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H. Rept. 109-702 - JOHN WARNER NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2007109th Congress (2005-2006)

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Accompanies:	H.R.5122

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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

Subtitle C--Missile Defense Programs

Subtitle D--Other Matters

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

Subtitle C--Program Requirements, Restrictions, and Limitations

Subtitle D--Workplace and Depot Issues

Subtitle E--Reports

Subtitle F--Other Matters

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

Subtitle B--Reserve Forces

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

Part II--Officer Promotion Policy

Part III--Joint Officer Management Requirements

Subtitle B--Reserve Component Matters

Part I--Reserve Component Management

Part II--Authorities Relating to Guard and Reserve Duty

Subtitle C--Education and Training

Part I--Service Academies

Part II--Scholarship and Financial Assistance Programs

Part III--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

Subtitle E--Military Justice Matters

Subtitle F--Decorations and Awards

Subtitle G--Matters Relating to Casualties

Subtitle H--Impact Aid and Defense Dependents Education System

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

Subtitle K--Other Matters

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

Subtitle B--Bonuses and Special and Incentive Pays

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

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

Subtitle F--Other Matters

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

Subtitle B--Studies and Reports

Subtitle C--Planning, Programming, and Management

Subtitle D--Other Matters

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 chron

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H. Rept. 109-702 - JOHN WARNER NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2007109th Congress (2005-2006)

Committee Report

Reports for H.R.5122

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