[United States Statutes at Large, Volume 120, 109th Congress, 2nd Session]
[From the U.S. Government Printing Office, www.gpo.gov]

120 STAT. 2083

Public Law 109-364
109th Congress

An Act


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

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

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

[[Page 2084]]
120 STAT. 2084

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

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

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

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

[[Page 2085]]
120 STAT. 2085

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

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

Subtitle B--Army Programs

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

Subtitle C--Navy Programs

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

Subtitle D--Air Force Programs

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

Subtitle E--Joint and Multiservice Matters

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

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

Subtitle A--Authorization of Appropriations

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

Subtitle B--Program Requirements, Restrictions, and Limitations

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

[[Page 2086]]
120 STAT. 2086

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

Subtitle C--Missile Defense Programs

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

Subtitle D--Other Matters

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

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

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

Subtitle B--Environmental Provisions

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

Subtitle C--Program Requirements, Restrictions, and Limitations

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

Subtitle D--Workplace and Depot Issues

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

Subtitle E--Reports

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

[[Page 2087]]
120 STAT. 2087

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

Subtitle F--Other Matters

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

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

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

Subtitle B--Reserve Forces

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

Subtitle C--Authorization of Appropriations

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

TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Policy

Part I--Officer Personnel Policy Generally

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

[[Page 2088]]
120 STAT. 2088

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

Part II--Officer Promotion Policy

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

Part III--Joint Officer Management Requirements

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

Subtitle B--Reserve Component Matters

Part I--Reserve Component Management

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

Part II--Authorities Relating to Guard and Reserve Duty

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

Subtitle C--Education and Training

Part I--Service Academies

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

Part II--Scholarship and Financial Assistance Programs

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

Part III--Junior ROTC Program

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

[[Page 2089]]
120 STAT. 2089

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

Part IV--Other Education and Training Programs

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

Subtitle D--General Service Authorities

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

Subtitle E--Military Justice Matters

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

Subtitle F--Decorations and Awards

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

Subtitle G--Matters Relating to Casualties

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

Subtitle H--Impact Aid and Defense Dependents Education System

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

Subtitle I--Armed Forces Retirement Home

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

Subtitle J--Reports

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

[[Page 2090]]
120 STAT. 2090

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

Subtitle K--Other Matters

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

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

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

Subtitle B--Bonuses and Special and Incentive Pays

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

[[Page 2091]]
120 STAT. 2091

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

Subtitle C--Travel and Transportation Allowances

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

Subtitle D--Retired Pay and Survivor Benefits

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

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

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

Subtitle F--Other Matters

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

TITLE VII--HEALTH CARE PROVISIONS

Subtitle A--TRICARE Program Improvements

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

[[Page 2092]]
120 STAT. 2092

Subtitle B--Studies and Reports

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

Subtitle C--Planning, Programming, and Management

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

Subtitle D--Other Matters

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

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

Subtitle A--Provisions Relating to Major Defense Acquisition Programs

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

Subtitle B--Acquisition Policy and Management

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

[[Page 2093]]
120 STAT. 2093

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

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

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

Subtitle D--United States Defense Industrial Base Provisions

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

Subtitle E--Other Matters

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

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Department of Defense Management

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

Subtitle B--Space Activities

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

Subtitle C--Chemical Demilitarization Program

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

[[Page 2094]]
120 STAT. 2094

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

Subtitle D--Intelligence-Related Matters

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

Subtitle E--Other Matters

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

TITLE X--GENERAL PROVISIONS

Subtitle A--Financial Matters

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

Subtitle B--Policy Relating to Vessels and Shipyards

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

Subtitle C--Counter-Drug Activities

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

Subtitle D--Force Structure and Defense Policy Matters

Sec. 1031. Improvements to Quadrennial Defense Review.

[[Page 2095]]
120 STAT. 2095

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

Subtitle E--Reports

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

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

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

Subtitle G--Matters Involving Detainees

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

Subtitle H--Other Matters

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

TITLE XI--CIVILIAN PERSONNEL MATTERS

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

TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

Subtitle A--Assistance and Training

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

[[Page 2096]]
120 STAT. 2096

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

Subtitle B--Nonproliferation Matters and Countries of Concern

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

Subtitle C--Other Matters

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

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

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

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

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

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

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

[[Page 2097]]
120 STAT. 2097

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

DIVISION  B--MILITARY CONSTRUCTION AUTHORIZATIONS

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

TITLE XXI--ARMY

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

TITLE XXII--NAVY

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

TITLE XXIII--AIR FORCE

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

TITLE XXIV--DEFENSE AGENCIES

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

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
PROGRAM

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

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

[[Page 2098]]
120 STAT. 2098

Sec. 2704. Effective date.

TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

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

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

Subtitle B--Real Property and Facilities Administration

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

Subtitle C--Base Closure and Realignment

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

Subtitle D--Land Conveyances

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

Subtitle E--Energy Security

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

[[Page 2099]]
120 STAT. 2099

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

Subtitle F--Other Matters

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

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

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Subtitle A--National Security Programs Authorizations

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

Subtitle B--Program Authorizations, Restrictions, and Limitations

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

TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

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

TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations

[[Page 2100]]
120 STAT. 2100

TITLE XXXV--MARITIME ADMINISTRATION

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

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

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

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

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

Subtitle B--Army Programs

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

Subtitle C--Navy Programs

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

Subtitle D--Air Force Programs

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

[[Page 2101]]
120 STAT. 2101

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

Subtitle E--Joint and Multiservice Matters

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

Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

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

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

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

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

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

[[Page 2102]]
120 STAT. 2102

Subtitle B--Army Programs

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

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

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

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

[[Page 2103]]
120 STAT. 2103

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

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

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

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

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

[[Page 2104]]
120 STAT. 2104

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

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

Subtitle C--Navy Programs

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

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

(a) Limitation.--

[[Page 2105]]
120 STAT. 2105

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

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

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

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

[[Page 2106]]
120 STAT. 2106

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

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

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

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

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

[[Page 2107]]
120 STAT. 2107

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

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

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

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

[[Page 2108]]
120 STAT. 2108

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

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

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

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

[[Page 2109]]
120 STAT. 2109

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

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

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

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

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

[[Page 2110]]
120 STAT. 2110

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

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

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

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

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

[[Page 2111]]
120 STAT. 2111

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

Subtitle D--Air Force Programs

SEC. 131. BOMBER FORCE STRUCTURE.

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

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

[[Page 2112]]
120 STAT. 2112

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

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

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

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

[[Page 2113]]
120 STAT. 2113

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

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

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

[[Page 2114]]
120 STAT. 2114

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

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

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

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

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

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

[[Page 2115]]
120 STAT. 2115

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

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

[[Page 2116]]
120 STAT. 2116

Subtitle E--Joint and Multiservice Matters

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

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

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

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

Subtitle A--Authorization of Appropriations

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

Subtitle B--Program Requirements, Restrictions, and Limitations

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

Subtitle C--Missile Defense Programs

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

[[Page 2117]]
120 STAT. 2117

Subtitle D--Other Matters

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

Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

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

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

Subtitle B--Program Requirements, Restrictions, and Limitations

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

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

[[Page 2118]]
120 STAT. 2118

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

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

[[Page 2119]]
120 STAT. 2119

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

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

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

[[Page 2120]]
120 STAT. 2120

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

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

[[Page 2121]]
120 STAT. 2121

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

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

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

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

[[Page 2122]]
120 STAT. 2122

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

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

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

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

[[Page 2123]]
120 STAT. 2123

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

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

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

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

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

[[Page 2124]]
120 STAT. 2124

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

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

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

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

[[Page 2125]]
120 STAT. 2125

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

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

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

[[Page 2126]]
120 STAT. 2126

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

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

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

[[Page 2127]]
120 STAT. 2127

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

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

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

[[Page 2128]]
120 STAT. 2128

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

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

[[Page 2129]]
120 STAT. 2129

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

Subtitle C--Missile Defense Programs

SEC. 221. FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES.

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

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

[[Page 2130]]
120 STAT. 2130

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

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

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

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

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

[[Page 2131]]
120 STAT. 2131

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

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

Subtitle D--Other Matters

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

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

[[Page 2132]]
120 STAT. 2132

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

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

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

[[Page 2133]]
120 STAT. 2133

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

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

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

[[Page 2134]]
120 STAT. 2134

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

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

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

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

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

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

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

Subtitle B--Environmental Provisions

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

[[Page 2135]]
120 STAT. 2135

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

Subtitle C--Program Requirements, Restrictions, and Limitations

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

Subtitle D--Workplace and Depot Issues

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

Subtitle E--Reports

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

Subtitle F--Other Matters

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

Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

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

[[Page 2136]]
120 STAT. 2136

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

Funds are hereby authorized to be appropriated for fiscal year 2007
for the use of the Armed Forces and other activities and agencies of the
Department of Defense for providing capital for working capital and
revolving funds in amounts as follows:
(1) For the Defense Working Capital Funds, $161,998,000.
(2) For the National Defense Sealift Fund, $1,071,932,000.
(3) For the Defense Working Capital Fund, Defense
Commissary, $1,184,000,000.
(4) For the Pentagon Reservation Maintenance Revolving Fund,
$18,500,000.
SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS.

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

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

[[Page 2137]]
120 STAT. 2137

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

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

Subtitle B--Environmental Provisions

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

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

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

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

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

[[Page 2138]]
120 STAT. 2138

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

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

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

[[Page 2139]]
120 STAT. 2139

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

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

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

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

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

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

[[Page 2140]]
120 STAT. 2140

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

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

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

(e) Definitions.--In this section:

[[Page 2141]]
120 STAT. 2141

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

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

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

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

[[Page 2142]]
120 STAT. 2142

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

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

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

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

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

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

[[Page 2143]]
120 STAT. 2143

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

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


[[Page 2144]]
120 STAT. 2144

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

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

Subtitle C--Program Requirements, Restrictions, and Limitations

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

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

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

[[Page 2145]]
120 STAT. 2145

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

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

[[Page 2146]]
120 STAT. 2146

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

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

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

[[Page 2147]]
120 STAT. 2147

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

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

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

[[Page 2148]]
120 STAT. 2148

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

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

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

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

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


[[Page 2149]]
120 STAT. 2149

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

Subtitle D--Workplace and Depot Issues

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

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

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

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

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

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

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

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

[[Page 2150]]
120 STAT. 2150

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

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

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

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

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

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

[[Page 2151]]
120 STAT. 2151

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

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

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

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

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

[[Page 2152]]
120 STAT. 2152

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

Subtitle E--Reports

SEC. 341. REPORT ON NAVY FLEET RESPONSE PLAN.

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

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

[[Page 2153]]
120 STAT. 2153

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

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

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

[[Page 2154]]
120 STAT. 2154

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

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

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

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

[[Page 2155]]
120 STAT. 2155

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

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

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

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

[[Page 2156]]
120 STAT. 2156

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

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

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

[[Page 2157]]
120 STAT. 2157

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

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

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

[[Page 2158]]
120 STAT. 2158

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

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

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

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

[[Page 2159]]
120 STAT. 2159

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

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

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

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

[[Page 2160]]
120 STAT. 2160

Subtitle F--Other Matters

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

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

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

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

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

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

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

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

[[Page 2161]]
120 STAT. 2161

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

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

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

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

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

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

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

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

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

[[Page 2162]]
120 STAT. 2162

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

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

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

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

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

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

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

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

[[Page 2163]]
120 STAT. 2163

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

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

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

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

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

[[Page 2164]]
120 STAT. 2164

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

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

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

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

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

[[Page 2165]]
120 STAT. 2165

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

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

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

[[Page 2166]]
120 STAT. 2166

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

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

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

[[Page 2167]]
120 STAT. 2167

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

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

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

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

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

[[Page 2168]]
120 STAT. 2168

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

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

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

Subtitle B--Reserve Forces

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

Subtitle C--Authorization of Appropriations

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

Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

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

[[Page 2169]]
120 STAT. 2169

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

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

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

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

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

[[Page 2170]]
120 STAT. 2170

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

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

Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

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

(b) Adjustments.--The end strengths prescribed by subsection (a) for
the Selected Reserve of any reserve component shall be proportionately
reduced by--
(1) the total authorized strength of units organized to
serve as units of the Selected Reserve of such component which
are on active duty (other than for training) at the end of the
fiscal year; and

[[Page 2171]]
120 STAT. 2171

(2) the total number of individual members not in units
organized to serve as units of the Selected Reserve of such
component who are on active duty (other than for training or for
unsatisfactory participation in training) without their consent
at the end of the fiscal year.

Whenever such units or such individual members are released from active
duty during any fiscal year, the end strength prescribed for such fiscal
year for the Selected Reserve of such reserve component shall be
increased proportionately by the total authorized strengths of such
units and by the total number of such individual members.
SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF
THE RESERVES.

Within the end strengths prescribed in section 411(a), the reserve
components of the Armed Forces are authorized, as of September 30, 2007,
the following number of Reserves to be serving on full-time active duty
or full-time duty, in the case of members of the National Guard, for the
purpose of organizing, administering, recruiting, instructing, or
training the reserve components:
(1) The Army National Guard of the United States, 27,441.
(2) The Army Reserve, 15,416.
(3) The Navy Reserve, 12,564.
(4) The Marine Corps Reserve, 2,261.
(5) The Air National Guard of the United States, 13,291.
(6) The Air Force Reserve, 2,707.
SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL STATUS).

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

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

[[Page 2172]]
120 STAT. 2172

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

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

Subtitle C--Authorization of Appropriations

SEC. 421. MILITARY PERSONNEL.

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

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

TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Policy

Part I--Officer Personnel Policy Generally

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

Part II--Officer Promotion Policy

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

[[Page 2173]]
120 STAT. 2173

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

Part III--Joint Officer Management Requirements

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

Subtitle B--Reserve Component Matters

Part I--Reserve Component Management

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

Part II--Authorities Relating to Guard and Reserve Duty

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

Subtitle C--Education and Training

Part I--Service Academies

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

Part II--Scholarship and Financial Assistance Programs

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

Part III--Junior ROTC Program

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

Part IV--Other Education and Training Programs

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

[[Page 2174]]
120 STAT. 2174

Subtitle D--General Service Authorities

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

Subtitle E--Military Justice Matters

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

Subtitle F--Decorations and Awards

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

Subtitle G--Matters Relating to Casualties

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

Subtitle H--Impact Aid and Defense Dependents Education System

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

Subtitle I--Armed Forces Retirement Home

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

Subtitle J--Reports

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

[[Page 2175]]
120 STAT. 2175

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

Subtitle K--Other Matters

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

Subtitle A--Officer Personnel Policy

PART I--OFFICER PERSONNEL POLICY GENERALLY

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

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

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

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

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

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

[[Page 2176]]
120 STAT. 2176

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

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

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

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

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

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

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

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

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

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

[[Page 2177]]
120 STAT. 2177

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

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

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

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

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

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

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

[[Page 2178]]
120 STAT. 2178

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

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

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

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

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

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

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

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

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

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

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

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

[[Page 2179]]
120 STAT. 2179

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

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

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

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

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

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

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

[[Page 2180]]
120 STAT. 2180

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

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

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

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

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

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

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

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

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

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

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

[[Page 2181]]
120 STAT. 2181

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

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

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

PART II--OFFICER PROMOTION POLICY

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

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

[[Page 2182]]
120 STAT. 2182

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

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

[[Page 2183]]
120 STAT. 2183

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

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

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

[[Page 2184]]
120 STAT. 2184

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

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

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

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

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

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

[[Page 2185]]
120 STAT. 2185

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

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

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

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

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

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

[[Page 2186]]
120 STAT. 2186

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

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

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

[[Page 2187]]
120 STAT. 2187

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

PART III--JOINT OFFICER MANAGEMENT REQUIREMENTS

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

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

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

[[Page 2188]]
120 STAT. 2188

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

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

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

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

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

[[Page 2189]]
120 STAT. 2189

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

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

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

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

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

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

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

[[Page 2190]]
120 STAT. 2190

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

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

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

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

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

[[Page 2191]]
120 STAT. 2191

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

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

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

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

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

[[Page 2192]]
120 STAT. 2192

Subtitle B--Reserve Component Matters

PART I--RESERVE COMPONENT MANAGEMENT

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

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

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

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

[[Page 2193]]
120 STAT. 2193

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

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

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

PART II--AUTHORITIES RELATING TO GUARD AND RESERVE DUTY

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

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

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

[[Page 2194]]
120 STAT. 2194

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

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

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

[[Page 2195]]
120 STAT. 2195

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

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

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

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

[[Page 2196]]
120 STAT. 2196

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

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

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

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

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

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

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

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

[[Page 2197]]
120 STAT. 2197

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

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

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

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

[[Page 2198]]
120 STAT. 2198

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

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

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

Subtitle C--Education and Training

PART I--SERVICE ACADEMIES

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

(a) United States Military Academy.--

[[Page 2199]]
120 STAT. 2199

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

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

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

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

[[Page 2200]]
120 STAT. 2200

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

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

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

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

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


[[Page 2201]]
120 STAT. 2201

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

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

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

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

[[Page 2202]]
120 STAT. 2202

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

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

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

[[Page 2203]]
120 STAT. 2203

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

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

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

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

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

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

[[Page 2204]]
120 STAT. 2204

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

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

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

[[Page 2205]]
120 STAT. 2205

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

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

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

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

[[Page 2206]]
120 STAT. 2206

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

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

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

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

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

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

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

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

[[Page 2207]]
120 STAT. 2207

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

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

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

PART II--SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAMS

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

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

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

[[Page 2208]]
120 STAT. 2208

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

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

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

[[Page 2209]]
120 STAT. 2209

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

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

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

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

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

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

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

[[Page 2210]]
120 STAT. 2210

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

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

PART III--JUNIOR ROTC PROGRAM

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

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

``Sec. 2033. Instructor qualifications

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

[[Page 2211]]
120 STAT. 2211

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

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

``2033. Instructor qualifications.''.

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

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

[[Page 2212]]
120 STAT. 2212

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

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

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

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

[[Page 2213]]
120 STAT. 2213

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

PART IV--OTHER EDUCATION AND TRAINING PROGRAMS

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

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

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

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

[[Page 2214]]
120 STAT. 2214

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

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

Subtitle D--General Service Authorities

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

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

[[Page 2215]]
120 STAT. 2215

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

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

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

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

``Sec. 613a. Nondisclosure of board proceedings

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

[[Page 2216]]
120 STAT. 2216

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

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

``Sec. 14104. Nondisclosure of board proceedings

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

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

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

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

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

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

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

[[Page 2217]]
120 STAT. 2217

Subtitle E--Military Justice Matters

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

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

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

Subtitle F--Decorations and Awards

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

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

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

[[Page 2218]]
120 STAT. 2218

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

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

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

[[Page 2219]]
120 STAT. 2219

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

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

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

Subtitle G--Matters Relating to Casualties

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

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

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

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

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

[[Page 2220]]
120 STAT. 2220

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

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

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

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

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

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

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

[[Page 2221]]
120 STAT. 2221

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

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

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

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

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

[[Page 2222]]
120 STAT. 2222

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

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

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

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

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

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

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

(d) Activities of Center.--

[[Page 2223]]
120 STAT. 2223

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

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

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

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

[[Page 2224]]
120 STAT. 2224

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

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

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

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

[[Page 2225]]
120 STAT. 2225

Subtitle H--Impact Aid and Defense Dependents Education System

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

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

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

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

[[Page 2226]]
120 STAT. 2226

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

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

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

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

[[Page 2227]]
120 STAT. 2227

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

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

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

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

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

[[Page 2228]]
120 STAT. 2228

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

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

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

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

[[Page 2229]]
120 STAT. 2229

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

Subtitle I--Armed Forces Retirement Home

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

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

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

[[Page 2230]]
120 STAT. 2230

Subtitle J--Reports

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

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

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

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

[[Page 2231]]
120 STAT. 2231

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

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

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

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

[[Page 2232]]
120 STAT. 2232

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

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

Subtitle K--Other Matters

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

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

[[Page 2233]]
120 STAT. 2233

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

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

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

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

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

[[Page 2234]]
120 STAT. 2234

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

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

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

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

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

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

[[Page 2235]]
120 STAT. 2235

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

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

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

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

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

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

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

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

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

[[Page 2236]]
120 STAT. 2236

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

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

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

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

``Sec. 1222. Physical evaluation boards

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

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

[[Page 2237]]
120 STAT. 2237

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

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

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

``1222.  Physical evaluation boards.''.

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

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

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

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

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

[[Page 2238]]
120 STAT. 2238

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

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

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

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

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

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

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

[[Page 2239]]
120 STAT. 2239

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

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

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

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

Subtitle B--Bonuses and Special and Incentive Pays

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

Subtitle C--Travel and Transportation Allowances

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

Subtitle D--Retired Pay and Survivor Benefits

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

[[Page 2240]]
120 STAT. 2240

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

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

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

Subtitle F--Other Matters

Sec. 670. Limitations on terms of consumer credit extended to
servicemembers and dependents.
Sec. 671. Enhancement of authority to waive claims for overpayment of
pay and allowances and travel and transportation allowances.
Sec. 672. Exception for notice to consumer reporting agencies regarding
debts or erroneous payments pending a decision to waive,
remit, or cancel.
Sec. 673. Expansion and enhancement of authority to remit or cancel
indebtedness of members and former members of the Armed
Forces incurred on active duty.
Sec. 674. Phased recovery of overpayments of pay made to members of the
uniformed services.
Sec. 675. Joint family support assistance program.
Sec. 676. Special working group on transition to civilian employment of
National Guard and Reserve members returning from deployment
in Operation Iraqi Freedom or Operation Enduring Freedom.
Sec. 677. Audit of pay accounts of members of the Army evacuated from a
combat zone for inpatient care.
Sec. 678. Report on eligibility and provision of assignment incentive
pay.
Sec. 679. Sense of Congress calling for payment to World War II veterans
who survived Bataan Death March.

Subtitle A--Pay and Allowances

SEC. 601. NOTE: Effective dates. 37 USC 1009 note. FISCAL YEAR
2007 INCREASE IN MILITARY BASIC PAY AND
REFORM OF BASIC PAY RATES.

(a) Waiver of Section 1009 Adjustment.--The adjustment to become
effective during fiscal year 2007 required by section 1009 of title 37,
United States Code, in the rates of monthly basic pay authorized members
of the uniformed services shall not be made.
(b) January 1, 2007, Increase in Basic Pay.--Effective on January 1,
2007, the rates of monthly basic pay for members of the uniformed
services are increased by 2.2 percent.
(c) Reform of Basic Pay Rates.--Effective on April 1, 2007, the
rates of monthly basic pay for members of the uniformed services within
each pay grade (and with years of service computed under section 205 of
title 37, United States Code) are as follows:

COMMISSIONED OFFICERS1
----------------------------------------------------------------------------------------------------------------
Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
----------------------------------------------------------------------------------------------------------------
O-8                                             8,453.10      8,729.70      8,913.60      8,964.90      9,194.10
O-7                                             7,023.90      7,350.00      7,501.20      7,621.20      7,838.40
O-6                                             5,206.20      5,719.20      6,094.50      6,094.50      6,117.60
O-5                                             4,339.80      4,888.80      5,227.50      5,291.10      5,502.00
O-4                                             3,744.60      4,334.70      4,623.90      4,688.40      4,956.90
O-3 3                                           3,292.20      3,732.30      4,028.40      4,392.00      4,602.00

[[Page 2241]]
120 STAT. 2241


O-2 3                                           2,844.30      3,239.70      3,731.40      3,857.40      3,936.60
O-1 3                                           2,469.30      2,569.80      3,106.50      3,106.50      3,106.50
---------------------------------------------------------------------
Over 8        Over 10       Over 12       Over 14       Over 16
---------------------------------------------------------------------
O-8                                             9,577.20      9,666.30     10,030.20     10,134.30     10,447.80
O-7                                             8,052.90      8,301.30      8,548.80      8,797.20      9,577.20
O-6                                             6,380.10      6,414.60      6,414.60      6,779.10      7,423.80
O-5                                             5,628.60      5,906.40      6,110.10      6,373.20      6,776.40
O-4                                             5,244.60      5,602.80      5,882.40      6,076.20      6,187.50
O-3 3                                           4,833.00      4,982.70      5,228.40      5,355.90      5,355.90
O-2 3                                           3,936.60      3,936.60      3,936.60      3,936.60      3,936.60
O-1 3                                           3,106.50      3,106.50      3,106.50      3,106.50      3,106.50
---------------------------------------------------------------------
Over 18       Over 20       Over 22       Over 24       Over 26
---------------------------------------------------------------------
O-10 2                                             $0.00    $13,659.00    $13,725.90    $14,011.20    $14,508.60
O-9                                                 0.00     11,946.60     12,118.50     12,367.20     12,801.30
O-8                                            10,900.80     11,319.00     11,598.30     11,598.30     11,598.30
O-7                                            10,236.00     10,236.00     10,236.00     10,236.00     10,287.90
O-6                                             7,802.10      8,180.10      8,395.20      8,613.00      9,035.70
O-5                                             6,968.10      7,158.00      7,373.10      7,373.10      7,373.10
O-4                                             6,252.30      6,252.30      6,252.30      6,252.30      6,252.30
O-3 3                                           5,355.90      5,355.90      5,355.90      5,355.90      5,355.90
O-2 3                                           3,936.60      3,936.60      3,936.60      3,936.60      3,936.60
O-1 3                                           3,106.50      3,106.50      3,106.50      3,106.50      3,106.50
---------------------------------------------------------------------
Over 28       Over 30       Over 32       Over 34       Over 36
---------------------------------------------------------------------
O-10 2                                        $14,508.60    $15,234.00    $15,234.00    $15,995.70    $15,995.70
O-9                                            12,801.30     13,441.50     13,441.50     14,113.50     14,113.50
O-8                                            11,598.30     11,888.40     11,888.40     12,185.70     12,185.70
O-7                                            10,287.90     10,493.70     10,493.70     10,493.70     10,493.70
O-6                                             9,035.70      9,216.30      9,216.30      9,216.30      9,216.30
O-5                                             7,373.10      7,373.10      7,373.10      7,373.10      7,373.10
O-4                                             6,252.30      6,252.30      6,252.30      6,252.30      6,252.30
O-3 3                                           5,355.90      5,355.90      5,355.90      5,355.90      5,355.90
O-2 3                                           3,936.60      3,936.60      3,936.60      3,936.60      3,936.60
O-1 3                                           3,106.50      3,106.50      3,106.50      3,106.50      3,106.50
---------------------------------------------------------------------
Over 38       Over 40
---------------------------------------------------------------------
O-10 2                                        $16,795.50    $16,795.50
O-9                                            14,819.10     14,819.10
O-8                                            12,185.70     12,185.70
O-7                                            10,493.70     10,493.70
O-6                                             9,216.30      9,216.30
O-5                                             7,373.10      7,373.10
O-4                                             6,252.30      6,252.30
O-3 3                                           5,355.90      5,355.90
O-2 3                                           3,936.60      3,936.60
O-1 3                                           3,106.50      3,106.50
----------------------------------------------------------------------------------------------------------------
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for commissioned
oficers in pay grades 0-7 through 0-10 may not exceed the rate of pay for level II of the Executive Schedule
and the actual rate of basic pay for all other officers may not exceed the rate of pay for level V of the
Executive Schedule.
2 Subject to the preceding footnote, while serving as Chairman or Vice Chairman of the Joint Chiefs of Staff,
Chief of Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air Force, Commandant of the
Marine Corps, Commandant of the Coast Guard, or commander of a unified or specified combatant command (as
defined in section 161(c) of title 10, United States Code), basic pay for this grade is $17,972.10, regardless
of cumulative years of service computed under section 205 of title 37, United States Code.
3 This table does not apply to commissioned officers in pay grade O-1, O-2, or O-3 who have been credited with
over 4 years of active duty service as an enlisted member or warrant officer.





[[Page 2242]]
120 STAT. 2242



COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER
----------------------------------------------------------------------------------------------------------------
Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
----------------------------------------------------------------------------------------------------------------
O-3E                                               $0.00         $0.00         $0.00     $4,392.00     $4,602.00
O-2E                                                0.00          0.00          0.00      3,857.40      3,936.60
O-1E                                                0.00          0.00          0.00      3,106.50      3,317.70
---------------------------------------------------------------------
Over 8        Over 10       Over 12       Over 14       Over 16
---------------------------------------------------------------------
O-3E                                           $4,833.00     $4,982.70     $5,228.40     $5,435.40     $5,554.20
O-2E                                            4,062.00      4,273.50      4,437.00      4,558.80      4,558.80
O-1E                                            3,440.10      3,565.50      3,688.80      3,857.40      3,857.40
---------------------------------------------------------------------
Over 18       Over 20       Over 22       Over 24       Over 26
---------------------------------------------------------------------
O-3E                                           $5,715.90     $5,715.90     $5,715.90     $5,715.90     $5,715.90
O-2E                                            4,558.80      4,558.80      4,558.80      4,558.80      4,558.80
O-1E                                            3,857.40      3,857.40      3,857.40      3,857.40      3,857.40
---------------------------------------------------------------------
Over 28       Over 30       Over 32       Over 34       Over 36
---------------------------------------------------------------------
O-3E                                           $5,715.90     $5,715.90     $5,715.90     $5,715.90     $5,715.90
O-2E                                            4,558.80      4,558.80      4,558.80      4,558.80      4,558.80
O-1E                                            3,857.40      3,857.40      3,857.40      3,857.40      3,857.40
---------------------------------------------------------------------
Over 38       Over 40
---------------------------------------------------------------------
O-3E                                           $5,715.90     $5,715.90
O-2E                                            4,558.80      4,558.80
O-1E                                            3,857.40      3,857.40
----------------------------------------------------------------------------------------------------------------





[[Page 2243]]
120 STAT. 2243



WARRANT OFFICERS 1
----------------------------------------------------------------------------------------------------------------
Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
----------------------------------------------------------------------------------------------------------------
W-5                                                $0.00         $0.00         $0.00         $0.00         $0.00
W-4                                             3,402.00      3,660.00      3,765.00      3,868.50      4,046.40
W-3                                             3,106.80      3,236.40      3,369.00      3,412.80      3,552.00
W-2                                             2,749.20      3,009.30      3,089.40      3,144.60      3,322.80
W-1                                             2,413.20      2,672.40      2,742.90      2,890.50      3,065.10
---------------------------------------------------------------------
Over 8        Over 10       Over 12       Over 14       Over 16
---------------------------------------------------------------------
W-5                                                $0.00         $0.00         $0.00         $0.00         $0.00
W-4                                             4,222.20      4,400.70      4,669.20      4,904.40      5,128.20
W-3                                             3,825.90      4,110.90      4,245.30      4,400.40      4,560.30
W-2                                             3,600.00      3,737.10      3,872.40      4,037.70      4,166.70
W-1                                             3,322.20      3,442.20      3,610.20      3,775.50      3,905.10
---------------------------------------------------------------------
Over 18       Over 20       Over 22       Over 24       Over 26
---------------------------------------------------------------------
W-5                                                $0.00     $6,049.50     $6,356.40     $6,585.00     $6,838.20
W-4                                             5,310.90      5,489.70      5,752.20      5,967.60      6,213.60
W-3                                             4,847.70      5,042.40      5,158.50      5,282.10      5,450.10
W-2                                             4,284.00      4,423.80      4,515.90      4,589.40      4,589.40
W-1                                             4,024.50      4,170.00      4,170.00      4,170.00      4,170.00
---------------------------------------------------------------------
Over 28       Over 30       Over 32       Over 34       Over 36
---------------------------------------------------------------------
W-5                                            $6,838.20     $7,180.20     $7,180.20     $7,539.30     $7,539.30
W-4                                             6,213.60      6,337.80      6,337.80      6,337.80      6,337.80
W-3                                             5,450.10      5,450.10      5,450.10      5,450.10      5,450.10
W-2                                             4,589.40      4,589.40      4,589.40      4,589.40      4,589.40
W-1                                             4,170.00      4,170.00      4,170.00      4,170.00      4,170.00
---------------------------------------------------------------------
Over 38       Over 40
---------------------------------------------------------------------
W-5                                            $7,916.40     $7,916.40
W-4                                             6,337.80      6,337.80
W-3                                             5,450.10      5,450.10
W-2                                             4,589.40      4,589.40
W-1                                             4,170.00      4,170.00
----------------------------------------------------------------------------------------------------------------
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for warrant officers
may not exceed the rate of pay for level V of the Executive Schedule.





[[Page 2244]]
120 STAT. 2244



ENLISTED MEMBERS 1
----------------------------------------------------------------------------------------------------------------
Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
----------------------------------------------------------------------------------------------------------------
E-9 2                                              $0.00         $0.00         $0.00         $0.00         $0.00
E-8                                                 0.00          0.00          0.00          0.00          0.00
E-7                                             2,339.10      2,553.00      2,650.80      2,780.70      2,881.50
E-6                                             2,023.20      2,226.00      2,324.40      2,419.80      2,519.40
E-5                                             1,854.00      1,977.90      2,073.30      2,171.40      2,323.80
E-4                                             1,699.50      1,786.50      1,883.10      1,978.50      2,062.80
E-3                                             1,534.20      1,630.80      1,729.20      1,729.20      1,729.20
E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
E-1 3                                           1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
---------------------------------------------------------------------
Over 8        Over 10       Over 12       Over 14       Over 16
---------------------------------------------------------------------
E-9 2                                              $0.00     $4,110.60     $4,203.90     $4,321.20     $4,459.50
E-8                                             3,364.80      3,513.90      3,606.00      3,716.40      3,835.80
E-7                                             3,055.20      3,152.70      3,326.70      3,471.00      3,569.70
E-6                                             2,744.10      2,831.40      3,000.00      3,051.90      3,089.70
E-5                                             2,483.70      2,613.90      2,630.10      2,630.10      2,630.10
E-4                                             2,062.80      2,062.80      2,062.80      2,062.80      2,062.80
E-3                                             1,729.20      1,729.20      1,729.20      1,729.20      1,729.20
E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
E-1 3                                           1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
---------------------------------------------------------------------
Over 18       Over 20       Over 22       Over 24       Over 26
---------------------------------------------------------------------
E-9 2                                          $4,598.40     $4,821.60     $5,010.30     $5,209.20     $5,512.80
E-8                                             4,051.80      4,161.30      4,347.30      4,450.50      4,704.90
E-7                                             3,674.40      3,715.50      3,852.00      3,925.20      4,204.20
E-6                                             3,133.50      3,133.50      3,133.50      3,133.50      3,133.50
E-5                                             2,630.10      2,630.10      2,630.10      2,630.10      2,630.10
E-4                                             2,062.80      2,062.80      2,062.80      2,062.80      2,062.80
E-3                                             1,729.20      1,729.20      1,729.20      1,729.20      1,729.20
E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
E-1 3                                           1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
---------------------------------------------------------------------
Over 28       Over 30       Over 32       Over 34       Over 36
---------------------------------------------------------------------
E-9 2                                          $5,512.80     $5,788.50     $5,788.50     $6,078.00     $6,078.00
E-8                                             4,704.90      4,799.10      4,799.10      4,799.10      4,799.10
E-7                                             4,204.20      4,204.20      4,204.20      4,204.20      4,204.20
E-6                                             3,133.50      3,133.50      3,133.50      3,133.50      3,133.50
E-5                                             2,630.10      2,630.10      2,630.10      2,630.10      2,630.10
E-4                                             2,062.80      2,062.80      2,062.80      2,062.80      2,062.80
E-3                                             1,729.20      1,729.20      1,729.20      1,729.20      1,729.20
E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
E-1                                             1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
---------------------------------------------------------------------
Over 38       Over 40
---------------------------------------------------------------------
E-9 2                                          $6,381.90     $6,381.90
E-8                                             4,799.10      4,799.10
E-7                                             4,204.20      4,204.20
E-6                                             3,133.50      3,133.50
E-5                                             2,630.10      2,630.10
E-4                                             2,062.80      2,062.80
E-3                                             1,729.20      1,729.20
E-2                                             1,458.90      1,458.90
E-1                                             1,301.40      1,301.40
----------------------------------------------------------------------------------------------------------------
1 Notwithstanding the pay rates specified in this table, the actual basic pay for enlisted members may not
exceed the rate of pay for level V of the Executive Schedule.

[[Page 2245]]
120 STAT. 2245


2 Subject to the preceding footnote, the rate of basic pay for an enlisted member in this grade while serving as
Sergeant Major of the Army, Master Chief Petty Officer of the Navy, Chief Master Sergeant of the Air Force,
Sergeant Major of the Marine Corps, Master Chief Petty Officer of the Coast Guard, or Senior Enlisted Advisor
to the Chairman of the Joint Chiefs of Staff is $6,642.60, regardless of cumulative years of service computed
under section 205 of title 37, United States Code.
3 In the case of members in pay grade E-1 who have served less than 4 months on active duty, the rate of basic
pay is $1,203.90.


SEC. 602. INCREASE IN MAXIMUM RATE OF BASIC PAY FOR GENERAL AND
FLAG OFFICER GRADES TO CONFORM TO INCREASE
IN PAY CAP FOR SENIOR EXECUTIVE SERVICE
PERSONNEL.

(a) Increase.--Section 203(a)(2) of title 37, United States Code, is
amended by striking ``level III of the Executive Schedule'' and
inserting ``level II of the Executive Schedule''.
(b) NOTE: 37 USC 203 note. Effective Date.--The amendment made
by subsection (a) shall take effect on January 1, 2007, and shall apply
with respect to months beginning on or after that date.
SEC. 603. ONE-YEAR EXTENSION OF PROHIBITION AGAINST REQUIRING
CERTAIN INJURED MEMBERS TO PAY FOR MEALS
PROVIDED BY MILITARY TREATMENT FACILITIES.

(a) Extension.--Section 402(h)(3) of title 37, United States Code,
is amended by striking ``December 31, 2006'' and inserting ``December
31, 2007''.
(b) Report on Administration of Prohibition.--Not later than
February 1, 2007, the Secretary of Defense shall submit to the
congressional defense committees a report on the administration of
section 402(h) of title 37, United States Code. The report shall
include--
(1) a description and assessment of the mechanisms used by
the military departments to implement the prohibition contained
in such section; and
(2) such recommendations as the Secretary considers
appropriate regarding making such prohibition permanent.
SEC. 604. AVAILABILITY OF SECOND BASIC ALLOWANCE FOR HOUSING FOR
CERTAIN RESERVE COMPONENT OR RETIRED
MEMBERS SERVING IN SUPPORT OF CONTINGENCY
OPERATIONS.

(a) Availability.--Section 403(g) of title 37, United States Code,
is amended--
(1) by redesignating paragraphs (2), (3), and (4) as
paragraphs (3), (4), and (5), respectively;
(2) by inserting after paragraph (1) the following new
paragraph (2):

``(2) The Secretary concerned may provide a basic allowance for
housing to a member described in paragraph (1) at a monthly rate equal
to the rate of the basic allowance for housing established under
subsection (b) or the overseas basic allowance for housing established
under subsection (c), whichever applies to the location at which the
member is serving, for members in the same grade at that location
without dependents. The member may receive both a basic allowance for
housing under paragraph (1) and under this paragraph for the same month,
but may not receive the portion of the allowance authorized under
section 404 of this title, if any, for lodging expenses if a basic
allowance for housing is provided under this paragraph.''; and
(3) in paragraph (3), as so redesignated, by striking
``Paragraph (1)'' and inserting ``Paragraphs (1) and (2)''.

[[Page 2246]]
120 STAT. 2246

(b) NOTE: 37 USC 403 note. Effective Date.--Paragraph (2) of
section 403(g) of title 37, United States Code, as added by subsection
(a), shall apply with respect to months beginning on or after October 1,
2006.
SEC. 605. EXTENSION OF TEMPORARY CONTINUATION OF HOUSING ALLOWANCE
FOR DEPENDENTS OF MEMBERS DYING ON ACTIVE
DUTY TO SPOUSES WHO ARE ALSO MEMBERS.

(a) Extension.--Section 403(l) of title 37, United States Code, is
amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following new
paragraph:

``(3) An allowance may be paid under paragraph (2) to the spouse of
the deceased member even though the spouse is also a member of the
uniformed services. The allowance paid under such paragraph is in
addition to any other pay and allowances to which the spouse is entitled
as a member.''.
(b) NOTE: 37 USC 403 note. Effective Date.--
(1) General rule.--The amendments made by subsection (a)
shall take effect on October 1, 2006.
(2) Transitional rule.--After October 1, 2006, the Secretary
of Defense, and the Secretary of Homeland Security in the case
of the Coast Guard, may pay the allowance authorized by section
403(l)(2) of title 37, United States Code, to a member of the
uniformed services who is the spouse of a member who died on
active duty during the one-year period ending on that date,
except that the payment of the allowance must terminate within
365 days after the date of the member's death.
SEC. 606. PAYMENT OF FULL PREMIUM FOR COVERAGE UNDER
SERVICEMEMBERS' GROUP LIFE INSURANCE
PROGRAM DURING SERVICE IN OPERATION
ENDURING FREEDOM OR OPERATION IRAQI
FREEDOM.

(a) Enhanced Allowance To Cover SGLI Deductions.--Subsection (a)(1)
of section 437 of title 37, United States Code, is amended by striking
``for the first $150,000'' and all that follows through ``of such
title'' and inserting ``for the amount of Servicemembers' Group Life
Insurance coverage held by the member under section 1967 of such
title''.
(b) Conforming Amendments.--Such section is further amended--
(1) in subsection (a)--
(A) by striking ``(1)'' before ``in the case of'';
and
(B) by striking paragraph (2);
(2) by striking subsection (b); and
(3) by redesignating subsection (c) as subsection (b) and in
paragraph (2) of that subsection by striking ``coverage amount
specified in subsection (a)(1) or in effect pursuant to
subsection (b),'' and inserting ``maximum coverage amount
available for such insurance,''.

(c) Clerical Amendments.--The heading for such section, and the item
relating to such section in the table of sections at the beginning of
chapter 7 of such title, are each amended by striking the fourth and
fifth words.
(d) NOTE: 37 USC 403 note. Effective Date.--The amendments made
by this section shall take effect on the first day of the first month
beginning on or after the date of the enactment of this Act and shall
apply


[[Page 2247]]
120 STAT. 2247

with respect to service by members of the Armed Forces in the theater of
operations for Operation Enduring Freedom or Operation Iraqi Freedom for
months beginning on or after that date.
SEC. 607. CLARIFICATION OF EFFECTIVE DATE OF PROHIBITION ON
COMPENSATION FOR CORRESPONDENCE COURSES.

Section 206(d) of title 37, United States Code, is amended by adding
at the end the following new paragraph:
``(3) The prohibition in paragraph (1), including the prohibition as
it relates to a member of the National Guard while not in Federal
service, applies to--
``(A) any work or study performed on or after September 7,
1962, unless that work or study is specifically covered by the
exception in paragraph (2); and
``(B) any claim based on that work or study arising after
that date.''.
SEC. 608. EXTENSION OF PILOT PROGRAM ON CONTRIBUTIONS TO THRIFT
SAVINGS PLAN FOR INITIAL ENLISTEES IN THE
ARMY.

(a) Extension.--Subsection (a) of section 606 of the National
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119
Stat. 3287; 37 U.S.C. 211 note) is amended by striking ``During fiscal
year 2006'' and inserting ``During the period beginning on January 6,
2006, and ending on December 31, 2008''.
(b) Report Date.--Subsection (d)(1) of such section is amended by
striking ``February 1, 2007'' and inserting ``February 1, 2008''.

Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. EXTENSION OF CERTAIN BONUS AND SPECIAL PAY AUTHORITIES
FOR RESERVE FORCES.

(a) Selected Reserve Reenlistment Bonus.--Section 308b(g) of title
37, United States Code, is amended by striking ``December 31, 2006'' and
inserting ``December 31, 2007''.
(b) Selected Reserve Affiliation or Enlistment Bonus.--Section
308c(i) of such title is amended by striking ``December 31, 2006'' and
inserting ``December 31, 2007''.
(c) Special Pay for Enlisted Members Assigned to Certain High
Priority Units.--Section 308d(c) of such title is amended by striking
``December 31, 2006'' and inserting ``December 31, 2007''.
(d) Ready Reserve Enlistment Bonus for Persons Without Prior
Service.--Section 308g(f)(2) of such title is amended by striking
``December 31, 2006'' and inserting ``December 31, 2007''.
(e) Ready Reserve Enlistment and Reenlistment Bonus for Persons With
Prior Service.--Section 308h(e) of such title is amended by striking
``December 31, 2006'' and inserting ``December 31, 2007''.
(f) Selected Reserve Enlistment Bonus for Persons With Prior
Service.--Section 308i(f) of such title is amended by striking
``December 31, 2006'' and inserting ``December 31, 2007''.

[[Page 2248]]
120 STAT. 2248

SEC. 612. EXTENSION OF CERTAIN BONUS AND SPECIAL PAY AUTHORITIES
FOR HEALTH CARE PROFESSIONALS.

(a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1)
of title 10, United States Code, is amended by striking ``December 31,
2006'' and inserting ``December 31, 2007''.
(b) Repayment of Education Loans for Certain Health Professionals
Who Serve in the Selected Reserve.--Section 16302(d) of such title is
amended by striking ``January 1, 2007'' and inserting ``January 1,
2008''.
(c) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of
title 37, United States Code, is amended by striking ``December 31,
2006'' and inserting ``December 31, 2007''.
(d) Incentive Special Pay for Nurse Anesthetists.--Section
302e(a)(1) of such title is amended by striking ``December 31, 2006''
and inserting ``December 31, 2007''.
(e) Special Pay for Selected Reserve Health Professionals in
Critically Short Wartime Specialties.--Section 302g(e) of such title is
amended by striking ``December 31, 2006'' and inserting ``December 31,
2007''.
(f) Accession Bonus for Dental Officers.--Section 302h(a)(1) of such
title is amended by striking ``December 31, 2006'' and inserting
``December 31, 2007''.
(g) Accession Bonus for Pharmacy Officers.--Section 302j(a) of such
title is amended by striking ``December 31, 2006'' and inserting
``December 31, 2007''.
SEC. 613. EXTENSION OF SPECIAL PAY AND BONUS AUTHORITIES FOR
NUCLEAR OFFICERS.

(a) Special Pay for Nuclear-Qualified Officers Extending Period of
Active Service.--Section 312(e) of title 37, United States Code, is
amended by striking ``December 31, 2006'' and inserting ``December 31,
2007''.
(b) Nuclear Career Accession Bonus.--Section 312b(c) of such title
is amended by striking ``December 31, 2006'' and inserting ``December
31, 2007''.
(c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such
title is amended by striking ``December 31, 2006'' and inserting
``December 31, 2007''.
SEC. 614. EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF OTHER
BONUSES AND SPECIAL PAYS.

(a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37,
United States Code, is amended by striking ``December 31, 2006'' and
inserting ``December 31, 2007''.
(b) Assignment Incentive Pay.--Section 307a(g) of such title is
amended by striking ``December 31, 2007'' and inserting ``December 31,
2008''.
(c) Reenlistment Bonus for Active Members.--Section 308(g) of such
title is amended by striking ``December 31, 2006'' and inserting
``December 31, 2007''.
(d) Enlistment Bonus.--Section 309(e) of such title is amended by
striking ``December 31, 2006'' and inserting ``December 31, 2007''.
(e) Retention Bonus for Members With Critical Military Skills or
Assigned to High Priority Units.--Section 323(i) of such title is
amended by striking ``December 31, 2006'' and inserting ``December 31,
2007''.

[[Page 2249]]
120 STAT. 2249

(f) Accession Bonus for New Officers in Critical Skills.--Section
324(g) of such title is amended by striking ``December 31, 2006'' and
inserting ``December 31, 2007''.
(g) Incentive Bonus for Conversion to Military Occupational
Specialty to Ease Personnel Shortage.--Section 326(g) of such title is
amended by striking ``December 31, 2006'' and inserting ``December 31,
2007''.
(h) Incentive Bonus for Transfer Between the Armed Forces.--Section
327(h) of such title is amended by striking ``December 31, 2006'' and
inserting ``December 31, 2009''.
SEC. 615. EXPANSION OF ELIGIBILITY OF DENTAL OFFICERS FOR
ADDITIONAL SPECIAL PAY.

(a) Repeal of Internship and Residency Exception.--Section
302b(a)(4) of title 37, United States Code, is amended by striking the
first sentence and inserting the following new sentence: ``An officer
who is entitled to variable special pay under paragraph (2) or (3) is
also entitled to additional special pay for any 12-month period during
which an agreement executed under subsection (b) is in effect with
respect to the officer.''.
(b) NOTE: 37 USC 302b note. Effective Date.--The amendment made
by this section shall take effect on October 1, 2006.
SEC. 616. INCREASE IN MAXIMUM ANNUAL RATE OF SPECIAL PAY FOR
SELECTED RESERVE HEALTH CARE PROFESSIONALS
IN CRITICALLY SHORT WARTIME SPECIALTIES.

(a) Increase.--Section 302g(a) of title 37, United States Code, is
amended by striking ``$10,000'' and inserting ``$25,000''.
(b) NOTE: 37 USC 302g note. Effective Date.--The amendment made
by subsection (a) shall take effect on October 1, 2006, and shall apply
to agreements entered into or revised under section 302g of title 37,
United States Code, on or after that date.
SEC. 617. EXPANSION AND ENHANCEMENT OF ACCESSION BONUS AUTHORITIES
FOR CERTAIN OFFICERS IN HEALTH CARE
SPECIALITIES.

(a) Increase in Maximum Amount of Accession Bonus for Dental
Officers.--Section 302h(a)(2) of title 37, United States Code, is
amended by striking ``$30,000'' and inserting ``$200,000''.
(b) Accession Bonus for Medical Officers in Critically Short Wartime
Specialities.--Chapter 5 of title 37, United States Code, is amended by
inserting after section 302j the following new section:

``Sec. 302k. Special pay: accession bonus for medical officers in
critically short wartime specialties

``(a) Accession Bonus Authorized.--A person who is a graduate of an
accredited school of medicine or osteopathy in a specialty designated by
regulations as a critically short wartime specialty and who executes a
written agreement described in subsection (d) to accept a commission as
an officer of the armed forces and remain on active duty for a period of
not less than four consecutive years may, upon the acceptance of the
agreement by the Secretary concerned, be paid an accession bonus in the
amount determined by the Secretary concerned.
``(b) Amount of Bonus.--The amount of an accession bonus under
subsection (a) may not exceed $400,000.

[[Page 2250]]
120 STAT. 2250

``(c) Limitation on Eligibility for Bonus.--A person may not be paid
a bonus under subsection (a) if--
``(1) the person, in exchange for an agreement to accept an
appointment as an officer, received financial assistance from
the Department of Defense to pursue a course of study in
medicine or osteopathy; or
``(2) the Secretary concerned determines that the person is
not qualified to become and remain certified as a doctor or
osteopath in a specialty designated by regulations as a
critically short wartime specialty.

``(d) Agreement.--The agreement referred to in subsection (a) shall
provide that, consistent with the needs of the armed force concerned,
the person executing the agreement will be assigned to duty, for the
period of obligated service covered by the agreement, as an officer of
the Medical Corps of the Army or the Navy or as an officer of the Air
Force designated as a medical officer in a specialty designated by
regulations as a critically short wartime specialty.
``(e) Repayment.--A person who, after executing an agreement under
subsection (a) is not commissioned as an officer of the armed forces,
does not become licensed as a doctor or osteopath, as the case may be,
or does not complete the period of active duty in a specialty specified
in the agreement, shall be subject to the repayment provisions of
section 303a(e) of this title.
``(f) Termination of Authority.--No agreement under this section may
be entered into after December 31, 2007.''.
(c) Accession Bonus for Dental Specialist Officers in Critically
Short Wartime Specialities.--Such chapter is further amended by
inserting after section 302k, as added by subsection (b), the following
new section:

``Sec. 302l. Special pay: accession bonus for dental specialist officers
in critically short wartime specialties

``(a) Accession Bonus Authorized.--A person who is a graduate of an
accredited dental school in a specialty designated by regulations as a
critically short wartime specialty and who executes a written agreement
described in subsection (d) to accept a commission as an officer of the
armed forces and remain on active duty for a period of not less than
four consecutive years may, upon the acceptance of the agreement by the
Secretary concerned, be paid an accession bonus in the amount determined
by the Secretary concerned.
``(b) Amount of Bonus.--The amount of an accession bonus under
subsection (a) may not exceed $400,000.
``(c) Limitation on Eligibility for Bonus.--A person may not be paid
a bonus under subsection (a) if--
``(1) the person, in exchange for an agreement to accept an
appointment as an officer, received financial assistance from
the Department of Defense to pursue a course of study in
dentistry; or
``(2) the Secretary concerned determines that the person is
not qualified to become and remain certified as a dentist in a
specialty designated by regulations as a critically short
wartime specialty.

``(d) Agreement.--The agreement referred to in subsection (a) shall
provide that, consistent with the needs of the armed force concerned,
the person executing the agreement will be assigned

[[Page 2251]]
120 STAT. 2251

to duty, for the period of obligated service covered by the agreement,
as an officer of the Dental Corps of the Army or the Navy or as an
officer of the Air Force designated as a dental officer in a specialty
designated by regulations as a critically short wartime specialty.
``(e) Repayment.--A person who, after executing an agreement under
subsection (a) is not commissioned as an officer of the armed forces,
does not become licensed as a dentist, or does not complete the period
of active duty in a specialty specified in the agreement, shall be
subject to the repayment provisions of section 303a(e) of this title.
``(f) Coordination With Other Accession Bonus Authority.--A person
eligible to execute an agreement under both subsection (a) and section
302h of this title shall elect which authority to execute the agreement
under. A person may not execute an agreement under both subsection (a)
and such section 302h.
``(g) Termination of Authority.--No agreement under this section may
be entered into after December 31, 2007.''.
(d) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
302j the following new items:

``302k. Special pay: accession bonus for medical officers in critically
short wartime specialties.
``302l. Special pay: accession bonus for dental specialist officers in
critically short wartime specialties.''.

(e) NOTE: 37 USC 302h note. Effective Date.--The amendments made
by this section shall take effect on October 1, 2006, and shall apply to
agreements--
(1) entered into or revised under section 302h of title 37,
United States Code, on or after that date; or
(2) entered into under section 302k or 302l of such title,
as added by subsections (b) and (c), on or after that date.
SEC. 618. AUTHORITY TO PROVIDE LUMP SUM PAYMENT OF NUCLEAR OFFICER
INCENTIVE PAY.

(a) Lump Sum Payment Option.--Subsection (a) of section 312 of title
37, United States Code, is amended in the matter after paragraph (3)--
(1) by striking ``in equal annual installments'' and
inserting ``in a single lump-sum or in annual installments of
equal or different amounts''; and
(2) by striking ``with the number of installments being
equal to the number of years covered by the contract plus one''
and inserting ``and, if the special pay will be paid in annual
installments, the number of installments may not exceed the
number of years covered by the agreement plus one''.

(b) Stylistic and Conforming Amendments.--Such section is further
amended--
(1) by redesignating subsections (b) through (e) as
subsections (c) through (f), respectively;
(2) in subsection (a)--
(A) by striking ``an officer'' in the matter before
paragraph (1) and inserting ``the Secretary may pay
special pay under subsection (b) to an officer'';
(B) by striking the comma at the end of paragraph
(3) and inserting a period;

[[Page 2252]]
120 STAT. 2252

(C) by striking ``may, upon'' and all that follows
through ``The Secretary of the Navy shall'' and
inserting the following:

``(b) Payment Amount; Payment Options.--(1) The total amount paid to
an officer under an agreement under subsection (a) or (e)(1) may not
exceed $30,000 for each year of the active-service agreement. Amounts
paid under the agreement are in addition to all other compensation to
which the officer is entitled.
``(2) The Secretary shall'';
(D) by striking ``Upon acceptance of the agreement
by the Secretary or his designee'' and inserting the
following:

``(3) Upon acceptance of an agreement under subsection (a) or (e)(1)
by the Secretary''; and
(E) by striking ``The Secretary (or his designee)''
and inserting the following:

``(4) The Secretary'';
(3) in subsection (c), as redesignated by paragraph (1), by
striking ``subsection (a) or subsection (d)(1)'' and inserting
``subsection (b) or (e)(1)''; and
(4) in the first sentence of subsection (e)(1), as
redesignated by paragraph (1)--
(A) by striking ``such subsection'' and inserting
``subsection (b)''; and
(B) by striking ``that subsection'' and inserting
``this subsection''.

(c) Stylistic Amendments.--Such section is further amended--
(1) in subsection (a), by inserting ``Special Pay
Authorized; Eligibility.--'' after ``(a)'';
(2) in subsection (c), as redesignated by subsection (b)(1),
by inserting ``Repayment.--'' after ``(c)'';
(3) in subsection (d), as redesignated by subsection (b)(1),
by inserting ``Relation to Service Obligation.--'' after
``(d)'';
(4) in subsection (e), as redesignated by subsection (b)(1),
by inserting ``New Agreement.--'' after ``(e)''; and
(5) in subsection (f), as redesignated by subsection (b)(1),
by inserting ``Duration of Authority.--'' after ``(f)''.
SEC. 619. INCREASE IN MAXIMUM AMOUNT OF NUCLEAR CAREER ACCESSION
BONUS.

(a) Increase.--Section 312b(a)(1) of title 37, United States Code,
is amended by striking ``$20,000'' and inserting ``$30,000''.
(b) NOTE: 37 USC 312b note. Effective Date.--The amendment made
by subsection (a) shall take effect on October 1, 2006, and shall apply
to agreements entered into or revised under section 312b of title 37,
United States Code, on or after that date.
SEC. 620. INCREASE IN MAXIMUM AMOUNT OF INCENTIVE BONUS FOR
TRANSFER BETWEEN ARMED FORCES.

(a) Increase.--Section 327(d)(1) of title 37, United States Code, is
amended by striking ``$2,500'' and inserting ``$10,000''.
(b) NOTE: 37 USC 327 note. Effective Date.--The amendment made
by subsection (a) shall take effect on October 1, 2006, and shall apply
to agreements entered into or revised under section 327 of title 37,
United States Code, on or after that date.

[[Page 2253]]
120 STAT. 2253

SEC. 621. ADDITIONAL AUTHORITIES AND INCENTIVES TO ENCOURAGE
RETIRED MEMBERS AND RESERVE COMPONENT
MEMBERS TO VOLUNTEER TO SERVE ON ACTIVE
DUTY IN HIGH-DEMAND, LOW-DENSITY
ASSIGNMENTS.

(a) Authority To Offer Incentive Bonus.--Chapter 5 of title 37,
United States Code, is amended by adding at the end the following new
section:

``Sec. 329. Incentive bonus: retired members and reserve component
members volunteering for high-demand, low-
density assignments

``(a) Incentive Bonus Authorized.--The Secretary of Defense may pay
a bonus under this section to a retired member or former member of the
Army, Navy, Air Force, or Marine Corps or to a member of a reserve
component of the Army, Navy, Air Force, or Marine Corps (who is not
otherwise serving on active duty) who executes a written agreement to
serve on active duty for a period specified in the agreement in an
assignment intended to alleviate the need for members in a high-demand,
low-density military capability or in any other specialty designated by
the Secretary as critical to meet wartime or peacetime requirements.
``(b) Maximum Amount of Bonus.--A bonus under subsection (a) and any
incentive developed under subsection (d) may not exceed $50,000.
``(c) Methods of Payment.--At the election of the Secretary of
Defense, a bonus under subsection (a) and any incentive developed under
subsection (d) shall be paid or provided--
``(1) when the member commences service on active duty; or
``(2) in annual installments in such amounts as may be
determined by the Secretary.

``(d) Development of Additional Incentives.--(1) The Secretary of
Defense may develop and provide to members referred to in subsection (a)
additional incentives to encourage such members to return to active duty
in assignments intended to alleviate the need for members in a high-
demand, low-density military capability or in other specialties
designated by the Secretary as critical to meet wartime or peacetime
requirements.
``(2) NOTE: Contracts. The provision of any incentive developed
under this subsection shall be subject to an agreement, as required for
bonuses under subsection (a).

``(3) NOTE: Deadline. Not later than 30 days before first
offering any incentive developed under this subsection, the Secretary
shall submit to the congressional defense committees a report that
contains a description of that incentive and an explanation why a bonus
under subsection (a) or other pay and allowances are not sufficient to
alleviate the high-demand, low-density military capability or otherwise
fill critical military specialties.

``(4) In this subsection, the term `congressional defense
committees' has the meaning given that term in section 101(a)(16) of
title 10.
``(e) Relationship to Other Pay and Allowances.--A bonus or other
incentive paid or provided to a member under this section is in addition
to any other pay and allowances to which the member is entitled.
``(f) Prohibition on Promotions.--The written agreement required by
subsections (a) and (d) shall specify that a member

[[Page 2254]]
120 STAT. 2254

who is paid or receives a bonus or other incentive under this section is
not eligible for promotion while serving in the assignment for which the
bonus or other incentive is provided.
``(g) Repayment.--A member who does not complete the period of
active duty specified in the agreement executed under subsection (a) or
(d) shall be subject to the repayment provisions of section 303a(e) of
this title.
``(h) High-Demand, Low-Density Military Capability.--In this
section, the term `high-demand, low-density military capability' means a
combat, combat support or service support capability, unit, system, or
occupational specialty that the Secretary of Defense determines has
funding, equipment, or personnel levels that are substantially below the
levels required to fully meet or sustain actual or expected operational
requirements set by regional commanders.
``(i) Regulations.--The Secretary of Defense may prescribe such
regulations as the Secretary considers necessary to carry out this
section.
``(j) Termination of Authority.--No agreement under subsection (a)
or (d) may be entered into after December 31, 2010.''.
(b) Temporary Authority to Order Retired Members to Active Duty in
High-Demand, Low-Density Military Capability.--Section 688a of title 10,
United States Code, is amended--
(1) in subsection (a)--
(A) by striking the first sentence and inserting the
following new sentence: ``The Secretary of a military
department may order to active duty a retired member who
agrees to serve on active duty in an assignment intended
to alleviate a high-demand, low-density military
capability or in any other specialty designated by the
Secretary as critical to meet wartime or peacetime
requirements.''; and
(B) in the second sentence, by striking ``officer''
both places it appears and inserting ``member'';
(2) in subsection (b), by striking ``an officer'' and
inserting ``a member'';
(3) in subsection (c), by striking ``500 officers'' and
inserting ``1,000 members'';
(4) in subsection (d), by striking ``officer'' and inserting
``member'';
(5) in subsection (e), by striking ``Officers'' and
inserting ``Retired members'';
(6) in subsection (f)--
(A) by striking ``An officer'' and inserting ``A
retired member''; and
(B) by striking ``September 30, 2008'' and inserting
``December 31, 2010''; and
(7) by adding at the end the following new subsection:

``(g) High-Demand, Low-Density Military Capability Defined.--In this
section, the term `high-demand, low-density military capability' means a
combat, combat support or service support capability, unit, system, or
occupational specialty that the Secretary of Defense determines has
funding, equipment, or personnel levels that are substantially below the
levels required to fully meet or sustain actual or expected operational
requirements set by regional commanders.''.

[[Page 2255]]
120 STAT. 2255

(c) Exclusion From Active-Duty List.--Section 641 of title 10,
United States Code, is amended by adding at the end the following new
paragraph:
``(6) Officers appointed pursuant to an agreement under
section 329 of title 37.''.

(d) Clerical Amendments.--
(1) Title 37.--The table of sections at the beginning of
chapter 5 of title 37, United States Code, is amended by adding
at the end the following new item:

``329. Incentive bonus: retired members and reserve component members
volunteering for high-demand, low-density assignments.''.

(2) Title 10.--(A) The heading of section 688a of title 10,
United States Code, is amended to read as follows:

``Sec. 688a. Retired members: temporary authority to order to active
duty in high-demand, low-density assignments''.

(B) The table of sections at the beginning of chapter 39 of
such title is amended by striking the item relating to section
688a and inserting the following new item:

``688a. Retired members: temporary authority to order to active duty in
high-demand, low-density assignments.''.

(e) NOTE: 37 USC 329 note. Effective Date.--No agreement may be
entered into under section 329 of title 37, United States Code, as added
by subsection (a), before October 1, 2006.

(f) Limitation on Fiscal Year 2007 Obligations.--During fiscal year
2007, obligations incurred under section 329 of title 37, United States
Code, as added by subsection (a), to provide bonuses or other incentives
to retired members and former members of the Army, Navy, Air Force, or
Marine Corps or to members of the reserve components of the Army, Navy,
Air Force, and Marine Corps may not exceed $5,000,000.
SEC. 622. ACCESSION BONUS FOR MEMBERS OF THE ARMED FORCES
APPOINTED AS COMMISSIONED OFFICERS AFTER
COMPLETING OFFICER CANDIDATE SCHOOL.

(a) Accession Bonus Authorized.--
(1) In general.--Chapter 5 of title 37, United States Code,
is amended by inserting after section 329, as added by section
621 of this Act, the following new section:

``Sec. 330. Special pay: accession bonus for officer candidates

``(a) NOTE: Regulations. Accession Bonus Authorized.--Under
regulations prescribed by the Secretary concerned, a person who executes
a written agreement described in subsection (c) may be paid an accession
bonus under this section upon acceptance of the agreement by the
Secretary concerned.

``(b) Amount of Bonus.--The amount of an accession bonus under
subsection (a) may not exceed $8,000.
``(c) Agreement.--A written agreement referred to in subsection (a)
is a written agreement by a person--
``(1) to complete officer candidate school;
``(2) to accept a commission or appointment as an officer of
the armed forces; and
``(3) to serve on active duty as a commissioned officer for
a period specified in the agreement.

[[Page 2256]]
120 STAT. 2256

``(d) NOTE: Contracts. Payment Method.--Upon acceptance of a
written agreement under subsection (a) by the Secretary concerned, the
total amount of the accession bonus payable under the agreement becomes
fixed. The agreement shall specify whether the accession bonus will be
paid in a lump sum or installments.

``(e) Repayment.--A person who, having received all or part of the
bonus under a written agreement under subsection (a), does not complete
the total period of active duty as a commissioned officer as specified
in such agreement shall be subject to the repayment provisions of
section 303a(e) of this title.
``(f) Termination of Authority.--No agreement under this section may
be entered into after December 31, 2007.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the item
relating to section 329, as added by section 621, the following
new item:

``330. Special pay: accession bonus for officer candidates.''.

(3) NOTE: 37 USC 330 note. Effective date.--The
amendments made by this subsection shall take effect on October
1, 2006.

(b) Authority for Payment of Bonus Under Earlier Agreements.--
(1) Authority.--The Secretary of the Army may pay a bonus to
any person who, during the period beginning on April 1, 2005,
and ending on April 6, 2006, executed an agreement to enlist for
the purpose of attending officer candidate school and receive a
bonus under section 309 of title 37, United States Code, and who
has completed the terms of the agreement required for payment of
the bonus.
(2) Amount of bonus.--The amount of the bonus payable to a
person under this subsection may not exceed $8,000.
(3) Relation to enlistment bonus.--The bonus payable under
this subsection is in addition to a bonus payable under section
309 of title 37, United States Code, or any other provision of
law.
SEC. 623. MODIFICATION OF CERTAIN AUTHORITIES APPLICABLE TO THE
TARGETED SHAPING OF THE ARMED FORCES.

(a) Voluntary Separation Pay and Benefits.--
(1) Increase in maximum amount of pay.--Subsection (f) of
section 1175a of title 10, United States Code, is amended by
striking ``two times'' and inserting ``four times''.
(2) Extension of authority.--Subsection (k)(1) of such
section is amended by striking ``December 31, 2008'' and
inserting ``December 31, 2012''.
(3) Repeal of limitation on applicability.--Subsection (b)
of section 643 of the National Defense Authorization Act for
Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3310; 10 U.S.C.
1175a note) is repealed.

(b) Enhanced Authority for Early Discharges.--
(1) Renewal of authority.--Subsection (a) of section 638a of
title 10, United States Code, is amended by inserting ``and for
the purpose of subsection (b)(4) during the period beginning on
October 1, 2006, and ending on December 31, 2012,'' after
``December 31, 2001,''.
(2) Relaxation of limitation on selective early discharge.--
Subsection (d)(2) of such section is amended--

[[Page 2257]]
120 STAT. 2257

(A) in subparagraph (A), by inserting before the
semicolon the following: ``, except that during the
period beginning on October 1, 2006, and ending on
December 31, 2012, such number may be more than 30
percent of the officers considered in each competitive
category, but may not be more than 30 percent of the
number of officers considered in each grade''; and
(B) in subparagraph (B), by inserting before the
period the following: ``, except that during the period
beginning on October 1, 2006, and ending on December 31,
2012, such number may be more than 30 percent of the
officers considered in each competitive category, but
may not be more than 30 percent of the number of
officers considered in each grade''.
SEC. 624. ENHANCEMENT OF BONUS TO ENCOURAGE CERTAIN PERSONS TO
REFER OTHER PERSONS FOR ENLISTMENT IN THE
ARMY.

(a) Individuals Eligible for Bonus.--Subsection (a) of section 645
of the National Defense Authorization Act for Fiscal Year 2006 (Public
Law 109-163; 119 Stat. 3310) is amended--
(1) by striking ``The Secretary'' and inserting the
following:
``(1) Authority.--The Secretary'';
(2) by striking ``a member of the Army, whether in the
regular component of the Army or in the Army National Guard or
Army Reserve,'' and inserting ``an individual referred to in
paragraph (2)''; and
(3) by adding at the end the following new paragraph:
``(2) Individuals eligible for bonus.--Subject to subsection
(c), the following individuals are eligible for a referral bonus
under this section:
``(A) A member in the regular component of the Army.
``(B) A member of the Army National Guard.
``(C) A member of the Army Reserve.
``(D) A member of the Army in a retired status,
including a member under 60 years of age who, but for
age, would be eligible for retired pay.
``(E) A civilian employee of the Department of the
Army.''.

(b) Certain Referrals Ineligible.--Subsection (c) of such section is
amended by adding at the end the following new paragraph:
``(3) Junior reserve officers' training corps instructors.--
A member of the Army detailed under subsection (c)(1) of section
2031 of title 10, United States Code, to serve as an
administrator or instructor in the Junior Reserve Officers'
Training Corps program or a retired member of the Army employed
as an administrator or instructor in the program under
subsection (d) of such section may not be paid a bonus under
subsection (a).''.

(c) Amount of Bonus.--Subsection (d) of such section is amended to
read as follows:
``(d) Amount of Bonus.--The amount of the bonus payable for a
referral under subsection (a) may not exceed $2,000. The amount shall be
payable in two lump sums as provided in subsection (e).''.

[[Page 2258]]
120 STAT. 2258

(d) Payment of Bonus.--Subsection (e) of such section is amended to
read as follows:
``(e) Payment.--A bonus payable for a referral of a person under
subsection (a) shall be paid as follows:
``(1) Not more than $1,000 shall be paid upon the
commencement of basic training by the person referred.
``(2) Not more than $1,000 shall be paid upon the completion
of basic training and individual advanced training by the person
referred.''.

(e) Coordination With Receipt of Retired Pay.--Such section is
further amended--
(1) by redesignating subsection (g) as subsection (h); and
(2) by inserting after subsection (f) the following new
subsection (g):

``(g) Coordination With Receipt of Retired Pay.--A bonus paid under
this section to a member of the Army in a retired status is in addition
to any compensation to which the member is entitled under title 10, 37,
or 38, United States Code, or any other provision of law.''.
(f) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act, and shall apply with
respect to bonuses payable under section 645 of the National Defense
Authorization Act for Fiscal Year 2006, as amended by this section, on
or after that date.

Subtitle C--Travel and Transportation Allowances

SEC. 631. TRAVEL AND TRANSPORTATION ALLOWANCES FOR TRANSPORTATION
OF FAMILY MEMBERS INCIDENT TO ILLNESS OR
INJURY OF MEMBERS.

Section 411h(b)(1) of title 37, United States Code, is amended--
(1) by striking ``and'' at the end of subparagraph (C);
(2) by striking the period at the end of subparagraph (D)
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(E) a person related to the member as described in
subparagraph (A), (B), (C), or (D) who is also a member of the
uniformed services.''.

Subtitle D--Retired Pay and Survivor Benefits

SEC. 641. RETIRED PAY OF GENERAL AND FLAG OFFICERS TO BE BASED ON
RATES OF BASIC PAY PROVIDED BY LAW.

(a) Determination of Retired Pay Base.--Chapter 71 of title 10,
United States Code, is amended by inserting after section 1407 the
following new section:

``Sec. 1407a. Retired pay base: officers retired in general or flag
officer grades

``(a) Rates of Basic Pay to Be Used in Determination.--In a case in
which the determination under section 1406 or 1407 of this title of the
retired pay base applicable to the computation

[[Page 2259]]
120 STAT. 2259

of the retired pay of a covered general or flag officer involves a rate
of basic pay payable to that officer for any period that was subject to
a reduction under section 203(a)(2) of title 37 for such period, such
retired-pay-base determination shall be made using the rate of basic pay
for such period provided by law, rather than such rate as so reduced.
``(b) Covered General and Flag Officers.--In this section, the term
`covered general or flag officer' means a member or former member who
after September 30, 2006, is retired in a general officer grade or flag
officer grade.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
1407 the following new item:

``1407a.  Retired pay base: officers retired in general or flag officer
grades.''.

SEC. 642. INAPPLICABILITY OF RETIRED PAY MULTIPLIER MAXIMUM
PERCENTAGE TO CERTAIN SERVICE OF MEMBERS
OF THE ARMED FORCES IN EXCESS OF 30 YEARS.

(a) In General.--Paragraph (3) of section 1409(b) of title 10,
United States Code, is amended to read as follows:
``(3) 30 years of service.--
``(A) Retirement before january 1, 2007.--In the
case of a member who retires before January 1, 2007,
with more than 30 years of creditable service, the
percentage to be used under subsection (a) is 75
percent.
``(B) Retirement after december 31, 2006.--In the
case of a member who retires after December 31, 2006,
with more than 30 years of creditable service, the
percentage to be used under subsection (a) is the sum
of--
``(i) 75 percent; and
``(ii) the product (stated as a percentage)
of--
``(I) 2\1/2\; and
``(II) the member's years of
creditable service (as defined in
subsection (c)) in excess of 30 years of
creditable service, under conditions
authorized for purposes of this
subparagraph during a period designated
by the Secretary of Defense for purposes
of this subparagraph.''.

(b) Retired Pay for Non-Regular Service.--Section 12739(c) of such
title is amended--
(1) by striking ``The total amount'' and inserting ``(1)
Except as provided in paragraph (2), the total amount''; and
(2) by adding at the end the following new paragraph:
``(2) In the case of a person who retires after December 31,
2006, with more than 30 years of service credited to that person
under section 12733 of this title, the total amount of the
monthly retired pay computed under subsections (a) and (b) may
not exceed the sum of--
``(A) 75 percent of the retired pay base upon which
the computation is based; and
``(B) the product of--
``(i) the retired pay base upon which the
computation is based; and
``(ii) 2\1/2\ percent of the years of service
credited to that person under section 12733 of
this title, for service under conditions
authorized for purposes of

[[Page 2260]]
120 STAT. 2260

this paragraph during a period designated by the
Secretary of Defense for purposes of this
paragraph.''.
SEC. 643. MILITARY SURVIVOR BENEFIT PLAN BENEFICIARIES UNDER
INSURABLE INTEREST COVERAGE.

(a) Authority to Elect New Beneficiary.--Section 1448(b)(1) of title
10, United States Code, is amended--
(1) by inserting ``or under subparagraph (G) of this
paragraph'' in the second sentence of subparagraph (E) before
the period at the end; and
(2) by adding at the end the following new subparagraph:
``(G) Election of new beneficiary upon death of
previous beneficiary.--
``(i) Authority for election.--If the reason
for discontinuation in the Plan is the death of
the beneficiary, the participant in the Plan may
elect a new beneficiary. Any such beneficiary must
be a natural person with an insurable interest in
the participant. Such an election may be made only
during the 180-day period beginning on the date of
the death of the previous beneficiary.
``(ii) Procedures.--Such an election shall be
in writing, signed by the participant, and made in
such form and manner as the Secretary concerned
may prescribe. Such an election shall be effective
the first day of the first month following the
month in which the election is received by the
Secretary.
``(iii) Vitiation of election by participant
who dies within two years of election.--If a
person providing an annuity under a election under
clause (i) dies before the end of the two-year
period beginning on the effective date of the
election--
``(I) the election is vitiated; and
``(II) the amount by which the
person's retired pay was reduced under
section 1452 of this title that is
attributable to the election shall be
paid in a lump sum to the person who
would have been the deceased person's
beneficiary under the vitiated election
if the deceased person had died after
the end of such two-year period.''.

(b) Change in Premium for Coverage of New Beneficiary.--Section
1452(c) of such title is amended by adding at the end the following new
paragraph:
``(5) Rule for designation of new insurable interest
beneficiary following death of original beneficiary.--The
Secretary of Defense shall prescribe in regulations premiums
which a participant making an election under section
1448(b)(1)(G) of this title shall be required to pay for
participating in the Plan pursuant to that election. The total
amount of the premiums to be paid by a participant under the
regulations shall be equal to the sum of the following:
``(A) The total additional amount by which the
retired pay of the participant would have been reduced
before the effective date of the election if the
original beneficiary (i) had not died and had been
covered under the Plan through the date of the election,
and (ii) had been the

[[Page 2261]]
120 STAT. 2261

same number of years younger than the participant (if
any) as the new beneficiary designated under the
election.
``(B) Interest on the amounts by which the retired
pay of the participant would have been so reduced,
computed from the dates on which the retired pay would
have been so reduced at such rate or rates and according
to such methodology as the Secretary of Defense
determines reasonable.
``(C) Any additional amount that the Secretary
determines necessary to protect the actuarial soundness
of the Department of Defense Military Retirement Fund
against any increased risk for the fund that is
associated with the election.''.

(c) NOTE: 10 USC 1448 note. Transition.--
(1) Transition period.--In the case of a participant in the
Survivor Benefit Plan who made a covered insurable-interest
election (as defined in paragraph (2)) and whose designated
beneficiary under that election dies before the date of the
enactment of this Act or during the 18-month period beginning on
such date, the time period applicable for purposes of the
limitation in the third sentence of subparagraph (G)(i) of
section 1448(b)(1) of title 10, United States Code, as added by
subsection (a), shall be the two-year period beginning on the
date of the enactment of this Act (rather than the 180-day
period specified in that sentence).
(2) Covered insurable-interest elections.--For purposes of
paragraph (1), a covered insurable-interest election is an
election under section 1448(b)(1) of title 10, United States
Code, made before the date of the enactment of this Act, or
during the 18-month period beginning on such date, by a
participant in the Survivor Benefit Plan to provide an annuity
under that plan to a natural person with an insurable interest
in that person.
(3) Survivor benefit plan.--For purposes of this subsection,
the term ``Survivor Benefit Plan'' means the program under
subchapter II of chapter 73 of title 10, United States Code.
SEC. 644. MODIFICATION OF ELIGIBILITY FOR COMMENCEMENT OF
AUTHORITY FOR OPTIONAL ANNUITIES FOR
DEPENDENTS UNDER THE SURVIVOR BENEFIT
PLAN.

(a) In General.--Section 1448(d)(2)(B) of title 10, United States
Code, is amended by striking ``who dies after November 23, 2003'' and
inserting ``who dies after October 7, 2001''.
(b) NOTE: 10 USC 1448 note. Applicability.--Any annuity payable
to a dependent child under subchapter II of chapter 73 of title 10,
United States Code, by reason of the amendment made by subsection (a)
shall be payable only for months beginning on or after the date of the
enactment of this Act.
SEC. 645. STUDY OF TRAINING COSTS, MANNING, OPERATIONS TEMPO, AND
OTHER FACTORS THAT AFFECT RETENTION OF
MEMBERS OF THE ARMED FORCES WITH SPECIAL
OPERATIONS DESIGNATIONS.

(a) Report Required.--Not later than August 1, 2007, the Secretary
of Defense shall submit to the Committee on Armed Services of the Senate
and the Committee on Armed Services of

[[Page 2262]]
120 STAT. 2262

the House of Representatives a report on factors that affect retention
of members of the Armed Forces who have a special operations forces
designation.
(b) Elements.--The report under subsection (a) shall include the
following:
(1) Information on the cost of training of members of the
Armed Forces who have a special operations forces designation,
with such information displayed separately and shown as
aggregate costs of training for such members at the 4-year, 8-
year, 12-year, 16-year, and 20-year points of service.
(2) The average cost of special operations-unique training,
both predeployment and during deployment, for the number of
members of the Armed Forces who have a special operations forces
designation who have been deployed at least twice to areas in
which they were eligible for hostile fire pay.
(3) For each component of the United States Special
Operations Command, an estimate of when the assigned strength of
that component will be under 90 percent of the authorized
strength of that component, taking into account anticipated
growth planned for in the most recent Quadrennial Defense
Review.
(4) The percentage of members of the Armed Forces with a
special operations forces designation who have accumulated over
48 months of hostile fire pay and the percentage who have
accumulated over 60 months of such pay.

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

SEC. 661. TREATMENT OF PRICE SURCHARGES OF CERTAIN MERCHANDISE
SOLD AT COMMISSARY STORES.

(a) Merchandise Procured From Exchanges.--Subsection (c)(3) of
section 2484 of title 10, United States Code, is amended--
(1) by inserting ``(A)'' after ``(3)'';
(2) by striking ``Subsections'' and inserting ``Except as
provided in subparagraph (B), subsections''; and
(3) by adding at the end the following new subparagraph:

``(B) When a military exchange is the vendor of tobacco products or
other merchandise authorized for sale in a commissary store under
paragraph (1), any revenue above the cost of procuring the merchandise
shall be allocated as if the revenue were a uniform sales price
surcharge described in subsection (d).''.
(b) Merchandise Treated as Noncommissary Store Inventory.--
Subsection (g) of such section is amended--
(1) by inserting ``(1)'' before ``Notwithstanding'';
(2) by striking ``Subsections'' and inserting ``Except as
provided in paragraph (2), subsections''; and
(3) by adding at the end the following new paragraph:

``(2) When tobacco products are authorized for sale in a commissary
store as noncommissary store inventory, any revenue above the cost of
procuring the tobacco products shall be allocated as if the revenue were
a uniform sales price surcharge described in subsection (d).''.

[[Page 2263]]
120 STAT. 2263

SEC. 662. LIMITATIONS ON LEASE OF NON-EXCESS DEPARTMENT OF DEFENSE
PROPERTY FOR PROTECTION OF MORALE,
WELFARE, AND RECREATION ACTIVITIES AND
REVENUE.

(a) Additional Condition on Use of Lease Authority.--Subsection (b)
section 2667 of title 10, United States Code, is amended--
(1) in paragraph (4), by striking ``and'' at the end;
(2) in paragraph (5), by striking the period and inserting
``; and''; and
(3) by adding at the end the following new paragraph:
``(6) except as otherwise provided in subsection (d), shall
require the lessee to provide the covered entities specified in
paragraph (1) of that subsection the right to establish and
operate a community support facility or provide community
support services, or seek equitable compensation for morale,
welfare, and recreation programs of the Department of Defense in
lieu of the operation of such a facility or the provision of
such services, if the Secretary determines that the lessee will
provide merchandise or services in direct competition with
covered entities through the lease.''.

(b) Application of Condition; Waiver.--Such section is further
amended--
(1) by redesignating subsections (d) through (i) as
subsections (e) through (j), respectively; and
(2) by inserting after subsection (c) the following new
subsection (d):

``(d) Community Support Facilities and Community Support Services
Under Lease; Waiver.--(1) In this subsection and subsection (b)(6), the
term `covered entity' means each of the following:
``(A) The Army and Air Force Exchange Service.
``(B) The Navy Exchange Service Command.
``(C) The Marine Corps exchanges.
``(D) The Defense Commissary Agency.
``(E) The revenue-generating nonappropriated fund activities
of the Department of Defense conducted for the morale, welfare,
and recreation of members of the armed forces.

``(2) The Secretary of a military department may waive the
requirement in subsection (b)(6) with respect to a lease if--
``(A) the lease is entered into under subsection (g); or
``(B) the Secretary determines that the waiver is in the
best interests of the Government.

``(3) NOTE: Notification. The Secretary of the military
department concerned shall provide to the congressional defense
committees written notice of each waiver under paragraph (2), including
the reasons for the waiver.

``(4) NOTE: Deadline. The covered entities shall exercise the
right provided in subsection (b)(6) with respect to a lease, if at all,
not later than 90 days after receiving notice from the Secretary of the
military department concerned regarding the opportunity to exercise such
right with respect to the lease. The Secretary may, at the discretion of
the Secretary, extend the period under this paragraph for the exercise
of the right with respect to a lease for such additional period as the
Secretary considers appropriate.

``(5) NOTE: Regulations. The Secretary of Defense shall
prescribe in regulations uniform procedures and criteria for the
evaluation of proposals


[[Page 2264]]
120 STAT. 2264

for enhanced use leases involving the operation of community support
facilities or the provision of community support services by either a
lessee under this section or a covered entity.
``(6) NOTE: Notification. The Secretary of the military
department concerned shall provide written notification to the Committee
on Armed Services of the Senate and the Committee on Armed Services of
the House of Representatives regarding all leases under this section
that include the operation of a community support facility or the
provision of community support services, regardless of whether the
facility will be operated by a covered entity or the lessee or the
services will be provided by a covered entity or the lessee.''.

(c) Definitions.--Subsection (i) of such section, as redesignated by
subsection (b)(1) of this section, is amended to read as follows:
``(i) Definitions.--In this section:
``(1) The term `community support facility' includes an
ancillary supporting facility (as that term is defined in
section 2871(1) of this title).
``(2) The term `community support services' includes
revenue-generating food, recreational, lodging support services,
and resale operations and other retail facilities and services
intended to support a community.
``(3) The term `military installation' has the meaning given
such term in section 2687(e)(1) of this title.''.

(d) Stylistic, Technical, and Conforming Amendments.--Such section
is further amended--
(1) in subsection (a), by inserting ``Lease Authority.--''
after ``(a)'';
(2) in subsection (b), by inserting ``Conditions on
Leases.--'' after ``(b)'';
(3) in subsection (c), by inserting ``Types of In-Kind
Consideration.--'' after ``(c)'';
(4) in subsection (e), as redesignated by subsection (b)(1)
of this section--
(A) by inserting ``Deposit and Use of Proceeds.--''
after ``(e)''; and
(B) in paragraph (5), by striking ``subsection (f)''
and inserting ``subsection (g)'';
(5) in subsection (f), as redesignated by subsection (b)(1)
of this section, by inserting ``Treatment of Lessee Interest in
Property.--'' after ``(f)'';
(6) in subsection (g), as redesignated by subsection (b)(1)
of this section--
(A) by inserting ``Special Rules for Base Closure
and Realignment Property.--'' after ``(g)''; and
(B) in paragraph (1), by striking ``subsection
(a)(3)'' and inserting ``subsection (a)(2)'';
(7) in subsection (h), as redesignated by subsection (b)(1)
of this section, by inserting ``Competitive Procedures for
Selection of Certain Lessees; Exception.--'' after ``(h)''; and
(8) in subsection (j), as redesignated by subsection (b)(1)
of this section, by inserting ``Exclusion of Certain Lands.--''
after ``(j)''.

[[Page 2265]]
120 STAT. 2265

SEC. 663. REPORT ON COST EFFECTIVENESS OF PURCHASING COMMERCIAL
INSURANCE FOR COMMISSARY AND EXCHANGE
FACILITIES AND FACILITIES OF OTHER MORALE,
WELFARE, AND RECREATION PROGRAMS AND
NONAPPROPRIATED FUND INSTRUMENTALITIES.

(a) Report Required.--Not later than July 31, 2007, the Secretary of
Defense shall submit to Congress a report evaluating the cost
effectiveness of the Defense Commissary Agency and the nonappropriated
fund activities specified in subsection (b) purchasing commercial
insurance to protect financial interests in facilities operated by the
Defense Commissary Agency or those nonappropriated fund activities.
(b) NOTE: Applicability. Covered Nonappropriated Fund
Activities.--The report shall apply with respect to--
(1) the Army and Air Force Exchange Service;
(2) the Navy Exchange Service Command;
(3) the Marine Corps exchanges; and
(4) any nonappropriated fund activity of the Department of
Defense for the morale, welfare, and recreation of members of
the Armed Forces.
SEC. 664. STUDY AND REPORT REGARDING ACCESS OF DISABLED PERSONS TO
MORALE, WELFARE, AND RECREATION FACILITIES
AND ACTIVITIES.

(a) Study Required.--The Secretary of Defense shall conduct a study
regarding the current capability of morale, welfare, and recreation
facilities and activities operated by nonappropriated fund
instrumentalities of the Department of Defense to provide access to and
accommodate disabled persons who are otherwise eligible to use such
facilities or participate in such activities and the legal requirements
regarding such access and accommodation applicable to these morale,
welfare, and recreation facilities and activities, with specific
attention to the applicability of section 504 of the Rehabilitation Act
of 1973 (29 U.S.C. 794).
(b) Elements of Study.--In conducting the study, the Secretary of
Defense shall address at a minimum the following:
(1) The current plans of the Secretary of Defense and the
Secretaries of the military departments to improve the access
and accommodation of disabled persons to morale, welfare, and
recreation facilities and activities operated by nonappropriated
fund instrumentalities of the Department of Defense, including
plans to make available additional golf carts at military golf
courses that are accessible for disabled persons authorized to
use such courses, and whether any portion of these plans require
congressional authorization or funding.
(2) The timing and cost of making these morale, welfare, and
recreation facilities and activities fully accessible to
disabled persons.
(3) The expected utilization rates of these morale, welfare,
and recreation facilities and activities by disabled persons, if
the facilities and activities were fully accessible to disabled
persons.
(4) Any legal requirements applicable to providing golf
carts at military golf courses that are accessible for disabled
persons authorized to use such courses and the current
availability of accessible golf carts at such courses.

[[Page 2266]]
120 STAT. 2266

(c) Report Required.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Defense shall submit to Congress
a report containing the results of the study and any related findings,
conclusions, and recommendations that the Secretary considers to be
appropriate concerning the access of disabled persons to morale,
welfare, and recreation facilities and activities, and specifically the
Secretary's conclusions on making accessible golf carts available at all
military golf courses for use by disabled persons authorized to use such
courses.

Subtitle F--Other Matters

SEC. 670. LIMITATIONS ON TERMS OF CONSUMER CREDIT EXTENDED TO
SERVICEMEMBERS AND DEPENDENTS.

(a) Terms of Consumer Credit.--Chapter 49 of title 10, United States
Code, is amended by adding at the end the following new section:

``Sec. 987. Terms of consumer credit extended to members and dependents:
limitations

``(a) Interest.--A creditor who extends consumer credit to a covered
member of the armed forces or a dependent of such a member shall not
require the member or dependent to pay interest with respect to the
extension of such credit, except as--
``(1) agreed to under the terms of the credit agreement or
promissory note;
``(2) authorized by applicable State or Federal law; and
``(3) not specifically prohibited by this section.

``(b) Annual Percentage Rate.--A creditor described in subsection
(a) may not impose an annual percentage rate of interest greater than 36
percent with respect to the consumer credit extended to a covered member
or a dependent of a covered member.
``(c) Mandatory Loan Disclosures.--
``(1) Information required.--With respect to any extension
of consumer credit (including any consumer credit originated or
extended through the internet) to a covered member or a
dependent of a covered member, a creditor shall provide to the
member or dependent the following information orally and in
writing before the issuance of the credit:
``(A) A statement of the annual percentage rate of
interest applicable to the extension of credit.
``(B) Any disclosures required under the Truth in
Lending Act (15 U.S.C. 1601 et seq.).
``(C) A clear description of the payment obligations
of the member or dependent, as applicable.
``(2) NOTE: Regulations. Terms.--Such disclosures shall
be presented in accordance with terms prescribed by the
regulations issued by the Board of Governors of the Federal
Reserve System to implement the Truth in Lending Act (15 U.S.C.
1601 et seq.).

``(d) Preemption.--
``(1) Inconsistent laws.--Except as provided in subsection
(f)(2), this section preempts any State or Federal law, rule, or
regulation, including any State usury law, to the extent that
such law, rule, or regulation is inconsistent with this section,
except that this section shall not preempt any such law, rule,
or regulation that provides protection to a covered

[[Page 2267]]
120 STAT. 2267

member or a dependent of such a member in addition to the
protection provided by this section.
``(2) Different treatment under state law of members and
dependents prohibited.--States shall not--
``(A) authorize creditors to charge covered members
and their dependents annual percentage rates of interest
for loans higher than the legal limit for residents of
the State; or
``(B) permit violation or waiver of any State
consumer lending protections for the benefit of
residents of the State on the basis of nonresident or
military status of a covered member or dependent of such
a member, regardless of the member's or dependent's
domicile or permanent home of record.

``(e) Limitations.--It shall be unlawful for any creditor to extend
consumer credit to a covered member or a dependent of such a member with
respect to which--
``(1) the creditor rolls over, renews, repays, refinances,
or consolidates any consumer credit extended to the borrower by
the same creditor with the proceeds of other credit extended to
the same covered member or a dependent;
``(2) the borrower is required to waive the borrower's right
to legal recourse under any otherwise applicable provision of
State or Federal law, including any provision of the
Servicemembers Civil Relief Act;
``(3) the creditor requires the borrower to submit to
arbitration or imposes onerous legal notice provisions in the
case of a dispute;
``(4) the creditor demands unreasonable notice from the
borrower as a condition for legal action;
``(5) the creditor uses a check or other method of access to
a deposit, savings, or other financial account maintained by the
borrower, or the title of a vehicle as security for the
obligation;
``(6) the creditor requires as a condition for the extension
of credit that the borrower establish an allotment to repay an
obligation; or
``(7) the borrower is prohibited from prepaying the loan or
is charged a penalty or fee for prepaying all or part of the
loan.

``(f) Penalties and Remedies.--
``(1) Misdemeanor.--A creditor who knowingly violates this
section shall be fined as provided in title 18, or imprisoned
for not more than one year, or both.
``(2) Preservation of other remedies.--The remedies and
rights provided under this section are in addition to and do not
preclude any remedy otherwise available under law to the person
claiming relief under this section, including any award for
consequential and punitive damages.
``(3) Contract void.--Any credit agreement, promissory note,
or other contract prohibited under this section is void from the
inception of such contract.
``(4) Arbitration.--Notwithstanding section 2 of title 9, or
any other Federal or State law, rule, or regulation, no
agreement to arbitrate any dispute involving the extension of
consumer credit shall be enforceable against any covered member
or dependent of such a member, or any person who

[[Page 2268]]
120 STAT. 2268

was a covered member or dependent of that member when the
agreement was made.

``(g) Servicemembers Civil Relief Act Protections Unaffected.--
Nothing in this section may be construed to limit or otherwise affect
the applicability of section 207 of the Servicemembers Civil Relief Act
(50 U.S.C. App. 527).
``(h) Regulations.--(1) The Secretary of Defense shall prescribe
regulations to carry out this section.
``(2) Such regulations shall establish the following:
``(A) Disclosures required of any creditor that extends
consumer credit to a covered member or dependent of such a
member.
``(B) The method for calculating the applicable annual
percentage rate of interest on such obligations, in accordance
with the limit established under this section.
``(C) A maximum allowable amount of all fees, and the types
of fees, associated with any such extension of credit, to be
expressed and disclosed to the borrower as a total amount and as
a percentage of the principal amount of the obligation, at the
time at which the transaction is entered into.
``(D) Definitions of `creditor' under paragraph (5) and
`consumer credit' under paragraph (6) of subsection (i),
consistent with the provisions of this section.
``(E) Such other criteria or limitations as the Secretary of
Defense determines appropriate, consistent with the provisions
of this section.

``(3) In prescribing regulations under this subsection, the
Secretary of Defense shall consult with the following:
``(A) The Federal Trade Commission.
``(B) The Board of Governors of the Federal Reserve System.
``(C) The Office of the Comptroller of the Currency.
``(D) The Federal Deposit Insurance Corporation.
``(E) The Office of Thrift Supervision.
``(F) The National Credit Union Administration.
``(G) The Treasury Department.

``(i) Definitions.--In this section:
``(1) Covered member.--The term `covered member' means a
member of the armed forces who is--
``(A) on active duty under a call or order that does
not specify a period of 30 days or less; or
``(B) on active Guard and Reserve Duty.
``(2) Dependent.--The term `dependent', with respect to a
covered member, means--
``(A) the member's spouse;
``(B) the member's child (as defined in section
101(4) of title 38); or
``(C) an individual for whom the member provided
more than one-half of the individual's support for 180
days immediately preceding an extension of consumer
credit covered by this section.
``(3) Interest.--The term `interest' includes all cost
elements associated with the extension of credit, including
fees, service charges, renewal charges, credit insurance
premiums, any ancillary product sold with any extension of
credit to a servicemember or the servicemember's dependent, as
applicable, and any other charge or premium with respect to the
extension of consumer credit.

[[Page 2269]]
120 STAT. 2269

``(4) Annual percentage rate.--The term `annual percentage
rate' has the same meaning as in section 107 of the Truth and
Lending Act (15 U.S.C. 1606), as implemented by regulations of
the Board of Governors of the Federal Reserve System. For
purposes of this section, such term includes all fees and
charges, including charges and fees for single premium credit
insurance and other ancillary products sold in connection with
the credit transaction, and such fees and charges shall be
included in the calculation of the annual percentage rate.
``(5) Creditor.--The term `creditor' means a person--
``(A) who--
``(i) is engaged in the business of extending
consumer credit; and
``(ii) meets such additional criteria as are
specified for such purpose in regulations
prescribed under this section; or
``(B) who is an assignee of a person described in
subparagraph (A) with respect to any consumer credit
extended.
``(6) Consumer credit.--The term `consumer credit' has the
meaning provided for such term in regulations prescribed under
this section, except that such term does not include (A) a
residential mortgage, or (B) a loan procured in the course of
purchasing a car or other personal property, when that loan is
offered for the express purpose of financing the purchase and is
secured by the car or personal property procured.''.

(b) Clerical Amendment.--The table of sections at the beginning of
such title is amended by adding at the end the following new item:

``987. Terms of consumer credit extended to members and dependents:
limitations.''.

(c) NOTE: 10 USC 987 note. Effective Date.--
(1) In general.--Except as provided in paragraph (2),
section 987 of title 10, United States Code, as added by
subsection (a), shall take effect on October 1, 2007, or on such
earlier date as may be prescribed by the Secretary of Defense,
and shall apply with respect to extensions of consumer credit on
or after such effective date.
(2) Authority to prescribe regulations.--Subsection (h) of
such section shall take effect on the date of the enactment of
this Act.
(3) Publication of earlier effective date.--
If NOTE: Federal Register, publication. the Secretary of
Defense prescribes an effective date for section 987 of title
10, United States Code, as added by subsection (a), earlier than
October 1, 2007, the Secretary shall publish that date in the
Federal Register. NOTE: Deadline. Such publication shall be
made not less than 90 days before that earlier effective date.

(d) NOTE: 10 USC 987 note. Interim Regulations.--The Secretary
of Defense may prescribe interim regulations as necessary to carry out
such section. For the purpose of prescribing such interim regulations,
the Secretary is excepted from compliance with the notice-and-comment
requirements of section 553 of title 5, United States
Code. NOTE: Expiration date. All interim rules prescribed under the
authority of this subsection that are not earlier superseded by final
rules shall expire no later than 270 days after the effective date of
section 987 of title 10, United States Code, as added by this section.

[[Page 2270]]
120 STAT. 2270

SEC. 671. ENHANCEMENT OF AUTHORITY TO WAIVE CLAIMS FOR OVERPAYMENT
OF PAY AND ALLOWANCES AND TRAVEL AND
TRANSPORTATION ALLOWANCES.

(a) Maximum Waiver Amount; Time for Exercise of Authority.--Section
2774 of title 10, United States Code, is amended--
(1) in subsection (a)(2)(A), by striking ``$1,500'' and
inserting ``$10,000''; and
(2) in subsection (b)(2), by striking ``three years'' and
inserting ``five years''.

(b) Conforming Amendments Regarding National Guard.--Section 716 of
title 32, United States Code, is amended--
(1) in subsection (a)(2)(A), by striking ``$1,500'' and
inserting ``$10,000''; and
(2) in subsection (b)(2), by striking ``three years'' and
inserting ``five years''.

(c) NOTE: 10 USC 2774 note. Effective Date.--The amendments made
by this section shall take effect on March 1, 2007.
SEC. 672. EXCEPTION FOR NOTICE TO CONSUMER REPORTING AGENCIES
REGARDING DEBTS OR ERRONEOUS PAYMENTS
PENDING A DECISION TO WAIVE, REMIT, OR
CANCEL.

(a) Exception.--Section 2780(b) of title 10, United States Code, is
amended--
(1) by striking ``The Secretary'' and inserting ``(1) Except
as provided in paragraph (2), the Secretary of Defense''; and
(2) by adding at the end the following new paragraph:

``(2) No disclosure shall be made under paragraph (1) with respect
to an indebtedness while a decision regarding waiver of collection of
the indebtedness is pending under section 2774 of this title or section
716 of title 32, or while a decision regarding remission or cancellation
of the indebtedness is pending under section 4837, 6161, or 9837 of this
title, unless the Secretary concerned (as defined in section 101(5) of
title 37) determines that disclosure under that paragraph pending such
decision is in the best interests of the United States.''.
(b) NOTE: 10 USC 2780 note. Effective Date.--
(1) In general.--The amendments made by this section shall
take effect on March 1, 2007.
(2) Application to prior actions.--Paragraph (2) of section
2780(b) of title 10, United States Code, as added by subsection
(a), shall not be construed to apply to or invalidate any action
taken under such section before March 1, 2007.

(c) Report.--Not later than March 1, 2007, the Secretary of Defense
shall submit to the congressional defense committees a report on the
requirement in section 2780(b) of title 10, United States Code, to
disclose to consumer reporting agencies in accordance with section 3711
of title 31, United States Code, information concerning certain
indebtedness owed to the United States. The report shall include the
following:
(1) The total number of members of the Armed Forces whose
indebtedness has been disclosed to consumer reporting agencies
under section 2780(b), United States Code, during the period
beginning on January 1, 2003, and ending on June 30, 2006.
(2) The circumstances under which a decision to recover the
indebtedness was made, rather than a decision to waive,

[[Page 2271]]
120 STAT. 2271

remit, or cancel the indebtedness under the provisions of law
referred to in paragraph (2) of such section, as added by
subsection (a), and the title of the person who made the
decision.
(3) The cost of contracts for collection services to recover
indebtedness owed to the United States that is delinquent.
(4) An evaluation of whether or not such contracts, and the
practice of disclosing to consumer reporting agencies the
identity of members of the Armed Forces who owe a delinquent
debt to the United States, has been effective in reducing
indebtedness to the United States.
(5) Such recommendations as the Secretary considers
appropriate regarding the continuing disclosure of such
information with respect to members of the Armed Forces.
SEC. 673. EXPANSION AND ENHANCEMENT OF AUTHORITY TO REMIT OR
CANCEL INDEBTEDNESS OF MEMBERS AND FORMER
MEMBERS OF THE ARMED FORCES INCURRED ON
ACTIVE DUTY.

(a) Department of the Army.--
(1) Coverage of all members and former members.--Subsection
(a) of section 4837 of title 10, United States Code, is amended
by striking ``of a member'' and all that follows through ``on
active duty'' and inserting ``of a person to the United States
or any instrumentality of the United States incurred while the
person was serving on active duty as a member of the Army''.
(2) Repeal of limitation on time for exercise of
authority.--Such section is further amended--
(A) by striking subsection (b); and
(B) by redesignating subsections (c) and (d) as
subsections (b) and (c), respectively.
(3) Repeal of termination of modified authority.--Paragraph
(3) of section 683(a) of the National Defense Authorization Act
for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3322; 10
U.S.C. 4837 note) is repealed.

(b) Department of the Navy.--
(1) Coverage of all members and former members.--Section
6161 of title 10, United States Code, is amended by striking
``of a member'' and all that follows through ``on active duty''
and inserting ``of a person to the United States or any
instrumentality of the United States incurred while the person
was serving on active duty as a member of the naval service''.
(2) Repeal of limitation on time for exercise of
authority.--Such section is further amended--
(A) by striking subsection (b); and
(B) by redesignating subsections (c) and (d) as
subsections (b) and (c), respectively.
(3) Repeal of termination of modified authority.--Paragraph
(3) of section 683(b) of the National Defense Authorization Act
for Fiscal Year 2006 (119 Stat. 3323; 10 U.S.C. 6161 note) is
repealed.

(c) Department of the Air Force.--
(1) Coverage of all members and former members.--Subsection
(a) of section 9837 of title 10, United States Code, is amended
by striking ``of a member'' and all that follows through ``on
active duty'' and inserting ``of a person to the United States
or any instrumentality of the United States

[[Page 2272]]
120 STAT. 2272

incurred while the person was serving on active duty as a member
of the Air Force''.
(2) Repeal of limitation on time for exercise of
authority.--Such section is further amended--
(A) by striking subsection (b); and
(B) by redesignating subsections (c) and (d) as
subsections (b) and (c), respectively.
(3) Repeal of termination of modified authority.--Paragraph
(3) of section 683(c) of the National Defense Authorization Act
for Fiscal Year 2006 (119 Stat. 3324; 10 U.S.C. 9837 note) is
repealed.

(d) NOTE: 10 USC 4837 note. Deadline for Regulations.--The
Secretary of Defense shall prescribe the regulations required for
purposes of sections 4837, 6161, and 9837 of title 10, United States
Code, as amended by this section, not later than March 1, 2007.

(e) Clarifying and Editorial Amendments.--
(1) Secretary of the army.--Subsection (a) of section 4837
of title 10, United States Code, as amended by subsection
(a)(1), is further amended--
(A) by striking ``If the'' and all that follows
through ``States, the Secretary'' and inserting ``The
Secretary of the Army''; and
(B) by inserting before the period at the end ``,
but only if the Secretary considers such action to be in
the best interest of the United States''.
(2) Secretary of the navy.--Subsection (a) of section 6161
of such title, as amended by subsection (b)(1), is further
amended--
(A) by striking ``If the'' and all that follows
through ``States, the Secretary'' and inserting ``The
Secretary of the Navy''; and
(B) by inserting before the period at the end ``,
but only if the Secretary considers such action to be in
the best interest of the United States''.
(3) Secretary of the air force.--Subsection (a) of section
9837 of such title, as amended by subsection (c)(1), is further
amended--
(A) by striking ``If the'' and all that follows
through ``States, the Secretary'' and inserting ``The
Secretary of the Air Force''; and
(B) by inserting before the period at the end ``,
but only if the Secretary considers such action to be in
the best interest of the United States''.
SEC. 674. PHASED RECOVERY OF OVERPAYMENTS OF PAY MADE TO MEMBERS
OF THE UNIFORMED SERVICES.

(a) Phased Recovery Required; Maximum Monthly Installment.--
Subsection (c) of section 1007 of title 37, United States Code, is
amended by adding at the end the following new paragraph:
``(3) If the indebtedness of a member of the uniformed services to
the United States is due to the overpayment of pay or allowances to the
member through no fault of the member, the amount of the overpayment
shall be recovered in monthly installments. The amount deducted from the
pay of the member for a month to recover the overpayment amount may not
exceed 20 percent of the member's pay for that month unless the member
requests or consents to collection of the overpayment at an accelerated
rate.''.

[[Page 2273]]
120 STAT. 2273

(b) Recovery Delay for Injured Members.--Such subsection is further
amended by inserting after paragraph (3), as added by subsection (a),
the following new paragraph:
``(4) If a member of the uniformed services is injured or wounded
under the circumstances described in section 310(a)(2)(C) of this title
or, while in the line of duty, incurs a wound, injury, or illness in a
combat operation or combat zone designated by the Secretary of Defense,
any overpayment of pay or allowances made to the member while the member
recovers from the wound, injury, or illness may not be deducted from the
member's pay until--
``(A) the end of the 90-day period beginning on the date on
which the member is notified of the overpayment; or
``(B) such earlier date as may be requested or agreed to by
the member.''.

(c) Conforming Amendments.--Such subsection is further amended--
(1) by inserting ``(1)'' before ``Under regulations'';
(2) by striking ``his pay'' both places it appears and
inserting ``the member's pay'';
(3) by striking ``However, after'' and inserting the
following:

``(2) After''; and
(4) by inserting ``by a member of the uniformed services''
after ``actually received''.
SEC. 675. NOTE: 10 USC 1781 note. JOINT FAMILY SUPPORT
ASSISTANCE PROGRAM.

(a) Program Required.--The Secretary of Defense shall carry out a
joint family support assistance program for the purpose of providing to
families of members of the Armed Forces the following types of
assistance:
(1) Financial and material assistance.
(2) Mobile support services.
(3) Sponsorship of volunteers and family support
professionals for the delivery of support services.
(4) Coordination of family assistance programs and
activities provided by Military OneSource, Military Family Life
Consultants, counselors, the Department of Defense, other
Federal agencies, State and local agencies, and non-profit
entities.
(5) Facilitation of discussion on military family assistance
programs, activities, and initiatives between and among the
organizations, agencies, and entities referred to in paragraph
(4).
(6) Such other assistance that the Secretary considers
appropriate.

(b) Locations.--The Secretary of Defense shall carry out the program
in not more than six areas of the United States selected by the
Secretary. Up to three of the areas selected for the program shall be
areas that are geographically isolated from military installations.
(c) Resources and Volunteers.--The Secretary of Defense shall
provide personnel and other resources of the Department of Defense
necessary for the implementation and operation of the program and may
accept and utilize the services of non-Government volunteers and non-
profit entities under the program.
(d) Procedures.--The Secretary of Defense shall establish procedures
for the operation of the program and for the provision of assistance to
families of members of the Armed Forces under the program.

[[Page 2274]]
120 STAT. 2274

(e) Relation to Family Support Centers.--The program is not intended
to operate in lieu of existing family support centers, but is instead
intended to augment the activities of the family support centers.
(f) Implementation Plan.--
(1) Plan required.--Not NOTE: Deadline. later than 90
days after the date on which funds are first obligated for the
program, the Secretary of Defense shall submit to the
congressional defense committees a report setting forth a plan
for the implementation of the program.
(2) Elements.--The plan required under paragraph (1) shall
include the following:
(A) A description of the actions taken to select the
areas in which the program will be conducted.
(B) A description of the procedures established
under subsection (d).
(C) A review of proposed actions to be taken under
the program to improve coordination of family assistance
program and activities between and among the Department
of Defense, other Federal agencies, State and local
agencies, and non-profit entities.

(g) Report.--
(1) Report required.--Not later than 270 days after the date
on which funds are first obligated for the program, the
Secretary of Defense shall submit to the congressional defense
committees a report on the program.
(2) Elements.--The report shall include the following:
(A) A description of the program, including the
areas in which the program is conducted, the procedures
established under subsection (d) for operation of the
program, and the assistance provided through the program
for families of members of the Armed Forces.
(B) An assessment of the effectiveness of the
program in providing assistance to families of members
of the Armed Forces.
(C) An assessment of the advisability of extending
the program or making it permanent.

(h) Duration.--The authority to carry out the program shall expire
at the end of the three-year period beginning on the date on which funds
are first obligated for the program.
SEC. 676. NOTE: Establishment. SPECIAL WORKING GROUP ON
TRANSITION TO CIVILIAN EMPLOYMENT OF
NATIONAL GUARD AND RESERVE MEMBERS
RETURNING FROM DEPLOYMENT IN OPERATION
IRAQI FREEDOM OR OPERATION ENDURING
FREEDOM.

(a) Working Group Required.--The Secretary of Defense shall
establish within the Department of Defense a working group to identify
and assess the needs of members of the National Guard and Reserve
returning from deployment in Operation Iraqi Freedom or Operation
Enduring Freedom in making the transition to civilian employment on
their return from such deployment.
(b) Members.--
(1) Appointment.--Subject to paragraph (2), the Secretary of
Defense shall appoint the members of the working group. The
Secretary of Defense shall attempt to achieve a balance of
members on the working group from among employees of the
following agencies:

[[Page 2275]]
120 STAT. 2275

(A) The Department of Defense.
(B) The Department of Veterans Affairs.
(C) The Department of Labor.
(2) Concurrence.--The appointment of employees of the
Department of Veterans Affairs and the Department of Labor under
paragraph (1) shall be subject to the concurrence of the
Secretary of Veterans Affairs and the Secretary of Labor,
respectively.

(c) Responsibilities.--The working group shall--
(1) identify and assess the needs of members of the National
Guard and Reserve returning from deployment in Operation Iraqi
Freedom or Operation Enduring Freedom in making the transition
to civilian employment on their return from deployment,
including the needs of--
(A) members who were self-employed before deployment
and seek to return to such employment after deployment;
(B) members who were students before deployment and
seek to return to school or commence employment after
deployment;
(C) members who have experienced multiple recent
deployments; and
(D) members who have been wounded or injured during
deployment;
(2) identify and assess the extent to which such members
receive promotions on their return from deployment in Operation
Iraqi Freedom or Operation Enduring Freedom or experience
constructive termination by their employers as a result of such
deployment; and
(3) develop recommendations on means of improving assistance
to such members in meeting the needs identified in paragraph (1)
on their return from deployment in Operation Iraqi Freedom or
Operation Enduring Freedom.

(d) Consultation.--In carrying out its responsibilities under
subsection (c), the working group shall consult with the following:
(1) Employees of the Small Business Administration.
(2) Representatives of employers that employ, and
associations of employers whose members employ, members of the
National Guard and Reserve deployed in Operation Iraqi Freedom
or Operation Enduring Freedom.
(3) Representatives of employee assistance organizations.
(4) Representatives of organizations that assist wounded or
injured members of the National Guard and Reserves in finding or
sustaining employment.
(5) Representatives of such other public or private
organizations and entities as the working group considers
appropriate.

(e) Report.--
(1) In general.--Not later than one year after the date of
the enactment of this Act, the working group established under
subsection (a) shall submit to the Secretary of Defense and
Congress a report on its activities under subsection (c).
(2) Elements.--The report shall include the following:
(A) The results of the identifications and
assessments required under subsection (c).
(B) The recommendations developed under subsection
(c)(3), including recommendations on the following:

[[Page 2276]]
120 STAT. 2276

(i) The provision of outreach and training to
employers, employment assistance organizations,
and associations of employers on the employment
and transition needs of members of the National
Guard and Reserve returning from deployment in
Operation Iraqi Freedom or Operation Enduring
Freedom.
(ii) The provision of outreach and training to
employers, employment assistance organizations,
and associations of employers on the needs of
family members of such members.
(iii) The improvement of collaboration between
the public and private sectors in order to ensure
the successful transition of such members into
civilian employment upon their return from such
deployment.
(3) Availability to public.--
The NOTE: Internet. Secretary shall take appropriate actions
to make the report available to the public, including through
the Internet website of the Department of Defense.

(f) Termination.--The working group shall terminate on the date that
is two years after the date of the enactment of this Act.
(g) Employment Assistance Organization Defined.--In this section,
the term ``employment assistance organization'' means an organization or
entity, whether public or private, that provides assistance to
individuals in finding or retaining employment, including organizations
and entities under military career support programs.
SEC. 677. AUDIT OF PAY ACCOUNTS OF MEMBERS OF THE ARMY EVACUATED
FROM A COMBAT ZONE FOR INPATIENT CARE.

(a) Audit Required.--The Secretary of the Army shall conduct a
complete audit of the pay accounts of each member of the Army wounded or
injured in a combat zone who was evacuated from a theater of operations
for inpatient care during the period beginning on May 1, 2005, and
ending on April 30, 2006.
(b) Report on Results of Audit.--
(1) Report required.--Not later than 120 days after the date
of the enactment of this Act, the Secretary shall submit to the
congressional defense committees a report on the audit conducted
under subsection (a).
(2) Identification of members.--The report shall include a
list of each member of the Army described in subsection (a)
identified, in a manner that protects the privacy of the
members, by--
(A) the date of the wound or injury that is the
basis for the inclusion of the member on the list; and
(B) the grade of the member and unit designation as
of that date.
(3) Additional report elements.--For each member included on
the list prepared under paragraph (2), the report shall include
the following:
(A) A statement of any underpayment of each of any
pay, allowance, or other monetary benefit to which the
member was entitled during the period beginning on the
date on which the wound or injury was incurred and
ending on April 30, 2006, including basic pay, hazardous
duty pay, imminent danger pay, basic allowance for
housing,

[[Page 2277]]
120 STAT. 2277

basic allowance for subsistence, any family separation
allowance, any tax exclusion for combat duty, and any
other pay, allowance, or monetary benefit to which such
member was entitled during such period.
(B) A statement of any disbursements made to correct
underpayments made to the member, as identified under
subparagraph (A).
(C) A statement of any debts to the United States
collected or pending collection from the member.
(D) A statement of any reimbursements or debt relief
granted to the member for a debt identified under
subparagraph (C).
(E) If the member has applied to the United States
for a relief of debt--
(i) a description of the nature of the debt
for which relief was applied; and
(ii) a description of the disposition of the
application, including--
(I) if relief was granted, the date
of disbursement of relief; and
(II) if relief was denied, the
reasons for the denial of relief.
(F) A report of any referral of the member to a
collection or credit agency.
(4) Form of report.--The report shall be submitted in
unclassified form, but may include a classified annex.
SEC. 678. REPORT ON ELIGIBILITY AND PROVISION OF ASSIGNMENT
INCENTIVE PAY.

Not later than 60 days after the date of the enactment of this Act,
the Secretary of the Army shall submit to Congress a report--
(1) specifying the number of members of the Army National
Guard and the Army Reserve adversely affected by the disparate
treatment afforded to members who previously served under a call
or order to active duty under section 12304 of title 10, United
States Code, in determining eligibility for assignment incentive
pay; and
(2) containing proposed remedies or courses of action to
correct this disparity, including allowing time served during a
call or order to active duty under such section 12304 to count
toward the time needed to qualify for assignment incentive pay.
SEC. 679. SENSE OF CONGRESS CALLING FOR PAYMENT TO WORLD WAR II
VETERANS WHO SURVIVED BATAAN DEATH MARCH.

(a) Call for Appropriate Compensation.--It is the sense of Congress
that--
(1) there should be paid to each living Bataan Death March
survivor an appropriate amount of compensation in recognition of
their captivity during World War II; and
(2) in the case of a Bataan Death March survivor who is
deceased, but who has an unremarried surviving spouse, such
compensation should be paid to that surviving spouse.

(b) Bataan Death March Survivor.--In this section, the term ``Bataan
Death March survivor'' means an individual who as a member of the Armed
Forces during World War II was captured on the peninsula of Bataan or
island of Corregidor in the territory

[[Page 2278]]
120 STAT. 2278

of the Philippines by Japanese forces and participated in and survived
the Bataan Death March.

TITLE VII--HEALTH CARE PROVISIONS

Subtitle A--TRICARE Program Improvements

Sec. 701. TRICARE coverage for forensic examination following sexual
assault or domestic violence.
Sec. 702. Authorization of anesthesia and other costs for dental care
for children and certain other patients.
Sec. 703. Improvements to descriptions of cancer screening for women.
Sec. 704. Prohibition on increases in certain health care costs for
members of the uniformed services.
Sec. 705. Demonstration project on coverage of selected over-the-counter
drugs under the pharmacy benefits program.
Sec. 706. Expanded eligibility of Selected Reserve members under TRICARE
program.
Sec. 707. Relationship between the TRICARE program and employer-
sponsored group health care plans.
Sec. 708. Temporary prohibition on increase in copayments under retail
pharmacy system of pharmacy benefits program.

Subtitle B--Studies and Reports

Sec. 711. Department of Defense task force on the future of military
health care.
Sec. 712. Study relating to chiropractic health care services.
Sec. 713. Comptroller General audits of Department of Defense health
care costs and cost-saving measures.
Sec. 714. Transfer of custody of the Air Force Health Study assets to
Medical Follow-up Agency.
Sec. 715. Study on allowing dependents of activated members of reserve
components to retain civilian health care coverage.
Sec. 716. Study of health effects of exposure to depleted uranium.
Sec. 717. Report and plan on services to military dependent children
with autism.
Sec. 718. Comptroller General study on Department of Defense pharmacy
benefits program.
Sec. 719. Review of Department of Defense medical quality improvement
program.
Sec. 720. Report on distribution of hemostatic agents for use in the
field.
Sec. 721. Longitudinal study on traumatic brain injury incurred by
members of the Armed Forces in Operation Iraqi Freedom and
Operation Enduring Freedom.

Subtitle C--Planning, Programming, and Management

Sec. 731. Standardization of claims processing under TRICARE program and
Medicare program.
Sec. 732. Requirements for support of military treatment facilities by
civilian contractors under TRICARE.
Sec. 733. Standards and tracking of access to health care services for
wounded, injured, or ill servicemembers returning to the
United States from a combat zone.
Sec. 734. Disease and chronic care management.
Sec. 735. Additional elements of assessment of Department of Defense
task force on mental health relating to mental health of
members who were deployed in Operation Iraqi Freedom and
Operation Enduring Freedom.
Sec. 736. Additional authorized option periods for extension of current
contracts under TRICARE.
Sec. 737. Military vaccination matters.
Sec. 738. Enhanced mental health screening and services for members of
the Armed Forces.

Subtitle D--Other Matters

Sec. 741. Pilot projects on early diagnosis and treatment of post
traumatic stress disorder and other mental health conditions.
Sec. 742. Requirement to certify and report on conversion of military
medical and dental positions to civilian medical and dental
positions.
Sec. 743. Three-year extension of joint incentives program on sharing of
health care resources by the Department of Defense and
Department of Veterans Affairs.
Sec. 744. Training curricula for family caregivers on care and
assistance for members and former members of the Armed Forces
with traumatic brain injury.

[[Page 2279]]
120 STAT. 2279

Sec. 745. Recognition of Representative Lane Evans upon his retirement
from the House of Representatives.

Subtitle A--TRICARE Program Improvements

SEC. 701. TRICARE COVERAGE FOR FORENSIC EXAMINATION FOLLOWING
SEXUAL ASSAULT OR DOMESTIC VIOLENCE.

Section 1079(a) of title 10, United States Code, is amended by
adding at the end the following new paragraph:
``(17) Forensic examinations following a sexual assault or
domestic violence may be provided.''.
SEC. 702. AUTHORIZATION OF ANESTHESIA AND OTHER COSTS FOR DENTAL
CARE FOR CHILDREN AND CERTAIN OTHER
PATIENTS.

Paragraph (1) of section 1079(a) of title 10, United States Code, is
amended to read as follows:
``(1) With respect to dental care--
``(A) except as provided in subparagraph (B), only
that care required as a necessary adjunct to medical or
surgical treatment may be provided; and
``(B) in connection with dental treatment for
patients with developmental, mental, or physical
disabilities or for pediatric patients age 5 or under,
only institutional and anesthesia services may be
provided.''.
SEC. 703. IMPROVEMENTS TO DESCRIPTIONS OF CANCER SCREENING FOR
WOMEN.

(a) Terms Related to Primary and Preventive Health Care Services for
Women.--Section 1074d of title 10, United States Code, is amended--
(1) in subsection (a)(1), by adding at the end the following
new sentence: ``The services described in paragraphs (1) and (2)
of subsection (b) shall be provided under such procedures and at
such intervals as the Secretary of Defense shall prescribe.'';
and
(2) in subsection (b)--
(A) in paragraph (1), by striking ``Papanicolaou
tests (pap smear)'' and inserting ``Cervical cancer
screening''; and
(B) in paragraph (2), by striking ``Breast
examinations and mammography'' and inserting ``Breast
cancer screening''.

(b) Terms Related to Contracts for Medical Care for Spouses and
Children.--Section 1079(a)(2) of such title is amended--
(1) in the matter preceding subparagraph (A), by striking
``the schedule of pap smears and mammograms'' and inserting
``the schedule and method of cervical cancer screenings and
breast cancer screenings''; and
(2) in subparagraph (B), by striking ``pap smears and
mammograms'' and inserting ``cervical and breast cancer
screenings''.

[[Page 2280]]
120 STAT. 2280

SEC. 704. PROHIBITION ON INCREASES IN CERTAIN HEALTH CARE COSTS
FOR MEMBERS OF THE UNIFORMED SERVICES.

(a) Prohibition on Increase in Charges Under Contracts for Medical
Care.--Section 1097(e) of title 10, United States Code, is amended by
adding at the end the following: ``A premium, deductible, copayment, or
other charge prescribed by the Secretary under this subsection may not
be increased during the period beginning on April 1, 2006, and ending on
September 30, 2007.''.
(b) Prohibition on Increase in Charges for Inpatient Care.--Section
1086(b)(3) of title 10, United States Code, is amended by inserting
after ``charges for inpatient care'' the following: ``, except that in
no case may the charges for inpatient care for a patient exceed $535 per
day during the period beginning on April 1, 2006, and ending on
September 30, 2007.''.
(c) Prohibition on Increase in Premiums Under TRICARE Coverage for
Certain Members in the Selected Reserve.--Section 1076d(d)(3) of title
10, United States Code, is amended by adding at the end the following:
``During the period beginning on April 1, 2006, and ending on September
30, 2007, the monthly amount of the premium may not be increased above
the amount in effect for the month of March 2006.''.
(d) Prohibition on Increase in Premiums Under TRICARE Coverage for
Members of the Ready Reserve.--Section 1076b(e)(3) of title 10, United
States Code, is amended by adding at the end the following: ``During the
period beginning on April 1, 2006, and ending on September 30, 2007, the
monthly amount of a premium under paragraph (2) may not be increased
above the amount in effect for the first month health care is provided
under this section as amended by Public Law 109-163.''.
SEC. 705. NOTE: 10 USC 1074g note. DEMONSTRATION PROJECT ON
COVERAGE OF SELECTED OVER-THE-COUNTER
DRUGS UNDER THE PHARMACY BENEFITS PROGRAM.

(a) Requirement to Conduct Demonstration.--The Secretary of Defense
shall conduct a demonstration project under section 1092 of title 10,
United States Code, to allow particular over-the-counter drugs to be
included on the uniform formulary under section 1074g of such title.
(b) Elements of Demonstration Project.--
(1) Inclusion of certain over-the-counter drugs.--(A) As
part of the demonstration project, the Secretary shall modify
uniform formulary specifications under section 1074g(a) of such
title to include an over-the-counter drug (referred to in this
section as an ``OTC drug'') on the uniform formulary if the
Pharmacy and Therapeutics Committee finds that the OTC drug is
cost-effective and therapeutically equivalent to a prescription
drug. If the Pharmacy and Therapeutics Committee makes such a
finding, the OTC drug shall be considered to be in the same
therapeutic class of pharmaceutical agents as the prescription
drug.
(B) An OTC drug shall be made available to a beneficiary
through the demonstration project, but only if--
(i) the beneficiary has a prescription for a drug
requiring a prescription; and
(ii) pursuant to subparagraph (A), the OTC drug--
(I) is on the uniform formulary; and

[[Page 2281]]
120 STAT. 2281

(II) has been determined to be therapeutically
equivalent to the prescription drug.
(2) Conduct through military facilities, retail pharmacies,
or mail order program.--The Secretary shall conduct the
demonstration project through at least two of the means
described in subparagraph (E) of section 1074g(a)(2)(E) of such
title through which OTC drugs are provided and may conduct the
demonstration project throughout the entire pharmacy benefits
program or at a limited number of sites. If the project is
conducted at a limited number of sites, the number of sites
shall be not less than five in each TRICARE region for each of
the two means described in such subparagraph.
(3) Period of demonstration.--The Secretary shall provide
for conducting the demonstration project for a period of time
necessary to evaluate the feasibility and cost effectiveness of
the demonstration. Such period shall be at least as long as the
period covered by pharmacy contracts in existence on the date of
the enactment of this Act (including any extensions of the
contracts), or five years, whichever is shorter.
(4) Implementation deadline.--Implementation of the
demonstration project shall begin not later than May 1, 2007.

(c) Evaluation of Demonstration Project.--The Secretary shall
evaluate the demonstration project for the following:
(1) The costs and benefits of providing OTC drugs under the
pharmacy benefits program in each of the means chosen by the
Secretary to conduct the demonstration project.
(2) The clinical effectiveness of providing OTC drugs under
the pharmacy benefits program.
(3) Customer satisfaction with the demonstration project.

(d) Report.--Not later than two years after implementation of the
demonstration project begins, the Secretary shall submit to the
Committees on Armed Services of the Senate and House of Representatives
a report on the demonstration project. The report shall contain--
(1) the evaluation required by subsection (c);
(2) recommendations for improving the provision of OTC drugs
under the pharmacy benefits program; and
(3) recommendations on whether permanent authority should be
provided to cover OTC drugs under the pharmacy benefits program.

(e) Continuation of Demonstration Project.--If the Secretary
recommends in the report under subsection (d) that permanent authority
should be provided, the Secretary may continue the demonstration project
for up to one year after submitting the report.
(f) Definitions.--In this section:
(1) The term ``drug'' means a drug, including a biological
product, within the meaning of section 1074g(f)(2) of title 10,
United States Code.
(2) The term ``OTC drug'' has the meaning indicated for such
term in subsection (b)(1)(A).
(3) The term ``over-the-counter drug'' means a drug that is
not subject to section 503(b) of the Federal Food, Drug, and
Cosmetic Act.
(4) The term ``prescription drug'' means a drug that is
subject to section 503(b) of the Federal Food, Drug, and
Cosmetic Act.

[[Page 2282]]
120 STAT. 2282

SEC. 706. EXPANDED ELIGIBILITY OF SELECTED RESERVE MEMBERS UNDER
TRICARE PROGRAM.

(a) General Eligibility.--Subsection (a) of section 1076d of title
10, United States Code, is amended--
(1) by striking ``(a) Eligibility.--A member'' and inserting
``(a) Eligibility.--(1) Except as provided in paragraph (2), a
member'';
(2) by striking ``after the member completes'' and all that
follows through ``one or more whole years following such date'';
and
(3) by adding at the end the following new paragraph:

``(2) Paragraph (1) does not apply to a member who is enrolled, or
is eligible to enroll, in a health benefits plan under chapter 89 of
title 5.''.
(b) Condition for Termination of Eligibility.--Subsection (b) of
such section is amended--
(1) by striking ``(b) Period of Coverage.--(1) TRICARE
Standard'' and all that follows through ``(4) Eligibility'' and
inserting ``(b) Termination of Eligibility Upon Termination of
Service.--Eligibility''; and
(2) by striking paragraph (5).

(c) Conforming Amendments.--
(1) Such section is further amended--
(A) by striking subsection (e);
(B) by redesignating subsection (g) as subsection
(e) and transferring such subsection within such section
so as to appear following subsection (d); and
(C) by striking paragraph (3) of subsection (f).
(2) The heading for such section is amended to read as
follows:

``Sec. 1076d. TRICARE program: TRICARE standard coverage for members of
the Selected Reserve''.

(d) Repeal of Obsolete Provision.--Effective NOTE: Effective
date. October 1, 2007, section 1076b of title 10, United States Code,
is repealed.

(e) Clerical Amendments.--Effective NOTE: Effective
date. October 1, 2007, the table of sections at the beginning of
chapter 55 of title 10, United States Code, is amended--
(1) by striking the item relating to section 1076b; and
(2) by striking the item relating to section 1076d and
inserting the following:

``1076d. TRICARE program: TRICARE Standard coverage for members of the
Selected Reserve.''.

(f) NOTE: 10 USC 1076d note. Savings Provision.--Enrollments in
TRICARE Standard that are in effect on the day before the date of the
enactment of this Act under section 1076d of title 10, United States
Code, as in effect on such day, shall be continued until terminated
after such day under such section 1076d as amended by this section.

(g) NOTE: 10 USC 1076d note. Effective Date.--The Secretary of
Defense shall ensure that health care under TRICARE Standard is provided
under section 1076d of title 10, United States Code, as amended by this
section, beginning not later than October 1, 2007.

[[Page 2283]]
120 STAT. 2283

SEC. 707. RELATIONSHIP BETWEEN THE TRICARE PROGRAM AND EMPLOYER-
SPONSORED GROUP HEALTH CARE PLANS.

(a) In General.--Chapter 55 of title 10, United States Code, is
amended by inserting after section 1097b the following new section:

``Sec. 1097c. TRICARE program: relationship with employer-sponsored
group health plans

``(a) Prohibition on Financial Incentives Not to Enroll in a Group
Health Plan.--(1) Except as provided in this subsection, the provisions
of section 1862(b)(3)(C) of the Social Security Act shall apply with
respect to financial or other incentives for a TRICARE-eligible employee
not to enroll (or to terminate enrollment) under a health plan which
would (in the case of such enrollment) be a primary plan under sections
1079(j)(1) and 1086(g) of this title in the same manner as such section
1862(b)(3)(C) applies to financial or other incentives for an individual
entitled to benefits under title XVIII of the Social Security Act not to
enroll (or to terminate enrollment) under a group health plan or a large
group health plan which would (in the case of enrollment) be a primary
plan (as defined in section 1862(b)(2)(A) of such Act).
``(2)(A) The Secretary of Defense may by regulation adopt such
additional exceptions to the prohibition referenced and applied under
paragraph (1) as the Secretary deems appropriate and such paragraph (1)
shall be implemented taking into account the adoption of such
exceptions.
``(B) The Secretary of Defense and the Secretary of Health and Human
Services are authorized to enter into agreements for carrying out this
subsection. Any such agreement shall provide that any expenses incurred
by the Secretary of Health and Human Services pertaining to carrying out
this subsection shall be reimbursed by the Secretary of Defense.
``(C) Authorities of the Inspector General of the Department of
Defense shall be available for oversight and investigations of
responsibilities of employers and other entities under this subsection.
``(D) Information obtained under section 1095(k) of this title may
be used in carrying out this subsection in the same manner as
information obtained under section 1862(b)(5) of the Social Security Act
may be used in carrying out section 1862(b) of such Act.
``(E) Any amounts collected in carrying out paragraph (1) shall be
handled in accordance with section 1079a of this title.
``(b) Election of TRICARE-Eligible Employees to Participate in Group
Health Plan.--A TRICARE-eligible employee shall have the opportunity to
elect to participate in the group health plan offered by the employer of
the employee and receive primary coverage for health care services under
the plan in the same manner and to the same extent as similarly situated
employees of such employer who are not TRICARE-eligible employees.
``(c) Inapplicability to Certain Employers.--The provisions of this
section do not apply to any employer who has fewer than 20 employees.
``(d) Retention of Eligibility for Coverage Under TRICARE.--Nothing
in this section, including an election made by a TRICARE-eligible
employee under subsection (b), shall be construed to affect, modify, or
terminate the eligibility of a

[[Page 2284]]
120 STAT. 2284

TRICARE-eligible employee or spouse of such employee for health care or
dental services under this chapter in accordance with the other
provisions of this chapter.
``(e) Outreach.--The Secretary of Defense shall, in coordination
with the other administering Secretaries, conduct outreach to inform
covered beneficiaries who are entitled to health care benefits under the
TRICARE program of the rights and responsibilities of such beneficiaries
and employers under this section.
``(f) Definitions.--In this section:
``(1) The term `employer' includes a State or unit of local
government.
``(2) The term `group health plan' means a group health plan
(as that term is defined in section 5000(b)(1) of the Internal
Revenue Code of 1986 without regard to section 5000(d) of the
Internal Revenue Code of 1986).
``(3) The term `TRICARE-eligible employee' means a covered
beneficiary under section 1086 of this title entitled to health
care benefits under the TRICARE program.

``(g) Effective Date.--This section shall take effect on January 1,
2008.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 55 of such title is amended by inserting after the item relating
to section 1097b the following new item:

``1097c. TRICARE program: relationship with employer-sponsored group
health plans.''.

SEC. 708. TEMPORARY PROHIBITION ON INCREASE IN COPAYMENTS UNDER
RETAIL PHARMACY SYSTEM OF PHARMACY
BENEFITS PROGRAM.

(a) Temporary Prohibition.--During NOTE: Effective date. the
period beginning on October 1, 2006, and ending on September 30, 2007,
the cost sharing requirements established under paragraph (6) of section
1074g of title 10, United States Code, for pharmaceutical agents
available through retail pharmacies covered by paragraph (2)(E)(ii) of
such section may not exceed amounts as follows:
(1) In the case of generic agents, $3.
(2) In the case of formulary agents, $9.
(3) In the case of nonformulary agents, $22.

(b) Transfer of Funds.--The Secretary of Defense shall transfer
$186,000,000 from the unobligated balances of the National Defense
Stockpile Transaction Fund to the Department of Defense Medicare-
Eligible Retiree Health Care Fund.

Subtitle B--Studies and Reports

SEC. 711. DEPARTMENT OF DEFENSE TASK FORCE ON THE FUTURE OF
MILITARY HEALTH CARE.

(a) Requirement to Establish.--The Secretary of Defense shall
establish within the Department of Defense a task force to examine
matters relating to the future of military health care.
(b) Composition.--
(1) Members.--The task force shall consist of not more than
14 members appointed by the Secretary of Defense from among
individuals described in paragraph (2) who have demonstrated
expertise in the area of health care programs and costs.

[[Page 2285]]
120 STAT. 2285

(2) Range of members.--The individuals appointed to the task
force shall include--
(A) at least one member of each of the Medical
Departments of the Army, Navy, and Air Force;
(B) a number of persons from outside the Department
of Defense equal to the total number of personnel from
within the Department of Defense (whether members of the
Armed Forces or civilian personnel) who are appointed to
the task force;
(C) persons who have experience in--
(i) health care actuarial forecasting;
(ii) health care program and budget
development;
(iii) health care information technology;
(iv) health care performance measurement;
(v) health care quality improvement including
evidence-based medicine; and
(vi) women's health;
(D) the senior medical advisor to the Chairman of
the Joint Chiefs of Staff;
(E) the Director of Defense Procurement and
Acquisition Policy in the Office of the Under Secretary
of Defense for Acquisition, Technology, and Logistics;
(F) at least one member from the Defense Business
Board;
(G) at least one representative from an organization
that advocates on behalf of active duty and retired
members of the Armed Forces who has experience in health
care; and
(H) at least one member from the Institute of
Medicine.
(3) Individuals appointed outside the department of
defense.--
(A) Individuals appointed to the task force from
outside the Department of Defense may include officers
or employees of other departments or agencies of the
Federal Government, officers or employees of State and
local governments, or individuals from the private
sector.
(B) Individuals appointed to the task force from
outside the Department of Defense shall include--
(i) an officer or employee of the Department
of Veterans Affairs; and
(ii) an officer or employee of the Department
of Health and Human Services.
(4) Deadline for appointment.--All appointments of
individuals to the task force shall be made not later than 90
days after the date of the enactment of this Act.
(5) Co-chairs of task force.--There shall be two co-chairs
of the task force. One of the co-chairs shall be designated by
the Secretary of Defense at the time of appointment from among
the Department of Defense personnel appointed to the task force.
The other co-chair shall be selected from among the members
appointed from outside the Department of Defense by members so
appointed.

(c) Assessment and Recommendations on the Future of Military Health
Care.--
(1) In general.--Not NOTE: Reports. later than 12 months
after the date on which all members of the task force have been
appointed, the task force shall submit to the Secretary a report
containing

[[Page 2286]]
120 STAT. 2286

an assessment of, and recommendations for, sustaining the
military health care services being provided to members of the
Armed Forces, retirees, and their families.
(2) Utilization of other efforts.--In preparing the report,
the task force shall take into consideration the findings and
recommendations included in the Healthcare for Military Retirees
Task Group of the Defense Business Board, previous Government
Accountability Office reports, studies and reviews by the
Assistant Secretary of Defense for Health Affairs, and any other
studies or research conducted by organizations regarding program
and organizational improvements to the military health care
system.
(3) Elements.--The assessment and recommendations (including
recommendations for legislative or administrative action) shall
include measures to address the following:
(A) Wellness initiatives and disease management
programs of the Department of Defense, including health
risk tracking and the use of rewards for wellness.
(B) Education programs focused on prevention
awareness and patient-initiated health care.
(C) The ability to account for the true and accurate
cost of health care in the military health system.
(D) Alternative health care initiatives to manage
patient behavior and costs, including options and costs
and benefits of a universal enrollment system for all
TRICARE users.
(E) The appropriate command and control structure
within the Department of Defense and the Armed Forces to
manage the military health system.
(F) The adequacy of the military health care
procurement system, including methods to streamline
existing procurement activities.
(G) The appropriate mix of military and civilian
personnel to meet future readiness and high-quality
health care service requirements.
(H) The beneficiary and Government cost sharing
structure required to sustain military health benefits
over the long term.
(I) Programs focused on managing the health care
needs of Medicare-eligible military beneficiaries.
(J) Efficient and cost effective contracts for
health care support and staffing services, including
performance-based requirements for health care provider
reimbursement.

(d) Administrative Matters.--
(1) Compensation.--Each member of the task force who is a
member of the Armed Forces or a civilian officer or employee of
the United States shall serve without compensation (other than
compensation to which entitled as a member of the Armed Forces
or an officer or employee of the United States, as the case may
be). Other members of the task force shall be treated for
purposes of section 3161 of title 5, United States Code, as
having been appointed under subsection (b) of such section.
(2) Oversight.--The Under Secretary of Defense for Personnel
and Readiness shall oversee the activities of the task force.

[[Page 2287]]
120 STAT. 2287

(3) Administrative support.--The Washington Headquarters
Services of the Department of Defense shall provide the task
force with personnel, facilities, and other administrative
support as necessary for the performance of the duties of the
task force.
(4) Access to facilities.--The Under Secretary of Defense
for Personnel and Readiness shall, in coordination with the
Secretaries of the military departments, ensure appropriate
access by the task force to military installations and
facilities for purposes of the discharge of the duties of the
task force.

(e) Reports.--
(1) Interim report.--Not later than May 31, 2007, the task
force shall submit to the Secretary of Defense and the
Committees on Armed Services of the Senate and the House of
Representatives an interim report on the activities of the task
force. At a minimum, the report shall include interim findings
and recommendations regarding subsection (c)(3)(H), particularly
with regard to cost sharing under the pharmacy benefits program.
(2) Final report.--(A) The task force shall submit to the
Secretary of Defense a final report on its activities under this
section. The report shall include--
(i) a description of the activities of the task
force;
(ii) the assessment and recommendations required by
subsection (c); and
(iii) such other matters relating to the activities
of the task force that the task force considers
appropriate.
(B) Not later than 90 days after receipt of the report under
subparagraph (A), the Secretary shall transmit the report to the
Committees on Armed Services of the Senate and the House of
Representatives. The Secretary may include in the transmittal
such comments on the report as the Secretary considers
appropriate.

(f) Termination.--The task force shall terminate 90 days after the
date on which the final report of the task force is transmitted to
Congress under subsection (e)(2).
SEC. 712. STUDY RELATING TO CHIROPRACTIC HEALTH CARE SERVICES.

(a) Study Required.--
(1) Groups covered.--The Secretary of Defense shall conduct
a study of providing chiropractic health care services and
benefits to the following groups:
(A) All members of the uniformed services on active
duty and entitled to care under section 1074(a) of title
10, United States Code.
(B) All members described in subparagraph (A) and
their eligible dependents, and all members of the
Selected Reserves and their eligible dependents.
(C) All members or former members of the uniformed
services who are entitled to retired or retainer pay or
equivalent pay and their eligible dependents.
(2) Matters examined.--
(A) For each group listed in subparagraphs (A), (B),
and (C) of paragraph (1), the study shall examine the
following with respect to chiropractic health care
services and benefits:

[[Page 2288]]
120 STAT. 2288

(i) The cost of providing such services and
benefits.
(ii) The feasibility of providing such
services and benefits.
(iii) An assessment of the health care
benefits of providing such services and benefits.
(iv) An estimate of the potential cost savings
of providing such services and benefits in lieu of
other medical services.
(v) The identification of existing and planned
health care infrastructure, including personnel,
equipment, and facilities, to accommodate the
provision of chiropractic health care services.
(B) For the members of the group listed in
subparagraph (A) of paragraph (1), the study shall also
examine the effects of providing chiropractic health
care services and benefits--
(i) on the readiness of such members; and
(ii) on the acceleration of the return to duty
of such members following an identified injury or
other malady that can be appropriately treated
with chiropractic health care services.
(3) Space available costs.--The study shall also include a
detailed analysis of the projected costs of providing
chiropractic health care services on a space available basis in
the military treatment facilities currently providing
chiropractic care under section 702 of the Floyd D. Spence
National Defense Authorization Act of Fiscal Year 2001 (as
enacted by Public Law 106-398; 10 U.S.C. 1092 note).
(4) Eligible dependent defined.--In this section, the term
``eligible dependent'' has the meaning given that term in
section 1076a(k) of title 10, United States Code.

(b) Report Required.--Not later than March 31, 2008, the Secretary
of Defense shall submit to the Committees on Armed Services of the
Senate and the House of Representatives a report on the study required
under subsection (a).
SEC. 713. COMPTROLLER GENERAL AUDITS OF DEPARTMENT OF DEFENSE
HEALTH CARE COSTS AND COST-SAVING
MEASURES.

(a) General Audit Required.--
(1) In general.--The Comptroller General of the United
States, in cooperation with the Director of the Congressional
Budget Office, shall conduct an audit of the Department of
Defense initiative to manage future medical benefits available
through the Department known as ``Sustain the Benefit''.
(2) Elements.--The audit required by paragraph (1) shall
examine the following:
(A) The basis for the calculation by the Department
of Defense of the portion of the costs of health care
benefits provided by the Department to beneficiaries
that were paid by such beneficiaries in each of 1995 and
2005, including--
(i) a comparison of the cost to the Department
of providing such benefits in each of 1995 and
2005;
(ii) the explanation for any increases in the
costs of the Department of providing such benefits
between 1995 and 2005; and

[[Page 2289]]
120 STAT. 2289

(iii) a comparison of the amounts paid, by
category of beneficiaries, for health care
benefits in 1995 with the amounts paid, by
category of beneficiaries, for such benefits in
2005.
(B) The calculations and assumptions utilized by the
Department in estimating the savings anticipated through
the implementation of proposed increases in cost-sharing
for health care benefits beginning in 2007.
(C) The average annual rate of increase, based on
inflation, of medical costs for the Department under the
Defense Health Program.
(D) The annual rate of growth in the cost of the
Defense Health Program that is attributable to inflation
in the cost of medical services over the last five years
and how such rate of growth compares with annual rates
of increases in health care premiums under the Federal
Employee Health Benefit Program and other health care
programs as well as rates of growth of other health care
cost indices over that time.
(E) The assumptions utilized by the Department in
estimating savings associated with adjustments in
copayments for pharmaceuticals.
(F) The costs of the administration of the Defense
Health Program and the TRICARE program for all
categories of beneficiaries.

(b) Audit of TRICARE Reserve Select Program.--
(1) In general.--In addition to the audit required by
subsection (a), the Comptroller General shall conduct an audit
of the costs of the Department of Defense in implementing the
TRICARE Reserve Select Program.
(2) Elements.--The audit required by paragraph (1) shall
include an examination of the following:
(A) A comparison of the annual premium amounts
established by the Department of Defense for the TRICARE
Reserve Select Program with the actual costs of the
Department in providing benefits under that program in
fiscal years 2004 and 2005.
(B) The rate of inflation of health care costs of
the Department during fiscal years 2004 and 2005, and a
comparison of that rate of inflation with the annual
increase in premiums under the TRICARE Reserve Select
Program in January 2006.
(C) A comparison of the financial and health-care
utilization assumptions utilized by the Department in
establishing premiums under the TRICARE Reserve Select
Program with actual experiences under that program in
the first year of the implementation of that program.
(3) TRICARE reserve select program defined.--In this
section, the term ``TRICARE Reserve Select Program'' means the
program carried out under section 1076d of title 10, United
States Code.

(c) Use of Independent Experts.--Notwithstanding any other provision
of law, in conducting the audits required by this section, the
Comptroller General may engage the services of appropriate independent
experts, including actuaries.
(d) Report.--Not later than June 1, 2007, the Comptroller General
shall submit to the congressional defense committees a

[[Page 2290]]
120 STAT. 2290

report on the audits conducted under this section. The report shall
include--
(1) the findings of the Comptroller General as a result of
the audits; and
(2) such recommendations as the Comptroller General
considers appropriate in light of such findings to ensure
maximum efficiency in the administration of the health care
benefits programs of the Department of Defense.
SEC. 714. TRANSFER OF CUSTODY OF THE AIR FORCE HEALTH STUDY ASSETS
TO MEDICAL FOLLOW-UP AGENCY.

(a) Transfer.--
(1) Notification of participants.--The Secretary of the Air
Force shall notify the participants of the Air Force Health
Study that the study as currently constituted is ending as of
September 30, 2006. In consultation with the Medical Follow-up
Agency (in this section referred to as the ``Agency'') of the
Institute of Medicine of the National Academy of Sciences, the
Secretary of the Air Force shall request the written consent of
the participants to transfer their data and biological specimens
to the Agency during fiscal year 2007 and written consent for
the Agency to maintain the data and specimens and make them
available for additional studies.
(2) Completion of NOTE: Deadline. transfer.--
Custodianship of the Air Force Health Study shall be completely
transferred to the Agency on or before September 30, 2007.
Assets to be transferred shall include electronic data files and
biological specimens of all the study participants.
(3) Copies to archives.--The Air Force shall send paper
copies of all study documents to the National Archives.

(b) Report on Transfer.--
(1) Requirement.--Not later than 30 days after completion of
the transfer of the assets of the Air Force Health Study under
subsection (a), the Secretary of the Air Force shall submit to
the Committees on Armed Services of the Senate and the House of
Representatives a report on the transfer.
(2) Matters covered.--At a minimum, the report shall include
information on the number of study participants whose data and
biological specimens were not transferred, the efforts that were
taken to contact such participants, and the reasons why the
transfer of their data and specimens did not occur.

(c) Disposition of Assets Not Transferred.--The Secretary of the Air
Force may not destroy any data or biological specimens not transferred
under subsection (a) until the expiration of the one-year period
following submission of the report under subsection (b).
(d) Funding.--
(1) Costs of transfer.--The Secretary of Defense shall make
available to the Air Force $850,000 for preparation, transfer of
the assets of the Air Force Health Study, and shipment of data
and specimens to the Medical Follow-up Agency and the National
Archives during fiscal year 2007 from amounts available from the
Department of Defense for that fiscal year. The Secretary of
Defense is authorized to transfer the freezers and other
physical assets assigned to the Air Force Health Study to the
Agency without charge.

[[Page 2291]]
120 STAT. 2291

(2) Costs of collaboration.--The Secretary of Defense may
reimburse the National Academy of Sciences up to $200,000 for
costs of the Medical Follow-up Agency to collaborate with the
Air Force in the transfer and receipt of the assets of the Air
Force Health Study to the Agency during fiscal year 2007 from
amounts available from the Department of Defense for that fiscal
year.
SEC. 715. STUDY ON ALLOWING DEPENDENTS OF ACTIVATED MEMBERS OF
RESERVE COMPONENTS TO RETAIN CIVILIAN
HEALTH CARE COVERAGE.

(a) Study Requirement.--The Secretary of Defense shall conduct a
study on the feasibility of allowing family members of members of the
reserve components of the Armed Forces who are called or ordered to
active duty in support of a contingency operation to continue health
care coverage under a civilian health care program and provide
reimbursement for such health care.
(b) Elements.--The study required by subsection (a) shall include
the following:
(1) An assessment of the number of military dependents with
special health care needs (such as ongoing chemotherapy or
physical therapy) who would benefit from continued coverage
under the member's civilian health care plan instead of
enrolling in the TRICARE program.
(2) An assessment of the feasibility of providing
reimbursement to the member or the sponsor of the civilian
health coverage.
(3) A recommendation on the appropriate rate of
reimbursement for members or sponsors of civilian health
coverage.
(4) The feasibility of including dependents who do not have
access to health care providers that accept payment under the
TRICARE program.

(c) Report Required.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Defense shall submit to the
Committees on Armed Services of the Senate and the House of
Representatives a report on the study required under subsection (a).
SEC. 716. STUDY OF HEALTH EFFECTS OF EXPOSURE TO DEPLETED URANIUM.

(a) Study.--The Secretary of Defense, in consultation with the
Secretary for Veterans Affairs and the Secretary of Health and Human
Services, shall conduct a comprehensive study of the health effects of
exposure to depleted uranium munitions on uranium-exposed soldiers and
on children of uranium-exposed soldiers who were born after the exposure
of the uranium-exposed soldiers to depleted uranium.
(b) Uranium-Exposed Soldiers.--In this section, the term ``uranium-
exposed soldiers'' means a member or former member of the Armed Forces
who handled, came in contact with, or had the likelihood of contact with
depleted uranium munitions while on active duty, including members and
former members who--
(1) were exposed to smoke from fires resulting from the
burning of vehicles containing depleted uranium munitions or
fires at depots at which depleted uranium munitions were stored;
(2) worked within environments containing depleted uranium
dust or residues from depleted uranium munitions;

[[Page 2292]]
120 STAT. 2292

(3) were within a structure or vehicle while it was struck
by a depleted uranium munition;
(4) climbed on or entered equipment or structures struck by
a depleted uranium munition; or
(5) were medical personnel who provided initial treatment to
members of the Armed Forces described in paragraph (1), (2),
(3), or (4).

(c) Report.--Not later than one year after the date of the enactment
of this Act, the Secretary of Defense shall submit to Congress a report
on the results of the study described in subsection (a).
SEC. 717. REPORT AND PLAN ON SERVICES TO MILITARY DEPENDENT
CHILDREN WITH AUTISM.

(a) Plan Required.--The Secretary of Defense shall, within 180 days
after the date of the enactment of this Act, develop a plan to provide
services to military dependent children with autism pursuant to the
authority for an extended health care services program in subsections
(d) and (e) of section 1079 of title 10, United States Code. Such plan
shall include--
(1) requirements for the education, training, and
supervision of individuals providing services for military
dependent children with autism;
(2) standards for identifying and measuring the
availability, distribution, and training of individuals of
various levels of expertise to provide such services; and
(3) procedures to ensure that such services are in addition
to other publicly provided services to such children.

(b) Participation of Affected Families.--In developing the plan
required under subsection (a), the Secretary shall ensure the
involvement and participation of affected military families or their
representatives.
(c) Report Required.--Not later than 30 days after completion of the
plan required under subsection (a), the Secretary shall submit to the
Committees on Armed Services of the Senate and the House of
Representatives a report on the plan. The report may include any
additional information the Secretary considers relevant.
SEC. 718. COMPTROLLER GENERAL STUDY ON DEPARTMENT OF DEFENSE
PHARMACY BENEFITS PROGRAM.

(a) In General.--The Comptroller General of the United States shall
conduct a study of the Department of Defense pharmacy benefits program
required by section 1074g of title 10, United States Code.
(b) Elements.--The study required by subsection (a) shall include an
examination of the following:
(1) The cost of the Department of Defense pharmacy benefits
program since the inception of the program.
(2) The relative costs of various options under the program.
(3) The copayment structure under the program.
(4) The effectiveness of the rebate system under the program
as a way of passing on discounts received by the Federal
Government in the purchase of pharmaceutical agents.
(5) The uniform formulary under the program, including the
success of the formulary in achieving savings anticipated
through use of the formulary.

[[Page 2293]]
120 STAT. 2293

(6) Various alternative means of purchasing pharmaceutical
agents more efficiently for availability under the program.
(7) The composition and decision-making processes of the
Pharmacy and Therapeutics Committee.
(8) The composition of the Beneficiary Advisory Panel and
its history as an advisory panel under the program (including
the frequency of the acceptance of its recommendations by the
Secretary of Defense).
(9) Quality assurance mechanisms under the program.
(10) The role of the program in support of the disease and
chronic care management programs of the Department of Defense.
(11) Mechanisms for customer service and customer feedback
under the program.
(12) Beneficiary satisfaction with the program.

(c) Report.--Not later than nine months after the date of the
enactment of this Act, the Comptroller General shall submit to the
congressional defense committees a report on the study required by
subsection (a). The report shall include such recommendations as the
Comptroller General considers appropriate for legislative or
administrative action to improve the Department of Defense pharmacy
benefits program in light of the study.
SEC. 719. REVIEW OF DEPARTMENT OF DEFENSE MEDICAL QUALITY
IMPROVEMENT PROGRAM.

(a) Report Required.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of Defense shall submit
to the Committees on Armed Services of the Senate and the House
of Representatives a report on actions taken in response to the
recommendations of the July 2001 report of the Department of
Defense Healthcare Quality Initiatives Review Panel.
(2) Matters covered.--The report shall address the status of
actions concerning each of the Panel's general and specific
recommendations, including the amount of resources allocated by
fiscal year to implement each recommendation. In any instance in
which no action has been taken, justification for such inaction
shall be provided in the report.

(b) Review Required.--
(1) In general.--The NOTE: Contracts. Secretary of
Defense shall enter into a contract with the Institute of
Medicine of the National Academy of Sciences, or another
similarly qualified independent academic medical organization,
for the purpose of conducting an independent review of the
Department of Defense medical quality improvement program.
(2) Elements.--The review required pursuant to paragraph (1)
shall include the following:
(A) An assessment of the methods used by the
Department of Defense to monitor medical quality in
services provided in military hospitals and clinics and
in services provided in civilian hospitals and providers
under the military health care system.
(B) An assessment of the transparency and public
reporting mechanisms of the Department on medical
quality.

[[Page 2294]]
120 STAT. 2294

(C) An assessment of how the Department incorporates
medical quality into performance measures for military
and civilian health care providers within the military
health care system.
(D) An assessment of the patient safety programs of
the Department.
(E) A description of the extent to which the
Department seeks to address particular medical errors,
and an assessment of the adequacy of such efforts.
(F) An assessment of accountability within the
military health care system for preventable negative
outcomes involving negligence.
(G) An assessment of the performance of the health
care safety and quality measures of the Department.
(H) An assessment of the collaboration of the
Department with national initiatives to develop
evidence-based quality measures and intervention
strategies, especially the initiatives of the Agency for
Health Care Research and Quality within the Department
of Health and Human Services.
(I) A comparison of the methods, mechanisms, and
programs and activities referred to in subparagraphs (A)
through (G) with similar methods, mechanisms, programs,
and activities used in other public and private health
care systems and organizations.
(3) Report.--
(A) In general.--Not later than one year after the
date of the enactment of this Act, the Secretary shall
submit to the Committees on Armed Services of the Senate
and the House of Representatives a report on the review
required pursuant to paragraph (1).
(B) Elements.--The report required by subparagraph
(A) shall include the following:
(i) The results of the review required
pursuant to paragraph (1).
(ii) A discussion of recent highlights in the
accomplishments of the Department of Defense
medical quality assurance program.
(iii) Such recommendations for legislative or
administrative action as the Secretary considers
appropriate for the improvement of the program.
SEC. 720. REPORT ON DISTRIBUTION OF HEMOSTATIC AGENTS FOR USE IN
THE FIELD.

Not later than 60 days after the date of the enactment of this Act,
the Secretary of Defense shall submit to the congressional defense
committees a report on the distribution of hemostatic agents to members
of the Armed Forces serving in Iraq and Afghanistan, including a
description of any distribution problems and attempts to resolve such
problems.
SEC. 721. LONGITUDINAL STUDY ON TRAUMATIC BRAIN INJURY INCURRED BY
MEMBERS OF THE ARMED FORCES IN OPERATION
IRAQI FREEDOM AND OPERATION ENDURING
FREEDOM.

(a) Study Required.--The Secretary of Defense shall conduct a
longitudinal study on the effects of traumatic brain injury incurred by
members of the Armed Forces serving in Operation Iraqi

[[Page 2295]]
120 STAT. 2295

Freedom or Operation Enduring Freedom on the members who incur such an
injury and their families.
(b) Duration.--The study required by subsection (a) shall be
conducted for a period of 15 years.
(c) Elements.--The study required by subsection (a) shall
specifically address the following:
(1) The long-term physical and mental health effects of
traumatic brain injuries incurred by members of the Armed Forces
during service in Operation Iraqi Freedom or Operation Enduring
Freedom.
(2) The health care, mental health care, and rehabilitation
needs of such members for such injuries after the completion of
inpatient treatment through the Department of Defense, the
Department of Veterans Affairs, or both.
(3) The type and availability of long-term care
rehabilitation programs and services within and outside the
Department of Defense and the Department of Veterans Affairs for
such members for such injuries, including community-based
programs and services and in-home programs and services.
(4) The effect on family members of a member incurring such
an injury.

(d) Consultation.--The Secretary of Defense shall conduct the study
required by subsection (a) and prepare the reports required by
subsection (e) in consultation with the Secretary of Veterans Affairs.
(e) Periodic and Final Reports.--After the third, seventh, eleventh,
and fifteenth years of the study required by subsection (a), the
Secretary of Defense shall submit to Congress a comprehensive report on
the results of the study during the preceding years. Each report shall
include the following:
(1) Current information on the cumulative outcomes of the
study.
(2) Such recommendations as the Secretary of Defense and the
Secretary of Veterans Affairs jointly consider appropriate based
on the outcomes of the study, including recommendations for
legislative, programmatic, or administrative action to improve
long-term care and rehabilitation programs and services for
members of the Armed Forces with traumatic brain injuries.

Subtitle C--Planning, Programming, and Management

SEC. 731. STANDARDIZATION OF CLAIMS PROCESSING UNDER TRICARE
PROGRAM AND MEDICARE PROGRAM.

(a) In General.--Effective beginning with the next contract option
period for managed care support contracts under the TRICARE program, the
claims processing requirements under the TRICARE program on the matters
described in subsection (b) shall be identical to the claims processing
requirements under the Medicare program on such matters.
(b) Covered Matters.--The matters described in this subsection are
as follows:
(1) The utilization of single or multiple provider
identification numbers for purposes of the payment of health
care claims by Department of Defense contractors.

[[Page 2296]]
120 STAT. 2296

(2) The documentation required to substantiate medical
necessity for items and services that are covered under both the
TRICARE program and the Medicare program.

(c) Report on Collection of Amounts Owed.--Not later than March 1,
2007, the Secretary of Defense shall submit to the congressional defense
committees a report setting forth a detailed description of the
following:
(1) All TRICARE policies and directives concerning
collection of amounts owed to the United States pursuant to
section 1095 of title 10, United States Code, from third party
payers, including--
(A) collection by military treatment facilities from
third-party payers; and
(B) collection by contractors providing managed care
support under the TRICARE program from other insurers in
cases of private insurance liability for health care
costs of a TRICARE beneficiary.
(2) An estimate of the outstanding amounts owed from third
party payers in each of fiscal years 2002, 2003, and 2004.
(3) The amounts collected from third party payers in each of
fiscal years 2002, 2003, and 2004.
(4) A plan of action to streamline the business practices
that underlie the policies and directives described in paragraph
(1).
(5) A plan of action to accelerate and increase the
collections or recoupments of amounts owed from third party
payers.

(d) Annual Reports on Claims Processing Standardization.--
(1) In general.--Not later than October 1, 2007, and
annually thereafter, the Secretary of Defense shall submit to
the congressional defense committees a report setting forth a
complete list of the claims processing requirements under the
TRICARE program that differ from claims processing requirements
under the Medicare program.
(2) Elements.--Each report under paragraph (1) shall
include, for each claims processing requirement listed in such
report, a business case that justifies maintaining such
requirement under the TRICARE program as a different claims
processing requirement than that required under the Medicare
program.

(e) Definitions.--In this section:
(1) The term ``Medicare program'' means the program under
title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.).
(2) The term ``TRICARE program'' has the meaning given that
term in section 1072(7) of title 10, United States Code.
SEC. 732. REQUIREMENTS FOR SUPPORT OF MILITARY TREATMENT
FACILITIES BY CIVILIAN CONTRACTORS UNDER
TRICARE.

(a) Annual Integrated Regional Requirements on Support.--The
Regional Director of each region under the TRICARE program shall develop
each year integrated, comprehensive requirements for the support of
military treatment facilities in such region that is provided by
contract civilian health care and administrative personnel under the
TRICARE program.
(b) Purposes.--The purposes of the requirements established under
subsection (a) shall be as follows:

[[Page 2297]]
120 STAT. 2297

(1) To ensure consistent standards of quality in the support
of military treatment facilities by contract civilian health
care personnel under the TRICARE program.
(2) To identify targeted, actionable opportunities
throughout each region of the TRICARE program for the most
efficient and cost effective delivery of health care and support
of military treatment facilities.
(3) To ensure the most effective use of various available
contracting methods in securing support of military treatment
facilities by civilian health care personnel under the TRICARE
program, including resource-sharing and clinical support
agreements, direct contracting, and venture capital investments.

(c) Facilitation and Enhancement of Contractor Support.--
(1) In general.--The Secretary of Defense shall take
appropriate actions to facilitate and enhance the support of
military treatment facilities under the TRICARE program in order
to assure maximum quality and productivity.
(2) Actions.--In taking actions under paragraph (1), the
Secretary shall--
(A) require consistent standards of quality for
contract civilian health care personnel providing
support of military treatment facilities under the
TRICARE program, including--
(i) consistent credentialing requirements
among military treatment facilities;
(ii) consistent performance standards for
private sector companies providing health care
staffing services to military treatment facilities
and clinics, including, at a minimum, those
standards established for accreditation of health
care staffing firms by the Joint Commission on the
Accreditation of Health Care Organizations Health
Care Staffing Standards; and
(iii) additional standards covering--
(I) financial stability;
(II) medical management;
(III) continuity of operations;
(IV) training;
(V) employee retention;
(VI) access to contractor data; and
(VII) fraud prevention;
(B) ensure the availability of adequate and
sustainable funding support for projects which produce a
return on investment to the military treatment
facilities;
(C) ensure that a portion of any return on
investment is returned to the military treatment
facility to which such savings are attributable;
(D) remove financial disincentives for military
treatment facilities and civilian contractors to
initiate and sustain agreements for the support of
military treatment facilities by such contractors under
the TRICARE program;
(E) provide for a consistent methodology across all
regions of the TRICARE program for developing cost
benefit analyses of agreements for the support of
military treatment facilities by civilian contractors
under the TRICARE program based on actual cost and
utilization data within each region of the TRICARE
program; and

[[Page 2298]]
120 STAT. 2298

(F) provide for a system for monitoring the
performance of significant projects for support of
military treatment facilities by a civilian contractor
under the TRICARE program.

(d) Reports to Congress.--
(1) Annual reports required.--Not later than February 1,
2008, and each year thereafter, the Secretary, in coordination
with the military departments, shall submit to the Committees on
Armed Services of the Senate and the House of Representatives a
report on the support of military treatment facilities by
civilian contractors under the TRICARE program during the
preceding fiscal year.
(2) Elements.--Each report shall set forth, for the fiscal
year covered by such report, the following:
(A) The level of support of military health
treatment facilities that is provided by contract
civilian health care personnel under the TRICARE program
in each region of the TRICARE program.
(B) An assessment of the compliance of such support
with regional requirements under subsection (a).
(C) The number and type of agreements for the
support of military treatment facilities by contract
civilian health care personnel.
(D) The standards of quality in effect under the
requirements under subsection (a).
(E) The savings anticipated, and any savings
achieved, as a result of the implementation of the
requirements under subsection (a).
(F) An assessment of the compliance of contracts for
health care staffing services for Department of Defense
facilities with the requirements of subsection
(c)(2)(A).

(e) Effective Date.--This section shall take effect on October 1,
2006.
SEC. 733. STANDARDS AND TRACKING OF ACCESS TO HEALTH CARE SERVICES
FOR WOUNDED, INJURED, OR ILL
SERVICEMEMBERS RETURNING TO THE UNITED
STATES FROM A COMBAT ZONE.

(a) Report on Uniform Standards for Access.--Not later than 90 days
after the date of the enactment of this Act, the Secretary of Defense
shall submit to the Committees on Armed Services of the Senate and the
House of Representatives a report on uniform standards for the access of
wounded, injured, or ill members of the Armed Forces to health care
services in the United States following return from a combat zone.
(b) Matters Covered.--The report required by subsection (a) shall
describe in detail policies with respect to the following:
(1) The access of wounded, injured, or ill members of the
Armed Forces to emergency care.
(2) The access of such members to surgical services.
(3) Waiting times for referrals and consultations of such
members by medical personnel, dental personnel, mental health
specialists, and rehabilitative service specialists, including
personnel and specialists with expertise in prosthetics and in
the treatment of head, vision, and spinal cord injuries.
(4) Waiting times of such members for acute care and for
routine follow-up care.

[[Page 2299]]
120 STAT. 2299

(c) Referral to Providers Outside Military Health Care System.--The
Secretary shall require that health care services and rehabilitation
needs of members described in subsection (a) be met through whatever
means or mechanisms possible, including through the referral of members
described in that subsection to health care providers outside the
military health care system.
(d) Uniform System for Tracking of Performance.--The Secretary shall
establish a uniform system for tracking the performance of the military
health care system in meeting the requirements for access of wounded,
injured, or ill members of the Armed Forces to health care services
described in subsection (a).
(e) Reports.--
(1) Tracking system.--Not later than 180 days after the date
of the enactment of this Act, the Secretary shall submit to the
Committees on Armed Services of the Senate and the House of
Representatives a report on the system established under
subsection (d).
(2) Access.--Not later than October 1, 2006, and each
quarter thereafter during fiscal year 2007, the Secretary shall
submit to such committees a report on the performance of the
health care system in meeting the access standards described in
the report required by subsection (a).
SEC. 734. DISEASE AND CHRONIC CARE MANAGEMENT.

(a) Program Design and Development NOTE: Deadline. Required.--
Not later than October 1, 2007, the Secretary of Defense shall design
and develop a fully integrated program on disease and chronic care
management for the military health care system that provides, to the
extent practicable, uniform policies and practices on disease management
and chronic care management throughout that system, including both
military hospitals and clinics and civilian healthcare providers within
the TRICARE network.

(b) Purposes of Program.--The purposes of the program required by
subsection (a) are as follows:
(1) To facilitate the improvement of the health status of
individuals under care in the military health care system.
(2) To ensure the availability of effective health care
services in that system for individuals with diseases and other
chronic conditions.
(3) To ensure the proper allocation of health care resources
for individuals who need care for disease or other chronic
conditions.

(c) Elements of Program Design.--The program design required by
subsection (a) shall meet the following requirements:
(1) Based on uniform policies prescribed by the Secretary,
the program shall, at a minimum, address the following chronic
diseases and conditions:
(A) Diabetes.
(B) Cancer.
(C) Heart disease.
(D) Asthma.
(E) Chronic obstructive pulmonary disorder.
(F) Depression and anxiety disorders.
(2) The program shall meet nationally recognized
accreditation standards for disease and chronic care management.
(3) The program shall include specific outcome measures and
objectives on disease and chronic care management.

[[Page 2300]]
120 STAT. 2300

(4) The program shall include strategies for disease and
chronic care management for all beneficiaries, including
beneficiaries eligible for benefits under the Medicare program
under title XVIII of the Social Security Act (42 U.S.C. 1395 et
seq.), for whom the TRICARE program is not the primary payer for
health care benefits.
(5) Activities under the program shall conform to applicable
laws and regulations relating to the confidentiality of health
care information.

(d) Implementation Plan Required.--Not later than February 1, 2008,
the Secretary of Defense, in coordination with the Secretaries of the
military departments, shall develop an implementation plan for the
disease and chronic care management program. In order to facilitate the
carrying out of the program, the plan developed by the Secretary shall--
(1) require a comprehensive analysis of the disease and
chronic care management opportunities within each region of the
TRICARE program, including within military treatment facilities
and through contractors under the TRICARE program;
(2) ensure continuous, adequate funding of disease and
chronic care management activities throughout the military
health care system in order to achieve maximum health outcomes
and cost avoidance;
(3) eliminate, to the extent practicable, any financial
disincentives to sustained investment by military hospitals and
health care services contractors of the Department of Defense in
the disease and chronic care management activities of the
Department;
(4) ensure that appropriate clinical and claims data,
including pharmacy utilization data, is available for use in
implementing the program;
(5) ensure outreach to eligible beneficiaries who, on the
basis of their clinical conditions, are candidates for the
program utilizing print and electronic media, telephone, and
personal interaction; and
(6) provide a system for monitoring improvements in health
status and clinical outcomes under the program and savings
associated with the program.

(e) Report.--
(1) In general.--Not later than March 1, 2008, the Secretary
of Defense shall submit to the Committees on Armed Services of
the Senate and the House of Representatives a report on the
design, development, and implementation of the program on
disease and chronic care management required by this section.
(2) Report elements.--The report required by paragraph (1)
shall include the following:
(A) A description of the design and development of
the program required by subsection (a).
(B) A description of the implementation plan
required by subsection (d).
(C) A description and assessment of improvements in
health status and clinical outcomes that are anticipated
as a result of implementation of the program.
(D) A description of the savings and return on
investment associated with the program.

[[Page 2301]]
120 STAT. 2301

(E) A description of an investment strategy to
assure the sustainment of the disease and chronic care
management programs of the Department of Defense.
SEC. 735. ADDITIONAL ELEMENTS OF ASSESSMENT OF DEPARTMENT OF
DEFENSE TASK FORCE ON MENTAL HEALTH
RELATING TO MENTAL HEALTH OF MEMBERS WHO
WERE DEPLOYED IN OPERATION IRAQI FREEDOM
AND OPERATION ENDURING FREEDOM.

Section 723(c) of the National Defense Authorization Act for Fiscal
Year 2006 (Public Law 109-163; 119 Stat. 3348) is amended by adding at
the end the following new paragraph:
``(4) Mental health needs of members who were deployed in
oif or oef.--As part of the assessment required by paragraph (1)
of the efficacy of mental health services provided to members of
the Armed Forces by the Department of Defense, the task force
shall consider the specific needs with respect to mental health
of members who were deployed in Operation Iraqi Freedom or
Operation Enduring Freedom upon their return from such
deployment, including the following:
``(A) An identification of mental health conditions
and disorders (including Post Traumatic Stress Disorder,
suicide attempts, and suicide) occurring among members
who have undergone multiple deployments in Operation
Iraqi Freedom or Operation Enduring Freedom.
``(B) An evaluation of the availability to members
of assessments under the Mental Health Self-Assessment
Program of the Department of Defense to ensure the long-
term availability of the diagnostic mechanisms of the
assessment to detect mental health conditions that may
emerge in such members over time.
``(C) The availability of programs and services
under the Mental Health Self-Assessment Program to
address the mental health of dependent children of
members who were deployed in Operation Iraqi Freedom or
Operation Enduring Freedom.
``(D) Recommendations on mechanisms for improving
the mental health services available to members who were
deployed in Operation Iraqi Freedom or Operation
Enduring Freedom, including members who have undergone
multiple deployments.''.
SEC. 736. ADDITIONAL AUTHORIZED OPTION PERIODS FOR EXTENSION OF
CURRENT CONTRACTS UNDER TRICARE.

(a) Additional Number of Authorized Periods.--
(1) In general.--The Secretary of Defense, after consulting
with the other administering Secretaries, may extend any
contract for the delivery of health care entered into under
section 1097 of title 10, United States Code, that is in force
on the date of the enactment of this Act by one year, and upon
expiration of such extension by one additional year, if the
Secretary determines that such extension--
(A) is in the best interests of the Department of
Defense and covered beneficiaries;
(B) is cost effective; and
(C) will--

[[Page 2302]]
120 STAT. 2302

(i) facilitate the effective administration of
the TRICARE program; or
(ii) ensure continuity in the delivery of
health care under the TRICARE program.
(2) Limitation on number of extensions.--The total number of
one-year extensions of a contract that may be granted under
paragraph (1) may not exceed two extensions.
(3) Notice and wait.--The Secretary may not commence the
exercise of the authority in paragraph (1) with respect to a
contract covered by that paragraph until 30 days after the date
on which the Secretary submits to the Committees on Armed
Services of the Senate and House of Representatives a report
setting forth the following:
(A) The minimum level of performance, including
beneficiary satisfaction and cost, by the incumbent
contractor under the contract that will be required by
the Secretary in order to be eligible for an extension
authorized by such paragraph.
(B) The justification for such extension based on
each of the criteria in paragraph (1).
(C) The justification for such extension based on a
cost-benefit analysis.
(4) Definitions.--In this subsection, the terms
``administering Secretaries'', ``covered beneficiary'', and
``TRICARE program'' have the meaning given such terms in section
1072 of title 10, United States Code.

(b) Report on Contracting Mechanisms for Health Care Service Support
Contracts.--Not later than 180 days after the date of the enactment of
this Act, the Secretary shall submit to the Committees on Armed Services
of the Senate and House of Representatives a report on contracting
mechanisms under consideration for future contracts for health care
service support under section 1097 of title 10, United States Code. The
report shall include an assessment of the advantages and disadvantages
for the Department of Defense (including the potential for stimulating
competition and the effect on health care beneficiaries of the
Department) of providing in such contracts for a single term of 5 years,
with a single optional period of extension of an additional 5 years if
performance under such contract is rated as ``excellent''.
SEC. 737. MILITARY VACCINATION MATTERS.

(a) Additional Element for Comptroller General Study and Report on
Vaccine Healthcare Centers.--Section 736(b) of the National Defense
Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat.
3356) is amended by adding at the end the following new paragraph:
``(10) The feasibility and advisability of transferring
direct responsibility for the Centers from the Army Medical
Command to the Under Secretary of Defense for Personnel and
Readiness and the Deputy Assistant Secretary of Defense for
Force Health Protection and Readiness.''.

(b) Limitation on Restructuring of Vaccine Healthcare Centers.--The
Secretary of Defense may not downsize or otherwise restructure the
Vaccine Healthcare Centers of the Department of Defense during fiscal
year 2007. The Secretary shall ensure that the Secretary of each
military department shall, from amounts allocated during fiscal year
2007 from the Defense Health Program,

[[Page 2303]]
120 STAT. 2303

fund and maintain the Vaccine Healthcare Center of the military
department concerned.
SEC. 738. ENHANCED MENTAL HEALTH SCREENING AND SERVICES FOR
MEMBERS OF THE ARMED FORCES.

(a) Additional Required Elements for Predeployment and
Postdeployment Medical Examinations.--Subsection (b) of section 1074f of
title 10, United States Code, is amended--
(1) by inserting ``(1)'' before ``The system''; and
(2) by adding at the end the following new paragraph:

``(2) The predeployment and postdeployment medical examination of a
member of the armed forces required under paragraph (1) shall include
the following:
``(A) An assessment of the current treatment of the member
and any use of psychotropic medications by the member for a
mental health condition or disorder.
``(B) An assessment of traumatic brain injury.''.

(b) Criteria for Referral for Further Evaluations.--Such section is
further amended by adding at the end the following:
``(e) Criteria for Referral for Further Evaluations.--The system
described in subsection (a) shall include--
``(1) development of clinical practice guidelines to be
utilized by healthcare providers in determining whether to refer
a member of the armed forces for further evaluation relating to
mental health (including traumatic brain injury);
``(2) mechanisms to ensure that healthcare providers are
trained in the application of such clinical practice guidelines;
and
``(3) mechanisms for oversight to ensure that healthcare
providers apply such guidelines consistently.''.

(c) Minimum Mental Health Standards for Deployment.--Such section is
further amended by adding at the end the following:
``(f) Minimum Mental Health Standards for Deployment.--
(1) NOTE: Regulations. The Secretary of Defense shall prescribe in
regulations minimum standards for mental health for the eligibility of a
member of the armed forces for deployment to a combat operation or
contingency operation.

``(2) The standards required by paragraph (1) shall include the
following:
``(A) A specification of the mental health conditions,
treatment for such conditions, and receipt of psychotropic
medications for such conditions that preclude deployment of a
member of the armed forces to a combat operation or contingency
operation, or to a specified type of such operation.
``(B) Guidelines for the deployability and treatment of
members of the armed forces diagnosed with a severe mental
illness or post traumatic stress disorder.

``(3) The Secretary shall take appropriate actions to ensure the
utilization of the standards prescribed under paragraph (1) in the
making of determinations regarding the deployability of members of the
armed forces to a combat operation or continency operation.''.
(d) Quality Assurance.--Subsection (d) of such section is amended--
(1) by inserting ``(1)'' before ``The Secretary of
Defense''; and
(2) by adding at the end the following new paragraphs:

[[Page 2304]]
120 STAT. 2304

``(2) The quality assurance program established under paragraph (1)
shall also include the following elements:
``(A) The types of healthcare providers conducting
postdeployment health assessments.
``(B) The training received by such providers applicable to
the conduct of such assessments, including training on
assessments and referrals relating to mental health.
``(C) The guidance available to such providers on how to
apply the clinical practice guidelines developed under
subsection (e)(1) in determining whether to make a referral for
further evaluation of a member of the armed forces relating to
mental health.
``(D) The effectiveness of the tracking mechanisms required
under this section in ensuring that members who receive
referrals for further evaluations relating to mental health
receive such evaluations and obtain such care and services as
are warranted.
``(E) Programs established for monitoring the mental health
of each member who, after deployment to a combat operation or
contingency operations, is known--
``(i) to have a mental health condition or disorder;
or
``(ii) to be receiving treatment, including
psychotropic medications, for a mental health condition
or disorder.''.

(e) Comptroller General Reports on Implementation of Requirements.--
(1) Study on implementation.--The Comptroller General of the
United States shall carry out a study of the implementation of
the requirements of the amendments made by this section.
(2) Reports.--Not later than March 1, 2008, the Comptroller
General shall submit to the Committees on Armed Services of the
Senate and the House of Representatives a report on the study
carried out under paragraph (1).

(f) Implementation.--The NOTE: Deadline. Secretary of Defense
shall implement the requirements of the amendments made by this section
not later than six months after the date of the enactment of this Act.

(g) Report Required.--The Secretary of Defense shall submit to the
Committees on Armed Services of the Senate and the House of
Representatives a report on the actions taken to implement the
requirements of the amendments made by this section not later than June
1, 2007.

Subtitle D--Other Matters

SEC. 741. PILOT PROJECTS ON EARLY DIAGNOSIS AND TREATMENT OF POST
TRAUMATIC STRESS DISORDER AND OTHER MENTAL
HEALTH CONDITIONS.

(a) Pilot Projects Required.--The Secretary of Defense shall carry
out not less than three pilot projects to evaluate the efficacy of
various approaches to improving the capability of the military and
civilian health care systems to provide early diagnosis and treatment of
post traumatic stress disorder and other mental health conditions.

[[Page 2305]]
120 STAT. 2305

(b) Duration.--Any NOTE: Deadlines. pilot project carried out
under this section shall begin not later than October 1, 2007, and cease
on September 30, 2008.

(c) Pilot Project Requirements.--
(1) Diagnostic and treatment approaches.--One of the pilot
projects under this section shall be designed to evaluate
effective diagnostic and treatment approaches for use by primary
care providers in the military health care system in order to
improve the capability of such providers to diagnose and treat
post traumatic stress disorder.
(2) National guard or reserve members.--
(A) One of the pilot projects under this section
shall be focused on members of the National Guard or
Reserves who are located more than 40 miles from a
military medical facility and who are served primarily
by civilian community health resources.
(B) The pilot project described in subparagraph (A)
shall be designed to develop educational materials and
other tools for use by members of the National Guard or
Reserves who come into contact with other members of the
National Guard or Reserves who may suffer from post
traumatic stress disorder in order to encourage and
facilitate early reporting and referral for treatment.
(3) Outreach.--One of the pilot projects under this section
shall be designed to provide outreach to the family members of
the members of the Armed Forces on post traumatic stress
disorder and other mental health conditions.

(d) Evaluation of Pilot Projects.--The Secretary shall evaluate each
pilot project carried out under this section in order to assess the
effectiveness of the approaches taken under such pilot project--
(1) to improve the capability of the military and civilian
health care systems to provide early diagnosis and treatment of
post traumatic stress disorder and other mental health
conditions among members of the regular components of the Armed
Forces, and among members of the National Guard and Reserves,
who have returned from deployment; and
(2) to provide outreach to the family members of the members
of the Armed Forces described in paragraph (1) on post traumatic
stress disorder and other mental health conditions among such
members of the Armed Forces.

(e) Report to Congress.--
(1) Report required.--Not later than December 31, 2008, the
Secretary shall submit to the congressional defense committees a
report on the pilot projects carried out under this section.
(2) Elements.--The report required by paragraph (1) shall
include the following:
(A) A description of each pilot project carried out
under this section.
(B) An assessment of the effectiveness of the
approaches taken under each pilot project to improve the
capability of the military and civilian health care
systems to provide early diagnosis and treatment of post
traumatic stress disorder and other mental health
conditions among members of the Armed Forces.

[[Page 2306]]
120 STAT. 2306

(C) Any recommendations for legislative or
administrative action that the Secretary considers
appropriate in light of the pilot projects, including
recommendations on--
(i) the training of health care providers in
the military and civilian health care systems on
early diagnosis and treatment of post traumatic
stress disorder and other mental health
conditions; and
(ii) the provision of outreach on post
traumatic stress disorder and other mental health
conditions to members of the National Guard and
Reserves who have returned from deployment.
(D) A plan, in light of the pilot projects, for the
improvement of the health care services provided to
members of the Armed Forces in order to better assure
the early diagnosis and treatment of post traumatic
stress disorder and other mental health conditions among
members of the Armed Forces, including a specific plan
for outreach on post traumatic stress disorder and other
mental health conditions to members of the National
Guard and Reserves who have returned from deployment in
order to facilitate and enhance the early diagnosis and
treatment of post traumatic stress disorder and other
mental health conditions among such members of the
National Guard and Reserves.
SEC. 742. REQUIREMENT TO CERTIFY AND REPORT ON CONVERSION OF
MILITARY MEDICAL AND DENTAL POSITIONS TO
CIVILIAN MEDICAL AND DENTAL POSITIONS.

(a) Prohibition on Conversions.--
(1) Submission of certification.--The Secretary of a
military department may not convert any military medical or
dental position to a civilian medical or dental position in a
fiscal year until the Secretary submits to the congressional
defense committees with respect to that fiscal year a
certification that the conversions within that department will
not increase cost or decrease quality of care or access to care.
(2) Report on certification.--Each certification under
paragraph (1) shall include a written report setting forth the
following:
(A) The methodology used by the Secretary in making
the determinations necessary for the certification.
(B) The number of military medical or dental
positions, by grade or band and specialty, planned for
conversion to civilian medical or dental positions.
(C) The results of a market survey in each affected
area of the availability of civilian medical and dental
care providers in such area in order to determine
whether the civilian medical and dental care providers
available in such area are adequate to fill the civilian
positions created by the conversion of military medical
and dental positions to civilian positions in such area.
(D) An analysis, by affected area, showing the
extent to which access to health care and cost of health
care will be affected in both the direct care and
purchased care systems, including an assessment of the
effect of any increased shifts in patient load from the
direct care to the purchased care system, or any delays
in receipt of

[[Page 2307]]
120 STAT. 2307

care in either the direct or purchased care system
because of the planned conversions.
(E) The extent to which military medical and dental
positions planned for conversion to civilian medical or
dental positions will affect recruiting and retention of
uniformed medical and dental personnel.
(F) A comparison of the full costs for the military
medical and dental positions planned for conversion with
the estimated full costs for civilian medical and dental
positions, including expenses such as recruiting,
salary, benefits, training, and any other costs the
Department identifies.
(G) An assessment showing that the military medical
or dental positions planned for conversion are in excess
of the military medical and dental positions needed to
meet medical and dental readiness requirements of the
uniformed services, as determined jointly by all the
uniformed services.
(H) An identification of each medical and dental
position scheduled to be converted to a civilian
position in the subsequent fiscal year, including the
location of each position scheduled for conversion, the
estimated cost of such conversion, and whether or not
civilian personnel are available in the location for
filling a converted military medical or dental position.
(3) Submission deadline.--A certification and report with
respect to any fiscal year after fiscal year 2007 shall be
submitted at the same time the budget of the President for such
fiscal year is submitted to Congress pursuant to section 1105(a)
of title 31, United States Code.

(b) Requirement for NOTE: Deadline. Comptroller General
Review.--Not later than 120 days after the submission of the budget of
the President for a fiscal year, the Comptroller General shall submit to
the congressional defense committees a report on any certifications and
reports submitted with respect to that fiscal year under subsection (a).

(c) Requirement to Resubmit Certification and Report Required by
Public Law 109-163.--The Secretary of each military department shall
resubmit the certification and report required by section 744(a) of the
National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-
163; 119 Stat. 3360; 10 U.S.C. 129c note). Such resubmissions shall
address in their entirety the elements required by section 744(a)(2) of
such Act.
(d) Special Requirements for Fiscal Year 2007 Certification.--
(1) List of 2007 planned conversions.--The report required
by paragraph (2) of subsection (a) with respect to fiscal year
2007 shall contain, in addition to the elements required by that
paragraph, a list of each military medical or dental position
scheduled to be converted to a civilian medical or dental
position in fiscal year 2007.
(2) Resubmission required first.--The certification and
report required by subsection (a) with respect to fiscal year
2007 may not be submitted prior to the resubmission required by
subsection (c).
(3) Prohibition on conversions during fiscal year 2007.--No
conversions of a military medical or dental position

[[Page 2308]]
120 STAT. 2308

may occur during fiscal year 2007 prior to both the resubmission
required by subsection (c) and the submission of the
certification and report required by subsection (a).

(e) Report on Fiscal Year 2008 Conversion.--Not later than 90 days
after the date of the enactment of this Act, the Secretary of Defense
shall submit to the Committees on Armed Services of the Senate and House
of Representatives a report that identifies the military medical or
dental positions scheduled to be converted to civilian medical or dental
positions in fiscal year 2008. Such report shall include the location of
the positions scheduled for conversion, the estimated cost of such
conversion, and whether or not civilian personnel are available in the
location for filling the proposed converted military medical or dental
position.
(f) Definitions.--In this section:
(1) The term ``military medical or dental position'' means a
position for the performance of health care functions within the
Armed Forces held by a member of the Armed Forces.
(2) The term ``civilian medical or dental position'' means a
position for the performance of health care functions within the
Department of Defense held by an employee of the Department or
of a contractor of the Department.
(3) The term ``affected area'' means an area in which
military medical or dental positions were converted to civilian
medical or dental positions before October 1, 2004, or in which
such conversions are scheduled to occur in the future.
(4) The term ``uniformed services'' has the meaning given
that term in section 1072(1) of title 10, United States Code.
(5) The term ``conversion'', with respect to a military
medical or dental position, means a change, effective as of the
date of the documentation by the Department of Defense making
the change, of the position to a civilian medical or dental
position.
SEC. 743. THREE-YEAR EXTENSION OF JOINT INCENTIVES PROGRAM ON
SHARING OF HEALTH CARE RESOURCES BY THE
DEPARTMENT OF DEFENSE AND DEPARTMENT OF
VETERANS AFFAIRS.

Section 8111(d)(3) of title 38, United States Code, is amended by
striking ``September 30, 2007'' and inserting ``September 30, 2010''.
SEC. 744. TRAINING CURRICULA FOR FAMILY CAREGIVERS ON CARE AND
ASSISTANCE FOR MEMBERS AND FORMER MEMBERS
OF THE ARMED FORCES WITH TRAUMATIC BRAIN
INJURY.

(a) Traumatic Brain Injury Family Caregiver Panel.--
(1) Establishment.--The Secretary of Defense shall establish
a panel within the Department of Defense, to be known as the
``Traumatic Brain Injury Family Caregiver Panel'', to develop
coordinated, uniform, and consistent training curricula to be
used in training family members in the provision of care and
assistance to members and former members of the Armed Forces
with traumatic brain injuries.
(2) Members.--The Traumatic Brain Injury Family Caregiver
Panel shall consist of 15 members appointed by the Secretary of
Defense from among the following:
(A) Physicians, nurses, rehabilitation therapists,
and other individuals with an expertise in caring for
and assisting individuals with traumatic brain injury,
including

[[Page 2309]]
120 STAT. 2309

persons who specialize in caring for and assisting
individuals with traumatic brain injury incurred in
combat.
(B) Representatives of family caregivers or family
caregiver associations.
(C) Health and medical personnel of the Department
of Defense and the Department of Veterans Affairs with
expertise in traumatic brain injury and personnel and
readiness representatives of the Department of Defense
with expertise in traumatic brain injury.
(D) Psychologists or other individuals with
expertise in the mental health treatment and care of
individuals with traumatic brain injury.
(E) Experts in the development of training
curricula.
(F) Family members of members of the Armed Forces
with traumatic brain injury.
(G) Such other individuals the Secretary considers
appropriate.
(3) Consultation.--In establishing the Traumatic Brain
Injury Family Caregiver Panel and appointing the members of the
Panel, the Secretary of Defense shall consult with the Secretary
of Veterans Affairs.

(b) Development of Curricula.--
(1) Development.--The Traumatic Brain Injury Family
Caregiver Panel shall develop training curricula to be used by
family members of members and former members of the Armed Forces
on techniques, strategies, and skills for care and assistance
for such members and former members with traumatic brain injury.
(2) Scope of curricula.--The curricula shall--
(A) be based on empirical research and validated
techniques; and
(B) shall provide for training that permits
recipients to tailor caregiving to the unique
circumstances of the member or former member of the
Armed Forces receiving care.
(3) Particular requirements.--In developing the curricula,
the Traumatic Brain Injury Family Caregiver Panel shall--
(A) specify appropriate training commensurate with
the severity of traumatic brain injury; and
(B) identify appropriate care and assistance to be
provided for the degree of severity of traumatic brain
injury for caregivers of various levels of skill and
capability.
(4) Use of existing materials.--In developing the curricula,
the Traumatic Brain Injury Family Caregiver Panel shall use and
enhance any existing training curricula, materials, and
resources applicable to such curricula as the Panel considers
appropriate.
(5) Deadline for development.--The Traumatic Brain Injury
Family Caregiver Panel shall develop the curricula not later
than one year after the date of the enactment of this Act.

(c) Dissemination of Curricula.--
(1) Dissemination mechanisms.--The Secretary of Defense
shall develop mechanisms for the dissemination of the curricula
developed under subsection (b)--

[[Page 2310]]
120 STAT. 2310

(A) to health care professionals who treat or
otherwise work with members and former members of the
Armed Forces with traumatic brain injury;
(B) to family members affected by the traumatic
brain injury of such members and former members; and
(C) to other care or support personnel who may
provide service to members or former members affected by
traumatic brain injury.
(2) Use of existing mechanisms.--In developing such
mechanisms, the Secretary may use and enhance existing
mechanisms, including the Military Severely Injured Center
(authorized under section 564 of this Act) and the programs for
service to severely injured members established by the military
departments.

(d) Report.--Not later than one year after the development of the
curricula required by subsection (b), the Secretary of Defense and the
Secretary of Veterans Affairs shall submit to the Committees on Armed
Services and Veterans Affairs of the Senate and the House of
Representatives a report on the following:
(1) The actions undertaken under this section.
(2) Recommendations for the improvement or updating of
training curriculum developed and provided under this section.
SEC. 745. RECOGNITION OF REPRESENTATIVE LANE EVANS UPON HIS
RETIREMENT FROM THE HOUSE OF
REPRESENTATIVES.

(a) Findings.--Congress makes the following findings:
(1) Representative Lane Evans was elected to the House of
Representatives in 1982 and is completing his 12th term
representing the people of Illinois' 17th Congressional
district.
(2) As a member of the Committee on Armed Services of the
House of Representatives since 1988, Representative Evans has
worked to bring common sense priorities to defense spending and
strengthen the military's conventional readiness.
(3) Representative Evans has served as the ranking member of
the Committee on Veterans' Affairs of the House of
Representatives since 1997 and has been a tireless advocate for
military veterans, ensuring that veterans receive the medical
care they need and advocating for individuals suffering from
post-traumatic stress disorder and Gulf War Syndrome.
(5) Drawing on his own experience as a member of the Marine
Corps, Representative Evans has tirelessly fought for both
current members of the Armed Forces and veterans and has been a
leader in legislative efforts to assist members exposed to Agent
Orange.
(4) Representative Evans' efforts to improve the transition
of individuals from military service to the care of the
Department of Veterans Affairs will continue to benefit
generations of veterans long into the future.
(6) Representative Evans is credited with bringing new
services to veterans living in his Congressional district,
including outpatient clinics in the Quad Cities and Quincy and
the Quad-Cities Vet Center.
(7) Representative Evans has worked with local leaders to
promote the Rock Island Arsenal and has seen it win new jobs and
missions through his support.

(b) Recognition.--Congress recognizes and commends Representative
Lane Evans for his 24 years of service to benefit the

[[Page 2311]]
120 STAT. 2311

people of Illinois, members of the Armed Forces and their families,
veterans, and the United States.

TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED
MATTERS

Subtitle A--Provisions Relating to Major Defense Acquisition Programs

Sec. 801. Requirements management certification training program.
Sec. 802. Additional requirements relating to technical data rights.
Sec. 803. Study and report on revisions to Selected Acquisition Report
requirements.
Sec. 804. Biannual updates on implementation of acquisition reform in
the Department of Defense.
Sec. 805. Additional certification requirements for major defense
acquisition programs before proceeding to Milestone B.
Sec. 806. Original baseline estimate for major defense acquisition
programs.
Sec. 807. Lead system integrators.

Subtitle B--Acquisition Policy and Management

Sec. 811. Time-certain development for Department of Defense information
technology business systems.
Sec. 812. Pilot program on time-certain development in acquisition of
major weapon systems.
Sec. 813. Establishment of Panel on Contracting Integrity.
Sec. 814. Linking of award and incentive fees to acquisition outcomes.
Sec. 815. Report on defense instruction relating to contractor personnel
authorized to accompany Armed Forces.
Sec. 816. Major automated information system programs.
Sec. 817. Internal controls for procurements on behalf of the Department
of Defense by certain non-defense agencies.
Sec. 818. Determination of contract type for development programs.
Sec. 819. Three-year extension of requirement for reports on commercial
price trend analyses of the Department of Defense.
Sec. 820. Government performance of critical acquisition functions.

Subtitle C--Amendments to General Contracting Authorities, Procedures,
and Limitations

Sec. 831. One-year extension of special temporary contract closeout
authority.
Sec. 832. Limitation on contracts for the acquisition of certain
services.
Sec. 833. Use of Federal supply schedules by State and local governments
for goods and services for recovery from natural disasters,
terrorism, or nuclear, biological, chemical, or radiological
attack.
Sec. 834. Waivers to extend task order contracts for advisory and
assistance services.

Subtitle D--United States Defense Industrial Base Provisions

Sec. 841. Assessment and annual report of United States defense
industrial base capabilities and acquisitions of articles,
materials, and supplies manufactured outside the United
States.
Sec. 842. Protection of strategic materials critical to national
security.
Sec. 843. Strategic Materials Protection Board.

Subtitle E--Other Matters

Sec. 851. Report on former Department of Defense officials employed by
contractors of the Department of Defense.
Sec. 852. Report and regulations on excessive pass-through charges.
Sec. 853.  Program manager empowerment and accountability.
Sec. 854. Joint policies on requirements definition, contingency program
management, and contingency contracting.
Sec. 855. Clarification of authority to carry out certain prototype
projects.
Sec. 856. Contracting with employers of persons with disabilities.
Sec. 857. Enhanced access for small business.
Sec. 858. Procurement goal for Hispanic-serving institutions.

[[Page 2312]]
120 STAT. 2312

Subtitle A--Provisions Relating to Major Defense Acquisition Programs

SEC. 801. REQUIREMENTS MANAGEMENT CERTIFICATION TRAINING PROGRAM.

(a) Training Program.--
(1) Requirement.--The Under Secretary of Defense for
Acquisition, Technology, and Logistics, in consultation with the
Defense Acquisition University, shall develop a training program
to certify military and civilian personnel of the Department of
Defense with responsibility for generating requirements for
major defense acquisition programs (as defined in section
2430(a) of title 10, United States Code).
(2) Competency and other requirements.--The Under Secretary
shall establish competency requirements for the personnel
undergoing the training program. The Under Secretary shall
define the target population for such training program by
identifying which military and civilian personnel should have
responsibility for generating requirements. The Under Secretary
also may establish other training programs for personnel not
subject to chapter 87 of title 10, United States Code, who
contribute significantly to other types of acquisitions by the
Department of Defense.

(b) Applicability.--Effective NOTE: Effective date. on and after
September 30, 2008, a member of the Armed Forces or an employee of the
Department of Defense with authority to generate requirements for a
major defense acquisition program may not continue to participate in the
requirements generation process unless the member or employee
successfully completes the certification training program developed
under this section.

(c) Reports.--The Secretary of Defense shall submit to the
Committees on Armed Services of the Senate and House of Representatives
an interim report, not later than March 1, 2007, and a final report, not
later than March 1, 2008, on the implementation of the training program
required under this section.
SEC. 802. ADDITIONAL REQUIREMENTS RELATING TO TECHNICAL DATA
RIGHTS.

(a) Additional Requirements Relating to Technical Data Rights.--
Section 2320 of title 10, United States Code, is amended by adding at
the end the following new subsection:
``(e) The Secretary of Defense shall require program managers for
major weapon systems and subsystems of major weapon systems to assess
the long-term technical data needs of such systems and subsystems and
establish corresponding acquisition strategies that provide for
technical data rights needed to sustain such systems and subsystems over
their life cycle. Such strategies may include the development of
maintenance capabilities within the Department of Defense or competition
for contracts for sustainment of such systems or subsystems. Assessments
and corresponding acquisition strategies developed under this section
with respect to a weapon system or subsystem shall--
``(1) be developed before issuance of a contract
solicitation for the weapon system or subsystem;

[[Page 2313]]
120 STAT. 2313

``(2) address the merits of including a priced contract
option for the future delivery of technical data that were not
acquired upon initial contract award;
``(3) address the potential for changes in the sustainment
plan over the life cycle of the weapon system or subsystem; and
``(4) apply to weapon systems and subsystems that are to be
supported by performance-based logistics arrangements as well as
to weapons systems and subsystems that are to be supported by
other sustainment approaches.''.

(b) Modification of Presumption of Development Exclusively at
Private Expense.--Section 2321(f) of title 10, United States Code, is
amended--
(1) by striking ``Expense for Commercial Items Contracts.--
In'' and inserting ``Expense.--(1) Except as provided in
paragraph (2), in''; and
(2) by adding at the end the following new paragraph:

``(2) In the case of a challenge to a use or release restriction
that is asserted with respect to technical data of a contractor or
subcontractor (whether or not under a contract for commercial items) for
a major system or a subsystem or component thereof on the basis that the
major system, subsystem or component was developed exclusively at
private expense, the challenge to the use or release restriction shall
be sustained unless information provided by the contractor or
subcontractor demonstrates that the item was developed exclusively at
private expense.''.
(c) Regulations.--Not NOTE: Deadline. later than 180 days after
the date of the enactment of this Act, the Secretary of Defense shall
revise regulations under section 2320 of title 10, United States Code,
to implement subsection (e) of such section (as added by this section),
including incorporating policy changes developed under such subsection
into Department of Defense Directive 5000.1 and Department of Defense
Instruction 5000.2.
SEC. 803. STUDY AND REPORT ON REVISIONS TO SELECTED ACQUISITION
REPORT REQUIREMENTS.

(a) Study Requirement.--The Secretary of Defense, acting through the
Under Secretary of Defense for Acquisition, Technology, and Logistics in
coordination with the service acquisition executives of each military
department, shall conduct a study on revisions to requirements relating
to Selected Acquisition Reports, as set forth in section 2432 of title
10, United States Code.
(b) Matters Covered.--The study required under subsection (a)
shall--
(1) focus on incorporating into the Selected Acquisition
Report those elements of program progress that the Department of
Defense considers most relevant to evaluating the performance
and progress of major defense acquisition programs, with
particular reference to the cost estimates and program schedule
established when a major defense acquisition program receives
Milestone B approval;
(2) address the need to ensure that data provided through
the Selected Acquisition Report is consistent with data provided
through internal Department of Defense reporting systems for
management purposes; and

[[Page 2314]]
120 STAT. 2314

(3) include any recommendations to add to, modify, or delete
elements of the Selected Acquisition Report, consistent with the
findings of the study.

(c) Report.--Not later than March 1, 2007, the Secretary shall
submit to the Committees on Armed Services of the Senate and the House
of Representatives a report on the results of the study, including such
recommendations as the Secretary considers appropriate.
SEC. 804. BIANNUAL UPDATES ON IMPLEMENTATION OF ACQUISITION REFORM
IN THE DEPARTMENT OF DEFENSE.

(a) Biannual Updates Requirement.--
Not NOTE: Reports. Deadlines. later than January 1 and July 1 of
each year, beginning with January 1, 2007, the Secretary of Defense
shall provide to the Committees on Armed Services of the Senate and the
House of Representatives a report containing an update on the
implementation of plans to reform the acquisition system in the
Department of Defense.

(b) Matters Covered.--Each report provided under subsection (a)
shall cover the implementation of reforms of the processes for
acquisition, including generation of requirements, award of contracts,
and financial management. At a minimum, the reports shall take into
account the recommendations made by the following:
(1) The Defense Acquisition Performance Assessment Panel.
(2) The Defense Science Board Summer Study on
Transformation, issued in February 2006.
(3) The Beyond Goldwater-Nichols Study of the Center for
Strategic and International Studies.
(4) The Quadrennial Defense Review, issued February 6, 2006.

(c) Recommendations.--Each report submitted under subsection (a)
shall include such recommendations as the Secretary considers
appropriate, and implementation plans for the recommendations.
(d) Termination of Report Requirement.--The requirement to submit
reports under subsection (a) shall terminate on December 31, 2008.
SEC. 805. ADDITIONAL CERTIFICATION REQUIREMENTS FOR MAJOR DEFENSE
ACQUISITION PROGRAMS BEFORE PROCEEDING TO
MILESTONE B.

(a) Additional Certification Requirements.--Subsection (a) of
section 2366a of title 10, United States Code, is amended--
(1) by redesignating paragraph (7) as paragraph (10);
(2) by redesignating paragraphs (1) through (6) as
paragraphs (2) through (7), respectively;
(3) by inserting before paragraph (2) (as so redesignated)
the following new paragraph (1):
``(1) appropriate market research has been conducted prior
to technology development to reduce duplication of existing
technology and products;'';
(4) in paragraph (7) (as so redesignated), by striking
``and'' at the end; and
(5) by inserting after such paragraph (7) the following new
paragraphs:
``(8) reasonable cost and schedule estimates have been
developed to execute the product development and production plan
under the program;

[[Page 2315]]
120 STAT. 2315

``(9) funding is available to execute the product
development and production plan under the program, through the
period covered by the future-years defense program submitted
during the fiscal year in which the certification is made,
consistent with the estimates described in paragraph (8) for the
program; and''.

(b) Waiver for National Security.--Subsection (c) of such section is
amended by striking ``(5), or (6)'' and inserting ``(5), (6), (7), (8),
or (9)''.
SEC. 806. ORIGINAL BASELINE ESTIMATE FOR MAJOR DEFENSE ACQUISITION
PROGRAMS.

Section 2435(d)(1) of title 10, United States Code, is amended by
inserting after ``with respect to the program under subsection (a)'' the
following: ``prepared before the program enters system development and
demonstration, or at program initiation, whichever occurs later''.
SEC. 807. LEAD SYSTEM INTEGRATORS.

(a) Limitations on Contractors Acting as Lead System Integrators.--
(1) In general.--Chapter 141 of title 10, United States
Code, is amended by adding at the end the following new section:

``Sec. 2410p. Contracts: limitations on lead system integrators

``(a) In General.--Except as provided in subsection (b), no entity
performing lead system integrator functions in the acquisition of a
major system by the Department of Defense may have any direct financial
interest in the development or construction of any individual system or
element of any system of systems.
``(b) Exception.--An entity described in subsection (a) may have a
direct financial interest in the development or construction of an
individual system or element of a system of systems if--
``(1) the Secretary of Defense certifies to the Committees
on Armed Services of the Senate and the House of Representatives
that--
``(A) the entity was selected by the Department of
Defense as a contractor to develop or construct the
system or element concerned through the use of
competitive procedures; and
``(B) the Department took appropriate steps to
prevent any organizational conflict of interest in the
selection process; or
``(2) the entity was selected by a subcontractor to serve as
a lower-tier subcontractor, through a process over which the
entity exercised no control.

``(c) Construction.--Nothing in this section shall be construed to
preclude an entity described in subsection (a) from performing work
necessary to integrate two or more individual systems or elements of a
system of systems with each other.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 141 of such title is amended by adding at
the end the following new item:

``2410p. Contracts: limitations on lead system integrators''.


[[Page 2316]]
120 STAT. 2316


(3) Effective date.--Section 2410p of title 10, United
States Code, as added by paragraph (1), shall apply with respect
to contracts entered into after December 31, 2006.

(b) Update of Regulations on Lead System Integrators.--
Not NOTE: Deadline. later than December 31, 2006, the Secretary of
Defense shall update the acquisition regulations of the Department of
Defense in order to specify fully in such regulations the matters with
respect to lead system integrators set forth in section 805(b) of the
National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-
163; 119 Stat. 3372) and the amendments made by subsection (a).

(c) Additional Report Requirements.--The Secretary of Defense shall
include in the report required by section 805 of such Act--
(1) a precise and comprehensive definition of the term
``lead system integrator'', as that term is used in such
section; and
(2) a specification of various types of contracts and fee
structures that are appropriate for use by lead system
integrators in the production, fielding, and sustainment of
complex systems.

Subtitle B--Acquisition Policy and Management

SEC. 811. TIME-CERTAIN DEVELOPMENT FOR DEPARTMENT OF DEFENSE
INFORMATION TECHNOLOGY BUSINESS SYSTEMS.

(a) Milestone A Limitation.--The Department of Defense executive or
entity that is the milestone decision authority for an information
system described in subsection (c) may not provide Milestone A approval
for the system unless, as part of the decision process for such
approval, that authority determines that the system will achieve initial
operational capability within a specified period of time not exceeding
five years.
(b) Initial Operational Capability Limitation.--If an information
system described in subsection (c), having received Milestone A
approval, has not achieved initial operational capability within five
years after the date of such approval, the system shall be deemed to
have undergone a critical change in program requiring the evaluation and
report required by section 2445c(d) of title 10, United States Code (as
added by section 816 of this Act).
(c) Covered Systems.--An information system described in this
subsection is any Department of Defense information technology business
system that is not a national security system, as defined in 3542(b)(2)
of title 44, United States Code.
(d) Definitions.--In this section:
(1) Milestone decision authority.--The term ``milestone
decision authority'' has the meaning given that term in
Department of Defense Instruction 5000.2, dated May 12, 2003.
(2) Milestone a.--The term ``Milestone A'' has the meaning
given that term in Department of Defense Instruction 5000.2,
dated May 12, 2003.

[[Page 2317]]
120 STAT. 2317

SEC. 812. PILOT PROGRAM ON TIME-CERTAIN DEVELOPMENT IN ACQUISITION
OF MAJOR WEAPON SYSTEMS.

(a) Pilot Program Authorized.--The Secretary of Defense may carry
out a pilot program on the use of time-certain development in the
acquisition of major weapon systems.
(b) Purpose of Pilot Program.--The purpose of the pilot program
authorized by subsection (a) is to assess the feasibility and
advisability of utilizing time-certain development in the acquisition of
major weapon systems in order to deliver new capabilities to the
warfighter more rapidly through--
(1) disciplined decision-making;
(2) emphasis on technological maturity; and
(3) appropriate trade-offs between--
(A) cost and system performance; and
(B) program schedule.

(c) Inclusion of Systems in Pilot Program.--
(1) In general.--The Secretary of Defense may include a
major weapon system in the pilot program only if--
(A) the major weapon system meets the criteria under
paragraph (2) in accordance with that paragraph; and
(B) the Milestone Decision Authority nominates such
program to the Secretary of Defense for inclusion in the
program.
(2) Criteria.--For purposes of paragraph (1) a major weapon
system meets the criteria under this paragraph only if the
Milestone Decision Authority determines, in consultation with
the service acquisition executive for the military department
carrying out the acquisition program for the system and one or
more combatant commanders responsible for fielding the system,
that--
(A) the certification requirements of section 2366a
of title 10, United States Code (as amended by section
805 of this Act), have been met, and no waivers have
been granted from such requirements;
(B) a preliminary design has been reviewed using
systems engineering, and the system, as so designed,
will meet battlefield needs identified by the relevant
combatant commanders after appropriate requirements
analysis;
(C) a representative model or prototype of the
system, or key subsystems, has been demonstrated in a
relevant environment, such as a well-simulated
operational environment;
(D) an independent cost estimate has been conducted
and used as the basis for funding requirements for the
acquisition program for the system;
(E) the budget of the military department
responsible for carrying out the acquisition program for
the system provides the funding necessary to execute the
product development and production plan consistent with
the requirements identified pursuant to subparagraph
(D);
(F) an appropriately qualified program manager has
entered into a performance agreement with the Milestone
Decision Authority that establishes expected parameters
for the cost, schedule, and performance of the
acquisition program for the system, consistent with a
business case for such acquisition program;

[[Page 2318]]
120 STAT. 2318

(G) the service acquisition executive and the
program manager have developed a strategy to ensure
stability in program management until, at a minimum, the
delivery of the initial operational capability under the
acquisition program for the system has occurred;
(H) the service acquisition executive, the relevant
combatant commanders, and the program manager have
agreed that no additional requirements that would be
inconsistent with the agreed-upon program schedule will
be added during the development phase of the acquisition
program for the system; and
(I) a planned initial operational capability will be
delivered to the relevant combatant commanders within a
defined period of time as prescribed in regulations by
the Secretary of Defense.
(3) Timing of decision.--The decision whether to include a
major weapon system in the pilot program shall be made at the
time of milestone approval for the acquisition program for the
system.

(d) Limitation on Number of Weapons Systems in Pilot Program.--The
number of major weapon systems included in the pilot program at any time
may not exceed six major weapon systems.
(e) Limitation on Cost of Weapons Systems in Pilot Program.--The
Secretary of Defense may include a major weapon system in the pilot
program only if, at the time a major weapon system is proposed for
inclusion, the total cost for system design and development of the
weapon system, as set forth in the cost estimate referred to in
subsection (c)(2)(D), does not exceed $1,000,000,000 during the period
covered by the current future-years defense program.
(f) Special Funding Authority.--
(1) Authority for reserve account.--Notwithstanding any
other provision of law, the Secretary of Defense may establish a
special reserve account utilizing funds made available for the
major weapon systems included in the pilot program.
(2) Elements.--The special reserve account may include--
(A) funds made available for any major weapon system
included in the pilot program to cover termination
liability;
(B) funds made available for any major weapon system
included in the pilot program for award fees that may be
earned by contractors; and
(C) funds appropriated to the special reserve
account.
(3) Availability of funds.--Funds in the special reserve
account may be used, in accordance with guidance issued by the
Secretary for purposes of this section, for the following
purposes:
(A) To cover termination liability for any major
weapon system included in the pilot program.
(B) To pay award fees that are earned by any
contractor for a major weapon system included in the
pilot program.
(C) To address unforeseen contingencies that could
prevent a major weapon system included in the pilot
program from meeting critical schedule or performance
requirements.

[[Page 2319]]
120 STAT. 2319

(4) Reports on use of funds.--Not later than 30 days after
the use of funds in the special reserve account for the purpose
specified in paragraph (3)(C), the Secretary shall submit to the
congressional defense committees a report on the use of funds in
the account for such purpose. The report shall set forth the
purposes for which the funds were used and the reasons for the
use of the funds for such purposes.
(5) Relationship to appropriations.--Nothing in this
subsection may be construed as extending any period of time for
which appropriated funds are made available.

(g) Administration of Pilot Program.--The Secretary of Defense shall
prescribe policies and procedures on the administration of the pilot
program. Such policies and procedures shall--
(1) provide for the use of program status reports based on
earned value data to track progress on a major weapon system
under the pilot program against baseline estimates applicable to
such system at each systems engineering technical review point;
and
(2) grant authority, to the maximum extent practicable, to
the program manager for the acquisition program for a major
weapon system to make key program decisions and trade-offs,
subject to management reviews only if cost or schedule
deviations exceed the baselines for such acquisition program by
10 percent or more.

(h) Removal of Weapons Systems From Pilot Program.--The Secretary of
Defense shall remove a major weapon system from the pilot program if--
(1) the weapon system receives Milestone C approval; or
(2) the Secretary determines that the weapon system is no
longer in substantial compliance with the criteria in subsection
(c)(2) or is otherwise no longer appropriate for inclusion in
the pilot program.

(i) Expiration of Authority To Include Additional Systems in Pilot
Program.--
(1) Expiration.--A major weapon system may not be included
in the pilot program after September 30, 2012.
(2) Retention of systems.--A major weapon system included in
the pilot program before the date specified in paragraph (1) in
accordance with the requirements of this section may remain in
the pilot program after that date.

(j) Annual Report.--
(1) In general.--Not later than one year after including the
first major weapon system in the pilot program, and annually
thereafter, the Secretary shall submit to the congressional
defense committees a report on the pilot program, and the major
weapon systems included in the pilot program, during the one-
year period ending on the date of such report.
(2) Elements.--Each report under this subsection shall
include--
(A) a description of progress under the pilot
program, and on each major weapon system included in the
pilot program, during the period covered by such report;
(B) a description of the use of all funds in the
special reserve account established under subsection
(f); and
(C) such other matters as the Secretary considers
appropriate.

[[Page 2320]]
120 STAT. 2320

(k) Major Weapon System Defined.--In this section, the term ``major
weapon system'' means a weapon system that is treatable as a major
system under section 2302(5) of title 10, United States Code.
SEC. 813. ESTABLISHMENT OF PANEL ON CONTRACTING INTEGRITY.

(a) Establishment.--
(1) In general.--The Secretary of Defense shall establish a
panel to be known as the ``Panel on Contracting Integrity''.
(2) Composition.--The panel shall be composed of the
following:
(A) A representative of the Under Secretary of
Defense for Acquisition, Technology, and Logistics, who
shall be the chairman of the panel.
(B) A representative of the service acquisition
executive of each military department.
(C) A representative of the Inspector General of the
Department of Defense.
(D) A representative of the Inspector General of
each military department.
(E) A representative of each Defense Agency involved
with contracting, as determined appropriate by the
Secretary of Defense.
(F) Such other representatives as may be determined
appropriate by the Secretary of Defense.

(b) Duties.--In addition to other matters assigned to it by the
Secretary of Defense, the panel shall--
(1) conduct reviews of progress made by the Department of
Defense to eliminate areas of vulnerability of the defense
contracting system that allow fraud, waste, and abuse to occur;
(2) review the report by the Comptroller General required by
section 841 of the National Defense Authorization Act for Fiscal
Year 2006 (Public Law 109-163; 119 Stat. 3389), relating to
areas of vulnerability of Department of Defense contracts to
fraud, waste, and abuse; and
(3) recommend changes in law, regulations, and policy that
it determines necessary to eliminate such areas of
vulnerability.

(c) Meetings.--The panel shall meet as determined necessary by the
Secretary of Defense but not less often than once every six months.
(d) Report.--
(1) Requirement.--The panel shall prepare and submit to the
Secretary of Defense and the congressional defense committees an
annual report on its activities. The report shall be submitted
not later than December 31 of each year and contain a summary of
the panel's findings and recommendations for the year covered by
the report.
(2) First report.--The first report under this subsection
shall be submitted not later than December 31, 2007, and shall
contain an examination of the current structure in the
Department of Defense for contracting integrity and
recommendations for any changes needed to the system of
administrative safeguards and disciplinary actions to ensure
accountability at the appropriate level for any violations of
appropriate standards of behavior in contracting.

[[Page 2321]]
120 STAT. 2321

(3) Interim reports.--The panel may submit such interim
reports to the congressional defense committees as the Secretary
of Defense considers appropriate.

(e) Termination.--The panel shall terminate on December 31, 2009.
SEC. 814. LINKING OF AWARD AND INCENTIVE FEES TO ACQUISITION
OUTCOMES.

(a) Guidance on Linking of Award and Incentive Fees to Acquisition
Outcomes.--Not later NOTE: Deadline. than 180 days after the date of
the enactment of this Act, the Secretary of Defense shall issue
guidance, with detailed implementation instructions (including
definitions), for the Department of Defense on the appropriate use of
award and incentive fees in Department of Defense acquisition programs.

(b) Elements.--The guidance under subsection (a) shall--
(1) ensure that all new contracts using award fees link such
fees to acquisition outcomes (which shall be defined in terms of
program cost, schedule, and performance);
(2) establish standards for identifying the appropriate
level of officials authorized to approve the use of award and
incentive fees in new contracts;
(3) provide guidance on the circumstances in which
contractor performance may be judged to be ``excellent'' or
``superior'' and the percentage of the available award fee which
contractors should be paid for such performance;
(4) establish standards for determining the percentage of
the available award fee, if any, which contractors should be
paid for performance that is judged to be ``acceptable'',
``average'', ``expected'', ``good'', or ``satisfactory'';
(5) ensure that no award fee may be paid for contractor
performance that is judged to be below satisfactory performance
or performance that does not meet the basic requirements of the
contract;
(6) provide specific direction on the circumstances, if any,
in which it may be appropriate to roll over award fees that are
not earned in one award fee period to a subsequent award fee
period or periods;
(7) ensure consistent use of guidelines and definitions
relating to award and incentive fees across the military
departments and Defense Agencies;
(8) ensure that the Department of Defense--
(A) collects relevant data on award and incentive
fees paid to contractors; and
(B) has mechanisms in place to evaluate such data on
a regular basis;
(9) include performance measures to evaluate the
effectiveness of award and incentive fees as a tool for
improving contractor performance and achieving desired program
outcomes; and
(10) provide mechanisms for sharing proven incentive
strategies for the acquisition of different types of products
and services among contracting and program management officials.

(c) Assessment of Independent Evaluation Mechanisms.--
(1) In general.--The Secretary of Defense shall select a
federally funded research and development center to assess

[[Page 2322]]
120 STAT. 2322

various mechanisms that could be used to ensure an independent
evaluation of contractor performance for the purpose of making
determinations applicable to the judging and payment of award
fees.
(2) Considerations.--The assessment conducted pursuant to
paragraph (1) shall include consideration of the advantages and
disadvantages of a system in which award fees are--
(A) held in a separate fund or funds of the
Department of Defense; and
(B) allocated to a specific program only upon a
determination by an independent board, charged with
comparing contractor performance across programs, that
such fees have been earned by the contractor for such
program.
(3) Report.--The Secretary shall submit to the congressional
defense committees a report on the assessment conducted pursuant
to paragraph (1) not later than one year after the date of the
enactment of this Act.
SEC. 815. REPORT ON DEFENSE INSTRUCTION RELATING TO CONTRACTOR
PERSONNEL AUTHORIZED TO ACCOMPANY ARMED
FORCES.

(a) Report on Implementation of Instruction.--The Secretary of
Defense shall submit to Congress a report on the Department of Defense
instruction described in subsection (c).
(b) Matters Covered.--The report shall include the following:
(1) Information on the status of the implementation of the
instruction.
(2) A discussion of how the instruction is being applied
to--
(A) contracts in existence on the date the
instruction was issued, including contracts with respect
to which an option to extend is exercised after such
date;
(B) task orders issued under such contracts after
the date referred to in subparagraph (A); and
(C) contracts entered into after the date referred
to in subparagraph (A).
(3) An analysis of the effectiveness of the instruction.
(4) A review of compliance with the instruction.

(c) Instruction Described.--The instruction referred to in this
section is Department of Defense Instruction Number 3020.14, titled
``Contractor Personnel Authorized to Accompany the United States Armed
Forces''.
SEC. 816. MAJOR AUTOMATED INFORMATION SYSTEM PROGRAMS.

(a) Reports and Information on Program Cost and Performance.--
(1) In general.--Part IV of subtitle A of title 10, United
States Code, is amended by inserting after chapter 144 the
following new chapter:

``CHAPTER 144A--MAJOR AUTOMATED INFORMATION SYSTEM PROGRAMS

``Sec.
``2445a. Major automated information system program defined.
``2445b. Cost, schedule, and performance information.
``2445c. Reports: quarterly reports; reports on program changes.
``2445d. Construction with other reporting requirements.


[[Page 2323]]
120 STAT. 2323



``Sec. 2445a. Major automated information system program defined

``(a) In General.--In this chapter, the term `major automated
information system program' means a Department of Defense program for
the acquisition of an automated information system (either as a product
or a service) if--
``(1) the program is designated by the Secretary of Defense,
or a designee of the Secretary, as a major automated information
system program; or
``(2) the dollar value of the program is estimated to
exceed--
``(A) $32,000,000 in fiscal year 2000 constant
dollars for all program costs in a single fiscal year;
``(B) $126,000,000 in fiscal year 2000 constant
dollars for all program acquisition costs for the entire
program; or
``(C) $378,000,000 in fiscal year 2000 constant
dollars for the total life-cycle costs of the program
(including operation and maintenance costs).

``(b) Adjustment.--The Secretary of Defense may adjust the amounts
(and base fiscal year) set forth in subsection (a) on the basis of
Department of Defense escalation rates. An adjustment under this
subsection shall be effective after the Secretary transmits a written
notification of the adjustment to the congressional defense committees.
``(c) Increments.--In the event any increment of a major automated
information system program separately meets the requirements for
treatment as a major automated information system program, the
provisions of this chapter shall apply to such increment as well as to
the overall major automated information system program of which such
increment is a part.

``Sec. 2445b. Cost, schedule, and performance information

``(a) Submittal of Cost, Schedule, and Performance Information.--
The NOTE: Deadline. Secretary of Defense shall submit to Congress
each calendar year, not later than 45 days after the President submits
to Congress the budget for a fiscal year under section 1105 of title 31,
budget justification documents regarding cost, schedule, and performance
for each major automated information system program for which funds are
requested by the President in the budget.

``(b) Elements.--The documents submitted under subsection (a) with
respect to a major automated information system program shall include
detailed and summarized information with respect to the automated
information system to be acquired under the program, and shall
specifically include each of the following:
``(1) The development schedule, including major milestones.
``(2) The implementation schedule, including estimates of
milestone dates, initial operational capability, and full
operational capability.
``(3) Estimates of development costs and full life-cycle
costs.
``(4) A summary of key performance parameters.

``(c) Baseline.--(1) For purposes of this chapter, the initial
submittal to Congress of the documents required by subsection (a) with
respect to a major automated information system program shall constitute
the original estimate or information originally submitted on such
program for purposes of the reports and determinations on program
changes in section 2445c of this title.

[[Page 2324]]
120 STAT. 2324

``(2) An adjustment or revision of the original estimate or
information originally submitted on a program may be treated as the
original estimate or information originally submitted on the program if
the adjustment or revision is the result of a critical change in the
program covered by section 2445c(d) of this title.
``(3) In the event of an adjustment or revision to the original
estimate or information originally submitted on a program under
paragraph (2), the Secretary of Defense shall include in the next budget
justification documents submitted under subsection (a) after such
adjustment or revision a notification to the congressional defense
committees of such adjustment or revision, together with the reasons for
such adjustment or revision.

``Sec. 2445c. Reports: quarterly reports; reports on program changes

``(a) Quarterly Reports by Program Managers.--The program manager of
a major automated information system program shall, on a quarterly
basis, submit to the senior Department of Defense official responsible
for the program a written report identifying any variance in the
projected development schedule, implementation schedule, life-cycle
costs, or key performance parameters for the major automated information
system to be acquired under the program from such information as
originally submitted to Congress under section 2445b of this title.
``(b) Senior Officials Responsible for Programs.--For purposes of
this section, the senior Department of Defense official responsible for
a major automated information system program is--
``(1) in the case of an automated information system to be
acquired for a military department, the senior acquisition
executive for the military department; or
``(2) in the case of any other automated information system
to be acquired for the Department of Defense or any component of
the Department of Defense, the Under Secretary of Defense for
Acquisition, Technology, and Logistics.

``(c) Report on Significant Changes in Program.--
``(1) In NOTE: Notification. general.--If, based on a
quarterly report submitted by the program manager of a major
automated information system program pursuant to subsection (a),
the senior Department of Defense official responsible for the
program makes a determination described in paragraph (2), the
official shall, not later than 45 days after receiving such
report, notify the congressional defense committees in writing
of such determination.
``(2) Covered determination.--A determination described in
this paragraph with respect to a major automated information
system program is a determination that--
``(A) there has been a schedule change that will
cause a delay of more than six months but less than a
year in any program schedule milestone or significant
event from the schedule originally submitted to Congress
under paragraph (1) or (2) of section 2445b(b) of this
title;
``(B) the estimated program development cost or full
life-cycle cost for the program has increased by at
least 15 percent, but less than 25 percent, over the
original estimate submitted to Congress under paragraph
(3) of section 2445b(b) of this title; or

[[Page 2325]]
120 STAT. 2325

``(C) there has been a significant, adverse change
in the expected performance of the major automated
information system to be acquired under the program from
the parameters originally submitted to Congress under
paragraph (4) of section 2445b(b) of this title.

``(d) Report on Critical Changes in Program.--
``(1) In general.--If, based on a quarterly report submitted
by the program manager of a major automated information system
program pursuant to subsection (a), the senior Department of
Defense official responsible for the program makes a
determination described in paragraph (2), the official shall,
not later than 60 days after receiving such report--
``(A) carry out an evaluation of the program under
subsection (e); and
``(B) submit, through the Secretary of Defense, to
the congressional defense committees a report meeting
the requirements of subsection (f).
``(2) Covered determination.--A determination described in
this paragraph with respect to a major automated information
system program is a determination that--
``(A) the system failed to achieve initial
operational capability within five years of milestone A
approval;
``(B) there has been a schedule change that will
cause a delay of one year or more in any program
schedule milestone or significant event from the
schedule originally submitted to Congress under
paragraph (1) or (2) of section 2445b(b) of this title;
``(C) the estimated program development cost or full
life-cycle cost for the program has increased by 25
percent or more over the original estimate submitted to
Congress under paragraph (3) of section 2445b(b) of this
title; or
``(D) there has been a change in the expected
performance of the major automated information system to
be acquired under the program that will undermine the
ability of the system to perform the functions
anticipated at the time information on the program was
originally submitted to Congress under section 2445b(b)
of this title.

``(e) Program Evaluation.--The evaluation of a major automated
information system program conducted under this subsection for purposes
of subsection (d)(1)(A) shall include an assessment of--
``(1) the projected cost and schedule for completing the
program if current requirements are not modified;
``(2) the projected cost and schedule for completing the
program based on reasonable modification of such requirements;
and
``(3) the rough order of magnitude of the cost and schedule
for any reasonable alternative system or capability.

``(f) Report on Critical Program NOTE: Certification. Changes.--
A report on a major automated information system program conducted under
this subsection for purposes of subsection (d)(1)(B) shall include a
written certification (with supporting explanation) stating that--
``(1) the automated information system to be acquired under
the program is essential to the national security or to the
efficient management of the Department of Defense;
``(2) there is no alternative to the system which will
provide equal or greater capability at less cost;

[[Page 2326]]
120 STAT. 2326

``(3) the new estimates of the costs, schedule, and
performance parameters with respect to the program and system
are reasonable; and
``(4) the management structure for the program is adequate
to manage and control program costs.

``(g) Prohibition on Obligation of Funds.--(1) If the determination
of a critical change to a program is made by the senior Department
official responsible for the program under subsection (d)(2) and a
report is not submitted to Congress within the 60-day period provided by
subsection (d)(1), appropriated funds may not be obligated for any major
contract under the program.
``(2) NOTE: Applicability. Termination date. The prohibition on
the obligation of funds for a program under paragraph (1) shall cease to
apply on the date on which Congress has received a report in compliance
with the requirements of subsection (d)(2).

``Sec. 2445d. Construction with other reporting requirements

``In the case of a major automated information system program
covered by this chapter that is also treatable as a major defense
acquisition program for which reports would be required under chapter
144 of this title, no reports on the program are required under such
chapter if the requirements of this chapter with respect to the program
are met.''.
(2) Clerical amendments.--The tables of chapters the
beginning of subtitle A of such title, and of part IV of
subtitle A of such title, are each amended by inserting after
the item relating to chapter 144 the following new item:

``144A. Major Automated Information System Programs.............2445a''.

(b) Report on Reporting Requirements Applicable to Major Automated
Information System Programs.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Defense shall submit to the
congressional defense committees a report setting forth the reporting
requirements applicable to major automated information system programs
as of the date of the report, including a specification of such
reporting requirements considered by the Secretary to be duplicative or
redundant.
(c) Effective Date.--
(1) In general.--The amendments made by subsection (a) shall
take effect on January 1, 2008, and shall apply with respect to
any major automated information system program for which amounts
are requested in the budget of the President (as submitted to
Congress under section 1105 of title 31, United States Code) for
a fiscal year after fiscal year 2008, regardless of whether the
acquisition of the automated information system to be acquired
under the program was initiated before, on, or after January 1,
2008.
(2) Report requirement.--Subsection (b) shall take effect on
the date of the enactment of this Act.
SEC. 817. INTERNAL CONTROLS FOR PROCUREMENTS ON BEHALF OF THE
DEPARTMENT OF DEFENSE BY CERTAIN NON-
DEFENSE AGENCIES.

(a) Inspector General Reviews and Determinations.--
(1) In NOTE: Deadline. general.--For each covered non-
defense agency, the Inspector General of the Department of
Defense and the Inspector General of such non-defense agency
shall, not later than March 15, 2007, jointly--

[[Page 2327]]
120 STAT. 2327

(A) review--
(i) the procurement policies, procedures, and
internal controls of such non-defense agency that
are applicable to the procurement of property and
services on behalf of the Department by such non-
defense agency; and
(ii) the administration of those policies,
procedures, and internal controls; and
(B) determine in writing whether--
(i) such non-defense agency is compliant with
defense procurement requirements;
(ii) such non-defense agency is not compliant
with defense procurement requirements, but has a
program or initiative to significantly improve
compliance with defense procurement requirements;
(iii) neither of the conclusions stated in
clauses (i) and (ii) is correct in the case of
such non-defense agency; or
(iv) such non-defense agency is not compliant
with defense procurement requirements to such an
extent that the interests of the Department of
Defense are at risk in procurements conducted by
such non-defense agency.
(2) Actions NOTE: Deadline. following certain
determinations.--If the Inspectors General determine under
paragraph (1) that a conclusion stated in clause (ii), (iii), or
(iv) of subparagraph (B) of that paragraph is correct in the
case of a covered non-defense agency, such Inspectors General
shall, not later than June 15, 2008, jointly--
(A) conduct a second review, as described in
subparagraph (A) of that paragraph, regarding such non-
defense agency's procurement of property or services on
behalf of the Department of Defense in fiscal year 2007;
and
(B) determine in writing whether such non-defense
agency is or is not compliant with defense procurement
requirements.

(b) Compliance With Defense Procurement Requirements.--For the
purposes of this section, a covered non-defense agency is compliant with
defense procurement requirements if such non-defense agency's
procurement policies, procedures, and internal controls applicable to
the procurement of products and services on behalf of the Department of
Defense, and the manner in which they are administered, are adequate to
ensure such non-defense agency's compliance with the requirements of
laws and regulations that apply to procurements of property and services
made directly by the Department of Defense.
(c) Memoranda of Understanding Between Inspectors General.--
(1) In NOTE: Deadline. general.--Not later than 60 days
after the date of the enactment of this Act, the Inspector
General of the Department of Defense and the Inspector General
of each covered non-defense agency shall enter into a memorandum
of understanding with each other to carry out the reviews and
make the determinations required by this section.
(2) Scope of memoranda.--The Inspector General of the
Department of Defense and the Inspector General of a covered
non-defense agency may by mutual agreement conduct separate

[[Page 2328]]
120 STAT. 2328

reviews of the procurement of property and services on behalf of
the Department of Defense that are conducted by separate
business units, or under separate governmentwide acquisition
contracts, of such non-defense agency. In any case where such
separate reviews are conducted, the Inspectors General shall
make separate determinations under paragraph (1) or (2) of
subsection (a), as applicable, with respect to each such
separate review.

(d) Limitations NOTE: Deadlines. on Procurements on Behalf of
Department of Defense.--
(1) Limitation during review period.--After March 15, 2007,
and before June 16, 2008, no official of the Department of
Defense may, except as provided in subsection (e) or (f), order,
purchase, or otherwise procure property or services in an amount
in excess of $100,000 through a covered non-defense agency for
which a determination described in clause (iii) or (iv) of
paragraph (1)(B) of subsection (a) has been made under
subsection (a).
(2) Limitation after review period.--After June 15, 2008, no
official of the Department of Defense may, except as provided in
subsection (e) or (f), order, purchase, or otherwise procure
property or services in an amount in excess of $100,000 through
a covered non-defense agency that, having been subject to review
under this section, has not been determined under this section
as being compliant with defense procurement requirements.
(3) Limitation following failure to reach mou.--Commencing
on the date that is 60 days after the date of the enactment of
this Act, if a memorandum of understanding between the Inspector
General of the Department of Defense and the Inspector General
of a covered non-defense agency cannot be attained causing the
review required by this section to not be performed, no official
of the Department of Defense, except as provided in subsection
(e) or (f), may order, purchase or otherwise procure property or
services in an amount in excess of $100,000 through such non-
defense agency.

(e) Exception From Applicability of Limitations.--
(1) Exception.--No limitation applies under subsection (d)
with respect to the procurement of property and services on
behalf of the Department of Defense by a covered non-defense
agency during any period that there is in effect a determination
of the Under Secretary of Defense for Acquisition, Technology,
and Logistics, made in writing, that it is necessary in the
interest of the Department of Defense to continue to procure
property and services through such non-defense agency.
(2) Applicability of determination.--A written determination
with respect to a covered non-defense agency under paragraph (1)
is in effect for the period, not in excess of one year, that the
Under Secretary shall specify in the written determination. The
Under Secretary may extend from time to time, for up to one year
at a time, the period for which the written determination
remains in effect.

(f) Termination of Applicability of Limitations.--Subsection (d)
shall cease to apply to a covered non-defense agency on the date on
which the Inspector General of the Department of Defense and the
Inspector General of such non-defense agency jointly--

[[Page 2329]]
120 STAT. 2329

(1) determine that such non-defense agency is compliant with
defense procurement requirements; and
(2) NOTE: Notification. notify the Secretary of Defense
of that determination.

(g) Identification of Procurements Made During a Particular Fiscal
Year.--For the purposes of subsection (a), a procurement shall be
treated as being made during a particular fiscal year to the extent that
funds are obligated by the Department of Defense for that procurement in
that fiscal year.

(h) Resolution of Disagreements.--If the Inspector General of the
Department of Defense and the Inspector General of a covered non-defense
agency are unable to agree on a joint determination under subsection (a)
or (f), a determination by the Inspector General of the Department of
Defense under such subsection shall be conclusive for the purposes of
this section.
(i) Definitions.--In this section:
(1) The term ``covered non-defense agency'' means each of
the following:
(A) The Department of Veterans Affairs.
(B) The National Institutes of Health.
(2) The term ``governmentwide acquisition contract'', with
respect to a covered non-defense agency, means a task or
delivery order contract that--
(A) is entered into by the non-defense agency; and
(B) may be used as the contract under which property
or services are procured for one or more other
departments or agencies of the Federal Government.
SEC. 818. DETERMINATION OF CONTRACT TYPE FOR DEVELOPMENT PROGRAMS.

(a) Repeal of Superseded Requirements.--Section 807 of the National
Defense Authorization Act, Fiscal Year 1989 (10 U.S.C. 2304 note) is
repealed.
(b) Modification of NOTE: Deadline. Regulations.--Not later than
120 days after the date of the enactment of this Act, the Secretary of
Defense shall modify the regulations of the Department of Defense
regarding the determination of contract type for development programs.

(c) Elements.--As modified under subsection (b), the regulations
shall require the Milestone Decision Authority for a major defense
acquisition program to select the contract type for a development
program at the time of a decision on Milestone B approval (or Key
Decision Point B approval in the case of a space program) that is
consistent with the level of program risk for the program. The Milestone
Decision Authority may select--
(1) a fixed-price type contract (including a fixed price
incentive contract); or
(2) a cost type contract.

(d) Conditions With Respect to Authorization of Cost Type
Contract.--As modified under subsection (b), the regulations shall
provide that the Milestone Decision Authority may authorize the use of a
cost type contract under subsection (c) for a development program only
upon a written determination that--
(1) the program is so complex and technically challenging
that it would not be practicable to reduce program risk to a
level that would permit the use of a fixed-price type contract;
and

[[Page 2330]]
120 STAT. 2330

(2) the complexity and technical challenge of the program is
not the result of a failure to meet the requirements established
in section 2366a of title 10, United States Code.

(e) Justification for Selection of Contract Type.--As modified under
subsection (b), the regulations shall require the Milestone Decision
Authority to document the basis for the contract type selected for a
program. The documentation shall include an explanation of the level of
program risk for the program and, if the Milestone Decision Authority
determines that the level of program risk is high, the steps that have
been taken to reduce program risk and reasons for proceeding with
Milestone B approval despite the high level of program risk.
SEC. 819. THREE-YEAR EXTENSION OF REQUIREMENT FOR REPORTS ON
COMMERCIAL PRICE TREND ANALYSES OF THE
DEPARTMENT OF DEFENSE.

Section 803(c)(4) of the Strom Thurmond National Defense
Authorization Act for Fiscal Year 1999 (10 U.S.C. 2306a note) is amended
by striking ``2006'' and inserting ``2009''.
SEC. 820. GOVERNMENT PERFORMANCE OF CRITICAL ACQUISITION
FUNCTIONS.

(a) Goal.--It NOTE: Deadline. shall be the goal of the
Department of Defense and each of the military departments to ensure
that, within five years after the date of the enactment of this Act, for
each major defense acquisition program and each major automated
information system program, each of the following positions is performed
by a properly qualified member of the Armed Forces or full-time employee
of the Department of Defense:
(1) Program manager.
(2) Deputy program manager.
(3) Chief engineer.
(4) Systems engineer.
(5) Cost estimator.

(b) Plan of NOTE: Deadline. Action.--Not later than six months
after the date of enactment of this Act, the Secretary of Defense shall
develop and begin implementation of a plan of action for recruiting,
training, and ensuring appropriate career development of military and
civilian personnel to achieve the objective established in subsection
(a). The plan of action required by this subsection shall include
specific, measurable interim milestones.

(c) Reports.--Not later than one year after the date of the
enactment of this Act and each year thereafter, the Secretary of Defense
shall submit to the congressional defense committees a report on the
progress made by the Department of Defense and the military departments
toward achieving the goal established in subsection (a).
(d) Definitions.--In this section:
(1) The term ``major defense acquisition program'' has the
meaning given such term in section 2430(a) of title 10, United
States Code.
(2) The term ``major automated information system program''
has the meaning given such term in section 2445a(a) of title 10,
United States Code (as added by section 816 of this Act).

[[Page 2331]]
120 STAT. 2331

Subtitle C--Amendments to General Contracting Authorities, Procedures,
and Limitations

SEC. 831. ONE-YEAR EXTENSION OF SPECIAL TEMPORARY CONTRACT
CLOSEOUT AUTHORITY.

Section 804(d) of the National Defense Authorization Act for Fiscal
Year 2004 (Public Law 108-136; 117 Stat. 1542) is amended by striking
``September 30, 2006'' and inserting ``September 30, 2007''.
SEC. 832. LIMITATION ON CONTRACTS FOR THE ACQUISITION OF CERTAIN
SERVICES.

(a) Limitation.--Except as provided in subsection (b), the Secretary
of Defense may not enter into a service contract to acquire a military
flight simulator.
(b) Waiver.--The Secretary of Defense may waive subsection (a) with
respect to a contract if the Secretary--
(1) determines that a waiver is necessary for national
security purposes; and
(2) provides to the congressional defense committees an
economic analysis as described in subsection (c) at least 30
days before the waiver takes effect.

(c) Economic Analysis.--The economic analysis provided under
subsection (b) shall include, at a minimum, the following:
(1) A clear explanation of the need for the contract.
(2) An examination of at least two alternatives for
fulfilling the requirements that the contract is meant to
fulfill, including the following with respect to each
alternative:
(A) A rationale for including the alternative.
(B) A cost estimate of the alternative and an
analysis of the quality of each cost estimate.
(C) A discussion of the benefits to be realized from
the alternative.
(D) A best value determination of each alternative
and a detailed explanation of the life-cycle cost
calculations used in the determination.

(d) Definitions.--In this section:
(1) The term ``military flight simulator'' means any major
system to simulate the form, fit, and function of a military
aircraft that has no commonly available commercial variant.
(2) The term ``service contract'' means any contract entered
into by the Department of Defense the principal purpose of which
is to furnish services in the United States through the use of
service employees.
(3) The term ``service employees'' has the meaning provided
in section 8(b) of the Service Contract Act of 1965 (41 U.S.C.
357(b)).

[[Page 2332]]
120 STAT. 2332

SEC. 833. USE OF FEDERAL SUPPLY SCHEDULES BY STATE AND LOCAL
GOVERNMENTS FOR GOODS AND SERVICES FOR
RECOVERY FROM NATURAL DISASTERS,
TERRORISM, OR NUCLEAR, BIOLOGICAL,
CHEMICAL, OR RADIOLOGICAL ATTACK.

(a) Authority To Use Supply Schedules for Certain Goods and
Services.--Section 502 of title 40, United States Code, is amended by
adding at the end the following new subsection:
``(d) Use of Supply Schedules for Certain Goods and Services.--
``(1) In general.--The Administrator may provide for the use
by State or local governments of Federal supply schedules of the
General Services Administration for goods or services that are
to be used to facilitate recovery from a major disaster declared
by the President under the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5121 et seq.) or to
facilitate recovery from terrorism or nuclear, biological,
chemical, or radiological attack.
``(2) Determination by secretary of homeland security.--The
Secretary of Homeland Security shall determine which goods and
services qualify as goods and services described in paragraph
(1) before the Administrator provides for the use of the Federal
supply schedule relating to such goods and services.
``(3) Voluntary use.--In the case of the use by a State or
local government of a Federal supply schedule pursuant to
paragraph (1), participation by a firm that sells to the Federal
Government through the supply schedule shall be voluntary with
respect to a sale to the State or local government through such
supply schedule.
``(4) Definitions.--The definitions in subsection (c)(3)
shall apply for purposes of this subsection.''.

(b) Procedures.--Not NOTE: Deadline. later than 30 days after
the date of the enactment of this Act, the Administrator of General
Services shall establish procedures to implement subsection (d) of
section 502 of title 40, United States Code (as added by subsection
(a)).
SEC. 834. WAIVERS TO EXTEND TASK ORDER CONTRACTS FOR ADVISORY AND
ASSISTANCE SERVICES.

(a) Defense Contracts.--
(1) Waiver authority.--The head of an agency may issue a
waiver to extend a task order contract entered into under
section 2304b of title 10, United States Code, for a period not
exceeding 10 years, through five one-year options, if the head
of the agency determines in writing--
(A) that the contract provides engineering or
technical services of such a unique and substantial
technical nature that award of a new contract would be
harmful to the continuity of the program for which the
services are performed;
(B) that award of a new contract would create a
large disruption in services provided to the Department
of Defense; and
(C) that the Department of Defense would, through
award of a new contract, endure program risk during
critical program stages due to loss of program corporate
knowledge of ongoing program activities.

[[Page 2333]]
120 STAT. 2333

(2) Delegation.--The authority of the head of an agency
under paragraph (1) may be delegated only to the senior
procurement executive of the agency.
(3) Report.--Not later than April 1, 2007, the Secretary of
Defense shall submit to the Committees on Armed Services of the
Senate and the House of Representatives a report on advisory and
assistance services. The report shall include the following
information:
(A) The methods used by the Department of Defense to
identify a contract as an advisory and assistance
services contract, as defined in section 2304b of title
10, United States Code.
(B) The number of such contracts awarded by the
Department during the five-year period preceding the
date of the enactment of this Act.
(C) The average annual expenditures by the
Department for such contracts.
(D) The average length of such contracts.
(E) The number of such contracts recompeted and
awarded to the previous award winner.
(4) Prohibition on use of authority by department of defense
if report not submitted.--The head of an agency may not issue a
waiver under paragraph (1) if the report required by paragraph
(3) is not submitted by the date set forth in that paragraph.

(b) Civilian Agency Contracts.--
(1) Waiver authority.--The head of an executive agency may
issue a waiver to extend a task order contract entered into
under section 303I of the Federal Property and Administrative
Services Act of 1949 (41 U.S.C. 253i) for a period not exceeding
10 years, through five one-year options, if the head of the
agency determines in writing--
(A) that the contract provides engineering or
technical services of such a unique and substantial
technical nature that award of a new contract would be
harmful to the continuity of the program for which the
services are performed;
(B) that award of a new contract would create a
large disruption in services provided to the executive
agency; and
(C) that the executive agency would, through award
of a new contract, endure program risk during critical
program stages due to loss of program corporate
knowledge of ongoing program activities.
(2) Delegation.--The authority of the head of an executive
agency under paragraph (1) may be delegated only to the Chief
Acquisition Officer of the agency (or the senior procurement
executive in the case of an agency for which a Chief Acquisition
Officer has not been appointed or designated under section 16(a)
of the Office of Federal Procurement Policy Act (41 U.S.C.
414(a))).
(3) Report.--Not later than April 1, 2007, the Administrator
for Federal Procurement Policy shall submit to the Committee on
Homeland Security and Governmental Affairs of the Senate and the
Committee on Government Reform of the House of Representatives a
report on advisory and assistance services. The report shall
include the following information:

[[Page 2334]]
120 STAT. 2334

(A) The methods used by executive agencies to
identify a contract as an advisory and assistance
services contract, as defined in section 303I(i) of the
Federal Property and Administrative Services Act of 1949
(41 U.S.C. 253i(i)).
(B) The number of such contracts awarded by each
executive agency during the five-year period preceding
the date of the enactment of this Act.
(C) The average annual expenditures by each
executive agency for such contracts.
(D) The average length of such contracts.
(E) The number of such contracts recompeted and
awarded to the previous award winner.
(4) Prohibition on use of authority by executive agencies if
report not submitted.--The head of an executive agency may not
issue a waiver under paragraph (1) if the report required by
paragraph (3) is not submitted by the date set forth in that
paragraph.

(c) Termination of NOTE: Deadline. Authority.--A waiver may not
be issued under this section after December 31, 2011.

(d) Comptroller General Review.--
(1) Report requirement.--Not later than one year after the
date of the enactment of this Act, the Comptroller General shall
submit to the committees described in paragraph (3) a report on
the use of advisory and assistance services contracts by the
Federal Government.
(2) Defense and civilian agency contracts covered.--The
report shall cover both of the following:
(A) Advisory and assistance services contracts as
defined in section 2304b of title 10, United States
Code.
(B) Advisory and assistance services contracts as
defined in section 303I(i) of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253i(i)).
(3) Matters covered.--The report shall address the following
issues:
(A) The extent to which executive agencies and
elements of the Department of Defense require advisory
and assistance services for periods of greater than five
years.
(B) The extent to which such advisory and assistance
services are provided by the same contractors under
recurring contracts.
(C) The rationale for contracting for advisory and
assistance services that will be needed on a continuing
basis, rather than performing the services inside the
Federal Government.
(D) The contract types and oversight mechanisms used
by the Federal Government in contracts for advisory and
assistance services and the extent to which such
contract types and oversight mechanisms are adequate to
protect the interests of the Government and taxpayers.
(E) The actions taken by the Federal Government to
prevent organizational conflicts of interest and
improper personal services contracts in its contracts
for advisory and assistance services.
(4) Committees.--The committees described in this paragraph
are the following:
(A) The Committees on Armed Services and on Homeland
Security and Governmental Affairs of the Senate.

[[Page 2335]]
120 STAT. 2335

(B) The Committees on Armed Services and on
Government Reform of the House of Representatives.

Subtitle D--United States Defense Industrial Base Provisions

SEC. 841. ASSESSMENT AND ANNUAL REPORT OF UNITED STATES DEFENSE
INDUSTRIAL BASE CAPABILITIES AND
ACQUISITIONS OF ARTICLES, MATERIALS, AND
SUPPLIES MANUFACTURED OUTSIDE THE UNITED
STATES.

Section 812 of the National Defense Authorization Act for Fiscal
Year 2004 (Public Law 108-136; 117 Stat. 1542) is amended--
(1) by amending the heading to read as follows:
``SEC. 812. ASSESSMENT AND ANNUAL REPORT OF UNITED STATES DEFENSE
INDUSTRIAL BASE CAPABILITIES AND
ACQUISITIONS OF ARTICLES, MATERIALS, AND
SUPPLIES MANUFACTURED OUTSIDE THE UNITED
STATES.'';
(2) by adding at the end of subsection (c)(2)(A) the
following new clauses:
``(v) The dollar value of any articles, materials, or
supplies purchased that were manufactured outside of the United
States.
``(vi) An itemized list of all waivers granted with respect
to such articles, materials, or supplies under the Buy American
Act (41 U.S.C. 10a et seq.).
``(vii) A summary of--
``(I) the total procurement funds expended on
articles, materials, and supplies manufactured inside
the United States; and
``(II) the total procurement funds expended on
articles, materials, and supplies manufactured outside
the United States.''; and
(3) by adding at the end the following new subsections:

``(d) Public Availability.--The Secretary of Defense shall make the
report submitted under subsection (c) publicly available to the maximum
extent practicable.
``(e) Applicability.--This section shall not apply to acquisitions
made by an agency, or component thereof, that is an element of the
intelligence community as set forth in or designated under section 3(4)
of the National Security Act of 1947 (50 U.S.C. 401a(4)).''.
SEC. 842. PROTECTION OF STRATEGIC MATERIALS CRITICAL TO NATIONAL
SECURITY.

(a) Requirement to Buy From American Sources.--
(1) In general.--Subchapter V of chapter 148 of title 10,
United States Code, is amended by inserting after section 2533a
the following new section:

``Sec. 2533b. Requirement to buy strategic materials critical to
national security from American sources;
exceptions

``(a) Requirement.--Except as provided in subsections (b) through
(j), funds appropriated or otherwise available to the Department of
Defense may not be used for procurement of--

[[Page 2336]]
120 STAT. 2336

``(1) the following types of end items, or components
thereof, containing a specialty metal not melted or produced in
the United States: aircraft, missile and space systems, ships,
tank and automotive items, weapon systems, or ammunition; or
``(2) a specialty metal that is not melted or produced in
the United States and that is to be purchased directly by the
Department of Defense or a prime contractor of the Department.

``(b) Availability Exception.--(1) Subsection (a) does not apply to
the extent that the Secretary of Defense or the Secretary of the
military department concerned determines that compliant specialty metal
of satisfactory quality and sufficient quantity, and in the required
form, cannot be procured as and when needed. For purposes of the
preceding sentence, the term `compliant specialty metal' means specialty
metal melted or produced in the United States.
``(2) This subsection applies to prime contracts and subcontracts at
any tier under such contracts.
``(c) Exception for Certain Procurements.--Subsection (a) does not
apply to the following:
``(1) Procurements outside the United States in support of
combat operations or in support of contingency operations.
``(2) Procurements for which the use of procedures other
than competitive procedures has been approved on the basis of
section 2304(c)(2) of this title, relating to unusual and
compelling urgency of need.

``(d) Exception Relating to Agreements With Foreign Governments.--
Subsection (a)(1) does not preclude the procurement of a specialty metal
if--
``(1) the procurement is necessary--
``(A) to comply with agreements with foreign
governments requiring the United States to purchase
supplies from foreign sources for the purposes of
offsetting sales made by the United States Government or
United States firms under approved programs serving
defense requirements; or
``(B) in furtherance of agreements with foreign
governments in which both such governments agree to
remove barriers to purchases of supplies produced in the
other country or services performed by sources of the
other country; and
``(2) any such agreement with a foreign government complies,
where applicable, with the requirements of section 36 of the
Arms Export Control Act (22 U.S.C. 2776) and with section 2457
of this title.

``(e) Exception for Commissaries, Exchanges, and Other
Nonappropriated Fund Instrumentalities.--Subsection (a) does not apply
to items purchased for resale purposes in commissaries, exchanges, and
nonappropriated fund instrumentalities operated by the Department of
Defense.
``(f) Exception for Small Purchases.--Subsection (a) does not apply
to procurements in amounts not greater than the simplified acquisition
threshold referred to in section 2304(g) of this title.
``(g) Exception for Purchases of Electronic Components.--Subsection
(a) does not apply to procurements of commercially available electronic
components whose specialty metal content is

[[Page 2337]]
120 STAT. 2337

de minimis in value compared to the overall value of the lowest level
electronic component produced that contains such specialty metal.
``(h) Applicability to Procurements of Commercial Items.--This
section applies to procurements of commercial items notwithstanding
section 34 of the Office of Federal Procurement Policy Act (41 U.S.C.
430).
``(i) Specialty Metal Defined.--In this section, the term `specialty
metal' means any of the following:
``(1) Steel--
``(A) with a maximum alloy content exceeding one or
more of the following limits: manganese, 1.65 percent;
silicon, 0.60 percent; or copper, 0.60 percent; or
``(B) containing more than 0.25 percent of any of
the following elements: aluminum, chromium, cobalt,
columbium, molybdenum, nickel, titanium, tungsten, or
vanadium.
``(2) Metal alloys consisting of nickel, iron-nickel, and
cobalt base alloys containing a total of other alloying metals
(except iron) in excess of 10 percent.
``(3) Titanium and titanium alloys.
``(4) Zirconium and zirconium base alloys.

``(j) Additional Definitions.--In this section:
``(1) The term `United States' includes possessions of the
United States.
``(2) The term `component' has the meaning provided in
section 4 of the Office of Federal Procurement Policy Act (41
U.S.C. 403).''.
(2) Clerical amendment.--The table of sections at the
beginning of such subchapter is amended by adding at the end the
following new item:

``2533b. Requirement to buy strategic materials critical to national
security from American sources; exceptions.''.

(3) Conforming amendments.--Section 2533a of title 10,
United States Code, is amended--
(A) by striking paragraph (2) of subsection (b) and
redesignating paragraph (3) of such subsection as
paragraph (2);
(B) in subsection (c), by striking ``or specialty
metals (including stainless steel flatware)''; and
(C) in subsection (e)--
(i) by striking ``Specialty Metals and'' in
the heading; and
(ii) by striking ``specialty metals or''.
(4) Effective dates.--
(A) Section 2533b of title 10, United States Code,
as added by paragraph (1), shall apply with respect to
contracts entered into after the date occurring 30 days
after the date of the enactment of this Act.
(B) The amendments made by paragraph (3) shall take
effect on the date occurring 30 days after the date of
the enactment of this Act.

(b) One-Time Waiver of Specialty Metals Domestic Source
Requirement.--
(1) Authority.--The Secretary of Defense or the Secretary of
a military department may accept specialty metals if such

[[Page 2338]]
120 STAT. 2338

metals were incorporated into items produced, manufactured, or
assembled in the United States before the date of the enactment
of this Act with respect to which the contracting officer for
the contract determines that the contractor is not in compliance
with section 2533b of title 10, United States Code (as added by
subsection (a)(1)), if--
(A) the contracting officer for the contract
determines in writing that--
(i) it would not be practical or economical to
remove or replace the specialty metals
incorporated in such items or to substitute items
containing compliant materials;
(ii) the prime contractor and subcontractor
responsible for providing items containing non-
compliant materials have in place an effective
plan to ensure compliance with section 2533b of
title 10, United States Code (as so added), with
regard to items containing specialty metals if
such metals were incorporated into items produced,
manufactured, or assembled in the United States
after the date of the enactment of this Act; and
(iii) the non-compliance is not knowing or
willful; and
(B) the Under Secretary of Defense for Acquisition,
Technology, and Logistics or the service acquisition
executive of the military department concerned approves
the determination.
(2) Notice.--Not NOTE: Deadline. Website. later than 15
days after a contracting officer makes a determination under
paragraph (1)(A) with respect to a contract, the contracting
officer shall post a notice on FedBizOpps.gov that a waiver has
been granted for the contract under this subsection.
(3) Definition.--In this subsection, the term
``FedBizOpps.gov'' means the website maintained by the General
Services Administration known as FedBizOpps.gov (or any
successor site).
(4) Termination of authority.--A contracting officer may
exercise the authority under this subsection only with respect
to the delivery of items the final acceptance of which takes
place after the date of the enactment of this Act and before
September 30, 2010.
SEC. 843. STRATEGIC MATERIALS PROTECTION BOARD.

(a) In General.--Chapter 7 of title 10, United States Code, is
amended by adding at the end the following new section:

``Sec. 187. Strategic Materials Protection Board

``(a) Establishment.--(1) The Secretary of Defense shall establish a
Strategic Materials Protection Board.
``(2) The Board shall be composed of representatives of the
following:
``(A) The Secretary of Defense, who shall be the chairman of
the Board.
``(B) The Under Secretary of Defense for Acquisition,
Technology, and Logistics.
``(C) The Under Secretary of Defense for Intelligence.
``(D) The Secretary of the Army.

[[Page 2339]]
120 STAT. 2339

``(E) The Secretary of the Navy.
``(F) The Secretary of the Air Force.

``(b) Duties.--In addition to other matters assigned to it by the
Secretary of Defense, the Board shall--
``(1) determine the need to provide a long term domestic
supply of materials designated as critical to national security
to ensure that national defense needs are met;
``(2) analyze the risk associated with each material
designated as critical to national security and the effect on
national defense that the nonavailability of such material from
a domestic source would have;
``(3) recommend a strategy to the President to ensure the
domestic availability of materials designated as critical to
national security;
``(4) recommend such other strategies to the President as
the Board considers appropriate to strengthen the industrial
base with respect to materials critical to national security;
and
``(5) NOTE: Federal Register, publication. publish not
less frequently than once every two years in the Federal
Register recommendations regarding materials critical to
national security, including a list of specialty metals, if any,
recommended for addition to, or removal from, the definition of
`specialty metal' for purposes of section 2533b of this title.

``(c) Meetings.--The Board shall meet as determined necessary by the
Secretary of Defense but not less frequently than once every two years
to make recommendations regarding materials critical to national
security as described in subsection (b)(5).
``(d) Reports.--After each meeting of the Board, the Board shall
prepare and submit to Congress a report containing the results of the
meeting and such recommendations as the Board determines appropriate.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``187. Strategic Materials Protection Board.''.

(c) First Meeting of NOTE: Deadline. Board.--The first meeting
of the Strategic Materials Protection Board, established by section 187
of title 10, United States Code (as added by subsection (a)) shall be
not later than 180 days after the date of the enactment of this Act.

Subtitle E--Other Matters

SEC. 851. REPORT ON FORMER DEPARTMENT OF DEFENSE OFFICIALS
EMPLOYED BY CONTRACTORS OF THE DEPARTMENT
OF DEFENSE.

(a) Report Required.--Not later than December 1, 2007, the
Comptroller General shall submit to the Committees on Armed Services of
the Senate and House of Representatives a report on the employment of
former officials of the Department of Defense by major defense
contractors during the most recent calendar year for which, in the
judgment of the Comptroller General, data are reasonably available. The
report shall assess the extent to which

[[Page 2340]]
120 STAT. 2340

former officials of the Department of Defense who served in acquisition-
related positions were provided compensation by major defense
contractors during such calendar year.
(b) Objectives of Report.--The objectives of the report required by
subsection (a) shall be to determine the effectiveness of existing
statutes and regulations governing the employment of former Department
of Defense officials by defense contractors, including section 207 of
title 18, United States Code, and section 27 of the Office of Federal
Procurement Policy Act (41 U.S.C. 423). At a minimum, the report shall
assess the extent to which such former officials who receive
compensation from defense contractors have been assigned by those
contractors to work on--
(1) Department of Defense contracts or programs for which
such former officials personally had program oversight
responsibility or decision-making authority when they served in
the Department of Defense; or
(2) Department of Defense contracts or programs which are
the responsibility of the agency, office, or command in which
such former officials served in the Department of Defense.

(c) Confidentiality Requirement.--The report required by subsection
(a) shall not include the names of specific former Department of Defense
officials who receive compensation from defense contractors or
information from which such individuals could be identified.
(d) Access to Information.--In accordance with the contract clause
required pursuant to section 2313(c) of title 10, United States Code, a
major defense contractor shall provide the Comptroller General access to
information requested by the Comptroller General for the purpose of this
review regarding former officials of the Department of Defense who have
received compensation from the contractor during the relevant calendar
year.
(e) Definitions.--In this section:
(1) Major defense contractor.--The term ``major defense
contractor'' includes any company that received more than
$500,000,000 in contract awards from the Department of Defense
in fiscal year 2005.
(2) Former department of defense official.--The term
``former Department of Defense official'' means either of the
following:
(A) A former Department of Defense employee.
(B) A former or retired member of the Armed Forces.
SEC. 852. REPORT AND REGULATIONS ON EXCESSIVE PASS-THROUGH
CHARGES.

(a) Comptroller General Report on Excessive Pass-Through Charges.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Comptroller General shall issue a
report on pass-through charges on contracts or subcontracts (or
task or delivery orders) that are entered into for or on behalf
of the Department of Defense.
(2) Matters covered.--The report issued under this sub-
section--

[[Page 2341]]
120 STAT. 2341

(A) shall assess the extent to which the Department
of Defense has paid excessive pass-through charges to
contractors who provided little or no value to the
performance of the contract;
(B) shall assess the extent to which the Department
has been particularly vulnerable to excessive pass-
through charges on any specific category of contracts or
by any specific category of contractors (including any
category of small business); and
(C) shall determine the extent to which any
prohibition on excessive pass-through charges would be
inconsistent with existing commercial practices for any
specific category of contracts or have an unjustified
adverse effect on any specific category of contractors
(including any category of small business).

(b) Regulations Required.--
(1) In NOTE: Deadline. general.--Not later than May 1,
2007, the Secretary of Defense shall prescribe regulations to
ensure that pass-through charges on contracts or subcontracts
(or task or delivery orders) that are entered into for or on
behalf of the Department of Defense are not excessive in
relation to the cost of work performed by the relevant
contractor or subcontractor.
(2) Scope of regulations.--The regulations prescribed under
this subsection--
(A) shall not apply to any firm, fixed-price
contract or subcontract (or task or delivery order) that
is--
(i) awarded on the basis of adequate price
competition; or
(ii) for the acquisition of a commercial item,
as defined in section 4(12) of the Office of
Federal Procurement Policy Act (41 U.S.C.
403(12)); and
(B) may include such additional exceptions as the
Secretary determines to be necessary in the interest of
the national defense.
(3) Definition.--In this section, the term ``excessive pass-
through charge'', with respect to a contractor or subcontractor
that adds no, or negligible, value to a contract or subcontract,
means a charge to the Government by the contractor or
subcontractor that is for overhead or profit on work performed
by a lower-tier contractor or subcontractor (other than charges
for the direct costs of managing lower-tier contracts and
subcontracts and overhead and profit based on such direct
costs).
(4) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary of Defense shall submit to
the congressional defense committees a report on the steps taken
to implement the requirements of this subsection, including--
(A) any standards for determining when no, or
negligible, value has been added to a contract by a
contractor or subcontractor;
(B) any procedures established for preventing
excessive pass-through charges; and
(C) any exceptions determined by the Secretary to be
necessary in the interest of the national defense.

[[Page 2342]]
120 STAT. 2342

(5) Effective date.--The regulations prescribed under this
subsection shall apply to contracts awarded for or on behalf of
the Department of Defense on or after May 1, 2007.
SEC. 853. PROGRAM MANAGER EMPOWERMENT AND ACCOUNTABILITY.

(a) Strategy.--The Secretary of Defense shall develop a
comprehensive strategy for enhancing the role of Department of Defense
program managers in developing and carrying out defense acquisition
programs.
(b) Matters to Be Addressed.--The strategy required by this section
shall address, at a minimum--
(1) enhanced training and educational opportunities for
program managers;
(2) increased emphasis on the mentoring of current and
future program managers by experienced senior executives and
program managers within the Department;
(3) improved career paths and career opportunities for
program managers;
(4) additional incentives for the recruitment and retention
of highly qualified individuals to serve as program managers;
(5) improved resources and support (including systems
engineering expertise, cost estimating expertise, and software
development expertise) for program managers;
(6) improved means of collecting and disseminating best
practices and lessons learned to enhance program management
throughout the Department;
(7) common templates and tools to support improved data
gathering and analysis for program management and oversight
purposes;
(8) increased accountability of program managers for the
results of defense acquisition programs; and
(9) enhanced monetary and nonmonetary awards for successful
accomplishment of program objectives by program managers.

(c) Guidance on Tenure and Accountability of Program Managers Before
Milestone B.--Not NOTE: Deadline. later than 180 days after the date
of the enactment of this Act, the Secretary of Defense shall revise
Department of Defense guidance for major defense acquisition programs to
address the qualifications, resources, responsibilities, tenure, and
accountability of program managers for the program development period
(before Milestone B approval (or Key Decision Point B approval in the
case of a space program)).

(d) Guidance on Tenure and Accountability of Program Managers After
Milestone B.--Not NOTE: Deadline. later than 180 days after the date
of enactment of this Act, the Secretary of Defense shall revise
Department of Defense guidance for major defense acquisition programs to
address the qualifications, resources, responsibilities, tenure and
accountability of program managers for the program execution period
(from Milestone B approval (or Key Decision Point B approval in the case
of a space program) until the delivery of the first production units of
a program). The guidance issued pursuant to this subsection shall
address, at a minimum--
(1) the need for a performance agreement between a program
manager and the milestone decision authority for the program,
setting forth expected parameters for cost, schedule, and
performance, and appropriate commitments by the program

[[Page 2343]]
120 STAT. 2343

manager and the milestone decision authority to ensure that such
parameters are met;
(2) authorities available to the program manager, including,
to the extent appropriate, the authority to object to the
addition of new program requirements that would be inconsistent
with the parameters established at Milestone B (or Key Decision
Point B in the case of a space program) and reflected in the
performance agreement; and
(3) the extent to which a program manager for such period
should continue in the position without interruption until the
delivery of the first production units of the program.

(e) Reports.--
(1) Report by secretary of defense.--Not later than 270 days
after the date of enactment of this Act, the Secretary of
Defense shall submit to the congressional defense committees a
report on the strategy developed pursuant to subsection (a) and
the guidance issued pursuant to subsections (b) and (c).
(2) Report by comptroller general.--Not later than one year
after the date of enactment of this Act, the Comptroller General
shall submit to the congressional defense committees a report on
the actions taken by the Secretary of Defense to implement the
requirements of this section.
SEC. 854. JOINT POLICIES ON REQUIREMENTS DEFINITION, CONTINGENCY
PROGRAM MANAGEMENT, AND CONTINGENCY
CONTRACTING.

(a) In General.--
(1) Joint policy requirement.--Chapter 137 of title 10,
United States Code, is amended by adding at the end the
following new section:

``Sec. 2333. Joint policies on requirements definition, contingency
program management, and contingency contracting

``(a) Joint Policy Requirement.--The Secretary of Defense, in
consultation with the Chairman of the Joint Chiefs of Staff, shall
develop joint policies for requirements definition, contingency program
management, and contingency contracting during combat operations and
post-conflict operations.
``(b) Requirements Definition Matters Covered.--The joint policy for
requirements definition required by subsection (a) shall, at a minimum,
provide for the following:
``(1) The assignment of a senior commissioned officer or
civilian member of the senior executive service, with
appropriate experience and qualifications related to the
definition of requirements to be satisfied through acquisition
contracts (such as for delivery of products or services,
performance of work, or accomplishment of a project), to act as
head of requirements definition and coordination during combat
operations, post-conflict operations, and contingency
operations, if required, including leading a requirements review
board involving all organizations concerned.
``(2) An organizational approach to requirements definition
and coordination during combat operations, post-conflict
operations, and contingency operations that is designed to
ensure that requirements are defined in a way that effectively
implements United States Government and Department of Defense

[[Page 2344]]
120 STAT. 2344

objectives, policies, and decisions regarding the allocation of
resources, coordination of interagency efforts in the theater of
operations, and alignment of requirements with the proper use of
funds.

``(c) Contingency Program Management Matters Covered.--The joint
policy for contingency program management required by subsection (a)
shall, at a minimum, provide for the following:
``(1) The assignment of a senior commissioned officer or
civilian member of the senior executive service, with
appropriate program management experience and qualifications, to
act as head of program management during combat operations,
post-conflict operations, and contingency operations, including
stabilization and reconstruction operations involving multiple
United States Government agencies and international
organizations, if required.
``(2) A preplanned organizational approach to program
management during combat operations, post-conflict operations,
and contingency operations that is designed to ensure that the
Department of Defense is prepared to conduct such program
management.
``(3) Identification of a deployable cadre of experts, with
the appropriate tools and authority, and trained in processes
under paragraph (6).
``(4) Utilization of the hiring and appointment authorities
necessary for the rapid deployment of personnel to ensure the
availability of key personnel for sufficient lengths of time to
provide for continuing program and project management.
``(5) A requirement to provide training (including training
under a program to be created by the Defense Acquisition
University) to program management personnel in--
``(A) the use of laws, regulations, policies, and
directives related to program management in combat or
contingency environments;
``(B) the integration of cost, schedule, and
performance objectives into practical acquisition
strategies aligned with available resources and subject
to effective oversight; and
``(C) procedures of the Department of Defense
related to funding mechanisms and contingency contract
management.
``(6) Appropriate steps to ensure that training is
maintained for such personnel even when they are not deployed in
a contingency operation.
``(7) Such steps as may be needed to ensure jointness and
cross-service coordination in the area of program management
during contingency operations.

``(d) Contingency Contracting Matters Covered.--(1) The joint policy
for contingency contracting required by subsection (a) shall, at a
minimum, provide for the following:
``(A) The designation of a senior commissioned officer or
civilian member of the senior executive service in each military
department with the responsibility for administering the policy.
``(B) The assignment of a senior commissioned officer with
appropriate acquisition experience and qualifications to act as
head of contingency contracting during combat operations, post-
conflict operations, and contingency operations, who shall
report

[[Page 2345]]
120 STAT. 2345

directly to the commander of the combatant command in whose area
of responsibility the operations occur.
``(C) A sourcing approach to contingency contracting that is
designed to ensure that each military department is prepared to
conduct contingency contracting during combat operations, post-
conflict operations, and contingency operations, including
stabilization and reconstruction operations involving
interagency organizations, if required.
``(D) A requirement to provide training (including training
under a program to be created by the Defense Acquisition
University) to contingency contracting personnel in--
``(i) the use of law, regulations, policies, and
directives related to contingency contracting
operations;
``(ii) the appropriate use of rapid acquisition
methods, including the use of exceptions to competition
requirements under section 2304 of this title, sealed
bidding, letter contracts, indefinite delivery
indefinite quantity task orders, set asides under
section 8(a) of the Small Business Act (15 U.S.C.
637(a)), undefinitized contract actions, and other tools
available to expedite the delivery of goods and services
during combat operations or post-conflict operations;
``(iii) the appropriate use of rapid acquisition
authority, commanders' emergency response program funds,
and other tools unique to contingency contracting; and
``(iv) instruction on the necessity for the prompt
transition from the use of rapid acquisition authority
to the use of full and open competition and other
methods of contracting that maximize transparency in the
acquisition process.
``(E) Appropriate steps to ensure that training is
maintained for such personnel even when they are not deployed in
a contingency operation.
``(F) Such steps as may be needed to ensure jointness and
cross-service coordination in the area of contingency
contracting.

``(2) To the extent practicable, the joint policy for contingency
contracting required by subsection (a) should be taken into account in
the development of interagency plans for stabilization and
reconstruction operations, consistent with the report submitted by the
President under section 1035 of this Act on interagency operating
procedures for the planning and conduct of stabilization and
reconstruction operations.
``(e) Definitions.--In this section:
``(1) Contingency contracting personnel.--The term
`contingency contracting personnel' means members of the armed
forces and civilian employees of the Department of Defense who
are members of the defense acquisition workforce and, as part of
their duties, are assigned to provide support to contingency
operations (whether deployed or not).
``(2) Contingency contracting.--The term `contingency
contracting' means all stages of the process of acquiring
property or services by the Department of Defense during a
contingency operation.
``(3) Contingency operation.--The term `contingency
operation' has the meaning provided in section 101(13) of this
title.

[[Page 2346]]
120 STAT. 2346

``(4) Acquisition support agencies.--The term `acquisition
support agencies' means Defense Agencies and Department of
Defense Field Activities that carry out and provide support for
acquisition-related activities.
``(5) Contingency program management.--The term `contingency
program management' means the process of planning, organizing,
staffing, controlling, and leading the combined efforts of
participating civilian and military personnel and organizations
for the management of a specific defense acquisition program or
programs during combat operations, post-conflict operations, and
contingency operations.
``(6) Requirements definition.--The term `requirements
definition' means the process of translating policy objectives
and mission needs into specific requirements, the description of
which will be the basis for awarding acquisition contracts for
projects to be accomplished, work to be performed, or products
to be delivered.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``2333. Joint policies on requirements definition, contingency
contracting, and program management.''.

(b) Deadline for Development of Joint Policies.--The Secretary of
Defense shall develop the joint policies required under section 2333 of
title 10, United States Code, as added by subsection (a), not later than
18 months after the date of enactment of this Act.
(c) Reports.--
(1) Interim report.--
(A) Requirement.--Not later than 365 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 an
interim report on requirements definition, contingency
contracting, and program management.
(B) Matters covered.--The report shall include
discussions of the following:
(i) Progress in the development of the joint
policies under section 2333 of title 10, United
States Code.
(ii) The ability of the Armed Forces to
support requirements definition, contingency
contracting, and program management.
(iii) The ability of commanders of combatant
commands to request requirements definition,
contingency contracting, or program management
support, and the ability of the military
departments and the acquisition support agencies
to respond to such requests and provide such
support, including the availability of rapid
acquisition personnel for such support.
(iv) The ability of the current civilian and
military acquisition workforce to deploy to combat
theaters of operations and to conduct requirements
definition, contingency contracting, or program
management activities during combat and during
post-conflict, reconstruction, or other
contingency operations.

[[Page 2347]]
120 STAT. 2347

(v) The effect of different periods of
deployment on continuity in the acquisition
process.
(2) Final report.--Not later than 18 months after the date
of the enactment of this Act, the Secretary of Defense shall
submit to the committees referred to in paragraph (1)(A) a final
report on requirements definition, contingency contracting, and
program management, containing a discussion of the
implementation of the joint policies developed under section
2333 of title 10, United States Code (as so added), including
updated discussions of the matters covered in the interim
report. In addition, the report should include a discussion of
the actions taken to ensure that the joint policies will be
adequately resourced at the time of execution.
SEC. 855. CLARIFICATION OF AUTHORITY TO CARRY OUT CERTAIN
PROTOTYPE PROJECTS.

Section 845(a) of the National Defense Authorization Act for Fiscal
Year 1994 (10 U.S.C. 2371 note) is amended--
(1) in paragraph (2)(A), by inserting ``or, for the Defense
Advanced Projects Agency or the Missile Defense Agency, the
director of the agency'' after ``(41 U.S.C. 414(c))''; and
(2) in paragraph (3), by inserting ``or director of the
Defense Advanced Projects Agency or Missile Defense Agency''
after ``executive''.
SEC. 856. CONTRACTING WITH EMPLOYERS OF PERSONS WITH DISABILITIES.

(a) Inapplicability of Certain Laws.--
(1) Inapplicability of the randolph-sheppard act to
contracts and subcontracts for military dining facility support
services covered by javits-wagner-o'day act.--The Randolph-
Sheppard Act (20 U.S.C. 107 et seq.) does not apply to full food
services, mess attendant services, or services supporting the
operation of a military dining facility that, as of the date of
the enactment of this Act, were services on the procurement list
established under section 2 of the Javits-Wagner-O'Day Act (41
U.S.C. 47).
(2) Inapplicability of the javits-wagner-o'day act to
contracts for the operation of a military dining facility.--(A)
The Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.) does not
apply at the prime contract level to any contract entered into
by the Department of Defense as of the date of the enactment of
this Act with a State licensing agency under the Randolph-
Sheppard Act (20 U.S.C. 107 et seq.) for the operation of a
military dining facility.
(B) The Javits-Wagner-O'Day Act shall apply to any
subcontract entered into by a Department of Defense contractor
for full food services, mess attendant services, and other
services supporting the operation of a military dining facility.
(3) Repeal of superseded law.--Subsections (a) and (b) of
section 853 of the Ronald W. Reagan National Defense
Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118
Stat. 2021) are repealed.

(b) Review and Report by Comptroller General of Randolph-Sheppard
and Javits-Wagner-O'Day Contracts.--
(1) In general.--The Comptroller General shall conduct a
review of a representative sample of food service contracts

[[Page 2348]]
120 STAT. 2348

described in paragraph (2) and determine in writing the
following:
(A) Differences in operational procedures and
administration of contracts awarded by the Department of
Defense under the Randolph-Sheppard Act (20 U.S.C. 107
et seq.) and the Javits-Wagner-O'Day Act (41 U.S.C. 46
et seq.) on a State-by-State basis with regard to the
relationship between State licensing agencies and blind
vendors.
(B) Differences in competition, source selection,
and management processes and procedures for contracts
awarded by the Department under the Randolph-Sheppard
Act and the Javits-Wagner-O'Day Act, including a review
of the average total cost of contract awards and
compensation packages to all beneficiaries.
(C) Precise methods used to determine whether a
price is fair and reasonable under contracts awarded by
the Department under the Randolph-Sheppard Act and the
Javits-Wagner-O'Day Act, as required under the Federal
Acquisition Regulation and the Defense Federal
Acquisition Regulation Supplement.
(2) Contracts covered.--For purposes of the review under
paragraph (1), a food service contract described in this
paragraph is a contract--
(A) for full food services, mess attendant services,
or services supporting the operation of all or any part
of a military dining facility;
(B) that was awarded under either the Randolph-
Sheppard Act or the Javits-Wagner-O'Day Act; and
(C) that is in effect on the date of the enactment
of this Act.
(3) Report.--Not later than March 1, 2007, the Comptroller
General shall submit to the Committees on Armed Services of the
Senate and the House of Representatives a report on the review
conducted under this subsection, with such findings and
recommendations as the Comptroller General considers
appropriate.

(c) Requirements for Inspectors General of Department of Defense and
Department of Education.--
(1) Review of management procedures.--
Not NOTE: Deadline. later than March 1, 2007, the Inspector
General of the Department of Defense and the Inspector General
of the Department of Education shall jointly review the
management procedures under both the Randolph-Sheppard Act (20
U.S.C. 107 et seq.) and the Javits-Wagner-O'Day Act (41 U.S.C.
46 et seq.). In carrying out this paragraph, the Inspectors
General shall each have access to the following:
(A) Memoranda on program management and the basis
for contract award under the programs.
(B) Guidance sent to State agencies on
administration of the programs.
(C) Names of participating vendors, as well as
qualifying experience and educational background of such
vendors.
(2) Memorandum of understanding between inspectors
general.--Not later NOTE: Deadline. than 60 days after the
date of the enactment of this Act, the Inspector General of the
Department of Defense and the Inspector General of the
Department of

[[Page 2349]]
120 STAT. 2349

Education shall enter into a memorandum of understanding with
each other to carry out paragraph (1).
(3) Report.--Not later than one year after the date of
enactment of this Act, the Inspector General of the Department
of Defense and the Inspector General of the Department of
Education shall jointly submit to the Committees on Armed
Services of the Senate and the House of Representatives a report
on the review required by paragraph (1). The report shall
include--
(A) findings of the Inspectors General regarding the
management procedures reviewed; and
(B) such other information and recommendations as
the Inspectors General consider appropriate.

(d) Definitions.--In this section:
(1) The term ``State licensing agency'' means any agency
designated by the Secretary of Education under section 2(a)(5)
of the Randolph-Sheppard Act (20 U.S.C. 107a(a)(5)).
(2) The term ``military dining facility'' means a facility
owned, operated, leased, or wholly controlled by the Department
of Defense and used to provide dining services to members of the
Armed Forces, including a cafeteria, military mess hall,
military troop dining facility, or any similar dining facility
operated for the purpose of providing meals to members of the
Armed Forces.
SEC. 857. ENHANCED ACCESS FOR SMALL BUSINESS.

Section 9(a) of the Contract Disputes Act of 1978 (41 U.S.C. 608)
is amended by striking the period at the end of the first sentence and
inserting the following: ``or, in the case of a small business concern
(as defined in the Small Business Act and regulations under that Act),
$150,000 or less.''.
SEC. 858. PROCUREMENT GOAL FOR HISPANIC-SERVING INSTITUTIONS.

Section 2323 of title 10, United States Code, is amended--
(1) in subsection (a)(1)--
(A) by striking ``and'' at the end of subparagraph
(B);
(B) by striking the period at the end of
subparagraph (C) and inserting ``; and''; and
(C) by adding at the end the following new
subparagraph:
``(D) Hispanic-serving institutions (as defined in
section 502(a) of the Higher Education Act of 1965 (20
U.S.C. 1101a(a)).'';
(2) in subsection (a)(2)--
(A) by inserting after ``historically Black colleges
and universities'' the following: ``, Hispanic-serving
institutions,''; and
(B) by inserting after ``such colleges and
universities'' the following: ``and institutions'';
(3) in subsection (c)(1), by inserting after ``historically
Black colleges and universities'' the following: ``, Hispanic-
serving institutions,''; and
(4) in subsection (c)(3), by inserting after ``historically
Black colleges and universities'' the following: ``, to
Hispanic-serving institutions,''.

[[Page 2350]]
120 STAT. 2350

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Department of Defense Management

Sec. 901. Increase in authorized number of Assistant Secretaries of
Defense.
Sec. 902. Modifications to the Combatant Commander Initiative Fund.
Sec. 903. Addition to membership of specified council.
Sec. 904. Consolidation and standardization of authorities relating to
Department of Defense Regional Centers for Security Studies.
Sec. 905. Oversight by Office of Under Secretary of Defense for
Acquisition, Technology, and Logistics of exercise of
acquisition authority by combatant commanders and heads of
Defense Agencies.
Sec. 906. Standardization of statutory references to ``national security
system'' within laws applicable to Department of Defense.
Sec. 907. Correction of reference to predecessor of Defense Information
Systems Agency.

Subtitle B--Space Activities

Sec. 911. Designation of successor organizations for the disestablished
Interagency Global Positioning Executive Board.
Sec. 912.  Extension of authority for pilot program for provision of
space surveillance network services to non-United States
Government entities.
Sec. 913. Operationally responsive space.
Sec. 914. Independent review and assessment of Department of Defense
organization and management for national security in space.

Subtitle C--Chemical Demilitarization Program

Sec. 921. Sense of Congress on completion of destruction of United
States chemical weapons stockpile.
Sec. 922. Comptroller General review of cost-benefit analysis of off-
site versus on-site treatment and disposal of hydrolysate
derived from neutralization of VX nerve gas at Newport
Chemical Depot, Indiana.
Sec. 923. Incentives clauses in chemical demilitarization contracts.
Sec. 924. Chemical demilitarization program contracting authority.

Subtitle D--Intelligence-Related Matters

Sec. 931. Four-year extension of authority of Secretary of Defense to
engage in commercial activities as security for intelligence
collection activities.
Sec. 932. Annual reports on intelligence oversight activities of the
Department of Defense.
Sec. 933. Collection by National Security Agency of service charges for
certification or validation of information assurance
products.

Subtitle E--Other Matters

Sec. 941. Department of Defense policy on unmanned systems.
Sec. 942. Executive Schedule level IV for Deputy Under Secretary of
Defense for Logistics and Materiel Readiness.
Sec. 943. Study and report on reform of Defense Travel System.
Sec. 944. Administration of pilot project on Civilian Linguist Reserve
Corps.
Sec. 945. Improvement of authorities on the National Security Education
Program.
Sec. 946. Report on the posture of United States Special Operations
Command to conduct the global war on terrorism.

Subtitle A--Department of Defense Management

SEC. 901. INCREASE IN AUTHORIZED NUMBER OF ASSISTANT SECRETARIES
OF DEFENSE.

(a) Increase.--Section 138(a) of title 10, United States Code, is
amended by striking ``nine'' and inserting ``ten''.
(b) Conforming Amendment.--Section 5315 of title 5, United States
Code, is amended by striking ``(9)'' after ``Assistant Secretaries of
Defense'' and inserting ``(10)''.

[[Page 2351]]
120 STAT. 2351

SEC. 902. MODIFICATIONS TO THE COMBATANT COMMANDER INITIATIVE
FUND.

(a) Addition to Authorized Activities.--Subsection (b)(6) of section
166a of title 10, United States Code is amended by striking ``civil
assistance'' and inserting ``civic assistance, to include urgent and
unanticipated humanitarian relief and reconstruction assistance''.
(b) Additional Priority Consideration.--Subsection (c) of such
section is amended--
(1) by striking ``and'' at the end of paragraph (1);
(2) by striking the period at the end of paragraph (2) and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(3) the provision of funds to be used for urgent and
unanticipated humanitarian relief and reconstruction assistance,
particularly in a foreign country where the armed forces are
engaged in a contingency operation.''.
SEC. 903. ADDITION TO MEMBERSHIP OF SPECIFIED COUNCIL.

Section 179(a) of title 10, United States Code, is amended by adding
at the end the following new paragraph:
``(5) The commander of the United States Strategic
Command.''.
SEC. 904. CONSOLIDATION AND STANDARDIZATION OF AUTHORITIES
RELATING TO DEPARTMENT OF DEFENSE REGIONAL
CENTERS FOR SECURITY STUDIES.

(a) Basic Authorities for Regional Centers.--
(1) In general.--Section 184 of title 10, United States
Code, is amended to read as follows:

``Sec. 184. Regional Centers for Security Studies

``(a) In General.--The Secretary of Defense shall administer the
Department of Defense Regional Centers for Security Studies in
accordance with this section as international venues for bilateral and
multilateral research, communication, and exchange of ideas involving
military and civilian participants.
``(b) Regional Centers Specified.--(1) A Department of Defense
Regional Center for Security Studies is a Department of Defense
institution that--
``(A) is operated, and designated as such, by the Secretary
of Defense for the study of security issues relating to a
specified geographic region of the world; and
``(B) serves as a forum for bilateral and multilateral
research, communication, and exchange of ideas involving
military and civilian participants.

``(2) The Department of Defense Regional Centers for Security
Studies are the following:
``(A) The NOTE: Germany. George C. Marshall European
Center for Security Studies, established in 1993 and located in
Garmisch-Partenkirchen, Germany.
``(B) NOTE: Hawaii. The Asia-Pacific Center for Security
Studies, established in 1995 and located in Honolulu, Hawaii.
``(C) NOTE: District of Columbia. The Center for
Hemispheric Defense Studies, established in 1997 and located in
Washington, D.C.
``(D) NOTE: District of Columbia. The Africa Center for
Strategic Studies, established in 1999 and located in
Washington, D.C.

[[Page 2352]]
120 STAT. 2352

``(E) NOTE: District of Columbia. The Near East South
Asia Center for Strategic Studies, established in 2000 and
located in Washington, D.C.

``(3) No institution or element of the Department of Defense may be
designated as a Department of Defense Regional Center for Security
Studies for purposes of this section, other than the institutions
specified in paragraph (2), except as specifically provided by law after
the date of the enactment of this section.
``(c) Regulations.--The administration of the Regional Centers under
this section shall be carried out under regulations prescribed by the
Secretary.
``(d) Participation.--Participants in activities of the Regional
Centers may include United States and foreign military, civilian, and
nongovernmental personnel.
``(e) Employment and Compensation of Faculty.--At each Regional
Center, the Secretary may, subject to the availability of
appropriations--
``(1) employ a Director, a Deputy Director, and as many
civilians as professors, instructors, and lecturers as the
Secretary considers necessary; and
``(2) prescribe the compensation of such persons, in
accordance with Federal guidelines.

``(f) Payment of Costs.--(1) Participation in activities of a
Regional Center shall be on a reimbursable basis (or by payment in
advance), except in a case in which reimbursement is waived in
accordance with paragraph (3).
``(2) For a foreign national participant, payment of costs may be
made by the participant, the participant's own government, by a
Department or agency of the United States other than the Department of
Defense, or by a gift or donation on behalf of one or more Regional
Centers accepted under section 2611 of this title on behalf of the
participant's government.
``(3) The Secretary of Defense may waive reimbursement of the costs
of activities of the Regional Centers for foreign military officers and
foreign defense and security civilian government officials from a
developing country if the Secretary determines that attendance of such
personnel without reimbursement is in the national security interest of
the United States. Costs for which reimbursement is waived pursuant to
this paragraph shall be paid from appropriations available to the
Regional Centers.
``(4) Funds accepted for the payment of costs shall be credited to
the appropriation then currently available to the Department of Defense
for the Regional Center that incurred the costs. Funds so credited shall
be merged with the appropriation to which credited and shall be
available to that Regional Center for the same purposes and same period
as the appropriation with which merged.
``(5) Funds available for the payment of personnel expenses under
the Latin American cooperation authority set forth in section 1050 of
this title are also available for the costs of the operation of the
Center for Hemispheric Defense Studies.
``(g) Support to Other Agencies.--The Director of a Regional Center
may enter into agreements with the Secretaries of the military
departments, the heads of the Defense Agencies, and, with the
concurrence of the Secretary of Defense, the heads of other Federal
departments and agencies for the provision of services by that Regional
Center under this section. Any such participating department and agency
shall transfer to the Regional Center funds to pay the full costs of the
services received.

[[Page 2353]]
120 STAT. 2353

``(h) Annual Report.--Not later than February 1 of each year, 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 operation of the Regional Centers for
security studies during the preceding fiscal year. The annual report
shall include, for each Regional Center, the following information:
``(1) The status and objectives of the center.
``(2) The budget of the center, including the costs of
operating the center.
``(3) A description of the extent of the international
participation in the programs of the center, including the costs
incurred by the United States for the participation of each
foreign nation.
``(4) A description of the foreign gifts and donations, if
any, accepted under section 2611 of this title.''.
(2) Clerical amendment.--The item relating to such section
in the table of sections at the beginning of chapter 7 of such
title is amended to read as follows:

``184. Regional Centers for Security Studies.''.

(b) Conforming Amendments.--
(1) Employment and compensation authority for civilian
faculty.--Section 1595 of title 10, United States Code, is
amended--
(A) in subsection (c)--
(i) by striking paragraphs (3) and (5); and
(ii) by redesignating paragraphs (4) and (6)
as paragraphs (3) and (4), respectively; and
(B) by striking subsection (e).
(2) Status of center for hemispheric defense studies.--
Section 2165 of title 10, United States Code, is amended--
(A) in subsection (b)--
(i) by striking paragraph (6); and
(ii) by redesignating paragraph (7) as
paragraph (6); and
(B) by striking subsection (c).
SEC. 905. OVERSIGHT BY OFFICE OF UNDER SECRETARY OF DEFENSE FOR
ACQUISITION, TECHNOLOGY, AND LOGISTICS OF
EXERCISE OF ACQUISITION AUTHORITY BY
COMBATANT COMMANDERS AND HEADS OF DEFENSE
AGENCIES.

(a) Designation of Official for Oversight.--The Secretary of Defense
shall designate a senior acquisition official within the Office of the
Under Secretary of Defense for Acquisition, Technology, and Logistics to
oversee the exercise of acquisition authority by--
(1) any commander of a combatant command who is authorized
by section 166b, 167, or 167a of title 10, United States Code,
to exercise acquisition authority; and
(2) any head of a Defense Agency who is designated by the
Secretary of Defense to exercise acquisition authority.

(b) Guidance.--
(1) In general.--The senior acquisition official designated
under subsection (a) shall develop guidance to ensure that the
use of acquisition authority by commanders of combatant commands
and the heads of Defense Agencies--

[[Page 2354]]
120 STAT. 2354

(A) is in compliance with department-wide
acquisition policy; and
(B) is coordinated with and mutually supportive of
acquisition programs of the military departments.
(2) Urgent requirements.--Guidance developed under paragraph
(1) shall take into account the need to fulfill the urgent
requirements of the commanders of combatant commands and the
heads of Defense Agencies and to ensure that those requirements
are addressed expeditiously.

(c) Consultation.--The senior acquisition official designated under
subsection (a) shall on a regular basis consult on matters related to
requirements and acquisition with the commanders of combatant commands
and the heads of Defense Agencies referred to in that subsection.
(d) Deadline for Designation.--The Secretary of Defense shall make
the designation required by subsection (a) not later than 180 days after
the date of the enactment of this Act.
SEC. 906. STANDARDIZATION OF STATUTORY REFERENCES TO ``NATIONAL
SECURITY SYSTEM'' WITHIN LAWS APPLICABLE
TO DEPARTMENT OF DEFENSE.

(a) Defense Business Systems.--Section 2222(j)(6) of title 10,
United States Code, is amended by striking ``in section 2315 of this
title'' and inserting ``in section 3542(b)(2) of title 44''.
(b) Chief Information Officer Responsibilities.--Section 2223(c)(3)
of such title is amended by striking ``section 11103 of title 40'' and
inserting ``section 3542(b)(2) of title 44''.
(c) Procurement of Automatic Data Processing Equipment and
Services.--The text of section 2315 of such title is amended to read as
follows:
``For purposes of subtitle III of title 40, the term `national
security system', with respect to a telecommunications and information
system operated by the Department of Defense, has the meaning given that
term by section 3542(b)(2) of title 44.''.
SEC. 907. CORRECTION OF REFERENCE TO PREDECESSOR OF DEFENSE
INFORMATION SYSTEMS AGENCY.

Paragraph (1) of section 193(f) of title 10, United States Code, is
amended to read as follows:
``(1) The Defense Information Systems Agency.''.

Subtitle B--Space Activities

SEC. 911. DESIGNATION OF SUCCESSOR ORGANIZATIONS FOR THE
DISESTABLISHED INTERAGENCY GLOBAL
POSITIONING EXECUTIVE BOARD.

(a) Successor Organizations.--Section 8 of the Commercial Space
Transportation Competitiveness Act of 2000 (10 U.S.C. 2281 note) is
amended by striking ``by Congress'' and all that follows and inserting
``for the functions and activities of the following organizations
established pursuant to the United States Space-Based Position,
Navigation, and Timing Policy issued December 8, 2004 (and any successor
organization, to the extent the successor organization performs the
functions of the specified organization):
``(1) The interagency committee known as the National Space-
Based Positioning, Navigation, and Timing Executive Committee.

[[Page 2355]]
120 STAT. 2355

``(2) The support office for the committee specified in
paragraph (1) known as the National Space-Based Positioning,
Navigation, and Timing Coordination Office.
``(3) The Federal advisory committee known as the National
Space-Based Positioning, Navigation, and Timing Advisory
Board.''.

(b) Clarification.--Such section is further amended by striking
``interagency funding'' and inserting ``multi-agency funding''.
SEC. 912. EXTENSION OF AUTHORITY FOR PILOT PROGRAM FOR PROVISION
OF SPACE SURVEILLANCE NETWORK SERVICES
TO NON-UNITED STATES GOVERNMENT
ENTITIES.

Section 2274(i) NOTE: Deadline. of title 10, United States Code,
is amended by striking ``shall be conducted'' and all that follows and
inserting ``may be conducted through September 30, 2009.''.
SEC. 913. OPERATIONALLY RESPONSIVE SPACE.

(a) United States Policy on Operationally Responsive Space.--It is
the policy of the United States to demonstrate, acquire, and deploy an
effective capability for operationally responsive space to support
military users and operations from space, which shall consist of--
(1) responsive satellite payloads and busses built to common
technical standards;
(2) low-cost space launch vehicles and supporting range
operations that facilitate the timely launch and on-orbit
operations of satellites;
(3) responsive command and control capabilities; and
(4) concepts of operations, tactics, techniques, and
procedures that permit the use of responsive space assets for
combat and military operations other than war.

(b) Operationally Responsive Space Program Office.--
(1) Establishment of office.--Section 2273a of title 10,
United States Code, is amended to read as follows:

``Sec. 2273a. Operationally Responsive Space Program Office

``(a) Establishment.--The Secretary of Defense shall establish
within the Department of Defense an office to be known as the
Operationally Responsive Space Program Office (in this section referred
to as the `Office').
``(b) Head of Office.--The head of the Office shall be--
``(1) the Department of Defense Executive Agent for Space;
or
``(2) the designee of the Secretary of Defense, who shall
report to the Department of Defense Executive Agent for Space.

``(c) Mission.--The mission of the Office shall be--
``(1) to contribute to the development of low-cost, rapid
reaction payloads, busses, spacelift, and launch control
capabilities in order to fulfill joint military operational
requirements for on-demand space support and reconstitution; and
``(2) to coordinate and execute operationally responsive
space efforts across the Department of Defense with respect to
planning, acquisition, and operations.

``(d) Elements.--The Secretary of Defense shall select the elements
of the Department of Defense to be included in the Office so as to
contribute to the development of capabilities for operationally
responsive space and to achieve a balanced representation

[[Page 2356]]
120 STAT. 2356

of the military departments in the Office to ensure proper
acknowledgment of joint considerations in the activities of the Office,
except that the Office shall include the following:
``(1) A science and technology element that shall pursue
innovative approaches to the development of capabilities for
operationally responsive space through basic and applied
research focused on (but not limited to) payloads, bus, and
launch equipment.
``(2) An acquisition element that shall undertake the
acquisition of systems necessary to integrate, sustain, and
launch assets for operationally responsive space.
``(3) An operations element that shall--
``(A) sustain and maintain assets for operationally
responsive space prior to launch;
``(B) integrate and launch such assets; and
``(C) operate such assets in orbit.
``(4) A combatant command support element that shall serve
as the primary intermediary between the military departments and
the combatant commands in order to--
``(A) ascertain the needs of the commanders of the
combatant commands; and
``(B) integrate operationally responsive space
capabilities into--
``(i) operations plans of the combatant
commands;
``(ii) techniques, tactics, and procedures of
the military departments; and
``(iii) military exercises, demonstrations,
and war games.
``(5) Such other elements as the Secretary of Defense may
consider necessary.

``(e) Acquisition Authority.--The acquisition activities of the
Office shall be subject to the following:
``(1) The Department of Defense Executive Agent for Space
shall be the senior acquisition executive of the Office.
``(2) The Joint Capabilities Integration and Development
System process shall not apply to acquisitions by the Office for
operational experimentation.
``(3) The commander of the United States Strategic Command,
or the designee of the commander, shall--
``(A) validate all system requirements for systems
to be acquired by the Office; and
``(B) participate in the approval of any acquisition
program initiated by the Office.
``(4) To the maximum extent practicable, the procurement
unit cost of a launch vehicle procured by the Office for launch
to low earth orbit should not exceed $20,000,000 (in constant
dollars).
``(5) To the maximum extent practicable, the procurement
unit cost of an integrated satellite procured by the Office
should not exceed $40,000,000 (in constant dollars).

``(f) Required Program Element.--(1) The Secretary of Defense shall
ensure that, within budget program elements for space programs of the
Department of Defense, that--
``(A) there is a separate, dedicated program element for
operationally responsive space;

[[Page 2357]]
120 STAT. 2357

``(B) to the extent applicable, relevant program elements
should be consolidated into the program element required by
subparagraph (A); and
``(C) the Office executes its responsibilities through this
program element.

``(2) The Office shall manage the program element required by
paragraph (1)(A).''.
(2) Clerical amendment.--The item relating to that section
in the table of sections at the beginning of chapter 135 of such
title is amended to read as follows:

``2273a. Operationally Responsive Space Program Office.''.

(c) Plan for Operationally Responsive Space.--
(1) Plan required.--Not NOTE: Reports. Deadline. later
than 120 days after the date of the enactment of this Act, the
Secretary of Defense shall submit to the congressional defense
committees a report setting forth a plan for the acquisition by
the Department of Defense of capabilities for operationally
responsive space to support military users and military
operations.
(2) Elements.--The plan required by paragraph (1) shall
include the following:
(A) An identification of the roles and missions of
each military department, Defense Agency, and other
component or element of the Department of Defense for
the fulfillment of the mission of the Department with
respect to operationally responsive space.
(B) An identification of the capabilities required
by the Department to fulfill such mission during the
period covered by the current future-years defense
program submitted to Congress pursuant to section 221 of
title 10, United States Code, and an additional 10-year
period.
(C) A description of the chain of command and
reporting structure of the Operationally Responsive
Space Program Office established under section 2273a of
title 10, United States Code, as amended by subsection
(b).
(D) A description of the classification of
information required for the Operationally Responsive
Space Program Office in order to ensure that the Office
carries out its responsibilities under such section
2273a in a proper and efficient manner.
(E) A description of the acquisition policies and
procedures applicable to the Operationally Responsive
Space Program Office, including a description of any
legislative or administrative action necessary to
provide the Office additional acquisition authority to
carry out its responsibilities.
(F) A schedule for the implementation of the plan
and the establishment of the Operationally Responsive
Space Program Office.
(G) The funding and personnel required to implement
the plan over the course of the current future-years
defense program.
(H) A description of any additional authorities and
programmatic, organizational, or other changes necessary
to ensure that the Operationally Responsive Space
Program Office can successfully carry out its
responsibilities.

[[Page 2358]]
120 STAT. 2358

(d) Repeal of Superseded Law.--Section 913 of the National Defense
Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat.
3408; 10 U.S.C. 2273a note) is repealed.
SEC. 914. INDEPENDENT REVIEW AND ASSESSMENT OF DEPARTMENT OF
DEFENSE ORGANIZATION AND MANAGEMENT FOR
NATIONAL SECURITY IN SPACE.

(a) Independent Review and Assessment Required.--The Secretary of
Defense shall select an appropriate entity outside the Department of
Defense to conduct an independent review and assessment of the
organization and management of the Department of Defense for national
security in space. In selecting the entity to conduct the review and
assessment, the Secretary shall consult with the chairman and ranking
minority member of the Committee on Armed Services of the Senate and the
chairman and ranking minority member of the Committee on Armed Services
of the House of Representatives.
(b) Elements.--The review and assessment required by this section
shall address the following:
(1) The requirements of the Department of Defense for
national security space capabilities, as identified by the
Department, and the efforts of the Department to fulfill such
requirements.
(2) The actions that could be taken by the Department to
modify the organization and management of the Department over
the near-term, medium-term, and long-term in order to strengthen
United States national security in space, and the ability of the
Department to implement its requirements and carry out the
future space missions, including the following:
(A) Actions to improve or enhance current
interagency coordination processes regarding the
operation of national security space assets, including
improvements or enhancements in interoperability and
communications.
(B) Actions to improve or enhance the relationship
between the intelligence aspects of national security
space (so-called ``black space'') and the non-
intelligence aspects of national security space (so-
called ``white space'').
(C) Actions to improve or enhance the manner in
which military space issues are addressed by
professional military education institutions.
(D) Actions to create a specialized career field for
military space acquisition personnel, to include an
emphasis on long-term assignments, that could help
develop and maintain a professional space acquisition
cadre with technical expertise and institutional
knowledge.

(c) Liaison.--The Secretary of Defense shall designate at least one
senior civilian employee of the Department of Defense, and at least one
general or flag officer, to serve as liaison between the Department, the
Armed Forces, and the entity conducting the review and assessment under
this section.
(d) Report.--Not later than one year after the date of the enactment
of this Act, the entity conducting the review and assessment under this
section shall submit to the Secretary of Defense and the congressional
defense committees a report containing--
(1) the results of the review and assessment; and

[[Page 2359]]
120 STAT. 2359

(2) recommendations on the best means by which the
Department may improve its organization and management for
national security in space.

Subtitle C--Chemical Demilitarization Program

SEC. 921. SENSE OF CONGRESS ON COMPLETION OF DESTRUCTION OF UNITED
STATES CHEMICAL WEAPONS STOCKPILE.

(a) Findings.--Congress makes the following findings:
(1) The Convention on the Prohibition of the Development,
Production, Stockpiling and Use of Chemical Weapons and on Their
Destruction, done at Paris on January 13, 1993 (commonly
referred to as the ``Chemical Weapons Convention''), requires
that destruction of the entire United States chemical weapons
stockpile be completed by no later than the extended deadline of
April 29, 2012.
(2) On April 10, 2006, the Department of Defense notified
Congress that the United States would not meet even the extended
deadline under the Chemical Weapons Convention for destruction
of the United States chemical weapons stockpile.
(3) Destroying existing chemical weapons is a homeland
security imperative and an arms control priority and is required
by United States law.
(4) The elimination and nonproliferation of chemical weapons
of mass destruction is of utmost importance to the national
security of the United States.

(b) Sense of Congress.--It is the sense of Congress that--
(1) the United States is committed to making every effort to
safely dispose of its entire chemical weapons stockpile by the
Chemical Weapons Convention extended deadline of April 29, 2012,
or as soon thereafter as possible, and will carry out all of its
other obligations under that Convention;
(2) to prevent further delays in completing the destruction
of the United States chemical weapons stockpile, the Secretary
of Defense should prepare a comprehensive schedule for the safe
destruction of such stockpile and should annually submit that
schedule (as currently in effect) to the congressional defense
committees, either separately or as part of another required
report, until such destruction is completed;
(3) the Secretary of Defense should make every effort to
ensure adequate funding to complete the elimination of the
United States chemical weapons stockpile in the shortest time
possible, consistent with the requirement to protect public
health, safety, and the environment; and
(4) when selecting a site for the treatment or disposal of
neutralized chemical agent at a location remote from the
location where the agent is stored, the Secretary of Defense
should propose a credible process that seeks to gain the support
of affected communities.

[[Page 2360]]
120 STAT. 2360

SEC. 922. COMPTROLLER GENERAL REVIEW OF COST-BENEFIT ANALYSIS OF
OFF-SITE VERSUS ON-SITE TREATMENT AND
DISPOSAL OF HYDROLYSATE DERIVED FROM
NEUTRALIZATION OF VX NERVE GAS AT NEWPORT
CHEMICAL DEPOT, INDIANA.

(a) Review NOTE: Reports. Required.--Not later than December 1,
2006, the Comptroller General shall submit to Congress a report
containing a review of the cost-benefit analysis prepared by the
Secretary of the Army entitled ``Cost-Benefit Analysis of Off-Site
Versus On-Site Treatment and Disposal of Newport Caustic Hydrolysate''
and dated April 24, 2006.

(b) Content of Review.--In conducting the review under subsection
(a), the Comptroller General shall consider and assess at a minimum the
following matters:
(1) The adequacy of the rationale contained in the cost-
benefit analysis referred to in subsection (a) in dismissing
five of the eight technologies for hydrolysate treatment
directed for consideration on page 116 of the Report of the
Committee on Armed Services of the House of Representatives on
H.R. 1815 (House Report 109-89).
(2) The rationale for the failure of the Secretary of the
Army to consider other technical solutions, such as constructing
a wastewater disposal system at the Newport Chemical Depot.
(3) The adequacy of the cost-benefit analysis presented for
the three technologies considered.

(c) Limitation on Transport NOTE: New Jersey. Pending Report.--
The Secretary of the Army may not transport neutralized bulk nerve agent
(other than those small quantities necessary for laboratory evaluation
of the disposal process) from the Newport Chemical Depot to the State of
New Jersey until the earlier of--
(1) the end of the 60-day period beginning on the date on
which the report required by subsection (a) is submitted; or
(2) February 1, 2007.
SEC. 923. INCENTIVES CLAUSES IN CHEMICAL DEMILITARIZATION
CONTRACTS.

(a) In General.--
(1) Authority to include clauses in contracts.--The
Secretary of Defense may, for the purpose specified in paragraph
(2), authorize the inclusion of an incentives clause in any
contract for the destruction of the United States stockpile of
lethal chemical agents and munitions carried out pursuant to
section 1412 of the Department of Defense Authorization Act,
1986 (50 U.S.C. 1521).
(2) Purpose.--The purpose of a clause referred to in
paragraph (1) is to provide the contractor for a chemical
demilitarization facility an incentive to accelerate the safe
elimination of the United States chemical weapons stockpile and
to reduce the total cost of the Chemical Demilitarization
Program by providing incentive payments for the early completion
of destruction operations and the closure of such facility.

(b) Incentives Clauses.--
(1) In general.--An incentives clause under this section
shall permit the contractor for the chemical demilitarization
facility concerned the opportunity to earn incentive payments
for the completion of destruction operations and facility
closure

[[Page 2361]]
120 STAT. 2361

activities within target incentive ranges specified in such
clause.
(2) Limitation on incentive payments.--The maximum incentive
payment under an incentives clause with respect to a chemical
demilitarization facility may not exceed amounts as follows:
(A) In the case of an incentive payment for the
completion of destruction operations within the target
incentive range specified in such clause, $110,000,000.
(B) In the case of an incentive payment for the
completion of facility closure activities within the
target incentive range specified in such clause,
$55,000,000.
(3) Target ranges.--An incentives clause in a contract under
this section shall specify the target incentive ranges of costs
for completion of destruction operations and facility closure
activities, respectively, as jointly agreed upon by the
contracting officer and the contractor concerned. An incentives
clause shall require a proportionate reduction in the maximum
incentive payment amounts in the event that the contractor
exceeds an agreed-upon target cost if such excess costs are the
responsibility of the contractor.
(4) Calculation of incentive payments.--The amount of the
incentive payment earned by a contractor for a chemical
demilitarization facility under an incentives clause under this
section shall be based upon a determination by the Secretary on
how early in the target incentive range specified in such clause
destruction operations or facility closure activities, as the
case may be, are completed.
(5) Consistency with existing obligations.--The provisions
of any incentives clause under this section shall be consistent
with the obligation of the Secretary of Defense under section
1412(c)(1)(A) of the Department of Defense Authorization Act,
1986, to provide for maximum protection for the environment, the
general public, and the personnel who are involved in the
destruction of the lethal chemical agents and munitions.
(6) Additional terms and conditions.--In negotiating the
inclusion of an incentives clause in a contract under this
section, the Secretary may include in such clause such
additional terms and conditions as the Secretary considers
appropriate.

(c) Additional Limitation on Payments.--
(1) Payment conditional on performance.--No payment may be
made under an incentives clause under this section unless the
Secretary determines that the contractor concerned has
satisfactorily performed its duties under such incentives
clause.
(2) Payment contingent on appropriations.--An incentives
clause under this section shall specify that the obligation of
the Government to make payment under such incentives clause is
subject to the availability of appropriations for that purpose.
Amounts appropriated for Chemical Agents and Munitions
Destruction, Defense, shall be available for payments under
incentives clauses under this section.

[[Page 2362]]
120 STAT. 2362

SEC. 924. CHEMICAL DEMILITARIZATION PROGRAM CONTRACTING AUTHORITY.

(a) Multiyear Contracting Authority.--The Secretary of Defense may
carry out responsibilities under section 1412(a) of the Department of
Defense Authorization Act, 1986 (50 U.S.C. 1521(a)) through multiyear
contracts entered into before the date of the enactment of this Act.
(b) Availability of Funds.--Contracts entered into under subsection
(a) shall be funded through annual appropriations for the destruction of
chemical agents and munitions.

Subtitle D--Intelligence-Related Matters

SEC. 931. FOUR-YEAR EXTENSION OF AUTHORITY OF SECRETARY OF DEFENSE
TO ENGAGE IN COMMERCIAL ACTIVITIES AS
SECURITY FOR INTELLIGENCE COLLECTION
ACTIVITIES.

Section 431(a) of title 10, United States Code, is amended by
striking ``December 31, 2006'' and inserting ``December 31, 2010''.
SEC. 932. ANNUAL REPORTS ON INTELLIGENCE OVERSIGHT ACTIVITIES OF
THE DEPARTMENT OF DEFENSE.

(a) In General.--Subchapter I of chapter 21 of title 10, United
States Code, is amended by adding at the end the following new section:

``Sec. 427. Intelligence oversight activities of Department of Defense:
annual reports

``(a) Annual Reports Required.--(1) Not later than March 1 of each
year, the Secretary of Defense shall submit--
``(A) to the congressional committees specified in
subparagraph (A) of paragraph (2) a report on the intelligence
oversight activities of the Department of Defense during the
previous calendar year insofar as such oversight activities
relate to tactical intelligence and intelligence-related
activities of the Department; and
``(B) to the congressional committees specified in
subparagraph (B) of paragraph (2) a report on the intelligence
oversight activities of the Department of Defense during the
previous calendar year insofar as such oversight activities
relate to intelligence and intelligence-related activities of
the Department other than those specified in subparagraph (A).

``(2)(A) The committees specified in this subparagraph are the
following:
``(i) The Committee on Armed Services and the Committee on
Appropriations of the Senate.
``(ii) The Permanent Select Committee on Intelligence, the
Committee on Armed Services, and the Committee on Appropriations
of the House of Representatives.

``(B) The committees specified in this subparagraph are the
following:
``(i) The Select Committee on Intelligence, the Committee on
Armed Services, and the Committee on Appropriations of the
Senate.
``(ii) The Permanent Select Committee on Intelligence and
the Committee on Appropriations of the House of Representatives.

[[Page 2363]]
120 STAT. 2363

``(b) Elements.--Each report under subsection (a) shall include, for
the calendar year covered by such report and with respect to oversight
activities subject to coverage in that report, the following:
``(1) A description of any violation of law or of any
Executive order or Presidential directive (including Executive
Order No. 12333) that comes to the attention of any General
Counsel or Inspector General within the Department of Defense,
or the Under Secretary of Defense for Intelligence, and a
description of the actions taken by such official with respect
to such activity.
``(2) A description of the results of intelligence oversight
inspections undertaken by each of the following:
``(A) The Office of the Secretary of Defense.
``(B) Each military department.
``(C) Each combat support agency.
``(D) Each field operating agency.
``(3) A description of any changes made in any program for
the intelligence oversight activities of the Department of
Defense, including any training program.
``(4) A description of any changes made in any published
directive or policy memoranda on the intelligence or
intelligence-related activities of--
``(A) any military department;
``(B) any combat support agency; or
``(C) any field operating agency.

``(c) Definitions.--In this section:
``(1) The term `intelligence oversight activities of the
Department of Defense' refers to any activity undertaken by an
agency, element, or component of the Department of Defense to
ensure compliance with regard to requirements or instructions on
the intelligence and intelligence-related activities of the
Department under law or any Executive order or Presidential
directive (including Executive Order No. 12333).
``(2) The term `combat support agency' has the meaning given
that term in section 193(f) of this title.
``(3) The term `field operating agency' means a specialized
subdivision of the Department of Defense that carries out
activities under the operational control of the Department.''.

(b) Clerical Amendment.--The table of sections at the beginning of
such subchapter is amended by adding at the end the following new item:

``427. Intelligence oversight activities of Department of Defense:
annual reports.''.

SEC. 933. COLLECTION BY NATIONAL SECURITY AGENCY OF SERVICE
CHARGES FOR CERTIFICATION OR VALIDATION OF
INFORMATION ASSURANCE PRODUCTS.

The National Security Agency Act of 1959 (50 U.S.C. 402 note) is
amended by adding at the end the following new section:
``Sec. 20. (a) The Director may collect charges for evaluating,
certifying, or validating information assurance products under the
National Information Assurance Program or successor program.
``(b) NOTE: Regulations. The charges collected under subsection
(a) shall be established through a public rulemaking process in
accordance with Office of Management and Budget Circular No. A-25.

``(c) Charges collected under subsection (a) shall not exceed the
direct costs of the program referred to in that subsection.

[[Page 2364]]
120 STAT. 2364

``(d) The appropriation or fund bearing the cost of the service for
which charges are collected under the program referred to in subsection
(a) may be reimbursed, or the Director may require advance payment
subject to such adjustment on completion of the work as may be agreed
upon.
``(e) Amounts collected under this section shall be credited to the
account or accounts from which costs associated with such amounts have
been or will be incurred, to reimburse or offset the direct costs of the
program referred to in subsection (a).''.

Subtitle E--Other Matters

SEC. 941. DEPARTMENT OF DEFENSE POLICY ON UNMANNED SYSTEMS.

(a) Policy Required.--The Secretary of Defense shall develop a
policy, to be applicable throughout the Department of Defense, on
research, development, test and evaluation, procurement, and operation
of unmanned systems.
(b) Elements.--The policy required by subsection (a) shall include
or address the following:
(1) An identification of missions and mission requirements,
including mission requirements for the military departments and
joint mission requirements, for which unmanned systems may
replace manned systems.
(2) A preference for unmanned systems in acquisition
programs for new systems, including a requirement under any such
program for the development of a manned system for a
certification that an unmanned system is incapable of meeting
program requirements.
(3) An assessment of the circumstances under which it would
be appropriate to pursue joint development and procurement of
unmanned systems and components of unmanned systems.
(4) The transition of unmanned systems unique to one
military department to joint systems, when appropriate.
(5) An organizational structure for effective management,
coordination, and budgeting for the development and procurement
of unmanned systems, including an assessment of the feasibility
and advisability of designating a single department or other
element of the Department of Defense to act as executive agent
for the Department on unmanned systems.
(6) The integration of unmanned and manned systems to
enhance support of the missions identified in paragraph (1).
(7) Such other matters that the Secretary of Defense
considers to be appropriate.

(c) Consultation.--The Secretary of Defense shall develop the policy
required by subsection (a) in consultation with the Chairman of the
Joint Chiefs of Staff.
(d) Report.--Not later than 120 days after the date of the enactment
of this Act, the Secretary shall submit to the congressional defense
committees a report containing--
(1) the policy required by subsection (a); and
(2) an implementation plan for the policy that includes--
(A) a strategy and schedules for the replacement of
manned systems with unmanned systems in the performance
of the missions identified in the policy pursuant to
subsection (b)(1);

[[Page 2365]]
120 STAT. 2365

(B) establishment of programs to address technical,
operational, and production challenges, and gaps in
capabilities, with respect to unmanned systems; and
(C) an assessment of progress towards meeting the
goals identified for the subset of unmanned air and
ground systems established in section 220 of the Floyd
D. Spence National Defense Authorization Act for Fiscal
Year 2001 (as enacted into law by Public Law 106-398;
114 Stat. 1654A-38).

(e) Unmanned Systems Defined.--In this section, the term ``unmanned
systems'' consists of unmanned aerial systems, unmanned ground systems,
and unmanned maritime systems.
SEC. 942. EXECUTIVE SCHEDULE LEVEL IV FOR DEPUTY UNDER SECRETARY
OF DEFENSE FOR LOGISTICS AND MATERIEL
READINESS.

(a) Executive Schedule Level IV.--Section 5315 of title 5, United
States Code, is amended by inserting after the item relating to the
Deputy Under Secretary of Defense for Personnel and Readiness the
following new item:
``Deputy Under Secretary of Defense for Logistics and
Materiel Readiness.''.

(b) Conforming Amendment.--Section 5314 of title 5, United States
Code, is amended by striking the item relating to the Deputy Under
Secretary of Defense for Logistics and Materiel Readiness.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act, and shall apply with
respect to individuals appointed as Deputy Under Secretary of Defense
for Logistics and Materiel Readiness on or after that date.
SEC. 943. STUDY AND REPORT ON REFORM OF DEFENSE TRAVEL SYSTEM.

(a) Independent Study of System.--
(1) Study required.--Not NOTE: Deadline. later than 180
days after the date of the enactment of this Act, the Secretary
of Defense shall submit to the congressional defense committees
the results and recommendations of an independent study of the
Defense Travel System conducted to determine the most cost-
effect method of meeting Department of Defense travel
requirements. The study shall be conducted by an entity outside
the Department of Defense.
(2) Elements of study.--At a minimum, the study required by
this subsection shall address the following:
(A) The feasibility of separating the financial
infrastructure of the Defense Travel System, including
voucher processing, accounting, disbursing, debt
collection, management accountability, and archival
functions, from the travel reservation process.
(B) The feasibility of converting the travel
reservation process to a fee-for-services system or
authorizing the use of multiple travel reservation
processes, all of which processes would use the
financial infrastructure of the Defense Travel System.
(C) The feasibility of making the use of the
financial infrastructure of the Defense Travel System
mandatory for all Department of Defense travel
transactions.

[[Page 2366]]
120 STAT. 2366

(b) Implementation NOTE: Deadline. Plans.--Not later than 60
days after the Secretary of Defense receives the independent study
required by subsection (a), NOTE: Reports. the Secretary shall
submit to the congressional defense committees a report describing the
actions, if any, that the Secretary intends to take to implement the
recommendations contained in the study. If the Secretary does not intend
to implement any of the recommendations, the Secretary shall explain the
basis for this decision.

(c) Conditions on New Contract or Expenditures for Defense Travel
System.--Except to continue operations to provide current services and
to perform the functions described in paragraphs (1) through (3), the
Secretary of Defense may not initiate a new contract for the Defense
Travel System or expend funds for the Defense Travel System until each
of the following occurs:
(1) The Secretary submits the report required by subsection
(b).
(2) The Secretary develops firm, fixed requirements for the
Defense Travel System.
(3) The Secretary develops a schedule to phase out the
legacy travel systems made redundant by implementation of the
Defense Travel System.
SEC. 944. ADMINISTRATION OF PILOT PROJECT ON CIVILIAN LINGUIST
RESERVE CORPS.

(a) Transfer of Administration to Secretary of Defense.--
(1) In general.--Administration of the pilot project on the
establishment of a Civilian Linguist Reserve Corps required by
section 613 of the Intelligence Authorization Act for Fiscal
Year 2005 (Public Law 108-487; 118 Stat. 3959; 50 U.S.C. 403-1b
note) is hereby transferred from the Director of National
Intelligence to the Secretary of Defense.
(2) Conforming amendments.--Section 613 of the Intelligence
Authorization Act for Fiscal Year 2005 is amended--
(A) by striking ``Director of National
Intelligence'' each place it appears and inserting
``Secretary of Defense''; and
(B) by striking ``Director'' each place it appears
and inserting ``Secretary''.

(b) Coordination With Director of National Intelligence in
Administration.--Subsection (a) of such section is further amended--
(1) by inserting ``(1)'' after ``Pilot Project.--''; and
(2) by adding at the end the following new paragraph:

``(2) The Secretary shall conduct the pilot project in coordination
with the Director of National Intelligence.''.
(c) Discharge of Project Through National Security Education
Program.--Subsection (a) of such section is further amended by adding at
the end the following new paragraph:
``(3) The Secretary shall conduct the pilot project through the
National Security Education Program.''.
(d) Duration of Project.--Subsection (c) of such section is amended
by striking ``three-year period'' and inserting ``five-year period''.
(e) Repeal of Superseded Authorization.--Such section is further
amended by striking subsection (f).

[[Page 2367]]
120 STAT. 2367

SEC. 945. IMPROVEMENT OF AUTHORITIES ON THE NATIONAL SECURITY
EDUCATION PROGRAM.

(a) Expansion of Employment Creditable Under Service Agreements.--
Paragraph (2) of subsection (b) of section 802 of the David L. Boren
National Security Education Act of 1991 (50 U.S.C. 1902) is amended to
read as follows:
``(2)(A) NOTE: Deadline. will (in accordance with
regulations prescribed by the Secretary of Defense in
coordination with the heads of the other Federal departments and
agencies concerned) begin work not later than three years after
the recipient's completion of degree study during which
scholarship assistance was provided under the program--
``(i) for not less than one year in a position
certified by the Secretary of Defense, in
coordination with the Director of National
Intelligence, the Secretary of Homeland Security,
and the Secretary of State (as appropriate), as
contributing to the national security of the
United States in the Department of Defense, any
element of the intelligence community, the
Department of Homeland Security, or the Department
of State; or
``(ii) for not less than one year in a
position in a Federal agency or office that is
identified by the Secretary of Defense under
subsection (g) as having national security
responsibilities if the recipient demonstrates to
the Secretary that no position is available in the
departments and agencies covered by clause (i); or
``(B) will (in accordance with such regulations)
begin work not later than two years after the
recipient's completion or termination of study for which
fellowship assistance was provided under the program--
``(i) for not less than one year in a position
certified by the Secretary of Defense, in
coordination with the Director of National
Intelligence, the Secretary of Homeland Security,
and the Secretary of State (as appropriate), as
contributing to the national security of the
United States in the Department of Defense, any
element of the intelligence community, the
Department of Homeland Security, or the Department
of State; or
``(ii) for not less than one year in a
position in a Federal agency or office that is
identified by the Secretary of Defense under
subsection (g) as having national security
responsibilities if the recipient demonstrates to
the Secretary that no position is available in the
departments and agencies covered by clause (i);
and''.

(b) Temporary Employment and Retention of Certain Participants.--
Such section is further amended--
(1) by redesignating subsections (h) and (i) as subsections
(i) and (j), respectively; and
(2) by inserting after subsection (g) the following new
subsection (h):

``(h) Temporary Employment and Retention of Certain Participants.--
``(1) In general.--The Secretary of Defense may--

[[Page 2368]]
120 STAT. 2368

``(A) appoint or retain a person provided
scholarship or fellowship assistance under the program
in a position in the Department of Defense on an interim
basis during the period of the person's pursuit of a
degree under the program and for a period not to exceed
two years after completion of the degree, but only if,
in the case of the period after completion of the
degree, there is an active investigation to provide
security clearance to the person for an appropriate
permanent position in the Department of Defense under
subsection (b)(2); and
``(B) if there is no appropriate permanent position
available for the person after the end of the periods
described in subparagraph (A), separate the person from
employment with the Department without regard to any
other provision of law, in which event the service
agreement of the person under subsection (b) shall
terminate.
``(2) Treatment of certain service.--The period of service
of a person covered by paragraph (1) in a position on an interim
basis under that paragraph shall, after completion of the
degree, be treated as a period of service for purposes of
satisfying the obligated service requirements of the person
under the service agreement of the person under subsection
(b).''.

(c) Plan for Improving Program.--Not NOTE: Deadline. later than
90 days after the date of the enactment of this Act, the Secretary of
Defense shall submit to Congress a plan for improving the recruitment,
placement, and retention within the Department of Defense of individuals
who receive scholarships or fellowships under the David L. Boren
National Security Education Act of 1991 (50 U.S.C. 1901 et seq.) in
order to facilitate the purposes of that Act in meeting the requirements
of the Department in acquiring individuals with critical foreign
language skills and individuals who are regional experts.
SEC. 946. REPORT ON THE POSTURE OF UNITED STATES SPECIAL
OPERATIONS COMMAND TO CONDUCT THE GLOBAL
WAR ON TERRORISM.

(a) Findings.--Congress makes the following findings:
(1) The 2006 Quadrennial Defense Review recommends an
increase in the size of the United States Special Operations
Command as a fundamental part of the efforts of the Department
of Defense to fight the global war on terrorism.
(2) Special operations forces conducting all nine of their
statutory activities, as specified in section 167(j) of title
10, United States Code, play a crucial role in the global war on
terrorism, and the Department of Defense should take a balanced
approach to the expansion of the force structure of that command
to provide additional capability in both the active and reserve
components.
(3) Special operations forces are engaged in operations
across the globe and in extreme and varied operational
environments which require specialized training to successfully
operate in those environments.
(4) Due to the global and long-term nature of the global war
on terrorism, the Secretary of Defense should assess whether the
United States Special Operations Command has

[[Page 2369]]
120 STAT. 2369

the appropriate force structure and training focus required for
successful operations in the global war on terrorism.

(b) Report on Posture of SOCOM to Conduct the Global War on
Terrorism.--Not later than six months after the date of the enactment of
this Act, the Secretary of Defense shall submit to the congressional
defense committees a report assessing the posture of the United States
Special Operations Command to conduct the global war on terrorism. The
Secretary shall include in the report the following:
(1) The Secretary's assessment of whether the United States
Special Operations Command is appropriately manned, resourced,
and equipped to successfully meet the long-term requirements of
the global war on terrorism.
(2) The Secretary's assessment whether the expansion of that
command as recommended in the 2006 Quadrennial Defense Review
provides an appropriate balance between active and reserve
component capabilities.
(3) The Secretary's assessment of whether United States
Special Operations Command has sufficient Army Special Forces to
meet the 2006 Quadrennial Defense Review objective of building
allied and partner nation capacity through security assistance
and other training missions such as the Joint Combined Exchange
Training program.
(4) A detailed statement of the efforts of the commander of
the United States Special Operations Command to provide special
operations forces personnel with specialized environmental
training in preparation for operations across the globe and in
extreme and varied operational environments such as mountain,
jungle, or desert environments.

TITLE X--GENERAL PROVISIONS

Subtitle A--Financial Matters

Sec. 1001. General transfer authority.
Sec. 1002. Authorization of additional emergency supplemental
appropriations for fiscal year 2006.
Sec. 1003. Reduction in certain authorizations due to savings relating
to lower inflation.
Sec. 1004. Increase in fiscal year 2006 general transfer authority.
Sec. 1005. United States contribution to NATO common-funded budgets in
fiscal year 2007.
Sec. 1006. Report on budgeting for fluctuations in fuel cost rates.
Sec. 1007. Modification of date of submittal of OMB/CBO report on
scoring of outlays.
Sec. 1008. Budgeting for ongoing military operations in Afghanistan and
Iraq.

Subtitle B--Policy Relating to Vessels and Shipyards

Sec. 1011. Aircraft carrier force structure.
Sec. 1012. Sense of Congress on naming the CVN-78 aircraft carrier as
the U.S.S. Gerald R. Ford.
Sec. 1013. Transfer of naval vessels to foreign nations based upon
vessel class.
Sec. 1014. Overhaul, repair, and maintenance of vessels in foreign
shipyards.
Sec. 1015. Report on options for future lease arrangement for Guam
Shipyard.
Sec. 1016. Assessments of naval vessel construction efficiencies and of
effectiveness of special contractor incentives.
Sec. 1017. Obtaining carriage by vessel: criterion regarding overhaul,
repair, and maintenance of vessels in the United States.
Sec. 1018. Riding gang member requirements.
Sec. 1019. Authority to transfer SS Arthur M. Huddell to the Government
of Greece.

[[Page 2370]]
120 STAT. 2370

Subtitle C--Counter-Drug Activities

Sec. 1021. Extension of authority of Department of Defense to provide
additional support for counterdrug activities of other
governmental agencies.
Sec. 1022. Extension and expansion of Department of Defense authority to
provide support for counter-drug activities of certain
foreign governments.
Sec. 1023. Extension of authority to support unified counterdrug and
counterterrorism campaign in Colombia.
Sec. 1024. Continuation of reporting requirement regarding Department of
Defense expenditures to support foreign counterdrug
activities.
Sec. 1025. Report on interagency counter-narcotics plan for Afghanistan
and South and Central Asian regions.
Sec. 1026. Report on United States support for Operation Bahamas, Turks
& Caicos.

Subtitle D--Force Structure and Defense Policy Matters

Sec. 1031. Improvements to Quadrennial Defense Review.
Sec. 1032. Quarterly reports on implementation of 2006 Quadrennial
Defense Review Report.
Sec. 1033. Report on feasibility of establishing a regional combatant
command for Africa.
Sec. 1034. Determination of Department of Defense intratheater and
intertheater airlift requirements and sealift mobility
requirements.
Sec. 1035. Presidential report on improving interagency support for
United States 21st century national security missions and
interagency operations in support of stability, security,
transition, and reconstruction operations.

Subtitle E--Reports

Sec. 1041. Additional element in annual report on chemical and
biological warfare defense.
Sec. 1042. Report on biodefense human capital requirements in support of
biosafety laboratories.
Sec. 1043. Report on technologies for neutralizing or defeating threats
to military rotary-wing aircraft from portable air defense
systems and rocket-propelled grenades.
Sec. 1044. Reports on expanded use of unmanned aerial vehicles in the
National Airspace System.
Sec. 1045. Report on incentives to encourage certain members and former
members of the Armed Forces to serve in the Bureau of Customs
and Border Protection.
Sec. 1046. Repeal of certain report requirements.
Sec. 1047. Requirement for identification of recently enacted recurring
reporting requirements applicable to the Department of
Defense.

Subtitle F--Miscellaneous Authorities and Limitations on Availability
and Use of Funds

Sec. 1051. Acceptance and retention of reimbursement from non-Federal
sources to defray Department of Defense costs of conferences.
Sec. 1052. Increased flexibility in use of funds for Joint Staff
exercises.
Sec. 1053. Prohibition on parking of funds.
Sec. 1054. Modification of authorities relating to the Special Inspector
General for Iraq Reconstruction.

Subtitle G--Matters Involving Detainees

Sec. 1061. Provision of information to Congress on certain criminal
investigations and prosecutions involving detainees.

Subtitle H--Other Matters

Sec. 1071. Technical and clerical amendments.
Sec. 1072. Revision to authorities relating to Commission on the
Implementation of the New Strategic Posture of the United
States.
Sec. 1073. Revised deadline for submission of final report of EMP
Commission.
Sec. 1074. Extension of returning worker exemption to H-2B numerical
limitation.
Sec. 1075. Patent term extensions for the badges of the American Legion,
the American Legion Women's Auxiliary, and the Sons of the
American Legion.
Sec. 1076. Use of the Armed Forces in major public emergencies.
Sec. 1077. Increased hunting and fishing opportunities for members of
the Armed Forces, retired members, and disabled veterans.

[[Page 2371]]
120 STAT. 2371

Subtitle A--Financial Matters

SEC. 1001. GENERAL TRANSFER AUTHORITY.

(a) Authority to Transfer Authorizations.--
(1) Authority.--Upon determination by the Secretary of
Defense that such action is necessary in the national interest,
the Secretary may transfer amounts of authorizations made
available to the Department of Defense in this division for
fiscal year 2007 between any such authorizations for that fiscal
year (or any subdivisions thereof). Amounts of authorizations so
transferred shall be merged with and be available for the same
purposes as the authorization to which transferred.
(2) Limitation.--The total amount of authorizations that the
Secretary may transfer under the authority of this section may
not exceed $4,500,000,000.

(b) Limitations.--The authority provided by this section to transfer
authorizations--
(1) may only be used to provide authority for items that
have a higher priority than the items from which authority is
transferred; and
(2) may not be used to provide authority for an item that
has been denied authorization by Congress.

(c) Effect on Authorization Amounts.--A transfer made from one
account to another under the authority of this section shall be deemed
to increase the amount authorized for the account to which the amount is
transferred by an amount equal to the amount transferred.
(d) Notice to Congress.--The Secretary shall promptly notify
Congress of each transfer made under subsection (a).
SEC. 1002. AUTHORIZATION OF ADDITIONAL EMERGENCY SUPPLEMENTAL
APPROPRIATIONS FOR FISCAL YEAR 2006.

(a) Iraq, Afghanistan, and the Global War on Terror.--Amounts
authorized to be appropriated to the Department of Defense for fiscal
year 2006 in the National Defense Authorization Act for Fiscal Year 2006
(Public Law 109-163) are hereby adjusted, with respect to any such
authorized amount, by the amount by which appropriations pursuant to
such authorization are increased by a supplemental appropriation, or
decreased by a rescission, or both, or are increased by a transfer of
funds, pursuant to title I of the Emergency Supplemental Appropriations
Act for Defense, the Global War on Terror, and Hurricane Recovery, 2006
(Public Law 109-234).
(b) Hurricane Disaster Relief and Recovery.--Amounts authorized to
be appropriated to the Department of Defense for fiscal year 2006 in the
National Defense Authorization Act for Fiscal Year 2006 are hereby
adjusted, with respect to any such authorized amount, by the amount by
which appropriations pursuant to such authorization are increased by a
supplemental appropriation, or decreased by a rescission, or both, or
are increased by a transfer of funds, pursuant to title II of the
Emergency Supplemental Appropriations Act for Defense, the Global War on
Terror, and Hurricane Recovery, 2006.
(c) Border Security.--Amounts authorized to be appropriated to the
Department of Defense for fiscal year 2006 in the National Defense
Authorization Act for Fiscal Year 2006 are hereby adjusted,

[[Page 2372]]
120 STAT. 2372

with respect to any such authorized amount, by the amount by which
appropriations pursuant to such authorization are increased by a
supplemental appropriation, or decreased by a rescission, or both, or
are increased by a transfer of funds, pursuant to title V of the
Emergency Supplemental Appropriations Act for Defense, the Global War on
Terror, and Hurricane Recovery, 2006.
SEC. 1003. REDUCTION IN CERTAIN AUTHORIZATIONS DUE TO SAVINGS
RELATING TO LOWER INFLATION.

(a) Reduction.--The aggregate amount authorized to be appropriated
by titles I, II, and III is the amount equal to the sum of all the
amounts authorized to be appropriated by such titles reduced by
$757,051,000.
(b) Source of Savings.--Reductions required in order to comply with
subsection (a) shall be derived from savings resulting from lower-than-
expected inflation as a result of a review of the inflation assumptions
used in the preparation of the budget of the President for fiscal year
2007, as submitted to Congress pursuant to section 1005 of title 31,
United States Code.
(c) Allocation of Reduction.--The Secretary of Defense shall
allocate the reduction required by subsection (a) among the amounts
authorized to be appropriated for accounts in titles I, II, and III to
reflect the extent to which net savings from lower-than-expected
inflation are allocable to amounts authorized to be appropriated to such
accounts.
SEC. 1004. INCREASE IN FISCAL YEAR 2006 GENERAL TRANSFER
AUTHORITY.

Section 1001(a)(2) of the National Defense Authorization Act for
Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3418) is amended by
striking ``$3,500,000,000'' and inserting ``$5,000,000,000''.
SEC. 1005. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED
BUDGETS IN FISCAL YEAR 2007.

(a) Fiscal Year 2007 Limitation.--The total amount contributed by
the Secretary of Defense in fiscal year 2007 for the common-funded
budgets of NATO may be any amount up to, but not in excess of, the
amount specified in subsection (b) (rather than the maximum amount that
would otherwise be applicable to those contributions under the fiscal
year 1998 baseline limitation).
(b) Total Amount.--The amount of the limitation applicable under
subsection (a) is the sum of the following:
(1) The amounts of unexpended balances, as of the end of
fiscal year 2006, of funds appropriated for fiscal years before
fiscal year 2007 for payments for those budgets.
(2) The amount specified in subsection (c)(1).
(3) The amount specified in subsection (c)(2).
(4) The total amount of the contributions authorized to be
made under section 2501.

(c) Authorized Amounts.--Amounts authorized to be appropriated by
titles II and III of this Act are available for contributions for the
common-funded budgets of NATO as follows:
(1) Of the amount provided in section 201(1), $797,000 for
the Civil Budget.
(2) Of the amount provided in section 301(1), $310,277,000
for the Military Budget.

(d) Definitions.--For purposes of this section:

[[Page 2373]]
120 STAT. 2373

(1) Common-funded budgets of nato.--The term ``common-funded
budgets of NATO'' means the Military Budget, the Security
Investment Program, and the Civil Budget of the North Atlantic
Treaty Organization (and any successor or additional account or
program of NATO).
(2) Fiscal year 1998 baseline limitation.--The term ``fiscal
year 1998 baseline limitation'' means the maximum annual amount
of Department of Defense contributions for common-funded budgets
of NATO that is set forth as the annual limitation in section
3(2)(C)(ii) of the resolution of the Senate giving the advice
and consent of the Senate to the ratification of the Protocols
to the North Atlantic Treaty of 1949 on the Accession of Poland,
Hungary, and the Czech Republic (as defined in section 4(7) of
that resolution), approved by the Senate on April 30, 1998.
SEC. 1006. REPORT ON BUDGETING FOR FLUCTUATIONS IN FUEL COST
RATES.

(a) Secretary of Defense Report.--
(1) Report on budgeting for fuel cost fluctuations.--Not
later than February 15, 2007, the Secretary of Defense shall
submit to the Committee on Armed Services of the Senate and the
Committee on Armed Services of the House of Representatives a
report on the fuel rate and cost projection used in the annual
Department of Defense budget presentation.
(2) Matters to be included.--In the report under paragraph
(1), the Secretary shall--
(A) identify alternative approaches for selecting
fuel rates that would produce more realistic estimates
of amounts required to be appropriated or otherwise made
available for the Department of Defense to accommodate
fuel rate fluctuations;
(B) discuss the advantages and disadvantages of each
approach identified pursuant to subparagraph (A); and
(C) identify the Secretary's preferred approach
among the alternative identified pursuant to
subparagraph (A) and provide the Secretary's rationale
for preferring that approach.
(3) Identification of alternative approaches.--In
identifying alternative approaches pursuant to paragraph (2)(A),
the Secretary shall examine--
(A) approaches used by other Federal departments and
agencies; and
(B) the feasibility of using private economic
forecasting.

(b) Comptroller General Review and Report.--The Comptroller General
shall review the report under subsection (a), including the basis for
the Secretary's conclusions stated in the report, and shall submit, not
later than March 15, 2007, 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 that review.
SEC. 1007. MODIFICATION OF DATE OF SUBMITTAL OF OMB/CBO REPORT ON
SCORING OF OUTLAYS.

Section 226(a) of title 10, United States Code, is amended by
striking ``January 15 of each year'' and inserting ``April 1 of each
year''.

[[Page 2374]]
120 STAT. 2374

SEC. 1008. BUDGETING FOR ONGOING MILITARY OPERATIONS IN
AFGHANISTAN AND IRAQ.

The President's budget submitted to Congress pursuant to section
1105(a) of title 31, United States Code, for each fiscal year after
fiscal year 2007 shall include--
(1) a request for the appropriation of funds for such fiscal
year for ongoing military operations in Afghanistan and Iraq;
(2) an estimate of all funds expected to be required in that
fiscal year for such operations; and
(3) a detailed justification of the funds requested.

Subtitle B--Policy Relating to Vessels and Shipyards

SEC. 1011. AIRCRAFT CARRIER FORCE STRUCTURE.

(a) Reduction in Minimum Number of Operational Aircraft Carriers
Required by Law.--Section 5062(b) of title 10, United States Code, is
amended by striking ``12'' and inserting ``11''.
(b) Required Certification Before Retirement of U.S.S. John F.
Kennedy.--The Secretary of the Navy may not retire the U.S.S. John F.
Kennedy (CV-67) from operational status unless the Secretary of Defense
first submits to the Committee on Armed Services of the Senate and the
Committee on Armed Services of the House of Representatives the
Secretary's certification that the Secretary has received--
(1) a formal notice from the Secretary of Homeland Security
that the Department of Homeland Security does not desire to
maintain and operate that vessel; and
(2) a formal notice from the North Atlantic Treaty
Organization that the North Atlantic Treaty Organization does
not desire to maintain and operate that vessel.

(c) Conditions on Status of U.S.S. John F. Kennedy if Retired.--Upon
the retirement from operational status of the U.S.S. John F. Kennedy
(CV-67), the Secretary of the Navy--
(1) while the vessel is in the custody and control of the
Navy, shall maintain that vessel in a state of preservation
(including configuration control, dehumidification, cathodic
protection, and maintenance of spares) that would allow for
reactivation of that vessel in the event that the vessel was
needed in response to a national emergency; and
(2) if the vessel is transferred from the custody and
control of the Navy, shall require as a condition of such
transfer that--
(A) if the President declares a national emergency
pursuant to the National Emergencies Act (50 U.S.C. 1601
et seq.), the transferee shall, upon request of the
Secretary of Defense, return the vessel to the United
States; and
(B) in such a case (unless the transferee is
otherwise notified by the Secretary), title to the
vessel shall revert immediately to the United States.
SEC. 1012. SENSE OF CONGRESS ON NAMING THE CVN-78 AIRCRAFT CARRIER
AS THE U.S.S. GERALD R. FORD.

(a) Findings.--Congress makes the following findings:
(1) Gerald R. Ford has served his country with honor and
distinction for the past 64 years, and continues to serve.

[[Page 2375]]
120 STAT. 2375

(2) Gerald R. Ford was commissioned in the Naval Reserve in
1942 and served valiantly at sea on the U.S.S. Monterey (CVL-26)
during World War II, taking part in major operations in the
Pacific, including at Makin Island, Kwajalein, Truk, Saipan, and
the Philippine Sea.
(3) Gerald R. Ford received 9 engagement stars and 2 bronze
stars for his service in the Navy during World War II.
(4) Gerald R. Ford was first elected to the House of
Representatives in 1948.
(5) During 25 years of service in the House of
Representatives, Gerald R. Ford distinguished himself by an
exemplary record for character, decency, and trustworthiness.
(6) Throughout his service in the House of Representatives,
Gerald R. Ford was an ardent proponent of strong national
defense and international leadership by the United States.
(7) From 1965 to 1973, Gerald R. Ford served as minority
leader of the House of Representatives, raising the standard for
bipartisanship in his tireless fight for freedom, hope, and
justice.
(8) In 1973, Gerald R. Ford was appointed by President Nixon
to the office of Vice President of the United States under the
25th Amendment to the Constitution, having been confirmed by
overwhelming majorities in both Houses of Congress.
(9) On August 9, 1974, Gerald R. Ford became the 38th
President of the United States, taking office during one of the
most challenging periods in the history of the United States.
(10) As President from August 9, 1974, to January 20, 1977,
Gerald R. Ford restored the faith of the people of the United
States in the office of the President through his steady
leadership, courage, and ultimate integrity.
(11) As President, Gerald R. Ford helped restore the
prestige of the United States in the world community by working
to achieve peace in the Middle East, preserve detente with the
Soviet Union, and set new limits on the spread of nuclear
weapons.
(12) As President, Gerald R. Ford served as Commander in
Chief of the Armed Forces with great dignity, supporting a
strong Navy and a global military presence for the United States
and honoring the members of the Armed Forces.
(13) Since leaving the office of President, Gerald R. Ford
has been an international ambassador of American goodwill, a
noted scholar and lecturer, a strong supporter of human rights,
and a promoter of higher education.
(14) Gerald R. Ford was awarded the Medal of Freedom and the
Congressional Gold Medal in 1999 in recognition of his
contribution to the Nation.
(15) As President, Gerald R. Ford bore the weight of a
constitutional crisis and guided the Nation on a path of healing
and restored hope, earning forever the enduring respect and
gratitude of the Nation.

(b) Naming of CVN-78 Aircraft Carrier.--It is the sense of Congress
that the nuclear-powered aircraft carrier of the Navy designated as CVN-
78 should be named the U.S.S. Gerald R. Ford.

[[Page 2376]]
120 STAT. 2376

SEC. 1013. TRANSFER OF NAVAL VESSELS TO FOREIGN NATIONS BASED UPON
VESSEL CLASS.

Section 7307(a) of title 10, United States Code, is amended--
(1) by striking ``disposition of that vessel is approved''
and inserting ``disposal of that vessel, or of a vessel of the
class of that vessel, is authorized''; and
(2) by adding at the end the following new sentences: ``In
the case of an authorization by law for the disposal of such a
vessel that names a specific vessel as being authorized for such
disposal, the Secretary of Defense may substitute another vessel
of the same class, if the vessel substituted has virtually
identical capabilities as the named vessel. In the case of an
authorization by law for the disposal of vessels of a specified
class, the Secretary may dispose of vessels of that class
pursuant to that authorization only in the number of such
vessels specified in that law as being authorized for
disposal.''.
SEC. 1014. OVERHAUL, REPAIR, AND MAINTENANCE OF VESSELS IN FOREIGN
SHIPYARDS.

Section 7310(a) of title 10, United States Code, is amended--
(1) by inserting ``or Guam'' in the subsection heading after
``United States''; and
(2) by inserting ``or Guam'' after ``in the United States''.
SEC. 1015. REPORT ON OPTIONS FOR FUTURE LEASE ARRANGEMENT FOR GUAM
SHIPYARD.

(a) Report Required.--Not later than December 15, 2006, the
Secretary of the Navy shall submit to the Committee on Armed Services of
the Senate and the Committee on Armed Service of the House of
Representatives a report describing the options available with respect
to the Guam Shipyard in Santa Rita, Guam.
(b) Contents of Report.--The report required under subsection (a)
shall include the following:
(1) An evaluation of the performance of the entities that,
as of the date of the enactment of this Act, are the lessee and
operators of the Guam Shipyard under the terms of the lease in
effect on the date of the enactment of this Act.
(2) An evaluation of each of the following options with
respect to the Guam Shipyard lease:
(A) Terminating the remaining term of the lease and
issuing a new 25 year lease with the same entity.
(B) Terminating the remaining term of the lease with
respect to the approximately 73 acres within the Guam
Shipyard that are required for mission requirements and
leaving the remaining term of the lease in effect with
respect to the approximately 27 acres within the
Facility that are not required for mission requirements.
(C) Terminating the remaining term of the lease and
negotiating a new use arrangement with a different
lessee or operator. The new use arrangement options
shall include:
(i) Government-owned and government-operated
facility.
(ii) Government-owned and contractor-operated
facility.

[[Page 2377]]
120 STAT. 2377

(iii) Government-leased property for
contractor-owned and contractor-operated facility.

(c) Options for New Use Arrangements.--In evaluating the options
under subsection (b)(2)(C), the Secretary of the Navy shall include an
evaluation of each of the following:
(1) The anticipated future military vessel repair and
workload on Guam in relation to the 2006 Quadrennial Defense
Review, issued on February 6, 2006, pursuant to section 118 of
title 10, United States Code.
(2) The anticipated military vessel repair and workload
attributable to vessels comprising the Maritime Prepositioning
Ship Squadron Three.
(3) The anticipated military vessel repair and workload due
to a change in section 7310 of title 10, United States Code,
that would designate Guam as a United States homeport facility.
(4) The expected workload if the submarine tender the U.S.S.
Frank Cable (AS-40) is decommissioned.
(5) The estimated reacquisition costs of transferred
Government property.
(6) Costs to improve floating dry dock mooring certification
and required nuclear certification for the floating dry dock
designated as AFDB-8 to conduct the following maintenance:
(A) Dry-docking selected restricted availabilities
and mid-term availability for attack submarines.
(B) Dry-docking phased maintenance availabilities
for amphibious vessels, including to amphibious assault
ships, dock landing ships, and amphibious transport dock
ships.
(C) Dry-docking phased maintenance availabilities
for surface combatants, including cruisers, destroyers,
and frigates.
(7) Commercial opportunities for development to expand
commercial ship repair and general industrial services, given
anti-terrorism force protection requirements at the current
facility.
(8) Estimates from three contractors for the maintenance and
repair costs associated with executing a multiship, multioption
contract that would generate a minimum 60,000 manday commitment
for the Department of the Navy and Military Sealift Command
vessels.
(9) A projection of the maintenance and repair costs
associated with executing a minimum 60,000 mandays for the
Department of the Navy and Military Sealift Command vessels as a
Government-owned and Government-operated Navy ship repair
facility.

(d) Input From Contractors.--In evaluating the options under clauses
(ii) and (iii) of subsection (b)(2)(C) for the purposes of paragraphs
(1), (2), and (3) of subsection (c), the Secretary of the Navy shall
seek input from at least three contractors on the viability of
operations based on the projected workload fiscal years 2008 through
2013.
(e) Recommendations.--The Secretary of the Navy shall include in the
report required under subsection (a) the following:
(1) The recommendations of the Secretary with respect to
continuation of the existing Guam Shipyard lease based on
evaluations conducted pursuant to subsection (b)(1).

[[Page 2378]]
120 STAT. 2378

(2) The option under subsection (b)(2) that the Secretary
recommends for fiscal year 2008.

(f) GAO Report.--Not later than March 1, 2007, the Comptroller
General shall submit to the Committee on Armed Services of the Senate
and the Committee on Armed Service of the House of Representatives a
report evaluating the report submitted by the Secretary of the Navy
under subsection (a). The report shall include the option under
subsection (b)(2) that the Secretary recommends for fiscal year 2008.
SEC. 1016. ASSESSMENTS OF NAVAL VESSEL CONSTRUCTION EFFICIENCIES
AND OF EFFECTIVENESS OF SPECIAL
CONTRACTOR INCENTIVES.

(a) Assessment Required.--The Secretary of the Navy shall conduct an
assessment of each of the aspects of naval vessel construction specified
in subsection (b) in order to determine--
(1) what inefficiencies exist in those aspects of naval
vessel construction;
(2) what innovative design and production technologies,
processes, and performance incentives are warranted to alleviate
the inefficiencies so identified; and
(3) what action the Secretary intends to take to facilitate
the adoption by the shipbuilding industry of the technologies,
processes, and performance incentives identified under paragraph
(2).

(b) Aspects to Be Assessed.--Subsection (a) applies with respect to
the following aspects of naval vessel construction:
(1) Program design, engineering, and production engineering.
(2) Organization and operating systems.
(3) Steelwork production.
(4) Ship construction and outfitting.
(5) Combat systems development, integration, and
installation.

(c) Consideration of Prior Assessments.--In making the assessments
required by subsection (a), the Secretary shall take into consideration
the results of--
(1) the study of the cost effectiveness of the ship
construction program of the Navy required by section 1014 of the
Ronald W. Reagan National Defense Authorization Act for Fiscal
Year 2005 (Public Law 108-375; 118 Stat. 2041);
(2) the assessment of the United States naval shipbuilding
industry required by section 254 of the National Defense
Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119
Stat. 3180); and
(3) any prior assessment performed by or on behalf of the
Department of Defense.

(d) Special Contractor Incentives.--In addition to the assessments
under subsection (a), the Secretary shall conduct an assessment of the
effectiveness of the use in naval vessel construction contracts of
special contract incentives for investment by the contractor in
facilities and process improvement projects. Such assessment shall
include the following:
(1) A description of the intent of the use of such
incentives in naval vessel construction contracts.
(2) A description of the process and criteria used by the
Secretary for evaluation of proposed projects to receive such

[[Page 2379]]
120 STAT. 2379

incentives in naval vessel construction contracts and for the
selection among such proposed projects for inclusion of
incentives in such contracts.
(3) For each facility or process improvement project for
which funds were provided in a naval vessel construction
contract during the five-year period ending on the date of the
enactment of this Act (including the facility or process
improvement project contract incentives incorporated in the
Virginia-class submarine construction contract and in the CVN-21
construction contract)--
(A) a description of the facility or process
improvement project proposed by the contractor;
(B) the amount expended (or to be expended) by the
United States for the project under the contract; and
(C) the estimated or actual return on investment for
the amounts referred to in subparagraph (B).
(4) The plans of the Secretary of the Navy to use similar
contract incentives in ongoing and future shipbuilding programs.
(5) Any recommendation by the Secretary for the enactment of
legislation that might increase the effectiveness of, or expand
the use of, such contract incentives.

(e) Report.--Not later than April 1, 2007, the Secretary of the Navy
shall submit to the congressional defense committees a report on--
(1) the Secretary's assessments of naval vessel construction
efficiencies under subsection (a), addressing each of the
matters specified in that subsection; and
(2) the Secretary's assessment of the effectiveness of
special incentives for contractor investment in facilities and
process improvement projects under subsection (d).
SEC. 1017. OBTAINING CARRIAGE BY VESSEL: CRITERION REGARDING
OVERHAUL, REPAIR, AND MAINTENANCE OF
VESSELS IN THE UNITED STATES.

(a) Acquisition Policy.--In order to maintain the national defense
industrial base, the Secretary of Defense shall issue an acquisition
policy that establishes, as a criterion required to be considered in
obtaining carriage by vessel of cargo for the Department of Defense, the
extent to which an offeror of such carriage had overhaul, repair, and
maintenance work for covered vessels of the offeror performed in
shipyards located in the United States.
(b) Covered Vessels.--A vessel is a covered vessel of an offeror
under this section if the vessel is--
(1) owned, operated, or controlled by the offeror; and
(2) qualified to engage in the carriage of cargo in the
coastwise or non-contiguous trade under section 27 of the
Merchant Marine Act, 1920 (46 U.S.C. 883), section 12106 of
title 46, United States Code, and section 2 of the Shipping Act,
1916 (46 U.S.C. App. 802).

(c) Application of Policy.--The acquisition policy shall include
rules providing for application of the policy to covered vessels as
expeditiously as is practicable based on the nature of carriage
obtained, and by no later than June 1, 2007.
(d) Regulations.--
(1) In general.--The Secretary shall prescribe regulations
as necessary to carry out the acquisition policy and submit

[[Page 2380]]
120 STAT. 2380

such regulations to the Committees on Armed Services of the
Senate and the House of Representatives, by not later than June
1, 2007.
(2) Interim regulations.--
(A) In general.--The Secretary may prescribe interim
regulations as necessary to carry out the acquisition
policy. For this purpose, the Secretary is excepted from
compliance with the notice and comment requirements of
section 553 of title 5, United States Code.
(B) Submission to congress.--Upon the issuance of
interim regulations under this paragraph, the Secretary
shall submit to the Committees on Armed Services of the
Senate and the House of Representatives the interim
regulations and a description of the acquisition policy
developed (or being developed) under subsection (a).
(C) Expiration.--All interim regulations prescribed
under the authority of this paragraph that are not
earlier superseded by final regulations shall expire no
later than June 1, 2007.

(e) Annual Report.--The Secretary, acting through the United States
Transportation Command, shall annually submit to the Committees on Armed
Services of the Senate and the House of Representatives a report
regarding overhaul, repair, and maintenance performed on covered vessels
of each offeror of carriage to which the acquisition policy applies.
(f) Definitions.--In this section:
(1) Foreign shipyard.--The term ``foreign shipyard'' means a
shipyard that is not located in the United States.
(2) United states.--The term ``United States'' means--
(A) any State of the United States; and
(B) Guam.
SEC. 1018. RIDING GANG MEMBER REQUIREMENTS.

(a) Requirement for Charters and Contracts.--
(1) In general.--The Secretary of Defense may not award,
renew, extend, or exercise an option to extend any charter of a
vessel documented under chapter 121 of title 46, United States
Code, for the Department of Defense, or any contract for the
carriage of cargo by a vessel documented under that chapter for
the Department of Defense, unless the charter or contract,
respectively, includes provisions that allow riding gang members
to perform work on the vessel during the effective period of the
charter or contract only under terms, conditions, restrictions,
and requirements that, except as provided in paragraphs (2) and
(3), are substantially the same as those that apply under
section 8106 of title 46, United States Code, as in effect
immediately before the enactment of this Act, with respect to a
vessel referred to in that section.
(2) Limitation.--For purposes of paragraph (1) of this
subsection, subsections (a)(1)(A)(ii), (c), and (d) of section
8106 of title 46, United States Code, shall not apply with
respect to a charter or contract referred to in paragraph (1).
(3) Merchant mariner's document required.--The Secretary of
Defense shall include in the provisions required under paragraph
(1) a requirement that each riding gang member

[[Page 2381]]
120 STAT. 2381

who performs work on the vessel must hold a merchant mariner's
document issued under chapter 73 of title 46, United States
Code.
(4) Riding gang member defined.--In this subsection the term
``riding gang member'' has the meaning that term has in section
8106 of title 46, United States Code, as in effect immediately
before the enactment of this Act.

(b) Exemptions by Secretary of Defense.--
(1) In general.--The NOTE: Regulations. Secretary of
Defense may issue regulations that exempt from the charter or
contract provisions required under subsection (a) any individual
who is on a vessel for purposes other than engaging in the
operation or maintenance of the vessel, including an individual
who is--
(A) one of the personnel who accompany, supervise,
guard, and maintain unit equipment aboard a ship,
commonly referred to as supercargo personnel;
(B) one of the force protection personnel of the
vessel;
(C) a specialized repair technician; or
(D) otherwise required by the Secretary of Defense
to be aboard the vessel.
(2) Background check.--Such regulations shall include a
requirement that any individual who is exempt under the
regulations must pass a background check before going aboard the
vessel, unless the individual holds a merchant mariner's
document issued under chapter 73 of title 46, United States
Code.
(3) Exempted individual not treated as in addition to the
crew.--An individual exempted under paragraph (1) shall not be
counted as an individual in addition to the crew for the
purposes of section 3304 of title 46, United States Code.
SEC. 1019. AUTHORITY TO TRANSFER SS ARTHUR M. HUDDELL TO THE
GOVERNMENT OF GREECE.

(a) Authority to Transfer.--The President is authorized to transfer
the ex-Liberty ship SS Arthur M. Huddell to the Government of Greece in
accordance with such terms and conditions as the President may
determine.
(b) Additional Equipment.--The President is authorized to convey
additional equipment from other obsolete vessels of the National Defense
Reserve Fleet to assist the Government of Greece in using the vessel
referred to in subsection (a) as a museum exhibit.
(c) Repair and Refurbishment in United States Shipyard.--To the
maximum extent practicable, the President shall require, as a condition
of the transfer of the vessel referred to in subsection (a), that the
Government of Greece have such repair or refurbishment of the vessel as
is needed performed at a shipyard located in the United States.

[[Page 2382]]
120 STAT. 2382

Subtitle C--Counter-Drug Activities

SEC. 1021. EXTENSION OF AUTHORITY OF DEPARTMENT OF DEFENSE TO
PROVIDE ADDITIONAL SUPPORT FOR
COUNTERDRUG ACTIVITIES OF OTHER
GOVERNMENTAL AGENCIES.

Section 1004(a) of the National Defense Authorization Act for Fiscal
Year 1991 (10 U.S.C. 374 note) is amended by striking ``through 2006''
and inserting ``through 2011''.
SEC. 1022. EXTENSION AND EXPANSION OF DEPARTMENT OF DEFENSE
AUTHORITY TO PROVIDE SUPPORT FOR
COUNTER-DRUG ACTIVITIES OF CERTAIN
FOREIGN GOVERNMENTS.

(a) Extension of Authority.--Paragraph (2) of subsection (a) of
section 1033 of the National Defense Authorization Act for Fiscal Year
1998 (Public Law 105-85; 111 Stat. 1881), as amended by section 1021 of
the National Defense Authorization Act for Fiscal Year 2004 (Public Law
108-136: 117 Stat. 1593), is amended by striking ``September 30, 2006''
and inserting ``September 30, 2008''.
(b) Additional Governments Eligible To Receive Support.--Subsection
(b) of such section is amended by adding at the end the following new
paragraphs:
``(10) The Government of Azerbaijan.
``(11) The Government of Kazakhstan.
``(12) The Government of Kyrgyzstan.
``(13) The Government of Armenia.
``(14) The Government of Guatemala.
``(15) The Government of Belize.
``(16) The Government of Panama.''.

(c) Types of Support.--Subsection (c) of such section is amended--
(1) in paragraph (2), by inserting ``, vehicles, and,
subject to section 484(a) of the Foreign Assistance Act of 1961
(22 U.S.C. 2291c(a)), aircraft'' after ``patrol boats''; and
(2) by adding at the end the following new paragraphs:
``(4) The transfer of detection, interception, monitoring,
and testing equipment.
``(5) For the Government of Afghanistan only, individual and
crew-served weapons of 50 caliber or less and ammunition for
such weapons for counter-narcotics security forces.''.

(d) Maximum Annual Amount of Support.--Subsection (e)(2) of such
section is amended--
(1) by striking ``or $40,000,000'' and inserting
``$40,000,000''; and
(2) by inserting before the period at the end the following:
``, or $60,000,000 during either of the fiscal years 2007 and
2008''.
SEC. 1023. EXTENSION OF AUTHORITY TO SUPPORT UNIFIED COUNTERDRUG
AND COUNTERTERRORISM CAMPAIGN IN
COLOMBIA.

Section 1021 of the Ronald W. Reagan National Defense Authorization
Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2042) is
amended--
(1) in subsection (a)(1), by striking ``and 2006'' and
inserting ``through 2008''; and

[[Page 2383]]
120 STAT. 2383

(2) in subsection (c), by striking ``and 2006'' and
inserting ``through 2008''.
SEC. 1024. CONTINUATION OF REPORTING REQUIREMENT REGARDING
DEPARTMENT OF DEFENSE EXPENDITURES TO
SUPPORT FOREIGN COUNTERDRUG ACTIVITIES.

(a) Two-Year Extension of Reporting Requirement.--Section 1022 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-255),
as amended by section 1022 of the National Defense Authorization Act for
Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1215) and section 1021
of the National Defense Authorization Act for Fiscal Year 2006 (Public
Law 109-163; 119 Stat. 3426), is further amended by striking ``Not later
than April 15, 2006,'' and inserting ``(a) Reports Required.--Not later
than April 15, 2006, February 15, 2007, and February 15, 2008,''.
(b) Additional Information to Be Included.--Such section is further
amended--
(1) by designating the second sentence as subsection (b) and
striking ``The report'' and inserting ``Information to Be
Provided.--Each report under this section''; and
(2) in paragraph (2), by inserting before the period at the
end the following: ``and the amount of funds provided for each
type of counterdrug activity assisted''.

(c) Form and Submission of Reports.--Such section is further
amended--
(1) in subsection (a), as designated by subsection (a) of
this section, by striking ``the congressional defense
committees'' and inserting ``the congressional committees
specified in subsection (d)''; and
(2) by adding at the end the following new subsections:

``(c) Form of Reports.--Each report under this section shall be
submitted in both classified and unclassified form.
``(d) Specified Committees.--The congressional committees specified
in this subsection are the following:
``(1) The Committee on Armed Services, the Committee on
Foreign Relations, and the Committee on Appropriations of the
Senate.
``(2) The Committee on Armed Services, the Committee on
International Relations, and the Committee on Appropriations of
the House of Representatives.''.
SEC. 1025. REPORT ON INTERAGENCY COUNTER-NARCOTICS PLAN FOR
AFGHANISTAN AND SOUTH AND CENTRAL ASIAN
REGIONS.

(a) Report Required.--Not later than December 31, 2006, the
Secretary of Defense shall submit to the congressional defense
committees a report updating the interagency counter-narcotics
implementation plan for Afghanistan and the South and Central Asian
regions, including Turkmenistan, Uzbekistan, Tajikistan, Kyrgyzstan,
Kazakhstan, Iran, Armenia, Azerbaijan, Pakistan, India, and China.
(b) Consultation.--The report under this section shall be prepared
in consultation with the Secretary of State, the Administrator of the
Agency for International Development, and the Director of the Drug
Enforcement Administration.

[[Page 2384]]
120 STAT. 2384

(c) Matters to Be Included.--The report shall include the following
for each foreign government covered by the report:
(1) A consideration of what activities should be reallocated
among the United States and the foreign government based on the
capabilities of each department and agency involved.
(2) Any measures necessary to clarify the legal authority
required to complete the mission.
(3) The measures necessary for the United States to
successfully complete its counter-narcotics efforts in
Afghanistan and the South and Central Asian regions, including
an assessment of whether sufficient personnel and other
resources, including infrastructure and development initiatives,
are being made available by the United States and the foreign
government.
(4) Current and proposed United States funding to support
counter-narcotics activities of the foreign government.
SEC. 1026. REPORT ON UNITED STATES SUPPORT FOR OPERATION BAHAMAS,
TURKS & CAICOS.

(a) Findings.--Congress makes the following findings:
(1) In 1982 the United States Government created Operation
Bahamas, Turks & Caicos (OPBAT) to counter the smuggling of
cocaine into the United States.
(2) According to the Drug Enforcement Agency, an estimated
80 percent of the cocaine entering the United States in the
1980s came through the Bahamas, whereas, according to the Office
of National Drug Control Policy, only an estimated 10 percent
comes through the Bahamas today.
(3) According to the Drug Enforcement Agency, more than
80,000 kilograms of cocaine and nearly 700,000 pounds of
marijuana have been seized in Operation Bahamas, Turks & Caicos
since 1986, with a combined street value of approximately two
billion dollars.
(4) The Army has provided military airlift to law
enforcement officials under Operation Bahamas, Turks & Caicos to
create an effective, reliable, and immediate response capability
for drug interdiction. This support is largely responsible for
the decline in cocaine shipments to the United States through
the Bahamas.
(5) The Bahamas is an island nation composed of
approximately 700 islands and keys, which makes aviation assets
the best and most efficient method of transporting law
enforcement agents and interdicting smugglers.
(6) It is in the interests of the United States to maintain
the results of the successful Operation Bahamas, Turks & Caicos
program and prevent drug smugglers from rebuilding their
operations through the Bahamas.

(b) Report on United States Government Support for OPBAT.--
(1) Report on decision to withdraw.--Not later than 30 days
before implementing a decision to withdraw Department of Defense
helicopters from Operation Bahamas, Turks & Caicos, the
Secretary of Defense shall submit to the Congress a report
outlining the plan for the coordination of the Operation
Bahamas, Turks & Caicos mission, at the same level of
effectiveness, using other United States Government assets.

[[Page 2385]]
120 STAT. 2385

(2) Consultation.--The Secretary of Defense shall consult
with the Secretary of State, the Attorney General, and the
Secretary of Homeland Security, and with other appropriate
officials of the United States Government, in preparing the
report under paragraph (1).
(3) Elements.--The report under paragraph (1) on the
withdrawal of equipment referred to in that paragraph shall
include the following:
(A) An explanation of the military justification for
the withdrawal of the equipment.
(B) An assessment of the availability of other
options (including other Government helicopters) to
provide the capability being provided by the equipment
to be withdrawn.
(C) An explanation of how each option specified
under subparagraph (B) will provide the capability
currently provided by the equipment to be withdrawn.
(D) An assessment of the potential use of unmanned
aerial vehicles in Operation Bahamas, Turks & Caicos,
including the capabilities of such vehicles and any
advantages or disadvantages associated with the use of
such vehicles in that operation, and a recommendation on
whether or not to deploy such vehicles in that
operation.

Subtitle D--Force Structure and Defense Policy Matters

SEC. 1031. IMPROVEMENTS TO QUADRENNIAL DEFENSE REVIEW.

(a) Findings.--Congress finds that the comprehensive examination of
the defense program and policies of the United States that is undertaken
by the Security Defense every four years pursuant to section 118 of
title 10, United States Code, known as the Quadrennial Defense Review,
is--
(1) vital in laying out the strategic military planning and
threat objectives of the Department of Defense; and
(2) critical to identifying the correct mix of military
planning assumptions, defense capabilities, and strategic
focuses for the Armed Forces.

(b) Sense of Congress.--It is the sense of Congress that the
Quadrennial Defense Review is intended to provide more than an overview
of global threats and the general strategic orientation of the
Department of Defense.
(c) Conduct of Review.--Subsection (b) of section 118 of title 10,
United States Code, is amended--
(1) by striking ``and'' at the end of paragraph (2);
(2) by striking the period at the end of paragraph (3) and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(4) to make recommendations that are not constrained to
comply with the budget submitted to Congress by the President
pursuant to section 1105 of title 31.''.

(d) Additional Elements in Report to Congress.--Subsection (d) of
such section is amended--
(1) in paragraph (1), by inserting ``, the strategic
planning guidance,'' after ``United States'';

[[Page 2386]]
120 STAT. 2386

(2) by redesignating paragraphs (9) through (15) as
paragraphs (10), (11), (12), (13), (14), (15), and (17),
respectively;
(3) by inserting after paragraph (8) the following new
paragraph (9):
``(9) The specific capabilities, including the general
number and type of specific military platforms, needed to
achieve the strategic and warfighting objectives identified in
the review.''; and
(4) by inserting after paragraph (15), as redesignated by
paragraph (2), the following new paragraph:
``(16) The homeland defense and support to civil authority
missions of the active and reserve components, including the
organization and capabilities required for the active and
reserve components to discharge each such mission.''.

(e) CJCS Review.--Subsection (e)(1) of such section is amended by
inserting before the period at the end the following: ``and a
description of the capabilities needed to address such risk''.
(f) Independent Assessment.--Such section is further amended by
adding at the end the following new subsection:
``(f) Independent Panel Assessment.--(1) NOTE: Deadlines. Not
later than six months before the date on which the report on a
Quadrennial Defense Review is to be submitted under subsection (d), the
Secretary of Defense shall establish a panel to conduct an assessment of
the quadrennial defense review.

``(2) Not later than three months after the date on which the report
on a quadrennial defense review is submitted under subsection (d) to the
congressional committees named in that subsection, the panel appointed
under paragraph (1) shall submit to those committees an assessment of
the review, including the recommendations of the review, the stated and
implied assumptions incorporated in the review, and the vulnerabilities
of the strategy and force structure underlying the review. The
assessment of the panel shall include analyses of the trends,
asymmetries, and concepts of operations that characterize the military
balance with potential adversaries, focusing on the strategic approaches
of possible opposing forces.''.
SEC. 1032. QUARTERLY REPORTS ON IMPLEMENTATION OF 2006 QUADRENNIAL
DEFENSE REVIEW REPORT.

(a) Reports Required.--Not later than 30 days after the end of each
fiscal-year quarter, 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 recommendations described in the Department of Defense 2006
Quadrennial Defense Review Report.
(b) Contents of Reports.--Each quarterly report under subsection (a)
shall, at a minimum--
(1) describe the processes and procedures established by the
Secretary of Defense to examine the various recommendations
referred to in subsection (a);
(2) discuss implementation plans and strategies for each
area highlighted by the Quadrennial Defense Review Report;
(3) provide relevant information about the status of such
implementation; and
(4) indicate changes in the Secretary's assessment of the
defense strategies or capabilities required since the
publication of the 2006 Quadrennial Defense Review Report.

[[Page 2387]]
120 STAT. 2387

(c) Initial Report.--The first report under subsection (a) shall be
submitted not later than January 31, 2007.
(d) Expiration of Requirement.--The reporting requirement in
subsection (a) shall terminate upon the earlier of the following:
(1) The date of the publication of the next Quadrennial
Defense Review Report after the date of the enactment of this
Act pursuant to section 118 of title 10, United States Code.
(2) The date of transmission of a written notification by
the Secretary of Defense to the Committee on Armed Services of
the Senate and the Committee on Armed Services of the House of
Representatives that implementation of the recommendations of
the 2006 Quadrennial Defense Review is complete.
SEC. 1033. REPORT ON FEASIBILITY OF ESTABLISHING A REGIONAL
COMBATANT COMMAND FOR AFRICA.

(a) Report Required.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Defense shall submit to the
Committee on Armed Services of the Senate and the Committee on Armed
Services of the House of Representatives a report on the establishment
under chapter 6 of title 10, United States Code, of a new unified
combatant command with a geographic area of responsibility consisting of
the African continent and adjacent waters.
(b) Content.--The report under subsection (a) shall include--
(1) a study on the feasibility and advisability of
establishing a combatant command for Africa as described in
subsection (a);
(2) an assessment of the benefits and problems associated
with establishing such a command; and
(3) an estimate of the costs, time, and resources needed to
establish such a command.
SEC. 1034. DETERMINATION OF DEPARTMENT OF DEFENSE INTRATHEATER AND
INTERTHEATER AIRLIFT REQUIREMENTS AND
SEALIFT MOBILITY REQUIREMENTS.

(a) Determination of Requirements.--The Secretary of Defense, as
part of the 2006 Mobility Capabilities Study, shall determine Department
of Defense mobility requirements as follows:
(1) The Secretary shall determine intratheater and
intertheater airlift mobility requirements (stated in terms of
million ton miles per day) and sealift mobility requirements
(stated in terms of tons) necessary to support warfighting
objectives of the commanders of the combatant commands for each
scenario that was modeled in the 2005 Mobility Capabilities
Study and each scenario that is modeled in the 2006 Mobility
Capabilities Study.
(2) The Secretary shall determine intratheater and
intertheater airlift mobility requirements (stated in terms of
million ton miles per day) and sealift mobility requirements
(stated in terms of tons) for executing the National Military
Strategy with a low acceptable level of risk, with a medium
acceptable level of risk, and with a high acceptable level of
risk, for each of the following:
(A) Two overlapping ``swift defeat'' campaigns.
(B) The Global War on Terrorism.
(C) Baseline security posture operations.

[[Page 2388]]
120 STAT. 2388

(D) Homeland defense and civil support operations.
(E) Special operations missions.
(F) Global long-range strike missions.
(G) Strategic nuclear missions.

(b) Report.--Not later than February 1, 2007, the Secretary of
Defense shall submit to the congressional defense committees a report
providing the mobility requirements determined pursuant to subsection
(a). As part of the report, the Secretary shall--
(1) set forth each mobility requirement specified in
paragraph (1) or (2) of subsection (a); and
(2) compare those defined mobility requirements to the
Department of Defense's mobility capability program of record
for intertheater and intratheater airlift and sealift.

(c) Mobility Capabilities Studies.--For purposes of this section:
(1) 2006 mobility capabilities study.--The term ``2006
Mobility Capabilities Study'' means the studies conducted by the
Secretary of Defense and the Joint Staff during 2006 as a
follow-on to the 2005 Mobility Capabilities Study.
(2) 2005 mobility capabilities study.--The term ``2005
Mobility Capabilities Study'' means the comprehensive Mobility
Capabilities Study completed in December 2005 and conducted
through the Office of Program Analysis and Evaluation of the
Department of Defense to assess mobility needs for all aspects
of the National Defense Strategy.
SEC. 1035. PRESIDENTIAL REPORT ON IMPROVING INTERAGENCY SUPPORT
FOR UNITED STATES 21ST CENTURY NATIONAL
SECURITY MISSIONS AND INTERAGENCY
OPERATIONS IN SUPPORT OF STABILITY,
SECURITY, TRANSITION, AND RECONSTRUCTION
OPERATIONS.

(a) Report Required.--Not later than April 1, 2007, the President
shall submit to Congress a report on building interagency capacity and
enhancing the integration of civilian capabilities of the executive
branch with the capabilities of the Armed Forces to enhance the
achievement of United States national security goals and objectives.
(b) Report Elements.--The report under subsection (a) shall include
the following:
(1) An assessment of the capacity and capabilities required
within the civilian agencies of the United States Government to
achieve the full range of United States national security goals
and objectives, to defend United States national security
interests, and, in particular, to coordinate with the Armed
Forces where deployed, including capacity and capabilities in at
least the following areas:
(A) Organizations and organizational structures,
including a description of the roles, responsibilities,
and authorities;
(B) Planning and assessment capabilities;
(C) Information sharing policies, practices, and
systems;
(D) Leadership issues, including command and control
of forces and personnel in the field;

[[Page 2389]]
120 STAT. 2389

(E) Personnel policies and systems, including those
pertaining to recruiting, retention, training,
education, promotion, awards, employment, deployment,
and retirement; and
(F) Acquisition authorities, including identifying
any economies of scale that could be gained by improved
coordination of acquisition activities and replicating
``best practices'', as appropriate.
(2) The criteria and considerations used to evaluate
progress in each of the areas specified in paragraph (1) towards
building interagency capacity and capabilities and integrating
such capabilities across the United States Government to enhance
the achievement of United States national security goals and
objectives.
(3) Recommendations for specific legislative proposals that
would build interagency capacity by--
(A) addressing statutory or budgetary impediments,
if any, to the improvement of interagency cooperation
and coordination in order to carry out the full range of
national security missions (including stability,
security, transition, and reconstruction operations);
and
(B) providing means to enhance the integration of
civilian capabilities with the capabilities of deployed
elements of the Armed Forces for each of those national
security missions.

(c) Additional Report Elements.--The report under subsection (a)
shall include a portion dedicated to efforts to address the near-term
need to strengthen interagency operations in support of stability,
security, transition, and reconstruction operations, including a plan to
establish interagency operating procedures for the departments and
agencies of the United States Government for the planning and conduct of
stability, security, transition, and reconstruction operations. Such
plan shall include the following:
(1) A delineation of the roles, responsibilities, and
authorities of the departments and agencies of the United States
Government for stability, security, transition, and
reconstruction operations.
(2) A description of operational processes for setting
policy direction for stability, security, transition, and
reconstruction operations in order to guide--
(A) operational planning and funding decisions of
those departments and agencies;
(B) integration of civilian and military planning
efforts;
(C) integration of programs and activities into an
implementation plan;
(D) oversight of policy implementation;
(E) provision of guidance to field-level personnel
on program direction and priorities; and
(F) monitoring of field implementation of assistance
programs.
(3) A description of available capabilities and resources of
each department and agency of the United States Government that
could be used in support of stability, security, transition, and
reconstruction operations and identification of additional
resources needed to support the conduct of such operations.

[[Page 2390]]
120 STAT. 2390

(4) A description of how the capabilities and resources of
the departments and agencies of the United States Government
will be coordinated to support stability, security, transition,
and reconstruction operations.
(5) A description of existing, or planned, protocols between
departments and agencies of the United States Government on the
utilization and allocation of assets in field operations that
support stability, security, transition, and reconstruction
operations.
(6) Recommendations for improving interagency training,
education, and simulation exercises in order to adequately
prepare civilian and military personnel in the departments and
agencies of the United States Government to perform stability,
security, transition, and reconstruction operations.
(7) Guidance for the implementation of the plan.

(d) Form of Report.--To the maximum extent practicable, the report
shall be unclassified, with a classified annex, if necessary.

Subtitle E--Reports

SEC. 1041. ADDITIONAL ELEMENT IN ANNUAL REPORT ON CHEMICAL AND
BIOLOGICAL WARFARE DEFENSE.

Section 1703(b) of the National Defense Authorization Act for Fiscal
Year 1994 (50 U.S.C. 1523(b)) is amended by adding at the end the
following new paragraph:
``(10) A description of the coordination and integration of
the program of the Defense Advanced Research Projects Agency
(DARPA) on basic and applied research and advanced technology
development on chemical and biological warfare defense
technologies and systems under section 1701(c)(2) with the
overall program of the Department of Defense on chemical and
biological warfare defense, including--
``(A) an assessment of the degree to which the DARPA
program is coordinated and integrated with, and supports
the objectives and requirements of, the overall program
of the Department of Defense; and
``(B) the means by which the Department determines
the level of such coordination and support.''.
SEC. 1042. REPORT ON BIODEFENSE HUMAN CAPITAL REQUIREMENTS IN
SUPPORT OF BIOSAFETY LABORATORIES.

(a) Study Required.--The Secretary of Defense shall conduct a study
to determine the Department of Defense human capital requirements for
pending capital programs to construct biodefense laboratories at
Biosafety Level (BSL) 3 and Biosafety Level 4 or to expand current
biodefense laboratories to such biosafety levels.
(b) Elements.--In conducting the study, the Secretary shall address
the following:
(1) The number of trained research and support staff, by
discipline and qualification level, including researchers,
laboratory technicians, animal handlers, facility managers,
facility or equipment maintainers, biosecurity personnel
(including biosafety, physical, and electronic security
personnel), and other safety personnel required--
(A) for existing biodefense laboratories at
Biosafety Level 3 and Biosafety Level 4; and

[[Page 2391]]
120 STAT. 2391

(B) to manage biodefense research efforts to combat
bioterrorism at the biodefense laboratories described in
subsection (a).
(2) Plans to recruit and retain skilled personnel, in
numbers sufficient to meet requirements described in paragraph
(1)(B).
(3) A forecast of the training required to provide the
personnel described by paragraph (1)(B) in time to meet the
scheduled openings of the biodefense laboratories described in
subsection (a), including--
(A) the types of training required;
(B) the length of training required; and
(C) the training sources.

(c) Report.--Not later than 180 days after the date of the enactment
of this Act, the Secretary shall submit to the Committees on Armed
Services of the Senate and House of Representatives a report setting
forth the results of the study conducted under this section.
SEC. 1043. REPORT ON TECHNOLOGIES FOR NEUTRALIZING OR DEFEATING
THREATS TO MILITARY ROTARY-WING AIRCRAFT
FROM PORTABLE AIR DEFENSE SYSTEMS AND
ROCKET-PROPELLED GRENADES.

(a) Report Required.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Defense shall submit to the
congressional defense committees a report on technologies for
neutralizing or defeating threats to military rotary-wing aircraft posed
by portable air defense systems and rocket-propelled grenades that are
being researched, developed, employed, or considered by the United
States Government or the North Atlantic Treaty Organization.
(b) Content.--The report under subsection (a) shall include the
following:
(1) An assessment of the expected value and utility of the
technologies referred to in subsection (a), particularly with
respect to--
(A) the saving of lives;
(B) the ability to reduce the vulnerability of
aircraft; and
(C) the enhancement of the ability of aircraft and
their crews to accomplish assigned missions.
(2) An assessment of the potential costs of developing and
deploying such technologies.
(3) A description of efforts undertaken to develop such
technologies, including--
(A) nonlethal countermeasures;
(B) lasers and other systems designed to dazzle,
impede, or obscure threatening weapons or their users;
(C) direct fire response systems;
(D) directed energy weapons; and
(E) passive and active systems.
(4) A description of any impediment to the development of
such technologies, such as legal restrictions under the law of
war, treaty restrictions under the Protocol on Blinding Lasers,
and political obstacles such as the reluctance of other allied
countries to pursue such technologies.

[[Page 2392]]
120 STAT. 2392

SEC. 1044. REPORTS ON EXPANDED USE OF UNMANNED AERIAL VEHICLES IN
THE NATIONAL AIRSPACE SYSTEM.

(a) Findings.--Congress makes the following findings:
(1) Unmanned aerial vehicles (UAVs) serve Department of
Defense intelligence, surveillance, reconnaissance, and combat
missions.
(2) Operational reliability of unmanned aerial systems
continues to improve, and development and fielding of so-called
sense-and-avoid technology should continue in order to provide
unmanned aerial systems with an appropriate level of safety.
(3) Unmanned aerial vehicles have the potential to support
the Nation's homeland defense mission, border security mission,
and natural disaster recovery efforts.

(b) Reports.--
(1) DOD report.--Not later than one year after the date of
the enactment of this Act, the Secretary of Defense shall submit
to the relevant congressional committees a report on the actions
of the Department of Defense to develop standards for the
testing and operation of unmanned aerial vehicles in the
National Airspace System.
(2) FAA report.--Not later than one year after the date of
the enactment of this Act, the Administrator of the Federal
Aviation Administration shall submit to the relevant
congressional committees a report on progress in developing a
policy for testing and a plan for achieving wider access by
unmanned aerial vehicles that are appropriately equipped to
operate in the National Airspace System
(3) Relevant congressional committee.--For the purposes of
this subsection, the relevant congressional committees are the
following:
(A) The Committee on Armed Services, the Committee
on Commerce, the Committee on Science and
Transportation, and the Committee on Homeland Security
and Governmental Affairs of the Senate.
(B) The Committee on Armed Services, the Committee
on Energy and Commerce, the Committee on Government
Reform, and the Committee on Transportation and
Infrastructure of the House of Representatives.
SEC. 1045. REPORT ON INCENTIVES TO ENCOURAGE CERTAIN MEMBERS AND
FORMER MEMBERS OF THE ARMED FORCES TO
SERVE IN THE BUREAU OF CUSTOMS AND
BORDER PROTECTION.

(a) Report Required.--Not later than 60 days after the date of the
enactment of this Act, the Secretary of Homeland Security and the
Secretary of Defense shall jointly submit to the congressional
committees specified in subsection (e) a report assessing the
desirability and feasibility of offering incentives to members and
former members of the Armed Forces described in subsection (b) for the
purpose of encouraging such members to serve in the Bureau of Customs
and Border Protection of the Department of Homeland Security.
(b) Covered Members and Former Members.--The members and former
members of the Armed Forces to be covered by the report under subsection
(a) are the following:
(1) Members of the reserve components of the Armed Forces.

[[Page 2393]]
120 STAT. 2393

(2) Former members of the Armed Forces within two years of
separation from service in the Armed Forces.

(c) Requirements and Limitations.--
(1) Nature of incentives.--In considering incentives for
purposes of the report required by subsection (a), the
Secretaries shall consider such incentives as the Secretaries
jointly consider appropriate, whether or not such incentives are
monetary or otherwise and whether or not such incentives are
authorized by current law or regulations.
(2) Targeting of incentives.--In assessing any incentive for
purposes of the report, the Secretaries shall give particular
attention to the utility of such incentive in--
(A) encouraging service in the Bureau of Customs and
Border Protection after service in the Armed Forces by
members and former members of the Armed Forces described
in subsection (b) who provided border patrol or border
security assistance to the Bureau as part of their
duties as members of the Armed Forces; and
(B) leveraging military training and experience by
accelerating training, or allowing credit to be applied
to related areas of training, required for service with
the Bureau of Customs and Border Protection.
(3) Payment.--In assessing incentives for purposes of the
report, the Secretaries shall assume that any costs of such
incentives shall be borne by the Department of Homeland
Security.

(d) Elements.--The report required by subsection (a) shall include
the following:
(1) A description of various monetary and non-monetary
incentives considered for purposes of the report.
(2) An assessment of the desirability and feasibility of
utilizing any such incentive for the purpose specified in
subsection (a), including an assessment of the particular
utility of such incentive in encouraging service in the Bureau
of Customs and Border Protection after service in the Armed
Forces by members and former members of the Armed Forces
described in subsection (c)(2)(A).
(3) Any other matters that the Secretaries jointly consider
appropriate.

(e) Submission of Report.--The report required by subsection (a)
shall be submitted to--
(1) the Committee on Armed Services, the Committee on
Homeland Security and Governmental Affairs, and the Committee on
Appropriations of the Senate; and
(2) the Committee on Armed Services, the Committee on
Homeland Security, and the Committee on Appropriations of the
House of Representatives.
SEC. 1046. REPEAL OF CERTAIN REPORT REQUIREMENTS.

(a) Annual Report on Aviation Career Incentive Pay.--Section 301a of
title 37, United States Code, is amended by striking subsection (f).
(b) Annual Report on Effects of Certain Initiatives on Recruitment
and Retention.--
(1) Repeal.--Section 1015 of title 37, United States Code,
is repealed.

[[Page 2394]]
120 STAT. 2394

(2) Clerical amendment.--The table of sections at the
beginning of chapter 19 of such title is amended by striking the
item relating to section 1015.

(c) Secretary of Defense Recommendation on Need for Defense Impact
Review Process.--Section 1041 of the National Defense Authorization Act
for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1217) is repealed.
(d) Report on Pilot Program To Enhance Military Recruiting by
Improving Military Awareness of School Counselors and Educators.--
Section 564 of the Floyd D. Spence National Defense Authorization Act
for Fiscal Year 2001 (as enacted into law by Public Law 106-398 (114
Stat. 1654A-133; 10 U.S.C. 503 note)) is amended by striking subsection
(c).
(e) Annual Report on Medical Informatics.--Section 723(d) of the
National Defense Authorization Act for Fiscal Year 2000 (Public Law 106-
65; 10 U.S.C. 1071 note) is amended--
(1) by striking paragraph (5); and
(2) by redesignating paragraphs (6) and (7) as paragraphs
(5) and (6), respectively.
SEC. 1047. REQUIREMENT FOR IDENTIFICATION OF RECENTLY ENACTED
RECURRING REPORTING REQUIREMENTS
APPLICABLE TO THE DEPARTMENT OF DEFENSE.

(a) Identification and Submittal to Congressional Committees.--
(1) In general.--Not NOTE: Deadline. later than March 1,
2007, the Secretary of Defense shall submit to the Committee on
Armed Services of the Senate and the Committee on Armed Services
of the House of Representatives a listing of each provision of
law specified in paragraph (2).
(2) Covered provisions of law.--Paragraph (1) applies with
respect to any provision of law enacted on or after November 24,
2003 (the date of the enactment of the National Defense
Authorization Act for Fiscal Year 2004 (Public Law 108-136)),
and before February 1, 2007, that requires the submission by the
Secretary of Defense or any other official of the Department of
Defense of annual, semiannual, or other periodic reports to one
or more of the congressional defense committees.

(b) Additional Matter To Be Submitted.--The Secretary of Defense
shall include with the listing submitted under subsection (a) the
following:
(1) With respect to each provision of law covered by that
subsection, a description of the report requirement under that
provision.
(2) For each such report requirement--
(A) an assessment by the Secretary--
(i) of the burden imposed on the Department of
Defense by the preparation of the report; and
(ii) of the utility of such report from the
perspective of the Department of Defense; and
(B) a recommendation on the advisability of
repealing or modifying the requirement for the submittal
of such report.

(c) Definition.--In this section, the term ``report'' has the
meaning given that term in section 480(c) of title 10, United States
Code.

[[Page 2395]]
120 STAT. 2395

Subtitle F--Miscellaneous Authorities and Limitations on Availability
and Use of Funds

SEC. 1051. ACCEPTANCE AND RETENTION OF REIMBURSEMENT FROM NON-
FEDERAL SOURCES TO DEFRAY DEPARTMENT OF
DEFENSE COSTS OF CONFERENCES.

(a) In General.--Subchapter II of chapter 134 of title 10, United
States Code, is amended by adding at the end the following new section:

``Sec. 2262. Department of Defense conferences: collection of fees to
cover Department of Defense costs

``(a) Authority to Collect Fees.--(1) The Secretary of Defense may
collect fees from any individual or commercial participant in a
conference, seminar, exhibition, symposium, or similar meeting conducted
by the Department of Defense (in this section referred to collectively
as a `conference').
``(2) The Secretary may provide for the collection of fees under
this section directly or by contract. The fees may be collected in
advance of a conference.
``(b) Use of Collected Fees.--Amounts collected under subsection (a)
with respect to a conference shall be credited to the appropriation or
account from which the costs of the conference are paid and shall be
available to pay the costs of the Department of Defense with respect to
the conference or to reimburse the Department for costs incurred with
respect to the conference.
``(c) Treatment of Excess Amounts.--In the event the total amount of
fees collected under subsection (a) with respect to a conference exceeds
the actual costs of the Department of Defense with respect to the
conference, the amount of such excess shall be deposited into the
Treasury as miscellaneous receipts.
``(d) Annual Reports.--(1) Not later than 45 days after the
President submits to Congress the budget for a fiscal year under section
1105 of title 31, the Secretary of Defense shall submit to the
congressional defense committees a budget justification document
summarizing the use of the fee-collection authority provided by this
section.
``(2) Each report shall include the following:
``(A) A list of all conferences conducted during the
preceding two calendar years for which fees were collected under
this section.
``(B) For each conference included on the list under
subparagraph (A):
``(i) The estimated costs of the Department for the
conference.
``(ii) The actual costs of the Department for the
conference, including a separate statement of the amount
of any conference coordinator fees associated with the
conference.
``(iii) The amount of fees collected under this
section for the conference.

[[Page 2396]]
120 STAT. 2396

``(C) An estimate of the number of conferences to be
conducted during the calendar year in which the report is
submitted for which the Department will collect fees under this
section.''.

(b) Clerical Amendment.--The table of sections at the beginning of
subchapter II of chapter 134 of such title is amended by adding at the
end the following new item:

``2262. Department of Defense conferences: collection of fees to cover
Department of Defense costs.''.

SEC. 1052. INCREASED FLEXIBILITY IN USE OF FUNDS FOR JOINT STAFF
EXERCISES.

(a) In General.--Amounts available to the Chairman of the Joint
Chiefs of Staff for joint staff exercises may be available for any
expenses as follows:
(1) Expenses of the Armed Forces in connection with such
exercises, including expense relating to self-deploying
watercraft under the jurisdiction of a military department.
(2) Expenses relating to the costs of port support
activities in connection with such exercises, including
transportation and port handling.
(3) Expenses relating to the breakout and operation of
prepositioned watercraft and lighterage for joint logistics and
over the shore exercises in connection with such exercises.

(b) Supplement Not Supplant.--Any amounts made available by the
Chairman of the Joint Chiefs of Staff under subsection (a) for expenses
covered by that subsection are in addition to any other amounts
available under law for such expenses.
SEC. 1053. PROHIBITION ON PARKING OF FUNDS.

(a) Prohibition.--
(1) In general.--Chapter 165 of title 10, United States
Code, is amended by inserting after section 2773a the following
new section:

``Sec. 2773b. Parking of funds: prohibition; penalties

``(a) Prohibition.--An officer or employee of the Department of
Defense may not direct the designation of funds for a particular purpose
in the budget of the President, as submitted to Congress pursuant to
section 1105 of title 31, or the supporting documents of the Department
of Defense component of such budget, with the knowledge or intent that
such funds, if made available to the Department, will not be used for
the purpose for which they are designated.
``(b) Penalties.--The direction of the designation of funds in
violation of the prohibition in subsection (a) shall be treated for
purposes of chapter 13 of title 31 as a violation of section
1341(a)(1)(A) of such title.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 165 of such title is amended by inserting
after the item relating to section 2773a the following new item:

``2773b. Parking of funds: prohibition; penalties.''.

(b) Effective Date.--

[[Page 2397]]
120 STAT. 2397

(1) In general.--The amendments made by subsection (a) shall
take effect on the date that is 31 days after the date of the
enactment of this Act.
(2) Modification of certain policies and regulations.--
Not NOTE: Deadline. later than 30 days after the date of the
enactment of this Act, the Secretary of Defense shall modify the
policies and regulations of the Department of Defense regarding
the preparation and submittal to Congress of budget materials
for the Department of Defense to take into account section 2773b
of title 10, United States Code, as added by subsection (a).
SEC. 1054. MODIFICATION OF AUTHORITIES RELATING TO THE SPECIAL
INSPECTOR GENERAL FOR IRAQ
RECONSTRUCTION.

(a) Duties.--For purposes of carrying out the duties of the Special
Inspector General for Iraq Reconstruction under section 3001(f) of the
Emergency Supplemental Appropriations Act for Defense and for the
Reconstruction of Iraq and Afghanistan, 2004 (Public Law 108-106; 117
Stat. 1235 et seq.; 5 U.S.C. App., note to section 8G of Public Law 95-
452), any United States funds appropriated or otherwise made available
for fiscal year 2006 for the reconstruction of Iraq, irrespective of the
designation of such funds, shall be deemed to be amounts appropriated or
otherwise made available to the Iraq Relief and Reconstruction Fund.
(b) Termination.--Section 3001(o) of the Emergency Supplemental
Appropriations Act for Defense and for the Reconstruction of Iraq and
Afghanistan, 2004 (Public Law 108-106; 117 Stat. 1238; 5 U.S.C. App.,
note to section 8G of Public Law 95-452) is amended to read as follows:
``(o) Termination.--The Office of the Inspector General shall
terminate on October 1, 2007, with transition operations authorized to
continue through December 31, 2007.''.

Subtitle G--Matters Involving Detainees

SEC. 1061. PROVISION OF INFORMATION TO CONGRESS ON CERTAIN
CRIMINAL INVESTIGATIONS AND PROSECUTIONS
INVOLVING DETAINEES.

(a) Annual Report.--Subsection (c) of section 1093 of the Ronald W.
Reagan National Defense Authorization Act for Fiscal Year 2005 (Public
Law 108-375; 118 Stat. 2070) is amended--
(1) in paragraph (1), by inserting ``, or any prosecution on
account of,'' after ``Notice of any investigation into''; and
(2) by adding at the end the following new paragraph:
``(3) For each investigation or prosecution described in
paragraph (1) with respect to which notice is included in the
report--
``(A) a detailed and comprehensive description of
such investigation or prosecution and any resulting
judicial or nonjudicial punishment or other disciplinary
action; and
``(B) if the individual receiving the punishment or
disciplinary action is a member of the Armed Forces, the
grade of that individual (i) as of the time of the
incident resulting in the investigation or prosecution,
(ii) as of the beginning of the investigation or
prosecution, and (iii) as of the submission of the
report.''.

[[Page 2398]]
120 STAT. 2398

(b) Timely Submission of Covered Information.--Such section is
further amended by adding at the end the following new subsection:
``(f) Additional Reporting.--In addition to the annual report under
subsection (c), the Secretary of Defense shall submit to the committees
named in that subsection regular and timely reports on the matters
described in paragraphs (1) and (3) of that subsection.''.

Subtitle H--Other Matters

SEC. 1071. TECHNICAL AND CLERICAL AMENDMENTS.

(a) Title 10, United States Code.--Title 10, United States Code, is
amended as follows:
(1) Section 115 is amended--
(A) by striking the second subsection (i) (added by
section 512(b) of Public Law 108-375 (118 Stat. 1880));
and
(B) by adding at the end of subsection (i) the
following new paragraph:
``(13) Members of the National Guard on full-time National
Guard duty involuntarily and performing homeland defense
activities under chapter 9 of title 32.''.
(2) Sections 133(c)(1), 2225(f)(1), 2302c(b),
2304(f)(1)(B)(iii), 2359a(i), and 2382(c)(3)(A) are amended by
striking ``section 16(3) of the Office of Federal Procurement
Policy Act (41 U.S.C. 414(3))'' and inserting ``section 16(c) of
the Office of Federal Procurement Policy Act (41 U.S.C.
414(c))''.
(3) Section 426(a)(1)(B) is amended by striking
``coordiation'' and inserting ``coordination''.
(4) Section 843(b)(2) is amended--
(A) in subparagraph (B)(iii), by striking ``article
126'' and inserting ``article 125''; and
(B) in subparagraph (C), by striking ``under chapter
110 or 117, or under section 1591, of title 18'' and
inserting ``under chapter 110 or 117 of title 18 or
under section 1591 of that title''.
(5) Section 1107a(a) is amended--
(A) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively; and
(B) in paragraph (2), as so redesignated, by
striking ``subparagraph (A)'' and inserting ``paragraph
(1)''.
(6) Section 1217(a) is amended by striking ``the date of''
and all that follows and inserting ``October 28, 2004.''.
(7) Section 1406(i)(3)(B)(vi) is amended by striking
``Advisor for'' and inserting ``Advisor to''.
(8) Section 1448(d)(6)(A) is amended by striking the second
comma after ``November 23, 2003''.
(9) Section 2006(b)(1) is amended--
(A) by inserting ``of this title'' after ``and
1607''; and
(B) by striking ``of this title'' before the period
at the end.
(10) Section 2103a(b) is amended in the subsection heading
by striking ``Eligibilty'' and inserting ``Eligibility''.
(11) Section 2105 is amended by adding a period at the end
of the last sentence.

[[Page 2399]]
120 STAT. 2399

(12) The item relating to section 2152 in the table of
sections at the beginning of chapter 107 is amended to read as
follows:

``2152. Joint professional military education: general requirements.''.

(13) The heading for section 2155, and the item relating to
that section in the table of sections at the beginning of
chapter 107, are amended by capitalizing the first letter of the
fifth word.
(14) Section 2155(a) is amended in the subsection heading by
inserting ``Phase'' after ``Education''.
(15) Section 2157 is amended by striking ``phase II'' in
paragraph (1) and inserting ``Phase II''.
(16) Section 2216(b)(1) is amended by striking
``subsections'' and inserting ``subsection''.
(17) The heading for section 2440 is amended so that the
first letter of each word after the first is lower case.
(18) The item relating to section 2481 in the table of
sections at the beginning of subchapter I of chapter 147 is
amended by adding a period at the end.
(19)(A) The second section 2613 (added by section 1051(a) of
Public Law 108-375 (118 Stat. 2053)) is redesignated as section
2614 and is amended by redesignating the second subsection (c)
as subsection (d).
(B) The item relating to such section in the table of
sections at the beginning of chapter 155 is revised to reflect
the redesignation of such section by subparagraph (A).
(20) Section 2613(b) is amended by striking ``In the'' and
inserting ``In this''.
(21) Section 2692(b)(9) is amended by striking ``materiel''
and inserting ``material''.
(22) Section 2694a(c) is amended in the subsection heading
by striking ``Revisionary'' and inserting ``Reversionary''.
(23) Section 2703(h) is amended by striking ``subsection''
in the first sentence and inserting ``section''.
(24) Section 2722(c)(2) is amended by striking ``section
921'' and inserting ``section 921(a)''.
(25) Section 2784a(a)(2) is amended by striking ``care'' and
inserting ``card''.
(26) Section 2831(f)(2) is amended by striking
``enviromental'' and inserting ``environmental''.
(27) Section 3911(b) is amended--
(A) in paragraph (1), by striking the second comma
after ``paragraph (2)''; and
(B) in paragraph (2), by striking ``the date of the
enactment of the National Defense Authorization Act for
Fiscal Year 2006'' and inserting ``January 6, 2006,''.
(28) Section 4342(a)(9) is amended by striking ``cadet'' and
inserting ``cadets''.
(29) Section 4544(d) is amended in the subsection heading by
striking ``Arangement'' and inserting ``Arrangement''.
(30) Section 4687(c) is amended by striking ``section
921(10)'' and inserting ``section 921(a)(10)''.
(31) The item relating to section 6086 in the table of
sections at the beginning of chapter 557 is amended by striking
the semicolon and inserting a colon.

[[Page 2400]]
120 STAT. 2400

(32) The table of sections at the beginning of chapter 561
is amended--
(A) in the item relating to section 6154, by
striking the semicolon and inserting a colon; and
(B) by striking the item relating to section 6161
and inserting the following:

``6161. Settlement of accounts: remission or cancellation of
indebtedness of members.''.

(33) Section 6323(a)(2) is amended--
(A) in subparagraph (A), by striking the second
comma after ``subparagraph (B)''; and
(B) in subparagraph (B), by striking ``the date of
the enactment of the National Defense Authorization Act
for Fiscal Year 2006'' and inserting ``January 6,
2006,''.
(34) The item relating to section 6965 in the table of
sections at the beginning of chapter 603 is amended by striking
the semicolon and inserting a colon.
(35) The item relating to section 7081 in the table of
sections at the beginning of chapter 607 is amended by striking
the first semicolon and inserting a colon.
(36) Section 7306b(b)(1) is amended by striking ``section
2(14)'' and inserting ``section 3(14)''.
(37) Section 8911(b) is amended--
(A) in paragraph (1), by striking the second comma
after ``paragraph (2)''; and
(B) in paragraph (2), by striking ``the date of the
enactment of the National Defense Authorization Act for
Fiscal Year 2006'' and inserting ``January 6, 2006,''.
(38) Section 9342(a)(9) is amended by striking ``cadet'' and
inserting ``cadets''.
(39) Section 9355(c)(1) is amended by striking ``board'' and
inserting ``Board''.
(40) Section 12731(a)(3) is amended by striking ``before the
end of the 180-day period beginning on the date of the enactment
of the National Defense Authorization Act for Fiscal Year 2005''
and inserting ``before April 25, 2005''.
(41) Section 12741 is amended by striking ``under subsection
(b)'' in subsections (c) and (d) and inserting ``under
subsection (a)''.
(42) Section 18233(f)(2) is amended by striking the comma
after ``purchase''.

(b) Title 32, United States Code.--Title 32, United States Code, is
amended as follows:
(1) Section 902 is amended by striking ``(a)'' before ``The
Secretary''.
(2) Section 908(b)(1) is amended by striking ``subsection
(i)'' and inserting ``subsection (i)(13)''.

(c) Title 37, United States Code.--Title 37, United States Code, is
amended as follows:
(1) Section 210(c)(6) is amended by striking ``Advisor for''
and inserting ``Advisor to''.
(2) Section 301(f)(2)(C) is amended by striking the comma
after ``the term''.
(3) Section 308g(f) is amended by striking the second period
at the end.

[[Page 2401]]
120 STAT. 2401

(4) Section 308j is amended by striking subsection (g) and
inserting the following new subsection:

``(g) Repayment.--A person who enters into an agreement under this
section and receives all or part of the bonus under the agreement, but
who does not accept a commission or an appointment as an officer or does
not commence to participate or does not satisfactorily participate in
the Selected Reserve for the total period of service specified in the
agreement, shall be subject to the repayment provisions of section
303a(e) of this title.''.
(5) The table of sections at the beginning of chapter 7 is
amended--
(A) by striking the item relating to section 407 and
inserting the following:

``407. Travel and transportation allowances: dislocation allowance.'';
and

(B) by striking the item relating to section 425 and
inserting the following:

``425. United States Navy Band; United States Marine Corps Band:
allowances while on concert tour.''.

(6) Section 402a(b)(3)(B) is amended by striking ``section
310 of this section'' and inserting ``section 310 of this
title''.
(7) Section 414(c) is amended by striking ``, or the Senior
Enlisted Advisor for the Chairman of the Joint Chiefs of Staff''
before the period at the end.
(8) The heading of section 1010 is amended to read as
follows:

``Sec. 1010. Commissioned officers: promotions; effective date for pay
and allowances''.

(d) Public Law 109-272.--Effective as of August 14, 2006, and as if
included therein as enacted, section 2(a) of Public Law 109-272 (120
Stat. 770; 16 U.S.C. 431 note) is amended by striking ``division E'' and
inserting ``division J''.
(e) National Defense Authorization Act for Fiscal Year 2006.--
Effective as of January 6, 2006, and as if included therein as enacted,
the National Defense Authorization Act for Fiscal Year 2006 (Public Law
109-163) is amended as follows:
(1) Section 341(e) (119 Stat. 3199) is amended by striking
``(a)(1)(E)'' and inserting ``(a)(1)(F)''.
(2) Section 545(b) (119 Stat. 3254) is amended by striking
``title''.
(3) Section 606(a) (119 Stat. 3287; 37 U.S.C. 211 note) is
amended by striking ``title 10'' and inserting ``title 37''.
(4) Section 608(b) (119 Stat. 3289) is amended--
(A) in paragraph (1), by striking ``the first
sentence'' and inserting ``the second sentence''; and
(B) in paragraph (2), by striking ``the second
sentence'' and inserting ``the third sentence''.
(5) Section 685(a) (119 Stat. 3325) is amended by striking
``Advisor for'' both places it appears and inserting ``Advisor
to''.
(6) Section 687(a)(2) (119 Stat. 3327) is amended by
striking ``subsection (a)'' and inserting ``subsection (e)''.
(7) Section 687(b)(15) (119 Stat. 3330) is amended--
(A) by striking ``Subsection (d)'' and inserting
``Subsection (e)''; and

[[Page 2402]]
120 STAT. 2402

(B) in the matter inserted by that section, by
striking ``(d) Repayment.--'' and inserting ``(e)
Repayment.--''.
(8) Section 740(c) (119 Stat. 3359; 10 U.S.C. 1073 note) is
amended by inserting ``include'' after ``shall''.

(f) Reconciliation of Duplicate Enactments.--
(1) In executing to section 2554 of title 10, United States
Code, the identical amendments made by section 8126(c)(2) of
Public Law 109-148 (119 Stat. 2729) and section 1058(c) of
Public Law 109-163 (119 Stat. 3443), such amendments shall be
executed so as to appear only once in the law as amended.
(2) In executing to section 109 of the Housing and Community
Development Act of 1974 the identical amendments made by section
8126(d) of Public Law 109-148 (119 Stat. 2730) and section
1058(d) of Public Law 109-163 (119 Stat. 3443), such amendments
shall be executed so as to appear only once in the law as
amended.
(3) Section 8126 of Public Law 109-148 (119 Stat. 2728) is
repealed.

(g) Ronald W. Reagan National Defense Authorization Act for Fiscal
Year 2005.--Effective as of October 28, 2004, and as if included therein
as enacted, the Ronald W. Reagan National Defense Authorization Act for
Fiscal Year 2005 (Public Law 108-375) is amended as follows:
(1) Section 416 is amended--
(A) in subsection (a)(1) (118 Stat. 1866), by
inserting ``the second place it appears'' before the
semicolon at the end; and
(B) in subsection (g)(1) (118 Stat. 1868), by
inserting open quotation marks before ``(1) Reserve''.
(2) Subsections (a)(2), (b)(2), and (c)(2) of section 544
(118 Stat. 1906) are amended by striking ``such title'' and
inserting ``such chapter''.
(3) Section 554(1) (118 Stat. 1913) is amended by inserting
``of'' in the quoted matter after ``a period''.
(4) Section 593(a) (118 Stat. 1934; 10 U.S.C. 503 note) is
amended in the subsection heading by striking ``Screeing'' and
inserting ``Screening''.
(5) Section 645 (118 Stat. 1962; 10 U.S.C. 1448 note) is
amended by redesignating the last subsection (relating to
definitions) as subsection (j).
(6) Section 651(a)(5)(C) (118 Stat. 1966) is amended by
striking ``subsection (f)'' and inserting ``subsection (e)''.
(7) Section 726(b)(1) (118 Stat. 1992) is amended by
striking ``(1)'' in the second quoted matter.
(8) Section 731 (118 Stat. 1993; 10 U.S.C. 1074 note) is
amended by striking ``this title'' each place it appears in
subsections (a), (b)(3)(C), and (c)(1)(A) and inserting ``this
subtitle''.
(9) Section 733(b)(2) (118 Stat. 1998; 10 U.S.C. 1074f note)
is amended by striking ``section 1301'' and inserting ``section
731(b)''.
(10) Section 801(b)(2)(A) (118 Stat. 2004) is amended--
(A) by striking ``(7), (8), and (9)'' and inserting
``(7) and (8)''; and
(B) by striking ``(8), (9), and (10)'' and inserting
``(8) and (9)''.

[[Page 2403]]
120 STAT. 2403

(11) Section 818(b) (118 Stat. 2016) is amended by inserting
``of subsection (b)'' after ``Paragraph (3)''.
(12) Section 1103(a)(1) (118 Stat. 2072) is amended by
inserting ``basic'' after ``rates of'' in the first quoted
matter.
(13) Section 1203(e)(2)(B) (118 Stat. 2079) is amended by
inserting ``office'' after ``and field'' in the first quoted
matter.

(h) Bob Stump National Defense Authorization Act for Fiscal Year
2003.--Section 806(d) of the Bob Stump National Defense Authorization
Act for Fiscal Year 2003 (10 U.S.C. 2302 note) is amended in the
subsection heading by striking ``Statues'' and inserting ``Statutes''.
(i) Coordination With Other Amendments.--For purposes of applying
amendments made by provisions of this Act other than provisions of this
section, this section shall be treated as having been enacted
immediately before the other provisions of this Act.
SEC. 1072. REVISION TO AUTHORITIES RELATING TO COMMISSION ON THE
IMPLEMENTATION OF THE NEW STRATEGIC
POSTURE OF THE UNITED STATES.

Section 1051 of the National Defense Authorization Act for Fiscal
Year 2006 (Public Law 109-163; 119 Stat. 3431) is amended--
(1) in subsection (c)(1), by striking ``June 30, 2007'' and
inserting ``September 30, 2007''; and
(2) in subsection (f), by striking ``July 30, 2007'' and
inserting ``November 30, 2007''.
SEC. 1073. REVISED DEADLINE FOR SUBMISSION OF FINAL REPORT OF EMP
COMMISSION.

Section 1403(a) 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-346), as amended by section 1052(f) of the
National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-
163; 119 Stat. 3434), is amended by striking ``June 30, 2007'' and
inserting ``September 30, 2007''.
SEC. 1074. EXTENSION OF RETURNING WORKER EXEMPTION TO H-2B
NUMERICAL LIMITATION.

(a) In General.--Section 214(g)(9) of the Immigration and
Nationality Act (8 U.S.C. 1184(g)(9)) is amended--
(1) by amending the first sentence of subparagraph (A) to
read as follows: ``Subject to subparagraphs (B) and (C), an
alien who has already been counted toward the numerical
limitation of paragraph (1)(B) during fiscal year 2004, 2005, or
2006 shall not again be counted toward such limitation during
fiscal year 2007.''; and
(2) in subparagraph (B), by striking ``referred to in
subparagraph (A)'' and inserting ``to admit or otherwise provide
status under section 101(a)(15)(H)(ii)(b)''.

(b) Deletion of Prior Sunset Provision.--Section 402(b)(1) of the
Save Our Small and Seasonal Businesses Act of 2005 (title IV of division
B of Public Law 109-13; 119 Stat. 318; 8 U.S.C. 1184 note) is amended by
striking ``2004,'' and all that follows through the period at the end
and inserting ``2004.''.
(c) Effective Date.--The amendments made by this section shall take
effect on October 1, 2006. If this section is enacted after October 1,
2006, the amendments made by this section shall take effect as if
enacted on such date.

[[Page 2404]]
120 STAT. 2404

SEC. 1075. PATENT TERM EXTENSIONS FOR THE BADGES OF THE AMERICAN
LEGION, THE AMERICAN LEGION WOMEN'S
AUXILIARY, AND THE SONS OF THE AMERICAN
LEGION.

(a) Patent Term Extension for the Badge of the American Legion.--The
term of the design patent numbered 54,296 (for the badge of the American
Legion) is renewed and extended for a period of 14 years beginning on
the date of enactment of this Act, with all the rights and privileges
pertaining to such patent.
(b) Patent Term Extension for the Badge of the American Legion
Women's Auxiliary.--The term of the design patent numbered 55,398 (for
the badge of the American Legion Women's Auxiliary) is renewed and
extended for a period of 14 years beginning on the date of enactment of
this Act, with all the rights and privileges pertaining to such patent.
(c) Patent Term Extension for the Badge of the Sons of the American
Legion.--The term of the design patent numbered 92,187 (for the badge of
the Sons of the American Legion) is renewed and extended for a period of
14 years beginning on the date of enactment of this Act, with all the
rights and privileges pertaining to such patent.
SEC. 1076. USE OF THE ARMED FORCES IN MAJOR PUBLIC EMERGENCIES.

(a) Use of the Armed Forces Authorized.--
(1) In general.--Section 333 of title 10, United States
Code, is amended to read as follows:

``Sec. 333. Major public emergencies; interference with State and
Federal law

``(a) Use of Armed Forces in Major Public Emergencies.--(1) The
President may employ the armed forces, including the National Guard in
Federal service, to--
``(A) restore public order and enforce the laws of the
United States when, as a result of a natural disaster, epidemic,
or other serious public health emergency, terrorist attack or
incident, or other condition in any State or possession of the
United States, the President determines that--
``(i) domestic violence has occurred to such an
extent that the constituted authorities of the State or
possession are incapable of maintaining public order;
and
``(ii) such violence results in a condition
described in paragraph (2); or
``(B) suppress, in a State, any insurrection, domestic
violence, unlawful combination, or conspiracy if such
insurrection, violation, combination, or conspiracy results in a
condition described in paragraph (2).

``(2) A condition described in this paragraph is a condition that--
``(A) so hinders the execution of the laws of a State or
possession, as applicable, and of the United States within that
State or possession, that any part or class of its people is
deprived of a right, privilege, immunity, or protection named in
the Constitution and secured by law, and the constituted
authorities of that State or possession are unable, fail, or
refuse to protect that right, privilege, or immunity, or to give
that protection; or

[[Page 2405]]
120 STAT. 2405

``(B) opposes or obstructs the execution of the laws of the
United States or impedes the course of justice under those laws.

``(3) In any situation covered by paragraph (1)(B), the State shall
be considered to have denied the equal protection of the laws secured by
the Constitution.
``(b) Notice to Congress.--The President shall notify Congress of
the determination to exercise the authority in subsection (a)(1)(A) as
soon as practicable after the determination and every 14 days thereafter
during the duration of the exercise of that authority.''.
(2) Proclamation to disperse.--Section 334 of such title is
amended by inserting ``or those obstructing the enforcement of
the laws'' after ``insurgents''.
(3) Heading amendment.--The heading of chapter 15 of such
title is amended to read as follows:

``CHAPTER 15--ENFORCEMENT OF THE LAWS TO RESTORE PUBLIC ORDER''.

(4) Clerical amendments.--(A) The tables of chapters at the
beginning of subtitle A of title 10, United States Code, and at
the beginning of part I of such subtitle, are each amended by
striking the item relating to chapter 15 and inserting the
following new item:

``15 Enforcement of the Laws to Restore Public Order..............331''.

(B) The table of sections at the beginning of chapter 15 of
such title is amended by striking the item relating to sections
333 and inserting the following new item:

``333. Major public emergencies; interference with State and Federal
law.''.

(b) Provision of Supplies, Services, and Equipment.--
(1) In general.--Chapter 152 of such title is amended by
adding at the end the following new section:

``Sec. 2567. Supplies, services, and equipment: provision in major
public emergencies

``(a) Provision Authorized.--In any situation in which the President
determines to exercise the authority in section 333(a)(1)(A) of this
title, the President may direct the Secretary of Defense to provide
supplies, services, and equipment to persons affected by the situation.
``(b) Covered Supplies, Services, and Equipment.--The supplies,
services, and equipment provided under this section may include food,
water, utilities, bedding, transportation, tentage, search and rescue,
medical care, minor repairs, the removal of debris, and other assistance
necessary for the immediate preservation of life and property.
``(c) Limitations.--(1) Supplies, services, and equipment may be
provided under this section--
``(A) only to the extent that the constituted authorities of
the State or possession concerned are unable to provide such
supplies, services, and equipment, as the case may be; and
``(B) only until such authorities, or other departments or
agencies of the United States charged with the provision of such
supplies, services, and equipment, are able to provide such
supplies, services, and equipment.

[[Page 2406]]
120 STAT. 2406

``(2) The Secretary may provide supplies, services, and equipment
under this section only to the extent that the Secretary determines that
doing so will not interfere with military preparedness or ongoing
military operations or functions.
``(d) Inapplicability of Certain Authorities.--The provision of
supplies, services, or equipment under this section shall not be subject
to the provisions of section 403(c) of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5170b(c)).''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``2567. Supplies, services, and equipment: provision in major public
emergencies''.

(c) Conforming Amendment.--Section 12304(c)(1) of such title is
amended by striking ``No unit'' and all that follows through
``subsection (b),'' and inserting ``Except to perform any of the
functions authorized by chapter 15 or section 12406 of this title or by
subsection (b), no unit or member of a reserve component may be ordered
to active duty under this section''.
SEC. 1077. INCREASED HUNTING AND FISHING OPPORTUNITIES FOR MEMBERS
OF THE ARMED FORCES, RETIRED MEMBERS,
AND DISABLED VETERANS.

(a) Access for Members, Retired Members, and Disabled Veterans.--
Consistent with section 2671 of title 10, United States Code, and using
such funds as are made available for this purpose, the Secretary of
Defense shall ensure that members of the Armed Forces, retired members,
disabled veterans, and persons assisting disabled veterans are able to
utilize lands under the jurisdiction of the Department of Defense that
are available for hunting or fishing.
(b) Assessment.--Not NOTE: Reports. Deadline. later than 180
days after the date of the enactment of this Act, the Secretary shall
submit to Congress a report containing the results of an assessment of
those lands under the jurisdiction of the Department of Defense and
suitable for hunting or fishing and describing the actions necessary--
(1) to further increase the acreage made available to
members of the Armed Forces, retired members, disabled veterans,
and persons assisting disabled veterans for hunting and fishing;
and
(2) to make that acreage more accessible to disabled
veterans.

(c) Recreational Activities on Santa
Rosa NOTE: California. Island.--The Secretary of the Interior shall
immediately cease the plan, approved in the settlement agreement for
case number 96-7412 WJR and case number 97-4098 WJR, to exterminate the
deer and elk on Santa Rosa Island, Channel Islands, California, by
helicopter and shall not exterminate or nearly exterminate the deer and
elk.

TITLE XI--CIVILIAN PERSONNEL MATTERS

Sec. 1101. Accrual of annual leave for members of the uniformed services
performing dual employment.
Sec. 1102. Strategy for improving the senior management, functional, and
technical workforce of the Department of Defense.

[[Page 2407]]
120 STAT. 2407

Sec. 1103. Three-year extension of authority for experimental personnel
management program for scientific and technical personnel.
Sec. 1104. Reports on members of the Armed Forces and civilian employees
of the Department of Defense serving in the legislative
branch.
Sec. 1105. Extension of authority to waive annual limitation on total
compensation paid to Federal civilian employees.

SEC. 1101. ACCRUAL OF ANNUAL LEAVE FOR MEMBERS OF THE UNIFORMED
SERVICES PERFORMING DUAL EMPLOYMENT.

Section 5534a of title 5, United States Code, is amended by adding
at the end the following new sentence: ``Such a member also is entitled
to accrue annual leave with pay in the manner specified in section
6303(a) of this title for a retired member of a uniformed service.''.
SEC. 1102. STRATEGY FOR IMPROVING THE SENIOR MANAGEMENT,
FUNCTIONAL, AND TECHNICAL WORKFORCE OF
THE DEPARTMENT OF DEFENSE.

(a) Inclusion in 2007 Strategic Human Capital Plan.--The Secretary
of Defense shall include in the March 1, 2007, strategic human capital
plan required by section 1122(c) of the National Defense Authorization
Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3453; 10 U.S.C.
prec. 1580 note) a strategic plan to shape and improve the senior
management, functional, and technical workforce (including scientists
and engineers) of the Department of Defense.
(b) Scope of Plan.--The strategic plan required by subsection (a)
shall cover, at a minimum, the following categories of Department of
Defense civilian personnel:
(1) Appointees in the Senior Executive Service under section
3131 of title 5, United States Code.
(2) Persons serving in positions described in section
5376(a) of title 5, United States Code.
(3) Highly qualified experts appointed pursuant to section
9903 of title 5, United States Code.
(4) Scientists and engineers appointed pursuant to section
342(b) of the National Defense Authorization Act for Fiscal Year
1995 (Public Law 103-337; 108 Stat. 2721), as amended by section
1114 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-315)).
(5) Scientists and engineers appointed pursuant to section
1101 of the Strom Thurmond National Defense Authorization Act
for Fiscal Year 1999 (5 U.S.C. 3104 note).
(6) Persons serving in the Defense Intelligence Senior
Executive Service under section 1606 of title 10, United States
Code.
(7) Persons serving in Intelligence Senior Level positions
under section 1607 of title 10, United States Code.

(c) Contents of Plan.--The strategic plan required by subsection (a)
shall include--
(1) an assessment of--
(A) the needs of the Department of Defense for
senior management, functional, and technical personnel
(including scientists and engineers) in light of recent
trends and projected changes in the mission and
organization of the Department and in light of staff
support needed to accomplish that mission;

[[Page 2408]]
120 STAT. 2408

(B) the capability of the existing civilian employee
workforce of the Department to meet requirements
relating to the mission of the Department, including the
impact on that capability of projected trends in the
senior management, functional, and technical personnel
workforce of the Department based on expected losses due
to retirement and other attrition; and
(C) gaps in the existing or projected civilian
employee workforce of the Department that should be
addressed to ensure that the Department has continued
access to the senior management, functional, and
technical personnel (including scientists and engineers)
it needs; and
(2) a plan of action for developing and reshaping the senior
management, functional, and technical workforce of the
Department to address the gaps identified under paragraph
(1)(C), including--
(A) any legislative or administrative action that
may be needed to adjust the requirements applicable to
any category of civilian personnel identified in
subsection (b) or to establish a new category of senior
management or technical personnel;
(B) any changes in the number of personnel
authorized in any category of personnel identified in
subsection (b) that may be needed to address such gaps
and effectively meet the needs of the Department;
(C) any changes in the rates or methods of pay for
any category of personnel identified in subsection (b)
that may be needed to address inequities and ensure that
the Department has full access to appropriately
qualified personnel to address such gaps and meet the
needs of the Department;
(D) specific recruiting and retention goals,
including the program objectives of the Department to be
achieved through such goals;
(E) specific strategies for developing, training,
deploying, compensating, motivating, and designing
career paths and career opportunities for the senior
management, functional, and technical workforce of the
Department, including the program objectives of the
Department to be achieved through such strategies; and
(F) specific steps that the Department has taken or
plans to take to ensure that the senior management,
functional, and technical workforce of the Department is
managed in compliance with the requirements of section
129 of title 10, United States Code.
SEC. 1103. THREE-YEAR EXTENSION OF AUTHORITY FOR EXPERIMENTAL
PERSONNEL MANAGEMENT PROGRAM FOR
SCIENTIFIC AND TECHNICAL PERSONNEL.

Section 1101(e)(1) of the Strom Thurmond National Defense
Authorization Act for Fiscal Year 1999 (5 U.S.C. 3104 note) is amended
by striking ``September 30, 2008'' and inserting ``September 30, 2011''.

[[Page 2409]]
120 STAT. 2409

SEC. 1104. NOTE: 10 USC note prec. 711. REPORTS ON MEMBERS OF
THE ARMED FORCES AND CIVILIAN EMPLOYEES
OF THE DEPARTMENT OF DEFENSE SERVING IN
THE LEGISLATIVE BRANCH.

(a) Quarterly Reports on Details and Fellowships of Long Duration.--
Not later than 120 days after the date of the enactment of this Act, and
quarterly thereafter, the Secretary of Defense shall submit to the
congressional defense committees a report on the members of the Armed
Forces and civilian employees of the Department of Defense who, as of
the date of such report, have served continuously in the Legislative
Branch for more than 12 consecutive months in one or a combination of
covered legislative details or fellowships.
(b) Reports on Certain Military Details and Fellowships.--If a
member of the Armed Forces is assigned to a covered legislative detail
or fellowship as the last tour of duty of such member before retirement
or separation from the Armed Forces in contravention of the regulations
of the Department of Defense, the Secretary shall submit to the
congressional defense committees a report on the assignment of such
member to such covered legislative detail or fellowship. The report
shall include a rationale for the waiver of the regulations of the
Department in order to permit the detail or fellowship.
(c) Report Elements.--Each report under subsection (a) or (b) shall
set forth, for each member of the Armed Forces or civilian employee of
the Department of Defense covered by such report, the following:
(1) The name of such member or employee.
(2) In the case of a member, the Armed Force of such member.
(3) The committee or member of Congress to which such member
or employee is detailed or assigned.
(4) A general description of the projects or tasks
undertaken or to be undertaken, as applicable, by such member or
employee as a detailee, fellow, or both.
(5) The anticipated termination date of the current detail
or fellowship of such member or employee.

(d) Covered Legislative Detail or Fellowship Defined.--In this
section, the term ``covered legislative detail or fellowship'' means the
following:
(1) A detail under the provisions of Department of Defense
Directive 1000.17.
(2) A legislative fellowship (including a legislative
fellowship under the provisions of Department of Defense
Directive 1322.6).
SEC. 1105. EXTENSION OF AUTHORITY TO WAIVE ANNUAL LIMITATION ON
TOTAL COMPENSATION PAID TO FEDERAL
CIVILIAN EMPLOYEES.

Section 1105 of the National Defense Authorization Act for Fiscal
Year 2006 (Public Law 109-163; 119 Stat. 3450) is amended--
(1) in subsection (a), by inserting ``and 2007'' after
``2006''; and
(2) in subsection (b)--
(A) by striking ``$200,000'' in the heading; and
(B) by striking ``a calendar year'' and inserting
``2006 and $212,100 in 2007''.

[[Page 2410]]
120 STAT. 2410

TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

Subtitle A--Assistance and Training

Sec. 1201. Logistic support for allied forces participating in combined
operations.
Sec. 1202. Temporary authority to use acquisition and cross-servicing
agreements to lend certain military equipment to foreign
forces in Iraq and Afghanistan for personnel protection and
survivability.
Sec. 1203. Recodification and revision to law relating to Department of
Defense humanitarian demining assistance.
Sec. 1204. Enhancements to Regional Defense Combating Terrorism
Fellowship Program.
Sec. 1205. Participation of the Department of Defense in multinational
military centers of excellence.
Sec. 1206. Modification and extension of authorities relating to program
to build the capacity of foreign military forces.
Sec. 1207. Authority for distribution to certain foreign personnel of
education and training materials and information technology
to enhance military interoperability.

Subtitle B--Nonproliferation Matters and Countries of Concern

Sec. 1211. North Korea.
Sec. 1212. Report on participation of multinational partners in the
United Nations Command in the Republic of Korea.
Sec. 1213. Intelligence on Iran.
Sec. 1214. Sense of Congress on United States policy on the nuclear
programs of Iran.

Subtitle C--Other Matters

Sec. 1221. Exclusion of petroleum, oil, and lubricants from limitations
on annual amount of liabilities the United States may accrue
under acquisition and cross-servicing agreements.
Sec. 1222. Modification of limitations on assistance under the American
Servicemembers' Protection Act of 2002.
Sec. 1223. Humanitarian support for Iraqi children in urgent need of
medical care.
Sec. 1224. Sense of Congress opposing the granting of amnesty by the
government of Iraq to persons known to have attacked, killed,
or wounded members of the United States Armed Forces in Iraq.
Sec. 1225. Annual reports on United States contributions to the United
Nations.
Sec. 1226. Comprehensive regional strategy and annual reports on
Somalia.
Sec. 1227. Report on the implementation of the Darfur Peace Agreement.
Sec. 1228. Sense of Congress concerning cooperation with Russia on
issues pertaining to missile defense.
Sec. 1229. Sense of Congress calling for convening of a summit for a
comprehensive political agreement for Iraq.
Sec. 1230. Sense of Congress on the commendable actions of the Armed
Forces in Iraq.
Sec. 1231. Annual report on foreign sales of significant military
equipment manufactured in the United States.

Subtitle A--Assistance and Training

SEC. 1201. LOGISTIC SUPPORT FOR ALLIED FORCES PARTICIPATING IN
COMBINED OPERATIONS.

(a) Authority.--Chapter 3 of title 10, United States Code, is
amended by inserting after section 127b the following new section:

``Sec. 127c. Allied forces participating in combined operations:
authority to provide logistic support, supplies,
and services

``(a) Authority.--Subject to subsections (b) and (c), the Secretary
of Defense may provide logistic support, supplies, and services to
allied forces participating in a combined operation with

[[Page 2411]]
120 STAT. 2411

the armed forces. Provision of such support, supplies, and services to
the forces of an allied nation may be made only with the concurrence of
the Secretary of State.
``(b) Limitations.--(1) The authority provided by subsection (a) may
be used only in accordance with the Arms Export Control Act and other
export control laws of the United States.
``(2) The authority provided by subsection (a) may be used only for
a combined operation--
``(A) that is carried out during active hostilities or as
part of a contingency operation or a noncombat operation
(including an operation in support of the provision of
humanitarian or foreign disaster assistance, a country
stabilization operation, or a peacekeeping operation under
chapter VI or VII of the Charter of the United Nations); and
``(B) in a case in which the Secretary of Defense determines
that the allied forces to be provided logistic support,
supplies, and services--
``(i) are essential to the success of the combined
operation; and
``(ii) would not be able to participate in the
combined operation but for the provision of such
logistic support, supplies, and services by the
Secretary.

``(c) Limitations on Value.--(1) Except as provided in paragraph
(2), the value of logistic support, supplies, and services provided
under this section in any fiscal year may not exceed $100,000,000.
``(2) In addition to any logistic support, supplies, and services
provided under subsection (a) that are covered by paragraph (1), the
value of logistic support, supplies, and services provided under this
section solely for the purposes of enhancing the interoperability of the
logistical support systems of military forces participating in combined
operation of the United States in order to facilitate such operations
may not, in any fiscal year, exceed $5,000,000.
``(d) Annual Report.--(1) Not later than December 31 each year, the
Secretary of Defense shall submit to the Committee on Armed Services and
the Committee on Foreign Relations of the Senate and the Committee on
Armed Services and the Committee on International Relations of the House
of Representatives a report on the use of the authority provided by
subsection (a) during the preceding fiscal year.
``(2) Each report under paragraph (1) shall be prepared in
coordination with the Secretary of State.
``(3) Each report under paragraph (1) shall include, for the fiscal
year covered by the report, the following:
``(A) Each nation provided logistic support, supplies, and
services through the use of the authority provided by subsection
(a).
``(B) For each such nation, a description of the type and
value of logistic support, supplies, and services so provided.

``(e) Definition.--In this section, the term `logistic support,
supplies, and services' has the meaning given that term in section
2350(1) of this title.''.

[[Page 2412]]
120 STAT. 2412

(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
127b the following new item:

``127c. Allied forces participating in combined operations: authority to
provide logistic support, supplies, and services.''.

SEC. 1202. TEMPORARY AUTHORITY TO USE ACQUISITION AND CROSS-
SERVICING AGREEMENTS TO LEND CERTAIN
MILITARY EQUIPMENT TO FOREIGN FORCES IN
IRAQ AND AFGHANISTAN FOR PERSONNEL
PROTECTION AND SURVIVABILITY.

(a) Authority.--
(1) In general.--Subject to paragraphs (2), (3), and (4),
the Secretary of Defense may treat covered military equipment as
logistic support, supplies, and services under subchapter I of
chapter 138 of title 10, United States Code, for the purpose of
providing for the use of such equipment by military forces of a
nation participating in combined operations with the United
States in Iraq or Afghanistan.
(2) Required determinations.--Equipment may be provided to
the military forces of a nation under the authority of this
section only upon--
(A) a determination by the Secretary of Defense that
the United States forces in the combined operation have
no unfilled requirements for that equipment; and
(B) a determination by the Secretary of Defense,
with the concurrence of the Secretary of State, that it
is in the national security interest of the United
States to provide for the use of such equipment by the
military forces of that nation under this section.
(3) Limitation on use of equipment.--Equipment provided to
the military forces of a nation under the authority of this
section may be used by those forces only in Iraq or Afghanistan
and only for personnel protection or to aid in the personnel
survivability of those forces.
(4) Limitation on duration of provision of equipment.--
Equipment provided to the military forces of a nation under the
authority of this section may be used by the military forces of
that nation for not longer than one year.

(b) Semiannual Reports to Congressional Committees.--
(1) Use of authority during first six months of fiscal
year.--If the authority provided in subsection (a) is exercised
during the first six months of a fiscal year, the Secretary of
Defense shall submit to the specified congressional committees a
report on that exercise of such authority not later than the
following April 30.
(2) Use of authority during second six months of fiscal
year.--If the authority provided in subsection (a) is exercised
during the second six months of a fiscal year, the Secretary of
Defense shall submit to the specified congressional committees a
report on that exercise of such authority not later than the
following October 30.
(3) Content.--Each report under paragraph (1) or (2) shall
include, with respect to each exercise of the authority provided
in subsection (a) during the period covered by the report, the
following:

[[Page 2413]]
120 STAT. 2413

(A) A description of the basis for the determination
of the Secretary of Defense that it is in the national
security interests of the United States to provide for
the use of covered military equipment in the manner
authorized in subsection (a).
(B) Identification of each foreign force that
receives such equipment.
(C) A description of the type, quantity, and value
of the equipment provided to each foreign force that
receives such equipment.
(D) A description of the terms and duration of the
provision of the equipment to each foreign force that
receives such equipment.
(4) Coordination.--Each report under paragraph (1) or (2)
shall be prepared in coordination with the Secretary of State.

(c) Limitations on Provision of Military Equipment.--The provision
of military equipment under this section is subject to the provisions of
the Arms Export Control Act (22 U.S.C. 2751 et seq.) and of any other
export control process under laws relating to the transfer of military
equipment and technology to foreign nations.
(d) Definitions.--In this section:
(1) The term ``covered military equipment'' means items
designated as significant military equipment in categories I,
II, III, VII, XI, and XIII of the United States Munitions List
under section 38(a)(1) of the Arms Export Control Act (22 U.S.C.
2778(a)(1)).
(2) The term ``specified congressional committees'' means--
(A) the Committee on Armed Services and the
Committee on Foreign Relations of the Senate; and
(B) the Committee on Armed Services and the
Committee on International Relations of the House of
Representatives.

(e) Expiration.--The authority to provide military equipment to the
military forces of a foreign nation under this section expires on
September 30, 2008.
SEC. 1203. RECODIFICATION AND REVISION TO LAW RELATING TO
DEPARTMENT OF DEFENSE HUMANITARIAN
DEMINING ASSISTANCE.

(a) Repeal.--Section 401 of title 10, United States Code, is
amended--
(1) in subsection (a), by striking paragraph (4);
(2) in subsection (b)--
(A) by striking ``(1)'' after ``(b)''; and
(B) by striking paragraph (2);
(3) in subsection (c), by striking paragraphs (2) and (3);
and
(4) in subsection (e), by striking paragraph (5).

(b) Recodification and Revision.--
(1) In general.--Chapter 20 of such title is amended by
adding at the end the following new section:

[[Page 2414]]
120 STAT. 2414

``Sec. 407. Humanitarian demining assistance: authority; limitations

``(a) Authority.--(1) NOTE: Regulations. Under regulations
prescribed by the Secretary of Defense, the Secretary of a military
department may carry out humanitarian demining assistance in a country
if the Secretary concerned determines that the assistance will promote
either--
``(A) the security interests of both the United States and
the country in which the activities are to be carried out; or
``(B) the specific operational readiness skills of the
members of the armed forces who participate in the activities.

``(2) Humanitarian demining assistance under this section shall
complement, and may not duplicate, any other form of social or economic
assistance which may be provided to the country concerned by any other
department or agency of the United States.
``(3) The Secretary of Defense shall ensure that no member of the
armed forces, while providing humanitarian demining assistance under
this section--
``(A) engages in the physical detection, lifting, or
destroying of landmines or other explosive remnants of war
(unless the member does so for the concurrent purpose of
supporting a United States military operation); or
``(B) provides such assistance as part of a military
operation that does not involve the armed forces.

``(b) Limitations.--(1) Humanitarian demining assistance may not be
provided under this section unless the Secretary of State specifically
approves the provision of such assistance.
``(2) Any authority provided under any other provision of law to
provide humanitarian demining assistance to a foreign country shall be
carried out in accordance with, and subject to, the limitations
prescribed in this section.
``(c) Expenses.--(1) Expenses incurred as a direct result of
providing humanitarian demining assistance under this section to a
foreign country shall be paid for out of funds specifically appropriated
for the purpose of the provision by the Department of Defense of
overseas humanitarian assistance.
``(2) Expenses covered by paragraph (1) include the following:
``(A) Travel, transportation, and subsistence expenses of
Department of Defense personnel providing such assistance.
``(B) The cost of any equipment, services, or supplies
acquired for the purpose of carrying out or supporting
humanitarian demining activities, including any nonlethal,
individual, or small-team equipment or supplies for clearing
landmines or other explosive remnants of war that are to be
transferred or otherwise furnished to a foreign country in
furtherance of the provision of assistance under this section.

``(3) The cost of equipment, services, and supplies provided in any
fiscal year under this section may not exceed $10,000,000.
``(d) Annual Report.--The Secretary of Defense shall include in the
annual report under section 401 of this title a separate discussion of
activities carried out under this section during the preceding fiscal
year, including--
``(1) a list of the countries in which humanitarian demining
assistance was carried out during the preceding fiscal year;
``(2) the type and description of humanitarian demining
assistance carried out in each country during the preceding
fiscal year, as specified in paragraph (1);

[[Page 2415]]
120 STAT. 2415

``(3) a list of countries in which humanitarian demining
assistance could not be carried out during the preceding fiscal
year due to insufficient numbers of Department of Defense
personnel to carry out such activities; and
``(4) the amount expended in carrying out such assistance in
each such country during the preceding fiscal year.

``(e) Humanitarian Demining Assistance Defined.--In this section,
the term `humanitarian demining assistance', as it relates to training
and support, means detection and clearance of landmines and other
explosive remnants of war, including activities related to the
furnishing of education, training, and technical assistance with respect
to the detection and clearance of landmines and other explosive remnants
of war.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``407. Humanitarian demining assistance: authority; limitations.''.

SEC. 1204. ENHANCEMENTS TO REGIONAL DEFENSE COMBATING TERRORISM
FELLOWSHIP PROGRAM.

(a) Authorized Purposes.--Subsection (a) of section 2249c of title
10, United States Code, is amended by striking ``associated with'' and
all that follows and inserting: ``associated with the education and
training of foreign military officers, ministry of defense officials, or
security officials at military or civilian educational institutions,
regional centers, conferences, seminars, or other training programs
conducted under the Regional Defense Combating Terrorism Fellowship
Program. Costs for which payment may be made under this section include
the costs of transportation and travel and subsistence costs.''.
(b) Annual Limitation on Amount Obligated.--Subsection (b) of such
section is amended by striking ``$20,000,000'' and inserting
``$25,000,000''.
(c) Obligation of Funds Across Fiscal Years.--Subsection (b) of such
section is further amended by adding at the end the following new
sentence: ``Amounts available under the authority in subsection (a) for
a fiscal year may be used for programs that begin in such fiscal year
but end in the next fiscal year.''.
(d) Clerical Amendments.--
(1) Reference to program.--Subsection (c)(3) of such section
is amended by striking ``Regional Defense Counterterrorism
Fellowship Program'' and inserting ``program referred to in
subsection (a)''.
(2) Section heading.--The heading of such section is amended
to read as follows:

[[Page 2416]]
120 STAT. 2416

``Sec. 2249c. Regional Defense Combating Terrorism Fellowship Program:
authority to use appropriated funds for costs
associated with education and training of
foreign officials''.

(3) Table of sections.--The item relating to such section in
the table of sections at the beginning of subchapter I of
chapter 134 of such title is amended to read as follows:

``2249c.  Regional Defense Combating Terrorism Fellowship Program:
authority to use appropriated funds for costs associated with
education and training of foreign officials.''.

SEC. 1205. PARTICIPATION OF THE DEPARTMENT OF DEFENSE IN
MULTINATIONAL MILITARY CENTERS OF
EXCELLENCE.

(a) Participation Authorized.--During fiscal year 2007, the
Secretary of Defense may, with the concurrence of the Secretary of
State, authorize the participation of members of the Armed Forces and
Department of Defense civilian personnel in any multinational military
center of excellence hosted by any nation or combination of nations
referred to in subsection (b) for purposes of--
(1) enhancing the ability of military forces and civilian
personnel of the nations participating in such center to engage
in joint exercises or coalition or international military
operations; or
(2) improving interoperability between the Armed Forces of
the United States and the military forces of friendly foreign
nations.

(b) Covered Nations.--The nations referred to in this subsection are
the following:
(1) The United States.
(2) Any member nation of the North Atlantic Treaty
Organization (NATO).
(3) Any major non-NATO ally.
(4) Any other friendly foreign nation identified by the
Secretary of Defense, with the concurrence of the Secretary of
State, for purposes of this section.

(c) Definitions.--In this section:
(1) Multinational military center of excellence.--The term
``multinational military center of excellence'' means an entity
sponsored by one or more nations that is accredited and approved
by the Military Committee of the North Atlantic Treaty
Organization (NATO) as offering recognized expertise and
experience to personnel participating in the activities of such
entity for the benefit of NATO by providing such personnel
opportunities to--
(A) enhance education and training;
(B) improve interoperability and capabilities;
(C) assist in the development of doctrine; and
(D) validate concepts through experimentation.
(2) Major non-nato ally.--The term ``major non-NATO ally''
means a country (other than a member nation of the North
Atlantic Treaty Organization) that is designated as a major non-
NATO ally pursuant to section 517 of the Foreign Assistance Act
of 1961 (22 U.S.C. 2321k).

(d) Memorandum of Understanding.--
(1) Requirement.--The participation of members of the Armed
Forces or Department of Defense civilian personnel in a
multinational military center of excellence under subsection

[[Page 2417]]
120 STAT. 2417

(a) shall be in accordance with the terms of one or more
memoranda of understanding entered into by the Secretary of
Defense, with the concurrence of the Secretary of State, and the
foreign nation or nations concerned.
(2) Scope.--If Department of Defense facilities, equipment,
or funds are used to support a multinational military center of
excellence under subsection (a), the memoranda of understanding
under paragraph (1) with respect to that center shall provide
details of any cost-sharing arrangement or other funding
arrangement.

(e) Availability of Appropriated Funds.--
(1) Availability.--Funds appropriated to the Department of
Defense for operation and maintenance are available as follows:
(A) To pay the United States share of the operating
expenses of any multinational military center of
excellence in which the United States participates under
this section.
(B) To pay the costs of the participation of members
of the Armed Forces and Department of Defense civilian
personnel in multinational military centers of
excellence under this section, including the costs of
expenses of such participants.
(2) Limitation on amount.--The amount available under
paragraph (1)(A) in fiscal year 2007 for the expenses referred
to in that paragraph may not exceed $3,000,000.
(3) Limitation on use of funds.--No funds may be used under
this section to fund the pay or salaries of members of the Armed
Forces and Department of Defense civilian personnel who
participate in multinational military centers of excellence
under this section.

(f) Use of Department of Defense Facilities and Equipment.--
Facilities and equipment of the Department of Defense may be used for
purposes of the support of multinational military centers of excellence
under this section that are hosted by the Department.
(g) Report on Use of Authority.--
(1) Report required.--Not later than October 31, 2007, the
Secretary of Defense shall submit to the Committee on Armed
Services of the Senate and the Committee on Armed Services of
the House of Representatives a report on the use of the
authority in this section during fiscal year 2007.
(2) Elements.--The report required by paragraph (1) shall
include the following:
(A) A detailed description of the participation of
the Department of Defense, and of members of the Armed
Forces and civilian personnel of the Department, in
multinational military centers of excellence under the
authority of this section during fiscal year 2007.
(B) For each multinational military center of
excellence in which the Department of Defense, or
members of the Armed Forces or civilian personnel of the
Department, so participated--
(i) a description of such multinational
military center of excellence;
(ii) a description of the activities
participated in by the Department, or by members
of the Armed Forces or civilian personnel of the
Department; and

[[Page 2418]]
120 STAT. 2418

(iii) a statement of the costs of the
Department for such participation, including--
(I) a statement of the United States
share of the expenses of such center and
a statement of the percentage of the
United States share of the expenses of
such center to the total expenses of
such center; and
(II) a statement of the amount of
such costs (including a separate
statement of the amount of costs paid
for under the authority of this section
by category of costs).
SEC. 1206. MODIFICATION AND EXTENSION OF AUTHORITIES RELATING TO
PROGRAM TO BUILD THE CAPACITY OF FOREIGN
MILITARY FORCES.

(a) Program Implementation Vested in Secretary of Defense.--
(1) Authority.--Subsection (a) of section 1206 of the
National Defense Authorization Act for Fiscal Year 2006 (Public
Law 109-163; 119 Stat. 3456) is amended by striking ``The
President may direct the Secretary of Defense to'' and inserting
``The Secretary of Defense, with the concurrence of the
Secretary of State, may''.
(2) Conforming amendments.--Such section is further
amended--
(A) in subsection (b), by striking ``directed by the
President'' in paragraphs (1) and (2);
(B) in subsection (c)--
(i) in paragraph (1), by striking ``directed
by the President''; and
(ii) in paragraphs (2) and (3), by striking
``The President'' and inserting ``The Secretary of
Defense'';
(C) in subsection (d), by striking ``directed by the
President'' both places it appears; and
(D) in subsection (e)(2), by striking ``as directed
by the President''.

(b) Funding.--Subsection (c)(1) of such section is further amended--
(1) by striking ``$200,000,000'' and inserting
``$300,000,000''; and
(2) by striking ``defense-wide''.

(c) Notification to Congress.--Paragraph (1) of subsection (e) of
such section is amended to read as follows:
``(1) Notification.--Whenever the Secretary of Defense
decides, with the concurrence of the Secretary of State, to
conduct or support a program authorized under subsection (a),
the Secretary of Defense shall submit to Congress a notification
in writing of that decision. Any such notification shall be
prepared in coordination with the Secretary of State.''.

(d) One-Year Extension of Program Authority.--Subsection (g) of such
section is amended to read as follows:
``(g) Termination of Program.--The authority provided under
subsection (a) terminates at the close of September 30, 2008. Any
program directed before that date may be completed, but only using funds
available for fiscal year 2006, 2007, or 2008.''.

[[Page 2419]]
120 STAT. 2419

SEC. 1207. AUTHORITY FOR DISTRIBUTION TO CERTAIN FOREIGN PERSONNEL
OF EDUCATION AND TRAINING MATERIALS AND
INFORMATION TECHNOLOGY TO ENHANCE
MILITARY INTEROPERABILITY.

(a) Distribution Authorized.--To enhance interoperability between
the Armed Forces and military forces of friendly foreign countries, the
Secretary of Defense may--
(1) provide to personnel referred to in subsection (b)
electronically-distributed learning content for the education
and training of such personnel for the development and
enhancement of allied and friendly military capabilities for
multinational operations, including joint exercises and
coalition operations; and
(2) provide information technology, including computer
software developed for such purpose, but only to the extent
necessary to support the use of such learning content for the
education and training of such personnel.

(b) Authorized Recipients.--The personnel to whom learning content
and information technology may be provided under subsection (a) are
military and civilian personnel of a friendly foreign government, with
the permission of that government.
(c) Education and Training.--Any education and training provided
under subsection (a) shall include the following:
(1) Internet-based education and training.
(2) Advanced distributed learning and similar Internet
learning tools, as well as distributed training and computer
assisted exercises.

(d) Secretary of State Concurrence in Certain Activities.--In the
case of any activity proposed to be undertaken under this section that
is not authorized by another provision of law, the Secretary of Defense
may undertake such activity only with the concurrence of the Secretary
of State.
(e) Applicability of Export Control Regimes.--The provision of
learning content and information technology under this section shall be
subject to the provisions of the Arms Export Control Act (22 U.S.C. 2751
et seq.) and any other export control regime under law relating to the
transfer of military technology to foreign nations.
(f) Secretary of Defense Guidance.--
(1) Guidance required.--The Secretary of Defense shall
develop and issue guidance on the procedures for the use of the
authority provided in this section.
(2) Submittal NOTE: Deadline. Reports. to congressional
committees.--Not later than 30 days after issuing the guidance
required by paragraph (1), the Secretary shall submit to the
Committees on Armed Services of the Senate and House of
Representatives a report setting forth such guidance.
(3) Modification.--If NOTE: Reports. Deadline. the
Secretary modifies the guidance issued under paragraph (1), the
Secretary shall submit to the committees named in paragraph (2)
a report setting forth the modified guidance not later than 30
days after the date of such modification.

(g) Annual Report.--
(1) Report required.--Not later than October 31 of 2007 and
2008, the Secretary of Defense shall submit to the committees
named in subsection (f)(1) a report on the exercise of

[[Page 2420]]
120 STAT. 2420

the authority provided in this section during the preceding
fiscal year.
(2) Elements.--Each report under paragraph (1) shall
include, for the fiscal year covered by such report, the
following:
(A) A statement of the recipients of learning
content and information technology provided under this
section.
(B) A description of the type, quantity, and value
of the learning content and information technology
provided under this section.

(h) Termination.--The authority provided in this section shall
expire on September 30, 2008.

Subtitle B--Nonproliferation Matters and Countries of Concern

SEC. 1211. NORTH KOREA.

(a) Coordinator of Policy on North Korea.--
(1) Appointment required.--
Not NOTE: Deadline. President. later than 60 days after the
date of the enactment of this Act, the President shall appoint a
senior presidential coordinator of United States policy on North
Korea.
(2) Designation.--The individual appointed under paragraph
(1) may be known as the ``North Korea Policy Coordinator'' (in
this subsection referred to as the ``Coordinator)''.
(3) Duties.--The Coordinator shall--
(A) conduct a full and complete interagency review
of United States policy toward North Korea;
(B) consult with foreign governments, including the
parties to the Six Party Talks on the denuclearization
of the Korean peninsula; and
(C) provide policy direction and leadership for
negotiations with North Korea relating to nuclear
weapons, ballistic missiles, and other security matters.
(4) Report.--Not later than 90 days after the date of the
appointment of an individual as Coordinator under paragraph (1),
the Coordinator shall submit to the President and Congress an
unclassified report, with a classified annex if necessary, on
the actions undertaken under paragraph (3). The report shall set
forth--
(A) the results of the review under paragraph
(3)(A); and
(B) any other matter on North Korea that the
Coordinator considers appropriate.
(5) Termination.--The position under this subsection shall
terminate no later than December 31, 2011.

(b) Semiannual Reports on Nuclear and Missile Programs of North
Korea.--
(1) Reports NOTE: President. required.--Not later than
90 days after the date of the enactment of this Act, and every
180 days thereafter for fiscal years 2007 and 2008, the
President shall transmit to Congress an unclassified report,
with a classified annex as appropriate, on the nuclear program
and the missile program of North Korea.
(2) Matters to be included.--Each report under paragraph (1)
shall include the following:

[[Page 2421]]
120 STAT. 2421

(A) The most current national intelligence estimate
on the nuclear program and the missile program of North
Korea and, consistent with the protection of
intelligence sources and methods, an unclassified
summary of the key judgments in that estimate.
(B) The most current unclassified United States
Government assessment, stated as a range if necessary,
of--
(i) the number of nuclear weapons possessed by
North Korea; and
(ii) the amount of nuclear material suitable
for weapons use produced by North Korea by
plutonium reprocessing and uranium enrichment.
(C) Any other matter relating to the nuclear program
or missile program of North Korea that the President
considers appropriate.
SEC. 1212. REPORT ON PARTICIPATION OF MULTINATIONAL PARTNERS IN
THE UNITED NATIONS COMMAND IN THE
REPUBLIC OF KOREA.

(a) Report Required.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Defense, in coordination with
the Secretary of State, shall submit to the appropriate committees of
Congress a report on participation of multinational partners in the
United Nations Command in the Republic of Korea.
(b) Elements.--The report required by subsection (a) shall include
the following:
(1) A list of the nations that are current members of the
United Nations Command in the Republic of Korea, together with a
detailed description of the role and participation of each such
member nation in the responsibilities and activities of the
United Nations Command.
(2) A detailed description of efforts being undertaken by
the United States to encourage enhanced participation in the
responsibilities and activities of the United Nations Command in
the Republic of Korea by such member nations.
(3) A discussion of how members of the United Nations
Command in the Republic of Korea might be persuaded to increase
their contribution of military forces stationed in the Republic
and an assessment of how United States political-military
requirements in the Republic of Korea might be affected by such
increases.
(4) An assessment of how the contribution of additional
military forces by a member of the United Nations Command might
affect that member's approach to facilitating a diplomatic
resolution of the nuclear challenge posed by the Democratic
People's Republic of Korea.

(c) Form.--The report required by subsection (a) shall be submitted
in unclassified form, but may include a classified annex.
(d) Appropriate Committees of Congress Defined.--In this section,
the term ``appropriate committees of Congress'' means--
(1) the Committees on Armed Services and Foreign Relations
of the Senate; and
(2) the Committees on Armed Services and International
Relations of the House of Representatives.

[[Page 2422]]
120 STAT. 2422

SEC. 1213. INTELLIGENCE ON IRAN.

(a) Submittal to Congress of Updated National Intelligence Estimate
on Iran.--
(1) Submittal required.--The Director of National
Intelligence shall submit to Congress an updated, comprehensive
National Intelligence Estimate on Iran. NOTE: Deadline. Such
National Intelligence Estimate shall be submitted as soon as is
practicable, but not later than the end of the 90-day period
beginning on the date of the enactment of this Act.
(2) Notice NOTE: Reports. regarding submittal.--If
before the end of the 90-day period specified in paragraph (1)
the Director determines that the National Intelligence Estimate
required by that paragraph cannot be submitted by the end of
that period as required by that paragraph, the Director shall
(before the end of that period) submit to Congress a report
setting forth--
(A) the reasons why the National Intelligence
Estimate cannot be submitted by the end of such 90-day
period; and
(B) an estimated date for the submittal of the
National Intelligence Estimate.
(3) Form.--The National Intelligence Estimate under
paragraph (1) shall be submitted in classified form. Consistent
with the protection of intelligence sources and methods, an
unclassified summary of the key judgments of the National
Intelligence Estimate should be submitted.

(b) Presidential Report on Policy Objectives and United States
Strategy Regarding Iran.--
(1) Report required.--As soon as is practicable, but not
later than 90 days after the date of the enactment of this Act,
the President shall submit to Congress a report on--
(A) the objectives of United States policy on Iran;
and
(B) the strategy for achieving those objectives.
(2) Form.--The report under paragraph (1) shall be submitted
in unclassified form with a classified annex, as appropriate.
(3) Elements.--The report submitted under paragraph (1)
shall--
(A) address the role of diplomacy, incentives,
sanctions, other punitive measures and incentives, and
other programs and activities relating to Iran for which
funds are provided by Congress; and
(B) summarize United States contingency planning
regarding the range of possible United States military
actions in support of United States policy objectives
with respect to Iran.
SEC. 1214. SENSE OF CONGRESS ON UNITED STATES POLICY ON THE
NUCLEAR PROGRAMS OF IRAN.

Congress--
(1) endorses the policy of the United States to achieve a
successful diplomatic outcome, in coordination with leading
members of the international community, with respect to the
threat posed by the efforts of the Iranian regime to acquire a
capability to produce nuclear weapons;
(2) calls on Iran to--

[[Page 2423]]
120 STAT. 2423

(A) suspend fully and verifiably its enrichment and
reprocessing activities, as required by the
International Atomic Energy Agency (IAEA); and
(B) work with the international community to achieve
a negotiated outcome to the concerns regarding its
nuclear program;
(3) in the event Iran fails to comply with United Nations
Security Council Resolution 1696 (July 31, 2006), urges the
Security Council to work for the adoption of appropriate
measures under Article 41 of Chapter VII of the Charter of the
United Nations; and
(4) urges the President and the Secretary of State to keep
Congress fully and currently informed regarding the progress of
this vital diplomatic initiative.

Subtitle C--Other Matters

SEC. 1221. EXCLUSION OF PETROLEUM, OIL, AND LUBRICANTS FROM
LIMITATIONS ON ANNUAL AMOUNT OF
LIABILITIES THE UNITED STATES MAY ACCRUE
UNDER ACQUISITION AND CROSS-SERVICING
AGREEMENTS.

(a) Exclusion.--Section 2347 of title 10, United States Code, is
amended--
(1) in subsection (a), by striking ``(other than petroleum,
oils, and lubricants)'' in paragraphs (1) and (2); and
(2) by adding at the end the following new subsection:

``(d) The amount of any sale, purchase, or exchange of petroleum,
oils, or lubricants by the United States under this subchapter in any
fiscal year shall be excluded in any computation for the purposes of
subsection (a) or (b) of the amount of reimbursable liabilities or
reimbursable credits that the United States accrues under this
subchapter in that fiscal year.''.
(b) NOTE: 10 USC 2347 note. Effective Date.--The amendments made
by subsection (a) shall take effect beginning with fiscal year 2007.

(c) Reports.--Not later than October 31 of 2007 and 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 exercise during the preceding fiscal
year of the authority provided in subchapter I of chapter 138 of title
10, United States Code, with respect to the sale, purchase, or exchange
of petroleum, oil, or lubricants. Each report shall identify each
country involved in a sale, purchase, or exchange of petroleum, oil, or
lubricants with the United States and include a description, by country,
of the type, quantity, and value of the petroleum, oil, and lubricants
that were sold, purchased, or exchanged by the United States.
SEC. 1222. MODIFICATION OF LIMITATIONS ON ASSISTANCE UNDER THE
AMERICAN SERVICEMEMBERS' PROTECTION ACT
OF 2002.

Section 2013(13)(A) of the American Servicemembers' Protection Act
of 2002 (22 U.S.C. 7432(13)(A)) is amended by striking ``or 5''.
SEC. 1223. HUMANITARIAN SUPPORT FOR IRAQI CHILDREN IN URGENT NEED
OF MEDICAL CARE.

(a) Findings.--Congress makes the following findings:

[[Page 2424]]
120 STAT. 2424

(1) The Secretary of Defense has discretionary authority to
permit space-available travel on military aircraft for various
reasons, including humanitarian purposes.
(2) Recently, 110 Iraqi children journeyed 22 hours by bus
from Baghdad, Iraq, to Amman, Jordan, for urgently needed oral/
facial surgery. While traveling, armed insurgents stopped and
boarded the children's bus, raising serious questions about the
safety of further travel by ground.
(3) Pursuant to the Secretary's discretionary authority
referred to in paragraph (1), the Secretary authorized the Iraqi
children to travel on military aircraft for their return trip
from Amman to Baghdad.
(4) The Secretary is to be commended for his initiative in
providing for the safe return of these children to Iraq by
military aircraft.

(b) Sense of Congress.--It is the sense of Congress that the
Secretary of Defense should continue to provide space-available travel
on military aircraft for humanitarian reasons to Iraqi children who
would otherwise have no means available to seek urgently needed medical
care such as that provided by a humanitarian organization in Amman,
Jordan.
SEC. 1224. SENSE OF CONGRESS OPPOSING THE GRANTING OF AMNESTY BY
THE GOVERNMENT OF IRAQ TO PERSONS KNOWN
TO HAVE ATTACKED, KILLED, OR WOUNDED
MEMBERS OF THE UNITED STATES ARMED
FORCES IN IRAQ.

(a) Findings.--Congress makes the following findings:
(1) The Armed Forces of the United States and coalition
military forces are serving heroically in Iraq to provide all
the people of Iraq a better future.
(2) The Armed Forces of the United States and coalition
military forces have served bravely in Iraq since the beginning
of military operations in March of 2003.
(3) As of June 15, 2006, more than 2,500 members of the
Armed Forces of the United States and members of coalition
military forces have been killed and more than 18,000 have been
injured in operations to bring peace and stability to all the
people of Iraq.

(b) Sense of Congress.--
(1) Iraqi sovereignty.--It is the sense of Congress that the
goal of the United States and of the coalition partners of the
United States has been to empower the Iraqi people and, in doing
so, to recognize their freedom to exercise full sovereignty.
(2) Amnesty.--Recognizing the sovereignty of the Iraqi
people as referred to in paragraph (1), it is further the sense
of Congress that the Government of Iraq, consistent with that
sovereignty, should not grant amnesty to persons known to have
attacked, killed, or wounded members of the Armed Forces of the
United States.
SEC. 1225. NOTE: President. ANNUAL REPORTS ON UNITED STATES
CONTRIBUTIONS TO THE UNITED NATIONS.

(a) Annual Report.--Not later than 90 days after the date of the
enactment of this Act and annually thereafter until December 31, 2010,
the President shall submit to Congress a report listing all assessed and
voluntary contributions of the United States

[[Page 2425]]
120 STAT. 2425

Government for the preceding fiscal year to the United Nations and
United Nations affiliated agencies and related bodies.
(b) Contents.--Each report required under subsection (a) shall set
forth, for the fiscal year covered by such report, the following:
(1) The total amount of all assessed and voluntary
contributions of the United States Government to the United
Nations and United Nations affiliated agencies and related
bodies.
(2) The approximate percentage of United States Government
contributions to each United Nations affiliated agency or body
in such fiscal year when compared with all contributions to such
agency or body from any source in such fiscal year.
(3) For each such contribution--
(A) the amount of such contribution;
(B) a description of such contribution (including
whether assessed or voluntary);
(C) the department or agency of the United States
Government responsible for such contribution;
(D) the purpose of such contribution; and
(E) the United Nations or United Nations affiliated
agency or related body receiving such contribution.
SEC. 1226. COMPREHENSIVE REGIONAL STRATEGY AND ANNUAL REPORTS ON
SOMALIA.

(a) Sense of Congress.--It is the sense of Congress that the United
States should--
(1) support--
(A) the establishment of a functional, legitimate,
and unified national government in Somalia;
(B) humanitarian assistance to the people of
Somalia;
(C) efforts to prevent Somalia from becoming a safe
haven for terrorists and terrorist activities; and
(D) regional stability;
(2) broaden and integrate its strategic approach toward
Somalia within the context of United States policy and
activities in the countries of the Horn of Africa and other
relevant countries on the Arabian Peninsula; and
(3) coordinate and carry out all diplomatic, humanitarian,
counterterrorism, and security-related activities in Somalia
within the framework of an interagency process.

(b) Comprehensive Regional Strategy.--
(1) In general.--Not NOTE: President. later than 90 days
after the date of the enactment of this Act, the President shall
submit to the appropriate congressional committees a report on a
comprehensive regional strategy toward Somalia within the
context of United States policy and activities in the countries
of the Horn of Africa and other relevant countries on the
Arabian Peninsula.
(2) Components.--The comprehensive regional strategy
described in the report shall include the following components:
(A) A clearly stated policy towards Somalia that
will help establish a functional, legitimate, and
unified national government in Somalia that is capable
of maintaining the rule of law and preventing Somalia
from becoming a safe haven for terrorists.
(B) A description of the type and form of bilateral,
regional, and multilateral efforts to coordinate and
strengthen diplomatic engagement with Somalia.

[[Page 2426]]
120 STAT. 2426

(C) A description of an integrated political,
humanitarian, intelligence, and military approach to
counter transnational security threats in Somalia and
throughout the countries of the Horn of Africa.
(D) A description of an interagency framework
involving the Federal agencies and departments of the
United States to plan, coordinate, and execute United
States policy and activities in Somalia and throughout
the countries of the Horn of Africa and to oversee
policy and program implementation.
(E) Guidance on the manner in which the
comprehensive regional strategy will be implemented.

(c) Annual NOTE: President. Reports.--Not later than April 1,
2007, and annually thereafter until April 1, 2010, the President shall
submit to the appropriate congressional committees a report on the
status of the implementation of the comprehensive regional strategy
toward Somalia required under subsection (b).

(d) Form.--Each report under this section, including the
comprehensive regional strategy, shall be submitted in unclassified
form, but may include a classified annex, as appropriate.
(e) Appropriate Congressional Committees Defined.--In this section,
the term ``appropriate congressional committees'' means--
(1) the Committee on Armed Services, the Committee on
International Relations, and the Permanent Select Committee on
Intelligence of the House of Representatives; and
(2) the Committee on Armed Services, the Committee on
Foreign Relations, and the Select Committee on Intelligence of
the Senate.
SEC. 1227. REPORT ON THE IMPLEMENTATION OF THE DARFUR PEACE
AGREEMENT.

(a) Requirement for Reports.--Not later than 90 days after the date
of the enactment of this Act and every six months thereafter until
December 31, 2011, the Secretary of Defense, in coordination with the
Secretary of State, shall submit to the appropriate congressional
committees a report on the implementation of the Darfur Peace Agreement
of May 5, 2006, and the contributions of the Department of Defense to
the North Atlantic Treaty Organization in support of the African Union
Mission in Sudan (AMIS).
(b) Contents.--Each report under subsection (a) shall include--
(1) a description of major violations of the Darfur Peace
Agreement and major delays in implementing the Agreement,
including violations and delays relating to the demobilization
and disarmament of the Janjaweed, the voluntary safe return of
internally displaced persons and refugees, and security and
access for humanitarian supply routes;
(2) an assessment of the extent to which the Ceasefire
Commission and the AMIS are able to monitor the implementation
of the Darfur Peace Agreement and an assessment of efforts to
impede the monitoring activities of the Ceasefire Commission and
AMIS;
(3) a list of contributions made by the Department of
Defense in support of NATO assistance to AMIS and the United
Nations peacekeeping operation authorized for Darfur;

[[Page 2427]]
120 STAT. 2427

(4) a description of the activities carried out by United
States Armed Forces in support of NATO assistance to AMIS and
the United Nations peacekeeping operation authorized for Darfur;
(5) the amount of funds expended by the Department of
Defense in support of NATO assistance to AMIS; and
(6) a description of the efforts by the United States to
obtain troop contributions from other countries to serve in the
United Nations peacekeeping operation authorized for Darfur.

(c) Form and Availability of Reports.--
(1) Form.--Reports submitted under this section shall be in
an unclassified form and may include a classified annex.
(2) Availability.--The NOTE: Public
information. unclassified portion of such reports shall be
made available to the public.

(d) Appropriate Congressional Committees Defined.--In this section,
the term ``appropriate committees of Congress'' means--
(1) the Committee on Armed Services and the Committee on
International Relations of the House of Representatives; and
(2) the Committee on Armed Services and the Committee on
Foreign Relations of the Senate.
SEC. 1228. SENSE OF CONGRESS CONCERNING COOPERATION WITH RUSSIA ON
ISSUES PERTAINING TO MISSILE DEFENSE.

It is the sense of Congress that--
(1) cooperation between the United States and Russia with
regard to missile defense is in the interest of the United
States;
(2) there does not exist strong enough engagement between
the United States and Russia with respect to missile defense
cooperation;
(3) the United States should explore innovative and
nontraditional means of cooperation with Russia on issues
pertaining to missile defense; and
(4) as part of such an effort, the Secretary of Defense
should consider the possibilities for United States-Russian
cooperation with respect to missile defense through--
(A) the testing of specific elements of the
detection and tracking equipment of the Missile Defense
Agency of the United States Department of Defense
through the use of Russian target missiles; and
(B) the provision of early warning radar to the
Missile Defense Agency by the use of Russian radar data.
SEC. 1229. SENSE OF CONGRESS CALLING FOR CONVENING OF A SUMMIT FOR
A COMPREHENSIVE POLITICAL AGREEMENT FOR
IRAQ.

(a) In General.--It is the sense of Congress that the President
should continue working with the Government of Iraq and the United
Nations to convene a summit as soon as possible after the enactment of
this Act for the purpose of reaching a comprehensive political agreement
for Iraq--
(1) that promotes the Government of Iraq's National
Reconciliation and Dialogue Plan of June 25, 2006, which is
designed to focus on many of the fundamental questions dividing
Iraqis; and
(2) that address the issues of--

[[Page 2428]]
120 STAT. 2428

(A) federalism;
(B) the equitable distribution of oil revenues;
(C) the demobilization and reintegration of armed
militias
(D) the inducement of the armed opposition to lay
down their arms and join the political process, and
(E) the building of a renewed international
partnership with Iraq aimed at encouraging the economic
recovery and reconstruction of Iraq.

(b) Summit Participants.--A summit convened for the purpose stated
in subsection (a) should include the following participants (as well as
other appropriate participants):
(1) Representatives of Iraq's neighbors.
(2) Representatives of the Arab League.
(3) The Secretary General of the North Atlantic Treaty
Organization.
(4) Representatives of the European Union.
(5) Leaders of the governments of each permanent member of
the United Nations Security Council.
SEC. 1230. SENSE OF CONGRESS ON THE COMMENDABLE ACTIONS OF THE
ARMED FORCES IN IRAQ.

(a) Findings.--Congress makes the following findings:
(1) On June 7, 2006, the United States Armed Forces carried
out an air strike near the City of Baquba, northeast of Baghdad,
Iraq, that resulted in the death of Ahmad Fadeel al-Nazal al-
Khalayleh, better known as Abu Musab al-Zarqawi, the leader of
the al-Qaeda in Iraq terrorist organization and the most wanted
terrorist in Iraq.
(2) Zarqawi, as the operational commander of al-Qaeda in
Iraq, led a brutal campaign of suicide bombings, car bombings,
assassinations, and abductions that caused the deaths of many
members of the United States Armed Forces, civilian officials of
the United States Government, thousands of innocent Iraqi
civilians, and innocent civilians of other nations.
(3) Zarqawi publicly swore his allegiance to Osama bin Laden
and al-Qaeda in 2004, and changed the name of his terrorist
organization from the ``Monotheism and Holy War Group'' to ``al-
Qaeda in Iraq''.
(4) In an audiotape broadcast in December 2004, Osama bin
Laden, the leader of al-Qaeda's worldwide terrorist
organization, called Zarqawi ``the prince of al-Qaeda in Iraq''.
(5) Three perpetrators confessed to being paid by Zarqawi to
carry out the October 2002 assassination of the United States
diplomat, Lawrence Foley, in Amman, Jordan.
(6) The Monotheism and Holy War Group claimed responsibility
for--
(A) the August 2003 suicide attack that destroyed
the United Nations headquarters in Baghdad and killed
the United Nations envoy to Iraq, Sergio Vieira de
Mello, along with 21 other people; and
(B) the suicide attack on the Imam Ali Mosque in
Najaf that occurred less than two weeks later, which
killed at least 85 people, including the Ayatollah Sayed
Mohammed Baqr al-Hakim, and wounded dozens more.

[[Page 2429]]
120 STAT. 2429

(7) Zarqawi is believed to have personally beheaded American
hostage Nicholas Berg in May 2004.
(8) In May 2004, Zarqawi was implicated in a car bombing
that killed Izzadine Salim, the rotating president of the Iraqi
Governing Council.
(9) In November 2005, al-Qaeda in Iraq attacked three hotels
in Amman, Jordan, killing at least 67 innocent civilians.
(10) Zarqawi and his terrorist organization were directly
responsible for numerous other brutal terrorist attacks against
the American and coalition forces, Iraqi security forces and
recruits, and innocent Iraqi civilians.
(11) Zarqawi sought to turn Iraq into a safe haven for al-
Qaeda.
(12) To achieve that end, Zarqawi stated his opposition to
the democratically elected government of Iraq and worked to
divide the Iraqi people, foment sectarian violence, and incite a
civil war in Iraq.
(13) The members of the United States Armed Forces, the
intelligence community, and other Federal agencies, along with
coalition partners and the Iraqi Security Forces, should be
commended for their courage and extraordinary efforts to track
down the most wanted terrorist in Iraq and to secure a free and
prosperous future for the people of Iraq.

(b) Sense of Congress.--It is the sense of Congress that Congress--
(1) commends the United States Armed Forces, the
intelligence community, and other Federal agencies, along with
coalition partners, for the actions taken through June 7, 2006,
that resulted in the death of Abu Musab al-Zarqawi, the leader
of the al-Qaeda in Iraq terrorist organization and the most
wanted terrorist in Iraq;
(2) commends the United States Armed Forces, the
intelligence community, and other agencies for the action
referred to in paragraph (1) and their exemplary performance in
striving to bring freedom, democracy, and security to the people
of Iraq;
(3) commends the coalition partners of the United States,
the new government of Iraq, and members of the Iraqi Security
Forces for their invaluable assistance in the operation referred
to in paragraph (1) and their extraordinary efforts to secure a
free and prosperous Iraq;
(4) commends United States civilian and military leadership
for their continuing efforts to eliminate the leadership of al-
Qaeda in Iraq, and also commends the new government of Iraq, led
by Prime Minister Nouri al-Maliki, for its contribution to that
achievement;
(5) recognizes that the death of Abu Musab al-Zarqawi is a
victory for American and coalition forces in the global war on
terror and a blow to the al-Qaeda terrorist organization;
(6) commends Iraqi Prime Minister Nouri al-Maliki on the
finalization of the new Iraqi cabinet;
(7) urges the democratically elected government in Iraq to
use this opportunity to defeat the terrorist enemy, to put an
end to ethnic and sectarian violence, and to achieve a free,
prosperous, and secure future for Iraq; and
(8) affirms that the Congress will continue to support the
United States Armed Forces, the democratically elected unity

[[Page 2430]]
120 STAT. 2430

government of Iraq, and the people of Iraq in their quest to
secure a free, prosperous, and democratic Iraq.
SEC. NOTE: 22 USC 2776a. 1231. ANNUAL REPORT ON FOREIGN SALES
OF SIGNIFICANT MILITARY EQUIPMENT
MANUFACTURED IN THE UNITED STATES.

(a) Report Required.--Not later than March 31 of each year, the
Secretary of Defense shall submit to the congressional defense
committees a report on foreign military sales and direct sales to
foreign entities of significant military equipment manufactured in the
United States during the preceding calendar year.
(b) Contents.--Each report required by subsection (a) shall
indicate, for each sale of significant military equipment in excess of
$2,000,000--
(1) the nature of the equipment and the dollar value of the
sale;
(2) the country to which the equipment was sold; and
(3) the manufacturer of the equipment and the State in which
the equipment was manufactured.

(c) Public Availability.--The Secretary of Defense shall make each
report required by subsection (a) publicly available to the maximum
extent practicable.
(d) Significant Military Equipment Defined.--In this section, the
term ``significant military equipment'' has the meaning given the term
in section 47(9) of the Arms Export Control Act (22 U.S.C. 2794(9)
note).

TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER
SOVIET UNION

Sec. 1301. Specification of Cooperative Threat Reduction programs and
funds.
Sec. 1302. Funding allocations.
Sec. 1303. Extension of temporary authority to waive limitation on
funding for chemical weapons destruction facility in Russia.
Sec. 1304. National Academy of Sciences study of prevention of
proliferation of biological weapons.

SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS
AND FUNDS.

(a) Specification of CTR Programs.--For purposes of section 301 and
other provisions of this Act, Cooperative Threat Reduction programs are
the programs specified in section 1501(b) of the National Defense
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat.
2731; 50 U.S.C. 2362 note).
(b) Fiscal Year 2007 Cooperative Threat Reduction Funds Defined.--As
used in this title, the term ``fiscal year 2007 Cooperative Threat
Reduction funds'' means the funds appropriated pursuant to the
authorization of appropriations in section 301 for Cooperative Threat
Reduction programs.
(c) Availability of Funds.--Funds appropriated pursuant to the
authorization of appropriations in section 301 for Cooperative Threat
Reduction programs shall be available for obligation for three fiscal
years.

[[Page 2431]]
120 STAT. 2431

SEC. 1302. FUNDING ALLOCATIONS.

(a) Funding for Specific Purposes.--Of the $372,128,000 authorized
to be appropriated to the Department of Defense for fiscal year 2007 in
section 301(19) for Cooperative Threat Reduction programs, the following
amounts may be obligated for the purposes specified:
(1) For strategic offensive arms elimination in Russia,
$76,985,000.
(2) For nuclear weapons storage security in Russia,
$87,100,000.
(3) For nuclear weapons transportation security in Russia,
$33,000,000.
(4) For weapons of mass destruction proliferation prevention
in the states of the former Soviet Union, $37,486,000.
(5) For biological weapons proliferation prevention in the
former Soviet Union, $68,357,000.
(6) For chemical weapons destruction in Russia, $42,700,000.
(7) For defense and military contacts, $8,000,000.
(8) For activities designated as Other Assessments/
Administrative Support, $18,500,000.

(b) Report on Obligation or Expenditure of Funds for Other
Purposes.--No fiscal year 2007 Cooperative Threat Reduction funds may be
obligated or expended for a purpose other than a purpose listed in
paragraphs (1) through (8) of subsection (a) until 30 days after the
date that the Secretary of Defense submits to Congress a report on the
purpose for which the funds will be obligated or expended and the amount
of funds to be obligated or expended. Nothing in the preceding sentence
shall be construed as authorizing the obligation or expenditure of
fiscal year 2007 Cooperative Threat Reduction funds for a purpose for
which the obligation or expenditure of such funds is specifically
prohibited under this title or any other provision of law.
(c) Limited Authority to Vary Individual Amounts.--
(1) In general.--Subject to paragraphs (2) and (3), in any
case in which the Secretary of Defense determines that it is
necessary to do so in the national interest, the Secretary may
obligate amounts appropriated for fiscal year 2007 for a purpose
listed in any of the paragraphs in subsection (a) in excess of
the specific amount authorized for that purpose.
(2) Notice-and-wait required.--An obligation of funds for a
purpose stated in any of the paragraphs in subsection (a) in
excess of the specific amount authorized for such purpose may be
made using the authority provided in paragraph (1) only after--
(A) the Secretary submits to Congress notification
of the intent to do so together with a complete
discussion of the justification for doing so; and
(B) 15 days have elapsed following the date of the
notification.
(3) Restriction.--The Secretary may not, under the authority
provided in paragraph (1), obligate amounts for a purpose stated
in any of paragraphs (6) through (8) of subsection (a) in excess
of 125 percent of the specific amount authorized for such
purpose.

[[Page 2432]]
120 STAT. 2432

SEC. 1303. EXTENSION OF TEMPORARY AUTHORITY TO WAIVE LIMITATION ON
FUNDING FOR CHEMICAL WEAPONS DESTRUCTION
FACILITY IN RUSSIA.

Section 1303 of the Ronald W. Reagan National Defense Authorization
Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2094; 22 U.S.C.
5952 note) is amended--
(1) in subsection (a), by striking ``shall not apply for a
calendar year for which the President submits to Congress a
written certification'' and inserting the following: ``shall not
apply for a calendar year to the chemical weapons destruction
facility that is (as of 2006) under construction at Shchuch'ye
in the Russian Federation, if the President submits to Congress
a written certification, for the calendar year concerned,''; and
(2) in subsection (b), by striking ``shall expire'' and all
that follows through the period at the end and inserting ``is
not effective for calendar years after calendar year 2011.''.
SEC. 1304. NATIONAL ACADEMY OF SCIENCES STUDY OF PREVENTION OF
PROLIFERATION OF BIOLOGICAL WEAPONS.

(a) Study Required.--Not later than 60 days after the date of the
enactment of this Act, the Secretary of Defense shall enter into an
arrangement with the National Academy of Sciences under which the
Academy shall carry out a study to identify areas for further
cooperation with Russia and other states of the former Soviet Union
under the Cooperative Threat Reduction (CTR) program of the Department
of Defense in the specific area of prevention of proliferation
biological weapons.
(b) Matters to Be Included in Study.--The Secretary shall provide
for the study under subsection (a) to include the following:
(1) A brief review of any ongoing or previously completed
United States Government program (whether conducted through the
Cooperative Threat Reduction program or otherwise) in the area
of prevention of proliferation of biological weapons.
(2) An identification of further cooperative work between
the United States Government and foreign governments, including
technical scientific cooperation, that could effectively be
pursued in the area of prevention of proliferation of biological
weapons and the objectives that such work would be designed to
achieve.
(3) An identification of any obstacles to designing and
implementing a nonproliferation program (whether conducted
through the Cooperative Threat Reduction program or otherwise)
that could successfully accomplish the objectives identified
pursuant to paragraph (2), together with recommendations for
overcoming such obstacles, including recommendations in the area
of coordination among relevant United States Government
departments and agencies.

(c) Report.--
(1) Secretary of defense report.--Not later than December
31, 2007, the Secretary of Defense shall submit to the Committee
on Armed Services of the Senate and the Committee on Armed
Services of the House of Representatives a report on the study
carried out under subsection (a).
(2) Matters to be incuded.--The report under paragraph (1)
shall incude the following:

[[Page 2433]]
120 STAT. 2433

(A) The results of the study carried out under
subsection (a), including any report received from the
National Academy of Sciences on such study.
(B) An assessment of the study by the Secretary.
(C) an action plan for implementing the
recommendations from the study, if any, that the
Secretary has decided to pursue.
(3) Form of submittal.--The report under paragraph (1) shall
be submitted in unclassified form, but may include a classified
annex.

(d) Funding.--Of the amounts made available pursuant to the
authorization of appropriations in section 301(19) for Cooperative
Threat Reduction programs, not more than $150,000 shall be available to
carry out this section.

TITLE XIV--MATTERS RELATED TO DEFENSE AGAINST TERRORISM AND RELATED
SECURITY MATTERS

Sec. 1401. Enhancement to authority to pay rewards for assistance in
combating terrorism.
Sec. 1402. Quarterly reports on Department of Defense response to threat
posed by improvised explosive devices.
Sec. 1403. Requirement that all military wheeled vehicles used in Iraq
and Afghanistan outside of secure military operating bases be
protected by Improvised Explosive Device (IED) jammers.
Sec. 1404. Report on assessment process of Chairman of the Joint Chiefs
of Staff relating to Global War on Terrorism.
Sec. 1405. Treatment under Freedom of Information Act of certain
confidential information shared with State and local
personnel.
Sec. 1406. Database of emergency response capabilities.

SEC. 1401. ENHANCEMENT TO AUTHORITY TO PAY REWARDS FOR ASSISTANCE
IN COMBATING TERRORISM.

(a) Increase in Delegation Limitation.--Paragraph (2) of section
127b(c) of title 10, United States Code, is amended by striking
``$2,500'' and inserting ``$10,000''.
(b) Expansion of Senior Officers to Whom Combatant Commander
Authority May Be Delegated.--Such paragraph is further amended--
(1) by inserting after ``deputy commander'' the following:
``, or to the commander of a command directly subordinate to
that commander,''; and
(2) by adding at the end the following new sentence: ``Such
a delegation may be made to the commander of a command directly
subordinate to the commander of a combatant command only with
the approval of the Secretary of Defense, the Deputy Secretary
of Defense, or an Under Secretary of Defense to whom authority
has been delegated under subparagraph (1)(A).''.
SEC. 1402. NOTE: 10 USC 113 note. QUARTERLY REPORTS ON
DEPARTMENT OF DEFENSE RESPONSE TO THREAT
POSED BY IMPROVISED EXPLOSIVE DEVICES.

(a) Reports Required.--
(1) Initial report.--Not later than 90 days after the date
of the enactment of this Act, the Secretary of Defense shall
submit to Congress a report--

[[Page 2434]]
120 STAT. 2434

(A) regarding the status of the threat posed to
United States and allied forces in Iraq and Afghanistan
by improvised explosive devices; and
(B) describing efforts being undertaken by the
Department of Defense to defeat that threat.
(2) Supplemental quarterly reports.--After the submission of
the report under paragraph (1), the Secretary shall submit to
Congress a supplemental report, not later than 30 days after the
end of each calendar-year quarter, to account for every reported
incident involving the detonation or discovery of an improvised
explosive device during the preceding quarter that involved
United States or allied forces in Iraq and Afghanistan.
(3) Classification of reports.--Reports under this section
shall be transmitted in an unclassified manner with a classified
annex, if necessary.

(b) Joint IED Defeat Organization and Related Offices.--Each report
under subsection (a) shall provide the following information regarding
the joint entity in the Office of the Secretary of Defense known as the
``Joint IED Defeat Organization'' and those portions of all other
organizational elements within the Department of Defense that are
focused on countering improvised explosive devices:
(1) The number of Department of Defense personnel assigned
to the Joint IED Defeat Organization and each other
organizational element.
(2) The major locations to which such personnel are assigned
and the organizational structure of those elements.
(3) The projected budget of the Joint IED Defeat
Organization and those other elements relating to the counter-
IED mission.
(4) The level of funding required for administrative costs
relating to the counter-IED mission.

(c) Existing Threat and Counter Measures.--Each report under
subsection (a) shall include the following information regarding the
threat posed by improvised explosive devices and the countermeasures
employed to defeat those threats:
(1) The number of improvised explosive devices being
encountered by United States and allied military personnel,
including general trends in tactics and technology used by the
enemy.
(2) Passive countermeasures employed and the success rate of
each such countermeasure.
(3) Active countermeasures employed and the success rate of
each such countermeasure.
(4) Any evidence of assistance to the enemy by foreign
countries or other entities not directly involved in fighting
United States and allied forces in Iraq and Afghanistan.
(5) A summary of data collected and reports generated by the
Department of Defense on efforts to counter improvised explosive
devices in Iraq and Afghanistan and other fronts in the Global
War on Terrorism.

(d) Research, Development, Test, and Evaluation of New
Countermeasures.--Each report under subsection (a) shall include the
following information regarding research, development, test, and
evaluation activities relating to new active and passive countermeasures
and any impediments to those activities:

[[Page 2435]]
120 STAT. 2435

(1) The status of any effort within the Department of
Defense to conduct research, development, test, and evaluation
of passive and active countermeasures and to accelerate the
introduction of those countermeasures into deployed units.
(2) Impediments to introduction of new passive and active
countermeasures.

(e) Interdiction Efforts.--
(1) Description of interdiction efforts.--Each report under
subsection (a) shall identify those portions of any office
within the Department of Defense (in addition to those discussed
pursuant to subsection (b)) that are focused on interdiction of
improvised explosive devices, together with the personnel and
funding requirements for that office (as specified in subsection
(b)) and the success of the interdiction efforts of that office.
(2) Interdiction defined.--For purposes of this subsection,
the term ``interdiction'' includes--
(A) the development of intelligence regarding
persons and locations involved in the manufacture or
deployment of improvised explosive devices; and
(B) subsequent action against those persons or
locations, including efforts to prevent emplacement of
improvised explosive devices.
SEC. 1403. REQUIREMENT THAT ALL MILITARY WHEELED VEHICLES USED IN
IRAQ AND AFGHANISTAN OUTSIDE OF SECURE
MILITARY OPERATING BASES BE PROTECTED BY
IMPROVISED EXPLOSIVE DEVICE (IED)
JAMMERS.

(a) Requirement.--The Secretary of Defense shall take such steps as
necessary to ensure that by the end of fiscal year 2007 all United
States military wheeled vehicles used in Iraq and Afghanistan outside of
secure military operating bases are protected by Improvised Explosive
Device (IED) jammers.
(b) Funding.--The Secretary shall carry out subsection (a) using
funds provided pursuant to authorizations of appropriations in title XV.
(c) Report.--Not later than December 15, 2006, the Secretary of
Defense shall submit to the congressional defense committees a report on
the cost and timeline to complete compliance with the requirement in
subsection (a) that by the end of fiscal year 2007 each vehicle
described in that subsection be protected by an Improvised Explosive
Device jammer.
SEC. 1404. REPORT ON ASSESSMENT PROCESS OF CHAIRMAN OF THE JOINT
CHIEFS OF STAFF RELATING TO GLOBAL WAR
ON TERRORISM.

Not later than March 1, 2007, the Secretary of Defense shall submit
to the Committee on Armed Services of the Senate and the Committee on
Armed Services of the House of Representatives a report on the findings
of the semiannual assessment process relating to the Global War on
Terrorism that is described in the annex to the National Military
Strategic Plan for the War on Terrorism, issued by the Secretary of
Defense on February 1, 2006, that is designated as the Implementation
and Assessment Annex (Annex R).

[[Page 2436]]
120 STAT. 2436

SEC. 1405. TREATMENT UNDER FREEDOM OF INFORMATION ACT OF CERTAIN
CONFIDENTIAL INFORMATION SHARED WITH
STATE AND LOCAL PERSONNEL.

(a) In General.--Chapter 3 of title 10, United States Code, is
amended by adding at the end the following new section:

``Sec. 130d. Treatment under Freedom of Information Act of certain
confidential information shared with State and
local personnel

``Confidential business information and other sensitive but
unclassified homeland security information in the possession of the
Department of Defense that is shared, pursuant to section 892 of the
Homeland Security Act of 2002 (6 U.S.C. 482), with State and local
personnel (as defined in such section) shall not be subject to
disclosure under section 552 of title 5 by virtue of the sharing of such
information with such personnel.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``130d. Treatment under Freedom of Information Act of certain
confidential information shared with State and local
personnel.''.

SEC. 1406. NOTE: 10 USC 113 note. DATABASE OF EMERGENCY
RESPONSE CAPABILITIES.

The Secretary of Defense shall maintain a database of emergency
response capabilities that includes the following:
(1) The types of emergency response capabilities that each
State's National Guard, as reported by the States, may be able
to provide in response to a domestic natural or manmade
disaster, both to their home States and under State-to-State
mutual assistance agreements.
(2) The types of emergency response capabilities that the
Department of Defense may be able to provide in support of the
National Response Plan's Emergency Support Functions, and
identification of the units that provide these capabilities.

TITLE XV--AUTHORIZATION FOR INCREASED COSTS DUE TO OPERATION IRAQI
FREEDOM AND OPERATION ENDURING FREEDOM

Sec. 1501. Purpose.
Sec. 1502. Army procurement.
Sec. 1503. Navy and Marine Corps procurement.
Sec. 1504. Air Force procurement.
Sec. 1505. Defense-wide activities procurement.
Sec. 1506. Research, development, test, and evaluation.
Sec. 1507. Operation and maintenance.
Sec. 1508. Defense Health Program.
Sec. 1509. Classified programs.
Sec. 1510. Military personnel.
Sec. 1511. Treatment as additional authorizations.
Sec. 1512. Transfer authority.
Sec. 1513. Availability of funds.
Sec. 1514. Joint Improvised Explosive Device Defeat Fund.
Sec. 1515. Iraq Freedom Fund.
Sec. 1516. Iraq Security Forces Fund.
Sec. 1517. Afghanistan Security Forces Fund.
Sec. 1518. Submittal to Congress of Department of Defense supplemental
and cost of war execution reports.

[[Page 2437]]
120 STAT. 2437

Sec. 1519. Limitation on availability of funds for certain purposes
relating to Iraq.
Sec. 1520. Intelligence Community Management Account.

SEC. 1501. PURPOSE.

The purpose of this title is to authorize estimated future emergency
supplemental appropriations for the Department of Defense for fiscal
year 2007 to provide funds for additional costs due to Operation Iraqi
Freedom and Operation Enduring Freedom.
SEC. 1502. ARMY PROCUREMENT.

Funds are hereby authorized to be appropriated for fiscal year 2007
for procurement accounts of the Army in amounts as follows:
(1) For aircraft procurement, $1,524,300,000
(2) For ammunition procurement, $48,591,000.
(3) For weapons and tracked combat vehicles procurement,
$3,022,836,000.
(4) For other procurement, $4,636,810,000.
(5) For missile procurement, $3,200,000.
SEC. 1503. NAVY AND MARINE CORPS PROCUREMENT.

(a) Navy.--Funds are hereby authorized to be appropriated for fiscal
year 2007 for procurement accounts for the Navy in amounts as follows:
(1) For aircraft procurement, $389,465,000
(2) For weapons procurement, $109,400,000.
(3) For other procurement, $14,600,000.

(b) Marine Corps.--Funds are hereby authorized to be appropriated
for fiscal year 2007 for the procurement account for the Marine Corps in
the amount of $4,397,926,000.
(c) Navy and Marine Corps Ammunition.--Funds are hereby authorized
to be appropriated for fiscal year 2007 for the procurement account for
ammunition for the Navy and the Marine Corps in the amount of
$151,439,000.
SEC. 1504. AIR FORCE PROCUREMENT.

Funds are hereby authorized to be appropriated for fiscal year 2007
for procurement accounts for the Air Force in amounts as follows:
(1) For aircraft procurement, $2,174,000,000.
(2) For other procurement, $5,650,000.
SEC. 1505. DEFENSE-WIDE ACTIVITIES PROCUREMENT.

Funds are hereby authorized to be appropriated for fiscal year 2007
for the procurement account for Defense-wide in the amount of
$127,600,000.
SEC. 1506. RESEARCH, DEVELOPMENT, TEST, AND EVALUATION.

Funds are hereby authorized to be appropriated for fiscal year 2007
for the use of the Department of Defense for research, development,
test, and evaluation as follows:
(1) For the Army, $2,639,000.
(2) For the Navy, $7,856,000.
SEC. 1507. OPERATION AND MAINTENANCE.

Funds are hereby authorized to be appropriated for fiscal year 2007
for the use of the Armed Forces for expenses, not otherwise provided
for, for operation and maintenance, in amounts as follows:
(1) For the Army, $28,045,387,000.
(2) For the Navy, $2,007,948,000.

[[Page 2438]]
120 STAT. 2438

(3) For the Marine Corps, $2,257,089,000.
(4) For the Air Force, $2,478,906,000.
(5) For Defense-wide activities, $1,544,614,000.
(6) For the Army National Guard, $221,500,000.
(7) For the Air National Guard, $2,000,000.
(8) For the Army Reserve, $500,000.
SEC. 1508. DEFENSE HEALTH PROGRAM.

Funds are hereby authorized to be appropriated for the Department of
Defense for fiscal year 2007 for expenses, not otherwise provided for,
the Defense Health Program, in the amount of $869,200,000 for operation
and maintenance.
SEC. 1509. CLASSIFIED PROGRAMS.

Funds are hereby authorized to be appropriated to the Department of
Defense for fiscal year 2007 for classified programs, in the amount of
$2,500,000,000.
SEC. 1510. MILITARY PERSONNEL.

There is hereby authorized to be appropriated to the Department of
Defense for military personnel accounts for fiscal year 2007 a total of
$8,106,979,000.
SEC. 1511. TREATMENT AS ADDITIONAL AUTHORIZATIONS.

The amounts authorized to be appropriated by this title are in
addition to amounts otherwise authorized to be appropriated by this Act.
SEC. 1512. TRANSFER AUTHORITY.

(a) Authority To Transfer Authorizations.--
(1) Authority.--Upon determination by the Secretary of
Defense that such action is necessary in the national interest,
the Secretary may transfer amounts of authorizations made
available to the Department of Defense in this title for fiscal
year 2007 between any such authorizations for that fiscal year
(or any subdivisions thereof). Amounts of authorizations so
transferred shall be merged with and be available for the same
purposes as the authorization to which transferred.
(2) Limitation.--The total amount of authorizations that the
Secretary may transfer under the authority of this section may
not exceed $2,500,000,000. The transfer authority provided in
this section is in addition to any other transfer authority
available to the Secretary of Defense.

(b) Limitations.--The authority provided by this section to transfer
authorizations--
(1) may only be used to provide authority for items that
have a higher priority than the items from which authority is
transferred;
(2) may not be used to provide authority for an item that
has been denied authorization by Congress; and
(3) may not be combined with the authority under section
1001.

(c) Effect on Authorization Amounts.--A transfer made from one
account to another under the authority of this section shall be deemed
to increase the amount authorized for the account to which the amount is
transferred by an amount equal to the amount transferred.

[[Page 2439]]
120 STAT. 2439

(d) Notice to Congress.--A transfer may be made under the authority
of this section only after the Secretary of Defense--
(1) consults with the chairmen and ranking members of the
congressional defense committees with respect to the proposed
transfer; and
(2) after such consultation, notifies those committees in
writing of the proposed transfer not less than five days before
the transfer is made.
SEC. 1513. AVAILABILITY OF FUNDS.

Funds in this title shall be made available for obligation to the
Army, Navy, Marine Corps, Air Force, and Defense-wide components by the
end of the second quarter of fiscal year 2007.
SEC. 1514. JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND.

(a) Authorization of Appropriation.--Funds are hereby authorized for
fiscal year 2007 for the Joint Improvised Explosive Device Defeat Fund
in the amount of $2,100,000,000.
(b) Use of Funds.--Funds appropriated pursuant to subsection (a)
shall be available to the Secretary of Defense for the purpose of
allowing the Director of the Joint Improvised Explosive Device Defeat
Organization to investigate, develop, and provide equipment, supplies,
services, training, facilities, personnel, and funds to assist United
States forces in the defeat of improvised explosive devices.
(c) Transfer Authority.--
(1) Transfers authorized.--Amounts authorized to be
appropriated by subsection (a) may be transferred from the Joint
Improvised Explosive Device Defeat Fund to any of the following
accounts and funds of the Department of Defense to accomplish
the purposes provided in subsection (b):
(A) Military personnel accounts.
(B) Operation and maintenance accounts.
(C) Procurement accounts.
(D) Research, development, test, and evaluation
accounts.
(E) Defense working capital funds.
(2) Additional transfer authority.--The transfer authority
provided by paragraph (1) is in addition to any other transfer
authority available to the Department of Defense.
(3) Transfers back to the fund.--Upon determination that all
or part of the funds transferred from the Joint Improvised
Explosive Device Defeat Fund under paragraph (1) are not
necessary for the purpose provided, such funds may be
transferred back to the Joint Improvised Explosive Device Defeat
Fund.
(4) Prior notice to congressional committees.--Funds may not
be obligated from the Joint Improvised Explosive Device Defeat
Fund, or transferred under the authority provided in paragraph
(1), until five days after the date on which the Secretary of
Defense notifies the congressional defense committees in writing
of the details of the proposed obligation or transfer.
(5) Effect on authorization amounts.--A transfer of an
amount to an account under the authority in paragraph (1) shall
be deemed to increase the amount authorized for such account by
an amount equal to the amount transferred.

(d) Management Plan.--

[[Page 2440]]
120 STAT. 2440

(1) Plan required.--Not later than 60 days after the date of
the enactment of this Act, the Secretary shall submit to the
congressional defense committees a plan for the intended
management and use of the Joint Improvised Explosive Device
Defeat Fund.
(2) Matter to be included.--The plan required by paragraph
(1) shall include an update of the plan required in the
paragraph under the heading ``Joint Improvised Explosive Device
Defeat Fund'' in chapter 2 of title I of the Emergency
Supplemental Appropriations Act for Defense, the Global War on
Terror, and Hurricane Recovery, 2006 (Public Law 109-234; 120
Stat. 424), including identification of--
(A) year-to-date transfers and obligations; and
(B) projected transfers and obligations through
September 30, 2007.

(e) Quarterly Reports.--Not later than 30 days after the end of each
fiscal-year quarter, the Secretary shall submit to the congressional
defense committees a report summarizing the detail of any obligation or
transfer of funds from the Joint Improvised Explosive Device Defeat Fund
plan required by subsection (d).
(f) Duration of Authority.--Amounts appropriated to the Fund are
available for obligation or transfer from the Fund until September 30,
2009.
SEC. 1515. IRAQ FREEDOM FUND.

(a) In General.--Funds are hereby authorized to be appropriated for
fiscal year 2007 for the Iraq Freedom Fund in the amount of $50,000,000.
(b) Transfer.--
(1) Transfer authorized.--Subject to paragraph (2), amounts
authorized to be appropriated by subsection (a) may be
transferred from the Iraq Freedom Fund to any accounts as
follows:
(A) Operation and maintenance accounts of the Armed
Forces.
(B) Military personnel accounts.
(C) Research, development, test, and evaluation
accounts of the Department of Defense.
(D) Procurement accounts of the Department of
Defense.
(E) Accounts providing funding for classified
programs.
(F) The operating expenses account of the Coast
Guard.
(2) Notice to congress.--A transfer may not be made under
the authority in paragraph (1) until five days after the date on
which the Secretary of Defense notifies the congressional
defense committees in writing of the transfer.
(3) Treatment of transferred funds.--Amounts transferred to
an account under the authority in paragraph (1) shall be merged
with amounts in such account and shall be made available for the
same purposes, and subject to the same conditions and
limitations, as amounts in such account.
(4) Effect on authorization amounts.--A transfer of an
amount to an account under the authority in paragraph (1) shall
be deemed to increase the amount authorized for such account by
an amount equal to the amount transferred.

[[Page 2441]]
120 STAT. 2441

SEC. 1516. IRAQ SECURITY FORCES FUND.

(a) Authorization of Appropriations.--Funds are hereby authorized to
be appropriated for fiscal year 2007 for the Iraq Security Forces Fund
in the amount of $1,734,000,000.
(b) Use of Funds.--
(1) In general.--Funds appropriated pursuant to subsection
(a) shall be available to the Secretary of Defense for the
purpose of allowing the Commander, Multi-National Security
Transition Command--Iraq, to provide assistance to the security
forces of Iraq.
(2) Types of assistance authorized.--Assistance provided
under this section may include the provision of equipment,
supplies, services, training, facility and infrastructure
repair, renovation, construction, and funding.
(3) Secretary of state concurrence.--Assistance may be
provided under this section only with the concurrence of the
Secretary of State.

(c) Authority in Addition to Other Authorities.--The authority to
provide assistance under this section is in addition to any other
authority to provide assistance to foreign nations.
(d) Transfer Authority.--
(1) Transfers authorized.--Subject to paragraph (2), amounts
authorized to be appropriated by subsection (a) may be
transferred from the Iraq Security Forces Fund to any of the
following accounts and funds of the Department of Defense to
accomplish the purposes provided in subsection (b):
(A) Military personnel accounts.
(B) Operation and maintenance accounts.
(C) Procurement accounts.
(D) Research, development, test, and evaluation
accounts.
(E) Defense working capital funds.
(F) Overseas Humanitarian, Disaster, and Civic Aid
account.
(2) Additional authority.--The transfer authority provided
by paragraph (1) is in addition to any other transfer authority
available to the Department of Defense.
(3) Transfers back to the fund.--Upon determination that all
or part of the funds transferred from the Iraq Security Forces
Fund under paragraph (1) are not necessary for the purpose
provided, such funds may be transferred back to the Iraq
Security Forces Fund.
(4) Prior notice to congressional committees.--Funds may not
be obligated from the Iraq Security Forces Fund, or transferred
under the authority provided in paragraph (1), until five days
after the date on which the Secretary of Defense notifies the
congressional defense committees in writing of the details of
the proposed obligation or transfer.
(5) Effect on authorization amounts.--A transfer of an
amount to an account under the authority in paragraph (1) shall
be deemed to increase the amount authorized for such account by
an amount equal to the amount transferred.

(e) Contributions.--
(1) Authority to accept contributions.--Contributions of
funds for the purposes provided in subsection (b) from any
person, foreign government, or international organization may

[[Page 2442]]
120 STAT. 2442

be credited to the Iraq Security Forces Fund and used for the
purposes provided in subsection (b).
(2) Limitation.--The Secretary may not accept a contribution
under this subsection if the acceptance of the contribution
would compromise or appear to compromise the integrity of any
program of the Department of Defense.
(3) Notification.--The Secretary shall notify the
congressional defense committees in writing upon the receipt and
upon the transfer of any contribution. Such notice shall
delineate the sources and amounts of the funds received and the
specific use of such contributions.

(f) Quarterly Reports.--Not later than 30 days after the end of each
fiscal-year quarter, the Secretary shall submit to the congressional
defense committees a report summarizing the details of any obligation or
transfer of funds from the Iraq Security Forces Fund during the
preceding quarter.
(g) Duration of Authority.--Amounts appropriated or contributed to
the Fund are available for obligation or transfer from the Iraq Security
Forces Fund until September 30, 2008.
SEC. 1517. AFGHANISTAN SECURITY FORCES FUND.

(a) Authorization of Appropriations.--Funds are hereby authorized to
be appropriated for fiscal year 2007 for the Afghanistan Security Forces
Fund in the amount of $1,446,300,000.
(b) Use of Funds.--
(1) In general.--Funds appropriated pursuant to subsection
(a) shall be available to the Secretary of Defense for the
purpose of allowing the Commander, Office of Security
Cooperation--Afghanistan, to provide assistance to the security
forces of Afghanistan.
(2) Types of assistance authorized.--Assistance provided
under this section may include the provision of equipment,
supplies, services, training, facility and infrastr