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110th Congress                                               Report
                       HOUSE OF REPRESENTATIVES        
1st Session                                                  110-477
______________________________________________________________________

 
        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2008

                               ----------                              

                           CONFERENCE REPORT

                              to accompany

                               H.R. 1585

[GRAPHIC] [TIFF OMITTED] TONGRESS.#13


                December 6, 2007.--Ordered to be printed
        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2008


For Sale by the Superintendent of Documents, U.S. Government Printing Office
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110th Congress 
 1st Session            HOUSE OF REPRESENTATIVES                 Report
                                                                110-477
_______________________________________________________________________

                                     


        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2008

                               __________

                           CONFERENCE REPORT

                              to accompany

                               H.R. 1585

[GRAPHIC] [TIFF OMITTED] TONGRESS.#13


                December 6, 2007.--Ordered to be printed


                            C O N T E N T S

                              ----------                              
                                                                   Page
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE.......   609
    Summary Statement of Conference Actions......................   609
    Explanation of funding summary...............................   609
CONGRESSIONAL DEFENSE COMMITTEES.................................   622
DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS.................   622
Title I--Procurement.............................................   622
        Procurement overview.....................................   622
    Budget Items.................................................   624
        Aircraft Procurement, Army--Overview.....................   624
        Missile Procurement, Army--Overview......................   629
        Procurement of Weapons and Tracked Combat Vehicles, 
          Army--Overview.........................................   632
        Procurement of Ammunition, Army--Overview................   638
        Other Procurement, Army--Overview........................   643
        Aircraft Procurement, Navy--Overview.....................   663
        Weapons Procurement, Navy--Overview......................   670
        Procurement of Ammunition, Navy and Marine Corps--
          Overview...............................................   674
        Shipbuilding and Conversion, Navy--Overview..............   679
        Other Procurement, Navy--Overview........................   683
        Procurement, Marine Corps--Overview......................   696
        Aircraft Procurement, Air Force--Overview................   704
        Procurement of Ammunition, Air Force--Overview...........   713
        Missile Procurement, Air Force--Overview.................   716
        Advanced extremely high frequency satellite..............   720
        Other Procurement, Air Force--Overview...................   720
        Procurement, Defense-wide--Overview......................   727
        National Guard and Reserve Equipment--Overview...........   735
    Item of Special Interest.....................................   738
        Unmanned aerial systems management.......................   738
    Subtitle A--Authorization of Appropriations..................   739
        Authorization of appropriations (secs. 101-105)..........   739
    Subtitle B--Army Programs....................................   739
        Multiyear procurement authority for M1A2 Abrams System 
          Enhancement Package upgrades (sec. 111)................   739
        Multiyear procurement authority for M2A3/M3A3 Bradley 
          fighting vehicle upgrades (sec. 112)...................   739
        Multiyear procurement authority for conversion of CH-47D 
          helicopters to CH-47F configuration (sec. 113).........   739
        Multiyear procurement authority for CH-47F helicopters 
          (sec. 114).............................................   739
        Limitation on use of funds for Increment 1 of the 
          Warfighter Information Network-Tactical program pending 
          certification to Congress (sec. 115)...................   740
        Prohibition on closure of Army Tactical Missile System 
          production line pending report (sec. 116)..............   740
        Stryker Mobile Gun System (sec. 117).....................   740
    Subtitle C--Navy Programs....................................   740
        Multiyear procurement authority for Virginia-class 
          submarine program (sec. 121)...........................   740
        Report on shipbuilding investment strategy (sec. 122)....   741
        Sense of Congress on the preservation of a skilled United 
          States shipyard workforce (sec. 123)...................   741
        Assessments required prior to start of construction on 
          first ship of a shipbuilding program (sec. 124)........   742
        Littoral Combat Ship (LCS) program (sec. 125)............   742
    Subtitle D--Air Force Programs...............................   742
        Limitation on Joint Cargo Aircraft (sec. 131)............   742
        Clarification of limitation on retirement of U-2 aircraft 
          (sec. 132).............................................   743
        Repeal of requirement to maintain retired C-130E tactical 
          aircraft (sec. 133)....................................   743
        Limitation on retirement of C-130E/H tactical airlift 
          aircraft (sec. 134)....................................   743
        Limitation on retirement of KC-135E aerial refueling 
          aircraft (sec. 135)....................................   744
        Transfer to Government of Iraq of three C-130E tactical 
          airlift aircraft (sec. 136)............................   744
        Modification of limitations on retirement of B-52 bomber 
          aircraft (sec. 137)....................................   744
    Legislative Provisions Not Adopted...........................   745
        Advance procurement for Virginia class submarine program.   745
        Authority to transfer funds for submarine engineered 
          refueling overhauls and conversions and for aircraft 
          carrier refueling complex overhauls....................   745
        Consolidation of Joint Network Node program and 
          Warfighter Information Network-Tactical program into 
          single Army tactical network program...................   746
        General fund enterprise business system..................   746
        Limitation on final assembly of VH-71 presidential 
          transport helicopters..................................   746
        Limitation on retiring C-5 aircraft......................   746
        Responsibility of the Air Force for fixed-wing support of 
          Army intra-theater logistics...........................   747
        Sense of Congress on rapid fielding of Associate 
          Intermodal Platform system and other innovative 
          logistics systems......................................   748
        Sense of Congress on the Air Force strategy for the 
          replacement of the aerial refueling tanker aircraft 
          fleet..................................................   748
        Sense of Congress regarding need to replace Army M109 
          155mm self-propelled howitzer..........................   748
Title II--Research, Development, Test, and Evaluation............   749
    Budget Items.................................................   749
        Research, Development, Test, and Evaluation overview.....   749
        Army.....................................................   751
            Research, Development, Test, and Evaluation, Army 
              overview...........................................   751
            Wide-area persistent surveillance....................   769
        Navy.....................................................   769
            Research, Development, Test, and Evaluation, Navy 
              overview...........................................   769
            Threat D.............................................   784
        Air Force................................................   784
            Research, Development, Test, and Evaluation, Air 
              Force overview.....................................   784
            Global positioning system III........................   799
            Transformational communication satellite system......   799
            Space Radar..........................................   800
            Alternate infrared satellite system..................   801
        Defense-wide.............................................   801
            Research, Development, Test, and Evaluation, Defense-
              wide overview......................................   801
            National defense education program...................   817
            Airborne Laser.......................................   817
            Aegis ballistic missile defense......................   818
            Prompt Global Strike.................................   819
            Joint command and control............................   820
        Test and Evaluation......................................   820
            Operational, Test, and Evaluation, Defense overview..   820
    Items of Special Interest....................................   822
        Aerial common sensor.....................................   822
        Missile defense test and targets program.................   822
        NSA acquisition management...............................   824
    Subtitle A--Authorization of Appropriations..................
        Authorization of appropriations (sec. 201)...............   824
        Amount for defense science and technology (sec. 202).....   824
    Subtitle B--Program Requirements, Restrictions, and 
      Limitations................................................   825
        Operational test and evaluation of Future Combat Systems 
          network (sec. 211).....................................   825
        Limitation on use of funds for systems development and 
          demonstration of Joint Light Tactical Vehicle program 
          (sec. 212).............................................   825
        Requirement to obligate and expend funds for development 
          and procurement of a competitive propulsion system for 
          the Joint Strike Fighter (sec. 213)....................   826
        Limitation on use of funds for defense-wide manufacturing 
          science and technology program (sec. 214)..............   826
        Advanced sensor applications program (sec. 215)..........   826
        Active protection systems (sec. 216).....................   827
    Subtitle C--Ballistic Missile Defense........................   827
        Participation of Director, Operational Test and 
          Evaluation, in missile defense test and evaluation 
          activities (sec. 221)..................................   827
        Study on future roles and missions of the Missile Defense 
          Agency (sec. 222)......................................   827
        Budget and acquisition requirements for Missile Defense 
          Agency activities (sec. 223)...........................   828
        Limitation on use of funds for replacing warhead on SM-3 
          Block IIA missile (sec. 224)...........................   829
        Extension of Comptroller General assessments of ballistic 
          missile defense programs (sec. 225)....................   830
        Limitation on availability of funds for procurement, 
          construction, and deployment of missile defenses in 
          Europe (sec. 226)......................................   830
        Sense of Congress on missile defense cooperation with 
          Israel (sec. 227)......................................   832
        Limitation on availability of funds for deployment of 
          missile defense interceptors in Alaska (sec. 228)......   833
        Policy of the United States on protection of the United 
          States and its allies against Iranian ballistic 
          missiles (sec. 229)....................................   833
    Subtitle D--Other Matters....................................   833
        Coordination of human systems integration activities 
          related to acquisition programs (sec. 231).............   833
        Expansion of authority for provision of laboratory 
          facilities, services, and equipment (sec. 232).........   834
        Modification of cost sharing requirement for technology 
          transition initiative (sec. 233).......................   835
        Report on implementation of Manufacturing Technology 
          Program (sec. 234).....................................   835
        Assessment of sufficiency of test and evaluation 
          personnel (sec. 235)...................................   835
        Repeal of requirement for separate reports on technology 
          area review and assessment summaries (sec. 236)........   835
        Modification of notice and wait requirement for 
          obligation of funds for foreign comparative test 
          program (sec. 237).....................................   836
        Strategic plan for the Manufacturing Technology Program 
          (sec. 238).............................................   836
        Modification of authorities on coordination of Defense 
          Experimental Program to Stimulate Competitive Research 
          with similar federal programs (sec. 239)...............   837
        Enhancement of defense nanotechnology research and 
          development program (sec. 240).........................   837
        Federally funded research and development center 
          assessment of the Defense Experimental Program to 
          Stimulate Competitive Research (sec. 241)..............   837
        Cost-benefit analysis of proposed funding reduction for 
          High Energy Laser Systems Test Facility (sec. 242).....   837
        Prompt global strike (sec. 243)..........................   838
    Legislative Provisions Not Adopted...........................   838
        Gulf War illnesses research..............................   838
        Increased funds for X Lab battlespace laboratory.........   839
        Modeling, analysis, and simulation of military and non-
          military operations in complex urban environments......   839
        Reduction of amounts for Army Venture Capital Fund 
          demonstration..........................................   839
        Sense of Congress concerning full support for development 
          and fielding of a layered ballistic missile defense....   840
Title III--Operation and Maintenance.............................   840
        Operation and maintenance overview.......................   840
    Subtitle A--Authorization of Appropriations..................   876
        Operation and maintenance funding (sec. 301).............   876
    Subtitle B--Environmental Provisions.........................   876
        Reimbursement of Environmental Protection Agency for 
          certain costs in connection with Moses Lake Wellfield 
          Superfund Site, Moses Lake, Washington (sec. 311)......   876
        Reimbursement of Environmental Protection Agency for 
          certain costs in connection with the Arctic Surplus 
          Superfund Site, Fairbanks, Alaska (sec. 312)...........   876
        Payment to Environmental Protection Agency of stipulated 
          penalties in connection with Jackson Park Housing 
          Complex, Washington (sec. 313).........................   876
        Report on control of the brown tree snake (sec. 314).....   876
        Notification of certain residents and civilian employees 
          at Camp Lejeune, North Carolina, of exposure to 
          drinking water contamination (sec. 315)................   877
    Subtitle C--Workplace and Depot Issues.......................   877
        Availability of funds in Defense Information Systems 
          Agency working capital fund for technology upgrades to 
          Defense Information Systems Network (sec. 321).........   877
        Modification to public-private competition requirements 
          before conversion to contractor performance (sec. 322).   877
        Public-private competition at end of period specified in 
          performance agreement not required (sec. 323)..........   877
        Guidelines on insourcing new and contracted out functions 
          (sec. 324).............................................   878
        Restriction on Office of Management and Budget influence 
          over Department of Defense public-private competitions 
          (sec. 325).............................................   878
        Bid protests by federal employees in actions under Office 
          of Management and Budget Circular A-76 (sec. 326)......   879
        Public-private competition required before conversion to 
          contractor performance (sec. 327)......................   879
        Extension of authority for Army industrial facilities to 
          engage in cooperative activities with non-Army entities 
          (sec. 328).............................................   879
        Reauthorization and modification of multi-trades 
          demonstration project (sec. 329).......................   880
        Pilot program for availability of working-capital funds 
          to Army for certain product improvements (sec. 330)....   880
    Subtitle D--Extension of Program Authorities.................   881
        Extension of Arsenal Support Program Initiative (sec. 
          341)...................................................   881
        Extension of period for reimbursement for helmet pads 
          purchased by members of the armed forces deployed in 
          contingency operations (sec. 342)......................   882
        Extension of temporary authority for contract performance 
          of security guard functions (sec. 343).................   883
    Subtitle E--Reports..........................................   883
        Reports on National Guard readiness for emergencies and 
          major disasters (sec. 351).............................   883
        Annual report on prepositioned materiel and equipment 
          (sec. 352).............................................   884
        Report on incremental cost of early 2007 enhanced 
          deployment (sec. 353)..................................   885
        Modification of requirements of Comptroller General 
          report on the readiness of Army and Marine Corps ground 
          forces (sec. 354)......................................   885
        Plan to improve readiness of ground forces of active and 
          reserve components (sec. 355)..........................   885
        Independent assessment of Civil Reserve Air Fleet 
          viability (sec. 356)...................................   886
        Department of Defense Inspector General report on 
          physical security of Department of Defense 
          installations (sec. 357)...............................   886
        Review of high-altitude aviation training (sec. 358).....   886
        Reports on safety measures and encroachment issues and 
          master plan for Warren Grove Gunnery Range, New Jersey 
          (sec. 359).............................................   887
        Report on search and rescue capabilities of the Air Force 
          in the northwestern United States (sec. 360)...........   887
        Report and master infrastructure recapitalization plan 
          for Cheyenne Mountain Air Station, Colorado (sec. 361).   888
    Subtitle F--Other Matters....................................   888
        Enhancement of corrosion control and prevention functions 
          within Department of Defense (sec. 371)................   888
        Authority for Department of Defense to provide support 
          for certain sporting events (sec. 372).................   889
        Authority to impose reasonable restrictions on payment of 
          full replacement value for lost or damaged personal 
          property transported at government expense (sec. 373)..   889
        Priority transportation on Department of Defense aircraft 
          of retired members residing in commonwealths and 
          possessions of the United States for certain health 
          care services (sec. 374)...............................   890
        Recovery of missing military property (sec. 375).........   890
        Retention of combat uniforms by members of the armed 
          forces deployed in support of contingency operations 
          (sec. 376).............................................   890
        Issue of serviceable material of the Navy other than to 
          armed forces (sec. 377)................................   890
        Reauthorization of Aviation Insurance Program (sec. 378).   891
    Legislative Provisions Not Adopted...........................   891
        Increase in threshold amount for contracts for 
          procurement of capital assets in advance...............   891
        Authorization of use of working-capital funds for 
          acquisition of certain items...........................   891
        Individual body armor....................................   891
        Additional requirements for annual report on public-
          private competitions...................................   892
        Sense of Senate on the Air Force logistics centers.......   892
        Plan for optimal use of strategic ports by commander of 
          surface distribution and deployment command............   892
        Report on public-private partnerships....................   893
        Continuity of depot operations to reset combat equipment 
          and vehicles in support of wars in Iraq and Afghanistan   893
        Sense of Congress on future use of synthetic fuels in 
          military systems.......................................   894
        Limitation on the expenditure of funds for initial flight 
          screening at Pueblo Memorial Airport...................   895
Title IV--Military Personnel Authorizations......................
    Subtitle A--Active Forces....................................   895
        End strengths for active forces (sec. 401)...............   895
        Revision in permanent active duty end strength minimum 
          levels (sec. 402)......................................   896
        Additional authority for increases of Army and Marine 
          Corps active duty end strengths for fiscal years 2009 
          and 2010 (sec. 403)....................................   896
        Increase in authorized strengths for Army officers on 
          active duty in the grade of major (sec. 404)...........   896
        Increase in authorized strengths for Navy officers on 
          active duty in the grades of lieutenant commander, 
          commander, and captain (sec. 405)......................   897
        Increase in authorized daily average of number of members 
          in pay grade E-9 (sec. 406)............................   897
    Subtitle B--Reserve Forces...................................   897
        End strengths for Selected Reserve (sec. 411)............   897
        End strengths for Reserves on active duty in support of 
          the reserves (sec. 412)................................   898
        End strengths for military technicians (dual status) 
          (sec. 413).............................................   898
        Fiscal year 2008 limitation on number of non-dual status 
          technicians (sec. 414).................................   899
        Maximum number of reserve personnel authorized to be on 
          active duty for operational support (sec. 415).........   899
        Future authorizations and accounting for certain reserve 
          component personnel authorized to be on active duty or 
          full-time National Guard duty to provide operational 
          support (sec. 416).....................................   899
        Revision of variances authorized for Selected Reserve end 
          strengths (sec. 417)...................................   899
    Subtitle C--Authorization of Appropriations..................   899
        Military Personnel (sec. 421)............................   899
    Legislative Provision Not Adopted............................   900
        Offsetting transfers from the National Defense Stockpile 
          Transaction Fund.......................................   900
Title V--Military Personnel Policy...............................   900
    Subtitle A--Officer Personnel Policy.........................   900
        Assignment of officers to designated positions of 
          importance and responsibility (sec. 501)...............   900
        Enhanced authority for reserve general and flag officers 
          to serve on active duty (sec. 502).....................   900
        Increase in years of commissioned service threshold for 
          discharge of probationary officers and for use of force 
          shaping authority (sec. 503)...........................   901
        Mandatory retirement age for active-duty general and flag 
          officers continued on active duty (sec. 504)...........   901
        Authority for reduced mandatory service obligation for 
          initial appointments of officers in critically short 
          health professional specialties (sec. 505).............   901
        Expansion of authority for reenlistment of officers in 
          their former enlisted grade (sec. 506).................   902
        Increase in authorized number of permanent professors at 
          the United States Military Academy (sec. 507)..........   902
        Promotion of career military professors of the Navy (sec. 
          508)...................................................   902
    Subtitle B--Reserve Component Management.....................   902
        Retention of military technicians who lose dual status in 
          the Selected Reserve due to combat-related disability 
          (sec. 511).............................................   902
        Constructive service credit upon original appointment of 
          reserve officers in certain health care professions 
          (sec. 512).............................................   903
        Mandatory separation of reserve officers in the grade of 
          lieutenant general or vice admiral after completion of 
          38 years of commissioned service (sec. 513)............   903
        Maximum period of temporary federal recognition of person 
          as Army National Guard officer or Air National Guard 
          officer (sec. 514).....................................   903
        Advance notice to members of reserve components of 
          deployment in support of contingency operations (sec. 
          515)...................................................   904
        Report on relief from professional licensure and 
          certification requirements for reserve component 
          members on long-term active duty (sec. 516)............   904
    Subtitle C--Education and Training...........................   904
        Revisions to authority to pay tuition for off-duty 
          training or education (sec. 521).......................   904
        Reduction or elimination of service obligation in an Army 
          Reserve or Army National Guard troop program unit for 
          certain persons selected as medical students at 
          Uniformed Services University of the Health Sciences 
          (sec. 522).............................................   904
        Repeal of annual limit on number of ROTC scholarships 
          under Army Reserve and Army National Guard financial 
          assistance program (sec. 523)..........................   905
        Treatment of prior active service of members in uniformed 
          medical accession programs (sec. 524)..................   905
        Repeal of post-2007-2008 academic year prohibition on 
          phased increase in cadet strength limit at the United 
          States Military Academy (sec. 525).....................   906
        National Defense University master's degree programs 
          (sec. 526).............................................   906
        Authority of the Air University to confer degree of 
          master of science in flight test engineering (sec. 527)   906
        Enhancement of education benefits for certain members of 
          reserve components (sec. 528)..........................   906
        Extension of period of entitlement to educational 
          assistance for certain members of the Selected Reserve 
          affected by force shaping initiatives (sec. 529).......   907
        Time limit for use of educational assistance benefit for 
          certain members of reserve components and resumption of 
          benefit (sec. 530).....................................   907
        Secretary of Defense evaluation of the adequacy of the 
          degree-granting authorities of certain military 
          universities and educational institutions (sec. 531)...   907
        Report on success of Army National Guard and Reserve 
          Senior Reserve Officers' Training Corps financial 
          assistance program (sec. 532)..........................   908
        Report on utilization of tuition assistance by members of 
          the armed forces (sec. 533)............................   908
        Navy Junior Reserve Officers' Training Corps unit for 
          Southold, Mattituck, and Greenport High Schools (sec. 
          534)...................................................   908
        Report on transfer of administration of certain 
          educational assistance programs for members of the 
          reserve components (sec. 535)..........................   909
    Subtitle D--Military Justice and Legal Assistance Matters....   909
        Authority to designate civilian employees of the Federal 
          Government and dependents of deceased members as 
          eligible for legal assistance from Department of 
          Defense legal staff resources (sec. 541)...............   909
        Authority of judges of the United States Court of Appeals 
          for the Armed Forces to administer oaths (sec. 542)....   909
        Modification of authorities on senior members of the 
          Judge Advocate Generals' Corps (sec. 543)..............   910
        Prohibition against members of the armed forces 
          participating in criminal street gangs (sec. 544)......   910
    Subtitle E--Military Leave...................................   910
        Temporary enhancement of carryover of accumulated leave 
          for members of the armed forces (sec. 551).............   910
        Enhancement of rest and recuperation leave (sec. 552)....   911
    Subtitle F--Decorations and Awards...........................   911
        Authorization and request for award of Medal of Honor to 
          Leslie H. Sabo, Jr., for acts of valor during the 
          Vietnam War (sec. 561).................................   911
        Authorization and request for award of Medal of Honor to 
          Henry Svehla for acts of valor during the Korean War 
          (sec. 562).............................................   911
        Authorization and request for award of Medal of Honor to 
          Woodrow W. Keeble for acts of valor during the Korean 
          War (sec. 563).........................................   911
        Authorization and request for award of Medal of Honor to 
          Private Philip G. Shadrach for acts of valor as one of 
          Andrews' Raiders during the Civil War (sec. 564).......   911
        Authorization and request for award of Medal of Honor to 
          Private George D. Wilson for acts of valor as one of 
          Andrews' Raiders during the Civil War (sec. 565).......   912
    Subtitle G--Impact Aid and Defense Dependents Education 
      System.....................................................
        Continuation of authority to assist local educational 
          agencies that benefit dependents of members of the 
          armed forces and Department of Defense civilian 
          employees (sec. 571)...................................   912
        Impact aid for children with severe disabilities (sec. 
          572)...................................................   912
        Inclusion of dependents of non-Department of Defense 
          employees employed on Federal property in plan relating 
          to force structure changes, relocation of military 
          units, or base closures and realignments (sec. 573)....   912
        Payment of private boarding school tuition for military 
          dependents in overseas areas not served by Defense 
          Dependents' Education System schools (sec. 574)........   913
    Subtitle H--Military Families................................   913
        Department of Defense Military Family Readiness Council 
          and policy and plans for military family readiness 
          (sec. 581).............................................   913
        Yellow Ribbon Reintegration Program (sec. 582)...........   913
        Study to enhance and improve support services and 
          programs for families of members of regular and reserve 
          components undergoing deployment (sec. 583)............   914
        Protection of child custody arrangements for parents who 
          are members of the armed forces deployed in support of 
          a contingency operation (sec. 584).....................   916
        Family leave in connection with injured members of the 
          Armed Forces (sec. 585)................................   916
        Family care plans and deferment of deployment of single 
          parent or dual military couples with minor dependents 
          (sec. 586).............................................   917
        Education and treatment services for military dependent 
          children with autism (sec. 587)........................   917
        Commendation of efforts of Project Compassion in paying 
          tribute to members of the armed forces who have fallen 
          in the service of the United States (sec. 588).........   918
    Subtitle I--Other Matters....................................   918
        Uniform performance policies for military bands and other 
          musical units (sec. 590)...............................   918
        Transportation of remains of deceased members of the 
          armed forces and certain other persons (sec. 591)......   918
        Expansion of number of academies supportable in any State 
          under STARBASE program (sec. 592)......................   919
        Gift acceptance authority (sec. 593).....................   919
        Conduct by members of the Armed Forces and veterans out 
          of uniform during hoisting, lowering, or passing of 
          United States flag (sec. 594)..........................   919
        Annual report on cases reviewed by National Committee for 
          Employer Support of the Guard and Reserve (sec. 595)...   919
        Modification of Certificate of Release or Discharge from 
          Active Duty (DD Form 214) (sec. 596)...................   920
        Reports on administrative separations of members of the 
          Armed Forces for personality disorder (sec. 597).......   920
        Program to commemorate 50th anniversary of the Vietnam 
          War (sec. 598).........................................   921
        Recognition of members of the Monuments, Fine Arts, and 
          Archives program of the Civil Affairs and Military 
          Government Sections of the Armed Forces during and 
          following World War II (sec. 599)......................   921
    Legislative Provisions Not Adopted...........................   921
        Cold War Victory Medal...................................   921
        Combat veterans mentoring program for current members of 
          the Armed Forces.......................................   921
        Emergency assistance for local educational agencies 
          enrolling military dependent children..................   922
        Establishment of Combat Medevac Badge....................   922
        Expansion of exclusion of military permanent professors 
          from strength limitations for officers below general 
          and flag grades........................................   922
        Heavily impacted local educational agencies..............   922
        Navy Senior Reserve Officers' Training Corps program at 
          University of Miami, Coral Gables, Florida.............   923
        Prohibition on the unauthorized use of names and images 
          of members of the Armed Forces.........................   923
Title VI--Compensation and Other Personnel Benefits..............   924
    Subtitle A--Pay and Allowances...............................   924
        Fiscal year 2008 increase in military basic pay (sec. 
          601)...................................................   924
        Basic allowance for housing for reserve component members 
          without dependents who attend accession training while 
          maintaining a primary residence (sec. 602).............   924
        Extension and enhancement of authority for temporary 
          lodging expenses for members of the armed forces in 
          areas subject to major disaster declaration or for 
          installations experiencing sudden increase in personnel 
          levels (sec. 603)......................................   924
        Income replacement payments for reserve component members 
          experiencing extended and frequent mobilization for 
          active duty service (sec. 604).........................   924
        Midmonth payment of basic pay for contributions of 
          members of the uniformed services participating in 
          Thrift Savings Plan (sec. 605).........................   925
    Subtitle B--Bonuses and Special and Incentive Pays...........   925
        Extension of certain bonus and special pay authorities 
          for reserve forces (sec. 611)..........................   925
        Extension of certain bonus and special pay authorities 
          for health care professionals (sec. 612)...............   925
        Extension of special pay and bonus authorities for 
          nuclear officers (sec. 613)............................   925
        Extension of authorities relating to payment of other 
          bonuses and special pays (sec. 614)....................   926
        Increase in incentive special pay and multiyear retention 
          bonus for medical officers (sec. 615)..................   926
        Increase in dental officer additional special pay (sec. 
          616)...................................................   926
        Increase in maximum monthly rate of hardship duty pay and 
          authority to provide hardship duty pay in a lump sum 
          (sec. 617).............................................   927
        Definition of sea duty for career sea pay to include 
          service as off-cycle crewmembers of multi-crew ships 
          (sec. 618).............................................   927
        Reenlistment bonus for members of the Selected Reserve 
          (sec. 619).............................................   927
        Availability of Selected Reserve accession bonus for 
          persons who previously served in the armed forces for a 
          short period (sec. 620)................................   927
        Availability of nuclear officer continuation pay for 
          officers with more than 26 years of commissioned 
          service (sec. 621).....................................   927
        Waiver of years-of-service limitation on receipt of 
          critical skills retention bonus (sec. 622).............   928
        Accession bonus for participants in the Armed Forces 
          Health Professions Scholarship and Financial Assistance 
          Program (sec. 623).....................................   928
        Payment of assignment incentive pay for reserve members 
          serving in combat zone for more than 22 months (sec. 
          624)...................................................   928
    Subtitle C--Travel and Transportation Allowances.............   929
        Payment of inactive duty training travel costs for 
          certain Selected Reserve members (sec. 631)............   929
        Survivors of deceased members eligible for transportation 
          to attend burial ceremonies (sec. 632).................   929
        Allowance for participation of reserves in electronic 
          screening (sec. 633)...................................   929
        Allowance for civilian clothing for members of the armed 
          forces traveling in connection with medical evacuation 
          (sec. 634).............................................   929
        Payment of moving expenses for Junior Reserve Officers' 
          Training Corps instructors in hard-to-fill positions 
          (sec. 635).............................................   930
    Subtitle D--Retired Pay and Survivor Benefits................   930
        Expansion of combat-related special compensation 
          eligibility (sec. 641).................................   930
        Inclusion of veterans with service-connected disabilities 
          rated as total by reason of unemployability under 
          termination of phase-in of concurrent receipt of 
          retired pay and veterans' disability compensation (sec. 
          642)...................................................   930
        Recoupment of annuity amounts previously paid, but 
          subject to offset for Dependency and Indemnity 
          Compensation (sec. 643)................................   930
        Special survivor indemnity allowance for persons affected 
          by required Survivor Benefit Plan annuity offset for 
          Dependency and Indemnity Compensation (sec. 644).......   931
        Modification of authority of members of the armed forces 
          to designate recipients for payment of death gratuity 
          (sec. 645).............................................   931
        Clarification of application of retired pay multiplier 
          percentage to members of the uniformed services with 
          over 30 years of service (sec. 646)....................   932
        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 (sec. 
          647)...................................................   932
        Computation of years of service for purposes of retired 
          pay for non-regular service (sec. 648).................   932
    Subtitle E--Commissary and Nonappropriated Fund 
      Instrumentality Benefits...................................   933
        Authority to continue commissary and exchange benefits 
          for certain involuntarily separated members of the 
          armed forces (sec. 651)................................   933
        Authorization of installment deductions from pay of 
          employees of nonappropriated fund instrumentalities to 
          collect indebtedness to the United States (sec. 652)...   933
    Subtitle F--Consolidation of Special Pay, Incentive Pay, and 
      Bonus Authorities..........................................   933
        Consolidation of special pay, incentive pay, and bonus 
          authorities of the uniformed services (sec. 661).......   933
        Transitional provisions (sec. 662).......................   934
    Subtitle G--Other Matters....................................   934
        Referral bonus authorities (sec. 671)....................   934
        Expansion of education loan repayment program for members 
          of the Selected Reserve (sec. 672).....................   934
        Ensuring entry into United States after time abroad for 
          permanent resident alien military spouses and children 
          (sec. 673).............................................   935
        Overseas naturalization for military spouses and children 
          (sec. 674).............................................   935
        Modification of amount of back pay for members of Navy 
          and Marine Corps selected for promotion while interned 
          as prisoners of war during World War II to take into 
          account changes in Consumer Price Index (sec. 675).....   935
    Legislative Provisions Not Adopted...........................   935
        Access to defense commissary and exchange system by 
          surviving spouse and dependents of certain disabled 
          veterans...............................................   935
        Annuities for guardians or caretakers of dependent 
          children under Survivor Benefit Plan...................   936
        Disregarding periods of confinement of member in 
          determining benefits for dependents who are victims of 
          abuse by the member....................................   936
        Effective date of paid-up coverage under Survivor Benefit 
          Plan...................................................   936
        Guaranteed pay increase for members of the armed forces 
          of one-half of one percentage point higher than 
          Employment Cost Index..................................   936
        Payment of expenses of travel to the United States for 
          obstetrical purposes of dependents located in very 
          remote locations outside the United States.............   936
        Postal benefits program for members of the armed forces 
          serving in Iraq or Afghanistan.........................   937
        Transportation of additional motor vehicle of members on 
          change of permanent station to or from nonforeign areas 
          outside the continental United States..................   937
Title VII--Health Care Provisions................................   937
    Subtitle A--Improvements to Military Health Benefits.........   937
        One-year extension of prohibition on increases in certain 
          health care costs for members of the uniformed services 
          (sec. 701).............................................   937
        Temporary prohibition on increase in copayments under 
          retail pharmacy system of pharmacy benefits program 
          (sec. 702).............................................   938
        Inclusion of TRICARE retail pharmacy program in federal 
          procurement of pharmaceuticals (sec. 703)..............   938
        Stipend for members of reserve components for health care 
          for certain dependents (sec. 704)......................   938
        Authority for expansion of persons eligible for continued 
          health benefits coverage (sec. 705)....................   939
        Continuation of eligibility for TRICARE Standard coverage 
          for certain members of the Selected Reserve (sec. 706).   939
        Extension of pilot program for health care delivery (sec. 
          707)...................................................   989
        Inclusion of mental health care in definition of health 
          care and report on mental health care services (sec. 
          708)...................................................   940
    Subtitle B--Studies and Reports..............................   940
        Surveys on continued viability of TRICARE Standard and 
          TRICARE Extra (sec. 711)...............................   940
        Report on training in preservation of remains under 
          combat or combat-related conditions (sec. 712).........   941
        Report on patient satisfaction surveys (sec. 713)........   941
        Report on medical physical examinations of members of the 
          armed forces before their deployment (sec. 714)........   941
        Report and study on multiple vaccinations of members of 
          the armed forces (sec. 715)............................   941
        Review of gender- and ethnic group-specific mental health 
          services and treatment for members of the armed forces 
          (sec. 716).............................................   942
        Licensed mental health counselors and the TRICARE program 
          (sec. 717).............................................   942
        Report on funding of the Department of Defense for health 
          care (sec. 718)........................................   943
    Subtitle C--Other Matters....................................   943
        Prohibition on conversion of military medical and dental 
          positions to civilian medical and dental positions 
          (sec. 721).............................................   943
        Establishment of Joint Pathology Center (sec. 722).......   944
    Legislative Provisions Not Adopted...........................   944
        Establishment of nurse practitioner program..............   944
        Sense of Congress on fees and adjustments under the 
          TRICARE program........................................   944
        Implementation of recommendations of Department of 
          Defense Mental Health Task Force.......................   945
Title VIII--Acquisition Policy, Acquisition Management, and 
  Related Matters................................................   945
        Short title (sec. 800)...................................   945
    Subtitle A--Acquisition Policy and Management................   945
        Internal controls for procurements on behalf of the 
          Department of Defense by certain non-defense agencies 
          (sec.801)..............................................   945
        Lead systems integrators (sec. 802)......................   946
        Reinvestment in domestic sources of strategic materials 
          (sec. 803).............................................   946
        Clarification of the protection of strategic materials 
          critical to national security (sec. 804)...............   946
        Procurement of commercial services (sec. 805)............   947
        Specification of amounts requested for procurement of 
          contract services (sec. 806)...........................   948
        Inventories and reviews of contracts for services (sec. 
          807)...................................................   948
        Independent management reviews of contracts for services 
          (sec. 808).............................................   949
        Implementation and enforcement of requirements applicable 
          to undefinitized contractual actions (sec. 809)........   949
        Clarification of limited acquisition authority for 
          Special Operations Command (sec. 810)..................   950
    Subtitle B--Provisions Relating to Major Defense Acquisition 
      Programs...................................................   950
        Requirements applicable to multiyear contracts for the 
          procurement of major systems of the Department of 
          Defense (sec. 811).....................................   950
        Changes to Milestone B certifications (sec. 812).........   951
        Comptroller General report on Department of Defense 
          organization and structure for major defense 
          acquisition programs (sec. 813)........................   951
        Clarification of submission of cost or pricing data on 
          noncommercial modifications of commercial items (sec. 
          814)...................................................   952
        Clarification of rules regarding the procurement of 
          commercial items (sec. 815)............................   952
        Review of systemic deficiencies on major defense 
          acquisition programs (sec. 816)........................   952
        Investment strategy for major defense acquisition 
          programs (sec. 817)....................................   953
        Report on implementation of recommendations on total 
          ownership cost for major weapon systems (sec. 818).....   953
    Subtitle C--Amendments to General Contracting Authorities, 
      Procedures, and Limitations................................   953
        Plan for restricting government-unique contract clauses 
          on commercial contracts (sec. 821).....................   953
        Extension of authority for use of simplified acquisition 
          procedures for certain commercial items (sec. 822).....   953
        Five-year extension of authority to carry out certain 
          prototype projects (sec. 823)..........................   954
        Exemption of Special Operations Command from certain 
          requirements for certain contracts relating to vessels, 
          aircraft, and combat vehicles (sec. 824)...............   954
        Provision of authority to maintain equipment to Unified 
          Combatant Command for Joint Warfighting (sec. 825).....   954
        Market research (sec. 826)...............................   954
        Modification of competition requirements for purchases 
          from Federal Prison Industries (sec. 827)..............   954
        Multiyear contract authority for electricity from 
          renewable energy sources (sec. 828)....................   955
        Procurement of fire resistant rayon fiber for the 
          production of uniforms from foreign sources (sec. 829).   955
        Comptroller General review of non-competitive awards of 
          congressional and executive branch interest items (sec. 
          830)...................................................   955
    Subtitle D--Accountability in Contracting....................   955
        Commission on Wartime Contracting in Iraq and Afghanistan 
          (sec. 841).............................................   955
        Investigation of waste, fraud, and abuse in wartime 
          contracts and contracting processes in Iraq and 
          Afghanistan (sec. 842).................................   956
        Enhanced competition requirements for task and delivery 
          order contracts (sec. 843).............................   956
        Public disclosure of justification and approval documents 
          for noncompetitive contracts (sec. 844)................   956
        Disclosure of government contractor audit findings (sec. 
          845)...................................................   956
        Protection of contractor employees from reprisal for 
          disclosure of certain information (sec. 846)...........   957
        Requirements for senior Department of Defense officials 
          seeking employment with defense contractors (sec. 847).   957
        Report on contractor ethics programs of major defense 
          contractors (sec. 848).................................   957
        Contingency contracting training for personnel outside 
          the acquisition workforce and evaluations of Army 
          Commission recommendations (sec. 849)..................   958
    Subtitle E--Acquisition Workforce Provisions.................   958
        Requirement for section on defense acquisition workforce 
          in strategic human capital plan (sec. 851).............   958
        Department of Defense acquisition workforce development 
          fund (sec. 852)........................................   958
        Extension of authority to fill shortage category 
          positions for certain federal acquisition positions 
          (sec. 853).............................................   959
        Repeal of sunset of acquisition workforce training fund 
          (sec. 854).............................................   959
        Federal acquisition workforce improvements (sec. 855)....   959
    Subtitle F--Contracts in Iraq and Afghanistan................   960
        Memorandum of understanding on matters relating to 
          contracting (sec. 861).................................   960
        Contractors performing private security functions in 
          areas of combat operations (sec. 862)..................   960
        Comptroller General reviews and reports on contracting in 
          Iraq and Afghanistan (sec. 863)........................   961
        Definitions and other general provisions (sec. 864)......   961
    Subtitle G--Defense Materiel Readiness Board.................   961
        Establishment of Defense Materiel Readiness Board (sec. 
          871)...................................................   961
        Critical materiel readiness shortfalls (sec. 872)........   961
    Subtitle H--Other Matters....................................   962
        Clearinghouse for rapid identification and dissemination 
          of commercial information technologies (sec. 881)......   962
        Authority to license certain military designations and 
          likenesses of weapons systems to toy and hobby 
          manufacturers (sec. 882)...............................   962
        Modifications to limitation on contracts to acquire 
          military flight simulator (sec. 883)...................   962
        Requirements relating to waivers of certain domestic 
          source limitations relating to specialty metals (sec. 
          884)...................................................   962
        Telephone services for military personnel serving in 
          combat zones (sec. 885)................................   963
        Enhanced authority to acquire products and services 
          produced in Iraq and Afghanistan (sec. 886)............   963
        Defense Science Board review of Department of Defense 
          policies and procedures for the acquisition of 
          information technology (sec. 887)......................   964
        Green procurement policy (sec. 888)......................   964
        Comptroller General review of use of authority under the 
          Defense Production Act of 1950 (sec. 889)..............   964
        Prevention of arms export control violations (sec. 890)..   964
        Procurement goal for native Hawaiian-serving institutions 
          and Alaska native-serving institutions (sec. 891)......   965
        Competition for procurement of small arms supplied to 
          Iraq and Afghanistan (sec. 892)........................   965
    Legislative Provisions Not Adopted...........................   965
        Clarification of jurisdiction of the United States 
          district courts to hear bid protest disputes involving 
          maritime contracts.....................................   965
        Defense Production Industry Advisory Council.............   965
        Evaluation of cost of compliance with requirement to buy 
          certain articles from American sources.................   965
        Jurisdiction under Contract Disputes Act of 1978 over 
          claims, disputes, and appeals arising out of maritime 
          contracts..............................................   965
        Management structure for the procurement of contract 
          services...............................................   966
        Maximizing fixed-price procurement contracts.............   966
        Prohibition on procurement from beneficiaries of foreign 
          subsidies..............................................   966
        Prohibition on procurement from companies in violation of 
          the Iran and Syria Nonproliferation Act................   966
        Purpose..................................................   966
        Repeal of requirement for identification of essential 
          military items and military system essential item 
          breakout list..........................................   966
        Report on Department of Defense contracting with 
          contractors or subcontractors employing members of the 
          Selected Reserve.......................................   967
        Report to Congress.......................................   967
        Report to Congress required on delays in major phases of 
          acquisition process for major automated information 
          system programs........................................   967
        Role of Chairman of Board in certain reporting processes.   967
        Special authority for use of working capital funds for 
          critical readiness requirements........................   967
Title IX--Department of Defense Organization and Management......   967
    Items of Special Interest....................................   967
        Operationally responsive space...........................   967
        Space acquisition........................................   968
    Legislative Provisions Adopted...............................   969
    Subtitle A--Department of Defense Management.................   969
        Repeal of limitation on major Department of Defense 
          headquarters activities personnel and related report 
          (sec. 901).............................................   969
        Flexibility to adjust the number of deputy chiefs and 
          assistant chiefs (sec. 902)............................   969
        Change in eligibility requirements for appointment to 
          Department of Defense leadership positions (sec. 903)..   969
        Management of the Department of Defense (sec. 904).......   970
        Revision in guidance relating to combatant command 
          acquisition authority (sec. 905).......................   970
        Department of Defense Board of Actuaries (sec. 906)......   971
        Modification of background requirement of individuals 
          appointed as Under Secretary of Defense for 
          Acquisition, Technology, and Logistics (sec. 907)......   971
        Assistant secretaries of the military departments for 
          acquisition matters; principal military deputies (sec. 
          908)...................................................   971
        Sense of Congress on term of office of the Director of 
          Operational Test and Evaluation (sec. 909).............   972
    Subtitle B--Space Activities.................................   972
        Space Protection Strategy (sec. 911).....................   972
        Biennial report on management of space cadre within the 
          Department of Defense (sec. 912).......................   973
        Additional report on oversight of acquisition for defense 
          space programs (sec. 913)..............................   973
    Subtitle C--Chemical Demilitarization Program................   973
        Chemical demilitarization citizens advisory commissions 
          (sec. 921).............................................   973
        Sense of Congress on completion of destruction of United 
          States chemical weapons stockpile (sec. 922)...........   973
        Repeal of certain qualifications requirement for director 
          of chemical demilitarization management organization 
          (sec. 923).............................................   974
        Modification of termination of assistance to State and 
          local governments after completion of the destruction 
          of the United States chemical weapons stockpile (sec. 
          924)...................................................   974
    Subtitle D--Intelligence-Related Matters.....................   975
        Technical amendments to title 10, United States Code, 
          arising from enactment of the Intelligence Reform and 
          Terrorism Prevention Act of 2004 (sec. 931)............   975
    Subtitle E--Roles and Missions Analysis......................   975
        Requirement for quadrennial roles and missions review 
          (sec. 941).............................................   975
        Joint Requirements Oversight Council additional duties 
          relating to core mission areas (sec. 942)..............   975
        Requirement for certification of major systems prior to 
          technology development (sec. 943)......................   975
        Presentation of future-years mission budget by core 
          mission area (sec. 944)................................   976
    Subtitle F--Other Matters....................................   976
        Department of Defense consideration of effect of climate 
          change on department facilities, capabilities, and 
          missions (sec. 951)....................................   976
        Interagency policy coordination (sec. 952)...............   976
        Expansion of employment creditable under service 
          agreements under National Security Education Program 
          (sec. 953).............................................   976
        Board of Regents for the Uniformed Services University of 
          the Health Sciences (sec. 954).........................   977
        Establishment of Department of Defense School of Nursing 
          (sec. 955).............................................   977
        Inclusion of commanders of Western Hemisphere combatant 
          commands in Board of Visitors of Western Hemisphere 
          Institute for Security Cooperation (sec. 956)..........   978
        Comptroller General assessment of reorganization of the 
          office of the Under Secretary of Defense for Policy 
          (sec. 957).............................................   979
        Reports on foreign language proficiency (sec. 958).......   979
    Legislative Provisions Not Adopted...........................   980
        Future capability planning by Joint Requirements 
          Oversight Council......................................   980
        Redesignation of the Department of the Navy as the 
          Department of the Navy and Marine Corps................   980
        Revisions in functions and activities of special 
          operations.............................................   980
        Space posture review.....................................   980
        United States Military Cancer Institute..................   981
        Western Hemisphere Center for Excellence in Human Rights.   981
Title X--General Provisions......................................   981
    Items of Special Interest....................................   981
        Ship disposal............................................   981
        Table of congressionally directed spending and related 
          items..................................................   982
    Subtitle A--Financial Matters................................   982
        General transfer authority (sec. 1001)...................   982
        United States contribution to NATO common-funded budgets 
          in fiscal year 2008 (sec. 1002)........................   982
        Authorization of additional emergency supplemental 
          appropriations for fiscal year 2007 (sec. 1003)........   983
        Modification of fiscal year 2007 general transfer 
          authority (sec. 1004)..................................   983
        Financial management transformation initiative for the 
          Defense Agencies (sec. 1005)...........................   983
        Repeal of requirement for two-year budget cycle for the 
          Department of Defense (sec. 1006)......................   983
    Subtitle B--Policy Relating to Vessels and Shipyards.........   983
        Limitation on leasing of vessels (sec. 1011).............   983
        Policy relating to major combatant vessels of the strike 
          forces of the United States Navy (sec. 1012)...........   984
    Subtitle C--Counter-Drug Activities..........................   986
        Extension of authority for joint task forces to provide 
          support to law enforcement agencies conducting counter-
          terrorism activities (sec. 1021).......................   986
        Expansion of authority to provide additional support for 
          counterdrug activities in certain foreign countries 
          (sec. 1022)............................................   986
        Report on counternarcotics assistance for the Government 
          of Haiti (sec. 1023)...................................   986
    Subtitle D--Miscellaneous Authorities and Limitations........   987
        Provision of Air Force support and services to foreign 
          military and state aircraft (sec. 1031)................   987
        Department of Defense participation in Strategic Airlift 
          Capability Partnership (sec. 1032).....................   987
        Improved authority to provide rewards for assistance in 
          combating terrorism (sec. 1033)........................   987
        Support for non-federal development and testing of 
          material for chemical agent defense (sec. 1034)........   988
        Prohibition on sale of F-14 fighter aircraft and related 
          parts (sec. 1035)......................................   988
    Subtitle E--Reports..........................................   988
        Extension and modification of report relating to hardened 
          and deeply buried targets (sec. 1041)..................   988
        Report on joint modeling and simulation activities (sec. 
          1042)..................................................   989
        Renewal of submittal of plans for prompt global strike 
          capability (sec. 1043).................................   989
        Report on workforce required to support the nuclear 
          missions of the Navy and the Department of Energy (sec. 
          1044)..................................................   989
        Comptroller General report on Defense Finance and 
          Accounting Service response to Butterbaugh v. 
          Department of Justice (sec. 1045)......................   990
        Study on size and mix of airlift force (sec. 1046).......   990
        Report on feasibility of establishing a domestic military 
          aviation national training center (sec. 1047)..........   990
        Limited field user evaluations for combat helmet pad 
          suspension systems (sec. 1048).........................   990
        Study on national security interagency system (sec. 1049)   991
        Report on solid rocket motor industrial base (sec. 1050).   992
        Reports on establishment of a memorial for members of the 
          armed forces who died in the air crash in Bakers Creek, 
          Australia, and establishment of other memorials in 
          Arlington National Cemetery (sec. 1051)................   992
    Subtitle F--Other Matters....................................   992
        Reimbursement for National Guard support provided to 
          federal agencies (sec. 1061)...........................   992
        Congressional commission on the strategic posture of the 
          United States (sec. 1062)..............................   993
        Technical and clerical amendments (sec. 1063)............   994
        Repeal of certification requirement (sec. 1064)..........   994
        Maintenance of capability for space-based nuclear 
          detection (sec. 1065)..................................   994
        Sense of Congress regarding detainees at Naval Station, 
          Guantanamo Bay, Cuba (sec. 1066).......................   994
        A report on transferring individuals detained at Naval 
          Station, Guantanamo Bay, Cuba (sec. 1067)..............   994
        Repeal of provisions in section 1076 of Public Law 109-
          364 relating to use of armed forces in major public 
          emergencies (sec. 1068)................................   995
        Standards required for entry to military installations in 
          United States (sec. 1069)..............................   995
        Revised nuclear posture review (sec. 1070)...............   996
        Termination of Commission on the Implementation of the 
          New Strategic Posture of the United States (sec. 1071).   996
        Security clearances; limitations (sec. 1072).............   996
        Improvements in the process for the issuance of security 
          clearances (sec. 1073).................................   997
        Protection of certain individuals (sec. 1074)............   997
        Modification of authorities on Commission to Assess the 
          Threat to the United States from Electromagnetic Pulse 
          Attack (sec. 1075).....................................   997
        Sense of Congress on Small Business Innovation Research 
          program (sec. 1076)....................................   998
        Revision of proficiency flying definition (sec. 1077)....   998
        Qualifications for public aircraft status of aircraft 
          under contract with the armed forces (sec. 1078).......   998
        Communications with the Committees on Armed Services of 
          the Senate and the House of Representatives (sec. 1079)   999
        Retention of reimbursement for provision of reciprocal 
          fire protection services (sec. 1080)...................   999
        Pilot program on commercial fee-for-service air refueling 
          support for the Air Force (sec. 1081)..................   999
        Advisory panel on Department of Defense capabilities for 
          support of civil authorities after certain incidents 
          (sec. 1082)............................................  1000
        Terrorism exception to immunity (sec. 1083)..............  1000
    Legislative Provisions Not Adopted...........................  1002
        Hate crimes..............................................  1002
        Comprehensive study and support for criminal 
          investigations and prosecutions by State and local law 
          enforcement officials..................................  1002
        Extension of period for transfer of funds to Foreign 
          Currency Fluctuations, Defense account.................  1002
        Minimum annual purchase amounts for airlift from carriers 
          participating in the Civil Reserve Air Fleet...........  1003
        Comptroller General review of the Joint Improvised 
          Explosive Device Defeat Organization...................  1003
        Commercial aviation technologies.........................  1004
        Review of Department of Defense procedures to classify 
          excess defense articles and defense services with 
          military technology components.........................  1004
        Additional Weapons of Mass Destruction Civil Support 
          Teams..................................................  1004
        Study and report on use of power management software.....  1005
        Establishment of National Foreign Language Coordination 
          Council................................................  1005
        Grant of federal charter to Korean War Veterans 
          Association, Incorporated..............................  1005
        Sense of Senate on General David Petraeus................  1005
        Sense of Congress on equipment for the National Guard to 
          defend the homeland....................................  1006
        Sense of the Senate on Air Force use of towbarless 
          aircraft ground equipment..............................  1006
        Designation of Charlie Norwood Department of Veterans 
          Affairs Medical Center.................................  1007
        Commercialization pilot program..........................  1007
        National center for human performance....................  1007
        Veteran small business...................................  1007
Title XI--Civilian Personnel Matters.............................  1007
        Extension of authority to waive annual limitation on 
          total compensation paid to federal civilian employees 
          working overseas under areas of United States Central 
          Command (sec. 1101)....................................  1007
        Continuation of life insurance coverage for federal 
          employees called to active duty (sec. 1102)............  1008
        Transportation of dependents, household effects, and 
          personal property to former home following death of 
          federal employee where death resulted from disease or 
          injury incurred in the Central Command area of 
          responsibility (sec. 1103).............................  1008
        Special benefits for civilian employees assigned on 
          deployment temporary change of station (sec. 1104).....  1008
        Death gratuity authorized for federal employees (sec. 
          1105)..................................................  1008
        Modifications to the National Security Personnel System 
          (sec. 1106)............................................  1009
        Requirement for full implementation of personnel 
          demonstration project (sec. 1107)......................  1009
        Authority for inclusion of certain Office of Defense 
          Research and Engineering positions in experimental 
          personnel program for scientific and technical 
          personnel (sec. 1108)..................................  1010
        Pilot program for the temporary assignment of information 
          technology personnel to private sector organizations 
          (sec. 1109)............................................  1010
        Compensation for federal wage system employees for 
          certain travel hours (sec. 1110).......................  1011
        Travel compensation for wage grade personnel (sec. 1111).  1011
        Accumulation of annual leave by senior level employees 
          (sec. 1112)............................................  1011
        Uniform allowances for civilian employees (sec. 1113)....  1011
        Flexibility in setting pay for employees who move from a 
          Department of Defense or Coast Guard nonappropriated 
          fund instrumentality position to a position in the 
          general schedule pay system (sec. 1114)................  1011
        Retirement service credit for service as cadet or 
          midshipman at a military service academy (sec. 1115)...  1012
        Authorization for increased compensation for faculty and 
          staff of the Uniformed Services University of the 
          Health Sciences (sec. 1116)............................  1012
        Report on establishment of a scholarship program for 
          civilian mental health professionals (sec. 1117).......  1012
    Legislative Provisions Not Adopted...........................  1012
        Annuity commencing dates.................................  1012
        Physicians and health care professionals comparability 
          allowances.............................................  1012
Title XII--Matters Relating to Foreign Nations...................  1013
    Subtitle A--Assistance and Training..........................  1013
        Military-to-military contacts and comparable activities 
          (sec. 1201)............................................  1013
        Authority for support of military operations to combat 
          terrorism (sec. 1202)..................................  1013
        Medical care and temporary duty travel expenses for 
          liaison officers of certain foreign nations (sec. 1203)  1013
        Extension and expansion of Department of Defense 
          authority to participate in multinational military 
          centers of excellence (sec.1204).......................  1013
        Reauthorization of Commanders' Emergency Response Program 
          (sec. 1205)............................................  1014
        Authority to build the capacity of the Pakistan Frontier 
          Corps (sec. 1206)......................................  1015
        Authority to equip and train foreign personnel to assist 
          in accounting for missing United States Government 
          personnel (sec. 1207)..................................  1016
        Authority to provide automatic identification system data 
          on maritime shipping to foreign countries and 
          international organizations (sec. 1208)................  1016
        Report on foreign-assistance related programs carried out 
          by the Department of Defense (sec. 1209)...............  1016
        Extension and enhancement of authority for security and 
          stabilization assistance (sec. 1210)...................  1016
        Government Accountability Office report on Global Peace 
          Operations Initiative (sec. 1211)......................  1017
        Repeal on limitations on military assistance under the 
          American Servicemembers' Protection Act of 2002 (sec. 
          1212)..................................................  1017
    Subtitle B--Matters Relating to Iraq and Afghanistan.........  1017
        Modification of authorities relating to the office of the 
          Special Inspector General for Iraq Reconstruction (sec. 
          1221)..................................................  1017
        Limitation on availability of funds for certain purposes 
          relating to Iraq (sec. 1222)...........................  1017
        Report on United States policy and military operations in 
          Iraq (sec. 1223).......................................  1018
        Report on a comprehensive set of performance indicators 
          and measures for progress toward military and political 
          stability in Iraq (sec. 1224)..........................  1018
        Report on support from Iran for attacks against coalition 
          forces in Iraq (sec. 1225).............................  1018
        Sense of Congress on the consequences of a failed state 
          in Iraq (sec. 1226)....................................  1019
        Sense of Congress on federalism in Iraq (sec. 1227)......  1019
        Tracking and monitoring of defense articles provided to 
          the Government of Iraq and other individuals and groups 
          in Iraq (sec. 1228)....................................  1019
        Special Inspector General for Afghanistan Reconstruction 
          (sec. 1229)............................................  1020
        Report on progress toward security and stability in 
          Afghanistan (sec. 1230)................................  1020
        United States plan for sustaining the Afghanistan 
          National Security Forces (sec. 1231)...................  1021
        United States strategy for enhancing security and 
          stability in the border region between Afghanistan and 
          Pakistan (sec. 1232)...................................  1022
        Reimbursement of certain coalition nations for support 
          provided to United States military operations (sec. 
          1233)..................................................  1023
        Logistical support for coalition forces supporting 
          operations in Iraq and Afghanistan (sec. 1234).........  1023
    Subtitle C--Iraq Refugee Crisis..............................  1023
        Refugee Crisis in Iraq Act (sec. 1241-1249)..............  1023
    Subtitle D--Other Authorities and Limitations................  1025
        Cooperative opportunities documents under cooperative 
          research and development agreements with NATO 
          organizations and other allied and friendly foreign 
          countries (sec. 1251)..................................  1025
        Extension and expansion of temporary authority to use 
          acquisition and cross-servicing agreements to lend 
          military equipment for personnel protection and 
          survivability (sec. 1252)..............................  1025
        Acceptance of funds from the Government of Palau to 
          defray expenditures attendant to the operation of 
          United States military Civic Action Team in Palau (sec. 
          1253)..................................................  1026
        Repeal of requirement relating to North Korea (sec. 1254)  1026
        Justice for Osama bin Laden and other leaders of al Qaeda 
          (sec. 1255)............................................  1026
        Extension of Counterproliferation Program Review 
          Committee (sec. 1256)..................................  1027
        Sense of Congress on the Western Hemisphere Institute for 
          Security Cooperation (sec. 1257).......................  1027
        Sense of Congress on Iran (sec. 1258)....................  1027
    Subtitle E--Reports..........................................  1028
        One-year extension of update on report on claims relating 
          to the bombing of the Labelle Discotheque (sec. 1261)..  1028
        Report on United States policy toward Darfur, Sudan (sec. 
          1262)..................................................  1028
        Inclusion of information on asymmetric capabilities in 
          annual report on military power of the People's 
          Republic of China (sec. 1263)..........................  1028
        Report on application of the Uniform Code of Military 
          Justice to civilians accompanying the armed forces 
          during a time of declared war or contingency operation 
          (sec. 1264)............................................  1028
        Report on family reunions between United States citizens 
          and their relatives in North Korea (sec. 1265).........  1028
        Reports on prevention of mass atrocities (sec. 1266).....  1029
        Report on threats to the United States from ungoverned 
          areas (sec. 1267)......................................  1029
    Legislative Provisions Not Adopted...........................  1029
        Limitation on assistance to the Government of Thailand...  1029
        Presidential report on policy objectives and United 
          States strategy regarding Iran.........................  1030
        Report on Department of Defense efforts to build the 
          capacity of the Government of Iraq to carry out 
          reconstruction activities in Iraq......................  1030
        Sense of Congress on responsibilities of the Iraqi 
          Council of Ministers to enact laws to achieve political 
          reform and diminish support for the insurgency in Iraq.  1030
        Report on planning and implementation of the United 
          States engagement and policy toward Darfur.............  1030
        Report on progress of the Department of Defense's 
          counternarcotics program for Afghanistan...............  1031
        Sense of Congress concerning the strategic military 
          capabilities and intentions of the People's Republic of 
          China..................................................  1031
        Sense of Congress on the capture of Osama bin Laden and 
          the al Qaeda leadership................................  1031
Title XIII--Cooperative Threat Reduction With States of the 
  Former Soviet Union............................................  1032
        Specification of Cooperative Threat Reduction programs 
          and funds (sec. 1301)..................................  1032
        Funding allocations (sec. 1302)..........................  1032
        Specification of Cooperative Threat Reduction programs in 
          states outside the former Soviet Union (sec. 1303).....  1033
        Repeal of restrictions on assistance to states of the 
          former Soviet Union for Cooperative Threat Reduction 
          (sec. 1304)............................................  1033
        Modification of authority to use Cooperative Threat 
          Reduction funds outside the former Soviet Union (sec. 
          1305)..................................................  1033
        New initiatives for the Cooperative Threat Reduction 
          program (sec. 1306)....................................  1034
        Report relating to chemical weapons destruction at 
          Shchuch'ye, Russia (sec. 1307).........................  1035
        National Academy of Sciences study of prevention of 
          proliferation of biological weapons (sec. 1308)........  1036
    Legislative Provision Not Adopted............................  1036
        Clarification of amounts for Cooperative Threat Reduction 
          programs...............................................  1036
Title XIV--Other Authorizations..................................  1036
    Subtitle A--Military Programs................................  1036
    .............................................................
        Summary and explanation of tables........................  1036
        Working capital funds (sec. 1401)........................  1042
        National Defense Sealift Fund (sec. 1402)................  1042
        Defense Health Program (sec. 1403).......................  1042
        Chemical agents and munitions destruction, Defense (sec. 
          1404)..................................................  1042
        Drug interdiction and counter-drug activities, Defense-
          wide (sec. 1405).......................................  1042
        Defense Inspector General (sec. 1406)....................  1042
    Subtitle B--National Defense Stockpile.......................  1043
        Authorized uses of National Defense Stockpile funds (sec. 
          1411)..................................................  1043
        Revisions to required receipt objectives for previously 
          authorized disposals from the National Defense 
          Stockpile (sec. 1412)..................................  1043
        Disposal of ferromanganese (sec. 1413)...................  1043
        Disposal of chrome metal (sec. 1414).....................  1043
    Subtitle C--Armed Forces Retirement Home.....................  1044
        Authorization of appropriations for Armed Forces 
          Retirement Home (sec. 1421)............................  1044
        Administration and oversight of the Armed Forces 
          Retirement Home (sec. 1422)............................  1044
    Legislative Provisions Not Adopted...........................  1044
        Additional amount for drug interdiction and counterdrug 
          activities with respect to Afghanistan.................  1044
        Reduction in certain authorizations due to savings from 
          lower inflation........................................  1045
        Pilot program to establish an Army Wounded Warrior 
          battalion at an appropriate active duty base...........  1045
        Establishment of medical support fund for support of 
          members of the armed forces returning to military 
          service or civilian life...............................  1045
        Oversight Board for Wounded Warriors.....................  1045
        Study and report of waiting periods for appointments at 
          Department of Veterans Affairs medical facilities......  1045
        Increase in physicians at hospitals of the Department of 
          Veterans Affairs.......................................  1046
Title XV--Authorization of Additional Appropriations for 
  Operation Iraqi Freedom and Operation Enduring Freedom.........  1046
        Overview.................................................  1046
    Explanation of Tables........................................  1046
        Explanation of tables....................................  1046
    Legislative Provisions Adopted...............................  1145
        Purpose (sec. 1501)......................................  1145
        Army procurement (sec. 1502).............................  1145
        Navy and Marine Corps procurement (sec. 1503)............  1145
        Air Force procurement (sec. 1504)........................  1145
        Joint Improvised Explosive Device Defeat Fund (sec. 1505)  1145
        Defense-wide activities procurement (sec. 1506)..........  1146
        Research, Development, Test, and Evaluation (sec. 1507)..  1146
        Operation and maintenance (sec. 1508)....................  1146
        Working capital funds (sec. 1509)........................  1146
        Other Department of Defense programs (sec. 1510).........  1146
        Iraq Freedom Fund (sec. 1511)............................  1147
        Iraq Security Forces Fund (sec. 1512)....................  1147
        Afghanistan Security Forces Fund (sec. 1513).............  1147
        Military personnel (sec. 1514)...........................  1147
        Strategic Readiness Fund (sec. 1515).....................  1147
        Treatment as additional authorizations (sec. 1516).......  1148
        Special transfer authority (sec. 1517)...................  1148
    Budget Items.................................................  1148
        Army tactical radio modernization plans..................  1148
        Blast injury research....................................  1149
        Grow the force transfer..................................  1150
    Item of Special Interest.....................................  1150
        Reactive armor for EFP protection........................  1150
    Legislative Provision Not Adopted............................  1151
        Improvised explosive device protection for military 
          vehicles...............................................  1151
        Reports on mitigation of effects of explosively formed 
          projectiles and mines..................................  1151
Title XVI--Wounded Warrior Matters...............................  1152
        Wounded Warrior Act--Overview............................  1152
        Short title (sec. 1601)..................................  1153
        General definitions (sec. 1602)..........................  1153
        Consideration of gender-specific needs of recovering 
          service members and veterans (sec. 1603)...............  1153
    Subtitle A--Policy on Improvements to Care, Management, and 
      Transition of Recovering Service members...................  1154
        Comprehensive policy on improvements to care, management, 
          and transition of recovering service members (sec. 
          1611)..................................................  1154
        Medical evaluations and physical disability evaluations 
          of recovering service members (sec. 1612)..............  1156
        Return of recovering service members to active duty in 
          the armed forces (sec. 1613)...........................  1157
        Transition of recovering service members from care and 
          treatment through the Department of Defense to care, 
          treatment, and rehabilitation through the Department of 
          Veterans Affairs (sec. 1614)...........................  1157
        Reports (sec. 1615)......................................  1158
        Establishment of a wounded warrior resource center (sec. 
          1616)..................................................  1159
        Notification to Congress of hospitalization of combat 
          wounded service members (sec. 1617)....................  1159
        Comprehensive plan on prevention, diagnosis, mitigation, 
          treatment, and rehabilitation of, and research on, 
          traumatic brain injury, post-traumatic stress disorder, 
          and other mental health conditions in members of the 
          armed forces (sec. 1618)...............................  1160
    Subtitle B--Centers of Excellence in the Prevention, 
      Diagnosis, Mitigation, Treatment, and Rehabilitation of 
      Traumatic Brain Injury, Post-Traumatic Stress Disorder, and 
      Eye Injuries...............................................  1160
        Center of excellence in the prevention, diagnosis, 
          mitigation, treatment, and rehabilitation of traumatic 
          brain injury (sec. 1621)...............................  1160
        Center of excellence in prevention, diagnosis, 
          mitigation, treatment, and rehabilitation of post-
          traumatic stress disorder and other mental health 
          conditions (sec. 1622).................................  1160
        Center of excellence in prevention, diagnosis, 
          mitigation, treatment, and rehabilitation of military 
          eye injuries (sec. 1623)...............................  1161
        Report on establishment of centers of excellence (sec. 
          1624)..................................................  1161
    Subtitle C--Health Care Matters..............................  1161
        Medical care and other benefits for members and former 
          members of the armed forces with severe injuries or 
          illnesses (sec. 1631)..................................  1161
        Reimbursement of travel expenses of retired members with 
          combat-related disabilities for follow-on specialty 
          care, services, and supplies (sec. 1632)...............  1162
        Respite care and other extended care benefits for members 
          of the uniformed services who incur a serious injury or 
          illness on active duty (sec. 1633).....................  1162
        Reports (sec. 1634)......................................  1162
        Fully interoperable electronic personal health 
          information for the Department of Defense and 
          Department of Veterans Affairs (sec. 1635).............  1163
        Enhanced personnel authorities for the Department of 
          Defense for health care professionals for care and 
          treatment of wounded and injured members of the armed 
          forces (sec. 1636).....................................  1163
        Continuation of transitional health benefits for members 
          of the armed forces pending resolution of service-
          related medical conditions (sec. 1637).................  1164
    Subtitle D--Disability Matters...............................  1164
        Utilization of veterans' presumption of sound condition 
          in establishing eligibility of members of the armed 
          forces for retirement for disability (sec. 1641).......  1164
        Requirements and limitations on Department of Defense 
          determinations of disability with respect to members of 
          the armed forces (sec. 1642)...........................  1164
        Review of separation of members of the armed forces 
          separated from service with a disability rating of 20 
          percent disabled or less (sec. 1643)...................  1165
        Authorization of pilot programs to improve disability 
          evaluation system for members of the armed forces (sec. 
          1644)..................................................  1165
        Reports on Army Medical Action Plan in response to 
          deficiencies in the Army physical disability evaluation 
          system (sec. 1645).....................................  1166
        Enhancement of disability severance pay for Members of 
          the armed forces (sec. 1646)...........................  1166
        Assessments of continuing utility and future role of 
          temporary disability retired list (sec. 1647)..........  1166
        Standards for military medical treatment facilities, 
          specialty medical care facilities, and military 
          quarters housing patients and annual report on such 
          facilities (sec. 1648).................................  1167
        Reports on Army Medical Action Plan in response to 
          deficiencies identified at Walter Reed Army Medical 
          Center (sec. 1649).....................................  1167
        Required certifications in connection with closure of 
          Walter Reed Army Medical Center, District of Columbia 
          (sec. 1650)............................................  1167
        Handbook for members of the armed forces on compensation 
          and benefits available for serious injuries and 
          illnesses (sec. 1651)..................................  1167
    Subtitle E--Studies and Reports..............................  1168
        Study on physical and mental health and other 
          readjustment needs of members and former Members of the 
          armed forces who deployed in Operation Iraqi Freedom 
          and Operation Enduring Freedom and their families (sec. 
          1661)..................................................  1168
        Access of recovering service members to adequate 
          outpatient residential facilities (sec. 1662)..........  1168
        Study and report on support services for families of 
          recovering service members (sec. 1663).................  1169
        Report on traumatic brain injury classifications (sec. 
          1664)..................................................  1169
        Evaluation of the Polytrauma Liaison Officer/Non-
          Commissioned Officer Program (sec. 1665)...............  1169
    Subtitle F--Other Matters....................................  1170
        Prohibition on transfer of resources from medical care 
          (sec. 1671)............................................  1170
        Medical care for families of members of the armed forces 
          recovering from serious injuries or illnesses (sec. 
          1672)..................................................  1170
        Improvement of Medical tracking system for Members of the 
          armed forces deployed overseas (sec. 1673).............  1170
        Guaranteed funding for Walter Reed Army Medical Center, 
          District of Columbia (sec. 1674).......................  1171
        Use of leave transfer program by wounded veterans who are 
          Federal employees (sec. 1675)..........................  1171
        Moratorium on conversion to contractor performance of 
          Department of Defense functions at military medical 
          facilities (sec. 1676).................................  1171
    Legislative Provisions Not Adopted...........................  1172
        Establishment of medical support fund for support of 
          members of the armed forces returning to military 
          service or civilian life...............................  1172
        Funding for improved diagnosis, treatment, and 
          rehabilitation of members of the armed forces with 
          traumatic brain injury or post-traumatic stress 
          disorder...............................................  1172
        Personnel shortages in the mental health workforce of the 
          Department of Defense, including personnel in the 
          mental health workforce................................  1172
        Pilot program to establish an Army Wounded Warrior 
          battalion at an appropriate active duty base...........  1173
        Oversight Board for Wounded Warriors.....................  1173
Title XVII--Veterans Matters.....................................  1173
    Legislative Provisions Adopted...............................  1173
        Sense of Congress on Department of Veterans Affairs 
          efforts in the rehabilitation and reintegration of 
          veterans with traumatic brain injury (sec. 1701).......  1173
        Individual rehabilitation and community reintegration 
          plans for veterans and others with traumatic brain 
          injury (sec. 1702).....................................  1174
        Use of non-Department of Veterans Affairs facilities for 
          implementation of rehabilitation and community 
          reintegration plans for traumatic brain injury (sec. 
          1703)..................................................  1174
        Research, education, and clinical care program on 
          traumatic brain injury (sec. 1704).....................  1175
        Pilot program on assisted living services for veterans 
          with traumatic brain injury (sec. 1705)................  1175
        Provision of age-appropriate nursing home care (sec. 
          1706)..................................................  1175
        Extension of period of eligibility for health care for 
          veterans of combat service during certain periods of 
          hostilities and war (sec. 1707)........................  1175
        Service-connection and assessments for mental health 
          conditions in veterans (sec. 1708).....................  1176
        Modification of requirements for furnishing outpatient 
          dental services to veterans with service-connected 
          dental conditions or disabilities (sec. 1709)..........  1176
        Clarification of purpose of outreach services program of 
          Department of Veterans Affairs (sec. 1710).............  1176
        Designation of fiduciary or trustee for purposes of 
          Traumatic Servicemembers' Group Life Insurance (sec. 
          1711)..................................................  1176
    Legislative Provisions Not Adopted...........................  1177
        Demonstration program on preventing veterans at-risk of 
          homelessness from becoming homeless....................  1177
        Increase in physicians at hospitals of the Department of 
          Veterans Affairs.......................................  1177
        Research on traumatic brain injury.......................  1177
        Study and report of waiting periods for appointments at 
          Department of Veterans Affairs medical facilities......  1177
Title XVIII--National Guard Bureau Matters and Related Matters...  1178
        Short title (sec. 1801)..................................  1178
    Subtitle A--National Guard Bureau............................  1178
        Appointment, grade, duties, and retirement of the Chief 
          of the National Guard Bureau (sec. 1811)...............  1178
        Establishment of National Guard Bureau as joint activity 
          of Department of Defense (sec. 1812)...................  1179
        Enhancement of functions of National Guard Bureau (sec. 
          1813)..................................................  1179
        Requirement for Secretary of Defense to prepare plan for 
          response to natural disasters and terrorist events 
          (sec. 1814)............................................  1180
        Determination of Department of Defense civil support 
          requirements (sec. 1815)...............................  1180
    Subtitle B--Additional Reserve Component Enhancement.........  1181
        United States Northern Command (sec. 1821)...............  1181
        Council of Governors (sec. 1822).........................  1181
        Plan for Reserve Forces Policy Board (sec. 1823).........  1181
        High-level positions authorized or required to be held by 
          reserve component general or flag officers (sec. 1824).  1182
        Retirement age and years of service limitations on 
          certain reserve general and flag officers (sec. 1825)..  1182
        Additional reporting requirements relating to National 
          Guard equipment (sec. 1826)............................  1183
    Legislative Provision Not Adopted............................  1183
        Promotion of reserve officers to lieutenant general grade  1183
DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS.................  1183
    Budget Items.................................................  1183
        Summary and explanation of funding tables................  1183
    Legislative Provisions Adopted...............................  1210
        Short title (sec. 2001)..................................  1210
        Expiration of authorizations and amounts required to be 
          specified by law (sec. 2002)...........................  1210
    Legislative Provision Not adopted............................  1210
        Effective date...........................................  1210
Title XXI--Army..................................................  1210
    Budget Items.................................................  1210
        Summary..................................................  1210
    Item of Special Interest.....................................  1211
        Unspecified minor construction, Army.....................  1211
    Legislative Provisions Adopted...............................  1211
        Authorized Army construction and land acquisition 
          projects (sec. 2101)...................................  1211
        Family housing (sec. 2102)...............................  1212
        Improvements to military family housing units (sec. 2103)  1212
        Authorization of appropriations, Army (sec. 2104)........  1212
        Termination of authority to carry out fiscal year 2007 
          Army projects for which funds were not appropriated 
          (sec. 2105)............................................  1212
        Technical amendments to Military Construction 
          Authorization Act for Fiscal Year 2007 (sec. 2106).....  1215
        Modification of authority to carry out certain fiscal 
          year 2006 projects (sec. 2107).........................  1215
        Extension of authorization of certain fiscal year 2005 
          project (sec. 2108)....................................  1215
        Ground lease, SOUTHCOM headquarters facility, Miami-
          Doral, Florida (sec. 2109).............................  1215
Title XXII--Navy.................................................  1216
    Budget Items.................................................  1216
        Summary..................................................  1216
    Legislative Provisions Adopted...............................  1216
        Authorized Navy construction and land acquisition 
          projects (sec. 2201)...................................  1216
        Family housing (sec. 2202)...............................  1216
        Improvements to military family housing units (sec. 2203)  1217
        Authorization of appropriations, Navy (sec. 2204)........  1217
        Termination..............................................  1217
        Modification of authority to carry out certain fiscal 
          year 2005 project (sec. 2206)..........................  1219
        Repeal of authorization for construction of Navy outlying 
          landing field, Washington County, North Carolina (sec. 
          2207)..................................................  1219
Title XXIII--Air Force...........................................  1219
    Legislative Provisions Adopted...............................  1219
        Authorized Air Force construction and land acquisition 
          projects (sec. 2301)...................................  1219
        Family housing (sec. 2302)...............................  1219
        Improvements to military family housing units (sec. 2303)  1220
        Authorization of appropriations, Air Force (sec. 2304)...  1220
        Termination of authority to carry out fiscal year 2007 
          Air Force projects for which funds were not 
          appropriated (sec. 2305)...............................  1220
        Modification of authority to carry out certain fiscal 
          year 2006 projects (sec. 2306).........................  1222
        Extension of authorizations of certain fiscal year 2005 
          projects (sec. 2307)...................................  1222
        Extension of authorizations of certain fiscal year 2004 
          projects (sec. 2308)...................................  1222
Title XXIV--Defense Agencies.....................................  1222
    Budget Items.................................................  1222
        Summary..................................................  1222
    Legislative Provisions Adopted...............................  1223
        Authorized defense agencies construction and land 
          acquisition projects (sec. 2401).......................  1223
        Energy conservation projects (sec. 2402).................  1223
        Authorization of appropriations, defense agencies (sec. 
          2403)..................................................  1223
        Termination or modification of authority to carry out 
          fiscal year 2007 defense agencies projects (sec. 2404).  1223
        Munitions demilitarization facilities, Blue Grass Army 
          Depot, Kentucky, and Pueblo Chemical Activity, Colorado 
          (sec. 2405)............................................  1226
        Extension of authorizations of certain fiscal year 2005 
          projects (sec. 2406)...................................  1226
    Legislative Provision Not Adopted............................  1226
        Wounded warrior facility support.........................  1226
Title XXV--North Atlantic Treaty Organization Security Investment 
  Program........................................................  1226
    Legislative Provisions Adopted...............................  1226
        Authorized NATO construction and land acquisition 
          projects (sec. 2501)...................................  1226
        Authorization of appropriations, NATO (sec. 2502)........  1227
Title XXVI--Guard and Reserve Forces Facilities..................  1227
    Budget Items.................................................  1227
    Items of Special Interest....................................  1227
        Unspecified minor construction, Army National Guard......  1227
        Unspecified minor construction, Air National Guard.......  1227
    Legislative Provisions Adopted...............................  1228
        Authorized Army National Guard construction and land 
          acquisition projects (sec. 2601).......................  1228
        Authorized Army Reserve construction and land acquisition 
          projects (sec. 2602)...................................  1228
        Authorized Navy Reserve and Marine Corps Reserve 
          construction and land acquisition projects (sec. 2603).  1228
        Authorized Air National Guard construction and land 
          acquisition projects (sec. 2604).......................  1228
        Authorized Air Force Reserve construction and land 
          acquisition projects (sec. 2605).......................  1229
        Authorization of appropriations, National Guard and 
          Reserve (sec. 2606)....................................  1229
        Termination of authority to carry out fiscal year 2007 
          Guard and Reserve projects for which funds were not 
          appropriated (sec. 2607)...............................  1229
        Modification of authority to carry out fiscal year 2006 
          Air Force Reserve construction and acquisition projects 
          (sec. 2608)............................................  1232
        Extension of authorizations of certain fiscal year 2005 
          projects (sec. 2609)...................................  1232
        Extension of authorizations of certain fiscal year 2004 
          projects (sec. 2610)...................................  1232
Title XXVII--Base Closure and Realignment Activities.............  1232
    Budget Items.................................................  1232
        Summary and explanation of tables........................  1232
    Legislative Provisions Adopted...............................  1241
        Authorization of appropriations for base closure and 
          realignment activities funded through Department of 
          Defense Base Closure Account 1990 (sec. 2701)..........  1241
        Authorized base closure and realignment activities funded 
          through Department of Defense base closure account 2005 
          (sec. 2702)............................................  1241
        Authorization of appropriations for base closure and 
          realignment activities funded through Department of 
          Defense Base Closure Account 2005 (sec. 2703)..........  1241
        Authorized cost and scope of work variations (sec. 2704).  1241
        Transfer of funds from Department of Defense Base Closure 
          Account 2005 to Department of Defense Housing Funds 
          (sec. 2705)............................................  1242
        Comprehensive accounting of funding required to ensure 
          timely implementation of 2005 Defense Base Closure and 
          Realignment Commission recommendations (sec. 2706).....  1242
        Relocation of units from Roberts United States Army 
          Reserve Center and Navy-Marine Corps Reserve Center, 
          Baton Rouge, Louisiana (sec. 2707).....................  1242
        Acquisition of real property, Fort Belvoir, Virginia, as 
          part of the realignment of the installation (sec. 2708)  1243
        Report on availability of traffic infrastructure and 
          facilities to support base realignments (sec. 2709)....  1243
Title XXVIII--Military Construction General Provisions...........  1244
    Subtitle A--Military Construction Program and Military Family 
      Housing Changes............................................  1244
        Authority to use operation and maintenance funds for 
          construction projects outside the United States (sec. 
          2801)..................................................  1244
        Clarification of requirement for authorization of 
          military construction (sec. 2802)......................  1245
        Increase in thresholds for unspecified minor military 
          construction projects (sec. 2803)......................  1245
        Temporary authority to support revitalization of 
          Department of Defense laboratories through unspecified 
          minor military construction projects (sec. 2804).......  1245
        Extension of authority to accept equalization payments 
          for facility exchanges (sec. 2805).....................  1246
        Modifications of authority to lease military family 
          housing (sec. 2806)....................................  1246
        Expansion of authority to exchange reserve component 
          facilities (sec. 2807).................................  1246
        Limitation on use of alternative authority for 
          acquisition and improvement of military housing for 
          privatization of temporary lodging facilities (sec. 
          2808)..................................................  1247
        Two-year extension of temporary program to use minor 
          military construction authority for construction of 
          child development centers (sec. 2809)..................  1247
        Report on housing privatization initiatives (sec. 2810)..  1247
    Subtitle B--Real Property and Facilities Administration......  1248
        Requirement to report real property transactions 
          resulting in annual costs of more than $750,000 (sec. 
          2821)..................................................  1248
        Consolidation of real property provisions without 
          substantive change (sec. 2822).........................  1248
        Modification of authority to lease non-excess property of 
          the military departments (sec. 2823)...................  1248
        Cooperative agreement authority for management of 
          cultural resources on certain sites outside military 
          installations (sec. 2824)..............................  1248
        Agreements to limit encroachments and other constraints 
          on military training, testing, and operations (sec. 
          2825)..................................................  1249
        Expansion to all military departments of Army pilot 
          program for purchase of certain municipal services for 
          military installations (sec. 2826).....................  1249
        Prohibition on commercial flights into Selfridge Air 
          National Guard Base (sec. 2827)........................  1249
        Sense of Congress on Department of Defense actions to 
          protect installations, ranges, and military airspace 
          from encroachment (sec. 2828)..........................  1249
        Reports on Army and Marine Corps operational ranges (sec. 
          2829)..................................................  1250
        Niagara Air Reserve Base, New York, basing report (sec. 
          2830)..................................................  1250
        Report on the Pinon Canyon Maneuver Site, Colorado (sec. 
          2831)..................................................  1251
    Subtitle C--Land Conveyances.................................  1251
        Modification of conveyance authority, Marine Corps Base, 
          Camp Pendleton, California (sec. 2841).................  1251
        Grant of easement, Eglin Air Force Base, Florida (sec. 
          2842)..................................................  1251
        Land conveyance, Lynn Haven Fuel Depot, Lynn Haven, 
          Florida (sec. 2843)....................................  1251
        Modification of lease of property, National Flight 
          Academy at the National Museum of Naval Aviation, Naval 
          Air Station, Pensacola, Florida (sec. 2844)............  1252
        Land exchange, Detroit, Michigan (sec. 2845).............  1252
        Transfer of jurisdiction, former Nike missile site, 
          Grosse Ile, Michigan (sec. 2846).......................  1252
        Modification to land conveyance authority, Fort Bragg, 
          North Carolina (sec. 2847).............................  1252
        Land conveyance, Lewis and Clark United States Army 
          Reserve Center, Bismarck, North Dakota (sec. 2848).....  1253
        Land exchange, Fort Hood, Texas (sec. 2849)..............  1253
    Subtitle D--Energy Security..................................  1253
    Items of Special Interest....................................  1253
        Energy Conversation Forum................................  1253
        Report on water conservation projects....................  1254
    Legislative Provisions Adopted...............................  1254
        Repeal of congressional notification requirement 
          regarding cancellation ceiling for Department of 
          Defense energy savings performance contracts (sec. 
          2861)..................................................  1254
        Definition of alternative fueled vehicle (sec. 2862).....  1254
        Use of energy efficient lighting fixtures and bulbs in 
          Department of Defense facilities (sec. 2863)...........  1254
        Reporting requirements relating to renewable energy use 
          by Department of Defense to meet Department electricity 
          needs (sec. 2864)......................................  1255
    Subtitle E--Other Matters....................................  1255
        Revised deadline for transfer of Arlington Naval Annex to 
          Arlington National Cemetery (sec. 2871)................  1255
        Transfer of jurisdiction over Air Force Memorial to 
          Department of the Air Force (sec. 2872)................  1255
        Report on plans to replace the monument at the Tomb of 
          the Unknowns at Arlington National Cemetery, Virginia 
          (sec. 2873)............................................  1256
        Increased authority for repair, restoration, and 
          preservation of Lafayette Escadrille Memorial, Marnes-
          la-Coquette, France (sec. 2874)........................  1256
        Addition of Woonsocket local protection project (sec. 
          2875)..................................................  1256
        Repeal of moratorium on improvements at Fort Buchanan, 
          Puerto Rico (sec. 2876)................................  1256
        Establishment of national military working dog teams 
          monument on suitable military installation (sec. 2877).  1257
        Report regarding removal of missiles from 564th Missile 
          Squadron (sec. 2878)...................................  1257
        Report on condition of schools under jurisdiction of 
          Department of Defense education activity (sec. 2879)...  1257
        Report on facilities and operations of Darnall Army 
          Medical Center, Fort Hood Military Reservation, Texas 
          (sec. 2880)............................................  1257
        Report on feasibility of establishing a regional disaster 
          response center at Kelly Air Field, San Antonio, Texas 
          (sec. 2881)............................................  1258
        Naming housing facility at Fort Carson, Colorado, in 
          honor of the Honorable Joel Hefley, a former member of 
          the United States House of Representatives (sec. 2882).  1258
        Naming Navy and Marine Corps Reserve Center at Rock 
          Island, Illinois, in honor of the Honorable Lane Evans, 
          a former member of the United States House of 
          Representatives (sec. 2883)............................  1258
        Naming a research laboratory at Air Force Rome Research 
          Site, Rome, New York, in honor of the Honorable 
          Sherwood L. Boehlert, a former member of the United 
          States House of Representatives (sec. 2884)............  1258
        Naming an administrative building at Joint Systems 
          Manufacturing Center, Lima, Ohio, in honor of the 
          Honorable Michael G. Oxley, a former member of the 
          United States House of Representatives (sec. 2885).....  1259
        Naming of Logistics Automation Training Facility, Army 
          Quartermaster Center and School, Fort Lee, Virginia, in 
          honor of General Richard H. Thompson (sec. 2886).......  1259
        Authority to relocate Joint Spectrum Center to Fort 
          Meade, Maryland (sec. 2887)............................  1259
    Legislative Provisions Not Adopted...........................  1260
        General military construction transfer authority.........  1260
        Modification of land management restrictions applicable 
          to Utah national defense lands.........................  1260
        Report on opportunities for leveraging funds of the 
          Department of Defense and States to prevent disruption 
          in event of electric grid or pipeline failures.........  1260
        Report on water conservation projects....................  1260
        Retention of proceeds from enhanced use leases at 
          Selfridge Air National Guard Base......................  1261
Title XXIX--War Related and Emergency Military Construction 
  Authorizations.................................................  1261
    Legislative Provisions Adopted...............................  1266
        Authorized Army construction and land acquisition 
          projects (sec. 2901)...................................  1266
        Authorized Navy construction and land acquisition 
          projects (sec. 2902)...................................  1266
        Authorized Air Force construction and land acquisition 
          projects (sec. 2903)...................................  1267
        Authorized defense agencies construction and land 
          acquisition projects (sec. 2904).......................  1267
        Authorized base closure and realignment activities funded 
          through Department of Defense Base Closure Account 2005 
          and related authorization of appropriations (sec. 2905)  1268
DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS 
  AND OTHER AUTHORIZATIONS.......................................  1268
Title XXXI--Department of Energy National Security Programs......  1268
    Subtitle A--National Security Programs Authorizations........  1268
        Overview.................................................  1268
    Item of Special Interest.....................................  1287
        International Atomic Energy Agency nuclear fuel bank.....  1287
    Legislative Provisions Adopted...............................  1287
        National Nuclear Security Administration (sec. 3101).....  1287
        Defense environmental cleanup (sec. 3102)................  1289
        Other defense activities (sec. 3103).....................  1289
        Defense nuclear waste disposal (sec. 3104)...............  1289
        Energy security and assurance (sec. 3105)................  1290
    Subtitle B--Program Authorizations, Restrictions, and 
      Limitations................................................  1290
        Reliable Replacement Warhead program (sec. 3111).........  1294
        Nuclear test readiness (sec. 3112).......................  1291
        Modification of reporting requirement (sec. 3113)........  1291
        Limitation on availability of funds for fissile materials 
          disposition program (sec. 3114)........................  1292
        Modification of limitations on availability of funds for 
          waste treatment and immobilization plant (sec. 3115)...  1293
        Modification of sunset date of the Office of the 
          Ombudsman of the Energy Employees Occupational Illness 
          Compensation program (sec. 3116).......................  1293
        Technical amendments (sec. 3117).........................  1293
    Subtitle C--Other Matters....................................  1293
        Study on using existing pits for the Reliable Replacement 
          Warhead program (sec. 3121)............................  1293
        Report on retirement and dismantlement of nuclear 
          warheads (sec. 3122)...................................  1294
        Plan for addressing security risks posed to nuclear 
          weapons complex (sec. 3123)............................  1294
        Department of Energy protective forces (sec. 3124).......  1294
        Evaluation of National Nuclear Security Administration 
          strategic plan for advanced computing (sec. 3125)......  1295
        Sense of Congress on the nuclear nonproliferation policy 
          of the United States and the Reliable Replacement 
          Warhead program (sec. 3126)............................  1296
        Department of Energy report on plan to strengthen and 
          expand International Radiological Threat Reduction 
          program (sec. 3127)....................................  1296
        Department of Energy report on plan to strengthen and 
          expand Materials Protection, Control, and Accounting 
          program (sec. 3128)....................................  1297
        Agreements and reports on nuclear forensics capabilities 
          (sec. 3129)............................................  1297
        Report on status of environmental management initiatives 
          to accelerate the reduction of environmental risks and 
          challenges posed by the legacy of the Cold War (sec. 
          3130)..................................................  1298
    Subtitle D--Nuclear Terrorism Prevention.....................  1298
        Definitions (sec. 3131)..................................  1298
        Sense of Congress on the prevention of nuclear terrorism 
          (sec. 3132)............................................  1298
        Minimum security standard for nuclear weapons and formula 
          quantities of strategic special nuclear material (sec. 
          3133)..................................................  1299
        Annual report (sec. 3134)................................  1299
    Legislative Provisions Not Adopted...........................  1300
        Authority to use International Nuclear Materials 
          Protection and Cooperation program funds outside the 
          former Soviet Union....................................  1300
        Findings.................................................  1300
Title XXXII--War Related National Nuclear Security Administration 
  Authorizations.................................................  1301
    Legislative Provision Adopted................................  1301
        Additional war-related authorization of appropriations 
          for National Nuclear Security Administration (sec. 
          3201)..................................................  1301
Title XXXIII--Defense Nuclear Facilities Safety Board............  1301
    Legislative Provision Adopted................................  1301
        Authorization (sec. 3301)................................  1301
Title XXXIV--Naval Petroleum Reserves............................  1301
    Legislative Provisions Adopted...............................  1301
        Authorization of appropriations (sec. 3401)..............  1301
        Remedial action at Moab Uranium milling site (sec. 3402).  1302
Title XXXV--Maritime Administration..............................  1302
    Legislative Provisions Adopted...............................  1302
        Authorization of appropriations for fiscal year 2008 
          (sec. 3501)............................................  1302
        Temporary authority to transfer obsolete combatant 
          vessels to the Navy for disposal (sec. 3502)...........  1303
        Vessel disposal program (sec. 3503)......................  1303
    Subtitle B--Programs.........................................  1303
        Commercial vessel chartering authority (sec. 3511).......  1303
        Maritime Administration vessel chartering authority (sec. 
          3512)..................................................  1303
        Chartering to State and local governmental 
          instrumentalities (sec. 3513)..........................  1304
        Disposal of obsolete Government vessels (sec. 3514)......  1304
        Vessel transfer authority (sec. 3515)....................  1304
        Sea trials for the Ready Reserve force (sec. 3516).......  1304
        Review of applications for loans and guarantees (sec. 
          3517)..................................................  1304
    Subtitle C--Technical Corrections............................  1305
        Technical corrections (secs. 3521-3529)..................  1305
        Legislative Provisions Not Adopted.......................  1305
        Short title..............................................  1305
        Technical corrections....................................  1305
Compliance with rule XLIV of the Standing Rules of the Senate and 
  House Rule XXI.................................................  1306


110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-477

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




        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2008

                                _______
                                

                December 6, 2007.--Ordered to be printed

                                _______
                                

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

                           CONFERENCE REPORT

                        [To accompany H.R. 1585]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
1585), to authorize appropriations for fiscal year 2008 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.

    This Act may be cited as the ``National Defense 
Authorization Act for Fiscal Year 2008''.

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.
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.
Sec. 105. National Guard and Reserve equipment.

                        Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for M1A2 Abrams System 
          Enhancement Package upgrades.
Sec. 112. Multiyear procurement authority for M2A3/M3A3 Bradley fighting 
          vehicle upgrades.
Sec. 113. Multiyear procurement authority for conversion of CH-47D 
          helicopters to CH-47F configuration.
Sec. 114. Multiyear procurement authority for CH-47F helicopters.
Sec. 115. Limitation on use of funds for Increment 1 of the Warfighter 
          Information Network-Tactical program pending certification to 
          Congress.
Sec. 116. Prohibition on closure of Army Tactical Missile System 
          production line pending report.
Sec. 117. Stryker Mobile Gun System.

                        Subtitle C--Navy Programs

Sec. 121. Multiyear procurement authority for Virginia-class submarine 
          program.
Sec. 122. Report on shipbuilding investment strategy.
Sec. 123. Sense of Congress on the preservation of a skilled United 
          States shipyard workforce.
Sec. 124. Assessments required prior to start of construction on first 
          ship of a shipbuilding program.
Sec. 125. Littoral Combat Ship (LCS) program.

                     Subtitle D--Air Force Programs

Sec. 131. Limitation on Joint Cargo Aircraft.
Sec. 132. Clarification of limitation on retirement of U-2 aircraft.
Sec. 133. Repeal of requirement to maintain retired C-130E tactical 
          aircraft.
Sec. 134. Limitation on retirement of C-130E/H tactical airlift 
          aircraft.
Sec. 135. Limitation on retirement of KC-135E aerial refueling aircraft.
Sec. 136. Transfer to Government of Iraq of three C-130E tactical 
          airlift aircraft.
Sec. 137. Modification of limitations on retirement of B-52 bomber 
          aircraft.

          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. Operational test and evaluation of Future Combat Systems 
          network.
Sec. 212. Limitation on use of funds for systems development and 
          demonstration of Joint Light Tactical Vehicle program.
Sec. 213. Requirement to obligate and expend funds for development and 
          procurement of a competitive propulsion system for the Joint 
          Strike Fighter.
Sec. 214. Limitation on use of funds for defense-wide manufacturing 
          science and technology program.
Sec. 215. Advanced Sensor Applications Program.
Sec. 216. Active protection systems.

                  Subtitle C--Ballistic Missile Defense

Sec. 221. Participation of Director, Operational Test and Evaluation, in 
          missile defense test and evaluation activities.
Sec. 222. Study on future roles and missions of the Missile Defense 
          Agency.
Sec. 223. Budget and acquisition requirements for Missile Defense Agency 
          activities.
Sec. 224. Limitation on use of funds for replacing warhead on SM-3 Block 
          IIA missile.
Sec. 225. Extension of Comptroller General assessments of ballistic 
          missile defense programs.
Sec. 226. Limitation on availability of funds for procurement, 
          construction, and deployment of missile defenses in Europe.
Sec. 227. Sense of Congress on missile defense cooperation with Israel.
Sec. 228. Limitation on availability of funds for deployment of missile 
          defense interceptors in Alaska.
Sec. 229. Policy of the United States on protection of the United States 
          and its allies against Iranian ballistic missiles.

                        Subtitle D--Other Matters

Sec. 231. Coordination of human systems integration activities related 
          to acquisition programs.
Sec. 232. Expansion of authority for provision of laboratory facilities, 
          services, and equipment.
Sec. 233. Modification of cost sharing requirement for Technology 
          Transition Initiative.
Sec. 234. Report on implementation of Manufacturing Technology Program.
Sec. 235. Assessment of sufficiency of test and evaluation personnel.
Sec. 236. Repeal of requirement for separate reports on technology area 
          review and assessment summaries.
Sec. 237. Modification of notice and wait requirement for obligation of 
          funds for foreign comparative test program.
Sec. 238. Strategic Plan for the Manufacturing Technology Program.
Sec. 239. Modification of authorities on coordination of Defense 
          Experimental Program to Stimulate Competitive Research with 
          similar Federal programs.
Sec. 240. Enhancement of defense nanotechnology research and development 
          program.
Sec. 241. Federally funded research and development center assessment of 
          the Defense Experimental Program to Stimulate Competitive 
          Research.
Sec. 242. Cost-benefit analysis of proposed funding reduction for High 
          Energy Laser Systems Test Facility.
Sec. 243. Prompt global strike.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.

                  Subtitle B--Environmental Provisions

Sec. 311. Reimbursement of Environmental Protection Agency for certain 
          costs in connection with Moses Lake Wellfield Superfund Site, 
          Moses Lake, Washington.
Sec. 312. Reimbursement of Environmental Protection Agency for certain 
          costs in connection with the Arctic Surplus Superfund Site, 
          Fairbanks, Alaska.
Sec. 313. Payment to Environmental Protection Agency of stipulated 
          penalties in connection with Jackson Park Housing Complex, 
          Washington.
Sec. 314. Report on control of the brown tree snake.
Sec. 315. Notification of certain residents and civilian employees at 
          Camp Lejeune, North Carolina, of exposure to drinking water 
          contamination.

                 Subtitle C--Workplace and Depot Issues

Sec. 321. Availability of funds in Defense Information Systems Agency 
          Working Capital Fund for technology upgrades to Defense 
          Information Systems Network.
Sec. 322. Modification to public-private competition requirements before 
          conversion to contractor performance.
Sec. 323. Public-private competition at end of period specified in 
          performance agreement not required.
Sec. 324. Guidelines on insourcing new and contracted out functions.
Sec. 325. Restriction on Office of Management and Budget influence over 
          Department of Defense public-private competitions.
Sec. 326. Bid protests by Federal employees in actions under Office of 
          Management and Budget Circular A-76.
Sec. 327. Public-private competition required before conversion to 
          contractor performance.
Sec. 328. Extension of authority for Army industrial facilities to 
          engage in cooperative activities with non-Army entities.
Sec. 329. Reauthorization and modification of multi-trades demonstration 
          project.
Sec. 330. Pilot program for availability of working-capital funds to 
          Army for certain product improvements.

              Subtitle D--Extension of Program Authorities

Sec. 341. Extension of Arsenal Support Program Initiative.
Sec. 342. Extension of period for reimbursement for helmet pads 
          purchased by members of the Armed Forces deployed in 
          contingency operations.
Sec. 343. Extension of temporary authority for contract performance of 
          security guard functions.

                           Subtitle E--Reports

Sec. 351. Reports on National Guard readiness for emergencies and major 
          disasters.
Sec. 352. Annual report on prepositioned materiel and equipment.
Sec. 353. Report on incremental cost of early 2007 enhanced deployment.
Sec. 354. Modification of requirements of Comptroller General report on 
          the readiness of Army and Marine Corps ground forces.
Sec. 355. Plan to improve readiness of ground forces of active and 
          reserve components.
Sec. 356. Independent assessment of Civil Reserve Air Fleet viability.
Sec. 357. Department of Defense Inspector General report on physical 
          security of Department of Defense installations.
Sec. 358. Review of high-altitude aviation training.
Sec. 359. Reports on safety measures and encroachment issues and master 
          plan for Warren Grove Gunnery Range, New Jersey.
Sec. 360. Report on search and rescue capabilities of the Air Force in 
          the northwestern United States.
Sec. 361. Report and master infrastructure recapitalization plan for 
          Cheyenne Mountain Air Station, Colorado.

                        Subtitle F--Other Matters

Sec. 371. Enhancement of corrosion control and prevention functions 
          within Department of Defense.
Sec. 372. Authority for Department of Defense to provide support for 
          certain sporting events.
Sec. 373. Authority to impose reasonable restrictions on payment of full 
          replacement value for lost or damaged personal property 
          transported at Government expense.
Sec. 374. Priority transportation on Department of Defense aircraft of 
          retired members residing in Commonwealths and possessions of 
          the United States for certain health care services.
Sec. 375. Recovery of missing military property.
Sec. 376. Retention of combat uniforms by members of the Armed Forces 
          deployed in support of contingency operations.
Sec. 377. Issue of serviceable material of the Navy other than to Armed 
          Forces.
Sec. 378. Reauthorization of Aviation Insurance Program.

               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 2009 and 2010.
Sec. 404. Increase in authorized strengths for Army officers on active 
          duty in the grade of major.
Sec. 405. Increase in authorized strengths for Navy officers on active 
          duty in the grades of lieutenant commander, commander, and 
          captain.
Sec. 406. Increase in authorized daily average of number of members in 
          pay grade E-9.

                       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 2008 limitation on number of non-dual status 
          technicians.
Sec. 415. Maximum number of reserve personnel authorized to be on active 
          duty for operational support.
Sec. 416. Future authorizations and accounting for certain reserve 
          component personnel authorized to be on active duty or full-
          time National Guard duty to provide operational support.
Sec. 417. Revision of variances authorized for Selected Reserve end 
          strengths.

               Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Assignment of officers to designated positions of importance 
          and responsibility.
Sec. 502. Enhanced authority for Reserve general and flag officers to 
          serve on active duty.
Sec. 503. Increase in years of commissioned service threshold for 
          discharge of probationary officers and for use of force 
          shaping authority.
Sec. 504. Mandatory retirement age for active-duty general and flag 
          officers continued on active duty.
Sec. 505. Authority for reduced mandatory service obligation for initial 
          appointments of officers in critically short health 
          professional specialties.
Sec. 506. Expansion of authority for reenlistment of officers in their 
          former enlisted grade.
Sec. 507. Increase in authorized number of permanent professors at the 
          United States Military Academy.
Sec. 508. Promotion of career military professors of the Navy.

                Subtitle B--Reserve Component Management

Sec. 511. Retention of military technicians who lose dual status in the 
          Selected Reserve due to combat-related disability.
Sec. 512. Constructive service credit upon original appointment of 
          Reserve officers in certain health care professions.
Sec. 513. Mandatory separation of Reserve officers in the grade of 
          lieutenant general or vice admiral after completion of 38 
          years of commissioned service.
Sec. 514. Maximum period of temporary Federal recognition of person as 
          Army National Guard officer or Air National Guard officer.
Sec. 515. Advance notice to members of reserve components of deployment 
          in support of contingency operations.
Sec. 516. Report on relief from professional licensure and certification 
          requirements for reserve component members on long-term active 
          duty.

                   Subtitle C--Education and Training

Sec. 521. Revisions to authority to pay tuition for off-duty training or 
          education.
Sec. 522. Reduction or elimination of service obligation in an Army 
          Reserve or Army National Guard troop program unit for certain 
          persons selected as medical students at Uniformed Services 
          University of the Health Sciences.
Sec. 523. Repeal of annual limit on number of ROTC scholarships under 
          Army Reserve and Army National Guard financial assistance 
          program.
Sec. 524. Treatment of prior active service of members in uniformed 
          medical accession programs.
Sec. 525. Repeal of post-2007-2008 academic year prohibition on phased 
          increase in cadet strength limit at the United States Military 
          Academy.
Sec. 526. National Defense University master's degree programs.
Sec. 527. Authority of the Air University to confer degree of master of 
          science in flight test engineering.
Sec. 528. Enhancement of education benefits for certain members of 
          reserve components.
Sec. 529. Extension of period of entitlement to educational assistance 
          for certain members of the Selected Reserve affected by force 
          shaping initiatives.
Sec. 530. Time limit for use of educational assistance benefit for 
          certain members of reserve components and resumption of 
          benefit.
Sec. 531. Secretary of Defense evaluation of the adequacy of the degree-
          granting authorities of certain military universities and 
          educational institutions.
Sec. 532. Report on success of Army National Guard and Reserve Senior 
          Reserve Officers' Training Corps financial assistance program.
Sec. 533. Report on utilization of tuition assistance by members of the 
          Armed Forces.
Sec. 534. Navy Junior Reserve Officers' Training Corps unit for 
          Southold, Mattituck, and Greenport High Schools.
Sec. 535. Report on transfer of administration of certain educational 
          assistance programs for members of the reserve components.

        Subtitle D--Military Justice and Legal Assistance Matters

Sec. 541. Authority to designate civilian employees of the Federal 
          Government and dependents of deceased members as eligible for 
          legal assistance from Department of Defense legal staff 
          resources.
Sec. 542. Authority of judges of the United States Court of Appeals for 
          the Armed Forces to administer oaths.
Sec. 543. Modification of authorities on senior members of the Judge 
          Advocate Generals' Corps.
Sec. 544. Prohibition against members of the Armed Forces participating 
          in criminal street gangs.

                       Subtitle E--Military Leave

Sec. 551. Temporary enhancement of carryover of accumulated leave for 
          members of the Armed Forces.
Sec. 552. Enhancement of rest and recuperation leave.

                   Subtitle F--Decorations and Awards

Sec. 561. Authorization and request for award of Medal of Honor to 
          Leslie H. Sabo, Jr., for acts of valor during the Vietnam War.
Sec. 562. Authorization and request for award of Medal of Honor to Henry 
          Svehla for acts of valor during the Korean War.
Sec. 563. Authorization and request for award of Medal of Honor to 
          Woodrow W. Keeble for acts of valor during the Korean War.
Sec. 564. Authorization and request for award of Medal of Honor to 
          Private Philip G. Shadrach for acts of valor as one of 
          Andrews' Raiders during the Civil War.
Sec. 565. Authorization and request for award of Medal of Honor to 
          Private George D. Wilson for acts of valor as one of Andrews' 
          Raiders during the Civil War.

     Subtitle G--Impact Aid and Defense Dependents Education System

Sec. 571. 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. Impact aid for children with severe disabilities.
Sec. 573. Inclusion of dependents of non-department of Defense employees 
          employed on Federal property in plan relating to force 
          structure changes, relocation of military units, or base 
          closures and realignments.
Sec. 574. Payment of private boarding school tuition for military 
          dependents in overseas areas not served by defense dependents' 
          education system schools.

                      Subtitle H--Military Families

Sec. 581. Department of Defense Military Family Readiness Council and 
          policy and plans for military family readiness.
Sec. 582. Yellow Ribbon Reintegration Program.
Sec. 583. Study to enhance and improve support services and programs for 
          families of members of regular and reserve components 
          undergoing deployment.
Sec. 584. Protection of child custody arrangements for parents who are 
          members of the Armed Forces deployed in support of a 
          contingency operation.
Sec. 585. Family leave in connection with injured members of the Armed 
          Forces.
Sec. 586. Family care plans and deferment of deployment of single parent 
          or dual military couples with minor dependents.
Sec. 587. Education and treatment services for military dependent 
          children with autism.
Sec. 588. Commendation of efforts of Project Compassion in paying 
          tribute to members of the Armed Forces who have fallen in the 
          service of the United States.

                        Subtitle I--Other Matters

Sec. 590. Uniform performance policies for military bands and other 
          musical units.
Sec. 591. Transportation of remains of deceased members of the Armed 
          Forces and certain other persons.
Sec. 592. Expansion of number of academies supportable in any State 
          under STARBASE program.
Sec. 593. Gift acceptance authority.
Sec. 594. Conduct by members of the Armed Forces and veterans out of 
          uniform during hoisting, lowering, or passing of United States 
          flag.
Sec. 595. Annual report on cases reviewed by National Committee for 
          Employer Support of the Guard and Reserve.
Sec. 596. Modification of Certificate of Release or Discharge from 
          Active Duty (DD Form 214).
Sec. 597. Reports on administrative separations of members of the Armed 
          Forces for personality disorder.
Sec. 598. Program to commemorate 50th anniversary of the Vietnam War.
Sec. 599. Recognition of members of the Monuments, Fine Arts, and 
          Archives program of the Civil Affairs and Military Government 
          Sections of the Armed Forces during and following World War 
          II.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Fiscal year 2008 increase in military basic pay.
Sec. 602. Basic allowance for housing for reserve component members 
          without dependents who attend accession training while 
          maintaining a primary residence.
Sec. 603. Extension and enhancement of authority for temporary lodging 
          expenses for members of the Armed Forces in areas subject to 
          major disaster declaration or for installations experiencing 
          sudden increase in personnel levels.
Sec. 604. Income replacement payments for reserve component members 
          experiencing extended and frequent mobilization for active 
          duty service.
Sec. 605. Midmonth payment of basic pay for contributions of members of 
          the uniformed services participating in Thrift Savings Plan.

           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. Increase in incentive special pay and multiyear retention 
          bonus for medical officers.
Sec. 616. Increase in dental officer additional special pay.
Sec. 617. Increase in maximum monthly rate of hardship duty pay and 
          authority to provide hardship duty pay in a lump sum.
Sec. 618. Definition of sea duty for career sea pay to include service 
          as off-cycle crewmembers of multi-crew ships.
Sec. 619. Reenlistment bonus for members of the Selected Reserve.
Sec. 620. Availability of Selected Reserve accession bonus for persons 
          who previously served in the Armed Forces for a short period.
Sec. 621. Availability of nuclear officer continuation pay for officers 
          with more than 26 years of commissioned service.
Sec. 622. Waiver of years-of-service limitation on receipt of critical 
          skills retention bonus.
Sec. 623. Accession bonus for participants in the Armed Forces Health 
          Professions Scholarship and Financial Assistance Program.
Sec. 624. Payment of assignment incentive pay for Reserve members 
          serving in combat zone for more than 22 months.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Payment of inactive duty training travel costs for certain 
          Selected Reserve members.
Sec. 632. Survivors of deceased members eligible for transportation to 
          attend burial ceremonies.
Sec. 633. Allowance for participation of Reserves in electronic 
          screening.
Sec. 634. Allowance for civilian clothing for members of the Armed 
          Forces traveling in connection with medical evacuation.
Sec. 635. Payment of moving expenses for Junior Reserve Officers' 
          Training Corps instructors in hard-to-fill positions.

              Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Expansion of combat-related special compensation eligibility.
Sec. 642. Inclusion of veterans with service-connected disabilities 
          rated as total by reason of unemployability under termination 
          of phase-in of concurrent receipt of retired pay and veterans' 
          disability compensation.
Sec. 643. Recoupment of annuity amounts previously paid, but subject to 
          offset for dependency and indemnity compensation.
Sec. 644. Special survivor indemnity allowance for persons affected by 
          required Survivor Benefit Plan annuity offset for dependency 
          and indemnity compensation.
Sec. 645. Modification of authority of members of the Armed Forces to 
          designate recipients for payment of death gratuity.
Sec. 646. Clarification of application of retired pay multiplier 
          percentage to members of the uniformed services with over 30 
          years of service.
Sec. 647. 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.
Sec. 648. Computation of years of service for purposes of retired pay 
          for non-regular service.

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

Sec. 651. Authority to continue commissary and exchange benefits for 
          certain involuntarily separated members of the Armed Forces.
Sec. 652. Authorization of installment deductions from pay of employees 
          of nonappropriated fund instrumentalities to collect 
          indebtedness to the United States.

   Subtitle F--Consolidation of Special Pay, Incentive Pay, and Bonus 
                               Authorities

Sec. 661. Consolidation of special pay, incentive pay, and bonus 
          authorities of the uniformed services.
Sec. 662. Transitional provisions.

                        Subtitle G--Other Matters

Sec. 671. Referral bonus authorities.
Sec. 672. Expansion of education loan repayment program for members of 
          the Selected Reserve.
Sec. 673. Ensuring entry into United States after time abroad for 
          permanent resident alien military spouses and children.
Sec. 674. Overseas naturalization for military spouses and children.
Sec. 675. Modification of amount of back pay for members of Navy and 
          Marine Corps selected for promotion while interned as 
          prisoners of war during World War II to take into account 
          changes in Consumer Price Index.

                    TITLE VII--HEALTH CARE PROVISIONS

          Subtitle A--Improvements to Military Health Benefits

Sec. 701. One-year extension of prohibition on increases in certain 
          health care costs for members of the uniformed services.
Sec. 702. Temporary prohibition on increase in copayments under retail 
          pharmacy system of pharmacy benefits program.
Sec. 703. Inclusion of TRICARE retail pharmacy program in Federal 
          procurement of pharmaceuticals.
Sec. 704. Stipend for members of reserve components for health care for 
          certain dependents.
Sec. 705. Authority for expansion of persons eligible for continued 
          health benefits coverage.
Sec. 706. Continuation of eligibility for TRICARE Standard coverage for 
          certain members of the Selected Reserve.
Sec. 707. Extension of pilot program for health care delivery.
Sec. 708. Inclusion of mental health care in definition of health care 
          and report on mental health care services.

                     Subtitle B--Studies and Reports

Sec. 711. Surveys on continued viability of TRICARE Standard and TRICARE 
          Extra.
Sec. 712. Report on training in preservation of remains under combat or 
          combat-related conditions.
Sec. 713. Report on patient satisfaction surveys.
Sec. 714. Report on medical physical examinations of members of the 
          Armed Forces before their deployment.
Sec. 715. Report and study on multiple vaccinations of members of the 
          Armed Forces.
Sec. 716. Review of gender- and ethnic group-specific mental health 
          services and treatment for members of the Armed Forces.
Sec. 717. Licensed mental health counselors and the TRICARE program.
Sec. 718. Report on funding of the Department of Defense for health 
          care.

                        Subtitle C--Other Matters

Sec. 721. Prohibition on conversion of military medical and dental 
          positions to civilian medical and dental positions.
Sec. 722. Establishment of Joint Pathology Center.

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

Sec. 800. Short title.

              Subtitle A--Acquisition Policy and Management

Sec. 801. Internal controls for procurements on behalf of the Department 
          of Defense by certain non-Defense agencies.
Sec. 802. Lead systems integrators.
Sec. 803.  Reinvestment in domestic sources of strategic materials.
Sec. 804. Clarification of the protection of strategic materials 
          critical to national security.
Sec. 805. Procurement of commercial services.
Sec. 806. Specification of amounts requested for procurement of contract 
          services.
Sec. 807. Inventories and reviews of contracts for services.
Sec. 808. Independent management reviews of contracts for services.
Sec. 809.  Implementation and enforcement of requirements applicable to 
          undefinitized contractual actions.
Sec. 810. Clarification of limited acquisition authority for Special 
          Operations Command.

  Subtitle B--Provisions Relating to Major Defense Acquisition Programs

Sec. 811. Requirements applicable to multiyear contracts for the 
          procurement of major systems of the Department of Defense.
Sec. 812. Changes to Milestone B certifications.
Sec. 813. Comptroller General report on Department of Defense 
          organization and structure for major defense acquisition 
          programs.
Sec. 814.  Clarification of submission of cost or pricing data on 
          noncommercial modifications of commercial items.
Sec. 815. Clarification of rules regarding the procurement of commercial 
          items.
Sec. 816.  Review of systemic deficiencies on major defense acquisition 
          programs.
Sec. 817.  Investment strategy for major defense acquisition programs.
Sec. 818. Report on implementation of recommendations on total ownership 
          cost for major weapon systems.

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

Sec. 821. Plan for restricting Government-unique contract clauses on 
          commercial contracts.
Sec. 822. Extension of authority for use of simplified acquisition 
          procedures for certain commercial items.
Sec. 823. Five-year extension of authority to carry out certain 
          prototype projects.
Sec. 824. Exemption of Special Operations Command from certain 
          requirements for certain contracts relating to vessels, 
          aircraft, and combat vehicles.
Sec. 825. Provision of authority to maintain equipment to unified 
          combatant command for joint warfighting.
Sec. 826. Market research.
Sec. 827. Modification of competition requirements for purchases from 
          Federal Prison Industries.
Sec. 828. Multiyear contract authority for electricity from renewable 
          energy sources.
Sec. 829. Procurement of fire resistant rayon fiber for the production 
          of uniforms from foreign sources.
Sec. 830. Comptroller General review of noncompetitive awards of 
          congressional and executive branch interest items.

                Subtitle D--Accountability in Contracting

Sec. 841. Commission on Wartime Contracting in Iraq and Afghanistan.
Sec. 842. Investigation of waste, fraud, and abuse in wartime contracts 
          and contracting processes in Iraq and Afghanistan.
Sec. 843. Enhanced competition requirements for task and delivery order 
          contracts.
Sec. 844. Public disclosure of justification and approval documents for 
          noncompetitive contracts.
Sec. 845. Disclosure of government contractor audit findings.
Sec. 846. Protection for contractor employees from reprisal for 
          disclosure of certain information.
Sec. 847.  Requirements for senior Department of Defense officials 
          seeking employment with defense contractors.
Sec. 848. Report on contractor ethics programs of Major Defense 
          contractors.
Sec. 849. Contingency contracting training for personnel outside the 
          acquisition workforce and evaluations of Army Commission 
          recommendations.

              Subtitle E--Acquisition Workforce Provisions

Sec. 851. Requirement for section on defense acquisition workforce in 
          strategic human capital plan.
Sec. 852. Department of Defense Acquisition Workforce Development Fund.
Sec. 853. Extension of authority to fill shortage category positions for 
          certain Federal acquisition positions.
Sec. 854. Repeal of sunset of acquisition workforce training fund.
Sec. 855. Federal acquisition workforce improvements.

              Subtitle F--Contracts in Iraq and Afghanistan

Sec. 861. Memorandum of understanding on matters relating to 
          contracting.
Sec. 862. Contractors performing private security functions in areas of 
          combat operations.
Sec. 863. Comptroller General reviews and reports on contracting in Iraq 
          and Afghanistan.
Sec. 864. Definitions and other general provisions.

              Subtitle G--Defense Materiel Readiness Board

Sec. 871. Establishment of Defense Materiel Readiness Board.
Sec. 872. Critical materiel readiness shortfalls.

                        Subtitle H--Other Matters

Sec. 881. Clearinghouse for rapid identification and dissemination of 
          commercial information technologies.
Sec. 882. Authority to license certain military designations and 
          likenesses of weapons systems to toy and hobby manufacturers.
Sec. 883. Modifications to limitation on contracts to acquire military 
          flight simulator.
Sec. 884. Requirements relating to waivers of certain domestic source 
          limitations relating to specialty metals.
Sec. 885. Telephone services for military personnel serving in combat 
          zones.
Sec. 886. Enhanced authority to acquire products and services produced 
          in Iraq and Afghanistan.
Sec. 887. Defense Science Board review of Department of Defense policies 
          and procedures for the acquisition of information technology.
Sec. 888. Green procurement policy.
Sec. 889. Comptroller General review of use of authority under the 
          Defense Production Act of 1950.
Sec. 890. Prevention of export control violations.
Sec. 891. Procurement goal for Native Hawaiian-serving institutions and 
          Alaska Native-serving institutions.
Sec. 892. Competition for procurement of small arms supplied to Iraq and 
          Afghanistan.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department of Defense Management

Sec. 901. Repeal of limitation on major Department of Defense 
          headquarters activities personnel and related report.
Sec. 902. Flexibility to adjust the number of deputy chiefs and 
          assistant chiefs.
Sec. 903. Change in eligibility requirements for appointment to 
          Department of Defense leadership positions.
Sec. 904. Management of the Department of Defense.
Sec. 905. Revision in guidance relating to combatant command acquisition 
          authority.
Sec. 906. Department of Defense Board of Actuaries.
Sec. 907. Modification of background requirement of individuals 
          appointed as Under Secretary of Defense for Acquisition, 
          Technology, and Logistics.
Sec. 908. Assistant Secretaries of the military departments for 
          acquisition matters; principal military deputies.
Sec. 909. Sense of Congress on term of Office of the Director of 
          Operational Test and Evaluation.

                      Subtitle B--Space Activities

Sec. 911. Space protection strategy.
Sec. 912. Biennial report on management of space cadre within the 
          Department of Defense.
Sec. 913. Additional report on oversight of acquisition for defense 
          space programs.

              Subtitle C--Chemical Demilitarization Program

Sec. 921. Chemical demilitarization citizens advisory commissions.
Sec. 922. Sense of Congress on completion of destruction of United 
          States chemical weapons stockpile.
Sec. 923. Repeal of certain qualifications requirement for director of 
          chemical demilitarization management organization.
Sec. 924. Modification of termination of assistance to State and local 
          governments after completion of the destruction of the United 
          States chemical weapons stockpile.

                Subtitle D--Intelligence-Related Matters

Sec. 931. Technical amendments to title 10, United States Code, arising 
          from enactment of the Intelligence Reform and Terrorism 
          Prevention Act of 2004.

                 Subtitle E--Roles and Missions Analysis

Sec. 941. Requirement for quadrennial roles and missions review.
Sec. 942. Joint Requirements Oversight Council additional duties 
          relating to core mission areas.
Sec. 943. Requirement for certification of major systems prior to 
          technology development.
Sec. 944. Presentation of future-years mission budget by core mission 
          area.

                        Subtitle F--Other Matters

Sec. 951. Department of Defense consideration of effect of climate 
          change on Department facilities, capabilities, and missions.
Sec. 952. Interagency policy coordination.
Sec. 953. Expansion of employment creditable under service agreements 
          under National Security Education Program.
Sec. 954. Board of Regents for the Uniformed Services University of the 
          Health Sciences.
Sec. 955. Establishment of Department of Defense School of Nursing.
Sec. 956. Inclusion of commanders of Western Hemisphere combatant 
          commands in Board of Visitors of Western Hemisphere Institute 
          for Security Cooperation.
Sec. 957. Comptroller General assessment of reorganization of the Office 
          of the Under Secretary of Defense for Policy.
Sec. 958. Report on foreign language proficiency.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. General transfer authority.
Sec. 1002. United States contribution to NATO common-funded budgets in 
          fiscal year 2008.
Sec. 1003. Authorization of additional emergency supplemental 
          appropriations for fiscal year 2007.
Sec. 1004. Modification of fiscal year 2007 general transfer authority.
Sec. 1005. Financial management transformation initiative for the 
          Defense Agencies.
Sec. 1006. Repeal of requirement for two-year budget cycle for the 
          Department of Defense.

          Subtitle B--Policy Relating to Vessels and Shipyards

Sec. 1011. Limitation on leasing of vessels.
Sec. 1012. Policy relating to major combatant vessels of the strike 
          forces of the United States Navy.

                   Subtitle C--Counter-Drug Activities

Sec. 1021. Extension of authority for joint task forces to provide 
          support to law enforcement agencies conducting counter-
          terrorism activities.
Sec. 1022. Expansion of authority to provide additional support for 
          counter-drug activities in certain foreign countries.
Sec. 1023. Report on counternarcotics assistance for the Government of 
          Haiti.

          Subtitle D--Miscellaneous Authorities and Limitations

Sec. 1031. Provision of Air Force support and services to foreign 
          military and state aircraft.
Sec. 1032. Department of Defense participation in Strategic Airlift 
          Capability Partnership.
Sec. 1033. Improved authority to provide rewards for assistance in 
          combating terrorism.
Sec. 1034. Support for non-Federal development and testing of material 
          for chemical agent defense.
Sec. 1035. Prohibition on sale of F-14 fighter aircraft and related 
          parts.

                           Subtitle E--Reports

Sec. 1041. Extension and modification of report relating to hardened and 
          deeply buried targets.
Sec. 1042. Report on joint modeling and simulation activities.
Sec. 1043. Renewal of submittal of plans for prompt global strike 
          capability.
Sec. 1044. Report on workforce required to support the nuclear missions 
          of the Navy and the Department of Energy.
Sec. 1045. Comptroller General report on Defense Finance and Accounting 
          Service response to Butterbaugh v. Department of Justice.
Sec. 1046. Study on size and mix of airlift force.
Sec. 1047. Report on feasibility of establishing a domestic military 
          aviation national training center.
Sec. 1048. Limited field user evaluations for combat helmet pad 
          suspension systems.
Sec. 1049. Study on national security interagency system.
Sec. 1050. Report on solid rocket motor industrial base.
Sec. 1051. Reports on establishment of a memorial for members of the 
          Armed Forces who died in the air crash in Bakers Creek, 
          Australia, and establishment of other memorials in Arlington 
          National Cemetery.

                        Subtitle F--Other Matters

Sec. 1061. Reimbursement for National Guard support provided to Federal 
          agencies.
Sec. 1062. Congressional Commission on the Strategic Posture of the 
          United States.
Sec. 1063. Technical and clerical amendments.
Sec. 1064. Repeal of certification requirement.
Sec. 1065. Maintenance of capability for space-based nuclear detection.
Sec. 1066. Sense of Congress regarding detainees at Naval Station, 
          Guantanamo Bay, Cuba.
Sec. 1067. A report on transferring individuals detained at Naval 
          Station, Guantanamo Bay, Cuba.
Sec. 1068. Repeal of provisions in section 1076 of Public Law 109-364 
          relating to use of Armed Forces in major public emergencies.
Sec. 1069. Standards required for entry to military installations in 
          United States.
Sec. 1070. Revised nuclear posture review.
Sec. 1071. Termination of Commission on the Implementation of the New 
          Strategic Posture of the United States.
Sec. 1072. Security clearances; limitations.
Sec. 1073. Improvements in the process for the issuance of security 
          clearances.
Sec. 1074. Protection of certain individuals.
Sec. 1075. Modification of authorities on Commission to Assess the 
          Threat to the United States from Electromagnetic Pulse Attack.
Sec. 1076. Sense of Congress on Small Business Innovation Research 
          Program.
Sec. 1077. Revision of proficiency flying definition.
Sec. 1078. Qualifications for public aircraft status of aircraft under 
          contract with the Armed Forces.
Sec. 1079. Communications with the Committees on Armed Services of the 
          Senate and the House of Representatives.
Sec. 1080. Retention of reimbursement for provision of reciprocal fire 
          protection services.
Sec. 1081. Pilot program on commercial fee-for-service air refueling 
          support for the Air Force.
Sec. 1082. Advisory panel on Department of Defense capabilities for 
          support of civil authorities after certain incidents.
Sec. 1083. Terrorism exception to immunity.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

Sec. 1101. Extension of authority to waive annual limitation on total 
          compensation paid to Federal civilian employees working 
          overseas under areas of United States Central Command.
Sec. 1102. Continuation of life insurance coverage for Federal employees 
          called to active duty.
Sec. 1103. Transportation of dependents, household effects, and personal 
          property to former home following death of Federal employee 
          where death resulted from disease or injury incurred in the 
          Central Command area of responsibility.
Sec. 1104. Special benefits for civilian employees assigned on 
          deployment temporary change of station.
Sec. 1105. Death gratuity authorized for Federal employees.
Sec. 1106. Modifications to the National Security Personnel System.
Sec. 1107. Requirement for full implementation of personnel 
          demonstration project.
Sec. 1108. Authority for inclusion of certain Office of Defense Research 
          and Engineering positions in experimental personnel program 
          for scientific and technical personnel.
Sec. 1109. Pilot program for the temporary assignment of information 
          technology personnel to private sector organizations.
Sec. 1110. Compensation for Federal wage system employees for certain 
          travel hours.
Sec. 1111. Travel compensation for wage grade personnel.
Sec. 1112. Accumulation of annual leave by senior level employees.
Sec. 1113. Uniform allowances for civilian employees.
Sec. 1114. Flexibility in setting pay for employees who move from a 
          Department of Defense or Coast Guard nonappropriated fund 
          instrumentality position to a position in the General Schedule 
          pay system.
Sec. 1115. Retirement service credit for service as cadet or midshipman 
          at a military service academy.
Sec. 1116. Authorization for increased compensation for faculty and 
          staff of the Uniformed Services University of the Health 
          Sciences.
Sec. 1117. Report on establishment of a scholarship program for civilian 
          mental health professionals.

             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                   Subtitle A--Assistance and Training

Sec. 1201. Military-to-military contacts and comparable activities.
Sec. 1202. Authority for support of military operations to combat 
          terrorism.
Sec. 1203. Medical care and temporary duty travel expenses for liaison 
          officers of certain foreign nations.
Sec. 1204. Extension and expansion of Department of Defense authority to 
          participate in multinational military centers of excellence.
Sec. 1205. Reauthorization of Commanders' Emergency Response Program.
Sec. 1206. Authority to build the capacity of the Pakistan Frontier 
          Corps.
Sec. 1207. Authority to equip and train foreign personnel to assist in 
          accounting for missing United States Government personnel.
Sec. 1208. Authority to provide automatic identification system data on 
          maritime shipping to foreign countries and international 
          organizations.
Sec. 1209. Report on foreign-assistance related programs carried out by 
          the Department of Defense.
Sec. 1210. Extension and enhancement of authority for security and 
          stabilization assistance.
Sec. 1211. Government Accountability Office report on Global Peace 
          Operations Initiative.
Sec. 1212. Repeal of limitations on military assistance under the 
          American Servicemembers' Protection Act of 2002.

          Subtitle B--Matters Relating to Iraq and Afghanistan

Sec. 1221. Modification of authorities relating to the Office of the 
          Special Inspector General for Iraq Reconstruction.
Sec. 1222. Limitation on availability of funds for certain purposes 
          relating to Iraq.
Sec. 1223. Report on United States policy and military operations in 
          Iraq.
Sec. 1224. Report on a comprehensive set of performance indicators and 
          measures for progress toward military and political stability 
          in Iraq.
Sec. 1225. Report on support from Iran for attacks against coalition 
          forces in Iraq.
Sec. 1226. Sense of Congress on the consequences of a failed state in 
          Iraq.
Sec. 1227. Sense of Congress on federalism in Iraq.
Sec. 1228. Tracking and monitoring of defense articles provided to the 
          Government of Iraq and other individuals and groups in Iraq.
Sec. 1229. Special Inspector General for Afghanistan Reconstruction.
Sec. 1230. Report on progress toward security and stability in 
          Afghanistan.
Sec. 1231. United States plan for sustaining the Afghanistan National 
          Security Forces.
Sec. 1232. Report on enhancing security and stability in the region 
          along the border of Afghanistan and Pakistan.
Sec. 1233. Reimbursement of certain coalition nations for support 
          provided to United States military operations.
Sec. 1234. Logistical support for coalition forces supporting operations 
          in Iraq and Afghanistan.

                     Subtitle C--Iraq Refugee Crisis

Sec. 1241. Short title.
Sec. 1242. Processing mechanisms.
Sec. 1243. United States refugee program processing priorities.
Sec. 1244. Special immigrant status for certain Iraqis.
Sec. 1245. Senior Coordinator for Iraqi Refugees and Internally 
          Displaced Persons.
Sec. 1246. Countries with significant populations of Iraqi refugees.
Sec. 1247. Motion to reopen denial or termination of asylum.
Sec. 1248. Reports.
Sec. 1249. Authorization of appropriations.

              Subtitle D--Other Authorities and Limitations

Sec. 1251. Cooperative opportunities documents under cooperative 
          research and development agreements with NATO organizations 
          and other allied and friendly foreign countries.
Sec. 1252. Extension and expansion of temporary authority to use 
          acquisition and cross-servicing agreements to lend military 
          equipment for personnel protection and survivability.
Sec. 1253. Acceptance of funds from the Government of Palau for costs of 
          United States military Civic Action Team in Palau.
Sec. 1254. Repeal of requirement relating to North Korea.
Sec. 1255. Justice for Osama bin Laden and other leaders of al Qaeda.
Sec. 1256. Extension of Counterproliferation Program Review Committee.
Sec. 1257. Sense of Congress on the Western Hemisphere Institute for 
          Security Cooperation.
Sec. 1258. Sense of Congress on Iran.

                           Subtitle E--Reports

Sec. 1261. One-year extension of update on report on claims relating to 
          the bombing of the Labelle Discotheque.
Sec. 1262. Report on United States policy toward Darfur, Sudan.
Sec. 1263. Inclusion of information on asymmetric capabilities in annual 
          report on military power of the People's Republic of China.
Sec. 1264. Report on application of the Uniform Code of Military Justice 
          to civilians accompanying the Armed Forces during a time of 
          declared war or contingency operation.
Sec. 1265. Report on family reunions between United States citizens and 
          their relatives in North Korea.
Sec. 1266. Reports on prevention of mass atrocities.
Sec. 1267. Report on threats to the United States from ungoverned areas.

   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. Specification of Cooperative Threat Reduction programs in 
          states outside the former Soviet Union.
Sec. 1304. Repeal of restrictions on assistance to states of the former 
          Soviet Union for Cooperative Threat Reduction.
Sec. 1305. Modification of authority to use Cooperative Threat Reduction 
          funds outside the former Soviet Union.
Sec. 1306. New initiatives for the Cooperative Threat Reduction Program.
Sec. 1307. Report relating to chemical weapons destruction at 
          Shchuch'ye, Russia.
Sec. 1308. National Academy of Sciences study of prevention of 
          proliferation of biological weapons.

                     TITLE XIV--OTHER AUTHORIZATIONS

                      Subtitle A--Military Programs

Sec. 1401. Working capital funds.
Sec. 1402. National Defense Sealift Fund.
Sec. 1403. Defense Health Program.
Sec. 1404. Chemical agents and munitions destruction, Defense.
Sec. 1405. Drug Interdiction and Counter-Drug Activities, Defense-wide.
Sec. 1406. Defense Inspector General.

                 Subtitle B--National Defense Stockpile

Sec. 1411. Authorized uses of National Defense Stockpile funds.
Sec. 1412. Revisions to required receipt objectives for previously 
          authorized disposals from the National Defense Stockpile.
Sec. 1413. Disposal of ferromanganese.
Sec. 1414. Disposal of chrome metal.

                Subtitle C--Armed Forces Retirement Home

Sec. 1421. Authorization of appropriations for Armed Forces Retirement 
          Home.
Sec. 1422. Administration and oversight of the Armed Forces Retirement 
          Home.

TITLE XV--AUTHORIZATION OF ADDITIONAL APPROPRIATIONS FOR 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. Joint Improvised Explosive Device Defeat Fund.
Sec. 1506. Defense-wide activities procurement.
Sec. 1507. Research, development, test, and evaluation.
Sec. 1508. Operation and maintenance.
Sec. 1509. Working capital funds.
Sec. 1510. Other Department of Defense programs.
Sec. 1511. Iraq Freedom Fund.
Sec. 1512. Iraq Security Forces Fund.
Sec. 1513. Afghanistan Security Forces Fund.
Sec. 1514. Military personnel.
Sec. 1515. Strategic Readiness Fund.
Sec. 1516. Treatment as additional authorizations.
Sec. 1517. Special transfer authority.

                   TITLE XVI--WOUNDED WARRIOR MATTERS

Sec. 1601. Short title.
Sec. 1602. General definitions.
Sec. 1603. Consideration of gender-specific needs of recovering service 
          members and veterans.

 Subtitle A--Policy on Improvements to Care, Management, and Transition 
                      of Recovering Service Members

Sec. 1611. Comprehensive policy on improvements to care, management, and 
          transition of recovering service members.
Sec. 1612. Medical evaluations and physical disability evaluations of 
          recovering service members.
Sec. 1613. Return of recovering service members to active duty in the 
          Armed Forces.
Sec. 1614. Transition of recovering service members from care and 
          treatment through the Department of Defense to care, 
          treatment, and rehabilitation through the Department of 
          Veterans Affairs.
Sec. 1615. Reports.
Sec. 1616. Establishment of a wounded warrior resource center.
Sec. 1617. Notification to Congress of hospitalization of combat wounded 
          service members.
Sec. 1618. Comprehensive plan on prevention, diagnosis, mitigation, 
          treatment, and rehabilitation of, and research on, traumatic 
          brain injury, post-traumatic stress disorder, and other mental 
          health conditions in members of the Armed Forces.

    Subtitle B--Centers of Excellence in the Prevention, Diagnosis, 
  Mitigation, Treatment, and Rehabilitation of Traumatic Brain Injury, 
            Post-Traumatic Stress Disorder, and Eye Injuries

Sec. 1621. Center of excellence in the prevention, diagnosis, 
          mitigation, treatment, and rehabilitation of traumatic brain 
          injury.
Sec. 1622. Center of excellence in prevention, diagnosis, mitigation, 
          treatment, and rehabilitation of post-traumatic stress 
          disorder and other mental health conditions.
Sec. 1623. Center of excellence in prevention, diagnosis, mitigation, 
          treatment, and rehabilitation of military eye injuries.
Sec. 1624. Report on establishment of centers of excellence.

                     Subtitle C--Health Care Matters

Sec. 1631. Medical care and other benefits for members and former 
          members of the Armed Forces with severe injuries or illnesses.
Sec. 1632. Reimbursement of travel expenses of retired members with 
          combat-related disabilities for follow-on specialty care, 
          services, and supplies.
Sec. 1633. Respite care and other extended care benefits for members of 
          the uniformed services who incur a serious injury or illness 
          on active duty.
Sec. 1634. Reports.
Sec. 1635. Fully interoperable electronic personal health information 
          for the Department of Defense and Department of Veterans 
          Affairs.
Sec. 1636. Enhanced personnel authorities for the Department of Defense 
          for health care professionals for care and treatment of 
          wounded and injured members of the Armed Forces.
Sec. 1637. Continuation of transitional health benefits for members of 
          the Armed Forces pending resolution of service-related medical 
          conditions.

                     Subtitle D--Disability Matters

Sec. 1641. Utilization of veterans' presumption of sound condition in 
          establishing eligibility of members of the Armed Forces for 
          retirement for disability.
Sec. 1642. Requirements and limitations on Department of Defense 
          determinations of disability with respect to members of the 
          Armed Forces.
Sec. 1643. Review of separation of members of the Armed Forces separated 
          from service with a disability rating of 20 percent disabled 
          or less.
Sec. 1644. Authorization of pilot programs to improve the disability 
          evaluation system for members of the Armed Forces.
Sec. 1645. Reports on Army action plan in response to deficiencies in 
          the Army physical disability evaluation system.
Sec. 1646. Enhancement of disability severance pay for members of the 
          Armed Forces.
Sec. 1647. Assessments of continuing utility and future role of 
          temporary disability retired list.
Sec. 1648. Standards for military medical treatment facilities, 
          specialty medical care facilities, and military quarters 
          housing patients and annual report on such facilities.
Sec. 1649. Reports on Army Medical Action Plan in response to 
          deficiencies identified at Walter Reed Army Medical Center, 
          District of Columbia.
Sec. 1650. Required certifications in connection with closure of Walter 
          Reed Army Medical Center, District of Columbia.
Sec. 1651. Handbook for members of the Armed Forces on compensation and 
          benefits available for serious injuries and illnesses.

                     Subtitle E--Studies and Reports

Sec. 1661. Study on physical and mental health and other readjustment 
          needs of members and former members of the Armed Forces who 
          deployed in Operation Iraqi Freedom and Operation Enduring 
          Freedom and their families.
Sec. 1662. Access of recovering service members to adequate outpatient 
          residential facilities.
Sec. 1663. Study and report on support services for families of 
          recovering service members.
Sec. 1664. Report on traumatic brain injury classifications.
Sec. 1665. Evaluation of the Polytrauma Liaison Officer/Non-Commissioned 
          Officer program.

                        Subtitle F--Other Matters

Sec. 1671. Prohibition on transfer of resources from medical care.
Sec. 1672. Medical care for families of members of the Armed Forces 
          recovering from serious injuries or illnesses.
Sec. 1673. Improvement of medical tracking system for members of the 
          Armed Forces deployed overseas.
Sec. 1674. Guaranteed funding for Walter Reed Army Medical Center, 
          District of Columbia.
Sec. 1675. Use of leave transfer program by wounded veterans who are 
          Federal employees.
Sec. 1676. Moratorium on conversion to contractor performance of 
          Department of Defense functions at military medical 
          facilities.

                      TITLE XVII--VETERANS MATTERS

Sec. 1701. Sense of Congress on Department of Veterans Affairs efforts 
          in the rehabilitation and reintegration of veterans with 
          traumatic brain injury.
Sec. 1702. Individual rehabilitation and community reintegration plans 
          for veterans and others with traumatic brain injury.
Sec. 1703. Use of non-Department of Veterans Affairs facilities for 
          implementation of rehabilitation and community reintegration 
          plans for traumatic brain injury.
Sec. 1704. Research, education, and clinical care program on traumatic 
          brain injury.
Sec. 1705. Pilot program on assisted living services for veterans with 
          traumatic brain injury.
Sec. 1706. Provision of age-appropriate nursing home care.
Sec. 1707. Extension of period of eligibility for health care for 
          veterans of combat service during certain periods of 
          hostilities and war.
Sec. 1708. Service-connection and assessments for mental health 
          conditions in veterans.
Sec. 1709. Modification of requirements for furnishing outpatient dental 
          services to veterans with service-connected dental conditions 
          or disabilities.
Sec. 1710. Clarification of purpose of outreach services program of 
          Department of Veterans Affairs.
Sec. 1711. Designation of fiduciary or trustee for purposes of Traumatic 
          Servicemembers' Group Life Insurance.

     TITLE XVIII--NATIONAL GUARD BUREAU MATTERS AND RELATED MATTERS

Sec. 1801. Short title.

                    Subtitle A--National Guard Bureau

Sec. 1811. Appointment, grade, duties, and retirement of the Chief of 
          the National Guard Bureau.
Sec. 1812. Establishment of National Guard Bureau as joint activity of 
          the Department of Defense.
Sec. 1813. Enhancement of functions of the National Guard Bureau.
Sec. 1814. Requirement for Secretary of Defense to prepare plan for 
          response to natural disasters and terrorist events.
Sec. 1815. Determination of Department of Defense civil support 
          requirements.

          Subtitle B--Additional Reserve Component Enhancement

Sec. 1821. United States Northern Command.
Sec. 1822. Council of Governors.
Sec. 1823. Plan for Reserve Forces Policy Board.
Sec. 1824. High-level positions authorized or required to be held by 
          reserve component general or flag officers.
Sec. 1825. Retirement age and years of service limitations on certain 
          reserve general and flag officers.
Sec. 1826. Additional reporting requirements relating to National Guard 
          equipment.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.
Sec. 2002. Expiration of authorizations and amounts required to be 
          specified by law.

                             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.
Sec. 2105. Termination of authority to carry out fiscal year 2007 Army 
          projects for which funds were not appropriated.
Sec. 2106. Technical amendments to Military Construction Authorization 
          Act for Fiscal Year 2007.
Sec. 2107. Modification of authority to carry out certain fiscal year 
          2006 projects.
Sec. 2108. Extension of authorizations of certain fiscal year 2005 
          projects.
Sec. 2109. Ground lease, SOUTHCOM headquarters facility, Miami-Doral, 
          Florida.

                            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. Termination of authority to carry out fiscal year 2007 Navy 
          projects for which funds were not appropriated.
Sec. 2206. Modification of authority to carry out certain fiscal year 
          2005 projects.
Sec. 2207. Repeal of authorization for construction of Navy Outlying 
          Landing Field, Washington County, North Carolina.

                         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. Termination of authority to carry out fiscal year 2007 Air 
          Force projects for which funds were not appropriated.
Sec. 2306. Modification of authority to carry out certain fiscal year 
          2006 projects.
Sec. 2307. Extension of authorizations of certain fiscal year 2005 
          projects.
Sec. 2308. Extension of authorizations of certain fiscal year 2004 
          projects.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition 
          projects.
Sec. 2402. Energy conservation projects.
Sec. 2403. Authorization of appropriations, Defense Agencies.
Sec. 2404. Termination or modification of authority to carry out certain 
          fiscal year 2007 Defense Agencies projects.
Sec. 2405. Munitions demilitarization facilities, Blue Grass Army Depot, 
          Kentucky, and Pueblo Chemical Activity, Colorado.
Sec. 2406. Extension of authorizations of certain fiscal year 2005 
          projects.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

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

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Army National Guard construction and land 
          acquisition projects.
Sec. 2602. Authorized Army Reserve construction and land acquisition 
          projects.
Sec. 2603. Authorized Navy Reserve and Marine Corps Reserve construction 
          and land acquisition projects.
Sec. 2604. Authorized Air National Guard construction and land 
          acquisition projects.
Sec. 2605. Authorized Air Force Reserve construction and land 
          acquisition projects.
Sec. 2606. Authorization of appropriations, National Guard and Reserve.
Sec. 2607. Termination of authority to carry out fiscal year 2007 Guard 
          and Reserve projects for which funds were not appropriated.
Sec. 2608. Modification of authority to carry out fiscal year 2006 Air 
          Force Reserve construction and acquisition projects.
Sec. 2609. Extension of authorizations of certain fiscal year 2005 
          projects.
Sec. 2610. Extension of authorizations of certain fiscal year 2004 
          projects.

          TITLE XXVII--BASE CLOSURE AND REALIGNMENT ACTIVITIES

Sec. 2701. Authorization of appropriations for base closure and 
          realignment activities funded through Department of Defense 
          Base Closure Account 1990.
Sec. 2702. Authorized base closure and realignment activities funded 
          through Department of Defense Base Closure Account 2005.
Sec. 2703. Authorization of appropriations for base closure and 
          realignment activities funded through Department of Defense 
          Base Closure Account 2005.
Sec. 2704. Authorized cost and scope of work variations for military 
          construction and military family housing projects related to 
          base closures and realignments.
Sec. 2705. Transfer of funds from Department of Defense Base Closure 
          Account 2005 to Department of Defense Housing Funds.
Sec. 2706. Comprehensive accounting of funding required to ensure timely 
          implementation of 2005 Defense Base Closure and Realignment 
          Commission recommendations.
Sec. 2707. Relocation of units from Roberts United States Army Reserve 
          Center and Navy-Marine Corps Reserve Center, Baton Rouge, 
          Louisiana.
Sec. 2708. Acquisition of real property, Fort Belvoir, Virginia, as part 
          of the realignment of the installation.
Sec. 2709. Report on availability of traffic infrastructure and 
          facilities to support base realignment.

         TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

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

Sec. 2801. Authority to use operation and maintenance funds for 
          construction projects outside the United States.
Sec. 2802. Clarification of requirement for authorization of military 
          construction.
Sec. 2803. Increase in thresholds for unspecified minor military 
          construction projects.
Sec. 2804. Temporary authority to support revitalization of Department 
          of Defense laboratories through unspecified minor military 
          construction projects.
Sec. 2805. Extension of authority to accept equalization payments for 
          facility exchanges.
Sec. 2806. Modifications of authority to lease military family housing.
Sec. 2807. Expansion of authority to exchange reserve component 
          facilities.
Sec. 2808. Limitation on use of alternative authority for acquisition 
          and improvement of military housing for privatization of 
          temporary lodging facilities.
Sec. 2809. Two-year extension of temporary program to use minor military 
          construction authority for construction of child development 
          centers.
Sec. 2810. Report on housing privatization initiatives.

         Subtitle B--Real Property and Facilities Administration

Sec. 2821. Requirement to report real property transactions resulting in 
          annual costs of more than $750,000.
Sec. 2822. Continued consolidation of real property provisions without 
          substantive change.
Sec. 2823. Modification of authority to lease non-excess property of the 
          military departments.
Sec. 2824. Cooperative agreement authority for management of cultural 
          resources on certain sites outside military installations.
Sec. 2825. Agreements to limit encroachments and other constraints on 
          military training, testing, and operations.
Sec. 2826. Expansion to all military departments of Army pilot program 
          for purchase of certain municipal services for military 
          installations.
Sec. 2827. Prohibition on commercial flights into Selfridge Air National 
          Guard Base.
Sec. 2828. Sense of Congress on Department of Defense actions to protect 
          installations, ranges, and military airspace from 
          encroachment.
Sec. 2829. Reports on Army and Marine Corps operational ranges.
Sec. 2830. Niagara Air Reserve Base, New York, basing report.
Sec. 2831. Report on the Pinon Canyon Maneuver Site, Colorado.

                      Subtitle C--Land Conveyances

Sec. 2841. Modification of conveyance authority, Marine Corps Base, Camp 
          Pendleton, California.
Sec. 2842. Grant of easement, Eglin Air Force Base, Florida.
Sec. 2843. Land conveyance, Lynn Haven Fuel Depot, Lynn Haven, Florida.
Sec. 2844. Modification of lease of property, National Flight Academy at 
          the National Museum of Naval Aviation, Naval Air Station, 
          Pensacola, Florida.
Sec. 2845. Land exchange, Detroit, Michigan.
Sec. 2846. Transfer of jurisdiction, former Nike missile site, Grosse 
          Ile, Michigan.
Sec. 2847. Modification to land conveyance authority, Fort Bragg, North 
          Carolina.
Sec. 2848. Land conveyance, Lewis and Clark United States Army Reserve 
          Center, Bismarck, North Dakota.
Sec. 2849. Land exchange, Fort Hood, Texas.

                       Subtitle D--Energy Security

Sec. 2861. Repeal of congressional notification requirement regarding 
          cancellation ceiling for Department of Defense energy savings 
          performance contracts.
Sec. 2862. Definition of alternative fueled vehicle.
Sec. 2863. Use of energy efficient lighting fixtures and bulbs in 
          Department of Defense facilities.
Sec. 2864. Reporting requirements relating to renewable energy use by 
          Department of Defense to meet Department electricity needs.

                        Subtitle E--Other Matters

Sec. 2871. Revised deadline for transfer of Arlington Naval Annex to 
          Arlington National Cemetery.
Sec. 2872. Transfer of jurisdiction over Air Force Memorial to 
          Department of the Air Force.
Sec. 2873. Report on plans to replace the monument at the Tomb of the 
          Unknowns at Arlington National Cemetery, Virginia.
Sec. 2874. Increased authority for repair, restoration, and preservation 
          of Lafayette Escadrille Memorial, Marnes-la-Coquette, France.
Sec. 2875. Addition of Woonsocket local protection project.
Sec. 2876. Repeal of moratorium on improvements at Fort Buchanan, Puerto 
          Rico.
Sec. 2877. Establishment of national military working dog teams monument 
          on suitable military installation.
Sec. 2878. Report required prior to removal of missiles from 564th 
          Missile Squadron.
Sec. 2879. Report on condition of schools under jurisdiction of 
          Department of Defense Education Activity.
Sec. 2880. Report on facilities and operations of Darnall Army Medical 
          Center, Fort Hood Military Reservation, Texas.
Sec. 2881. Report on feasibility of establishing a regional disaster 
          response center at Kelly Air Field, San Antonio, Texas.
Sec. 2882. Naming of housing facility at Fort Carson, Colorado, in honor 
          of the Honorable Joel Hefley, a former member of the United 
          States House of Representatives.
Sec. 2883. Naming of Navy and Marine Corps Reserve Center at Rock 
          Island, Illinois, in honor of the Honorable Lane Evans, a 
          former member of the United States House of Representatives.
Sec. 2884. Naming of research laboratory at Air Force Rome Research 
          Site, Rome, New York, in honor of the Honorable Sherwood L. 
          Boehlert, a former member of the United States House of 
          Representatives.
Sec. 2885. Naming of administration building at Joint Systems 
          Manufacturing Center, Lima, Ohio, in honor of the Honorable 
          Michael G. Oxley, a former member of the United States House 
          of Representatives.
Sec. 2886. Naming of Logistics Automation Training Facility, Army 
          Quartermaster Center and School, Fort Lee, Virginia, in honor 
          of General Richard H. Thompson.
Sec. 2887. Authority to relocate Joint Spectrum Center to Fort Meade, 
          Maryland.

      TITLE XXIX--WAR-RELATED AND EMERGENCY MILITARY CONSTRUCTION 
                             AUTHORIZATIONS

Sec. 2901. Authorized Army construction and land acquisition projects.
Sec. 2902. Authorized Navy construction and land acquisition projects.
Sec. 2903. Authorized Air Force construction and land acquisition 
          projects.
Sec. 2904. Authorized Defense Agencies construction and land acquisition 
          projects.
Sec. 2905. Authorized base closure and realignment activities funded 
          through Department of Defense Base Closure Account 2005 and 
          related authorization of appropriations.

 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.
Sec. 3105. Energy security and assurance.

    Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Reliable Replacement Warhead program.
Sec. 3112. Nuclear test readiness.
Sec. 3113. Modification of reporting requirement.
Sec. 3114. Limitation on availability of funds for Fissile Materials 
          Disposition program.
Sec. 3115. Modification of limitations on availability of funds for 
          Waste Treatment and Immobilization Plant.
Sec. 3116. Modification of sunset date of the Office of the Ombudsman of 
          the Energy Employees Occupational Illness Compensation 
          Program.
Sec. 3117. Technical amendments.

                        Subtitle C--Other Matters

Sec. 3121. Study on using existing pits for the Reliable Replacement 
          Warhead program.
Sec. 3122. Report on retirement and dismantlement of nuclear warheads.
Sec. 3123. Plan for addressing security risks posed to nuclear weapons 
          complex.
Sec. 3124. Department of Energy protective forces.
Sec. 3125. Evaluation of National Nuclear Security Administration 
          strategic plan for advanced computing.
Sec. 3126. Sense of Congress on the nuclear nonproliferation policy of 
          the United States and the Reliable Replacement Warhead 
          program.
Sec. 3127. Department of Energy report on plan to strengthen and expand 
          International Radiological Threat Reduction program.
Sec. 3128. Department of Energy report on plan to strengthen and expand 
          Materials Protection, Control, and Accounting program.
Sec. 3129. Agreements and reports on nuclear forensics capabilities.
Sec. 3130. Report on status of environmental management initiatives to 
          accelerate the reduction of environmental risks and challenges 
          posed by the legacy of the Cold War.

                Subtitle D--Nuclear Terrorism Prevention

Sec. 3131. Definitions.
Sec. 3132. Sense of Congress on the prevention of nuclear terrorism.
Sec. 3133. Minimum security standard for nuclear weapons and formula 
          quantities of strategic special nuclear material.
Sec. 3134. Annual report.

   TITLE XXXII--WAR-RELATED NATIONAL NUCLEAR SECURITY ADMINISTRATION 
                             AUTHORIZATIONS

Sec. 3201. Additional war-related authorization of appropriations for 
          National Nuclear Security Administration.

          TITLE XXXIII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3301. Authorization.

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.
Sec. 3402. Remedial action at Moab uranium milling site.

                   TITLE XXXV--MARITIME ADMINISTRATION

           Subtitle A--Maritime Administration Reauthorization

Sec. 3501. Authorization of appropriations for fiscal year 2008.
Sec. 3502. Temporary authority to transfer obsolete combatant vessels to 
          Navy for disposal.
Sec. 3503. Vessel disposal program.

                          Subtitle B--Programs

Sec. 3511. Commercial vessel chartering authority.
Sec. 3512. Maritime Administration vessel chartering authority.
Sec. 3513. Chartering to State and local governmental instrumentalities.
Sec. 3514. Disposal of obsolete Government vessels.
Sec. 3515. Vessel transfer authority.
Sec. 3516. Sea trials for Ready Reserve Force.
Sec. 3517. Review of applications for loans and guarantees.

                    Subtitle C--Technical Corrections

Sec. 3521. Personal injury to or death of seamen.
Sec. 3522. Amendments to Chapter 537 based on Public Law 109-163.
Sec. 3523. Additional amendments based on Public Law 109-163.
Sec. 3524. Amendments based on Public Law 109-171.
Sec. 3525. Amendments based on Public Law 109-241.
Sec. 3526. Amendments based on Public Law 109-364.
Sec. 3527. Miscellaneous amendments.
Sec. 3528. Application of sunset provision to codified provision.
Sec. 3529. Additional technical corrections.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. National Guard and Reserve equipment.

                        Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for M1A2 Abrams System 
          Enhancement Package upgrades.
Sec. 112. Multiyear procurement authority for M2A3/M3A3 Bradley fighting 
          vehicle upgrades.
Sec. 113. Multiyear procurement authority for conversion of CH-47D 
          helicopters to CH-47F configuration.
Sec. 114. Multiyear procurement authority for CH-47F helicopters.
Sec. 115. Limitation on use of funds for Increment 1 of the Warfighter 
          Information Network-Tactical program pending certification to 
          Congress.
Sec. 116. Prohibition on closure of Army Tactical Missile System 
          production line pending report.
Sec. 117. Stryker Mobile Gun System.

                        Subtitle C--Navy Programs

Sec. 121. Multiyear procurement authority for Virginia-class submarine 
          program.
Sec. 122. Report on shipbuilding investment strategy.
Sec. 123. Sense of Congress on the preservation of a skilled United 
          States shipyard workforce.
Sec. 124. Assessments required prior to start of construction on first 
          ship of a shipbuilding program.
Sec. 125. Littoral Combat Ship (LCS) program.

                     Subtitle D--Air Force Programs

Sec. 131. Limitation on Joint Cargo Aircraft.
Sec. 132. Clarification of limitation on retirement of U-2 aircraft.
Sec. 133. Repeal of requirement to maintain retired C-130E tactical 
          aircraft.
Sec. 134. Limitation on retirement of C-130E/H tactical airlift 
          aircraft.
Sec. 135. Limitation on retirement of KC-135E aerial refueling aircraft.
Sec. 136. Transfer to Government of Iraq of three C-130E tactical 
          airlift aircraft.
Sec. 137. Modification of limitations on retirement of B-52 bomber 
          aircraft.

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal 
year 2008 for procurement for the Army as follows:
            (1) For aircraft, $4,168,798,000.
            (2) For missiles, $1,911,979,000.
            (3) For weapons and tracked combat vehicles, 
        $3,007,489,000.
            (4) For ammunition, $2,214,576,000.
            (5) For other procurement, $12,451,312,000.
            (6) For the Joint Improvised Explosive Device 
        Defeat Fund, $228,000,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated 
for fiscal year 2008 for procurement for the Navy as follows:
            (1) For aircraft, $12,432,644,000.
            (2) For weapons, including missiles and torpedoes, 
        $3,068,187,000.
            (3) For shipbuilding and conversion, 
        $13,596,120,000.
            (4) For other procurement, $5,209,330,000.
    (b) Marine Corps.--Funds are hereby authorized to be 
appropriated for fiscal year 2008 for procurement for the 
Marine Corps in the amount of $2,299,419,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby 
authorized to be appropriated for fiscal year 2008 for 
procurement of ammunition for the Navy and the Marine Corps in 
the amount of $1,058,832,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal 
year 2008 for procurement for the Air Force as follows:
            (1) For aircraft, $12,117,800,000.
            (2) For ammunition, $854,167,000.
            (3) For missiles, $4,984,102,000.
            (4) For other procurement, $15,405,832,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal 
year 2008 for Defense-wide procurement in the amount of 
$3,280,435,000.

SEC. 105. NATIONAL GUARD AND RESERVE EQUIPMENT.

    Funds are hereby authorized to be appropriated for fiscal 
year 2008 for the procurement of aircraft, missiles, wheeled 
and tracked combat vehicles, tactical wheeled vehicles, 
ammunition, other weapons, and other procurement for the 
reserve components of the Armed Forces in the amount of 
$980,000,000.

                       Subtitle B--Army Programs

SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR M1A2 ABRAMS SYSTEM 
                    ENHANCEMENT PACKAGE UPGRADES.

    The Secretary of the Army, in accordance with section 2306b 
of title 10, United States Code, may enter into a multiyear 
contract, beginning with the fiscal year 2008 program year, for 
procurement of M1A2 Abrams System Enhancement Package upgrades.

SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR M2A3/M3A3 BRADLEY 
                    FIGHTING VEHICLE UPGRADES.

    The Secretary of the Army, in accordance with section 2306b 
of title 10, United States Code, may enter into a multiyear 
contract, beginning with the fiscal year 2008 program year, for 
procurement of M2A3/M3A3 Bradley fighting vehicle upgrades.

SEC. 113. MULTIYEAR PROCUREMENT AUTHORITY FOR CONVERSION OF CH-47D 
                    HELICOPTERS TO CH-47F CONFIGURATION.

    The Secretary of the Army may, in accordance with section 
2306b of title 10, United States Code, enter into a multiyear 
contract, beginning with the fiscal year 2008 program year, for 
conversion of CH-47D helicopters to the CH-47F configuration.

SEC. 114. MULTIYEAR PROCUREMENT AUTHORITY FOR CH-47F HELICOPTERS.

    The Secretary of the Army may, in accordance with section 
2306b of title 10, United States Code, enter into a multiyear 
contract, beginning with the fiscal year 2008 program year, for 
procurement of CH-47F helicopters.

SEC. 115. LIMITATION ON USE OF FUNDS FOR INCREMENT 1 OF THE WARFIGHTER 
                    INFORMATION NETWORK-TACTICAL PROGRAM PENDING 
                    CERTIFICATION TO CONGRESS.

    (a) Funding Restricted.--Of the amounts appropriated 
pursuant to an authorization of appropriations for fiscal year 
2008 or otherwise made available for Other Procurement, Army, 
that are available for Increment 1 of the Warfighter 
Information Network-Tactical program, not more than 50 percent 
may be obligated or expended until the Director of Operational 
Test and Evaluation submits to the congressional defense 
committees a certification, in writing, that the Director of 
Operational Test and Evaluation has approved a Test and 
Evaluation Master Plan and Initial Operational Test Plan for 
Increment 1 of the Warfighter Information Network-Tactical 
program.
    (b) Increment 1 Defined.--For the purposes of this section, 
Increment 1 of the Warfighter Information Network-Tactical 
program includes all program elements described as constituting 
``Increment 1'' in the memorandum titled ``Warfighter 
Information Network-Tactical (WIN-T) Program Acquisition 
Decision Memorandum'', dated June 5, 2007, and signed by the 
Under Secretary of Defense for Acquisition, Technology, and 
Logistics.

SEC. 116. PROHIBITION ON CLOSURE OF ARMY TACTICAL MISSILE SYSTEM 
                    PRODUCTION LINE PENDING REPORT.

    (a) Prohibition.--Amounts appropriated pursuant to the 
authorization of appropriations in section 101(2) for missiles, 
Army, and in section 1502(4) for missile procurement, Army, and 
any other appropriated funds available to the Secretary of the 
Army may not be used to close the production line for the Army 
Tactical Missile System program until after the date on which 
the Secretary of the Army submits to the congressional defense 
committees a report that contains--
            (1) the certification of the Secretary that the 
        long range surface-to-surface strike and counter 
        battery mission of the Army can be adequately performed 
        by other Army weapons systems or by other elements of 
        the Armed Forces; and
            (2) a plan to mitigate any shortfalls in the 
        industrial base that would be created by the closure of 
        the production line.
    (b) Submission of Report.--The report referred to in 
subsection (a) is required not later than April 1, 2008.

SEC. 117. STRYKER MOBILE GUN SYSTEM.

    (a) Limitation on Availability of Funds.--None of the 
amounts authorized to be appropriated by sections 101(3) and 
1501(3) for procurement of weapons and tracked combat vehicles 
for the Army may be obligated or expended for purposes of the 
procurement of the Stryker Mobile Gun System until 30 days 
after the date on which the Secretary of the Army certifies to 
Congress that the Stryker Mobile Gun System is operationally 
effective, suitable, and survivable for its anticipated 
deployment missions.
    (b) Waiver.--The Secretary of Defense may waive the 
limitation in subsection (a) if the Secretary--
            (1) determines that further procurement of the 
        Stryker Mobile Gun System utilizing amounts referred to 
        in subsection (a) is in the national security interest 
        of the United States notwithstanding the inability of 
        the Secretary of the Army to make the certification 
        required by that subsection; and
            (2) submits to the Congress, in writing, a 
        notification of the waiver together with a discussion 
        of--
                    (A) the reasons for the determination 
                described in paragraph (1); and
                    (B) the actions that will be taken to 
                mitigate any deficiencies that cause the 
                Stryker Mobile Gun System not to be 
                operationally effective, suitable, or 
                survivable, as that case may be, as described 
                in subsection (a).

                       Subtitle C--Navy Programs

SEC. 121. MULTIYEAR PROCUREMENT AUTHORITY FOR VIRGINIA-CLASS SUBMARINE 
                    PROGRAM.

    (a) Authority.--The Secretary of the Navy may, in 
accordance with section 2306b of title 10, United States Code, 
enter into multiyear contracts, beginning with the fiscal year 
2009 program year, for the procurement of Virginia-class 
submarines and Government-furnished equipment associated with 
the Virginia-class submarine program.
    (b) Limitation.--The Secretary may not enter into a 
contract authorized by subsection (a) until--
            (1) the Secretary submits to the congressional 
        defense committees a certification that the Secretary 
        has made, with respect to that contract, each of the 
        findings required by subsection (a) of section 2306b of 
        title 10, United States Code; and
            (2) a period of 30 days has elapsed after the date 
        of the transmission of such certification.

SEC. 122. REPORT ON SHIPBUILDING INVESTMENT STRATEGY.

    (a) Study Required.--The Secretary of the Navy shall 
provide for a study to determine the effectiveness of current 
financing mechanisms for providing incentives for contractors 
to make shipbuilding capital expenditures, and to assess 
potential capital expenditure incentives that would lead to 
ship construction or life-cycle cost savings to the Federal 
Government. The study shall examine--
            (1) potential improvements in design tools and 
        techniques, material management, technology insertion, 
        systems integration and testing, and other key 
        processes and functions that would lead to reduced 
        construction costs;
            (2) construction process improvements that would 
        reduce procurement and life-cycle costs of the vessels 
        under construction at the contractor's facilities; and
            (3) incentives for investment in shipyard 
        infrastructure that support construction process 
        improvements.
    (b) Report.--Not later than October 1, 2008, the Secretary 
of the Navy shall submit to the congressional defense 
committees a report providing the results of the study under 
subsection (a). The report shall include each of the following:
            (1) An assessment of the shipbuilding industrial 
        base, as measured by a ten-year history for major 
        shipbuilders with respect to--
                    (A) estimated value of shipbuilding 
                facilities;
                    (B) critical shipbuilding capabilities;
                    (C) capital expenditures;
                    (D) major investments in process 
                improvements; and
                    (E) costs for related Navy shipbuilding 
                projects.
            (2) A description of mechanisms available to the 
        government and industry to finance facilities and 
        process improvements, including--
                    (A) contract incentive and award fees;
                    (B) facilities capital cost of money;
                    (C) facilities depreciation;
                    (D) progress payment provisions;
                    (E) other contract terms and conditions;
                    (F) State and Federal tax provisions and 
                tax incentives;
                    (G) the National Shipbuilding Research 
                Program; and
                    (H) any other mechanisms available.
            (3) A summary of potential shipbuilding investments 
        that offer greatest reduction to shipbuilding costs, 
        including, for each such investment--
                    (A) a project description;
                    (B) an estimate of required investment;
                    (C) the estimated return on investment; and
                    (D) alternatives for financing the 
                investment.
            (4) The Navy's strategy for providing incentives 
        for contractors' capital expenditures that would lead 
        to ship construction or life-cycle savings to the 
        Federal Government, including identification of any 
        specific changes in legislative authority that would be 
        required for the Secretary to execute this strategy.
    (c) Utilization of Other Studies and Outside Experts.--The 
study shall build upon the results of the 2005 and 2006 Global 
Shipbuilding Industrial Base Benchmarking studies. Financial 
analysis associated with the report shall be conducted in 
consultation with financial experts independent of the 
Department of Defense.

SEC. 123. SENSE OF CONGRESS ON THE PRESERVATION OF A SKILLED UNITED 
                    STATES SHIPYARD WORKFORCE.

    (a) Sense of Congress.--It is the sense of Congress that 
the preservation of a robust domestic skilled workforce is 
required for the national shipbuilding infrastructure and 
particularly essential to the construction of ships for the 
United States Navy.
    (b) Study Required.--
            (1) In general.--The Secretary of the Navy shall 
        determine, on a one-time, non-recurring basis, and in 
        consultation with the Department of Labor, the average 
        number of H2B visa workers employed by the major 
        shipbuilders in the construction of United States Navy 
        ships during the calendar year ending December 31, 
        2007. The study shall also identify the number of 
        workers petitioned by the major shipbuilders for use in 
        calendar year 2008, as of the first quarter of calendar 
        year 2008.
            (2) Report.--Not later than April 1, 2008, the 
        Secretary of the Navy shall submit to the congressional 
        defense committees a report containing the results of 
        the study required by subsection (b).
            (3) Definitions.--In this paragraph--
                    (A) the term ``major shipbuilder'' means a 
                prime contractor or a first-tier subcontractor 
                responsible for delivery of combatant and 
                support vessels required for the naval vessel 
                force, as reported within the annual naval 
                vessel construction plan required by section 
                231 of title 10, United States Code; and
                    (B) the term ``H2B visa'' means a non-
                immigrant visa program that permits employers 
                to hire foreign workers to come temporarily to 
                the United States and perform temporary non-
                agricultural services or labor on a one-time, 
                seasonal, peakload, or intermittent basis.

SEC. 124. ASSESSMENTS REQUIRED PRIOR TO START OF CONSTRUCTION ON FIRST 
                    SHIP OF A SHIPBUILDING PROGRAM.

    (a) In General.--Concurrent with approving the start of 
construction of the first ship for any major shipbuilding 
program, the Secretary of the Navy shall--
            (1) submit a report to the congressional defense 
        committees on the results of any production readiness 
        review; and
            (2) certify to the congressional defense committees 
        that the findings of any such review support 
        commencement of construction.
    (b) Report.--The report required by subsection (a)(1) shall 
include, at a minimum, an assessment of each of the following:
            (1) The maturity of the ship's design, as measured 
        by stability of the ship contract specifications and 
        the degree of completion of detail design and 
        production design drawings.
            (2) The maturity of developmental command and 
        control systems, weapon and sensor systems, and hull, 
        mechanical and electrical systems.
            (3) The readiness of the shipyard facilities and 
        workforce to begin construction.
            (4) The Navy's estimated cost at completion and the 
        adequacy of the budget to support the estimate.
            (5) The Navy's estimated delivery date and 
        description of any variance to the contract delivery 
        date.
            (6) The extent to which adequate processes and 
        metrics are in place to measure and manage program 
        risks.
    (c) Applicability.--This section applies to each major 
shipbuilding program beginning after the date of the enactment 
of this Act.
    (d) Definitions.--For the purposes of subsection (a):
            (1) Start of construction.--The term ``start of 
        construction'' means the beginning of fabrication of 
        the hull and superstructure of the ship.
            (2) First ship.--The term ``first ship'' applies to 
        a ship if--
                    (A) the ship is the first ship to be 
                constructed under that shipbuilding program; or
                    (B) the shipyard at which the ship is to be 
                constructed has not previously started 
                construction on a ship under that shipbuilding 
                program.
            (3) Major shipbuilding program.--The term ``major 
        shipbuilding program'' means a program for the 
        construction of combatant and support vessels required 
        for the naval vessel force, as reported within the 
        annual naval vessel construction plan required by 
        section 231 of title 10, United States Code.
            (4) Production readiness review.--The term 
        ``production readiness review'' means a formal 
        examination of a program prior to the start of 
        construction to determine if the design is ready for 
        production, production engineering problems have been 
        resolved, and the producer has accomplished adequate 
        planning for the production phase.

SEC. 125. LITTORAL COMBAT SHIP (LCS) PROGRAM.

    Section 124 of the National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3157) is 
amended by striking subsections (a), (b), (c), and (d) and 
inserting the following:
    ``(a) Limitation of Costs.--
            ``(1) In general.--The total amount obligated or 
        expended for the procurement costs of post-2007 LCS 
        vessels shall not exceed $460,000,000 per vessel.
            ``(2) Procurement costs.--For purposes of this 
        section, procurement costs shall include all costs for 
        plans, basic construction, change orders, electronics, 
        ordnance, contractor support, and other costs 
        associated with completion of production drawings, ship 
        construction, test, and delivery, including work 
        performed post-delivery that is required to meet 
        original contract requirements.
            ``(3) Post-2007 lcs vessels.--For purposes of this 
        section, the term `post-2007 LCS vessel' means a vessel 
        in the Littoral Combat Ship (LCS) class of vessels, the 
        procurement of which is funded from amounts 
        appropriated pursuant to an authorization of 
        appropriations or otherwise made available for fiscal 
        year 2008 or any fiscal year thereafter.
    ``(b) Contract Type.--The Secretary of the Navy shall 
employ a fixed-price type contract for construction of post-
2007 LCS vessels.
    ``(c) Limitation of Government Liability.--The Secretary of 
the Navy shall not enter into a contract, or modify a contract, 
for construction or final delivery of post-2007 LCS vessels if 
the limitation of the Government's cost liability, when added 
to the sum of other budgeted procurement costs, would exceed 
$460,000,000 per vessel.
    ``(d) Adjustment of Limitation Amount.--The Secretary of 
the Navy may adjust the amount set forth in subsections (a)(1) 
and (c) for vessels referred to in such subsections by the 
following:
            ``(1) The amounts of increases or decreases in 
        costs attributable to compliance with changes in 
        Federal, State, or local laws enacted after September 
        30, 2007.
            ``(2) The amounts of outfitting costs and costs 
        required to complete post-delivery test and trials.''.

                     Subtitle D--Air Force Programs

SEC. 131. LIMITATION ON JOINT CARGO AIRCRAFT.

    No funds appropriated pursuant to an authorization of 
appropriations or otherwise made available for procurement, or 
for research, development, test, and evaluation, may be 
obligated or expended for the Joint Cargo Aircraft until 30 
days after the Secretary of Defense submits to the 
congressional defense committees each of the following:
            (1) The Air Force Air Mobility Command's Airlift 
        Mobility Roadmap.
            (2) The Department of Defense Intra-Theater Airlift 
        Capabilities Study.
            (3) The Department of Defense Joint Intra-Theater 
        Distribution Assessment.
            (4) The Joint Cargo Aircraft Functional Area Series 
        Analysis.
            (5) The Joint Cargo Aircraft Analysis of 
        Alternatives.
            (6) The Joint Intra-theater Airlift Fleet Mix 
        Analysis.
            (7) The Secretary's certification that--
                    (A) there is, within the Department of the 
                Army, Department of the Air Force, Army 
                National Guard, or Air National Guard, a 
                capability gap or shortfall with respect to 
                intra-theater airlift; and
                    (B) validated requirements exist to fill 
                that gap or shortfall through procurement of 
                the Joint Cargo Aircraft.

SEC. 132. CLARIFICATION OF LIMITATION ON RETIREMENT OF U-2 AIRCRAFT.

    Section 133(b) of the John Warner National Defense 
Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 
Stat. 2112) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``After fiscal year 2007'' 
                and inserting ``For each fiscal year after 
                fiscal year 2007''; and
                    (B) by inserting after ``Secretary of 
                Defense'' the following: ``, in that fiscal 
                year,''; and
            (2) in paragraph (2)--
                    (A) by inserting after ``Department of 
                Defense'' the following: ``in a fiscal year''; 
                and
                    (B) by inserting after ``Congress'' the 
                following: ``in that fiscal year''.

SEC. 133. REPEAL OF REQUIREMENT TO MAINTAIN RETIRED C-130E TACTICAL 
                    AIRCRAFT.

    (a) In General.--Effective as of the date specified in 
subsection (b), section 137(b) of the John Warner National 
Defense Authorization Act for Fiscal Year 2007 (Public Law 109-
364; 120 Stat. 2114) is repealed.
    (b) Specified Date.--The date specified in this subsection 
is the date that is 30 days after the date on which the 
Secretary of the Air Force submits to the congressional defense 
committees the Fleet Mix Analysis Study.

SEC. 134. LIMITATION ON RETIREMENT OF C-130E/H TACTICAL AIRLIFT 
                    AIRCRAFT.

    (a) General Prohibition.--The Secretary of the Air Force 
may not retire C-130E/H tactical airlift aircraft during fiscal 
year 2008, except as provided in subsection (b).
    (b) Contingent Authority to Retire Certain C-130E 
Aircraft.--Effective as of the date specified in subsection 
(d), subsection (a) shall not apply to C-130E tactical airlift 
aircraft, and the number of such aircraft retired by the 
Secretary of the Air Force during fiscal year 2008 may not 
exceed 24.
    (c) Treatment of Retired Aircraft.--The Secretary of the 
Air Force shall maintain each C-130E tactical airlift aircraft 
that is retired during fiscal year 2008 in a condition that 
would allow recall of that aircraft to future service.
    (d) Specified Date.--The date specified in this subsection 
is the date that is 30 days after the date on which the 
Secretary of the Air Force submits to the congressional defense 
committees the Fleet Mix Analysis Study.

SEC. 135. LIMITATION ON RETIREMENT OF KC-135E AERIAL REFUELING 
                    AIRCRAFT.

    (a) Limitation on Retirement of More Than 48 Aircraft.--The 
Secretary of the Air Force may not retire more than 48 KC-135E 
aerial refueling aircraft of the Air Force during fiscal year 
2008, except as provided in subsection (b).
    (b) Contingent Authority to Retire 37 Additional 
Aircraft.--Effective as of the date specified in subsection 
(c), the number of such aircraft retired by the Secretary of 
the Air Force during fiscal year 2008 may not exceed 85.
    (c) Specified Date.--The date specified in this subsection 
is the date that is 15 days after the date on which the 
Secretary of the Air Force submits to the congressional defense 
committees the Secretary's certification that--
            (1) the system design and development contract for 
        the KC-X program has been awarded; and
            (2) if a protest is submitted pursuant to 
        subchapter 5 of title 31, United States Code--
                    (A) the protest has been resolved in favor 
                of the Federal agency; or
                    (B) the Secretary has authorized 
                performance of the contract (notwithstanding 
                the protest).

SEC. 136. TRANSFER TO GOVERNMENT OF IRAQ OF THREE C-130E TACTICAL 
                    AIRLIFT AIRCRAFT.

    The Secretary of the Air Force may transfer not more than 
three C-130E tactical airlift aircraft, allowed to be retired 
under the John Warner National Defense Authorization Act for 
Fiscal Year 2007 (Public Law 109-364), to the Government of 
Iraq.

SEC. 137. MODIFICATION OF LIMITATIONS ON RETIREMENT OF B-52 BOMBER 
                    AIRCRAFT.

    (a) Maintenance of Primary, Backup, and Attrition Reserve 
Inventory of Aircraft.--Subsection (a) of section 131 of the 
John Warner National Defense Authorization Act for Fiscal Year 
2007 (Public Law 109-364; 120 Stat. 2111) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking 
                ``and'' at the end;
                    (B) in subparagraph (B), by striking the 
                period at the end and inserting a semicolon; 
                and
                    (C) by adding at the end the following:
                    ``(C) shall maintain in a common capability 
                configuration a primary aircraft inventory of 
                not less than 63 such aircraft, a backup 
                aircraft inventory of not less than 11 such 
                aircraft, and an attrition reserve aircraft 
                inventory of not less than 2 such aircraft; and
                    ``(D) shall not keep any such aircraft 
                referred to in subparagraph (C) in a status 
                considered excess to the requirements of the 
                possessing command and awaiting disposition 
                instructions.''; and
            (2) by adding at the end the following:
            ``(3) Definitions.--For purposes of paragraph (1):
                    ``(A) The term `primary aircraft inventory' 
                means aircraft assigned to meet the primary 
                aircraft authorization to--
                            ``(i) a unit for the performance of 
                        its wartime mission;
                            ``(ii) a training unit primarily 
                        for technical and specialized training 
                        for crew personnel or leading to 
                        aircrew qualification;
                            ``(iii) a test unit for testing of 
                        the aircraft or its components for 
                        purposes of research, development, test 
                        and evaluation, operational test and 
                        evaluation, or to support testing 
                        programs; or
                            ``(iv) meet requirements for 
                        special missions not elsewhere 
                        classified.
                    ``(B) The term `backup aircraft inventory' 
                means aircraft above the primary aircraft 
                inventory to permit scheduled and unscheduled 
                depot level maintenance, modifications, 
                inspections, and repairs, and certain other 
                mitigating circumstances without reduction of 
                aircraft available for the assigned mission.
                    ``(C) The term `attrition reserve aircraft 
                inventory' means aircraft required to replace 
                anticipated losses of primary aircraft 
                inventory due to peacetime accidents or wartime 
                attrition.
            ``(4) Treatment of retired aircraft.--Of the 
        aircraft retired in accordance with paragraph (1)(A), 
        the Secretary of the Air Force may use not more than 2 
        such aircraft for maintenance ground training.''.
    (b) Notice of Retirement.--Subsection (b)(1) of such 
section is amended by striking ``45 days'' and inserting ``60 
days''.

         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. Operational test and evaluation of Future Combat Systems 
          network.
Sec. 212. Limitation on use of funds for systems development and 
          demonstration of Joint Light Tactical Vehicle program.
Sec. 213. Requirement to obligate and expend funds for development and 
          procurement of a competitive propulsion system for the Joint 
          Strike Fighter.
Sec. 214. Limitation on use of funds for defense-wide manufacturing 
          science and technology program.
Sec. 215. Advanced Sensor Applications Program.
Sec. 216. Active protection systems.

                  Subtitle C--Ballistic Missile Defense

Sec. 221. Participation of Director, Operational Test and Evaluation, in 
          missile defense test and evaluation activities.
Sec. 222. Study on future roles and missions of the Missile Defense 
          Agency.
Sec. 223. Budget and acquisition requirements for Missile Defense Agency 
          activities.
Sec. 224. Limitation on use of funds for replacing warhead on SM-3 Block 
          IIA missile.
Sec. 225. Extension of Comptroller General assessments of ballistic 
          missile defense programs.
Sec. 226. Limitation on availability of funds for procurement, 
          construction, and deployment of missile defenses in Europe.
Sec. 227. Sense of Congress on missile defense cooperation with Israel.
Sec. 228. Limitation on availability of funds for deployment of missile 
          defense interceptors in Alaska.
Sec. 229. Policy of the United States on protection of the United States 
          and its allies against Iranian ballistic missiles.

                        Subtitle D--Other Matters

Sec. 231. Coordination of human systems integration activities related 
          to acquisition programs.
Sec. 232. Expansion of authority for provision of laboratory facilities, 
          services, and equipment.
Sec. 233. Modification of cost sharing requirement for Technology 
          Transition Initiative.
Sec. 234. Report on implementation of Manufacturing Technology Program.
Sec. 235. Assessment of sufficiency of test and evaluation personnel.
Sec. 236. Repeal of requirement for separate reports on technology area 
          review and assessment summaries.
Sec. 237. Modification of notice and wait requirement for obligation of 
          funds for foreign comparative test program.
Sec. 238. Strategic Plan for the Manufacturing Technology Program.
Sec. 239. Modification of authorities on coordination of Defense 
          Experimental Program to Stimulate Competitive Research with 
          similar Federal programs.
Sec. 240. Enhancement of defense nanotechnology research and development 
          program.
Sec. 241. Federally funded research and development center assessment of 
          the Defense Experimental Program to Stimulate Competitive 
          Research.
Sec. 242. Cost-benefit analysis of proposed funding reduction for High 
          Energy Laser Systems Test Facility.
Sec. 243. Prompt global strike.

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal 
year 2008 for the use of the Department of Defense for 
research, development, test, and evaluation as follows:
            (1) For the Army, $10,840,392,000.
            (2) For the Navy, $16,980,732,000.
            (3) For the Air Force, $25,692,521,000.
            (4) For Defense-wide activities, $20,213,900,000, 
        of which $180,264,000 is authorized for the Director of 
        Operational Test and Evaluation.

SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

    (a) Fiscal Year 2008.--Of the amounts authorized to be 
appropriated by section 201, $10,913,944,000 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. OPERATIONAL TEST AND EVALUATION OF FUTURE COMBAT SYSTEMS 
                    NETWORK.

    (a) Operational Test and Evaluation Required.--The 
Secretary of the Army, in cooperation with the Director, 
Operational Test and Evaluation, shall complete an operational 
test and evaluation (as defined in section 139(a)(2)(A) of 
title 10, United States Code), of the FCS network in a 
realistic environment simulating operational conditions. The 
operational test and evaluation shall--
            (1) be conducted in accordance with a Future Combat 
        Systems Test and Evaluation Master Plan approved by the 
        Director, Operational Test and Evaluation;
            (2) be conducted using prototype equipment, 
        sensors, and software for the FCS network;
            (3) be conducted in a manner that simulates a full 
        Future Combat Systems brigade;
            (4) be conducted, to the maximum extent possible, 
        using actual communications equipment instead of 
        computer simulations;
            (5) be conducted in a realistic operational 
        electronic warfare environment, including enemy 
        electronic warfare and network attacks; and
            (6) include, to the maximum extent possible, all 
        sensor information feeds the FCS network is designed to 
        incorporate.
    (b) FCS Network Defined.--In this section, the term ``FCS 
network'' includes all sensors, information systems, computers, 
and communications systems necessary to support Future Combat 
Systems brigade operations.
    (c) Report.--Not later than 120 days after completing the 
operational test and evaluation required by subsection (a), the 
Director, Operational Test and Evaluation shall submit to the 
congressional defense committees a report on the outcome of the 
operational test and evaluation. The report shall include, at a 
minimum--
            (1) an evaluation of the overall operational 
        effectiveness of the FCS network, including--
                    (A) an evaluation of the FCS network's 
                capability to transmit the volume and classes 
                of data required by Future Combat Systems 
                approved requirements; and
                    (B) an evaluation of the FCS network's 
                performance in a degraded condition due to 
                enemy network attack, sophisticated enemy 
                electronic warfare, adverse weather conditions, 
                and terrain variability;
            (2) an evaluation of the FCS network's ability to 
        improve friendly force knowledge of the location and 
        capability of enemy forces and combat systems; and
            (3) an evaluation of the overall operational 
        suitability of the FCS network.
    (d) Limitation Pending Submission of Report.--
            (1) In general.--No funds, with the exception of 
        funds for advanced procurement, appropriated pursuant 
        to an authorization of appropriations or otherwise made 
        available to the Department of the Army for any fiscal 
        year may be obligated for low-rate initial production 
        or full-rate production of Future Combat Systems manned 
        ground vehicles until 60 days after the date on which 
        the report is submitted under subsection (c).
            (2) Waiver authority.--The Secretary of Defense may 
        waive the limitation in paragraph (1) if the Secretary 
        determines that such a waiver is critical for national 
        security. Such a waiver shall not become effective 
        until 45 days after the date on which the Secretary 
        submits to the congressional defense committees a 
        written notice of the waiver.
            (3) Inapplicability to the non line of sight cannon 
        vehicle.--The limitation in paragraph (1) does not 
        apply to the Non Line of Sight Cannon vehicle.

SEC. 212. LIMITATION ON USE OF FUNDS FOR SYSTEMS DEVELOPMENT AND 
                    DEMONSTRATION OF JOINT LIGHT TACTICAL VEHICLE 
                    PROGRAM.

    Of the amounts appropriated pursuant to an authorization of 
appropriations or otherwise made available for the Joint Light 
Tactical Vehicle program for the acquisition program phase of 
systems development and demonstration for fiscal year 2008 or 
any fiscal year thereafter, no more than 50 percent of those 
amounts may be obligated or expended until after--
            (1) the Under Secretary of Defense for Acquisition, 
        Technology, and Logistics, or the appropriate milestone 
        decision authority, makes the certification required by 
        section 2366a of title 10, United States Code, with 
        respect to the Joint Light Tactical Vehicle program; 
        and
            (2) the certification has been received by the 
        congressional defense committees.

SEC. 213. REQUIREMENT TO OBLIGATE AND EXPEND FUNDS FOR DEVELOPMENT AND 
                    PROCUREMENT OF A COMPETITIVE PROPULSION SYSTEM FOR 
                    THE JOINT STRIKE FIGHTER.

    Of the funds appropriated pursuant to an authorization of 
appropriations or otherwise made available for fiscal year 2008 
or any year thereafter, for research, development, test, and 
evaluation and procurement for the Joint Strike Fighter 
program, the Secretary of Defense shall ensure the obligation 
and expenditure in each such fiscal year of sufficient annual 
amounts for the continued development and procurement of two 
options for the propulsion system for the Joint Strike Fighter 
in order to ensure the development and competitive production 
for the propulsion system for the Joint Strike Fighter.

SEC. 214. LIMITATION ON USE OF FUNDS FOR 
                    DEFENSE-WIDE MANUFACTURING SCIENCE AND TECHNOLOGY 
                    PROGRAM.

    No funds available to the Office of the Secretary of 
Defense for any fiscal year may be obligated or expended for 
the defense-wide manufacturing science and technology program 
unless the Director, Defense Research and Engineering, ensures 
each of the following:
            (1) A component of the Department of Defense has 
        requested and evaluated--
                    (A) competitive proposals, for each project 
                under the program that is not a project covered 
                by subparagraph (B); and
                    (B) proposals from as many sources as is 
                practicable under the circumstances, for a 
                project under the program if the disclosure of 
                the needs of the Department of Defense with 
                respect to that project would compromise the 
                national security.
            (2) Each project under the program is carried out--
                    (A) in accordance with the statutory 
                requirements of the Manufacturing Technology 
                Program established by section 2521 of title 
                10, United States Code; and
                    (B) in compliance with all requirements of 
                any directive that applies to manufacturing 
                technology.
            (3) An implementation plan has been developed.

SEC. 215. ADVANCED SENSOR APPLICATIONS PROGRAM.

    (a) Transfer of Funds.--(1) Of the amount authorized to be 
appropriated by section 201(3) for research, development, test, 
and evaluation, Air Force activities, and made available for 
the activities of the Intelligence Systems Support Office, an 
aggregate of $13,000,000 shall be transferred to the Advanced 
Sensor Applications Program not later than 60 days after the 
date of the enactment of this Act.
    (2) Of the amount authorized to be appropriated by section 
301(2) for operation and maintenance, Navy activities, and made 
available for the activities of the Office of Naval 
Intelligence, an aggregate of $5,000,000 shall be transferred 
to the Advanced Sensor Applications Program not later than 60 
days after the date of the enactment of this Act.
    (b) Assignment of Program.--Management of the program shall 
reside within the office of the Under Secretary of Defense for 
Intelligence until certain conditions specified in the 
classified annex to the statement of managers accompanying this 
Act are met. The program shall be executed by the Commander, 
Naval Air Systems Command in consultation with the Program 
Executive Officer for Aviation for the Navy.

SEC. 216. ACTIVE PROTECTION SYSTEMS.

    (a) Live-Fire Tests Required.--
            (1) In general.--The Secretary of Defense shall 
        undertake live-fire tests, of appropriate foreign and 
        domestic active protection systems with size, weight, 
        and power characteristics suitable for protecting 
        wheeled tactical vehicles, especially light wheeled 
        tactical vehicles, in order--
                    (A) to determine the effectiveness of such 
                systems for protecting wheeled tactical 
                vehicles; and
                    (B) to develop information useful in the 
                consideration of the adoption of such systems 
                in defense acquisition programs.
            (2) Reports.--Not later than March 1 of each of 
        2008 and 2009, the Secretary shall submit to the 
        congressional defense committees a report on the 
        results of the tests undertaken under paragraph (1) as 
        of the date of such report.
            (3) Funding.--The live-fire tests required by 
        paragraph (1) shall be conducted using funds authorized 
        and appropriated for the Joint Improvised Explosive 
        Device Defeat Fund.
    (b) Comprehensive Assessment Required.--
            (1) In general.--The Secretary shall undertake a 
        comprehensive assessment of active protection systems 
        in order to develop information useful in the 
        development of joint active protection systems and 
        other defense programs.
            (2) Elements.--The assessment under paragraph (1) 
        shall include--
                    (A) an identification of the potential 
                merits and operational costs of the use of 
                active protection systems by United States 
                military forces;
                    (B) a characterization of the threats that 
                use of active protection systems by potential 
                adversaries would pose to United States 
                military forces and weapons;
                    (C) an identification and assessment of 
                countermeasures to active protection systems;
                    (D) an analysis of collateral damage 
                potential of active protection systems;
                    (E) an identification and assessment of 
                emerging direct-fire and top-attack threats to 
                defense systems that could potentially deploy 
                active protection systems; and
                    (F) an identification and assessment of 
                critical technology elements of active 
                protection systems.
            (3) Report.--Not later than December 31, 2008, the 
        Secretary shall submit to the congressional defense 
        committees a report on the assessment under paragraph 
        (1).

                 Subtitle C--Ballistic Missile Defense

SEC. 221. PARTICIPATION OF DIRECTOR, OPERATIONAL TEST AND EVALUATION, 
                    IN MISSILE DEFENSE TEST AND EVALUATION ACTIVITIES.

    Section 139 of title 10, United States Code, is amended--
            (1) by redesignating subsections (f) through (j) as 
        subsections (g) through (k), respectively; and
            (2) by inserting after subsection (e) the following 
        new subsection (f):
    ``(f)(1) The Director of the Missile Defense Agency shall 
make available to the Director of Operational Test and 
Evaluation the results of all tests and evaluations conducted 
by the Missile Defense Agency and of all studies conducted by 
the Missile Defense Agency in connection with tests and 
evaluations in the Missile Defense Agency.
    ``(2) The Director of Operational Test and Evaluation may 
require that such observers as the Director designates be 
present during the preparation for and the conduct of any test 
and evaluation conducted by the Missile Defense Agency.
    ``(3) The Director of Operational Test and Evaluation shall 
have access to all records and data in the Department of 
Defense (including the records and data of the Missile Defense 
Agency) that the Director considers necessary to review in 
order to carry out his duties under this subsection.''.

SEC. 222. STUDY ON FUTURE ROLES AND MISSIONS OF THE MISSILE DEFENSE 
                    AGENCY.

    (a) In General.--The Secretary of Defense shall enter into 
an agreement with one of the Federally Funded Research and 
Development Centers under which the Center shall carry out an 
independent study to examine, and make recommendations with 
respect to, the long-term structure, roles, and missions of the 
Missile Defense Agency.
    (b) Matters Included.--
            (1) Review.--The study shall include a full review 
        of the structure, roles, and missions of the Missile 
        Defense Agency.
            (2) Assessments.--The study shall include an 
        examination and assessment of the current and future--
                    (A) structure, roles, and missions of the 
                Missile Defense Agency;
                    (B) relationship of the Missile Defense 
                Agency with--
                            (i) the Office of the Under 
                        Secretary of Defense for Acquisition, 
                        Technology, and Logistics;
                            (ii) the Office of the Under 
                        Secretary of Defense for Policy;
                            (iii) the Director of Operational 
                        Test and Evaluation;
                            (iv) the Commander of the United 
                        States Strategic Command and other 
                        combatant commanders;
                            (v) the Joint Requirements 
                        Oversight Council; and
                            (vi) the military departments;
                    (C) operations and sustainment of missile 
                defenses;
                    (D) acquisition process for missile 
                defense;
                    (E) requirements process for missile 
                defense; and
                    (F) transition and transfer of missile 
                defense capabilities to the military 
                departments.
            (3) Recommendations.--The study shall include 
        recommendations as to how the Missile Defense Agency 
        can be made more effective to support the needs of the 
        warfighter, especially with regard to near-term missile 
        defense capabilities. The study shall also examine the 
        full range of options for the future of the Missile 
        Defense Agency and shall include, but not be limited 
        to, specific recommendations as to whether--
                    (A) the Missile Defense Agency should be 
                maintained in its current configuration;
                    (B) the scope and nature of the Missile 
                Defense Agency should be changed from an 
                organization focused on research and 
                development to an organization focused on 
                combat support;
                    (C) any functions and responsibilities 
                should be added to the Missile Defense Agency, 
                in part or in whole, from other entities such 
                as the United States Strategic Command and the 
                military departments; and
                    (D) any functions and responsibilities of 
                the Missile Defense Agency should be 
                transferred, in part or in whole, to other 
                entities such as the United States Strategic 
                Command and the military departments.
    (c) Cooperation From Government.--In carrying out the 
study, the Federally Funded Research and Development Center 
shall receive the full and timely cooperation of the Secretary 
of Defense and any other United States Government official in 
providing the Center with analyses, briefings, and other 
information necessary for the fulfillment of its 
responsibilities.
    (d) Report.--Not later than September 1, 2008, the 
Federally Funded Research and Development Center 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 its findings, conclusions, and recommendations.
    (e) Funding.--Funds for the study shall be provided from 
amounts appropriated for the Department of Defense.

SEC. 223. BUDGET AND ACQUISITION REQUIREMENTS FOR MISSILE DEFENSE 
                    AGENCY ACTIVITIES.

    (a) Revised Budget Structure.--The budget justification 
materials submitted to Congress in support of the Department of 
Defense budget for any fiscal year after fiscal year 2009 (as 
submitted with the budget of the President under section 
1105(a) of title 31, United States Code) shall set forth 
separately amounts requested for the Missile Defense Agency for 
each of the following:
            (1) Research, development, test, and evaluation.
            (2) Procurement.
            (3) Operation and maintenance.
            (4) Military construction.
    (b) Revised Budget Structure for Fiscal Year 2009.--The 
budget justification materials submitted to Congress in support 
of the Department of Defense budget for fiscal year 2009 (as 
submitted with the budget of the President under section 
1105(a) of title 31, United States Code) shall--
            (1) identify all known and estimated operation and 
        support costs; and
            (2) set forth separately amounts requested for the 
        Missile Defense Agency for each of the following:
                    (A) Research, development, test, and 
                evaluation.
                    (B) Procurement or advance procurement of 
                long lead items, including for Terminal High 
                Altitude Area Defense firing units 3 and 4, and 
                for Standard Missile-3 Block 1A interceptors.
                    (C) Military construction.
    (c) Availability of RDT&E; Funds for Fiscal Year 2009.--Upon 
approval by the Secretary of Defense, and consistent with the 
plan submitted under subsection (f), funds appropriated 
pursuant to an authorization of appropriations or otherwise 
made available for fiscal year 2009 for research, development, 
test, and evaluation for the Missile Defense Agency--
            (1) may be used for the fielding of ballistic 
        missile defense capabilities approved previously by 
        Congress; and
            (2) may not be used for--
                    (A) military construction activities; or
                    (B) procurement or advance procurement of 
                long lead items, including for Terminal High 
                Altitude Area Defense firing units 3 and 4, and 
                for Standard Missile-3 Block 1A interceptors.
    (d) Full Funding Requirement Not Applicable to Use of 
Procurement Funds for Fiscal Years 2009 and 2010.--In any case 
in which funds appropriated pursuant to an authorization of 
appropriations or otherwise made available for procurement for 
the Missile Defense Agency for fiscal years 2009 and 2010 are 
used for the fielding of ballistic missile defense 
capabilities, the funds may be used for the fielding of those 
capabilities on an ``incremental'' basis, notwithstanding any 
law or policy of the Department of Defense that would otherwise 
require a ``full funding'' basis.
    (e) Relationship to Other Law.--Nothing in this provision 
shall be construed to alter or otherwise affect in any way the 
applicability of the requirements and other provisions of 
section 234(a) through (d) of the Ronald W. Reagan National 
Defense Authorization Act for Fiscal Year 2005 (Public Law 108-
375; 118 Stat. 1837; 10 U.S.C. 2431 note).
    (f) Plan Required.--Not later than March 1, 2008, the 
Director of the Missile Defense Agency 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 
transitioning the Missile Defense Agency from using exclusively 
research, development, test, and evaluation funds to using 
procurement, military construction, operations and maintenance, 
and research, development, test, and evaluation funds for the 
appropriate budget activities, and for transitioning from 
incremental funding to full funding for fiscal years after 
fiscal year 2010.
    (g) Objectives for Acquisition Activities.--
            (1) In general.--Commencing as soon as practicable, 
        but not later than the submittal to Congress of the 
        budget for the President for fiscal year 2009 under 
        section 1105(a) of title 31, United States Code, the 
        Missile Defense Agency shall take appropriate actions 
        to achieve the following objectives in its acquisition 
        activities:
                    (A) Improved transparency.
                    (B) Improved accountability.
                    (C) Enhanced oversight.
            (2) Required actions.--In order to achieve the 
        objectives specified in paragraph (1), the Missile 
        Defense Agency shall, at a minimum, take actions as 
        follows:
                    (A) Establish acquisition cost, schedule, 
                and performance baselines for each ballistic 
                missile defense system element that--
                            (i) has entered the equivalent of 
                        the systems development and 
                        demonstration phase of acquisition; or
                            (ii) is being produced and acquired 
                        for operational fielding.
                    (B) Provide unit cost reporting data for 
                each ballistic missile defense system element 
                covered by subparagraph (A), and secure 
                independent estimation and verification of such 
                cost reporting data.
                    (C) Include, in the budget justification 
                materials described in subsection (a), a 
                description of actions being taken in the 
                fiscal year in which such materials are 
                submitted, and the actions to be taken in the 
                fiscal year covered by such materials, to 
                achieve such objectives.
            (3) Specification of ballistic missile defense 
        system elements.--The ballistic missile defense system 
        elements that, as of October 2007, are ballistic 
        missile defense system elements covered by paragraph 
        (2)(A) are the following elements:
                    (A) Ground-based Midcourse Defense.
                    (B) Aegis Ballistic Missile Defense.
                    (C) Terminal High Altitude Area Defense.
                    (D) Forward-Based X-band radar-
                Transportable (AN/TPY-2).
                    (E) Command, Control, Battle Management, 
                and Communications.
                    (F) Sea-Based X-band radar.
                    (G) Upgraded Early Warning radars.

SEC. 224. LIMITATION ON USE OF FUNDS FOR REPLACING WARHEAD ON SM-3 
                    BLOCK IIA MISSILE.

    None of the funds appropriated or otherwise made available 
pursuant to an authorization of appropriations in this Act may 
be obligated or expended to replace the unitary warhead on the 
SM-3 Block IIA missile with the Multiple Kill Vehicle until 
after the Secretary of Defense certifies to Congress that--
            (1) the United States and Japan have reached an 
        agreement to replace the unitary warhead on the SM-3 
        Block IIA missile; and
            (2) replacing the unitary warhead on the SM-3 Block 
        IIA missile with the Multiple Kill Vehicle will not 
        delay the expected deployment date of 2014-2015 for 
        that missile.

SEC. 225. 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 2008'' 
        and inserting ``through 2013''; and
            (2) in paragraph (2), by striking ``through 2009'' 
        and inserting ``through 2014''.

SEC. 226. LIMITATION ON AVAILABILITY OF FUNDS FOR PROCUREMENT, 
                    CONSTRUCTION, AND DEPLOYMENT OF MISSILE DEFENSES IN 
                    EUROPE.

    (a) General Limitation.--No funds authorized to be 
appropriated by this Act may be obligated or expended for 
procurement, site activation, construction, preparation of 
equipment for, or deployment of a long-range missile defense 
system in Europe until the following conditions have been met:
            (1) The governments of the countries in which major 
        components of such missile defense system (including 
        interceptors and associated radars) are proposed to be 
        deployed have each given final approval to any missile 
        defense agreements negotiated between such governments 
        and the United States Government concerning the 
        proposed deployment of such components in their 
        countries.
            (2) 45 days have elapsed following the receipt by 
        Congress of the report required under subsection 
        (c)(6).
    (b) Additional Limitation.--In addition to the limitation 
in subsection (a), no funds authorized to be appropriated by 
this Act may be obligated or expended for the acquisition or 
deployment of operational missiles of a long-range missile 
defense system in Europe until the Secretary of Defense, after 
receiving the views of the Director of Operational Test and 
Evaluation, submits to Congress a report certifying that the 
proposed interceptor to be deployed as part of such missile 
defense system has demonstrated, through successful, 
operationally realistic flight testing, a high probability of 
working in an operationally effective manner.
    (c) Report on Independent Assessment for Ballistic Missile 
Defense in Europe.--
            (1) Independent assessment.--Not later than 30 days 
        after the date of the enactment of this Act, the 
        Secretary of Defense shall select a federally funded 
        research and development center to conduct an 
        independent assessment of options for ballistic missile 
        defense for forward deployed forces of the United 
        States and its allies in Europe and for the United 
        States homeland.
            (2) Analysis of administration proposal.--The study 
        shall provide a full analysis of the Administration's 
        proposal to protect forward-deployed forces of the 
        United States and its allies in Europe, forward-
        deployed radars in Europe, and the United States by 
        deploying, in Europe, interceptors and radars of the 
        Ground-Based Midcourse Defense (GMD) system. In 
        providing the analysis, the study shall examine each of 
        the following matters:
                    (A) The threat to Europe and the United 
                States of ballistic missiles (including short-
                range, medium-range, intermediate-range, and 
                long-range ballistic missiles) from Iran, 
                including the likelihood and timing of such 
                threats.
                    (B) The technical capabilities of the 
                system, as so deployed, to effectively protect 
                forward-deployed forces of the United States 
                and its allies in Europe, forward-deployed 
                radars in Europe, and the United States against 
                the threat specified in subparagraph (A).
                    (C) The degree of coverage of the European 
                territory of members of the North Atlantic 
                Treaty Organization.
                    (D) The political implications of such a 
                deployment on the United States, the North 
                Atlantic Treaty Organization, and other 
                interested parties.
                    (E) Integration and interoperability with 
                North Atlantic Treaty Organization missile 
                defenses.
                    (F) The operational issues associated with 
                such a deployment, including operational 
                effectiveness.
                    (G) The force structure implications of 
                such a deployment, including a comparative 
                analysis of alternative deployment options.
                    (H) The budgetary implications of such a 
                deployment, including possible allied cost 
                sharing, and the cost-effectiveness of such a 
                deployment.
                    (I) Command and control arrangements, 
                including any command and control roles for the 
                United States European Command and the North 
                Atlantic Treaty Organization.
                    (J) Potential opportunities for 
                participation by the Government of Russia.
            (3) Analysis of alternatives.--The study shall also 
        provide a full analysis of alternative systems that 
        could be deployed to fulfill, in whole or in part, the 
        protective purposes of the Administration's proposal. 
        The alternative systems shall include a range of 
        feasible combinations of other missile defense systems 
        that are available or are expected to be available as 
        of 2015 and 2020. These should include, but not be 
        limited to, the following:
                    (A) The Patriot PAC-3 system.
                    (B) The Medium Extended Air Defense System.
                    (C) The Aegis Ballistic Missile Defense 
                system, with all variants of the Standard 
                Missile-3 interceptor.
                    (D) The Terminal High Altitude Area Defense 
                (THAAD) system.
                    (E) Forward-Based X-band Transportable 
                (FBX-T) radars.
                    (F) The Kinetic Energy Interceptor (KEI).
                    (G) Other non-United States, North Atlantic 
                Treaty Organization missile defense systems or 
                components.
            (4) Matters examined.--In providing the analysis, 
        the study shall examine, for each alternative system 
        included, each of the matters specified in paragraph 
        (2).
            (5) Cooperation of other agencies.--The Secretary 
        of Defense shall provide the federally funded research 
        and development center selected under paragraph (1) 
        data, analyses, briefings, and other information as the 
        center considers necessary to carry out the assessment 
        described in that paragraph. Furthermore, the Director 
        of National Intelligence and the heads of other 
        departments and agencies of the United States 
        Government shall also provide the center the 
        appropriate data, analyses, briefings, and other 
        information necessary for the purpose of carrying out 
        the assessment described in that paragraph.
            (6) Report.--Not later than 180 days after the date 
        of the enactment of this Act, the federally funded 
        research and development center shall submit to the 
        congressional defense committees and the Secretary of 
        Defense a report on the results of the study. The 
        report shall be in unclassified form, but may include a 
        classified annex.
            (7) Funding.--Of the amounts appropriated or 
        otherwise made available pursuant to the authorization 
        of appropriations in section 201(4), $1,000,000 is 
        available to carry out the study required by this 
        subsection.
    (d) Construction.--Nothing in this section shall be 
construed to limit continuing obligation and expenditure of 
funds for missile defense, including for research and 
development and for other activities not otherwise limited by 
subsection (a) or (b), including, but not limited to, site 
surveys, studies, analysis, and planning and design for the 
proposed missile defense deployment in Europe.

SEC. 227. SENSE OF CONGRESS ON MISSILE DEFENSE COOPERATION WITH ISRAEL.

    (a) Sense of Congress.--It is the sense of Congress that 
the United States should have an active program of ballistic 
missile defense cooperation with Israel, and should take steps 
to improve the coordination, interoperability, and integration 
of United States and Israeli missile defense capabilities, and 
to enhance the capability of both nations to defend against 
ballistic missile threats present in the Middle East region.
    (b) Report.--
            (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 congressional defense 
        committees a report on the status of missile defense 
        cooperation between the United States and Israel.
            (2) Content.--The report submitted under this 
        subsection shall include each of the following:
                    (A) A description of the current program of 
                ballistic missile defense cooperation between 
                the United States and Israel, including its 
                objectives and results to date.
                    (B) A description of steps taken within the 
                previous five years to improve the 
                interoperability and coordination of the 
                missile defense capabilities of the United 
                States and Israel.
                    (C) A description of steps planned to be 
                taken by the governments of the United States 
                and Israel in the future to improve the 
                coordination, interoperability, and integration 
                of their missile defense capabilities.
                    (D) A description of joint efforts of the 
                United States and Israel to develop ballistic 
                missile defense technologies.
                    (E) A description of joint missile defense 
                exercises and training that have been conducted 
                by the United States and Israel, and the 
                lessons learned from those exercises.
                    (F) A description of the joint missile 
                defense testing activities of the United States 
                and Israel, past and planned, and the benefits 
                of such joint testing activities.
                    (G) A description of how the United States 
                and Israel share threat assessments regarding 
                the ballistic missile threat.
                    (H) Any other matters that the Secretary 
                considers appropriate.

SEC. 228. LIMITATION ON AVAILABILITY OF FUNDS FOR DEPLOYMENT OF MISSILE 
                    DEFENSE INTERCEPTORS IN ALASKA.

    None of the funds authorized to be appropriated by this Act 
may be obligated or expended to deploy more than 40 Ground-
Based Interceptors at Fort Greely, Alaska, until the Secretary 
of Defense, after receiving the views of the Director of 
Operational Test and Evaluation, submits to Congress a 
certification that the Block 2006 Ground-based Midcourse 
Defense element of the Ballistic Missile Defense System has 
demonstrated, through operationally realistic end-to-end flight 
testing, that it has a high probability of working in an 
operationally effective manner.

SEC. 229. POLICY OF THE UNITED STATES ON PROTECTION OF THE UNITED 
                    STATES AND ITS ALLIES AGAINST IRANIAN BALLISTIC 
                    MISSILES.

    (a) Finding.--Congress finds that Iran maintains a nuclear 
program in continued defiance of the international community 
while developing ballistic missiles of increasing 
sophistication and range that--
            (1) pose a threat to--
                    (A) the forward-deployed forces of the 
                United States;
                    (B) North Atlantic Treaty Organization 
                (NATO) allies in Europe; and
                    (C) other allies and friendly foreign 
                countries in the region; and
            (2) eventually could pose a threat to the United 
        States homeland.
    (b) Policy of the United States.--It is the policy of the 
United States--
            (1) to develop, test, and deploy, as soon as 
        technologically feasible, in conjunction with allies 
        and friendly foreign countries whenever possible, an 
        effective defense against the threat from Iran 
        described in subsection (a) that will provide 
        protection--
                    (A) for the forward-deployed forces of the 
                United States, NATO allies, and other allies 
                and friendly foreign countries in the region; 
                and
                    (B) for the United States homeland;
            (2) to encourage the NATO alliance to accelerate 
        its efforts to--
                    (A) protect NATO territory in Europe 
                against the existing threat of Iranian short- 
                and medium-range ballistic missiles; and
                    (B) facilitate the ability of NATO allies 
                to acquire the missile defense systems needed 
                to provide a wide-area defense capability 
                against short- and medium-range ballistic 
                missiles; and
            (3) to proceed with the activities specified in 
        paragraphs (1) and (2) in a manner such that any 
        missile defense systems fielded by the United States in 
        Europe are integrated with or complementary to missile 
        defense systems fielded by NATO in Europe.

                       Subtitle D--Other Matters

SEC. 231. COORDINATION OF HUMAN SYSTEMS INTEGRATION ACTIVITIES RELATED 
                    TO ACQUISITION PROGRAMS.

    (a) In General.--The Secretary of Defense, acting through 
the Under Secretary of Defense for Acquisition, Technology, and 
Logistics, shall coordinate and manage human systems 
integration activities throughout the acquisition programs of 
the Department of Defense.
    (b) Administration.--In carrying out subsection (a), the 
Secretary shall designate a senior official to be responsible 
for the effort.
    (c) Responsibilities.--In carrying out this section, the 
senior official designated in subsection (b) shall--
            (1) coordinate the planning, management, and 
        execution of such activities; and
            (2) identify and recommend, as appropriate, 
        resource requirements for human systems integration 
        activities.
    (d) Designation.--The designation required by subsection 
(b) shall be made not later than 60 days after the date of the 
enactment of this Act.

SEC. 232. EXPANSION OF AUTHORITY FOR PROVISION OF LABORATORY 
                    FACILITIES, SERVICES, AND EQUIPMENT.

    Section 2539b of title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2) by striking ``and'' at 
                the end;
                    (B) in paragraph (3) by striking the period 
                at the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(4) make available to any person or entity, 
        through leases, contracts, or other appropriate 
        arrangements, facilities, services, and equipment of 
        any government laboratory, research center, or range, 
        if the facilities, services, and equipment provided 
        will not be in direct competition with the domestic 
        private sector.'';
            (2) in subsection (c)--
                    (A) by striking ``for services''; and
                    (B) by striking ``subsection (a)(3)'' and 
                inserting ``subsections (a)(3) and (a)(4)''; 
                and
            (3) in subsection (d)--
                    (A) by striking ``for services made 
                available''; and
                    (B) by striking ``subsection (a)(3)'' and 
                inserting ``subsections (a)(3) and (a)(4)''.

SEC. 233. MODIFICATION OF COST SHARING REQUIREMENT FOR TECHNOLOGY 
                    TRANSITION INITIATIVE.

    Paragraph (2) of section 2359a(f) of title 10, United 
States Code, is amended to read as follows:
    ``(2) The amount of funds provided to a project under 
paragraph (1) by the military department or Defense Agency 
concerned shall be the appropriate share of the military 
department or Defense Agency, as the case may be, of the cost 
of the project, as determined by the Manager.''.

SEC. 234. REPORT ON IMPLEMENTATION OF MANUFACTURING TECHNOLOGY PROGRAM.

    (a) Report Required.--Not later than September 1, 2008, 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 implementation of 
the technologies and processes developed under the 
Manufacturing Technology Program required by section 2521 of 
title 10, United States Code.
    (b) Elements.--The report shall identify each technology or 
process implemented and, for each such technology or process, 
shall identify--
            (1) the project of the Manufacturing Technology 
        Program through which the technology or process was 
        developed, the Federal and non-Federal participants in 
        that project, and the duration of the project;
            (2) the organization or program implementing the 
        technology or process, and a description of the 
        implementation;
            (3) the funding required to implement the 
        technology or process, including--
                    (A) funds provided by military departments 
                and Defense Agencies under the Manufacturing 
                Technology Program;
                    (B) funds provided by the Department of 
                Defense, or any element of the Department, to 
                co-develop the technology or process;
                    (C) to the maximum extent practicable, 
                funds provided by the Department of Defense, or 
                any element of the Department, to--
                            (i) mature the technology or 
                        process prior to transition to the 
                        Manufacturing Technology Program; and
                            (ii) provide for the implementation 
                        of the technology or process;
            (4) the total value of industry cost share, if 
        applicable;
            (5) if applicable, the total value of cost 
        avoidance or cost savings directly attributable to the 
        implementation of the technology or process; and
            (6) a description of any system performance 
        enhancements, technology performance enhancements, or 
        improvements in a manufacturing readiness level of a 
        system or a technology.
    (c) Definition.--For purposes of this section, the term 
``implementation'' refers to--
            (1) the use of a technology or process in the 
        manufacture of defense materiel;
            (2) the inclusion of a technology or process in the 
        systems engineering plan for a program of record; or
            (3) the use of a technology or process for the 
        manufacture of commercial items.
    (d) Scope.--The report shall include technologies or 
processes developed with funds appropriated or otherwise made 
available for the Manufacturing Technology programs of the 
military departments and Defense Agencies for fiscal years 2003 
through 2005.

SEC. 235. ASSESSMENT OF SUFFICIENCY OF TEST AND EVALUATION PERSONNEL.

    (a) Assessment Required.--The Director of Operational Test 
and Evaluation shall assess whether the Director's professional 
staff meets the requirement of section 139(j) of title 10, 
United States Code, that the staff be sufficient to carry out 
the Director's duties and responsibilities.
    (b) Inclusion in Report.--The Director shall include the 
results of the assessment in the report, required by section 
139(g) of title 10, United States Code, summarizing the 
operational test and evaluation activities during fiscal year 
2007.

SEC. 236. REPEAL OF REQUIREMENT FOR SEPARATE REPORTS ON TECHNOLOGY AREA 
                    REVIEW AND ASSESSMENT SUMMARIES.

    Subsection (c) of section 253 of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 
Stat. 3179; 10 U.S.C. 2501 note) is repealed.

SEC. 237. MODIFICATION OF NOTICE AND WAIT REQUIREMENT FOR OBLIGATION OF 
                    FUNDS FOR FOREIGN COMPARATIVE TEST PROGRAM.

    Paragraph (3) of section 2350a(g) of title 10, United 
States Code, is amended to read as follows:
    ``(3) The Director of Defense Research and Engineering 
shall notify the congressional defense committees of the intent 
to obligate funds made available to carry out this subsection 
not less than 7 days before such funds are obligated.''.

SEC. 238. STRATEGIC PLAN FOR THE MANUFACTURING TECHNOLOGY PROGRAM.

    (a) In General.--Section 2521 of title 10, United States 
Code, is amended by adding at the end the following new 
subsection:
    ``(e) Five-Year Strategic Plan.--(1) The Secretary shall 
develop a plan for the program that includes the following:
            ``(A) The overall manufacturing technology goals, 
        milestones, priorities, and investment strategy for the 
        program.
            ``(B) The objectives of, and funding for, the 
        program for each military department and each Defense 
        Agency that shall participate in the program during the 
        period of the plan.
    ``(2) The Secretary shall include in the plan mechanisms 
for assessing the effectiveness of the program under the plan.
    ``(3) The Secretary shall update the plan on a biennial 
basis.
    ``(4) Each plan, and each update to the plan, shall cover a 
period of five fiscal years.''.
    (b) Initial Development and Submission of Plan.--
            (1) Development.--The Secretary of Defense shall 
        develop the strategic plan required by subsection (e) 
        of section 2521 of title 10, United States Code (as 
        added by subsection (a) of this section), so that the 
        plan goes into effect at the beginning of fiscal year 
        2009.
            (2) Submission.--Not later than the date on which 
        the budget of the President for fiscal year 2010 is 
        submitted to Congress under section 1105 of title 31, 
        United States Code, the Secretary shall submit to the 
        Committee on Armed Services of the Senate and the 
        Committee on Armed Services of the House of 
        Representatives the plan specified in paragraph (1).

SEC. 239. MODIFICATION OF AUTHORITIES ON COORDINATION OF DEFENSE 
                    EXPERIMENTAL PROGRAM TO STIMULATE COMPETITIVE 
                    RESEARCH WITH SIMILAR FEDERAL PROGRAMS.

    Section 257(e)(2) of the National Defense Authorization Act 
for Fiscal Year 1995 (10 U.S.C. 2358 note) is amended by 
striking ``shall'' each place it appears and inserting ``may''.

SEC. 240. ENHANCEMENT OF DEFENSE NANOTECHNOLOGY RESEARCH AND 
                    DEVELOPMENT PROGRAM.

    (a) Program Purposes.--Subsection (b) of section 246 of the 
Bob Stump National Defense Authorization Act for Fiscal Year 
2003 (Public Law 107-314; 116 Stat. 2500; 10 U.S.C. 2358 note) 
is amended--
            (1) in paragraph (2), by striking ``in nanoscale 
        research and development'' and inserting ``in the 
        National Nanotechnology Initiative and with the 
        National Nanotechnology Coordination Office under 
        section 3 of the 21st Century Nanotechnology Research 
        and Development Act (15 U.S.C. 7502)''; and
            (2) in paragraph (3), by striking ``portfolio of 
        fundamental and applied nanoscience and engineering 
        research initiatives'' and inserting ``portfolio of 
        nanotechnology research and development initiatives''.
    (b) Program Administration.--
            (1) Administration through under secretary of 
        defense for acquisition, technology, and logistics.--
        Subsection (c) of such section is amended--
                    (A) by striking ``the Director of Defense 
                Research and Engineering'' and inserting ``the 
                Under Secretary of Defense for Acquisition, 
                Technology, and Logistics''; and
                    (B) by striking ``The Director'' and 
                inserting ``The Under Secretary''.
            (2) Other administrative matters.--Such subsection 
        is further amended--
                    (A) in paragraph (2), by striking ``the 
                Department's increased investment in 
                nanotechnology research and development and the 
                National Nanotechnology Initiative; and'' and 
                inserting ``investments by the Department and 
                other departments and agencies participating in 
                the National Nanotechnology Initiative in 
                nanotechnology research and development;'';
                    (B) in paragraph (3), by striking the 
                period at the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(4) oversee Department of Defense participation 
        in interagency coordination of the program with other 
        departments and agencies participating in the National 
        Nanotechnology Initiative.''.
    (c) Program Activities.--Such section is further amended--
            (1) by striking subsection (d); and
            (2) by adding at the end the following new 
        subsection (d):
    ``(d) Strategic Plan.--The Under Secretary shall develop 
and maintain a strategic plan for defense nanotechnology 
research and development that--
            ``(1) is integrated with the strategic plan for the 
        National Nanotechnology Initiative and the strategic 
        plans of the Director of Defense Research and 
        Engineering, the military departments, and the Defense 
        Agencies; and
            ``(2) includes a clear strategy for transitioning 
        the research into products needed by the Department.''.
    (d) Reports.--Such section is further amended by adding at 
the end the following new subsection:
    ``(e) Reports.--
            ``(1) In general.--Not later than March 1 of each 
        of 2009, 2011, and 2013, the Under Secretary of Defense 
        for Acquisition, Technology, and Logistics shall submit 
        to the congressional defense committees a report on the 
        program.
            ``(2) Matters included.--Each report under 
        paragraph (1) shall include the following:
                    ``(A) A review of--
                            ``(i) the long-term challenges and 
                        specific technical goals of the 
                        program; and
                            ``(ii) the progress made toward 
                        meeting such challenges and achieving 
                        such goals.
                    ``(B) An assessment of current and proposed 
                funding levels for the program, including an 
                assessment of the adequacy of such funding 
                levels to support program activities.
                    ``(C) A review of the coordination of 
                activities under the program within the 
                Department of Defense, with other departments 
                and agencies of the United States, and with the 
                National Nanotechnology Initiative.
                    ``(D) A review and analysis of the findings 
                and recommendations relating to the Department 
                of Defense of the most recent triennial 
                external review of the National Nanotechnology 
                Program under section 5 of the 21st Century 
                Nanotechnology Research and Development Act (15 
                U.S.C. 1704), and a description of initiatives 
                of the Department to implement such 
                recommendations.
                    ``(E) An assessment of technology 
                transition from nanotechnology research and 
                development to enhanced warfighting 
                capabilities, including contributions from the 
                Department of Defense Small Business Innovative 
                Research and Small Business Technology Transfer 
                Research programs, and the Department of 
                Defense Manufacturing Technology program, and 
                an identification of acquisition programs and 
                deployed defense systems that are incorporating 
                nanotechnologies.
                    ``(F) An assessment of global 
                nanotechnology research and development in 
                areas of interest to the Department, including 
                an identification of the use of 
                nanotechnologies in any foreign defense 
                systems.
                    ``(G) An assessment of the defense 
                nanotechnology manufacturing and industrial 
                base and its capability to meet the near and 
                far term requirements of the Department.
                    ``(H) Such recommendations for additional 
                activities under the program to meet emerging 
                national security requirements as the Under 
                Secretary considers appropriate.
            ``(3) Classification.--Each report under paragraph 
        (1) shall be submitted in unclassified form, but may 
        include a classified annex.''.

SEC. 241. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER ASSESSMENT 
                    OF THE DEFENSE EXPERIMENTAL PROGRAM TO STIMULATE 
                    COMPETITIVE RESEARCH.

    (a) Assessment Required.--The Secretary of Defense shall--
            (1) utilize a defense federally funded research and 
        development center to carry out an assessment of the 
        effectiveness of the Defense Experimental Program to 
        Stimulate Competitive Research; and
            (2) not later than nine months after the date of 
        the enactment of this Act, submit to the Committees on 
        Armed Services of the Senate and the House of 
        Representatives a report on that assessment.
    (b) Matters Assessed.--The report under subsection (a) 
shall include the following:
            (1) A description and assessment of the tangible 
        results and progress toward the objectives of the 
        program, including--
                    (A) an identification of any past program 
                activities that led to, or were fundamental to, 
                applications used by, or supportive of, 
                operational users; and
                    (B) an assessment of whether the program 
                has expanded the national research 
                infrastructure.
            (2) An assessment whether the activities undertaken 
        under the program are consistent with the statute 
        authorizing the program.
            (3) An assessment whether the various elements of 
        the program, such as structure, funding, staffing, 
        project solicitation and selection, and administration, 
        are working effectively and efficiently to support the 
        effective execution of the program.
            (4) A description and assessment of past and 
        ongoing activities of State planning committees under 
        the program in supporting the achievement of the 
        objectives of the program.
            (5) An analysis of the advantages and disadvantages 
        of having an institution-based formula for 
        qualification to participate in the program when 
        compared with the advantages and disadvantages of 
        having a State-based formula for qualification to 
        participate in supporting defense missions and the 
        objective of expanding the Nation's defense research 
        infrastructure.
            (6) An identification of mechanisms for improving 
        the management and implementation of the program, 
        including modification of the statute authorizing the 
        program, Department regulations, program structure, 
        funding levels, funding strategy, or the activities of 
        the State committees.
            (7) Any other matters the Secretary considers 
        appropriate.

SEC. 242. COST-BENEFIT ANALYSIS OF PROPOSED FUNDING REDUCTION FOR HIGH 
                    ENERGY LASER SYSTEMS TEST FACILITY.

    (a) Report Required.--Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
submit to the congressional defense committees a report 
containing a cost-benefit analysis of the proposed reduction in 
Army research, development, test, and evaluation funding for 
the High Energy Laser Systems Test Facility.
    (b) Evaluation of Impact on Other Military Departments.--
The report required under subsection (a) shall include an 
evaluation of the impact of the proposed reduction in funding 
on each Department of Defense organization or activity that 
utilizes the High Energy Laser Systems Test Facility.

SEC. 243. PROMPT GLOBAL STRIKE.

    (a) Research, Development, and Testing Plan.--The Secretary 
of Defense shall submit to the congressional defense committees 
a research, development, and testing plan for prompt global 
strike program objectives for fiscal years 2008 through 2013.
    (b) Plan for Obligation and Expenditure of Funds.--
            (1) In general.--The Under Secretary of Defense for 
        Acquisition, Technology, and Logistics shall submit to 
        the congressional defense committees a plan for 
        obligation and expenditure of funds available for 
        prompt global strike for fiscal year 2008. The plan 
        shall include correlations between each technology 
        application being developed in fiscal year 2008 and the 
        prompt global strike alternative or alternatives toward 
        which the technology application applies.
            (2) Limitation.--The Under Secretary shall not 
        implement the plan required by paragraph (1) until at 
        least 10 days after the plan is submitted as required 
        by that paragraph.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.

                  Subtitle B--Environmental Provisions

Sec. 311. Reimbursement of Environmental Protection Agency for certain 
          costs in connection with Moses Lake Wellfield Superfund Site, 
          Moses Lake, Washington.
Sec. 312. Reimbursement of Environmental Protection Agency for certain 
          costs in connection with the Arctic Surplus Superfund Site, 
          Fairbanks, Alaska.
Sec. 313. Payment to Environmental Protection Agency of stipulated 
          penalties in connection with Jackson Park Housing Complex, 
          Washington.
Sec. 314. Report on control of the brown tree snake.
Sec. 315. Notification of certain residents and civilian employees at 
          Camp Lejeune, North Carolina, of exposure to drinking water 
          contamination.

                 Subtitle C--Workplace and Depot Issues

Sec. 321. Availability of funds in Defense Information Systems Agency 
          Working Capital Fund for technology upgrades to Defense 
          Information Systems Network.
Sec. 322. Modification to public-private competition requirements before 
          conversion to contractor performance.
Sec. 323. Public-private competition at end of period specified in 
          performance agreement not required.
Sec. 324. Guidelines on insourcing new and contracted out functions.
Sec. 325. Restriction on Office of Management and Budget influence over 
          Department of Defense public-private competitions.
Sec. 326. Bid protests by Federal employees in actions under Office of 
          Management and Budget Circular A-76.
Sec. 327. Public-private competition required before conversion to 
          contractor performance.
Sec. 328. Extension of authority for Army industrial facilities to 
          engage in cooperative activities with non-Army entities.
Sec. 329. Reauthorization and modification of multi-trades demonstration 
          project.
Sec. 330. Pilot program for availability of working-capital funds to 
          Army for certain product improvements.

              Subtitle D--Extension of Program Authorities

Sec. 341. Extension of Arsenal Support Program Initiative.
Sec. 342. Extension of period for reimbursement for helmet pads 
          purchased by members of the Armed Forces deployed in 
          contingency operations.
Sec. 343. Extension of temporary authority for contract performance of 
          security guard functions.

                           Subtitle E--Reports

Sec. 351. Reports on National Guard readiness for emergencies and major 
          disasters.
Sec. 352. Annual report on prepositioned materiel and equipment.
Sec. 353. Report on incremental cost of early 2007 enhanced deployment.
Sec. 354. Modification of requirements of Comptroller General report on 
          the readiness of Army and Marine Corps ground forces.
Sec. 355. Plan to improve readiness of ground forces of active and 
          reserve components.
Sec. 356. Independent assessment of Civil Reserve Air Fleet viability.
Sec. 357. Department of Defense Inspector General report on physical 
          security of Department of Defense installations.
Sec. 358. Review of high-altitude aviation training.
Sec. 359. Reports on safety measures and encroachment issues and master 
          plan for Warren Grove Gunnery Range, New Jersey.
Sec. 360. Report on search and rescue capabilities of the Air Force in 
          the northwestern United States.
Sec. 361. Report and master infrastructure recapitalization plan for 
          Cheyenne Mountain Air Station, Colorado.

                        Subtitle F--Other Matters

Sec. 371. Enhancement of corrosion control and prevention functions 
          within Department of Defense.
Sec. 372. Authority for Department of Defense to provide support for 
          certain sporting events.
Sec. 373. Authority to impose reasonable restrictions on payment of full 
          replacement value for lost or damaged personal property 
          transported at Government expense.
Sec. 374. Priority transportation on Department of Defense aircraft of 
          retired members residing in Commonwealths and possessions of 
          the United States for certain health care services.
Sec. 375. Recovery of missing military property.
Sec. 376. Retention of combat uniforms by members of the Armed Forces 
          deployed in support of contingency operations.
Sec. 377. Issue of serviceable material of the Navy other than to Armed 
          Forces.
Sec. 378. Reauthorization of Aviation Insurance Program.

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal 
year 2008 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, $28,787,219,000.
            (2) For the Navy, $33,355,683,000.
            (3) For the Marine Corps, $4,967,193,000.
            (4) For the Air Force, $33,118,462,000.
            (5) For Defense-wide activities, $22,500,253,000.
            (6) For the Army Reserve, $2,509,862,000.
            (7) For the Navy Reserve, $1,186,883,000.
            (8) For the Marine Corps Reserve, $208,637,000.
            (9) For the Air Force Reserve, $2,821,817,000.
            (10) For the Army National Guard, $5,857,409,000.
            (11) For the Air National Guard, $5,456,668,000.
            (12) For the United States Court of Appeals for the 
        Armed Forces, $11,971,000.
            (13) For Environmental Restoration, Army, 
        $434,879,000.
            (14) For Environmental Restoration, Navy, 
        $300,591,000.
            (15) For Environmental Restoration, Air Force, 
        $458,428,000.
            (16) For Environmental Restoration, Defense-wide, 
        $12,751,000.
            (17) For Environmental Restoration, Formerly Used 
        Defense Sites, $270,249,000.
            (18) For Overseas Humanitarian, Disaster, and Civic 
        Aid programs, $103,300,000.
            (19) For Former Soviet Union Threat Reduction 
        programs, $428,048,000.
            (20) For the Overseas Contingency Operations 
        Transfer Fund, $5,000,000.

                  Subtitle B--Environmental Provisions

SEC. 311. 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, 
        notwithstanding section 2215 of title 10, United States 
        Code, transfer not more than $91,588.51 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(16) for operation and maintenance for Environmental 
Restoration, Defense-wide.
    (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. 312. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR CERTAIN 
                    COSTS IN CONNECTION WITH THE ARCTIC SURPLUS 
                    SUPERFUND SITE, FAIRBANKS, ALASKA.

    (a) Authority To Reimburse.--
            (1) Transfer amount.--Using funds described in 
        subsection (b), the Secretary of Defense may, 
        notwithstanding section 2215 of title 10, United States 
        Code, transfer not more than $186,625.38 to the 
        Hazardous Substance Superfund.
            (2) Purpose of reimbursement.--The payment under 
        paragraph (1) is to reimburse the Environmental 
        Protection Agency for costs incurred pursuant to the 
        agreement known as ``In the Matter of Arctic Surplus 
        Superfund Site, U.S. EPA Docket Number CERCLA-10-2003-
        0114: Administrative Order on Consent for Remedial 
        Design and Remedial Action'', entered into by the 
        Department of Defense and the Environmental Protection 
        Agency on December 11, 2003.
    (b) Source of Funds.--Any payment under subsection (a) 
shall be made using funds authorized to be appropriated by 
section 301(16) for operation and maintenance for Environmental 
Restoration, Defense-wide.
    (c) Use of Funds.--The Environmental Protection Agency 
shall use the amount transferred under subsection (a) to pay 
costs incurred by the Agency pursuant to the agreement 
described in paragraph (2) of such subsection.

SEC. 313. PAYMENT TO ENVIRONMENTAL PROTECTION AGENCY OF STIPULATED 
                    PENALTIES IN CONNECTION WITH JACKSON PARK HOUSING 
                    COMPLEX, WASHINGTON.

    (a) Authority To Transfer Funds.--
            (1) Transfer amount.--Using funds described in 
        subsection (b), the Secretary of the Navy may, 
        notwithstanding section 2215 of title 10, United States 
        Code, transfer not more than $40,000.00 to the 
        Hazardous Substance Superfund.
            (2) Purpose of transfer.--The payment under 
        paragraph (1) is to pay a stipulated penalty assessed 
        by the Environmental Protection Agency on October 25, 
        2005, against the Jackson Park Housing Complex, 
        Washington, for the failure by the Navy to timely 
        submit a draft final Phase II Remedial Investigation 
        Work Plan for the Jackson Park Housing Complex Operable 
        Unit (OU-3T-JPHC) pursuant to a schedule included in an 
        Interagency Agreement (Administrative Docket No. 
        CERCLA-10-2005-0023).
    (b) Source of Funds.--Any payment under subsection (a) 
shall be made using funds authorized to be appropriated by 
section 301(14) for operation and maintenance for Environmental 
Restoration, Navy.
    (c) Use of Funds.--The amount transferred under subsection 
(a) shall be used by the Environmental Protection Agency to pay 
the penalty described under paragraph (2) of such subsection.

SEC. 314. REPORT ON CONTROL OF THE BROWN TREE SNAKE.

    (a) Findings.--Congress finds the following:
            (1) The brown tree snake (Boiga irregularis), an 
        invasive species, is found in significant numbers on 
        military installations and in other areas on Guam, and 
        constitutes a serious threat to the ecology of Guam.
            (2) If introduced into Hawaii, the Commonwealth of 
        the Northern Mariana Islands, or the continental United 
        States, the brown tree snake would pose an immediate 
        and serious economic and ecological threat.
            (3) The most probable vector for the introduction 
        of the brown tree snake into Hawaii, the Commonwealth 
        of the Northern Mariana Islands, or the continental 
        United States is the movement from Guam of military 
        aircraft, personnel, and cargo, including the household 
        goods of military personnel and other military assets.
            (4) It is probable that the movement of military 
        aircraft, personnel, and cargo, including the household 
        goods of military personnel, from Guam to Hawaii, the 
        Commonwealth of the Northern Mariana Islands, or the 
        continental United States will increase significantly 
        coincident with the increase in the number of military 
        units and personnel stationed on Guam.
            (5) Current policies, programs, procedures, and 
        dedicated resources of the Department of Defense and of 
        other departments and agencies of the United States may 
        not be sufficient to adequately address the management, 
        control, and eradication of the brown tree snake on 
        Guam and the increasing threat of the introduction of 
        the brown tree snake from Guam into Hawaii, the 
        Commonwealth of the Northern Mariana Islands, the 
        continental United States, or other non-native 
        environments.
    (b) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
the congressional defense committees a report on the following:
            (1) The actions currently being taken (including 
        the resources being made available) by the Department 
        of Defense to control, and to develop new or existing 
        techniques to control, the brown tree snake on Guam and 
        to prevent the introduction of the brown tree snake 
        into Hawaii, the Commonwealth of the Northern Mariana 
        Island, the continental United States, or any other 
        non-native environment as a result of the movement from 
        Guam of military aircraft, personnel, and cargo, 
        including the household goods of military personnel and 
        other military assets. Such actions shall include any 
        actions taken by the Department of Defense to implement 
        the recommendations of the Brown Treesnake Review Panel 
        commissioned by the Department of the Interior, as 
        contained in the Review Panel's final report entitled 
        ``Review of Brown Treesnake Problems and Control 
        Programs'' published in March 2005.
            (2) Current plans for enhanced future actions, 
        policies, and procedures and increased levels of 
        resources in order to ensure that the projected 
        increase of military personnel stationed on Guam does 
        not increase the threat of introduction of the brown 
        tree snake from Guam into Hawaii, the Commonwealth of 
        the Northern Mariana Islands, the continental United 
        States, or other non-native environments.
            (3) The results of management, control, and 
        eradication carried out by the Secretary of Defense, in 
        consultation with the Secretary of the Interior, before 
        the date on which the report is submitted with respect 
        to brown tree snakes through the integrated natural 
        resource management plans prepared for military 
        installations in Guam under the pilot program 
        authorized by section 101(g) of the Sikes Act (16 
        U.S.C. 670a(g)).

SEC. 315. NOTIFICATION OF CERTAIN RESIDENTS AND CIVILIAN EMPLOYEES AT 
                    CAMP LEJEUNE, NORTH CAROLINA, OF EXPOSURE TO 
                    DRINKING WATER CONTAMINATION.

    (a) Notification of Individuals Served by Tarawa Terrace 
Water Distribution System, Including Knox Trailer Park.--Not 
later than one year after the date of the enactment of this 
Act, the Secretary of the Navy shall make reasonable efforts to 
identify and notify directly individuals who were served by the 
Tarawa Terrace Water Distribution System, including Knox 
Trailer Park, at Camp Lejeune, North Carolina, during the years 
1958 through 1987 that they may have been exposed to drinking 
water contaminated with tetrachloroethylene (PCE).
    (b) Notification of Individuals Served by Hadnot Point 
Water Distribution System.--Not later than one year after the 
Agency for Toxic Substances and Disease Registry (ATSDR) 
completes its water modeling study of the Hadnot Point water 
distribution system, the Secretary of the Navy shall make 
reasonable efforts to identify and notify directly individuals 
who were served by the system during the period identified in 
the study of the drinking water contamination to which they may 
have been exposed.
    (c) Notification of Former Civilian Employees at Camp 
Lejeune.--Not later than one year after the date of the 
enactment of this Act, the Secretary of the Navy shall make 
reasonable efforts to identify and notify directly civilian 
employees who worked at Camp Lejeune during the period 
identified in the ATSDR drinking water study of the drinking 
water contamination to which they may have been exposed.
    (d) Circulation of Health Survey.--
            (1) Findings.--Congress makes the following 
        findings:
                    (A) Notification and survey efforts related 
                to the drinking water contamination described 
                in this section are necessary due to the 
                potential negative health impacts of these 
                contaminants.
                    (B) The Secretary of the Navy will not be 
                able to identify or contact all former 
                residents and former employees due to the 
                condition, non-existence, or accessibility of 
                records.
                    (C) It is the intent of Congress that the 
                Secretary of the Navy contact as many former 
                residents and former employees as quickly as 
                possible.
            (2) ATSDR health survey.--
                    (A) Development.--
                            (i) In general.--Not later than 120 
                        days after the date of the enactment of 
                        this Act, the ATSDR, in consultation 
                        with a well-qualified contractor 
                        selected by the ATSDR, shall develop a 
                        health survey that would voluntarily 
                        request of individuals described in 
                        subsections (a), (b), and (c) personal 
                        health information that may lead to 
                        scientifically useful health 
                        information associated with exposure to 
                        trichloroethylene (TCE), PCE, vinyl 
                        chloride, and the other contaminants 
                        identified in the ATSDR studies that 
                        may provide a basis for further 
                        reliable scientific studies of 
                        potentially adverse health impacts of 
                        exposure to contaminated water at Camp 
                        Lejeune.
                            (ii) Funding.--The Secretary of the 
                        Navy is authorized to provide from 
                        available funds the necessary funding 
                        for the ATSDR to develop the health 
                        survey.
                    (B) Inclusion with notification.--The 
                survey developed under subparagraph (A) shall 
                be distributed by the Secretary of the Navy 
                concurrently with the direct notification 
                required under subsections (a), (b), and (c).
    (e) Use of Media To Supplement Notification.--The Secretary 
of the Navy may use media notification as a supplement to 
direct notification of individuals described under subsections 
(a), (b), and (c). Media notification may reach those 
individuals not identifiable via remaining records. Once 
individuals respond to media notifications, the Secretary will 
add them to the contact list to be included in future 
information updates.

                 Subtitle C--Workplace and Depot Issues

SEC. 321. AVAILABILITY OF FUNDS IN DEFENSE INFORMATION SYSTEMS AGENCY 
                    WORKING CAPITAL FUND FOR TECHNOLOGY UPGRADES TO 
                    DEFENSE INFORMATION SYSTEMS NETWORK.

    (a) In General.--Notwithstanding section 2208 of title 10, 
United States Code, funds in the Defense Information Systems 
Agency Working Capital Fund may be used for expenses directly 
related to technology upgrades to the Defense Information 
Systems Network.
    (b) Limitation on Certain Projects.--Funds may not be used 
under subsection (a) for--
            (1) any technology insertion to the Defense 
        Information Systems Network that significantly changes 
        the performance envelope of an end item; or
            (2) any component with an estimated total cost in 
        excess of $500,000.
    (c) Limitation in Fiscal Year Pending Timely Report.--If in 
any fiscal year the report required by paragraph (1) of 
subsection (d) is not submitted by the date specified in 
paragraph (2) of subsection (d), funds may not be used under 
subsection (a) in such fiscal year during the period--
            (1) beginning on the date specified in paragraph 
        (2) of subsection (d); and
            (2) ending on the date of the submittal of the 
        report under paragraph (1) of subsection (d).
    (d) Annual Report.--
            (1) In general.--The Director of the Defense 
        Information Systems Agency shall submit to the 
        congressional defense committees each fiscal year a 
        report on the use of the authority in subsection (a) 
        during the preceding fiscal year.
            (2) Deadline for submittal.--The report required by 
        paragraph (1) in a fiscal year shall be submitted not 
        later than 60 days after the date of the submittal to 
        Congress of the budget of the President for the 
        succeeding fiscal year pursuant to section 1105 of 
        title 31, United States Code.
    (e) Sunset.--The authority in subsection (a) shall expire 
on October 1, 2011.

SEC. 322. MODIFICATION TO PUBLIC-PRIVATE COMPETITION REQUIREMENTS 
                    BEFORE CONVERSION TO CONTRACTOR PERFORMANCE.

    (a) Comparison of Retirement System Costs.--Section 
2461(a)(1) of title 10, United States Code, is amended--
            (1) in subparagraph (F), by striking ``and'' at the 
        end;
            (2) by redesignating subparagraph (G) as 
        subparagraph (H); and
            (3) by inserting after subparagraph (F) the 
        following new subparagraph (G):
            ``(G) requires that the contractor shall not 
        receive an advantage for a proposal that would reduce 
        costs for the Department of Defense by--
                    ``(i) not making an employer-sponsored 
                health insurance plan (or payment that could be 
                used in lieu of such a plan), health savings 
                account, or medical savings account available 
                to the workers who are to be employed to 
                perform the function under the contract;
                    ``(ii) offering to such workers an 
                employer-sponsored health benefits plan that 
                requires the employer to contribute less 
                towards the premium or subscription share than 
                the amount that is paid by the Department of 
                Defense for health benefits for civilian 
                employees of the Department under chapter 89 of 
                title 5; or
                    ``(iii) offering to such workers a 
                retirement benefit that, in any year, costs 
                less than the annual retirement cost factor 
                applicable to civilian employees of the 
                Department of Defense under chapter 84 of title 
                5; and''.
    (b) Conforming Amendments.--Such title is further amended--
            (1) by striking section 2467; and
            (2) in section 2461--
                    (A) by redesignating subsections (b) 
                through (d) as subsections (c) through (e), 
                respectively; and
                    (B) by inserting after subsection (a) the 
                following new subsection (b):
    ``(b) Requirement to Consult DOD Employees.--(1) Each 
officer or employee of the Department of Defense responsible 
for determining under Office of Management and Budget Circular 
A-76 whether to convert to contractor performance any function 
of the Department of Defense--
            ``(A) shall, at least monthly during the 
        development and preparation of the performance work 
        statement and the management efficiency study used in 
        making that determination, consult with civilian 
        employees who will be affected by that determination 
        and consider the views of such employees on the 
        development and preparation of that statement and that 
        study; and
            ``(B) may consult with such employees on other 
        matters relating to that determination.
    ``(2)(A) In the case of employees represented by a labor 
organization accorded exclusive recognition under section 7111 
of title 5, consultation with representatives of that labor 
organization shall satisfy the consultation requirement in 
paragraph (1).
    ``(B) In the case of employees other than employees 
referred to in subparagraph (A), consultation with appropriate 
representatives of those employees shall satisfy the 
consultation requirement in paragraph (1).
    ``(C) The Secretary of Defense shall prescribe regulations 
to carry out this subsection. The regulations shall include 
provisions for the selection or designation of appropriate 
representatives of employees referred to in subparagraph (B) 
for purposes of the consultation required by paragraph (1).''.
    (c) Technical Amendments.--Section 2461 of such title, as 
amended by this section, is further amended--
            (1) in subsection (a)(1)--
                    (A) in subparagraph (B), by inserting after 
                ``2003'' the following: ``, or any successor 
                circular''; and
                    (B) in subparagraph (D), by striking ``and 
                reliability'' and inserting ``, reliability, 
                and timeliness''; and
            (2) in subsection (c)(2), as redesignated by 
        subsection (b)(2), by inserting ``of'' after 
        ``examination''.
    (d) Clerical Amendment.--The table of sections at the 
beginning of chapter 146 of such title is amended by striking 
the item relating to section 2467.

SEC. 323. PUBLIC-PRIVATE COMPETITION AT END OF PERIOD SPECIFIED IN 
                    PERFORMANCE AGREEMENT NOT REQUIRED.

    Section 2461(a) of title 10, United States Code, is amended 
by adding at the end the following new paragraph:
    ``(4) A military department or Defense Agency may not be 
required to conduct a public-private competition under Office 
of Management and Budget Circular A-76 or any other provision 
of law at the end of the performance period specified in a 
letter of obligation or other agreement entered into with 
Department of Defense civilian employees pursuant to a public-
private competition for any function of the Department of 
Defense performed by Department of Defense civilian 
employees.''.

SEC. 324. GUIDELINES ON INSOURCING NEW AND CONTRACTED OUT FUNCTIONS.

    (a) Codification and Revision of Requirement for 
Guidelines.--
            (1) In general.--Chapter 146 of title 10, United 
        States Code, is amended by inserting after section 2462 
        the following new section:

``Sec. 2463. Guidelines and procedures for use of civilian employees to 
                    perform Department of Defense functions

    ``(a) Guidelines Required.--(1) The Under Secretary of 
Defense for Personnel and Readiness shall devise and implement 
guidelines and procedures to ensure that consideration is given 
to using, on a regular basis, Department of Defense civilian 
employees to perform new functions and functions that are 
performed by contractors and could be performed by Department 
of Defense civilian employees. The Secretary of a military 
department may prescribe supplemental regulations, if the 
Secretary determines such regulations are necessary for 
implementing such guidelines within that military department.
    ``(2) The guidelines and procedures required under 
paragraph (1) may not include any specific limitation or 
restriction on the number of functions or activities that may 
be converted to performance by Department of Defense civilian 
employees.
    ``(b) Special Consideration for Certain Functions.--The 
guidelines and procedures required under subsection (a) shall 
provide for special consideration to be given to using 
Department of Defense civilian employees to perform any 
function that--
            ``(1) is performed by a contractor and--
                    ``(A) has been performed by Department of 
                Defense civilian employees at any time during 
                the previous 10 years;
                    ``(B) is a function closely associated with 
                the performance of an inherently governmental 
                function;
                    ``(C) has been performed pursuant to a 
                contract awarded on a non-competitive basis; or
                    ``(D) has been performed poorly, as 
                determined by a contracting officer during the 
                five-year period preceding the date of such 
                determination, because of excessive costs or 
                inferior quality; or
            ``(2) is a new requirement, with particular 
        emphasis given to a new requirement that is similar to 
        a function previously performed by Department of 
        Defense civilian employees or is a function closely 
        associated with the performance of an inherently 
        governmental function.
    ``(c) Exclusion of Certain Functions From Competitions.--
The Secretary of Defense may not conduct a public-private 
competition under this chapter, Office of Management and Budget 
Circular A-76, or any other provision of law or regulation 
before--
            ``(1) in the case of a new Department of Defense 
        function, assigning the performance of the function to 
        Department of Defense civilian employees;
            ``(2) in the case of any Department of Defense 
        function described in subsection (b), converting the 
        function to performance by Department of Defense 
        civilian employees; or
            ``(3) in the case of a Department of Defense 
        function performed by Department of Defense civilian 
        employees, expanding the scope of the function.
    ``(d) Use of Flexible Hiring Authority.--(1) The Secretary 
of Defense may use the flexible hiring authority available to 
the Secretary under the National Security Personnel System, as 
established pursuant to section 9902 of title 5, to facilitate 
the performance by Department of Defense civilian employees of 
functions described in subsection (b).
    ``(2) The Secretary shall make use of the inventory 
required by section 2330a(c) of this title for the purpose of 
identifying functions that should be considered for performance 
by Department of Defense civilian employees pursuant to 
subsection (b).
    ``(e) Definitions.--In this section the term `functions 
closely associated with inherently governmental functions' has 
the meaning given that term in section 2383(b)(3) of this 
title.''.
            (2) Clerical amendment.--The table of sections at 
        the beginning of such chapter is amended by inserting 
        after the item relating to section 2462 the following 
        new item:

``2463. Guidelines and procedures for use of civilian employees to 
          perform Department of Defense functions.''.

            (3) Deadline for issuance of guidelines and 
        procedures.--The Secretary of Defense shall implement 
        the guidelines and procedures required under section 
        2463 of title 10, United States Code, as added by 
        paragraph (1), by not later than 60 days after the date 
        of the enactment of this Act.
    (b) Inspector General Report.--Not later than 180 days 
after the date of the enactment of this Act, the Inspector 
General of the Department of Defense shall submit to the 
congressional defense committees a report on the implementation 
of this section and the amendments made by this section.
    (c) Conforming Repeal.--The National Defense Authorization 
Act for Fiscal Year 2006 (Public Law 109-163) is amended by 
striking section 343.

SEC. 325. RESTRICTION ON OFFICE OF MANAGEMENT AND BUDGET INFLUENCE OVER 
                    DEPARTMENT OF DEFENSE PUBLIC-PRIVATE COMPETITIONS.

    (a) Restriction on Office of Management and Budget.--The 
Office of Management and Budget may not direct or require the 
Secretary of Defense or the Secretary of a military department 
to prepare for, undertake, continue, or complete a public-
private competition or direct conversion of a Department of 
Defense function to performance by a contractor under Office of 
Management and Budget Circular A-76, or any other successor 
regulation, directive, or policy.
    (b) Restriction on Secretary of Defense.--The Secretary of 
Defense or the Secretary of a military department may not 
prepare for, undertake, continue, or complete a public-private 
competition or direct conversion of a Department of Defense 
function to performance by a contractor under Office of 
Management and Budget Circular A-76, or any other successor 
regulation, directive, or policy by reason of any direction or 
requirement provided by the Office of Management and Budget.
    (c) Inspector General Review.--
            (1) Comprehensive review required.--The Inspector 
        General of the Department of Defense shall conduct a 
        comprehensive review of the compliance of the Secretary 
        of Defense and the Secretaries of the military 
        departments with the requirements of this section 
        during calendar year 2008. The Inspector General shall 
        submit to the congressional defense committees the 
        following reports on the comprehensive review:
                    (A) An interim report, to be submitted by 
                not later than 90 days after the date of the 
                enactment of this Act.
                    (B) A final report, to be submitted by not 
                later than December 31, 2008.
            (2) Inspector general access.--For the purpose of 
        determining compliance with the requirements of this 
        section, the Secretary of Defense shall ensure that the 
        Inspector General has access to all Department records 
        of relevant communications between Department officials 
        and officials of other departments and agencies of the 
        Federal Government, whether such communications 
        occurred inside or outside of the Department.

SEC. 326. BID PROTESTS BY FEDERAL EMPLOYEES IN ACTIONS UNDER OFFICE OF 
                    MANAGEMENT AND BUDGET CIRCULAR A-76.

    (a) Eligibility To Protest Public-Private Competitions.--
Section 3551(2) of title 31, United States Code, is amended to 
read as follows:
            ``(2) The term `interested party'--
                    ``(A) with respect to a contract or a 
                solicitation or other request for offers 
                described in paragraph (1), means an actual or 
                prospective bidder or offeror whose direct 
                economic interest would be affected by the 
                award of the contract or by failure to award 
                the contract; and
                    ``(B) with respect to a public-private 
                competition conducted under Office of 
                Management and Budget Circular A-76 with 
                respect to the performance of an activity or 
                function of a Federal agency, or a decision to 
                convert a function performed by Federal 
                employees to private sector performance without 
                a competition under Office of Management and 
                Budget Circular A-76, includes--
                            ``(i) any official who submitted 
                        the agency tender in such competition; 
                        and
                            ``(ii) any one individual who, for 
                        the purpose of representing the Federal 
                        employees engaged in the performance of 
                        the activity or function for which the 
                        public-private competition is conducted 
                        in a protest under this subchapter that 
                        relates to such public-private 
                        competition, has been designated as the 
                        agent of the Federal employees by a 
                        majority of such employees.''.
    (b) Expedited Action.--
            (1) In general.--Subchapter V of chapter 35 of such 
        title is amended by adding at the end the following new 
        section:

``Sec. 3557. Expedited action in protests of Public-Private 
                    competitions

    ``For any protest of a public-private competition conducted 
under Office of Management and Budget Circular A-76 with 
respect to the performance of an activity or function of a 
Federal agency, the Comptroller General shall administer the 
provisions of this subchapter in the manner best suited for 
expediting the final resolution of the protest and the final 
action in the public-private competition.''.
            (2) Clerical amendment.--The chapter analysis at 
        the beginning of such chapter is amended by inserting 
        after the item relating to section 3556 the following 
        new item:

``3557. Expedited action in protests of public-private competitions.''.

    (c) Right To Intervene in Civil Action.--Section 1491(b) of 
title 28, United States Code, is amended by adding at the end 
the following new paragraph:
    ``(5) If an interested party who is a member of the private 
sector commences an action described in paragraph (1) with 
respect to a public-private competition conducted under Office 
of Management and Budget Circular A-76 regarding the 
performance of an activity or function of a Federal agency, or 
a decision to convert a function performed by Federal employees 
to private sector performance without a competition under 
Office of Management and Budget Circular A-76, then an 
interested party described in section 3551(2)(B) of title 31 
shall be entitled to intervene in that action.''.
    (d) Applicability.--Subparagraph (B) of section 3551(2) of 
title 31, United States Code (as added by subsection (a)), and 
paragraph (5) of section 1491(b) of title 28, United States 
Code (as added by subsection (c)), shall apply to--
            (1) a protest or civil action that challenges final 
        selection of the source of performance of an activity 
        or function of a Federal agency that is made pursuant 
        to a study initiated under Office of Management and 
        Budget Circular A-76 on or after January 1, 2004; and
            (2) any other protest or civil action that relates 
        to a public-private competition initiated under Office 
        of Management and Budget Circular A-76, or to a 
        decision to convert a function performed by Federal 
        employees to private sector performance without a 
        competition under Office of Management and Budget 
        Circular A-76, on or after the date of the enactment of 
        this Act.

SEC. 327. PUBLIC-PRIVATE COMPETITION REQUIRED BEFORE CONVERSION TO 
                    CONTRACTOR PERFORMANCE.

    (a) In General.--The Office of Federal Procurement Policy 
Act (41 U.S.C. 403 et seq.) is amended by adding at the end the 
following new section:

``SEC. 43. PUBLIC-PRIVATE COMPETITION REQUIRED BEFORE CONVERSION TO 
                    CONTRACTOR PERFORMANCE.

    ``(a) Public-Private Competition.--(1) A function of an 
executive agency performed by 10 or more agency civilian 
employees may not be converted, in whole or in part, to 
performance by a contractor unless the conversion is based on 
the results of a public-private competition that--
            ``(A) formally compares the cost of performance of 
        the function by agency civilian employees with the cost 
        of performance by a contractor;
            ``(B) creates an agency tender, including a most 
        efficient organization plan, in accordance with Office 
        of Management and Budget Circular A-76, as implemented 
        on May 29, 2003, or any successor circular;
            ``(C) includes the issuance of a solicitation;
            ``(D) determines whether the submitted offers meet 
        the needs of the executive agency with respect to 
        factors other than cost, including quality, 
        reliability, and timeliness;
            ``(E) examines the cost of performance of the 
        function by agency civilian employees and the cost of 
        performance of the function by one or more contractors 
        to demonstrate whether converting to performance by a 
        contractor will result in savings to the Government 
        over the life of the contract, including--
                    ``(i) the estimated cost to the Government 
                (based on offers received) for performance of 
                the function by a contractor;
                    ``(ii) the estimated cost to the Government 
                for performance of the function by agency 
                civilian employees; and
                    ``(iii) an estimate of all other costs and 
                expenditures that the Government would incur 
                because of the award of such a contract;
            ``(F) requires continued performance of the 
        function by agency civilian employees unless the 
        difference in the cost of performance of the function 
        by a contractor compared to the cost of performance of 
        the function by agency civilian employees would, over 
        all performance periods required by the solicitation, 
        be equal to or exceed the lesser of--
                    ``(i) 10 percent of the personnel-related 
                costs for performance of that function in the 
                agency tender; or
                    ``(ii) $10,000,000; and
            ``(G) examines the effect of performance of the 
        function by a contractor on the agency mission 
        associated with the performance of the function.
    ``(2) A function that is performed by the executive agency 
and is reengineered, reorganized, modernized, upgraded, 
expanded, or changed to become more efficient, but still 
essentially provides the same service, shall not be considered 
a new requirement.
    ``(3) In no case may a function being performed by 
executive agency personnel be--
            ``(A) modified, reorganized, divided, or in any way 
        changed for the purpose of exempting the conversion of 
        the function from the requirements of this section; or
            ``(B) converted to performance by a contractor to 
        circumvent a civilian personnel ceiling.
    ``(b) Requirement To Consult Employees.--(1) Each civilian 
employee of an executive agency responsible for determining 
under Office of Management and Budget Circular A-76 whether to 
convert to contractor performance any function of the executive 
agency--
            ``(A) shall, at least monthly during the 
        development and preparation of the performance work 
        statement and the management efficiency study used in 
        making that determination, consult with civilian 
        employees who will be affected by that determination 
        and consider the views of such employees on the 
        development and preparation of that statement and that 
        study; and
            ``(B) may consult with such employees on other 
        matters relating to that determination.
    ``(2)(A) In the case of employees represented by a labor 
organization accorded exclusive recognition under section 7111 
of title 5, United States Code, consultation with 
representatives of that labor organization shall satisfy the 
consultation requirement in paragraph (1).
    ``(B) In the case of employees other than employees 
referred to in subparagraph (A), consultation with appropriate 
representatives of those employees shall satisfy the 
consultation requirement in paragraph (1).
    ``(C) The head of each executive agency shall prescribe 
regulations to carry out this subsection. The regulations shall 
include provisions for the selection or designation of 
appropriate representatives of employees referred to in 
paragraph (2)(B) for purposes of consultation required by 
paragraph (1).
    ``(c) Congressional Notification.--(1) Before commencing a 
public-private competition under subsection (a), the head of an 
executive agency shall submit to Congress a report containing 
the following:
            ``(A) The function for which such public-private 
        competition is to be conducted.
            ``(B) The location at which the function is 
        performed by agency civilian employees.
            ``(C) The number of agency civilian employee 
        positions potentially affected.
            ``(D) The anticipated length and cost of the 
        public-private competition, and a specific 
        identification of the budgetary line item from which 
        funds will be used to cover the cost of the public-
        private competition.
            ``(E) A certification that a proposed performance 
        of the function by a contractor is not a result of a 
        decision by an official of an executive agency to 
        impose predetermined constraints or limitations on such 
        employees in terms of man years, end strengths, full-
        time equivalent positions, or maximum number of 
        employees.
    ``(2) The report required under paragraph (1) shall include 
an examination of the potential economic effect of performance 
of the function by a contractor on--
            ``(A) agency civilian employees who would be 
        affected by such a conversion in performance; and
            ``(B) the local community and the Government, if 
        more than 50 agency civilian employees perform the 
        function.
    ``(3)(A) A representative individual or entity at a 
facility where a public-private competition is conducted may 
submit to the head of the executive agency an objection to the 
public private competition on the grounds that the report 
required by paragraph (1) has not been submitted or that the 
certification required by paragraph (1)(E) is not included in 
the report submitted as a condition for the public private 
competition. The objection shall be in writing and shall be 
submitted within 90 days after the following date:
            ``(i) In the case of a failure to submit the report 
        when required, the date on which the representative 
        individual or an official of the representative entity 
        authorized to pose the objection first knew or should 
        have known of that failure.
            ``(ii) In the case of a failure to include the 
        certification in a submitted report, the date on which 
        the report was submitted to Congress.
    ``(B) If the head of the executive agency determines that 
the report required by paragraph (1) was not submitted or that 
the required certification was not included in the submitted 
report, the function for which the public-private competition 
was conducted for which the objection was submitted may not be 
the subject of a solicitation of offers for, or award of, a 
contract until, respectively, the report is submitted or a 
report containing the certification in full compliance with the 
certification requirement is submitted.
    ``(d) Exemption for the Purchase of Products and Services 
of the Blind and Other Severely Handicapped Persons.--This 
section shall not apply to a commercial or industrial type 
function of an executive agency that--
            ``(1) is included on the procurement list 
        established pursuant to section 2 of the Javits-Wagner-
        O'Day Act (41 U.S.C. 47); or
            ``(2) is planned to be changed to performance by a 
        qualified nonprofit agency for the blind or by a 
        qualified nonprofit agency for other severely 
        handicapped persons in accordance with that Act.
    ``(e) Inapplicability During War or Emergency.--The 
provisions of this section shall not apply during war or during 
a period of national emergency declared by the President or 
Congress.''.
    (b) Clerical Amendment.--The table of sections in section 
1(b) of such Act is amended by adding at the end the following 
new item:

``Sec. 43. Public-private competition required before conversion to 
          contractor performance.''.

SEC. 328. EXTENSION OF AUTHORITY FOR ARMY INDUSTRIAL FACILITIES TO 
                    ENGAGE IN COOPERATIVE ACTIVITIES WITH NON-ARMY 
                    ENTITIES.

    (a) Extension of Authority.--Section 4544 of title 10, 
United States Code, is amended--
            (1) in subsection (a), by adding at the end the 
        following: ``This authority may be used to enter into 
        not more than eight contracts or cooperative 
        agreements.''; and
            (2) in subsection (k), by striking ``2009'' and 
        inserting ``2014''.
    (b) Reports.--
            (1) Annual report on use of authority.--The 
        Secretary of the Army shall submit to Congress at the 
        same time the budget of the President is submitted to 
        Congress for fiscal years 2009 through 2016 under 
        section 1105 of title 31, United States Code, a report 
        on the use of the authority provided under section 4544 
        of title 10, United States Code.
            (2) Analysis of use of authority.--Not later than 
        September 30, 2012, the Secretary of the Army shall 
        submit to the congressional defense committees a report 
        assessing the advisability of making such authority 
        permanent and eliminating the limitation on the number 
        of contracts or cooperative arrangements that may be 
        entered into pursuant to such authority.

SEC. 329. REAUTHORIZATION AND MODIFICATION OF MULTI-TRADES 
                    DEMONSTRATION PROJECT.

    (a) Reauthorization and Expansion.--Section 338 of the 
National Defense Authorization Act for Fiscal Year 2004 (Public 
Law 108-136; 10 U.S.C. 5013 note) is amended--
            (1) by striking subsection (a) and inserting the 
        following new subsection (a):
    ``(a) Demonstration Project Authorized.--In accordance with 
section 4703 of title 5, United States Code, the Secretary of a 
military department may carry out a demonstration project under 
which workers who are certified at the journey level as able to 
perform multiple trades may be promoted by one grade level. A 
demonstration project under this subsection may be carried out 
as follows:
            ``(1) In the case of the Secretary of the Army, at 
        one Army depot.
            ``(2) In the case of the Secretary of the Navy, at 
        one Navy Fleet Readiness Center.
            ``(3) In the case of the Secretary of the Air 
        Force, at one Air Force Logistics Center.'';
            (2) in subsection (b)--
                    (A) by striking ``a Naval Aviation Depot'' 
                and inserting ``an Air Force Air Logistics 
                Center, Navy Fleet Readiness Center, or Army 
                depot''; and
                    (B) by striking ``Secretary'' and inserting 
                ``Secretary of the military department 
                concerned'';
            (3) by striking subsection (d) and redesignating 
        subsections (e) through (g) as subsections (d) through 
        (f), respectively;
            (4) in subsection (d), as so redesignated, by 
        striking ``2004 through 2006'' and inserting ``2008 
        through 2013'';
            (5) in subsection (e), as so redesignated--
                    (A) by striking ``2007'' and inserting 
                ``2014'';
                    (B) by inserting after ``Secretary'' the 
                following ``of each military department that 
                carried out a demonstration project under this 
                section''; and
                    (C) by adding at the end the following new 
                sentence: ``Each such report shall include the 
                Secretary's recommendation on whether permanent 
                multi-trade authority should be authorized.''; 
                and
            (6) in subsection (f), as so redesignated--
                    (A) in the first sentence, by striking 
                ``The Secretary'' and inserting ``Each 
                Secretary who submits a report under subsection 
                (e)''; and
                    (B) in the second sentence--
                            (i) by striking ``receiving the 
                        report'' and inserting ``receiving a 
                        report''; and
                            (ii) by striking ``evaluation of 
                        the report'' and inserting ``evaluation 
                        of that report''.
    (b) Clerical Amendment.--The heading for such section is 
amended to read as follows:

``SEC. 338. MULTI-TRADES DEMONSTRATION PROJECT.''.

SEC. 330. PILOT PROGRAM FOR AVAILABILITY OF WORKING-CAPITAL FUNDS TO 
                    ARMY FOR CERTAIN PRODUCT IMPROVEMENTS.

    (a) In General.--Notwithstanding section 2208 of title 10, 
United States Code, the Secretary of the Army may use a 
working-capital fund established pursuant to that section for 
expenses directly related to conducting a pilot program for a 
product improvement described in subsection (b).
    (b) Product Improvement.--A product improvement covered by 
the pilot program is the procurement and installation of a 
component or subsystem of a weapon system platform or major end 
item that would improve the reliability and maintainability, 
extend the useful life, enhance safety, lower maintenance 
costs, or provide performance enhancement of the weapon system 
platform or major end item.
    (c) Limitation on Certain Projects.--Funds may not be used 
under subsection (a) for--
            (1) any product improvement that significantly 
        changes the performance envelope of an end item; or
            (2) any component with an estimated total cost in 
        excess of $1,000,000.
    (d) Limitation in Fiscal Year Pending Timely Report.--If 
during any fiscal year the report required by paragraph (1) of 
subsection (e) is not submitted by the date specified in 
paragraph (3) of that subsection, funds may not be used under 
subsection (a) in such fiscal year during the period--
            (1) beginning on the date specified in paragraph 
        (3) of subsection (e); and
            (2) ending on the date of the submittal of the 
        report under paragraph (1) of subsection (e).
    (e) Annual Report.--
            (1) In general.--Each fiscal year, the Assistant 
        Secretary of the Army for Acquisition, Logistics, and 
        Technology, in consultation with the Assistant 
        Secretary of the Army for Financial Management and 
        Comptroller, shall submit to the congressional defense 
        committees a report on the use of the authority in 
        subsection (a) during the preceding fiscal year.
            (2) Recommendation.--In the case of the report 
        required to be submitted under paragraph (1) during 
        fiscal year 2012, the report shall include the 
        recommendation of the Assistant Secretary of the Army 
        for Acquisition, Logistics, and Technology regarding 
        whether the authority under subsection (a) should be 
        made permanent.
            (3) Deadline for submittal.--The report required by 
        paragraph (1) in a fiscal year shall be submitted not 
        later than 60 days after the date of the submittal to 
        Congress of the budget of the President for the 
        succeeding fiscal year pursuant to section 1105 of 
        title 31, United States Code.
    (f) Sunset.--The authority under subsection (a) shall 
expire on October 1, 2013.

              Subtitle D--Extension of Program Authorities

SEC. 341. EXTENSION OF ARSENAL SUPPORT PROGRAM INITIATIVE.

    Section 343 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (10 U.S.C. 4551 note) is 
amended--
            (1) in subsection (a), by striking ``2008'' and 
        inserting ``2010''; and
            (2) in subsection (g)(1), by striking ``2008'' and 
        inserting ``2010''.

SEC. 342. EXTENSION OF PERIOD FOR REIMBURSEMENT FOR HELMET PADS 
                    PURCHASED BY MEMBERS OF THE ARMED FORCES DEPLOYED 
                    IN CONTINGENCY OPERATIONS.

    (a) Extension.--Section 351 of the Ronald W. Reagan 
National Defense Authorization Act for Fiscal Year 2005 (Public 
Law 108-375; 118 Stat. 1857) is amended--
            (1) in subsection (a)(3), by inserting before the 
        period at the end the following: ``, or in the case of 
        protective helmet pads purchased by a member from a 
        qualified vendor for that member's personal use, ending 
        on September 30, 2007'';
            (2) in subsection (c)--
                    (A) by inserting after ``Armed Forces'' the 
                following: ``shall comply with regular 
                Department of Defense procedures for the 
                submission of claims and''; and
                    (B) by inserting before the period at the 
                end the following: ``or one year after the date 
                on which the purchase of the protective, 
                safety, or health equipment was made, whichever 
                occurs last''; and
            (3) in subsection (d), by adding at the end the 
        following new sentence: ``Subsection (a)(1) shall not 
        apply in the case of the purchase of protective helmet 
        pads on behalf of a member.''.
    (b) Funding.--Amounts for reimbursements made under section 
351 of the Ronald W. Reagan National Defense Authorization Act 
for Fiscal Year 2005 after the date of the enactment of this 
Act shall be derived from supplemental appropriations for the 
Department of Defense for fiscal year 2008, contingent upon 
such appropriations being enacted.

SEC. 343. EXTENSION OF TEMPORARY AUTHORITY FOR CONTRACT PERFORMANCE OF 
                    SECURITY GUARD FUNCTIONS.

    (a) Extension.--Subsection (c) of section 332 of the Bob 
Stump National Defense Authorization Act for Fiscal Year 2003 
(Public Law 107-314) is amended by striking ``September 30, 
2009'' both places it appears and inserting ``September 30, 
2012''.
    (b) Limitation for Fiscal Years 2010 Through 2012.--
Subsection (d) of such section is amended--
            (1) in paragraph (2), by striking ``and'' at the 
        end;
            (2) in paragraph (3), by striking the period and 
        inserting a semicolon; and
            (3) by adding at the end the following new 
        paragraphs:
            ``(4) for fiscal year 2010, the number equal to 70 
        percent of the total number of such personnel employed 
        under such contracts on October 1, 2006;
            ``(5) for fiscal year 2011, the number equal to 60 
        percent of the total number of such personnel employed 
        under such contracts on October 1, 2006; and
            ``(6) for fiscal year 2012, the number equal to 50 
        percent of the total number of such personnel employed 
        under such contracts on October 1, 2006.''.

                          Subtitle E--Reports

SEC. 351. REPORTS ON NATIONAL GUARD READINESS FOR EMERGENCIES AND MAJOR 
                    DISASTERS.

    (a) Annual Reports on Equipment.--Section 10541(b) of title 
10, United States Code, is amended by adding at the end the 
following new paragraph:
            ``(9) An assessment of the extent to which the 
        National Guard possesses the equipment required to 
        perform the responsibilities of the National Guard 
        pursuant to sections 331, 332, 333, 12304(b), and 12406 
        of this title in response to an emergency or major 
        disaster (as such terms are defined in section 102 of 
        the Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act (42 U.S.C. 5122)). Such assessment 
        shall--
                    ``(A) identify any shortfall in equipment 
                provided to the National Guard by the 
                Department of Defense throughout the United 
                States and the territories and possessions of 
                the United States that is likely to affect the 
                ability of the National Guard to perform such 
                responsibilities;
                    ``(B) evaluate the effect of any such 
                shortfall on the capacity of the National Guard 
                to perform such responsibilities in response to 
                an emergency or major disaster that occurs in 
                the United States or a territory or possession 
                of the United States; and
                    ``(C) identify the requirements and 
                investment strategies for equipment provided to 
                the National Guard by the Department of Defense 
                that are necessary to plan for a reduction or 
                elimination of any such shortfall.''.
    (b) Inclusion of Assessment of National Guard Readiness in 
Quarterly Personnel and Unit Readiness Report.--Section 482 of 
such title is amended--
            (1) in subsection (a), by striking ``and (e)'' and 
        inserting ``(e), and (f)'';
            (2) by redesignating subsection (f) as subsection 
        (g); and
            (3) by inserting after subsection (e) the following 
        new subsection (f):
    ``(f) Readiness of National Guard To Perform Civil Support 
Missions.--(1) Each report shall also include an assessment of 
the readiness of the National Guard to perform tasks required 
to support the National Response Plan for support to civil 
authorities.
    ``(2) Any information in an assessment under this 
subsection that is relevant to the National Guard of a 
particular State shall also be made available to the Governor 
of that State.
    ``(3) The Secretary shall ensure that each State Governor 
has an opportunity to provide to the Secretary an independent 
evaluation of that State's National Guard, which the Secretary 
shall include with each assessment submitted under this 
subsection.''.
    (c) Effective Date.--
            (1) Annual report on national guard and reserve 
        component equipment.--The amendment made by subsection 
        (a) shall apply with respect to reports submitted after 
        the date of the enactment of this Act.
            (2) Quarterly reports on personnel and unit 
        readiness.--The amendment made by subsection (b) shall 
        apply with respect to the quarterly report required 
        under section 482 of title 10, United States Code, for 
        the second quarter of fiscal year 2009 and each 
        subsequent report required under that section.
    (d) Report on Implementation.--
            (1) In general.--As part of the budget 
        justification materials submitted to Congress in 
        support of the budget of the President for each of 
        fiscal years 2009 and 2010 (as submitted under section 
        1105 of title 31, United States Code), the Secretary of 
        Defense shall submit to the congressional defense 
        committees a report on actions taken by the Secretary 
        to implement the amendments made by this section.
            (2) Elements.--Each report required under paragraph 
        (1) shall include a description of the mechanisms to be 
        utilized by the Secretary for assessing the personnel, 
        equipment, and training readiness of the National 
        Guard, including the standards and measures that will 
        be applied and mechanisms for sharing information on 
        such matters with the Governors of the States.

SEC. 352. ANNUAL REPORT ON PREPOSITIONED MATERIEL AND EQUIPMENT.

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

``Sec. 2229a. Annual report on prepositioned materiel and equipment

    ``(a) Annual Report Required.--Not later than the date of 
the submission of the President's budget request for a fiscal 
year under section 1105 of title 31, the Secretary of Defense 
shall submit to the congressional defense committees a report 
on the status of the materiel in the prepositioned stocks as of 
the end of the fiscal year preceding the fiscal year during 
which the report is submitted. Each report shall be 
unclassified and may contain a classified annex. Each report 
shall include the following information:
            ``(1) The level of fill for major end items of 
        equipment and spare parts in each prepositioned set as 
        of the end of the fiscal year covered by the report.
            ``(2) The material condition of equipment in the 
        prepositioned stocks as of the end of such fiscal year, 
        grouped by category or major end item.
            ``(3) A list of major end items of equipment drawn 
        from the prepositioned stocks during such fiscal year 
        and a description of how that equipment was used and 
        whether it was returned to the stocks after being used.
            ``(4) A timeline for completely reconstituting any 
        shortfall in the prepositioned stocks.
            ``(5) An estimate of the amount of funds required 
        to completely reconstitute any shortfall in the 
        prepositioned stocks and a description of the 
        Secretary's plan for carrying out such complete 
        reconstitution.
            ``(6) A list of any operations plan affected by any 
        shortfall in the prepositioned stocks and a description 
        of any action taken to mitigate any risk that such a 
        shortfall may create.
    ``(b) Comptroller General Review.--(1) By not later than 
120 days after the date on which a report is submitted under 
subsection (a), the Comptroller General shall review the report 
and, as the Comptroller General determines appropriate, submit 
to the congressional defense committees any additional 
information that the Comptroller General determines will 
further inform such committees on issues relating to the status 
of the materiel in the prepositioned stocks.
    ``(2) The Secretary of Defense shall ensure the full 
cooperation of the Department of Defense with the Comptroller 
General for purposes of the conduct of the review required by 
this subsection, both before and after each report is submitted 
under subsection (a). The Secretary shall conduct periodic 
briefings for the Comptroller General on the information 
covered by each report required under subsection (a) and 
provide to the Comptroller General access to the data and 
preliminary results to be used by the Secretary in preparing 
each such report before the Secretary submits the report to 
enable the Comptroller General to conduct each review required 
under paragraph (1) in a timely manner.
    ``(3) The requirement to conduct a review under this 
subsection shall terminate on September 30, 2015.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``2229a. Annual report on prepositioned materiel and equipment.''.

SEC. 353. REPORT ON INCREMENTAL COST OF EARLY 2007 ENHANCED DEPLOYMENT.

    Section 323(b)(2) of the John Warner National Defense 
Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 
Stat. 2146; 10 U.S.C. 229 note) is amended--
            (1) in subparagraph (A), by striking ``; and'' and 
        inserting a semicolon;
            (2) in subparagraph (B), by striking the period at 
        the end and inserting ``; and''; and
            (3) by adding at the end the following new 
        subparagraph:
                    ``(C) each of the military departments for 
                the incremental changes in reset costs 
                resulting from the deployment and redeployment 
                of forces to Iraq and Afghanistan above the 
                levels deployed to such countries on January 1, 
                2007.''.

SEC. 354. MODIFICATION OF REQUIREMENTS OF COMPTROLLER GENERAL REPORT ON 
                    THE READINESS OF ARMY AND MARINE CORPS GROUND 
                    FORCES.

    (a) Submittal Date.--Subsection (a)(1) of section 345 of 
the John Warner National Defense Authorization Act for Fiscal 
Year 2007 (Public Law 109-364; 120 Stat. 2156) is amended by 
striking ``June 1, 2007'' and inserting ``June 1, 2008''.
    (b) Elements.--Subsection (b) of such section is amended--
            (1) by striking paragraph (2);
            (2) by redesignating paragraphs (3) through (7) as 
        paragraphs (4) through (8), respectively; and
            (3) by inserting after paragraph (1) the following 
        new paragraphs:
            ``(2) An assessment of the ability of the Army and 
        Marine Corps to provide trained and ready forces to 
        meet the requirements of increased force levels in 
        support of Operation Iraqi Freedom and Operation 
        Enduring Freedom above such force levels in effect on 
        January 1, 2007, and to meet the requirements of other 
        ongoing operations simultaneously with such increased 
        force levels.
            ``(3) An assessment of the strategic depth of the 
        Army and Marine Corps and their ability to provide 
        trained and ready forces to meet the requirements of 
        the high-priority contingency war plans of the regional 
        combatant commands, including an identification and 
        evaluation for each such plan of--
                    ``(A) the strategic and operational risks 
                associated with current and projected forces of 
                current and projected readiness;
                    ``(B) the time required to make forces 
                available and prepare them for deployment; and
                    ``(C) likely strategic tradeoffs necessary 
                to meet the requirements of each such plan.''.
    (c) Department of Defense Cooperation.--Such section is 
further amended--
            (1) by redesignating subsection (c) as subsection 
        (d); and
            (2) by inserting after subsection (b) the following 
        new subsection (c):
    ``(c) Department of Defense Cooperation.--The Secretary of 
Defense shall ensure the full cooperation of the Department of 
Defense with the Comptroller General for purposes of the 
preparation of the report required by this section.''.

SEC. 355. PLAN TO IMPROVE READINESS OF GROUND FORCES OF ACTIVE AND 
                    RESERVE COMPONENTS.

    (a) Report Required.--At the same time that the budget is 
submitted under section 1105(a) of title 31, United States 
Code, for a fiscal year, the Secretary of Defense shall submit 
to the congressional defense committees a report on improving 
the readiness of the ground forces of active and reserve 
components of the Armed Forces. Each such report shall 
include--
            (1) a summary of the readiness of each reporting 
        unit of the ground forces of the active and reserve 
        components and a summary of the readiness of each major 
        combat unit of each Armed Force by readiness level;
            (2) an identification of the extent to which the 
        actual readiness ratings of the active and reserve 
        components of the Armed Forces have been upgraded based 
        on the judgment of commanders and any efforts of the 
        Secretary of Defense to analyze the trends and 
        implications of such upgrades;
            (3) the goals of the Secretary of Defense for 
        managing the readiness of the ground forces of the 
        active and reserve components, expressed in terms of 
        the number of units or percentage of the force that the 
        Secretary plans to maintain at each level of readiness, 
        and the Secretary's projected timeframe for achieving 
        each such goal;
            (4) a prioritized list of items and actions to be 
        accomplished during the fiscal year during which the 
        report is submitted, and during the fiscal years 
        covered by the future-years defense program, that the 
        Secretary of Defense believes are necessary to 
        significantly improve the readiness of the ground 
        forces of the active and reserve components and achieve 
        the goals and timeframes described in paragraph (3); 
        and
            (5) a detailed investment strategy and plan for 
        each fiscal year covered by the future-years defense 
        program under section 221 of title 10, United States 
        Code, that is submitted during the fiscal year in which 
        the report is submitted, that outlines the resources 
        required to improve the readiness of the ground forces 
        of the active and reserve components, including a 
        description of how each resource identified in such 
        plan relates to funding requested by the Secretary in 
        the Secretary's annual budget, and how each such 
        resource will specifically enable the Secretary to 
        achieve the readiness goals described in paragraph (3) 
        within the projected timeframes.
    (b) Comptroller General Review.--By not later than 60 days 
after the date on which a report is submitted under subsection 
(a), the Comptroller General shall review the report and, as 
the Comptroller General determines appropriate, submit to the 
congressional defense committees any additional information 
that the Comptroller General determines will further inform the 
congressional defense committees on issues relating to the 
readiness of the ground forces of the active and reserve 
components of the Armed Forces.
    (c) Termination.--The requirement to submit a report under 
subsection (a) shall terminate on the date the Secretary of 
Defense submits the fifth report required under that 
subsection.

SEC. 356. INDEPENDENT ASSESSMENT OF CIVIL RESERVE AIR FLEET VIABILITY.

    (a) Independent Assessment Required.--The Secretary of 
Defense shall provide for an independent assessment of the 
viability of the Civil Reserve Air Fleet to be conducted by a 
federally-funded research and development center selected by 
the Secretary.
    (b) Contents of Assessment.--The assessment required by 
subsection (a) shall include each of the following:
            (1) An assessment of the Civil Reserve Air Fleet as 
        of the date of the enactment of this Act, including an 
        assessment of--
                    (A) the level of increased use of 
                commercial assets to fulfill Department of 
                Defense transportation requirements as a result 
                of the increased global mobility requirements 
                in response to the terrorist attacks of 
                September 11, 2001;
                    (B) the extent of charter air carrier 
                participation in fulfilling increased 
                Department of Defense transportation 
                requirements as a result of the increased 
                global mobility requirements in response to the 
                terrorist attacks of September 11, 2001;
                    (C) any policy of the Secretary of Defense 
                to limit the percentage of income a single air 
                carrier participating in the Civil Reserve Air 
                Fleet may earn under contracts with the 
                Secretary during any calendar year and the 
                effects of such policy on the air carrier 
                industry in peacetime and during periods during 
                which the Armed Forces are deployed in support 
                of a contingency operation for which the Civil 
                Reserve Air Fleet is not activated; and
                    (D) any risks to the charter air carrier 
                industry as a result of the expansion of the 
                industry in response to contingency operations 
                resulting in increased demand by the Department 
                of Defense.
            (2) A strategic assessment of the viability of the 
        Civil Reserve Air Fleet that compares such viability as 
        of the date of the enactment of this Act with the 
        projected viability of the Civil Reserve Air Fleet 
        five, ten, and 15 years after the date of the enactment 
        of this Act, including for activations at each of 
        stages 1, 2, and 3--
                    (A) an examination of the requirements of 
                the Department of Defense for the Civil Reserve 
                Air Fleet for the support of operational and 
                contingency plans, including any anticipated 
                changes in the Department's organic airlift 
                capacity, logistics concepts, and personnel and 
                training requirements;
                    (B) an assessment of air carrier 
                participation in the Civil Reserve Air Fleet; 
                and
                    (C) a comparison between the requirements 
                of the Department described in subparagraph (A) 
                and air carrier participation described in 
                subparagraph (B).
            (3) An examination of any perceived barriers to 
        Civil Reserve Air Fleet viability, including--
                    (A) the operational planning system of the 
                Civil Reserve Air Fleet;
                    (B) the reward system of the Civil Reserve 
                Air Fleet;
                    (C) the long-term affordability of the 
                Aviation War Risk Insurance Program;
                    (D) the effect on United States air 
                carriers operating overseas routes during 
                periods of Civil Reserve Air Fleet activation;
                    (E) increased foreign ownership of United 
                States air carriers;
                    (F) increased operational costs during 
                activation as a result of hazardous duty pay, 
                routing delays, and inefficiencies in cargo 
                handling by the Department of Defense;
                    (G) the effect of policy initiatives by the 
                Secretary of Transportation to encourage 
                international code sharing and alliances; and
                    (H) the effect of limitations imposed by 
                the Secretary of Defense to limit commercial 
                shipping options for certain routes and package 
                sizes.
            (4) Recommendations for improving the Civil Reserve 
        Air Fleet program, including an assessment of potential 
        incentives for increasing participation in the Civil 
        Reserve Air Fleet program, including establishing a 
        minimum annual purchase amount during peacetime.
    (c) Submission to Congress.--Upon the completion of the 
assessment required under subsection (a) and by not later than 
April 1, 2008, the Secretary shall submit to the congressional 
defense committees a report on the assessment.
    (d) Comptroller General Report.--Not later than 90 days 
after the report is submitted under subsection (c), the 
Comptroller General shall conduct a review of the assessment 
required under subsection (a).

SEC. 357. DEPARTMENT OF DEFENSE INSPECTOR GENERAL REPORT ON PHYSICAL 
                    SECURITY OF DEPARTMENT OF DEFENSE INSTALLATIONS.

    (a) Report.--Not later than one year after the date of the 
enactment of this Act, the Inspector General of the Department 
of Defense shall submit to Congress a report on the physical 
security of Department of Defense installations and resources.
    (b) Elements.--The report required by subsection (a) shall 
include the following:
            (1) An analysis of the progress in implementing 
        requirements under the Physical Security Program as set 
        forth in the Department of Defense Instruction 5200.08-
        R, Chapter 2 (C.2) and Chapter 3, Section 3: 
        Installation Access (C3.3), which mandates the policies 
        and minimum standards for the physical security of 
        Department of Defense installations and resources.
            (2) Recommendations based on the findings of the 
        Comptroller General of the United States in the report 
        required by section 344 of the John Warner National 
        Defense Authorization Act for Fiscal Year 2007 (Public 
        Law 109-366; 120 Stat. 2155).
            (3) Recommendations based on the lessons learned 
        from the thwarted plot to attack Fort Dix, New Jersey, 
        in 2007.

SEC. 358. REVIEW OF HIGH-ALTITUDE AVIATION TRAINING.

    (a) Review Required.--The Secretary of the Defense shall 
conduct a review of the training requirements of the Department 
of Defense for helicopter operations in high-altitude or power-
limited conditions.
    (b) Content.--The review required under subsection (a) 
shall include an examination of--
            (1) power-management and high-altitude training 
        requirements by military department, helicopter, and 
        crew position;
            (2) training methods and locations currently used 
        by each of the military departments to fulfill those 
        training requirements;
            (3) department or service regulations that prohibit 
        or inhibit joint-service or inter-service high-altitude 
        aviation training;
            (4) costs for each of the previous five years 
        associated with transporting aircraft to and from the 
        High-Altitude Aviation Training Site, Gypsum, Colorado, 
        for training purposes;
            (5) potential risk avoidance and reductions in 
        accident rates due to power management if training of 
        the type offered at the High-Altitude Aviation Training 
        Site was required training, rather than optional 
        training; and
            (6) potential cost savings and operational 
        benefits, if any, of permanently stationing no less 
        than 4 UH-60, 2 CH-47, and 2 LUH-72 aircraft at the 
        High-Altitude Aviation Training Site, Gypsum, Colorado.
    (c) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall submit to the 
congressional defense committees a report on the conduct and 
findings of the review required under subsection (a) along with 
a summary of changes to policy, regulation, or asset allocation 
necessary to ensure that Department of Defense helicopter 
aircrews are adequately trained in high-altitude or power-
limited flying conditions prior to being exposed to such 
conditions operationally.

SEC. 359. REPORTS ON SAFETY MEASURES AND ENCROACHMENT ISSUES AND MASTER 
                    PLAN FOR WARREN GROVE GUNNERY RANGE, NEW JERSEY.

    (a) Annual Report on Safety Measures.--Not later than March 
1, 2008, and annually thereafter for two additional years, the 
Secretary of the Air Force shall submit to the congressional 
defense committees a report on efforts made by all of the 
military departments utilizing the Warren Grove Gunnery Range, 
New Jersey, to provide the highest level of safety.
    (b) Master Plan for Warren Grove Gunnery Range.--
            (1) In general.--Not later than 180 days after the 
        date of the enactment of this Act, the Secretary of the 
        Air Force shall submit to the congressional defense 
        committees a master plan for Warren Grove Gunnery 
        Range.
            (2) Content.--The master plan required under 
        paragraph (1) shall include measures to mitigate 
        encroachment of the Warren Grove Gunnery Range, taking 
        into consideration military mission requirements, land 
        use plans, the surrounding community, the economy of 
        the region, and protection of the environment and 
        public health, safety, and welfare.
            (3) Input.--In establishing the master plan 
        required under paragraph (1), the Secretary shall seek 
        input from relevant stakeholders at the Federal, State, 
        and local level.

SEC. 360. REPORT ON SEARCH AND RESCUE CAPABILITIES OF THE AIR FORCE IN 
                    THE NORTHWESTERN UNITED STATES.

    (a) Report.--Not later than April 1, 2008, the Secretary of 
the Air Force shall submit to the appropriate congressional 
committees a report on the search and rescue capabilities of 
the Air Force in the northwestern United States.
    (b) Content.--The report required under subsection (a) 
shall include the following:
            (1) An assessment of the search and rescue 
        capabilities required to support Air Force operations 
        and training.
            (2) A description of the compliance of the Air 
        Force with the 1999 United States National Search and 
        Rescue Plan (referred to hereinafter in this section as 
        the ``NSRP'') for Washington, Oregon, Idaho, and 
        Montana.
            (3) An inventory and description of the search and 
        rescue assets of the Air Force that are available to 
        meet the requirements of the NSRP.
            (4) A description of the use of such search and 
        rescue assets during the three-year period preceding 
        the date when the report is submitted.
            (5) The plans of the Air Force to meet current and 
        future search and rescue requirements in the 
        northwestern United States, including plans that take 
        into consideration requirements related to support for 
        both Air Force operations and training and compliance 
        with the NSRP.
            (6) An inventory of other search and rescue 
        capabilities equivalent to such capabilities provided 
        by the Air Force that may be provided by other Federal, 
        State, or local agencies in the northwestern United 
        States.
    (c) Use of Report for Purposes of Certification Regarding 
Search and Rescue Capabilities.--Section 1085 of the Ronald W. 
Reagan National Defense Authorization Act for Fiscal Year 2005 
(Public Law 108-375; 118 Stat. 2065; 10 U.S.C. 113 note) is 
amended by striking ``unless the Secretary first certifies'' 
and inserting ``unless the Secretary, after reviewing the 
search and rescue capabilities report prepared by the Secretary 
of the Air Force under subsection (a), first certifies''.
    (d) Appropriate Congressional Committees Defined.--In this 
section, the term ``appropriate congressional committees'' 
means--
            (1) the Committee on Armed Services, the Committee 
        on Homeland Security and Governmental Affairs, the 
        Committee on Commerce, Science, and Transportation, the 
        Committee on Energy and Natural Resources, and the 
        Committee on Appropriations of the Senate; and
            (2) the Committee on Armed Services, the Committee 
        on Homeland Security, the Committee on Energy and 
        Commerce, the Committee on Natural Resources, and the 
        Committee on Appropriations of the House of 
        Representatives.

SEC. 361. REPORT AND MASTER INFRASTRUCTURE RECAPITALIZATION PLAN FOR 
                    CHEYENNE MOUNTAIN AIR STATION, COLORADO.

    (a) Report on Relocation of North American Aerospace 
Defense Command Center.--
            (1) In general.--Not later than March 1, 2008, the 
        Secretary of Defense shall submit to Congress a report 
        on the relocation of the North American Aerospace 
        Defense Command center and related functions from 
        Cheyenne Mountain Air Station, Colorado, to Peterson 
        Air Force Base, Colorado.
            (2) Content.--The report required under paragraph 
        (1) shall include--
                    (A) an analysis comparing the total costs 
                associated with the relocation, including costs 
                determined as part of ongoing security-related 
                studies of the relocation, to anticipated 
                operational benefits from the relocation;
                    (B) a detailed explanation of the backup 
                functions that will remain located at Cheyenne 
                Mountain Air Station, and how such functions 
                planned to be transferred out of Cheyenne 
                Mountain Air Station, including the Space 
                Operations Center, will maintain operational 
                connectivity with their related commands and 
                relevant communications centers;
                    (C) the final plans for the relocation of 
                the North American Aerospace Defense Command 
                center and related functions; and
                    (D) the findings and recommendations of an 
                independent security and vulnerability 
                assessment of Peterson Air Force Base carried 
                out by Sandia National Laboratory for the 
                United States Air Force Space Command and the 
                Secretary's plans for mitigating any security 
                and vulnerability risks identified as part of 
                that assessment and associated cost and 
                schedule estimates.
    (b) Limitation on Availability of Funds Pending Receipt of 
Report.--Of the funds appropriated pursuant to an authorization 
of appropriations or otherwise made available for fiscal year 
2008 for operation and maintenance for the Air Force that are 
available for the Cheyenne Mountain Transformation project, 
$5,000,000 may not be obligated or expended until Congress 
receives the report required under subsection (a).
    (c) Comptroller General Review.--Not later than 120 days 
after the date on which the Secretary of Defense submits the 
report required under subsection (a), the Comptroller General 
shall submit to Congress a review of the report and the final 
plans of the Secretary for the relocation of the North American 
Aerospace Defense Command center and related functions.
    (d) Master Infrastructure Recapitalization Plan.--
            (1) In general.--Not later than March 16, 2008, the 
        Secretary of the Air Force shall submit to Congress a 
        master infrastructure recapitalization plan for 
        Cheyenne Mountain Air Station.
            (2) Content.--The plan required under paragraph (1) 
        shall include--
                    (A) a description of the projects that are 
                needed to improve the infrastructure required 
                for supporting missions associated with 
                Cheyenne Mountain Air Station; and
                    (B) a funding plan explaining the expected 
                timetable for the Air Force to support such 
                projects.

                       Subtitle F--Other Matters

SEC. 371. ENHANCEMENT OF CORROSION CONTROL AND PREVENTION FUNCTIONS 
                    WITHIN DEPARTMENT OF DEFENSE.

    (a) Office of Corrosion Policy and Oversight.--
            (1) In general.--Section 2228 of title 10, United 
        States Code, is amended by striking the section heading 
        and subsection (a) and inserting the following:

``Sec. 2228. Office of Corrosion Policy and Oversight

    ``(a) Office and Director.--(1) There is an Office of 
Corrosion Policy and Oversight within the Office of the Under 
Secretary of Defense for Acquisition, Technology, and 
Logistics.
    ``(2) The Office shall be headed by a Director of Corrosion 
Policy and Oversight, who shall be assigned to such position by 
the Under Secretary from among civilian employees of the 
Department of Defense with the qualifications described in 
paragraph (3). The Director is responsible in the Department of 
Defense to the Secretary of Defense (after the Under Secretary 
of Defense for Acquisition, Technology, and Logistics) for the 
prevention and mitigation of corrosion of the military 
equipment and infrastructure of the Department of Defense. The 
Director shall report directly to the Under Secretary.
    ``(3) In order to qualify to be assigned to the position of 
Director, an individual shall--
            ``(A) have management expertise in, and 
        professional experience with, corrosion project and 
        policy implementation, including an understanding of 
        the effects of corrosion policies on infrastructure; 
        research, development, test, and evaluation; and 
        maintenance; and
            ``(B) have an understanding of Department of 
        Defense budget formulation and execution, policy 
        formulation, and planning and program requirements.
    ``(4) The Secretary of Defense shall designate the position 
of Director as a critical acquisition position under section 
1733(b)(1)(C) of this title.''.
            (2) Conforming amendments.--Section 2228(b) of such 
        title is amended--
                    (A) in paragraph (1), by striking 
                ``official or organization designated under 
                subsection (a)'' and inserting ``Director of 
                Corrosion Policy and Oversight (in this section 
                referred to as the `Director')''; and
                    (B) in paragraphs (2), (3), (4), and (5), 
                by striking ``designated official or 
                organization'' and inserting ``Director''.
    (b) Additional Authority for Director of Office.--Section 
2228 of such title is further amended--
            (1) by redesignating subsections (c) and (d) as 
        subsections (d) and (f), respectively; and
            (2) by inserting after subsection (b) the following 
        new subsection:
    ``(c) Additional Authorities for Director.--The Director is 
authorized to--
            ``(1) develop, update, and coordinate corrosion 
        training with the Defense Acquisition University;
            ``(2) participate in the process within the 
        Department of Defense for the development of relevant 
        directives and instructions; and
            ``(3) interact directly with the corrosion 
        prevention industry, trade associations, other 
        government corrosion prevention agencies, academic 
        research and educational institutions, and scientific 
        organizations engaged in corrosion prevention, 
        including the National Academy of Sciences.''.
    (c) Inclusion of Cooperative Research Agreements as Part of 
Corrosion Reduction Strategy.--Subsection (d)(2)(D) of section 
2228 of such title, as redesignated by subsection (b), is 
amended by inserting after ``operational strategies'' the 
following: ``, including through the establishment of memoranda 
of agreement, joint funding agreements, public-private 
partnerships, university research and education centers, and 
other cooperative research agreements''.
    (d) Report Requirement.--Section 2228 of such title is 
further amended by inserting after subsection (d) (as 
redesignated by subsection (b)) the following new subsection:
    ``(e) Report.--(1) For each budget for a fiscal year, 
beginning with the budget for fiscal year 2009, the Secretary 
of Defense shall submit, with the defense budget materials, a 
report on the following:
            ``(A) Funding requirements for the long-term 
        strategy developed under subsection (d).
            ``(B) The return on investment that would be 
        achieved by implementing the strategy.
            ``(C) The funds requested in the budget compared to 
        the funding requirements.
            ``(D) An explanation if the funding requirements 
        are not fully funded in the budget.
    ``(2) Within 60 days after submission of the budget for a 
fiscal year, the Comptroller General shall provide to the 
congressional defense committees--
            ``(A) an analysis of the budget submission for 
        corrosion control and prevention by the Department of 
        Defense; and
            ``(B) an analysis of the report required under 
        paragraph (1).''.
    (e) Definitions.--Subsection (f) of section 2228 of such 
title, as redesignated by subsection (b), is amended by adding 
at the end the following new paragraphs:
            ``(4) 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.
            ``(5) 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.''.
    (f) Clerical Amendment.--The table of sections at the 
beginning of chapter 131 of such title is amended by striking 
the item relating to section 2228 and inserting the following 
new item:

``2228. Office of Corrosion Policy and Oversight.''.

SEC. 372. AUTHORITY FOR DEPARTMENT OF DEFENSE TO PROVIDE SUPPORT FOR 
                    CERTAIN SPORTING EVENTS.

    (a) Provision of Support.--Section 2564 of title 10, United 
States Code, is amended--
            (1) in subsection (c), by adding at the end the 
        following new paragraphs:
            ``(4) A sporting event sanctioned by the United 
        States Olympic Committee through the Paralympic 
        Military Program.
            ``(5) Any national or international paralympic 
        sporting event (other than a sporting event described 
        in paragraphs (1) through (4))--
                    ``(A) that--
                            ``(i) is held in the United States 
                        or any of its territories or 
                        commonwealths;
                            ``(ii) is governed by the 
                        International Paralympic Committee; and
                            ``(iii) is sanctioned by the United 
                        States Olympic Committee;
                    ``(B) for which participation exceeds 100 
                amateur athletes; and
                    ``(C) in which at least 10 percent of the 
                athletes participating in the sporting event 
                are members or former members of the armed 
                forces who are participating in the sporting 
                event based upon an injury or wound incurred in 
                the line of duty in the armed force and 
                veterans who are participating in the sporting 
                event based upon a service-connected 
                disability.''; and
            (2) by adding at the end the following new 
        subsection:
    ``(g) Funding for Support of Certain Events.--(1) Amounts 
for the provision of support for a sporting event described in 
paragraph (4) or (5) of subsection (c) may be derived from the 
Support for International Sporting Competitions, Defense 
account established by section 5802 of the Omnibus Consolidated 
Appropriations Act, 1997 (Public Law 104-208; 10 U.S.C. 2564 
note), notwithstanding any limitation under that section 
relating to the availability of funds in such account for the 
provision of support for international sporting competitions.
    ``(2) The total amount expended for any fiscal year to 
provide support for sporting events described in subsection 
(c)(5) may not exceed $1,000,000.''.
    (b) Source of Funds.--Section 5802 of the Omnibus 
Consolidated Appropriations Act, 1997 (Public Law 104-208; 10 
U.S.C. 2564 note) is amended--
            (1) by inserting after ``international sporting 
        competitions'' the following: ``and for support of 
        sporting competitions authorized under section 
        2564(c)(4) and (5), of title 10, United States Code,''; 
        and
            (2) by striking ``45 days'' and inserting ``15 
        days''.

SEC. 373. AUTHORITY TO IMPOSE REASONABLE RESTRICTIONS ON PAYMENT OF 
                    FULL REPLACEMENT VALUE FOR LOST OR DAMAGED PERSONAL 
                    PROPERTY TRANSPORTED AT GOVERNMENT EXPENSE.

    Section 2636a(d) of title 10, United States Code, is 
amended by adding at the end the following new sentence: ``The 
regulations may include a requirement that a member of the 
armed forces or civilian employee of the Department of Defense 
comply with reasonable restrictions or conditions prescribed by 
the Secretary in order to receive the full amount deducted 
under subsection (b).''.

SEC. 374. PRIORITY TRANSPORTATION ON DEPARTMENT OF DEFENSE AIRCRAFT OF 
                    RETIRED MEMBERS RESIDING IN COMMONWEALTHS AND 
                    POSSESSIONS OF THE UNITED STATES FOR CERTAIN HEALTH 
                    CARE SERVICES.

    (a) Availability of Transportation.--Chapter 157 of title 
10, United States Code, is amended by inserting after section 
2641a the following new section:

``Sec. 2641b. Space-available travel on Department of Defense aircraft: 
                    retired members residing in Commonwealths and 
                    possessions of the United States for certain health 
                    care services

    ``(a) Priority Transportation.--The Secretary of Defense 
shall provide transportation on Department of Defense aircraft 
on a space-available basis for any member or former member of 
the uniformed services described in subsection (b), and a 
single dependent of the member if needed to accompany the 
member, at a priority level in the same category as the 
priority level for an unaccompanied dependent over the age of 
18 traveling on environmental and morale leave.
    ``(b) Eligible Members and Former Members.--A member or 
former member eligible for priority transport under subsection 
(a) is a covered beneficiary under chapter 55 of this title 
who--
            ``(1) is entitled to retired or retainer pay;
            ``(2) resides in or is located in a Commonwealth or 
        possession of the United States; and
            ``(3) is referred by a military or civilian primary 
        care provider located in that Commonwealth or 
        possession to a specialty care provider for services to 
        be provided outside of that Commonwealth or possession.
    ``(c) Scope of Priority.--The increased priority for space-
available transportation required by subsection (a) applies 
with respect to both--
            ``(1) the travel from the Commonwealth or 
        possession of the United States to receive the 
        specialty care services; and
            ``(2) the return travel.
    ``(d) Definitions.--In this section, the terms `primary 
care provider' and `specialty care provider' refer to a medical 
or dental professional who provides health care services under 
chapter 55 of this title.
    ``(e) Regulations.--The Secretary of Defense shall 
prescribe regulations to implement 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 2641a the following new item:

``2641b. Space-available travel on Department of Defense aircraft: 
          retired members residing in Commonwealths and possessions of 
          the United States for certain health care services.''.

SEC. 375. RECOVERY OF MISSING MILITARY PROPERTY.

    (a) In General.--Chapter 165 of title 10, United States 
Code, is amended by adding at the end the following new 
sections:

``Sec. 2788. Property accountability: regulations

    ``The Secretary of a military department may prescribe 
regulations for the accounting for the property of that 
department and the fixing of responsibility for that property.

``Sec. 2789. Individual equipment: unauthorized disposition

    ``(a) Prohibition.--No member of the armed forces may sell, 
lend, pledge, barter, or give any clothing, arms, or equipment 
furnished to such member by the United States to any person 
other than a member of the armed forces or an officer of the 
United States who is authorized to receive it.
    ``(b) Seizure of Improperly Disposed Property.--If a member 
of the armed forces has disposed of property in violation of 
subsection (a) and the property is in the possession of a 
person who is neither a member of the armed forces nor an 
officer of the United States who is authorized to receive it, 
that person has no right to or interest in the property, and 
any civil or military officer of the United States may seize 
the property, wherever found, subject to applicable 
regulations. Possession of such property furnished by the 
United States to a member of the armed forces by a person who 
is neither a member of the armed forces, nor an officer of the 
United States, is prima facie evidence that the property has 
been disposed of in violation of subsection (a).
    ``(c) Delivery of Seized Property.--If an officer who 
seizes property under subsection (b) is not authorized to 
retain it for the United States, the officer shall deliver the 
property to a person who is authorized to retain it.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new items:

``2788. Property accountability: regulations.
``2789. Individual equipment: unauthorized disposition.''.

    (c) Conforming Amendments.--
            (1) In general.--Such title is further amended by 
        striking the following sections:
                    (A) Section 4832.
                    (B) Section 4836.
                    (C) Section 9832.
                    (D) Section 9836.
            (2) Clerical amendments.--
                    (A) Chapter 453.--The table of sections at 
                the beginning of chapter 453 of such title is 
                amended by striking the items relating to 
                sections 4832 and 4836.
                    (B) Chapter 953.--The table of sections at 
                the beginning of chapter 953 of such title is 
                amended by striking the items relating to 
                sections 9832 and 9836.

SEC. 376. RETENTION OF COMBAT UNIFORMS BY MEMBERS OF THE ARMED FORCES 
                    DEPLOYED IN SUPPORT OF CONTINGENCY OPERATIONS.

    (a) Retention of Combat Uniforms.--Chapter 152 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 2568. Retention of combat uniforms by members deployed in 
                    support of contingency operations

    ``The Secretary of a military department may authorize a 
member of the armed forces under the jurisdiction of the 
Secretary who has been deployed in support of a contingency 
operation for at least 30 days to retain, after that member is 
no longer so deployed, the combat uniform issued to that member 
as organizational clothing and individual equipment.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``2568. Retention of combat uniforms by members deployed in support of 
          contingency operations.''.

SEC. 377. ISSUE OF SERVICEABLE MATERIAL OF THE NAVY OTHER THAN TO ARMED 
                    FORCES.

    (a) In General.--Part IV of subtitle C of title 10, United 
States Code, is amended by adding at the end the following new 
chapter:

``CHAPTER 667--ISSUE OF SERVICEABLE MATERIAL OTHER THAN TO ARMED FORCES

``Sec.
``7911. Arms, tentage, and equipment: educational institutions not 
          maintaining units of R.O.T.C.
``7912. Rifles and ammunition for target practice: educational 
          institutions having corps of midshipmen.
``7913. Supplies: military instruction camps.

``Sec. 7911. Arms, tentage, and equipment: educational institutions not 
                    maintaining units of R.O.T.C.

    ``Under such conditions as he may prescribe, the Secretary 
of the Navy may issue arms, tentage, and equipment that the 
Secretary considers necessary for proper military training, to 
any educational institution at which no unit of the Reserve 
Officers' Training Corps is maintained, but which has a course 
in military training prescribed by the Secretary and which has 
at least 50 physically fit students over 14 years of age.

``Sec. 7912. Rifles and ammunition for target practice: educational 
                    institutions having corps of midshipmen

    ``(a) Authority To Lend.--The Secretary of the Navy may 
lend, without expense to the United States, magazine rifles and 
appendages that are not of the existing service models in use 
at the time and that are not necessary for a proper reserve 
supply, to any educational institution having a uniformed corps 
of midshipmen of sufficient number for target practice. The 
Secretary may also issue 40 rounds of ball cartridges for each 
midshipman for each range at which target practice is held, but 
not more than 120 rounds each year for each midshipman 
participating in target practice.
    ``(b) Responsibilities of Institutions.--The institutions 
to which property is lent under subsection (a) shall--
            ``(1) use the property for target practice;
            ``(2) take proper care of the property; and
            ``(3) return the property when required.
    ``(c) Regulations.--The Secretary of the Navy shall 
prescribe regulations to carry out this section, containing 
such other requirements as he considers necessary to safeguard 
the interests of the United States.

``Sec. 7913. Supplies: military instruction camps

    ``Under such conditions as he may prescribe, the Secretary 
of the Navy may issue, to any educational institution at which 
an officer of the naval service is detailed as professor of 
naval science, such supplies as are necessary to establish and 
maintain a camp for the military instruction of its students. 
The Secretary shall require a bond in the value of the property 
issued under this section, for the care and safekeeping of that 
property and except for property properly expended, for its 
return when required.''.
    (b) Clerical Amendment.--The table of chapters at the 
beginning of subtitle C of such title, and the table of 
chapters at the beginning of part IV of such subtitle, are each 
amended by inserting after the item relating to chapter 665 the 
following new item:

``667. Issue of serviceable material other than to Armed Forces.7911.''.

SEC. 378. REAUTHORIZATION OF AVIATION INSURANCE PROGRAM.

    Section 44310 of title 49, United States Code, is amended 
by striking ``March 30, 2008'' and inserting ``December 31, 
2013''.

              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 2009 and 2010.
Sec. 404. Increase in authorized strengths for Army officers on active 
          duty in the grade of major.
Sec. 405. Increase in authorized strengths for Navy officers on active 
          duty in the grades of lieutenant commander, commander, and 
          captain.
Sec. 406. Increase in authorized daily average of number of members in 
          pay grade E-9.

                       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 2008 limitation on number of non-dual status 
          technicians.
Sec. 415. Maximum number of reserve personnel authorized to be on active 
          duty for operational support.
Sec. 416. Future authorizations and accounting for certain reserve 
          component personnel authorized to be on active duty or full-
          time National Guard duty to provide operational support.
Sec. 417. Revision of variances authorized for Selected Reserve end 
          strengths.

               Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.

                       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, 2008, as follows:
            (1) The Army, 525,400.
            (2) The Navy, 329,098.
            (3) The Marine Corps, 189,000.
            (4) The Air Force, 329,563.
    (b) Limitation.--
            (1) Army.--The authorized strength for the Army 
        provided in paragraph (1) of subsection (a) for active 
        duty personnel for fiscal year 2008 is subject to the 
        condition that costs of active duty personnel of the 
        Army for that fiscal year in excess of 489,400 shall be 
        paid out of funds authorized to be appropriated for 
        that fiscal year by section 1514.
            (2) Marine corps.--The authorized strength for the 
        Marine Corps provided in paragraph (3) of subsection 
        (a) for active duty personnel for fiscal year 2008 is 
        subject to the condition that costs of active duty 
        personnel of the Marine Corps for that fiscal year in 
        excess of 180,000 shall be paid out of funds authorized 
        to be appropriated for that fiscal year by section 
        1514.

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 new paragraphs:
            ``(1) For the Army, 525,400.
            ``(2) For the Navy, 328,400.
            ``(3) For the Marine Corps, 189,000.
            ``(4) For the Air Force, 328,600.''.

SEC. 403. ADDITIONAL AUTHORITY FOR INCREASES OF ARMY AND MARINE CORPS 
                    ACTIVE DUTY END STRENGTHS FOR FISCAL YEARS 2009 AND 
                    2010.

    (a) Authority to Increase Army Active Duty End Strengths.--
For each of fiscal years 2009 and 2010, the Secretary of 
Defense may, as the Secretary determines necessary for the 
purposes described in subsection (c), 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 2008 baseline plus 22,000.
    (b) Marine Corps.--For each of fiscal years 2009 and 2010, 
the Secretary of Defense may, as the Secretary determines 
necessary for the purposes described in subsection (c), 
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 2008 baseline plus 
13,000.
    (c) Purpose of Increases.--The purposes for which increases 
may be made in Army and Marine Corps active duty end strengths 
under this section are--
            (1) to support operational missions; and
            (2) 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.
    (d) 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.
    (e) Relationship to Other Variance Authority.--The 
authority under this section 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.
    (f) Budget Treatment.--
            (1) Fiscal years 2009 and 2010 budgets.--The budget 
        for the Department of Defense for fiscal years 2009 and 
        2010 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 this section, 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 2008 active duty 
        end strength authorized for that service under section 
        401.
    (g) Definitions.--In this section:
            (1) Fiscal-year 2008 baseline.--The term ``fiscal-
        year 2008 baseline'', with respect to the Army and 
        Marine Corps, means the active-duty end strength 
        authorized for those services in section 401.
            (2) 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.
    (h) Repeal of Other Discretionary Authority to Temporarily 
Increase Army and Marine Corps Active Duty End Strengths.--
Section 403 of the Ronald W. Reagan National Defense 
Authorization Act for Fiscal Year 2005 (Public Law 108-375; 10 
U.S.C. 115 note), as amended by section 403 of the John Warner 
National Defense Authorization Act for Fiscal Year 2007 (Public 
Law 109-364; 120 Stat. 2169), is repealed.

SEC. 404. INCREASE IN AUTHORIZED STRENGTHS FOR ARMY OFFICERS ON ACTIVE 
                    DUTY IN THE GRADE OF MAJOR.

    The portion of the table in section 523(a)(1) of title 10, 
United States Code, relating to the Army is amended to read as 
follows:


------------------------------------------------------------------------
``Total number of commissioned  Number of officers who may be serving on
 officers (excluding officers           active duty in grade of:
  in categories specified in   -----------------------------------------
   subsection (b)) on active                   Lieutenant
             duty:                  Major        Colonel       Colonel
------------------------------------------------------------------------
  Army:
  20,000                              7,768         5,253         1,613
  25,000                              8,689         5,642         1,796
  30,000                              9,611         6,030         1,980
  35,000                             10,532         6,419         2,163
  40,000                             11,454         6,807         2,347
  45,000                             12,375         7,196         2,530
  50,000                             13,297         7,584         2,713
  55,000                             14,218         7,973         2,897
  60,000                             15,140         8,361         3,080
  65,000                             16,061         8,750         3,264
  70,000                             16,983         9,138         3,447
  75,000                             17,903         9,527         3,631
  80,000                             18,825         9,915         3,814
  85,000                             19,746        10,304         3,997
  90,000                             20,668        10,692         4,181
  95,000                             21,589        11,081         4,364
  100,000                            22,511        11,469         4,548
  110,000                            24,354        12,246         4,915
  120,000                            26,197        13,023         5,281
  130,000                            28,040        13,800         5,648
  170,000                            35,412        16,908      7,116''.
------------------------------------------------------------------------

SEC. 405. INCREASE IN AUTHORIZED STRENGTHS FOR NAVY OFFICERS ON ACTIVE 
                    DUTY IN THE GRADES OF LIEUTENANT COMMANDER, 
                    COMMANDER, AND CAPTAIN.

    The table in section 523(a)(2) of title 10, United States 
Code, is amended to read as follows:


------------------------------------------------------------------------
``Total number of commissioned  Number of officers who may be serving on
 officers (excluding officers           active duty in grade of:
  in categories specified in   -----------------------------------------
   subsection (b)) on active     Lieutenant
             duty:                Commander     Commander      Captain
------------------------------------------------------------------------
  Navy:
  30,000                              7,698         5,269         2,222
  33,000                              8,189         5,501         2,334
  36,000                              8,680         5,733         2,447
  39,000                              9,172         5,965         2,559
  42,000                              9,663         6,197         2,671
  45,000                             10,155         6,429         2,784
  48,000                             10,646         6,660         2,896
  51,000                             11,136         6,889         3,007
  54,000                             11,628         7,121         3,120
  57,000                             12,118         7,352         3,232
  60,000                             12,609         7,583         3,344
  63,000                             13,100         7,813         3,457
  66,000                             13,591         8,044         3,568
  70,000                             14,245         8,352         3,718
  90,000                             17,517         9,890      4,467''.
------------------------------------------------------------------------

SEC. 406. INCREASE IN AUTHORIZED DAILY AVERAGE OF NUMBER OF MEMBERS IN 
                    PAY GRADE E-9.

    Section 517(a) of title 10, United States Code, is amended 
by striking ``1 percent'' and inserting ``1.25 percent''.

                       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, 2008, as follows:
            (1) The Army National Guard of the United States, 
        351,300.
            (2) The Army Reserve, 205,000.
            (3) The Navy Reserve, 67,800.
            (4) The Marine Corps Reserve, 39,600.
            (5) The Air National Guard of the United States, 
        106,700.
            (6) The Air Force Reserve, 67,500.
            (7) The Coast Guard Reserve, 10,000.
    (b) End Strength Reductions.--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.
    (c) End Strength Increases.--Whenever units or individual 
members of the Selected Reserve of any reserve component 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, 2008, 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, 
        29,204.
            (2) The Army Reserve, 15,870.
            (3) The Navy Reserve, 11,579.
            (4) The Marine Corps Reserve, 2,261.
            (5) The Air National Guard of the United States, 
        13,936.
            (6) The Air Force Reserve, 2,721.

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 2008 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, 8,249.
            (2) For the Army National Guard of the United 
        States, 26,502.
            (3) For the Air Force Reserve, 9,909.
            (4) For the Air National Guard of the United 
        States, 22,553.

SEC. 414. FISCAL YEAR 2008 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, 2008, 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, 2008, 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, 2008, 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 2008, 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.

SEC. 416. FUTURE AUTHORIZATIONS AND ACCOUNTING FOR CERTAIN RESERVE 
                    COMPONENT PERSONNEL AUTHORIZED TO BE ON ACTIVE DUTY 
                    OR FULL-TIME NATIONAL GUARD DUTY TO PROVIDE 
                    OPERATIONAL SUPPORT.

    (a) Review of Operational Support Missions Performed by 
Certain Reserve Component Personnel.--
            (1) Review required.--The Secretary of Defense 
        shall conduct a review of the long-term operational 
        support missions performed by members of the reserve 
        components authorized under section 115(b) of title 10, 
        United States Code, to be on active duty or full-time 
        National Guard duty for the purpose of providing 
        operational support, with the objectives of such review 
        being--
                    (A) minimizing the number of reserve 
                component members who perform such service for 
                a period greater than 1,095 consecutive days, 
                or cumulatively for 1,095 days out of the 
                previous 1,460 days; and
                    (B) determining which long-term operational 
                support missions being performed by such 
                members would more appropriately be performed 
                by members of the Armed Forces on active duty 
                under other provisions of title 10, United 
                States Code, or by full-time support personnel 
                of reserve components.
            (2) Submission of results.--Not later than March 1, 
        2008, the Secretary shall submit to Congress the 
        results of the review, including a description of the 
        adjustments in Department of Defense policy to be 
        implemented as a result of the review and such 
        recommendations for changes in statute, as the 
        Secretary considers to be appropriate.
    (b) Improved Accounting for Reserve Component Personnel 
Providing Operational Support.--Section 115(b) of title 10, 
United States Code, is amended by adding at the end the 
following new paragraph:
    ``(4) As part of the budget justification materials 
submitted by the Secretary of Defense to Congress in support of 
the end strength authorizations required under subparagraphs 
(A) and (B) of subsection (a)(1) for fiscal year 2009 and each 
fiscal year thereafter, the Secretary shall provide the 
following:
            ``(A) The number of members, specified by reserve 
        component, authorized under subparagraphs (A) and (B) 
        of paragraph (1) who were serving on active duty or 
        full-time National Guard duty for operational support 
        beyond each of the limits specified under subparagraphs 
        (A) and (B) of paragraph (2) at the end of the fiscal 
        year preceding the fiscal year for which the budget 
        justification materials are submitted.
            ``(B) The number of members, specified by reserve 
        component, on active duty for operational support who, 
        at the end of the fiscal year for which the budget 
        justification materials are submitted, are projected to 
        be serving on active duty or full-time National Guard 
        duty for operational support beyond such limits.
            ``(C) The number of members, specified by reserve 
        component, on active duty or full-time National Guard 
        duty for operational support who are included in, and 
        counted against, the end strength authorizations 
        requested under subparagraphs (A) and (B) of subsection 
        (a)(1).
            ``(D) A summary of the missions being performed by 
        members identified under subparagraphs (A) and (B).''.

SEC. 417. REVISION OF VARIANCES AUTHORIZED FOR SELECTED RESERVE END 
                    STRENGTHS.

    Section 115(f)(3) of title 10, United States Code, is 
amended by striking ``2 percent'' and inserting ``3 percent''.

              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 
2008 a total of $117,091,420,000. The authorization in the 
preceding sentence supersedes any other authorization of 
appropriations (definite or indefinite) for such purpose for 
fiscal year 2008.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Assignment of officers to designated positions of importance 
          and responsibility.
Sec. 502. Enhanced authority for Reserve general and flag officers to 
          serve on active duty.
Sec. 503. Increase in years of commissioned service threshold for 
          discharge of probationary officers and for use of force 
          shaping authority.
Sec. 504. Mandatory retirement age for active-duty general and flag 
          officers continued on active duty.
Sec. 505. Authority for reduced mandatory service obligation for initial 
          appointments of officers in critically short health 
          professional specialties.
Sec. 506. Expansion of authority for reenlistment of officers in their 
          former enlisted grade.
Sec. 507. Increase in authorized number of permanent professors at the 
          United States Military Academy.
Sec. 508. Promotion of career military professors of the Navy.

                Subtitle B--Reserve Component Management

Sec. 511. Retention of military technicians who lose dual status in the 
          Selected Reserve due to combat-related disability.
Sec. 512. Constructive service credit upon original appointment of 
          Reserve officers in certain health care professions.
Sec. 513. Mandatory separation of Reserve officers in the grade of 
          lieutenant general or vice admiral after completion of 38 
          years of commissioned service.
Sec. 514. Maximum period of temporary Federal recognition of person as 
          Army National Guard officer or Air National Guard officer.
Sec. 515. Advance notice to members of reserve components of deployment 
          in support of contingency operations.
Sec. 516. Report on relief from professional licensure and certification 
          requirements for reserve component members on long-term active 
          duty.

                   Subtitle C--Education and Training

Sec. 521. Revisions to authority to pay tuition for off-duty training or 
          education.
Sec. 522. Reduction or elimination of service obligation in an Army 
          Reserve or Army National Guard troop program unit for certain 
          persons selected as medical students at Uniformed Services 
          University of the Health Sciences.
Sec. 523. Repeal of annual limit on number of ROTC scholarships under 
          Army Reserve and Army National Guard financial assistance 
          program.
Sec. 524. Treatment of prior active service of members in uniformed 
          medical accession programs.
Sec. 525. Repeal of post-2007-2008 academic year prohibition on phased 
          increase in cadet strength limit at the United States Military 
          Academy.
Sec. 526. National Defense University master's degree programs.
Sec. 527. Authority of the Air University to confer degree of master of 
          science in flight test engineering.
Sec. 528. Enhancement of education benefits for certain members of 
          reserve components.
Sec. 529. Extension of period of entitlement to educational assistance 
          for certain members of the Selected Reserve affected by force 
          shaping initiatives.
Sec. 530. Time limit for use of educational assistance benefit for 
          certain members of reserve components and resumption of 
          benefit.
Sec. 531. Secretary of Defense evaluation of the adequacy of the degree-
          granting authorities of certain military universities and 
          educational institutions.
Sec. 532. Report on success of Army National Guard and Reserve Senior 
          Reserve Officers' Training Corps financial assistance program.
Sec. 533. Report on utilization of tuition assistance by members of the 
          Armed Forces.
Sec. 534. Navy Junior Reserve Officers' Training Corps unit for 
          Southold, Mattituck, and Greenport High Schools.
Sec. 535. Report on transfer of administration of certain educational 
          assistance programs for members of the reserve components.

        Subtitle D--Military Justice and Legal Assistance Matters

Sec. 541. Authority to designate civilian employees of the Federal 
          Government and dependents of deceased members as eligible for 
          legal assistance from Department of Defense legal staff 
          resources.
Sec. 542. Authority of judges of the United States Court of Appeals for 
          the Armed Forces to administer oaths.
Sec. 543. Modification of authorities on senior members of the Judge 
          Advocate Generals' Corps.
Sec. 544. Prohibition against members of the Armed Forces participating 
          in criminal street gangs.

                       Subtitle E--Military Leave

Sec. 551. Temporary enhancement of carryover of accumulated leave for 
          members of the Armed Forces.
Sec. 552. Enhancement of rest and recuperation leave.

                   Subtitle F--Decorations and Awards

Sec. 561. Authorization and request for award of Medal of Honor to 
          Leslie H. Sabo, Jr., for acts of valor during the Vietnam War.
Sec. 562. Authorization and request for award of Medal of Honor to Henry 
          Svehla for acts of valor during the Korean War.
Sec. 563. Authorization and request for award of Medal of Honor to 
          Woodrow W. Keeble for acts of valor during the Korean War.
Sec. 564. Authorization and request for award of Medal of Honor to 
          Private Philip G. Shadrach for acts of valor as one of 
          Andrews' Raiders during the Civil War.
Sec. 565. Authorization and request for award of Medal of Honor to 
          Private George D. Wilson for acts of valor as one of Andrews' 
          Raiders during the Civil War.

     Subtitle G--Impact Aid and Defense Dependents Education System

Sec. 571. 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. Impact aid for children with severe disabilities.
Sec. 573. Inclusion of dependents of non-department of Defense employees 
          employed on Federal property in plan relating to force 
          structure changes, relocation of military units, or base 
          closures and realignments.
Sec. 574. Payment of private boarding school tuition for military 
          dependents in overseas areas not served by defense dependents' 
          education system schools.

                      Subtitle H--Military Families

Sec. 581. Department of Defense Military Family Readiness Council and 
          policy and plans for military family readiness.
Sec. 582. Yellow Ribbon Reintegration Program.
Sec. 583. Study to enhance and improve support services and programs for 
          families of members of regular and reserve components 
          undergoing deployment.
Sec. 584. Protection of child custody arrangements for parents who are 
          members of the Armed Forces deployed in support of a 
          contingency operation.
Sec. 585. Family leave in connection with injured members of the Armed 
          Forces.
Sec. 586. Family care plans and deferment of deployment of single parent 
          or dual military couples with minor dependents.
Sec. 587. Education and treatment services for military dependent 
          children with autism.
Sec. 588. Commendation of efforts of Project Compassion in paying 
          tribute to members of the Armed Forces who have fallen in the 
          service of the United States.

                        Subtitle I--Other Matters

Sec. 590. Uniform performance policies for military bands and other 
          musical units.
Sec. 591. Transportation of remains of deceased members of the Armed 
          Forces and certain other persons.
Sec. 592. Expansion of number of academies supportable in any State 
          under STARBASE program.
Sec. 593. Gift acceptance authority.
Sec. 594. Conduct by members of the Armed Forces and veterans out of 
          uniform during hoisting, lowering, or passing of United States 
          flag.
Sec. 595. Annual report on cases reviewed by National Committee for 
          Employer Support of the Guard and Reserve.
Sec. 596. Modification of Certificate of Release or Discharge from 
          Active Duty (DD Form 214).
Sec. 597. Reports on administrative separations of members of the Armed 
          Forces for personality disorder.
Sec. 598. Program to commemorate 50th anniversary of the Vietnam War.
Sec. 599. Recognition of members of the Monuments, Fine Arts, and 
          Archives program of the Civil Affairs and Military Government 
          Sections of the Armed Forces during and following World War 
          II.

                  Subtitle A--Officer Personnel Policy

SEC. 501. ASSIGNMENT OF OFFICERS TO DESIGNATED POSITIONS OF IMPORTANCE 
                    AND RESPONSIBILITY.

    (a) Continuation in Grade While Awaiting Orders.--Section 
601(b) of title 10, United States Code, is amended--
            (1) by striking ``and'' at the end of paragraph 
        (3);
            (2) by redesignating paragraph (4) as paragraph 
        (5); and
            (3) by inserting after paragraph (3) the following 
        new paragraph (4):
            ``(4) at the discretion of the Secretary of 
        Defense, while the officer is awaiting orders after 
        being relieved from the position designated under 
        subsection (a) or by law to carry one of those grades, 
        but not for more than 60 days beginning on the day the 
        officer is relieved from the position, unless, during 
        such period, the officer is placed under orders to 
        another position designated under subsection (a) or by 
        law to carry one of those grades, in which case 
        paragraph (2) will also apply to the officer; and''.
    (b) Conforming Amendment Regarding General and Flag Officer 
Ceilings.--Section 525(e) of such title is amended by striking 
paragraph (2) and inserting the following new paragraph:
            ``(2) At the discretion of the Secretary of 
        Defense, an officer of that armed force who has been 
        relieved from a position designated under section 
        601(a) of this title or by law to carry one of the 
        grades specified in such section, but only during the 
        60-day period beginning on the date on which the 
        assignment of the officer to the first position is 
        terminated or until the officer is assigned to a second 
        such position, whichever occurs first.''.

SEC. 502. ENHANCED AUTHORITY FOR RESERVE GENERAL AND FLAG OFFICERS TO 
                    SERVE ON ACTIVE DUTY.

    Section 526(d) of title 10, United States Code, is 
amended--
            (1) by inserting ``(1)'' before ``The 
        limitations''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) The limitations of this section also do not apply to 
a number, as specified by the Secretary of the military 
department concerned, of reserve component general or flag 
officers authorized to serve on active duty for a period of not 
more than 365 days. The number so specified for an armed force 
may not exceed the number equal to ten percent of the 
authorized number of general or flag officers, as the case may 
be, of that armed force under section 12004 of this title. In 
determining such number, any fraction shall be rounded down to 
the next whole number, except that such number shall be at 
least one.''.

SEC. 503. INCREASE IN YEARS OF COMMISSIONED SERVICE THRESHOLD FOR 
                    DISCHARGE OF PROBATIONARY OFFICERS AND FOR USE OF 
                    FORCE SHAPING AUTHORITY.

    (a) Active-Duty List Officers.--
            (1) Extended probationary period.--Paragraph (1)(A) 
        of section 630 of title 10, United States Code, is 
        amended by striking ``five years'' and inserting ``six 
        years''.
            (2) Section heading.--The heading of such section 
        is amended by striking ``five years'' and inserting 
        ``six years''.
            (3) Table of sections.--The item relating to such 
        section in the table of sections at the beginning of 
        subchapter III of chapter 36 of such title is amended 
        to read as follows:

``630. Discharge of commissioned officers with less than six years of 
          active commissioned service or found not qualified for 
          promotion for first lieutenant or lieutenant (junior 
          grade).''.

    (b) Officer Force Shaping Authority.--Section 647(b)(1) of 
such title is amended by striking ``5 years'' both places it 
appears and inserting ``six years''.
    (c) Reserve Officers.--
            (1) Extended probationary period.--Subsection 
        (a)(1) of section 14503 of such title is amended by 
        striking ``five years'' and inserting ``six years''.
            (2) Section heading.--The heading of such section 
        is amended by striking ``five years'' and inserting 
        ``six years''.
            (3) Table of sections.--The item relating to such 
        section in the table of sections at the beginning of 
        chapter 1407 of such title is amended to read as 
        follows:

``14503. Discharge of officers with less than six years of commissioned 
          service or found not qualified for promotion to first 
          lieutenant or lieutenant (junior grade).''.

SEC. 504. MANDATORY RETIREMENT AGE FOR ACTIVE-DUTY GENERAL AND FLAG 
                    OFFICERS CONTINUED ON ACTIVE DUTY.

    Section 637(b)(3) of title 10, United States Code, is 
amended by striking ``but such period may not (except as 
provided under section 1251(b) of this title) extend beyond the 
date of the officer's sixty-second birthday'' and inserting 
``except as provided under section 1251 or 1253 of this 
title''.

SEC. 505. AUTHORITY FOR REDUCED MANDATORY SERVICE OBLIGATION FOR 
                    INITIAL APPOINTMENTS OF OFFICERS IN CRITICALLY 
                    SHORT HEALTH PROFESSIONAL SPECIALTIES.

    Section 651 of title 10, United States Code, is amended by 
adding at the end the following new subsection:
    ``(c)(1) For the armed forces under the jurisdiction of the 
Secretary of Defense, the Secretary may waive the initial 
period of required service otherwise established pursuant to 
subsection (a) in the case of the initial appointment of a 
commissioned officer in a critically short health professional 
specialty specified by the Secretary for purposes of this 
subsection.
    ``(2) The minimum period of obligated service for an 
officer under a waiver under this subsection shall be the 
greater of--
            ``(A) two years; or
            ``(B) in the case of an officer who has accepted an 
        accession bonus or executed a contract or agreement for 
        the multiyear receipt of special pay for service in the 
        armed forces, the period of obligated service specified 
        in such contract or agreement.''.

SEC. 506. EXPANSION OF AUTHORITY FOR REENLISTMENT OF OFFICERS IN THEIR 
                    FORMER ENLISTED GRADE.

    (a) Regular Army.--Section 3258 of title 10, United States 
Code, is amended--
            (1) in subsection (a)--
                    (A) by striking ``a Reserve officer'' and 
                inserting ``an officer''; and
                    (B) by striking ``a temporary appointment'' 
                and inserting ``an appointment''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``a 
                Reserve officer'' and inserting ``an officer''; 
                and
                    (B) in paragraph (2), by striking ``the 
                Reserve commission'' and inserting ``the 
                commission''.
    (b) Regular Air Force.--Section 8258 of such title is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``a reserve officer'' and 
                inserting ``an officer''; and
                    (B) by striking ``a temporary appointment'' 
                and inserting ``an appointment''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``a 
                Reserve officer'' and inserting ``an officer''; 
                and
                    (B) in paragraph (2), by striking ``the 
                Reserve commission'' and inserting ``the 
                commission''.

SEC. 507. INCREASE IN AUTHORIZED NUMBER OF PERMANENT PROFESSORS AT THE 
                    UNITED STATES MILITARY ACADEMY.

    Paragraph (4) of section 4331(b) of title 10, United States 
Code, is amended to read as follows:
            ``(4) Twenty-eight permanent professors.''.

SEC. 508. PROMOTION OF CAREER MILITARY PROFESSORS OF THE NAVY.

    (a) Promotion.--
            (1) In general.--Chapter 603 of title 10, United 
        States Code, is amended--
                    (A) by redesignating section 6970 as 
                section 6970a; and
                    (B) by inserting after section 6969 the 
                following new section 6970:

``Sec. 6970. Permanent professors: promotion

    ``(a) Promotion.--An officer serving as a permanent 
professor may be recommended for promotion to the grade of 
captain or colonel, as the case may be, under regulations 
prescribed by the Secretary of the Navy. The regulations shall 
include a competitive selection board process to identify those 
permanent professors best qualified for promotion. An officer 
so recommended shall be promoted by appointment to the higher 
grade by the President, by and with the advice and consent of 
the Senate.
    ``(b) Effective Date of Promotion.--If made, the promotion 
of an officer under subsection (a) shall be effective not 
earlier than three years after the selection of the officer as 
a permanent professor as described in that subsection.''.
            (2) Clerical amendment.--The table of sections at 
        the beginning of such chapter is amended by striking 
        the item relating to section 6970 and inserting the 
        following new items:

``6970. Permanent professors: promotion.
``6970a. Permanent professors: retirement for years of service; 
          authority for deferral.''.

    (b) Conforming Amendments.--Section 641(2) of such title is 
amended--
            (1) by striking ``and the registrar'' and inserting 
        ``, the registrar''; and
            (2) by inserting before the period at the end the 
        following: ``, and permanent professors of the Navy (as 
        defined in regulations prescribed by the Secretary of 
        the Navy)''.
    (c) Competitive Selection Assessment.--The Secretary of 
Defense shall conduct an assessment of the effectiveness of the 
promotion system established under section 6970 of title 10, 
United States Code, as added by subsection (a), for permanent 
professors of the United States Naval Academy, including an 
evaluation of the extent to which the implementation of the 
promotion system has resulted in a competitive environment for 
the selection of permanent professors and an evaluation of 
whether the goals of the permanent professor program have been 
achieved, including adequate career progression and promotion 
opportunities for participating officers. Not later than 
December 31, 2009, the Secretary shall submit to the 
congressional defense committees a report containing the 
results of the assessment.
    (d) Use of Exclusions From Authorized Officer Strengths.--
Not later than March 31, 2008, the Secretary of the Navy shall 
submit to the congressional defense committees a report 
describing the plans of the Secretary for utilization of 
authorized exemptions under section 523(b)(8) of title 10, 
United States Code, and a discussion of the Navy's requirement, 
if any, and projections for use of additional exemptions by 
grade.

                Subtitle B--Reserve Component Management

SEC. 511. RETENTION OF MILITARY TECHNICIANS WHO LOSE DUAL STATUS IN THE 
                    SELECTED RESERVE DUE TO COMBAT-RELATED DISABILITY.

    Section 10216 of title 10, United States Code, is amended 
by inserting after subsection (f) the following new subsection:
    ``(g) Retention of Military Technicians Who Lose Dual 
Status Due to Combat-Related Disability.--(1) Notwithstanding 
subsection (d) of this section or subsections (a)(3) and (b) of 
section 10218 of this title, if a military technician (dual 
status) loses such dual status as the result of a combat-
related disability (as defined in section 1413a of this title), 
the person may be retained as a non-dual status technician so 
long as--
            ``(A) the combat-related disability does not 
        prevent the person from performing the non-dual status 
        functions or position; and
            ``(B) the person, while a non-dual status 
        technician, is not disqualified from performing the 
        non-dual status functions or position because of 
        performance, medical, or other reasons.
    ``(2) A person so retained shall be removed not later than 
30 days after becoming eligible for an unreduced annuity and 
becoming 60 years of age.
    ``(3) Persons retained under the authority of this 
subsection do not count against the limitations of section 
10217(c) of this title.''.

SEC. 512. CONSTRUCTIVE SERVICE CREDIT UPON ORIGINAL APPOINTMENT OF 
                    RESERVE OFFICERS IN CERTAIN HEALTH CARE 
                    PROFESSIONS.

    (a) Inclusion of Additional Health Care Professions.--
Paragraph (2) of section 12207(b) of title 10, United States 
Code, is amended to read as follows:
    ``(2)(A) If the Secretary of Defense determines that the 
number of officers in a health profession described in 
subparagraph (B) who are serving in an active status in a 
reserve component of the Army, Navy, or Air Force in grades 
below major or lieutenant commander is critically below the 
number needed in such health profession by such reserve 
component in such grades, the Secretary of Defense may 
authorize the Secretary of the military department concerned to 
credit any person who is receiving an original appointment as 
an officer for service in such health profession with a period 
of constructive credit in such amount (in addition to any 
amount credited such person under paragraph (1)) as will result 
in the grade of such person being that of captain or, in the 
case of the Navy Reserve, lieutenant.
    ``(B) The types of health professions referred to in 
subparagraph (A) include the following:
            ``(i) Any health profession performed by officers 
        in the Medical Corps of the Army or the Navy or by 
        officers of the Air Force designated as a medical 
        officer.
            ``(ii) Any health profession performed by officers 
        in the Dental Corps of the Army or the Navy or by 
        officers of the Air Force designated as a dental 
        officer.
            ``(iii) Any health profession performed by officers 
        in the Medical Service Corps of the Army or the Navy or 
        by officers of the Air Force designated as a medical 
        service officer or biomedical sciences officer.
            ``(iv) Any health profession performed by officers 
        in the Army Medical Specialist Corps.
            ``(v) Any health profession performed by officers 
        of the Nurse Corps of the Army or the Navy or by 
        officers of the Air Force designated as a nurse.
            ``(vi) Any health profession performed by officers 
        in the Veterinary Corps of the Army or by officers 
        designated as a veterinary officer.''.
    (b) Conforming Amendment.--Paragraph (3) of such section is 
amended by striking ``a medical or dental officer'' and 
inserting ``officers covered by paragraph (2)''.

SEC. 513. MANDATORY SEPARATION OF RESERVE OFFICERS IN THE GRADE OF 
                    LIEUTENANT GENERAL OR VICE ADMIRAL AFTER COMPLETION 
                    OF 38 YEARS OF COMMISSIONED SERVICE.

    (a) Mandatory Separation.--Section 14508 of title 10, 
United States Code, is amended--
            (1) by redesignating subsections (c), (d), and (e) 
        as subsections (e), (f), and (g), respectively; and
            (2) by inserting after subsection (b) the following 
        new subsection (c):
    ``(c) Thirty-Eight Years of Service for Lieutenant Generals 
and Vice Admirals.--Unless retired, transferred to the Retired 
Reserve, or discharged at an earlier date, each reserve officer 
of the Army, Air Force, or Marine Corps in the grade of 
lieutenant general and each reserve officer of the Navy in the 
grade of vice admiral shall be separated in accordance with 
section 14514 of this title on the later of the following:
            ``(1) 30 days after completion of 38 years of 
        commissioned service.
            ``(2) The fifth anniversary of the date of the 
        officer's appointment in the grade of lieutenant 
        general or vice admiral.''.
    (b) Clerical Amendments.--Such section is further amended--
            (1) in subsection (a), by inserting ``for Brigadier 
        Generals and Rear Admirals (Lower Half)'' after 
        ``Grade'' in the subsection heading; and
            (2) in subsection (b), by inserting ``for Major 
        Generals and Rear Admirals'' after ``Grade'' in the 
        subsection heading.

SEC. 514. MAXIMUM PERIOD OF TEMPORARY FEDERAL RECOGNITION OF PERSON AS 
                    ARMY NATIONAL GUARD OFFICER OR AIR NATIONAL GUARD 
                    OFFICER.

    Section 308(a) of title 32, United States Code, is amended 
in the last sentence by striking ``six months'' and inserting 
``one year''.

SEC. 515. ADVANCE NOTICE TO MEMBERS OF RESERVE COMPONENTS OF DEPLOYMENT 
                    IN SUPPORT OF CONTINGENCY OPERATIONS.

    (a) Advance Notice Required.--The Secretary of a military 
department shall ensure that a member of a reserve component 
under the jurisdiction of that Secretary who will be called or 
ordered to active duty for a period of more than 30 days in 
support of a contingency operation (as defined in section 
101(a)(13) of title 10, United States Code) receives notice in 
advance of the mobilization date. In so far as is practicable, 
the notice shall be provided not less than 30 days before the 
mobilization date, but with a goal of 90 days before the 
mobilization date.
    (b) Reduction or Waiver of Notice Requirement.--The 
Secretary of Defense may waive the requirement of subsection 
(a), or authorize shorter notice than the minimum specified in 
such subsection, during a war or national emergency declared by 
the President or Congress or to meet mission requirements. If 
the waiver or reduction is made on account of mission 
requirements, the Secretary shall submit to Congress a report 
detailing the reasons for the waiver or reduction and the 
mission requirements at issue.

SEC. 516. REPORT ON RELIEF FROM PROFESSIONAL LICENSURE AND 
                    CERTIFICATION REQUIREMENTS FOR RESERVE COMPONENT 
                    MEMBERS ON LONG-TERM ACTIVE DUTY.

    (a) Study.--The Comptroller General of the United States 
shall conduct a study of the requirements to maintain licensure 
or certification by members of the National Guard or other 
reserve components of the Armed Forces while on active duty for 
an extended period of time.
    (b) Elements of Study.--In the study, the Comptroller 
General shall--
            (1) identify the number and type of professional or 
        other licensure or certification requirements that may 
        be adversely impacted by extended periods of active 
        duty; and
            (2) determine mechanisms that would provide relief 
        from professional or other licensure or certification 
        requirements for members of the reserve components 
        while on active duty for an extended period of time.
    (c) Report.--Not later than 120 days after the date of the 
enactment of this Act, the Comptroller General shall submit to 
the Committees on Armed Services of the Senate and House of 
Representative a report containing the results of the study and 
such recommendations as the Comptroller General considers 
appropriate to provide further relief for members of the 
reserve components from professional or other licensure or 
certification requirements while on active duty for an extended 
period of time.

                   Subtitle C--Education and Training

SEC. 521. REVISIONS TO AUTHORITY TO PAY TUITION FOR OFF-DUTY TRAINING 
                    OR EDUCATION.

    (a) Inclusion of Coast Guard.--Subsection (a) of section 
2007 of title 10, United States Code, is amended by striking 
``Subject to subsection (b), the Secretary of a military 
department'' and inserting ``Subject to subsections (b) and 
(c), the Secretary concerned''.
    (b) Commissioned Officers on Active Duty.--Subsection (b) 
of such section is amended--
            (1) in paragraph (1)--
                    (A) by inserting after ``commissioned 
                officer on active duty'' the following: 
                ``(other than a member of the Ready Reserve)'';
                    (B) by striking ``the Secretary of the 
                military department concerned'' and inserting 
                ``the Secretary concerned''; and
                    (C) by striking ``or full-time National 
                Guard duty'' both places it appears; and
            (2) in paragraph (2)--
                    (A) in the matter preceding subparagraph 
                (A), by striking ``the Secretary of the 
                military department'' and inserting ``the 
                Secretary concerned'';
                    (B) in subparagraph (B), by inserting after 
                ``active duty service'' the following: ``for 
                which the officer was ordered to active duty''; 
                and
                    (C) in subparagraph (C), by striking 
                ``Secretary'' and inserting ``Secretary 
                concerned''.
    (c) Authority To Pay Tuition Assistance to Members of the 
Ready Reserve.--
            (1) Availability of assistance.--Subsection (c) of 
        such section is amended to read as follows:
    ``(c)(1) Subject to paragraphs (3) and (5), the Secretary 
concerned may pay the charges of an educational institution for 
the tuition or expenses described in subsection (a) of a member 
of the Selected Reserve.
    ``(2) Subject to paragraphs (4) and (5), the Secretary 
concerned may pay the charges of an educational institution for 
the tuition or expenses described in subsection (a) of a member 
of the Individual Ready Reserve who has a military occupational 
specialty designated by the Secretary concerned for purposes of 
this subsection.
    ``(3) The Secretary concerned may not pay charges under 
paragraph (1) for tuition or expenses of an officer of the 
Selected Reserve unless the officer enters into an agreement to 
remain a member of the Selected Reserve for at least four years 
after completion of the education or training for which the 
charges are paid.
    ``(4) The Secretary concerned may not pay charges under 
paragraph (2) for tuition or expenses of an officer of the 
Individual Ready Reserve unless the officer enters into an 
agreement to remain in the Selected Reserve or Individual Ready 
Reserve for at least four years after completion of the 
education or training for which the charges are paid.
    ``(5) The Secretary of a military department may require an 
enlisted member of the Selected Reserve or Individual Ready 
Reserve to enter into an agreement to serve for up to four 
years in the Selected Reserve or Individual Ready Reserve, as 
the case may be, after completion of the education or training 
for which tuition or expenses are paid under paragraph (1) or 
(2), as applicable.''.
            (2) Repeal of superseded provision.--Such section 
        is further amended--
                    (A) by striking subsection (d); and
                    (B) by redesignating subsections (e) and 
                (f) as subsections (d) and (e), respectively.
            (3) Repayment of unearned benefit.--Subsection (e) 
        of such section, as redesignated by paragraph (2) of 
        this subsection, is amended--
                    (A) by inserting ``(1)'' after ``(e)''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) If a member of the Ready Reserve who enters into an 
agreement under subsection (c) does not complete the period of 
service specified in the agreement, the member shall be subject 
to the repayment provisions of section 303a(e) of title 37.''.
    (d) Regulations.--Such section is further amended by adding 
at the end the following new subsection:
    ``(f) This section shall be administered under regulations 
prescribed by the Secretary of Defense or, with respect to the 
Coast Guard when it is not operating as a service in the Navy, 
the Secretary of Homeland Security.''.
    (e) Study.--
            (1) Study required.--The Secretary of Defense shall 
        carry out a study on the tuition assistance program 
        carried out under section 2007 of title 10, United 
        States Code. The study shall--
                    (A) identify the number of members of the 
                Armed Forces eligible for assistance under the 
                program, and the number who actually receive 
                the assistance;
                    (B) assess the extent to which the program 
                affects retention rates; and
                    (C) assess the extent to which State 
                tuition assistance programs affect retention 
                rates in those States.
            (2) Report.--Not later than nine months after the 
        date of the enactment of this Act, 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 
        study.

SEC. 522. REDUCTION OR ELIMINATION OF SERVICE OBLIGATION IN AN ARMY 
                    RESERVE OR ARMY NATIONAL GUARD TROOP PROGRAM UNIT 
                    FOR CERTAIN PERSONS SELECTED AS MEDICAL STUDENTS AT 
                    UNIFORMED SERVICES UNIVERSITY OF THE HEALTH 
                    SCIENCES.

    Paragraph (3) of section 2107a(b) of title 10, United 
States Code, is amended to read as follows:
    ``(3)(A) Subject to subparagraph (C), in the case of a 
person described in subparagraph (B), the Secretary may, at any 
time and with the consent of the person, modify an agreement 
described in paragraph (1)(F) submitted by the person for the 
purpose of reducing or eliminating the troop program unit 
service obligation specified in the agreement and to establish, 
in lieu of that obligation, an active duty service obligation.
    ``(B) Subparagraph (A) applies with respect to the 
following persons:
            ``(i) A cadet under this section at a military 
        junior college.
            ``(ii) A cadet or former cadet under this section 
        who is selected under section 2114 of this title to be 
        a medical student at the Uniformed Services University 
        of the Health Sciences.
            ``(iii) A cadet or former cadet under this section 
        who signs an agreement under section 2122 of this title 
        for participation in the Armed Forces Health 
        Professions Scholarship and Financial Assistance 
        program.
    ``(C) The modification of an agreement described in 
paragraph (1)(F) may be made only if the Secretary determines 
that it is in the best interests of the United States to do 
so.''.

SEC. 523. REPEAL OF ANNUAL LIMIT ON NUMBER OF ROTC SCHOLARSHIPS UNDER 
                    ARMY RESERVE AND ARMY NATIONAL GUARD FINANCIAL 
                    ASSISTANCE PROGRAM.

    Section 2107a(h) of title 10, United States Code, is 
amended by striking ``not more than 416 cadets each year under 
this section, to include'' and inserting ``each year under this 
section''.

SEC. 524. TREATMENT OF PRIOR ACTIVE SERVICE OF MEMBERS IN UNIFORMED 
                    MEDICAL ACCESSION PROGRAMS.

    (a) Medical Students of USUHS.--
            (1) Treatment of students with prior active 
        service.--Section 2114 of title 10, United States Code, 
        is amended--
                    (A) by redesignating subsections (c) 
                through (h) as subsections (d) through (i), 
                respectively; and
                    (B) in subsection (b)--
                            (i) by inserting ``(1)'' after 
                        ``(b)''; and
                            (ii) by inserting after the second 
                        sentence the following new paragraph:
    ``(2) If a member of the uniformed services selected to be 
a student has prior active service in a pay grade and with 
years of service credited for pay that would entitle the 
member, if the member remained in the former grade, to a rate 
of basic pay in excess of the rate of basic pay for regular 
officers in the grade of second lieutenant or ensign, the 
member shall be paid basic pay based on the former grade and 
years of service credited for pay. The amount of such basic pay 
for the member shall be increased on January 1 of each year by 
the percentage by which basic pay is increased on average on 
that date for that year, and the member shall continue to 
receive basic pay based on the former grade and years of 
service until the date, whether occurring before or after 
graduation, on which the basic pay for the member in the 
member's actual grade and years of service credited for pay 
exceeds the amount of basic pay to which the member is entitled 
based on the member's former grade and years of service.''.
            (2) Conforming amendments.--Such section is further 
        amended--
                    (A) in subsection (b), by striking ``Upon 
                graduation they'' and inserting the following:
    ``(c) Medical students who graduate''; and
                    (B) in subsection (i), as redesignated by 
                paragraph (1), by striking ``subsection (b)'' 
                and inserting ``subsection (c)''.
    (b) Participants in Health Professions Scholarship and 
Financial Assistance Program.--Section 2121(c) of such title is 
amended--
            (1) by inserting ``(1)'' after ``(c)''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) If a member of the uniformed services selected to 
participate in the program as a medical student has prior 
active service in a pay grade and with years of service 
credited for pay that would entitle the member, if the member 
remained in the former grade, to a rate of basic pay in excess 
of the rate of basic pay for regular officers in the grade of 
second lieutenant or ensign, the member shall be paid basic pay 
based on the former grade and years of service credited for 
pay. The amount of such basic pay for the member shall be 
increased on January 1 of each year by the percentage by which 
basic pay is increased on average on that date for that year, 
and the member shall continue to receive basic pay based on the 
former grade and years of service until the date, whether 
occurring before or after the conclusion of such participation, 
on which the basic pay for the member in the member's actual 
grade and years of service credited for pay exceeds the amount 
of basic pay to which the member is entitled based on the 
member's former grade and years of service.''.
    (c) Officers Detailed as Students at Medical Schools.--
            (1) Appointment and treatment of prior active 
        service.--Section 2004a of such title is amended--
                    (A) by redesignating subsections (e) 
                through (h) as subsections (f) through (i), 
                respectively; and
                    (B) by inserting after subsection (d) the 
                following new subsection:
    ``(e) Appointment and Treatment of Prior Active Service.--
(1) A commissioned officer detailed as a student at a medical 
school under subsection (a) shall be appointed as a regular 
officer in the grade of second lieutenant or ensign and shall 
serve on active duty in that grade with full pay and allowances 
of that grade.
    ``(2) If an officer detailed to be a medical student has 
prior active service in a pay grade and with years of service 
credited for pay that would entitle the officer, if the officer 
remained in the former grade, to a rate of basic pay in excess 
of the rate of basic pay for regular officers in the grade of 
second lieutenant or ensign, the officer shall be paid basic 
pay based on the former grade and years of service credited for 
pay. The amount of such basic pay for the officer shall be 
increased on January 1 of each year by the percentage by which 
basic pay is increased on average on that date for that year, 
and the officer shall continue to receive basic pay based on 
the former grade and years of service until the date, whether 
occurring before or after graduation, on which the basic pay 
for the officer in the officer's actual grade and years of 
service credited for pay exceeds the amount of basic pay to 
which the officer is entitled based on the officer's former 
grade and years of service.''.
            (2) Technical amendment.--Subsection (c) of such 
        section is amended by striking ``subsection (c)'' and 
        inserting ``subsection (b)''.

SEC. 525. REPEAL OF POST-2007-2008 ACADEMIC YEAR PROHIBITION ON PHASED 
                    INCREASE IN CADET STRENGTH LIMIT AT THE UNITED 
                    STATES MILITARY ACADEMY.

    Section 4342(j)(1) of title 10, United States Code, is 
amended by striking the last sentence.

SEC. 526. NATIONAL DEFENSE UNIVERSITY MASTER'S DEGREE PROGRAMS.

    (a) Master of Arts Program Authorized.--Section 2163 of 
title 10, United States Code, is amended--
            (1) in subsection (a), by inserting ``or master of 
        arts'' after ``master of science''; and
            (2) in subsection (b), by adding at the end the 
        following new paragraph:
            ``(4) Master of arts in strategic security 
        studies.--The degree of master of arts in strategic 
        security studies, to graduates of the University who 
        fulfill the requirements of the program at the School 
        for National Security Executive Education.''.
    (b) Clerical Amendments.--
            (1) Section heading.--The heading of such section 
        is amended to read as follows:

``Sec. 2163. National Defense University: master's degree programs''.

            (2) Table of contents.--The table of sections at 
        the beginning of chapter 108 of such title is amended 
        by striking the item relating to section 2163 and 
        inserting the following new item:

``2163. National Defense University: master's degree programs.''.

    (c) Applicability to 2006-2007 Graduates.--Paragraph (4) of 
section 2163(b) of title 10, United States Code, as added by 
subsection (a) of this section, applies with respect to any 
person who becomes a graduate of the National Defense 
University on or after September 6, 2006, and fulfills the 
requirements of the program referred to in such paragraph (4).

SEC. 527. AUTHORITY OF THE AIR UNIVERSITY TO CONFER DEGREE OF MASTER OF 
                    SCIENCE IN FLIGHT TEST ENGINEERING.

    Section 9317(a) of title 10, United States Code, is 
amended--
            (1) by redesignating paragraph (4) as paragraph 
        (5); and
            (2) by inserting after paragraph (3) the following 
        new paragraph:
            ``(4) The degree of master of science in flight 
        test engineering upon graduates of the Air Force Test 
        Pilot School who fulfill the requirements for that 
        degree in a manner consistent with the recommendations 
        of the Department of Education and the principles of 
        the regional accrediting body for the Air 
        University.''.

SEC. 528. ENHANCEMENT OF EDUCATION BENEFITS FOR CERTAIN MEMBERS OF 
                    RESERVE COMPONENTS.

    (a) Accelerated Payment of Educational Assistance for 
Members of the Selected Reserve.--
            (1) In general.--Chapter 1606 of title 10, United 
        States Code, is amended by inserting after section 
        16131 the following new section:

``Sec. 16131a. Accelerated payment of educational assistance

    ``(a) The educational assistance allowance payable under 
section 16131 of this title with respect to an eligible person 
described in subsection (b) may, upon the election of such 
eligible person, be paid on an accelerated basis in accordance 
with this section.
    ``(b) An eligible person described in this subsection is a 
person entitled to educational assistance under this chapter 
who is--
            ``(1) enrolled in an approved program of education 
        not exceeding two years in duration and not leading to 
        an associate, bachelors, masters, or other degree, 
        subject to subsection (g); and
            ``(2) charged tuition and fees for the program of 
        education that, when divided by the number of months 
        (and fractions thereof) in the enrollment period, 
        exceeds the amount equal to 200 percent of the monthly 
        rate of educational assistance allowance otherwise 
        payable with respect to the person under section 16131 
        of this title.
    ``(c)(1) The amount of the accelerated payment of 
educational assistance payable with respect to an eligible 
person making an election under subsection (a) for a program of 
education shall be the lesser of--
            ``(A) the amount equal to 60 percent of the 
        established charges for the program of education; or
            ``(B) the aggregate amount of educational 
        assistance allowance to which the person remains 
        entitled under this chapter at the time of the payment.
    ``(2)(A) In this subsection, except as provided in 
subparagraph (B), the term `established charges', in the case 
of a program of education, means the actual charges (as 
determined pursuant to regulations prescribed by the Secretary 
of Veterans Affairs) for tuition and fees which similarly 
circumstanced individuals who are not eligible for benefits 
under this chapter and who are enrolled in the program of 
education would be required to pay. Established charges shall 
be determined on the following basis:
            ``(i) In the case of an individual enrolled in a 
        program of education offered on a term, quarter, or 
        semester basis, the tuition and fees charged the 
        individual for the term, quarter, or semester.
            ``(ii) In the case of an individual enrolled in a 
        program of education not offered on a term, quarter, or 
        semester basis, the tuition and fees charged the 
        individual for the entire program of education.
    ``(B) In this subsection, the term `established charges' 
does not include any fees or payments attributable to the 
purchase of a vehicle.
    ``(3) The educational institution providing the program of 
education for which an accelerated payment of educational 
assistance allowance is elected by an eligible person under 
subsection (a) shall certify to the Secretary of Veterans 
Affairs the amount of the established charges for the program 
of education.
    ``(d) An accelerated payment of educational assistance 
allowance made with respect to an eligible person under this 
section for a program of education shall be made not later than 
the last day of the month immediately following the month in 
which the Secretary of Veterans Affairs receives a 
certification from the educational institution regarding--
            ``(1) the person's enrollment in and pursuit of the 
        program of education; and
            ``(2) the amount of the established charges for the 
        program of education.
    ``(e)(1) Except as provided in paragraph (2), for each 
accelerated payment of educational assistance allowance made 
with respect to an eligible person under this section, the 
person's entitlement to educational assistance under this 
chapter shall be charged the number of months (and any fraction 
thereof) determined by dividing the amount of the accelerated 
payment by the full-time monthly rate of educational assistance 
allowance otherwise payable with respect to the person under 
section 16131 of this title as of the beginning date of the 
enrollment period for the program of education for which the 
accelerated payment is made.
    ``(2) If the monthly rate of educational assistance 
allowance otherwise payable with respect to an eligible person 
under section 16131 of this title increases during the 
enrollment period of a program of education for which an 
accelerated payment of educational assistance allowance is made 
under this section, the charge to the person's entitlement to 
educational assistance under this chapter shall be determined 
by prorating the entitlement chargeable, in the manner provided 
for under paragraph (1), for the periods covered by the initial 
rate and increased rate, respectively, in accordance with 
regulations prescribed by the Secretary of Veterans Affairs.
    ``(f) The Secretary of Veterans Affairs shall prescribe 
regulations to carry out this section. The regulations shall 
include requirements, conditions, and methods for the request, 
issuance, delivery, certification of receipt and use, and 
recovery of overpayment of an accelerated payment of 
educational assistance allowance under this section. The 
regulations may include such elements of the regulations 
prescribed under section 3014A of title 38 as the Secretary of 
Veterans Affairs considers appropriate for purposes of this 
section.
    ``(g) The aggregate amount of educational assistance 
payable under this section in any fiscal year for enrollments 
covered by subsection (b)(1) may not exceed $4,000,000.''.
            (2) Clerical amendment.--The table of sections at 
        the beginning of chapter 1606 of such title is amended 
        by inserting after the item relating to section 16131 
        the following new item:

``16131a. Accelerated payment of educational assistance.''.

            (3) Effective date.--The amendments made by this 
        subsection shall take effect on October 1, 2008, and 
        shall only apply to initial enrollments in approved 
        programs of education after such date.
    (b) Accelerated Payment of Educational Assistance for 
Reserve Component Members Supporting Contingency Operations and 
Other Operations.--
            (1) In general.--Chapter 1607 of title 10, United 
        States Code, is amended by inserting after section 
        16162 the following new section:

``Sec. 16162a. Accelerated payment of educational assistance

    ``(a) Payment on Accelerated Basis.--The educational 
assistance allowance payable under section 16162 of this title 
with respect to an eligible member described in subsection (b) 
may, upon the election of such eligible member, be paid on an 
accelerated basis in accordance with this section.
    ``(b) Eligible Members.--An eligible member described in 
this subsection is a member of a reserve component entitled to 
educational assistance under this chapter who is--
            ``(1) enrolled in an approved program of education 
        not exceeding two years in duration and not leading to 
        an associate, bachelors, masters, or other degree, 
        subject to subsection (g); and
            ``(2) charged tuition and fees for the program of 
        education that, when divided by the number of months 
        (and fractions thereof) in the enrollment period, 
        exceeds the amount equal to 200 percent of the monthly 
        rate of educational assistance allowance otherwise 
        payable with respect to the member under section 16162 
        of this title.
    ``(c) Amount of Accelerated Payment.--(1) The amount of the 
accelerated payment of educational assistance payable with 
respect to an eligible member making an election under 
subsection (a) for a program of education shall be the lesser 
of--
            ``(A) the amount equal to 60 percent of the 
        established charges for the program of education; or
            ``(B) the aggregate amount of educational 
        assistance allowance to which the member remains 
        entitled under this chapter at the time of the payment.
    ``(2)(A) In this subsection, except as provided in 
subparagraph (B), the term `established charges', in the case 
of a program of education, means the actual charges (as 
determined pursuant to regulations prescribed by the Secretary 
of Veterans Affairs) for tuition and fees which similarly 
circumstanced individuals who are not eligible for benefits 
under this chapter and who are enrolled in the program of 
education would be required to pay. Established charges shall 
be determined on the following basis:
            ``(i) In the case of an individual enrolled in a 
        program of education offered on a term, quarter, or 
        semester basis, the tuition and fees charged the 
        individual for the term, quarter, or semester.
            ``(ii) In the case of an individual enrolled in a 
        program of education not offered on a term, quarter, or 
        semester basis, the tuition and fees charged the 
        individual for the entire program of education.
    ``(B) In this subsection, the term `established charges' 
does not include any fees or payments attributable to the 
purchase of a vehicle.
    ``(3) The educational institution providing the program of 
education for which an accelerated payment of educational 
assistance allowance is elected by an eligible member under 
subsection (a) shall certify to the Secretary of Veterans 
Affairs the amount of the established charges for the program 
of education.
    ``(d) Time of Payment.--An accelerated payment of 
educational assistance allowance made with respect to an 
eligible member under this section for a program of education 
shall be made not later than the last day of the month 
immediately following the month in which the Secretary of 
Veterans Affairs receives a certification from the educational 
institution regarding--
            ``(1) the member's enrollment in and pursuit of the 
        program of education; and
            ``(2) the amount of the established charges for the 
        program of education.
    ``(e) Charge Against Entitlement.--(1) Except as provided 
in paragraph (2), for each accelerated payment of educational 
assistance allowance made with respect to an eligible member 
under this section, the member's entitlement to educational 
assistance under this chapter shall be charged the number of 
months (and any fraction thereof) determined by dividing the 
amount of the accelerated payment by the full-time monthly rate 
of educational assistance allowance otherwise payable with 
respect to the member under section 16162 of this title as of 
the beginning date of the enrollment period for the program of 
education for which the accelerated payment is made.
    ``(2) If the monthly rate of educational assistance 
allowance otherwise payable with respect to an eligible member 
under section 16162 of this title increases during the 
enrollment period of a program of education for which an 
accelerated payment of educational assistance allowance is made 
under this section, the charge to the member's entitlement to 
educational assistance under this chapter shall be determined 
by prorating the entitlement chargeable, in the manner provided 
for under paragraph (1), for the periods covered by the initial 
rate and increased rate, respectively, in accordance with 
regulations prescribed by the Secretary of Veterans Affairs.
    ``(f) Regulations.--The Secretary of Veterans Affairs shall 
prescribe regulations to carry out this section. The 
regulations shall include requirements, conditions, and methods 
for the request, issuance, delivery, certification of receipt 
and use, and recovery of overpayment of an accelerated payment 
of educational assistance allowance under this section. The 
regulations may include such elements of the regulations 
prescribed under section 3014A of title 38 as the Secretary of 
Veterans Affairs considers appropriate for purposes of this 
section.
    ``(g) Limitation.--The aggregate amount of educational 
assistance payable under this section in any fiscal year for 
enrollments covered by subsection (b)(1) may not exceed 
$3,000,000.''.
            (2) Clerical amendment.--The table of sections at 
        the beginning of chapter 1607 of such title is amended 
        by inserting after the item relating to section 16162 
        the following new item:

``16162a. Accelerated payment of educational assistance.''.

            (3) Effective date.--The amendments made by this 
        subsection shall take effect on October 1, 2008, and 
        shall only apply to initial enrollments in approved 
        programs of education after such date.
    (c) Enhancement of Educational Assistance for Reserve 
Component Members Supporting Contingency Operations and Other 
Operations.--
            (1) Assistance for three years cumulative 
        service.--Subsection (c)(4)(C) of section 16162 of 
        title 10, United States Code, is amended by striking 
        ``for two continuous years or more.'' and inserting 
        ``for--
                    ``(i) two continuous years or more; or
                    ``(ii) an aggregate of three years or 
                more.''.
            (2) Contributions for increased amount of 
        educational assistance.--Such section is further 
        amended by adding at the end the following new 
        subsection:
    ``(f) Contributions for Increased Amount of Educational 
Assistance.--(1)(A) Any individual eligible for educational 
assistance under this section may contribute amounts for 
purposes of receiving an increased amount of educational 
assistance as provided for in paragraph (2).
    ``(B) An individual covered by subparagraph (A) may make 
the contributions authorized by that subparagraph at any time 
while a member of a reserve component, but not more frequently 
than monthly.
    ``(C) The total amount of the contributions made by an 
individual under subparagraph (A) may not exceed $600. Such 
contributions shall be made in multiples of $20.
    ``(D) Contributions under this subsection shall be made to 
the Secretary concerned. Such Secretary shall deposit any 
amounts received as contributions under this subsection into 
the Treasury as miscellaneous receipts.
    ``(2) Effective as of the first day of the enrollment 
period following the enrollment period in which an individual 
makes contributions under paragraph (1), the monthly amount of 
educational assistance allowance applicable to such individual 
under this section shall be the monthly rate otherwise provided 
for under subsection (c) increased by--
            ``(A) an amount equal to $5 for each $20 
        contributed by such individual under paragraph (1) for 
        an approved program of education pursued on a full-time 
        basis; or
            ``(B) an appropriately reduced amount based on the 
        amount so contributed as determined under regulations 
        that the Secretary of Veterans Affairs shall prescribe, 
        for an approved program of education pursued on less 
        than a full-time basis.''.

SEC. 529. EXTENSION OF PERIOD OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE 
                    FOR CERTAIN MEMBERS OF THE SELECTED RESERVE 
                    AFFECTED BY FORCE SHAPING INITIATIVES.

    Section 16133(b)(1)(B) of title 10, United States Code, is 
amended by inserting ``or the period beginning on October 1, 
2007, and ending on September 30, 2014,'' after ``December 31, 
2001,''.

SEC. 530. TIME LIMIT FOR USE OF EDUCATIONAL ASSISTANCE BENEFIT FOR 
                    CERTAIN MEMBERS OF RESERVE COMPONENTS AND 
                    RESUMPTION OF BENEFIT.

    (a) Modification of Time Limit for Use of Benefit.--
            (1) Modification.--Section 16164(a) of title 10, 
        United States Code, is amended by striking ``this 
        chapter while serving--'' and all that follows and 
        inserting ``this chapter--
            ``(1) while the member is serving--
                    ``(A) in the Selected Reserve of the Ready 
                Reserve, in the case of a member called or 
                ordered to active service while serving in the 
                Selected Reserve; or
                    ``(B) in the Ready Reserve, in the case of 
                a member ordered to active duty while serving 
                in the Ready Reserve (other than the Selected 
                Reserve); and
            ``(2) in the case of a person who separates from 
        the Selected Reserve of the Ready Reserve after 
        completion of a period of active service described in 
        section 16163 of this title and completion of a service 
        contract under other than dishonorable conditions, 
        during the 10-year period beginning on the date on 
        which the person separates from the Selected 
        Reserve.''.
            (2) Conforming amendment.--Paragraph (2) of section 
        16165(a) of such title is amended to read as follows:
            ``(2) when the member separates from the Ready 
        Reserve as provided in section 16164(a)(1) of this 
        title, or upon completion of the period provided for in 
        section 16164(a)(2) of this title, as applicable.''.
    (b) Reclaiming Benefit for Members Reentering Service.--
Section 16165(b) of such title is amended by striking ``of not 
more than 90 days'' after ``who incurs a break in service in 
the Selected Reserve''.
    (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 (Public Law 108-375), to 
which such amendments relate.

SEC. 531. SECRETARY OF DEFENSE EVALUATION OF THE ADEQUACY OF THE 
                    DEGREE-GRANTING AUTHORITIES OF CERTAIN MILITARY 
                    UNIVERSITIES AND EDUCATIONAL INSTITUTIONS.

    (a) Evaluation Required.--The Secretary of Defense shall 
carry out an evaluation of the degree-granting authorities 
provided by title 10, United States Code, to the academic 
institutions specified in subsection (b). The evaluation shall 
assess whether the current process, under which each degree 
conferred by each institution must have a statutory 
authorization, remains adequate, appropriate, and responsive 
enough to meet emerging military service education 
requirements.
    (b) Specified Institutions.--The academic institutions 
covered by subsection (a) are the following:
            (1) The National Defense University.
            (2) The Army War College and the United States Army 
        Command and General Staff College.
            (3) The United States Naval War College.
            (4) The United States Naval Postgraduate School.
            (5) Air University and the United States Air Force 
        Institute of Technology.
            (6) The Marine Corps University.
    (c) Report.--Not later than April 1, 2008, 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 evaluation. The report shall 
include the results of the evaluation and any recommendations 
for changes to policy or law that the Secretary considers 
appropriate.

SEC. 532. REPORT ON SUCCESS OF ARMY NATIONAL GUARD AND RESERVE SENIOR 
                    RESERVE OFFICERS' TRAINING CORPS FINANCIAL 
                    ASSISTANCE PROGRAM.

    (a) Report Required.--Not later than 150 days after the 
date of the enactment of this Act, the Secretary of the Army 
shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives a report on the success of the 
financial assistance program of the Senior Reserve Officers' 
Training Corps under section 2107a of title 10, United States 
Code, in securing the appointment of second lieutenants in the 
Army Reserve and Army National Guard. The report shall include 
detailed information on the appointment of cadets under the 
financial assistance program who are enrolled in an educational 
institution described in subsection (b) and address the efforts 
of the Secretary to increase awareness of the availability and 
advantages of appointment in the Senior Reserve Officers' 
Training Corps at these institutions and to increase the number 
of cadets at these institutions.
    (b) Covered Educational Institutions.--The educational 
institutions referred to in subsection (a) are the following:
            (1) An historically Black college or university 
        that is a part B institution, as defined in section 
        322(2) of the Higher Education Act of 1965 (20 U.S.C. 
        1061(2)).
            (2) A minority institution, as defined in section 
        365(3) of that Act (20 U.S.C. 1067k(3)).
            (3) An Hispanic-serving institution, as defined in 
        section 502(a)(5) of that Act (20 U.S.C. 1101a(a)(5)).

SEC. 533. REPORT ON UTILIZATION OF TUITION ASSISTANCE BY MEMBERS OF THE 
                    ARMED FORCES.

    (a) Reports Required.--Not later than April 1, 2008, the 
Secretary of each military department shall submit to the 
congressional defense committees a report on the utilization of 
tuition assistance by members of the Armed Forces, whether in 
the regular components of the Armed Forces or the reserve 
components of the Armed Forces, under the jurisdiction of such 
military department during fiscal year 2007.
    (b) Elements.--The report with respect to a military 
department under subsection (a) shall include the following:
            (1) Information on the policies of such military 
        department for fiscal year 2007 regarding utilization 
        of, and limits on, tuition assistance by members of the 
        Armed Forces under the jurisdiction of such military 
        department, including an estimate of the number of 
        members of the reserve components of the Armed Forces 
        under the jurisdiction of such military department 
        whose requests for tuition assistance during that 
        fiscal year were unfunded.
            (2) Information on the policies of such military 
        department for fiscal year 2007 regarding funding of 
        tuition assistance for each of the regular components 
        of the Armed Forces and each of the reserve components 
        of the Armed Forces under the jurisdiction of such 
        military department.

SEC. 534. NAVY JUNIOR RESERVE OFFICERS' TRAINING CORPS UNIT FOR 
                    SOUTHOLD, MATTITUCK, AND GREENPORT HIGH SCHOOLS.

    For purposes of meeting the requirements of section 2031(b) 
of title 10, United States Code, the Secretary of the Navy may 
and, to the extent the schools request, shall treat any two or 
more of the following schools (all in Southold, Suffolk County, 
New York) as a single institution:
            (1) Southold High School.
            (2) Mattituck High School.
            (3) Greenport High School.

SEC. 535. REPORT ON TRANSFER OF ADMINISTRATION OF CERTAIN EDUCATIONAL 
                    ASSISTANCE PROGRAMS FOR MEMBERS OF THE RESERVE 
                    COMPONENTS.

    (a) Report Required.--Not later than September 1, 2008, the 
Secretary of Defense, in cooperation with the Secretary of 
Veterans Affairs, shall submit to the congressional defense 
committees and the Committees on Veterans Affairs of the Senate 
and House of Representatives a report on the feasibility and 
merits of transferring the administration of the educational 
assistance programs for members of the reserve components 
contained in chapters 1606 and 1607 of title 10, United States 
Code, from the Department of Defense to the Department of 
Veterans Affairs.
    (b) Elements of Report.--The report shall specifically 
address the following:
            (1) A discussion of the history and purpose of the 
        educational assistance benefits under chapters 1606 and 
        1607 of title 10, United States Code, and the data most 
        recently available, as of the date of the enactment of 
        this Act, relating to the cost of providing such 
        benefits and the projected costs of providing such 
        benefits over the ten-year period beginning on the such 
        date.
            (2) The effect of a transfer of administrative 
        jurisdiction on the delivery of educational assistance 
        benefits to members of the reserve components.
            (3) The effect of a transfer of administrative 
        jurisdiction on Department of Defense efforts relating 
        to recruiting, retention, and compensation, including 
        bonuses, special pays, and incentive pays.
            (4) The extent to which educational assistance 
        benefits influence the decision of a person to join a 
        reserve component.
            (5) The extent to which the educational assistance 
        benefits available under chapter 1606 of title 10, 
        United States Code, affect retention rates, including 
        statistics showing how many members remain in the 
        reserve components in order to continue to receive 
        education benefits under such chapter.
            (6) The extent to which the educational assistance 
        benefits available under chapter 1607 of title 10, 
        United States Code, affect retention rates, including 
        statistics showing how many members remain in the 
        reserve components in order to continue to receive 
        education benefits under such chapter.
            (7) The practical and budgetary issues involved in 
        a transfer of administrative jurisdiction, including a 
        discussion of the cost of equating the educational 
        assistance benefits for members of the active and 
        reserve components.
            (8) Any recommendations of the Secretary for 
        legislation to enhance or improve the delivery of 
        educational assistance benefits for members of the 
        reserve components.
            (9) The feasibility and likely effects of 
        transferring the administration of the educational 
        assistance programs for members of the reserve 
        components contained in chapters 1606 and 1607 of title 
        10, United States Code, from the Department of Defense 
        to the Department of Veterans Affairs through the 
        recodification of such chapters in title 38, United 
        States Code, as proposed in section 525 of HR 1585 of 
        the 110th Congress, as passed by the House of 
        Representatives, together with any recommendations of 
        the Secretary for improving that section.
            (10) A discussion of the effects and impact of the 
        amendments to chapter 1607 of title 10, United States 
        Code, made by section 530 of this Act, relating to the 
        extension of the time limit for the use of educational 
        assistance benefits under that chapter.
    (c) Reviews of Report.--Before submission of the report to 
Congress, the Secretary of Defense shall secure the review of 
the report by the Defense Business Board, in cooperation with 
the Reserve Forces Policy Board. The Secretary of Veterans 
Affairs shall secure the review of the report by the Veterans 
Affairs Advisory Committee on Education. The results of such 
reviews shall be included as an appendix to the report.
    (d) Comptroller General Review.--Not later than November 1, 
2008, the Comptroller General shall submit to the congressional 
committees referred to in subsection (a) an assessment of the 
report, including a review of the costs inherent in the 
transfer of administrative jurisdiction and the recruiting and 
retention data and other assumptions used by the Secretary of 
Defense in preparing the report. As part of the assessment, the 
Comptroller General shall solicit responses from the Secretary 
of Defense and the Secretary of Veterans Affairs.

       Subtitle D--Military Justice and Legal Assistance Matters

SEC. 541. AUTHORITY TO DESIGNATE CIVILIAN EMPLOYEES OF THE FEDERAL 
                    GOVERNMENT AND DEPENDENTS OF DECEASED MEMBERS AS 
                    ELIGIBLE FOR LEGAL ASSISTANCE FROM DEPARTMENT OF 
                    DEFENSE LEGAL STAFF RESOURCES.

    Section 1044(a) of title 10, United States Code, is amended 
by adding at the end the following new paragraphs:
            ``(6) Survivors of a deceased member or former 
        member described in paragraphs (1), (2), (3), and (4) 
        who were dependents of the member or former member at 
        the time of the death of the member or former member, 
        except that the eligibility of such survivors shall be 
        determined pursuant to regulations prescribed by the 
        Secretary concerned.
            ``(7) Civilian employees of the Federal Government 
        serving in locations where legal assistance from non-
        military legal assistance providers is not reasonably 
        available, except that the eligibility of civilian 
        employees shall be determined pursuant to regulations 
        prescribed by the Secretary concerned.''.

SEC. 542. AUTHORITY OF JUDGES OF THE UNITED STATES COURT OF APPEALS FOR 
                    THE ARMED FORCES TO ADMINISTER OATHS.

    Section 936 of title 10, United States Code (article 136 of 
the Uniform Code of Military Justice), is amended by adding at 
the end the following new subsection:
    ``(c) The judges of the United States Court of Appeals for 
the Armed Forces may administer the oaths authorized by 
subsections (a) and (b).''.

SEC. 543. MODIFICATION OF AUTHORITIES ON SENIOR MEMBERS OF THE JUDGE 
                    ADVOCATE GENERALS' CORPS.

    (a) Department of the Army.--
            (1) Grade of judge advocate general.--Subsection 
        (a) of section 3037 of title 10, United States Code, is 
        amended by striking the third sentence and inserting 
        the following new sentence: ``The Judge Advocate 
        General, while so serving, has the grade of lieutenant 
        general.''.
            (2) Redesignation of assistant judge advocate 
        general as deputy judge advocate general.--Such section 
        is further amended--
                    (A) in subsection (a), by striking 
                ``Assistant Judge Advocate General'' each place 
                it appears and inserting ``Deputy Judge 
                Advocate General''; and
                    (B) in subsection (d), by striking 
                ``Assistant Judge Advocate General'' and 
                inserting ``Deputy Judge Advocate General''.
            (3) Clerical amendments.--(A) The heading of such 
        section is amended to read as follows:

``Sec. 3037. Judge Advocate General, Deputy Judge Advocate General, and 
                    general officers of Judge Advocate General's Corps: 
                    appointment; duties''.

            (B) The table of sections at the beginning of 
        chapter 305 of such title is amended by striking the 
        item relating to section 3037 and inserting the 
        following new item:

``3037. Judge Advocate General, Deputy Judge Advocate General, and 
          general officers of Judge Advocate General's Corps: 
          appointment; duties.''.

    (b) Grade of Judge Advocate General of the Navy.--Section 
5148(b) of such title is amended by striking the last sentence 
and inserting the following new sentence: ``The Judge Advocate 
General, while so serving, has the grade of vice admiral or 
lieutenant general, as appropriate.''.
    (c) Grade of Judge Advocate General of the Air Force.--
Section 8037(a) of such title is amended by striking the last 
sentence and inserting the following new sentence: ``The Judge 
Advocate General, while so serving, has the grade of lieutenant 
general.''.
    (d) Increase in Number of Officers Serving in Grades Above 
Major General and Rear Admiral.--Section 525(b) of such title 
is amended in paragraphs (1) and (2)(A) by striking ``15.7 
percent'' each place it appears and inserting ``16.3 percent''.
    (e) Legal Counsel to Chairman of the Joint Chiefs of 
Staff.--
            (1) In general.--Chapter 5 of title 10, United 
        States Code, is amended by adding at the end the 
        following new section:

``Sec. 156. Legal Counsel to the Chairman of the Joint Chiefs of Staff

    ``(a) In General.--There is a Legal Counsel to the Chairman 
of the Joint Chiefs of Staff.
    ``(b) Selection for Appointment.--Under regulations 
prescribed by the Secretary of Defense, the officer selected 
for appointment to serve as Legal Counsel to the Chairman of 
the Joint Chiefs of Staff shall be recommended by a board of 
officers convened by the Secretary of Defense that, insofar as 
practicable, is subject to the procedures applicable to 
selection boards convened under chapter 36 of this title.
    ``(c) Grade.--An officer appointed to serve as Legal 
Counsel to the Chairman of the Joint Chiefs of Staff shall, 
while so serving, hold the grade of brigadier general or rear 
admiral (lower half).
    ``(d) Duties.--The Legal Counsel of the Chairman of the 
Joint Chiefs of Staff shall perform such legal duties in 
support of the responsibilities of the Chairman of the Joint 
Chiefs of Staff as the Chairman may prescribe.''.
            (2) Clerical amendment.--The table of sections at 
        the beginning of chapter 5 of such title is amended by 
        adding at the end the following new item:

``156. Legal Counsel to the Chairman of the Joint Chiefs of Staff''.

    (f) Strategic Plan to Link General and Flag Officer 
Numbers, Assignments, and Development to the Missions and 
Requirements of the Department of Defense.--
            (1) Strategic plan required.--The Secretary of 
        Defense shall develop a strategic plan linking the 
        missions and requirements of the Department of Defense 
        for general and flag officers to the statutory limits 
        on the numbers of general and flag officers, and 
        current assignment, promotion, and joint officer 
        development policies for general and flag officers.
            (2) Advice of chairman of joint chiefs of staff.--
        The Secretary shall develop the strategic plan required 
        under paragraph (1) with the advice of the Chairman of 
        the Joint Chiefs of Staff.
            (3) Matters to be included.--The strategic plan 
        required under paragraph (1) shall include the 
        following:
                    (A) A description of the process for 
                identification of the present and emerging 
                requirements for general and flag officers and 
                recommendations for meeting these requirements.
                    (B) Identification of the numbers of 
                general and flag officers by service, grade, 
                and qualifications currently available compared 
                with the numbers needed to meet existing 
                statutory requirements in support of the 
                overall missions of the Department of Defense.
                    (C) An assessment of the problems or issues 
                (and proposed solutions for any such problems 
                or issues) arising from existing numerical 
                limitations on the number and grade 
                distribution of active and reserve component 
                general and flag officers under sections 525, 
                526, and 12004 of title 10, United States Code;
                    (D) A discussion of how wartime 
                requirements for additional general or flag 
                officers have been addressed in support of 
                Operation Enduring Freedom and Operation Iraqi 
                Freedom, including the usage of wartime or 
                national emergency authorities.
                    (E) An assessment of any problems or issues 
                (and proposed solutions for any such problems 
                or issues) arising from existing statutory 
                provisions regarding general and flag officer 
                assignments and grade requirements and the 
                need, if any, for revision of provisions in 
                title 10, United States Code, specific to 
                individual general and flag officer positions 
                along with recommendations to mitigate the need 
                for routine legislative intervention as 
                positions change to support organizational 
                demands.
                    (F) An assessment of the use currently 
                being made of reserve component flag and 
                general officers and discussion of barriers to 
                the qualification, selection, and assignment of 
                National Guard and Reserve officers for the 
                broadest possible range of positions of 
                importance and responsibility.
            (4) Deadline for submission.--The Secretary shall 
        submit the plan required under paragraph (1) to the 
        Committees on Armed Services of the Senate and the 
        House of Representatives not later than March 1, 2009.

SEC. 544. PROHIBITION AGAINST MEMBERS OF THE ARMED FORCES PARTICIPATING 
                    IN CRIMINAL STREET GANGS.

    The Secretary of Defense shall prescribe regulations to 
prohibit the active participation by members of the Armed 
Forces in a criminal street gang.

                       Subtitle E--Military Leave

SEC. 551. TEMPORARY ENHANCEMENT OF CARRYOVER OF ACCUMULATED LEAVE FOR 
                    MEMBERS OF THE ARMED FORCES.

    (a) Temporary Increase in Accumulated Leave Carryover 
Amount.--Section 701 of title 10, United States Code, is 
amended--
            (1) in subsection (b), by striking ``subsection (f) 
        and subsection (g)'' and inserting ``subsections (d), 
        (f), and (g)''; and
            (2) by inserting after subsection (c) the following 
        new subsection:
    ``(d) Notwithstanding subsection (b), during the period 
beginning on October 1, 2008, through December 31, 2010, a 
member may accumulate up to 75 days of leave.''.
    (b) Conforming Amendments Related to High Deployment 
Members.--Subsection (f) of such section is amended--
            (1) in paragraph (1)(A), by striking ``any 
        accumulated leave in excess of 60 days at the end of 
        the fiscal year'' and inserting ``at the end of the 
        fiscal year any accumulated leave in excess of the 
        number of days of leave authorized to be accumulated 
        under subsection (b) or (d)'';
            (2) in paragraph (1)(C)--
                    (A) by striking ``60 days'' and inserting 
                ``the days of leave authorized to be 
                accumulated under subsection (b) or (d) that 
                are''; and
                    (B) by inserting ``(or fourth fiscal year, 
                if accumulated while subsection (d) is in 
                effect)'' after ``third fiscal year''; and
            (3) in paragraph (2), by striking ``except for this 
        paragraph--'' and all that follows through the end of 
        the paragraph and inserting ``except for this 
        paragraph, would lose at the end of that fiscal year 
        any accumulated leave in excess of the number of days 
        of leave authorized to be accumulated under subsection 
        (b) or (d), shall be permitted to retain such leave 
        until the end of the second fiscal year after the 
        fiscal year in which such service on active duty is 
        terminated.''.
    (c) Conforming Amendment Related to Members in Missing 
Status.--Subsection (g) of such section is amended by striking 
``60-day limitation in subsection (b) and the 90-day limitation 
in subsection (f)'' and inserting ``limitations in subsections 
(b), (d), and (f)''.
    (d) Pay.--Section 501(b) of title 37, United States Code, 
is amended by adding at the end the following new paragraph:
    ``(6) An enlisted member of the armed forces who would lose 
accumulated leave in excess of 120 days of leave under section 
701(f)(1) of title 10 may elect to be paid in cash or by a 
check on the Treasurer of the United States for any leave in 
excess so accumulated for up to 30 days of such leave. A member 
may make an election under this paragraph only once.''.

SEC. 552. ENHANCEMENT OF REST AND RECUPERATION LEAVE.

    Section 705(b)(2) of title 10, United States Code, is 
amended by inserting ``for members whose qualifying tour of 
duty is 12 months or less, or for not more than 20 days for 
members whose qualifying tour of duty is longer than 12 
months,'' after ``for not more than 15 days''.

                   Subtitle F--Decorations and Awards

SEC. 561. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO 
                    LESLIE H. SABO, JR., FOR ACTS OF VALOR DURING THE 
                    VIETNAM WAR.

    (a) Authorization.--Notwithstanding the time limitations 
specified in section 3744 of title 10, United States Code, or 
any other time limitation with respect to the awarding of 
certain medals to persons who served in the Armed Forces, the 
President is authorized and requested to award the Medal of 
Honor under section 3741 of such title to Leslie H. Sabo, Jr., 
for the acts of valor during the Vietnam War described in 
subsection (b).
    (b) Acts of Valor Described.--The acts of valor referred to 
in subsection (a) are the actions of Leslie H. Sabo, Jr., on 
May 10, 1970, as a member of the United States Army serving in 
the grade of Specialist Four in the Republic of Vietnam with 
Company B of the 3d Battalion, 506th Infantry Regiment, 101st 
Airborne Division.

SEC. 562. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO 
                    HENRY SVEHLA FOR ACTS OF VALOR DURING THE KOREAN 
                    WAR.

    (a) Authorization.--Notwithstanding the time limitations 
specified in section 3744 of title 10, United States Code, or 
any other time limitation with respect to the awarding of 
certain medals to persons who served in the Armed Forces, the 
President is authorized and requested to award the Medal of 
Honor under section 3741 of such title to Henry Svehla for the 
acts of valor described in subsection (b).
    (b) Acts of Valor Described.--The acts of valor referred to 
in subsection (a) are the actions of Henry Svehla on June 12, 
1952, as a member of the United States Army serving in the 
grade of Private First Class in Korea with Company F of the 32d 
Infantry Regiment, 7th Infantry Division.

SEC. 563. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO 
                    WOODROW W. KEEBLE FOR ACTS OF VALOR DURING THE 
                    KOREAN WAR.

    (a) Waiver of Time Limitations.--Notwithstanding the time 
limitations specified in section 3744 of title 10, United 
States Code, or any other time limitation with respect to the 
awarding of certain medals to persons who served in the Armed 
Forces, the President is authorized and requested to award the 
Medal of Honor under section 3741 of such title to Woodrow W. 
Keeble for the acts of valor described in subsection (b).
    (b) Acts of Valor Described.--The acts of valor referred to 
in subsection (a) are the actions of Woodrow W. Keeble of the 
United States Army as an acting platoon leader on October 20, 
1950, during the Korean War.

SEC. 564. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO 
                    PRIVATE PHILIP G. SHADRACH FOR ACTS OF VALOR AS ONE 
                    OF ANDREWS' RAIDERS DURING THE CIVIL WAR.

    (a) Authorization.--Notwithstanding the time limitations 
specified in section 3744 of title 10, United States Code, or 
any other time limitation with respect to the awarding of 
certain medals to persons who served in the Armed Forces, the 
President is authorized and requested to award the Medal of 
Honor under section 3741 of such title posthumously to Private 
Philip G. Shadrach of Company K, 2nd Ohio Volunteer Infantry 
Regiment for the acts of valor described in subsection (b).
    (b) Acts of Valor Described.--The acts of valor referred to 
in subsection (a) are the actions of Philip G. Shadrach as one 
of Andrews' Raiders during the Civil War on April 12, 1862.

SEC. 565. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO 
                    PRIVATE GEORGE D. WILSON FOR ACTS OF VALOR AS ONE 
                    OF ANDREWS' RAIDERS DURING THE CIVIL WAR.

    (a) Authorization.--The President is authorized and 
requested to award the Medal of Honor under section 3741 of 
title 10, United States Code, posthumously to Private George D. 
Wilson of Company B, 2nd Ohio Volunteer Infantry Regiment for 
the acts of valor described in subsection (b).
    (b) Acts of Valor Described.--The acts of valor referred to 
in subsection (a) are the actions of George D. Wilson as one of 
Andrews' Raiders during the Civil War on April 12, 1862.

     Subtitle G--Impact Aid and Defense Dependents Education System

SEC. 571. 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, $30,000,000 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. 572. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.

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

SEC. 573. INCLUSION OF DEPENDENTS OF NON-DEPARTMENT OF DEFENSE 
                    EMPLOYEES EMPLOYED ON FEDERAL PROPERTY IN PLAN 
                    RELATING TO FORCE STRUCTURE CHANGES, RELOCATION OF 
                    MILITARY UNITS, OR BASE CLOSURES AND REALIGNMENTS.

    Section 574(e)(3) of the John Warner National Defense 
Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 
Stat. 2227; 20 U.S.C. 7703b note) is amended--
            (1) in subparagraph (A), by striking ``and'' at the 
        end;
            (2) in subparagraph (B), by striking the period at 
        the end and inserting ``; and''; and
            (3) by adding at the end the following new 
        subparagraph:
                    ``(C) elementary and secondary school 
                students who are dependents of personnel who 
                are not members of the Armed Forces or civilian 
                employees of the Department of Defense but who 
                are employed on Federal property.''.

SEC. 574. PAYMENT OF PRIVATE BOARDING SCHOOL TUITION FOR MILITARY 
                    DEPENDENTS IN OVERSEAS AREAS NOT SERVED BY DEFENSE 
                    DEPENDENTS' EDUCATION SYSTEM SCHOOLS.

    Section 1407(b)(1) of the Defense Dependents' Education Act 
of 1978 (20 U.S.C. 926(b)(1)) is amended by inserting after the 
first sentence the following new sentence: ``Schools to which 
tuition may be paid under this subsection may include private 
boarding schools in the United States.''.

                     Subtitle H--Military Families

SEC. 581. DEPARTMENT OF DEFENSE MILITARY FAMILY READINESS COUNCIL AND 
                    POLICY AND PLANS FOR MILITARY FAMILY READINESS.

    (a) In General.--Subchapter I of chapter 88 of title 10, 
United States Code, is amended by inserting after section 1781 
the following new sections:

``Sec. 1781a. Department of Defense Military Family Readiness Council

    ``(a) In General.--There is in the Department of Defense 
the Department of Defense Military Family Readiness Council (in 
this section referred to as the `Council').
    ``(b) Members.--(1) The Council shall consist of the 
following members:
            ``(A) The Under Secretary of Defense for Personnel 
        and Readiness, who shall serve as chair of the Council.
            ``(B) One representative of each of the Army, Navy, 
        Marine Corps, and Air Force, who shall be appointed by 
        the Secretary of Defense.
            ``(C) Three individuals appointed by the Secretary 
        of Defense from among representatives of military 
        family organizations, including military family 
        organizations of families of members of the regular 
        components and of families of members of the reserve 
        components.
            ``(D) In addition to the representatives appointed 
        under subparagraph (B), the senior enlisted advisors of 
        the Army, Navy, Marine Corps, and Air Force, or the 
        spouse of a senior enlisted member from each of the 
        Army, Navy, Marine Corps, and Air Force.
    ``(2) The term on the Council of the members appointed 
under paragraph (1)(C) shall be three years.
    ``(c) Meetings.--The Council shall meet not less often than 
twice each year.
    ``(d) Duties.--The duties of the Council shall include the 
following:
            ``(1) To review and make recommendations to the 
        Secretary of Defense regarding the policy and plans 
        required under section 1781b of this title.
            ``(2) To monitor requirements for the support of 
        military family readiness by the Department of Defense.
            ``(3) To evaluate and assess the effectiveness of 
        the military family readiness programs and activities 
        of the Department of Defense.
    ``(e) Annual Reports.--(1) Not later than February 1 each 
year, the Council shall submit to the Secretary of Defense and 
the congressional defense committees a report on military 
family readiness.
    ``(2) Each report under this subsection shall include the 
following:
            ``(A) An assessment of the adequacy and 
        effectiveness of the military family readiness programs 
        and activities of the Department of Defense during the 
        preceding fiscal year in meeting the needs and 
        requirements of military families.
            ``(B) Recommendations on actions to be taken to 
        improve the capability of the military family readiness 
        programs and activities of the Department of Defense to 
        meet the needs and requirements of military families, 
        including actions relating to the allocation of funding 
        and other resources to and among such programs and 
        activities.

``Sec. 1781b. Department of Defense policy and plans for military 
                    family readiness

    ``(a) Policy and Plans Required.--The Secretary of Defense 
shall develop a policy and plans for the Department of Defense 
for the support of military family readiness.
    ``(b) Purposes.--The purposes of the policy and plans 
required under subsection (a) are as follows:
            ``(1) To ensure that the military family readiness 
        programs and activities of the Department of Defense 
        are comprehensive, effective, and properly supported.
            ``(2) To ensure that support is continuously 
        available to military families in peacetime and in war, 
        as well as during periods of force structure change and 
        relocation of military units.
            ``(3) To ensure that the military family readiness 
        programs and activities of the Department of Defense 
        are available to all military families, including 
        military families of members of the regular components 
        and military families of members of the reserve 
        components.
            ``(4) To make military family readiness an explicit 
        element of applicable Department of Defense plans, 
        programs, and budgeting activities, and that 
        achievement of military family readiness is expressed 
        through Department-wide goals that are identifiable and 
        measurable.
            ``(5) To ensure that the military family readiness 
        programs and activities of the Department of Defense 
        undergo continuous evaluation in order to ensure that 
        resources are allocated and expended for such programs 
        and activities to achieve Department-wide family 
        readiness goals.
    ``(c) Elements of Policy.--The policy required under 
subsection (a) shall include the following elements:
            ``(1) A list of military family readiness programs 
        and activities.
            ``(2) Department of Defense-wide goals for military 
        family support, including joint programs, both for 
        military families of members of the regular components 
        and military families of members of the reserve 
        components.
            ``(3) Policies on access to military family support 
        programs and activities based on military family 
        populations served and geographical location.
            ``(4) Metrics to measure the performance and 
        effectiveness of the military family readiness programs 
        and activities of the Department of Defense.
            ``(5) A summary, by fiscal year, of the allocation 
        of funds (including appropriated funds and 
        nonappropriated funds) for major categories of military 
        family readiness programs and activities of the 
        Department of Defense, set forth for each of the 
        military departments and for the Office of the 
        Secretary of Defense.
    ``(d) Annual Report.--Not later than March 1, 2008, and 
each year thereafter, the Secretary of Defense shall submit to 
the congressional defense committees a report on the plans 
required under subsection (a) for the five-fiscal-year period 
beginning with the fiscal year in which the report is 
submitted. Each report shall include the plans covered by the 
report and an assessment of the discharge by the Department of 
Defense of the previous plans submitted under this section.''.
    (b) Report on Military Family Readiness Policy.--Not later 
than February 1, 2009, the Secretary of Defense shall submit to 
the congressional defense committees a report setting forth the 
policy developed under section 1781b of title 10, United States 
Code, as added by subsection (a).
    (c) Surveys of Military Families.--Section 1782 of title 
10, United States Code, is amended by adding at the end the 
following new subsection:
    ``(d) Survey Required for Fiscal Year 2010.--
Notwithstanding subsection (a), during fiscal year 2010, the 
Secretary of Defense shall conduct a survey otherwise 
authorized under such subsection. Thereafter, additional 
surveys may be conducted not less often than once every three 
fiscal years.''.
    (d) Clerical Amendment.--The table of sections at the 
beginning of subchapter I of chapter 88 of such title is 
amended by inserting after the item relating to section 1781 
the following new items:

``1781a. Department of Defense Military Family Readiness Council.
``1781b. Department of Defense policy and plans for military family 
          readiness.''.

SEC. 582. YELLOW RIBBON REINTEGRATION PROGRAM.

    (a) Establishment of Program.--The Secretary of Defense 
shall establish a national combat veteran reintegration program 
to provide National Guard and Reserve members and their 
families with sufficient information, services, referral, and 
proactive outreach opportunities throughout the entire 
deployment cycle. This program shall be known as the Yellow 
Ribbon Reintegration Program.
    (b) Purpose of Program; Deployment Cycle.--The Yellow 
Ribbon Reintegration Program shall consist of informational 
events and activities for members of the reserve components of 
the Armed Forces, their families, and community members to 
facilitate access to services supporting their health and well-
being through the four phases of the deployment cycle:
            (1) Pre-Deployment.
            (2) Deployment.
            (3) Demobilization.
            (4) Post-Deployment-Reconstitution.
    (c) Executive Agent.--The Secretary shall designate the 
Under Secretary of Defense for Personnel and Readiness as the 
Department of Defense executive agent for the Yellow Ribbon 
Reintegration Program.
    (d) Office for Reintegration Programs.--
            (1) Establishment.--The Under Secretary of Defense 
        for Personnel and Readiness shall establish the Office 
        for Reintegration Programs within the Office of the 
        Secretary of Defense. The office shall administer all 
        reintegration programs in coordination with State 
        National Guard organizations. The office shall be 
        responsible for coordination with existing National 
        Guard and Reserve family and support programs. The 
        Directors of the Army National Guard and Air National 
        Guard and the Chiefs of the Army Reserve, Marine Corps 
        Reserve, Navy Reserve, and Air Force Reserve may 
        appoint liaison officers to coordinate with the 
        permanent office staff. The office may also enter into 
        partnerships with other public entities, including the 
        Department of Health and Human Services, Substance 
        Abuse and the Mental Health Services Administration, 
        for access to necessary substance abuse and mental 
        health treatment services from local State-licensed 
        service providers.
            (2) Center for excellence in reintegration.--The 
        Office for Reintegration Programs shall establish a 
        Center for Excellence in Reintegration within the 
        office. The Center shall collect and analyze ``lessons 
        learned'' and suggestions from State National Guard and 
        Reserve organizations with existing or developing 
        reintegration programs. The Center shall also assist in 
        developing training aids and briefing materials and 
        training representatives from State National Guard and 
        Reserve organizations.
    (e) Advisory Board.--
            (1) Appointment.--The Secretary of Defense shall 
        appoint an advisory board to analyze the Yellow Ribbon 
        Reintegration Program and report on areas of success 
        and areas for necessary improvements. The advisory 
        board shall include the Director of the Army National 
        Guard, the Director of the Air National Guard, Chiefs 
        of the Army Reserve, Marine Corps Reserve, Navy 
        Reserve, and Air Force Reserve, the Assistant Secretary 
        of Defense for Reserve Affairs, an Adjutant General on 
        a rotational basis as determined by the Chief of the 
        National Guard Bureau, and any other Department of 
        Defense, Federal Government agency, or outside 
        organization as determined by the Secretary of Defense. 
        The members of the advisory board may designate 
        representatives in their stead.
            (2) Schedule.--The advisory board shall meet on a 
        schedule determined by the Secretary of Defense.
            (3) Initial reporting requirement.--The advisory 
        board shall issue internal reports as necessary and 
        shall submit an initial report to the Committees on 
        Armed Services of the Senate and House of 
        Representatives not later than 180 days after the end 
        of the one-year period beginning on the date of the 
        establishment of the Office for Reintegration Programs. 
        The report shall contain--
                    (A) an evaluation of the implementation of 
                the Yellow Ribbon Reintegration Program by 
                State National Guard and Reserve organizations;
                    (B) an assessment of any unmet resource 
                requirements; and
                    (C) recommendations regarding closer 
                coordination between the Office of 
                Reintegration Programs and State National Guard 
                and Reserve organizations.
            (4) Annual reports.--The advisory board shall 
        submit annual reports to the Committees on Armed 
        Services of the Senate and the House of Representatives 
        following the initial report by the first week in March 
        of subsequent years following the initial report.
    (f) State Deployment Cycle Support Teams.--The Office for 
Reintegration Programs may employ personnel to administer the 
Yellow Ribbon Reintegration Program at the State level. The 
primary function of team members shall be--
            (1) to implement the reintegration curriculum 
        through the deployment cycle described in subsection 
        (g);
            (2) to obtain necessary service providers; and
            (3) to educate service providers regarding the 
        unique military nature of the reintegration program.
    (g) Operation of Program Through Deployment Cycle.--
            (1) In general.--The Office for Reintegration 
        Programs shall analyze the demographics, placement of 
        State Family Assistance Centers and their resources 
        before a mobilization alert is issued to affected State 
        National Guard and Reserve organizations. The Office of 
        Reintegration Programs shall consult with affected 
        State National Guard and Reserve organizations 
        following the issuance of a mobilization alert and 
        implement the reintegration events in accordance with 
        the Reintegration Program phase model.
            (2) Pre-deployment phase.--The Pre-Deployment Phase 
        shall constitute the time from first notification of 
        mobilization until deployment of the mobilized National 
        Guard or Reserve unit. Events and activities shall 
        focus on providing education and ensuring the readiness 
        of members of the unit, their families, and affected 
        communities for the rigors of a combat deployment.
            (3) Deployment phase.--The Deployment Phase shall 
        constitute the period from deployment of the mobilized 
        National Guard or Reserve unit until the unit arrives 
        at a demobilization station inside the continental 
        United States. Events and services provided shall focus 
        on the challenges and stress associated with separation 
        and having a member in a combat zone. Information 
        sessions shall utilize State National Guard and Reserve 
        resources in coordination with the Employer Support of 
        Guard and Reserve Office, Transition Assistance 
        Advisors, and the State Family Programs Director.
            (4) Demobilization phase.--
                    (A) In general.--The Demobilization Phase 
                shall constitute the period from arrival of the 
                National Guard or Reserve unit at the 
                demobilization station until its departure for 
                home station.
                    (B) Initial reintegration activity.--The 
                purpose of this reintegration program is to 
                educate members about the resources that are 
                available to them and to connect members to 
                service providers who can assist them in 
                overcoming the challenges of reintegration.
            (5) Post-deployment-reconstitution phase.--
                    (A) In general.--The Post-Deployment-
                Reconstitution Phase shall constitute the 
                period from arrival at home station until 180 
                days following demobilization. Activities and 
                services provided shall focus on reconnecting 
                members with their families and communities and 
                providing resources and information necessary 
                for successful reintegration. Reintegration 
                events shall begin with elements of the Initial 
                Reintegration Activity program that were not 
                completed during the Demobilization Phase.
                    (B) 30-day, 60-day, and 90-day 
                reintegration activities.--The State National 
                Guard and Reserve organizations shall hold 
                reintegration activities at the 30-day, 60-day, 
                and 90-day interval following demobilization. 
                These activities shall focus on reconnecting 
                members and their families with the service 
                providers from the Initial Reintegration 
                Activity to ensure that members and their 
                families understand what benefits they are 
                entitled to and what resources are available to 
                help them overcome the challenges of 
                reintegration. The Reintegration Activities 
                shall also provide a forum for members and 
                their families to address negative behaviors 
                related to combat stress and transition.
                    (C) Member pay.--Members shall receive 
                appropriate pay for days spent attending the 
                Reintegration Activities at the 30-day, 60-day, 
                and 90-day intervals.
    (h) Outreach Services.--As part of the Yellow Ribbon 
Reintegration Program, the Office for Reintegration Programs 
may develop programs of outreach to members of the Armed Forces 
and their family members to educate such members and their 
family members about the assistance and services available to 
them under the Yellow Ribbon Reintegration Program. Such 
assistance and services may include the following:
            (1) Marriage counseling.
            (2) Services for children.
            (3) Suicide prevention.
            (4) Substance abuse awareness and treatment.
            (5) Mental health awareness and treatment.
            (6) Financial counseling.
            (7) Anger management counseling.
            (8) Domestic violence awareness and prevention.
            (9) Employment assistance.
            (10) Preparing and updating family care plans.
            (11) Development of strategies for living with a 
        member of the Armed Forces with post traumatic stress 
        disorder or traumatic brain injury.
            (12) Other services that may be appropriate to 
        address the unique needs of members of the Armed Forces 
        and their families who live in rural or remote areas 
        with respect to family readiness and servicemember 
        reintegration.
            (13) Assisting members of the Armed Forces and 
        their families find and receive assistance with 
        military family readiness and servicemember 
        reintegration, including referral services.
            (14) Development of strategies and programs that 
        recognize the need for long-term follow-up services for 
        reintegrating members of the Armed Forces and their 
        families for extended periods following deployments, 
        including between deployments.
            (15) Assisting members of the Armed Forces and 
        their families in receiving services and assistance 
        from the Department of Veterans Affairs, including 
        referral services.

SEC. 583. STUDY TO ENHANCE AND IMPROVE SUPPORT SERVICES AND PROGRAMS 
                    FOR FAMILIES OF MEMBERS OF REGULAR AND RESERVE 
                    COMPONENTS UNDERGOING DEPLOYMENT.

    (a) Study Required.--The Secretary of Defense shall conduct 
a study to determine the most effective means to enhance and 
improve family support programs for families of deployed 
members of the regular and reserve components of the Armed 
Forces before, during, and after deployment. The study shall 
also take into account the potential to utilize non-
governmental and local private sector entities and other 
Federal agencies having expertise in health and well-being of 
families, including family members who are children, infants, 
or toddlers.
    (b) Elements.--The study shall include at a minimum the 
following:
            (1) The assessment of the types of information on 
        health care and mental health benefits and services and 
        other community resources that should be made available 
        to members of the regular and reserve components and 
        their families, including--
                    (A) crisis services;
                    (B) marriage and family counseling; and
                    (C) financial counseling.
            (2) An assessment of means to improve support to 
        the parents and caretakers of military dependent 
        children in order to mitigate any adverse effects of 
        the deployment of members on such children, including 
        consideration of the following:
                    (A) The need to develop materials for 
                parents and other caretakers of children to 
                assist in responding to the effects of such 
                deployment on children, including extended and 
                multiple deployments and reunion (and the death 
                or injury of members during such deployment), 
                and the role that parents and caretakers can 
                play in addressing or mitigating such effects.
                    (B) The potential best practices that are 
                identified which build psychological and 
                emotional resiliency in children in coping with 
                deployment.
                    (C) The potential to improve dissemination 
                throughout the Armed Forces of the most 
                effective practices for outreach, training, and 
                building psychological and emotional resiliency 
                in children.
                    (D) The effectiveness of training materials 
                for education, mental health, health, and 
                family support professionals who provide 
                services to parents and caretakers of military 
                dependent children.
                    (E) The requirement to develop programs and 
                activities to increase awareness throughout the 
                military and civilian communities of the 
                effects of deployment of a military spouse or 
                guardians for such children and their families 
                and to increase collaboration within such 
                communities to address and mitigate such 
                effects.
                    (F) The development of training for early 
                child care and education, mental health, health 
                care, and family support professionals to 
                enhance the awareness of such professionals of 
                their role in assisting families in addressing 
                and mitigating the adverse implications of such 
                deployment.
                    (G) The conduct of research on best 
                practices for building psychological and 
                emotional resiliency in such children in coping 
                with the deployment of such members.
            (3) An assessment of the effectiveness of family-
        to-family support programs--
                    (A) in providing peer support for families 
                of deployed members of the regular and reserve 
                components;
                    (B) in identifying and preventing family 
                problems in such families;
                    (C) in reducing adverse outcomes for 
                children of such families, including poor 
                academic performance, behavioral problems, 
                stress, and anxiety;
                    (D) in improving family readiness and post 
                deployment transition for such families; and
                    (E) in utilizing spouses of members of the 
                Armed Forces as counselors for families of 
                deployed members, in order to assist such 
                families in coping before, during, and after 
                the deployment, and the best practices for 
                training spouses of members of the Armed Forces 
                to act as counselors for families of deployed 
                members.
            (4) An assessment of the effectiveness of 
        transition assistance programs and policies for 
        families of members during post-deployment transition 
        from a combat zone back to civilian or military 
        communities--
                    (A) in identifying signs and symptoms of 
                mental health conditions for both service 
                member and their families; and
                    (B) in receiving information and resources 
                available within the local communities to ease 
                transition.
            (5) An assessment of the impact of multiple 
        overseas deployments of members on their families, 
        particularly in the case of members serving in 
        Operation Iraqi Freedom and Operation Enduring Freedom, 
        including financial impacts and emotional impacts.
            (6) An assessment of the most effective timing of 
        providing information and support to the families of 
        deployed members before, during, and after deployment, 
        including at least six months after the date of return 
        of deployed members.
            (7) An assessment of the need for additional long-
        term research on the effects of multiple wartime 
        deployments on families, including children, and 
        critical areas of focus that should be addressed by 
        such research.
    (c) Report on Results of Study.--Not later than 180 days 
after the date of enactment of this Act, the Secretary of 
Defense shall submit to the congressional defense committees a 
report containing the results of the study conducted under 
subsection (a).

SEC. 584. PROTECTION OF CHILD CUSTODY ARRANGEMENTS FOR PARENTS WHO ARE 
                    MEMBERS OF THE ARMED FORCES DEPLOYED IN SUPPORT OF 
                    A CONTINGENCY OPERATION.

    (a) Protection of Servicemembers Against Default 
Judgments.--Section 201(a) of the Servicemembers Civil Relief 
Act (50 U.S.C. App. 521(a)) is amended by inserting ``, 
including any child custody proceeding,'' after ``proceeding''.
    (b) Stay of Proceedings When Servicemember Has Notice.--
Section 202(a) of the Servicemembers Civil Relief Act (50 
U.S.C. App. 522(a)) is amended by inserting ``, including any 
child custody proceeding,'' after ``civil action or 
proceeding''.

SEC. 585. FAMILY LEAVE IN CONNECTION WITH INJURED MEMBERS OF THE ARMED 
                    FORCES.

    (a) Servicemember Family Leave.--
            (1) Definitions.--Section 101 of the Family and 
        Medical Leave Act of 1993 (29 U.S.C. 2611) is amended 
        by adding at the end the following new paragraphs:
            ``(14) Active duty.--The term `active duty' means 
        duty under a call or order to active duty under a 
        provision of law referred to in section 101(a)(13)(B) 
        of title 10, United States Code.
            ``(15) Contingency operation.--The term 
        `contingency operation' has the same meaning given such 
        term in section 101(a)(13) of title 10, United States 
        Code.
            ``(16) Covered servicemember.--The term `covered 
        servicemember' means a member of the Armed Forces, 
        including a member of the National Guard or Reserves, 
        who is undergoing medical treatment, recuperation, or 
        therapy, is otherwise in outpatient status, or is 
        otherwise on the temporary disability retired list, for 
        a serious injury or illness.
            ``(17) Outpatient status.--The term `outpatient 
        status', with respect to a covered servicemember, means 
        the status of a member of the Armed Forces assigned 
        to--
                    ``(A) a military medical treatment facility 
                as an outpatient; or
                    ``(B) a unit established for the purpose of 
                providing command and control of members of the 
                Armed Forces receiving medical care as 
                outpatients.
            ``(18) Next of kin.--The term `next of kin', used 
        with respect to an individual, means the nearest blood 
        relative of that individual.
            ``(19) Serious injury or illness.--The term 
        `serious injury or illness', in the case of a member of 
        the Armed Forces, including a member of the National 
        Guard or Reserves, means an injury or illness incurred 
        by the member in line of duty on active duty in the 
        Armed Forces that may render the member medically unfit 
        to perform the duties of the member's office, grade, 
        rank, or rating.''.
            (2) Entitlement to leave.--Section 102(a) of such 
        Act (29 U.S.C. 2612(a)) is amended--
                    (A) in paragraph (1), by adding at the end 
                the following new subparagraph:
                    ``(E) Because of any qualifying exigency 
                (as the Secretary shall, by regulation, 
                determine) arising out of the fact that the 
                spouse, or a son, daughter, or parent of the 
                employee is on active duty (or has been 
                notified of an impending call or order to 
                active duty) in the Armed Forces in support of 
                a contingency operation.''; and
                    (B) by adding at the end the following new 
                paragraphs:
            ``(3) Servicemember family leave.--Subject to 
        section 103, an eligible employee who is the spouse, 
        son, daughter, parent, or next of kin of a covered 
        servicemember shall be entitled to a total of 26 
        workweeks of leave during a 12-month period to care for 
        the servicemember. The leave described in this 
        paragraph shall only be available during a single 12-
        month period.
            ``(4) Combined leave total.--During the single 12-
        month period described in paragraph (3), an eligible 
        employee shall be entitled to a combined total of 26 
        workweeks of leave under paragraphs (1) and (3). 
        Nothing in this paragraph shall be construed to limit 
        the availability of leave under paragraph (1) during 
        any other 12-month period.''.
            (3) Requirements relating to leave.--
                    (A) Schedule.--Section 102(b) of such Act 
                (29 U.S.C. 2612(b)) is amended--
                            (i) in paragraph (1), in the second 
                        sentence--
                                    (I) by striking ``section 
                                103(b)(5)'' and inserting 
                                ``subsection (b)(5) or (f) (as 
                                appropriate) of section 103''; 
                                and
                                    (II) by inserting ``or 
                                under subsection (a)(3)'' after 
                                ``subsection (a)(1)'';
                            (ii) in paragraph (1), by inserting 
                        after the second sentence the following 
                        new sentence: ``Subject to subsection 
                        (e)(3) and section 103(f), leave under 
                        subsection (a)(1)(E) may be taken 
                        intermittently or on a reduced leave 
                        schedule.''; and
                            (iii) in paragraph (2), by 
                        inserting ``or under subsection 
                        (a)(3)'' after ``subsection (a)(1)''.
                    (B) Substitution of paid leave.--Section 
                102(d) of such Act (29 U.S.C. 2612(d)) is 
                amended--
                            (i) in paragraph (1)--
                                    (I) by inserting ``(or 26 
                                workweeks in the case of leave 
                                provided under subsection 
                                (a)(3))'' after ``12 
                                workweeks'' the first place it 
                                appears; and
                                    (II) by inserting ``(or 26 
                                workweeks, as appropriate)'' 
                                after ``12 workweeks'' the 
                                second place it appears;
                            (ii) in paragraph (2)(A), by 
                        striking ``or (C)'' and inserting 
                        ``(C), or (E)''; and
                            (iii) in paragraph (2)(B), by 
                        adding at the end the following: ``An 
                        eligible employee may elect, or an 
                        employer may require the employee, to 
                        substitute any of the accrued paid 
                        vacation leave, personal leave, family 
                        leave, or medical or sick leave of the 
                        employee for leave provided under 
                        subsection (a)(3) for any part of the 
                        26-week period of such leave under such 
                        subsection, except that nothing in this 
                        title requires an employer to provide 
                        paid sick leave or paid medical leave 
                        in any situation in which the employer 
                        would not normally provide any such 
                        paid leave.''.
                    (C) Notice.--Section 102(e) of such Act (29 
                U.S.C. 2612(e)) is amended--
                            (i) in paragraph (2), by inserting 
                        ``or under subsection (a)(3)'' after 
                        ``subsection (a)(1)''; and
                            (ii) by adding at the end the 
                        following new paragraph:
            ``(3) Notice for leave due to active duty of family 
        member.--In any case in which the necessity for leave 
        under subsection (a)(1)(E) is foreseeable, whether 
        because the spouse, or a son, daughter, or parent, of 
        the employee is on active duty, or because of 
        notification of an impending call or order to active 
        duty in support of a contingency operation, the 
        employee shall provide such notice to the employer as 
        is reasonable and practicable.''.
                    (D) Spouses employed by same employer.--
                Section 102(f) of such Act (29 U.S.C. 2612(f)) 
                is amended--
                            (i) by redesignating paragraphs (1) 
                        and (2) as subparagraphs (A) and (B), 
                        and aligning the margins of the 
                        subparagraphs with the margins of 
                        section 102(e)(2)(A);
                            (ii) by striking ``In any'' and 
                        inserting the following:
            ``(1) In general.--In any''; and
                            (iii) by adding at the end the 
                        following:
            ``(2) Servicemember family leave.--
                    ``(A) In general.--The aggregate number of 
                workweeks of leave to which both that husband 
                and wife may be entitled under subsection (a) 
                may be limited to 26 workweeks during the 
                single 12-month period described in subsection 
                (a)(3) if the leave is--
                            ``(i) leave under subsection 
                        (a)(3); or
                            ``(ii) a combination of leave under 
                        subsection (a)(3) and leave described 
                        in paragraph (1).
                    ``(B) Both limitations applicable.--If the 
                leave taken by the husband and wife includes 
                leave described in paragraph (1), the 
                limitation in paragraph (1) shall apply to the 
                leave described in paragraph (1).''.
                    (E) Certification requirements.--Section 
                103 of such Act (29 U.S.C. 2613) is amended--
                            (i) in subsection (a)--
                                    (I) by striking ``section 
                                102(a)(1)'' and inserting 
                                ``paragraph (1) or paragraph 
                                (3) of section 102(a)''; and
                                    (II) by inserting ``or of 
                                the next of kin of an 
                                individual in the case of leave 
                                taken under such paragraph 
                                (3),'' after ``parent of the 
                                employee,''; and
                            (ii) by adding at the end the 
                        following:
    ``(f) Certification Related to Active Duty or Call to 
Active Duty.--An employer may require that a request for leave 
under section 102(a)(1)(E) be supported by a certification 
issued at such time and in such manner as the Secretary may by 
regulation prescribe. If the Secretary issues a regulation 
requiring such certification, the employee shall provide, in a 
timely manner, a copy of such certification to the employer.''.
                    (F) Failure to return.--Section 104(c) of 
                such Act (29 U.S.C. 2614(c)) is amended--
                            (i) in paragraph (2)(B)(i), by 
                        inserting ``or under section 
                        102(a)(3)'' before the semicolon; and
                            (ii) in paragraph (3)(A)--
                                    (I) in clause (i), by 
                                striking ``or'' at the end;
                                    (II) in clause (ii), by 
                                striking the period and 
                                inserting ``; or''; and
                                    (III) by adding at the end 
                                the following:
                            ``(iii) a certification issued by 
                        the health care provider of the 
                        servicemember being cared for by the 
                        employee, in the case of an employee 
                        unable to return to work because of a 
                        condition specified in section 
                        102(a)(3).''.
                    (G) Enforcement.--Section 107 of such Act 
                (29 U.S.C. 2617) is amended, in subsection 
                (a)(1)(A)(i)(II), by inserting ``(or 26 weeks, 
                in a case involving leave under section 
                102(a)(3))'' after ``12 weeks''.
                    (H) Instructional employees.--Section 108 
                of such Act (29 U.S.C. 2618) is amended, in 
                subsections (c)(1), (d)(2), and (d)(3), by 
                inserting ``or under section 102(a)(3)'' after 
                ``section 102(a)(1)''.
    (b) Servicemember Family Leave for Civil Service 
Employees.--
            (1) Definitions.--Section 6381 of title 5, United 
        States Code, is amended--
                    (A) in paragraph (5), by striking ``and'' 
                at the end;
                    (B) in paragraph (6), by striking the 
                period and inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(7) the term `active duty' means duty under a 
        call or order to active duty under a provision of law 
        referred to in section 101(a)(13)(B) of title 10;
            ``(8) the term `covered servicemember' means a 
        member of the Armed Forces, including a member of the 
        National Guard or Reserves, who is undergoing medical 
        treatment, recuperation, or therapy, is otherwise in an 
        outpatient status, or is otherwise on the temporary 
        disability retired list, for a serious injury or 
        illness;
            ``(9) the term `outpatient status', with respect to 
        a covered servicemember, means the status of a member 
        of the Armed Forces assigned to--
                    ``(A) a military medical treatment facility 
                as an outpatient; or
                    ``(B) a unit established for the purpose of 
                providing command and control of members of the 
                Armed Forces receiving medical care as 
                outpatients;
            ``(10) the term `next of kin', used with respect to 
        an individual, means the nearest blood relative of that 
        individual; and
            ``(11) the term `serious injury or illness', in the 
        case of a member of the Armed Forces, means an injury 
        or illness incurred by the member in line of duty on 
        active duty in the Armed Forces that may render the 
        member medically unfit to perform the duties of the 
        member's office, grade, rank, or rating.''.
            (2) Entitlement to leave.--Section 6382(a) of such 
        title is amended by adding at the end the following:
    ``(3) Subject to section 6383, an employee who is the 
spouse, son, daughter, parent, or next of kin of a covered 
servicemember shall be entitled to a total of 26 administrative 
workweeks of leave during a 12-month period to care for the 
servicemember. The leave described in this paragraph shall only 
be available during a single 12-month period.
    ``(4) During the single 12-month period described in 
paragraph (3), an employee shall be entitled to a combined 
total of 26 administrative workweeks of leave under paragraphs 
(1) and (3). Nothing in this paragraph shall be construed to 
limit the availability of leave under paragraph (1) during any 
other 12-month period.''.
            (3) Requirements relating to leave.--
                    (A) Schedule.--Section 6382(b) of such 
                title is amended--
                            (i) in paragraph (1), in the second 
                        sentence--
                                    (I) by striking ``section 
                                6383(b)(5)'' and inserting 
                                ``subsection (b)(5) or (f) (as 
                                appropriate) of section 6383''; 
                                and
                                    (II) by inserting ``or 
                                under subsection (a)(3)'' after 
                                ``subsection (a)(1)''; and
                            (ii) in paragraph (2), by inserting 
                        ``or under subsection (a)(3)'' after 
                        ``subsection (a)(1)''.
                    (B) Substitution of paid leave.--Section 
                6382(d) of such title is amended by adding at 
                the end the following: ``An employee may elect 
                to substitute for leave under subsection (a)(3) 
                any of the employee's accrued or accumulated 
                annual or sick leave under subchapter I for any 
                part of the 26-week period of leave under such 
                subsection.''.
                    (C) Notice.--Section 6382(e) of such title 
                is amended by inserting ``or under subsection 
                (a)(3)'' after ``subsection (a)(1)''.
                    (D) Certification.--Section 6383 of such 
                title is amended by adding at the end the 
                following:
    ``(f) An employing agency may require that a request for 
leave under section 6382(a)(3) be supported by a certification 
issued at such time and in such manner as the Office of 
Personnel Management may by regulation prescribe.''.

SEC. 586. FAMILY CARE PLANS AND DEFERMENT OF DEPLOYMENT OF SINGLE 
                    PARENT OR DUAL MILITARY COUPLES WITH MINOR 
                    DEPENDENTS.

    The Secretary of Defense shall establish appropriate 
procedures to ensure that an adequate family care plan is in 
place for a member of the Armed Forces with minor dependents 
who is a single parent or whose spouse is also a member of the 
Armed Forces when the member may be deployed in an area for 
which imminent danger pay is authorized under section 310 of 
title 37, United States Code. Such procedures should allow the 
member to request a deferment of deployment due to unforeseen 
circumstances, and the request for such a deferment should be 
considered and responded to promptly.

SEC. 587. EDUCATION AND TREATMENT SERVICES FOR MILITARY DEPENDENT 
                    CHILDREN WITH AUTISM.

    (a) Assessment of Availability of Services.--The Secretary 
of Defense shall conduct a comprehensive assessment of the 
availability of Federal, State, and local education and 
treatment services on and in the vicinity of a covered military 
installation for children of members of the Armed Forces who 
are diagnosed with autism. This assessment shall include the 
following:
            (1) The local availability of adequate educational 
        services for children with autism.
            (2) The local availability of adequate medical 
        services for children with autism.
            (3) The local availability of supplemental services 
        for children with autism.
            (4) The ease of access of children with autism to 
        adequate educational services, such as the length of 
        time on waiting lists.
    (b) Review of Best Practices.--In preparing the assessment 
under subsection (a), the Secretary of Defense shall conduct a 
review of best practices in the United States in the provision 
of covered educational services and treatment services for 
children with autism, including an assessment of Federal and 
State education and treatment services for children with autism 
in each State, with an emphasis on locations where eligible 
members and eligible dependents reside. The Secretary of 
Defense shall conduct the review in coordination with the 
Secretary of Education.
    (c) Personnel Management Requirements.--
            (1) Limited stationing options.--The Secretary of 
        the military department concerned shall ensure that, 
        whenever practicable, eligible members are only 
        assigned to military installations that are identified 
        in the report required by subsection (g)(1).
            (2) Stabilization policy.--The Secretary of the 
        military department concerned shall ensure that, 
        whenever practicable, the families of eligible members 
        residing at a military installation that is identified 
        in such report are permitted to remain at that 
        installation for a period of not less than four years.
    (d) Case Managers and Services.--
            (1) Case managers.--The Secretary of the military 
        department concerned shall ensure that eligible members 
        are assigned case managers for both medical services 
        and covered educational services for eligible 
        dependents, which shall be required under the 
        Exceptional Family Member Program pursuant to the 
        policy established by the Secretary.
            (2) Individualized services plan.--The Secretary of 
        the military department concerned shall provide for the 
        voluntary development for eligible dependents of 
        individualized autism services plans for use by case 
        managers, caregivers, and families to ensure continuity 
        of services throughout the active military service of 
        eligible members.
            (3) Autism support centers.--Secretary of the 
        military department concerned may establish local 
        centers on military installations for the purpose of 
        providing and coordinating autism services for eligible 
        dependents.
            (4) Partnerships and contracts.--The Secretary of 
        the military department concerned is encouraged to 
        enter into partnerships or contracts with other 
        appropriate public and private entities to carry out 
        the responsibilities of this section.
    (e) Demonstration Projects.--
            (1) Projects authorized.--The Secretary of Defense 
        may conduct one or more demonstration projects to 
        evaluate improved approaches to the provision of 
        covered educational services and treatment services to 
        eligible dependents for the purpose of evaluating 
        strategies for integrated treatment and case manager 
        services, including early intervention and diagnosis, 
        medical care, parent involvement, special education 
        services, intensive behavioral intervention, and 
        language, communications, and other interventions 
        considered appropriate by the Secretary.
            (2) Case managers and services plan.--Each 
        demonstration project shall include the assignment of 
        case managers under paragraph (1) of subsection (d) and 
        utilize the services plans prepared for eligible 
        dependents under paragraph (2) of such subsection.
            (3) Supervisory level providers.--The Secretary of 
        Defense may utilize for purposes of the demonstration 
        projects personnel who are professionals with a level 
        (as determined by the Secretary) of post-secondary 
        education that is appropriate for the provision of safe 
        and effective services for autism and who are from an 
        accredited educational facility in the mental health, 
        human development, social work, or education field to 
        act as supervisory level providers of behavioral 
        intervention services for autism. In so acting, such 
        personnel may be authorized--
                    (A) to develop and monitor intensive 
                behavior intervention plans for eligible 
                dependents who are participating in the 
                demonstration projects; and
                    (B) to provide appropriate training in the 
                provision of approved services to participating 
                eligible dependents.
            (4) Services under corporate services provider 
        model.--In carrying out the demonstration projects, the 
        Secretary of Defense may utilize a corporate services 
        provider model. Employees of a provider under such a 
        model shall include personnel who implement special 
        educational and behavioral intervention plans for 
        eligible dependents that are developed, reviewed, and 
        maintained by supervisory level providers approved by 
        the Secretary. In authorizing such a model, the 
        Secretary shall establish--
                    (A) minimum education, training, and 
                experience criteria required to be met by 
                employees who provide services to eligible 
                dependents;
                    (B) requirements for supervisory personnel 
                and supervision, including requirements for 
                supervisor credentials and for the frequency 
                and intensity of supervision; and
                    (C) such other requirements as the 
                Secretary considers appropriate to ensure 
                safety and the protection of the eligible 
                dependents who receive services from such 
                employees under the demonstration projects.
            (5) Period.--If the Secretary of Defense determines 
        to conduct demonstration projects under this 
        subsection, the Secretary shall commence such 
        demonstration projects not later than 180 days after 
        the date of the enactment of this Act. The 
        demonstration projects shall be conducted for not less 
        than two years.
            (6) Evaluation.--The Secretary of Defense shall 
        conduct an evaluation of each demonstration project 
        conducted under this section. The evaluation shall 
        include the following:
                    (A) An assessment of the extent to which 
                the activities under the demonstration project 
                contributed to positive outcomes for eligible 
                dependents.
                    (B) An assessment of the extent to which 
                the activities under the demonstration project 
                led to improvements in services and continuity 
                of care for eligible dependents.
                    (C) An assessment of the extent to which 
                the activities under the demonstration project 
                improved military family readiness and enhanced 
                military retention.
    (f) Relationship to Other Benefits.--Nothing is this 
section precludes the eligibility of members of the Armed 
Forces and their dependents for extended benefits under section 
1079 of title 10, United States Code.
    (g) Reports.--
            (1) Report identifying covered military 
        installations.--As a result of the assessment required 
        by subsection (a), the Secretary of Defense shall 
        submit to the congressional defense committees, not 
        later than December 31, 2008, a report identifying 
        those covered military installations that have covered 
        educational services and facilities available (on the 
        installation or in the vicinity of the installation) 
        for eligible dependents that provide special education 
        and related services consistent with the Individuals 
        with Disabilities Education Act (20 U.S.C. 1400 et 
        seq.).
            (2) Reports on demonstration projects.--Not later 
        than 30 months after the commencement of any 
        demonstration project under subsection (e), the 
        Secretary of Defense shall submit to the Committees on 
        Armed Services of the Senate and the House of 
        Representatives a report on the demonstration project. 
        The report shall include a description of the project, 
        the results of the evaluation under subsection (e)(6) 
        with respect to the project, and a description of plans 
        for the further provision of services for eligible 
        dependents under the project.
    (h) Covered Educational Services Plan.--After completing 
the assessment required by subsection (a) and the report 
required by subsection (g)(1), the Secretary of Defense shall 
develop a plan that would ensure that all eligible dependents 
are able to obtain covered educational services. In the event 
that eligible members are assigned to military installations 
that are not identified in the report required by subsection 
(g)(1), the plan should ensure that such eligible dependents 
are still able to obtain covered educational services, 
including by the use of authority granted to the Secretary 
under section 2164 of title 10, United States Code. The plan 
shall also include any legislative actions that the Secretary 
recommends to implement the plan and describe what funding or 
funding mechanisms may be needed to ensure eligible dependents 
obtain covered educational services. The Secretary shall submit 
the plan to the congressional defense committees not later than 
July 1, 2009.
    (i) Definitions.--In this section:
            (1) The term ``autism'' refers to the Autism 
        Spectrum Disorders, which are developmental 
        disabilities that cause substantial impairments in the 
        areas of social interaction, emotional regulation, 
        communication, and the integration of higher-order 
        cognitive processes and are often characterized by the 
        presence of unusual behaviors and interests. The term 
        includes autistic disorder, pervasive developmental 
        disorder (not otherwise specified), and Asperger's 
        syndrome.
            (2) The term ``child'' has the meaning given that 
        term in section 1072 of title 10, United States Code.
            (3) The term ``covered military installation'' 
        means a military installation at which at least 1,000 
        members of the Armed Forces are assigned who are 
        eligible for an assignment accompanied by dependents.
            (4) The term ``eligible member'' means a member of 
        the Armed Forces who--
                    (A) has a dependent child who is diagnosed 
                with autism; and
                    (B) is enrolled in an Exceptional Family 
                Member Program of the Department of Defense.
            (5) The term ``eligible dependent'' means a child 
        of an eligible member who is diagnosed with autism.
            (6) 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)), except that the term includes publicly 
        financed schools in communities, Department of Defense 
        domestic dependent elementary and secondary schools, 
        and schools of the defense dependents' education 
        system.
            (7) The term ``covered educational services'' 
        includes behavioral intervention services for autism, 
        such as Applied Behavioral Analysis.

SEC. 588. COMMENDATION OF EFFORTS OF PROJECT COMPASSION IN PAYING 
                    TRIBUTE TO MEMBERS OF THE ARMED FORCES WHO HAVE 
                    FALLEN IN THE SERVICE OF THE UNITED STATES.

    (a) Commendation.--Congress, on the behalf of the people of 
the United States, commends Kaziah M. Hancock and the four 
other volunteer professional portrait artists of the nonprofit 
organization known as Project Compassion, as well as the entire 
Project Compassion organization, for their ongoing efforts to 
provide, without charge, to the family of each member of the 
Armed Forces who has died on active duty since September 11, 
2001, a museum-quality original oil portrait of the member.
    (b) Sense of Congress.--It is the sense of Congress that 
the people of the United States owe the deepest gratitude to 
Kaziah M. Hancock and the members of Project Compassion.

                       Subtitle I--Other Matters

SEC. 590. UNIFORM PERFORMANCE POLICIES FOR MILITARY BANDS AND OTHER 
                    MUSICAL UNITS.

    (a) In General.--
            (1) Consolidation of separate authorities.--Chapter 
        49 of title 10, United States Code, is amended by 
        inserting after section 973 the following new section:

``Sec. 974. Uniform performance policies for military bands and other 
                    musical units

    ``(a) Restrictions on Competition and Remuneration.--Bands, 
ensembles, choruses, or similar musical units of the armed 
forces, including individual members of such a unit performing 
in an official capacity, may not--
            ``(1) engage in the performance of music in 
        competition with local civilian musicians; or
            ``(2) receive remuneration for official 
        performances.
    ``(b) Members Performing in Personal Capacity.--A member of 
a band, ensemble, chorus, or similar musical unit of the armed 
forces may engage in the performance of music in the member's 
personal capacity, as an individual or part of a group, for 
remuneration or otherwise, if the member--
            ``(1) does not wear a military uniform for the 
        performance;
            ``(2) does not identify himself or herself as a 
        member of the armed forces in connection with the 
        performance; and
            ``(3) complies with all other applicable 
        regulations and standards of conduct.
    ``(c) Recordings.--(1) When authorized pursuant to 
regulations prescribed by the Secretary of Defense for purposes 
of this section, bands, ensembles, choruses, or similar musical 
units of the armed forces may produce recordings for 
distribution to the public, at a cost not to exceed production 
and distribution expenses.
    ``(2) Amounts received in payment for recordings 
distributed to the public under this subsection shall be 
credited to the appropriation or account providing the funds 
for the production of such recordings. Any amounts so credited 
shall be merged with amounts in the appropriation or account to 
which credited, and shall be available for the same purposes, 
and subject to the same conditions and limitations, as amounts 
in such appropriation or account.
    ``(d) Performance of Music in Competition With Local 
Civilian Musicians Defined.--(1) In this section, the term 
`performance of music in competition with local civilian 
musicians' includes performances--
            ``(A) that are more than incidental to events that 
        are not supported solely by appropriated funds and are 
        not free to the public; and
            ``(B) of background, dinner, dance, or other social 
        music at events, regardless of location, that are not 
        supported solely by appropriated funds.
    ``(2) The term does not include performances--
            ``(A) at official Federal Government events that 
        are supported solely by appropriated funds;
            ``(B) at concerts, parades, and other events that 
        are patriotic events or celebrations of national 
        holidays and are free to the public; or
            ``(C) that are incidental, such as short 
        performances of military or patriotic music to open or 
        close events, to events that are not supported solely 
        by appropriated funds, in compliance with applicable 
        rules and regulations.''.
            (2) Clerical amendment.--The table of sections at 
        the beginning of such chapter is amended by inserting 
        after the item relating to section 973 the following 
        new item:

``974. Uniform performance policies for military bands and other musical 
          units.''.

    (b) Repeal of Separate Service Authorities.--
            (1) Repeal.--Sections 3634, 6223, and 8634 of such 
        title are repealed.
            (2) Table of sections.--(A) The table of sections 
        at the beginning of chapter 349 of such title is 
        amended by striking the item relating to section 3634.
            (B) The table of sections at the beginning of 
        chapter 565 of such title is amended by striking the 
        item relating to section 6223.
            (C) The table of sections at the beginning of 
        chapter 849 of such title is amended by striking the 
        item relating to section 8634.

SEC. 591. TRANSPORTATION OF REMAINS OF DECEASED MEMBERS OF THE ARMED 
                    FORCES AND CERTAIN OTHER PERSONS.

    Section 1482(a)(8) of title 10, United States Code, is 
amended by adding at the end the following new sentence: ``When 
transportation of the remains includes transportation by 
aircraft under section 562 of the John Warner National Defense 
Authorization Act for Fiscal Year 2007 (Public Law 109-364; 10 
U.S.C. 1482 note), the Secretary concerned shall provide, to 
the maximum extent practicable, for delivery of the remains by 
air to the commercial, general aviation, or military airport 
nearest to the place selected by the designee.''.

SEC. 592. EXPANSION OF NUMBER OF ACADEMIES SUPPORTABLE IN ANY STATE 
                    UNDER STARBASE PROGRAM.

    Section 2193b(c)(3) of title 10, United States Code, is 
amended--
            (1) in subparagraph (A), by striking ``more than 
        two academies'' and inserting ``more than four 
        academies''; and
            (2) in subparagraph (B), by striking ``in excess of 
        two'' both places it appears and inserting ``in excess 
        of four''.

SEC. 593. GIFT ACCEPTANCE AUTHORITY.

    (a) Permanent Authority To Accept Gifts on Behalf of the 
Wounded.--Section 2601(b) of title 10, United States Code, is 
amended by striking paragraph (4).
    (b) Limitation on Solicitation of Gifts.--The Secretary of 
Defense shall prescribe regulations implementing sections 2601 
and 2608 of title 10, United States Code, that prohibit the 
solicitation of any gift under such sections by any employee of 
the Department of Defense if the nature or circumstances of 
such solicitation would compromise the integrity or the 
appearance of integrity of any program of the Department of 
Defense or of any individual involved in such program.

SEC. 594. CONDUCT BY MEMBERS OF THE ARMED FORCES AND VETERANS OUT OF 
                    UNIFORM DURING HOISTING, LOWERING, OR PASSING OF 
                    UNITED STATES FLAG.

    Section 9 of title 4, United States Code, is amended by 
striking ``all persons present'' and all that follows through 
the end of the section and inserting the following: ``all 
persons present in uniform should render the military salute. 
Members of the Armed Forces and veterans who are present but 
not in uniform may render the military salute. All other 
persons present should face the flag and stand at attention 
with their right hand over the heart, or if applicable, remove 
their headdress with their right hand and hold it at the left 
shoulder, the hand being over the heart. Citizens of other 
countries present should stand at attention. All such conduct 
toward the flag in a moving column should be rendered at the 
moment the flag passes.''.

SEC. 595. ANNUAL REPORT ON CASES REVIEWED BY NATIONAL COMMITTEE FOR 
                    EMPLOYER SUPPORT OF THE GUARD AND RESERVE.

    Section 4332 of title 38, United States Code, is amended--
            (1) by redesignating paragraphs (2), (3), (4), (5), 
        and (6) as paragraphs (3), (4), (5), (6), and (7) 
        respectively;
            (2) by inserting after paragraph (1) the following 
        new paragraph (2):
            ``(2) The number of cases reviewed by the Secretary 
        of Defense under the National Committee for Employer 
        Support of the Guard and Reserve of the Department of 
        Defense during the fiscal year for which the report is 
        made.''; and
            (3) in paragraph (5), as so redesignated, by 
        striking ``(2), or (3)'' and inserting ``(2), (3), or 
        (4)''.

SEC. 596. MODIFICATION OF CERTIFICATE OF RELEASE OR DISCHARGE FROM 
                    ACTIVE DUTY (DD FORM 214).

    The Secretary of Defense, in consultation with the 
Secretary of Veterans Affairs, shall modify the Certificate of 
Release or Discharge from Active Duty (DD Form 214) in order to 
permit a member of the Armed Forces, upon discharge or release 
from active duty in the Armed Forces, to elect that the DD-214 
issued with regard to the member be forwarded to the following:
            (1) The Central Office of the Department of 
        Veterans Affairs in the District of Columbia.
            (2) The appropriate office of the Department of 
        Veterans Affairs for the State or other locality in 
        which the member will first reside after such discharge 
        or release.

SEC. 597. REPORTS ON ADMINISTRATIVE SEPARATIONS OF MEMBERS OF THE ARMED 
                    FORCES FOR PERSONALITY DISORDER.

    (a) Secretary of Defense Report on Administrative 
Separations Based on Personality Disorder.--
            (1) Report required.--Not later than April 1, 2008, 
        the Secretary of Defense shall submit to the Committees 
        on Armed Services of the Senate and the House of 
        Representatives a report on all cases of administrative 
        separation from the Armed Forces of covered members of 
        the Armed Forces on the basis of a personality 
        disorder.
            (2) Elements.--The report required by paragraph (1) 
        shall include the following:
                    (A) A statement of the total number of 
                cases, by Armed Force, in which covered members 
                of the Armed Forces have been separated from 
                the Armed Forces on the basis of a personality 
                disorder, and an identification of the various 
                forms of personality disorder forming the basis 
                for such separations.
                    (B) A statement of the total number of 
                cases, by Armed Force, in which covered members 
                of the Armed Forces who have served in Iraq and 
                Afghanistan since October 2001 have been 
                separated from the Armed Forces on the basis of 
                a personality disorder, and the identification 
                of the various forms of personality disorder 
                forming the basis for such separations.
                    (C) A summary of the policies, by Armed 
                Force, controlling administrative separations 
                of members of the Armed Forces based on 
                personality disorder, and an evaluation of the 
                adequacy of such policies for ensuring that 
                covered members of the Armed Forces who may be 
                eligible for disability evaluation due to 
                mental health conditions are not separated from 
                the Armed Forces on the basis of a personality 
                order.
                    (D) A discussion of measures being 
                implemented to ensure that members of the Armed 
                Forces who should be evaluated for disability 
                separation or retirement due to mental health 
                conditions are not processed for separation 
                from the Armed Forces on the basis of a 
                personality disorder, and recommendations 
                regarding how members of the Armed Forces who 
                may have been so separated from the Armed 
                Forces should be provided with expedited review 
                by the applicable board for the correction of 
                military records.
    (b) Comptroller General Report on Policies on 
Administrative Separation Based on Personality Disorder.--
            (1) Report required.--Not later than June 1, 2008, 
        the Comptroller General shall submit to Congress a 
        report evaluating the policies and procedures of the 
        Department of Defense and of the military departments 
        relating to the separation of members of the Armed 
        Forces based on a personality disorder.
            (2) Elements.--The report required by paragraph (1) 
        shall--
                    (A) include an audit of a sampling of cases 
                to determine the validity and clinical efficacy 
                of the policies and procedures referred to in 
                paragraph (1) and the extent, if any, of the 
                divergence between the terms of such policies 
                and procedures and the implementation of such 
                policies and procedures; and
                    (B) include a determination by the 
                Comptroller General of whether, and to what 
                extent, the policies and procedures referred to 
                in paragraph (1)--
                            (i) deviate from standard clinical 
                        diagnostic practices and current 
                        clinical standards; and
                            (ii) provide adequate safeguards 
                        aimed at ensuring that members of the 
                        Armed Forces who suffer from mental 
                        health conditions (including 
                        depression, post-traumatic stress 
                        disorder, or traumatic brain injury) 
                        resulting from service in a combat zone 
                        are not separated from the Armed Forces 
                        on the basis of a personality disorder.
            (3) Alternative submission method.--In lieu of 
        submitting a separate report under this subsection, the 
        Comptroller may include the evaluation, audit and 
        determination required by this subsection as part of 
        the study of mental health services required by section 
        723 of the Ronald W. Reagan National Defense 
        Authorization Act of 2005 (Public Law 108-375; 118 
        Stat. 1989).
    (c) Covered Member of the Armed Forces Defined.--In this 
section, the term ``covered member of the Armed Forces'' 
includes the following:
            (1) Any member of a regular component of the Armed 
        Forces who has served in Iraq or Afghanistan since 
        October 2001.
            (2) Any member of the Selected Reserve of the Ready 
        Reserve of the Armed Forces who served on active duty 
        in Iraq or Afghanistan since October 2001.

SEC. 598. PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE VIETNAM WAR.

    (a) Commemorative Program Authorized.--The Secretary of 
Defense may conduct a program to commemorate the 50th 
anniversary of the Vietnam War. In conducting the commemorative 
program, the Secretary shall coordinate, support, and 
facilitate other programs and activities of the Federal 
Government, State and local governments, and other persons and 
organizations in commemoration of the Vietnam War.
    (b) Schedule.--The Secretary of Defense shall determine the 
schedule of major events and priority of efforts for the 
commemorative program in order to ensure achievement of the 
objectives specified in subsection (c).
    (c) Commemorative Activities and Objectives.--The 
commemorative program may include activities and ceremonies to 
achieve the following objectives:
            (1) To thank and honor veterans of the Vietnam War, 
        including personnel who were held as prisoners of war 
        or listed as missing in action, for their service and 
        sacrifice on behalf of the United States and to thank 
        and honor the families of these veterans.
            (2) To highlight the service of the Armed Forces 
        during the Vietnam War and the contributions of Federal 
        agencies and governmental and non-governmental 
        organizations that served with, or in support of, the 
        Armed Forces.
            (3) To pay tribute to the contributions made on the 
        home front by the people of the United States during 
        the Vietnam War.
            (4) To highlight the advances in technology, 
        science, and medicine related to military research 
        conducted during the Vietnam War.
            (5) To recognize the contributions and sacrifices 
        made by the allies of the United States during the 
        Vietnam War.
    (d) Names and Symbols.--The Secretary of Defense shall have 
the sole and exclusive right to use the name ``The United 
States of America Vietnam War Commemoration'', and such seal, 
emblems, and badges incorporating such name as the Secretary 
may lawfully adopt. Nothing in this section may be construed to 
supersede rights that are established or vested before the date 
of the enactment of this Act.
    (e) Commemorative Fund.--
            (1) Establishment and administration.--If the 
        Secretary establishes the commemorative program under 
        subsection (a), the Secretary the Treasury shall 
        establish in the Treasury of the United States an 
        account to be known as the ``Department of Defense 
        Vietnam War Commemoration Fund'' (in this section 
        referred to as the ``Fund''). The Fund shall be 
        administered by the Secretary of Defense.
            (2) Use of fund.--The Secretary shall use the 
        assets of the Fund only for the purpose of conducting 
        the commemorative program and shall prescribe such 
        regulations regarding the use of the Fund as the 
        Secretary considers to be necessary.
            (3) Deposits.--There shall be deposited into the 
        Fund--
                    (A) amounts appropriated to the Fund;
                    (B) proceeds derived from the Secretary's 
                use of the exclusive rights described in 
                subsection (d);
                    (C) donations made in support of the 
                commemorative program by private and corporate 
                donors; and
                    (D) funds transferred to the Fund by the 
                Secretary from funds appropriated for fiscal 
                year 2008 and subsequent years for the 
                Department of Defense.
            (4) Availability.--Subject to subsection (g)(2), 
        amounts deposited under paragraph (3) shall constitute 
        the assets of the Fund and remain available until 
        expended.
            (5) Budget request.--The Secretary of Defense may 
        establish a separate budget line for the commemorative 
        program. In the budget justification materials 
        submitted by the Secretary in support of the budget of 
        the President for any fiscal year for which the 
        Secretary establishes the separate budget line, the 
        Secretary shall--
                    (A) identify and explain any amounts 
                expended for the commemorative program in the 
                fiscal year preceding the budget request;
                    (B) identify and explain the amounts being 
                requested to support the commemorative program 
                for the fiscal year of the budget request; and
                    (C) present a summary of the fiscal status 
                of the Fund.
    (f) Acceptance of Voluntary Services.--
            (1) Authority to accept services.--Notwithstanding 
        section 1342 of title 31, United States Code, the 
        Secretary of Defense may accept from any person 
        voluntary services to be provided in furtherance of the 
        commemorative program. The Secretary of Defense shall 
        prohibit the solicitation of any voluntary services if 
        the nature or circumstances of such solicitation would 
        compromise the integrity or the appearance of integrity 
        of any program of the Department of Defense or of any 
        individual involved in the program.
            (2) Reimbursement of incidental expenses.--The 
        Secretary may provide for reimbursement of incidental 
        expenses incurred by a person providing voluntary 
        services under this subsection. The Secretary shall 
        determine which expenses are eligible for reimbursement 
        under this paragraph.
    (g) Final Report.--
            (1) Report required.--Not later than 60 days after 
        the end of the commemorative program, if established by 
        the Secretary of Defense under subsection (a), the 
        Secretary shall submit to Congress a report containing 
        an accounting of--
                    (A) all of the funds deposited into and 
                expended from the Fund;
                    (B) any other funds expended under this 
                section; and
                    (C) any unobligated funds remaining in the 
                Fund.
            (2) Treatment of unobligated funds.--Unobligated 
        amounts remaining in the Fund as of the end of the 
        commemorative period specified in subsection (b) shall 
        be held in the Fund until transferred by law.
    (h) Limitation on Expenditures.--Total expenditures from 
the Fund, using amounts appropriated to the Department of 
Defense, may not exceed $5,000,000 for fiscal year 2008 or for 
any subsequent fiscal year to carry out the commemorative 
program.
    (i) Funding.--Of the amount authorized to be appropriated 
pursuant to section 301(5) for Defense-wide activities, 
$1,000,000 shall be available for deposit in the Fund for 
fiscal year 2008 if the Fund is established under subsection 
(e).

SEC. 599. RECOGNITION OF MEMBERS OF THE MONUMENTS, FINE ARTS, AND 
                    ARCHIVES PROGRAM OF THE CIVIL AFFAIRS AND MILITARY 
                    GOVERNMENT SECTIONS OF THE ARMED FORCES DURING AND 
                    FOLLOWING WORLD WAR II.

    Congress hereby--
            (1) recognizes the men and women who served in the 
        Monuments, Fine Arts, and Archives program (MFAA) under 
        the Civil Affairs and Military Government Sections of 
        the United States Armed Forces for their heroic role in 
        the preservation, protection, and restitution of 
        monuments, works of art, and other artifacts of 
        inestimable cultural importance in Europe and Asia 
        during and following World War II;
            (2) recognizes that without their dedication and 
        service, many more of the world's artistic and historic 
        treasures would have been destroyed or lost forever 
        amidst the chaos and destruction of World War II;
            (3) acknowledges that the detailed catalogues, 
        documentation, inventories, and photographs developed 
        and compiled by MFAA personnel during and following 
        World War II, have made, and continue to make, possible 
        the restitution of stolen works of art to their 
        rightful owners; and
            (4) commends and extols the members of the MFAA for 
        establishing a precedent for action to protect cultural 
        property in the event of armed conflict, and by their 
        action setting a standard not just for one country, but 
        for people of all nations to acknowledge and uphold.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Fiscal year 2008 increase in military basic pay.
Sec. 602. Basic allowance for housing for reserve component members 
          without dependents who attend accession training while 
          maintaining a primary residence.
Sec. 603. Extension and enhancement of authority for temporary lodging 
          expenses for members of the Armed Forces in areas subject to 
          major disaster declaration or for installations experiencing 
          sudden increase in personnel levels.
Sec. 604. Income replacement payments for reserve component members 
          experiencing extended and frequent mobilization for active 
          duty service.
Sec. 605. Midmonth payment of basic pay for contributions of members of 
          the uniformed services participating in Thrift Savings Plan.

           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. Increase in incentive special pay and multiyear retention 
          bonus for medical officers.
Sec. 616. Increase in dental officer additional special pay.
Sec. 617. Increase in maximum monthly rate of hardship duty pay and 
          authority to provide hardship duty pay in a lump sum.
Sec. 618. Definition of sea duty for career sea pay to include service 
          as off-cycle crewmembers of multi-crew ships.
Sec. 619. Reenlistment bonus for members of the Selected Reserve.
Sec. 620. Availability of Selected Reserve accession bonus for persons 
          who previously served in the Armed Forces for a short period.
Sec. 621. Availability of nuclear officer continuation pay for officers 
          with more than 26 years of commissioned service.
Sec. 622. Waiver of years-of-service limitation on receipt of critical 
          skills retention bonus.
Sec. 623. Accession bonus for participants in the Armed Forces Health 
          Professions Scholarship and Financial Assistance Program.
Sec. 624. Payment of assignment incentive pay for Reserve members 
          serving in combat zone for more than 22 months.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Payment of inactive duty training travel costs for certain 
          Selected Reserve members.
Sec. 632. Survivors of deceased members eligible for transportation to 
          attend burial ceremonies.
Sec. 633. Allowance for participation of Reserves in electronic 
          screening.
Sec. 634. Allowance for civilian clothing for members of the Armed 
          Forces traveling in connection with medical evacuation.
Sec. 635. Payment of moving expenses for Junior Reserve Officers' 
          Training Corps instructors in hard-to-fill positions.

              Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Expansion of combat-related special compensation eligibility.
Sec. 642. Inclusion of veterans with service-connected disabilities 
          rated as total by reason of unemployability under termination 
          of phase-in of concurrent receipt of retired pay and veterans' 
          disability compensation.
Sec. 643. Recoupment of annuity amounts previously paid, but subject to 
          offset for dependency and indemnity compensation.
Sec. 644. Special survivor indemnity allowance for persons affected by 
          required Survivor Benefit Plan annuity offset for dependency 
          and indemnity compensation.
Sec. 645. Modification of authority of members of the Armed Forces to 
          designate recipients for payment of death gratuity.
Sec. 646. Clarification of application of retired pay multiplier 
          percentage to members of the uniformed services with over 30 
          years of service.
Sec. 647. 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.
Sec. 648. Computation of years of service for purposes of retired pay 
          for non-regular service.

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

Sec. 651. Authority to continue commissary and exchange benefits for 
          certain involuntarily separated members of the Armed Forces.
Sec. 652. Authorization of installment deductions from pay of employees 
          of nonappropriated fund instrumentalities to collect 
          indebtedness to the United States.

   Subtitle F--Consolidation of Special Pay, Incentive Pay, and Bonus 
                               Authorities

Sec. 661. Consolidation of special pay, incentive pay, and bonus 
          authorities of the uniformed services.
Sec. 662. Transitional provisions.

                        Subtitle G--Other Matters

Sec. 671. Referral bonus authorities.
Sec. 672. Expansion of education loan repayment program for members of 
          the Selected Reserve.
Sec. 673. Ensuring entry into United States after time abroad for 
          permanent resident alien military spouses and children.
Sec. 674. Overseas naturalization for military spouses and children.
Sec. 675. Modification of amount of back pay for members of Navy and 
          Marine Corps selected for promotion while interned as 
          prisoners of war during World War II to take into account 
          changes in Consumer Price Index.

                     Subtitle A--Pay and Allowances

SEC. 601. FISCAL YEAR 2008 INCREASE IN MILITARY BASIC PAY.

    (a) Waiver of Section 1009 Adjustment.--The adjustment to 
become effective during fiscal year 2008 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) Increase in Basic Pay.--Effective on January 1, 2008, 
the rates of monthly basic pay for members of the uniformed 
services are increased by 3.5 percent.

SEC. 602. BASIC ALLOWANCE FOR HOUSING FOR RESERVE COMPONENT MEMBERS 
                    WITHOUT DEPENDENTS WHO ATTEND ACCESSION TRAINING 
                    WHILE MAINTAINING A PRIMARY RESIDENCE.

    (a) Availability of Allowance.--Section 403(g)(1) of title 
37, United States Code, is amended--
            (1) by inserting ``to attend accession training,'' 
        after ``active duty'' the first place it appears; and
            (2) by inserting a comma after ``contingency 
        operation'' the first place it appears.
    (b) Effective Date.--The amendments made by subsection (a) 
shall apply with respect to months beginning on or after the 
date of the enactment of this Act.

SEC. 603. EXTENSION AND ENHANCEMENT OF AUTHORITY FOR TEMPORARY LODGING 
                    EXPENSES FOR MEMBERS OF THE ARMED FORCES IN AREAS 
                    SUBJECT TO MAJOR DISASTER DECLARATION OR FOR 
                    INSTALLATIONS EXPERIENCING SUDDEN INCREASE IN 
                    PERSONNEL LEVELS.

    (a) Maximum Period of Receipt of Expenses.--Section 
404a(c)(3) of title 37, United States Code, is amended by 
striking ``20 days'' and inserting ``60 days''.
    (b) Extension of Authority for Increase in Certain BAH.--
Section 403(b)(7)(E) of such title is amended by striking 
``December 31, 2008'' and inserting ``December 31, 2009''.

SEC. 604. INCOME REPLACEMENT PAYMENTS FOR RESERVE COMPONENT MEMBERS 
                    EXPERIENCING EXTENDED AND FREQUENT MOBILIZATION FOR 
                    ACTIVE DUTY SERVICE.

    (a) Clarification Regarding When Payments Required.--
Subsection (a) of section 910 of title 37, United States Code, 
is amended by inserting before the period at the end of the 
first sentence the following: ``, when the total monthly 
military compensation of the member is less than the average 
monthly civilian income of the member''.
    (b) Eligibility.--Subsection (b) of such section is amended 
to read as follows:
    ``(b) Eligibility.--(1) A member of a reserve component is 
entitled to a payment under this section for any full month of 
active duty of the member, when the total monthly military 
compensation of the member is less than the average monthly 
civilian income of the member, while the member is on active 
duty under an involuntary mobilization order, following the 
date on which the member--
            ``(A) completes 547 continuous days of service on 
        active duty under an involuntary mobilization order;
            ``(B) completes 730 cumulative days on active duty 
        under an involuntary mobilization order during the 
        previous 1,826 days; or
            ``(C) is involuntarily mobilized for service on 
        active duty for a period of 180 days or more within 180 
        days after the date of the member's separation from a 
        previous period of active duty for a period of 180 days 
        or more.
    ``(2) The entitlement of a member of a reserve component to 
a payment under this section also shall commence or, if 
previously commenced under paragraph (1), shall continue if the 
member--
            ``(A) satisfies the required number of days on 
        active duty specified in subparagraph (A) or (B) of 
        paragraph (1) or was involuntarily mobilized as 
        provided in subparagraph (C) of such paragraph; and
            ``(B) is retained on active duty under subparagraph 
        (A) or (B) of section 12301(h)(1) of title 10 because 
        of an injury or illness incurred or aggravated while 
        the member was assigned to duty in an area for which 
        special pay under section 310 of this title is 
        available.''.
    (c) Termination of Authority.--Subsection (g) of such 
section is amended to read as follows:
    ``(g) Termination.--No payment shall be made to a member 
under this section for months beginning after December 31, 
2008, unless the entitlement of the member to payments under 
this section commenced on or before that date.''.

SEC. 605. MIDMONTH PAYMENT OF BASIC PAY FOR CONTRIBUTIONS OF MEMBERS OF 
                    THE UNIFORMED SERVICES PARTICIPATING IN THRIFT 
                    SAVINGS PLAN.

    (a) Semi-Monthly Deposit of Member's Contributions.--
Section 1014 of title 37, United States Code, is amended by 
adding at the end the following new subsection:
    ``(c) With respect to a member of the uniformed services 
who has elected to participate in the Thrift Savings Plan under 
section 211 of this title, subsection (a) does not preclude the 
payment of an amount equal to one-half of the monthly deposit 
to the Thrift Savings Fund otherwise to be made by the member 
in participating in the Plan, which amount may be deposited in 
the Thrift Savings Fund at midmonth.''.
    (b) Semi-Monthly Repayment of Borrowed Amounts.--Section 
211 of such title is amended by adding at the end the following 
new subsection:
    ``(e) Repayment of Amounts Borrowed From Member Account.--
If a loan is issued to a member under section 8433(g) of title 
5 from funds in the member's account in the Thrift Savings 
Plan, repayment of the loan may be required on the same semi-
monthly basis as authorized for contributions to the Thrift 
Savings Fund on behalf of the member under section 1014(c) of 
this title.''.

           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, 2007'' and inserting ``December 31, 2008''.
    (b) Selected Reserve Affiliation or Enlistment Bonus.--
Section 308c(i) of such title is amended by striking ``December 
31, 2007'' and inserting ``December 31, 2008''.
    (c) Special Pay for Enlisted Members Assigned to Certain 
High Priority Units.--Section 308d(c) of such title is amended 
by striking ``December 31, 2007'' and inserting ``December 31, 
2008''.
    (d) Ready Reserve Enlistment Bonus for Persons Without 
Prior Service.--Section 308g(f)(2) of such title is amended by 
striking ``December 31, 2007'' and inserting ``December 31, 
2008''.
    (e) Ready Reserve Enlistment and Reenlistment Bonus for 
Persons With Prior Service.--Section 308h(e) of such title is 
amended by striking ``December 31, 2007'' and inserting 
``December 31, 2008''.
    (f) Selected Reserve Enlistment Bonus for Persons With 
Prior Service.--Section 308i(f) of such title is amended by 
striking ``December 31, 2007'' and inserting ``December 31, 
2008''.

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, 2007'' and inserting ``December 31, 
2008''.
    (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, 
2008'' and inserting ``January 1, 2009''.
    (c) Accession Bonus for Registered Nurses.--Section 
302d(a)(1) of title 37, United States Code, is amended by 
striking ``December 31, 2007'' and inserting ``December 31, 
2008''.
    (d) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of such title is amended by striking ``December 31, 
2007'' and inserting ``December 31, 2008''.
    (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, 2007'' and 
inserting ``December 31, 2008''.
    (f) Accession Bonus for Dental Officers.--Section 
302h(a)(1) of such title is amended by striking ``December 31, 
2007'' and inserting ``December 31, 2008''.
    (g) Accession Bonus for Pharmacy Officers.--Section 302j(a) 
of such title is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2008''.
    (h) Accession Bonus for Medical Officers in Critically 
Short Wartime Specialties.--Section 302k(f) of such title is 
amended by striking ``December 31, 2007'' and inserting 
``December 31, 2008''.
    (i) Accession Bonus for Dental Specialist Officers in 
Critically Short Wartime Specialties.--Section 302l(g) of such 
title is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2008''.

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(f) of title 37, United 
States Code, is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2008''.
    (b) Nuclear Career Accession Bonus.--Section 312b(c) of 
such title is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2008''.
    (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) 
of such title is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2008''.

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, 2007'' and inserting ``December 31, 2008''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) 
of such title is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2008''.
    (c) Enlistment Bonus.--Section 309(e) of such title is 
amended by striking ``December 31, 2007'' and inserting 
``December 31, 2008''.
    (d) 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, 2007'' and 
inserting ``December 31, 2008''.
    (e) Accession Bonus for New Officers in Critical Skills.--
Section 324(g) of such title is amended by striking ``December 
31, 2007'' and inserting ``December 31, 2008''.
    (f) Incentive Bonus for Conversion to Military Occupational 
Specialty to Ease Personnel Shortage.--Section 326(g) of such 
title is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2008''.
    (g) Accession Bonus for Officer Candidates.--Section 330(f) 
of such title is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2008''.
    (h) Prohibition on Charges for Meals Received at Military 
Treatment Facilities by Members Receiving Continuous Care.--
Section 402(h)(3) of such title is amended by striking 
``December 31, 2007'' and inserting ``December 31, 2008''.

SEC. 615. INCREASE IN INCENTIVE SPECIAL PAY AND MULTIYEAR RETENTION 
                    BONUS FOR MEDICAL OFFICERS.

    (a) Incentive Special Pay.--Section 302(b)(1) of title 37, 
United States Code, is amended by striking ``$50,000'' and 
inserting ``$75,000''.
    (b) Multiyear Retention Bonus.--Section 301d(a)(2) of title 
37, United States Code, is amended by striking ``$50,000'' and 
inserting ``$75,000''.
    (c) Effective Date.--The amendments made by this section 
shall apply with respect to agreements entered into under 
section 301d(a) or 302b(c) of title 37, United States Code, on 
or after the date of the enactment of this Act.

SEC. 616. INCREASE IN DENTAL OFFICER ADDITIONAL SPECIAL PAY.

    (a) Increase.--Section 302b(a)(4) of title 37, United 
States Code, is amended--
            (1) in the matter preceding subparagraph (A), by 
        striking ``at the following rates'' and inserting ``at 
        a rate determined by the Secretary concerned, which 
        rate may not exceed the following'';
            (2) in subparagraph (A), by striking ``$4,000'' and 
        inserting ``$10,000''; and
            (3) in subparagraph (B), by striking ``$6,000'' and 
        inserting ``$12,000''.
    (b) Effective Date.--The amendments made by this section 
shall apply with respect to agreements entered into under 
section 302b(b) of title 37, United States Code, on or after 
the date of the enactment of this Act.

SEC. 617. INCREASE IN MAXIMUM MONTHLY RATE OF HARDSHIP DUTY PAY AND 
                    AUTHORITY TO PROVIDE HARDSHIP DUTY PAY IN A LUMP 
                    SUM.

    Section 305 of title 37, United States Code, is amended to 
read as follows:

``Sec. 305. Special pay: hardship duty pay

    ``(a) Special Pay Authorized.--A member of a uniformed 
service who is entitled to basic pay may be paid special pay 
under this section while the member is performing duty that is 
designated by the Secretary of Defense as hardship duty.
    ``(b) Payment on Monthly or Lump Sum Basis.--Special pay 
payable under this section may be paid on a monthly basis or in 
a lump sum.
    ``(c) Maximum Rate or Amount.--(1) The monthly rate of 
special pay payable to a member under this section may not 
exceed $1,500.
    ``(2) The amount of the lump sum payment of special pay 
payable to a member under this section may not exceed the 
product of--
            ``(A) the maximum monthly rate in effect under 
        paragraph (1) at the time the member qualifies for 
        payment of special pay under this section; and
            ``(B) the number of months during which the member 
        will be performing the designated hardship duty.
    ``(d) Relationship to Other Pay and Allowances.--Special 
pay paid to a member under this section is in addition to any 
other pay and allowances to which the member is entitled.
    ``(e) Repayment.--A member who is paid special pay in a 
lump sum under this section, but who fails to perform the 
designated hardship duty during the months included in the 
calculation of the amount of the lump sum under subsection 
(c)(2), shall be subject to the repayment provisions of section 
303a(e) of this title.
    ``(f) Regulations.--The Secretary of Defense shall 
prescribe regulations for the payment of hardship duty pay 
under this section, including the specific monthly rates at 
which the special pay will be available.''.

SEC. 618. DEFINITION OF SEA DUTY FOR CAREER SEA PAY TO INCLUDE SERVICE 
                    AS OFF-CYCLE CREWMEMBERS OF MULTI-CREW SHIPS.

    Section 305a(e)(1)(A) of title 37, United States Code, is 
amended--
            (1) by striking ``or'' at the end of clause (ii); 
        and
            (2) by adding at the end the following new clause:
                    ``(iv) while serving as an off-cycle 
                crewmember of a multi-crewed ship; or''.

SEC. 619. REENLISTMENT BONUS FOR MEMBERS OF THE SELECTED RESERVE.

    (a) Minimum Term of Reenlistment or Enlistment Extension.--
Subsection (a)(2) of 308b of title 37, United States Code, is 
amended by striking ``his enlistment for a period of three 
years or for a period of six years'' and inserting ``an 
enlistment for a period of at least three years''.
    (b) Maximum Bonus Amount.--Subsection (b)(1) of such 
section is amended by striking ``may not exceed'' and all that 
follows through the end of the paragraph and inserting ``may 
not exceed $15,000.''.
    (c) Conforming Amendments Regarding Eligibility 
Requirements.--Subsection (c) of such section is amended--
            (1) by striking the subsection heading and all that 
        follows through ``(2) In the case'' and inserting 
        ``Waiver of Condition on Eligibility.--In the case''; 
        and
            (2) by striking ``paragraph (1)(B) or''.
    (d) Effective Date.--The amendments made by this section 
shall apply with respect to reenlistments or extensions of 
enlistment that occur on or after the date of the enactment of 
this Act.

SEC. 620. AVAILABILITY OF SELECTED RESERVE ACCESSION BONUS FOR PERSONS 
                    WHO PREVIOUSLY SERVED IN THE ARMED FORCES FOR A 
                    SHORT PERIOD.

    Section 308c(c)(1) of title 37, United States Code, is 
amended by inserting before the semicolon the following: ``or 
has served in the armed forces, but was released from such 
service before completing the basic training requirements of 
the armed force of which the person was a member and the 
service was characterized as either honorable or 
uncharacterized''.

SEC. 621. AVAILABILITY OF NUCLEAR OFFICER CONTINUATION PAY FOR OFFICERS 
                    WITH MORE THAN 26 YEARS OF COMMISSIONED SERVICE.

    (a) Increase.--Section 312 of title 37, United States Code, 
is amended--
            (1) in subsection (a)(3), by striking ``26 years'' 
        and inserting ``30 years''; and
            (2) in subsection (e)(1), by striking ``the end of 
        26 years of commissioned service'' and inserting ``the 
        maximum number of years of commissioned service 
        authorized by subsection (a)(3)''.
    (b) Effect on Existing Agreements.--The Secretary of the 
Navy and an officer of the naval service who is a party to an 
agreement under section 312 of title 37, United States Code, 
that was entered into before the date of the enactment of this 
Act may revise the agreement to reflect the new limitation on 
the number of years of commissioned service that the officer 
may serve while remaining eligible for special pay under such 
section.

SEC. 622. WAIVER OF YEARS-OF-SERVICE LIMITATION ON RECEIPT OF CRITICAL 
                    SKILLS RETENTION BONUS.

    Section 323(e) of title 37, United States Code, is amended 
by adding at the end the following new paragraph:
    ``(4) The Secretary of Defense, or the Secretary of 
Homeland Security with respect to the Coast Guard when it is 
not operating as a service in the Navy, may waive the 
limitations in paragraph (1) with respect to a member who, 
during the period of active duty or service in an active status 
in a reserve component for which the bonus is being offered, is 
assigned duties in a skill designated as critical under 
subsection (b)(1). The authority to grant a waiver under this 
paragraph may not be delegated below the Under Secretary of 
Defense for Personnel and Readiness or the Deputy Secretary of 
the Department of Homeland Security.''.

SEC. 623. ACCESSION BONUS FOR PARTICIPANTS IN THE ARMED FORCES HEALTH 
                    PROFESSIONS SCHOLARSHIP AND FINANCIAL ASSISTANCE 
                    PROGRAM.

    (a) Accession Bonus Authorized.--Subchapter I of chapter 
105 of title 10, United States Code, is amended by adding at 
the end the following new section:

``Sec. 2128. Accession bonus for members of the program

    ``(a) Availability of Bonus.--The Secretary of Defense may 
offer a person who enters into an agreement under section 
2122(a)(2) of this title an accession bonus of not more than 
$20,000 as part of the agreement.
    ``(b) Relation to Other Payments.--An accession bonus paid 
a person under this section is in addition to any other amounts 
payable to the person under this subchapter.
    ``(c) Repayment.--A person who receives an accession bonus 
under this section, but fails to comply with the agreement 
under section 2122(a)(2) of this title or to commence or 
complete the active duty obligation imposed by section 2123 of 
this title, shall be subject to the repayment provisions of 
section 303a(e) of title 37.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such subchapter is amended by adding at the end 
the following new item:

``2128. Accession bonus for members of the program.''.

    (c) Effective Date.--The amendment made by subsection (a) 
shall apply with respect to agreements entered into under 
section 2122(a)(2) of title 10, United States Code, on or after 
the date of the enactment of this Act.

SEC. 624. PAYMENT OF ASSIGNMENT INCENTIVE PAY FOR RESERVE MEMBERS 
                    SERVING IN COMBAT ZONE FOR MORE THAN 22 MONTHS.

    (a) Payment.--The Secretary of a military department may 
pay assignment incentive pay under section 307a of title 37, 
United States Code, to a member of a reserve component under 
the jurisdiction of the Secretary for each month during the 
eligibility period of the member determined under subsection 
(b) during which the member served for any portion of the month 
in a combat zone associated with Operating Enduring Freedom or 
Operation Iraqi Freedom in excess of 22 months of qualifying 
service.
    (b) Eligibility Period.--The eligibility period for a 
member extends from January 1, 2005, through the end of the 
active duty service of the member in a combat zone associated 
with Operating Enduring Freedom or Operation Iraqi Freedom if 
the service on active duty during the member's most recent 
period of mobilization to active duty began before January 19, 
2007.
    (c) Amount of Payment.--The monthly rate of incentive pay 
payable to a member under this section is $1,000.
    (d) Qualifying Service.--For purposes of this section, 
qualifying service includes cumulative mobilized service on 
active duty under sections 12301(d), 12302, and 12304 of title 
10, United States Code, during the period beginning on January 
1, 2003, through the end of the member's active duty service 
during the member's most recent period of mobilization to 
active duty beginning before January 19, 2007.

            Subtitle C--Travel and Transportation Allowances

SEC. 631. PAYMENT OF INACTIVE DUTY TRAINING TRAVEL COSTS FOR CERTAIN 
                    SELECTED RESERVE MEMBERS.

    (a) Payment of Travel Costs Authorized.--
            (1) In general.--Chapter 7 of title 37, United 
        States Code, is amended by inserting after section 408 
        the following new section:

``Sec. 408a. Travel and transportation allowances: inactive duty 
                    training outside of normal commuting distances

    ``(a) Allowance Authorized.--The Secretary concerned may 
reimburse an eligible member of the Selected Reserve of the 
Ready Reserve for travel expenses for travel to an inactive 
duty training location to perform inactive duty training when 
the member is required to commute a distance from the member's 
permanent residence to the inactive duty training location that 
is outside the normal commuting distance (as determined under 
the regulations prescribed under subsection (d)) for that 
commute.
    ``(b) Eligible Members.--To be eligible for reimbursement 
under subsection (a), a member of the Selected Reserve of the 
Ready Reserve must be--
            ``(1) qualified in a skill designated as critically 
        short by the Secretary concerned;
            ``(2) assigned to a unit of the Selected Reserve 
        with a critical manpower shortage or in a pay grade in 
        the member's reserve component with a critical manpower 
        shortage; or
            ``(3) assigned to a unit or position that is 
        disestablished or relocated as a result of defense base 
        closure or realignment or another force structure 
        reallocation.
    ``(c) Maximum Reimbursement Amount.--The amount of 
reimbursement provided a member under subsection (a) for each 
round trip to a training location may not exceed $300.
    ``(d) Regulations.--The Secretary concerned shall prescribe 
regulations to carry out this section. Regulations prescribed 
by the Secretary of a military department shall be subject to 
the approval of the Secretary of Defense.
    ``(e) Termination.--No reimbursement may be provided under 
this section for travel that occurs after December 31, 2010.''.
            (2) Clerical amendment.--The table of sections at 
        the beginning of chapter 7 of such title is amended by 
        inserting after the item relating to section 408 the 
        following new item:

``408a. Travel and transportation allowances: inactive duty training 
          outside of normal commuting distances.''.

    (b) Application of Amendment.--No reimbursement may be 
provided under section 408a of title 37, United States Code, as 
added by subsection (a), for travel costs incurred before the 
date of the enactment of this Act.

SEC. 632. SURVIVORS OF DECEASED MEMBERS ELIGIBLE FOR TRANSPORTATION TO 
                    ATTEND BURIAL CEREMONIES.

    (a) Eligible Relatives.--Paragraph (1) of section 411f(c) 
of title 37, United States Code, is amended--
            (1) by striking subparagraph (B) and inserting the 
        following new subparagraph:
            ``(B) The child or children of the deceased member 
        (including stepchildren, adopted children, and 
        illegitimate children).''; and
            (2) by adding at the end the following new 
        subparagraphs:
            ``(D) The sibling or siblings of the deceased 
        member.
            ``(E) The person who directs the disposition of the 
        remains of the deceased member under section 1482(c) of 
        title 10 or, in the case of a deceased member whose 
        remains are commingled and buried in a common grave in 
        a national cemetery, the person who would have been 
        designated under such section to direct the disposition 
        of the remains if individual identification had been 
        made.''.
    (b) Other Persons.--Paragraph (2) of such section is 
amended to read as follows:
    ``(2) If no person described in subparagraphs (A) through 
(D) of paragraph (1) is provided travel and transportation 
allowances under subsection (a)(1), the travel and 
transportation allowances may be provided to one or two other 
persons who are closely related to the deceased member and are 
selected by the person referred to in paragraph (1)(E). A 
person provided travel and transportation allowances under this 
paragraph is in addition to the person referred to in paragraph 
(1)(E).''.

SEC. 633. ALLOWANCE FOR PARTICIPATION OF RESERVES IN ELECTRONIC 
                    SCREENING.

    (a) Allowance for Participation in Electronic Screening.--
            (1) In general.--Chapter 7 of title 37, United 
        States Code, is amended by inserting after section 433 
        the following new section:

``Sec. 433a. Allowance for participation in Ready Reserve screening

    ``(a) Allowance Authorized.--(1) Under regulations 
prescribed by the Secretaries concerned, a member of the 
Individual Ready Reserve may be paid a stipend for 
participation in the screening performed pursuant to section 
10149 of title 10, in lieu of muster duty performed under 
section 12319 of title 10, if such participation is conducted 
through electronic means.
    ``(2) The stipend paid a member under this section shall 
constitute the sole monetary allowance authorized for 
participation in the screening described in paragraph (1), and 
shall constitute payment in full to the member for 
participation in such screening, regardless of the grade or 
rank in which the member is serving.
    ``(b) Maximum Payment.--The aggregate amount of the stipend 
paid a member of the Individual Ready Reserve under this 
section in any calendar year may not exceed $50.
    ``(c) Payment Requirements.--(1) The stipend authorized by 
this section may not be disbursed in kind.
    ``(2) Payment of a stipend to a member of the Individual 
Ready Reserve under this section for participation in screening 
shall be made on or after the date of participation in such 
screening, but not later than 30 days after such date.''.
            (2) Clerical amendment.--The table of sections at 
        the beginning of chapter 7 of such title is amended by 
        inserting after the item relating to section 433 the 
        following new item:

``433a. Allowance for participation in Ready Reserve screening.''.

    (b) Bar to Dual Compensation.--Section 206 of such title is 
amended by adding at the end the following new subsection:
    ``(f) A member of the Individual Ready Reserve is not 
entitled to compensation under this section for participation 
in screening for which the member is paid a stipend under 
section 433a of this title.''.
    (c) Bar to Retirement Credit.--Section 12732(b) of title 
10, United States Code, is amended by adding at the end the 
following new paragraph:
            ``(8) Service in the screening performed pursuant 
        to section 10149 of this title through electronic 
        means, regardless of whether or not a stipend is paid 
        the member concerned for such service under section 
        433a of title 37.''.

SEC. 634. ALLOWANCE FOR CIVILIAN CLOTHING FOR MEMBERS OF THE ARMED 
                    FORCES TRAVELING IN CONNECTION WITH MEDICAL 
                    EVACUATION.

    Section 1047(a) of title 10, United States Code, is amended 
by inserting ``and luggage'' after ``civilian clothing'' both 
places it appears.

SEC. 635. PAYMENT OF MOVING EXPENSES FOR JUNIOR RESERVE OFFICERS' 
                    TRAINING CORPS INSTRUCTORS IN HARD-TO-FILL 
                    POSITIONS.

    Section 2031 of title 10, United States Code, is amended by 
adding at the end the following new subsection:
    ``(f)(1) When determined by the Secretary of the military 
department concerned to be in the national interest and agreed 
upon by the institution concerned, the institution may 
reimburse a Junior Reserve Officers' Training Corps instructor 
for moving expenses incurred by the instructor to accept 
employment at the institution in a position that the Secretary 
concerned determines is hard-to-fill for geographic or economic 
reasons.
    ``(2) As a condition on providing reimbursement under 
paragraph (1), the institution shall require the instructor to 
execute a written agreement to serve a minimum of two years of 
employment at the institution in the hard-to-fill position.
    ``(3) Any reimbursement provided to an instructor under 
paragraph (1) is in addition to the minimum instructor pay 
otherwise payable to the instructor.
    ``(4) The Secretary concerned shall reimburse an 
institution providing reimbursement to an instructor under 
paragraph (1) in an amount equal to the amount of the 
reimbursement paid by the institution under that paragraph. Any 
reimbursement provided by the Secretary concerned shall be 
provided from funds appropriated for that purpose.
    ``(5) The provision of reimbursement under paragraph (1) or 
(4) shall be subject to regulations prescribed by the Secretary 
of Defense for purposes of this subsection.''.

             Subtitle D--Retired Pay and Survivor Benefits

SEC. 641. EXPANSION OF COMBAT-RELATED SPECIAL COMPENSATION ELIGIBILITY.

    (a) Expanded Eligibility for Chapter 61 Military 
Retirees.--Subsection (c) of section 1413a of title 10, United 
States Code, is amended by striking ``entitled to retired pay 
who--'' and all that follows and inserting ``who--
            ``(1) is entitled to retired pay (other than by 
        reason of section 12731b of this title); and
            ``(2) has a combat-related disability.''.
    (b) Computation.--Paragraph (3) of subsection (b) of such 
section is amended--
            (1) by striking ``In the case of'' and inserting 
        the following:
                    ``(A) General rule.--In the case of''; and
            (2) by adding at the end the following new 
        subparagraph:
                    ``(B) Special rule for retirees with fewer 
                than 20 years of service.--In the case of an 
                eligible combat-related disabled uniformed 
                services retiree who is retired under chapter 
                61 of this title with fewer than 20 years of 
                creditable service, the amount of the payment 
                under paragraph (1) for any month shall be 
                reduced by the amount (if any) by which the 
                amount of the member's retired pay under 
                chapter 61 of this title exceeds the amount 
                equal to 2\1/2\ percent of the member's years 
                of creditable service multiplied by the 
                member's retired pay base under section 
                1406(b)(1) or 1407 of this title, whichever is 
                applicable to the member.''.
    (c) Effective Date.--The amendments made by this section 
shall take effect on January 1, 2008, and shall apply to 
payments for months beginning on or after that date.

SEC. 642. INCLUSION OF VETERANS WITH SERVICE-CONNECTED DISABILITIES 
                    RATED AS TOTAL BY REASON OF UNEMPLOYABILITY UNDER 
                    TERMINATION OF PHASE-IN OF CONCURRENT RECEIPT OF 
                    RETIRED PAY AND VETERANS' DISABILITY COMPENSATION.

    (a) Inclusion of Veterans.--Section 1414(a)(1) of title 10, 
United States Code, is amended by striking ``except that'' and 
all that follows and inserting ``except that payment of retired 
pay is subject to subsection (c) only during the period 
beginning on January 1, 2004, and ending on December 31, 2004, 
in the case of the following:
                    ``(A) A qualified retiree receiving 
                veterans' disability compensation for a 
                disability rated as 100 percent.
                    ``(B) A qualified retiree receiving 
                veterans' disability compensation at the rate 
                payable for a 100 percent disability by reason 
                of a determination of individual 
                unemployability.''.
    (b) Effective Date.--
            (1) In general.--Subject to paragraph (2), the 
        amendment made by subsection (a) shall take effect as 
        of December 31, 2004.
            (2) Timing of payment of retroactive benefits.--Any 
        amount payable for a period before October 1, 2008, by 
        reason of the amendment made by subsection (a) shall 
        not be paid until after that date.

SEC. 643. RECOUPMENT OF ANNUITY AMOUNTS PREVIOUSLY PAID, BUT SUBJECT TO 
                    OFFSET FOR DEPENDENCY AND INDEMNITY COMPENSATION.

    (a) Limitation on Recoupment; Notification Requirements.--
Section 1450(c) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(3) Limitation on recoupment of offset amount.--
        Any amount subject to offset under this subsection that 
        was previously paid to the surviving spouse or former 
        spouse shall be recouped only to the extent that the 
        amount paid exceeds any amount to be refunded under 
        subsection (e). In notifying a surviving spouse or 
        former spouse of the recoupment requirement, the 
        Secretary shall provide the spouse or former spouse--
                    ``(A) a single notice of the net amount to 
                be recouped or the net amount to be refunded, 
                as applicable, under this subsection or 
                subsection (e);
                    ``(B) a written explanation of the 
                statutory requirements for recoupment of the 
                offset amount and for refund of any applicable 
                amount deducted from retired pay;
                    ``(C) a detailed accounting of how the 
                offset amount being recouped and retired pay 
                deduction amount being refunded were 
                calculated; and
                    ``(D) contact information for a person who 
                can provide information about the offset 
                recoupment and retired pay deduction refund 
                processes and answer questions the surviving 
                spouse or former spouse may have about the 
                requirements, processes, or amounts.''.
    (b) Application.--Paragraph (3) of subsection (c) of 
section 1450 of title 10, United States Code, as added by 
subsection (a), shall apply with respect to the recoupment on 
or after April 1, 2008, of amounts subject to offset under such 
subsection.

SEC. 644. SPECIAL SURVIVOR INDEMNITY ALLOWANCE FOR PERSONS AFFECTED BY 
                    REQUIRED SURVIVOR BENEFIT PLAN ANNUITY OFFSET FOR 
                    DEPENDENCY AND INDEMNITY COMPENSATION.

    Section 1450 of title 10, United States Code, is amended by 
adding at the end the following new subsection:
    ``(m) Special Survivor Indemnity Allowance.--
            ``(1) Provision of allowance.--The Secretary 
        concerned shall pay a monthly special survivor 
        indemnity allowance under this subsection to the 
        surviving spouse or former spouse of a member of the 
        uniformed services to whom section 1448 of this title 
        applies if--
                    ``(A) the surviving spouse or former spouse 
                is entitled to dependency and indemnity 
                compensation under section 1311(a) of title 38;
                    ``(B) except for subsection (c) of this 
                section, the surviving spouse or former spouse 
                is eligible for an annuity by reason of a 
                participant in the Plan under section 
                1448(a)(1) of this title; and
                    ``(C) the eligibility of the surviving 
                spouse or former spouse for an annuity as 
                described in subparagraph (B) is affected by 
                subsection (c) of this section.
            ``(2) Amount of payment.--Subject to paragraph (3), 
        the amount of the allowance paid to an eligible 
        survivor under paragraph (1) for a month shall be equal 
        to--
                    ``(A) for months during fiscal year 2009, 
                $50;
                    ``(B) for months during fiscal year 2010, 
                $60;
                    ``(C) for months during fiscal year 2011, 
                $70;
                    ``(D) for months during fiscal year 2012, 
                $80;
                    ``(E) for months during fiscal year 2013, 
                $90; and
                    ``(F) for months after fiscal year 2013, 
                $100.
            ``(3) Limitation.--The amount of the allowance paid 
        to an eligible survivor under paragraph (1) for any 
        month may not exceed the amount of the annuity for that 
        month that is subject to offset under subsection (c).
            ``(4) Status of payments.--An allowance paid under 
        this subsection does not constitute an annuity, and 
        amounts so paid are not subject to adjustment under any 
        other provision of law.
            ``(5) Source of funds.--The special survivor 
        indemnity allowance shall be paid from amounts in the 
        Department of Defense Military Retirement Fund 
        established under section 1461 of this title.
            ``(6) Effective date and duration.--This subsection 
        shall only apply with respect to the month beginning on 
        October 1, 2008, and subsequent months through the 
        month ending on February 28, 2016. Effective on March 
        1, 2016, the authority provided by this subsection 
        shall terminate. No special survivor indemnity 
        allowance may be paid to any person by reason of this 
        subsection for any period before October 1, 2008, or 
        beginning on or after March 1, 2016.''.

SEC. 645. MODIFICATION OF AUTHORITY OF MEMBERS OF THE ARMED FORCES TO 
                    DESIGNATE RECIPIENTS FOR PAYMENT OF DEATH GRATUITY.

    (a) Authority To Designate Recipients.--Section 1477 of 
title 10, United States Code, is amended--
            (1) by striking subsections (c) and (d);
            (2) by redesignating subsection (b) as subsection 
        (d) and, in such subsection, by striking ``Subsection 
        (a)(2)'' and inserting ``Treatment of Children.--
        Subsection (b)(2)''; and
            (3) by striking subsection (a) and inserting the 
        following new subsections:
    ``(a) Designation of Recipients.--(1) On and after July 1, 
2008, or such earlier date as the Secretary of Defense may 
prescribe, a person covered by section 1475 or 1476 of this 
title may designate one or more persons to receive all or a 
portion of the amount payable under section 1478 of this title. 
The designation of a person to receive a portion of the amount 
shall indicate the percentage of the amount, to be specified 
only in 10 percent increments, that the designated person may 
receive. The balance of the amount of the death gratuity, if 
any, shall be paid in accordance with subsection (b).
    ``(2) If a person covered by section 1475 or 1476 of this 
title has a spouse, but designates a person other than the 
spouse to receive all or a portion of the amount payable under 
section 1478 of this title, the Secretary concerned shall 
provide notice of the designation to the spouse.
    ``(b) Distribution of Remainder; Distribution in Absence of 
Designated Recipient.--If a person covered by section 1475 or 
1476 of this title does not make a designation under subsection 
(a) or designates only a portion of the amount payable under 
section 1478 of this title, the amount of the death gratuity 
not covered by a designation shall be paid as follows:
            ``(1) To the surviving spouse of the person, if 
        any.
            ``(2) If there is no surviving spouse, to any 
        surviving children (as prescribed by subsection (d)) of 
        the person and the descendants of any deceased children 
        by representation.
            ``(3) If there is none of the above, to the 
        surviving parents (as prescribed by subsection (c)) of 
        the person or the survivor of them.
            ``(4) If there is none of the above, to the duly 
        appointed executor or administrator of the estate of 
        the person.
            ``(5) If there is none of the above, to other next 
        of kin of the person entitled under the laws of 
        domicile of the person at the time of the person's 
        death.
    ``(c) Treatment of Parents.--For purposes of subsection 
(b)(3), parents include fathers and mothers through adoption. 
However, only one father and one mother may be recognized in 
any case, and preference shall be given to those who exercised 
a parental relationship on the date, or most nearly before the 
date, on which the decedent entered a status described in 
section 1475 or 1476 of this title.''.
    (b) Clerical and Conforming Amendments.--Subsection (e) of 
such section is amended--
            (1) by inserting ``Effect of Death Before Receipt 
        of Gratuity.--'' after ``(e)'';
            (2) by striking ``subsection (a) or (d)'' and 
        inserting ``subsection (a) or (b)''; and
            (3) by striking ``subsection (a).'' and inserting 
        ``subsection (b)''.
    (c) Existing Designation Authority.--The authority provided 
by subsection (d) of section 1477 of title 10, United States 
Code, as in effect on the day before the date of the enactment 
of this Act, shall remain available to persons covered by 
section 1475 or 1476 of such title until July 1, 2008, or such 
earlier date as the Secretary of Defense may prescribe, and any 
designation under such subsection made before July 1, 2008, or 
the earlier date prescribed by the Secretary, shall continue in 
effect until such time as the person who made the designation 
makes a new designation under such section 1477, as amended by 
subsection (a) of this section.
    (d) Regulations.--
            (1) In general.--Not later than April 1, 2008, the 
        Secretary of Defense shall prescribe regulations to 
        implement the amendments to section 1477 of title 10, 
        United States Code, made by subsection (a).
            (2) Elements.--The regulations required by 
        paragraph (1) shall include forms for the making of the 
        designation contemplated by subsection (a) of section 
        1477 of title 10, United States Code, as amended by 
        subsection (a) of this section, and instructions for 
        members of the Armed Forces in the filling out of such 
        forms.

SEC. 646. CLARIFICATION OF APPLICATION OF RETIRED PAY MULTIPLIER 
                    PERCENTAGE TO MEMBERS OF THE UNIFORMED SERVICES 
                    WITH OVER 30 YEARS OF SERVICE.

    (a) Computation of Retired and Retainer Pay for Members of 
Naval Service.--The table in section 6333(a) of title 10, 
United States Code, is amended in Column 2 of Formula A by 
striking ``75 percent.'' and inserting ``Retired pay multiplier 
prescribed under section 1409 for the years of service that may 
be credited to the member under section 1405.''.
    (b) Retired Pay for Certain Members Recalled to Active 
Duty.--The table in section 1402(a) of such title is amended by 
striking Column 3.
    (c) Effective Date.--The amendments made by subsections (a) 
and (b) shall take effect as of January 1, 2007, and shall 
apply with respect to retired pay and retainer pay payable on 
or after that date.

SEC. 647. COMMENCEMENT OF RECEIPT OF NON-REGULAR SERVICE RETIRED PAY BY 
                    MEMBERS OF THE READY RESERVE ON ACTIVE FEDERAL 
                    STATUS OR ACTIVE DUTY FOR SIGNIFICANT PERIODS.

    (a) Reduced Eligibility Age.--Section 12731 of title 10, 
United States Code, is amended--
            (1) in subsection (a), by striking paragraph (1) 
        and inserting the following:
            ``(1) has attained the eligibility age applicable 
        under subsection (f) to that person;''; and
            (2) by adding at the end the following new 
        subsection:
    ``(f)(1) Subject to paragraph (2), the eligibility age for 
purposes of subsection (a)(1) is 60 years of age.
    ``(2)(A) In the case of a person who as a member of the 
Ready Reserve serves on active duty or performs active service 
described in subparagraph (B) after the date of the enactment 
of the National Defense Authorization Act for Fiscal Year 2008, 
the eligibility age for purposes of subsection (a)(1) shall be 
reduced below 60 years of age by three months for each 
aggregate of 90 days on which such person so performs in any 
fiscal year after such date, subject to subparagraph (C). A day 
of duty may be included in only one aggregate of 90 days for 
purposes of this subparagraph.
    ``(B)(i) Service on active duty described in this 
subparagraph is service on active duty pursuant to a call or 
order to active duty under a provision of law referred to in 
section 101(a)(13)(B) or under section 12301(d) of this title. 
Such service does not include service on active duty pursuant 
to a call or order to active duty under section 12310 of this 
title.
    ``(ii) Active service described in this subparagraph is 
also service under a call to active service authorized by the 
President or the Secretary of Defense under section 502(f) of 
title 32 for purposes of responding to a national emergency 
declared by the President or supported by Federal funds.
    ``(C) The eligibility age for purposes of subsection (a)(1) 
may not be reduced below 50 years of age for any person under 
subparagraph (A).''.
    (b) Continuation of Age 60 as Minimum Age for Eligibility 
of Non-Regular Service Retirees for Health Care.--Section 
1074(b) of such title is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) Paragraph (1) does not apply to a member or former 
member entitled to retired pay for non-regular service under 
chapter 1223 of this title who is under 60 years of age.''.
    (c) Administration of Related Provisions of Law or 
Policy.--With respect to any provision of law, or of any 
policy, regulation, or directive of the executive branch that 
refers to a member or former member of the uniformed services 
as being eligible for, or entitled to, retired pay under 
chapter 1223 of title 10, United States Code, but for the fact 
that the member or former member is under 60 years of age, such 
provision shall be carried out with respect to that member or 
former member by substituting for the reference to being 60 
years of age a reference to having attained the eligibility age 
applicable under subsection (f) of section 12731 of title 10, 
United States Code (as added by subsection (a)), to such member 
or former member for qualification for such retired pay under 
subsection (a) of such section.

SEC. 648. COMPUTATION OF YEARS OF SERVICE FOR PURPOSES OF RETIRED PAY 
                    FOR NON-REGULAR SERVICE.

    Section 12733(3) of title 10, United States Code, is 
amended--
            (1) in subparagraph (B), by striking ``and'' at the 
        end;
            (2) in subparagraph (C), by striking the period and 
        inserting ``before the year of service that includes 
        October 30, 2007; and''; and
            (3) by adding at the end the following new 
        subparagraph:
                    ``(D) 130 days in the year of service that 
                includes October 30, 2007, and in any 
                subsequent year of service.''.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

SEC. 651. AUTHORITY TO CONTINUE COMMISSARY AND EXCHANGE BENEFITS FOR 
                    CERTAIN INVOLUNTARILY SEPARATED MEMBERS OF THE 
                    ARMED FORCES.

    (a) Resumption for Members Involuntarily Separated From 
Active Duty.--Section 1146 of title 10, United States Code, is 
amended--
            (1) by inserting ``(a) Members Involuntarily 
        Separated From Active Duty.--'' before ``The Secretary 
        of Defense'';
            (2) in the first sentence, by striking ``October 1, 
        1990, and ending on December 31, 2001'' and inserting 
        ``October 1, 2007, and ending on December 31, 2012''; 
        and
            (3) in the second sentence, by striking ``the 
        period beginning on October 1, 1994, and ending on 
        December 31, 2001'' and inserting ``the same period''.
    (b) Extension to Members Involuntarily Separated From 
Selected Reserve.--Such section is further amended by adding at 
the end the following new subsection:
    ``(b) Members Involuntarily Separated From Selected 
Reserve.--The Secretary of Defense shall prescribe regulations 
to allow a member of the Selected Reserve of the Ready Reserve 
who is involuntarily separated from the Selected Reserve as a 
result of the exercise of the force shaping authority of the 
Secretary concerned under section 647 of this title or other 
force shaping authority during the period beginning on October 
1, 2007, and ending on December 31, 2012, to continue to use 
commissary and exchange stores during the two-year period 
beginning on the date of the involuntary separation of the 
member in the same manner as a member on active duty. The 
Secretary of Homeland Security shall implement this provision 
for Coast Guard members involuntarily separated during the same 
period.''.

SEC. 652. AUTHORIZATION OF INSTALLMENT DEDUCTIONS FROM PAY OF EMPLOYEES 
                    OF NONAPPROPRIATED FUND INSTRUMENTALITIES TO 
                    COLLECT INDEBTEDNESS TO THE UNITED STATES.

    Section 5514 of title 5, United States Code, is amended--
            (1) in subsection (a)(5), by inserting ``any 
        nonappropriated fund instrumentality described in 
        section 2105(c) of this title,'' after ``Commission,''; 
        and
            (2) by adding at the end the following new 
        subsection:
    ``(e) An employee of a nonappropriated fund instrumentality 
described in section 2105(c) of this title is deemed an 
employee covered by this section.''.

  Subtitle F--Consolidation of Special Pay, Incentive Pay, and Bonus 
                              Authorities

SEC. 661. CONSOLIDATION OF SPECIAL PAY, INCENTIVE PAY, AND BONUS 
                    AUTHORITIES OF THE UNIFORMED SERVICES.

    (a) Consolidation.--Chapter 5 of title 37, United States 
Code, is amended--
            (1) by inserting before section 301 the following 
        subchapter heading:

    ``SUBCHAPTER I--EXISTING SPECIAL PAY, INCENTIVE PAY, AND BONUS 
                             AUTHORITIES'';

        and
            (2) by adding at the end the following new 
        subchapters:

``SUBCHAPTER II--CONSOLIDATION OF SPECIAL PAY, INCENTIVE PAY, AND BONUS 
                              AUTHORITIES

``Sec. 331. General bonus authority for enlisted members

    ``(a) Authority To Provide Bonus.--The Secretary concerned 
may pay a bonus under this section to a person, including a 
member of the armed forces, who--
            ``(1) enlists in an armed force;
            ``(2) enlists in or affiliates with a reserve 
        component of an armed force;
            ``(3) reenlists, voluntarily extends an enlistment, 
        or otherwise agrees to serve--
                    ``(A) for a specified period in a 
                designated career field, skill, or unit of an 
                armed force; or
                    ``(B) under other conditions of service in 
                an armed force;
            ``(4) transfers from a regular component of an 
        armed force to a reserve component of that same armed 
        force or from a reserve component of an armed force to 
        the regular component of that same armed force; or
            ``(5) transfers from a regular component or reserve 
        component of an armed force to a regular component or 
        reserve component of another armed force, subject to 
        the approval of the Secretary with jurisdiction over 
        the armed force to which the member is transferring.
    ``(b) Service Eligibility.--A bonus authorized by 
subsection (a) may be paid to a person or member only if the 
person or member agrees under subsection (d)--
            ``(1) to serve for a specified period in a 
        designated career field, skill, unit, or grade; or
            ``(2) to meet some other condition or conditions of 
        service imposed by the Secretary concerned.
    ``(c) Maximum Amount and Method of Payment.--
            ``(1) Maximum amount.--The Secretary concerned 
        shall determine the amount of a bonus to be paid under 
        this section, except that--
                    ``(A) a bonus paid under paragraph (1) or 
                (2) of subsection (a) may not exceed $50,000 
                for a minimum two-year period of obligated 
                service agreed to under subsection (d);
                    ``(B) a bonus paid under paragraph (3) of 
                subsection (a) may not exceed $30,000 for each 
                year of obligated service in a regular 
                component agreed to under subsection (d);
                    ``(C) a bonus paid under paragraph (3) of 
                subsection (a) may not exceed $15,000 for each 
                year of obligated service in a reserve 
                component agreed to under subsection (d); and
                    ``(D) a bonus paid under paragraph (4) or 
                (5) of subsection (a) may not exceed $10,000.
            ``(2) Lump sum or installments.--A bonus under this 
        section may be paid in a lump sum or in periodic 
        installments, as determined by the Secretary concerned.
            ``(3) Fixing bonus amount.--Upon acceptance by the 
        Secretary concerned of the written agreement required 
        by subsection (d), the total amount of the bonus to be 
        paid under the agreement shall be fixed.
    ``(d) Written Agreement.--To receive a bonus under this 
section, a person or member determined to be eligible for the 
bonus shall enter into a written agreement with the Secretary 
concerned that specifies--
            ``(1) the amount of the bonus;
            ``(2) the method of payment of the bonus under 
        subsection (c)(2);
            ``(3) the period of obligated service; and
            ``(4) the type or conditions of the service.
    ``(e) Relationship to Other Pay and Allowances.--A bonus 
paid to a person or member under this section is in addition to 
any other pay and allowance to which the person or member is 
entitled.
    ``(f) Relationship to Prohibition on Bounties.--A bonus 
authorized under this section is not a bounty for purposes of 
section 514(a) of title 10.
    ``(g) Repayment.--A person or member who receives a bonus 
under this section and who fails to complete the period of 
service, or meet the conditions of service, for which the bonus 
is paid, as specified in the written agreement under subsection 
(d), shall be subject to the repayment provisions of section 
373 of this title.
    ``(h) Termination of Authority.--No agreement may be 
entered into under this section after December 31, 2009.

``Sec. 332. General bonus authority for officers

    ``(a) Authority To Provide Bonus.--The Secretary concerned 
may pay a bonus under this section to a person, including an 
officer in the uniformed services, who--
            ``(1) accepts a commission or appointment as an 
        officer in a uniformed service;
            ``(2) affiliates with a reserve component of a 
        uniformed service;
            ``(3) agrees to remain on active duty or to serve 
        in an active status for a specific period as an officer 
        in a uniformed service;
            ``(4) transfers from a regular component of a 
        uniformed service to a reserve component of that same 
        uniformed service or from a reserve component of a 
        uniformed service to the regular component of that same 
        uniformed service; or
            ``(5) transfers from a regular component or reserve 
        component of a uniformed service to a regular component 
        or reserve component of another uniformed service, 
        subject to the approval of the Secretary with 
        jurisdiction over the uniformed service to which the 
        member is transferring.
    ``(b) Service Eligibility.--A bonus authorized by 
subsection (a) may be paid to a person or officer only if the 
person or officer agrees under subsection (d)--
            ``(1) to serve for a specified period in a 
        designated career field, skill, unit, or grade; or
            ``(2) to meet some other condition or conditions of 
        service imposed by the Secretary concerned.
    ``(c) Maximum Amount and Method of Payment.--
            ``(1) Maximum amount.--The Secretary concerned 
        shall determine the amount of a bonus to be paid under 
        this section, except that--
                    ``(A) a bonus paid under paragraph (1) of 
                subsection (a) may not exceed $60,000 for a 
                minimum three-year period of obligated service 
                agreed to under subsection (d);
                    ``(B) a bonus paid under paragraph (2) of 
                subsection (a) may not exceed $12,000 for a 
                minimum three-year period of obligated service 
                agreed to under subsection (d);
                    ``(C) a bonus paid under paragraph (3) of 
                subsection (a) may not exceed $50,000 for each 
                year of obligated service in a regular 
                component agreed to under subsection (d);
                    ``(D) a bonus paid under paragraph (3) of 
                subsection (a) may not exceed $12,000 for each 
                year of obligated service in a reserve 
                component agreed to under subsection (d); and
                    ``(E) a bonus paid under paragraph (4) or 
                (5) of subsection (a) may not exceed $10,000.
            ``(2) Lump sum or installments.--A bonus under this 
        section may be paid in a lump sum or in periodic 
        installments, as determined by the Secretary concerned.
            ``(3) Fixing bonus amount.--Upon acceptance by the 
        Secretary concerned of the written agreement required 
        by subsection (d), the total amount of the bonus to be 
        paid under the agreement shall be fixed.
    ``(d) Written Agreement.--To receive a bonus under this 
section, a person or officer determined to be eligible for the 
bonus shall enter into a written agreement with the Secretary 
concerned that specifies--
            ``(1) the amount of the bonus;
            ``(2) the method of payment of the bonus under 
        subsection (c)(2);
            ``(3) the period of obligated service; and
            ``(4) the type or conditions of the service.
    ``(e) Relationship to Other Pay and Allowances.--The bonus 
paid to a person or officer under this section is in addition 
to any other pay and allowance to which the person or officer 
is entitled.
    ``(f) Repayment.--A person or officer who receives a bonus 
under this section and who fails to complete the period of 
service, or meet the conditions of service, for which the bonus 
is paid, as specified in the written agreement under subsection 
(d), shall be subject to the repayment provisions of section 
373 of this title.
    ``(g) Termination of Authority.--No agreement may be 
entered into under this section after December 31, 2009.

``Sec. 333. Special bonus and incentive pay authorities for nuclear 
                    officers

    ``(a) Nuclear Officer Bonus.--The Secretary of the Navy may 
pay a nuclear officer bonus under this section to a person, 
including an officer in the Navy, who--
            ``(1) is selected for the officer naval nuclear 
        power training program in connection with the 
        supervision, operation, and maintenance of naval 
        nuclear propulsion plants and agrees to serve, upon 
        completion of such training, on active duty in 
        connection with the supervision, operation, and 
        maintenance of naval nuclear propulsion plants; or
            ``(2) has the current technical and operational 
        qualification for duty in connection with the 
        supervision, operation, and maintenance of naval 
        nuclear propulsion plants and agrees to remain on 
        active duty in connection with the supervision, 
        operation, and maintenance of naval nuclear propulsion 
        plants.
    ``(b) Nuclear Officer Incentive Pay.--The Secretary of the 
Navy may pay nuclear officer incentive pay under this section 
to an officer in the Navy who--
            ``(1) is entitled to basic pay under section 204 of 
        this title; and
            ``(2) remains on active duty for a specified period 
        while maintaining current technical and operational 
        qualifications, as approved by the Secretary, for duty 
        in connection with the supervision, operation, and 
        maintenance of naval nuclear propulsion plants.
    ``(c) Additional Eligibility Criteria.--The Secretary of 
the Navy may impose such additional criteria for the receipt of 
a nuclear officer bonus or nuclear officer incentive pay under 
this section as the Secretary determines to be appropriate.
    ``(d) Maximum Amount and Method of Payment.--
            ``(1) Maximum amount.--The Secretary of the Navy 
        shall determine the amounts of a nuclear officer bonus 
        or nuclear officer incentive pay to be paid under this 
        section, except that--
                    ``(A) a nuclear officer bonus paid under 
                subsection (a) may not exceed $35,000 for each 
                12-month period of the agreement under 
                subsection (e); and
                    ``(B) the amount of nuclear officer 
                incentive paid under subsection (b) may not 
                exceed $25,000 for each 12-month period of 
                qualifying service.
            ``(2) Lump sum or installments.--A nuclear officer 
        bonus or nuclear officer incentive pay under this 
        section may be paid in a lump sum or in periodic 
        installments.
            ``(3) Fixing bonus amount.--Upon acceptance by the 
        Secretary concerned of the written agreement required 
        by subsection (e), the total amount of the nuclear 
        officer bonus to be paid under the agreement shall be 
        fixed.
    ``(e) Written Agreement for Bonus.--
            ``(1) Agreement required.--To receive a nuclear 
        officer bonus under subsection (a), a person or officer 
        determined to be eligible for the bonus shall enter 
        into a written agreement with the Secretary of the Navy 
        that specifies--
                    ``(A) the amount of the bonus;
                    ``(B) the method of payment of the bonus 
                under subsection (d)(2);
                    ``(C) the period of obligated service; and
                    ``(D) the type or conditions of the 
                service.
            ``(2) Replacement agreement.--An officer who is 
        performing obligated service under an agreement for a 
        nuclear officer bonus may execute a new agreement to 
        replace the existing agreement if the amount to be paid 
        under the new agreement will be higher than the amount 
        to be paid under the existing agreement. The period of 
        the new agreement shall be equal to or exceed the 
        remaining term of the period of the officer's existing 
        agreement. If a new agreement is executed under this 
        paragraph, the existing agreement shall be cancelled, 
        effective on the day before an anniversary date of the 
        existing agreement occurring after the date on which 
        the amount to be paid under this paragraph is 
        increased.
    ``(f) Relationship to Other Pay and Allowances.--A nuclear 
officer bonus or nuclear officer incentive pay paid to a person 
or officer under this section is in addition to any other pay 
and allowance to which the person or officer is entitled, 
except that a person or officer may not receive a payment under 
this section and section 332 or 353 of this title for the same 
skill and period of service.
    ``(g) Repayment.--A person or officer who receives a 
nuclear officer bonus or nuclear officer incentive pay under 
this section and who fails to complete the officer naval 
nuclear power training program, maintain required technical and 
operational qualifications, complete the period of service, or 
meet the types or conditions of service for which the bonus or 
incentive pay is paid, as specified in the written agreement 
under subsection (e) in the case of a nuclear officer bonus, 
shall be subject to the repayment provisions of section 373 of 
this title.
    ``(h) Regulations.--This section shall be administered 
under regulations prescribed by the Secretary of the Navy.
    ``(i) Termination of Authority.--No agreement may be 
entered into under this section after December 31, 2009.

``Sec. 334. Special aviation incentive pay and bonus authorities for 
                    officers

    ``(a) Aviation Incentive Pay.--The Secretary concerned may 
pay aviation incentive pay under this section to an officer in 
a regular or reserve component of a uniformed service who--
            ``(1) is entitled to basic pay under section 204 of 
        this title or compensation under section 206 of this 
        title;
            ``(2) maintains, or is in training leading to, an 
        aeronautical rating or designation that qualifies the 
        officer to engage in operational flying duty or 
        proficiency flying duty;
            ``(3) engages in, or is in training leading to, 
        frequent and regular performance of operational flying 
        duty or proficiency flying duty;
            ``(4) engages in or remains in aviation service for 
        a specified period; and
            ``(5) meets such other criteria as the Secretary 
        concerned determines appropriate.
    ``(b) Aviation Bonus.--The Secretary concerned may pay an 
aviation bonus under this section to an officer in a regular or 
reserve component of a uniformed service who--
            ``(1) is entitled to aviation incentive pay under 
        subsection (a);
            ``(2) has completed any active duty service 
        commitment incurred for undergraduate aviator training 
        or is within one year of completing such commitment;
            ``(3) executes a written agreement to remain on 
        active duty in a regular component or to serve in an 
        active status in a reserve component in aviation 
        service for at least one year; and
            ``(4) meets such other criteria as the Secretary 
        concerned determines appropriate.
    ``(c) Maximum Amount and Method of Payment.--
            ``(1) Maximum amount.--The Secretary concerned 
        shall determine the amount of a bonus or incentive pay 
        to be paid under this section, except that--
                    ``(A) aviation incentive pay under 
                subsection (a) shall be paid at a monthly rate, 
                not to exceed $850 per month; and
                    ``(B) an aviation bonus under subsection 
                (b) may not exceed $25,000 for each 12-month 
                period of obligated service agreed to under 
                subsection (d).
            ``(2) Lump sum or installments.--A bonus under this 
        section may be paid in a lump sum or in periodic 
        installments, as determined by the Secretary concerned.
            ``(3) Fixing bonus amount.--Upon acceptance by the 
        Secretary concerned of the written agreement required 
        by subsection (d), the total amount of the bonus to be 
        paid under the agreement shall be fixed.
    ``(d) Written Agreement for Bonus.--To receive an aviation 
officer bonus under this section, an officer determined to be 
eligible for the bonus shall enter into a written agreement 
with the Secretary concerned that specifies--
            ``(1) the amount of the bonus;
            ``(2) the method of payment of the bonus under 
        subsection (c)(2);
            ``(3) the period of obligated service; and
            ``(4) the type or conditions of the service.
    ``(e) Reserve Component Officers Performing Inactive Duty 
Training.--A reserve component officer who is entitled to 
compensation under section 206 of this title and who is 
authorized aviation incentive pay under this section may be 
paid an amount of incentive pay that is proportionate to the 
compensation received under section 206 for inactive-duty 
training.
    ``(f) Relationship to Other Pay and Allowances.--
            ``(1) Aviation incentive pay.--Aviation incentive 
        pay paid to an officer under subsection (a) shall be in 
        addition to any other pay and allowance to which the 
        officer is entitled, except that an officer may not 
        receive a payment under such subsection and section 351 
        or 353 of this title for the same skill and period of 
        service.
            ``(2) Aviation bonus.--An aviation bonus paid to an 
        officer under subsection (b) shall be in addition to 
        any other pay and allowance to which the officer is 
        entitled, except that an officer may not receive a 
        payment under such subsection and section 332 or 353 of 
        this title for the same skill and period of service.
    ``(g) Repayment.--An officer who receives aviation 
incentive pay or an aviation bonus under this section and who 
fails to fulfill the eligibility requirements for the receipt 
of the incentive pay or bonus or complete the period of service 
for which the incentive pay or bonus is paid, as specified in 
the written agreement under subsection (d) in the case of a 
bonus, shall be subject to the repayment provisions of section 
373 of this title.
    ``(h) Definitions.--In this section:
            ``(1) The term `aviation service' means service 
        performed by an officer in a regular or reserve 
        component (except a flight surgeon or other medical 
        officer) while holding an aeronautical rating or 
        designation or while in training to receive an 
        aeronautical rating or designation.
            ``(2) The term `operational flying duty' means 
        flying performed under competent orders by rated or 
        designated regular or reserve component officers while 
        serving in assignments in which basic flying skills 
        normally are maintained in the performance of assigned 
        duties as determined by the Secretary concerned, and 
        flying performed by members in training that leads to 
        the award of an aeronautical rating or designation.
            ``(3) The term `proficiency flying duty' means 
        flying performed under competent orders by rated or 
        designated regular or reserve component officers while 
        serving in assignments in which such skills would 
        normally not be maintained in the performance of 
        assigned duties.
            ``(4) The term `officer' includes an individual 
        enlisted and designated as an aviation cadet under 
        section 6911 of title 10.
    ``(i) Termination of Authority.--No agreement may be 
entered into under this section after December 31, 2009.

``Sec. 335. Special bonus and incentive pay authorities for officers in 
                    health professions

    ``(a) Health Professions Bonus.--The Secretary concerned 
may pay a health professions bonus under this section to a 
person, including an officer in the uniformed services, who is 
a graduate of an accredited school in a health profession and 
who--
            ``(1) accepts a commission or appointment as an 
        officer in a regular or reserve component of a 
        uniformed service, or affiliates with a reserve 
        component of a uniformed service, and agrees to serve 
        on active duty in a regular component or in an active 
        status in a reserve component in a health profession;
            ``(2) accepts a commission or appointment as an 
        officer and whose health profession specialty is 
        designated by the Secretary of Defense as a critically 
        short wartime specialty; or
            ``(3) agrees to remain on active duty or continue 
        serving in an active status in a reserve component in a 
        health profession.
    ``(b) Health Professions Incentive Pay.--The Secretary 
concerned may pay incentive pay under this section to an 
officer in a regular or reserve component of a uniformed 
service who--
            ``(1) is entitled to basic pay under section 204 of 
        this title or compensation under section 206 of this 
        title; and
            ``(2) is serving on active duty or in an active 
        status in a designated health profession specialty or 
        skill.
    ``(c) Board Certification Incentive Pay.--The Secretary 
concerned may pay board certification incentive pay under this 
section to an officer in a regular or reserve component of a 
uniformed service who--
            ``(1) is entitled to basic pay under section 204 of 
        this title or compensation under section 206 of this 
        title;
            ``(2) is board certified in a designated health 
        profession specialty or skill; and
            ``(3) is serving on active duty or in an active 
        status in such designated health profession specialty 
        or skill.
    ``(d) Additional Eligibility Criteria.--The Secretary 
concerned may impose such additional criteria for the receipt 
of a bonus or incentive pay under this section as the Secretary 
determines to be appropriate.
    ``(e) Maximum Amount and Method of Payment.--
            ``(1) Maximum amount.--The Secretary concerned 
        shall determine the amounts of a bonus or incentive pay 
        to be paid under this section, except that--
                    ``(A) a health professions bonus paid under 
                paragraph (1) of subsection (a) may not exceed 
                $30,000 for each 12-month period of obligated 
                service agreed to under subsection (f);
                    ``(B) a health professions bonus paid under 
                paragraph (2) of subsection (a) may not exceed 
                $100,000 for each 12-month period of obligated 
                service agreed to under subsection (f);
                    ``(C) a health professions bonus paid under 
                paragraph (3) of subsection (a) may not exceed 
                $75,000 for each 12-month period of obligated 
                service agreed to under subsection (f);
                    ``(D) health professions incentive pay 
                under subsection (b) may be paid monthly and 
                may not exceed, in any 12-month period--
                            ``(i) $100,000 for medical officers 
                        and dental surgeons; and
                            ``(ii) $15,000 for officers in 
                        other health professions; and
                    ``(E) board certification incentive pay 
                under subsection (c) may not exceed $6,000 for 
                each 12-month period an officer remains 
                certified in the designated health profession 
                specialty or skill.
            ``(2) Lump sum or installments.--A health 
        professions bonus under subsection (a) may be paid in a 
        lump sum or in periodic installments, as determined by 
        the Secretary concerned. Board certification incentive 
        pay under subsection (c) may be paid monthly, in a lump 
        sum at the beginning of the certification period, or in 
        periodic installments during the certification period, 
        as determined by the Secretary concerned.
            ``(3) Fixing bonus amount.--Upon acceptance by the 
        Secretary concerned of the written agreement required 
        by subsection (f), the total amount of the health 
        professions bonus to be paid under the agreement shall 
        be fixed.
    ``(f) Written Agreement for Bonus.--To receive a bonus 
under this section, an officer determined to be eligible for 
the bonus shall enter into a written agreement with the 
Secretary concerned that specifies--
            ``(1) the amount of the bonus;
            ``(2) the method of payment of the bonus under 
        subsection (e)(2);
            ``(3) the period of obligated service;
            ``(4) whether the service will be performed on 
        active duty or in an active status in a reserve 
        component; and
            ``(5) the type or conditions of the service.
    ``(g) Reserve Component Officers.--An officer in a reserve 
component authorized incentive pay under subsection (b) or (c) 
who is not serving on continuous active duty and is entitled to 
compensation under section 204 of this title or compensation 
under section 206 of this title may be paid a monthly amount of 
incentive pay that is proportionate to the basic pay or 
compensation received under this title.
    ``(h) Relationship to Other Pay and Allowances.--
            ``(1) Health professions bonus.--A bonus paid to a 
        person or officer under subsection (a) shall be in 
        addition to any other pay and allowance to which the 
        person or officer is entitled, except that a person or 
        officer may not receive a payment under such subsection 
        and section 332 of this title for the same period of 
        obligated service.
            ``(2) Health professions incentive pay.--Incentive 
        pay paid to an officer under subsection (b) shall be in 
        addition to any other pay and allowance to which an 
        officer is entitled, except that an officer may not 
        receive a payment under such subsection and section 353 
        of this title for the same skill and period of service.
            ``(3) Board certification incentive pay.--Incentive 
        pay paid to an officer under subsection (c) shall be in 
        addition to any other pay and allowance to which an 
        officer is entitled, except that an officer may not 
        receive a payment under such subsection and section 
        353(b) of this title for the same skill and period of 
        service covered by the certification.
    ``(i) Repayment.--An officer who receives a bonus or 
incentive pay under this section and who fails to fulfill the 
eligibility requirements for the receipt of the bonus or 
incentive pay or complete the period of service for which the 
bonus or incentive pay is paid, as specified in the written 
agreement under subsection (f) in the case of a bonus, shall be 
subject to the repayment provisions of section 373 of this 
title.
    ``(j) Health Profession Defined.--In this section, the term 
`health profession' means the following:
            ``(1) Any health profession performed by officers 
        in the Medical Corps of a uniformed service or by 
        officers designated as a medical officer.
            ``(2) Any health profession performed by officers 
        in the Dental Corps of a uniformed service or by 
        officers designated as a dental officer.
            ``(3) Any health profession performed by officers 
        in the Medical Service Corps of a uniformed service or 
        by officers designated as a medical service officer or 
        biomedical sciences officer.
            ``(4) Any health profession performed by officers 
        in the Medical Specialist Corps of a uniformed service 
        or by officers designated as a medical specialist.
            ``(5) Any health profession performed by officers 
        of the Nurse Corps of a uniformed service or by 
        officers designated as a nurse.
            ``(6) Any health profession performed by officers 
        in the Veterinary Corps of a uniformed service or by 
        officers designated as a veterinary officer.
            ``(7) Any health profession performed by officers 
        designated as a physician assistant.
            ``(8) Any health profession performed by officers 
        in the regular or reserve corps of the Public Health 
        Service.
    ``(k) Termination of Authority.--No agreement may be 
entered into under this section after December 31, 2009.

``Sec. 351. Hazardous duty pay

    ``(a) Hazardous Duty Pay.--The Secretary concerned may pay 
hazardous duty pay under this section to a member of a regular 
or reserve component of the uniformed services entitled to 
basic pay under section 204 of this title or compensation under 
section 206 of this title who--
            ``(1) performs duty in a hostile fire area 
        designated by the Secretary concerned, is exposed to a 
        hostile fire event, explosion of a hostile explosive 
        device, or any other hostile action, or is on duty 
        during a month in an area in which a hostile event 
        occurred which placed the member in grave danger of 
        physical injury;
            ``(2) performs duty designated by the Secretary 
        concerned as hazardous duty based upon the inherent 
        dangers of that duty and risks of physical injury; or
            ``(3) performs duty in a foreign area designated by 
        the Secretary concerned as an area in which the member 
        is subject to imminent danger of physical injury due to 
        threat conditions.
    ``(b) Maximum Amount.--The amount of hazardous duty pay 
paid to a member under subsection (a) shall be based on the 
type of duty and the area in which the duty is performed, as 
follows:
            ``(1) In the case of a member who performs duty in 
        a designated hostile fire area, as described in 
        subsection (a)(1), hazardous duty pay may not exceed 
        $450 per month.
            ``(2) In the case of a member who performs a 
        designated hazardous duty, as described in subsection 
        (a)(2), hazardous duty pay may not exceed $250 per 
        month.
            ``(3) In the case of a member who performs duty in 
        a foreign area designated as an imminent danger area, 
        as described in subsection (a)(3), hazardous duty pay 
        may not exceed $250 per month.
    ``(c) Method of Payment.--Hazardous duty pay shall be paid 
on a monthly basis. A member who is eligible for hazardous duty 
pay by reason of subsection (a) shall receive the full monthly 
rate of hazardous duty pay authorized by the Secretary 
concerned under such paragraph, notwithstanding subsection (d).
    ``(d) Reserve Component Members Performing Inactive Duty 
Training.--A member of a reserve component entitled to 
compensation under section 206 of this title who is authorized 
hazardous duty pay under this section may be paid an amount of 
hazardous duty pay that is proportionate to the compensation 
received by the member under section 206 of this title for 
inactive-duty training.
    ``(e) Administration and Retroactive Payments.--The 
effective date for the designation of a hostile fire area, as 
described in paragraph (1) of subsection (a), and for the 
designation of a foreign area as an imminent danger area, as 
described in paragraph (3) of such subsection, may be a date 
that occurs before, on, or after the actual date of the 
designation by the Secretary concerned.
    ``(f) Determination of Fact.--Any determination of fact 
that is made in administering subsection (a) is conclusive. The 
determination may not be reviewed by any other officer or 
agency of the United States unless there has been fraud or 
gross negligence. However, the Secretary concerned may change 
the determination on the basis of new evidence or for other 
good cause. The regulations prescribed to administer this 
section shall define the activities that are considered 
hazardous for purposes of subsection (a)(2).
    ``(g) Relationship to Other Pay and Allowances.--
            ``(1) In addition to other pay and allowances.--A 
        member may be paid hazardous duty pay under this 
        section in addition to any other pay and allowances to 
        which the member is entitled. The regulations 
        prescribed to administer this section shall address 
        dual compensation under this section for multiple 
        circumstances involving performance of a designated 
        hazardous duty, as described in paragraph (2) of 
        subsection (a), or for duty in certain designated 
        areas, as described in paragraph (1) or (3) of such 
        subsection, that is performed by a member during a 
        single month of service.
            ``(2) Limitation.--A member may not receive 
        hazardous duty pay under this section for a month for 
        more than three qualifying instances described in 
        subsection (a)(2).
    ``(h) Prohibition on Variable Rates.--The regulations 
prescribed to administer this section may not include varied 
criteria or rates for payment of hazardous duty for officers 
and enlisted members.
    ``(i) Termination of Authority.--No hazardous duty pay 
under this section may be paid after December 31, 2009.

``Sec. 352. Assignment pay or special duty pay

    ``(a) Assignment or Special Duty Pay Authorized.--The 
Secretary concerned may pay assignment or special duty pay 
under this section to a member of a regular or reserve 
component of the uniformed services who--
            ``(1) is entitled to basic pay under section 204 of 
        this title or compensation under section 206 of this 
        title; and
            ``(2) performs duties in an assignment, location, 
        or unit designated by, and under the conditions of 
        service specified by, the Secretary concerned.
    ``(b) Maximum Amount and Method of Payment.--
            ``(1) Lump sum or installments.--Assignment or 
        special duty pay under subsection (a) may be paid 
        monthly, in a lump sum, or in periodic installments 
        other than monthly, as determined by the Secretary 
        concerned.
            ``(2) Maximum monthly amount.--The maximum monthly 
        amount of assignment or special duty pay may not exceed 
        $5,000.
            ``(3) Maximum lump sum amount.--The amount of a 
        lump sum payment of assignment or special duty pay 
        payable to a member may not exceed the amount equal to 
        the product of--
                    ``(A) the maximum monthly rate authorized 
                under paragraph (2) at the time the member 
                enters into a written agreement under 
                subsection (c); and
                    ``(B) the number of continuous months in 
                the period for which assignment or special duty 
                pay will be paid pursuant to the agreement.
            ``(4) Maximum installment amount.--The amount of 
        each installment payment of assignment or special duty 
        pay payable to a member on an installment basis may not 
        exceed the amount equal to--
                    ``(A) the product of--
                            ``(i) a monthly rate specified in 
                        the written agreement entered into 
                        under subsection (c), which monthly 
                        rate may not exceed the maximum monthly 
                        rate authorized under paragraph (2) at 
                        the time the member enters into the 
                        agreement; and
                            ``(ii) the number of continuous 
                        months in the period for which the 
                        assignment or special duty pay will be 
                        paid; divided by
                    ``(B) the number of installments over such 
                period.
            ``(5) Effect of extension.--If a member extends an 
        assignment or performance of duty specified in an 
        agreement with the Secretary concerned under subsection 
        (c), assignment or special duty pay for the period of 
        the extension may be paid on a monthly basis, in a lump 
        sum, or in installments, consistent with this 
        subsection.
    ``(c) Written Agreement.--
            ``(1) Discretionary for monthly payments.--The 
        Secretary concerned may require a member to enter into 
        a written agreement with the Secretary in order to 
        qualify for the payment of assignment or special duty 
        pay on a monthly basis. The written agreement shall 
        specify the period for which the assignment or special 
        duty pay will be paid to the member and the monthly 
        rate of the assignment or special duty pay.
            ``(2) Required for lump sum or installment 
        payments.--The Secretary concerned shall require a 
        member to enter into a written agreement with the 
        Secretary in order to qualify for payment of assignment 
        or special duty pay on a lump sum or installment basis. 
        The written agreement shall specify the period for 
        which the assignment or special duty pay will be paid 
        to the member and the amount of the lump sum or each 
        periodic installment.
    ``(d) Reserve Component Members Performing Inactive Duty 
Training.--A member of a reserve component entitled to 
compensation under section 206 of this title who is authorized 
assignment or special duty pay under this section may be paid 
an amount of assignment or special duty pay that is 
proportionate to the compensation received by the member under 
section 206 of this title for inactive-duty training.
    ``(e) Relationship to Other Pay and Allowances.--Assignment 
or special duty pay paid to a member under this section is in 
addition to any other pay and allowances to which the member is 
entitled.
    ``(f) Repayment.--A member who receives assignment or 
special duty pay under this section and who fails to fulfill 
the eligibility requirements under subsection (a) for receipt 
of such pay shall be subject to the repayment provisions of 
section 373 of this title.
    ``(g) Termination of Authority.--No agreement may be 
entered into under this section after December 31, 2009.

``Sec. 353. Skill incentive pay or proficiency bonus

    ``(a) Skill Incentive Pay.--The Secretary concerned may pay 
a monthly skill incentive pay to a member of a regular or 
reserve component of the uniformed services who--
            ``(1) is entitled to basic pay under section 204 of 
        this title or compensation under section 206 of this 
        title; and
            ``(2) serves in a career field or skill designated 
        as critical by the Secretary concerned.
    ``(b) Skill Proficiency Bonus.--The Secretary concerned may 
pay a proficiency bonus to a member of a regular or reserve 
component of the uniformed services who--
            ``(1) is entitled to basic pay under section 204 of 
        this title or compensation under section 206 of this 
        title; and
            ``(2) is determined to have, and maintains, 
        certified proficiency under subsection (d) in a skill 
        designated as critical by the Secretary concerned.
    ``(c) Maximum Amounts and Methods of Payment.--
            ``(1) Skill incentive pay.--Skill incentive pay 
        under subsection (a) shall be in paid monthly in an 
        amount not exceed $1,000 per month.
            ``(2) Proficiency bonus.--A proficiency bonus under 
        subsection (b) may be paid in a lump sum at the 
        beginning of the proficiency certification period or in 
        periodic installments during the proficiency 
        certification period. The amount of the bonus may not 
        exceed $12,000 for each 12-month period of 
        certification. The Secretary concerned may not vary the 
        criteria or rates for the proficiency bonus paid for 
        officers and enlisted members.
    ``(d) Certified Proficiency for Proficiency Bonus.--
            ``(1) Certification required.--Proficiency in a 
        designated critical skill for purposes of subsection 
        (b) shall be subject to annual certification by the 
        Secretary concerned.
            ``(2) Duration of certification.--A certification 
        period for purposes of subsection (c)(2) shall expire 
        at the end of the one-year period beginning on the 
        first day of the first month beginning on or after the 
        certification date.
            ``(3) Waiver.--Notwithstanding paragraphs (1) and 
        (2), the regulations prescribed to administer this 
        section shall address the circumstances under which the 
        Secretary concerned may waive the certification 
        requirement under paragraph (1) or extend a 
        certification period under paragraph (2).
    ``(e) Written Agreement.--
            ``(1) Discretionary for skill incentive pay.--The 
        Secretary concerned may require a member to enter into 
        a written agreement with the Secretary in order to 
        qualify for the payment of skill incentive pay under 
        subsection (a). The written agreement shall specify the 
        period for which the skill incentive pay will be paid 
        to the member and the monthly rate of the pay.
            ``(2) Required for proficiency bonus.--The 
        Secretary concerned shall require a member to enter 
        into a written agreement with the Secretary in order to 
        qualify for payment of a proficiency bonus under 
        subsection (b). The written agreement shall specify the 
        amount of the proficiency bonus, the period for which 
        the bonus will be paid, and the initial certification 
        or recertification necessary for payment of the 
        proficiency bonus.
    ``(f) Reserve Component Members Performing Inactive Duty 
Training.--
            ``(1) Proration.--A member of a reserve component 
        entitled to compensation under section 206 of this 
        title who is authorized skill incentive pay under 
        subsection (a) or a skill proficiency bonus under 
        subsection (b) may be paid an amount of the pay or 
        bonus, as the case may be, that is proportionate to the 
        compensation received by the member under section 206 
        of this title for inactive-duty training.
            ``(2) Exception for foreign language proficiency.--
        No reduction in the amount of a skill proficiency bonus 
        may be made under paragraph (1) in the case of a member 
        of a reserve component who is authorized the bonus 
        because of the member's proficiency in a foreign 
        language.
    ``(g) Repayment.--A member who receives skill incentive pay 
or a proficiency bonus under this section and who fails to 
fulfill the eligibility requirement for receipt of the pay or 
bonus shall be subject to the repayment provisions of section 
373 of this title.
    ``(h) Relationship to Other Pays and Allowances.--A member 
may not be paid more than one pay under this section in any 
month for the same period of service and skill. A member may be 
paid skill incentive pay or the proficiency bonus under this 
section in addition to any other pay and allowances to which 
the member is entitled, except that a member may not be paid 
skill incentive pay or a proficiency bonus under this section 
and hazardous duty pay under section 351 of this title for the 
same period of service in the same career field or skill.
    ``(i) Termination of Authority.--No agreement may be 
entered into under this section after December 31, 2009.

                  ``SUBCHAPTER III--GENERAL PROVISIONS

``Sec. 371. Relationship to other incentives and pays

    ``(a) Treatment.--A bonus or incentive pay paid to a member 
of the uniformed services under subchapter II is in addition to 
any other pay and allowance to which a member is entitled, 
unless otherwise provided under this chapter.
    ``(b) Exception.--A member may not receive a bonus or 
incentive pay under both subchapter I and subchapter II for the 
same activity, skill, or period of service.
    ``(c) Relationship to Other Computations.--The amount of a 
bonus or incentive pay to which a member is entitled under 
subchapter II may not be included in computing the amount of--
            ``(1) any increase in pay authorized by any other 
        provision of this title; or
            ``(2) any retired pay, retainer pay, separation 
        pay, or disability severance pay.

``Sec. 372. Continuation of pays during hospitalization and 
                    rehabilitation resulting from wounds, injury, or 
                    illness incurred while on duty in a hostile fire 
                    area or exposed to an event of hostile fire or 
                    other hostile action

    ``(a) Continuation of Pays.--If a member of a regular or 
reserve component of a uniformed service incurs a wound, 
injury, or illness in the line of duty while serving in a 
combat operation or a combat zone, while serving in a hostile 
fire area, or while exposed to a hostile fire event, as 
described under section 351 of this title, and is hospitalized 
for treatment of the wound, injury, or illness, the Secretary 
concerned may continue to pay to the member, notwithstanding 
any provision of this chapter to the contrary, all pay and 
allowances (including any bonus, incentive pay, or similar 
benefit) that were being paid to the member at the time the 
member incurred the wound, injury, or illness.
    ``(b) Duration.--The payment of pay and allowances to a 
member under subsection (a) may continue until the end of the 
first month beginning after the earliest of the following 
dates:
            ``(1) The date on which the member is returned for 
        assignment to other than a medical or patient unit for 
        duty.
            ``(2) One year after the date on which the member 
        is first hospitalized for the treatment of the wound, 
        injury, or illness, except that the Secretary concerned 
        may extend the termination date in six-month 
        increments.
            ``(3) The date on which the member is discharged, 
        separated, or retired (including temporary disability 
        retirement) from the uniformed services.
    ``(c) Bonus, Incentive Pay, or Similar Benefit Defined.--In 
this section, the term `bonus, incentive pay, or similar 
benefit' means a bonus, incentive pay, special pay, or similar 
payment paid to a member of the uniformed services under this 
title or title 10.

``Sec. 373. Repayment of unearned portion of bonus, incentive pay, or 
                    similar benefit when conditions of payment not met

    ``(a) Repayment.--Except as provided in subsection (b), a 
member of the uniformed services who is paid a bonus, incentive 
pay, or similar benefit, the receipt of which is contingent 
upon the member's satisfaction of certain service or 
eligibility requirements, shall repay to the United States any 
unearned portion of the bonus, incentive pay, or similar 
benefit if the member fails to satisfy any such service or 
eligibility requirement.
    ``(b) Exceptions.--The regulations prescribed to administer 
this section may specify procedures for determining the 
circumstances under which an exception to the required 
repayment may be granted.
    ``(c) Effect of Bankruptcy.--An obligation to repay the 
United States under this section is, for all purposes, a debt 
owed the United States. A discharge in bankruptcy under title 
11 does not discharge a person from such debt if the discharge 
order is entered less than five years after--
            ``(1) the date of the termination of the agreement 
        or contract on which the debt is based; or
            ``(2) in the absence of such an agreement or 
        contract, the date of the termination of the service on 
        which the debt is based.
    ``(d) Definitions.--In this section:
            ``(1) The term `bonus, incentive pay, or similar 
        benefit' means a bonus, incentive pay, special pay, or 
        similar payment, or an educational benefit or stipend, 
        paid to a member of the uniformed services under a 
        provision of law that refers to the repayment 
        requirements of this section or section 303a(e) of this 
        title.
            ``(2) The term `service', as used in subsection 
        (c)(2), refers to an obligation willingly undertaken by 
        a member of the uniformed services, in exchange for a 
        bonus, incentive pay, or similar benefit offered by the 
        Secretary concerned--
                    ``(A) to a member in a regular or reserve 
                component who remains on active duty or in an 
                active status;
                    ``(B) to perform duty in a specified skill, 
                with or without a specified qualification or 
                credential;
                    ``(C) to perform duty in a specified 
                assignment, location or unit; or
                    ``(D) to perform duty for a specified 
                period of time.

``Sec. 374. Regulations

    ``This subchapter and subchapter II shall be administered 
under regulations prescribed by--
            ``(1) the Secretary of Defense, with respect to the 
        armed forces under the jurisdiction of the Secretary of 
        Defense;
            ``(2) the Secretary of Homeland Security, with 
        respect to the Coast Guard when it is not operating as 
        a service in the Navy;
            ``(3) the Secretary of Health and Human Services, 
        with respect to the commissioned corps of the Public 
        Health Service; and
            ``(4) the Secretary of Commerce, with respect to 
        the National Oceanic and Atmospheric Administration.''.
    (b) Transfer of 15-Year Career Status Bonus to Subchapter 
II.--
            (1) Transfer.--Section 322 of title 37, United 
        States Code, is transferred to appear after section 353 
        of subchapter II of chapter 5 of such title, as added 
        by subsection (a), and is redesignated as section 354.
            (2) Conforming amendment.--Subsection (f) of such 
        section, as so transferred and redesignated, is amended 
        by striking ``section 303a(e)'' and inserting ``section 
        373''.
            (3) Cross references.--Sections 1401a, 1409(b)(2), 
        and 1410 of title 10, United States Code, are amended 
        by striking ``section 322'' each place it appears and 
        inserting ``section 322 (as in effect before the 
        enactment of the National Defense Authorization Act for 
        Fiscal Year 2008) or section 354''.
    (c) Transfer of Retention Incentives for Members Qualified 
in Critical Military Skills or Assigned to High Priority 
Units.--
            (1) Transfer.--Section 323 of title 37, United 
        States Code, as amended by sections 614 and 622, is 
        transferred to appear after section 354 of subchapter 
        II of chapter 5 of such title, as transferred and 
        redesignated by subsection (b)(1), and is redesignated 
        as section 355.
            (2) Conforming amendment.--Subsection (g) of such 
        section, as so transferred and redesignated, is amended 
        by striking ``section 303a(e)'' and inserting ``section 
        373''.
    (d) Clerical Amendment.--The table of sections at the 
beginning of chapter 5 of title 37, United States Code, is 
amended to read as follows:

     ``subchapter i--existing special pay, incentive pay, and bonus 
                               authorities

``Sec.
``301. Incentive pay: hazardous duty.
``301a. Incentive pay: aviation career.
``301b. Special pay: aviation career officers extending period of active 
          duty.
``301c. Incentive pay: submarine duty.
``301d. Multiyear retention bonus: medical officers of the armed forces.
``301e. Multiyear retention bonus: dental officers of the armed forces.
``302. Special pay: medical officers of the armed forces.
``302a. Special pay: optometrists.
``302b. Special pay: dental officers of the armed forces.
``302c. Special pay: psychologists and nonphysician health care 
          providers.
``302d. Special pay: accession bonus for registered nurses.
``302e. Special pay: nurse anesthetists.
``302f. Special pay: reserve, recalled, or retained health care 
          officers.
``302g. Special pay: Selected Reserve health care professionals in 
          critically short wartime specialties.
``302h. Special pay: accession bonus for dental officers.
``302i. Special pay: pharmacy officers.
``302j. Special pay: accession bonus for pharmacy officers.
``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.
``303. Special pay: veterinarians.
``303a. Special pay: general provisions.
``303b. Waiver of board certification requirements.
``304. Special pay: diving duty.
``305. Special pay: hardship duty pay.
``305a. Special pay: career sea pay.
``305b. Special pay: service as member of Weapons of Mass Destruction 
          Civil Support Team.
``306. Special pay: officers holding positions of unusual responsibility 
          and of critical nature.
``306a. Special pay: members assigned to international military 
          headquarters.
``307. Special pay: special duty assignment pay for enlisted members.
``307a. Special pay: assignment incentive pay.
``308. Special pay: reenlistment bonus.
``308b. Special pay: reenlistment bonus for members of the Selected 
          Reserve.
``308c. Special pay: bonus for affiliation or enlistment in the Selected 
          Reserve.
``308d. Special pay: members of the Selected Reserve assigned to certain 
          high priority units.
``308g. Special pay: bonus for enlistment in elements of the Ready 
          Reserve other than the Selected Reserve.
``308h. Special pay: bonus for reenlistment, enlistment, or voluntary 
          extension of enlistment in elements of the Ready Reserve other 
          than the Selected Reserve.
``308i. Special pay: prior service enlistment bonus.
``308j. Special pay: affiliation bonus for officers in the Selected 
          Reserve.
``309. Special pay: enlistment bonus.
``310. Special pay: duty subject to hostile fire or imminent danger.
``312. Special pay: nuclear-qualified officers extending period of 
          active duty.
``312b. Special pay: nuclear career accession bonus.
``312c. Special pay: nuclear career annual incentive bonus.
``314. Special pay or bonus: qualified members extending duty at 
          designated locations overseas.
``315. Special pay: engineering and scientific career continuation pay.
``316. Special pay: bonus for members with foreign language proficiency.
``317. Special pay: officers in critical acquisition positions extending 
          period of active duty.
``318. Special pay: special warfare officers extending period of active 
          duty.
``319. Special pay: surface warfare officer continuation pay.
``320. Incentive pay: career enlisted flyers.
``321. Special pay: judge advocate continuation pay.
``324. Special pay: accession bonus for new officers in critical skills.
``325. Incentive bonus: savings plan for education expenses and other 
          contingencies.
``326. Incentive bonus: conversion to military occupational specialty to 
          ease personnel shortage.
``327. Incentive bonus: transfer between armed forces.
``328. Combat-related injury rehabilitation pay.
``329. Incentive bonus: retired members and reserve component members 
          volunteering for high-demand, low-density assignments.
``330. Special pay: accession bonus for officer candidates.

 ``subchapter ii--consolidation of special pay, incentive pay, and bonus 
                               authorities

``331. General bonus authority for enlisted members.
``332. General bonus authority for officers.
``333. Special bonus and incentive pay authorities for nuclear officers.
``334. Special aviation incentive pay and bonus authorities for 
          officers.
``335. Special bonus and incentive pay authorities for officers in 
          health professions.
``351. Hazardous duty pay.
``352. Assignment pay or special duty pay.
``353. Skill incentive pay or proficiency bonus.
``354. Special pay: 15-year career status bonus for members entering 
          service on or after August 1, 1986.
``355. Special pay: retention incentives for members qualified in 
          critical military skills or assigned to high priority units.

                   ``subchapter iii--general provisions

``371. Relationship to other incentives and pays.
``372. Continuation of pays during hospitalization and rehabilitation 
          resulting from wounds, injury, or illness incurred while on 
          duty in a hostile fire area or exposed to an event of hostile 
          fire or other hostile action.
``373. Repayment of unearned portion of bonus, incentive pay, or similar 
          benefit when conditions of payment not met.
``374. Regulations.''.

SEC. 662. TRANSITIONAL PROVISIONS.

    (a) Implementation Plan.--
            (1) Development.--The Secretary of Defense shall 
        develop a plan to implement subchapters II and III of 
        chapter 5 of title 37, United States Code, as added by 
        section 661(a), and to correspondingly transition all 
        of the special and incentive pay programs for members 
        of the uniformed services solely to provisions of such 
        subchapters.
            (2) Submission.--Not later than one year after the 
        date of the enactment of this Act, the Secretary shall 
        submit the implementation plan to the congressional 
        defense committees.
    (b) Transition Period.--During a transition period of not 
more than 10 years beginning on the date of the enactment of 
this Act, the Secretary of Defense, the Secretary of a military 
department, and the Secretaries referred to in subsection (d) 
may continue to use the authorities in provisions in subchapter 
I of chapter 5 of title 37, United States Code, as designated 
by section 661(a), but subject to the terms of such provisions 
and such modifications as the Secretary of Defense may include 
in the implementation plan, to provide bonuses and special and 
incentive pays for members of the uniformed services.
    (c) Notice of Implementation of New Authorities.--Not less 
than 30 days before the date on which a special pay or bonus 
authority provided under subchapter II of chapter 5 of title 
37, United States Code, as added by section 661(a), is first 
utilized, the Secretary of Defense shall submit to the 
congressional defense committees a notice of the implementation 
of the authority, including whether, as a result of 
implementation of the authority, a corresponding authority in 
subchapter I of such chapter, as designated by section 661(a), 
will no longer be used.
    (d) Coordination.--The Secretary of Defense shall prepare 
the implementation plan in coordination with--
            (1) the Secretary of Homeland Security, with 
        respect to the Coast Guard;
            (2) the Secretary of Health and Human Services, 
        with respect to the commissioned corps of the Public 
        Health Service; and
            (3) the Secretary of Commerce, with respect to the 
        National Oceanic and Atmospheric Administration.
    (e) No Effect on Fiscal Year 2008 Obligations.--During 
fiscal year 2008, obligations incurred under subchapters I, II, 
and III of chapter 5 of title 37, United States Code, as 
amended by section 661, to provide bonuses, incentive pays, 
special pays, and similar payments to members of the uniformed 
services under such subchapters may not exceed the obligations 
that would be incurred in the absence of the amendments made by 
such section.

                       Subtitle G--Other Matters

SEC. 671. REFERRAL BONUS AUTHORITIES.

    (a) Codification and Modification of army Referral Bonus 
Authority.--
            (1) Army referral bonus.--Chapter 333 of title 10, 
        United States Code, is amended by inserting after 
        section 3251 the following new section:

``Sec. 3252. Bonus to encourage Army personnel to refer persons for 
                    enlistment in the Army

    ``(a) Authority To Pay Bonus.--
            ``(1) Authority.--The Secretary of the Army may pay 
        a bonus under this section to an individual referred to 
        in paragraph (2) who refers to an Army recruiter a 
        person who has not previously served in an armed force 
        and who, after such referral, enlists in the regular 
        component of the Army or in the Army National Guard or 
        Army Reserve.
            ``(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) Referral.--For purposes of this section, a referral 
for which a bonus may be paid under subsection (a) occurs--
            ``(1) when the individual concerned contacts an 
        Army recruiter on behalf of a person interested in 
        enlisting in the Army; or
            ``(2) when a person interested in enlisting in the 
        Army contacts the Army recruiter and informs the 
        recruiter of the role of the individual concerned in 
        initially recruiting the person.
    ``(c) Certain Referrals Ineligible.--
            ``(1) Referral of immediate family.--A member of 
        the Army or civilian employee of the Department of the 
        Army may not be paid a bonus under subsection (a) for 
        the referral of an immediate family member.
            ``(2) Members in recruiting roles.--A member of the 
        Army or civilian employee of the Department of the Army 
        serving in a recruiting or retention assignment, or 
        assigned to other duties regarding which eligibility 
        for a bonus under subsection (a) could (as determined 
        by the Secretary) be perceived as creating a conflict 
        of interest, may not be paid a bonus under subsection 
        (a).
            ``(3) Junior reserve officers' training corps 
        instructors.--A member of the Army detailed under 
        subsection (c)(1) of section 2031 of this title 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).
    ``(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 as provided in subsection (e).
    ``(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.
            ``(2) Not more than $1,000 shall be paid upon the 
        completion of basic training and individual advanced 
        training by the person.
    ``(f) Relation to Prohibition on Bounties.--The referral 
bonus authorized by this section is not a bounty for purposes 
of section 514(a) of this title.
    ``(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 this title, title 37 or 38, or any other 
provision of law.
    ``(h) Duration of Authority.--A bonus may not be paid under 
subsection (a) with respect to any referral that occurs after 
December 31, 2008.''.
            (2) Clerical amendment.--The table of sections at 
        the beginning of such chapter is amended by inserting 
        after the item relating to section 3251 the following 
        new item:

``3252. Bonus to encourage Army personnel to refer persons for 
          enlistment in the Army.''.

    (b) Bonus for Referral of Persons for Appointment as 
Officers to Serve in Health Professions.--
            (1) Health professions referral bonus .--Chapter 53 
        of such title is amended by inserting before section 
        1031 the following new section:

``Sec. 1030. Bonus to encourage Department of Defense personnel to 
                    refer persons for appointment as officers to serve 
                    in health professions

    ``(a) Authority To Pay Bonus.--
            ``(1) Authority.--The Secretary of Defense may 
        authorize the appropriate Secretary to pay a bonus 
        under this section to an individual referred to in 
        paragraph (2) who refers to a military recruiter a 
        person who has not previously served in an armed force 
        and, after such referral, takes an oath of enlistment 
        that leads to appointment as a commissioned officer, or 
        accepts an appointment as a commissioned officer, in an 
        armed force in a health profession designated by the 
        appropriate Secretary for purposes of this section.
            ``(2) Individuals eligible for bonus.--Subject to 
        subsection (c), the following individuals are eligible 
        for a referral bonus under this section:
                    ``(A) A member of the armed forces in a 
                regular component of the armed forces.
                    ``(B) A member of the armed forces in a 
                reserve component of the armed forces.
                    ``(C) A member of the armed forces in a 
                retired status, including a member under 60 
                years of age who, but for age, would be 
                eligible for retired or retainer pay.
                    ``(D) A civilian employee of a military 
                department or the Department of Defense.
    ``(b) Referral.--For purposes of this section, a referral 
for which a bonus may be paid under subsection (a) occurs--
            ``(1) when the individual concerned contacts a 
        military recruiter on behalf of a person interested in 
        taking an oath of enlistment that leads to appointment 
        as a commissioned officer, or accepting an appointment 
        as a commissioned officer, as applicable, in an armed 
        force in a health profession; or
            ``(2) when a person interested in taking an oath of 
        enlistment that leads to appointment as a commissioned 
        officer, or accepting an appointment as a commissioned 
        officer, as applicable, in an armed force in a health 
        profession contacts a military recruiter and informs 
        the recruiter of the role of the individual concerned 
        in initially recruiting the person.
    ``(c) Certain Referrals Ineligible.--
            ``(1) Referral of immediate family.--A member of 
        the armed forces or civilian employee of a military 
        department or the Department of Defense may not be paid 
        a bonus under subsection (a) for the referral of an 
        immediate family member.
            ``(2) Members in recruiting roles.--A member of the 
        armed forces or civilian employee of a military 
        department or the Department of Defense serving in a 
        recruiting or retention assignment, or assigned to 
        other duties regarding which eligibility for a bonus 
        under subsection (a) could (as determined by the 
        appropriate Secretary) be perceived as creating a 
        conflict of interest, may not be paid a bonus under 
        subsection (a).
            ``(3) Junior reserve officers' training corps 
        instructors.--A member of the armed forces detailed 
        under subsection (c)(1) of section 2031 of this title 
        to serve as an administrator or instructor in the 
        Junior Reserve Officers' Training Corps program or a 
        retired member of the armed forces employed as an 
        administrator or instructor in the program under 
        subsection (d) of such section may not be paid a bonus 
        under subsection (a).
    ``(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 as provided in subsection (e).
    ``(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 
        execution by the person of an agreement to serve as an 
        officer in a health profession in an armed force for 
        not less than 3 years,
            ``(2) Not more than $1,000 shall be paid upon the 
        completion by the person of the initial period of 
        military training as an officer.
    ``(f) Relation to Prohibition on Bounties.--The referral 
bonus authorized by this section is not a bounty for purposes 
of section 514(a) of this title.
    ``(g) Coordination With Receipt of Retired Pay.--A bonus 
paid under this section to a member of the armed forces in a 
retired status is in addition to any compensation to which the 
member is entitled under this title, title 37 or 38, or any 
other provision of law.
    ``(h) Appropriate Secretary Defined.--In this section, the 
term `appropriate Secretary' means--
            ``(1) the Secretary of the Army, with respect to 
        matters concerning the Army;
            ``(2) the Secretary of the Navy, with respect to 
        matters concerning the Navy, the Marine Corps, and the 
        Coast Guard when it is operating as a service in the 
        Navy;
            ``(3) the Secretary of the Air Force, with respect 
        to matters concerning the Air Force; and
            ``(4) the Secretary of Defense, with respect to 
        personnel of the Department of Defense.
    ``(i) Duration of Authority.--A bonus may not be paid under 
subsection (a) with respect to any referral that occurs after 
December 31, 2008.''.
            (2) Clerical amendments.--The table of sections at 
        the beginning of such chapter is amended by inserting 
        before the item relating to section 1031 the following 
        new item:

``1030. Bonus to encourage Department of Defense personnel to refer 
          persons for appointment as officers to serve in health 
          professions.''.

    (c) Repeal of Superseded army Referral Bonus Authority.--
            (1) Repeal.--Section 645 of the National Defense 
        Authorization Act for Fiscal Year 2006 (Public Law 109-
        163) is repealed.
            (2) Payment of bonuses under superseded 
        authority.--Any bonus payable under section 645 of the 
        National Defense Authorization Act for Fiscal Year 
        2006, as in effect before its repeal by paragraph (1), 
        shall remain payable after that date and shall be paid 
        in accordance with the provisions of such section, as 
        in effect on the day before the date of the enactment 
        of this Act.

SEC. 672. EXPANSION OF EDUCATION LOAN REPAYMENT PROGRAM FOR MEMBERS OF 
                    THE SELECTED RESERVE.

    (a) Additional Educational Loans Eligible for Repayment.--
Paragraph (1) of subsection (a) of section 16301 of title 10, 
United States Code, is amended--
            (1) by striking ``or'' at the end of subparagraph 
        (B);
            (2) by striking the period at the end of 
        subparagraph (C) and inserting ``; or''; and
            (3) by inserting after subparagraph (C) the 
        following new subparagraph:
            ``(D) any loan incurred for educational purposes 
        made by a lender that is--
                    ``(i) an agency or instrumentality of a 
                State;
                    ``(ii) a financial or credit institution 
                (including an insurance company) that is 
                subject to examination and supervision by an 
                agency of the United States or any State;
                    ``(iii) a pension fund approved by the 
                Secretary for purposes of this section; or
                    ``(iv) a nonprofit private entity 
                designated by a State, regulated by that State, 
                and approved by the Secretary for purposes of 
                this section.''.
    (b) Participation of Officers in Program.--Such subsection 
is further amended--
            (1) in paragraph (2)--
                    (A) by striking ``Except as provided in 
                paragraph (3), the Secretary'' and inserting 
                ``The Secretary''; and
                    (B) by striking ``an enlisted member of the 
                Selected Reserve of the Ready Reserve of an 
                armed force in a reserve component and military 
                specialty'' and inserting ``a member of the 
                Selected Reserve of the Ready Reserve of an 
                armed force in a reserve component and in an 
                officer program or military specialty''; and
            (2) by striking paragraph (3).
    (c) Clerical Amendments.--
            (1) Section heading.--The heading of such section 
        is amended to read as follows:

``Sec. 16301. Education loan repayment program: members of Selected 
                    Reserve''.

            (2) Table of sections.--The table of sections at 
        the beginning of chapter 1609 of such title is amended 
        by striking the item relating to section 16301 and 
        inserting the following new item:

``16301. Education loan repayment program: members of Selected 
          Reserve.''.

SEC. 673. ENSURING ENTRY INTO UNITED STATES AFTER TIME ABROAD FOR 
                    PERMANENT RESIDENT ALIEN MILITARY SPOUSES AND 
                    CHILDREN.

    Section 284 of the Immigration and Nationality Act (8 
U.S.C. 1354) is amended--
            (1) by striking ``Nothing'' and inserting ``(a) 
        Nothing''; and
            (2) by adding at the end the following new 
        subsection:
    ``(b) If a person lawfully admitted for permanent residence 
is the spouse or child of a member of the Armed Forces of the 
United States, is authorized to accompany the member and reside 
abroad with the member pursuant to the member's official 
orders, and is so accompanying and residing with the member (in 
marital union if a spouse), then the residence and physical 
presence of the person abroad shall not be treated as--
            ``(1) an abandonment or relinquishment of lawful 
        permanent resident status for purposes of clause (i) of 
        section 101(a)(13)(C); or
            ``(2) an absence from the United States for 
        purposes of clause (ii) of such section.''.

SEC. 674. OVERSEAS NATURALIZATION FOR MILITARY SPOUSES AND CHILDREN.

    (a) Spouses.--Section 319 of the Immigration and 
Nationality Act (8 U.S.C. 1430) is amended by adding at the end 
the following new subsection:
    ``(e)(1) In the case of a person lawfully admitted for 
permanent residence in the United States who is the spouse of a 
member of the Armed Forces of the United States, is authorized 
to accompany such member and reside abroad with the member 
pursuant to the member's official orders, and is so 
accompanying and residing with the member in marital union, 
such residence and physical presence abroad shall be treated, 
for purposes of subsection (a) and section 316(a), as residence 
and physical presence in--
            ``(A) the United States; and
            ``(B) any State or district of the Department of 
        Homeland Security in the United States.
    ``(2) Notwithstanding any other provision of law, a spouse 
described in paragraph (1) shall be eligible for naturalization 
proceedings overseas pursuant to section 1701(d) of the 
National Defense Authorization Act for Fiscal Year 2004 (Public 
Law 108-136; 8 U.S.C. 1443a).''.
    (b) Children.--Section 322 of the Immigration and 
Nationality Act (8 U.S.C. 1433) is amended by adding at the end 
the following new subsection:
    ``(d) In the case of a child of a member of the Armed 
Forces of the United States who is authorized to accompany such 
member and reside abroad with the member pursuant to the 
member's official orders, and is so accompanying and residing 
with the member--
            ``(1) any period of time during which the member of 
        the Armed Forces is residing abroad pursuant to 
        official orders shall be treated, for purposes of 
        subsection (a)(2)(A), as physical presence in the 
        United States;
            ``(2) subsection (a)(5) shall not apply; and
            ``(3) the oath of allegiance described in 
        subsection (b) may be subscribed to abroad pursuant to 
        section 1701(d) of the National Defense Authorization 
        Act for Fiscal Year 2004 (Public Law 108-136; 8 U.S.C. 
        1443a).''.
    (c) Overseas Naturalization Authority.--Section 1701(d) of 
the National Defense Authorization Act for Fiscal Year 2004 
(Public Law 108-136; 8 U.S.C. 1443a) is amended--
            (1) in the subsection heading, by inserting ``and 
        Their Spouses and Children'' after ``Forces''; and
            (2) by inserting ``, and persons made eligible for 
        naturalization by section 319(e) or 322(d) of such 
        Act,'' after ``Armed Forces''.
    (d) Effective Date.--The amendments made by this section 
shall take effect on the date of enactment of this Act and 
apply to any application for naturalization or issuance of a 
certificate of citizenship pending on or after such date.

SEC. 675. MODIFICATION OF AMOUNT OF BACK PAY FOR MEMBERS OF NAVY AND 
                    MARINE CORPS SELECTED FOR PROMOTION WHILE INTERNED 
                    AS PRISONERS OF WAR DURING WORLD WAR II TO TAKE 
                    INTO ACCOUNT CHANGES IN CONSUMER PRICE INDEX.

    (a) Modification.--Section 667(c) 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-170) is 
amended by adding at the end the following new paragraph:
    ``(3) The amount determined for a person under paragraph 
(1) shall be increased to reflect increases in cost of living 
since the basic pay referred to in paragraph (1)(B) was paid to 
or for that person, calculated on the basis of the Consumer 
Price Index (all items--United States city average) published 
monthly by the Bureau of Labor Statistics.''.
    (b) Recalculation of Previous Payments.--In the case of any 
payment of back pay made to or for a person under section 667 
of the Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 before the date of the enactment of this Act, 
the Secretary of the Navy shall--
            (1) recalculate the amount of back pay to which the 
        person is entitled by reason of the amendment made by 
        subsection (a); and
            (2) if the amount of back pay, as so recalculated, 
        exceeds the amount of back pay so paid, pay the person, 
        or the surviving spouse of the person, an amount equal 
        to the excess.

                   TITLE VII--HEALTH CARE PROVISIONS

          Subtitle A--Improvements to Military Health Benefits

Sec. 701. One-year extension of prohibition on increases in certain 
          health care costs for members of the uniformed services.
Sec. 702. Temporary prohibition on increase in copayments under retail 
          pharmacy system of pharmacy benefits program.
Sec. 703. Inclusion of TRICARE retail pharmacy program in Federal 
          procurement of pharmaceuticals.
Sec. 704. Stipend for members of reserve components for health care for 
          certain dependents.
Sec. 705. Authority for expansion of persons eligible for continued 
          health benefits coverage.
Sec. 706. Continuation of eligibility for TRICARE Standard coverage for 
          certain members of the Selected Reserve.
Sec. 707. Extension of pilot program for health care delivery.
Sec. 708. Inclusion of mental health care in definition of health care 
          and report on mental health care services.

                     Subtitle B--Studies and Reports

Sec. 711. Surveys on continued viability of TRICARE Standard and TRICARE 
          Extra.
Sec. 712. Report on training in preservation of remains under combat or 
          combat-related conditions.
Sec. 713. Report on patient satisfaction surveys.
Sec. 714. Report on medical physical examinations of members of the 
          Armed Forces before their deployment.
Sec. 715. Report and study on multiple vaccinations of members of the 
          Armed Forces.
Sec. 716. Review of gender- and ethnic group-specific mental health 
          services and treatment for members of the Armed Forces.
Sec. 717. Licensed mental health counselors and the TRICARE program.
Sec. 718. Report on funding of the Department of Defense for health 
          care.

                        Subtitle C--Other Matters

Sec. 721. Prohibition on conversion of military medical and dental 
          positions to civilian medical and dental positions.
Sec. 722. Establishment of Joint Pathology Center.

          Subtitle A--Improvements to Military Health Benefits

SEC. 701. ONE-YEAR EXTENSION OF PROHIBITION ON INCREASES IN CERTAIN 
                    HEALTH CARE COSTS FOR MEMBERS OF THE UNIFORMED 
                    SERVICES.

    (a) Charges Under Contracts for Medical Care.--Section 
1097(e) of title 10, United States Code, is amended by striking 
``September 30, 2007'' and inserting ``September 30, 2008''.
    (b) Charges for Inpatient Care.--Section 1086(b)(3) of such 
title is amended by striking ``September 30, 2007.'' and 
inserting ``September 30, 2008''.
    (c) Premiums Under TRICARE Coverage for Certain Members in 
the Selected Reserve.--Section 1076d(d)(3) of such title is 
amended by striking ``September 30, 2007'' and inserting 
``September 30, 2008''.

SEC. 702. TEMPORARY PROHIBITION ON INCREASE IN COPAYMENTS UNDER RETAIL 
                    PHARMACY SYSTEM OF PHARMACY BENEFITS PROGRAM.

    During the period beginning on October 1, 2007, and ending 
on September 30, 2008, the cost sharing requirements 
established under paragraph (6) of section 1074g(a) 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.

SEC. 703. INCLUSION OF TRICARE RETAIL PHARMACY PROGRAM IN FEDERAL 
                    PROCUREMENT OF PHARMACEUTICALS.

    (a) In General.--Section 1074g of title 10, United States 
Code, is amended--
            (1) by redesignating subsections (f) and (g) as 
        subsections (g) and (h), respectively; and
            (2) by inserting after subsection (e) the following 
        new subsection (f):
    ``(f) Procurement of Pharmaceuticals by TRICARE Retail 
Pharmacy Program.--With respect to any prescription filled on 
or after the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 2008, the TRICARE retail 
pharmacy program shall be treated as an element of the 
Department of Defense for purposes of the procurement of drugs 
by Federal agencies under section 8126 of title 38 to the 
extent necessary to ensure that pharmaceuticals paid for by the 
Department of Defense that are provided by pharmacies under the 
program to eligible covered beneficiaries under this section 
are subject to the pricing standards in such section 8126.''.
    (b) Regulations.--The Secretary of Defense shall, after 
consultation with the other administering Secretaries under 
chapter 55 of title 10, United States Code, modify the 
regulations under subsection (h) of section 1074g of title 10, 
United States Code (as redesignated by subsection (a)(1) of 
this section), to implement the requirements of subsection (f) 
of section 1074g of title 10, United States Code (as amended by 
subsection (a)(2) of this section). The Secretary shall so 
modify such regulations not later than December 31, 2007.

SEC. 704. STIPEND FOR MEMBERS OF RESERVE COMPONENTS FOR HEALTH CARE FOR 
                    CERTAIN DEPENDENTS.

    The Secretary of Defense may, pursuant to regulations 
prescribed by the Secretary, pay a stipend to a member of a 
reserve component of the Armed Forces who is called or ordered 
to active duty for a period of more than 30 days for purposes 
of maintaining civilian health care coverage for a dependant 
whom the Secretary determines to possess a special health care 
need that would be best met by remaining in the member's 
civilian health plan. In making such determination, the 
Secretary shall consider whether--
            (1) the dependent of the member was receiving 
        treatment for the special health care need before the 
        call or order to active duty of the member; and
            (2) the call or order to active duty would result 
        in an interruption in treatment or a change in health 
        care provider for such treatment.

SEC. 705. AUTHORITY FOR EXPANSION OF PERSONS ELIGIBLE FOR CONTINUED 
                    HEALTH BENEFITS COVERAGE.

    (a) Authority To Specify Additional Eligible Persons.--
Subsection (b) of section 1078a of title 10, United States 
Code, is amended by adding at the end the following new 
paragraph:
            ``(4) Any other person specified in regulations 
        prescribed by the Secretary of Defense for purposes of 
        this paragraph who loses entitlement to health care 
        services under this chapter or section 1145 of this 
        title, subject to such terms and conditions as the 
        Secretary shall prescribe in the regulations.''.
    (b) Election of Coverage.--Subsection (d) of such section 
is amended by adding at the end the following new paragraph:
            ``(4) In the case of a person described in 
        subsection (b)(4), by such date as the Secretary shall 
        prescribe in the regulations required for purposes of 
        that subsection.''.
    (c) Period of Coverage.--Subsection (g)(1) of such section 
is amended--
            (1) in subparagraph (B), by striking ``and'' at the 
        end;
            (2) in subparagraph (C), by striking the period at 
        the end and inserting ``; and''; and
            (3) by adding at the end the following new 
        subparagraph:
            ``(D) in the case of a person described in 
        subsection (b)(4), the date that is 36 months after the 
        date on which the person loses entitlement to health 
        care services as described in that subsection.''.

SEC. 706. CONTINUATION OF ELIGIBILITY FOR TRICARE STANDARD COVERAGE FOR 
                    CERTAIN MEMBERS OF THE SELECTED RESERVE.

    (a) In General.--Section 706(f) of the John Warner National 
Defense Authorization Act for Fiscal Year 2007 (Public Law 109-
364; 120 Stat. 2282; 10 U.S.C. 1076d note) is amended--
            (1) by striking ``Enrollments'' and inserting ``(1) 
        Except as provided in paragraph (2), enrollments''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) The enrollment of a member in TRICARE Standard that 
is in effect on the day before health care under TRICARE 
Standard is provided pursuant to the effective date in 
subsection (g) shall not be terminated by operation of the 
exclusion of eligibility under subsection (a)(2) of such 
section 1076d, as so amended, for the duration of the 
eligibility of the member under TRICARE Standard as in effect 
on October 16, 2006.''.
    (b) Effective Date.--The amendments made by subsection (a) 
shall take effect on October 1, 2007.

SEC. 707. EXTENSION OF PILOT PROGRAM FOR HEALTH CARE DELIVERY.

    (a) Extension of Duration of Pilot Program.--Section 721(e) 
of the Ronald W. Reagan National Defense Authorization Act for 
Fiscal Year 2005 (Public Law 108-375; 118 Stat. 1988; 10 U.S.C. 
1092 note) is amended by striking ``and 2007'' and inserting 
``, 2007, 2008, 2009, and 2010''.
    (b) Extension of Report Deadline.--Section 721(f) of such 
Act is amended by striking ``July 1, 2007'' and inserting 
``July 1, 2010''.
    (c) Revision in Selection Criteria.--Section 721(d)(2) of 
such Act is amended by striking ``expected to increase over the 
next five years'' and inserting ``has increased over the five 
years preceding 2008''.
    (d) Addition to Requirements of Pilot Program.--Section 
721(b) of such Act is amended--
            (1) by striking ``and'' at the end of paragraph 
        (3);
            (2) by striking the period and inserting ``; and'' 
        at the end of paragraph (4); and
            (3) by adding at the end the following:
            ``(5) collaborate with State and local authorities 
        to create an arrangement to share and exchange, between 
        the Department of Defense and non-military health care 
        systems, personal health information and data of 
        military personnel and their families.''.

SEC. 708. INCLUSION OF MENTAL HEALTH CARE IN DEFINITION OF HEALTH CARE 
                    AND REPORT ON MENTAL HEALTH CARE SERVICES.

    (a) Inclusion of Mental Health Care in Definition of Health 
Care.--Section 1072 of title 10, United States Code, is amended 
by adding at the end the following new paragraph:
            ``(10) The term `health care' includes mental 
        health care.''.
    (b) Report on Access to Mental Health Care Services.--Not 
later than one year after the date of the enactment of this 
Act, the Secretary of Defense shall submit to the Committees on 
Armed Services of the Senate and the House of Representatives a 
report on the adequacy of access to mental health services 
under the TRICARE program, including in the geographic areas 
where surveys on the continued viability of TRICARE Standard 
and TRICARE Extra are conducted under section 711 of this Act.

                    Subtitle B--Studies and Reports

SEC. 711. SURVEYS ON CONTINUED VIABILITY OF TRICARE STANDARD AND 
                    TRICARE EXTRA.

    (a) Requirement for Surveys.--
            (1) In general.--The Secretary of Defense shall 
        conduct surveys of health care providers and 
        beneficiaries who use TRICARE in the United States to 
        determine, utilizing a reconciliation of the responses 
        of providers and beneficiaries to such surveys, each of 
        the following:
                    (A) How many health care providers in 
                TRICARE Prime service areas selected under 
                paragraph (3)(A) are accepting new patients 
                under each of TRICARE Standard and TRICARE 
                Extra.
                    (B) How many health care providers in 
                geographic areas in which TRICARE Prime is not 
                offered are accepting patients under each of 
                TRICARE Standard and TRICARE Extra.
                    (C) The availability of mental health care 
                providers in TRICARE Prime service areas 
                selected under paragraph (3)(C) and in 
                geographic areas in which TRICARE Prime is not 
                offered.
            (2) Benchmarks.--The Secretary shall establish for 
        purposes of the surveys required by paragraph (1) 
        benchmarks for primary care and specialty care 
        providers, including mental health care providers, to 
        be utilized to determine the adequacy of the 
        availability of health care providers to beneficiaries 
        eligible for TRICARE.
            (3) Scope of surveys.--The Secretary shall carry 
        out the surveys required by paragraph (1) as follows:
                    (A) In the case of the surveys required by 
                subparagraph (A) of that paragraph, in at least 
                20 TRICARE Prime service areas in the United 
                States in each of fiscal years 2008 through 
                2011.
                    (B) In the case of the surveys required by 
                subparagraph (B) of that paragraph, in 20 
                geographic areas in which TRICARE Prime is not 
                offered and in which significant numbers of 
                beneficiaries who are members of the Selected 
                Reserve reside.
                    (C) In the case of the surveys required by 
                subparagraph (C) of that paragraph, in at least 
                40 geographic areas.
            (4) Priority for surveys.--In prioritizing the 
        areas which are to be surveyed under paragraph (1), the 
        Secretary shall--
                    (A) consult with representatives of TRICARE 
                beneficiaries and health care and mental health 
                care providers to identify locations where 
                TRICARE Standard beneficiaries are experiencing 
                significant levels of access-to-care problems 
                under TRICARE Standard or TRICARE Extra;
                    (B) give a high priority to surveying 
                health care and mental health care providers in 
                such areas; and
                    (C) give a high priority to surveying 
                beneficiaries and providers located in 
                geographic areas with high concentrations of 
                members of the Selected Reserve.
            (5) Information from providers.--The surveys 
        required by paragraph (1) shall include questions 
        seeking to determine from health care and mental health 
        care providers the following:
                    (A) Whether the provider is aware of the 
                TRICARE program.
                    (B) What percentage of the provider's 
                current patient population uses any form of 
                TRICARE.
                    (C) Whether the provider accepts patients 
                for whom payment is made under the medicare 
                program for health care and mental health care 
                services.
                    (D) If the provider accepts patients 
                referred to in subparagraph (C), whether the 
                provider would accept additional such patients 
                who are not in the provider's current patient 
                population.
            (6) Information from beneficiaries.--The surveys 
        required by paragraph (1) shall include questions 
        seeking information to determine from TRICARE 
        beneficiaries whether they have difficulties in finding 
        health care and mental health care providers willing to 
        provide services under TRICARE Standard or TRICARE 
        Extra.
    (b) GAO Review.--
            (1) Ongoing review.--The Comptroller General shall, 
        on an ongoing basis, review--
                    (A) the processes, procedures, and analysis 
                used by the Department of Defense to determine 
                the adequacy of the number of health care and 
                mental health care providers--
                            (i) that currently accept TRICARE 
                        Standard or TRICARE Extra beneficiaries 
                        as patients under TRICARE Standard in 
                        each TRICARE area as of the date of 
                        completion of the review; and
                            (ii) that would accept TRICARE 
                        Standard or TRICARE Extra beneficiaries 
                        as new patients under TRICARE Standard 
                        or TRICARE Extra, as applicable, within 
                        a reasonable time after the date of 
                        completion of the review; and
                    (B) the actions taken by the Department of 
                Defense to ensure ready access of TRICARE 
                Standard beneficiaries to health care and 
                mental health care under TRICARE Standard in 
                each TRICARE area, including any pending or 
                resolved requests for waiver of payment limits 
                in order to improve access to health care or 
                mental health care in a specific geographic 
                area.
            (2) Reports.--The Comptroller General shall submit 
        to the Committees on Armed Services of the Senate and 
        the House of Representatives on a bi-annual basis a 
        report on the results of the review under paragraph 
        (1). Each report shall include the following:
                    (A) An analysis of the adequacy of the 
                surveys under subsection (a).
                    (B) An identification of any impediments to 
                achieving adequacy of availability of health 
                care and mental health care under TRICARE 
                Standard or TRICARE Extra.
                    (C) An assessment of the adequacy of 
                Department of Defense education programs to 
                inform health care and mental health care 
                providers about TRICARE Standard and TRICARE 
                Extra.
                    (D) An assessment of the adequacy of 
                Department of Defense initiatives to encourage 
                health care and mental health care providers to 
                accept patients under TRICARE Standard and 
                TRICARE Extra.
                    (E) An assessment of the adequacy of 
                information available to TRICARE Standard 
                beneficiaries to facilitate access by such 
                beneficiaries to health care and mental health 
                care under TRICARE Standard and TRICARE Extra.
                    (F) An assessment of any need for 
                adjustment of health care and mental health 
                care provider payment rates to attract 
                participation in TRICARE Standard by 
                appropriate numbers of health care and mental 
                health care providers.
                    (G) An assessment of the adequacy of 
                Department of Defense programs to inform 
                members of the Selected Reserve about the 
                TRICARE Reserve Select program.
                    (H) An assessment of the ability of TRICARE 
                Reserve Select beneficiaries to receive care in 
                their geographic area.
    (c) Effective Date.--This section shall take effect on 
October 1, 2007.
    (d) Repeal of Superseded Requirements and Authority.--
Section 723 of the National Defense Authorization Act for 
Fiscal Year 2004 (10 U.S.C. 1073 note) is repealed, effective 
as of October 1, 2007.
    (e) Definitions.--In this section:
            (1) The term ``TRICARE Extra'' means the option of 
        the TRICARE program under which TRICARE Standard 
        beneficiaries may obtain discounts on cost-sharing as a 
        result of using TRICARE network providers.
            (2) The term ``TRICARE Prime'' means the managed 
        care option of the TRICARE program.
            (3) The term ``TRICARE Prime service area'' means a 
        geographic area designated by the Department of Defense 
        in which managed care support contractors develop a 
        managed care network under TRICARE Prime.
            (4) The term ``TRICARE Standard'' means the option 
        of the TRICARE program that is also known as the 
        Civilian Health and Medical Program of the Uniformed 
        Services, as defined in section 1072(4) of title 10, 
        United States Code.
            (5) The term ``TRICARE Reserve Select'' means the 
        option of the TRICARE program that allows members of 
        the Selected Reserve to enroll in TRICARE Standard, 
        pursuant to section 1076d of title 10, United States 
        Code.
            (6) The term ``member of the Selected Reserve'' 
        means a member of the Selected Reserve of the Ready 
        Reserve of a reserve component of the Armed Forces.
            (7) The term ``United States'' means the United 
        States (as defined in section 101(a) of title 10, 
        United States Code), its possessions (as defined in 
        such section), and the Commonwealth of Puerto Rico.

SEC. 712. REPORT ON TRAINING IN PRESERVATION OF REMAINS UNDER COMBAT OR 
                    COMBAT-RELATED CONDITIONS.

    (a) Report Required.--The Secretary of Defense shall submit 
to the Committees on Armed Services of the Senate and the House 
of Representatives a report on the requirements of section 567 
of the John Warner National Defense Authorization Act for 
Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2224; 10 U.S.C. 
1481 note).
    (b) Matters Covered.--The report shall include a detailed 
description of the implementation of such section, including--
            (1) where the training program is taking place;
            (2) who is providing the training;
            (3) the number of each type of military health care 
        professional trained to date; and
            (4) what the training covers.
    (c) Deadline.--The report required by this section shall be 
submitted not later than 180 days after the date of the 
enactment of this Act.

SEC. 713. REPORT ON PATIENT SATISFACTION SURVEYS.

    (a) Report Required.--Not later than March 1, 2008, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the ongoing patient satisfaction surveys 
taking place in Department of Defense inpatient and outpatient 
settings at military treatment facilities.
    (b) Content.--The report required under subsection (a) 
shall include the following:
            (1) The types of survey questions asked.
            (2) How frequently the surveying is conducted.
            (3) How often the results are analyzed and reported 
        back to the treatment facilities.
            (4) To whom survey feedback is made available.
            (5) How best practices are incorporated for quality 
        improvement.
            (6) An analysis of the effect of inpatient and 
        outpatient surveys on quality improvement and a 
        comparison of patient satisfaction survey programs with 
        patient satisfaction survey programs used by other 
        public and private health care systems and 
        organizations.
    (c) Use of Report Information.--The Secretary shall use 
information in the report as the basis for a plan for 
improvements in patient satisfaction surveys used to assess 
health care at military treatment facilities in order to ensure 
the provision of high quality health care and hospital services 
in such facilities.

SEC. 714. REPORT ON MEDICAL PHYSICAL EXAMINATIONS OF MEMBERS OF THE 
                    ARMED FORCES BEFORE THEIR DEPLOYMENT.

    Not later than April 1, 2008, the Secretary of Defense 
shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives a report setting forth the 
following:
            (1) A comparison of the policies of the military 
        departments concerning medical physical examinations of 
        members of the Armed Forces before their deployment, 
        including an identification of instances in which a 
        member (including a member of a reserve component) may 
        be required to undergo multiple physical examinations, 
        from the time of notification of an upcoming deployment 
        through the period of preparation for deployment.
            (2) An assessment of the current policies related 
        to, as well as the feasibility of, each of the 
        following:
                    (A) A single predeployment physical 
                examination for members of the Armed Forces 
                before their deployment.
                    (B) A single system for tracking 
                electronically the results of examinations 
                under subparagraph (A) that can be shared among 
                the military departments and thereby eliminate 
                redundancy of medical physical examinations for 
                members of the Armed Forces before their 
                deployment.

SEC. 715. REPORT AND STUDY ON MULTIPLE VACCINATIONS OF MEMBERS OF THE 
                    ARMED FORCES.

    (a) Report Required.--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 the policies of the 
Department of Defense for administering and evaluating the 
vaccination of members of the Armed Forces.
    (b) Elements.--The report required by subsection (a) shall 
include the following:
            (1) An assessment of the Department's policies 
        governing the administration of multiple vaccinations 
        in a 24-hour period, including the procedures providing 
        for a full review of an individual's medical history 
        prior to the administration of multiple vaccinations, 
        and whether such policies and procedures differ for 
        members of the Armed Forces on active duty and members 
        of reserve components.
            (2) An assessment of how the Department's policies 
        on multiple vaccinations in a 24-hour period conform to 
        current regulations of the Food and Drug Administration 
        and research performed or being performed by the 
        Centers for Disease Control, other non-military Federal 
        agencies, and non-federal institutions on multiple 
        vaccinations in a 24-hour period.
            (3) An assessment of the Department's procedures 
        for initiating investigations of deaths of members of 
        the Armed Forces in which vaccinations may have played 
        a role, including whether such investigations can be 
        requested by family members of the deceased 
        individuals.
            (4) The number of deaths of members of the Armed 
        Forces since May 18, 1998, that the Department has 
        investigated for the potential role of vaccine 
        administration, including both the number of deaths 
        investigated that was alleged to have involved more 
        than one vaccine administered in a given 24-hour period 
        and the number of deaths investigated that was 
        determined to have involved more than one vaccine 
        administered in a given 24-hour period.
            (5) An assessment of the procedures for providing 
        the Adjutants General of the various States and 
        territories with up-to-date information on the 
        effectiveness and potential allergic reactions and side 
        effects of vaccines required to be taken by National 
        Guard members.
            (6) An assessment of whether procedures are in 
        place to provide that the Adjutants General of the 
        various States and territories retain updated medical 
        records of each National Guard member called up for 
        active duty.

SEC. 716. REVIEW OF GENDER- AND ETHNIC GROUP-SPECIFIC MENTAL HEALTH 
                    SERVICES AND TREATMENT FOR MEMBERS OF THE ARMED 
                    FORCES.

    (a) Comprehensive Review.--The Secretary of Defense shall 
conduct a comprehensive review of--
            (1) the need for gender- and ethnic group-specific 
        mental health treatment and services for members of the 
        Armed Forces; and
            (2) the efficacy and adequacy of existing gender- 
        and ethnic group-specific mental health treatment 
        programs and services for members of the Armed Forces, 
        to include availability of and access to such programs.
    (b) Elements.--The review required by subsection (a) shall 
include, but not be limited to, an assessment of the following:
            (1) The need for gender- and ethnic group-specific 
        mental health outreach, prevention, and treatment 
        services for members of the Armed Forces.
            (2) The access to and efficacy of existing gender- 
        and ethnic group-specific mental health outreach, 
        prevention, and treatment services and programs 
        (including substance abuse programs).
            (3) The availability of gender- and ethnic group-
        specific services and treatment for members of the 
        Armed Forces who experienced sexual assault or abuse.
            (4) The access to and need for treatment facilities 
        focusing on the gender- and ethnic group-specific 
        mental health care needs of members of the Armed 
        Forces.
            (5) The need for further clinical research on the 
        gender- and ethnic group-specific needs of members of 
        the Armed Forces who served in a combat zone.
    (c) Report.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
the congressional defense committees a report on the review 
required by subsection (a).

SEC. 717. LICENSED MENTAL HEALTH COUNSELORS AND THE TRICARE PROGRAM.

    (a) Regulations.--The Secretary of Defense shall prescribe 
regulations to establish criteria that licensed or certified 
mental health counselors shall meet in order to be able to 
independently provide care to TRICARE beneficiaries and receive 
payment under the TRICARE program for such services. The 
criteria shall include requirements for education level, 
licensure, certification, and clinical experience as considered 
appropriate by the Secretary.
    (b) Study Required.--The Secretary of Defense shall enter 
into a contract with the Institute of Medicine of the National 
Academy of Sciences, or another similarly qualified independent 
academic medical organization, for the purpose of--
            (1) conducting an independent study of the 
        credentials, preparation, and training of individuals 
        practicing as licensed mental health counselors; and
            (2) making recommendations for permitting licensed 
        mental health counselors to practice independently 
        under the TRICARE program.
    (c) Elements of Study.--
            (1) Educational requirements.--The study required 
        by subsection (b) shall provide for an assessment of 
        the educational requirements and curricula relevant to 
        mental health practice for licensed mental health 
        counselors, including types of degrees recognized, 
        certification standards for graduate programs for such 
        profession, and recognition of undergraduate coursework 
        for completion of graduate degree requirements.
            (2) Licensing requirements.--The study required by 
        subsection (b) shall provide for an assessment of State 
        licensing requirements for licensed mental health 
        counselors, including for each level of licensure if a 
        State issues more than one type of license for the 
        profession. The assessment shall examine requirements 
        in the areas of education, training, examination, 
        continuing education, and ethical standards, and shall 
        include an evaluation of the extent to which States 
        authorize members of the licensed mental health 
        counselor profession to diagnose and treat mental 
        illnesses.
            (3) Clinical experience requirements.--The study 
        required by subsection (b) shall provide for an 
        analysis of the requirements for clinical experience 
        for a licensed mental health counselor to be recognized 
        under regulations for the TRICARE program, and 
        recommendations, if any, for standardization or 
        adjustment of such requirements.
            (4) Independent practice under other federal 
        programs.--The study required by subsection (b) shall 
        provide for an assessment of the extent to which 
        licensed mental health counselors are authorized to 
        practice independently under other Federal programs 
        (such as the Medicare program, the Department of 
        Veterans Affairs, the Indian Health Service, and Head 
        Start), and a review of the relationship, if any, 
        between recognition of mental health professions under 
        the Medicare program and independent practice authority 
        for such profession under the TRICARE program.
            (5) Independent practice under fehbp.--The study 
        required by subsection (b) shall provide for an 
        assessment of the extent to which licensed mental 
        health counselors are authorized to practice 
        independently under the Federal Employee Health 
        Benefits Program and private insurance plans. The 
        assessment shall identify the States having laws 
        requiring private insurers to cover, or offer coverage 
        of, the services of members of licensed mental health 
        counselors and shall identify the conditions, if any, 
        that are placed on coverage of practitioners under the 
        profession by insurance plans and how frequently these 
        types of conditions are used by insurers.
            (6) Historical review of regulations.--The study 
        required by subsection (b) shall provide for a review 
        of the history of regulations prescribed by the 
        Department of Defense regarding which members of the 
        mental health profession are recognized as providers 
        under the TRICARE program as independent practitioners, 
        and an examination of the recognition by the Department 
        of third-party certification for members of such 
        profession.
            (7) Clinical capabilities studies.--The study 
        required by subsection (b) shall include a review of 
        outcome studies and of the literature regarding the 
        comparative quality and effectiveness of care provided 
        by licensed mental health counselors and provide an 
        independent review of the findings.
    (d) Recommendations for TRICARE Independent Practice 
Authority.--The recommendations provided under subsection 
(b)(2) shall include recommendations regarding modifications of 
current policy for the TRICARE program with respect to allowing 
licensed mental health counselors to practice independently 
under the TRICARE program.
    (e) Report.--Not later than March 1, 2009, the Secretary of 
Defense shall submit to the Committees on Armed Services of the 
Senate and the House of Representatives a report on the review 
required by subsection (b).

SEC. 718. REPORT ON FUNDING OF THE DEPARTMENT OF DEFENSE FOR HEALTH 
                    CARE.

    (a) Report.--If the President submits to Congress the 
budget for a fiscal year under section 1105 of title 31, United 
States Code, and the aggregate amount included in that budget 
for the Department of Defense for health care for such fiscal 
year is less than the aggregate amount provided by Congress for 
the Department for health care for the preceding fiscal year, 
and, in the case of the Department, the total allocation from 
the Defense Health Program to any military department is less 
than the total such allocation in the preceding fiscal year, 
the President shall submit to Congress a report on--
            (1) the reasons for the determination that 
        inclusion of a lesser aggregate amount or allocation to 
        any military department is in the national interest; 
        and
            (2) the anticipated effects of the inclusion of 
        such lesser aggregate amount or allocation to any 
        military department on the access to and delivery of 
        medical and support services to members of the Armed 
        Forces and their family members.
    (b) Termination.--The section shall not be in effect after 
December 31, 2017.

                       Subtitle C--Other Matters

SEC. 721. PROHIBITION ON CONVERSION OF MILITARY MEDICAL AND DENTAL 
                    POSITIONS TO CIVILIAN MEDICAL AND DENTAL POSITIONS.

    (a) Prohibition.--The Secretary of a military department 
may not convert any military medical or dental position to a 
civilian medical or dental position during the period beginning 
on October 1, 2007, and ending on September 30, 2012.
    (b) Restoration of Certain Positions to Military 
Positions.--In the case of any military medical or dental 
position that is converted to a civilian medical or dental 
position during the period beginning on October 1, 2004, and 
ending on September 30, 2008, if the position is not filled by 
a civilian by September 30, 2008, the Secretary of the military 
department concerned shall restore the position to a military 
medical or dental position that can be filled only by a member 
of the Armed Forces who is a health professional.
    (c) Report.--
            (1) Requirement.--The Secretary of Defense shall 
        submit to the congressional defense committees a report 
        on conversions made during fiscal year 2007 not later 
        than 180 days after the enactment of this Act.
            (2) Matters covered.--The report shall include the 
        following:
                    (A) The number of military medical or 
                dental positions, by grade or band and 
                specialty, converted to civilian medical or 
                dental positions.
                    (B) The results of a market survey in each 
                affected area of the availability of civilian 
                medical and dental care providers in such area 
                in order to determine whether there were 
                civilian medical and dental care providers 
                available in such area adequate to fill the 
                civilian positions created by the conversion of 
                military medical and dental positions to 
                civilian positions in such area.
                    (C) An analysis, by affected area, showing 
                the extent to which access to health care and 
                cost of health care was affected in both the 
                direct care and purchased care systems, 
                including an assessment of the effect of any 
                increased shifts in patient load from the 
                direct care to the purchased care system, or 
                any delays in receipt of care in either the 
                direct or purchased care system because of the 
                conversions.
                    (D) The extent to which military medical 
                and dental positions converted to civilian 
                medical or dental positions affected recruiting 
                and retention of uniformed medical and dental 
                personnel.
                    (E) A comparison of the full costs for the 
                military medical and dental positions converted 
                with the full costs for civilian medical and 
                dental positions, including expenses such as 
                recruiting, salary, benefits, training, and any 
                other costs the Department identifies.
                    (F) An assessment showing that the military 
                medical or dental positions converted were in 
                excess of the military medical and dental 
                positions needed to meet medical and dental 
                readiness requirements of the uniformed 
                services, as determined jointly by all the 
                uniformed services.
    (d) Definitions.--In this section:
            (1) The term ``military medical or dental 
        position'' means a position for the performance of 
        health care functions within the Armed Forces held by a 
        member of the Armed Forces.
            (2) The term ``civilian medical or dental 
        position'' means a position for the performance of 
        health care functions within the Department of Defense 
        held by an employee of the Department or of a 
        contractor of the Department.
            (3) The term ``uniformed services'' has the meaning 
        given that term in section 1072(1) of title 10, United 
        States Code.
            (4) The term ``conversion'', with respect to a 
        military medical or dental position, means a change of 
        the position to a civilian medical or dental position, 
        effective as of the date of the manning authorization 
        document of the military department making the change 
        (through a change in designation from military to 
        civilian in the document, the elimination of the 
        listing of the position as a military position in the 
        document, or through any other means indicating the 
        change in the document or otherwise).
    (e) Repeal.--Section 742 of the John Warner National 
Defense Authorization Act for Fiscal Year 2007 (Public Law 109-
364; 120 Stat. 2306) is repealed.

SEC. 722. ESTABLISHMENT OF JOINT PATHOLOGY CENTER.

    (a) Findings.--Congress makes the following findings:
            (1) The Secretary of Defense proposed to 
        disestablish all elements of the Armed Forces Institute 
        of Pathology, except the National Medical Museum and 
        the Tissue Repository, as part of the recommendations 
        of the Secretary for the closure of Walter Reed Army 
        Medical Center in the 2005 round of defense base 
        closure and realignment.
            (2) The Defense Base Closure and Realignment 
        Commission altered, but did not reject, the proposal of 
        the Secretary of Defense to disestablish the Armed 
        Forces Institute of Pathology.
            (3) The Commission's recommendation that the Armed 
        Forces Institute of Pathology's ``capabilities not 
        specified in this recommendation will be absorbed into 
        other DOD, Federal, or civilian facilities'' provides 
        the flexibility to retain a Joint Pathology Center as a 
        Department of Defense or Federal entity.
    (b) Sense of Congress.--It is the sense of Congress that 
the Armed Forces Institute of Pathology has provided important 
medical benefits to the Armed Forces and to the United States 
and that the Federal Government should retain a Joint Pathology 
Center.
    (c) Establishment.--
            (1) Establishment required.--The President shall 
        establish and maintain a Joint Pathology Center that 
        shall function as the reference center in pathology for 
        the Federal Government.
            (2) Establishment within dod.--Except as provided 
        in paragraph (3), the Joint Pathology Center shall be 
        established in the Department of Defense, consistent 
        with the final recommendations of the 2005 Defense Base 
        Closure and Realignment Commission, as approved by the 
        President.
            (3) Establishment in another department.--If the 
        President makes a determination, within 180 days after 
        the date of the enactment of this Act, that the Joint 
        Pathology Center cannot be established in the 
        Department of Defense, the Joint Pathology Center shall 
        be established as an element of a Federal agency other 
        than the Department of Defense. The President shall 
        incorporate the selection of such agency into the 
        determination made under this paragraph.
    (d) Services.--The Joint Pathology Center shall provide, at 
a minimum, the following:
            (1) Diagnostic pathology consultation services in 
        medicine, dentistry, and veterinary sciences.
            (2) Pathology education, to include graduate 
        medical education, including residency and fellowship 
        programs, and continuing medical education.
            (3) Diagnostic pathology research.
            (4) Maintenance and continued modernization of the 
        Tissue Repository and, as appropriate, utilization of 
        the Repository in conducting the activities described 
        in paragraphs (1) through (3).

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

Sec. 800. Short title.

              Subtitle A--Acquisition Policy and Management

Sec. 801. Internal controls for procurements on behalf of the Department 
          of Defense by certain non-Defense agencies.
Sec. 802. Lead systems integrators.
Sec. 803.  Reinvestment in domestic sources of strategic materials.
Sec. 804. Clarification of the protection of strategic materials 
          critical to national security.
Sec. 805. Procurement of commercial services.
Sec. 806. Specification of amounts requested for procurement of contract 
          services.
Sec. 807. Inventories and reviews of contracts for services.
Sec. 808. Independent management reviews of contracts for services.
Sec. 809.  Implementation and enforcement of requirements applicable to 
          undefinitized contractual actions.
Sec. 810. Clarification of limited acquisition authority for Special 
          Operations Command.

  Subtitle B--Provisions Relating to Major Defense Acquisition Programs

Sec. 811. Requirements applicable to multiyear contracts for the 
          procurement of major systems of the Department of Defense.
Sec. 812. Changes to Milestone B certifications.
Sec. 813. Comptroller General report on Department of Defense 
          organization and structure for major defense acquisition 
          programs.
Sec. 814.  Clarification of submission of cost or pricing data on 
          noncommercial modifications of commercial items.
Sec. 815. Clarification of rules regarding the procurement of commercial 
          items.
Sec. 816.  Review of systemic deficiencies on major defense acquisition 
          programs.
Sec. 817.  Investment strategy for major defense acquisition programs.
Sec. 818. Report on implementation of recommendations on total ownership 
          cost for major weapon systems.

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

Sec. 821. Plan for restricting Government-unique contract clauses on 
          commercial contracts.
Sec. 822. Extension of authority for use of simplified acquisition 
          procedures for certain commercial items.
Sec. 823. Five-year extension of authority to carry out certain 
          prototype projects.
Sec. 824. Exemption of Special Operations Command from certain 
          requirements for certain contracts relating to vessels, 
          aircraft, and combat vehicles.
Sec. 825. Provision of authority to maintain equipment to unified 
          combatant command for joint warfighting.
Sec. 826. Market research.
Sec. 827. Modification of competition requirements for purchases from 
          Federal Prison Industries.
Sec. 828. Multiyear contract authority for electricity from renewable 
          energy sources.
Sec. 829. Procurement of fire resistant rayon fiber for the production 
          of uniforms from foreign sources.
Sec. 830. Comptroller General review of noncompetitive awards of 
          congressional and executive branch interest items.

                Subtitle D--Accountability in Contracting

Sec. 841. Commission on Wartime Contracting in Iraq and Afghanistan.
Sec. 842. Investigation of waste, fraud, and abuse in wartime contracts 
          and contracting processes in Iraq and Afghanistan.
Sec. 843. Enhanced competition requirements for task and delivery order 
          contracts.
Sec. 844. Public disclosure of justification and approval documents for 
          noncompetitive contracts.
Sec. 845. Disclosure of government contractor audit findings.
Sec. 846. Protection for contractor employees from reprisal for 
          disclosure of certain information.
Sec. 847.  Requirements for senior Department of Defense officials 
          seeking employment with defense contractors.
Sec. 848. Report on contractor ethics programs of Major Defense 
          contractors.
Sec. 849. Contingency contracting training for personnel outside the 
          acquisition workforce and evaluations of Army Commission 
          recommendations.

              Subtitle E--Acquisition Workforce Provisions

Sec. 851. Requirement for section on defense acquisition workforce in 
          strategic human capital plan.
Sec. 852. Department of Defense Acquisition Workforce Development Fund.
Sec. 853. Extension of authority to fill shortage category positions for 
          certain Federal acquisition positions.
Sec. 854. Repeal of sunset of acquisition workforce training fund.
Sec. 855. Federal acquisition workforce improvements.

              Subtitle F--Contracts in Iraq and Afghanistan

Sec. 861. Memorandum of understanding on matters relating to 
          contracting.
Sec. 862. Contractors performing private security functions in areas of 
          combat operations.
Sec. 863. Comptroller General reviews and reports on contracting in Iraq 
          and Afghanistan.
Sec. 864. Definitions and other general provisions.

              Subtitle G--Defense Materiel Readiness Board

Sec. 871. Establishment of Defense Materiel Readiness Board.
Sec. 872. Critical materiel readiness shortfalls.

                        Subtitle H--Other Matters

Sec. 881. Clearinghouse for rapid identification and dissemination of 
          commercial information technologies.
Sec. 882. Authority to license certain military designations and 
          likenesses of weapons systems to toy and hobby manufacturers.
Sec. 883. Modifications to limitation on contracts to acquire military 
          flight simulator.
Sec. 884. Requirements relating to waivers of certain domestic source 
          limitations relating to specialty metals.
Sec. 885. Telephone services for military personnel serving in combat 
          zones.
Sec. 886. Enhanced authority to acquire products and services produced 
          in Iraq and Afghanistan.
Sec. 887. Defense Science Board review of Department of Defense policies 
          and procedures for the acquisition of information technology.
Sec. 888. Green procurement policy.
Sec. 889. Comptroller General review of use of authority under the 
          Defense Production Act of 1950.
Sec. 890. Prevention of export control violations.
Sec. 891. Procurement goal for Native Hawaiian-serving institutions and 
          Alaska Native-serving institutions.
Sec. 892. Competition for procurement of small arms supplied to Iraq and 
          Afghanistan.

SEC. 800. SHORT TITLE.

    This title may be cited as the ``Acquisition Improvement 
and Accountability Act of 2007''.

             Subtitle A--Acquisition Policy and Management

SEC. 801. INTERNAL CONTROLS FOR PROCUREMENTS ON BEHALF OF THE 
                    DEPARTMENT OF DEFENSE BY CERTAIN NON-DEFENSE 
                    AGENCIES.

    (a) Inspectors General Reviews and Determinations.--
            (1) In general.--For each covered non-defense 
        agency, the Inspector General of the Department of 
        Defense and the Inspector General of such covered non-
        defense agency shall, not later than the date specified 
        in paragraph (2), jointly--
                    (A) review--
                            (i) the procurement policies, 
                        procedures, and internal controls of 
                        such covered non-defense agency that 
                        are applicable to the procurement of 
                        property and services on behalf of the 
                        Department by such covered non-defense 
                        agency; and
                            (ii) the administration of such 
                        policies, procedures, and internal 
                        controls; and
                    (B) determine in writing whether such 
                covered non-defense agency is or is not 
                compliant with defense procurement 
                requirements.
            (2) Deadline for reviews and determinations.--The 
        reviews and determinations required by paragraph (1) 
        shall take place as follows:
                    (A) In the case of the General Services 
                Administration, by not later than March 15, 
                2010.
                    (B) In the case of each of the Department 
                of the Treasury, the Department of the 
                Interior, and the National Aeronautics and 
                Space Administration, by not later than March 
                15, 2011.
                    (C) In the case of each of the Department 
                of Veterans Affairs and the National Institutes 
                of Health, by not later than March 15, 2012.
            (3) Separate reviews and determinations.--The 
        Inspector General of the Department of Defense and the 
        Inspector General of a covered non-defense agency may 
        by joint agreement conduct separate reviews of the 
        procurement of property and services on behalf of the 
        Department of Defense that are conducted by separate 
        business units, or under separate government-wide 
        acquisition contracts, of the covered non-defense 
        agency. If such separate reviews are conducted, the 
        Inspectors General shall make a separate determination 
        under paragraph (1)(B) with respect to each such 
        separate review.
            (4) Memoranda of understanding for reviews and 
        determinations.--Not later than one year before a 
        review and determination is required under this 
        subsection with respect to a covered non-defense 
        agency, the Inspector General of the Department of 
        Defense and the Inspector General of the covered non-
        defense agency shall enter into a memorandum of 
        understanding with each other to carry out such review 
        and determination.
            (5) Termination of non-compliance determination.--
        If the Inspector General of the Department of Defense 
        and the Inspector General of a covered non-defense 
        agency determine, pursuant to paragraph (1)(B), that a 
        covered non-defense agency is not compliant with 
        defense procurement requirements, the Inspectors 
        General shall terminate such a determination effective 
        on the date on which the Inspectors General jointly--
                    (A) determine that the non-defense agency 
                is compliant with defense procurement 
                requirements; and
                    (B) notify the Secretary of Defense of that 
                determination.
            (6) Resolution of disagreements.--If the Inspector 
        General of the Department of Defense and the Inspector 
        General of a covered non-defense agency are unable to 
        agree on a joint determination under this subsection, a 
        determination by the Inspector General of the 
        Department of Defense under this subsection shall be 
        conclusive for the purposes of this section.
    (b) Limitation on Procurements on Behalf of Department of 
Defense.--
            (1) Except as provided in paragraph (2), an 
        acquisition official of the Department of Defense may 
        place an order, make a purchase, or otherwise procure 
        property or services for the Department of Defense in 
        excess of the simplified acquisition threshold through 
        a non-defense agency only if--
                    (A) in the case of a procurement by any 
                non-defense agency in any fiscal year, the head 
                of the non-defense agency has certified that 
                the non-defense agency will comply with defense 
                procurement requirements for the fiscal year;
                    (B) in the case of--
                            (i) a procurement by a covered non-
                        defense agency in a fiscal year for 
                        which a memorandum of understanding is 
                        required by subsection (a)(4), the 
                        Inspector General of the Department of 
                        Defense and the Inspector General of 
                        the covered non-defense agency have 
                        entered into such a memorandum of 
                        understanding; or
                            (ii) a procurement by a covered 
                        non-defense agency in a fiscal year 
                        following the Inspectors General review 
                        and determination required by 
                        subsection (a), the Inspectors General 
                        have determined that a covered non-
                        defense agency is compliant with 
                        defense procurement requirements or 
                        have terminated a prior determination 
                        of non-compliance in accordance with 
                        subsection (a)(5); and
                    (C) the procurement is not otherwise 
                prohibited by section 817 of the John Warner 
                National Defense Authorization Act for Fiscal 
                Year 2007 (Public Law 109-364) or section 811 
                of the National Defense Authorization Act for 
                Fiscal Year 2006 (Public Law 109-163).
            (2) Exception for procurements of necessary 
        property and services.--
                    (A) In general.--The limitation in 
                paragraph (1) shall not apply to the 
                procurement of property and services on behalf 
                of the Department of Defense by a non-defense 
                agency during any fiscal year for which there 
                is in effect a written determination of the 
                Under Secretary of Defense for Acquisition, 
                Technology, and Logistics that it is necessary 
                in the interest of the Department of Defense to 
                procure property and services through the non-
                defense agency during such fiscal year.
                    (B) Scope of particular exception.--A 
                written determination with respect to a non-
                defense agency under subparagraph (A) shall 
                apply to any category of procurements through 
                the non-defense agency that is specified in the 
                determination.
    (c) Guidance on Interagency Contracting.--
            (1) Requirement.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary of Defense 
        shall issue guidance on the use of interagency 
        contracting by the Department of Defense.
            (2) Matters covered.--The guidance required by 
        paragraph (1) shall address the circumstances in which 
        it is appropriate for Department of Defense acquisition 
        officials to procure goods or services through a 
        contract entered into by an agency outside the 
        Department of Defense. At a minimum, the guidance shall 
        address--
                    (A) the circumstances in which it is 
                appropriate for such acquisition officials to 
                use direct acquisitions;
                    (B) the circumstances in which it is 
                appropriate for such acquisition officials to 
                use assisted acquisitions;
                    (C) the circumstances in which it is 
                appropriate for such acquisition officials to 
                use interagency contracting to acquire items 
                unique to the Department of Defense and the 
                procedures for approving such interagency 
                contracting;
                    (D) the circumstances in which it is 
                appropriate for such acquisition officials to 
                use interagency contracting to acquire items 
                that are already being provided under a 
                contract awarded by the Department of Defense;
                    (E) tools that should be used by such 
                acquisition officials to determine whether 
                items are already being provided under a 
                contract awarded by the Department of Defense; 
                and
                    (F) procedures for ensuring that defense 
                procurement requirements are identified and 
                communicated to outside agencies involved in 
                interagency contracting.
    (d) Compliance With Defense Procurement Requirements.--For 
the purposes of this section, a non-defense agency is compliant 
with defense procurement requirements if the procurement 
policies, procedures, and internal controls of the non-defense 
agency applicable to the procurement of products and services 
on behalf of the Department of Defense, and the manner in which 
they are administered, are adequate to ensure the compliance of 
the non-defense agency with the requirements of laws and 
regulations (including applicable Department of Defense 
financial management regulations) that apply to procurements of 
property and services made directly by the Department of 
Defense.
    (e) Treatment of Procurements for Fiscal Year Purposes.--
For the purposes of this section, a procurement shall be 
treated as being made during a particular fiscal year to the 
extent that funds are obligated by the Department of Defense 
for the procurement in that fiscal year.
    (f) Definitions.--In this section:
            (1) Non-defense agency.--The term ``non-defense 
        agency'' means any department or agency of the Federal 
        Government other than the Department of Defense. Such 
        term includes a covered non-defense agency.
            (2) Covered non-defense agency.--The term ``covered 
        non-defense agency'' means each of the following:
                    (A) The General Services Administration.
                    (B) The Department of the Treasury.
                    (C) The Department of the Interior.
                    (D) The National Aeronautics and Space 
                Administration.
                    (E) The Department of Veterans Affairs.
                    (F) The National Institutes of Health.
            (3) Government-wide acquisition contract.--The term 
        ``government-wide acquisition contract'' means a task 
        or delivery order contract that--
                    (A) is entered into by a non-defense 
                agency; and
                    (B) may be used as the contract under which 
                property or services are procured for one or 
                more other departments or agencies of the 
                Federal Government.
            (4) Simplified acquisition threshold.--The term 
        ``simplified acquisition threshold'' has the meaning 
        provided by section 2302(7) of title 10, United States 
        Code.
            (5) Interagency contracting.--The term 
        ``interagency contracting'' means the exercise of the 
        authority under section 1535 of title 31, United States 
        Code, or other statutory authority, for Federal 
        agencies to purchase goods and services under contracts 
        entered into or administered by other agencies.
            (6) Acquisition official.--The term ``acquisition 
        official'', with respect to the Department of Defense, 
        means--
                    (A) a contracting officer of the Department 
                of Defense; or
                    (B) any other Department of Defense 
                official authorized to approve a direct 
                acquisition or an assisted acquisition on 
                behalf of the Department of Defense.
            (7) Direct acquisition.--The term ``direct 
        acquisition'', with respect to the Department of 
        Defense, means the type of interagency contracting 
        through which the Department of Defense orders an item 
        or service from a government-wide acquisition contract 
        maintained by a non-defense agency.
            (8) Assisted acquisition.--The term ``assisted 
        acquisition'', with respect to the Department of 
        Defense, means the type of interagency contracting 
        through which acquisition officials of a non-defense 
        agency award a contract or task or delivery order for 
        the procurement of goods or services on behalf of the 
        Department of Defense.

SEC. 802. LEAD SYSTEMS INTEGRATORS.

    (a) Prohibitions on the Use of Lead Systems Integrators.--
            (1) Prohibition on new lead systems integrators.--
        Effective October 1, 2010, the Department of Defense 
        may not award a new contract for lead systems 
        integrator functions in the acquisition of a major 
        system to any entity that was not performing lead 
        systems integrator functions in the acquisition of the 
        major system prior to the date of the enactment of this 
        Act.
            (2) Prohibition on lead systems integrators beyond 
        low-rate initial production.--Effective on the date of 
        the enactment of this Act, the Department of Defense 
        may award a new contract for lead systems integrator 
        functions in the acquisition of a major system only 
        if--
                    (A) the major system has not yet proceeded 
                beyond low-rate initial production; or
                    (B) the Secretary of Defense determines in 
                writing that it would not be practicable to 
                carry out the acquisition without continuing to 
                use a contractor to perform lead systems 
                integrator functions and that doing so is in 
                the best interest of the Department.
            (3) Requirements relating to determinations.--A 
        determination under paragraph (2)(B)--
                    (A) shall specify the reasons why it would 
                not be practicable to carry out the acquisition 
                without continuing to use a contractor to 
                perform lead systems integrator functions 
                (including a discussion of alternatives, such 
                as the use of the Department of Defense 
                workforce, or a system engineering and 
                technical assistance contractor);
                    (B) shall include a plan for phasing out 
                the use of contracted lead systems integrator 
                functions over the shortest period of time 
                consistent with the interest of the national 
                defense;
                    (C) may not be delegated below the level of 
                the Under Secretary of Defense for Acquisition, 
                Technology, and Logistics; and
                    (D) shall be provided to the Committees on 
                Armed Services of the Senate and the House of 
                Representatives at least 45 days before the 
                award of a contract pursuant to the 
                determination.
    (b) Acquisition Workforce.--
            (1) Requirement.--The Secretary of Defense shall 
        ensure that the acquisition workforce is of the 
        appropriate size and skill level necessary--
                    (A) to accomplish inherently governmental 
                functions related to acquisition of major 
                systems; and
                    (B) to effectuate the purpose of subsection 
                (a) to minimize and eventually eliminate the 
                use of contractors to perform lead systems 
                integrator functions.
            (2) Report.--The Secretary shall include an update 
        on the progress made in complying with paragraph (1) in 
        the annual report required by section 820 of the John 
        Warner National Defense Authorization Act for Fiscal 
        Year 2007 (Public Law 109-364; 120 Stat. 2330).
    (c) Exception for Contracts for Other Management 
Services.--The Department of Defense may continue to award 
contracts for the procurement of services the primary purpose 
of which is to perform acquisition support functions with 
respect to the development or production of a major system, if 
the following conditions are met with respect to each such 
contract:
            (1) The contract prohibits the contractor from 
        performing inherently governmental functions.
            (2) The Department of Defense organization 
        responsible for the development or production of the 
        major system ensures that Federal employees are 
        responsible for--
                    (A) determining courses of action to be 
                taken in the best interest of the government; 
                and
                    (B) determining best technical performance 
                for the warfighter.
            (3) The contract requires that the prime contractor 
        for the contract may not advise or recommend the award 
        of a contract or subcontract for the development or 
        production of the major system to an entity owned in 
        whole or in part by the prime contractor.
    (d) Definitions.--In this section:
            (1) Lead systems integrator.--The term ``lead 
        systems integrator'' means--
                    (A) a prime contractor for the development 
                or production of a major system, if the prime 
                contractor is not expected at the time of award 
                to perform a substantial portion of the work on 
                the system and the major subsystems; or
                    (B) a prime contractor under a contract for 
                the procurement of services the primary purpose 
                of which is to perform acquisition functions 
                closely associated with inherently governmental 
                functions with respect to the development or 
                production of a major system.
            (2) Major system.--The term ``major system'' has 
        the meaning given such term in section 2302d of title 
        10, United States Code.
            (3) Low-rate initial production.--The term ``low-
        rate initial production'' has the meaning given such 
        term in section 2400 of title 10, United States Code.

SEC. 803. REINVESTMENT IN DOMESTIC SOURCES OF STRATEGIC MATERIALS.

    (a) Assessment Required.--Not later than 180 days after the 
date of the enactment of this Act, the Strategic Materials 
Protection Board established pursuant to section 187 of title 
10, United States Code, shall perform an assessment of the 
extent to which domestic producers of strategic materials are 
investing and planning to invest on a sustained basis in the 
processes, infrastructure, workforce training, and facilities 
required for the continued domestic production of such 
materials to meet national defense requirements.
    (b) Cooperation of Domestic Producers.--The Department of 
Defense may take into consideration the degree of cooperation 
of any domestic producer of strategic materials with the 
assessment conducted under subsection (a) when determining how 
much weight to accord any comments provided by such domestic 
producer regarding a proposed waiver of domestic source 
limitations pursuant to section 2533b of title 10, United 
States Code.
    (c) Report to Congressional Defense Committees.--The Board 
shall include the findings and recommendations of the 
assessment required by subsection (a) in the first report 
submitted to Congress pursuant to section 187(d) of title 10, 
United States Code, after the completion of such assessment.
    (d) Definition.--The term ``strategic material'' means--
            (1) a material designated as critical to national 
        security by the Strategic Materials Protection Board in 
        accordance with section 187 of title 10, United States 
        Code; or
            (2) a specialty metal as defined by section 2533b 
        of title 10, United States Code.

SEC. 804. CLARIFICATION OF THE PROTECTION OF STRATEGIC MATERIALS 
                    CRITICAL TO NATIONAL SECURITY.

    (a) Prohibition.--Subsection (a) of section 2533b of title 
10, United States Code, is amended--
            (1) by striking ``Except as provided in subsections 
        (b) through (j), funds appropriated or otherwise 
        available to the Department of Defense may not be used 
        for the procurement of--'' and inserting ``Except as 
        provided in subsections (b) through (m), the 
        acquisition by the Department of Defense of the 
        following items is prohibited:'';
            (2) in paragraph (1)--
                    (A) by striking ``the following'' and 
                inserting ``The following''; and
                    (B) by striking ``; or'' and inserting a 
                period; and
            (3) in paragraph (2), by striking ``a speciality'' 
        and inserting ``A specialty''.
    (b) Applicability to Acquisition of Commercial Items.--
Subsection (h) of such section is amended to read as follows:
    ``(h) Applicability to Acquisitions of Commercial Items.--
(1) Except as provided in paragraphs (2) and (3), this section 
applies to acquisitions of commercial items, notwithstanding 
sections 34 and 35 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 430 and 431).
    ``(2) This section does not apply to contracts or 
subcontracts for the acquisition of commercially available off-
the-shelf items, as defined in section 35(c) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 431(c)), other than--
            ``(A) contracts or subcontracts for the acquisition 
        of specialty metals, including mill products, such as 
        bar, billet, slab, wire, plate and sheet, that have not 
        been incorporated into end items, subsystems, 
        assemblies, or components;
            ``(B) contracts or subcontracts for the acquisition 
        of forgings or castings of specialty metals, unless 
        such forgings or castings are incorporated into 
        commercially available off-the-shelf end items, 
        subsystems, or assemblies;
            ``(C) contracts or subcontracts for commercially 
        available high performance magnets unless such high 
        performance magnets are incorporated into commercially 
        available off the shelf end items or subsystems; and
            ``(D) contracts or subcontracts for commercially 
        available off-the-shelf fasteners, unless such 
        fasteners are--
                    ``(i) incorporated into commercially 
                available off-the-shelf end items, subsystems, 
                assemblies, or components; or
                    ``(ii) purchased as provided in paragraph 
                (3).
    ``(3) This section does not apply to fasteners that are 
commercial items that are purchased under a contract or 
subcontract with a manufacturer of such fasteners, if the 
manufacturer has certified that it will purchase, during the 
relevant calendar year, an amount of domestically melted 
specialty metal, in the required form, for use in the 
production of such fasteners for sale to the Department of 
Defense and other customers, that is not less than 50 percent 
of the total amount of the specialty metal that it will 
purchase to carry out the production of such fasteners.''.
    (c) Electronic Components.--Subsection (g) of such section 
is amended by striking ``commercially available'' and all that 
follows through the end of the subsection and inserting 
``electronic components, unless the Secretary of Defense, upon 
the recommendation of the Strategic Materials Protection Board 
pursuant to section 187 of this title, determines that the 
domestic availability of a particular electronic component is 
critical to national security.''.
    (d) Additional Exceptions.--Section 2533b of title 10, 
United States Code, as amended by subsections (a), (b), and 
(c), is further amended--
            (1) by redesignating subsections (i) and (j) as 
        subsections (l) and (m), respectively; and
            (2) by inserting after subsection (h) the following 
        new subsections:
    ``(i) Exceptions for Purchases of Specialty Metals Below 
Minimum Threshold.--(1) Notwithstanding subsection (a), the 
Secretary of Defense or the Secretary of a military department 
may accept delivery of an item containing specialty metals that 
were not melted in the United States if the total amount of 
noncompliant specialty metals in the item does not exceed 2 
percent of the total weight of specialty metals in the item.
    ``(2) This subsection does not apply to high performance 
magnets.
    ``(j) Streamlined Compliance for Commercial Derivative 
Military Articles.--(1) Subsection (a) shall not apply to an 
item acquired under a prime contract if the Secretary of 
Defense or the Secretary of a military department determines 
that--
            ``(A) the item is a commercial derivative military 
        article; and
            ``(B) the contractor certifies that the contractor 
        and its subcontractors have entered into a contractual 
        agreement, or agreements, to purchase an amount of 
        domestically melted specialty metal in the required 
        form, for use during the period of contract performance 
        in the production of the commercial derivative military 
        article and the related commercial article, that is not 
        less than the greater of--
                    ``(i) an amount equivalent to 120 percent 
                of the amount of specialty metal that is 
                required to carry out the production of the 
                commercial derivative military article 
                (including the work performed under each 
                subcontract); or
                    ``(ii) an amount equivalent to 50 percent 
                of the amount of specialty metal that is 
                purchased by the contractor and its 
                subcontractors for use during such period in 
                the production of the commercial derivative 
                military article and the related commercial 
                article.
    ``(2) For the purposes of this subsection, the amount of 
specialty metal that is required to carry out the production of 
the commercial derivative military article includes specialty 
metal contained in any item, including commercially available 
off-the-shelf items, incorporated into such commercial 
derivative military article.
    ``(k) National Security Waiver.--(1) Notwithstanding 
subsection (a), the Secretary of Defense may accept the 
delivery of an end item containing noncompliant materials if 
the Secretary determines in writing that acceptance of such end 
item is necessary to the national security interests of the 
United States.
    ``(2) A written determination under paragraph (1)--
            ``(A) may not be delegated below the level of the 
        Deputy Secretary of Defense or the Under Secretary of 
        Defense for Acquisition, Technology, and Logistics;
            ``(B) shall specify the quantity of end items to 
        which the waiver applies and the time period over which 
        the waiver applies; and
            ``(C) shall be provided to the congressional 
        defense committees prior to making such a determination 
        (except that in the case of an urgent national security 
        requirement, such certification may be provided to the 
        defense committees up to 7 days after it is made).
    ``(3)(A) In any case in which the Secretary makes a 
determination under paragraph (1), the Secretary shall 
determine whether or not the noncompliance was knowing and 
willful.
    ``(B) If the Secretary determines that the noncompliance 
was not knowing or willful, the Secretary shall ensure that the 
contractor or subcontractor responsible for the noncompliance 
develops and implements an effective plan to ensure future 
compliance.
    ``(C) If the Secretary determines that the noncompliance 
was knowing or willful, the Secretary shall--
            ``(i) require the development and implementation of 
        a plan to ensure future compliance; and
            ``(ii) consider suspending or debarring the 
        contractor or subcontractor until such time as the 
        contractor or subcontractor has effectively addressed 
        the issues that lead to such noncompliance.''.
    (e) Additional Definitions.--Subsection (m) of section 
2533b of title 10, United States Code, as redesignated by 
subsection (c), is further amended by adding at the end the 
following:
            ``(3) The term `acquisition' has the meaning 
        provided in section 4 of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 403).
            ``(4) The term `required form' shall not apply to 
        end items or to their components at any tier. The term 
        `required form' means in the form of mill product, such 
        as bar, billet, wire, slab, plate or sheet, and in the 
        grade appropriate for the production of--
                    ``(A) a finished end item delivered to the 
                Department of Defense; or
                    ``(B) a finished component assembled into 
                an end item delivered to the Department of 
                Defense.
            ``(5) The term `commercially available off-the-
        shelf', has the meaning provided in section 35(c) of 
        the Office of Federal Procurement Policy Act (41 U.S.C. 
        431(c)).
            ``(6) The term `assemblies' means items forming a 
        portion of a system or subsystem that can be 
        provisioned and replaced as an entity and which 
        incorporates multiple, replaceable parts.
            ``(7) The term `commercial derivative military 
        article' means an item procured by the Department of 
        Defense that is or will be produced using the same 
        production facilities, a common supply chain, and the 
        same or similar production processes that are used for 
        the production of articles predominantly used by the 
        general public or by nongovernmental entities for 
        purposes other than governmental purposes.
            ``(8) The term `subsystem' means a functional 
        grouping of items that combine to perform a major 
        function within an end item, such as electrical power, 
        attitude control, and propulsion.
            ``(9) The term `end item' means the final 
        production product when assembled or completed, and 
        ready for issue, delivery, or deployment.
            ``(10) The term `subcontract' includes a 
        subcontract at any tier.''.
    (f) Conforming Amendments.--Section 2533b of title 10, 
United States Code, is further amended--
            (1) in subsection (c)--
                    (A) in the heading, by striking 
                ``Procurements'' and inserting 
                ``Acquisitions''; and
                    (B) in paragraphs (1) and (2), by striking 
                ``Procurements'' and inserting 
                ``Acquisitions'';
            (2) in subsection (d), by striking ``procurement'' 
        each place it appears and inserting ``acquisition''; 
        and
            (3) in subsections (f) and (g), by striking 
        ``procurements'' each place it appears and inserting 
        ``acquisitions''.
    (g) Implementation.--Not later than 120 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
prescribe regulations on the implementation of this section and 
the amendments made by this section, including specific 
guidance on how thresholds established in subsections (h)(3), 
(i) and (j) of section 2533b of title 10, United States Code, 
as amended by this section, should be implemented.
    (h) Revision of Domestic Nonavailability Determinations and 
Rules.--No later than 180 days after the date of the enactment 
of this Act, any domestic nonavailability determination under 
section 2533b of title 10, United States Code, including a 
class deviation, or rules made by the Department of Defense 
between December 6, 2006, and the date of the enactment of this 
Act, shall be reviewed and amended, as necessary, to comply 
with the amendments made by this section. This requirement 
shall not apply to a domestic nonavailability determination 
that applies to--
            (1) an individual contract that was entered into 
        before the date of the enactment of this Act; or
            (2) an individual Department of Defense program, 
        except to the extent that such domestic nonavailability 
        determination applies to contracts entered into after 
        the date of the enactment of this Act.
    (i) Transparency Requirement for Commercially Available 
Off-the-Shelf Item Exception.--The Secretary of Defense shall 
submit to the Committees on Armed Services of the Senate and 
House of Representatives, not later than December 30, 2008, a 
report on the use of authority provided under subsection (h) of 
section 2533b of title 10, United States Code, as amended by 
this section. Such report shall include, at a minimum, a 
description of types of items being procured as commercially 
available off-the-shelf items under such subsection and 
incorporated into noncommercial items. The Secretary shall 
submit an update of such report to such committees not later 
than December 30, 2009.

SEC. 805. PROCUREMENT OF COMMERCIAL SERVICES.

    (a) Regulations Required.--Not later than 180 days after 
the date of the enactment of this Act, the Secretary of Defense 
shall modify the regulations of the Department of Defense for 
the procurement of commercial services for or on behalf of the 
Department of Defense.
    (b) Applicability of Commercial Procedures.--
            (1) Services of a type sold in marketplace.--The 
        regulations modified pursuant to subsection (a) shall 
        ensure that services that are not offered and sold 
        competitively in substantial quantities in the 
        commercial marketplace, but are of a type offered and 
        sold competitively in substantial quantities in the 
        commercial marketplace, may be treated as commercial 
        items for purposes of section 2306a of title 10, United 
        States Code (relating to truth in negotiations), only 
        if the contracting officer determines in writing that 
        the offeror has submitted sufficient information to 
        evaluate, through price analysis, the reasonableness of 
        the price for such services.
            (2) Information submitted.--To the extent necessary 
        to make a determination under paragraph (1), the 
        contracting officer may request the offeror to submit--
                    (A) prices paid for the same or similar 
                commercial items under comparable terms and 
                conditions by both government and commercial 
                customers; and
                    (B) if the contracting officer determines 
                that the information described in subparagraph 
                (A) is not sufficient to determine the 
                reasonableness of price, other relevant 
                information regarding the basis for price or 
                cost, including information on labor costs, 
                material costs, and overhead rates.
    (c) Time-and-Materials Contracts.--
            (1) Commercial item acquisitions.--The regulations 
        modified pursuant to subsection (a) shall ensure that 
        procedures applicable to time-and-materials contracts 
        and labor-hour contracts for commercial item 
        acquisitions may be used only for the following:
                    (A) Services procured for support of a 
                commercial item, as described in section 
                4(12)(E) of the Office of Federal Procurement 
                Policy Act (41 U.S.C. 403(12)(E)).
                    (B) Emergency repair services.
                    (C) Any other commercial services only to 
                the extent that the head of the agency 
                concerned approves a determination in writing 
                by the contracting officer that--
                            (i) the services to be acquired are 
                        commercial services as defined in 
                        section 4(12)(F) of the Office of 
                        Federal Procurement Policy Act (41 
                        U.S.C. 403(12)(F));
                            (ii) if the services to be acquired 
                        are subject to subsection (b), the 
                        offeror of the services has submitted 
                        sufficient information in accordance 
                        with that subsection;
                            (iii) such services are commonly 
                        sold to the general public through use 
                        of time-and-materials or labor-hour 
                        contracts; and
                            (iv) the use of a time-and-
                        materials or labor-hour contract type 
                        is in the best interest of the 
                        Government.
            (2) Non-commercial item acquisitions.--Nothing in 
        this subsection shall be construed to preclude the use 
        of procedures applicable to time-and-materials 
        contracts and labor-hour contracts for non-commercial 
        item acquisitions for the acquisition of any category 
        of services.

SEC. 806. SPECIFICATION OF AMOUNTS REQUESTED FOR PROCUREMENT OF 
                    CONTRACT SERVICES.

    (a) Specification of Amounts Requested.--The budget 
justification materials submitted to Congress in support of the 
budget of the Department of Defense for any fiscal year after 
fiscal year 2009 shall identify clearly and separately the 
amounts requested in each budget account for the procurement of 
contract services.
    (b) Information Provided.--For each budget account, the 
materials submitted shall clearly identify--
            (1) the amount requested for each Department of 
        Defense component, installation, or activity; and
            (2) the amount requested for each type of service 
        to be provided.
    (c) Contract Services Defined.--In this section, the term 
``contract services''--
            (1) means services from contractors; but
            (2) excludes services relating to research and 
        development and services relating to military 
        construction.

SEC. 807. INVENTORIES AND REVIEWS OF CONTRACTS FOR SERVICES.

    (a) Inventory Requirement.--Section 2330a of title 10, 
United States Code, is amended--
            (1) by redesignating subsection (d) as subsection 
        (g);
            (2) by striking subsection (c) and inserting the 
        following:
    ``(c) Inventory.--(1) Not later than the end of the third 
quarter of each fiscal year, the Secretary of Defense shall 
submit to Congress an annual inventory of the activities 
performed during the preceding fiscal year pursuant to 
contracts for services for or on behalf of the Department of 
Defense. The entry for an activity on an inventory under this 
subsection shall include, for the fiscal year covered by such 
entry, the following:
            ``(A) The functions and missions performed by the 
        contractor.
            ``(B) The contracting organization, the component 
        of the Department of Defense administering the 
        contract, and the organization whose requirements are 
        being met through contractor performance of the 
        function.
            ``(C) The funding source for the contract under 
        which the function is performed by appropriation and 
        operating agency.
            ``(D) The fiscal year for which the activity first 
        appeared on an inventory under this section.
            ``(E) The number of full-time contractor employees 
        (or its equivalent) paid for the performance of the 
        activity.
            ``(F) A determination whether the contract pursuant 
        to which the activity is performed is a personal 
        services contract.
            ``(G) A summary of the data required to be 
        collected for the activity under subsection (a).
    ``(2) The inventory required under this subsection shall be 
submitted in unclassified form, but may include a classified 
annex.
    ``(d) Public Availability of Inventories.--Not later than 
30 days after the date on which an inventory under subsection 
(c) is required to be submitted to Congress, the Secretary 
shall--
            ``(1) make the inventory available to the public; 
        and
            ``(2) publish in the Federal Register a notice that 
        the inventory is available to the public.
    ``(e) Review and Planning Requirements.--Within 90 days 
after the date on which an inventory is submitted under 
subsection (c), the Secretary of the military department or 
head of the Defense Agency responsible for activities in the 
inventory shall--
            ``(1) review the contracts and activities in the 
        inventory for which such Secretary or agency head is 
        responsible;
            ``(2) ensure that--
                    ``(A) each contract on the list that is a 
                personal services contract has been entered 
                into, and is being performed, in accordance 
                with applicable statutory and regulatory 
                requirements;
                    ``(B) the activities on the list do not 
                include any inherently governmental functions; 
                and
                    ``(C) to the maximum extent practicable, 
                the activities on the list do not include any 
                functions closely associated with inherently 
                governmental functions;
            ``(3) identify activities that should be considered 
        for conversion--
                    ``(A) to performance by civilian employees 
                of the Department of Defense pursuant to 
                section 2463 of this title; or
                    ``(B) to an acquisition approach that would 
                be more advantageous to the Department of 
                Defense; and
            ``(4) develop a plan to provide for appropriate 
        consideration of the conversion of activities 
        identified under paragraph (3) within a reasonable 
        period of time.
    ``(f) Rule of Construction.--Nothing in this section shall 
be construed to authorize the performance of personal services 
by a contractor except where expressly authorized by a 
provision of law other than this section.''; and
            (3) by adding at the end of subsection (g) (as so 
        redesignated) the following new paragraphs:
            ``(3) Function closely associated with inherently 
        governmental functions.--The term `function closely 
        associated with inherently governmental functions' has 
        the meaning given that term in section 2383(b)(3) of 
        this title.
            ``(4) Inherently governmental functions.--The term 
        `inherently governmental functions' has the meaning 
        given that term in section 2383(b)(2) of this title.
            ``(5) Personal services contract.--The term 
        `personal services contract' means a contract under 
        which, as a result of its terms or conditions or the 
        manner of its administration during performance, 
        contractor personnel are subject to the relatively 
        continuous supervision and control of one or more 
        Government officers or employees, except that the 
        giving of an order for a specific article or service, 
        with the right to reject the finished product or 
        result, is not the type of supervision or control that 
        makes a contract a personal services contract.''.
    (b) Effective Date.--
            (1) The amendments made by subsection (a) shall be 
        effective upon the date of the enactment of this Act.
            (2) The first inventory required by section 
        2330a(c) of title 10, United States Code, as added by 
        subsection (a), shall be submitted not later than the 
        end of the third quarter of fiscal year 2008.

SEC. 808. INDEPENDENT MANAGEMENT REVIEWS OF CONTRACTS FOR SERVICES.

    (a) Guidance and Instructions.--Not later than 180 days 
after the date of the enactment of this Act, the Secretary of 
Defense shall issue guidance, with detailed implementation 
instructions, for the Department of Defense to provide for 
periodic independent management reviews of contracts for 
services. The independent management review guidance and 
instructions issued pursuant to this subsection shall be 
designed to evaluate, at a minimum--
            (1) contract performance in terms of cost, 
        schedule, and requirements;
            (2) the use of contracting mechanisms, including 
        the use of competition, the contract structure and 
        type, the definition of contract requirements, cost or 
        pricing methods, the award and negotiation of task 
        orders, and management and oversight mechanisms;
            (3) the contractor's use, management, and oversight 
        of subcontractors;
            (4) the staffing of contract management and 
        oversight functions; and
            (5) the extent of any pass-throughs, and excessive 
        pass-through charges (as defined in section 852 of the 
        John Warner National Defense Authorization Act for 
        Fiscal Year 2007), by the contractor.
    (b) Additional Subject of Review.--In addition to the 
matters required by subsection (a), the guidance and 
instructions issued pursuant to subsection (a) shall provide 
for procedures for the periodic review of contracts under which 
one contractor provides oversight for services performed by 
other contractors. In particular, the procedures shall be 
designed to evaluate, at a minimum--
            (1) the extent of the agency's reliance on the 
        contractor to perform acquisition functions closely 
        associated with inherently governmental functions as 
        defined in section 2383(b)(3) of title 10, United 
        States Code; and
            (2) the financial interest of any prime contractor 
        performing acquisition functions described in paragraph 
        (1) in any contract or subcontract with regard to which 
        the contractor provided advice or recommendations to 
        the agency.
    (c) Elements.--The guidance and instructions issued 
pursuant to subsection (a) shall address, at a minimum--
            (1) the contracts subject to independent management 
        reviews, including any applicable thresholds and 
        exceptions;
            (2) the frequency with which independent management 
        reviews shall be conducted;
            (3) the composition of teams designated to perform 
        independent management reviews;
            (4) any phase-in requirements needed to ensure that 
        qualified staff are available to perform independent 
        management reviews;
            (5) procedures for tracking the implementation of 
        recommendations made by independent management review 
        teams; and
            (6) procedures for developing and disseminating 
        lessons learned from independent management reviews.
    (c) Reports.--
            (1) Report on guidance and instruction.--Not later 
        than 270 days after the date of the enactment of this 
        Act, the Secretary of Defense shall submit to the 
        congressional defense committees a report setting forth 
        the guidance and instructions issued pursuant to 
        subsection (a).
            (2) GAO report on implementation.--Not later than 
        two years after the date of the enactment of this Act, 
        the Comptroller General of the United States shall 
        submit to the congressional defense committees a report 
        on the implementation of the guidance and instructions 
        issued pursuant to subsection (a).

SEC. 809. IMPLEMENTATION AND ENFORCEMENT OF REQUIREMENTS APPLICABLE TO 
                    UNDEFINITIZED CONTRACTUAL ACTIONS.

    (a) Guidance and Instructions.--Not later than 180 days 
after the date of the enactment of this Act, the Secretary of 
Defense shall issue guidance, with detailed implementation 
instructions, for the Department of Defense to ensure the 
implementation and enforcement of requirements applicable to 
undefinitized contractual actions.
    (b) Elements.--The guidance and instructions issued 
pursuant to subsection (a) shall address, at a minimum--
            (1) the circumstances in which it is, and is not, 
        appropriate for Department of Defense officials to use 
        undefinitized contractual actions;
            (2) approval requirements (including thresholds) 
        for the use of undefinitized contractual actions;
            (3) procedures for ensuring that timelines for the 
        definitization of undefinitized contractual actions are 
        met;
            (4) procedures for ensuring compliance with 
        regulatory limitations on the obligation of funds 
        pursuant to undefinitized contractual actions;
            (5) procedures for ensuring compliance with 
        regulatory limitations on profit or fee with respect to 
        costs incurred before the definitization of an 
        undefinitized contractual action; and
            (6) reporting requirements for undefinitized 
        contractual actions that fail to meet required 
        timelines for definitization or fail to comply with 
        regulatory limitations on the obligation of funds or on 
        profit or fee.
    (c) Reports.--
            (1) Report on guidance and instructions.--Not later 
        than 210 days after the date of the enactment of this 
        Act, the Secretary of Defense shall submit to the 
        congressional defense committees a report setting forth 
        the guidance and instructions issued pursuant to 
        subsection (a).
            (2) GAO report.--Not later than two years after the 
        date of the enactment of this Act, the Comptroller 
        General of the United States shall submit to the 
        congressional defense committees a report on the extent 
        to which the guidance and instructions issued pursuant 
        to subsection (a) have resulted in improvements to--
                    (A) the level of insight that senior 
                Department of Defense officials have into the 
                use of undefinitized contractual actions;
                    (B) the appropriate use of undefinitized 
                contractual actions;
                    (C) the timely definitization of 
                undefinitized contractual actions; and
                    (D) the negotiation of appropriate profits 
                and fees for undefinitized contractual actions.

SEC. 810. CLARIFICATION OF LIMITED ACQUISITION AUTHORITY FOR SPECIAL 
                    OPERATIONS COMMAND.

    Section 167(e)(4) of title 10, United States Code, is 
amended--
            (1) by redesignating subparagraph (C) as 
        subparagraph (D); and
            (2) by inserting after subparagraph (B) the 
        following new subparagraph:
    ``(C)(i) The staff of the commander shall include a command 
acquisition executive, who shall be responsible for the overall 
supervision of acquisition matters for the special operations 
command. The command acquisition executive shall have the 
authority to--
            ``(I) negotiate memoranda of agreement with the 
        military departments to carry out the acquisition of 
        equipment, material, supplies, and services described 
        in subparagraph (A) on behalf of the command;
            ``(II) supervise the acquisition of equipment, 
        material, supplies, and services described in 
        subparagraph (A), regardless of whether such 
        acquisition is carried out by the command, or by a 
        military department pursuant to a delegation of 
        authority by the command;
            ``(III) represent the command in discussions with 
        the military departments regarding acquisition programs 
        for which the command is a customer; and
            ``(IV) work with the military departments to ensure 
        that the command is appropriately represented in any 
        joint working group or integrated product team 
        regarding acquisition programs for which the command is 
        a customer.
    ``(ii) The command acquisition executive of the special 
operations command shall be included on the distribution list 
for acquisition directives and instructions of the Department 
of Defense.''.

 Subtitle B--Provisions Relating to Major Defense Acquisition Programs

SEC. 811. REQUIREMENTS APPLICABLE TO MULTIYEAR CONTRACTS FOR THE 
                    PROCUREMENT OF MAJOR SYSTEMS OF THE DEPARTMENT OF 
                    DEFENSE.

    (a) Additional Requirements Applicable to Multiyear 
Contracts.--Section 2306b of title 10, United States Code, is 
amended as follows:
            (1) Subsection (a) of such section is amended by 
        adding at the end the following new paragraph:
            ``(7) In the case of a contract in an amount equal 
        to or greater than $500,000,000, that the conditions 
        required by subparagraphs (C) through (F) of paragraph 
        (1) of subsection (i) will be met, in accordance with 
        the Secretary's certification and determination under 
        such subsection, by such contract.''.
            (2) Subsection (i)(1) of such section is amended by 
        inserting after ``unless'' the following: ``the 
        Secretary of Defense certifies in writing by no later 
        than March 1 of the year in which the Secretary 
        requests legislative authority to enter into such 
        contract that''.
            (3) Subsection (i)(1) of such section is further 
        amended--
                    (A) by redesignating subparagraph (B) as 
                subparagraph (G); and
                    (B) by striking subparagraph (A) and 
                inserting the following:
            ``(A) The Secretary has determined that each of the 
        requirements in paragraphs (1) through (6) of 
        subsection (a) will be met by such contract and has 
        provided the basis for such determination to the 
        congressional defense committees.
            ``(B) The Secretary's determination under 
        subparagraph (A) was made after the completion of a 
        cost analysis performed by the Cost Analysis 
        Improvement Group of the Department of Defense and such 
        analysis supports the findings.
            ``(C) The system being acquired pursuant to such 
        contract has not been determined to have experienced 
        cost growth in excess of the critical cost growth 
        threshold pursuant to section 2433(d) of this title 
        within 5 years prior to the date the Secretary 
        anticipates such contract (or a contract for advance 
        procurement entered into consistent with the 
        authorization for such contract) will be awarded.
            ``(D) A sufficient number of end items of the 
        system being acquired under such contract have been 
        delivered at or within the most current estimates of 
        the program acquisition unit cost or procurement unit 
        cost for such system to determine that current 
        estimates of such unit costs are realistic.
            ``(E) During the fiscal year in which such contract 
        is to be awarded, sufficient funds will be available to 
        perform the contract in such fiscal year, and the 
        future-years defense program for such fiscal year will 
        include the funding required to execute the program 
        without cancellation.
            ``(F) The contract is a fixed price type 
        contract.''.
            (4) Subsection (i) of such section is further 
        amended by adding at the end the following new 
        paragraphs:
    ``(5) The Secretary may make the certification under 
paragraph (1) notwithstanding the fact that one or more of the 
conditions of such certification are not met if the Secretary 
determines that, due to exceptional circumstances, proceeding 
with a multiyear contract under this section is in the best 
interest of the Department of Defense and the Secretary 
provides the basis for such determination with the 
certification.
    ``(6) The Secretary of Defense may not delegate the 
authority to make the certification under paragraph (1) or the 
determination under paragraph (5) to an official below the 
level of Under Secretary of Defense for Acquisition, 
Technology, and Logistics.
    ``(7) The Secretary of Defense shall send a notification 
containing the findings of the agency head under subsection 
(a), and the basis for such findings, 30 days prior to the 
award of a multiyear contract for a defense acquisition program 
that has been specifically authorized by law.''.
            (5) Such section is further amended by adding at 
        the end the following new subsection:
    ``(m) Increased Funding and Reprogramming Requests.--Any 
request for increased funding for the