        and dissuade potential competitors.
            (2) A detailed analysis of the strategic 
        ramifications of continuing to equip a portion of the 
        Minuteman III missile force with multiple independent 
        warheads rather than single warheads.
            (3) An assessment of the test assets and spares 
        required to maintain a force of 500 deployed Minuteman 
        III missiles through 2030.
            (4) An assessment of the test assets and spares 
        required to maintain a force of 450 deployed Minuteman 
        III missiles through 2030.
            (5) An inventory of currently available Minuteman 
        III missile test assets and spares.
            (6) A plan to sustain and complete the 
        modernization of all deployed and spare Minuteman III 
        missiles, a test plan, and an analysis of the funding 
        required to carry out modernization of all deployed and 
        spare Minuteman III missiles.
            (7) An assessment of whether halting upgrades to 
        the Minuteman III missiles withdrawn from the deployed 
        force would compromise the ability of those missiles to 
        serve as test assets.
            (8) A description of the plan of the Department of 
        Defense for extending the life of the Minuteman III 
        missile force beyond fiscal year 2030.

               Subtitle E--Joint and Multiservice Matters

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

    (a) Applicability of Limitation Only to Procurement 
Funds.--Subsection (a) of section 142 of National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 
Stat. 3164) is amended--
            (1) by inserting ``for procurement'' after ``the 
        Department of Defense''; and
            (2) by inserting before the period at the end the 
        following: ``(or by an official within the Office of 
        the Under Secretary designated by the Under Secretary 
        for that purpose)''.
    (b) Applicability Only to New Systems.--Subsection (b) of 
that section is amended to read as follows:
    ``(b) Exception for Existing Systems.--The limitation in 
subsection (a) does not apply with respect to an unmanned 
aerial vehicle (UAV) system (or any component or other item of 
associated equipment of any such system described in subsection 
(a)) if as of January 6, 2006--
            ``(1) the system (or component or item of 
        associated equipment) to be procured is otherwise under 
        contract or has previously been procured by the 
        Department; or
            ``(2) funds have been appropriated but not yet 
        obligated for the system (or component or item of 
        associated equipment).''.

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

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

                  Subtitle C--Missile Defense Programs

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

                        Subtitle D--Other Matters

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

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

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

    Subtitle B--Program Requirements, Restrictions, and Limitations

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

    (a) Acquisition.--
            (1) In general.--The Secretary of Defense shall 
        provide for the development and procurement of the 
        propulsion system for the Joint Strike Fighter aircraft 
        through the continued development and sustainment of 
        two interchangeable propulsion systems for that 
        aircraft by two separate contractors throughout the 
        life cycle of the aircraft.
            (2) Modifications prohibited.--Except as provided 
        by paragraph (3), the Secretary may not carry out any 
        modification to the acquisition program for the Joint 
        Strike Fighter aircraft that would result in the 
        development or procurement of the propulsion system for 
        that aircraft in a manner other than that required by 
        paragraph (1).
            (3) Modifications allowed.--Notwithstanding 
        paragraph (1), a modification described in paragraph 
        (2) may be carried out to the extent that each of the 
        following requirements is met:
                    (A) The Secretary of Defense has notified 
                the congressional defense committees of the 
                modification.
                    (B) Each of the reports required by 
                subsection (b) has been submitted.
                    (C) Funds are appropriated for that purpose 
                pursuant to an authorization of appropriations.
    (b) Independent Cost Analyses.--
            (1) In general.--A comprehensive and detailed cost 
        analysis of the Joint Strike Fighter engine program 
        shall be independently performed by each of the 
        following:
                    (A) The Comptroller General.
                    (B) A federally funded research and 
                development center selected by the Secretary of 
                Defense.
                    (C) The Secretary of Defense, acting 
                through the Cost Analysis Improvement Group of 
                the Office of the Secretary of Defense.
            (2) Matters covered.--Each such cost analysis shall 
        cover--
                    (A) an alternative under which the Joint 
                Strike Fighter aircraft is capable of using the 
                F135 engine only;
                    (B) an alternative under which the program 
                executes a one-time firm-fixed price contract 
                for a selected propulsion system for the Joint 
                Strike Fighter aircraft for the life cycle of 
                the aircraft following the Initial Service 
                Release of the propulsion system in fiscal year 
                2008;
                    (C) an alternative under which the Joint 
                Strike Fighter aircraft is capable of using 
                either the F135 engine or the F136 engine, and 
                the engine selection is carried out on a 
                competitive basis; and
                    (D) any other alternative, whether 
                competitive or sole source, that would reduce 
                total life-cycle cost, improve program 
                schedule, or both.
            (3) Reports.--Not later than March 15, 2007, the 
        Secretary of Defense, the Comptroller General, and the 
        chief executive officer of the federally funded 
        research and development center selected under 
        paragraph (1)(B) shall independently submit to the 
        congressional defense committees a report on the cost 
        analysis carried out under paragraph (1). Each such 
        report shall include each of the following matters:
                    (A) The key assumptions used in carrying 
                out the cost analysis.
                    (B) The methodology and techniques used in 
                carrying out the cost analysis.
                    (C) For each alternative required by 
                paragraph (2)--
                            (i) a comparison of the life-cycle 
                        costs, including costs in current and 
                        constant dollars and a net-present-
                        value analysis;
                            (ii) estimates of--
                                    (I) supply, maintenance, 
                                and other operations manpower 
                                required to support the 
                                alternative;
                                    (II) the number of flight 
                                hours required to achieve 
                                engine maturity and the year in 
                                which that is expected to be 
                                achieved; and
                                    (III) the total number of 
                                engines expected to be procured 
                                over the lifetime of the Joint 
                                Strike Fighter program; and
                            (iii) an evaluation of benefits, 
                        other than cost, provided by 
                        competition, to include an assessment 
                        of improved performance, operational 
                        readiness and warfighting capability, 
                        risk reduction, technology innovation, 
                        and contractor responsiveness.
                    (D) A description of the acquisition 
                strategies (including development and 
                production) that were used for, and experience 
                with respect to cost, schedule, and performance 
                under, past acquisition programs for engines 
                for tactical fighter aircraft, including the F-
                15, F-16, F-18, and F-22 aircraft.
                    (E) A comparison of the experiences under 
                past acquisition programs carried out on a 
                sole-source basis with respect to performance, 
                savings, maintainability, reliability, and 
                technical innovation.
                    (F) The impact that canceling the F136 
                competitive engine would have on the high-
                performance military engine industrial base, 
                and on the Department of Defense's ability to 
                make competitive engine choices for future 
                combat aircraft systems beyond the Joint Strike 
                Fighter.
                    (G) Conclusions and recommendations.
            (4) Certifications.--In submitting the report 
        required by paragraph (3), the Comptroller General and 
        the chief executive officer of the federally funded 
        research and development center shall also submit a 
        certification as to whether the Secretary of Defense 
        provided access to sufficient information to enable the 
        Comptroller General or the chief executive officer, as 
        the case may be, to make informed judgments on the 
        matters required to be included in the report.
    (c) Life-Cycle Costs Defined.--In this section, the term 
``life-cycle costs'' includes--
            (1) those elements of cost that would be considered 
        for a life-cycle cost analysis for a major defense 
        acquisition program, including procurement of engines, 
        procurement of spare engines, and procurement of engine 
        components and parts; and
            (2) good-faith estimates of routine engine costs 
        (such as performance upgrades and component 
        improvement) that historically have occurred in 
        tactical fighter engine programs.

SEC. 212. EXPANSION AND EXTENSION OF AUTHORITY TO AWARD PRIZES FOR 
                    ADVANCED TECHNOLOGY ACHIEVEMENTS.

    (a) Expansion.--
            (1) In general.--Subsection (a) of section 2374a of 
        title 10, United States Code, is amended--
                    (A) by striking ``Director of the Defense 
                Advanced Research Projects Agency'' and 
                inserting ``Director of Defense Research and 
                Engineering and the service acquisition 
                executive for each military department''; and
                    (B) by striking ``a program'' and inserting 
                ``programs''.
            (2) Conforming amendments.--Such section is further 
        amended--
                    (A) in subsection (b), by striking ``The 
                program'' and inserting ``Each program''; and
                    (B) in subsection (d)--
                            (i) by striking ``The program'' and 
                        inserting ``A program''; and
                            (ii) by striking ``the Director'' 
                        and inserting ``an official referred to 
                        in that subsection''.
    (b) Extension.--Subsection (f) of such section is amended 
by striking ``September 30, 2007'' and inserting ``September 
30, 2010''.
    (c) Modification of Reporting Requirement.--Subsection (e) 
of such section is amended to read as follows:
    ``(e) Annual Report.--
            ``(1) In general.--Not later than March 1 of each 
        year, the Secretary shall submit to the Committee on 
        Armed Services of the Senate and the Committee on Armed 
        Services of the House of Representatives a report on 
        the activities carried out during the preceding fiscal 
        year under the authority in subsection (a).
            ``(2) Information included.--The report for a 
        fiscal year under this subsection shall include, for 
        each program under subsection (a), the following:
                    ``(A) A description of the proposed goals 
                of the competitions established under the 
                program, including the areas of research, 
                technology development, or prototype 
                development to be promoted by such competitions 
                and the relationship of such areas to the 
                military missions of the Department of Defense.
                    ``(B) An analysis of why the utilization of 
                the authority in subsection (a) was the 
                preferable method of achieving the goals 
                described in subparagraph (A) as opposed to 
                other authorities available to the Department, 
                such as contracts, grants, and cooperative 
                agreements.
                    ``(C) The total amount of cash prizes 
                awarded under the program, including a 
                description of the manner in which the amounts 
                of cash prizes awarded and claimed were 
                allocated among the accounts of the Department 
                for recording as obligations and expenditures.
                    ``(D) The methods used for the solicitation 
                and evaluation of submissions under the 
                program, together with an assessment of the 
                effectiveness of such methods.
                    ``(E) A description of the resources, 
                including personnel and funding, used in the 
                execution of the program, together with a 
                detailed description of the activities for 
                which such resources were used and an 
                accounting of how funding for execution was 
                allocated among the accounts of the Department 
                for recording as obligations and expenditures.
                    ``(F) A description of any plans to 
                transition the technologies or prototypes 
                developed as a result of the program into an 
                acquisition program of the Department.
            ``(3) Suspension of authority for failure to 
        include information.--For each program under subsection 
        (a), the authority to obligate or expend funds under 
        that program is suspended as of the date specified in 
        paragraph (1) if the Secretary does not, by that date, 
        submit a report that includes, for that program, all 
        the information required by paragraph (2). As of the 
        date on which the Secretary does submit a report that 
        includes, for that program, all the information 
        required by paragraph (2), the suspension is lifted.''.

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

    (a) Assessment of Additional Issues Required in the Event 
of Critical Cost Growth.--Section 2433(e)(2)(A) of title 10, 
United States Code, is amended--
            (1) by redesignating clauses (i), (ii), and (iii) 
        as clauses (ii), (iii), and (iv) respectively; and
            (2) by inserting before clause (ii) (as so 
        redesignated) the following new clause:
                    ``(i) any design, engineering, 
                manufacturing, or technology integration issues 
                that contributed significantly to the cost 
                growth of the program;''.
    (b) Requirement for Challenge Program to Address Critical 
Cost Growth Threshold Breaches in Major Defense Acquisition 
Programs.--
            (1) Solicitation of challenge proposals.--Section 
        2359b(c) of title 10, United States Code, is amended--
                    (A) by redesignating paragraphs (4), (5), 
                and (6) as paragraphs (5), (6), and (7), 
                respectively; and
                    (B) by inserting after paragraph (3) the 
                following new paragraph (4):
            ``(4)(A) The Under Secretary shall establish 
        procedures for the prompt issuance of a solicitation 
        for challenge proposals addressing--
                    ``(i) any acquisition program for which, 
                since the last such announcement, the Secretary 
                concerned has determined under section 2433(d) 
                of this title that the program's acquisition 
                unit cost or procurement unit cost has 
                increased by a percentage equal to or greater 
                than the critical cost growth threshold for the 
                program (in this section referred to as a 
                `critical cost growth threshold breach'); and
                    ``(ii) any design, engineering, 
                manufacturing, or technology integration 
                issues, in accordance with the assessment 
                required by section 2433(e)(2)(A) of this 
                title, that have contributed significantly to 
                the cost growth of such program.
            ``(B) A solicitation under this paragraph may be 
        included in a broad agency announcement issued pursuant 
        to paragraph (3) as long as the broad agency 
        announcement is released in an expeditious manner 
        following the determination of the Secretary concerned 
        that a critical cost growth threshold breach has 
        occurred with respect to a major defense acquisition 
        program.''.
            (2) Requirement for guidelines for covering costs 
        of challenge proposals.--Section 2359b(e) of such title 
        is amended by adding at the end the following new 
        paragraph:
    ``(3) In the case of a challenge proposal submitted in 
response to a solicitation issued as a result of a critical 
cost growth threshold breach that is determined under full 
review and evaluation to satisfy each of the criteria specified 
in subsection (c)(5), the Under Secretary shall establish 
guidelines for covering the costs of the challenge proposal. If 
appropriate, such guidelines shall not be restricted to funding 
provided by the Defense Acquisition Challenge Program, but 
shall also consider alternative funding sources, such as the 
acquisition program with respect to which the breach 
occurred.''.
            (3) Action upon unfavorable full review and 
        evaluation.--Section 2359b of such title is amended--
                    (A) by redesignating subsections (f), (g), 
                (h), (i), and (j) as subsections (g), (h), (i), 
                (j), and (k) respectively; and
                    (B) by inserting after subsection (e) the 
                following new subsection (f):
    ``(f) Action Upon Unfavorable Full Review and Evaluation.--
Under procedures prescribed by the Under Secretary, if a 
challenge proposal is determined by a Panel to satisfy each of 
the criteria specified in subsection (c)(5), but is not 
determined under a full review and evaluation to satisfy such 
criteria, the following provisions apply:
            ``(1) The office carrying out the full review and 
        evaluation shall provide to the Panel that conducted 
        the preliminary evaluation a statement containing a 
        summary of the rationale for the unfavorable 
        evaluation.
            ``(2) If the Panel disagrees with the rationale 
        provided under paragraph (1), the Panel may return the 
        challenge proposal to the office for further 
        consideration.''.
            (4) Additional information required to be included 
        in annual report.--Section 2359b(j) of such title, as 
        redesignated by paragraph (3), is amended by striking 
        ``No report is required for a fiscal year in which the 
        Challenge Program is not carried out.'' and inserting 
        ``The report shall also include a list of each 
        challenge proposal that was determined by a Panel to 
        satisfy each of the criteria specified in subsection 
        (c)(5), but was not determined under a full review and 
        evaluation to satisfy such criteria, together with a 
        detailed rationale for the Department's determination 
        that such criteria were not satisfied.''.
    (c) Evaluation and Report Required.--The Under Secretary of 
Defense for Acquisition, Technology, and Logistics, in 
coordination with the service acquisition executives, shall--
            (1) evaluate the efficacy of the incentives 
        provided to encourage the adoption of each challenge 
        proposal receiving favorable full review and 
        evaluation, as required by section 2359b(e)(2) of title 
        10, United States Code;
            (2) identify additional incentives and authorities 
        required, if any, to further facilitate the adoption of 
        each challenge proposal receiving favorable full review 
        and evaluation, particularly in the case of challenge 
        proposals submitted in response to critical cost growth 
        threshold breaches (as such term is used in section 
        2359b of such title); and
            (3) not later than March 1, 2007, submit to the 
        Committees on Armed Services of the Senate and the 
        House of Representatives a report setting forth the 
        results of such evaluation and identification.
    (d) Priority for Proposals From Certain Businesses.--
Paragraph (6) of section 2359b(c) of such title, as 
redesignated by paragraph (b)(1)(A), is amended to read as 
follows:
    ``(6) The Under Secretary--
            ``(A) may establish procedures to ensure that the 
        Challenge Program does not become an avenue for the 
        repetitive submission of proposals that have been 
        previously reviewed and found not to have merit; and
            ``(B) may establish procedures to ensure that the 
        Challenge Program establishes appropriate priorities 
        for proposals from businesses that are not major 
        contractors with the Department of Defense.''.
    (e) Confidentiality.--Subsection (h) of section 2359b of 
such title, as redesignated by subsection (b)(3), is amended--
            (1) by amending the heading to read as follows: 
        ``Conflicts of Interest and Confidentiality''; and
            (2) by striking the period at the end and inserting 
        the following: ``and that the identity of any person or 
        activity submitting a challenge proposal is not 
        disclosed outside the Federal Government, prior to 
        contract award, without the consent of the person or 
        activity. For purposes of the proceeding sentence, the 
        term `Federal Government' includes both employees of 
        the Federal Government and employees of Federal 
        Government contractors providing advisory and 
        assistance services as described in part 37 of the 
        Federal Acquisition Regulation.''.
    (f) Extension.--Subsection (k) of section 2359b of title 
10, United States Code, as redesignated by subsection (b)(3), 
is amended by striking ``September 30, 2007'' and inserting 
``September 30, 2012''.
    (g) Additional Conforming Amendments.--Section 2359b of 
such title is further amended--
            (1) in subsection (c)(7), as redesignated by 
        subsection (b), by striking ``paragraph (4)'' and 
        inserting ``paragraph (5)'';
            (2) in subsection (d)(1), by striking ``subsection 
        (c)(6)'' and inserting ``subsection (c)(7)'';
            (3) in subsection (d)(2), by striking ``subsection 
        (c)(4)'' and inserting ``subsection (c)(5)''; and
            (4) in subsection (e)(1), by striking ``subsection 
        (c)(4)'' and inserting ``subsection (c)(5)''.

SEC. 214. FUTURE COMBAT SYSTEMS MILESTONE REVIEW.

    (a) Milestone Review Required.--Not later than 120 days 
after the preliminary design review of the Future Combat 
Systems program is completed, the Secretary of Defense shall 
carry out a Defense Acquisition Board milestone review of the 
Future Combat Systems program. The milestone review shall 
include an assessment as to each of the following:
            (1) Whether the warfighter's needs are valid and 
        can be best met with the concept of the program.
            (2) Whether the concept of the program can be 
        developed and produced within existing resources.
            (3) Whether the program should--
                    (A) continue as currently structured;
                    (B) continue in restructured form; or
                    (C) be terminated.
    (b) Determinations To Be Made in Assessing Whether Program 
Should Continue.--In making the assessment required by 
subsection (a)(3), the Secretary shall make a determination 
with respect to each of the following:
            (1) Whether each critical technology for the 
        program is at least Technical Readiness Level 6.
            (2) For each system and network component of the 
        program, what the key design and technology risks are, 
        based on System Functional Reviews, Preliminary Design 
        Reviews, and Technical Readiness Levels.
            (3) Whether actual demonstrations, rather than 
        simulations, have shown that the concept of the program 
        will work.
            (4) Whether actual demonstrations, rather than 
        plans, have shown that the software for the program is 
        functional.
            (5) What the cost estimate for the program is.
            (6) What the affordability assessment for the 
        program is, based on that cost estimate.
    (c) Report.--The Secretary shall submit to the 
congressional defense committees a report on the findings and 
conclusions of the milestone review required by subsection (a). 
The report shall include, and display, each of the assessments 
required by subsection (a) and each of the determinations 
required by subsection (b).
    (d) Restriction on Procurement Funds Effective Fiscal 
2009.--
            (1) In general.--For fiscal years beginning with 
        2009, the Secretary may not obligate any funds for 
        procurement for the Future Combat Systems program.
            (2) Exceptions.--Paragraph (1) does not apply with 
        respect to--
                    (A) the obligation of funds for costs 
                attributable to an insertion of new technology 
                (to include spinout systems) into the current 
                force, if the insertion is approved by the 
                Under Secretary of Defense for Acquisition, 
                Technology, and Logistics; or
                    (B) the obligation of funds for the non-
                line-of-sight cannon system.
            (3) Termination.--The requirement of paragraph (1) 
        terminates after the report required by subsection (c) 
        is submitted.

SEC. 215. DEDICATED AMOUNTS FOR IMPLEMENTING OR EVALUATING NAVY 
                    SHIPBUILDING TECHNOLOGY PROPOSALS UNDER DEFENSE 
                    ACQUISITION CHALLENGE PROGRAM.

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

SEC. 216. INDEPENDENT ESTIMATE OF COSTS OF THE FUTURE COMBAT SYSTEMS.

    (a) Independent Estimate Required.--
            (1) In general.--The Secretary of Defense shall 
        provide for the preparation of an independent estimate 
        of the anticipated costs of systems development and 
        demonstration with respect to the Future Combat 
        Systems.
            (2) Conduct of estimate.--The estimate required by 
        this subsection shall be prepared by a federally funded 
        research and development center selected by the 
        Secretary for purposes of this subsection.
            (3) Matters To be addressed.--The independent 
        estimate prepared under this subsection shall address 
        costs of research, development, test, and evaluation, 
        and costs of procurement, for--
                    (A) the system development and 
                demonstration phase of the core Future Combat 
                Systems;
                    (B) the Future Combat Systems technologies 
                to be incorporated into the equipment of the 
                current force of the Army (often referred to as 
                ``spinouts'');
                    (C) the installation kits for the 
                incorporation of such technologies into such 
                equipment;
                    (D) the systems treated as complementary 
                systems for the Future Combat Systems;
                    (E) science and technology initiatives that 
                support the Future Combat Systems program; and
                    (F) any pass-through charges anticipated to 
                be assessed by the lead systems integrator of 
                the Future Combat Systems and its major 
                subcontractors.
            (4) Submittal to congress.--Upon completion of the 
        independent estimate required by this subsection, the 
        Secretary shall submit to the congressional defense 
        committees a report on the estimate.
            (5) Deadline for submittal.--The report described 
        in paragraph (4) shall be submitted not later than 
        April 1, 2007.
    (b) Pass-Through Charge Defined.--In this section, the term 
``pass-through charge'' has the meaning given that term in 
section 805(c)(5) of the National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3373).

SEC. 217. FUNDING OF DEFENSE SCIENCE AND TECHNOLOGY PROGRAMS.

    (a) Failure To Comply With Funding Objective.--Section 212 
of the National Defense Authorization Act for Fiscal Year 2000 
(10 U.S.C. 2501 note) is amended in subsection (a) by striking 
``especially the Air Force Science and Technology Program,''.
    (b) Extension of Funding Objective.--Such section is 
amended in subsection (b) by striking ``through 2009'' and 
inserting ``through 2012''.
    (c) Actions Following Failure To Comply With Objective.--
Such section is further amended by adding at the end the 
following new subsection:
    ``(c) Actions Following Failure To Comply With Objective.--
If the proposed budget for a fiscal year covered by subsection 
(b) fails to comply with the objective set forth in that 
subsection, the Secretary of Defense shall submit to the 
congressional defense committees, at the same time that the 
Department of Defense budget justification materials for the 
next fiscal year are submitted to Congress--
            ``(1) a detailed, prioritized list, including 
        estimates of required funding, of highly-rated science 
        and technology projects received by the Department 
        through competitive solicitations and broad agency 
        announcements which--
                    ``(A) are not funded solely due to lack of 
                resources, but
                    ``(B) represent science and technology 
                opportunities that support the research and 
                development programs and goals of the military 
                departments and the Defense Agencies; and
            ``(2) a report, in both classified and unclassified 
        form, containing an analysis and evaluation of 
        international research and technology capabilities, 
        including an identification of any technology areas in 
        which the United States may not have global technical 
        leadership within the next 10 years, in each of the 
        technology areas described in the following plans:
                    ``(A) The most current Joint Warfighting 
                Science and Technology Plan required by section 
                270 of the National Defense Authorization Act 
                for Fiscal Year 1997 (10 U.S.C. 2501 note).
                    ``(B) The Defense Technology Area Plan of 
                the Department of Defense.
                    ``(C) The Basic Research Plan of the 
                Department of Defense.''.

SEC. 218. HYPERSONICS DEVELOPMENT.

    (a) Establishment of Joint Technology Office on 
Hypersonics.--The Secretary of Defense shall establish within 
the Office of the Secretary of Defense a joint technology 
office on hypersonics. The office shall carry out the program 
required under subsection (b), and shall have such other 
responsibilities relating to hypersonics as the Secretary shall 
specify.
    (b) Program on Hypersonics.--The joint technology office 
established under subsection (a) shall carry out a program for 
the development of hypersonics for defense purposes.
    (c) Responsibilities.--In carrying out the program required 
by subsection (b), the joint technology office established 
under subsection (a) shall do the following:
            (1) Coordinate and integrate current and future 
        research, development, test, and evaluation programs 
        and system demonstration programs of the Department of 
        Defense on hypersonics.
            (2) Undertake appropriate actions to ensure--
                    (A) close and continuous integration of the 
                programs on hypersonics of the military 
                departments with the programs on hypersonics of 
                the Defense Agencies;
                    (B) coordination of the programs referred 
                to in subparagraph (A) with the programs on 
                hypersonics of the National Aeronautics and 
                Space Administration; and
                    (C) that developmental testing resources 
                are adequate and facilities are made available 
                in a timely manner to support hypersonics 
                research, demonstration programs, and system 
                development.
            (3) Approve demonstration programs on hypersonic 
        systems.
            (4) Ensure that any demonstration program on 
        hypersonic systems that is carried out in any year 
        after its approval under paragraph (3) is carried out 
        only if certified under subsection (e) as being 
        consistent with the roadmap under subsection (d).
    (d) Roadmap.--
            (1) Roadmap required.--The joint technology office 
        established under subsection (a) shall develop, and 
        every two years revise, a roadmap for the hypersonics 
        programs of the Department of Defense.
            (2) Coordination.--The roadmap shall be developed 
        and revised under paragraph (1) in coordination with 
        the Joint Staff and in consultation with the National 
        Aeronautics and Space Administration.
            (3) Elements.--The roadmap shall include the 
        following matters:
                    (A) Anticipated or potential mission 
                requirements for hypersonics.
                    (B) Short-term, mid-term, and long-term 
                goals for the Department of Defense on 
                hypersonics, which shall be consistent with the 
                missions and anticipated requirements of the 
                Department over the applicable period.
                    (C) A schedule for meeting such goals, 
                including--
                            (i) the activities and funding 
                        anticipated to be required for meeting 
                        such goals; and
                            (ii) the activities of the National 
                        Aeronautics and Space Administration to 
                        be leveraged by the Department to meet 
                        such goals.
                    (D) The test and evaluation facilities 
                required to support the activities identified 
                in subparagraph (C), along with the schedule 
                and funding required to upgrade those 
                facilities, as necessary.
                    (E) Acquisition transition plans for 
                hypersonics.
            (4) Submittal to congress.--The Secretary shall 
        submit to the congressional defense committees--
                    (A) at the same time as the submittal to 
                Congress of the budget for fiscal year 2008 (as 
                submitted pursuant to section 1105 of title 31, 
                United States Code), the roadmap developed 
                under paragraph (1); and
                    (B) at the same time as the submittal to 
                Congress of the budget for each even-numbered 
                fiscal year after 2008, the roadmap revised 
                under paragraph (1).
    (e) Annual Review and Certification of Funding.--
            (1) Annual review.--The joint technology office 
        established under subsection (a) shall conduct on an 
        annual basis a review of--
                    (A) the funding available for research, 
                development, test, and evaluation and 
                demonstration programs within the Department of 
                Defense for hypersonics, in order to determine 
                whether or not such funding is consistent with 
                the roadmap developed under subsection (d); and
                    (B) the hypersonics demonstration programs 
                of the Department, in order to determine 
                whether or not such programs avoid duplication 
                of effort and support the goals of the 
                Department in a manner consistent with the 
                roadmap developed under subsection (d).
            (2) Certification.--The joint technology office 
        shall, as a result of each review under paragraph (1), 
        certify to the Secretary whether or not the funding and 
        programs subject to such review are consistent with the 
        roadmap developed under subsection (d).
            (3) Termination.--The requirements of this 
        subsection shall terminate after the submittal to 
        Congress of the budget for fiscal year 2012 pursuant to 
        section 1105 of title 31, United States Code.
    (f) Reports to Congress.--If, as a result of a review under 
subsection (e), funding or a program on hypersonics is 
certified under that subsection not to be consistent with the 
roadmap developed under subsection (d), the Secretary shall 
submit to the congressional defense committees, at the same 
time as the submittal to Congress of the budget (as submitted 
pursuant to section 1105 of title 31, United States Code), a 
report on such funding or program, as the case may be, 
describing how such funding or program is not consistent with 
the roadmap, together with a statement of the actions to be 
taken by the Department.

SEC. 219. REPORT ON PROGRAM FOR REPLACEMENT OF NUCLEAR WARHEADS ON 
                    CERTAIN TRIDENT SEA-LAUNCHED BALLISTIC MISSILES 
                    WITH CONVENTIONAL WARHEADS.

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

                  Subtitle C--Missile Defense Programs

SEC. 221. FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES.

    Upon approval by the Secretary of Defense, funds authorized 
to be appropriated for fiscal years 2007 and 2008 for research, 
development, test, and evaluation for the Missile Defense 
Agency may be used for the development and fielding of 
ballistic missile defense capabilities.

SEC. 222. LIMITATION ON USE OF FUNDS FOR SPACE-BASED INTERCEPTOR.

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

SEC. 223. POLICY OF THE UNITED STATES ON PRIORITIES IN THE DEVELOPMENT, 
                    TESTING, AND FIELDING OF MISSILE DEFENSE 
                    CAPABILITIES.

    (a) Findings.--Congress makes the following findings:
            (1) In response to the threat posed by ballistic 
        missiles, President George W. Bush in December 2002 
        directed the Secretary of Defense to proceed with the 
        fielding of an initial set of missile defense 
        capabilities in 2004 and 2005.
            (2) According to assessments by the intelligence 
        community of the United States, North Korea tested in 
        2005 a new solid propellant short-range ballistic 
        missile, conducted a launch of a Taepodong-2 ballistic 
        missile/space launch vehicle in 2006, and is likely 
        developing intermediate-range and intercontinental 
        ballistic missile capabilities that could someday reach 
        as far as the United States with a nuclear payload.
            (3) According to assessments by the intelligence 
        community of the United States, Iran continued in 2005 
        to test its medium-range ballistic missile, and the 
        danger that Iran will acquire a nuclear weapon and 
        integrate it with a ballistic missile Iran already 
        possesses is a reason for immediate concern.
    (b) Policy.--It is the policy of the United States that the 
Department of Defense accord a priority within the missile 
defense program to the development, testing, fielding, and 
improvement of effective near-term missile defense 
capabilities, including the ground-based midcourse defense 
system, the Aegis ballistic missile defense system, the Patriot 
PAC-3 system, the Terminal High Altitude Area Defense system, 
and the sensors necessary to support such systems.

SEC. 224. ONE-YEAR EXTENSION OF COMPTROLLER GENERAL ASSESSMENTS OF 
                    BALLISTIC MISSILE DEFENSE PROGRAMS.

    Section 232(g) of the National Defense Authorization Act 
for Fiscal Year 2002 (10 U.S.C. 2431 note) is amended--
            (1) in paragraph (1), by striking ``through 2007'' 
        and inserting ``through 2008''; and
            (2) in paragraph (2), by striking ``through 2008'' 
        and inserting ``through 2009''.

SEC. 225. SUBMITTAL OF PLANS FOR TEST AND EVALUATION OF THE OPERATIONAL 
                    CAPABILITY OF THE BALLISTIC MISSILE DEFENSE SYSTEM.

    Section 234(a) of the National Defense Authorization Act 
for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3174; 10 
U.S.C. 2431 note) is amended by adding at the end the following 
new paragraph:
            ``(3) 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. 226. ANNUAL REPORTS ON TRANSITION OF BALLISTIC MISSILE DEFENSE 
                    PROGRAMS TO THE MILITARY DEPARTMENTS.

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

                       Subtitle D--Other Matters

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

    (a) Revision to Report Requirement.--Section 2399(b) of 
title 10, United States Code, is amended--
            (1) by amending paragraph (2) to read as follows:
    ``(2) The Director shall analyze the results of the 
operational test and evaluation conducted for each major 
defense acquisition program. At the conclusion of such testing, 
the Director shall prepare a report stating--
            ``(A) the opinion of the Director as to--
                    ``(i) whether the test and evaluation 
                performed were adequate; and
                    ``(ii) whether the results of such test and 
                evaluation confirm that the items or components 
                actually tested are effective and suitable for 
                combat; and
            ``(B) additional information on the operational 
        capabilities of the items or components that the 
        Director considers appropriate based on the testing 
        conducted.'';
            (2) by redesignating paragraph (5) as paragraph 
        (6); and
            (3) by inserting after paragraph (4) the following:
    ``(5) If, before a final decision described in paragraph 
(4) is made for a major defense acquisition program, a decision 
is made within the Department of Defense to proceed to 
operational use of that program or to make procurement funds 
available for that program, the Director shall submit to the 
Secretary of Defense and the congressional defense committees 
the report with respect to that program under paragraph (2) as 
soon as practicable after the decision described in this 
paragraph is made.''.
    (b) Review and Revision of Policies and Practices.--
            (1) Review.--During fiscal year 2007, the Under 
        Secretary of Defense for Acquisition, Technology, and 
        Logistics and the Director of Operational Test and 
        Evaluation shall review Department of Defense policies 
        and practices on test and evaluation in order to--
                    (A) reaffirm the test and evaluation 
                principles that should guide traditional 
                acquisition programs; and
                    (B) determine how best to apply appropriate 
                test and evaluation principles to emerging 
                acquisition approaches.
            (2) Revised guidance.--If the Under Secretary 
        determines as a result of the review under paragraph 
        (1) that a revision of the policies and practices 
        referred to in that paragraph is necessary, the Under 
        Secretary and the Director shall jointly issue new or 
        revised guidance for the Department of Defense on test 
        and evaluation to address that determination.
    (c) Issues To Be Addressed.--In carrying out subsection 
(b), the Under Secretary shall address policies and practices 
on test and evaluation in order to--
            (1) ensure the performance of test and evaluation 
        activities with regard to--
                    (A) items that are acquired pursuant to the 
                authority for rapid acquisition and deployment 
                of items in section 806 of the Bob Stump 
                National Defense Authorization Act for Fiscal 
                Year 2003 (10 U.S.C. 2302 note);
                    (B) programs that are conducted pursuant to 
                the authority for spiral development in section 
                803 of the Bob Stump National Defense 
                Authorization Act for Fiscal Year 2003 (Public 
                Law 107-314; 116 Stat. 2603; 10 U.S.C. 2430 
                note), or other authority for the conduct of 
                incremental acquisition programs;
                    (C) systems that are acquired pursuant to 
                other emerging acquisition approaches, as 
                approved by the Under Secretary; and
                    (D) equipment that is not subject to the 
                operational test and evaluation requirements in 
                sections 2366 and 2399 of title 10, United 
                States Code, but that may require limited 
                operational test and evaluation for the purpose 
                of ensuring the safety and survivability of 
                such equipment and personnel using such 
                equipment; and
            (2) ensure the appropriate use, if any, of 
        operational test and evaluation resources to assess 
        technology readiness levels for the purpose of section 
        2366a of title 10, United States Code, and other 
        applicable technology readiness requirements.
    (d) Inclusion of Testing Needs in Strategic Plan.--The 
Director, Test Resource Management Center, shall ensure that 
the strategic plan for Department of Defense test and 
evaluation resources developed pursuant to section 196 of title 
10, United States Code--
            (1) reflects any testing needs of the Department of 
        Defense that are identified as a result of activities 
        under subsection (b); and
            (2) includes an assessment of the test and 
        evaluation facilities, resources, and budgets that will 
        be required to meet such needs.
    (e) Report to Congress.--Not later than nine months after 
the date of the enactment of this Act, the Under Secretary and 
the Director of Operational Test and Evaluation shall submit to 
the congressional defense committees a report on the review 
conducted under paragraph (1) of subsection (b), including any 
new or revised guidance issued pursuant to paragraph (2) of 
that subsection.
    (f) Clarification of Duties With Respect to Force 
Protection Equipment.--Section 139(b) of title 10, United 
States Code, is amended--
            (1) by redesignating paragraphs (3) through (6) as 
        paragraphs (4) through (7), respectively; and
            (2) by inserting after paragraph (2) the following:
            ``(3) provide guidance to and consult with the 
        officials described in paragraph (2) with respect to 
        operational test and evaluation or survivability 
        testing (or both) within the Department of Defense of 
        force protection equipment (including non-lethal 
        weapons), which, in such a case--
                    ``(A) shall be guidance and consultation 
                for the purposes of--
                            ``(i) expediting suitable 
                        operational test and evaluation;
                            ``(ii) providing objective subject-
                        matter expertise;
                            ``(iii) encouraging data sharing 
                        between Department of Defense 
                        components; and
                            ``(iv) where appropriate, 
                        facilitating the use of common test 
                        standards; and
                    ``(B) does not authorize the Director--
                            ``(i) to approve test and 
                        evaluation plans for such equipment; or
                            ``(ii) to in any manner delay 
                        deployment of such equipment;''.

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

    Section 2365(f) of title 10, United States Code, is amended 
by striking ``September 30, 2006'' and inserting ``September 
30, 2011''.

SEC. 233. SENSE OF CONGRESS ON TECHNOLOGY SHARING OF JOINT STRIKE 
                    FIGHTER TECHNOLOGY.

    It is the sense of Congress that the Secretary of Defense 
should share technology with regard to the Joint Strike Fighter 
between the United States Government and the Government of the 
United Kingdom consistent with the national security interests 
of both nations.

SEC. 234. REPORT ON VEHICLE-BASED ACTIVE PROTECTION SYSTEMS FOR CERTAIN 
                    BATTLEFIELD THREATS.

    (a) Independent Assessment.--The Secretary of Defense shall 
enter into a contract with an appropriate entity independent of 
the United States Government to conduct an assessment of 
various foreign and domestic technological approaches to 
vehicle-based active protection systems for defense against 
both chemical energy and kinetic energy top-attack and direct 
fire threats, including anti-tank missiles and rocket propelled 
grenades, mortars, and other similar battlefield threats.
    (b) Report.--
            (1) Report required.--The contract required by 
        subsection (a) shall require the entity entering into 
        such contract to submit to the Secretary of Defense, 
        and to the congressional defense committees, not later 
        than 180 days after the date of the enactment of this 
        Act, a report on the assessment required by that 
        subsection.
            (2) Elements.--The report required under paragraph 
        (1) shall include--
                    (A) a detailed comparative analysis and 
                assessment of the technical approaches covered 
                by the assessment under subsection (a), 
                including the feasibility, military utility, 
                cost, and potential short-term and long-term 
                development and deployment schedule of such 
                approaches; and
                    (B) any other elements specified by the 
                Secretary in the contract under subsection (a).

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

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

                  Subtitle B--Environmental Provisions

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

     Subtitle C--Program Requirements, Restrictions, and Limitations

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

                 Subtitle D--Workplace and Depot Issues

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

                           Subtitle E--Reports

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

                        Subtitle F--Other Matters

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

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal 
year 2007 for the use of the Armed Forces and other activities 
and agencies of the Department of Defense for expenses, not 
otherwise provided for, for operation and maintenance, in 
amounts as follows:
            (1) For the Army, $24,416,352,000.
            (2) For the Navy, $31,157,639,000.
            (3) For the Marine Corps, $3,863,462,000.
            (4) For the Air Force, $31,081,257,000.
            (5) For Defense-wide activities, $20,093,876,000.
            (6) For the Army Reserve, $2,260,802,000.
            (7) For the Naval Reserve, $1,275,764,000.
            (8) For the Marine Corps Reserve, $211,311,000.
            (9) For the Air Force Reserve, $2,698,400,000.
            (10) For the Army National Guard, $4,776,421,000.
            (11) For the Air National Guard, $5,292,517,000.
            (12) For the United States Court of Appeals for the 
        Armed Forces, $11,721,000.
            (13) For Environmental Restoration, Army, 
        $413,794,000.
            (14) For Environmental Restoration, Navy, 
        $304,409,000.
            (15) For Environmental Restoration, Air Force, 
        $423,871,000.
            (16) For Environmental Restoration, Defense-wide, 
        $18,431,000.
            (17) For Environmental Restoration, Formerly Used 
        Defense Sites, $282,790,000.
            (18) For Former Soviet Union Threat Reduction 
        programs, $372,128,000.
            (19) For Overseas Humanitarian Disaster and Civic 
        Aid, $63,204,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal 
year 2007 for the use of the Armed Forces and other activities 
and agencies of the Department of Defense for providing capital 
for working capital and revolving funds in amounts as follows:
            (1) For the Defense Working Capital Funds, 
        $161,998,000.
            (2) For the National Defense Sealift Fund, 
        $1,071,932,000.
            (3) For the Defense Working Capital Fund, Defense 
        Commissary, $1,184,000,000.
            (4) For the Pentagon Reservation Maintenance 
        Revolving Fund, $18,500,000.

SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS.

    (a) Defense Health Program.--Funds are hereby authorized to 
be appropriated for the Department of Defense for fiscal year 
2007 for expenses, not otherwise provided for, for the Defense 
Health Program, $21,426,621,000, of which--
            (1) $20,894,663,000 is for Operation and 
        Maintenance;
            (2) $135,603,000 is for Research, Development, 
        Test, and Evaluation; and
            (3) $396,355,000 is for Procurement.
    (b) Chemical Agents and Munitions Destruction, Defense.--
(1) Funds are hereby authorized to be appropriated for the 
Department of Defense for fiscal year 2007 for expenses, not 
otherwise provided for, for Chemical Agents and Munitions 
Destruction, Defense, $1,277,304,000, of which--
                    (A) $1,046,290,000 is for Operation and 
                Maintenance; and
                    (B) $231,014,000 is for Research, 
                Development, Test, and Evaluation.
    (2) Amounts authorized to be appropriated under paragraph 
(1) are authorized for--
            (A) the destruction of lethal chemical agents and 
        munitions in accordance with section 1412 of the 
        Department of Defense Authorization Act for Fiscal Year 
        1986 (50 U.S.C. 1521); and
            (B) the destruction of chemical warfare materiel of 
        the United States that is not covered by section 1412 
        of such Act.
    (c) Drug Interdiction and Counter-Drug Activities, Defense-
Wide.--Funds are hereby authorized to be appropriated for the 
Department of Defense for fiscal year 2006 for expenses, not 
otherwise provided for, for Drug Interdiction and Counter-Drug 
Activities, Defense-wide, $926,890,000.
    (d) Defense Inspector General.--Funds are hereby authorized 
to be appropriated for the Department of Defense for fiscal 
year 2006 for expenses, not otherwise provided for, for the 
Office of the Inspector General of the Department of Defense, 
$216,297,000, of which--
            (1) $214,897,000 is for Operation and Maintenance; 
        and
            (2) $1,400,000 is for Procurement.

                  Subtitle B--Environmental Provisions

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

    Section 2701(k) of title 10, United States Code, is 
amended--
            (1) in paragraph (1)--
                    (A) by striking ``establish'' and inserting 
                ``designate''; and
                    (B) by inserting ``research,'' after 
                ``characterization,'';
            (2) by striking paragraph (2) and redesignating 
        paragraph (3) as paragraph (4); and
            (3) by inserting after paragraph (1) the following 
        new paragraphs:
    ``(2) The position of program manager shall be filled by--
            ``(A) an employee in a position that is equivalent 
        to pay grade O-6 or above; or
            ``(B) a member of the armed forces who is serving 
        in the grade of colonel or, in the case of the Navy, 
        captain, or in a higher grade.
    ``(3) The program manager shall report to the Deputy Under 
Secretary of Defense for Installations and Environment.''.

SEC. 312. FUNDING OF COOPERATIVE AGREEMENTS UNDER ENVIRONMENTAL 
                    RESTORATION PROGRAM.

    Section 2701(d)(2) of title 10, United States Code, is 
amended by adding at the end the following new sentence: ``This 
two-year limitation does not apply to an agreement funded using 
amounts in the Department of Defense Base Closure Account 1990 
or the Department of Defense Base Closure Account 2005 
established under sections 2906 and 2906A of the Defense Base 
Closure and Realignment Act of 1990 (part A of title XXIX of 
Public Law 101-510; 10 U.S.C. 2687 note).''.

SEC. 313. RESPONSE PLAN FOR REMEDIATION OF UNEXPLODED ORDNANCE, 
                    DISCARDED MILITARY MUNITIONS, AND MUNITIONS 
                    CONSTITUENTS.

    (a) Performance Goals for Remediation.--The Secretary of 
Defense shall set the following remediation goals with regard 
to unexploded ordnance, discarded military munitions, and 
munitions constituents:
            (1) To complete, by not later than September 30, 
        2007, preliminary assessments of unexploded ordnance, 
        discarded military munitions, and munitions 
        constituents at all active installations and formerly 
        used defense sites (other than operational ranges).
            (2) To complete, by not later than September 30, 
        2010, site inspections of unexploded ordnance, 
        discarded military munitions, and munitions 
        constituents at all active installations and formerly 
        used defense sites (other than operational ranges).
            (3) To achieve, by not later than September 30, 
        2009, a remedy in place or response complete for 
        unexploded ordnance, discarded military munitions, and 
        munitions constituents at all military installations 
        closed or realigned as part of a round of defense base 
        closure and realignment occurring prior to the 2005 
        round.
            (4) To achieve, by a date certain established by 
        the Secretary of Defense, a remedy in place or response 
        complete for unexploded ordnance, discarded military 
        munitions, and munitions constituents at all active 
        installations and formerly used defense sites (other 
        than operational ranges) and all military installations 
        realigned or closed under the 2005 round of defense 
        base closure and realignment.
    (b) Response Plan Required.--
            (1) In general.--Not later than March 1, 2007, the 
        Secretary of Defense shall submit to the congressional 
        defense committees a comprehensive plan for addressing 
        the remediation of unexploded ordnance, discarded 
        military munitions, and munitions constituents at 
        current and former defense sites (other than 
        operational ranges).
            (2) Content.--The plan required by paragraph (1) 
        shall include--
                    (A) a schedule, including interim goals, 
                for achieving the goals described in paragraphs 
                (1) through (3) of subsection (a), based upon 
                the Munitions Response Site Prioritization 
                Protocol established by the Department of 
                Defense;
                    (B) such interim goals as the Secretary 
                determines feasible for efficiently achieving 
                the goal required under paragraph (4) of such 
                subsection; and
                    (C) an estimate of the funding required to 
                achieve the goals established pursuant to such 
                subsection and the interim goals established 
                pursuant to subparagraphs (A) and (B).
            (3) Updates.--Not later than March 15 of 2008, 
        2009, and 2010, the Secretary shall submit to the 
        congressional defense committees an update of the plan 
        required under paragraph (1). The Secretary may include 
        the update in the report on environmental restoration 
        activities that is submitted to Congress under section 
        2706(a) of title 10, United States Code, in the year in 
        which that update is required and may include in the 
        update any adjustment to the remediation goals 
        established under subsection (a) that the Secretary 
        determines necessary to respond to unforeseen 
        circumstances.
    (c) Report on Reuse Standards and Principles.--Not later 
than March 1, 2007, the Secretary of Defense shall submit to 
the congressional defense committees a report on the status of 
the efforts of the Department of Defense to achieve agreement 
with relevant regulatory agencies on appropriate reuse 
standards or principles, including--
            (1) a description of any standards or principles 
        that have been agreed upon; and
            (2) a discussion of any issues that remain in 
        disagreement, including the impact that any such 
        disagreement is likely to have on the ability of the 
        Department of Defense to carry out the response plan 
        required by subsection (b).
    (d) Definitions.--In this section:
            (1) The terms ``unexploded ordnance'' and 
        ``operational range'' have the meanings given such 
        terms in section 101(e) of title 10, United States 
        Code.
            (2) The terms ``discarded military munitions'', 
        ``munitions constituents'', and ``defense site'' have 
        the meanings given such terms in section 2710(e) of 
        such title.
    (e) Conforming Repeal.--Section 313 of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 
Stat. 1051; 10 U.S.C. 2706 note) is repealed.

SEC. 314. RESEARCH ON EFFECTS OF OCEAN DISPOSAL OF MUNITIONS.

    (a) Identification of Disposal Sites.--
            (1) Historical review.--The Secretary of Defense 
        shall conduct a historical review of available records 
        to determine the number, size, and probable locations 
        of sites where the Armed Forces disposed of military 
        munitions in coastal waters. The historical review 
        shall, to the extent possible, identify the types of 
        munitions at individual sites.
            (2) Cooperation.--The Secretary shall request the 
        assistance of the Coast Guard, the National Oceanic and 
        Atmospheric Administration, and other relevant Federal 
        agencies in conducting the review required by this 
        subsection.
            (3) Interim reports.--The Secretary shall 
        periodically, but no less often than annually, release 
        any new information obtained during the historical 
        review conducted under paragraph (1). The Secretary may 
        withhold from public release the exact nature and 
        locations of munitions the potential unauthorized 
        retrieval of which could pose a significant threat to 
        the national defense or public safety.
            (4) Inclusion of information in annual report on 
        environmental restoration activities.--The Secretary 
        shall include the information obtained pursuant to the 
        review conducted under paragraph (1) in the annual 
        report on environmental restoration activities 
        submitted to Congress under section 2706 of title 10, 
        United States Code.
            (5) Final report.--The Secretary shall complete the 
        historical review required under paragraph (1) and 
        submit a final report on the findings of such review in 
        the annual report on environmental restoration 
        activities submitted to Congress for fiscal year 2009.
    (b) Identification of Navigational and Safety Hazards.--
            (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 of Defense shall institute appropriate monitoring 
mechanisms at that site and report to the congressional defense 
committees on any additional measures that may be necessary to 
address the release or risk, as applicable.
    (e) Definitions.--In this section:
            (1) The term ``coastal waters'' means that part of 
        the ocean extending from the coast line of the United 
        States to the outer boundary of the outer Continental 
        Shelf.
            (2) The term ``coast line'' has the meaning given 
        that term in section 2(c) of the Submerged Lands Act 
        (43 U.S.C. 1301(c)).
            (3) The term ``military munitions'' has the meaning 
        given that term in section 101(e) of title 10, United 
        States Code.
            (4) The term ``outer Continental Shelf'' has the 
        meaning given that term in section 2(a) of the Outer 
        Continental Shelf Lands Act (43 U.S.C. 1331(a)).

SEC. 315. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR CERTAIN 
                    COSTS IN CONNECTION WITH MOSES LAKE WELLFIELD 
                    SUPERFUND SITE, MOSES LAKE, WASHINGTON.

    (a) Authority To Reimburse.--
            (1) Transfer amount.--Using funds described in 
        subsection (b), the Secretary of Defense may transfer 
        not more than $111,114.03 to the Moses Lake Wellfield 
        Superfund Site 10-6J Special Account.
            (2) Purpose of reimbursement.--The payment under 
        paragraph (1) is to reimburse the Environmental 
        Protection Agency for its costs incurred in overseeing 
        a remedial investigation/feasibility study performed by 
        the Department of the Army under the Defense 
        Environmental Restoration Program at the former Larson 
        Air Force Base, Moses Lake Superfund Site, Moses Lake, 
        Washington.
            (3) Interagency agreement.--The reimbursement 
        described in paragraph (2) is provided for in the 
        interagency agreement entered into by the Department of 
        the Army and the Environmental Protection Agency for 
        the Moses Lake Wellfield Superfund Site in March 1999.
    (b) Source of Funds.--Any payment under subsection (a) 
shall be made using funds authorized to be appropriated by 
section 301(17) for operation and maintenance for Environmental 
Restoration, Formerly Used Defense Sites.
    (c) Use of Funds.--The Environmental Protection Agency 
shall use the amount transferred under subsection (a) to pay 
costs incurred by the Agency at the Moses Lake Wellfield 
Superfund Site.

SEC. 316. TRANSFER OF GOVERNMENT-FURNISHED URANIUM STORED AT SEQUOYAH 
                    FUELS CORPORATION, GORE, OKLAHOMA.

    (a) Transport and Disposal.--Subject to subsection (c), the 
Secretary of the Army shall transport to an authorized disposal 
facility for appropriate disposal all of the Government-
furnished uranium in the chemical and physical form in which it 
is stored at the Sequoyah Fuels Corporation site in Gore, 
Oklahoma.
    (b) Source of Funds.--Funds authorized to be appropriated 
pursuant to section 301(1) for operation and maintenance for 
the Army may be used for the transport and disposal required 
under subsection (a).
    (c) Liability.--The Secretary may only transport uranium 
under subsection (a) after receiving from Sequoyah Fuels 
Corporation a written agreement satisfactory to the Secretary 
that provides that--
            (1) the United States assumes no liability, legal 
        or otherwise, of Sequoyah Fuels Corporation by 
        transporting the uranium; and
            (2) the Sequoyah Fuels Corporation waives any and 
        all claims it may have against the United States 
        related to the transported uranium.
    (d) Completion of Transport.--The Secretary shall complete 
the transport of uranium under subsection (a) not later than 
March 31, 2007.

SEC. 317. EXTENSION OF AUTHORITY TO GRANT EXEMPTIONS TO CERTAIN 
                    REQUIREMENTS.

    (a) Amendment to Toxic Substances Control Act.--Section 
6(e)(3) of the Toxic Substances Control Act (15 U.S.C. 
2605(e)(3)) is amended--
            (1) in subparagraph (A), by striking 
        ``subparagraphs (B) and (C)'' and inserting 
        ``subparagraphs (B), (C), and (D)'';
            (2) in subparagraph (B), by striking ``but not more 
        than one year from the date it is granted'' and 
        inserting ``but not more than 1 year from the date it 
        is granted, except as provided in subparagraph (D)''; 
        and
            (3) by adding at the end the following new 
        subparagraph:
    ``(D) The Administrator may extend an exemption granted 
pursuant to subparagraph (B) that has not yet expired for a 
period not to exceed 60 days for the purpose of authorizing the 
Secretary of Defense and the Secretaries of the military 
departments to provide for the transportation into the customs 
territory of the United States of polychlorinated biphenyls 
generated by or under the control of the Department of Defense 
for purposes of their disposal, treatment, or storage in the 
customs territory of the United States if those polychlorinated 
biphenyls are already in transit from their storage locations 
but the Administrator determines, in the sole discretion of the 
Administrator, they would not otherwise arrive in the customs 
territory of the United States within the period of the 
original exemption. The Administrator shall promptly publish 
notice of such extension in the Federal Register.''.
    (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 foreign-manufactured polychlorinated biphenyls under the 
control of the Department of Defense outside the United States. 
The report shall address, at a minimum--
            (1) the remaining volume of such foreign-
        manufactured polychlorinated biphenyls that may require 
        transportation into the customs territory of the United 
        States for disposal, treatment, or storage; and
            (2) the efforts that have been made by the 
        Department of Defense and other Federal agencies to 
        reduce such volume by--
                    (A) reducing the volume of foreign-
                manufactured polychlorinated biphenyls under 
                the control of the Department of Defense 
                outside the United States; or
                    (B) developing alternative options for the 
                disposal, treatment, or storage of such 
                foreign-manufactured polychlorinated biphenyls.

SEC. 318. NATIONAL ACADEMY OF SCIENCES STUDY ON HUMAN EXPOSURE TO 
                    CONTAMINATED DRINKING WATER AT CAMP LEJEUNE, NORTH 
                    CAROLINA.

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

    Subtitle C--Program Requirements, Restrictions, and Limitations

SEC. 321. 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. 322. FUNDS FOR EXHIBITS FOR THE NATIONAL MUSEUMS OF THE ARMED 
                    FORCES.

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

SEC. 323. PRIORITIZATION OF FUNDS FOR EQUIPMENT READINESS AND STRATEGIC 
                    CAPABILITY.

    (a) Prioritization of Funds.--The Secretary of Defense 
shall take such steps as may be necessary through the planning, 
programming, budgeting, and execution systems of the Department 
of Defense to ensure that financial resources are provided for 
each fiscal year as necessary to enable--
            (1) the Secretary of each military department to 
        meet the requirements of that military department for 
        that fiscal year for the repair, recapitalization, and 
        replacement of equipment used in the global war on 
        terrorism; and
            (2) the Secretary of the Army to meet the 
        requirements of the Army for that fiscal year, in 
        addition to the requirements under paragraph (1), for--
                    (A) the fulfillment of the equipment 
                requirements of units transforming to 
                modularity in accordance with the Modular Force 
                Initiative report submitted to Congress in 
                March 2006; and
                    (B) the reconstitution of equipment and 
                materiel in prepositioned stocks in accordance 
                with requirements under the Army Prepositioned 
                Stocks Strategy 2012 or a subsequent strategy 
                implemented under the guidelines in section 
                2229 of title 10, United States Code.
    (b) Submission of Budget Information.--
            (1) Submission of information.--As part of the 
        budget justification materials submitted to Congress in 
        support of the President's budget for a fiscal year or 
        a request for supplemental appropriations, the 
        Secretary of Defense shall include the following:
                    (A) The information described in paragraph 
                (2) for the fiscal year for which the budget 
                justification materials are submitted, the 
                fiscal year during which the materials are 
                submitted, and the preceding fiscal year.
                    (B) The information described in paragraph 
                (2) for each of the fiscal years covered by the 
                future-years defense program for the fiscal 
                year in which the report is submitted based on 
                estimates of any amounts required to meet each 
                of the requirements under subsection (a) that 
                are not met for that fiscal year and are 
                deferred to the future-years defense program.
                    (C) A consolidated budget justification 
                summary of the information submitted under 
                subparagraphs (A) and (B).
            (2) Information described.--The information 
        described in this paragraph is information that clearly 
        and separately identifies, by appropriations account, 
        budget activity, activity group, sub-activity group, 
        and program element or line item, the amounts requested 
        for the programs, projects, and activities of--
                    (A) each of the military departments for 
                the repair, recapitalization, or replacement of 
                equipment used in the global war on terrorism; 
                and
                    (B) the Army for--
                            (i) the fulfillment of the 
                        equipment requirements of units 
                        transforming to modularity; and
                            (ii) the reconstitution of 
                        equipment and materiel in prepositioned 
                        stocks.
            (3) Additional information in first report.--As 
        part of the budget justification materials submitted to 
        Congress in support of the President's budget for 
        fiscal year 2008, the Secretary of Defense shall also 
        include the information described in paragraph (2) for 
        fiscal years 2003, 2004, and 2005.
    (c) Annual Report on Army Progress.--On the date on which 
the President submits to Congress the budget for a fiscal year 
under section 1105 of title 31, United States Code, the 
Secretary of the Army shall submit to the congressional defense 
committees a report setting forth the progress of the Army in 
meeting the requirements of subsection (a). Any information 
required to be included in the report concerning funding 
priorities under paragraph (1) or (2) of subsection (a) shall 
be itemized by active duty component and reserve component. 
Each such report shall include the following:
            (1) A complete itemization of the requirements for 
        the funding priorities in subsection (a), including an 
        itemization for all types of modular brigades and an 
        itemization for the replacement of equipment withdrawn 
        or diverted from the reserve component for use in the 
        global war on terrorism.
            (2) A list of any shortfalls that exist between 
        available funding, equipment, supplies, and industrial 
        capacity and required funding, equipment, supplies, and 
        industrial capacity in accordance with the funding 
        priorities in subsection (a).
            (3) A list of the requirements for the funding 
        priorities in subsection (a) that the Army has included 
        in the budget for that fiscal year, including a 
        detailed listing of the type, quantity, and cost of the 
        equipment the Army plans to repair, recapitalize, or 
        procure, set forth by appropriations account and Army 
        component.
            (4) An assessment of the progress made during that 
        fiscal year toward meeting the overall requirements of 
        the funding priorities in subsection (a).
            (5) A schedule for meeting the requirements of 
        subsection (a).
            (6) A description of how the Army defines costs 
        associated with modularity versus the costs associated 
        with modernizing equipment platforms and the reset 
        (repair, recapitalization, or replacement) of equipment 
        used during the global war on terrorism, including the 
        funding expended on, and the future funding required 
        for, such reset requirements.
            (7) A complete itemization of the amount of funds 
        expended to date on the modular brigades.
            (8) The results of Army assessments of modular 
        force capabilities, including lessons learned from 
        existing modular units and any modifications that have 
        been made to modularity.
            (9) The comments of the Chief of the National Guard 
        Bureau and the Chief of the Army Reserve on each of the 
        items described in paragraphs (1) through (8).
    (d) Annual Comptroller General Report on Army Progress.--
Not later than 45 days after the date on which the President 
submits to Congress the budget for a fiscal year under section 
1105 of title 31, United States Code, the Comptroller General 
shall submit to the congressional defense committees a report 
containing the assessment of the Comptroller General on the 
following:
            (1) The progress of the Army in meeting the 
        requirements of subsection (a), including progress in 
        equipping and manning modular units in the regular 
        components and reserve components of the Armed Forces.
            (2) The use of funds by the Army for meeting the 
        requirements of subsection (a).
            (3) The progress of the Army in conducting further 
        testing and evaluations of designs under the modularity 
        initiative.
    (e) Termination of Report Requirements.--The requirement 
for the submission of a report under subsection (c) or (d) 
shall terminate on the date of the submission of the report 
required to be submitted under that subsection to accompany or 
follow the President's budget submission for fiscal year 2012.

SEC. 324. LIMITATION ON DEPLOYMENT OF MARINE CORPS TOTAL FORCE SYSTEM 
                    TO NAVY.

    (a) Limitation.--The Secretary of the Navy may not deploy 
the Marine Corps Total Force System (MCTFS) (or any derivative 
system of the MCTFS) to the Navy until the date on which the 
congressional defense committees and the Secretary of the Navy 
receive the written determination of the Chairman of the 
Defense Business Systems Management Committee submitted under 
subsection (d) that the deployment of the MCTFS to the Navy is 
in the best interests of the Department of Defense.
    (b) Report Required.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of the Navy 
shall submit to the congressional defense committees and the 
Comptroller General a report on the Marine Corps Total Force 
System (MCTFS). The report shall include the following:
            (1) An analysis of alternatives to the MCTFS, 
        including a detailed comparison between the cost of 
        deploying and operating the MCTFS within the Navy and 
        the cost of including the Navy in the Defense 
        Integrated Military Human Resources System.
            (2) A business case analysis, including an analysis 
        of the costs and benefits to both the Department of 
        Navy and the Department of Defense of the alternatives 
        to the MCTFS considered under the analysis required by 
        paragraph (1).
            (3) An analysis of the compatibility of the MCTFS 
        with the enterprise architecture of the Department of 
        Defense, including a detailed estimate of all interface 
        costs with current or planned Department-wide military 
        manpower, personnel, and pay information technology 
        systems.
    (c) Comptroller General Assessment.--Not later than 90 days 
after the date on which the Comptroller General receives the 
report submitted under subsection (b), the Comptroller General 
shall submit to the congressional defense committees and to the 
Chairman of the Defense Business Systems Management Committee a 
written assessment of the report.
    (d) Determination of Chairman of Defense Business Systems 
Management Committee.--Not sooner than 120 days after the date 
on which the Comptroller General receives the report submitted 
under subsection (b), the Chairman of the Defense Business 
Systems Management Committee shall review the analysis included 
in the report, together with any other relevant information 
available to the Chairman, and submit to the congressional 
defense committees and the Secretary of the Navy the written 
determination of the Chairman of whether the deployment of the 
MCTFS to the Navy is in the best interests of the Department of 
Defense.

                 Subtitle D--Workplace and Depot Issues

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

    (a) Permanent Exclusion.--Section 2474(f) of title 10, 
United States Code, is amended--
            (1) by striking ``(1) Amounts'' and inserting 
        ``Amounts'';
            (2) by striking ``entered into during fiscal years 
        2003 through 2009''; and
            (3) by striking paragraph (2).
    (b) Inclusion of Certain Items in Annual Report.--
            (1) Inclusion of certain items.--Paragraph (2) of 
        section 2466(d) of such title is amended to read as 
        follows:
    ``(2) Each report required under paragraph (1) shall 
include as a separate item any expenditure covered by section 
2474(f) of this title that was made during the fiscal year 
covered by the report and shall specify the amount and nature 
of each such expenditure.''.
            (2) Conforming amendment.--The heading for 
        subsection (d) of section 2466 of such title is amended 
        to read as follows: ``Annual Report.--''.

SEC. 332. MINIMUM CAPITAL INVESTMENT FOR CERTAIN DEPOTS.

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

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

    ``(a) Minimum Investment.--Each fiscal year, the Secretary 
of a military department shall invest in the capital budgets of 
the covered depots of that military department a total amount 
equal to not less than six percent of the average total 
combined workload funded at all the depots of that military 
department for the preceding three fiscal years.
    ``(b) Capital Budget.--For purposes of this section, the 
capital budget of a depot includes investment funds spent on 
depot infrastructure, equipment, and process improvement in 
direct support of depot operations.
    ``(c) Waiver.--The Secretary of Defense may waive the 
requirement under subsection (a) with respect to a military 
department for a fiscal year if the Secretary determines that 
the waiver is necessary for reasons of national security. 
Whenever the Secretary makes such a waiver, the Secretary shall 
notify the congressional defense committees of the waiver and 
the reasons for the waiver.
    ``(d) Annual Report.--(1) Not later than 45 days after the 
date on which the President submits to Congress the budget for 
a fiscal year under section 1105 of title 31, the Secretary of 
Defense shall submit to the congressional defense committees a 
report containing budget justification documents summarizing 
the level of capital investment for each military department as 
of the end of the preceding fiscal year.
    ``(2) Each report submitted under paragraph (1) shall 
include the following:
            ``(A) A specification of any statutory, regulatory, 
        or operational impediments to achieving the requirement 
        under subsection (a) with respect to each military 
        department.
            ``(B) A description of the benchmarks for capital 
        investment established for each covered depot and 
        military department and the relationship of the 
        benchmarks to applicable performance measurement 
        methods used in the private sector.
            ``(C) If the requirement under subsection (a) is 
        not met for a military department for the fiscal year 
        covered by the report, a statement of the reasons why 
        the requirement was not met and a plan of actions for 
        meeting the requirement for the fiscal year beginning 
        in the year in which such report is submitted.
    ``(e) Covered Depot.--In this section, the term `covered 
depot' means any of the following:
            ``(1) With respect to the Department of the Army:
                    ``(A) Anniston Army Depot, Alabama.
                    ``(B) Letterkenny Army Depot, Pennsylvania.
                    ``(C) Tobyhanna Army Depot, Pennsylvania.
                    ``(D) Corpus Christi Army Depot, Texas.
                    ``(E) Red River Army Depot, Texas.
            ``(2) With respect to the Department of the Navy:
                    ``(A) Fleet Readiness Center East Site, 
                Cherry Point, North Carolina.
                    ``(B) Fleet Readiness Center Southwest 
                Site, North Island, California.
                    ``(C) Fleet Readiness Center Southeast 
                Site, Jacksonville, Florida.
                    ``(D) Portsmouth Naval Shipyard, Maine.
                    ``(E) Pearl Harbor Naval Shipyard, Hawaii.
                    ``(F) Puget Sound Naval Shipyard, 
                Washington.
                    ``(G) Norfolk Naval Shipyard, Virginia.
                    ``(H) Marine Corps Logistics Base, Albany, 
                Georgia.
                    ``(I) Marine Corps Logistics Base, Barstow, 
                California.
            ``(3) With respect to the Department of the Air 
        Force:
                    ``(A) Warner-Robins Air Logistics Center, 
                Georgia.
                    ``(B) Ogden Air Logistics Center, Utah.
                    ``(C) Oklahoma City Air Logistics Center, 
                Oklahoma.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

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

    (c) Effective Date.--Section 2476 of title 10, United 
States Code, as added by subsection (a), shall take effect on 
October 1, 2006.
    (d) Two Year Phase-in for Departments of the Army and the 
Navy.--
            (1) Reduced percentage of required investment for 
        fiscal years 2007 and 2008.--The Secretary of the Army 
        shall apply subsection (a) of section 2476 of title 10, 
        United States Code, as added by subsection (a), to the 
        covered depots of the Army, and the Secretary of the 
        Navy shall apply such subsection to the covered depots 
        of the Department of the Navy--
                    (A) for fiscal year 2007, by substituting 
                ``four percent'' for ``six percent''; and
                    (B) for fiscal year 2008, by substituting 
                ``five percent'' for ``six percent''.
            (2) Covered depots.--In this subsection, the term 
        ``covered depot'' has the meaning given that term in 
        subsection (e) of section 2476 of title 10, United 
        States Code, as added by subsection (a).

SEC. 333. EXTENSION OF TEMPORARY AUTHORITY FOR CONTRACTOR PERFORMANCE 
                    OF SECURITY GUARD FUNCTIONS.

    (a) Extension and Limitation on Total Number of 
Contractors.--Section 332(c) of the Bob Stump National Defense 
Authorization Act for Fiscal Year 2003 (Public Law 107-314) is 
amended--
            (1) by striking ``September 30, 2007'' both places 
        it appears and inserting ``September 30, 2009'';
            (2) by redesignating subsection (d) as subsection 
        (e); and
            (3) by inserting after subsection (c) the following 
        new subsection (d):
    ``(d) Limitation.--The total number of personnel employed 
to perform security guard functions under all contracts entered 
into pursuant to this section shall not exceed--
            ``(1) for fiscal year 2007, the total number of 
        such personnel employed under such contracts on October 
        1, 2006;
            ``(2) for fiscal year 2008, the number equal to 90 
        percent of the total number of such personnel employed 
        under such contracts on October 1, 2006; and
            ``(3) for fiscal year 2009, the number equal to 80 
        percent of the total number of such personnel employed 
        under such contracts on October 1, 2006.''.
    (b) Report on Contractor Performance of Security-Guard 
Functions.--Not later than February 1, 2007, the Secretary of 
Defense shall submit to the Committee on Armed Services of the 
Senate and the Committee on Armed Services of the House of 
Representatives a report on contractor performance of security 
guard functions under section 332 of the Bob Stump National 
Defense Authorization Act for Fiscal Year 2003 (Public Law 107-
314). The report shall include the following:
            (1) An explanation of progress made toward 
        implementing each of the seven recommendations in the 
        Comptroller General report entitled ``Contract Security 
        Guards: Army's Guard Program Requires Greater Oversight 
        and Reassessment of Acquisition Approach'' (GAO-06-
        284).
            (2) An assessment, taking into considerations the 
        observations made by the Comptroller General on the 
        report of the Department of Defense of November 2005 
        that is entitled ``Department of Defense Installation 
        Security Guard Requirement Assessment and Plan'', of 
        the following:
                    (A) The cost-effectiveness of using 
                contractors rather than Department of Defense 
                employees to perform security-guard functions.
                    (B) The performance of contractors employed 
                as security guards compared with the 
                performance of military personnel who have 
                served as security guards.
                    (C) Specific results of on-site visits made 
                by officials designated by the Secretary of 
                Defense to military installations using 
                contractors to perform security-guard 
                functions.
    (c) Contract Limitation.--No contract may be entered into 
under section 332 of the Bob Stump National Defense 
Authorization Act for Fiscal Year 2003 (Public Law 107-314) 
after September 30, 2007, until the report required under 
subsection (b) is submitted.

                          Subtitle E--Reports

SEC. 341. REPORT ON NAVY FLEET RESPONSE PLAN.

    (a) Report Required.--Not later than December 1, 2006, the 
Secretary of the Navy shall submit to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives a report on the program of the 
Navy referred to as the Fleet Response Plan. The report shall 
include the following:
            (1) A directive that provides guidance for the 
        conduct of the Plan and standardizes terms and 
        definitions.
            (2) Performance measures for evaluation of the 
        Plan.
            (3) Costs and resources needed to achieve 
        objectives of the Plan, including any incremental 
        effect on the Navy Operation and Maintenance budget.
            (4) Operational tests, exercises, war games, 
        experiments, and deployments used to test performance.
            (5) A collection and synthesis of lessons learned 
        from the implementation of the Plan as of the date on 
        which the report is submitted.
            (6) Evaluation of each of the following with 
        respect to each ship participating in the Plan:
                    (A) Combat readiness, including training 
                requirements.
                    (B) Ship material condition, including 
                trending data for mission degrading casualty 
                reports rated as C3 or C4.
                    (C) Professional development training 
                requirements accomplished during a deployment 
                and at home station.
                    (D) Crew retention statistics.
            (7) Any proposed changes to the Surface Force 
        Training Manual.
            (8) The amount of funding required to effectively 
        implement the operation and maintenance requirements of 
        the Plan by ship class.
            (9) Any recommendations of the Secretary of the 
        Navy with respect to expanding the Plan to include 
        Expeditionary Strike Groups.
    (b) Comptroller General Report.--Not later than 120 days 
after the date on which the Secretary of the Navy submits the 
report required under subsection (a), the Comptroller General 
shall submit to the congressional defense committees a report 
containing a review of the report required under that 
subsection. The Comptroller General's report shall include the 
following:
            (1) An examination of the management approaches of 
        the Navy in implementing the Fleet Response Plan.
            (2) An assessment of the adequacy of Navy 
        directives and guidance with respect to maintenance and 
        training requirements and procedures.
            (3) An analysis and assessment of the adequacy of 
        the Navy's evaluation criteria for the Plan.
            (4) An evaluation of Navy data on aircraft 
        carriers, destroyers, and cruisers that participated in 
        the Plan with respect to readiness, response time, and 
        availability for routine or unforeseen deployments.
            (5) An assessment of the Navy's progress in 
        identifying the amount of funding required to 
        effectively implement the operations and maintenance 
        requirements of the Plan and the effect of providing 
        funding in an amount less than that amount.
            (6) Any recommendations of the Comptroller General 
        with respect to expanding the Plan to include 
        Expeditionary Strike Groups.
    (c) Postponement of Expansion.--The Secretary of the Navy 
may not expand the implementation of the Fleet Response Plan 
beyond the Carrier Strike Groups until the date that is six 
months after the date on which the Secretary of the Navy 
submits the report required under subsection (a).

SEC. 342. REPORT ON NAVY SURFACE SHIP ROTATIONAL CREW PROGRAMS.

    (a) Report Required.--Not later than April 1, 2007, the 
Secretary of the Navy shall submit to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives a report on the ship rotational 
crew experiment referred to in subsection (c)(1). The report 
shall include the following:
            (1) A comparison between the three destroyers 
        participating in that experiment and destroyers not 
        participating in the experiment that takes into 
        consideration each of the following:
                    (A) Cost-effectiveness, including a 
                comparison of travel and per diem expenses, 
                maintenance costs, and other costs.
                    (B) Maintenance procedures, impacts, and 
                deficiencies, including the number and 
                characterization of maintenance deficiencies, 
                the extent of voyage repairs, post-deployment 
                assessments of the material condition of the 
                ships, and the extent to which work levels were 
                maintained.
                    (C) Mission training requirements.
                    (D) Professional development requirements 
                and opportunities.
                    (E) Liberty port of call opportunities.
                    (F) Movement and transportation of crew.
                    (G) Inventory and property accountability.
                    (H) Policies and procedures for assigning 
                billets for rotating crews.
                    (I) Crew retention statistics.
                    (J) Readiness and mission capability data.
            (2) Results from surveys administered or focus 
        groups held to obtain representative views from 
        commanding officers, officers, and enlisted members on 
        the effects of rotational crew experiments on quality 
        of life, training, professional development, 
        maintenance, mission effectiveness, and other issues.
            (3) The extent to which standard policies and 
        procedures were developed and used for participating 
        ships.
            (4) Lessons learned from the experiment.
            (5) An assessment from the combatant commanders on 
        the crew mission performance when deployed.
            (6) An assessment from the commander of the Fleet 
        Forces Command on the material condition, maintenance, 
        and crew training of each participating ship.
            (7) Any recommendations of the Secretary of the 
        Navy with respect to the extension of the ship 
        rotational crew experiment or the implementation of the 
        experiment for other surface vessels.
    (b) Postponement of Implementation.--The Secretary of the 
Navy may not begin implementation of any new surface ship 
rotational crew experiment or program during the period 
beginning on the date of the enactment of this Act and ending 
on October 1, 2009.
    (c) Treatment of Existing Experiments.--
            (1) Destroyer experiment.--Not later than January 
        1, 2007, the Secretary of the Navy shall terminate the 
        existing ship rotational crew experiment involving the 
        U.S.S. Gonzalez (DDG-66), the U.S.S. Stout (DDG-55), 
        and the U.S.S. Laboon (DDG-58) that is known as the 
        ``sea swap''.
            (2) Patrol coastal class ship experiment.--The 
        Secretary of the Navy may continue the existing ship 
        rotational crew program that is currently in use by 
        overseas-based Patrol Coastal class ships.
            (3) Mine countermeasures ships.--The Secretary of 
        the Navy may continue the existing ship rotational crew 
        program that is currently in use by MCM and MHC ships.
            (4) Littoral combat ships.--The Secretary of the 
        Navy may employ a two crew for one ship (commonly 
        referred to as Blue-Gold) rotational crew program for 
        the first two ships of each Littoral combat ship design 
        (LCS 1-4).
    (d) Comptroller General Report.--Not later than July 15, 
2007, the Comptroller General shall submit to the Committee on 
Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report on the ship 
rotational crew experiment referred to in subsection (c)(1). 
The report shall include the following:
            (1) A review of the report submitted by the 
        Secretary of the Navy under subsection (a) and an 
        assessment of the extent to which the Secretary fully 
        addressed costs, quality of life, training, 
        maintenance, and mission effectiveness, and other 
        relevant issues in that report.
            (2) An assessment of the extent to which the 
        Secretary established and applied a comprehensive 
        framework for assessing the use of ship rotational crew 
        experiments, including formal objectives, metrics, and 
        methodology for assessing the cost-effectiveness of 
        such experiments.
            (3) An assessment of the extent to which the 
        Secretary established effective guidance for the use of 
        ship rotational crew experiments.
            (4) Lessons learned from recent ship rotational 
        crew experiments and an assessment of the extent to 
        which the Navy systematically collects and shares 
        lessons learned.
    (e) Congressional Budget Office Report.--Not later than 
July 15, 2007, the Director of the Congressional Budget Office 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of 
Representatives a report on the long-term implications of the 
use of crew rotation on Navy ships on the degree of forward 
presence provided by Navy ships. The report shall include the 
following:
            (1) An analysis of different approaches to crew 
        rotation and the degree of forward presence each 
        approach would provide.
            (2) A comparison of the degree of forward presence 
        provided by the fleet under the long-term shipbuilding 
        plan of the Navy with and without the widespread use of 
        crew rotation.
            (3) The long-term benefits and costs of using crew 
        rotation on Navy ships.

SEC. 343. REPORT ON ARMY LIVE-FIRE RANGES IN HAWAII.

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

SEC. 344. COMPTROLLER GENERAL REPORT ON JOINT STANDARDS AND PROTOCOLS 
                    FOR ACCESS CONTROL SYSTEMS AT DEPARTMENT OF DEFENSE 
                    INSTALLATIONS.

    (a) Report Required.--Not later than one year after the 
date of the enactment of this Act, the Comptroller General 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of 
Representatives a report containing the assessment of the 
Comptroller General of--
            (1) the extent to which consistency exists in 
        standards, protocols, and procedures for access control 
        across installations of the Department of Defense; and
            (2) whether the establishment of joint standards 
        and protocols for access control at such installations 
        would be likely to--
                    (A) address any need of the Department 
                identified by the Comptroller General; or
                    (B) improve access control across such 
                installations by providing greater consistency 
                and improved force protection.
    (b) Issues To Be Assessed.--In conducting the assessment 
required by subsection (a), the Comptroller General shall 
assess the extent to which each installation of the Department 
of Defense has or would benefit from having an access control 
system with the ability to--
            (1) electronically check any identification card 
        issued by any Federal agency or any State or local 
        government within the United States, including any 
        identification card of a visitor to the installation 
        who is a citizen or legal resident of the United 
        States;
            (2) verify that an identification card used to 
        obtain access to the installation was legitimately 
        issued and has not been reported lost or stolen;
            (3) check on a real-time basis all relevant watch 
        lists maintained by the Government, including terrorist 
        watch lists and lists of persons wanted by Federal, 
        State, or local law enforcement authorities;
            (4) maintain a log of individuals seeking access to 
        the installation and of individuals who are denied 
        access to the installation; and
            (5) exchange information with any installation with 
        a system that complies with the joint standards and 
        protocols.

SEC. 345. COMPTROLLER GENERAL REPORT ON READINESS OF ARMY AND MARINE 
                    CORPS GROUND FORCES.

    (a) Report Required.--
            (1) In general.--Not later than June 1, 2007, the 
        Comptroller General shall submit to the Committee on 
        Armed Services of the Senate and the Committee on Armed 
        Services of the House of Representatives a report on 
        the readiness of the active component and reserve 
        component ground forces of the Army and the Marine 
        Corps.
            (2) One or more reports.--In complying with the 
        requirements of this section, the Comptroller General 
        may submit a single report addressing all the elements 
        specified in subsection (b) or two or more reports 
        addressing any combination of such elements. If the 
        Comptroller General submits more than one report under 
        this section, all such reports shall be submitted not 
        later than the date specified in paragraph (1).
    (b) Elements.--The elements specified in this subsection 
are the following:
            (1) An analysis of the current readiness status of 
        each of the active component and reserve component 
        ground forces of the Army and the Marine Corps, 
        including a description of any major deficiency 
        identified, an analysis of the trends in readiness of 
        such forces during not less than the ten-year period 
        preceding the date on which the report is submitted, 
        and a comparison of the current readiness indicators of 
        such ground forces with historical patterns.
            (2) An assessment of the ability of the Army and 
        the Marine Corps to provide trained and ready forces 
        for ongoing operations as well as other commitments 
        assigned to the Army and the Marine Corps in defense 
        planning documents.
            (3) An analysis of the availability of equipment 
        for training by units of the Army and the Marine Corps 
        in the United States in configurations comparable to 
        the equipment being used by units of the Army and the 
        Marine Corps, as applicable, in ongoing operations.
            (4) An analysis of the current and projected 
        requirements for repair or replacement of equipment of 
        the Army and the Marine Corps due to ongoing operations 
        and the effect of such required repair or replacement 
        of equipment on the availability of equipment for 
        training.
            (5) An assessment of the current personnel tempo of 
        Army and Marine Corps forces, including--
                    (A) a comparison of such tempos to 
                historical trends;
                    (B) an identification of particular 
                occupational specialties that are experiencing 
                unusually high or low deployment rates; and
                    (C) an analysis of retention rates in the 
                occupational specialties identified under 
                subparagraph (B).
            (6) An assessment of the efforts of the Army and 
        the Marine Corps to mitigate the impact of high 
        operational tempos, including cross-leveling of 
        personnel and equipment or cross training of personnel 
        or units for new or additional mission requirements.
            (7) A description of the current policy of the Army 
        and the Marine Corps with respect to the mobilization 
        of reserve component personnel, together with an 
        analysis of the number of reserve component personnel 
        in each of the Army and the Marine Corps that are 
        projected to be available for deployment under such 
        policy.
    (c) Form of Report.--Any report submitted under subsection 
(a) shall be submitted in both classified and unclassified 
form.

SEC. 346. REPORT ON AIR FORCE SAFETY REQUIREMENTS FOR AIR FORCE FLIGHT 
                    TRAINING OPERATIONS AT PUEBLO MEMORIAL AIRPORT, 
                    COLORADO.

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

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

    (a) Annual Report Required.--The Secretary of Defense shall 
include in the budget justification documents submitted to 
Congress in support of the President's budget for the 
Department of Defense for each fiscal year, a report on the 
future requirements of the Department of Defense with respect 
to the Personnel Security Investigations for Industry and the 
National Industrial Security Program of the Defense Security 
Service.
    (b) Contents of Report.--Each report required to be 
submitted under subsection (a) shall include the following:
            (1) The funding requirements of the personnel 
        security clearance investigation program and ability of 
        the Secretary of Defense to fund the program.
            (2) The size of the personnel security clearance 
        investigation process backlog.
            (3) The length of the average delay for an 
        individual case pending in the personnel security 
        clearance investigation process.
            (4) Any progress made by the Secretary of Defense 
        during the 12 months preceding the date on which the 
        report is submitted toward implementing planned changes 
        in the personnel security clearance investigation 
        process.
            (5) A determination certified by the Secretary of 
        Defense of whether the personnel security clearance 
        investigation process has improved during the 12 months 
        preceding the date on which the report is submitted.
    (c) Comptroller General Report.--Not later than 180 days 
after the Secretary of Defense submits the first report 
required under subsection (a), the Comptroller General shall 
submit to Congress a report that contains a review of such 
report. The Comptroller General's report shall include the 
following:
            (1) The number of personnel security clearance 
        investigations conducted during the period beginning on 
        October 1, 1999, and ending on September 30, 2006.
            (2) The number of each type of security clearance 
        granted during that period.
            (3) The unit cost to the Department of Defense of 
        each security clearance granted during that period.
            (4) The amount of any fee or surcharge paid to the 
        Office of Personnel Management as a result of 
        conducting a personnel security clearance 
        investigation.
            (5) A description of the procedures used by the 
        Secretary of Defense to estimate the number of 
        personnel security clearance investigations to be 
        conducted during a fiscal year.
            (6) A description of any plan developed by the 
        Secretary of Defense to reduce delays and backlogs in 
        the personnel security clearance investigation process.
            (7) A description of any plan developed by the 
        Secretary of Defense to adequately fund the personnel 
        security clearance investigation process.
            (8) A description of any plan developed by the 
        Secretary of Defense to establish a more stable and 
        effective Personnel Security Investigations Program.

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

    Section 366 of the Bob Stump National Defense Authorization 
Act for Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2522; 
10 U.S.C. 113 note) is amended--
            (1) in subsections (a)(5) and (c)(2), by striking 
        ``fiscal years 2005 through 2008'' and inserting 
        ``fiscal years 2005 through 2013''; and
            (2) in subsection (d), by striking ``within 60 days 
        of receiving a report'' and inserting ``within 90 days 
        of receiving a report''.

SEC. 349. REPORTS ON WITHDRAWAL OR DIVERSION OF EQUIPMENT FROM RESERVE 
                    UNITS FOR SUPPORT OF RESERVE UNITS BEING MOBILIZED 
                    AND OTHER UNITS.

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

                       Subtitle F--Other Matters

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

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

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

    ``(a) Policy Required.--The Secretary of Defense shall 
maintain a strategic policy on the programs of the Department 
of Defense for the prepositioning of materiel and equipment. 
Such policy shall take into account national security threats, 
strategic mobility, service requirements, and the requirements 
of the combatant commands.
    ``(b) Limitation of Diversion of Prepositioned Materiel.--
The Secretary of a military department may not divert materiel 
or equipment from prepositioned stocks except--
            ``(1) in accordance with a change made by the 
        Secretary of Defense to the policy maintained under 
        subsection (a); or
            ``(2) for the purpose of directly supporting a 
        contingency operation or providing humanitarian 
        assistance under chapter 20 of this title.
    ``(c) Congressional Notification.--The Secretary of Defense 
may not implement or change the policy required under 
subsection (a) until the Secretary submits to the congressional 
defense committees a report describing the policy or change to 
the policy.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

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

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

SEC. 352. AUTHORITY TO MAKE DEPARTMENT OF DEFENSE HORSES AVAILABLE FOR 
                    ADOPTION.

    (a) Inclusion of Department of Defense Horses in Existing 
Authority.--Section 2583 of title 10, United States Code, is 
amended--
            (1) in the section heading, by striking ``working 
        dogs'' and inserting ``animals'';
            (2) by striking ``working'' each place it appears;
            (3) by striking ``dog'' and ``dogs'' each place 
        they appear and inserting ``animal'' and ``animals'', 
        respectively;
            (4) by striking ``dog's'' in paragraphs (1) and (2) 
        of subsection (a) and inserting ``animal's'';
            (5) by striking ``a dog's adoptability'' in 
        subsection (b) and inserting ``the adoptability of the 
        animal''; and
            (6) by adding at the end the following new 
        subsection:
    ``(g) Military Animal Defined.--In this section, the term 
`military animal' means the following:
            ``(1) A military working dog.
            ``(2) A horse owned by the Department of 
        Defense.''.
    (b) Clerical Amendment.--The item relating to such section 
in the table of sections at the beginning of chapter 153 of 
such title is amended to read as follows:

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

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

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

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

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

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

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

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

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

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

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

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

    (a) Termination at End of Contingency Operation.--
Subsection (c) of section 344 of the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-136) is 
amended to read as follows:
    ``(c) Termination of Benefit.--The authority to provide a 
benefit under subsection (a)(1) to a member directly supporting 
a contingency operation shall terminate on the date that is 60 
days after the date on which the Secretary determines that the 
contingency operation has ended.''.
    (b) Application to Other Contingency Operations.--Such 
section is further amended--
            (1) in subsection (a), by striking ``Operation 
        Iraqi Freedom and Operation Enduring Freedom'' and 
        inserting ``a contingency operation''; and
            (2) by adding at the end the following new 
        subsection:
    ``(g) Contingency Operation Defined.--In this section, the 
term `contingency operation' has the meaning given that term in 
section 101(a)(13) of title 10, United States Code. The term 
includes Operation Iraqi Freedom and Operation Enduring 
Freedom.''.
    (c) Extension to Hospitalized Members.--Subsection (a) of 
such section is further amended--
            (1) by striking ``As soon as possible after the 
        date of the enactment of this Act, the'' and inserting 
        ``(1) The''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) As soon as possible after the date of the enactment 
of the John Warner National Defense Authorization Act for 
Fiscal Year 2007, the Secretary shall provide, wherever 
practicable, prepaid phone cards, packet based telephone 
service, or an equivalent telecommunications benefit which 
includes access to telephone service to members of the Armed 
Forces who, although are no longer directly supporting a 
contingency operation, are hospitalized as a result of wounds 
or other injuries incurred while serving in direct support of a 
contingency operation.''.
    (d) Report on Implementation of Modified Benefits.--Not 
later than 90 days after the date of the enactment of this Act, 
the Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives a report describing the status of 
the efforts of the Department of Defense to implement the 
modifications of the Department of Defense telecommunications 
benefit required by section 344 of the National Defense 
Authorization Act for Fiscal Year 2004 that result from the 
amendments made by this section.

SEC. 356. EXTENSION OF AVAILABILITY OF FUNDS FOR COMMEMORATION OF 
                    SUCCESS OF THE ARMED FORCES IN OPERATION ENDURING 
                    FREEDOM AND OPERATION IRAQI FREEDOM.

    Section 378(b)(2) of the National Defense Authorization Act 
for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3214) is 
amended by striking ``fiscal year 2006'' and inserting ``fiscal 
years 2006 and 2007''.

SEC. 357. CAPITAL SECURITY COST SHARING.

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

SEC. 358. UTILIZATION OF FUEL CELLS AS BACK-UP POWER SYSTEMS IN 
                    DEPARTMENT OF DEFENSE OPERATIONS.

    The Secretary of Defense shall consider the utilization of 
fuel cells as replacements for current back-up power systems in 
a variety of Department of Defense operations and activities, 
including in telecommunications networks, perimeter security, 
individual equipment items, and remote facilities, in order to 
increase the operational longevity of back-up power systems and 
stand-by power systems in such operations and activities.

SEC. 359. IMPROVING DEPARTMENT OF DEFENSE SUPPORT FOR CIVIL 
                    AUTHORITIES.

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

SEC. 360. ENERGY EFFICIENCY IN WEAPONS PLATFORMS.

    (a) 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. 361. PRIORITIZATION OF FUNDS WITHIN NAVY MISSION OPERATIONS, SHIP 
                    MAINTENANCE, COMBAT SUPPORT FORCES, AND WEAPONS 
                    SYSTEM SUPPORT.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the President's budget for fiscal year 2007 
        failed to fund the required number of ship steaming 
        days per quarter for Navy ship operations as well as 
        deferring projected depot maintenance for Navy ships 
        and aircraft; and
            (2) the Secretary of Defense should ensure that 
        sufficient financial resources are provided for each 
        fiscal year to support the critical training and depot 
        maintenance accounts of the Navy in order to enable the 
        Navy to maintain the current readiness levels required 
        to support the national military strategy without 
        putting future readiness at risk by underfunding 
        investment in modernization, including ship 
        construction programs.
    (b) Certification.--The Secretary of Defense shall submit 
to the congressional defense committees a written 
certification, at the same time the President submits the 
budget for each of fiscal years 2008, 2009, and 2010, that the 
Navy has budgeted and programmed funding to fully meet the 
requirements for that fiscal year for each of the following:
            (1) Ship steaming days per quarter for deployed and 
        non-deployed ship operations.
            (2) Projected depot maintenance requirements for 
        ships and aircraft.
    (c) Limitation.--Of the funds available for Operation and 
Maintenance, Defense-Wide, for the Office of the Secretary of 
Defense for each of fiscal years 2008, 2009, and 2010, no more 
than 80 percent may be obligated in that fiscal year until 
after the submission of the certification required by 
subsection (b) for the annual budget submitted in February of 
that year for the following fiscal year.
    (d) Annual Report.--Beginning with the fiscal year 2008 
budget of the President, the Secretary of the Navy shall submit 
to the congressional defense committees an annual report (to be 
submitted when the budget is submitted) setting forth the 
progress toward funding the requirements of subsection (a). The 
annual reporting requirement shall terminate after the fiscal 
year 2010 budget submission. Each such report shall include the 
following:
            (1) An assessment of the deployed and non-deployed 
        quarterly ship steaming day requirements, itemized by 
        active-duty component and reserve component.
            (2) An assessment of the associated budget request 
        for each of the following:
                    (A) Deployed and non-deployed ship steaming 
                days per quarter.
                    (B) Chief of Naval Operations ship depot 
                maintenance availabilities, shown by type of 
                maintenance availability and by location.
                    (C) Air depot maintenance workload, shown 
                by type of airframe and by location.
    (e) Report on Riverine Squadrons.--
            (1) Report required.--The Secretary of Navy shall 
        submit to the congressional defense committees a report 
        on the Riverine Squadrons of the Navy. The report shall 
        be submitted with the President's budget for fiscal 
        year 2008 and shall include the following:
                    (A) The total amount funded for fiscal year 
                2006 and projected funding for fiscal year 2007 
                and fiscal year 2008 for those squadrons.
                    (B) The operational requirement of the 
                commander of the United States Central Command 
                for those squadrons and the corresponding 
                Department of Navy concept of operations for 
                deployments of those squadrons to support 
                Operation Iraqi Freedom or Operation Enduring 
                Freedom.
                    (C) The military table of organization and 
                equipment for those squadrons.
                    (D) A summary of existing Department of 
                Navy equipment that has been assigned in fiscal 
                year 2006 or will be provided in fiscal year 
                2007 and fiscal year 2008 for those squadrons.
                    (E) The Department of Navy directive for 
                the mission assigned to those squadrons.
            (2) Limitation.--Of the amount made available for 
        fiscal year 2007 to the Department of Navy for 
        operation and maintenance for the Office of the 
        Secretary of the Navy, not more than 80 percent may be 
        obligated before the date on which the report required 
        under paragraph (1) is submitted.

SEC. 362. PROVISION OF ADEQUATE STORAGE SPACE TO SECURE PERSONAL 
                    PROPERTY OUTSIDE OF ASSIGNED MILITARY FAMILY 
                    HOUSING UNIT.

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

SEC. 363. EXPANSION OF PAYMENT OF REPLACEMENT VALUE OF PERSONAL 
                    PROPERTY DAMAGED DURING TRANSPORT AT GOVERNMENT 
                    EXPENSE.

    (a) Coverage of Property of Civilian Employees of 
Department of Defense.--Subsection (a) of section 2636a of 
title 10, United States Code, is amended by striking ``of 
baggage and household effects for members of the armed forces 
at Government expense'' and inserting ``at Government expense 
of baggage and household effects for members of the armed 
forces or civilian employees of the Department of Defense (or 
both)''.
    (b) Requirement for Payment and Deduction Upon Failure of 
Carrier To Settle.--Effective March 1, 2008, such section is 
further amended--
            (1) in subsection (a), by striking ``may include'' 
        and inserting ``shall include''; and
            (2) in subsection (b), by striking ``may be 
        deducted'' and inserting ``shall be deducted''.
    (c) Certification on Families First Program.--The Secretary 
of Defense shall submit to the congressional defense committees 
a report containing the certifications of the Secretary with 
respect to the program of the Department of Defense known as 
``Families First'' on the following matters:
            (1) Whether there is an alternative to the system 
        under the program that would provide equal or greater 
        capability at a lower cost.
            (2) Whether the estimates on costs, and the 
        anticipated schedule and performance parameters, for 
        the program and system are reasonable.
            (3) Whether the management structure for the 
        program is adequate to manage and control program 
        costs.
    (d) Comptroller General Reports on Families First 
Program.--
            (1) Review and assessment required.--The 
        Comptroller General of the United States shall conduct 
        a review and assessment of the progress of the 
        Department of Defense in implementing the program of 
        the Department of Defense known as ``Families First''.
            (2) Elements of review and assessment.--In 
        conducting the review and assessment required by 
        paragraph (1), the Comptroller General shall--
                    (A) assess the progress of the Department 
                in achieving the goals of the Families First 
                program, including progress in the development 
                and deployment of the Defense Personal Property 
                System;
                    (B) assess the organization, staffing, 
                resources, and capabilities of the Defense 
                Personal Property System Project Management 
                Office established on April 7, 2006;
                    (C) evaluate the growth in cost of the 
                program since the previous assessment of the 
                program by the Comptroller General, and 
                estimate the current annual cost of the Defense 
                Personal Property System and each component of 
                that system; and
                    (D) assess the feasibility of implementing 
                processes and procedures, pending the 
                satisfactory development of the Defense 
                Personal Property System, which would achieve 
                the goals of the program of providing improved 
                personal property management services to 
                members of the Armed Forces.
            (3) Reports.--The Comptroller General shall submit 
        to the Committee on Armed Services of the Senate and 
        the Committee on Armed Services of the House of 
        Representatives reports as follows:
                    (A) An interim report on the review and 
                assessment required by paragraph (1) by not 
                later than December 1, 2006.
                    (B) A final report on such review and 
                assessment by not later than June 1, 2007.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

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

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
          reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2007 limitation on number of non-dual status 
          technicians.
Sec. 415. Maximum number of reserve personnel authorized to be on active 
          duty for operational support.

               Subtitle C--Authorization of Appropriations

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

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    (a) In General.--The Armed Forces are authorized strengths 
for active duty personnel as of September 30, 2007, as follows:
            (1) The Army, 512,400.
            (2) The Navy, 340,700.
            (3) The Marine Corps, 180,000.
            (4) The Air Force, 334,200.
    (b) Limitation.--
            (1) Army.--The authorized strength for the Army 
        provided in paragraph (1) of subsection (a) for active 
        duty personnel for fiscal year 2007 is subject to the 
        condition that costs of active duty personnel of the 
        Army for that fiscal year in excess of 482,400 shall be 
        paid out of funds authorized to be appropriated for 
        that fiscal year for a contingent emergency reserve 
        fund or as an emergency supplemental appropriation.
            (2) Marine corps.--The authorized strength for the 
        Marine Corps provided in paragraph (3) of subsection 
        (a) for active duty personnel for fiscal year 2007 is 
        subject to the condition that costs of active duty 
        personnel of the Marine Corps for that fiscal year in 
        excess of 175,000 shall be paid out of funds authorized 
        to be appropriated for that fiscal year for a 
        contingent emergency reserve fund or as an emergency 
        supplemental appropriation.

SEC. 402. REVISION IN PERMANENT ACTIVE DUTY END STRENGTH MINIMUM 
                    LEVELS.

    Section 691(b) of title 10, United States Code, is amended 
by striking paragraphs (1) through (4) and inserting the 
following:
            ``(1) For the Army, 502,400.
            ``(2) For the Navy, 340,700.
            ``(3) For the Marine Corps, 180,000.
            ``(4) For the Air Force, 334,200.''.

SEC. 403. ADDITIONAL AUTHORITY FOR INCREASES OF ARMY AND MARINE CORPS 
                    ACTIVE DUTY END STRENGTHS FOR FISCAL YEARS 2008 AND 
                    2009.

    Effective October 1, 2007, the text of section 403 of the 
Ronald W. Reagan National Defense Authorization Act for Fiscal 
Year 2005 (Public Law 108-375; 118 Stat. 1863) is amended to 
read as follows:
    ``(a) Authority.--
            ``(1) Army.--For each of fiscal years 2008 and 
        2009, the Secretary of Defense may, as the Secretary 
        determines necessary for the purposes specified in 
        paragraph (3), establish the active- duty end strength 
        for the Army at a number greater than the number 
        otherwise authorized by law up to the number equal to 
        the fiscal-year 2007 baseline plus 20,000.
            ``(2) Marine corps.--For each of fiscal years 2008 
        and 2009, the Secretary of Defense may, as the 
        Secretary determines necessary for the purposes 
        specified in paragraph (3), establish the active-duty 
        end strength for the Marine Corps at a number greater 
        than the number otherwise authorized by law up to the 
        number equal to the fiscal-year 2007 baseline plus 
        4,000.
            ``(3) Purpose of increases.--The purposes for which 
        increases may be made in Army and Marine Corps active 
        duty end strengths under paragraphs (1) and (2) are--
                    ``(A) to support operational missions; and
                    ``(B) to achieve transformational 
                reorganization objectives, including objectives 
                for increased numbers of combat brigades and 
                battalions, increased unit manning, force 
                stabilization and shaping, and rebalancing of 
                the active and reserve component forces.
            ``(4) Fiscal-year 2007 baseline.--In this 
        subsection, the term `fiscal-year 2007 baseline', with 
        respect to the Army and Marine Corps, means the active-
        duty end strength authorized for those services in 
        section 401 of the John Warner National Defense 
        Authorization Act for Fiscal Year 2007.
            ``(5) Active-duty end strength.--In this 
        subsection, the term `active-duty end strength' means 
        the strength for active-duty personnel of one of the 
        Armed Forces as of the last day of a fiscal year.
    ``(b) Relationship to Presidential Waiver Authority.--
Nothing in this section shall be construed to limit the 
President's authority under section 123a of title 10, United 
States Code, to waive any statutory end strength in a time of 
war or national emergency.
    ``(c) Relationship to Other Variance Authority.--The 
authority under subsection (a) is in addition to the authority 
to vary authorized end strengths that is provided in 
subsections (e) and (f) of section 115 of title 10, United 
States Code.
    ``(d) Budget Treatment.--
            ``(1) Fiscal year 2008 budget.--The budget for the 
        Department of Defense for fiscal year 2008 as submitted 
        to Congress shall comply, with respect to funding, with 
        subsections (c) and (d) of section 691 of title 10, 
        United States Code.
            ``(2) Other increases.--If the Secretary of Defense 
        plans to increase the Army or Marine Corps active duty 
        end strength for a fiscal year under subsection (a), 
        then the budget for the Department of Defense for that 
        fiscal year as submitted to Congress shall include the 
        amounts necessary for funding that active duty end 
        strength in excess of the fiscal year 2007 active duty 
        end strength authorized for that service under section 
        401 of the John Warner National Defense Authorization 
        Act for Fiscal Year 2007.''.

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) In General.--The Armed Forces are authorized strengths 
for Selected Reserve personnel of the reserve components as of 
September 30, 2007, as follows:
            (1) The Army National Guard of the United States, 
        350,000.
            (2) The Army Reserve, 200,000.
            (3) The Navy Reserve, 71,300.
            (4) The Marine Corps Reserve, 39,600.
            (5) The Air National Guard of the United States, 
        107,000.
            (6) The Air Force Reserve, 74,900.
            (7) The Coast Guard Reserve, 10,000.
    (b) Adjustments.--The end strengths prescribed by 
subsection (a) for the Selected Reserve of any reserve 
component shall be proportionately reduced by--
            (1) the total authorized strength of units 
        organized to serve as units of the Selected Reserve of 
        such component which are on active duty (other than for 
        training) at the end of the fiscal year; and
            (2) the total number of individual members not in 
        units organized to serve as units of the Selected 
        Reserve of such component who are on active duty (other 
        than for training or for unsatisfactory participation 
        in training) without their consent at the end of the 
        fiscal year.

Whenever such units or such individual members are released 
from active duty during any fiscal year, the end strength 
prescribed for such fiscal year for the Selected Reserve of 
such reserve component shall be increased proportionately by 
the total authorized strengths of such units and by the total 
number of such individual members.

SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE 
                    RESERVES.

    Within the end strengths prescribed in section 411(a), the 
reserve components of the Armed Forces are authorized, as of 
September 30, 2007, the following number of Reserves to be 
serving on full-time active duty or full-time duty, in the case 
of members of the National Guard, for the purpose of 
organizing, administering, recruiting, instructing, or training 
the reserve components:
            (1) The Army National Guard of the United States, 
        27,441.
            (2) The Army Reserve, 15,416.
            (3) The Navy Reserve, 12,564.
            (4) The Marine Corps Reserve, 2,261.
            (5) The Air National Guard of the United States, 
        13,291.
            (6) The Air Force Reserve, 2,707.

SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL STATUS).

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

SEC. 414. FISCAL YEAR 2007 LIMITATION ON NUMBER OF NON-DUAL STATUS 
                    TECHNICIANS.

    (a) Limitations.--
            (1) National guard.--Within the limitation provided 
        in section 10217(c)(2) of title 10, United States Code, 
        the number of non-dual status technicians employed by 
        the National Guard as of September 30, 2007, may not 
        exceed the following:
                    (A) For the Army National Guard of the 
                United States, 1,600
                    (B) For the Air National Guard of the 
                United States, 350.
            (2) Army reserve.--The number of non-dual status 
        technicians employed by the Army Reserve as of 
        September 30, 2007, may not exceed 595.
            (3) Air force reserve.--The number of non-dual 
        status technicians employed by the Air Force Reserve as 
        of September 30, 2007, may not exceed 90.
    (b) Non-Dual Status Technicians Defined.--In this section, 
the term ``non-dual status technician'' has the meaning given 
that term in section 10217(a) of title 10, United States Code.

SEC. 415. MAXIMUM NUMBER OF RESERVE PERSONNEL AUTHORIZED TO BE ON 
                    ACTIVE DUTY FOR OPERATIONAL SUPPORT.

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

              Subtitle C--Authorization of Appropriations

SEC. 421. MILITARY PERSONNEL.

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

SEC. 422. ARMED FORCES RETIREMENT HOME.

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

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

               Part I--Officer Personnel Policy Generally

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

                    Part II--Officer Promotion Policy

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

             Part III--Joint Officer Management Requirements

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

                  Subtitle B--Reserve Component Matters

                  Part I--Reserve Component Management

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

         Part II--Authorities Relating to Guard and Reserve Duty

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

                   Subtitle C--Education and Training

                        Part I--Service Academies

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

         Part II--Scholarship and Financial Assistance Programs

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

                      Part III--Junior ROTC Program

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

             Part IV--Other Education and Training Programs

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

                 Subtitle D--General Service Authorities

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

                  Subtitle E--Military Justice Matters

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

                   Subtitle F--Decorations and Awards

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

               Subtitle G--Matters Relating to Casualties

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

     Subtitle H--Impact Aid and Defense Dependents Education System

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

                Subtitle I--Armed Forces Retirement Home

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

                           Subtitle J--Reports

Sec. 581. Report on personnel requirements for airborne assets 
          identified as Low-Density, High-Demand Airborne Assets.
Sec. 582. Report on feasibility of establishment of Military Entrance 
          Processing Command station on Guam.
Sec. 583. Inclusion in annual Department of Defense report on sexual 
          assaults of information on results of disciplinary actions.
Sec. 584. Report on provision of electronic copy of military records on 
          discharge or release of members from the Armed Forces.
Sec. 585. Report on omission of social security account numbers from 
          military identification cards.
Sec. 586. Report on maintenance and protection of data held by the 
          Secretary of Defense as part of the Department of Defense 
          Joint Advertising, Market Research and Studies (JAMRS) 
          program.
Sec. 587. Comptroller General report on military conscientious 
          objectors.

                        Subtitle K--Other Matters

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

                  Subtitle A--Officer Personnel Policy

               PART I--OFFICER PERSONNEL POLICY GENERALLY

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

    (a) Clarification of Military Status.--Section 528 of title 
10, United States Code, is amended--
            (1) by striking subsections (a) and (b) and 
        inserting the following:
    ``(a) Military Status.--An officer of the armed forces, 
while serving in a position covered by this section--
            ``(1) shall not be subject to supervision or 
        control by the Secretary of Defense or any other 
        officer or employee of the Department of Defense, 
        except as directed by the Secretary of Defense 
        concerning reassignment from such position; and
            ``(2) may not exercise, by reason of the officer's 
        status as an officer, any supervision or control with 
        respect to any of the military or civilian personnel of 
        the Department of Defense except as otherwise 
        authorized by law.
    ``(b) Director and Deputy Director of CIA.--When the 
position of Director or Deputy Director of the Central 
Intelligence Agency is held by an officer of the armed forces, 
the officer serving in that position, while so serving, shall 
be excluded from the limitations in sections 525 and 526 of 
this title. However, if both such positions are held by an 
officer of the armed forces, only one such officer may be 
excluded from those limitation while so serving.''; and
            (2) by adding at the end the following new 
        subsections:
    ``(e) Effect of Appointment.--Except as provided in 
subsection (a), the appointment or assignment of an officer of 
the armed forces to a position covered by this section shall 
not affect--
            ``(1) the status, position, rank, or grade of such 
        officer in the armed forces; or
            ``(2) any emolument, perquisite, right, privilege, 
        or benefit incident to or arising out of such status, 
        position, rank, or grade.
    ``(f) Military Pay and Allowances.--(1) An officer of the 
armed forces on active duty who is appointed or assigned to a 
position covered by this section shall, while serving in such 
position and while remaining on active duty, continue to 
receive military pay and allowances and shall not receive the 
pay prescribed for such position.
    ``(2) Funds from which pay and allowances under paragraph 
(1) are paid to an officer while so serving shall be reimbursed 
as follows:
            ``(A) For an officer serving in a position within 
        the Central Intelligence Agency, such reimbursement 
        shall be made from funds available to the Director of 
        the Central Intelligence Agency.
            ``(B) For an officer serving in a position within 
        the Office of the Director of National Intelligence, 
        such reimbursement shall be made from funds available 
        to the Director of National Intelligence.
    ``(g) Covered Positions.--The positions covered by this 
section are the positions specified in subsections (b) and (c) 
and the positions designated under subsection (d).''.
    (b) Clerical Amendments.--
            (1) The heading of such section is amended to read 
        as follows:

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

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

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

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

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

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

    ``(a) General Rule.--Unless retired or separated earlier, 
each regular commissioned officer of the Army, Navy, Air Force, 
or Marine Corps serving in a general or flag officer grade 
shall be retired on the first day of the month following the 
month in which the officer becomes 64 years of age.
    ``(b) Exception for Officers Serving in O-9 and O-10 
Positions.--In the case of an officer serving in a position 
that carries a grade above major general or rear admiral, the 
retirement under subsection (a) of that officer may be 
deferred--
            ``(1) by the President, but such a deferment may 
        not extend beyond the first day of the month following 
        the month in which the officer becomes 68 years of age; 
        or
            ``(2) by the Secretary of Defense, but such a 
        deferment may not extend beyond the first day of the 
        month following the month in which the officer becomes 
        66 years of age.''.
    (b) Restatement and Modification of Current Age Limits for 
Other Officers.--Section 1251 of such title is amended to read 
as follows:

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

    ``(a) General Rule.--Unless retired or separated earlier, 
each regular commissioned officer of the Army, Navy, Air Force, 
or Marine Corps (other than an officer covered by section 1252 
of this title or a commissioned warrant officer) serving in a 
grade below brigadier general or rear admiral (lower half), in 
the case of an officer in the Navy, shall be retired on the 
first day of the month following the month in which the officer 
becomes 62 years of age.
    ``(b) Deferred Retirement of Health Professions Officers.--
(1) The Secretary of the military department concerned may, 
subject to subsection (d), defer the retirement under 
subsection (a) of a health professions officer if during the 
period of the deferment the officer will be performing duties 
consisting primarily of providing patient care or performing 
other clinical duties.
    ``(2) For purposes of this subsection, a health professions 
officer is--
            ``(A) a medical officer;
            ``(B) a dental officer; or
            ``(C) an officer in the Army Nurse Corps, an 
        officer in the Navy Nurse Corps, or an officer in the 
        Air Force designated as a nurse.
    ``(c) Deferred Retirement of Chaplains.--The Secretary of 
the military department concerned may, subject to subsection 
(d), defer the retirement under subsection (a) of an officer 
who is appointed or designated as a chaplain if the Secretary 
determines that such deferral is in the best interest of the 
military department concerned.
    ``(d) Limitation on Deferment of Retirements.--(1) Except 
as provided in paragraph (2), a deferment under subsection (b) 
or (c) may not extend beyond the first day of the month 
following the month in which the officer becomes 68 years of 
age.
    ``(2) The Secretary of the military department concerned 
may extend a deferment under subsection (b) or (c) beyond the 
day referred to in paragraph (1) if the Secretary determines 
that extension of the deferment is necessary for the needs of 
the military department concerned. Such an extension shall be 
made on a case-by-case basis and shall be for such period as 
the Secretary considers appropriate.''.
    (c) Clerical Amendments.--The table of sections at the 
beginning of chapter 63 of such title is amended--
            (1) by striking the item relating to section 1251 
        and inserting the following new item:

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

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

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

    (d) Conforming Amendments.--Chapter 71 of such title is 
amended--
            (1) in the table in section 1401(a), by inserting 
        at the bottom of the column under the heading ``For 
        sections'', in the entry for Formula Number 5, the 
        following: ``1253''; and
            (2) in the table in section 1406(b)(1), by 
        inserting at the bottom of the first column the 
        following: ``1253''.

SEC. 503. INCREASED MANDATORY RETIREMENT AGES FOR RESERVE OFFICERS.

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

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

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

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

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

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

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

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

    (e) Conforming Amendments.--Section 14508 of such title is 
amended--
            (1) in subsection (c), by striking ``60 years'' and 
        inserting ``62 years''; and
            (2) in subsection (d), by striking ``62 years'' and 
        inserting ``64 years''.
    (f) Clerical Amendment.--The table of sections at the 
beginning of chapter 1407 of such title is amended by striking 
the items relating to sections 14509, 14510, 14511, and 14512 
and inserting the following new items:

``14509. Separation at age 62: reserve officers in grades below 
          brigadier general or rear admiral (lower half).
``14510. Separation at age 62: brigadier generals and rear admirals 
          (lower half).
``14511. Separation at age 64: major generals and rear admirals.
``14512. Separation at age 66: officers holding certain offices.''.

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

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

SEC. 505. MANAGEMENT OF CHIEF WARRANT OFFICERS.

    (a) Retention of Chief Warrant Officers, w-4, Who Have 
Twice Failed of Selection for Promotion.--Paragraph (1) of 
section 580(e) of title 10, United States Code, is amended by 
striking ``continued on active duty if'' and all that follows 
and inserting ``continued on active duty if--
            ``(A) in the case of a warrant officer in the grade 
        of chief warrant officer, W-2, or chief warrant 
        officer, W-3, the warrant officer is selected for 
        continuation on active duty by a selection board 
        convened under section 573(c) of this title; and
            ``(B) in the case of a warrant officer in the grade 
        of chief warrant officer, W-4, the warrant officer is 
        selected for continuation on active duty by the 
        Secretary concerned under such procedures as the 
        Secretary may prescribe.''.
    (b) Eligibility for Consideration for Promotion of Warrant 
Officers Continued on Active Duty.--Paragraph (2) of such 
section is amended--
            (1) by inserting ``(A)'' after ``(2)''; and
            (2) by adding at the end the following new 
        subparagraph:
    ``(B) A warrant officer in the grade of chief warrant 
officer, W-4, who is retained on active duty pursuant to 
procedures prescribed under paragraph (1)(B) is eligible for 
further consideration for promotion while remaining on active 
duty.''.
    (c) Mandatory Retirement for Length of Service.--Section 
1305(a) of such title is amended--
            (1) by striking ``(1) Except as'' and all the 
        follows through ``W-5)'' and inserting ``A regular 
        warrant officer'';
            (2) by inserting ``as a warrant officer'' after 
        ``years of active service'';
            (3) by inserting ``the date on which'' after ``60 
        days after''; and
            (4) by striking paragraph (2).

SEC. 506. EXTENSION OF TEMPORARY REDUCTION OF TIME-IN-GRADE REQUIREMENT 
                    FOR ELIGIBILITY FOR PROMOTION FOR CERTAIN ACTIVE-
                    DUTY LIST OFFICERS IN GRADES OF FIRST LIEUTENANT 
                    AND LIEUTENANT (JUNIOR GRADE).

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

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

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

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

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

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

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

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

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

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

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

SEC. 508. MODIFICATION OF QUALIFICATIONS FOR LEADERSHIP OF THE NAVAL 
                    POSTGRADUATE SCHOOL.

    Subsection (a) of section 7042 of title 10, United States 
Code, is amended to read as follows:
    ``(a)(1) The President of the Naval Postgraduate School 
shall be one of the following:
            ``(A) An active-duty officer of the Navy or Marine 
        Corps in a grade not below the grade of captain, or 
        colonel, respectively, who is assigned or detailed to 
        such position.
            ``(B) A civilian individual, including an 
        individual who was retired from the Navy or Marine 
        Corps in a grade not below captain, or colonel, 
        respectively, who has the qualifications appropriate to 
        the position of President and is selected by the 
        Secretary of the Navy as the best qualified from among 
        candidates for the position in accordance with--
                    ``(i) the criteria specified in paragraph 
                (4);
                    ``(ii) a process determined by the 
                Secretary; and
                    ``(iii) other factors the Secretary 
                considers essential.
    ``(2) Before making an assignment, detail, or selection of 
an individual for the position of President of the Naval 
Postgraduate School, the Secretary shall--
            ``(A) consult with the Board of Advisors for the 
        Naval Postgraduate School;
            ``(B) consider any recommendation of the leadership 
        and faculty of the Naval Postgraduate School regarding 
        the assignment or selection to that position; and
            ``(C) consider the recommendations of the Chief of 
        Naval Operations and the Commandant of the Marine 
        Corps.
    ``(3) An individual selected for the position of President 
of the Naval Postgraduate School under paragraph (1)(B) shall 
serve in that position for a term of not more than five years 
and may be continued in that position for an additional term of 
up to five years.
    ``(4) The qualifications appropriate for selection of an 
individual for detail or assignment to the position of 
President of the Naval Postgraduate School include the 
following:
            ``(A) An academic degree that is either--
                    ``(i) a doctorate degree in a field of 
                study relevant to the mission and function of 
                the Naval Postgraduate School; or
                    ``(ii) a master's degree in a field of 
                study relevant to the mission and function of 
                the Naval Postgraduate School, but only if--
                            ``(I) the individual is an active-
                        duty or retired officer of the Navy or 
                        Marine Corps in a grade not below the 
                        grade of captain or colonel, 
                        respectively; and
                            ``(II) at the time of the selection 
                        of that individual as President, the 
                        individual permanently appointed to the 
                        position of Provost and Academic Dean 
                        has a doctorate degree in such a field 
                        of study.
            ``(B) A comprehensive understanding of the 
        Department of the Navy, the Department of Defense, and 
        joint and combined operations.
            ``(C) Leadership experience at the senior level in 
        a large and diverse organization.
            ``(D) Demonstrated ability to foster and encourage 
        a program of research in order to sustain academic 
        excellence.
            ``(E) Other qualifications, as determined by the 
        Secretary of the Navy.''.

                   PART II--OFFICER PROMOTION POLICY

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

    (a) Officers on Active-Duty List.--
            (1) Secretary of defense regulations for delays of 
        appointment upon promotion.--Paragraphs (1) and (2) of 
        subsection (d) of section 624 of title 10, United 
        States Code, are amended by striking ``prescribed by 
        the Secretary concerned'' in and inserting ``prescribed 
        by the Secretary of Defense''.
            (2) Additional basis for delay of appointment by 
        reason of investigations and proceedings.--Subsection 
        (d)(1) of such section is further amended--
                    (A) by striking ``or'' at the end of 
                subparagraph (C);
                    (B) by striking the period at the end of 
                subparagraph (D) and inserting ``; or'';
                    (C) by inserting after subparagraph (D) the 
                following new subparagraph:
            ``(E) substantiated adverse information about the 
        officer that is material to the decision to appoint the 
        officer is under review by the Secretary of Defense or 
        the Secretary concerned.''; and
                    (D) in the flush matter following 
                subparagraph (E), as inserted by subparagraph 
                (C) of this paragraph--
                            (i) by striking ``or'' after 
                        ``chapter 60 of this title''; and
                            (ii) by inserting after ``brought 
                        against him,'' the following: ``or if, 
                        after a review of substantiated adverse 
                        information about the officer regarding 
                        the requirement for exemplary conduct 
                        set forth in section 3583, 5947, or 
                        8583 of this title, as applicable, the 
                        officer is determined to be among the 
                        officers best qualified for 
                        promotion,''.
            (3) Additional basis for delay in appointment for 
        lack of qualifications.--Subsection (d)(2) of such 
        section is further amended--
                    (A) in the first sentence, by inserting 
                before ``is mentally, physically,'' the 
                following: ``has not met the requirement for 
                exemplary conduct set forth in section 3583, 
                5947, or 8583 of this title, as applicable, 
                or''; and
                    (B) in the second sentence, by striking 
                ``If the Secretary concerned later determines 
                that the officer is qualified for promotion to 
                such grade'' and inserting ``If it is later 
                determined by a civilian official of the 
                Department of Defense (not below the level of 
                Secretary of a military department) that the 
                officer is qualified for promotion to such 
                grade and, after a review of adverse 
                information regarding the requirement for 
                exemplary conduct set forth in section 3583, 
                5947, or 8583 of this title, as applicable, the 
                officer is determined to be among the officers 
                best qualified for promotion to such grade''.
    (b) Officers on Reserve Active-Status List.--
            (1) Secretary of defense regulations for delays of 
        appointment upon promotion.--Subsections (a)(1) and (b) 
        of section 14311 of such title are amended by striking 
        ``Secretary of the military department concerned'' and 
        inserting ``Secretary of Defense''.
            (2) Additional basis for original delay of 
        appointment by reason of investigations and 
        proceedings.--Section 14311(a) of such title is further 
        amended--
                    (A) in paragraph (1), by adding at the end 
                the following new subparagraph:
            ``(E) Substantiated adverse information about the 
        officer that is material to the decision to appoint the 
        officer is under review by the Secretary of Defense or 
        the Secretary concerned.''; and
                    (B) in paragraph (2)--
                            (i) by striking ``or'' after ``show 
                        cause for retention,''; and
                            (ii) by inserting after ``of the 
                        charges,'' the following: ``or if, 
                        after a review of substantiated adverse 
                        information about the officer regarding 
                        the requirement for exemplary conduct 
                        set forth in section 3583, 5947, or 
                        8583 of this title, as applicable, the 
                        officer is determined to be among the 
                        officers best qualified for 
                        promotion,''.
            (3) Additional basis for delay in appointment for 
        lack of qualifications.--Section 14311(b) of such 
        section is further amended--
                    (A) in the first sentence, by inserting 
                before ``is mentally, physically,'' the 
                following: ``has not met the requirement for 
                exemplary conduct set forth in section 3583, 
                5947, or 8583 of this title, as applicable, 
                or''; and
                    (B) in the second sentence, by striking 
                ``If the Secretary concerned later determines 
                that the officer is qualified for promotion to 
                the higher grade'' and inserting ``If it is 
                later determined by a civilian official of the 
                Department of Defense (not below the level of 
                Secretary of a military department) that the 
                officer is qualified for promotion to the 
                higher grade and, after a review of adverse 
                information regarding the requirement for 
                exemplary conduct set forth in section 3583, 
                5947, or 8583 of this title, as applicable, the 
                officer is determined to be among the officers 
                best qualified for promotion to the higher 
                grade''.
    (c) Deadline for Uniform Regulations on Delay of 
Promotions.--
            (1) Deadline.--The Secretary of Defense shall 
        prescribe the regulations required by section 624(d) of 
        title 10, United States Code (as amended by subsection 
        (a)(1) of this section), and the regulations required 
        by section 14311 of such title (as amended by 
        subsection (b)(1) of this section) not later than March 
        1, 2008.
            (2) Savings clause for existing regulations.--Until 
        the Secretary of Defense prescribes regulations 
        pursuant to paragraph (1), regulations prescribed by 
        the Secretaries of the military departments under the 
        sections referred to in paragraph (1) shall remain in 
        effect.
    (d) Technical Amendments To Clarify Date of Establishment 
of Promotion Lists.--
            (1) Promotion lists for active-duty list 
        officers.--Section 624(a)(1) of title 10, United States 
        Code, is amended by adding at the end the following new 
        sentence: ``A promotion list is considered to be 
        established under this section as of the date of the 
        approval of the report of the selection board under the 
        preceding sentence.''.
            (2) Promotion lists for reserve active-status list 
        officers.--Section 14308(a) of title 10, United States 
        Code, is amended by adding at the end the following new 
        sentence: ``A promotion list is considered to be 
        established under this section as of the date of the 
        approval of the report of the selection board under the 
        preceding sentence.''.
    (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 officers on promotion lists 
established on or after the date of the enactment of this Act.

SEC. 512. CONSIDERATION OF ADVERSE INFORMATION BY SELECTION BOARDS IN 
                    RECOMMENDATIONS ON OFFICERS TO BE PROMOTED.

    (a) Officers on Active-Duty List.--Section 616(c) of title 
10, United States Code, is amended--
            (1) by striking ``and'' at the end of paragraph 
        (1);
            (2) by striking the period at the end in paragraph 
        (2) and inserting ``; and''; and
            (3) by adding at the end the following new 
        paragraph:
            ``(3) a majority of the members of the board, after 
        consideration by all members of the board of any 
        adverse information about the officer that is provided 
        to the board under section 615 of this title, finds 
        that the officer is among the officers best qualified 
        for promotion to meet the needs of the armed force 
        concerned consistent with the requirement of exemplary 
        conduct set forth in section 3583, 5947, or 8583 of 
        this title, as applicable.''.
    (b) Officers on Reserve-Active Status List.--Section 
14108(b) of such title is amended--
            (1) in the heading, by striking ``Majority 
        Required.--'' and inserting ``Actions Required.--'';
            (2) by striking ``and'' at the end of paragraph 
        (1);
            (3) by striking the period at the end in paragraph 
        (2) and inserting ``; and''; and
            (4) by adding at the end the following new 
        paragraph:
            ``(3) a majority of the members of the board, after 
        consideration by all members of the board of any 
        adverse information about the officer that is provided 
        to the board under section 14107 of this title, finds 
        that the officer is among the officers best qualified 
        for promotion to meet the needs of the armed force 
        concerned consistent with the requirement of exemplary 
        conduct set forth in section 3583, 5947, or 8583 of 
        this title, as applicable.''.
    (c) Effective Date.--The amendments made by this section 
shall take effect on the date of the enactment of this Act and 
shall apply with respect to selection boards convened on or 
after that date.

SEC. 513. EXPANDED AUTHORITY FOR REMOVAL FROM REPORTS OF SELECTION 
                    BOARDS OF OFFICERS RECOMMENDED FOR PROMOTION TO 
                    GRADES BELOW GENERAL AND FLAG GRADES.

    (a) Officers on Active-Duty List.--Section 618(d) of title 
10, United States Code, is amended--
            (1) by striking ``The name'' and inserting ``(1) 
        Except as provided in paragraph (2), the name''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) In the case of an officer recommended by a selection 
board for promotion to a grade below brigadier general or rear 
admiral (lower half), the name of the officer may also be 
removed from the report of the selection board by the Secretary 
of Defense or the Deputy Secretary of Defense.''.
    (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 apply with respect to selection boards convened on or 
after the date of the enactment of this Act.

SEC. 514. SPECIAL SELECTION BOARD AUTHORITIES.

    (a) Officers on Active-Duty List.--
            (1) Boards for administrative error available only 
        to officers in or above promotion zone.--Subsection 
        (a)(1) of section 628 of title 10, United States Code, 
        is amended by inserting ``from in or above the 
        promotion zone'' after ``for selection for promotion''.
            (2) Actions treatable as material unfairness.--
        Subsection (b)(1)(A) of such section is amended by 
        inserting ``in a matter material to the decision of the 
        board'' after ``contrary to law''.
    (b) Officers on Reserve Active-Status List.--Section 
14502(b)(1)(A) of such title is amended by inserting ``in a 
matter material to the decision of the board'' after ``contrary 
to law''.
    (c) Effective Date.--The amendments made by this section 
shall take effect on March 1, 2007, and shall apply with 
respect to selection boards convened on or after that date.

SEC. 515. REMOVAL FROM PROMOTION LIST OF OFFICERS NOT PROMOTED WITHIN 
                    18 MONTHS OF APPROVAL OF LIST BY THE PRESIDENT.

    (a) Officers on Active-Duty Lists.--
            (1) Clarification of removal due to senate not 
        giving advice and consent.--Subsection (b) of section 
        629 of title 10, United States Code, is amended--
                    (A) by inserting ``Removal Due to Senate 
                Not Giving Advice and Consent.--'' after 
                ``(b)'' ; and
                    (B) by inserting ``to a grade for which 
                appointment is required by section 624(c) of 
                this title to be made by and with the advice 
                and consent of the Senate'' after ``the 
                President''.
            (2) Removal after 18 months.--Such section is 
        further amended--
                    (A) by redesignating subsection (c) as 
                subsection (d); and
                    (B) by inserting after subsection (b) the 
                following new subsection (c):
    ``(c) Removal After 18 Months.--(1) If an officer whose 
name is on a list of officers approved for promotion under 
section 624(a) of this title to a grade for which appointment 
is required by section 624(c) of this title to be made by and 
with the advice and consent of the Senate is not appointed to 
that grade under such section during the officer's promotion 
eligibility period, the officer's name shall be removed from 
the list unless as of the end of such period the Senate has 
given its advice and consent to the appointment.
    ``(2) Before the end of the promotion eligibility period 
with respect to an officer under paragraph (1), the President 
may extend that period for purposes of paragraph (1) by an 
additional 12 months.
    ``(3) In this subsection, the term `promotion eligibility 
period' means, with respect to an officer whose name is on a 
list of officers approved for promotion under section 624(a) of 
this title to a grade for which appointment is required by 
section 624(c) of this title to be made by and with the advice 
and consent of the Senate, the period beginning on the date on 
which the list is so approved and ending on the first day of 
the eighteenth month following the month during which the list 
is so approved.''.
            (3) Cross-reference amendment.--Paragraph (1) of 
        subsection (d) of such section, as redesignated by 
        paragraph (2)(A) of this subsection, is amended by 
        striking ``or (b)'' and inserting ``(b), or (c)''.
            (4) Stylistic amendments.--Such section is further 
        amended--
                    (A) in subsection (a), by inserting 
                ``Removal by President.--'' after ``(a)''; and
                    (B) in subsection (d) (as amended by 
                paragraph (3)), by inserting ``Continued 
                Eligibility for Promotion.--'' before ``(1)''.
    (b) Officers on Reserve Active Status List.--
            (1) Removal following return.--Section 14310 of 
        such title is amended--
                    (A) by redesignating subsection (c) as 
                subsection (d); and
                    (B) by inserting after subsection (b) the 
                following new subsection (c):
    ``(c) Removal After 18 Months.--(1) If an officer whose 
name is on a list of officers approved for promotion under 
section 14308(a) of this title to a grade for which appointment 
is required by section 12203(a) of this title to be made by and 
with the advice and consent of the Senate is not appointed to 
that grade under such section during the officer's promotion 
eligibility period, the officer's name shall be removed from 
the list unless as of the end of such period the Senate has 
given its advice and consent to the appointment.
    ``(2) Before the end of the promotion eligibility period 
with respect to an officer under paragraph (1), the President 
may extend that period for purposes of paragraph (1) by an 
additional 12 months.
    ``(3) In this subsection, the term `promotion eligibility 
period' means, with respect to an officer whose name is on a 
list of officers approved for promotion under section 14308(a) 
of this title to a grade for which appointment is required by 
section 12203(a) of this title to be made by and with the 
advice and consent of the Senate, the period beginning on the 
date on which the list is so approved and ending on the first 
day of the eighteenth month following the month during which 
the list is so approved.''.
            (2) Cross-reference amendment.--Paragraph (1) of 
        subsection (d) of such section, as redesignated by 
        paragraph (1)(A) of this subsection, is amended by 
        striking ``or (b)'' and inserting ``(b), or (c)''.
    (c) Effective Date.--The amendments made by this section 
shall apply to any promotion list approved by the President 
after January 1, 2007.

            PART III--JOINT OFFICER MANAGEMENT REQUIREMENTS

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

    (a) Redesignation of Applicability of Policies Toward Joint 
Qualification.--Subsection (a) of section 661 of title 10, 
United States Code, is amended by striking the last sentence.
    (b) Revision to General Authorities.--Subsections (b), (c), 
and (d) of such section are amended to read as follows:
    ``(b) Levels, Designation, and Numbers.--(1)(A) The 
Secretary of Defense shall establish different levels of joint 
qualification, as well as the criteria for qualification at 
each level. Such levels of joint qualification shall be 
established by the Secretary with the advice of the Chairman of 
the Joint Chiefs of Staff. Each level shall, as a minimum, have 
both joint education criteria and joint experience criteria. 
The purpose of establishing such qualification levels is to 
ensure a systematic, progressive, career-long development of 
officers in joint matters and to ensure that officers serving 
as general and flag officers have the requisite experience and 
education to be highly proficient in joint matters.
    ``(B) The number of officers who are joint qualified shall 
be determined by the Secretary of Defense, with the advice of 
the Chairman of the Joint Chiefs of Staff. Such number shall be 
large enough to meet the requirements of subsection (d).
    ``(2) Certain officers shall be designated as joint 
qualified by the Secretary of Defense with the advice of the 
Chairman of the Joint Chiefs of Staff.
    ``(3) An officer may be designated as joint qualified under 
paragraph (2) only if the officer--
            ``(A) meets the education and experience criteria 
        of subsection (c);
            ``(B) meets such additional criteria as prescribed 
        by the Secretary of Defense; and
            ``(C) holds the grade of captain or, in the case of 
        the Navy, lieutenant or a higher grade.
    ``(4) The authority of the Secretary of Defense under 
paragraph (2) to designate officers as joint qualified may be 
delegated only to the Deputy Secretary of Defense or an Under 
Secretary of Defense.
    ``(c) Education and Experience Requirements.--(1) An 
officer may not be designated as joint qualified until the 
officer--
            ``(A) successfully completes an appropriate program 
        of joint professional military education, as described 
        in subsections (b) and (c) of section 2155 of this 
        title, at a joint professional military education 
        school; and
            ``(B) successfully completes--
                    ``(i) a full tour of duty in a joint 
                assignment, as described in section 664(f) of 
                this title; or
                    ``(ii) such other assignments and 
                experiences in a manner that demonstrate the 
                officer's mastery of knowledge, skills, and 
                abilities in joint matters, as determined under 
                such regulations and policy as the Secretary of 
                Defense may prescribe.
    ``(2) Subject to paragraphs (3) through (6), the Secretary 
of Defense may waive the requirement under paragraph (1)(A) 
that an officer have successfully completed a program of 
education, as described in subsections (b) and (c) of section 
2155 of this title.
    ``(3) In the case of an officer in a grade below brigadier 
general or rear admiral (lower half), a waiver under paragraph 
(2) may be granted only if--
            ``(A) the officer has completed two full tours of 
        duty in a joint duty assignment, as described in 
        section 664(f) of this title, in such a manner as to 
        demonstrate the officer's mastery of knowledge, skills, 
        and abilities on joint matters; and
            ``(B) the Secretary of Defense determines that the 
        types of joint duty experiences completed by the 
        officer have been of sufficient breadth to prepare the 
        officer adequately for service as a general or flag 
        officer in a joint duty assignment position.
    ``(4) In the case of a general or flag officer, a waiver 
under paragraph (2) may be granted only--
            ``(A) under unusual circumstances justifying the 
        variation from the education requirement under 
        paragraph (1)(A); and
            ``(B) under circumstances in which the waiver is 
        necessary to meet a critical need of the armed forces, 
        as determined by the Chairman of the Joint Chiefs of 
        Staff.
    ``(5) In the case of officers in grades below brigadier 
general or rear admiral (lower half), the total number of 
waivers granted under paragraph (2) for officers in the same 
pay grade during a fiscal year may not exceed 10 percent of the 
total number of officers in that pay grade designated as joint 
qualified during that fiscal year.
    ``(6) There may not be more than 32 general and flag 
officers on active duty at the same time who, while holding a 
general or flag officer position, were designated joint 
qualified (or were selected for the joint specialty before 
October 1, 2007) and for whom a waiver was granted under 
paragraph (2).
    ``(d) Number of Joint Duty Assignments.--(1) The Secretary 
of Defense shall ensure that approximately one-half of the 
joint duty assignment positions in grades above major or, in 
the case of the Navy, lieutenant commander, are filled at any 
time by officers who have the appropriate level of joint 
qualification.
    ``(2) The Secretary of Defense, with the advice of the 
Chairman of the Joint Chiefs of Staff, shall designate an 
appropriate number of joint duty assignment positions as 
critical joint duty assignment positions. A position may be 
designated as a critical joint duty assignment position only if 
the duties and responsibilities of the position make it 
important that the occupant be particularly trained in, and 
oriented toward, joint matters.
    ``(3)(A) Subject to subparagraph (B), a position designated 
under paragraph (2) may be held only by an officer who--
            ``(i) was designated as joint qualified in 
        accordance with this chapter; or
            ``(ii) was selected for the joint specialty before 
        October 1, 2007.
    ``(B) The Secretary of Defense may waive the requirement in 
subparagraph (A) with respect to the assignment of an officer 
to a position designated under paragraph (2). Any such waiver 
shall be granted on a case-by-case basis. The authority of the 
Secretary to grant such a waiver may be delegated only to the 
Chairman of the Joint Chiefs of Staff.
    ``(4) The Secretary of Defense shall ensure that, of those 
joint duty assignment positions that are filled by general or 
flag officers, a substantial portion are among those positions 
that are designated under paragraph (2) as critical joint duty 
assignment positions.''.
    (c) Career Guidelines.--Subsection (e) of such section is 
amended by striking ``officers with the joint specialty'' and 
inserting ``officers to achieve joint qualification and for 
officers who have been designated as joint qualified''.
    (d) Technical Amendment Regarding Treatment of Certain 
Service.--Subsection (f) of such section is amended by striking 
``section 619(e)(1)'' and inserting ``section 619a''.
    (e) Clerical Amendments.--
            (1) Section heading.--The heading of such section 
        is amended to read as follows:

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

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

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

    (f) Effective Date.--The amendments made by this section 
shall take effect on October 1, 2007.
    (g) Treatment of Current Joint Specialty Officers.--For the 
purposes of chapter 38 of title 10, United States Code, and 
sections 154, 164, and 619a of such title, an officer who, as 
of September 30, 2007, has been selected for or has the joint 
specialty under section 661 of such title, as in effect on that 
date, shall be considered after that date to be an officer 
designated as joint qualified by the Secretary of Defense under 
section 661(b)(2) of such title, as amended by this section.
    (h) Implementation Plan.--
            (1) Plan required.--Not later than March 31, 2007, 
        the Secretary of Defense shall submit to the Committee 
        on Armed Services of the Senate and the Committee on 
        Armed Services of the House of Representatives a plan 
        for the implementation of the joint officer management 
        system, which will take effect on October 1, 2007, as 
        provided in subsection (f), as a result of the 
        amendments made by this section and other provisions of 
        this Act to provisions of chapter 38 of title 10, 
        United States Code.
            (2) Elements of plan.--In developing the plan 
        required by this subsection, the Secretary shall pay 
        particular attention to matters related to the 
        transition of officers from the joint specialty system 
        in effect before October 1, 2007, to the joint officer 
        management system in effect after that date. At a 
        minimum, the plan shall include the following:
                    (A) The policies and criteria to be used 
                for designating officers as joint qualified on 
                the basis of service performed by such officers 
                before that date, had the amendments made by 
                this section and other provisions of this Act 
                to provisions of chapter 38 of title 10, United 
                States Code, taken effect before the date of 
                the enactment of this Act.
                    (B) The policies and criteria prescribed by 
                the Secretary of Defense to be used in making 
                determinations under section 661(c)(1)(B)(ii) 
                of such title, as amended by this section.
                    (C) The recommendations of the Secretary 
                for any legislative changes that may be 
                necessary to effectuate the joint officer 
                management system.

SEC. 517. MODIFICATION OF PROMOTION POLICY OBJECTIVES FOR JOINT 
                    OFFICERS.

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

SEC. 518. APPLICABILITY OF JOINT DUTY ASSIGNMENT REQUIREMENTS LIMITED 
                    TO GRADUATES OF NATIONAL DEFENSE UNIVERSITY 
                    SCHOOLS.

    (a) Applicability.--Section 663 of title 10, United States 
Code, is amended--
            (1) in subsection (a), by striking ``a joint 
        professional military education school'' and inserting 
        ``a school within the National Defense University 
        specified in subsection (c)''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``a joint 
                professional military education school'' and 
                inserting ``a school within the National 
                Defense University specified in subsection 
                (c)''; and
                    (B) in paragraph (2), by striking ``a joint 
                professional military education school'' and 
                inserting ``a school referred to in paragraph 
                (1)''.
    (b) Covered Schools Within NDU.--Such section is further 
amended by adding at the end the following new subsection:
    ``(c) Covered Schools Within the National Defense 
University.--For purposes of this section, a school within the 
National Defense University specified in this subsection is one 
of the following:
            ``(1) The National War College.
            ``(2) The Industrial College of the Armed Forces.
            ``(3) The Joint Forces Staff College.''.

SEC. 519. MODIFICATION OF CERTAIN DEFINITIONS RELATING TO JOINTNESS.

    (a) Definition of Joint Matters.--Subsection (a) of section 
668 of title 10, United States Code, is amended to read as 
follows:
    ``(a) Joint Matters.--(1) In this chapter, the term `joint 
matters' means matters related to the achievement of unified 
action by multiple military forces in operations conducted 
across domains such as land, sea, or air, in space, or in the 
information environment, including matters relating to--
            ``(A) national military strategy;
            ``(B) strategic planning and contingency planning;
            ``(C) command and control of operations under 
        unified command;
            ``(D) national security planning with other 
        departments and agencies of the United States; and
            ``(E) combined operations with military forces of 
        allied nations.
    ``(2) In the context of joint matters, the term `multiple 
military forces' refers to forces that involve participants 
from the armed forces and one or more of the following:
            ``(A) Other departments and agencies of the United 
        States.
            ``(B) The military forces or agencies of other 
        countries.
            ``(C) Non-governmental persons or entities.''.
    (b) Definition of Joint Duty Assignment.--Paragraph (1) of 
subsection (b) of such section is amended by striking ``That 
definition shall'' and all that follows and inserting the 
following: ``That definition--
            ``(A) shall be limited to assignments in which the 
        officer gains significant experience in joint matters; 
        and
            ``(B) shall exclude assignments for joint training 
        and education, except an assignment as an instructor 
        responsible for preparing and presenting courses in 
        areas of the curricula designated in section 2155(c) of 
        this title as part of a program designated by the 
        Secretary of Defense as joint professional military 
        education Phase II.''.
    (c) Definition of Critical Occupational Specialty.--Such 
section is further amended by adding at the end the following 
new subsection:
    ``(d) Critical Occupational Specialty.--(1) In this 
chapter, the term `critical occupational specialty' means a 
military occupational specialty involving combat operations 
within the combat arms, in the case of the Army, or the 
equivalent arms, in the case of the Navy, Air Force, and Marine 
Corps, that the Secretary of Defense designates as critical.
    ``(2) At a minimum, the Secretary of Defense shall 
designate as a critical occupational specialty under paragraph 
(1) any military occupational specialty within a combat arms 
(or the equivalent) that is experiencing a severe shortage of 
trained officers in that specialty, as determined by the 
Secretary.''.
    (d) Conforming Amendments.--
            (1) Initial assignment of officers with critical 
        occupational specialties.--Section 664(c) of such title 
        is amended--
                    (A) in the matter before paragraph (1) by 
                striking ``section 661(c)(2)'' and inserting 
                ``section 661(c)(1)(B)'';
                    (B) by striking paragraph (1);
                    (C) by redesignating paragraph (2) as 
                paragraph (1) and, in such paragraph, by 
                striking ``section 661(c)(2)'' and inserting 
                ``section 668(d)''; and
                    (D) by redesignating paragraph (3) as 
                paragraph (2).
            (2) Annual report on number of officers with 
        critical occupational specialties.--Section 667(3) of 
        such title is amended by striking ``section 661(c)(2)'' 
        and inserting ``section 668(d)''.
    (e) Effective Date.--The amendments made by this section 
shall take effect on October 1, 2007.

                 Subtitle B--Reserve Component Matters

                  PART I--RESERVE COMPONENT MANAGEMENT

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

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

SEC. 522. REVISIONS TO RESERVE CALL-UP AUTHORITY.

    (a) Maximum Number of Days.--Subsection (a) of section 
12304 of title 10, United States Code, is amended by striking 
``270 days'' and inserting ``365 days.''
    (b) Fair Treatment.--Such section is further amended--
            (1) by redesignating subsection (i) as subsection 
        (j); and
            (2) by inserting after subsection (h) the following 
        new subsection (i):
    ``(i) Considerations for Involuntary Order to Active 
Duty.--(1) In determining which members of the Selected Reserve 
and Individual Ready Reserve will be ordered to duty without 
their consent under this section, appropriate consideration 
shall be given to--
            ``(A) the length and nature of previous service, to 
        assure such sharing of exposure to hazards as the 
        national security and military requirements will 
        reasonably allow;
            ``(B) the frequency of assignments during service 
        career;
            ``(C) family responsibilities; and
            ``(D) employment necessary to maintain the national 
        health, safety, or interest.
    ``(2) The Secretary of Defense shall prescribe such 
policies and procedures as the Secretary considers necessary to 
carry out this subsection.''.

SEC. 523. MILITARY RETIREMENT CREDIT FOR CERTAIN SERVICE BY NATIONAL 
                    GUARD MEMBERS PERFORMED WHILE IN A STATE DUTY 
                    STATUS IMMEDIATELY AFTER THE TERRORIST ATTACKS OF 
                    SEPTEMBER 11, 2001.

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

        PART II--AUTHORITIES RELATING TO GUARD AND RESERVE DUTY

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

    Section 101 of title 10, United States Code, is amended--
            (1) by adding at the end of subsection (b) the 
        following new paragraph:
            ``(16) The term `Active Guard and Reserve' means a 
        member of a reserve component who is on active duty 
        pursuant to section 12301(d) of this title or, if a 
        member of the Army National Guard or Air National 
        Guard, is on full-time National Guard duty pursuant to 
        section 502(f) of title 32, and who is performing 
        Active Guard and Reserve duty.''; and
            (2) in paragraph (6)(A) of subsection (d)--
                    (A) by striking ``or full-time National 
                Guard duty'' after ``means active duty''; and
                    (B) by striking ``, pursuant to an order to 
                active duty or full-time National Guard duty'' 
                and inserting ``pursuant to an order to full-
                time National Guard duty,''.

SEC. 525. AUTHORITY FOR ACTIVE GUARD AND RESERVE DUTIES TO INCLUDE 
                    SUPPORT OF OPERATIONAL MISSIONS ASSIGNED TO THE 
                    RESERVE COMPONENTS AND INSTRUCTION AND TRAINING OF 
                    ACTIVE-DUTY PERSONNEL.

    (a) AGR Duty Under Title 10.--Subsections (a) and (b) of 
section 12310 of title 10, United States Code, are amended to 
read as follows:
    ``(a) Authority.--(1) The Secretary concerned may order a 
member of a reserve component under the Secretary's 
jurisdiction to active duty pursuant to section 12301(d) of 
this title to perform Active Guard and Reserve duty organizing, 
administering, recruiting, instructing, or training the reserve 
components.
    ``(2) A Reserve ordered to active duty under paragraph (1) 
shall be ordered in the Reserve's reserve grade. While so 
serving, the Reserve continues to be eligible for promotion as 
a Reserve, if otherwise qualified.
    ``(b) Duties.--A Reserve on active duty under subsection 
(a) may perform the following additional duties to the extent 
that the performance of those duties does not interfere with 
the performance of the Reserve's primary Active Guard and 
Reserve duties described in subsection (a)(1):
            ``(1) Supporting operations or missions assigned in 
        whole or in part to the reserve components.
            ``(2) Supporting operations or missions performed 
        or to be performed by--
                    ``(A) a unit composed of elements from more 
                than one component of the same armed force; or
                    ``(B) a joint forces unit that includes--
                            ``(i) one or more reserve component 
                        units; or
                            ``(ii) a member of a reserve 
                        component whose reserve component 
                        assignment is in a position in an 
                        element of the joint forces unit.
            ``(3) Advising the Secretary of Defense, the 
        Secretaries of the military departments, the Joint 
        Chiefs of Staff, and the commanders of the combatant 
        commands regarding reserve component matters.
            ``(4) Instructing or training in the United States 
        or the Commonwealth of Puerto Rico or possessions of 
        the United States of--
                    ``(A) active-duty members of the armed 
                forces;
                    ``(B) members of foreign military forces 
                (under the same authorities and restrictions 
                applicable to active-duty members providing 
                such instruction or training);
                    ``(C) Department of Defense contractor 
                personnel; or
                    ``(D) Department of Defense civilian 
                employees.''.
    (b) Military Technicians Under Title 10.--Section 10216(a) 
of such title is amended--
            (1) in paragraph (1)(C), by striking 
        ``administration and'' and inserting ``organizing, 
        administering, instructing, or''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(3) A military technician (dual status) who is employed 
under section 3101 of title 5 may perform the following 
additional duties to the extent that the performance of those 
duties does not interfere with the performance of the primary 
duties described in paragraph (1):
            ``(A) Supporting operations or missions assigned in 
        whole or in part to the technician's unit.
            ``(B) Supporting operations or missions performed 
        or to be performed by--
                    ``(i) a unit composed of elements from more 
                than one component of the technician's armed 
                force; or
                    ``(ii) a joint forces unit that includes--
                            ``(I) one or more units of the 
                        technician's component; or
                            ``(II) a member of the technician's 
                        component whose reserve component 
                        assignment is in a position in an 
                        element of the joint forces unit.
            ``(C) Instructing or training in the United States 
        or the Commonwealth of Puerto Rico or possessions of 
        the United States of--
                    ``(i) active-duty members of the armed 
                forces;
                    ``(ii) members of foreign military forces 
                (under the same authorities and restrictions 
                applicable to active-duty members providing 
                such instruction or training);
                    ``(iii) Department of Defense contractor 
                personnel; or
                    ``(iv) Department of Defense civilian 
                employees.''.
    (c) National Guard Title 32 Training Duty.--Section 502(f) 
of title 32, United States Code, title is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (2) by inserting ``(1)'' before ``Under 
        regulations''; and
            (3) by striking the last sentence and inserting the 
        following:
    ``(2) The training or duty ordered to be performed under 
paragraph (1) may include the following:
            ``(A) Support of operations or missions undertaken 
        by the member's unit at the request of the President or 
        Secretary of Defense.
            ``(B) Support of training operations and training 
        missions assigned in whole or in part to the National 
        Guard by the Secretary concerned, but only to the 
        extent that such training missions and training 
        operations--
                    ``(i) are performed in the United States or 
                the Commonwealth of Puerto Rico or possessions 
                of the United States; and
                    ``(ii) are only to instruct active duty 
                military, foreign military (under the same 
                authorities and restrictions applicable to 
                active duty troops), Department of Defense 
                contractor personnel, or Department of Defense 
                civilian employees.
    ``(3) Duty without pay shall be considered for all purposes 
as if it were duty with pay.''.
    (d) National Guard Technicians Under Title 32.--Section 
709(a) of title 32, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking ``administration and'' and 
                inserting ``organizing, administering, 
                instructing, or''; and
                    (B) by striking ``and'' at the end of such 
                paragraph;
            (2) by striking the period at the end of paragraph 
        (2) and inserting ``; and''; and
            (3) by adding at the end the following new 
        paragraph:
            ``(3) the performance of the following additional 
        duties to the extent that the performance of those 
        duties does not interfere with the performance of the 
        duties described by paragraphs (1) and (2):
                    ``(A) Support of operations or missions 
                undertaken by the technician's unit at the 
                request of the President or the Secretary of 
                Defense.
                    ``(B) Support of Federal training 
                operations or Federal training missions 
                assigned in whole or in part to the 
                technician's unit.
                    ``(C) Instructing or training in the United 
                States or the Commonwealth of Puerto Rico or 
                possessions of the United States of--
                            ``(i) active-duty members of the 
                        armed forces;
                            ``(ii) members of foreign military 
                        forces (under the same authorities and 
                        restrictions applicable to active-duty 
                        members providing such instruction or 
                        training);
                            ``(iii) Department of Defense 
                        contractor personnel; or
                            ``(iv) Department of Defense 
                        civilian employees.''.

SEC. 526. GOVERNOR'S AUTHORITY TO ORDER MEMBERS TO ACTIVE GUARD AND 
                    RESERVE DUTY.

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

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

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

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

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

    (a) In General.--Section 12310(c) of title 10, United 
States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking ``involving--'' and 
                inserting ``involving any of the following:''; 
                and
                    (B) by striking subparagraphs (A) and (B) 
                and inserting the following:
            ``(A) The use or threatened use of a weapon of mass 
        destruction (as defined in section 12304(i)(2) of this 
        title) in the United States.
            ``(B) A terrorist attack or threatened terrorist 
        attack in the United States that results, or could 
        result, in catastrophic loss of life or property.
            ``(C) The intentional or unintentional release of 
        nuclear, biological, radiological, or toxic or 
        poisonous chemical materials in the United States that 
        results, or could result, in catastrophic loss of life 
        or property.
            ``(D) A natural or manmade disaster in the United 
        States that results in, or could result in, 
        catastrophic loss of life or property.'';
            (2) by amending paragraph (3) to read as follows:
    ``(3) A Reserve may perform duty described in paragraph (1) 
only while assigned to a reserve component weapons of mass 
destruction civil support team.''; and
            (3) by adding at the end the following new 
        paragraph:
    ``(7) In this subsection, the term `United States' includes 
the Commonwealth of Puerto Rico, Guam, and the Virgin 
Islands.''.
    (b) Technical and Conforming Amendments.--Such section is 
further amended--
            (1) by striking the subsection heading and 
        inserting ``Operations Relating to Defense Against 
        Weapons of Mass Destruction and Terrorist Attacks.--'';
            (2) in paragraph (5), by striking ``rapid 
        assessment element team'' and inserting ``weapons of 
        mass destruction civil support team''; and
            (3) in paragraph (6)--
                    (A) in the matter preceding subparagraph 
                (A), by striking ``paragraph (3)'' and 
                inserting ``paragraphs (1) and (3)''; and
                    (B) in subparagraph (B), by striking 
                ``paragraph (3)(B)'' and inserting ``paragraph 
                (3)''.

SEC. 528. MODIFICATION OF AUTHORITIES RELATING TO THE COMMISSION ON THE 
                    NATIONAL GUARD AND RESERVES.

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

SEC. 529. ADDITIONAL MATTERS TO BE REVIEWED BY COMMISSION ON THE 
                    NATIONAL GUARD AND RESERVES.

    (a) Additional Matters To Be Reviewed by Commission.--The 
Commission on the National Guard and Reserves shall include 
among the matters it studies (in addition to the matters 
specified in subsection (c) of the commission charter) each of 
the following:
            (1) National guard bureau enhancement proposals.--
        The advisability and feasibility of implementing the 
        provisions of S. 2658 and H.R. 5200 of the 109th 
        Congress, as introduced in the Senate and the House of 
        Representatives, respectively, on April 26, 2006.
            (2) Chief of national guard bureau.--As an 
        alternative to implementation of the provisions of the 
        bills specified in paragraph (1) that provide for the 
        Chief of the National Guard Bureau to be a member of 
        the Joint Chiefs of Staff and to hold the grade of 
        general, the advisability and feasibility of providing 
        for the Chief of the National Guard Bureau to hold the 
        grade of general in the performance of the current 
        duties of that office.
            (3) National guard officers authority to command.--
        The advisability and feasibility of implementing the 
        provisions of section 544 of H.R. 5122 of the 109th 
        Congress, as passed the House of Representatives on May 
        11, 2006.
            (4) National guard equipment and funding 
        requirements.--The adequacy of the Department of 
        Defense processes for defining the equipment and 
        funding necessary for the National Guard to conduct 
        both its responsibilities under title 10, United States 
        Code, and its responsibilities under title 32, United 
        States Code, including homeland defense and related 
        homeland missions, including as part of such study--
                    (A) consideration of the extent to which 
                those processes should be developed taking into 
                consideration the views of the Chief of the 
                National Guard Bureau, as well as the views of 
                the 54 Adjutant Generals and the views of the 
                Chiefs of the Army National Guard and the Air 
                Guard; and
                    (B) whether there should be an improved 
                means by which National Guard equipment 
                requirements are validated by the Joint Chiefs 
                of Staff and are considered for funding by the 
                Secretaries of the Army and Air Force.
    (b) Priority Review and Report.--
            (1) Priority review.--The Commission on the 
        National Guard and Reserves shall carry out its study 
        of the matters specified in paragraphs (1), (2), and 
        (3) of subsection (a) on a priority basis, with a 
        higher priority for matters under those paragraphs 
        relating to the grade and functions of the Chief of the 
        National Guard Bureau.
            (2) Report.--In addition to the reports required 
        under subsection (f) of the commission charter, the 
        Commission shall submit to the Committee on Armed 
        Services of the Senate and the Committee on Armed 
        Services of the House of Representatives an interim 
        report, not later than March 1, 2007, specifically on 
        the matters covered by paragraph (1). In such report, 
        the Commission shall set forth its findings and any 
        recommendations it considers appropriate with respect 
        to those matters.
    (c) Commission Charter Defined.--For purposes of this 
section, the term ``commission charter'' means section 513 of 
the Ronald W. Reagan National Defense Authorization Act for 
Fiscal Year 2005 (Public Law 108-375; 118 Stat. 1880).

                   Subtitle C--Education and Training

                       PART I--SERVICE ACADEMIES

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

    (a) United States Military Academy.--
            (1) Number of participants in exchange program.--
        Subsection (b) of section 4345 of title 10, United 
        States Code, is amended by striking ``24'' and 
        inserting ``100''.
            (2) Costs and expenses.--Subsection (c) of such 
        section is amended--
                    (A) by striking ``for the Academy'' in 
                paragraph (3) and all that follows in that 
                paragraph and inserting ``for the Academy and 
                such additional funds as may be available to 
                the Academy from a source other than 
                appropriated funds to support cultural 
                immersion, regional awareness, or foreign 
                language training activities in connection with 
                the exchange program.''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(4) Expenditures in support of the exchange program from 
funds appropriated for the Academy may not exceed $1,000,000 
during any fiscal year.''.
    (b) United States Naval Academy.--
            (1) Number of participants in exchange program.--
        Subsection (b) of section 6957a of title 10, United 
        States Code, is amended by striking ``24'' and 
        inserting ``100''.
            (2) Costs and expenses.--Subsection (c) of such 
        section is amended--
                    (A) by striking ``for the Academy'' in 
                paragraph (3) and all that follows in that 
                paragraph and inserting ``for the Academy and 
                such additional funds as may be available to 
                the Academy from a source other than 
                appropriated funds to support cultural 
                immersion, regional awareness, or foreign 
                language training activities in connection with 
                the exchange program.''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(4) Expenditures in support of the exchange program from 
funds appropriated for the Naval Academy may not exceed 
$1,000,000 during any fiscal year.''.
    (c) United States Air Force Academy.--
            (1) Number of participants in exchange program.--
        Subsection (b) of section 9345 of title 10, United 
        States Code, is amended by striking ``24'' and 
        inserting ``100''.
            (2) Costs and expenses.--Subsection (c) of such 
        section is amended--
                    (A) by striking ``for the Academy'' in 
                paragraph (3) and all that follows in that 
                paragraph and inserting ``for the Academy and 
                such additional funds as may be available to 
                the Academy from a source other than 
                appropriated funds to support cultural 
                immersion, regional awareness, or foreign 
                language training activities in connection with 
                the exchange program.''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(4) Expenditures in support of the exchange program from 
funds appropriated for the Academy may not exceed $1,000,000 
during any fiscal year.''.
    (d) Effective Dates.--The amendments made by subsection (a) 
shall take effect on the date of the enactment of this Act. The 
amendments made by subsections (b) and (c) shall take effect on 
October 1, 2008.

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

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

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

    ``(a) Required Policy.--Under guidance prescribed by the 
Secretary of Defense, the Secretary of the Army shall direct 
the Superintendent of the Academy to prescribe a policy on 
sexual harassment and sexual violence applicable to the cadets 
and other personnel of the Academy.
    ``(b) Matters To Be Specified in Policy.--The policy on 
sexual harassment and sexual violence prescribed under this 
section shall include specification of the following:
            ``(1) Programs to promote awareness of the 
        incidence of rape, acquaintance rape, and other sexual 
        offenses of a criminal nature that involve cadets or 
        other Academy personnel.
            ``(2) Procedures that a cadet should follow in the 
        case of an occurrence of sexual harassment or sexual 
        violence, including--
                    ``(A) if the cadet chooses to report an 
                occurrence of sexual harassment or sexual 
                violence, a specification of the person or 
                persons to whom the alleged offense should be 
                reported and the options for confidential 
                reporting;
                    ``(B) a specification of any other person 
                whom the victim should contact; and
                    ``(C) procedures on the preservation of 
                evidence potentially necessary for proof of 
                criminal sexual assault.
            ``(3) Procedures for disciplinary action in cases 
        of alleged criminal sexual assault involving a cadet or 
        other Academy personnel.
            ``(4) Any other sanction authorized to be imposed 
        in a substantiated case of sexual harassment or sexual 
        violence involving a cadet or other Academy personnel 
        in rape, acquaintance rape, or any other criminal 
        sexual offense, whether forcible or nonforcible.
            ``(5) Required training on the policy for all 
        cadets and other Academy personnel, including the 
        specific training required for personnel who process 
        allegations of sexual harassment or sexual violence 
        involving Academy personnel.
    ``(c) Annual Assessment.--(1) The Secretary of Defense, 
through the Secretary of the Army, shall direct the 
Superintendent to conduct at the Academy during each Academy 
program year an assessment, to be administered by the 
Department of Defense, to determine the effectiveness of the 
policies, training, and procedures of the Academy with respect 
to sexual harassment and sexual violence involving Academy 
personnel.
    ``(2) For the assessment at the Academy under paragraph (1) 
with respect to an Academy program year that begins in an odd-
numbered calendar year, the Secretary of the Army shall conduct 
a survey, to be administered by the Department of Defense, of 
Academy personnel--
            ``(A) to measure--
                    ``(i) the incidence, during that program 
                year, of sexual harassment and sexual violence 
                events, on or off the Academy reservation, that 
                have been reported to officials of the Academy; 
                and
                    ``(ii) the incidence, during that program 
                year, of sexual harassment and sexual violence 
                events, on or off the Academy reservation, that 
                have not been reported to officials of the 
                Academy; and
            ``(B) to assess the perceptions of Academy 
        personnel of--
                    ``(i) the policies, training, and 
                procedures on sexual harassment and sexual 
                violence involving Academy personnel;
                    ``(ii) the enforcement of such policies;
                    ``(iii) the incidence of sexual harassment 
                and sexual violence involving Academy 
                personnel; and
                    ``(iv) any other issues relating to sexual 
                harassment and sexual violence involving 
                Academy personnel.
    ``(d) Annual Report.--(1) The Secretary of the Army shall 
direct the Superintendent of the Academy to submit to the 
Secretary a report on sexual harassment and sexual violence 
involving cadets or other personnel at the Academy for each 
Academy program year.
    ``(2) Each report under paragraph (1) shall include, for 
the Academy program year covered by the report, the following:
            ``(A) The number of sexual assaults, rapes, and 
        other sexual offenses involving cadets or other Academy 
        personnel that have been reported to Academy officials 
        during the program year and, of those reported cases, 
        the number that have been substantiated.
            ``(B) The policies, procedures, and processes 
        implemented by the Secretary of the Army and the 
        leadership of the Academy in response to sexual 
        harassment and sexual violence involving cadets or 
        other Academy personnel during the program year.
            ``(C) A plan for the actions that are to be taken 
        in the following Academy program year regarding 
        prevention of and response to sexual harassment and 
        sexual violence involving cadets or other Academy 
        personnel.
    ``(3) Each report under paragraph (1) for an Academy 
program year that begins in an odd-numbered calendar year shall 
include the results of the survey conducted in that program 
year under subsection (c)(2).
    ``(4)(A) The Secretary of the Army shall transmit to the 
Secretary of Defense, and to the Board of Visitors of the 
Academy, each report received by the Secretary under this 
subsection, together with the Secretary's comments on the 
report.
    ``(B) The Secretary of Defense shall transmit each such 
report, together with the Secretary's comments on the report, 
to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives.''.
            (2) United states naval academy.--Chapter 603 of 
        title 10, United States Code, is amended by adding at 
        the end the following new section:

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

    ``(a) Required Policy.--Under guidance prescribed by the 
Secretary of Defense, the Secretary of the Navy shall direct 
the Superintendent of the Naval Academy to prescribe a policy 
on sexual harassment and sexual violence applicable to the 
midshipmen and other personnel of the Naval Academy.
    ``(b) Matters To Be Specified in Policy.--The policy on 
sexual harassment and sexual violence prescribed under this 
section shall include specification of the following:
            ``(1) Programs to promote awareness of the 
        incidence of rape, acquaintance rape, and other sexual 
        offenses of a criminal nature that involve midshipmen 
        or other Academy personnel.
            ``(2) Procedures that a midshipman should follow in 
        the case of an occurrence of sexual harassment or 
        sexual violence, including--
                    ``(A) if the midshipman chooses to report 
                an occurrence of sexual harassment or sexual 
                violence, a specification of the person or 
                persons to whom the alleged offense should be 
                reported and the options for confidential 
                reporting;
                    ``(B) a specification of any other person 
                whom the victim should contact; and
                    ``(C) procedures on the preservation of 
                evidence potentially necessary for proof of 
                criminal sexual assault.
            ``(3) Procedures for disciplinary action in cases 
        of alleged criminal sexual assault involving a 
        midshipman or other Academy personnel.
            ``(4) Any other sanction authorized to be imposed 
        in a substantiated case of sexual harassment or sexual 
        violence involving a midshipman or other Academy 
        personnel in rape, acquaintance rape, or any other 
        criminal sexual offense, whether forcible or 
        nonforcible.
            ``(5) Required training on the policy for all 
        midshipmen and other Academy personnel, including the 
        specific training required for personnel who process 
        allegations of sexual harassment or sexual violence 
        involving Academy personnel.
    ``(c) Annual Assessment.--(1) The Secretary of Defense, 
through the Secretary of the Navy, shall direct the 
Superintendent to conduct at the Academy during each Academy 
program year an assessment, to be administered by the 
Department of Defense, to determine the effectiveness of the 
policies, training, and procedures of the Academy with respect 
to sexual harassment and sexual violence involving Academy 
personnel.
    ``(2) For the assessment at the Academy under paragraph (1) 
with respect to an Academy program year that begins in an odd-
numbered calendar year, the Secretary of the Navy shall conduct 
a survey, to be administered by the Department of Defense, of 
Academy personnel--
            ``(A) to measure--
                    ``(i) the incidence, during that program 
                year, of sexual harassment and sexual violence 
                events, on or off the Academy reservation, that 
                have been reported to officials of the Academy; 
                and
                    ``(ii) the incidence, during that program 
                year, of sexual harassment and sexual violence 
                events, on or off the Academy reservation, that 
                have not been reported to officials of the 
                Academy; and
            ``(B) to assess the perceptions of Academy 
        personnel of--
                    ``(i) the policies, training, and 
                procedures on sexual harassment and sexual 
                violence involving Academy personnel;
                    ``(ii) the enforcement of such policies;
                    ``(iii) the incidence of sexual harassment 
                and sexual violence involving Academy 
                personnel; and
                    ``(iv) any other issues relating to sexual 
                harassment and sexual violence involving 
                Academy personnel.
    ``(d) Annual Report.--(1) The Secretary of the Navy shall 
direct the Superintendent of the Naval Academy to submit to the 
Secretary a report on sexual harassment and sexual violence 
involving midshipmen or other personnel at the Academy for each 
Academy program year.
    ``(2) Each report under paragraph (1) shall include, for 
the Academy program year covered by the report, the following:
            ``(A) The number of sexual assaults, rapes, and 
        other sexual offenses involving midshipmen or other 
        Academy personnel that have been reported to Naval 
        Academy officials during the program year and, of those 
        reported cases, the number that have been 
        substantiated.
            ``(B) The policies, procedures, and processes 
        implemented by the Secretary of the Navy and the 
        leadership of the Naval Academy in response to sexual 
        harassment and sexual violence involving midshipmen or 
        other Academy personnel during the program year.
            ``(C) A plan for the actions that are to be taken 
        in the following Academy program year regarding 
        prevention of and response to sexual harassment and 
        sexual violence involving midshipmen or other Academy 
        personnel.
    ``(3) Each report under paragraph (1) for an Academy 
program year that begins in an odd-numbered calendar year shall 
include the results of the survey conducted in that program 
year under subsection (c)(2).
    ``(4)(A) The Secretary of the Navy shall transmit to the 
Secretary of Defense, and to the Board of Visitors of the Naval 
Academy, each report received by the Secretary under this 
subsection, together with the Secretary's comments on the 
report.
    ``(B) The Secretary of Defense shall transmit each such 
report, together with the Secretary's comments on the report, 
to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives.''.
            (3) United states air force academy.--Chapter 903 
        of title 10, United States Code, is amended by adding 
        at the end the following new section:

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

    ``(a) Required Policy.--Under guidance prescribed by the 
Secretary of Defense, the Secretary of the Air Force shall 
direct the Superintendent of the Academy to prescribe a policy 
on sexual harassment and sexual violence applicable to the 
cadets and other personnel of the Academy.
    ``(b) Matters To Be Specified in Policy.--The policy on 
sexual harassment and sexual violence prescribed under this 
section shall include specification of the following:
            ``(1) Programs to promote awareness of the 
        incidence of rape, acquaintance rape, and other sexual 
        offenses of a criminal nature that involve cadets or 
        other Academy personnel.
            ``(2) Procedures that a cadet should follow in the 
        case of an occurrence of sexual harassment or sexual 
        violence, including--
                    ``(A) if the cadet chooses to report an 
                occurrence of sexual harassment or sexual 
                violence, a specification of the person or 
                persons to whom the alleged offense should be 
                reported and the options for confidential 
                reporting;
                    ``(B) a specification of any other person 
                whom the victim should contact; and
                    ``(C) procedures on the preservation of 
                evidence potentially necessary for proof of 
                criminal sexual assault.
            ``(3) Procedures for disciplinary action in cases 
        of alleged criminal sexual assault involving a cadet or 
        other Academy personnel.
            ``(4) Any other sanction authorized to be imposed 
        in a substantiated case of sexual harassment or sexual 
        violence involving a cadet or other Academy personnel 
        in rape, acquaintance rape, or any other criminal 
        sexual offense, whether forcible or nonforcible.
            ``(5) Required training on the policy for all 
        cadets and other Academy personnel, including the 
        specific training required for personnel who process 
        allegations of sexual harassment or sexual violence 
        involving Academy personnel.
    ``(c) Annual Assessment.--(1) The Secretary of Defense, 
through the Secretary of the Air Force, shall direct the 
Superintendent to conduct at the Academy during each Academy 
program year an assessment, to be administered by the 
Department of Defense, to determine the effectiveness of the 
policies, training, and procedures of the Academy with respect 
to sexual harassment and sexual violence involving Academy 
personnel.
    ``(2) For the assessment at the Academy under paragraph (1) 
with respect to an Academy program year that begins in an odd-
numbered calendar year, the Secretary of the Air Force shall 
conduct a survey, to be administered by the Department of 
Defense, of Academy personnel--
            ``(A) to measure--
                    ``(i) the incidence, during that program 
                year, of sexual harassment and sexual violence 
                events, on or off the Academy reservation, that 
                have been reported to officials of the Academy; 
                and
                    ``(ii) the incidence, during that program 
                year, of sexual harassment and sexual violence 
                events, on or off the Academy reservation, that 
                have not been reported to officials of the 
                Academy; and
            ``(B) to assess the perceptions of Academy 
        personnel of--
                    ``(i) the policies, training, and 
                procedures on sexual harassment and sexual 
                violence involving Academy personnel;
                    ``(ii) the enforcement of such policies;
                    ``(iii) the incidence of sexual harassment 
                and sexual violence involving Academy 
                personnel; and
                    ``(iv) any other issues relating to sexual 
                harassment and sexual violence involving 
                Academy personnel.
    ``(d) Annual Report.--(1) The Secretary of the Air Force 
shall direct the Superintendent of the Academy to submit to the 
Secretary a report on sexual harassment and sexual violence 
involving cadets or other personnel at the Academy for each 
Academy program year.
    ``(2) Each report under paragraph (1) shall include, for 
the Academy program year covered by the report, the following:
            ``(A) The number of sexual assaults, rapes, and 
        other sexual offenses involving cadets or other Academy 
        personnel that have been reported to Academy officials 
        during the program year and, of those reported cases, 
        the number that have been substantiated.
            ``(B) The policies, procedures, and processes 
        implemented by the Secretary of the Air Force and the 
        leadership of the Academy in response to sexual 
        harassment and sexual violence involving cadets or 
        other Academy personnel during the program year.
            ``(C) A plan for the actions that are to be taken 
        in the following Academy program year regarding 
        prevention of and response to sexual harassment and 
        sexual violence involving cadets or other Academy 
        personnel.
    ``(3) Each report under paragraph (1) for an Academy 
program year that begins in an odd-numbered calendar year shall 
include the results of the survey conducted in that program 
year under subsection (c)(2).
    ``(4)(A) The Secretary of the Air Force shall transmit to 
the Secretary of Defense, and to the Board of Visitors of the 
Academy, each report received by the Secretary under this 
subsection, together with the Secretary's comments on the 
report.
    ``(B) The Secretary of Defense shall transmit each such 
report, together with the Secretary's comments on the report, 
to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives.''.
    (b) Further Information From Cadets and Midshipmen at the 
Service Academies on Sexual Assault and Sexual Harassment 
Issues.--
            (1) Use of focus groups for years when survey not 
        required.--In any year in which the Secretary of a 
        military department is not required by law to conduct a 
        survey at the service academy under the Secretary's 
        jurisdiction on matters relating to sexual assault and 
        sexual harassment issues at that Academy, the Secretary 
        shall provide for focus groups to be conducted at that 
        Academy for the purposes of ascertaining information 
        relating to sexual assault and sexual harassment issues 
        at that Academy.
            (2) Inclusion in report.--Information ascertained 
        from a focus group conducted pursuant to paragraph (1) 
        shall be included in the Secretary's annual report to 
        Congress on sexual harassment and sexual violence at 
        the service academies.
            (3) Service academies.--For purposes of this 
        subsection, the term ``service academy'' means the 
        following:
                    (A) The United States Military Academy.
                    (B) The United States Naval Academy.
                    (C) The United States Air Force Academy.
    (c) Repeal of Prior Law.--Section 527 of the National 
Defense Authorization Act for Fiscal Year 2004 (Public Law 108-
136; 117 Stat. 1469; 10 U.S.C. 4331 note) is repealed.
    (d) Clerical Amendments.--
            (1) The table of sections at the beginning of 
        chapter 403 of title 10, United States Code, is amended 
        by adding at the end the following new item:

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

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

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

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

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

SEC. 533. 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.

         PART II--SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAMS

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

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

SEC. 536. DETAIL OF COMMISSIONED OFFICERS AS STUDENTS AT MEDICAL 
                    SCHOOLS.

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

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

    ``(a) Detail Authorized.--The Secretary of each military 
department may detail commissioned officers of the armed forces 
as students at accredited medical schools or schools of 
osteopathy located in the United States for a period of 
training leading to the degree of doctor of medicine. No more 
than 25 officers from each military department may commence 
such training in any single fiscal year.
    ``(b) Eligibility for Detail.--To be eligible for detail 
under subsection (a), an officer must be a citizen of the 
United States and must--
            ``(1) have served on active duty for a period of 
        not less than two years nor more than six years and be 
        in the pay grade 0-3 or below as of the time the 
        training is to begin; and
            ``(2) sign an agreement that unless sooner 
        separated the officer will--
                    ``(A) complete the educational course of 
                medical training;
                    ``(B) accept transfer or detail as a 
                medical officer within the military department 
                concerned when the officer's training is 
                completed; and
                    ``(C) agree to serve, following completion 
                of the officer's training, on active duty (or 
                on active duty and in the Selected Reserve) for 
                a period as specified pursuant to subsection 
                (c).
    ``(c) Service Obligation.--An agreement under subsection 
(c) shall provide that the officer shall serve on active duty 
for two years for each year or part thereof of the officer's 
medical training under subsection (a), except that the 
agreement may authorize the officer to serve a portion of the 
officer's service obligation on active duty and to complete the 
service obligation that remains upon separation from active 
duty in the Selected Reserve, in which case the officer shall 
serve three years in the Selected Reserve for each year or part 
thereof of the officer's medical training under subsection (a) 
for any service obligation that was not completed before 
separation from active duty.
    ``(d) Selection of Officers for Detail.--Officers detailed 
for medical training under subsection (a) shall be selected on 
a competitive basis by the Secretary of the military department 
concerned.
    ``(e) Relation of Service Obligations to Other Service 
Obligations.--Any service obligation incurred by an officer 
under an agreement entered into under subsection (b) shall be 
in addition to any service obligation incurred by the officer 
under any other provision of law or agreement.
    ``(f) Expenses.--Expenses incident to the detail of 
officers under this section shall be paid from any funds 
appropriated for the military department concerned.
    ``(g) Failure To Complete Program.--(1) An officer who is 
dropped from a program of medical training to which detailed 
under subsection (a) for deficiency in conduct or studies, or 
for other reasons, may be required to perform active duty in an 
appropriate military capacity in accordance with the active 
duty obligation imposed on the officer under regulations issued 
by the Secretary of Defense for purposes of this section.
    ``(2) In no case shall an officer be required to serve on 
active duty under paragraph (1) for any period in excess of one 
year for each year or part thereof the officer participated in 
the program.
    ``(h) Limitation on Details.--No agreement detailing an 
officer of the armed forces to an accredited medical school or 
school of osteopathy may be entered into during any period in 
which the President is authorized by law to induct persons into 
the armed forces involuntarily. Nothing in this subsection 
shall affect any agreement entered into during any period when 
the President is not authorized by law to so induct persons 
into the armed forces''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 2004 the following new item:

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

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

    (a) Increase in Maximum Amount.--Section 2173(e)(2) of 
title 10, United States Code, is amended by striking 
``$22,000'' and inserting ``$60,000''.
    (b) Effective Date.--
            (1) In general.--The amendment made by subsection 
        (a) shall take effect on October 1, 2006, and shall 
        apply to agreements entered into or revised under 
        section 2173 of title 10, United States Code, on or 
        after that date.
            (2) Prohibition on adjustment.--The adjustment 
        required by the second sentence of section 2173(e)(2) 
        of title 10, United States Code, to be made on October 
        1, 2006, shall not be made.

SEC. 538. HEALTH PROFESSIONS SCHOLARSHIP AND FINANCIAL ASSISTANCE 
                    PROGRAM FOR ACTIVE SERVICE.

    (a) Maximum Stipend Amount.--Section 2121(d) of title 10, 
United States Code, is amended--
            (1) by striking ``at the rate of $579 per month'' 
        and inserting ``at a monthly rate established by the 
        Secretary of Defense, but not to exceed a total of 
        $30,000 per year''; and
            (2) by striking ``That rate'' and inserting ``The 
        maximum annual amount of the stipend''.
    (b) Maximum Annual Grant.--Section 2127(e) of such title is 
amended--
            (1) by striking ``$15,000'' and inserting ``in an 
        amount not to exceed $45,000''; and
            (2) by striking ``The amount'' and inserting ``The 
        maximum amount''.
    (c) Report on Program.--Not later than March 1, 2007, the 
Secretary of Defense shall submit to the Congress a report on 
the Health Professions Scholarship and Financial Assistance 
Program for Active Service under subchapter I of chapter 105 of 
title 10, United States Code. The report shall include the 
following:
            (1) An assessment of the success of each military 
        department in achieving its recruiting goals under the 
        program during each of fiscal years 2000 through 2006.
            (2) If any military department failed to achieve 
        its recruiting goals under the program during any 
        fiscal year covered by paragraph (1), an explanation of 
        the failure of the military department to achieve such 
        goal during such fiscal year.
            (3) An assessment of the adequacy of the stipend 
        authorized by section 2121(d) of title 10, United 
        States Code, in meeting the objectives of the program.
            (4) Such recommendations for legislative or 
        administrative action as the Secretary considers 
        appropriate to enhance the effectiveness of the program 
        in meeting the annual recruiting goals of the military 
        departments for medical personnel covered by the 
        program.
    (d) Effective Date.--
            (1) In general.--The amendments made by this 
        section shall take effect on October 1, 2006.
            (2) Prohibition on adjustments.--The adjustments 
        required by the second sentence of subsection (d) of 
        section 2121 of title 10, United States Code, and the 
        second sentence of subsection (e) of section 2127 of 
        such title to be made in 2007 shall not be made.

                     PART III--JUNIOR ROTC PROGRAM

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

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

``Sec. 2033. Instructor qualifications

    ``(a) In General.--In order for a retired officer or 
noncommissioned officer to be employed as an instructor in the 
program, the officer must be certified by the Secretary of the 
military department concerned as a qualified instructor in 
leadership, wellness and fitness, civics, and other courses 
related to the content of the program, according to the 
qualifications set forth in subsection (b)(2) or (c)(2), as 
appropriate.
    ``(b) Senior Military Instructors.--
            ``(1) Role.--Senior military instructors shall be 
        retired officers of the armed forces and shall serve as 
        instructional leaders who oversee the program.
            ``(2) Qualifications.--A senior military instructor 
        shall have the following qualifications:
                    ``(A) Professional military qualification, 
                as determined by the Secretary of the military 
                department concerned.
                    ``(B) Award of a baccalaureate degree from 
                an institution of higher learning.
                    ``(C) Completion of secondary education 
                teaching certification requirements for the 
                program as established by the Secretary of the 
                military department concerned.
                    ``(D) Award of an advanced certification by 
                the Secretary of the military department 
                concerned in core content areas based on--
                            ``(i) accumulated points for 
                        professional activities, services to 
                        the profession, awards, and 
                        recognitions;
                            ``(ii) professional development to 
                        meet content knowledge and 
                        instructional skills; and
                            ``(iii) performance evaluation of 
                        competencies and standards within the 
                        program through site visits and 
                        inspections.
    ``(c) Non-Senior Military Instructors.--
            ``(1) Role.--Non-senior military instructors shall 
        be retired noncommissioned officers of the armed forces 
        and shall serve as instructional leaders and teach 
        independently of, but share program responsibilities 
        with, senior military instructors.
            ``(2) Qualifications.--A non-senior military 
        instructor shall demonstrate a depth of experience, 
        proficiency, and expertise in coaching, mentoring, and 
        practical arts in executing the program, and shall have 
        the following qualifications:
                    ``(A) Professional military qualification, 
                as determined by the Secretary of the military 
                department concerned.
                    ``(B) Award of an associates degree from an 
                institution of higher learning within five 
                years of employment.
                    ``(C) Completion of secondary education 
                teaching certification requirements for the 
                program as established by the Secretary of the 
                military department concerned.
                    ``(D) Award of an advanced certification by 
                the Secretary of the military department 
                concerned in core content areas based on--
                            ``(i) accumulated points for 
                        professional activities, services to 
                        the profession, awards, and 
                        recognitions;
                            ``(ii) professional development to 
                        meet content knowledge and 
                        instructional skills; and
                            ``(iii) performance evaluation of 
                        competencies and standards within the 
                        program through site visits and 
                        inspections.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``2033. Instructor qualifications.''.

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

    (a) Eligibility of ``Gray-Area'' Guard and Reserve 
Members.--Section 2031 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(e) Instead of, or in addition to, detailing officers and 
noncommissioned officers on active duty under subsection (c)(1) 
and authorizing the employment of retired officers and 
noncommissioned officers who are in receipt of retired pay and 
members of the Fleet Reserve and Fleet Marine Corps Reserve 
under subsection (d), the Secretary of the military department 
concerned may authorize qualified institutions to employ as 
administrators and instructors in the program officers and 
noncommissioned officers who are under 60 years of age and who, 
but for age, would be eligible for retired pay for non-regular 
service under section 12731 of this title and whose 
qualifications are approved by the Secretary and the 
institution concerned and who request such employment, subject 
to the following:
            ``(1) The Secretary concerned shall pay to the 
        institution an amount equal to one-half of the amount 
        paid to the member by the institution for any period, 
        up to a maximum of one-half of the difference between--
                    ``(A) the retired or retainer pay for an 
                active duty officer or noncommissioned officer 
                of the same grade and years of service for such 
                period; and
                    ``(B) the active duty pay and allowances 
                which the member would have received for that 
                period if on active duty.
            ``(2) Notwithstanding the limitation in paragraph 
        (1), the Secretary concerned may pay to the institution 
        more than one-half of the amount paid to the member by 
        the institution if (as determined by the Secretary)--
                    ``(A) the institution is in an 
                educationally and economically deprived area; 
                and
                    ``(B) the Secretary determines that such 
                action is in the national interest.
            ``(3) Payments by the Secretary concerned under 
        this subsection shall be made from funds appropriated 
        for that purpose.
            ``(4) Amounts may be paid under this subsection 
        with respect to a member after the member reaches the 
        age of 60.
            ``(5) Notwithstanding any other provision of law, a 
        member employed by a qualified institution pursuant to 
        an authorization under this subsection is not, while so 
        employed, considered to be on active duty or inactive 
        duty training for any purpose.''.
    (b) Clarification of Status of Retired Members Providing 
Instruction.--Subsection (d) of such section is amended in the 
matter preceding paragraph (1) by inserting ``who are in 
receipt of retired pay'' after ``retired officers and 
noncommissioned officers''.

SEC. 541. EXPANSION OF JUNIOR RESERVE OFFICERS' TRAINING CORPS PROGRAM.

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

SEC. 542. REVIEW OF LEGAL STATUS OF JUNIOR ROTC PROGRAM.

    (a) Review.--The Secretary of Defense shall conduct a 
review of the 1976 legal opinion issued by the General Counsel 
of the Department of Defense regarding instruction of non-host 
unit students participating in Junior Reserve Officers' 
Training Corps programs. The review shall consider whether 
changes to law after the issuance of that opinion allow in 
certain circumstances for the arrangement for assignment of 
instructors that provides for the travel of an instructor from 
one educational institution to another once during the regular 
school day for the purposes of the Junior Reserve Officers' 
Training Corps program as an authorized arrangement that 
enhances administrative efficiency in the management of the 
program. If the Secretary, as a result of the review, 
determines that such authority is not available, the Secretary 
should also consider whether such authority should be available 
and whether there should be authority to waive the restrictions 
under certain circumstances.
    (b) Report.--The Secretary shall submit to the Committee on 
Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report containing 
the results of the review not later than 180 days after the 
date of the enactment of this Act.
    (c) Interim Authority.--A current institution that has more 
than 70 students and is providing support to another 
educational institutional with more than 70 students and has 
been providing for the assignment of instructors from one 
school to the other may continue to provide such support until 
180 days following receipt of the report under subsection (b).

             PART IV--OTHER EDUCATION AND TRAINING PROGRAMS

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

    (a) Certificate Programs and Courses.--Subparagraph (C) of 
subsection (a)(2) of section 7045 of title 10, United States 
Code, is amended by striking ``Navy or Marine Corps'' and 
inserting ``armed forces''.
    (b) Graduate-Level Instruction.--Such subsection is further 
amended--
            (1) by redesignating subparagraph (D) as 
        subparagraph (E); and
            (2) by inserting after subparagraph (C) the 
        following new subparagraph (D):
    ``(D)(i) The Secretary may permit an eligible enlisted 
member of the armed forces to receive graduate-level 
instruction at the Naval Postgraduate School in a program 
leading to a master's degree in a technical, analytical, or 
engineering curriculum.
    ``(ii) To be eligible to be provided instruction under this 
subparagraph, the enlisted member must have been awarded a 
baccalaureate degree by an institution of higher education.
    ``(iii) Instruction under this subparagraph may be provided 
only on a space-available basis.
    ``(iv) An enlisted member who successfully completes a 
course of instruction under this subparagraph may be awarded a 
master's degree under section 7048 of this title.
    ``(v) Instruction under this subparagraph shall be provided 
pursuant to regulations prescribed by the Secretary. Such 
regulations may include criteria for eligibility of enlisted 
members for instruction under this subparagraph and 
specification of obligations for further service in the armed 
forces relating to receipt of such instruction.''.
    (c) Conforming Amendments.--Such section is further 
amended--
            (1) in subparagraph (E) of subsection (a)(2), as 
        redesignated by subsection (b)(1), by striking ``and 
        (C)'' and inserting ``(C), and (D)''; and
            (2) in subsection (b)(2), by striking ``(a)(2)(D)'' 
        and inserting ``(a)(2)(E)''.
    (d) Deadline for Submission of Previously Required 
Report.--The report required by subsection (c) of section 526 
of the National Defense Authorization Act for Fiscal Year 2006 
(Public Law 109-163; 119 Stat. 3246), relating to the rationale 
and plans of the Navy to provide enlisted members an 
opportunity to obtain graduate degrees, shall be submitted, in 
accordance with that subsection, not later than March 30, 2007.
    (e) Repeal of Requirement for Report on Pilot Program.--
            (1) Repeal.--Subsection (d) of section 526 of the 
        National Defense Authorization Act for Fiscal Year 2006 
        (Public Law 109-163; 119 Stat. 3246) is repealed.
            (2) Conforming amendment.--Subsection (c)(2) of 
        such section is amended by striking ``, particularly in 
        the career fields under consideration for the pilot 
        program referred to in subsection (d)''.
    (f) Report on Use of NPS and AFIT.--Not later than March 
30, 2007, the Secretary of the Navy and the Secretary of the 
Air Force shall submit to the Committee on Armed Services of 
the Senate and the Committee on Armed Services of the House of 
Representatives a joint report on the manner by which each 
Secretary intends to use the Naval Postgraduate School and the 
Air Force Institute of Technology during fiscal years 2008 
through 2013 to meet the overall requirements of the Navy and 
Marine Corps and of the Air Force for enlisted members with 
graduate degrees. The report shall include the following:
            (1) The numbers and occupational specialities of 
        enlisted members that each Secretary plans to enroll as 
        candidates for graduate degrees each year in each of 
        the two schools.
            (2) A description of the graduate degrees that 
        those enlisted members will pursue at those schools.
            (3) Other matters that the two Secretaries jointly 
        consider to be useful for the committees to better 
        understand the future role that the two schools will 
        each have in meeting service requirements for enlisted 
        members with graduate degrees.

                Subtitle D--General Service Authorities

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

    (a) Requirement for Test.--The Secretary of Defense shall 
conduct a test of the utility of commercially available test 
preparation guides and education programs designed to assist 
recruit candidates achieve scores on military recruit 
qualification testing that better reflect the full potential of 
those recruit candidates in terms of aptitude and mental 
category. The test shall be conducted through the Secretaries 
of the Army, Navy, and Air Force.
    (b) Assessment of Commercially Available Guides and 
Programs.--The test shall assess commercially available test 
preparation guides and education programs designed to enhance 
test performance. The test preparation guides assessed shall 
test both written formats and self-paced computer-assisted 
programs. Education programs assessed may test both self-study 
textbook and computer-assisted courses and instructor-led 
courses.
    (c) Objectives.--The objectives of the test are to 
determine the following:
            (1) The degree to which test preparation assistance 
        degrades test reliability and accuracy.
            (2) The degree to which test preparation assistance 
        allows more accurate testing of skill aptitudes and 
        mental capability.
            (3) The degree to which test preparation assistance 
        allows individuals to achieve higher scores without 
        sacrificing reliability and accuracy.
            (4) What role is recommended for test preparation 
        assistance in military recruiting.
    (d) Control Group.--As part of the test, the Secretary 
shall identify a population of recruit candidates who will not 
receive test preparation assistance and will serve as a control 
group for the test. Data from recruit candidates participating 
in the test and data from recruit candidates in the control 
group shall be compared in terms of both (1) test performance, 
and (2) subsequent duty performance in training and unit 
settings following entry on active duty.
    (e) Number of Participants.--The Secretary shall provide 
test preparation assistance to a minimum of 2,000 recruit 
candidates and shall identify an equal number to be established 
as the control group population.
    (f) Duration of Test.--The Secretary shall begin the test 
not later than nine months after the date of the enactment of 
this Act. The test shall identify participants over a one-year 
period from the start of the test and shall assess duty 
performance for each participant for 18 months following entry 
on active duty. The last participant shall be identified, but 
other participants may not be identified.
    (g) Report on Findings.--Not later than six months after 
completion of the duty performance assessment of the last 
identified participant in the test, the Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of 
Representatives a report providing the findings of the 
Secretary with respect to each of the objectives specified in 
subsection (c) and the Secretary's recommendations.

SEC. 547. CLARIFICATION OF NONDISCLOSURE REQUIREMENTS APPLICABLE TO 
                    CERTAIN SELECTION BOARD PROCEEDINGS.

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

``Sec. 613a. Nondisclosure of board proceedings

    ``(a) Nondisclosure.--The proceedings of a selection board 
convened under section 611 this title may not be disclosed to 
any person not a member of the board.
    ``(b) Prohibited Uses of Board Discussions, Deliberations, 
and Records.--The discussions and deliberations of a selection 
board described in subsection (a) and any written or 
documentary record of such discussions and deliberations--
            ``(1) are immune from legal process;
            ``(2) may not be admitted as evidence; and
            ``(3) may not be used for any purpose in any 
        action, suit, or judicial or administrative proceeding 
        without the consent of the Secretary of the military 
        department concerned.''.
            (2) Conforming amendment.--Section 618 of such 
        title is amended by striking subsection (f).
    (b) Reserve Selection Board Proceedings.--Section 14104 of 
such title is amended to read as follows:

``Sec. 14104. Nondisclosure of board proceedings

    ``(a) Nondisclosure.--The proceedings of a selection board 
convened under section 14101 of this title may not be disclosed 
to any person not a member of the board.
    ``(b) Prohibited Uses of Board Discussions, Deliberations, 
and Records.--The discussions and deliberations of a selection 
board described in subsection (a) and any written or 
documentary record of such discussions and deliberations--
            ``(1) are immune from legal process;
            ``(2) may not be admitted as evidence; and
            ``(3) may not be used for any purpose in any 
        action, suit, or judicial or administrative proceeding 
        without the consent of the Secretary of the military 
        department concerned.''.
    (c) Applicability.--Section 613a of title 10, United States 
Code, as added by subsection (a), shall apply with respect to 
the proceedings of all selection boards convened under section 
611 of that title, including selection boards convened before 
the date of the enactment of this Act. Section 14104 of such 
title, as amended by subsection (b), shall apply with respect 
to the proceedings of all selection boards convened under 
section 14101 of that title, including selection boards 
convened before the date of the enactment of this Act.
    (d) Clerical Amendments.--
            (1) The table of sections at the beginning of 
        subchapter I of chapter 36 of title 10, United States 
        Code, is amended by inserting after the item relating 
        to section 613 the following new item:

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

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

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

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

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

                  Subtitle E--Military Justice Matters

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

    Not later than March 1, 2007, the Secretaries of the 
military departments shall prescribe regulations, or amend 
current regulations, in order to provide that members of the 
Armed Forces who are ordered to duty at locations overseas in 
an inactive duty for training status are subject to the 
jurisdiction of the Uniform Code of Military Justice, pursuant 
to the provisions of section 802(a)(3) of title 10, United 
States Code (article 2(a)(3) of the Uniform Code of Military 
Justice), continuously from the commencement of execution of 
such orders to the conclusion of such orders.

SEC. 552. CLARIFICATION OF APPLICATION OF UNIFORM CODE OF MILITARY 
                    JUSTICE DURING A TIME OF WAR.

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

                   Subtitle F--Decorations and Awards

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

    (a) Future Presentations.--Sections 3755, 6257, and 8755 of 
title 10, United States Code, and section 505 of title 14, 
United States Code, are each amended--
            (1) by striking ``after October 23, 2002''; and
            (2) by adding at the end the following new 
        sentence: ``In the case of a posthumous presentation of 
        the medal, the flag shall be presented to the person to 
        whom the medal is presented.''.
    (b) Presentation of Flag for Prior Recipients of Medal of 
Honor.--
            (1) Living recipients.--The President shall provide 
        for the presentation of the Medal of Honor Flag as 
        expeditiously as possible after the date of the 
        enactment of this Act to each living recipient of the 
        Medal of Honor who has not already received a Medal of 
        Honor Flag.
            (2) Survivors of deceased recipients.--In the case 
        of presentation of the Medal of Honor Flag for a 
        recipient of the Medal of Honor who was awarded the 
        Medal of Honor before the date of the enactment of this 
        Act and who is deceased as of such date (or who dies 
        after such date and before the presentation required by 
        paragraph (1)), the President shall provide for 
        posthumous presentation of the Medal of Honor Flag, 
        upon written application therefor, to the primary 
        living next of kin, as determined under regulations or 
        procedures prescribed by the Secretary of Defense for 
        the purposes of this paragraph (and notwithstanding the 
        amendments made by paragraph (2) of subsection (a)).
            (3) Medal of honor flag.--In this subsection, the 
        term ``Medal of Honor Flag'' means the flag designated 
        under section 903 of title 36, United States Code.

SEC. 556. REVIEW OF ELIGIBILITY OF PRISONERS OF WAR FOR AWARD OF THE 
                    PURPLE HEART.

    (a) Report.--Not later than March 1, 2007, the President 
shall transmit to the Committees on Armed Services of the 
Senate and House of Representatives a report on the 
advisability of modifying the criteria for the award of the 
Purple Heart to authorize the award of the Purple Heart--
            (1) to a member of the Armed Forces who dies in 
        captivity as a prisoner of war under unknown 
        circumstances or as a result of conditions and 
        treatment that, under criteria for eligibility for the 
        Purple Heart as in effect on the date of the enactment 
        of this Act, do not qualify the decedent for award of 
        the Purple Heart; and
            (2) to an individual who while a member of the 
        Armed Forces survives captivity as a prisoner of war, 
        but who dies thereafter as a result of disease or 
        disability, or a result of disease and condition and 
        treatment, incurred during such captivity.
    (b) Determination.--As part of the review undertaken in 
order to prepare the report required by subsection (a), the 
President shall make a determination on the advisability of 
expanding eligibility for the award of the Purple Heart to 
deceased servicemembers held as a prisoner of war after 
December 7, 1941, who meet the criteria for eligibility for the 
prisoner-of-war medal under section 1128 of title 10, United 
States Code (including the criterion under subsection (e) of 
that section with respect to honorable conduct), but who do not 
meet the criteria for eligibility for the Purple Heart.
    (c) Requirements.--In making the determination required by 
subsection (b), the President shall take into consideration the 
following:
            (1) The brutal treatment endured by thousands of 
        prisoners of war incarcerated by enemy forces.
            (2) The circumstance that many servicemembers held 
        as prisoners of war died during captivity due to causes 
        that do not meet the criteria for eligibility for award 
        of the Purple Heart, including starvation, abuse, the 
        deliberate withholding of medical treatment for injury 
        or disease, or other causes.
            (3) The circumstance that some members of the Armed 
        Forces died in captivity under circumstances 
        establishing eligibility for the prisoner-of-war medal 
        but under circumstances not otherwise establishing 
        eligibility for the Purple Heart.
            (4) The circumstance that some members and former 
        members of the Armed Forces who were held as prisoners 
        of war and following captivity were issued the 
        prisoner-of-war medal subsequently died due to a 
        disease or disability that was incurred during that 
        captivity, without otherwise having been awarded the 
        Purple Heart due to the injury or conditions resulting 
        in that disease or disability or otherwise having been 
        awarded the Purple Heart for injury incurring during 
        captivity.
            (5) The views of veterans service organizations, 
        including the Military Order of the Purple Heart.
            (6) The importance that has been assigned to 
        determining all available facts before a decision is 
        made to award the Purple Heart.
            (7) The views of the Secretary of Defense and the 
        Chairman of the Joint Chiefs of Staff.

SEC. 557. REPORT ON DEPARTMENT OF DEFENSE PROCESS FOR AWARDING 
                    DECORATIONS.

    (a) Review.--The Secretary of Defense shall conduct a 
review of the policy, procedures, and processes of the military 
departments for awarding decorations to members of the Armed 
Forces.
    (b) Time Periods.--As part of the review under subsection 
(a), the Secretary shall compare the time frames of the awards 
process between active duty and reserve components--
            (1) from the time a recommendation for the award of 
        a decoration is submitted until the time the award of 
        the decoration is approved; and
            (2) from the time the award of a decoration is 
        approved until the time when the decoration is 
        presented to the recipient.
    (c) Reserve Components.--If the Secretary, in conducting 
the review under subsection (a), finds that the timeliness of 
the awards process for members of the reserve components is not 
the same as, or similar to, that for members of the active 
components, the Secretary shall take appropriate steps to 
address the discrepancy.
    (d) Report.--Not later than August 1, 2007, the Secretary 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of 
Representatives a report containing the Secretary's findings as 
a result of the review under subsection (a), together with a 
plan for implementing whatever changes are determined to be 
appropriate to the process for awarding decorations in order to 
ensure that decorations are awarded in a timely manner, to the 
extent practicable.

               Subtitle G--Matters Relating to Casualties

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

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

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

    ``(a) Authority.--A member of the armed forces who is 
provided an assistive technology or assistive technology device 
for a severe or debilitating illness or injury incurred or 
aggravated by such member while on active duty may, under 
regulations prescribed by the Secretary of Defense, be 
authorized to retain such assistive technology or assistive 
technology device upon the separation of the member from active 
service.
    ``(b) Definitions.--In this section, the terms `assistive 
technology' and `assistive technology device' have the meaning 
given those terms in section 3 of the Assistive Technology Act 
of 1998 (29 U.S.C. 3002).''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 1150 the following new item:

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

SEC. 562. TRANSPORTATION OF REMAINS OF CASUALTIES DYING IN A THEATER OF 
                    COMBAT OPERATIONS.

    (a) Required Transportation.--In the case of a member of 
the Armed Forces who dies in a combat theater of operations and 
whose remains are returned to the United States through the 
mortuary facility at Dover Air Force Base, Delaware, the 
Secretary concerned, under regulations prescribed by the 
Secretary of Defense, shall provide transportation of the 
remains of that member from Dover Air Force Base to the 
applicable escorted remains destination in accordance with 
section 1482(a)(8) of title 10, United States Code, and this 
section.
    (b) Escorted Remains Destination.--In this section, the 
term ``escorted remains destination'' means the place to which 
remains are authorized to be transported under section 
1482(a)(8) of title 10, United States Code.
    (c) Air Transportation From Dover AFB.--
            (1) Military transportation.--If transportation of 
        remains under subsection (a) includes transportation by 
        air, such transportation (except as provided under 
        paragraph (2)) shall be made by military aircraft or 
        military-contracted aircraft.
            (2) Alternative transportation by aircraft.--The 
        provisions of paragraph (1) shall not be applicable to 
        the transportation of remains by air to the extent that 
        the person designated to direct disposition of the 
        remains directs otherwise.
            (3) Primary mission.--When remains are transported 
        by military aircraft or military-contracted aircraft 
        under this section, the primary mission of the aircraft 
        providing that transportation shall be the 
        transportation of such remains. However, more than one 
        set of remains may be transported on the same flight.
    (d) Escort.--
            (1) In general.--Except as provided in paragraph 
        (2), the Secretary concerned shall ensure that remains 
        transported under this section are continuously 
        escorted from Dover Air Force Base to the applicable 
        escorted remains destination by a member of the Armed 
        Forces in an appropriate grade, as determined by the 
        Secretary.
            (2) Other escort.--If a specific military escort is 
        requested by the person designated to direct 
        disposition of such remains and the Secretary approves 
        that request, then the Secretary is not required to 
        provide an additional military escort under paragraph 
        (1).
    (e) Honor Guard Detail.--
            (1) Provision of detail.--Except in a case in which 
        the person designated to direct disposition of remains 
        requests that no military honor guard be present, the 
        Secretary concerned shall ensure that an honor guard 
        detail is provided in each case of the transportation 
        of remains under this section. The honor guard detail 
        shall be in addition to the escort provided for the 
        transportation of remains under section (d).
            (2) Composition.--An honor guard detail provided 
        under this section shall consist of sufficient members 
        of the Armed Forces to perform the duties specified in 
        paragraph (3). The members of the honor guard detail 
        shall be in uniform.
            (3) Duties.--Except to the extent that the person 
        designated to direct disposition of remains requests 
        that any of the following functions not be performed, 
        an honor guard detail under this section--
                    (A) shall--
                            (i) travel with the remains during 
                        transportation; or
                            (ii) meet the remains at the place 
                        to which transportation by air (or by 
                        rail or motor vehicle, if applicable) 
                        is made for the transfer of the 
                        remains;
                    (B) shall provide appropriate honors at the 
                arrival of the remains referred to in 
                subparagraph (A)(ii) (unless airline or other 
                security requirements do not permit such honors 
                to be provided); and
                    (C) shall participate in the transfer of 
                the remains from an aircraft, when airport and 
                airline security requirements permit, by 
                carrying out the remains with a flag draped 
                over the casket to a hearse or other form of 
                ground transportation for travel to a funeral 
                home or other place designated by the person 
                designated to direct disposition of such 
                remains.
    (f) Secretary Concerned Defined.--In this section, the term 
``Secretary concerned'' has the meaning given that term in 
section 101(a)(9) of title 10, United States Code.
    (g) Effective Date.--This section shall take effect at such 
time as may be prescribed by the Secretary of Defense, but not 
later than January 1, 2007.

SEC. 563. ANNUAL BUDGET DISPLAY OF FUNDS FOR POW/MIA ACTIVITIES OF 
                    DEPARTMENT OF DEFENSE.

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

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

    ``(a) Submission With Annual Budget Justification 
Documents.--The Secretary of Defense shall submit to Congress, 
as a part of the defense budget materials for a fiscal year, a 
consolidated budget justification display, in classified and 
unclassified form, that covers all programs and activities of 
Department of Defense POW/MIA accounting and recovery 
organizations.
    ``(b) Requirements for Budget Display.--The budget display 
under subsection (a) for a fiscal year shall include for each 
such organization the following:
            ``(1) A statement of what percentage of the 
        requirements originally requested by the organization 
        in the budget review process that the budget requests 
        funds for.
            ``(2) A summary of actual or estimated expenditures 
        by that organization for the fiscal year during which 
        the budget is submitted and for the fiscal year 
        preceding that year.
            ``(3) The amount in the budget for that 
        organization.
            ``(4) A detailed explanation of the shortfalls, if 
        any, in the funding of any requirement shown pursuant 
        to paragraph (1), when compared to the amount shown 
        pursuant to paragraph (3).
            ``(5) The budget estimate for that organization for 
        the five fiscal years after the fiscal year for which 
        the budget is submitted.
    ``(c) Department of Defense POW/MIA Accounting and Recovery 
Organizations.--In this section, the term `Department of 
Defense POW/MIA accounting and recovery organization' means any 
of the following (and any successor organization):
            ``(1) The Defense Prisoner of War/Missing Personnel 
        Office (DPMO).
            ``(2) The Joint POW/MIA Accounting Command (JPAC).
            ``(3) The Armed Forces DNA Identification 
        Laboratory (AFDIL).
            ``(4) The Life Sciences Equipment Laboratory (LSEL) 
        of the Air Force.
            ``(5) Any other element of the Department of 
        Defense the mission of which (as designated by the 
        Secretary of Defense) involves the accounting for and 
        recovery of members of the armed forces who are missing 
        in action or prisoners of war or who are unaccounted 
        for.
    ``(d) Other Definitions.--In this section:
            ``(1) The term `defense budget materials', with 
        respect to a fiscal year, means the materials submitted 
        to Congress by the Secretary of Defense in support of 
        the budget for that fiscal year.
            ``(2) The term `budget', with respect to a fiscal 
        year, means the budget for that fiscal year that is 
        submitted to Congress by the President under section 
        1105(a) of title 31.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

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

SEC. 564. MILITARY SEVERELY INJURED CENTER.

    (a) Center Required.--In support of the comprehensive 
policy on the provision of assistance to severely wounded or 
injured servicemembers required by section 563 of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-
163; 119 Stat. 3269; 10 U.S.C. 113 note), the Secretary of 
Defense shall establish within the Department of Defense a 
center to augment and support the programs and activities of 
the military departments for the provision of such assistance, 
including the programs of the military departments referred to 
in subsection (c).
    (b) Designation.--The center established under subsection 
(a) shall be known as the ``Military Severely Injured Center'' 
(in this section referred to as the ``Center'').
    (c) Programs of the Military Departments.--The programs of 
the military departments referred to in this subsection are the 
following:
            (1) The Army Wounded Warrior Support Program.
            (2) The Navy Safe Harbor Program.
            (3) The Palace HART Program of the Air Force.
            (4) The Marine for Life Injured Support Program of 
        the Marine Corps.
    (d) Activities of Center.--
            (1) In general.--The Center shall carry out such 
        programs and activities to augment and support the 
        programs and activities of the military departments for 
        the provision of assistance to severely wounded or 
        injured servicemembers and their families as the 
        Secretary of Defense, in consultation with the 
        Secretaries of the military departments and the heads 
        of other appropriate departments and agencies of the 
        Federal Government (including the Secretary of Labor 
        and the Secretary of Veterans Affairs), determines 
        appropriate.
            (2) Database.--The activities of the Center under 
        this subsection shall include the establishment and 
        maintenance of a central database. The database shall 
        be transparent and shall be accessible for use by all 
        of the programs of the military departments referred to 
        in subsection (c).
    (e) Resources.--The Secretary of Defense shall allocate to 
the Center such personnel and other resources as the Secretary 
of Defense, in consultation with the Secretaries of the 
military departments, considers appropriate in order to permit 
the Center to carry out effectively the programs and activities 
assigned to the Center under subsection (d).

SEC. 565. COMPREHENSIVE REVIEW ON PROCEDURES OF THE DEPARTMENT OF 
                    DEFENSE ON MORTUARY AFFAIRS.

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

SEC. 566. ADDITIONAL ELEMENTS OF POLICY ON CASUALTY ASSISTANCE TO 
                    SURVIVORS OF MILITARY DECEDENTS.

    Section 562(b) of the National Defense Authorization Act 
for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3267; 10 
U.S.C. 1475 note) is amended by adding at the end the following 
new paragraph:
            ``(12) The process by which the Department of 
        Defense, upon request, provides information (in person 
        and otherwise) to survivors of a military decedent on 
        the cause of, and any investigation into, the death of 
        such military decedent and on the disposition and 
        transportation of the remains of such decedent, which 
        process shall--
                    ``(A) provide for the provision of such 
                information (in person and otherwise) by 
                qualified Department of Defense personnel;
                    ``(B) ensure that information is provided 
                as soon as possible after death and that, when 
                requested, updates are provided, in accordance 
                with the procedures established under this 
                paragraph, in a timely manner when new 
                information becomes available;
                    ``(C) ensure that--
                            ``(i) the initial provision of such 
                        information, and each such update, 
                        relates the most complete and accurate 
                        information available at the time, 
                        subject to limitations applicable to 
                        classified information; and
                            ``(ii) incomplete or unverified 
                        information is identified as such 
                        during the course of the provision of 
                        such information or update; and
                    ``(D) include procedures by which such 
                survivors shall, upon request, receive updates 
                or supplemental information from qualified 
                Department of Defense personnel.''.

SEC. 567. REQUIREMENT FOR DEPLOYING MILITARY MEDICAL PERSONNEL TO BE 
                    TRAINED IN PRESERVATION OF REMAINS UNDER COMBAT OR 
                    COMBAT-RELATED CONDITIONS.

    (a) Requirement.--The Secretary of each military department 
shall ensure that each military health care professional under 
that Secretary's jurisdiction who is deployed to a theater of 
combat operations is trained, before such deployment, in the 
preservation of remains under combat or combat-related 
conditions.
    (b) Matters Covered by Training.--The training under 
subsection (a) shall include, at a minimum, the following:
            (1) Best practices and procedures for the 
        preservation of the remains of a member of the Armed 
        Forces after death, taking into account the conditions 
        likely to be encountered and the objective of returning 
        the remains to the member's family in the best possible 
        condition.
            (2) Practical case studies based on experience of 
        the Armed Forces in a variety of climactic conditions.
    (c) Covered Military Health Care Professionals.--In this 
section, the term ``military health care professional'' means--
            (1) a physician, nurse, nurse practitioner, 
        physician assistant, or combat medic; and
            (2) any other medical personnel with medical 
        specialties who may provide direct patient care and who 
        are designated by the Secretary of the military 
        department concerned.
    (d) Effective Date.--Subsection (a) shall apply with 
respect to any military health care professional who is 
deployed to a theater of combat operations after the end of the 
90-day period beginning on the date of the enactment of this 
Act.

     Subtitle H--Impact Aid and Defense Dependents Education System

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

    (a) Temporary Enrollment Authority.--Section 1404A of the 
Defense Dependents' Education Act of 1978 (20 U.S.C. 923a) is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``of the children'' and 
                inserting ``of--
    ``(1) the children'';
                    (B) by striking the period at the end and 
                inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(2) the children of a foreign military member 
        assigned to the Supreme Headquarters Allied Powers, 
        Europe, but only in a school of the defense dependents' 
        education system in Mons, Belgium, and only through the 
        2010-2011 school year.''; and
            (2) by adding at the end the following new 
        subsection:
    ``(c) Special Rules Regarding Enrollment of Dependents of 
Foreign Military Members Assigned to Supreme Headquarters 
Allied Powers, Europe.--(1) In the regulations required by 
subsection (a), the Secretary shall prescribe a methodology 
based on the estimated total number of dependents of sponsors 
under section 1414(2) enrolled in schools of the defense 
dependents' education system in Mons, Belgium, to determine the 
number of children described in paragraph (2) of subsection (a) 
who will be authorized to enroll under such subsection.
    ``(2) If the number of children described in paragraph (2) 
of subsection (a) who seek enrollment in schools of the defense 
dependents' education system in Mons, Belgium, exceeds the 
number authorized by the Secretary under paragraph (1), the 
Secretary may enroll the additional children on a space-
available, tuition-free basis notwithstanding section 
1404(d)(2).''.
    (b) Report on Long-Term Plan for Education of Dependents of 
Military Personnel Assigned to Shape.--Not later than 180 days 
after the date of the enactment of this Act, the Secretary of 
Defense shall submit to Congress a report evaluating 
alternatives for the education of dependents of United States 
military personnel and dependents of foreign military personnel 
assigned to Supreme Headquarters Allied Powers, Europe, 
including--
            (1) an evaluation of the feasibility of 
        establishing an international school at Supreme 
        Headquarters Allied Powers, Europe; and
            (2) an estimate of the timeframe necessary for 
        transition to any new model for educating such 
        dependents.

SEC. 572. CONTINUATION OF AUTHORITY TO ASSIST LOCAL EDUCATIONAL 
                    AGENCIES THAT BENEFIT DEPENDENTS OF MEMBERS OF THE 
                    ARMED FORCES AND DEPARTMENT OF DEFENSE CIVILIAN 
                    EMPLOYEES.

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

SEC. 573. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.

    Of the amount authorized to be appropriated pursuant to 
section 301(5) for operation and maintenance for Defense-wide 
activities, $5,000,000 shall be available for payments under 
section 363 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106-398; 114 Stat. 1654A-77; 20 U.S.C. 7703a).

SEC. 574. PLAN AND AUTHORITY TO ASSIST LOCAL EDUCATIONAL AGENCIES 
                    EXPERIENCING GROWTH IN ENROLLMENT DUE TO FORCE 
                    STRUCTURE CHANGES, RELOCATION OF MILITARY UNITS, OR 
                    BASE CLOSURES AND REALIGNMENTS.

    (a) Plan Required.--Not later than January 1, 2007, the 
Secretary of Defense shall submit to the congressional defense 
committees a report setting forth a plan to provide assistance 
to local educational agencies that experience growth in the 
enrollment of military dependent students as a result of any of 
the following events:
            (1) Force structure changes.
            (2) The relocation of a military unit.
            (3) The closure or realignment of military 
        installations pursuant to defense base closure and 
        realignment under the base closure laws.
    (b) Elements.--The report required by subsection (a), and 
each updated report required by subsection (c), shall include 
the following:
            (1) An identification, current as of the date of 
        the report, of the total number of military dependent 
        students who are anticipated to be arriving at or 
        departing from military installations as a result of 
        any event described in subsection (a), including--
                    (A) an identification of the military 
                installations affected by such arrivals and 
                departures;
                    (B) an estimate of the number of such 
                students arriving at or departing from each 
                such installation; and
                    (C) the anticipated schedule of such 
                arrivals and departures.
            (2) Such recommendations as the Office of Economic 
        Adjustment of the Department of Defense considers 
        appropriate for means of assisting affected local 
        educational agencies in accommodating increases in 
        enrollment of military dependent students as a result 
        of any such event.
            (3) A plan for outreach to be conducted to affected 
        local educational agencies, commanders of military 
        installations, and members of the Armed Forces and 
        civilian personnel of the Department of Defense 
        regarding information on the assistance to be provided 
        under the plan under subsection (a).
    (c) Updated Reports.--Not later than March 1, 2008, and 
annually thereafter to coincide with the submission of the 
budget of the President for a fiscal year under section 1105 of 
title 31, United States Code, the Secretary of Defense shall 
submit to the congressional defense committees an update of the 
report required by subsection (a).
    (d) Transition of Military Dependents From Department of 
Defense Dependent Schools to Other Schools.--During the period 
beginning on the date of the enactment of this Act and ending 
on September 30, 2011, the Secretary of Defense shall work 
collaboratively with the Secretary of Education in any efforts 
to ease the transition of military dependent students from 
attendance in Department of Defense dependent schools to 
attendance in schools of local educational agencies. The 
Secretary of Defense may use funds of the Department of Defense 
Education Activity to share expertise and experience of the 
Activity with local educational agencies as military dependent 
students make such transition, including such a transition 
resulting from the closure or realignment of military 
installations under a base closure law, global rebasing, and 
force restructuring.
    (e) Definitions.--In this section:
            (1) The term ``base closure law'' has the meaning 
        given that term in section 101 of title 10, United 
        States Code.
            (2) The term ``local educational agency'' has the 
        meaning given that term in section 8013(9) of the 
        Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7713(9)).
            (3) The term ``military dependent students'' refers 
        to--
                    (A) elementary and secondary school 
                students who are dependents of members of the 
                Armed Forces; and
                    (B) elementary and secondary school 
                students who are dependents of civilian 
                employees of the Department of Defense.

SEC. 575. PILOT PROGRAM ON PARENT EDUCATION TO PROMOTE EARLY CHILDHOOD 
                    EDUCATION FOR DEPENDENT CHILDREN AFFECTED BY 
                    MILITARY DEPLOYMENT OR RELOCATION OF MILITARY 
                    UNITS.

    (a) Pilot Program Authorized.--Using such funds as may be 
appropriated for this purpose, the Secretary of Defense may 
carry out a pilot program on the provision of educational and 
support tools to the parents of preschool-age children--
            (1) whose parent or parents serve as members of the 
        Armed Forces on active duty (including members of the 
        Selected Reserve on active duty pursuant to a call or 
        order to active duty of 180 days or more); and
            (2) who are affected by the deployment of their 
        parent or parents or the relocation of the military 
        unit of which their parent or parents are a member.
    (b) Purpose.--The purpose of the pilot program is to 
develop models for improving the capability of military child 
and youth programs on or near military installations to provide 
assistance to military parents with young children through a 
program of activities focusing on the unique needs of children 
described in subsection (a).
    (c) Limits on Commencement and Duration of Program.--The 
Secretary of Defense may not commence the pilot program before 
October 1, 2007, and shall conclude the pilot program not later 
than the end of the three-year period beginning on the date on 
which the Secretary commences the program.
    (d) Scope of Program.--Under the pilot program, the 
Secretary of Defense shall utilize one or more models, 
demonstrated through research, of universal access of parents 
of children described in subsection (a) to assistance under the 
pilot program to achieve the following goals:
            (1) The identification and mitigation of specific 
        risk factors for such children related to military 
        life.
            (2) The maximization of the educational readiness 
        of such children.
    (e) Locations and Goals.--
            (1) Selection of participating installations.--In 
        selecting military installations to participate in the 
        pilot program, the Secretary of Defense shall limit 
        selection to those military installations whose 
        military personnel are experiencing significant 
        transition or deployment or which are undergoing 
        transition as a result of the relocation or activation 
        of military units or activities relating to defense 
        base closure and realignment.
            (2) Selection of certain installations.--At least 
        one of the installations selected under paragraph (1) 
        shall be a military installation that will permit, 
        under the pilot program, the meaningful evaluation of a 
        model under subsection (d) that provides outreach to 
        parents in families with a parent who is a member of 
        the National Guard or Reserve, which families live more 
        than 40 miles from the installation.
            (3) Goals of participating installations.--If a 
        military installation is selected under paragraph (1), 
        the Secretary shall require appropriate personnel at 
        the military installation to develop goals, and 
        specific outcome measures with respect to such goals, 
        for the conduct of the pilot program at the 
        installation.
            (4) Evaluation required.--Upon completion of the 
        pilot program at a military installation, the personnel 
        referred to in paragraph (3) at the installation shall 
        be required to conduct an evaluation and assessment of 
        the success of the pilot program at the installation in 
        meeting the goals developed for that installation.
    (f) Guidelines.--As part of conducting the pilot program, 
the Secretary of Defense shall issue guidelines regarding--
            (1) the goals to be developed under subsection 
        (e)(3);
            (2) specific outcome measures; and
            (3) the selection of curriculum and the conduct of 
        developmental screening under the pilot program.
    (g) Report.--Upon completion of the pilot program, the 
Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives a report on all of the evaluations 
prepared under subsection (e)(4) for the military installations 
participating in the pilot program. The report shall describe 
the results of the evaluations, and may include such 
recommendations for legislative or administrative action as the 
Secretary considers appropriate in light of the evaluations, 
including recommendations for the continuation of the pilot 
program.

                Subtitle I--Armed Forces Retirement Home

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

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

SEC. 579. REPORT ON LOCAL BOARDS OF TRUSTEES OF THE ARMED FORCES 
                    RETIREMENT HOME.

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

                          Subtitle J--Reports

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

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

SEC. 582. REPORT ON FEASIBILITY OF ESTABLISHMENT OF MILITARY ENTRANCE 
                    PROCESSING COMMAND STATION ON GUAM.

    (a) Review.--The Secretary of Defense shall review the 
feasibility and cost effectiveness of establishing on Guam a 
station of the Military Entrance Processing Command to process 
new recruits for the Armed Forces who are drawn from the 
western Pacific region. For the purposes of the review, the 
cost effectiveness of establishing such a facility on Guam 
shall be measured, in part, against the system in effect in 
early 2006 of using Hawaii and other locations for the 
processing of new recruits from Guam and other locations in the 
western Pacific region.
    (b) Report.--Not later than June 1, 2007, the Secretary 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of 
Representatives a report providing the results of the study 
under subsection (a).

SEC. 583. INCLUSION IN ANNUAL DEPARTMENT OF DEFENSE REPORT ON SEXUAL 
                    ASSAULTS OF INFORMATION ON RESULTS OF DISCIPLINARY 
                    ACTIONS.

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

SEC. 584. REPORT ON PROVISION OF ELECTRONIC COPY OF MILITARY RECORDS ON 
                    DISCHARGE OR RELEASE OF MEMBERS FROM THE ARMED 
                    FORCES.

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

SEC. 585. REPORT ON OMISSION OF SOCIAL SECURITY ACCOUNT NUMBERS FROM 
                    MILITARY IDENTIFICATION CARDS.

    (a) Report Required.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to Congress a report setting forth the assessment 
of the Secretary of the feasibility of utilizing military 
identification cards that do not contain, display, or exhibit 
the social security account number of the individual identified 
by a military identification card.
    (b) Military Identification Card Defined.--In this section, 
the term ``military identification card'' means a card or other 
form of identification used for purposes of demonstrating 
eligibility for any benefit from the Department of Defense.

SEC. 586. REPORT ON MAINTENANCE AND PROTECTION OF DATA HELD BY THE 
                    SECRETARY OF DEFENSE AS PART OF THE DEPARTMENT OF 
                    DEFENSE JOINT ADVERTISING, MARKET RESEARCH AND 
                    STUDIES (JAMRS) PROGRAM.

    Not later than 120 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and House of 
Representatives a report on how the data, including social 
security account numbers, held by the Secretary as part of the 
Joint Advertising, Market Research and Studies (JAMRS) program 
of the Department of Defense are maintained and protected, 
including a description of the security measures in place to 
prevent unauthorized access or inadvertent disclosure of such 
data that could lead to identity theft.

SEC. 587. COMPTROLLER GENERAL REPORT ON MILITARY CONSCIENTIOUS 
                    OBJECTORS.

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

                       Subtitle K--Other Matters

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

    (a) Determination of Contributions to the Fund.--
            (1) Calculation of annual department of defense 
        contribution.--Subsection (b)(1) of section 1465 of 
        title 10, United States Code, is amended--
                    (A) in subparagraph (A)(ii), by striking 
                ``to members of'' and all that follows and 
                inserting ``for active duty (other than the 
                Coast Guard) and for full-time National Guard 
                duty (other than full-time National Guard duty 
                for training only), but excluding the amount 
                expected to be paid for any duty that would be 
                excluded for active-duty end strength purposes 
                by section 115(i) of this title.''; and
                    (B) in subparagraph (B)(ii)--
                            (i) by striking ``Ready Reserve'' 
                        and inserting ``Selected Reserve''; and
                            (ii) by striking ``Coast Guard and 
                        other than members on full-time 
                        National Guard duty other than for 
                        training) who are'' and inserting 
                        ``Coast Guard) for service''.
            (2) Quadrennial actuarial valuation.--Subsection 
        (c)(1) of such section is amended--
                    (A) in subparagraph (A), by striking ``for 
                members of the armed forces'' and all that 
                follows through ``for training only)'' and 
                inserting ``for active duty (other than the 
                Coast Guard) and for full-time National Guard 
                duty (other than full-time National Guard duty 
                for training only), but excluding the amount 
                expected to be paid for any duty that would be 
                excluded for active-duty end strength purposes 
                by section 115(i) of this title''; and
                    (B) in subparagraph (B)--
                            (i) by striking ``Ready Reserve'' 
                        and inserting ``Selected Reserve''; and
                            (ii) by striking ``Coast Guard and 
                        other than members on full-time 
                        National Guard duty other than for 
                        training) who are'' and inserting 
                        ``Coast Guard) for service''.
    (b) Payments Into the Fund.--Section 1466(a) of such title 
is amended--
            (1) in paragraph (1)(B), by striking ``by members'' 
        and all that follows and inserting ``for active duty 
        (other than the Coast Guard) and for full-time National 
        Guard duty (other than full-time National Guard duty 
        for training only), but excluding the amount expected 
        to be paid for any duty that would be excluded for 
        active-duty end strength purposes by section 115(i) of 
        this title''; and
            (2) in paragraph (2)(B)--
                    (A) by striking ``Ready Reserve'' and 
                inserting ``Selected Reserve''; and
                    (B) by striking ``Coast Guard and other 
                than members on full-time National Guard duty 
                other than for training) who are'' and 
                inserting ``Coast Guard) for service''.
    (c) Effective Date.--The amendments made by this section 
shall take effect on October 1, 2007.

SEC. 592. REVISION IN GOVERNMENT CONTRIBUTIONS TO MEDICARE-ELIGIBLE 
                    RETIREE HEALTH CARE FUND.

    (a) Medicare-Eligible Retiree Health Care Fund.--Section 
1111 of title 10, United States Code, is amended--
            (1) in subsection (a), by striking ``of the 
        Department of Defense'' and inserting ``of the 
        uniformed services'' ; and
            (2) in subsection (b), by adding at the end of the 
        following new paragraph:
            ``(5) The term `members of the uniformed services 
        on active duty' does not include a cadet at the United 
        States Military Academy, the United States Air Force 
        Academy, or the Coast Guard Academy or a midshipman at 
        the United States Naval Academy.''.
    (b) Determination of Contributions to the Fund.--Section 
1115 of such title is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)(B), by striking ``on 
                active duty'' and all that follows through 
                ``training only)'' and inserting the following: 
                ``on active duty and full-time National Guard 
                duty, but excluding any member who would be 
                excluded for active-duty end strength purposes 
                by section 115(i) of this title''; and
                    (B) in paragraph (2)(B)--
                            (i) by striking ``Ready Reserve'' 
                        and inserting ``Selected Reserve''; and
                            (ii) by striking ``(other than 
                        members on full-time National Guard 
                        duty other than for training)''; and
            (2) in subsection (c)--
                    (A) in paragraph (1)(A), by striking ``on 
                active duty'' and all that follows through 
                ``training only)'' and inserting the following: 
                ``on active duty and full-time National Guard 
                duty, but excluding any member who would be 
                excluded for active-duty end strength purposes 
                by section 115(i) of this title''; and
                    (B) in paragraph (1)(B)--
                            (i) by striking ``Ready Reserve'' 
                        and inserting ``Selected Reserve''; and
                            (ii) by striking ``(other than 
                        members on full-time National Guard 
                        duty other than for training)''.
    (c) Effective Date.--The amendments made by this section 
shall take effect with respect to payments under chapter 56 of 
title 10, United States Code, beginning with fiscal year 2008.

SEC. 593. DENTAL CORPS OF THE NAVY BUREAU OF MEDICINE AND SURGERY.

    (a) Deletion of References to Dental Division.--Section 
5138 of title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking the first sentence; and
                    (B) by striking ``the Dental Division'' and 
                inserting ``the Dental Corps'';
            (2) in subsection (b), by striking ``Dental 
        Division'' and inserting ``Dental Corps''; and
            (3) in subsection (c)--
                    (A) by striking ``Dental Division'' at the 
                end of the first sentence and inserting 
                ``Dental Corps''; and
                    (B) by striking ``that Division'' at the 
                end of the second sentence and inserting ``the 
                Chief of the Dental Corps''.
    (b) Functions of Chief of Dental Corps.--Subsection (d) of 
such section is amended to read as follows:
    ``(d) The Chief of the Dental Corps shall--
            ``(1) establish professional standards and policies 
        for dental practice;
            ``(2) initiate and recommend action pertaining to 
        complements, strength, appointments, advancement, 
        training assignment, and transfer of dental personnel; 
        and
            ``(3) serve as the advisor for the Bureau on all 
        matters relating directly to dentistry.''.
    (c) Further Clarifying Amendments.--Subsection (c) of such 
section is further amended--
            (1) by striking ``so'' after ``shall be''; and
            (2) by striking ``that all such functions will be'' 
        and inserting ``so that all such functions are''.
    (d) Clerical Amendments.--
            (1) The heading of such section is amended to read 
        as follows:

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

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

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

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

    Section 2261 of title 10, United States Code, is amended by 
striking subsection (d).

SEC. 595. PERSONS AUTHORIZED TO ADMINISTER ENLISTMENT AND APPOINTMENT 
                    OATHS.

    (a) Enlistment Oath.--Section 502 of title 10, United 
States Code, is amended--
            (1) by inserting ``(a) Enlistment Oath.--'' before 
        ``Each person enlisting'';
            (2) by striking the last sentence; and
            (3) by adding at the end the following new 
        subsection:
    ``(b) Who May Administer.--The oath may be taken before the 
President, the Vice-President, the Secretary of Defense, any 
commissioned officer, or any other person designated under 
regulations prescribed by the Secretary of Defense.''.
    (b) Oaths Generally.--Section 1031 of such title is amended 
by striking ``Any commissioned officer of any component of an 
armed force, whether or not on active duty, may administer any 
oath'' and inserting ``The President, the Vice-President, the 
Secretary of Defense, any commissioned officer, and any other 
person designated under regulations prescribed by the Secretary 
of Defense may administer any oath''.

SEC. 596. MILITARY VOTING MATTERS.

    (a) Repeal of Requirement for Periodic Inspector General 
Installation Visits for Assessment of Voting Assistance Program 
Compliance.--Section 1566 of title 10, United States Code, is 
amended by striking subsection (d).
    (b) Use of Electronic Voting Technology.--
            (1) Continuation of interim voting assistance 
        system.--The Secretary of Defense shall continue the 
        Interim Voting Assistance System (IVAS) ballot request 
        program with respect to all absent uniformed services 
        voters (as defined under section 107(1) of the 
        Uniformed and Overseas Citizens Absentee Voting Act (42 
        U.S.C. 1973ff-6(1))) and overseas employees of the 
        Department of Defense for the general election and all 
        elections through December 31, 2006.
            (2) Reports.--
                    (A) In general.--Not later than 30 days 
                after the date of the regularly scheduled 
                general election for Federal office for 
                November 2006, the Secretary of Defense shall 
                submit to the Congress a report setting forth--
                            (i) an assessment of the success of 
                        the implementation of the Interim 
                        Voting Assistance System ballot request 
                        program carried out under paragraph 
                        (1);
                            (ii) recommendations for 
                        continuation of the Interim Voting 
                        Assistance System and for improvements 
                        to that system; and
                            (iii) an assessment of available 
                        technologies and other means of 
                        achieving enhanced use of electronic 
                        and Internet-based capabilities under 
                        the Interim Voting Assistance System.
                    (B) Future elections.--Not later than May 
                15, 2007, the Secretary of Defense shall submit 
                to the Congress a report setting forth in 
                detail plans for expanding the use of 
                electronic voting technology for individuals 
                covered under the Uniformed and Overseas 
                Citizens Absentee Voting Act (42 U.S.C. 1973ff 
                et seq.) for elections through November 30, 
                2010.
    (c) Comptroller General Report.--Not later than March 1, 
2007, the Comptroller General of the United States shall submit 
to Congress a report containing the assessment of the 
Comptroller General with respect to the following:
            (1) The programs and activities undertaken by the 
        Department of Defense to facilitate voter registration, 
        transmittal of ballots to absentee voters, and voting 
        utilizing electronic means of communication (such as 
        electronic mail and fax transmission) for military and 
        civilian personnel covered by the Uniformed and 
        Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff 
        et seq.).
            (2) The progress of the Department of Defense and 
        the Election Assistance Commission in developing a 
        secure, deployable system for Internet-based electronic 
        voting pursuant to the amendment made by section 567 of 
        the Ronald W. Reagan National Defense Authorization Act 
        for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 
        1919).
    (d) Repeal of Expired Provision.--Section 1566(g)(2) of 
title 10, United States Code, is amended by striking the last 
sentence.

SEC. 597. PHYSICAL EVALUATION BOARDS.

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

``Sec. 1222. Physical evaluation boards

    ``(a) Response to Applications and Appeals.--The Secretary 
of each military department shall ensure, in the case of any 
member of the armed forces appearing before a physical 
evaluation board under that Secretary's supervision, that 
documents announcing a decision of the board in the case convey 
the findings and conclusions of the board in an orderly and 
itemized fashion with specific attention to each issue 
presented by the member in regard to that member's case. The 
requirement under the preceding sentence applies to a case both 
during initial consideration and upon subsequent consideration 
due to appeal by the member or other circumstance.
    ``(b) Liaison Officer (PEBLO) Requirements and Training.--
(1) The Secretary of Defense shall prescribe regulations 
establishing--
            ``(A) a requirement for the Secretary of each 
        military department to make available to members of the 
        armed forces appearing before physical evaluation 
        boards operated by that Secretary employees, designated 
        as physical evaluation board liaison officers, to 
        provide advice, counsel, and general information to 
        such members on the operation of physical evaluation 
        boards operated by that Secretary; and
            ``(B) standards and guidelines concerning the 
        training of such physical evaluation board liaison 
        officers.
    ``(2) The Secretary shall ensure compliance by the 
Secretary of each military department with physical evaluation 
board liaison officer requirements and training standards and 
guidelines at least once every three years.
    ``(c) Standardized Staff Training and Operations.--(1) The 
Secretary of Defense shall prescribe regulations on standards 
and guidelines concerning the physical evaluation board 
operated by each of the Secretaries of the military departments 
with regard to--
            ``(A) assignment and training of staff;
            ``(B) operating procedures; and
            ``(C) timeliness of board decisions.
    ``(2) The Secretary shall ensure compliance with standards 
and guidelines prescribed under paragraph (1) by each physical 
evaluation board at least once every three years.''.
            (2) Clerical amendment.--The table of sections at 
        the beginning of such chapter is amended by adding at 
        the end the following new item:

``1222.  Physical evaluation boards.''.

    (b) Effective Date.--Section 1222 of title 10, United 
States Code, as added by subsection (a), shall apply with 
respect to decisions rendered on cases commenced more than 120 
days after the date of the enactment of this Act.

SEC. 598. MILITARY ID CARDS FOR RETIREE DEPENDENTS WHO ARE PERMANENTLY 
                    DISABLED.

    (a) In General.--Subsection (a) of section 1060b of title 
10, United States Code, is amended to read as follows:
    ``(a) Issuance of Permanent ID Card.--(1) In issuing 
military ID cards to retiree dependents, the Secretary 
concerned shall issue a permanent ID card (not subject to 
renewal) to any such retiree dependent as follows:
            ``(A) A retiree dependent who has attained 75 years 
        of age.
            ``(B) A retiree dependent who is permanently 
        disabled.
    ``(2) A permanent ID card shall be issued to a retiree 
dependent under paragraph (1)(A) upon the expiration, after the 
retiree dependent attains 75 years of age, of any earlier, 
renewable military card or, if earlier, upon the request of the 
retiree dependent after attaining age 75.''.
    (b) Conforming and Clerical Amendments.--
            (1) Heading amendment.--The heading of such section 
        is amended to read as follows:

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

            (2) Clerical amendment.--The table of sections at 
        the beginning of chapter 53 of such title is amended by 
        striking the item relating to section 1060b and 
        inserting the following new item:

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

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

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

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

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

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

            Subtitle C--Travel and Transportation Allowances

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

              Subtitle D--Retired Pay and Survivor Benefits

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

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

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

                        Subtitle F--Other Matters

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

                     Subtitle A--Pay and Allowances

SEC. 601. FISCAL YEAR 2007 INCREASE IN MILITARY BASIC PAY AND REFORM OF 
                    BASIC PAY RATES.

    (a) Waiver of Section 1009 Adjustment.--The adjustment to 
become effective during fiscal year 2007 required by section 
1009 of title 37, United States Code, in the rates of monthly 
basic pay authorized members of the uniformed services shall 
not be made.
    (b) January 1, 2007, Increase in Basic Pay.--Effective on 
January 1, 2007, the rates of monthly basic pay for members of 
the uniformed services are increased by 2.2 percent.
    (c) Reform of Basic Pay Rates.--Effective on April 1, 2007, 
the rates of monthly basic pay for members of the uniformed 
services within each pay grade (and with years of service 
computed under section 205 of title 37, United States Code) are 
as follows:


                                             COMMISSIONED OFFICERS 1
----------------------------------------------------------------------------------------------------------------
                 Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
----------------------------------------------------------------------------------------------------------------
O-8                                             8,453.10      8,729.70      8,913.60      8,964.90      9,194.10
O-7                                             7,023.90      7,350.00      7,501.20      7,621.20      7,838.40
O-6                                             5,206.20      5,719.20      6,094.50      6,094.50      6,117.60
O-5                                             4,339.80      4,888.80      5,227.50      5,291.10      5,502.00
O-4                                             3,744.60      4,334.70      4,623.90      4,688.40      4,956.90
O-3 3                                           3,292.20      3,732.30      4,028.40      4,392.00      4,602.00
O-2 3                                           2,844.30      3,239.70      3,731.40      3,857.40      3,936.60
O-1 3                                           2,469.30      2,569.80      3,106.50      3,106.50      3,106.50
                                           ---------------------------------------------------------------------
                                               Over 8        Over 10       Over 12       Over 14       Over 16
                                           ---------------------------------------------------------------------
O-8                                             9,577.20      9,666.30     10,030.20     10,134.30     10,447.80
O-7                                             8,052.90      8,301.30      8,548.80      8,797.20      9,577.20
O-6                                             6,380.10      6,414.60      6,414.60      6,779.10      7,423.80
O-5                                             5,628.60      5,906.40      6,110.10      6,373.20      6,776.40
O-4                                             5,244.60      5,602.80      5,882.40      6,076.20      6,187.50
O-3 3                                           4,833.00      4,982.70      5,228.40      5,355.90      5,355.90
O-2 3                                           3,936.60      3,936.60      3,936.60      3,936.60      3,936.60
O-1 3                                           3,106.50      3,106.50      3,106.50      3,106.50      3,106.50
                                           ---------------------------------------------------------------------
                                               Over 18       Over 20       Over 22       Over 24       Over 26
                                           ---------------------------------------------------------------------
O-10 2                                             $0.00    $13,659.00    $13,725.90    $14,011.20    $14,508.60
O-9                                                 0.00     11,946.60     12,118.50     12,367.20     12,801.30
O-8                                            10,900.80     11,319.00     11,598.30     11,598.30     11,598.30
O-7                                            10,236.00     10,236.00     10,236.00     10,236.00     10,287.90
O-6                                             7,802.10      8,180.10      8,395.20      8,613.00      9,035.70
O-5                                             6,968.10      7,158.00      7,373.10      7,373.10      7,373.10
O-4                                             6,252.30      6,252.30      6,252.30      6,252.30      6,252.30
O-3 3                                           5,355.90      5,355.90      5,355.90      5,355.90      5,355.90
O-2 3                                           3,936.60      3,936.60      3,936.60      3,936.60      3,936.60
O-1 3                                           3,106.50      3,106.50      3,106.50      3,106.50      3,106.50
                                           ---------------------------------------------------------------------
                                               Over 28       Over 30       Over 32       Over 34       Over 36
                                           ---------------------------------------------------------------------
O-10 2                                        $14,508.60    $15,234.00    $15,234.00    $15,995.70    $15,995.70
O-9                                            12,801.30     13,441.50     13,441.50     14,113.50     14,113.50
O-8                                            11,598.30     11,888.40     11,888.40     12,185.70     12,185.70
O-7                                            10,287.90     10,493.70     10,493.70     10,493.70     10,493.70
O-6                                             9,035.70      9,216.30      9,216.30      9,216.30      9,216.30
O-5                                             7,373.10      7,373.10      7,373.10      7,373.10      7,373.10
O-4                                             6,252.30      6,252.30      6,252.30      6,252.30      6,252.30
O-3 3                                           5,355.90      5,355.90      5,355.90      5,355.90      5,355.90
O-2 3                                           3,936.60      3,936.60      3,936.60      3,936.60      3,936.60
O-1 3                                           3,106.50      3,106.50      3,106.50      3,106.50      3,106.50
                                           ---------------------------------------------------------------------
                                               Over 38       Over 40
                                           ---------------------------------------------------------------------
O-10 2                                        $16,795.50    $16,795.50
O-9                                            14,819.10     14,819.10
O-8                                            12,185.70     12,185.70
O-7                                            10,493.70     10,493.70
O-6                                             9,216.30      9,216.30
O-5                                             7,373.10      7,373.10
O-4                                             6,252.30      6,252.30
O-3 3                                           5,355.90      5,355.90
O-2 3                                           3,936.60      3,936.60
O-1 3                                           3,106.50      3,106.50
----------------------------------------------------------------------------------------------------------------
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for commissioned
  oficers in pay grades 0-7 through 0-10 may not exceed the rate of pay for level II of the Executive Schedule
  and the actual rate of basic pay for all other officers may not exceed the rate of pay for level V of the
  Executive Schedule.
2 Subject to the preceding footnote, while serving as Chairman or Vice Chairman of the Joint Chiefs of Staff,
  Chief of Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air Force, Commandant of the
  Marine Corps, Commandant of the Coast Guard, or commander of a unified or specified combatant command (as
  defined in section 161(c) of title 10, United States Code), basic pay for this grade is $17,972.10, regardless
  of cumulative years of service computed under section 205 of title 37, United States Code.
3 This table does not apply to commissioned officers in pay grade O-1, O-2, or O-3 who have been credited with
  over 4 years of active duty service as an enlisted member or warrant officer.



     COMMISSIONED OFFICERS WITH OVER  YEARS OF ACTIVE DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER
----------------------------------------------------------------------------------------------------------------
                 Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
----------------------------------------------------------------------------------------------------------------
O-3E                                               $0.00         $0.00         $0.00     $4,392.00     $4,602.00
O-2E                                                0.00          0.00          0.00      3,857.40      3,936.60
O-1E                                                0.00          0.00          0.00      3,106.50      3,317.70
                                           ---------------------------------------------------------------------
                                               Over 8        Over 10       Over 12       Over 14       Over 16
                                           ---------------------------------------------------------------------
O-3E                                           $4,833.00     $4,982.70     $5,228.40     $5,435.40     $5,554.20
O-2E                                            4,062.00      4,273.50     4,437.00.      4,558.80      4,558.80
O-1E                                            3,440.10      3,565.50      3,688.80      3,857.40      3,857.40
                                           ---------------------------------------------------------------------
                                               Over 18       Over 20       Over 22       Over 24       Over 26
                                           ---------------------------------------------------------------------
O-3E                                           $5,715.90     $5,715.90     $5,715.90     $5,715.90     $5,715.90
O-2E                                            4,558.80      4,558.80      4,558.80      4,558.80      4,558.80
O-1E                                            3,857.40      3,857.40      3,857.40      3,857.40      3,857.40
                                           ---------------------------------------------------------------------
                                               Over 28       Over 30       Over 32       Over 34       Over 36
                                           ---------------------------------------------------------------------
O-3E                                           $5,715.90     $5,715.90     $5,715.90     $5,715.90     $5,715.90
O-2E                                            4,558.80      4,558.80      4,558.80      4,558.80      4,558.80
O-1E                                            3,857.40      3,857.40      3,857.40      3,857.40      3,857.40
                                           ---------------------------------------------------------------------
                                               Over 38       Over 40
                                           ---------------------------------------------------------------------
O-3E                                           $5,715.90     $5,715.90
O-2E                                            4,558.80      4,558.80
O-1E                                            3,857.40      3,857.40
----------------------------------------------------------------------------------------------------------------



                                               WARRANT OFFICERS 1
----------------------------------------------------------------------------------------------------------------
                 Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
----------------------------------------------------------------------------------------------------------------
W-5                                                $0.00         $0.00         $0.00         $0.00         $0.00
W-4                                             3,402.00      3,660.00      3,765.00      3,868.50      4,046.40
W-3                                             3,106.80      3,236.40      3,369.00      3,412.80      3,552.00
W-2                                             2,749.20      3,009.30      3,089.40      3,144.60      3,322.80
W-1                                             2,413.20      2,672.40      2,742.90      2,890.50      3,065.10
                                           ---------------------------------------------------------------------
                                               Over 8        Over 10       Over 12       Over 14       Over 16
                                           ---------------------------------------------------------------------
W-5                                                $0.00         $0.00         $0.00         $0.00         $0.00
W-4                                             4,222.20      4,400.70      4,669.20      4,904.40      5,128.20
W-3                                             3,825.90      4,110.90      4,245.30      4,400.40      4,560.30
W-2                                             3,600.00      3,737.10      3,872.40      4,037.70      4,166.70
W-1                                             3,322.20      3,442.20      3,610.20      3,775.50      3,905.10
                                           ---------------------------------------------------------------------
                                               Over 18       Over 20       Over 22       Over 24       Over 26
                                           ---------------------------------------------------------------------
W-5                                                $0.00     $6,049.50     $6,356.40     $6,585.00     $6,838.20
W-4                                             5,310.90      5,489.70      5,752.20      5,967.60      6,213.60
W-3                                             4,847.70      5,042.40      5,158.50      5,282.10      5,450.10
W-2                                             4,284.00      4,423.80      4,515.90      4,589.40      4,589.40
W-1                                             4,024.50      4,170.00      4,170.00      4,170.00      4,170.00
                                           ---------------------------------------------------------------------
                                               Over 28       Over 30       Over 32       Over 34       Over 36
                                           ---------------------------------------------------------------------
W-5                                            $6,838.20     $7,180.20     $7,180.20     $7,539.30     $7,539.30
W-4                                             6,213.60      6,337.80      6,337.80      6,337.80      6,337.80
W-3                                             5,450.10      5,450.10      5,450.10      5,450.10      5,450.10
W-2                                             4,589.40      4,589.40      4,589.40      4,589.40      4,589.40
W-1                                             4,170.00      4,170.00      4,170.00      4,170.00      4,170.00
                                           ---------------------------------------------------------------------
                                               Over 38       Over 40
                                           ---------------------------------------------------------------------
W-5                                            $7,916.40     $7,916.40
W-4                                             6,337.80      6,337.80
W-3                                             5,450.10      5,450.10
W-2                                             4,589.40      4,589.40
W-1                                             4,170.00      4,170.00
----------------------------------------------------------------------------------------------------------------
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for warrant officers
  may not exceed the rate of pay for level V of the Executive Schedule.



                                               ENLISTED MEMBERS 1
----------------------------------------------------------------------------------------------------------------
                 Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
----------------------------------------------------------------------------------------------------------------
E-9 2                                              $0.00         $0.00         $0.00         $0.00         $0.00
E-8                                                 0.00          0.00          0.00          0.00          0.00
E-7                                             2,339.10      2,553.00      2,650.80      2,780.70      2,881.50
E-6                                             2,023.20      2,226.00      2,324.40      2,419.80      2,519.40
E-5                                             1,854.00      1,977.90      2,073.30      2,171.40      2,323.80
E-4                                             1,699.50      1,786.50      1,883.10      1,978.50      2,062.80
E-3                                             1,534.20      1,630.80      1,729.20      1,729.20      1,729.20
E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
E-1 3                                           1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
                                           ---------------------------------------------------------------------
                                               Over 8        Over 10       Over 12       Over 14       Over 16
                                           ---------------------------------------------------------------------
E-9 2                                              $0.00     $4,110.60     $4,203.90     $4,321.20     $4,459.50
E-8                                             3,364.80      3,513.90      3,606.00      3,716.40      3,835.80
E-7                                             3,055.20      3,152.70      3,326.70      3,471.00      3,569.70
E-6                                             2,744.10      2,831.40      3,000.00      3,051.90      3,089.70
E-5                                             2,483.70      2,613.90      2,630.10      2,630.10      2,630.10
E-4                                             2,062.80      2,062.80      2,062.80      2,062.80      2,062.80
E-3                                             1,729.20      1,729.20      1,729.20      1,729.20      1,729.20
E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
E-1 3                                           1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
                                           ---------------------------------------------------------------------
                                               Over 18       Over 20       Over 22       Over 24       Over 26
                                           ---------------------------------------------------------------------
E-9 2                                          $4,598.40     $4,821.60     $5,010.30     $5,209.20     $5,512.80
E-8                                             4,051.80      4,161.30      4,347.30      4,450.50      4,704.90
E-7                                             3,674.40      3,715.50      3,852.00      3,925.20      4,204.20
E-6                                             3,133.50      3,133.50      3,133.50      3,133.50      3,133.50
E-5                                             2,630.10      2,630.10      2,630.10      2,630.10      2,630.10
E-4                                             2,062.80      2,062.80      2,062.80      2,062.80      2,062.80
E-3                                             1,729.20      1,729.20      1,729.20      1,729.20      1,729.20
E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
E-1 3                                           1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
                                           ---------------------------------------------------------------------
                                               Over 28       Over 30       Over 32       Over 34       Over 36
                                           ---------------------------------------------------------------------
E-9 2                                          $5,512.80     $5,788.50     $5,788.50     $6,078.00     $6,078.00
E-8                                             4,704.90      4,799.10      4,799.10      4,799.10      4,799.10
E-7                                             4,204.20      4,204.20      4,204.20      4,204.20      4,204.20
E-6                                             3,133.50      3,133.50      3,133.50      3,133.50      3,133.50
E-5                                             2,630.10      2,630.10      2,630.10      2,630.10      2,630.10
E-4                                             2,062.80      2,062.80      2,062.80      2,062.80      2,062.80
E-3                                             1,729.20      1,729.20      1,729.20      1,729.20      1,729.20
E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
E-1                                             1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
                                           ---------------------------------------------------------------------
                                               Over 38       Over 40
                                           ---------------------------------------------------------------------
E-9 2                                          $6,381.90     $6,381.90
E-8                                             4,799.10      4,799.10
E-7                                             4,204.20      4,204.20
E-6                                             3,133.50      3,133.50
E-5                                             2,630.10      2,630.10
E-4                                             2,062.80      2,062.80
E-3                                             1,729.20      1,729.20
E-2                                             1,458.90      1,458.90
E-1                                             1,301.40      1,301.40
----------------------------------------------------------------------------------------------------------------
1 Notwithstanding the pay rates specified in this table, the actual basic pay for enlisted members may not
  exceed the rate of pay for level V of the Executive Schedule.
2 Subject to the preceding footnote, the rate of basic pay for an enlisted member in this grade while serving as
  Sergeant Major of the Army, Master Chief Petty Officer of the Navy, Chief Master Sergeant of the Air Force,
  Sergeant Major of the Marine Corps, Master Chief Petty Officer of the Coast Guard, or Senior Enlisted Advisor
  to the Chairman of the Joint Chiefs of Staff is $6,642.60, regardless of cumulative years of service computed
  under section 205 of title 37, United States Code.
3 In the case of members in pay grade E-1 who have served less than 4 months on active duty, the rate of basic
  pay is $1,203.90.

SEC. 602. INCREASE IN MAXIMUM RATE OF BASIC PAY FOR GENERAL AND FLAG 
                    OFFICER GRADES TO CONFORM TO INCREASE IN PAY CAP 
                    FOR SENIOR EXECUTIVE SERVICE PERSONNEL.

    (a) Increase.--Section 203(a)(2) of title 37, United States 
Code, is amended by striking ``level III of the Executive 
Schedule'' and inserting ``level II of the Executive 
Schedule''.
    (b) Effective Date.--The amendment made by subsection (a) 
shall take effect on January 1, 2007, and shall apply with 
respect to months beginning on or after that date.

SEC. 603. ONE-YEAR EXTENSION OF PROHIBITION AGAINST REQUIRING CERTAIN 
                    INJURED MEMBERS TO PAY FOR MEALS PROVIDED BY 
                    MILITARY TREATMENT FACILITIES.

    (a) Extension.--Section 402(h)(3) of title 37, United 
States Code, is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.
    (b) Report on Administration of Prohibition.--Not later 
than February 1, 2007, the Secretary of Defense shall submit to 
the congressional defense committees a report on the 
administration of section 402(h) of title 37, United States 
Code. The report shall include--
            (1) a description and assessment of the mechanisms 
        used by the military departments to implement the 
        prohibition contained in such section; and
            (2) such recommendations as the Secretary considers 
        appropriate regarding making such prohibition 
        permanent.

SEC. 604. AVAILABILITY OF SECOND BASIC ALLOWANCE FOR HOUSING FOR 
                    CERTAIN RESERVE COMPONENT OR RETIRED MEMBERS 
                    SERVING IN SUPPORT OF CONTINGENCY OPERATIONS.

    (a) Availability.--Section 403(g) of title 37, United 
States Code, is amended--
            (1) by redesignating paragraphs (2), (3), and (4) 
        as paragraphs (3), (4), and (5), respectively;
            (2) by inserting after paragraph (1) the following 
        new paragraph (2):
    ``(2) The Secretary concerned may provide a basic allowance 
for housing to a member described in paragraph (1) at a monthly 
rate equal to the rate of the basic allowance for housing 
established under subsection (b) or the overseas basic 
allowance for housing established under subsection (c), 
whichever applies to the location at which the member is 
serving, for members in the same grade at that location without 
dependents. The member may receive both a basic allowance for 
housing under paragraph (1) and under this paragraph for the 
same month, but may not receive the portion of the allowance 
authorized under section 404 of this title, if any, for lodging 
expenses if a basic allowance for housing is provided under 
this paragraph.''; and
            (3) in paragraph (3), as so redesignated, by 
        striking ``Paragraph (1)'' and inserting ``Paragraphs 
        (1) and (2)''.
    (b) Effective Date.--Paragraph (2) of section 403(g) of 
title 37, United States Code, as added by subsection (a), shall 
apply with respect to months beginning on or after October 1, 
2006.

SEC. 605. EXTENSION OF TEMPORARY CONTINUATION OF HOUSING ALLOWANCE FOR 
                    DEPENDENTS OF MEMBERS DYING ON ACTIVE DUTY TO 
                    SPOUSES WHO ARE ALSO MEMBERS.

    (a) Extension.--Section 403(l) of title 37, United States 
Code, is amended--
            (1) by redesignating paragraph (3) as paragraph 
        (4); and
            (2) by inserting after paragraph (2) the following 
        new paragraph:
    ``(3) An allowance may be paid under paragraph (2) to the 
spouse of the deceased member even though the spouse is also a 
member of the uniformed services. The allowance paid under such 
paragraph is in addition to any other pay and allowances to 
which the spouse is entitled as a member.''.
    (b) Effective Date.--
            (1) General rule.--The amendments made by 
        subsection (a) shall take effect on October 1, 2006.
            (2) Transitional rule.--After October 1, 2006, the 
        Secretary of Defense, and the Secretary of Homeland 
        Security in the case of the Coast Guard, may pay the 
        allowance authorized by section 403(l)(2) of title 37, 
        United States Code, to a member of the uniformed 
        services who is the spouse of a member who died on 
        active duty during the one-year period ending on that 
        date, except that the payment of the allowance must 
        terminate within 365 days after the date of the 
        member's death.

SEC. 606. PAYMENT OF FULL PREMIUM FOR COVERAGE UNDER SERVICEMEMBERS' 
                    GROUP LIFE INSURANCE PROGRAM DURING SERVICE IN 
                    OPERATION ENDURING FREEDOM OR OPERATION IRAQI 
                    FREEDOM.

    (a) Enhanced Allowance To Cover SGLI Deductions.--
Subsection (a)(1) of section 437 of title 37, United States 
Code, is amended by striking ``for the first $150,000'' and all 
that follows through ``of such title'' and inserting ``for the 
amount of Servicemembers' Group Life Insurance coverage held by 
the member under section 1967 of such title''.
    (b) Conforming Amendments.--Such section is further 
amended--
            (1) in subsection (a)--
                    (A) by striking ``(1)'' before ``in the 
                case of''; and
                    (B) by striking paragraph (2);
            (2) by striking subsection (b); and
            (3) by redesignating subsection (c) as subsection 
        (b) and in paragraph (2) of that subsection by striking 
        ``coverage amount specified in subsection (a)(1) or in 
        effect pursuant to subsection (b),'' and inserting 
        ``maximum coverage amount available for such 
        insurance,''.
    (c) Clerical Amendments.--The heading for such section, and 
the item relating to such section in the table of sections at 
the beginning of chapter 7 of such title, are each amended by 
striking the fourth and fifth words.
    (d) Effective Date.--The amendments made by this section 
shall take effect on the first day of the first month beginning 
on or after the date of the enactment of this Act and shall 
apply with respect to service by members of the Armed Forces in 
the theater of operations for Operation Enduring Freedom or 
Operation Iraqi Freedom for months beginning on or after that 
date.

SEC. 607. CLARIFICATION OF EFFECTIVE DATE OF PROHIBITION ON 
                    COMPENSATION FOR CORRESPONDENCE COURSES.

    Section 206(d) of title 37, United States Code, is amended 
by adding at the end the following new paragraph:
    ``(3) The prohibition in paragraph (1), including the 
prohibition as it relates to a member of the National Guard 
while not in Federal service, applies to--
            ``(A) any work or study performed on or after 
        September 7, 1962, unless that work or study is 
        specifically covered by the exception in paragraph (2); 
        and
            ``(B) any claim based on that work or study arising 
        after that date.''.

SEC. 608. EXTENSION OF PILOT PROGRAM ON CONTRIBUTIONS TO THRIFT SAVINGS 
                    PLAN FOR INITIAL ENLISTEES IN THE ARMY.

    (a) Extension.--Subsection (a) of section 606 of the 
National Defense Authorization Act for Fiscal Year 2006 (Public 
Law 109-163; 119 Stat. 3287; 37 U.S.C. 211 note) is amended by 
striking ``During fiscal year 2006'' and inserting ``During the 
period beginning on January 6, 2006, and ending on December 31, 
2008''.
    (b) Report Date.--Subsection (d)(1) of such section is 
amended by striking ``February 1, 2007'' and inserting 
``February 1, 2008''.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. EXTENSION OF CERTAIN BONUS AND SPECIAL PAY AUTHORITIES FOR 
                    RESERVE FORCES.

    (a) Selected Reserve Reenlistment Bonus.--Section 308b(g) 
of title 37, United States Code, is amended by striking 
``December 31, 2006'' and inserting ``December 31, 2007''.
    (b) Selected Reserve Affiliation or Enlistment Bonus.--
Section 308c(i) of such title is amended by striking ``December 
31, 2006'' and inserting ``December 31, 2007''.
    (c) Special Pay for Enlisted Members Assigned to Certain 
High Priority Units.--Section 308d(c) of such title is amended 
by striking ``December 31, 2006'' and inserting ``December 31, 
2007''.
    (d) Ready Reserve Enlistment Bonus for Persons Without 
Prior Service.--Section 308g(f)(2) of such title is amended by 
striking ``December 31, 2006'' and inserting ``December 31, 
2007''.
    (e) Ready Reserve Enlistment and Reenlistment Bonus for 
Persons With Prior Service.--Section 308h(e) of such title is 
amended by striking ``December 31, 2006'' and inserting 
``December 31, 2007''.
    (f) Selected Reserve Enlistment Bonus for Persons With 
Prior Service.--Section 308i(f) of such title is amended by 
striking ``December 31, 2006'' and inserting ``December 31, 
2007''.

SEC. 612. EXTENSION OF CERTAIN BONUS AND SPECIAL PAY AUTHORITIES FOR 
                    HEALTH CARE PROFESSIONALS.

    (a) Nurse Officer Candidate Accession Program.--Section 
2130a(a)(1) of title 10, United States Code, is amended by 
striking ``December 31, 2006'' and inserting ``December 31, 
2007''.
    (b) Repayment of Education Loans for Certain Health 
Professionals Who Serve in the Selected Reserve.--Section 
16302(d) of such title is amended by striking ``January 1, 
2007'' and inserting ``January 1, 2008''.
    (c) Accession Bonus for Registered Nurses.--Section 
302d(a)(1) of title 37, United States Code, is amended by 
striking ``December 31, 2006'' and inserting ``December 31, 
2007''.
    (d) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of such title is amended by striking ``December 31, 
2006'' and inserting ``December 31, 2007''.
    (e) Special Pay for Selected Reserve Health Professionals 
in Critically Short Wartime Specialties.--Section 302g(e) of 
such title is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.
    (f) Accession Bonus for Dental Officers.--Section 
302h(a)(1) of such title is amended by striking ``December 31, 
2006'' and inserting ``December 31, 2007''.
    (g) Accession Bonus for Pharmacy Officers.--Section 302j(a) 
of such title is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.

SEC. 613. EXTENSION OF SPECIAL PAY AND BONUS AUTHORITIES FOR NUCLEAR 
                    OFFICERS.

    (a) Special Pay for Nuclear-Qualified Officers Extending 
Period of Active Service.--Section 312(e) of title 37, United 
States Code, is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.
    (b) Nuclear Career Accession Bonus.--Section 312b(c) of 
such title is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.
    (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) 
of such title is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.

SEC. 614. EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF OTHER BONUSES 
                    AND SPECIAL PAYS.

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of 
title 37, United States Code, is amended by striking ``December 
31, 2006'' and inserting ``December 31, 2007''.
    (b) Assignment Incentive Pay.--Section 307a(g) of such 
title is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2008''.
    (c) Reenlistment Bonus for Active Members.--Section 308(g) 
of such title is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.
    (d) Enlistment Bonus.--Section 309(e) of such title is 
amended by striking ``December 31, 2006'' and inserting 
``December 31, 2007''.
    (e) Retention Bonus for Members With Critical Military 
Skills or Assigned to High Priority Units.--Section 323(i) of 
such title is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.
    (f) Accession Bonus for New Officers in Critical Skills.--
Section 324(g) of such title is amended by striking ``December 
31, 2006'' and inserting ``December 31, 2007''.
    (g) Incentive Bonus for Conversion to Military Occupational 
Specialty to Ease Personnel Shortage.--Section 326(g) of such 
title is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.
    (h) Incentive Bonus for Transfer Between the Armed 
Forces.--Section 327(h) of such title is amended by striking 
``December 31, 2006'' and inserting ``December 31, 2009''.

SEC. 615. EXPANSION OF ELIGIBILITY OF DENTAL OFFICERS FOR ADDITIONAL 
                    SPECIAL PAY.

    (a) Repeal of Internship and Residency Exception.--Section 
302b(a)(4) of title 37, United States Code, is amended by 
striking the first sentence and inserting the following new 
sentence: ``An officer who is entitled to variable special pay 
under paragraph (2) or (3) is also entitled to additional 
special pay for any 12-month period during which an agreement 
executed under subsection (b) is in effect with respect to the 
officer.''.
    (b) Effective Date.--The amendment made by this section 
shall take effect on October 1, 2006.

SEC. 616. INCREASE IN MAXIMUM ANNUAL RATE OF SPECIAL PAY FOR SELECTED 
                    RESERVE HEALTH CARE PROFESSIONALS IN CRITICALLY 
                    SHORT WARTIME SPECIALTIES.

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

SEC. 617. EXPANSION AND ENHANCEMENT OF ACCESSION BONUS AUTHORITIES FOR 
                    CERTAIN OFFICERS IN HEALTH CARE SPECIALITIES.

    (a) Increase in Maximum Amount of Accession Bonus for 
Dental Officers.--Section 302h(a)(2) of title 37, United States 
Code, is amended by striking ``$30,000'' and inserting 
``$200,000''.
    (b) Accession Bonus for Medical Officers in Critically 
Short Wartime Specialties.--Chapter 5 of title 37, United 
States Code, is amended by inserting after section 302j the 
following new section:

``Sec. 302k. Special pay: accession bonus for medical officers in 
                    critically short wartime specialties

    ``(a) Accession Bonus Authorized.--A person who is a 
graduate of an accredited school of medicine or osteopathy in a 
specialty designated by regulations as a critically short 
wartime specialty and who executes a written agreement 
described in subsection (d) to accept a commission as an 
officer of the armed forces and remain on active duty for a 
period of not less than four consecutive years may, upon the 
acceptance of the agreement by the Secretary concerned, be paid 
an accession bonus in the amount determined by the Secretary 
concerned.
    ``(b) Amount of Bonus.--The amount of an accession bonus 
under subsection (a) may not exceed $400,000.
    ``(c) Limitation on Eligibility for Bonus.--A person may 
not be paid a bonus under subsection (a) if--
            ``(1) the person, in exchange for an agreement to 
        accept an appointment as an officer, received financial 
        assistance from the Department of Defense to pursue a 
        course of study in medicine or osteopathy; or
            ``(2) the Secretary concerned determines that the 
        person is not qualified to become and remain certified 
        as a doctor or osteopath in a specialty designated by 
        regulations as a critically short wartime specialty.
    ``(d) Agreement.--The agreement referred to in subsection 
(a) shall provide that, consistent with the needs of the armed 
force concerned, the person executing the agreement will be 
assigned to duty, for the period of obligated service covered 
by the agreement, as an officer of the Medical Corps of the 
Army or the Navy or as an officer of the Air Force designated 
as a medical officer in a specialty designated by regulations 
as a critically short wartime specialty.
    ``(e) Repayment.--A person who, after executing an 
agreement under subsection (a) is not commissioned as an 
officer of the armed forces, does not become licensed as a 
doctor or osteopath, as the case may be, or does not complete 
the period of active duty in a specialty specified in the 
agreement, shall be subject to the repayment provisions of 
section 303a(e) of this title.
    ``(f) Termination of Authority.--No agreement under this 
section may be entered into after December 31, 2007.''.
    (c) Accession Bonus for Dental Specialist Officers in 
Critically Short Wartime Specialties.--Such chapter is further 
amended by inserting after section 302k, as added by subsection 
(b), the following new section:

``Sec. 302l. Special pay: accession bonus for dental specialist 
                    officers in critically short wartime specialties

    ``(a) Accession Bonus Authorized.--A person who is a 
graduate of an accredited dental school in a specialty 
designated by regulations as a critically short wartime 
specialty and who executes a written agreement described in 
subsection (d) to accept a commission as an officer of the 
armed forces and remain on active duty for a period of not less 
than four consecutive years may, upon the acceptance of the 
agreement by the Secretary concerned, be paid an accession 
bonus in the amount determined by the Secretary concerned.
    ``(b) Amount of Bonus.--The amount of an accession bonus 
under subsection (a) may not exceed $400,000.
    ``(c) Limitation on Eligibility for Bonus.--A person may 
not be paid a bonus under subsection (a) if--
            ``(1) the person, in exchange for an agreement to 
        accept an appointment as an officer, received financial 
        assistance from the Department of Defense to pursue a 
        course of study in dentistry; or
            ``(2) the Secretary concerned determines that the 
        person is not qualified to become and remain certified 
        as a dentist in a specialty designated by regulations 
        as a critically short wartime specialty.
    ``(d) Agreement.--The agreement referred to in subsection 
(a) shall provide that, consistent with the needs of the armed 
force concerned, the person executing the agreement will be 
assigned to duty, for the period of obligated service covered 
by the agreement, as an officer of the Dental Corps of the Army 
or the Navy or as an officer of the Air Force designated as a 
dental officer in a specialty designated by regulations as a 
critically short wartime specialty.
    ``(e) Repayment.--A person who, after executing an 
agreement under subsection (a) is not commissioned as an 
officer of the armed forces, does not become licensed as a 
dentist, or does not complete the period of active duty in a 
specialty specified in the agreement, shall be subject to the 
repayment provisions of section 303a(e) of this title.
    ``(f) Coordination With Other Accession Bonus Authority.--A 
person eligible to execute an agreement under both subsection 
(a) and section 302h of this title shall elect which authority 
to execute the agreement under. A person may not execute an 
agreement under both subsection (a) and such section 302h.
    ``(g) Termination of Authority.--No agreement under this 
section may be entered into after December 31, 2007.''.
    (d) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 302j the following new items:

``302k. Special pay: accession bonus for medical officers in critically 
          short wartime specialties.
``302l. Special pay: accession bonus for dental specialist officers in 
          critically short wartime specialties.''.

    (e) Effective Date.--The amendments made by this section 
shall take effect on October 1, 2006, and shall apply to 
agreements--
            (1) entered into or revised under section 302h of 
        title 37, United States Code, on or after that date; or
            (2) entered into under section 302k or 302l of such 
        title, as added by subsections (b) and (c), on or after 
        that date.

SEC. 618. AUTHORITY TO PROVIDE LUMP SUM PAYMENT OF NUCLEAR OFFICER 
                    INCENTIVE PAY.

    (a) Lump Sum Payment Option.--Subsection (a) of section 312 
of title 37, United States Code, is amended in the matter after 
paragraph (3)--
            (1) by striking ``in equal annual installments'' 
        and inserting ``in a single lump-sum or in annual 
        installments of equal or different amounts''; and
            (2) by striking ``with the number of installments 
        being equal to the number of years covered by the 
        contract plus one'' and inserting ``and, if the special 
        pay will be paid in annual installments, the number of 
        installments may not exceed the number of years covered 
        by the agreement plus one''.
    (b) Stylistic and Conforming Amendments.--Such section is 
further amended--
            (1) by redesignating subsections (b) through (e) as 
        subsections (c) through (f), respectively;
            (2) in subsection (a)--
                    (A) by striking ``an officer'' in the 
                matter before paragraph (1) and inserting ``the 
                Secretary may pay special pay under subsection 
                (b) to an officer'';
                    (B) by striking the comma at the end of 
                paragraph (3) and inserting a period;
                    (C) by striking ``may, upon'' and all that 
                follows through ``The Secretary of the Navy 
                shall'' and inserting the following:
    ``(b) Payment Amount; Payment Options.--(1) The total 
amount paid to an officer under an agreement under subsection 
(a) or (e)(1) may not exceed $30,000 for each year of the 
active-service agreement. Amounts paid under the agreement are 
in addition to all other compensation to which the officer is 
entitled.
    ``(2) The Secretary shall'';
                    (D) by striking ``Upon acceptance of the 
                agreement by the Secretary or his designee'' 
                and inserting the following:
    ``(3) Upon acceptance of an agreement under subsection (a) 
or (e)(1) by the Secretary''; and
                    (E) by striking ``The Secretary (or his 
                designee)'' and inserting the following:
    ``(4) The Secretary'';
            (3) in subsection (c), as redesignated by paragraph 
        (1), by striking ``subsection (a) or subsection 
        (d)(1)'' and inserting ``subsection (b) or (e)(1)''; 
        and
            (4) in the first sentence of subsection (e)(1), as 
        redesignated by paragraph (1)--
                    (A) by striking ``such subsection'' and 
                inserting ``subsection (b)''; and
                    (B) by striking ``that subsection'' and 
                inserting ``this subsection''.
    (c) Stylistic Amendments.--Such section is further 
amended--
            (1) in subsection (a), by inserting ``Special Pay 
        Authorized; Eligibility.--'' after ``(a)'';
            (2) in subsection (c), as redesignated by 
        subsection (b)(1), by inserting ``Repayment.--'' after 
        ``(c)'';
            (3) in subsection (d), as redesignated by 
        subsection (b)(1), by inserting ``Relation to Service 
        Obligation.--'' after ``(d)'';
            (4) in subsection (e), as redesignated by 
        subsection (b)(1), by inserting ``New Agreement.--'' 
        after ``(e)''; and
            (5) in subsection (f), as redesignated by 
        subsection (b)(1), by inserting ``Duration of 
        Authority.--'' after ``(f)''.

SEC. 619. INCREASE IN MAXIMUM AMOUNT OF NUCLEAR CAREER ACCESSION BONUS.

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

SEC. 620. INCREASE IN MAXIMUM AMOUNT OF INCENTIVE BONUS FOR TRANSFER 
                    BETWEEN ARMED FORCES.

    (a) Increase.--Section 327(d)(1) of title 37, United States 
Code, is amended by striking ``$2,500'' and inserting 
``$10,000''.
    (b) Effective Date.--The amendment made by subsection (a) 
shall take effect on October 1, 2006, and shall apply to 
agreements entered into or revised under section 327 of title 
37, United States Code, on or after that date.

SEC. 621. ADDITIONAL AUTHORITIES AND INCENTIVES TO ENCOURAGE RETIRED 
                    MEMBERS AND RESERVE COMPONENT MEMBERS TO VOLUNTEER 
                    TO SERVE ON ACTIVE DUTY IN HIGH-DEMAND, LOW-DENSITY 
                    ASSIGNMENTS.

    (a) Authority To Offer Incentive Bonus.--Chapter 5 of title 
37, United States Code, is amended by adding at the end the 
following new section:

``Sec. 329. Incentive bonus: retired members and reserve component 
                    members volunteering for high-demand, low-density 
                    assignments

    ``(a) Incentive Bonus Authorized.--The Secretary of Defense 
may pay a bonus under this section to a retired member or 
former member of the Army, Navy, Air Force, or Marine Corps or 
to a member of a reserve component of the Army, Navy, Air 
Force, or Marine Corps (who is not otherwise serving on active 
duty) who executes a written agreement to serve on active duty 
for a period specified in the agreement in an assignment 
intended to alleviate the need for members in a high-demand, 
low-density military capability or in any other specialty 
designated by the Secretary as critical to meet wartime or 
peacetime requirements.
    ``(b) Maximum Amount of Bonus.--A bonus under subsection 
(a) and any incentive developed under subsection (d) may not 
exceed $50,000.
    ``(c) Methods of Payment.--At the election of the Secretary 
of Defense, a bonus under subsection (a) and any incentive 
developed under subsection (d) shall be paid or provided--
            ``(1) when the member commences service on active 
        duty; or
            ``(2) in annual installments in such amounts as may 
        be determined by the Secretary.
    ``(d) Development of Additional Incentives.--(1) The 
Secretary of Defense may develop and provide to members 
referred to in subsection (a) additional incentives to 
encourage such members to return to active duty in assignments 
intended to alleviate the need for members in a high-demand, 
low-density military capability or in other specialties 
designated by the Secretary as critical to meet wartime or 
peacetime requirements.
    ``(2) The provision of any incentive developed under this 
subsection shall be subject to an agreement, as required for 
bonuses under subsection (a).
    ``(3) Not later than 30 days before first offering any 
incentive developed under this subsection, the Secretary shall 
submit to the congressional defense committees a report that 
contains a description of that incentive and an explanation why 
a bonus under subsection (a) or other pay and allowances are 
not sufficient to alleviate the high-demand, low-density 
military capability or otherwise fill critical military 
specialties.
    ``(4) In this subsection, the term `congressional defense 
committees' has the meaning given that term in section 
101(a)(16) of title 10.
    ``(e) Relationship to Other Pay and Allowances.--A bonus or 
other incentive paid or provided to a member under this section 
is in addition to any other pay and allowances to which the 
member is entitled.
    ``(f) Prohibition on Promotions.--The written agreement 
required by subsections (a) and (d) shall specify that a member 
who is paid or receives a bonus or other incentive under this 
section is not eligible for promotion while serving in the 
assignment for which the bonus or other incentive is provided.
    ``(g) Repayment.--A member who does not complete the period 
of active duty specified in the agreement executed under 
subsection (a) or (d) shall be subject to the repayment 
provisions of section 303a(e) of this title.
    ``(h) High-Demand, Low-Density Military Capability.--In 
this section, the term `high-demand, low-density military 
capability' means a combat, combat support or service support 
capability, unit, system, or occupational specialty that the 
Secretary of Defense determines has funding, equipment, or 
personnel levels that are substantially below the levels 
required to fully meet or sustain actual or expected 
operational requirements set by regional commanders.
    ``(i) Regulations.--The Secretary of Defense may prescribe 
such regulations as the Secretary considers necessary to carry 
out this section.
    ``(j) Termination of Authority.--No agreement under 
subsection (a) or (d) may be entered into after December 31, 
2010.''.
    (b) Temporary Authority to Order Retired Members to Active 
Duty in High-Demand, Low-Density Military Capability.--Section 
688a of title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking the first sentence and 
                inserting the following new sentence: ``The 
                Secretary of a military department may order to 
                active duty a retired member who agrees to 
                serve on active duty in an assignment intended 
                to alleviate a high-demand, low-density 
                military capability or in any other specialty 
                designated by the Secretary as critical to meet 
                wartime or peacetime requirements.''; and
                    (B) in the second sentence, by striking 
                ``officer'' both places it appears and 
                inserting ``member'';
            (2) in subsection (b), by striking ``an officer'' 
        and inserting ``a member'';
            (3) in subsection (c), by striking ``500 officers'' 
        and inserting ``1,000 members'';
            (4) in subsection (d), by striking ``officer'' and 
        inserting ``member'';
            (5) in subsection (e), by striking ``Officers'' and 
        inserting ``Retired members'';
            (6) in subsection (f)--
                    (A) by striking ``An officer'' and 
                inserting ``A retired member''; and
                    (B) by striking ``September 30, 2008'' and 
                inserting ``December 31, 2010''; and
            (7) by adding at the end the following new 
        subsection:
    ``(g) High-Demand, Low-Density Military Capability 
Defined.--In this section, the term `high-demand, low-density 
military capability' means a combat, combat support or service 
support capability, unit, system, or occupational specialty 
that the Secretary of Defense determines has funding, 
equipment, or personnel levels that are substantially below the 
levels required to fully meet or sustain actual or expected 
operational requirements set by regional commanders.''.
    (c) Exclusion From Active-Duty List.--Section 641 of title 
10, United States Code, is amended by adding at the end the 
following new paragraph:
            ``(6) Officers appointed pursuant to an agreement 
        under section 329 of title 37.''.
    (d) Clerical Amendments.--
            (1) Title 37.--The table of sections at the 
        beginning of chapter 5 of title 37, United States Code, 
        is amended by adding at the end the following new item:

``329. Incentive bonus: retired members and reserve component members 
          volunteering for high-demand, low-density assignments.''.

            (2) Title 10.--(A) The heading of section 688a of 
        title 10, United States Code, is amended to read as 
        follows:

``Sec. 688a. Retired members: temporary authority to order to active 
                    duty in high-demand, low-density assignments''.

            (B) The table of sections at the beginning of 
        chapter 39 of such title is amended by striking the 
        item relating to section 688a and inserting the 
        following new item:

``688a. Retired members: temporary authority to order to active duty in 
          high-demand, low-density assignments.''.

    (e) Effective Date.--No agreement may be entered into under 
section 329 of title 37, United States Code, as added by 
subsection (a), before October 1, 2006.
    (f) Limitation on Fiscal Year 2007 Obligations.--During 
fiscal year 2007, obligations incurred under section 329 of 
title 37, United States Code, as added by subsection (a), to 
provide bonuses or other incentives to retired members and 
former members of the Army, Navy, Air Force, or Marine Corps or 
to members of the reserve components of the Army, Navy, Air 
Force, and Marine Corps may not exceed $5,000,000.

SEC. 622. ACCESSION BONUS FOR MEMBERS OF THE ARMED FORCES APPOINTED AS 
                    COMMISSIONED OFFICERS AFTER COMPLETING OFFICER 
                    CANDIDATE SCHOOL.

    (a) Accession Bonus Authorized.--
            (1) In general.--Chapter 5 of title 37, United 
        States Code, is amended by inserting after section 329, 
        as added by section 621 of this Act, the following new 
        section:

``Sec. 330. Special pay: accession bonus for officer candidates

    ``(a) Accession Bonus Authorized.--Under regulations 
prescribed by the Secretary concerned, a person who executes a 
written agreement described in subsection (c) may be paid an 
accession bonus under this section upon acceptance of the 
agreement by the Secretary concerned.
    ``(b) Amount of Bonus.--The amount of an accession bonus 
under subsection (a) may not exceed $8,000.
    ``(c) Agreement.--A written agreement referred to in 
subsection (a) is a written agreement by a person--
            ``(1) to complete officer candidate school;
            ``(2) to accept a commission or appointment as an 
        officer of the armed forces; and
            ``(3) to serve on active duty as a commissioned 
        officer for a period specified in the agreement.
    ``(d) Payment Method.--Upon acceptance of a written 
agreement under subsection (a) by the Secretary concerned, the 
total amount of the accession bonus payable under the agreement 
becomes fixed. The agreement shall specify whether the 
accession bonus will be paid in a lump sum or installments.
    ``(e) Repayment.--A person who, having received all or part 
of the bonus under a written agreement under subsection (a), 
does not complete the total period of active duty as a 
commissioned officer as specified in such agreement shall be 
subject to the repayment provisions of section 303a(e) of this 
title.
    ``(f) Termination of Authority.--No agreement under this 
section may be entered into after December 31, 2007.''.
            (2) Clerical amendment.--The table of sections at 
        the beginning of such chapter is amended by inserting 
        after the item relating to section 329, as added by 
        section 621, the following new item:

``330. Special pay: accession bonus for officer candidates.''.

            (3) Effective date.--The amendments made by this 
        subsection shall take effect on October 1, 2006.
    (b) Authority for Payment of Bonus Under Earlier 
Agreements.--
            (1) Authority.--The Secretary of the Army may pay a 
        bonus to any person who, during the period beginning on 
        April 1, 2005, and ending on April 6, 2006, executed an 
        agreement to enlist for the purpose of attending 
        officer candidate school and receive a bonus under 
        section 309 of title 37, United States Code, and who 
        has completed the terms of the agreement required for 
        payment of the bonus.
            (2) Amount of bonus.--The amount of the bonus 
        payable to a person under this subsection may not 
        exceed $8,000.
            (3) Relation to enlistment bonus.--The bonus 
        payable under this subsection is in addition to a bonus 
        payable under section 309 of title 37, United States 
        Code, or any other provision of law.

SEC. 623. MODIFICATION OF CERTAIN AUTHORITIES APPLICABLE TO THE 
                    TARGETED SHAPING OF THE ARMED FORCES.

    (a) Voluntary Separation Pay and Benefits.--
            (1) Increase in maximum amount of pay.--Subsection 
        (f) of section 1175a of title 10, United States Code, 
        is amended by striking ``two times'' and inserting 
        ``four times''.
            (2) Extension of authority.--Subsection (k)(1) of 
        such section is amended by striking ``December 31, 
        2008'' and inserting ``December 31, 2012''.
            (3) Repeal of limitation on applicability.--
        Subsection (b) of section 643 of the National Defense 
        Authorization Act for Fiscal Year 2006 (Public Law 109-
        163; 119 Stat. 3310; 10 U.S.C. 1175a note) is repealed.
    (b) Enhanced Authority for Early Discharges.--
            (1) Renewal of authority.--Subsection (a) of 
        section 638a of title 10, United States Code, is 
        amended by inserting ``and for the purpose of 
        subsection (b)(4) during the period beginning on 
        October 1, 2006, and ending on December 31, 2012,'' 
        after ``December 31, 2001,''.
            (2) Relaxation of limitation on selective early 
        discharge.--Subsection (d)(2) of such section is 
        amended--
                    (A) in subparagraph (A), by inserting 
                before the semicolon the following: ``, except 
                that during the period beginning on October 1, 
                2006, and ending on December 31, 2012, such 
                number may be more than 30 percent of the 
                officers considered in each competitive 
                category, but may not be more than 30 percent 
                of the number of officers considered in each 
                grade''; and
                    (B) in subparagraph (B), by inserting 
                before the period the following: ``, except 
                that during the period beginning on October 1, 
                2006, and ending on December 31, 2012, such 
                number may be more than 30 percent of the 
                officers considered in each competitive 
                category, but may not be more than 30 percent 
                of the number of officers considered in each 
                grade''.

SEC. 624. ENHANCEMENT OF BONUS TO ENCOURAGE CERTAIN PERSONS TO REFER 
                    OTHER PERSONS FOR ENLISTMENT IN THE ARMY.

    (a) Individuals Eligible for Bonus.--Subsection (a) of 
section 645 of the National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3310) is 
amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
            ``(1) Authority.--The Secretary'';
            (2) by striking ``a member of the Army, whether in 
        the regular component of the Army or in the Army 
        National Guard or Army Reserve,'' and inserting ``an 
        individual referred to in paragraph (2)''; and
            (3) by adding at the end the following new 
        paragraph:
            ``(2) Individuals eligible for bonus.--Subject to 
        subsection (c), the following individuals are eligible 
        for a referral bonus under this section:
                    ``(A) A member in the regular component of 
                the Army.
                    ``(B) A member of the Army National Guard.
                    ``(C) A member of the Army Reserve.
                    ``(D) A member of the Army in a retired 
                status, including a member under 60 years of 
                age who, but for age, would be eligible for 
                retired pay.
                    ``(E) A civilian employee of the Department 
                of the Army.''.
    (b) Certain Referrals Ineligible.--Subsection (c) of such 
section is amended by adding at the end the following new 
paragraph:
            ``(3) Junior reserve officers' training corps 
        instructors.--A member of the Army detailed under 
        subsection (c)(1) of section 2031 of title 10, United 
        States Code, to serve as an administrator or instructor 
        in the Junior Reserve Officers' Training Corps program 
        or a retired member of the Army employed as an 
        administrator or instructor in the program under 
        subsection (d) of such section may not be paid a bonus 
        under subsection (a).''.
    (c) Amount of Bonus.--Subsection (d) of such section is 
amended to read as follows:
    ``(d) Amount of Bonus.--The amount of the bonus payable for 
a referral under subsection (a) may not exceed $2,000. The 
amount shall be payable in two lump sums as provided in 
subsection (e).''.
    (d) Payment of Bonus.--Subsection (e) of such section is 
amended to read as follows:
    ``(e) Payment.--A bonus payable for a referral of a person 
under subsection (a) shall be paid as follows:
            ``(1) Not more than $1,000 shall be paid upon the 
        commencement of basic training by the person referred.
            ``(2) Not more than $1,000 shall be paid upon the 
        completion of basic training and individual advanced 
        training by the person referred.''.
    (e) Coordination With Receipt of Retired Pay.--Such section 
is further amended--
            (1) by redesignating subsection (g) as subsection 
        (h); and
            (2) by inserting after subsection (f) the following 
        new subsection (g):
    ``(g) Coordination With Receipt of Retired Pay.--A bonus 
paid under this section to a member of the Army in a retired 
status is in addition to any compensation to which the member 
is entitled under title 10, 37, or 38, United States Code, or 
any other provision of law.''.
    (f) Effective Date.--The amendments made by this section 
shall take effect on the date of the enactment of this Act, and 
shall apply with respect to bonuses payable under section 645 
of the National Defense Authorization Act for Fiscal Year 2006, 
as amended by this section, on or after that date.

            Subtitle C--Travel and Transportation Allowances

SEC. 631. TRAVEL AND TRANSPORTATION ALLOWANCES FOR TRANSPORTATION OF 
                    FAMILY MEMBERS INCIDENT TO ILLNESS OR INJURY OF 
                    MEMBERS.

    Section 411h(b)(1) of title 37, United States Code, is 
amended--
            (1) by striking ``and'' at the end of subparagraph 
        (C);
            (2) by striking the period at the end of 
        subparagraph (D) and inserting ``; and''; and
            (3) by adding at the end the following new 
        subparagraph:
            ``(E) a person related to the member as described 
        in subparagraph (A), (B), (C), or (D) who is also a 
        member of the uniformed services.''.

             Subtitle D--Retired Pay and Survivor Benefits

SEC. 641. RETIRED PAY OF GENERAL AND FLAG OFFICERS TO BE BASED ON RATES 
                    OF BASIC PAY PROVIDED BY LAW.

    (a) Determination of Retired Pay Base.--Chapter 71 of title 
10, United States Code, is amended by inserting after section 
1407 the following new section:

``Sec. 1407a. Retired pay base: officers retired in general or flag 
                    officer grades

    ``(a) Rates of Basic Pay to Be Used in Determination.--In a 
case in which the determination under section 1406 or 1407 of 
this title of the retired pay base applicable to the 
computation of the retired pay of a covered general or flag 
officer involves a rate of basic pay payable to that officer 
for any period that was subject to a reduction under section 
203(a)(2) of title 37 for such period, such retired-pay-base 
determination shall be made using the rate of basic pay for 
such period provided by law, rather than such rate as so 
reduced.
    ``(b) Covered General and Flag Officers.--In this section, 
the term `covered general or flag officer' means a member or 
former member who after September 30, 2006, is retired in a 
general officer grade or flag officer grade.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 1407 the following new item:

``1407a.  Retired pay base: officers retired in general or flag officer 
          grades.''.

SEC. 642. INAPPLICABILITY OF RETIRED PAY MULTIPLIER MAXIMUM PERCENTAGE 
                    TO CERTAIN SERVICE OF MEMBERS OF THE ARMED FORCES 
                    IN EXCESS OF 30 YEARS.

    (a) In General.--Paragraph (3) of section 1409(b) of title 
10, United States Code, is amended to read as follows:
            ``(3) 30 years of service.--
                    ``(A) Retirement before january 1, 2007.--
                In the case of a member who retires before 
                January 1, 2007, with more than 30 years of 
                creditable service, the percentage to be used 
                under subsection (a) is 75 percent.
                    ``(B) Retirement after december 31, 2006.--
                In the case of a member who retires after 
                December 31, 2006, with more than 30 years of 
                creditable service, the percentage to be used 
                under subsection (a) is the sum of--
                            ``(i) 75 percent; and
                            ``(ii) the product (stated as a 
                        percentage) of--
                                    ``(I) 2\1/2\; and
                                    ``(II) the member's years 
                                of creditable service (as 
                                defined in subsection (c)) in 
                                excess of 30 years of 
                                creditable service, under 
                                conditions authorized for 
                                purposes of this subparagraph 
                                during a period designated by 
                                the Secretary of Defense for 
                                purposes of this 
                                subparagraph.''.
    (b) Retired Pay for Non-Regular Service.--Section 12739(c) 
of such title is amended--
            (1) by striking ``The total amount'' and inserting 
        ``(1) Except as provided in paragraph (2), the total 
        amount''; and
            (2) by adding at the end the following new 
        paragraph:
            ``(2) In the case of a person who retires after 
        December 31, 2006, with more than 30 years of service 
        credited to that person under section 12733 of this 
        title, the total amount of the monthly retired pay 
        computed under subsections (a) and (b) may not exceed 
        the sum of--
                    ``(A) 75 percent of the retired pay base 
                upon which the computation is based; and
                    ``(B) the product of--
                            ``(i) the retired pay base upon 
                        which the computation is based; and
                            ``(ii) 2\1/2\ percent of the years 
                        of service credited to that person 
                        under section 12733 of this title, for 
                        service under conditions authorized for 
                        purposes of this paragraph during a 
                        period designated by the Secretary of 
                        Defense for purposes of this 
                        paragraph.''.

SEC. 643. MILITARY SURVIVOR BENEFIT PLAN BENEFICIARIES UNDER INSURABLE 
                    INTEREST COVERAGE.

    (a) Authority To Elect New Beneficiary.--Section 1448(b)(1) 
of title 10, United States Code, is amended--
            (1) by inserting ``or under subparagraph (G) of 
        this paragraph'' in the second sentence of subparagraph 
        (E) before the period at the end; and
            (2) by adding at the end the following new 
        subparagraph:
                    ``(G) Election of new beneficiary upon 
                death of previous beneficiary.--
                            ``(i) Authority for election.--If 
                        the reason for discontinuation in the 
                        Plan is the death of the beneficiary, 
                        the participant in the Plan may elect a 
                        new beneficiary. Any such beneficiary 
                        must be a natural person with an 
                        insurable interest in the participant. 
                        Such an election may be made only 
                        during the 180-day period beginning on 
                        the date of the death of the previous 
                        beneficiary.
                            ``(ii) Procedures.--Such an 
                        election shall be in writing, signed by 
                        the participant, and made in such form 
                        and manner as the Secretary concerned 
                        may prescribe. Such an election shall 
                        be effective the first day of the first 
                        month following the month in which the 
                        election is received by the Secretary.
                            ``(iii) Vitiation of election by 
                        participant who dies within two years 
                        of election.--If a person providing an 
                        annuity under a election under clause 
                        (i) dies before the end of the two-year 
                        period beginning on the effective date 
                        of the election--
                                    ``(I) the election is 
                                vitiated; and
                                    ``(II) the amount by which 
                                the person's retired pay was 
                                reduced under section 1452 of 
                                this title that is attributable 
                                to the election shall be paid 
                                in a lump sum to the person who 
                                would have been the deceased 
                                person's beneficiary under the 
                                vitiated election if the 
                                deceased person had died after 
                                the end of such two-year 
                                period.''.
    (b) Change in Premium for Coverage of New Beneficiary.--
Section 1452(c) of such title is amended by adding at the end 
the following new paragraph:
            ``(5) Rule for designation of new insurable 
        interest beneficiary following death of original 
        beneficiary.--The Secretary of Defense shall prescribe 
        in regulations premiums which a participant making an 
        election under section 1448(b)(1)(G) of this title 
        shall be required to pay for participating in the Plan 
        pursuant to that election. The total amount of the 
        premiums to be paid by a participant under the 
        regulations shall be equal to the sum of the following:
                    ``(A) The total additional amount by which 
                the retired pay of the participant would have 
                been reduced before the effective date of the 
                election if the original beneficiary (i) had 
                not died and had been covered under the Plan 
                through the date of the election, and (ii) had 
                been the same number of years younger than the 
                participant (if any) as the new beneficiary 
                designated under the election.
                    ``(B) Interest on the amounts by which the 
                retired pay of the participant would have been 
                so reduced, computed from the dates on which 
                the retired pay would have been so reduced at 
                such rate or rates and according to such 
                methodology as the Secretary of Defense 
                determines reasonable.
                    ``(C) Any additional amount that the 
                Secretary determines necessary to protect the 
                actuarial soundness of the Department of 
                Defense Military Retirement Fund against any 
                increased risk for the fund that is associated 
                with the election.''.
    (c) Transition.--
            (1) Transition period.--In the case of a 
        participant in the Survivor Benefit Plan who made a 
        covered insurable-interest election (as defined in 
        paragraph (2)) and whose designated beneficiary under 
        that election dies before the date of the enactment of 
        this Act or during the 18-month period beginning on 
        such date, the time period applicable for purposes of 
        the limitation in the third sentence of subparagraph 
        (G)(i) of section 1448(b)(1) of title 10, United States 
        Code, as added by subsection (a), shall be the two-year 
        period beginning on the date of the enactment of this 
        Act (rather than the 180-day period specified in that 
        sentence).
            (2) Covered insurable-interest elections.--For 
        purposes of paragraph (1), a covered insurable-interest 
        election is an election under section 1448(b)(1) of 
        title 10, United States Code, made before the date of 
        the enactment of this Act, or during the 18-month 
        period beginning on such date, by a participant in the 
        Survivor Benefit Plan to provide an annuity under that 
        plan to a natural person with an insurable interest in 
        that person.
            (3) Survivor benefit plan.--For purposes of this 
        subsection, the term ``Survivor Benefit Plan'' means 
        the program under subchapter II of chapter 73 of title 
        10, United States Code.

SEC. 644. MODIFICATION OF ELIGIBILITY FOR COMMENCEMENT OF AUTHORITY FOR 
                    OPTIONAL ANNUITIES FOR DEPENDENTS UNDER THE 
                    SURVIVOR BENEFIT PLAN.

    (a) In General.--Section 1448(d)(2)(B) of title 10, United 
States Code, is amended by striking ``who dies after November 
23, 2003'' and inserting ``who dies after October 7, 2001''.
    (b) Applicability.--Any annuity payable to a dependent 
child under subchapter II of chapter 73 of title 10, United 
States Code, by reason of the amendment made by subsection (a) 
shall be payable only for months beginning on or after the date 
of the enactment of this Act.

SEC. 645. STUDY OF TRAINING COSTS, MANNING, OPERATIONS TEMPO, AND OTHER 
                    FACTORS THAT AFFECT RETENTION OF MEMBERS OF THE 
                    ARMED FORCES WITH SPECIAL OPERATIONS DESIGNATIONS.

    (a) Report Required.--Not later than August 1, 2007, the 
Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives a report on factors that affect 
retention of members of the Armed Forces who have a special 
operations forces designation.
    (b) Elements.--The report under subsection (a) shall 
include the following:
            (1) Information on the cost of training of members 
        of the Armed Forces who have a special operations 
        forces designation, with such information displayed 
        separately and shown as aggregate costs of training for 
        such members at the 4-year, 8-year, 12-year, 16-year, 
        and 20-year points of service.
            (2) The average cost of special operations-unique 
        training, both predeployment and during deployment, for 
        the number of members of the Armed Forces who have a 
        special operations forces designation who have been 
        deployed at least twice to areas in which they were 
        eligible for hostile fire pay.
            (3) For each component of the United States Special 
        Operations Command, an estimate of when the assigned 
        strength of that component will be under 90 percent of 
        the authorized strength of that component, taking into 
        account anticipated growth planned for in the most 
        recent Quadrennial Defense Review.
            (4) The percentage of members of the Armed Forces 
        with a special operations forces designation who have 
        accumulated over 48 months of hostile fire pay and the 
        percentage who have accumulated over 60 months of such 
        pay.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

SEC. 661. TREATMENT OF PRICE SURCHARGES OF CERTAIN MERCHANDISE SOLD AT 
                    COMMISSARY STORES.

    (a) Merchandise Procured From Exchanges.--Subsection (c)(3) 
of section 2484 of title 10, United States Code, is amended--
            (1) by inserting ``(A)'' after ``(3)'';
            (2) by striking ``Subsections'' and inserting 
        ``Except as provided in subparagraph (B), 
        subsections''; and
            (3) by adding at the end the following new 
        subparagraph:
    ``(B) When a military exchange is the vendor of tobacco 
products or other merchandise authorized for sale in a 
commissary store under paragraph (1), any revenue above the 
cost of procuring the merchandise shall be allocated as if the 
revenue were a uniform sales price surcharge described in 
subsection (d).''.
    (b) Merchandise Treated as Noncommissary Store Inventory.--
Subsection (g) of such section is amended--
            (1) by inserting ``(1)'' before 
        ``Notwithstanding'';
            (2) by striking ``Subsections'' and inserting 
        ``Except as provided in paragraph (2), subsections''; 
        and
            (3) by adding at the end the following new 
        paragraph:
    ``(2) When tobacco products are authorized for sale in a 
commissary store as noncommissary store inventory, any revenue 
above the cost of procuring the tobacco products shall be 
allocated as if the revenue were a uniform sales price 
surcharge described in subsection (d).''.

SEC. 662. LIMITATIONS ON LEASE OF NON-EXCESS DEPARTMENT OF DEFENSE 
                    PROPERTY FOR PROTECTION OF MORALE, WELFARE, AND 
                    RECREATION ACTIVITIES AND REVENUE.

    (a) Additional Condition on Use of Lease Authority.--
Subsection (b) section 2667 of title 10, United States Code, is 
amended--
            (1) in paragraph (4), by striking ``and'' at the 
        end;
            (2) in paragraph (5), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following new 
        paragraph:
            ``(6) except as otherwise provided in subsection 
        (d), shall require the lessee to provide the covered 
        entities specified in paragraph (1) of that subsection 
        the right to establish and operate a community support 
        facility or provide community support services, or seek 
        equitable compensation for morale, welfare, and 
        recreation programs of the Department of Defense in 
        lieu of the operation of such a facility or the 
        provision of such services, if the Secretary determines 
        that the lessee will provide merchandise or services in 
        direct competition with covered entities through the 
        lease.''.
    (b) Application of Condition; Waiver.--Such section is 
further amended--
            (1) by redesignating subsections (d) through (i) as 
        subsections (e) through (j), respectively; and
            (2) by inserting after subsection (c) the following 
        new subsection (d):
    ``(d) Community Support Facilities and Community Support 
Services Under Lease; Waiver.--(1) In this subsection and 
subsection (b)(6), the term `covered entity' means each of the 
following:
            ``(A) The Army and Air Force Exchange Service.
            ``(B) The Navy Exchange Service Command.
            ``(C) The Marine Corps exchanges.
            ``(D) The Defense Commissary Agency.
            ``(E) The revenue-generating nonappropriated fund 
        activities of the Department of Defense conducted for 
        the morale, welfare, and recreation of members of the 
        armed forces.
    ``(2) The Secretary of a military department may waive the 
requirement in subsection (b)(6) with respect to a lease if--
            ``(A) the lease is entered into under subsection 
        (g); or
            ``(B) the Secretary determines that the waiver is 
        in the best interests of the Government.
    ``(3) The Secretary of the military department concerned 
shall provide to the congressional defense committees written 
notice of each waiver under paragraph (2), including the 
reasons for the waiver.
    ``(4) The covered entities shall exercise the right 
provided in subsection (b)(6) with respect to a lease, if at 
all, not later than 90 days after receiving notice from the 
Secretary of the military department concerned regarding the 
opportunity to exercise such right with respect to the lease. 
The Secretary may, at the discretion of the Secretary, extend 
the period under this paragraph for the exercise of the right 
with respect to a lease for such additional period as the 
Secretary considers appropriate.
    ``(5) The Secretary of Defense shall prescribe in 
regulations uniform procedures and criteria for the evaluation 
of proposals for enhanced use leases involving the operation of 
community support facilities or the provision of community 
support services by either a lessee under this section or a 
covered entity.
    ``(6) The Secretary of the military department concerned 
shall provide written notification to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives regarding all leases under this 
section that include the operation of a community support 
facility or the provision of community support services, 
regardless of whether the facility will be operated by a 
covered entity or the lessee or the services will be provided 
by a covered entity or the lessee.''.
    (c) Definitions.--Subsection (i) of such section, as 
redesignated by subsection (b)(1) of this section, is amended 
to read as follows:
    ``(i) Definitions.--In this section:
            ``(1) The term `community support facility' 
        includes an ancillary supporting facility (as that term 
        is defined in section 2871(1) of this title).
            ``(2) The term `community support services' 
        includes revenue-generating food, recreational, lodging 
        support services, and resale operations and other 
        retail facilities and services intended to support a 
        community.
            ``(3) The term `military installation' has the 
        meaning given such term in section 2687(e)(1) of this 
        title.''.
    (d) Stylistic, Technical, and Conforming Amendments.--Such 
section is further amended--
            (1) in subsection (a), by inserting ``Lease 
        Authority.--'' after ``(a)'';
            (2) in subsection (b), by inserting ``Conditions on 
        Leases.--'' after ``(b)'';
            (3) in subsection (c), by inserting ``Types of In-
        Kind Consideration.--'' after ``(c)'';
            (4) in subsection (e), as redesignated by 
        subsection (b)(1) of this section--
                    (A) by inserting ``Deposit and Use of 
                Proceeds.--'' after ``(e)''; and
                    (B) in paragraph (5), by striking 
                ``subsection (f)'' and inserting ``subsection 
                (g)'';
            (5) in subsection (f), as redesignated by 
        subsection (b)(1) of this section, by inserting 
        ``Treatment of Lessee Interest in Property.--'' after 
        ``(f)'';
            (6) in subsection (g), as redesignated by 
        subsection (b)(1) of this section--
                    (A) by inserting ``Special Rules for Base 
                Closure and Realignment Property.--'' after 
                ``(g)''; and
                    (B) in paragraph (1), by striking 
                ``subsection (a)(3)'' and inserting 
                ``subsection (a)(2)'';
            (7) in subsection (h), as redesignated by 
        subsection (b)(1) of this section, by inserting 
        ``Competitive Procedures for Selection of Certain 
        Lessees; Exception.--'' after ``(h)'' and
            (8) in subsection (j), as redesignated by 
        subsection (b)(1) of this section, by inserting 
        ``Exclusion of Certain Lands.--'' after ``(j)''.

SEC. 663. REPORT ON COST EFFECTIVENESS OF PURCHASING COMMERCIAL 
                    INSURANCE FOR COMMISSARY AND EXCHANGE FACILITIES 
                    AND FACILITIES OF OTHER MORALE, WELFARE, AND 
                    RECREATION PROGRAMS AND NONAPPROPRIATED FUND 
                    INSTRUMENTALITIES.

    (a) Report Required.--Not later than July 31, 2007, the 
Secretary of Defense shall submit to Congress a report 
evaluating the cost effectiveness of the Defense Commissary 
Agency and the nonappropriated fund activities specified in 
subsection (b) purchasing commercial insurance to protect 
financial interests in facilities operated by the Defense 
Commissary Agency or those nonappropriated fund activities.
    (b) Covered Nonappropriated Fund Activities.--The report 
shall apply with respect to--
            (1) the Army and Air Force Exchange Service;
            (2) the Navy Exchange Service Command;
            (3) the Marine Corps exchanges; and
            (4) any nonappropriated fund activity of the 
        Department of Defense for the morale, welfare, and 
        recreation of members of the Armed Forces.

SEC. 664. STUDY AND REPORT REGARDING ACCESS OF DISABLED PERSONS TO 
                    MORALE, WELFARE, AND RECREATION FACILITIES AND 
                    ACTIVITIES.

    (a) Study Required.--The Secretary of Defense shall conduct 
a study regarding the current capability of morale, welfare, 
and recreation facilities and activities operated by 
nonappropriated fund instrumentalities of the Department of 
Defense to provide access to and accommodate disabled persons 
who are otherwise eligible to use such facilities or 
participate in such activities and the legal requirements 
regarding such access and accommodation applicable to these 
morale, welfare, and recreation facilities and activities, with 
specific attention to the applicability of section 504 of the 
Rehabilitation Act of 1973 (29 U.S.C. 794).
    (b) Elements of Study.--In conducting the study, the 
Secretary of Defense shall address at a minimum the following:
            (1) The current plans of the Secretary of Defense 
        and the Secretaries of the military departments to 
        improve the access and accommodation of disabled 
        persons to morale, welfare, and recreation facilities 
        and activities operated by nonappropriated fund 
        instrumentalities of the Department of Defense, 
        including plans to make available additional golf carts 
        at military golf courses that are accessible for 
        disabled persons authorized to use such courses, and 
        whether any portion of these plans require 
        congressional authorization or funding.
            (2) The timing and cost of making these morale, 
        welfare, and recreation facilities and activities fully 
        accessible to disabled persons.
            (3) The expected utilization rates of these morale, 
        welfare, and recreation facilities and activities by 
        disabled persons, if the facilities and activities were 
        fully accessible to disabled persons.
            (4) Any legal requirements applicable to providing 
        golf carts at military golf courses that are accessible 
        for disabled persons authorized to use such courses and 
        the current availability of accessible golf carts at 
        such courses.
    (c) Report Required.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to Congress a report containing the results of the 
study and any related findings, conclusions, and 
recommendations that the Secretary considers to be appropriate 
concerning the access of disabled persons to morale, welfare, 
and recreation facilities and activities, and specifically the 
Secretary's conclusions on making accessible golf carts 
available at all military golf courses for use by disabled 
persons authorized to use such courses.

                       Subtitle F--Other Matters

SEC. 670. LIMITATIONS ON TERMS OF CONSUMER CREDIT EXTENDED TO 
                    SERVICEMEMBERS AND DEPENDENTS.

    (a) Terms of Consumer Credit.--Chapter 49 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 987. Terms of consumer credit extended to members and 
                    dependents: limitations

    ``(a) Interest.--A creditor who extends consumer credit to 
a covered member of the armed forces or a dependent of such a 
member shall not require the member or dependent to pay 
interest with respect to the extension of such credit, except 
as--
            ``(1) agreed to under the terms of the credit 
        agreement or promissory note;
            ``(2) authorized by applicable State or Federal 
        law; and
            ``(3) not specifically prohibited by this section.
    ``(b) Annual Percentage Rate.--A creditor described in 
subsection (a) may not impose an annual percentage rate of 
interest greater than 36 percent with respect to the consumer 
credit extended to a covered member or a dependent of a covered 
member.
    ``(c) Mandatory Loan Disclosures.--
            ``(1) Information required.--With respect to any 
        extension of consumer credit (including any consumer 
        credit originated or extended through the internet) to 
        a covered member or a dependent of a covered member, a 
        creditor shall provide to the member or dependent the 
        following information orally and in writing before the 
        issuance of the credit:
                    ``(A) A statement of the annual percentage 
                rate of interest applicable to the extension of 
                credit.
                    ``(B) Any disclosures required under the 
                Truth in Lending Act (15 U.S.C. 1601 et seq.).
                    ``(C) A clear description of the payment 
                obligations of the member or dependent, as 
                applicable.
            ``(2) Terms.--Such disclosures shall be presented 
        in accordance with terms prescribed by the regulations 
        issued by the Board of Governors of the Federal Reserve 
        System to implement the Truth in Lending Act (15 U.S.C. 
        1601 et seq.).
    ``(d) Preemption.--
            ``(1) Inconsistent laws.--Except as provided in 
        subsection (f)(2), this section preempts any State or 
        Federal law, rule, or regulation, including any State 
        usury law, to the extent that such law, rule, or 
        regulation is inconsistent with this section, except 
        that this section shall not preempt any such law, rule, 
        or regulation that provides protection to a covered 
        member or a dependent of such a member in addition to 
        the protection provided by this section.
            ``(2) Different treatment under state law of 
        members and dependents prohibited.--States shall not--
                    ``(A) authorize creditors to charge covered 
                members and their dependents annual percentage 
                rates of interest for loans higher than the 
                legal limit for residents of the State; or
                    ``(B) permit violation or waiver of any 
                State consumer lending protections for the 
                benefit of residents of the State on the basis 
                of nonresident or military status of a covered 
                member or dependent of such a member, 
                regardless of the member's or dependent's 
                domicile or permanent home of record.
    ``(e) Limitations.--It shall be unlawful for any creditor 
to extend consumer credit to a covered member or a dependent of 
such a member with respect to which--
            ``(1) the creditor rolls over, renews, repays, 
        refinances, or consolidates any consumer credit 
        extended to the borrower by the same creditor with the 
        proceeds of other credit extended to the same covered 
        member or a dependent;
            ``(2) the borrower is required to waive the 
        borrower's right to legal recourse under any otherwise 
        applicable provision of State or Federal law, including 
        any provision of the Servicemembers Civil Relief Act;
            ``(3) the creditor requires the borrower to submit 
        to arbitration or imposes onerous legal notice 
        provisions in the case of a dispute;
            ``(4) the creditor demands unreasonable notice from 
        the borrower as a condition for legal action;
            ``(5) the creditor uses a check or other method of 
        access to a deposit, savings, or other financial 
        account maintained by the borrower, or the title of a 
        vehicle as security for the obligation;
            ``(6) the creditor requires as a condition for the 
        extension of credit that the borrower establish an 
        allotment to repay an obligation; or
            ``(7) the borrower is prohibited from prepaying the 
        loan or is charged a penalty or fee for prepaying all 
        or part of the loan.
    ``(f) Penalties and Remedies.--
            ``(1) Misdemeanor.--A creditor who knowingly 
        violates this section shall be fined as provided in 
        title 18, or imprisoned for not more than one year, or 
        both.
            ``(2) Preservation of other remedies.--The remedies 
        and rights provided under this section are in addition 
        to and do not preclude any remedy otherwise available 
        under law to the person claiming relief under this 
        section, including any award for consequential and 
        punitive damages.
            ``(3) Contract void.--Any credit agreement, 
        promissory note, or other contract prohibited under 
        this section is void from the inception of such 
        contract.
            ``(4) Arbitration.--Notwithstanding section 2 of 
        title 9, or any other Federal or State law, rule, or 
        regulation, no agreement to arbitrate any dispute 
        involving the extension of consumer credit shall be 
        enforceable against any covered member or dependent of 
        such a member, or any person who was a covered member 
        or dependent of that member when the agreement was 
        made.
    ``(g) Servicemembers Civil Relief Act Protections 
Unaffected.--Nothing in this section may be construed to limit 
or otherwise affect the applicability of section 207 of the 
Servicemembers Civil Relief Act (50 U.S.C. App. 527).
    ``(h) Regulations.--(1) The Secretary of Defense shall 
prescribe regulations to carry out this section.
    ``(2) Such regulations shall establish the following:
            ``(A) Disclosures required of any creditor that 
        extends consumer credit to a covered member or 
        dependent of such a member.
            ``(B) The method for calculating the applicable 
        annual percentage rate of interest on such obligations, 
        in accordance with the limit established under this 
        section.
            ``(C) A maximum allowable amount of all fees, and 
        the types of fees, associated with any such extension 
        of credit, to be expressed and disclosed to the 
        borrower as a total amount and as a percentage of the 
        principal amount of the obligation, at the time at 
        which the transaction is entered into.
            ``(D) Definitions of `creditor' under paragraph (5) 
        and `consumer credit' under paragraph (6) of subsection 
        (i), consistent with the provisions of this section.
            ``(E) Such other criteria or limitations as the 
        Secretary of Defense determines appropriate, consistent 
        with the provisions of this section.
    ``(3) In prescribing regulations under this subsection, the 
Secretary of Defense shall consult with the following:
            ``(A) The Federal Trade Commission.
            ``(B) The Board of Governors of the Federal Reserve 
        System.
            ``(C) The Office of the Comptroller of the 
        Currency.
            ``(D) The Federal Deposit Insurance Corporation.
            ``(E) The Office of Thrift Supervision.
            ``(F) The National Credit Union Administration
            ``(G) The Treasury Department.
    ``(i) Definitions.--In this section:
            ``(1) Covered member.--The term `covered member' 
        means a member of the armed forces who is--
                    ``(A) on active duty under a call or order 
                that does not specify a period of 30 days or 
                less; or
                    ``(B) on active Guard and Reserve Duty.
            ``(2) Dependent.--The term `dependent', with 
        respect to a covered member, means--
                    ``(A) the member's spouse;
                    ``(B) the member's child (as defined in 
                section 101(4) of title 38); or
                    ``(C) an individual for whom the member 
                provided more than one-half of the individual's 
                support for 180 days immediately preceding an 
                extension of consumer credit covered by this 
                section.
            ``(3) Interest.--The term `interest' includes all 
        cost elements associated with the extension of credit, 
        including fees, service charges, renewal charges, 
        credit insurance premiums, any ancillary product sold 
        with any extension of credit to a servicemember or the 
        servicemember's dependent, as applicable, and any other 
        charge or premium with respect to the extension of 
        consumer credit.
            ``(4) Annual percentage rate.--The term `annual 
        percentage rate' has the same meaning as in section 107 
        of the Truth and Lending Act (15 U.S.C. 1606), as 
        implemented by regulations of the Board of Governors of 
        the Federal Reserve System. For purposes of this 
        section, such term includes all fees and charges, 
        including charges and fees for single premium credit 
        insurance and other ancillary products sold in 
        connection with the credit transaction, and such fees 
        and charges shall be included in the calculation of the 
        annual percentage rate.
            ``(5) Creditor.--The term `creditor' means a 
        person--
                    ``(A) who--
                            ``(i) is engaged in the business of 
                        extending consumer credit; and
                            ``(ii) meets such additional 
                        criteria as are specified for such 
                        purpose in regulations prescribed under 
                        this section; or
                    ``(B) who is an assignee of a person 
                described in subparagraph (A) with respect to 
                any consumer credit extended.
            ``(6) Consumer credit.--The term `consumer credit' 
        has the meaning provided for such term in regulations 
        prescribed under this section, except that such term 
        does not include (A) a residential mortgage, or (B) a 
        loan procured in the course of purchasing a car or 
        other personal property, when that loan is offered for 
        the express purpose of financing the purchase and is 
        secured by the car or personal property procured.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such title is amended by adding at the end the 
following new item:

``987. Terms of consumer credit extended to members and dependents: 
          limitations.''.

    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph 
        (2), section 987 of title 10, United States Code, as 
        added by subsection (a), shall take effect on October 
        1, 2007, or on such earlier date as may be prescribed 
        by the Secretary of Defense, and shall apply with 
        respect to extensions of consumer credit on or after 
        such effective date.
            (2) Authority to prescribe regulations.--Subsection 
        (h) of such section shall take effect on the date of 
        the enactment of this Act.
            (3) Publication of earlier effective date.--If the 
        Secretary of Defense prescribes an effective date for 
        section 987 of title 10, United States Code, as added 
        by subsection (a), earlier than October 1, 2007, the 
        Secretary shall publish that date in the Federal 
        Register. Such publication shall be made not less than 
        90 days before that earlier effective date.
    (d) Interim Regulations.--The Secretary of Defense may 
prescribe interim regulations as necessary to carry out such 
section. For the purpose of prescribing such interim 
regulations, the Secretary is excepted from compliance with the 
notice-and-comment requirements of section 553 of title 5, 
United States Code. All interim rules prescribed under the 
authority of this subsection that are not earlier superseded by 
final rules shall expire no later than 270 days after the 
effective date of section 987 of title 10, United States Code, 
as added by this section.

SEC. 671. ENHANCEMENT OF AUTHORITY TO WAIVE CLAIMS FOR OVERPAYMENT OF 
                    PAY AND ALLOWANCES AND TRAVEL AND TRANSPORTATION 
                    ALLOWANCES.

    (a) Maximum Waiver Amount; Time for Exercise of 
Authority.--Section 2774 of title 10, United States Code, is 
amended--
            (1) in subsection (a)(2)(A), by striking ``$1,500'' 
        and inserting ``$10,000''; and
            (2) in subsection (b)(2), by striking ``three 
        years'' and inserting ``five years''.
    (b) Conforming Amendments Regarding National Guard.--
Section 716 of title 32, United States Code, is amended--
            (1) in subsection (a)(2)(A), by striking ``$1,500'' 
        and inserting ``$10,000''; and
            (2) in subsection (b)(2), by striking ``three 
        years'' and inserting ``five years''.
    (c) Effective Date.--The amendments made by this section 
shall take effect on March 1, 2007.

SEC. 672. EXCEPTION FOR NOTICE TO CONSUMER REPORTING AGENCIES REGARDING 
                    DEBTS OR ERRONEOUS PAYMENTS PENDING A DECISION TO 
                    WAIVE, REMIT, OR CANCEL.

    (a) Exception.--Section 2780(b) of title 10, United States 
Code, is amended--
            (1) by striking ``The Secretary'' and inserting 
        ``(1) Except as provided in paragraph (2), the 
        Secretary of Defense''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) No disclosure shall be made under paragraph (1) with 
respect to an indebtedness while a decision regarding waiver of 
collection of the indebtedness is pending under section 2774 of 
this title or section 716 of title 32, or while a decision 
regarding remission or cancellation of the indebtedness is 
pending under section 4837, 6161, or 9837 of this title, unless 
the Secretary concerned (as defined in section 101(5) of title 
37) determines that disclosure under that paragraph pending 
such decision is in the best interests of the United States.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this 
        section shall take effect on March 1, 2007.
            (2) Application to prior actions.--Paragraph (2) of 
        section 2780(b) of title 10, United States Code, as 
        added by subsection (a), shall not be construed to 
        apply to or invalidate any action taken under such 
        section before March 1, 2007.
    (c) Report.--Not later than March 1, 2007, the Secretary of 
Defense shall submit to the congressional defense committees a 
report on the requirement in section 2780(b) of title 10, 
United States Code, to disclose to consumer reporting agencies 
in accordance with section 3711 of title 31, United States 
Code, information concerning certain indebtedness owed to the 
United States. The report shall include the following:
            (1) The total number of members of the Armed Forces 
        whose indebtedness has been disclosed to consumer 
        reporting agencies under section 2780(b), United States 
        Code, during the period beginning on January 1, 2003, 
        and ending on June 30, 2006.
            (2) The circumstances under which a decision to 
        recover the indebtedness was made, rather than a 
        decision to waive, remit, or cancel the indebtedness 
        under the provisions of law referred to in paragraph 
        (2) of such section, as added by subsection (a), and 
        the title of the person who made the decision.
            (3) The cost of contracts for collection services 
        to recover indebtedness owed to the United States that 
        is delinquent.
            (4) An evaluation of whether or not such contracts, 
        and the practice of disclosing to consumer reporting 
        agencies the identity of members of the Armed Forces 
        who owe a delinquent debt to the United States, has 
        been effective in reducing indebtedness to the United 
        States.
            (5) Such recommendations as the Secretary considers 
        appropriate regarding the continuing disclosure of such 
        information with respect to members of the Armed 
        Forces.

SEC. 673. EXPANSION AND ENHANCEMENT OF AUTHORITY TO REMIT OR CANCEL 
                    INDEBTEDNESS OF MEMBERS AND FORMER MEMBERS OF THE 
                    ARMED FORCES INCURRED ON ACTIVE DUTY.

    (a) Department of the Army.--
            (1) Coverage of all members and former members.--
        Subsection (a) of section 4837 of title 10, United 
        States Code, is amended by striking ``of a member'' and 
        all that follows through ``on active duty'' and 
        inserting ``of a person to the United States or any 
        instrumentality of the United States incurred while the 
        person was serving on active duty as a member of the 
        Army''.
            (2) Repeal of limitation on time for exercise of 
        authority.--Such section is further amended--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsections (c) and 
                (d) as subsections (b) and (c), respectively.
            (3) Repeal of termination of modified authority.--
        Paragraph (3) of section 683(a) of the National Defense 
        Authorization Act for Fiscal Year 2006 (Public Law 109-
        163; 119 Stat. 3322; 10 U.S.C. 4837 note) is repealed.
    (b) Department of the Navy.--
            (1) Coverage of all members and former members.--
        Section 6161 of title 10, United States Code, is 
        amended by striking ``of a member'' and all that 
        follows through ``on active duty'' and inserting ``of a 
        person to the United States or any instrumentality of 
        the United States incurred while the person was serving 
        on active duty as a member of the naval service''.
            (2) Repeal of limitation on time for exercise of 
        authority.--Such section is further amended--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsections (c) and 
                (d) as subsections (b) and (c), respectively.
            (3) Repeal of termination of modified authority.--
        Paragraph (3) of section 683(b) of the National Defense 
        Authorization Act for Fiscal Year 2006 (119 Stat. 3323; 
        10 U.S.C. 6161 note) is repealed.
    (c) Department of the Air Force.--
            (1) Coverage of all members and former members.--
        Subsection (a) of section 9837 of title 10, United 
        States Code, is amended by striking ``of a member'' and 
        all that follows through ``on active duty'' and 
        inserting ``of a person to the United States or any 
        instrumentality of the United States incurred while the 
        person was serving on active duty as a member of the 
        Air Force''.
            (2) Repeal of limitation on time for exercise of 
        authority.--Such section is further amended--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsections (c) and 
                (d) as subsections (b) and (c), respectively.
            (3) Repeal of termination of modified authority.--
        Paragraph (3) of section 683(c) of the National Defense 
        Authorization Act for Fiscal Year 2006 (119 Stat. 3324; 
        10 U.S.C. 9837 note) is repealed.
    (d) Deadline for Regulations.--The Secretary of Defense 
shall prescribe the regulations required for purposes of 
sections 4837, 6161, and 9837 of title 10, United States Code, 
as amended by this section, not later than March 1, 2007.
    (e) Clarifying and Editorial Amendments.--
            (1) Secretary of the army.--Subsection (a) of 
        section 4837 of title 10, United States Code, as 
        amended by subsection (a)(1), is further amended--
                    (A) by striking ``If the'' and all that 
                follows through ``States, the Secretary'' and 
                inserting ``The Secretary of the Army''; and
                    (B) by inserting before the period at the 
                end ``, but only if the Secretary considers 
                such action to be in the best interest of the 
                United States''.
            (2) Secretary of the navy.--Subsection (a) of 
        section 6161 of such title, as amended by subsection 
        (b)(1), is further amended--
                    (A) by striking ``If the'' and all that 
                follows through ``States, the Secretary'' and 
                inserting ``The Secretary of the Navy''; and
                    (B) by inserting before the period at the 
                end ``, but only if the Secretary considers 
                such action to be in the best interest of the 
                United States''.
            (3) Secretary of the air force.--Subsection (a) of 
        section 9837 of such title, as amended by subsection 
        (c)(1), is further amended--
                    (A) by striking ``If the'' and all that 
                follows through ``States, the Secretary'' and 
                inserting ``The Secretary of the Air Force''; 
                and
                    (B) by inserting before the period at the 
                end ``, but only if the Secretary considers 
                such action to be in the best interest of the 
                United States''.

SEC. 674. PHASED RECOVERY OF OVERPAYMENTS OF PAY MADE TO MEMBERS OF THE 
                    UNIFORMED SERVICES.

    (a) Phased Recovery Required; Maximum Monthly 
Installment.--Subsection (c) of section 1007 of title 37, 
United States Code, is amended by adding at the end the 
following new paragraph:
    ``(3) If the indebtedness of a member of the uniformed 
services to the United States is due to the overpayment of pay 
or allowances to the member through no fault of the member, the 
amount of the overpayment shall be recovered in monthly 
installments. The amount deducted from the pay of the member 
for a month to recover the overpayment amount may not exceed 20 
percent of the member's pay for that month unless the member 
requests or consents to collection of the overpayment at an 
accelerated rate.''.
    (b) Recovery Delay for Injured Members.--Such subsection is 
further amended by inserting after paragraph (3), as added by 
subsection (a), the following new paragraph:
    ``(4) If a member of the uniformed services is injured or 
wounded under the circumstances described in section 
310(a)(2)(C) of this title or, while in the line of duty, 
incurs a wound, injury, or illness in a combat operation or 
combat zone designated by the Secretary of Defense, any 
overpayment of pay or allowances made to the member while the 
member recovers from the wound, injury, or illness may not be 
deducted from the member's pay until--
            ``(A) the end of the 90-day period beginning on the 
        date on which the member is notified of the 
        overpayment; or
            ``(B) such earlier date as may be requested or 
        agreed to by the member.''.
    (c) Conforming Amendments.--Such subsection is further 
amended--
            (1) by inserting ``(1)'' before ``Under 
        regulations'';
            (2) by striking ``his pay'' both places it appears 
        and inserting ``the member's pay'';
            (3) by striking ``However, after'' and inserting 
        the following:
    ``(2) After''; and
            (4) by inserting ``by a member of the uniformed 
        services'' after ``actually received''.

SEC. 675. JOINT FAMILY SUPPORT ASSISTANCE PROGRAM.

    (a) Program Required.--The Secretary of Defense shall carry 
out a joint family support assistance program for the purpose 
of providing to families of members of the Armed Forces the 
following types of assistance:
            (1) Financial and material assistance.
            (2) Mobile support services.
            (3) Sponsorship of volunteers and family support 
        professionals for the delivery of support services.
            (4) Coordination of family assistance programs and 
        activities provided by Military OneSource, Military 
        Family Life Consultants, counselors, the Department of 
        Defense, other Federal agencies, State and local 
        agencies, and non-profit entities.
            (5) Facilitation of discussion on military family 
        assistance programs, activities, and initiatives 
        between and among the organizations, agencies, and 
        entities referred to in paragraph (4).
            (6) Such other assistance that the Secretary 
        considers appropriate.
    (b) Locations.--The Secretary of Defense shall carry out 
the program in not more than six areas of the United States 
selected by the Secretary. Up to three of the areas selected 
for the program shall be areas that are geographically isolated 
from military installations.
    (c) Resources and Volunteers.--The Secretary of Defense 
shall provide personnel and other resources of the Department 
of Defense necessary for the implementation and operation of 
the program and may accept and utilize the services of non-
Government volunteers and non-profit entities under the 
program.
    (d) Procedures.--The Secretary of Defense shall establish 
procedures for the operation of the program and for the 
provision of assistance to families of members of the Armed 
Forces under the program.
    (e) Relation to Family Support Centers.--The program is not 
intended to operate in lieu of existing family support centers, 
but is instead intended to augment the activities of the family 
support centers.
    (f) Implementation Plan.--
            (1) Plan required.--Not later than 90 days after 
        the date on which funds are first obligated for the 
        program, the Secretary of Defense shall submit to the 
        congressional defense committees a report setting forth 
        a plan for the implementation of the program.
            (2) Elements.--The plan required under paragraph 
        (1) shall include the following:
                    (A) A description of the actions taken to 
                select the areas in which the program will be 
                conducted.
                    (B) A description of the procedures 
                established under subsection (d).
                    (C) A review of proposed actions to be 
                taken under the program to improve coordination 
                of family assistance program and activities 
                between and among the Department of Defense, 
                other Federal agencies, State and local 
                agencies, and non-profit entities.
    (g) Report.--
            (1) Report required.--Not later than 270 days after 
        the date on which funds are first obligated for the 
        program, the Secretary of Defense shall submit to the 
        congressional defense committees a report on the 
        program.
            (2) Elements.--The report shall include the 
        following:
                    (A) A description of the program, including 
                the areas in which the program is conducted, 
                the procedures established under subsection (d) 
                for operation of the program, and the 
                assistance provided through the program for 
                families of members of the Armed Forces.
                    (B) An assessment of the effectiveness of 
                the program in providing assistance to families 
                of members of the Armed Forces.
                    (C) An assessment of the advisability of 
                extending the program or making it permanent.
    (h) Duration.--The authority to carry out the program shall 
expire at the end of the three-year period beginning on the 
date on which funds are first obligated for the program.

SEC. 676. SPECIAL WORKING GROUP ON TRANSITION TO CIVILIAN EMPLOYMENT OF 
                    NATIONAL GUARD AND RESERVE MEMBERS RETURNING FROM 
                    DEPLOYMENT IN OPERATION IRAQI FREEDOM OR OPERATION 
                    ENDURING FREEDOM.

    (a) Working Group Required.--The Secretary of Defense shall 
establish within the Department of Defense a working group to 
identify and assess the needs of members of the National Guard 
and Reserve returning from deployment in Operation Iraqi 
Freedom or Operation Enduring Freedom in making the transition 
to civilian employment on their return from such deployment.
    (b) Members.--
            (1) Appointment.--Subject to paragraph (2), the 
        Secretary of Defense shall appoint the members of the 
        working group. The Secretary of Defense shall attempt 
        to achieve a balance of members on the working group 
        from among employees of the following agencies:
                    (A) The Department of Defense.
                    (B) The Department of Veterans Affairs.
                    (C) The Department of Labor.
            (2) Concurrence.--The appointment of employees of 
        the Department of Veterans Affairs and the Department 
        of Labor under paragraph (1) shall be subject to the 
        concurrence of the Secretary of Veterans Affairs and 
        the Secretary of Labor, respectively.
    (c) Responsibilities.--The working group shall--
            (1) identify and assess the needs of members of the 
        National Guard and Reserve returning from deployment in 
        Operation Iraqi Freedom or Operation Enduring Freedom 
        in making the transition to civilian employment on 
        their return from deployment, including the needs of--
                    (A) members who were self-employed before 
                deployment and seek to return to such 
                employment after deployment;
                    (B) members who were students before 
                deployment and seek to return to school or 
                commence employment after deployment;
                    (C) members who have experienced multiple 
                recent deployments; and
                    (D) members who have been wounded or 
                injured during deployment;
            (2) identify and assess the extent to which such 
        members receive promotions on their return from 
        deployment in Operation Iraqi Freedom or Operation 
        Enduring Freedom or experience constructive termination 
        by their employers as a result of such deployment; and
            (3) develop recommendations on means of improving 
        assistance to such members in meeting the needs 
        identified in paragraph (1) on their return from 
        deployment in Operation Iraqi Freedom or Operation 
        Enduring Freedom.
    (d) Consultation.--In carrying out its responsibilities 
under subsection (c), the working group shall consult with the 
following:
            (1) Employees of the Small Business Administration.
            (2) Representatives of employers that employ, and 
        associations of employers whose members employ, members 
        of the National Guard and Reserve deployed in Operation 
        Iraqi Freedom or Operation Enduring Freedom.
            (3) Representatives of employee assistance 
        organizations.
            (4) Representatives of organizations that assist 
        wounded or injured members of the National Guard and 
        Reserves in finding or sustaining employment.
            (5) Representatives of such other public or private 
        organizations and entities as the working group 
        considers appropriate.
    (e) Report.--
            (1) In general.--Not later than one year after the 
        date of the enactment of this Act, the working group 
        established under subsection (a) shall submit to the 
        Secretary of Defense and Congress a report on its 
        activities under subsection (c).
            (2) Elements.--The report shall include the 
        following:
                    (A) The results of the identifications and 
                assessments required under subsection (c).
                    (B) The recommendations developed under 
                subsection (c)(3), including recommendations on 
                the following:
                            (i) The provision of outreach and 
                        training to employers, employment 
                        assistance organizations, and 
                        associations of employers on the 
                        employment and transition needs of 
                        members of the National Guard and 
                        Reserve returning from deployment in 
                        Operation Iraqi Freedom or Operation 
                        Enduring Freedom.
                            (ii) The provision of outreach and 
                        training to employers, employment 
                        assistance organizations, and 
                        associations of employers on the needs 
                        of family members of such members.
                            (iii) The improvement of 
                        collaboration between the 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 available 
        to the public, including through the Internet website 
        of the Department of Defense.
    (f) Termination.--The working group shall terminate on the 
date that is two years after the date of the enactment of this 
Act.
    (g) Employment Assistance Organization Defined.--In this 
section, the term ``employment assistance organization'' means 
an organization or entity, whether public or private, that 
provides assistance to individuals in finding or retaining 
employment, including organizations and entities under military 
career support programs.

SEC. 677. AUDIT OF PAY ACCOUNTS OF MEMBERS OF THE ARMY EVACUATED FROM A 
                    COMBAT ZONE FOR INPATIENT CARE.

    (a) Audit Required.--The Secretary of the Army shall 
conduct a complete audit of the pay accounts of each member of 
the Army wounded or injured in a combat zone who was evacuated 
from a theater of operations for inpatient care during the 
period beginning on May 1, 2005, and ending on April 30, 2006.
    (b) Report on Results of Audit.--
            (1) Report required.--Not later than 120 days after 
        the date of the enactment of this Act, the Secretary 
        shall submit to the congressional defense committees a 
        report on the audit conducted under subsection (a).
            (2) Identification of members.--The report shall 
        include a list of each member of the Army described in 
        subsection (a) identified, in a manner that protects 
        the privacy of the members, by--
                    (A) the date of the wound or injury that is 
                the basis for the inclusion of the member on 
                the list; and
                    (B) the grade of the member and unit 
                designation as of that date.
            (3) Additional report elements.--For each member 
        included on the list prepared under paragraph (2), the 
        report shall include the following:
                    (A) A statement of any underpayment of each 
                of any pay, allowance, or other monetary 
                benefit to which the member was entitled during 
                the period beginning on the date on which the 
                wound or injury was incurred and ending on 
                April 30, 2006, including basic pay, hazardous 
                duty pay, imminent danger pay, basic allowance 
                for housing, basic allowance for subsistence, 
                any family separation allowance, any tax 
                exclusion for combat duty, and any other pay, 
                allowance, or monetary benefit to which such 
                member was entitled during such period.
                    (B) A statement of any disbursements made 
                to correct underpayments made to the member, as 
                identified under subparagraph (A).
                    (C) A statement of any debts to the United 
                States collected or pending collection from the 
                member.
                    (D) A statement of any reimbursements or 
                debt relief granted to the member for a debt 
                identified under subparagraph (C).
                    (E) If the members has applied to the 
                United States for a relief of debt--
                            (i) a description of the nature of 
                        the debt for which relief was applied; 
                        and
                            (ii) a description of the 
                        disposition of the application, 
                        including--
                                    (I) if relief was granted, 
                                the date of disbursement of 
                                relief; and
                                    (II) if relief was denied, 
                                the reasons for the denial of 
                                relief.
                    (F) A report of any referral of the member 
                to a collection or credit agency.
            (4) Form of report.--The report shall be submitted 
        in unclassified form, but may include a classified 
        annex.

SEC. 678. REPORT ON ELIGIBILITY AND PROVISION OF ASSIGNMENT INCENTIVE 
                    PAY.

    Not later than 60 days after the date of the enactment of 
this Act, the Secretary of the Army shall submit to Congress a 
report--
            (1) specifying the number of members of the Army 
        National Guard and the Army Reserve adversely affected 
        by the disparate treatment afforded to members who 
        previously served under a call or order to active duty 
        under section 12304 of title 10, United States Code, in 
        determining eligibility for assignment incentive pay; 
        and
            (2) containing proposed remedies or courses of 
        action to correct this disparity, including allowing 
        time served during a call or order to active duty under 
        such section 12304 to count toward the time needed to 
        qualify for assignment incentive pay.

SEC. 679. SENSE OF CONGRESS CALLING FOR PAYMENT TO WORLD WAR II 
                    VETERANS WHO SURVIVED BATAAN DEATH MARCH.

    (a) Call for Appropriate Compensation.--It is the sense of 
Congress that--
            (1) there should be paid to each living Bataan 
        Death March survivor an appropriate amount of 
        compensation in recognition of their captivity during 
        World War II; and
            (2) in the case of a Bataan Death March survivor 
        who is deceased, but who has an unremarried surviving 
        spouse, such compensation should be paid to that 
        surviving spouse.
    (b) Bataan Death March Survivor.--In this section, the term 
``Bataan Death March survivor'' means an individual who as a 
member of the Armed Forces during World War II was captured on 
the peninsula of Bataan or island of Corregidor in the 
territory of the Philippines by Japanese forces and 
participated in and survived the Bataan Death March.

                   TITLE VII--HEALTH CARE PROVISIONS

                Subtitle A--TRICARE Program Improvements

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

                     Subtitle B--Studies and Reports

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

            Subtitle C--Planning, Programming, and Management

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

                        Subtitle D--Other Matters

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

                Subtitle A--TRICARE Program Improvements

SEC. 701. TRICARE COVERAGE FOR FORENSIC EXAMINATION FOLLOWING SEXUAL 
                    ASSAULT OR DOMESTIC VIOLENCE.

    Section 1079(a) of title 10, United States Code, is amended 
by adding at the end the following new paragraph:
            ``(17) Forensic examinations following a sexual 
        assault or domestic violence may be provided.''.

SEC. 702. AUTHORIZATION OF ANESTHESIA AND OTHER COSTS FOR DENTAL CARE 
                    FOR CHILDREN AND CERTAIN OTHER PATIENTS.

    Paragraph (1) of section 1079(a) of title 10, United States 
Code, is amended to read as follows:
            ``(1) With respect to dental care--
                    ``(A) except as provided in subparagraph 
                (B), only that care required as a necessary 
                adjunct to medical or surgical treatment may be 
                provided; and
                    ``(B) in connection with dental treatment 
                for patients with developmental, mental, or 
                physical disabilities or for pediatric patients 
                age 5 or under, only institutional and 
                anesthesia services may be provided.''.

SEC. 703. IMPROVEMENTS TO DESCRIPTIONS OF CANCER SCREENING FOR WOMEN.

    (a) Terms Related to Primary and Preventive Health Care 
Services for Women.--Section 1074d of title 10, United States 
Code, is amended--
            (1) in subsection (a)(1), by adding at the end the 
        following new sentence: ``The services described in 
        paragraphs (1) and (2) of subsection (b) shall be 
        provided under such procedures and at such intervals as 
        the Secretary of Defense shall prescribe.''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking 
                ``Papanicolaou tests (pap smear)'' and 
                inserting ``Cervical cancer screening''; and
                    (B) in paragraph (2), by striking ``Breast 
                examinations and mammography'' and inserting 
                ``Breast cancer screening''.
    (b) Terms Related to Contracts for Medical Care for Spouses 
and Children.--Section 1079(a)(2) of such title is amended--
            (1) in the matter preceding subparagraph (A), by 
        striking ``the schedule of pap smears and mammograms'' 
        and inserting ``the schedule and method of cervical 
        cancer screenings and breast cancer screenings''; and
            (2) in subparagraph (B), by striking ``pap smears 
        and mammograms'' and inserting ``cervical and breast 
        cancer screenings''.

SEC. 704. PROHIBITION ON INCREASES IN CERTAIN HEALTH CARE COSTS FOR 
                    MEMBERS OF THE UNIFORMED SERVICES.

    (a) Prohibition on Increase in Charges Under Contracts for 
Medical Care.--Section 1097(e) of title 10, United States Code, 
is amended by adding at the end the following: ``A premium, 
deductible, copayment, or other charge prescribed by the 
Secretary under this subsection may not be increased during the 
period beginning on April 1, 2006, and ending on September 30, 
2007.''.
    (b) Prohibition on Increase in Charges for Inpatient 
Care.--Section 1086(b)(3) of title 10, United States Code, is 
amended by inserting after ``charges for inpatient care'' the 
following: ``, except that in no case may the charges for 
inpatient care for a patient exceed $535 per day during the 
period beginning on April 1, 2006, and ending on September 30, 
2007.''.
    (c) Prohibition on Increase in Premiums Under TRICARE 
Coverage for Certain Members in the Selected Reserve.--Section 
1076d(d)(3) of title 10, United States Code, is amended by 
adding at the end the following: ``During the period beginning 
on April 1, 2006, and ending on September 30, 2007, the monthly 
amount of the premium may not be increased above the amount in 
effect for the month of March 2006.''.
    (d) Prohibition on Increase in Premiums Under TRICARE 
Coverage for Members of the Ready Reserve.--Section 1076b(e)(3) 
of title 10, United States Code, is amended by adding at the 
end the following: ``During the period beginning on April 1, 
2006, and ending on September 30, 2007, the monthly amount of a 
premium under paragraph (2) may not be increased above the 
amount in effect for the first month health care is provided 
under this section as amended by Public Law 109-163.''.

SEC. 705. DEMONSTRATION PROJECT ON COVERAGE OF SELECTED OVER-THE-
                    COUNTER DRUGS UNDER THE PHARMACY BENEFITS PROGRAM.

    (a) Requirement To Conduct Demonstration.--The Secretary of 
Defense shall conduct a demonstration project under section 
1092 of title 10, United States Code, to allow particular over-
the-counter drugs to be included on the uniform formulary under 
section 1074g of such title.
    (b) Elements of Demonstration Project.--
            (1) Inclusion of certain over-the-counter drugs.--
        (A) As part of the demonstration project, the Secretary 
        shall modify uniform formulary specifications under 
        section 1074g(a) of such title to include an over-the-
        counter drug (referred to in this section as an ``OTC 
        drug'') on the uniform formulary if the Pharmacy and 
        Therapeutics Committee finds that the OTC drug is cost-
        effective and therapeutically equivalent to a 
        prescription drug. If the Pharmacy and Therapeutics 
        Committee makes such a finding, the OTC drug shall be 
        considered to be in the same therapeutic class of 
        pharmaceutical agents as the prescription drug.
            (B) An OTC drug shall be made available to a 
        beneficiary through the demonstration project, but only 
        if--
                    (i) the beneficiary has a prescription for 
                a drug requiring a prescription; and
                    (ii) pursuant to subparagraph (A), the OTC 
                drug--
                            (I) is on the uniform formulary; 
                        and
                            (II) has been determined to be 
                        therapeutically equivalent to the 
                        prescription drug.
            (2) Conduct through military facilities, retail 
        pharmacies, or mail order program.--The Secretary shall 
        conduct the demonstration project through at least two 
        of the means described in subparagraph (E) of section 
        1074g(a)(2)(E) of such title through which OTC drugs 
        are provided and may conduct the demonstration project 
        throughout the entire pharmacy benefits program or at a 
        limited number of sites. If the project is conducted at 
        a limited number of sites, the number of sites shall be 
        not less than five in each TRICARE region for each of 
        the two means described in such subparagraph.
            (3) Period of demonstration.--The Secretary shall 
        provide for conducting the demonstration project for a 
        period of time necessary to evaluate the feasibility 
        and cost effectiveness of the demonstration. Such 
        period shall be at least as long as the period covered 
        by pharmacy contracts in existence on the date of the 
        enactment of this Act (including any extensions of the 
        contracts), or five years, whichever is shorter.
            (4) Implementation deadline.--Implementation of the 
        demonstration project shall begin not later than May 1, 
        2007.
    (c) Evaluation of Demonstration Project.--The Secretary 
shall evaluate the demonstration project for the following:
            (1) The costs and benefits of providing OTC drugs 
        under the pharmacy benefits program in each of the 
        means chosen by the Secretary to conduct the 
        demonstration project.
            (2) The clinical effectiveness of providing OTC 
        drugs under the pharmacy benefits program.
            (3) Customer satisfaction with the demonstration 
        project.
    (d) Report.--Not later than two years after implementation 
of the demonstration project begins, the Secretary shall submit 
to the Committees on Armed Services of the Senate and House of 
Representatives a report on the demonstration project. The 
report shall contain--
            (1) the evaluation required by subsection (c);
            (2) recommendations for improving the provision of 
        OTC drugs under the pharmacy benefits program; and
            (3) recommendations on whether permanent authority 
        should be provided to cover OTC drugs under the 
        pharmacy benefits program.
    (e) Continuation of Demonstration Project.--If the 
Secretary recommends in the report under subsection (d) that 
permanent authority should be provided, the Secretary may 
continue the demonstration project for up to one year after 
submitting the report.
    (f) Definitions.--In this section:
            (1) The term ``drug'' means a drug, including a 
        biological product, within the meaning of section 
        1074g(f)(2) of title 10, United States Code.
            (2) The term ``OTC drug'' has the meaning indicated 
        for such term in subsection (b)(1)(A).
            (3) The term ``over-the-counter drug'' means a drug 
        that is not subject to section 503(b) of the Federal 
        Food, Drug, and Cosmetic Act.
            (4) The term ``prescription drug'' means a drug 
        that is subject to section 503(b) of the Federal Food, 
        Drug, and Cosmetic Act.

SEC. 706. EXPANDED ELIGIBILITY OF SELECTED RESERVE MEMBERS UNDER 
                    TRICARE PROGRAM.

    (a) General Eligibility.--Subsection (a) of section 1076d 
of title 10, United States Code, is amended--
            (1) by striking ``(a) Eligibility.--A member'' and 
        inserting ``(a) Eligibility.--(1) Except as provided in 
        paragraph (2), a member'';
            (2) by striking ``after the member completes'' and 
        all that follows through ``one or more whole years 
        following such date''; and
            (3) by adding at the end the following new 
        paragraph:
    ``(2) Paragraph (1) does not apply to a member who is 
enrolled, or is eligible to enroll, in a health benefits plan 
under chapter 89 of title 5.''.
    (b) Condition for Termination of Eligibility.--Subsection 
(b) of such section is amended--
            (1) by striking ``(b) Period of Coverage.--(1) 
        TRICARE Standard'' and all that follows through ``(4) 
        Eligibility'' and inserting ``(b) Termination of 
        Eligibility Upon Termination of Service.--
        Eligibility''; and
            (2) by striking paragraph (5).
    (c) Conforming Amendments.--
            (1) Such section is further amended--
                    (A) by striking subsection (e);
                    (B) by redesignating subsection (g) as 
                subsection (e) and transferring such subsection 
                within such section so as to appear following 
                subsection (d); and
                    (C) by striking paragraph (3) of subsection 
                (f).
            (2) The heading for such section is amended to read 
        as follows:

``Sec. 1076d. TRICARE program: TRICARE standard coverage for members of 
                    the Selected Reserve''.

    (d) Repeal of Obsolete Provision.--Effective October 1, 
2007, section 1076b of title 10, United States Code, is 
repealed.
    (e) Clerical Amendments.--Effective October 1, 2007, the 
table of sections at the beginning of chapter 55 of title 10, 
United States Code, is amended--
            (1) by striking the item relating to section 1076b; 
        and
            (2) by striking the item relating to section 1076d 
        and inserting the following:

``1076d. TRICARE program: TRICARE Standard coverage for members of the 
          Selected Reserve.''.

    (f) Savings Provision.--Enrollments in TRICARE Standard 
that are in effect on the day before the date of the enactment 
of this Act under section 1076d of title 10, United States 
Code, as in effect on such day, shall be continued until 
terminated after such day under such section 1076d as amended 
by this section.
    (g) Effective Date.--The Secretary of Defense shall ensure 
that health care under TRICARE Standard is provided under 
section 1076d of title 10, United States Code, as amended by 
this section, beginning not later than October 1, 2007.

SEC. 707. RELATIONSHIP BETWEEN THE TRICARE PROGRAM AND EMPLOYER-
                    SPONSORED GROUP HEALTH CARE PLANS.

    (a) In General.--Chapter 55 of title 10, United States 
Code, is amended by inserting after section 1097b the following 
new section:

``Sec. 1097c. TRICARE program: relationship with employer-sponsored 
                    group health plans

    ``(a) Prohibition on Financial Incentives Not to Enroll in 
a Group Health Plan.--(1) Except as provided in this 
subsection, the provisions of section 1862(b)(3)(C) of the 
Social Security Act shall apply with respect to financial or 
other incentives for a TRICARE-eligible employee not to enroll 
(or to terminate enrollment) under a health plan which would 
(in the case of such enrollment) be a primary plan under 
sections 1079(j)(1) and 1086(g) of this title in the same 
manner as such section 1862(b)(3)(C) applies to financial or 
other incentives for an individual entitled to benefits under 
title XVIII of the Social Security Act not to enroll (or to 
terminate enrollment) under a group health plan or a large 
group health plan which would (in the case of enrollment) be a 
primary plan (as defined in section 1862(b)(2)(A) of such Act).
    ``(2)(A) The Secretary of Defense may by regulation adopt 
such additional exceptions to the prohibition referenced and 
applied under paragraph (1) as the Secretary deems appropriate 
and such paragraph (1) shall be implemented taking into account 
the adoption of such exceptions.
    ``(B) The Secretary of Defense and the Secretary of Health 
and Human Services are authorized to enter into agreements for 
carrying out this subsection. Any such agreement shall provide 
that any expenses incurred by the Secretary of Health and Human 
Services pertaining to carrying out this subsection shall be 
reimbursed by the Secretary of Defense.
    ``(C) Authorities of the Inspector General of the 
Department of Defense shall be available for oversight and 
investigations of responsibilities of employers and other 
entities under this subsection.
    ``(D) Information obtained under section 1095(k) of this 
title may be used in carrying out this subsection in the same 
manner as information obtained under section 1862(b)(5) of the 
Social Security may be used in carrying out section 1862(b) of 
such Act.
    ``(E) Any amounts collected in carrying out paragraph (1) 
shall be handled in accordance with section 1079a of this 
title.
    ``(b) Election of Tricare-Eligible Employees To Participate 
in Group Health Plan.--A TRICARE-eligible employee shall have 
the opportunity to elect to participate in the group health 
plan offered by the employer of the employee and receive 
primary coverage for health care services under the plan in the 
same manner and to the same extent as similarly situated 
employees of such employer who are not TRICARE-eligible 
employees.
    ``(c) Inapplicability to Certain Employers.--The provisions 
of this section do not apply to any employer who has fewer than 
20 employees.
    ``(d) Retention of Eligibility for Coverage Under 
Tricare.--Nothing in this section, including an election made 
by a TRICARE-eligible employee under subsection (b), shall be 
construed to affect, modify, or terminate the eligibility of a 
TRICARE-eligible employee or spouse of such employee for health 
care or dental services under this chapter in accordance with 
the other provisions of this chapter.
    ``(e) Outreach.--The Secretary of Defense shall, in 
coordination with the other administering Secretaries, conduct 
outreach to inform covered beneficiaries who are entitled to 
health care benefits under the TRICARE program of the rights 
and responsibilities of such beneficiaries and employers under 
this section.
    ``(f) Definitions.--In this section:
            ``(1) The term `employer' includes a State or unit 
        of local government.
            ``(2) The term `group health plan' means a group 
        health plan (as that term is defined in section 
        5000(b)(1) of the Internal Revenue Code of 1986 without 
        regard to section 5000(d) of the Internal Revenue Code 
        of 1986).
            ``(3) The term `TRICARE-eligible employee' means a 
        covered beneficiary under section 1086 of this title 
        entitled to health care benefits under the TRICARE 
        program.
    ``(g) Effective Date.--This section shall take effect on 
January 1, 2008.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of chapter 55 of such title is amended by inserting 
after the item relating to section 1097b the following new 
item:

``1097c. TRICARE program: relationship with employer-sponsored group 
          health plans.''.

SEC. 708. TEMPORARY PROHIBITION ON INCREASE IN COPAYMENTS UNDER RETAIL 
                    PHARMACY SYSTEM OF PHARMACY BENEFITS PROGRAM.

    (a) Temporary Prohibition.--During the period beginning on 
October 1, 2006, and ending on September 30, 2007, the cost 
sharing requirements established under paragraph (6) of section 
1074g of title 10, United States Code, for pharmaceutical 
agents available through retail pharmacies covered by paragraph 
(2)(E)(ii) of such section may not exceed amounts as follows:
            (1) In the case of generic agents, $3.
            (2) In the case of formulary agents, $9.
            (3) In the case of nonformulary agents, $22.
    (b) Transfer of Funds.--The Secretary of Defense shall 
transfer $186,000,000 from the unobligated balances of the 
National Defense Stockpile Transaction Fund to the Department 
of Defense Medicare-Eligible Retiree Health Care Fund.

                    Subtitle B--Studies and Reports

SEC. 711. DEPARTMENT OF DEFENSE TASK FORCE ON THE FUTURE OF MILITARY 
                    HEALTH CARE.

    (a) Requirement To Establish.--The Secretary of Defense 
shall establish within the Department of Defense a task force 
to examine matters relating to the future of military health 
care.
    (b) Composition.--
            (1) Members.--The task force shall consist of not 
        more than 14 members appointed by the Secretary of 
        Defense from among individuals described in paragraph 
        (2) who have demonstrated expertise in the area of 
        health care programs and costs.
            (2) Range of members.--The individuals appointed to 
        the task force shall include--
                    (A) at least one member of each of the 
                Medical Departments of the Army, Navy, and Air 
                Force;
                    (B) a number of persons from outside the 
                Department of Defense equal to the total number 
                of personnel from within the Department of 
                Defense (whether members of the Armed Forces or 
                civilian personnel) who are appointed to the 
                task force;
                    (C) persons who have experience in--
                            (i) health care actuarial 
                        forecasting;
                            (ii) health care program and budget 
                        development;
                            (iii) health care information 
                        technology;
                            (iv) health care performance 
                        measurement;
                            (v) health care quality improvement 
                        including evidence-based medicine; and
                            (vi) women's health;
                    (D) the senior medical advisor to the 
                Chairman of the Joint Chiefs of Staff;
                    (E) the Director of Defense Procurement and 
                Acquisition Policy in the Office of the Under 
                Secretary of Defense for Acquisition, 
                Technology, and Logistics;
                    (F) at least one member from the Defense 
                Business Board;
                    (G) at least one representative from an 
                organization that advocates on behalf of active 
                duty and retired members of the Armed Forces 
                who has experience in health care; and
                    (H) at least one member from the Institute 
                of Medicine.
            (3) Individuals appointed outside the department of 
        defense.--
                    (A) Individuals appointed to the task force 
                from outside the Department of Defense may 
                include officers or employees of other 
                departments or agencies of the Federal 
                Government, officers or employees of State and 
                local governments, or individuals from the 
                private sector.
                    (B) Individuals appointed to the task force 
                from outside the Department of Defense shall 
                include--
                            (i) an officer or employee of the 
                        Department of Veterans Affairs; and
                            (ii) an officer or employee of the 
                        Department of Health and Human 
                        Services.
            (4) Deadline for appointment.--All appointments of 
        individuals to the task force shall be made not later 
        than 90 days after the date of the enactment of this 
        Act.
            (5) Co-chairs of task force.--There shall be two 
        co-chairs of the task force. One of the co-chairs shall 
        be designated by the Secretary of Defense at the time 
        of appointment from among the Department of Defense 
        personnel appointed to the task force. The other co-
        chair shall be selected from among the members 
        appointed from outside the Department of Defense by 
        members so appointed.
    (c) Assessment and Recommendations on the Future of 
Military Health Care.--
            (1) In general.--Not later than 12 months after the 
        date on which all members of the task force have been 
        appointed, the task force shall submit to the Secretary 
        a report containing an assessment of, and 
        recommendations for, sustaining the military health 
        care services being provided to members of the Armed 
        Forces, retirees, and their families.
            (2) Utilization of other efforts.--In preparing the 
        report, the task force shall take into consideration 
        the findings and recommendations included in the 
        Healthcare for Military Retirees Task Group of the 
        Defense Business Board, previous Government 
        Accountability Office reports, studies and reviews by 
        the Assistant Secretary of Defense for Health Affairs, 
        and any other studies or research conducted by 
        organizations regarding program and organizational 
        improvements to the military health care system.
            (3) Elements.--The assessment and recommendations 
        (including recommendations for legislative or 
        administrative action) shall include measures to 
        address the following:
                    (A) Wellness initiatives and disease 
                management programs of the Department of 
                Defense, including health risk tracking and the 
                use of rewards for wellness.
                    (B) Education programs focused on 
                prevention awareness and patient-initiated 
                health care.
                    (C) The ability to account for the true and 
                accurate cost of health care in the military 
                health system.
                    (D) Alternative health care initiatives to 
                manage patient behavior and costs, including 
                options and costs and benefits of a universal 
                enrollment system for all TRICARE users.
                    (E) The appropriate command and control 
                structure within the Department of Defense and 
                the Armed Forces to manage the military health 
                system.
                    (F) The adequacy of the military health 
                care procurement system, including methods to 
                streamline existing procurement activities.
                    (G) The appropriate mix of military and 
                civilian personnel to meet future readiness and 
                high-quality health care service requirements.
                    (H) The beneficiary and Government cost 
                sharing structure required to sustain military 
                health benefits over the long term.
                    (I) Programs focused on managing the health 
                care needs of Medicare-eligible military 
                beneficiaries.
                    (J) Efficient and cost effective contracts 
                for health care support and staffing services, 
                including performance-based requirements for 
                health care provider reimbursement.
    (d) Administrative Matters.--
            (1) Compensation.--Each member of the task force 
        who is a member of the Armed Forces or a civilian 
        officer or employee of the United States shall serve 
        without compensation (other than compensation to which 
        entitled as a member of the Armed Forces or an officer 
        or employee of the United States, as the case may be). 
        Other members of the task force shall be treated for 
        purposes of section 3161 of title 5, United States 
        Code, as having been appointed under subsection (b) of 
        such section.
            (2) Oversight.--The Under Secretary of Defense for 
        Personnel and Readiness shall oversee the activities of 
        the task force.
            (3) Administrative support.--The Washington 
        Headquarters Services of the Department of Defense 
        shall provide the task force with personnel, 
        facilities, and other administrative support as 
        necessary for the performance of the duties of the task 
        force.
            (4) Access to facilities.--The Under Secretary of 
        Defense for Personnel and Readiness shall, in 
        coordination with the Secretaries of the military 
        departments, ensure appropriate access by the task 
        force to military installations and facilities for 
        purposes of the discharge of the duties of the task 
        force.
    (e) Reports.--
            (1) Interim report.--Not later than May 31, 2007, 
        the task force shall submit to the Secretary of Defense 
        and the Committees on Armed Services of the Senate and 
        the House of Representatives an interim report on the 
        activities of the task force. At a minimum, the report 
        shall include interim findings and recommendations 
        regarding subsection (c)(3)(H), particularly with 
        regard to cost sharing under the pharmacy benefits 
        program.
            (2) Final report.--(A) The task force shall submit 
        to the Secretary of Defense a final report on its 
        activities under this section. The report shall 
        include--
                    (i) a description of the activities of the 
                task force;
                    (ii) the assessment and recommendations 
                required by subsection (c); and
                    (iii) such other matters relating to the 
                activities of the task force that the task 
                force considers appropriate.
            (B) Not later than 90 days after receipt of the 
        report under subparagraph (A), the Secretary shall 
        transmit the report to the Committees on Armed Services 
        of the Senate and the House of Representatives. The 
        Secretary may include in the transmittal such comments 
        on the report as the Secretary considers appropriate
    (f) Termination.--The task force shall terminate 90 days 
after the date on which the final report of the task force is 
transmitted to Congress under subsection (e)(2).

SEC. 712. STUDY RELATING TO CHIROPRACTIC HEALTH CARE SERVICES.

    (a) Study Required.--
            (1) Groups covered.--The Secretary of Defense shall 
        conduct a study of providing chiropractic health care 
        services and benefits to the following groups:
                    (A) All members of the uniformed services 
                on active duty and entitled to care under 
                section 1074(a) of title 10, United States 
                Code.
                    (B) All members described in subparagraph 
                (A) and their eligible dependents, and all 
                members of the Selected Reserves and their 
                eligible dependents.
                    (C) All members or former members of the 
                uniformed services who are entitled to retired 
                or retainer pay or equivalent pay and their 
                eligible dependents.
            (2) Matters examined.--
                    (A) For each group listed in subparagraphs 
                (A), (B), and (C) of paragraph (1), the study 
                shall examine the following with respect to 
                chiropractic health care services and benefits:
                            (i) The cost of providing such 
                        services and benefits.
                            (ii) The feasibility of providing 
                        such services and benefits.
                            (iii) An assessment of the health 
                        care benefits of providing such 
                        services and benefits.
                            (iv) An estimate of the potential 
                        cost savings of providing such services 
                        and benefits in lieu of other medical 
                        services.
                            (v) The identification of existing 
                        and planned health care infrastructure, 
                        including personnel, equipment, and 
                        facilities, to accommodate the 
                        provision of chiropractic health care 
                        services.
                    (B) For the members of the group listed in 
                subparagraph (A) of paragraph (1), the study 
                shall also examine the effects of providing 
                chiropractic health care services and 
                benefits--
                            (i) on the readiness of such 
                        members; and
                            (ii) on the acceleration of the 
                        return to duty of such members 
                        following an identified injury or other 
                        malady that can be appropriately 
                        treated with chiropractic health care 
                        services.
            (3) Space available costs.--The study shall also 
        include a detailed analysis of the projected costs of 
        providing chiropractic health care services on a space 
        available basis in the military treatment facilities 
        currently providing chiropractic care under section 702 
        of the Floyd D. Spence National Defense Authorization 
        Act of Fiscal Year 2001 (as enacted by Public Law 106-
        398; 10 U.S.C. 1092 note).
            (4) Eligible dependent defined.--In this section, 
        the term ``eligible dependent'' has the meaning given 
        that term in section 1076a(k) of title 10, United 
        States Code.
    (b) Report Required.--Not later than March 31, 2008, the 
Secretary of Defense shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives a 
report on the study required under subsection (a) .

SEC. 713. COMPTROLLER GENERAL AUDITS OF DEPARTMENT OF DEFENSE HEALTH 
                    CARE COSTS AND COST-SAVING MEASURES.

    (a) General Audit Required.--
            (1) In general.--The Comptroller General of the 
        United States, in cooperation with the Director of the 
        Congressional Budget Office, shall conduct an audit of 
        the Department of Defense initiative to manage future 
        medical benefits available through the Department known 
        as ``Sustain the Benefit''.
            (2) Elements.--The audit required by paragraph (1) 
        shall examine the following:
                    (A) The basis for the calculation by the 
                Department of Defense of the portion of the 
                costs of health care benefits provided by the 
                Department to beneficiaries that were paid by 
                such beneficiaries in each of 1995 and 2005, 
                including--
                            (i) a comparison of the cost to the 
                        Department of providing such benefits 
                        in each of 1995 and 2005;
                            (ii) the explanation for any 
                        increases in the costs of the 
                        Department of providing such benefits 
                        between 1995 and 2005; and
                            (iii) a comparison of the amounts 
                        paid, by category of beneficiaries, for 
                        health care benefits in 1995 with the 
                        amounts paid, by category of 
                        beneficiaries, for such benefits in 
                        2005.
                    (B) The calculations and assumptions 
                utilized by the Department in estimating the 
                savings anticipated through the implementation 
                of proposed increases in cost-sharing for 
                health care benefits beginning in 2007.
                    (C) The average annual rate of increase, 
                based on inflation, of medical costs for the 
                Department under the Defense Health Program.
                    (D) The annual rate of growth in the cost 
                of the Defense Health Program that is 
                attributable to inflation in the cost of 
                medical services over the last five years and 
                how such rate of growth compares with annual 
                rates of increases in health care premiums 
                under the Federal Employee Health Benefit 
                Program and other health care programs as well 
                as rates of growth of other health care cost 
                indices over that time.
                    (E) The assumptions utilized by the 
                Department in estimating savings associated 
                with adjustments in copayments for 
                pharmaceuticals.
                    (F) The costs of the administration of the 
                Defense Health Program and the TRICARE program 
                for all categories of beneficiaries.
    (b) Audit of Tricare Reserve Select Program.--
            (1) In general.--In addition to the audit required 
        by subsection (a), the Comptroller General shall 
        conduct an audit of the costs of the Department of 
        Defense in implementing the TRICARE Reserve Select 
        Program.
            (2) Elements.--The audit required by paragraph (1) 
        shall include an examination of the following:
                    (A) A comparison of the annual premium 
                amounts established by the Department of 
                Defense for the TRICARE Reserve Select Program 
                with the actual costs of the Department in 
                providing benefits under that program in fiscal 
                years 2004 and 2005.
                    (B) The rate of inflation of health care 
                costs of the Department during fiscal years 
                2004 and 2005, and a comparison of that rate of 
                inflation with the annual increase in premiums 
                under the TRICARE Reserve Select Program in 
                January 2006.
                    (C) A comparison of the financial and 
                health-care utilization assumptions utilized by 
                the Department in establishing premiums under 
                the TRICARE Reserve Select Program with actual 
                experiences under that program in the first 
                year of the implementation of that program.
            (3) Tricare reserve select program defined.--In 
        this section, the term ``TRICARE Reserve Select 
        Program'' means the program carried out under section 
        1076d of title 10, United States Code.
    (c) Use of Independent Experts.--Notwithstanding any other 
provision of law, in conducting the audits required by this 
section, the Comptroller General may engage the services of 
appropriate independent experts, including actuaries.
    (d) Report.--Not later than June 1, 2007, the Comptroller 
General shall submit to the congressional defense committees a 
report on the audits conducted under this section. The report 
shall include--
            (1) the findings of the Comptroller General as a 
        result of the audits; and
            (2) such recommendations as the Comptroller General 
        considers appropriate in light of such findings to 
        ensure maximum efficiency in the administration of the 
        health care benefits programs of the Department of 
        Defense.

SEC. 714. TRANSFER OF CUSTODY OF THE AIR FORCE HEALTH STUDY ASSETS TO 
                    MEDICAL FOLLOW-UP AGENCY.

    (a) Transfer.--
            (1) Notification of participants.--The Secretary of 
        the Air Force shall notify the participants of the Air 
        Force Health Study that the study as currently 
        constituted is ending as of September 30, 2006. In 
        consultation with the Medical Follow-up Agency (in this 
        section referred to as the ``Agency'') of the Institute 
        of Medicine of the National Academy of Sciences, the 
        Secretary of the Air Force shall request the written 
        consent of the participants to transfer their data and 
        biological specimens to the Agency during fiscal year 
        2007 and written consent for the Agency to maintain the 
        data and specimens and make them available for 
        additional studies.
            (2) Completion of transfer.--Custodianship of the 
        Air Force Health Study shall be completely transferred 
        to the Agency on or before September 30, 2007. Assets 
        to be transferred shall include electronic data files 
        and biological specimens of all the study participants.
            (3) Copies to archives.--The Air Force shall send 
        paper copies of all study documents to the National 
        Archives.
    (b) Report on Transfer.--
            (1) Requirement.--Not later than 30 days after 
        completion of the transfer of the assets of the Air 
        Force Health Study under subsection (a), the Secretary 
        of the Air Force shall submit to the Committees on 
        Armed Services of the Senate and the House of 
        Representatives a report on the transfer.
            (2) Matters covered.--At a minimum, the report 
        shall include information on the number of study 
        participants whose data and biological specimens were 
        not transferred, the efforts that were taken to contact 
        such participants, and the reasons why the transfer of 
        their data and specimens did not occur.
    (c) Disposition of Assets Not Transferred.--The Secretary 
of the Air Force may not destroy any data or biological 
specimens not transferred under subsection (a) until the 
expiration of the one-year period following submission of the 
report under subsection (b).
    (d) Funding.--
            (1) Costs of transfer.--The Secretary of Defense 
        shall make available to the Air Force $850,000 for 
        preparation, transfer of the assets of the Air Force 
        Health Study, and shipment of data and specimens to the 
        Medical Follow-up Agency and the National Archives 
        during fiscal year 2007 from amounts available from the 
        Department of Defense for that fiscal year. The 
        Secretary of Defense is authorized to transfer the 
        freezers and other physical assets assigned to the Air 
        Force Health Study to the Agency without charge.
            (2) Costs of collaboration.--The Secretary of 
        Defense may reimburse the National Academy of Sciences 
        up to $200,000 for costs of the Medical Follow-up 
        Agency to collaborate with the Air Force in the 
        transfer and receipt of the assets of the Air Force 
        Health Study to the Agency during fiscal year 2007 from 
        amounts available from the Department of Defense for 
        that fiscal year.

SEC. 715. STUDY ON ALLOWING DEPENDENTS OF ACTIVATED MEMBERS OF RESERVE 
                    COMPONENTS TO RETAIN CIVILIAN HEALTH CARE COVERAGE.

    (a) Study Requirement.--The Secretary of Defense shall 
conduct a study on the feasibility of allowing family members 
of members of the reserve components of the Armed Forces who 
are called or ordered to active duty in support of a 
contingency operation to continue health care coverage under a 
civilian health care program and provide reimbursement for such 
health care.
    (b) Elements.--The study required by subsection (a) shall 
include the following:
            (1) An assessment of the number of military 
        dependents with special health care needs (such as 
        ongoing chemotherapy or physical therapy) who would 
        benefit from continued coverage under the member's 
        civilian health care plan instead of enrolling in the 
        TRICARE program.
            (2) An assessment of the feasibility of providing 
        reimbursement to the member or the sponsor of the 
        civilian health coverage.
            (3) A recommendation on the appropriate rate of 
        reimbursement for members or sponsors of civilian 
        health coverage.
            (4) The feasibility of including dependents who do 
        not have access to health care providers that accept 
        payment under the TRICARE program.
    (c) Report Required.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives a report on the study required 
under subsection (a).

SEC. 716. STUDY OF HEALTH EFFECTS OF EXPOSURE TO DEPLETED URANIUM.

    (a) Study.--The Secretary of Defense, in consultation with 
the Secretary for Veterans Affairs and the Secretary of Health 
and Human Services, shall conduct a comprehensive study of the 
health effects of exposure to depleted uranium munitions on 
uranium-exposed soldiers and on children of uranium-exposed 
soldiers who were born after the exposure of the uranium-
exposed soldiers to depleted uranium.
    (b) Uranium-Exposed Soldiers.--In this section, the term 
``uranium-exposed soldiers'' means a member or former member of 
the Armed Forces who handled, came in contact with, or had the 
likelihood of contact with depleted uranium munitions while on 
active duty, including members and former members who--
            (1) were exposed to smoke from fires resulting from 
        the burning of vehicles containing depleted uranium 
        munitions or fires at depots at which depleted uranium 
        munitions were stored;
            (2) worked within environments containing depleted 
        uranium dust or residues from depleted uranium 
        munitions;
            (3) were within a structure or vehicle while it was 
        struck by a depleted uranium munition;
            (4) climbed on or entered equipment or structures 
        struck by a depleted uranium munition; or
            (5) were medical personnel who provided initial 
        treatment to members of the Armed Forces described in 
        paragraph (1), (2), (3), or (4).
    (c) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
Congress a report on the results of the study described in 
subsection (a).

SEC. 717. REPORT AND PLAN ON SERVICES TO MILITARY DEPENDENT CHILDREN 
                    WITH AUTISM.

    (a) Plan Required.--The Secretary of Defense shall, within 
180 days after the date of the enactment of this Act, develop a 
plan to provide services to military dependent children with 
autism pursuant to the authority for an extended health care 
services program in subsections (d) and (e) of section 1079 of 
title 10, United States Code. Such plan shall include--
            (1) requirements for the education, training, and 
        supervision of individuals providing services for 
        military dependent children with autism;
            (2) standards for identifying and measuring the 
        availability, distribution, and training of individuals 
        of various levels of expertise to provide such 
        services; and
            (3) procedures to ensure that such services are in 
        addition to other publicly provided services to such 
        children.
    (b) Participation of Affected Families.--In developing the 
plan required under subsection (a), the Secretary shall ensure 
the involvement and participation of affected military families 
or their representatives.
    (c) Report Required.--Not later than 30 days after 
completion of the plan required under subsection (a), the 
Secretary shall submit to the Committees on Armed Services of 
the Senate and the House of Representatives a report on the 
plan. The report may include any additional information the 
Secretary considers relevant.

SEC. 718. COMPTROLLER GENERAL STUDY ON DEPARTMENT OF DEFENSE PHARMACY 
                    BENEFITS PROGRAM.

    (a) In General.--The Comptroller General of the United 
States shall conduct a study of the Department of Defense 
pharmacy benefits program required by section 1074g of title 
10, United States Code.
    (b) Elements.--The study required by subsection (a) shall 
include an examination of the following:
            (1) The cost of the Department of Defense pharmacy 
        benefits program since the inception of the program.
            (2) The relative costs of various options under the 
        program.
            (3) The copayment structure under the program.
            (4) The effectiveness of the rebate system under 
        the program as a way of passing on discounts received 
        by the Federal Government in the purchase of 
        pharmaceutical agents.
            (5) The uniform formulary under the program, 
        including the success of the formulary in achieving 
        savings anticipated through use of the formulary.
            (6) Various alternative means of purchasing 
        pharmaceutical agents more efficiently for availability 
        under the program.
            (7) The composition and decision-making processes 
        of the Pharmacy and Therapeutics Committee.
            (8) The composition of the Beneficiary Advisory 
        Panel and its history as an advisory panel under the 
        program (including the frequency of the acceptance of 
        its recommendations by the Secretary of Defense).
            (9) Quality assurance mechanisms under the program.
            (10) The role of the program in support of the 
        disease and chronic care management programs of the 
        Department of Defense.
            (11) Mechanisms for customer service and customer 
        feedback under the program.
            (12) Beneficiary satisfaction with the program.
    (c) Report.--Not later than nine months after the date of 
the enactment of this Act, the Comptroller General shall submit 
to the congressional defense committees a report on the study 
required by subsection (a). The report shall include such 
recommendations as the Comptroller General considers 
appropriate for legislative or administrative action to improve 
the Department of Defense pharmacy benefits program in light of 
the study.

SEC. 719. REVIEW OF DEPARTMENT OF DEFENSE MEDICAL QUALITY IMPROVEMENT 
                    PROGRAM.

    (a) Report Required.--
            (1) In general.--Not later than 180 days after the 
        date of the enactment of this Act, the Secretary of 
        Defense shall submit to the Committees on Armed 
        Services of the Senate and the House of Representatives 
        a report on actions taken in response to the 
        recommendations of the July 2001 report of the 
        Department of Defense Healthcare Quality Initiatives 
        Review Panel.
            (2) Matters covered.--The report shall address the 
        status of actions concerning each of the Panel's 
        general and specific recommendations, including the 
        amount of resources allocated by fiscal year to 
        implement each recommendation. In any instance in which 
        no action has been taken, justification for such 
        inaction shall be provided in the report.
    (b) Review Required.--
            (1) In general.--The Secretary of Defense shall 
        enter into a contract with the Institute of Medicine of 
        the National Academy of Sciences, or another similarly 
        qualified independent academic medical organization, 
        for the purpose of conducting an independent review of 
        the Department of Defense medical quality improvement 
        program.
            (2) Elements.--The review required pursuant to 
        paragraph (1) shall include the following:
                    (A) An assessment of the methods used by 
                the Department of Defense to monitor medical 
                quality in services provided in military 
                hospitals and clinics and in services provided 
                in civilian hospitals and providers under the 
                military health care system.
                    (B) An assessment of the transparency and 
                public reporting mechanisms of the Department 
                on medical quality.
                    (C) An assessment of how the Department 
                incorporates medical quality into performance 
                measures for military and civilian health care 
                providers within the military health care 
                system.
                    (D) An assessment of the patient safety 
                programs of the Department.
                    (E) A description of the extent to which 
                the Department seeks to address particular 
                medical errors, and an assessment of the 
                adequacy of such efforts.
                    (F) An assessment of accountability within 
                the military health care system for preventable 
                negative outcomes involving negligence.
                    (G) An assessment of the performance of the 
                health care safety and quality measures of the 
                Department.
                    (H) An assessment of the collaboration of 
                the Department with national initiatives to 
                develop evidence-based quality measures and 
                intervention strategies, especially the 
                initiatives of the Agency for Health Care 
                Research and Quality within the Department of 
                Health and Human Services.
                    (I) A comparison of the methods, 
                mechanisms, and programs and activities 
                referred to in subparagraphs (A) through (G) 
                with similar methods, mechanisms, programs, and 
                activities used in other public and private 
                health care systems and organizations.
            (3) Report.--
                    (A) In general.--Not later than one year 
                after the date of the enactment of this Act, 
                the Secretary shall submit to the Committees on 
                Armed Services of the Senate and the House of 
                Representatives a report on the review required 
                pursuant to paragraph (1).
                    (B) Elements.--The report required by 
                subparagraph (A) shall include the following:
                            (i) The results of the review 
                        required pursuant to paragraph (1).
                            (ii) A discussion of recent 
                        highlights in the accomplishments of 
                        the Department of Defense medical 
                        quality assurance program.
                            (iii) Such recommendations for 
                        legislative or administrative action as 
                        the Secretary considers appropriate for 
                        the improvement of the program.

SEC. 720. REPORT ON DISTRIBUTION OF HEMOSTATIC AGENTS FOR USE IN THE 
                    FIELD.

    Not later than 60 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report on the distribution 
of hemostatic agents to members of the Armed Forces serving in 
Iraq and Afghanistan, including a description of any 
distribution problems and attempts to resolve such problems.

SEC. 721. LONGITUDINAL STUDY ON TRAUMATIC BRAIN INJURY INCURRED BY 
                    MEMBERS OF THE ARMED FORCES IN OPERATION IRAQI 
                    FREEDOM AND OPERATION ENDURING FREEDOM.

    (a) Study Required.--The Secretary of Defense shall conduct 
a longitudinal study on the effects of traumatic brain injury 
incurred by members of the Armed Forces serving in Operation 
Iraqi Freedom or Operation Enduring Freedom on the members who 
incur such an injury and their families.
    (b) Duration.--The study required by subsection (a) shall 
be conducted for a period of 15 years.
    (c) Elements.--The study required by subsection (a) shall 
specifically address the following:
            (1) The long-term physical and mental health 
        effects of traumatic brain injuries incurred by members 
        of the Armed Forces during service in Operation Iraqi 
        Freedom or Operation Enduring Freedom.
            (2) The health care, mental health care, and 
        rehabilitation needs of such members for such injuries 
        after the completion of inpatient treatment through the 
        Department of Defense, the Department of Veterans 
        Affairs, or both.
            (3) The type and availability of long-term care 
        rehabilitation programs and services within and outside 
        the Department of Defense and the Department of 
        Veterans Affairs for such members for such injuries, 
        including community-based programs and services and in-
        home programs and services.
            (4) The effect on family members of a member 
        incurring such an injury.
    (d) Consultation.--The Secretary of Defense shall conduct 
the study required by subsection (a) and prepare the reports 
required by subsection (e) in consultation with the Secretary 
of Veterans Affairs.
    (e) Periodic and Final Reports.--After the third, seventh, 
eleventh, and fifteenth years of the study required by 
subsection (a), the Secretary of Defense shall submit to 
Congress a comprehensive report on the results of the study 
during the preceding years. Each report shall include the 
following:
            (1) Current information on the cumulative outcomes 
        of the study.
            (2) Such recommendations as the Secretary of 
        Defense and the Secretary of Veterans Affairs jointly 
        consider appropriate based on the outcomes of the 
        study, including recommendations for legislative, 
        programmatic, or administrative action to improve long-
        term care and rehabilitation programs and services for 
        members of the Armed Forces with traumatic brain 
        injuries.

           Subtitle C--Planning, Programming, and Management

SEC. 731. STANDARDIZATION OF CLAIMS PROCESSING UNDER TRICARE PROGRAM 
                    AND MEDICARE PROGRAM.

    (a) In General.--Effective beginning with the next contract 
option period for managed care support contracts under the 
TRICARE program, the claims processing requirements under the 
TRICARE program on the matters described in subsection (b) 
shall be identical to the claims processing requirements under 
the Medicare program on such matters.
    (b) Covered Matters.--The matters described in this 
subsection are as follows:
            (1) The utilization of single or multiple provider 
        identification numbers for purposes of the payment of 
        health care claims by Department of Defense 
        contractors.
            (2) The documentation required to substantiate 
        medical necessity for items and services that are 
        covered under both the TRICARE program and the Medicare 
        program.
    (c) Report on Collection of Amounts Owed.--Not later than 
March 1, 2007, the Secretary of Defense shall submit to the 
congressional defense committees a report setting forth a 
detailed description of the following:
            (1) All TRICARE policies and directives concerning 
        collection of amounts owed to the United States 
        pursuant to section 1095 of title 10, United States 
        Code, from third party payers, including--
                    (A) collection by military treatment 
                facilities from third-party payers; and
                    (B) collection by contractors providing 
                managed care support under the TRICARE program 
                from other insurers in cases of private 
                insurance liability for health care costs of a 
                TRICARE beneficiary.
            (2) An estimate of the outstanding amounts owed 
        from third party payers in each of fiscal years 2002, 
        2003, and 2004.
            (3) The amounts collected from third party payers 
        in each of fiscal years 2002, 2003, and 2004.
            (4) A plan of action to streamline the business 
        practices that underlie the policies and directives 
        described in paragraph (1).
            (5) A plan of action to accelerate and increase the 
        collections or recoupments of amounts owed from third 
        party payers.
    (d) Annual Reports on Claims Processing Standardization.--
            (1) In general.--Not later than October 1, 2007, 
        and annually thereafter, the Secretary of Defense shall 
        submit to the congressional defense committees a report 
        setting forth a complete list of the claims processing 
        requirements under the TRICARE program that differ from 
        claims processing requirements under the Medicare 
        program.
            (2) Elements.--Each report under paragraph (1) 
        shall include, for each claims processing requirement 
        listed in such report, a business case that justifies 
        maintaining such requirement under the TRICARE program 
        as a different claims processing requirement than that 
        required under the Medicare program.
    (e) Definitions.--In this section:
            (1) The term ``Medicare program'' means the program 
        under title XVIII of the Social Security Act (42 U.S.C. 
        1395 et seq.).
            (2) The term ``TRICARE program'' has the meaning 
        given that term in section 1072(7) of title 10, United 
        States Code.

SEC. 732. REQUIREMENTS FOR SUPPORT OF MILITARY TREATMENT FACILITIES BY 
                    CIVILIAN CONTRACTORS UNDER TRICARE.

    (a) Annual Integrated Regional Requirements on Support.--
The Regional Director of each region under the TRICARE program 
shall develop each year integrated, comprehensive requirements 
for the support of military treatment facilities in such region 
that is provided by contract civilian health care and 
administrative personnel under the TRICARE program.
    (b) Purposes.--The purposes of the requirements established 
under subsection (a) shall be as follows:
            (1) To ensure consistent standards of quality in 
        the support of military treatment facilities by 
        contract civilian health care personnel under the 
        TRICARE program.
            (2) To identify targeted, actionable opportunities 
        throughout each region of the TRICARE program for the 
        most efficient and cost effective delivery of health 
        care and support of military treatment facilities.
            (3) To ensure the most effective use of various 
        available contracting methods in securing support of 
        military treatment facilities by civilian health care 
        personnel under the TRICARE program, including 
        resource-sharing and clinical support agreements, 
        direct contracting, and venture capital investments.
    (c) Facilitation and Enhancement of Contractor Support.--
            (1) In general.--The Secretary of Defense shall 
        take appropriate actions to facilitate and enhance the 
        support of military treatment facilities under the 
        TRICARE program in order to assure maximum quality and 
        productivity.
            (2) Actions.--In taking actions under paragraph 
        (1), the Secretary shall--
                    (A) require consistent standards of quality 
                for contract civilian health care personnel 
                providing support of military treatment 
                facilities under the TRICARE program, 
                including--
                            (i) consistent credentialing 
                        requirements among military treatment 
                        facilities;
                            (ii) consistent performance 
                        standards for private sector companies 
                        providing health care staffing services 
                        to military treatment facilities and 
                        clinics, including, at a minimum, those 
                        standards established for accreditation 
                        of health care staffing firms by the 
                        Joint Commission on the Accreditation 
                        of Health Care Organizations Health 
                        Care Staffing Standards; and
                            (iii) additional standards 
                        covering--
                                    (I) financial stability;
                                    (II) medical management;
                                    (III) continuity of 
                                operations;
                                    (IV) training;
                                    (V) employee retention;
                                    (VI) access to contractor 
                                data; and
                                    (VII) fraud prevention;
                    (B) ensure the availability of adequate and 
                sustainable funding support for projects which 
                produce a return on investment to the military 
                treatment facilities;
                    (C) ensure that a portion of any return on 
                investment is returned to the military 
                treatment facility to which such savings are 
                attributable;
                    (D) remove financial disincentives for 
                military treatment facilities and civilian 
                contractors to initiate and sustain agreements 
                for the support of military treatment 
                facilities by such contractors under the 
                TRICARE program;
                    (E) provide for a consistent methodology 
                across all regions of the TRICARE program for 
                developing cost benefit analyses of agreements 
                for the support of military treatment 
                facilities by civilian contractors under the 
                TRICARE program based on actual cost and 
                utilization data within each region of the 
                TRICARE program; and
                    (F) provide for a system for monitoring the 
                performance of significant projects for support 
                of military treatment facilities by a civilian 
                contractor under the TRICARE program.
    (d) Reports to Congress.--
            (1) Annual reports required.--Not later than 
        February 1, 2008, and each year thereafter, the 
        Secretary, in coordination with the military 
        departments, shall submit to the Committees on Armed 
        Services of the Senate and the House of Representatives 
        a report on the support of military treatment 
        facilities by civilian contractors under the TRICARE 
        program during the preceding fiscal year.
            (2) Elements.--Each report shall set forth, for the 
        fiscal year covered by such report, the following:
                    (A) The level of support of military health 
                treatment facilities that is provided by 
                contract civilian health care personnel under 
                the TRICARE program in each region of the 
                TRICARE program.
                    (B) An assessment of the compliance of such 
                support with regional requirements under 
                subsection (a).
                    (C) The number and type of agreements for 
                the support of military treatment facilities by 
                contract civilian health care personnel.
                    (D) The standards of quality in effect 
                under the requirements under subsection (a).
                    (E) The savings anticipated, and any 
                savings achieved, as a result of the 
                implementation of the requirements under 
                subsection (a).
                    (F) An assessment of the compliance of 
                contracts for health care staffing services for 
                Department of Defense facilities with the 
                requirements of subsection (c)(2)(A).
    (e) Effective Date.--This section shall take effect on 
October 1, 2006.

SEC. 733. STANDARDS AND TRACKING OF ACCESS TO HEALTH CARE SERVICES FOR 
                    WOUNDED, INJURED, OR ILL SERVICEMEMBERS RETURNING 
                    TO THE UNITED STATES FROM A COMBAT ZONE.

    (a) Report on Uniform Standards for Access.--Not later than 
90 days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives a 
report on uniform standards for the access of wounded, injured, 
or ill members of the Armed Forces to health care services in 
the United States following return from a combat zone.
    (b) Matters Covered.--The report required by subsection (a) 
shall describe in detail policies with respect to the 
following:
            (1) The access of wounded, injured, or ill members 
        of the Armed Forces to emergency care.
            (2) The access of such members to surgical 
        services.
            (3) Waiting times for referrals and consultations 
        of such members by medical personnel, dental personnel, 
        mental health specialists, and rehabilitative service 
        specialists, including personnel and specialists with 
        expertise in prosthetics and in the treatment of head, 
        vision, and spinal cord injuries.
            (4) Waiting times of such members for acute care 
        and for routine follow-up care.
    (c) Referral to Providers Outside Military Health Care 
System.--The Secretary shall require that health care services 
and rehabilitation needs of members described in subsection (a) 
be met through whatever means or mechanisms possible, including 
through the referral of members described in that subsection to 
health care providers outside the military health care system.
    (d) Uniform System for Tracking of Performance.--The 
Secretary shall establish a uniform system for tracking the 
performance of the military health care system in meeting the 
requirements for access of wounded, injured, or ill members of 
the Armed Forces to health care services described in 
subsection (a).
    (e) Reports.--
            (1) Tracking system.--Not later than 180 days after 
        the date of the enactment of this Act, the Secretary 
        shall submit to the Committees on Armed Services of the 
        Senate and the House of Representatives a report on the 
        system established under subsection (d).
            (2) Access.--Not later than October 1, 2006, and 
        each quarter thereafter during fiscal year 2007, the 
        Secretary shall submit to such committees a report on 
        the performance of the health care system in meeting 
        the access standards described in the report required 
        by subsection (a).

SEC. 734. DISEASE AND CHRONIC CARE MANAGEMENT.

    (a) Program Design and Development Required.--Not later 
than October 1, 2007, the Secretary of Defense shall design and 
develop a fully integrated program on disease and chronic care 
management for the military health care system that provides, 
to the extent practicable, uniform policies and practices on 
disease management and chronic care management throughout that 
system, including both military hospitals and clinics and 
civilian healthcare providers within the TRICARE network.
    (b) Purposes of Program.--The purposes of the program 
required by subsection (a) are as follows:
            (1) To facilitate the improvement of the health 
        status of individuals under care in the military health 
        care system.
            (2) To ensure the availability of effective health 
        care services in that system for individuals with 
        diseases and other chronic conditions.
            (3) To ensure the proper allocation of health care 
        resources for individuals who need care for disease or 
        other chronic conditions.
    (c) Elements of Program Design.--The program design 
required by subsection (a) shall meet the following 
requirements:
            (1) Based on uniform policies prescribed by the 
        Secretary, the program shall, at a minimum, address the 
        following chronic diseases and conditions:
                    (A) Diabetes.
                    (B) Cancer.
                    (C) Heart disease.
                    (D) Asthma.
                    (E) Chronic obstructive pulmonary disorder.
                    (F) Depression and anxiety disorders.
            (2) The program shall meet nationally recognized 
        accreditation standards for disease and chronic care 
        management.
            (3) The program shall include specific outcome 
        measures and objectives on disease and chronic care 
        management.
            (4) The program shall include strategies for 
        disease and chronic care management for all 
        beneficiaries, including beneficiaries eligible for 
        benefits under the Medicare program under title XVIII 
        of the Social Security Act (42 U.S.C. 1395 et seq.), 
        for whom the TRICARE program is not the primary payer 
        for health care benefits.
            (5) Activities under the program shall conform to 
        applicable laws and regulations relating to the 
        confidentiality of health care information.
    (d) Implementation Plan Required.--Not later than February 
1, 2008, the Secretary of Defense, in coordination with the 
Secretaries of the military departments, shall develop an 
implementation plan for the disease and chronic care management 
program. In order to facilitate the carrying out of the 
program, the plan developed by the Secretary shall--
            (1) require a comprehensive analysis of the disease 
        and chronic care management opportunities within each 
        region of the TRICARE program, including within 
        military treatment facilities and through contractors 
        under the TRICARE program;
            (2) ensure continuous, adequate funding of disease 
        and chronic care management activities throughout the 
        military health care system in order to achieve maximum 
        health outcomes and cost avoidance;
            (3) eliminate, to the extent practicable, any 
        financial disincentives to sustained investment by 
        military hospitals and health care services contractors 
        of the Department of Defense in the disease and chronic 
        care management activities of the Department;
            (4) ensure that appropriate clinical and claims 
        data, including pharmacy utilization data, is available 
        for use in implementing the program;
            (5) ensure outreach to eligible beneficiaries who, 
        on the basis of their clinical conditions, are 
        candidates for the program utilizing print and 
        electronic media, telephone, and personal interaction; 
        and
            (6) provide a system for monitoring improvements in 
        health status and clinical outcomes under the program 
        and savings associated with the program.
    (e) Report.--
            (1) In general.--Not later than March 1, 2008, the 
        Secretary of Defense shall submit to the Committees on 
        Armed Services of the Senate and the House of 
        Representatives a report on the design, development, 
        and implementation of the program on disease and 
        chronic care management required by this section.
            (2) Report elements.--The report required by 
        paragraph (1) shall include the following:
                    (A) A description of the design and 
                development of the program required by 
                subsection (a).
                    (B) A description of the implementation 
                plan required by subsection (d).
                    (C) A description and assessment of 
                improvements in health status and clinical 
                outcomes that are anticipated as a result of 
                implementation of the program.
                    (D) A description of the savings and return 
                on investment associated with the program.
                    (E) A description of an investment strategy 
                to assure the sustainment of the disease and 
                chronic care management programs of the 
                Department of Defense.

SEC. 735. ADDITIONAL ELEMENTS OF ASSESSMENT OF DEPARTMENT OF DEFENSE 
                    TASK FORCE ON MENTAL HEALTH RELATING TO MENTAL 
                    HEALTH OF MEMBERS WHO WERE DEPLOYED IN OPERATION 
                    IRAQI FREEDOM AND OPERATION ENDURING FREEDOM.

    Section 723(c) of the National Defense Authorization Act 
for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3348) is 
amended by adding at the end the following new paragraph:
            ``(4) Mental health needs of members who were 
        deployed in oif or oef.--As part of the assessment 
        required by paragraph (1) of the efficacy of mental 
        health services provided to members of the Armed Forces 
        by the Department of Defense, the task force shall 
        consider the specific needs with respect to mental 
        health of members who were deployed in Operation Iraqi 
        Freedom or Operation Enduring Freedom upon their return 
        from such deployment, including the following:
                    ``(A) An identification of mental health 
                conditions and disorders (including Post 
                Traumatic Stress Disorder, suicide attempts, 
                and suicide) occurring among members who have 
                undergone multiple deployments in Operation 
                Iraqi Freedom or Operation Enduring Freedom.
                    ``(B) An evaluation of the availability to 
                members of assessments under the Mental Health 
                Self-Assessment Program of the Department of 
                Defense to ensure the long-term availability of 
                the diagnostic mechanisms of the assessment to 
                detect mental health conditions that may emerge 
                in such members over time.
                    ``(C) The availability of programs and 
                services under the Mental Health Self-
                Assessment Program to address the mental health 
                of dependent children of members who were 
                deployed in Operation Iraqi Freedom or 
                Operation Enduring Freedom.
                    ``(D) Recommendations on mechanisms for 
                improving the mental health services available 
                to members who were deployed in Operation Iraqi 
                Freedom or Operation Enduring Freedom, 
                including members who have undergone multiple 
                deployments.''.

SEC. 736. ADDITIONAL AUTHORIZED OPTION PERIODS FOR EXTENSION OF CURRENT 
                    CONTRACTS UNDER TRICARE.

    (a) Additional Number of Authorized Periods.--
            (1) In general.--The Secretary of Defense, after 
        consulting with the other administering Secretaries, 
        may extend any contract for the delivery of health care 
        entered into under section 1097 of title 10, United 
        States Code, that is in force on the date of the 
        enactment of this Act by one year, and upon expiration 
        of such extension by one additional year, if the 
        Secretary determines that such extension--
                    (A) is in the best interests of the 
                Department of Defense and covered 
                beneficiaries;
                    (B) is cost effective; and
                    (C) will--
                            (i) facilitate the effective 
                        administration of the TRICARE program; 
                        or
                            (ii) ensure continuity in the 
                        delivery of health care under the 
                        TRICARE program.
            (2) Limitation on number of extensions.--The total 
        number of one-year extensions of a contract that may be 
        granted under paragraph (1) may not exceed two 
        extensions.
            (3) Notice and wait.--The Secretary may not 
        commence the exercise of the authority in paragraph (1) 
        with respect to a contract covered by that paragraph 
        until 30 days after the date on which the Secretary 
        submits to the Committees on Armed Services of the 
        Senate and House of Representatives a report setting 
        forth the following:
                    (A) The minimum level of performance, 
                including beneficiary satisfaction and cost, by 
                the incumbent contractor under the contract 
                that will be required by the Secretary in order 
                to be eligible for an extension authorized by 
                such paragraph.
                    (B) The justification for such extension 
                based on each of the criteria in paragraph (1).
                    (C) The justification for such extension 
                based on a cost-benefit analysis.
            (4) Definitions.--In this subsection, the terms 
        ``administering Secretaries'', ``covered beneficiary'', 
        and ``TRICARE program'' have the meaning given such 
        terms in section 1072 of title 10, United States Code.
    (b) Report on Contracting Mechanisms for Health Care 
Service Support Contracts.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary shall submit 
to the Committees on Armed Services of the Senate and House of 
Representatives a report on contracting mechanisms under 
consideration for future contracts for health care service 
support under section 1097 of title 10, United States Code. The 
report shall include an assessment of the advantages and 
disadvantages for the Department of Defense (including the 
potential for stimulating competition and the effect on health 
care beneficiaries of the Department) of providing in such 
contracts for a single term of 5 years, with a single optional 
period of extension of an additional 5 years if performance 
under such contract is rated as ``excellent''.

SEC. 737. MILITARY VACCINATION MATTERS.

    (a) Additional Element for Comptroller General Study and 
Report on Vaccine Healthcare Centers.--Section 736(b) of the 
National Defense Authorization Act for Fiscal Year 2006 (Public 
Law 109-163; 119 Stat. 3356) is amended by adding at the end 
the following new paragraph:
            ``(10) The feasibility and advisability of 
        transferring direct responsibility for the Centers from 
        the Army Medical Command to the Under Secretary of 
        Defense for Personnel and Readiness and the Deputy 
        Assistant Secretary of Defense for Force Health 
        Protection and Readiness.''.
    (b) Limitation on Restructuring of Vaccine Healthcare 
Centers.--The Secretary of Defense may not downsize or 
otherwise restructure the Vaccine Healthcare Centers of the 
Department of Defense during fiscal year 2007. The Secretary 
shall ensure that the Secretary of each military department 
shall, from amounts allocated during fiscal year 2007 from the 
Defense Health Program, fund and maintain the Vaccine 
Healthcare Center of the military department concerned.

SEC. 738. ENHANCED MENTAL HEALTH SCREENING AND SERVICES FOR MEMBERS OF 
                    THE ARMED FORCES.

    (a) Additional Required Elements for Predeployment and 
Postdeployment Medical Examinations.--Subsection (b) of section 
1074f of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' before ``The system''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) The predeployment and postdeployment medical 
examination of a member of the armed forces required under 
paragraph (1) shall include the following:
            ``(A) An assessment of the current treatment of the 
        member and any use of psychotropic medications by the 
        member for a mental health condition or disorder.
            ``(B) An assessment of traumatic brain injury.''.
    (b) Criteria for Referral for Further Evaluations.--Such 
section is further amended by adding at the end the following:
    ``(e) Criteria for Referral for Further Evaluations.--The 
system described in subsection (a) shall include--
            ``(1) development of clinical practice guidelines 
        to be utilized by healthcare providers in determining 
        whether to refer a member of the armed forces for 
        further evaluation relating to mental health (including 
        traumatic brain injury);
            ``(2) mechanisms to ensure that healthcare 
        providers are trained in the application of such 
        clinical practice guidelines; and
            ``(3) mechanisms for oversight to ensure that 
        healthcare providers apply such guidelines 
        consistently.''.
    (c) Minimum Mental Health Standards for Deployment.--Such 
section is further amended by adding at the end the following:
    ``(f) Minimum Mental Health Standards for Deployment.--(1) 
The Secretary of Defense shall prescribe in regulations minimum 
standards for mental health for the eligibility of a member of 
the armed forces for deployment to a combat operation or 
contingency operation.
    ``(2) The standards required by paragraph (1) shall include 
the following:
            ``(A) A specification of the mental health 
        conditions, treatment for such conditions, and receipt 
        of psychotropic medications for such conditions that 
        preclude deployment of a member of the armed forces to 
        a combat operation or contingency operation, or to a 
        specified type of such operation.
            ``(B) Guidelines for the deployability and 
        treatment of members of the armed forces diagnosed with 
        a severe mental illness or post traumatic stress 
        disorder.
    ``(3) The Secretary shall take appropriate actions to 
ensure the utilization of the standards prescribed under 
paragraph (1) in the making of determinations regarding the 
deployability of members of the armed forces to a combat 
operation or continency operation.''.
    (d) Quality Assurance.--Subsection (d) of such section is 
amended--
            (1) by inserting ``(1)'' before ``The Secretary of 
        Defense''; and
            (2) by adding at the end the following new 
        paragraphs:
    ``(2) The quality assurance program established under 
paragraph (1) shall also include the following elements:
            ``(A) The types of healthcare providers conducting 
        postdeployment health assessments.
            ``(B) The training received by such providers 
        applicable to the conduct of such assessments, 
        including training on assessments and referrals 
        relating to mental health.
            ``(C) The guidance available to such providers on 
        how to apply the clinical practice guidelines developed 
        under subsection (e)(1) in determining whether to make 
        a referral for further evaluation of a member of the 
        armed forces relating to mental health.
            ``(D) The effectiveness of the tracking mechanisms 
        required under this section in ensuring that members 
        who receive referrals for further evaluations relating 
        to mental health receive such evaluations and obtain 
        such care and services as are warranted.
            ``(E) Programs established for monitoring the 
        mental health of each member who, after deployment to a 
        combat operation or contingency operations, is known--
                    ``(i) to have a mental health condition or 
                disorder; or
                    ``(ii) to be receiving treatment, including 
                psychotropic medications, for a mental health 
                condition or disorder.''.
    (e) Comptroller General Reports on Implementation of 
Requirements.--
            (1) Study on implementation.--The Comptroller 
        General of the United States shall carry out a study of 
        the implementation of the requirements of the 
        amendments made by this section.
            (2) Reports.--Not later than March 1, 2008, the 
        Comptroller General shall submit to the Committees on 
        Armed Services of the Senate and the House of 
        Representatives a report on the study carried out under 
        paragraph (1).
    (f) Implementation.--The Secretary of Defense shall 
implement the requirements of the amendments made by this 
section not later than six months after the date of the 
enactment of this Act.
    (g) Report Required.--The Secretary of Defense shall submit 
to the Committees on Armed Services of the Senate and the House 
of Representatives a report on the actions taken to implement 
the requirements of the amendments made by this section not 
later than June 1, 2007.

                       Subtitle D--Other Matters

SEC. 741. PILOT PROJECTS ON EARLY DIAGNOSIS AND TREATMENT OF POST 
                    TRAUMATIC STRESS DISORDER AND OTHER MENTAL HEALTH 
                    CONDITIONS.

    (a) Pilot Projects Required.--The Secretary of Defense 
shall carry out not less than three pilot projects to evaluate 
the efficacy of various approaches to improving the capability 
of the military and civilian health care systems to provide 
early diagnosis and treatment of post traumatic stress disorder 
and other mental health conditions.
    (b) Duration.--Any pilot project carried out under this 
section shall begin not later than October 1, 2007, and cease 
on September 30, 2008.
    (c) Pilot Project Requirements.--
            (1) Diagnostic and treatment approaches.--One of 
        the pilot projects under this section shall be designed 
        to evaluate effective diagnostic and treatment 
        approaches for use by primary care providers in the 
        military health care system in order to improve the 
        capability of such providers to diagnose and treat post 
        traumatic stress disorder.
            (2) National guard or reserve members.--
                    (A) One of the pilot projects under this 
                section shall be focused on members of the 
                National Guard or Reserves who are located more 
                than 40 miles from a military medical facility 
                and who are served primarily by civilian 
                community health resources.
                    (B) The pilot project described in 
                subparagraph (A) shall be designed to develop 
                educational materials and other tools for use 
                by members of the National Guard or Reserves 
                who come into contact with other members of the 
                National Guard or Reserves who may suffer from 
                post traumatic stress disorder in order to 
                encourage and facilitate early reporting and 
                referral for treatment.
            (3) Outreach.--One of the pilot projects under this 
        section shall be designed to provide outreach to the 
        family members of the members of the Armed Forces on 
        post traumatic stress disorder and other mental health 
        conditions.
    (d) Evaluation of Pilot Projects.--The Secretary shall 
evaluate each pilot project carried out under this section in 
order to assess the effectiveness of the approaches taken under 
such pilot project--
            (1) to improve the capability of the military and 
        civilian health care systems to provide early diagnosis 
        and treatment of post traumatic stress disorder and 
        other mental health conditions among members of the 
        regular components of the Armed Forces, and among 
        members of the National Guard and Reserves, who have 
        returned from deployment; and
            (2) to provide outreach to the family members of 
        the members of the Armed Forces described in paragraph 
        (1) on post traumatic stress disorder and other mental 
        health conditions among such members of the Armed 
        Forces.
    (e) Report to Congress.--
            (1) Report required.--Not later than December 31, 
        2008, the Secretary shall submit to the congressional 
        defense committees a report on the pilot projects 
        carried out under this section.
            (2) Elements.--The report required by paragraph (1) 
        shall include the following:
                    (A) A description of each pilot project 
                carried out under this section.
                    (B) An assessment of the effectiveness of 
                the approaches taken under each pilot project 
                to improve the capability of the military and 
                civilian health care systems to provide early 
                diagnosis and treatment of post traumatic 
                stress disorder and other mental health 
                conditions among members of t