[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2767 Placed on Calendar Senate (PCS)]


                                                       Calendar No. 427
109th CONGRESS
  2d Session
                                S. 2767

     To authorize appropriations for fiscal year 2007 for military 
    activities of the Department of Defense, to prescribe personnel 
  strengths for such fiscal year for the Armed Forces, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 9, 2006

    Mr. Warner, from the Committee on Armed Services, reported the 
    following original bill; which was read twice and placed on the 
                                calendar

_______________________________________________________________________

                                 A BILL


 
     To authorize appropriations for fiscal year 2007 for military 
    activities of the Department of Defense, to prescribe personnel 
  strengths for such fiscal year for the Armed Forces, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Department of Defense Authorization 
Act for Fiscal Year 2007''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Congressional defense committees defined.
                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

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

Sec. 111. Limitation on availability of funds for the Joint Network 
                            Node.
Sec. 112. Comptroller General report on the contract for the Future 
                            Combat Systems program.
Sec. 113. Reports on Army Modularity Initiative.
                       Subtitle C--Navy Programs

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

Sec. 141. Procurement of Joint Primary Aircraft Training System 
                            aircraft after fiscal year 2006.
Sec. 142. Prohibition on retirement of C-130E/H tactical airlift 
                            aircraft.
Sec. 143. Limitation on retirement of KC-135E aircraft.
Sec. 144. Limitation on retirement of B-52H bomber aircraft.
Sec. 145. Retirement of B-52H bomber aircraft.
Sec. 146. Prohibition on incremental funding and multiyear procurement 
                            of F-22A aircraft.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for science and technology.
    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Independent estimate of costs of the Future Combat Systems.
Sec. 212. Funding of defense science and technology programs.
Sec. 213. Hypersonics development.
Sec. 214. Trident sea-launched ballistic missiles.
                  Subtitle C--Missile Defense Programs

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

Sec. 251. Extension of requirement for Global Research Watch Program.
Sec. 252. Expansion and extension of authority to award prizes for 
                            advanced technology achievements.
Sec. 253. Policies and practices on test and evaluation to address 
                            emerging acquisition approaches.
Sec. 254. Development of the propulsion system for the Joint Strike 
                            Fighter.
Sec. 255. Independent cost analyses for Joint Strike Fighter engine 
                            program.
Sec. 256. Sense of Senate on technology sharing of Joint Strike Fighter 
                            technology.
                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Other Department of Defense programs.
    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 311. Limitation on availability of funds for the Army Logistics 
                            Modernization Program.
Sec. 312. Availability of funds for exhibits for the national museums 
                            of the Armed Forces.
Sec. 313. Limitation on financial management improvement and audit 
                            initiatives within the Department of 
                            Defense.
Sec. 314. Limitation on availability of operation and maintenance funds 
                            for the management headquarters of the 
                            Defense Information Systems Agency.
                  Subtitle C--Environmental Provisions

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

Sec. 351. Comptroller General report on readiness of the ground forces 
                            of the Army and the Marine Corps.
                 Subtitle E--Workplace and Depot Issues

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

Sec. 371. Recycling of military munitions.
Sec. 372. Incentives clauses in chemical demilitarization contracts.
Sec. 373. Extension of Department of Defense telecommunications benefit 
                            program.
Sec. 374. Extension of availability of funds for commemoration of 
                            success of the Armed Forces in Operation 
                            Enduring Freedom and Operation Iraqi 
                            Freedom.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Repeal of requirement for permanent end strength levels to 
                            support two major regional contingencies.
                       Subtitle B--Reserve Forces

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

Sec. 421. Military personnel.
Sec. 422. Armed Forces Retirement Home.
                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

               Part I--Officer Personnel Policy Generally

Sec. 501. Military status of officers serving in certain intelligence 
                            community positions.
Sec. 502. Extension of temporary reduction of time-in-grade requirement 
                            for eligibility for promotion for certain 
                            active-duty list officers in grades of 
                            first lieutenant and lieutenant (junior 
                            grade).
Sec. 503. Extension of age limits for active-duty general and flag 
                            officers.
Sec. 504. Modification of authorities on senior members of the Judge 
                            Advocate General's Corps.
Sec. 505. Requirement for significant joint experience for officers 
                            appointed as Surgeon General of the Army, 
                            Navy, and Air Force.
Sec. 506. Grade and exclusion from active-duty general and flag officer 
                            distribution and strength limitations of 
                            officer serving as Attending Physician to 
                            the Congress.
Sec. 507. Discretionary separation and retirement of chief warrant 
                            officers, W-4, twice failing selection for 
                            promotion.
Sec. 508. Increased mandatory retirement ages for reserve officers.
                   Part II--Officer Promotion Policy

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

Sec. 526. Modification and enhancement of general authorities on 
                            management of joint qualified officers.
Sec. 527. Modification of promotion policy objectives for joint 
                            officers.
Sec. 528. Applicability of joint duty assignment requirements limited 
                            to graduates of National Defense University 
                            schools.
Sec. 529. Modification of definitions relating to jointness.
            Subtitle B--Reserve Component Personnel Matters

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

Sec. 551. Applicability of Uniform Code of Military Justice to members 
                            of the Armed Forces ordered to active duty 
                            overseas in inactive duty for training 
                            status.
               Subtitle D--Education and Training Matters

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

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

Sec. 581. Administration of oaths.
Sec. 582. Military ID cards for retiree dependents who are permanently 
                            disabled.
Sec. 583. Military voting matters.
Sec. 584. Presentation of Medal of Honor Flag to primary next of kin of 
                            Medal of Honor recipients.
Sec. 585. Modification of effective period of authority to present 
                            recognition items for recruitment and 
                            retention purposes.
Sec. 586. Military Severely Injured Center.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Fiscal year 2007 increase in military basic pay and reform of 
                            basic pay rates.
Sec. 602. Increase in maximum rate of basic pay for general and flag 
                            officer grades.
Sec. 603. Clarification of effective date of prohibition on 
                            compensation for correspondence courses.
Sec. 604. One-year extension of prohibition against requiring certain 
                            injured members to pay for meals provided 
                            by military treatment facilities.
Sec. 605. Additional housing allowance for Reserves on active duty in 
                            support of a contingency operation.
Sec. 606. Extension of temporary continuation of housing allowance for 
                            dependents of members dying on active duty 
                            to spouses who are members of the uniformed 
                            services.
           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Extension of certain bonus and special pay authorities for 
                            reserve forces.
Sec. 612. Extension of certain bonus and special pay authorities for 
                            certain health care professionals.
Sec. 613. Extension of special pay and bonus authorities for nuclear 
                            officers.
Sec. 614. Extension of authorities relating to payment of other bonuses 
                            and special pays.
Sec. 615. Increase in special pay for Selected Reserve health care 
                            professionals in critically short wartime 
                            specialties.
Sec. 616. Expansion and enhancement of accession bonus authorities for 
                            certain officers in health care 
                            specialities.
Sec. 617. Increase in nuclear career accession bonus for nuclear-
                            qualified officers.
Sec. 618. Modification of certain authorities applicable to the 
                            targeted shaping of the Armed Forces.
Sec. 619. Extension of pilot program on contributions to Thrift Savings 
                            Plan for initial enlistees in the Army.
            Subtitle C--Travel and Transportation Allowances

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

Sec. 641. Modification of Department of Defense contributions to 
                            Military Retirement Fund and Government 
                            contributions to Medicare-Eligible Retiree 
                            Health Care Fund.
Sec. 642. Repeal of requirement of reduction of SBP survivor annuities 
                            by dependency and indemnity compensation.
Sec. 643. Effective date of paid-up coverage under Survivor Benefit 
                            Plan.
Sec. 644. Expansion of conditions for direct payment of divisible 
                            retired pay.
Sec. 645. Authority for cost of living adjustments of retired pay 
                            treated as divisible property.
Sec. 646. Notice and copy to members of court orders on payment of 
                            retired pay.
Sec. 647. Retention of assistive technology and devices by certain 
                            members of the Armed Forces after 
                            separation from service.
                       Subtitle E--Other Matters

Sec. 661. Audit of pay accounts of members of the Army evacuated from a 
                            combat zone for inpatient care.
                         TITLE VII--HEALTH CARE

                      Subtitle A--Benefits Matters

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

Sec. 721. Treatment of TRICARE Retail Pharmacy Network under Federal 
                            procurement of pharmaceuticals.
Sec. 722. Relationship between the TRICARE program and employer-
                            sponsored group health care plans.
Sec. 723. Enrollment in the TRICARE program.
Sec. 724. Incentive payments for the provision of services under the 
                            TRICARE program in medically underserved 
                            areas.
Sec. 725. Standardization of claims processing under TRICARE program 
                            and Medicare program.
Sec. 726. Requirements for support of military treatment facilities by 
                            civilian contractors under TRICARE.
Sec. 727. Uniform standards for access to health care services for 
                            wounded or injured servicemembers.
Sec. 728. Disease and chronic care management.
Sec. 729. Post-deployment health assessments for members of the Armed 
                            Forces returning from deployment in support 
                            of a contingency operation.
                    Subtitle C--Studies and Reports

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

Sec. 761. Extension of limitation on conversion of military medical and 
                            dental positions to civilian medical and 
                            dental positions.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

             Subtitle A--Acquisition Policy and Management

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

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

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

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

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

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

Sec. 901. United States Military Cancer Institute.
Sec. 902. Senior acquisition executive for special operations within 
                            staff of the Assistant Secretary of Defense 
                            for Special Operations and Low Intensity 
                            Conflict.
                      Subtitle B--Space Activities

Sec. 911. Establishment of operationally responsive space capabilities.
Sec. 912. Extension of authority for pilot program on provision of 
                            space surveillance network services to non-
                            United States Government entities. 
                       Subtitle C--Other Matters

Sec. 921. Department of Defense policy on unmanned systems.
Sec. 922. Executive Schedule level IV for Deputy Under Secretary of 
                            Defense for Logistics and Materiel 
                            Readiness.
Sec. 923. Three-year extension of joint incentives program on sharing 
                            of health care resources by the Department 
                            of Defense and Department of Veterans 
                            Affairs.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Authorization of supplemental appropriations for fiscal year 
                            2006.
Sec. 1003. Reduction in certain authorizations due to savings relating 
                            to lower inflation.
Sec. 1004. Increase in fiscal year 2006 general transfer authority.
Sec. 1005. United States contribution to NATO common-funded budgets in 
                            fiscal year 2007.
Sec. 1006. Modification of date of submittal of OMB/CBO report on 
                            scoring of outlays.
Sec. 1007. Prohibition on parking of funds.
                       Subtitle B--Naval Vessels

Sec. 1011. Repeal of requirement for 12 operational aircraft carriers 
                            within the Navy.
Sec. 1012. Approval of transfer of naval vessels to foreign nations by 
                            vessel class.
                    Subtitle C--Counterdrug Matters

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

Sec. 1031. Two-year extension of authority to engage in commercial 
                            activities as security for intelligence 
                            collection activities.
Sec. 1032. Annual report on intelligence oversight activities of the 
                            Department of Defense.
Sec. 1033. Administration of pilot project on Civilian Linguist Reserve 
                            Corps.
Sec. 1034. Improvement of authorities on the National Security 
                            Education Program.
   Subtitle E--Defense Against Terrorism and Related Security Matters

Sec. 1041. Enhancement of authority to pay monetary rewards for 
                            assistance in combating terrorism.
Sec. 1042. Use of the Armed Forces in major public emergencies.
Sec. 1043. Treatment under Freedom of Information Act of certain 
                            confidential information shared with State 
                            and local personnel.
 Subtitle F--Miscellaneous Authorities on Availability and Use of Funds

Sec. 1051. Acceptance and retention of reimbursement from non-Federal 
                            sources to defray Department of Defense 
                            costs of conferences.
Sec. 1052. Minimum annual purchase amounts for airlift from carriers 
                            participating in the Civil Reserve Air 
                            Fleet.
Sec. 1053. Increased flexibility in use of funds for Joint Staff 
                            exercises.
                       Subtitle G--Report Matters

Sec. 1061. Report on clarification of prohibition on cruel, inhuman, or 
                            degrading treatment or punishment.
Sec. 1062. Reports on members of the Armed Forces and civilian 
                            employees of the Department of Defense 
                            serving in the Legislative Branch.
Sec. 1063. Additional element in annual report on chemical and 
                            biological warfare defense.
Sec. 1064. Report on Local Boards of Trustees of the Armed Forces 
                            Retirement Home.
Sec. 1065. Repeal of certain report requirements.
            Subtitle H--Technical and Conforming Amendments

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

Sec. 1081. National Foreign Language Coordination Council.
Sec. 1082. Support of successor organizations of the disestablished 
                            Interagency Global Positioning System 
                            Executive Board. 
Sec. 1083. Sense of Congress on the Quadrennial Defense Review.
       TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

Sec. 1101. Accrual of annual leave for members of the uniformed 
                            services on terminal leave performing dual 
                            employment. 
Sec. 1102. Strategy for improving the senior management, functional, 
                            and technical workforce of the Department 
                            of Defense.
Sec. 1103. Authority to equalize allowances, benefits, and gratuities 
                            of personnel on official duty in Iraq and 
                            Afghanistan.
              TITLE XII--MATTERS RELATING TO OTHER NATIONS

                      Subtitle A--General Matters

Sec. 1201. Expansion of humanitarian and civic assistance to include 
                            communications and information capacity.
Sec. 1202. Modification of authorities relating to the Regional Defense 
                            Counterterrorism Fellowship Program.
Sec. 1203. Logistic support of allied forces for combined operations.
Sec. 1204. Exclusion of petroleum, oil, and lubricants from limitations 
                            on amount of liabilities the United States 
                            may accrue under acquisition and cross-
                            servicing agreements.
Sec. 1205. Temporary authority to use acquisition and cross-servicing 
                            agreements to loan significant military 
                            equipment to foreign forces in Iraq and 
                            Afghanistan for personnel protection and 
                            survivability.
Sec. 1206. Modification of authorities relating to the building of the 
                            capacity of foreign military forces.
Sec. 1207. Participation of the Department of Defense in multinational 
                            military centers of excellence.
Sec. 1208. Distribution of education and training materials and 
                            information technology to enhance 
                            interoperability.
                       Subtitle B--Report Matters

Sec. 1221. Report on increased role and participation of multinational 
                            partners in the United Nations Command in 
                            the Republic of Korea.
Sec. 1222. Report on interagency operating procedures for stabilization 
                            and reconstruction operations.
  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.
  TITLE XIV--AUTHORIZATION FOR INCREASED COSTS DUE TO OPERATION IRAQI 
                 FREEDOM AND OPERATION ENDURING FREEDOM

Sec. 1401. Purpose.
Sec. 1402. Army procurement.
Sec. 1403. Marine Corps procurement.
Sec. 1404. Air Force procurement.
Sec. 1405. Operation and maintenance.
Sec. 1406. Defense Health Program.
Sec. 1407. Military personnel.
Sec. 1408. Joint Improvised Explosive Device Defeat Fund.
Sec. 1409. Classified programs.
Sec. 1410. Iraq Freedom Fund.
Sec. 1411. Treatment as additional authorizations.
Sec. 1412. Transfer authority.
Sec. 1413. Availability of funds.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

    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.

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

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

SEC. 102. NAVY AND MARINE CORPS.

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

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
for procurement for the Air Force as follows:
            (1) For aircraft, $12,004,096,000.
            (2) For missiles, $4,224,145,000.
            (3) For ammunition, $1,076,749,000.
            (4) For other procurement, $15,434,586,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

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

                       Subtitle B--Army Programs

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

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

SEC. 112. COMPTROLLER GENERAL REPORT ON THE CONTRACT FOR THE FUTURE 
              COMBAT SYSTEMS PROGRAM.

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

SEC. 113. REPORTS ON ARMY MODULARITY INITIATIVE.

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

                       Subtitle C--Navy Programs

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

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

SEC. 122. CONSTRUCTION OF FIRST TWO VESSELS UNDER THE NEXT-GENERATION 
              DESTROYER PROGRAM.

    (a) Availability of Funds.--Of the amount authorized to be 
appropriated by section 102(a)(3) for fiscal year 2007 for Shipbuilding 
and Conversion, Navy, $2,568,000,000 may be available for the 
construction of the first two vessels under the next-generation 
destroyer program.
    (b) Contract Authority.--
            (1) In general.--The Secretary of the Navy may in 
        accordance with section 2306b of title 10, United States Code, 
        enter into a multiyear contract beginning with the fiscal year 
        2007 program year for procurement of each of the first two 
        vessels under the next-generation destroyer program.
            (2) Limitation.--Not more than one contract described in 
        paragraph (1) may be awarded under that paragraph to a single 
        surface-combatant shipyard.
            (3) Duration on procurement.--Each contract under paragraph 
        (1) shall contemplate funding for the procurement of a vessel 
        under such contract in fiscal years 2007 and 2008.
            (4) Condition on out-year contract payments.--A contract 
        entered into under paragraph (1) shall provide that any 
        obligation of the United States to make a payment under such 
        contract for any fiscal year after fiscal year 2007 is subject 
        to the availability of appropriations for that purpose for such 
        fiscal year.

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

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

                     Subtitle D--Air Force Programs

SEC. 141. PROCUREMENT OF JOINT PRIMARY AIRCRAFT TRAINING SYSTEM 
              AIRCRAFT AFTER FISCAL YEAR 2006.

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

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

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

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

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

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

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

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

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

SEC. 146. PROHIBITION ON INCREMENTAL FUNDING AND MULTIYEAR PROCUREMENT 
              OF F-22A AIRCRAFT.

    (a) Prohibition on Use of Incremental Funding.--The Secretary of 
the Air Force shall not use incremental funding for the procurement of 
F-22A aircraft.
    (b) Prohibition on Multiyear Contract.--The Secretary of the Air 
Force shall not enter into a multiyear contract for the procurement of 
F-22A aircraft in fiscal year 2007.

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

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 202. AMOUNT FOR SCIENCE AND TECHNOLOGY.

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

    Subtitle B--Program Requirements, Restrictions, and Limitations

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

    (a) Limitation on Availability of Funds for Certain Activities.--Of 
the amount authorized to be appropriated by this title and available 
for the Future Combat Systems (FCS) for purposes of system of systems 
engineering and program management for the Future Combat Systems, an 
amount equal to $500,000,000 of such amount may not be obligated and 
expended for such purposes until the Secretary of Defense submits to 
the congressional defense committees the report required by subsection 
(b)(4).
    (b) Independent Estimate Required.--
            (1) In general.--The Secretary of Defense shall provide for 
        the preparation of an independent estimate of the anticipated 
        costs of systems development and demonstration with respect to 
        the Future Combat Systems.
            (2) Conduct of estimate.--The estimate required by this 
        subsection shall be prepared by a federally funded research and 
        development center selected by the Secretary for purposes of 
        this subsection.
            (3) Matters to be addressed.--The independent estimate 
        prepared under this subsection shall address costs of research, 
        development, test, and evaluation, and costs of procurement, 
        for--
                    (A) the system development and demonstration phase 
                of the core Future Combat Systems;
                    (B) the Future Combat Systems technologies to be 
                incorporated into the equipment of the current force of 
                the Army (often referred to as ``spinouts'');
                    (C) the installation kits for the incorporation of 
                such technologies into such equipment;
                    (D) the systems treated as complementary systems 
                for the Future Combat Systems;
                    (E) science and technology initiatives that support 
                the Future Combat Systems program; and
                    (F) any pass-through charges anticipated to be 
                assessed by the lead systems integrator of the Future 
                Combat Systems and its major subcontractors.
            (4) Submittal to congress.--Upon completion of the 
        independent estimate required by this subsection, the Secretary 
        shall submit to the congressional defense committees a report 
        on the estimate.
            (5) Deadline for submittal.--The report described in 
        paragraph (4) shall be submitted not later than the date of the 
        submittal to Congress of the budget of the President for fiscal 
        year 2008 (as submitted to Congress under section 1105(a) of 
        title 31, United States Code).
    (c) Pass-Through Charge Defined.--In this section, the term ``pass-
through charge'' has the meaning given that term in section 805(c)(5) 
of the National Defense Authorization Act for Fiscal Year 2006 (Public 
Law 109-163; 119 Stat. 3373).

SEC. 212. FUNDING OF DEFENSE SCIENCE AND TECHNOLOGY PROGRAMS.

    (a) Extension of Funding Objective.--Subsection (b) of section 212 
of the National Defense Authorization Act for Fiscal Year 2000 (10 
U.S.C. 2501 note) is amended by striking ``through 2009'' and inserting 
``through 2012''.
    (b) Actions Following Failure To Comply With Objective.--Such 
section is further amended by adding at the end the following new 
subsection:
    ``(c) Actions Following Failure To Comply With Objective.--(1) If 
the proposed budget for a fiscal year covered by subsection (b) fails 
to comply with the objective set forth in that subsection, the 
Secretary of Defense shall submit to the congressional defense 
committees--
            ``(A) a detailed, prioritized list, including estimates of 
        required funding, of highly-rated, peer-reviewed science and 
        technology projects received by the Department through 
        competitive solicitations and broad agency announcements 
        which--
                    ``(i) are not funded solely due to lack of 
                resources, but
                    ``(ii) represent science and technology 
                opportunities that support the research and development 
                programs and goals of the military departments and the 
                Defense Agencies; and
            ``(B) a report, in both classified and unclassified form, 
        containing an analysis and evaluation of international research 
        and technology capabilities, including an identification of any 
        technology areas in which the United States will not have 
        global technical leadership within the next five years, in each 
        of the technology areas described in the following plans:
                    ``(i) The most current Joint Warfighting Science 
                and Technology Plan required by section 270 of the 
                National Defense Authorization Act for Fiscal Year 1997 
                (10 U.S.C. 2501 note).
                    ``(ii) The Defense Technology Area Plan of the 
                Department of Defense.
                    ``(iii) The Basic Research Plan of the Department 
                of Defense.
    ``(2)(A) The list required by paragraph (1)(A) for a fiscal year in 
which the budget for such fiscal year fails to comply with the 
objective in subsection (b) shall be submitted together with the 
Department of Defense budget justification materials submitted to 
Congress under section 1105 of title 31, United States Code, with the 
budget for the next fiscal year.
    ``(B) The report required by paragraph (1)(B) for a fiscal year in 
which the budget for such fiscal year fails to comply with the 
objective in subsection (b) shall be submitted not later than the six 
months after the submittal of the Department of Defense budget 
justification materials that are submitted to Congress under section 
1105 of title 31, United States Code, with the budget for the next 
fiscal year.''.

SEC. 213. HYPERSONICS DEVELOPMENT.

    (a) Establishment of Joint Technology Office on Hypersonics.--The 
Secretary of Defense shall establish within the Office of the Secretary 
of Defense a joint technology office on hypersonics. The office shall 
carry out the program required under subsection (b), and shall have 
such other responsibilities relating to hypersonics as the Secretary 
shall specify.
    (b) Program on Hypersonics.--The joint technology office 
established under subsection (a) shall carry out a program for the 
development of hypersonics for defense purposes.
    (c) Responsibilities.--In carrying out the program required by 
subsection (b), the joint technology office established under 
subsection (a) shall do the following:
            (1) Coordinate and integrate the research, development, 
        test, and evaluation programs and system demonstration programs 
        of the Department of Defense on hypersonics.
            (2) Undertake appropriate actions to ensure--
                    (A) close and continuous integration of the 
                programs on hypersonics of the military departments 
                with the programs on hypersonics of the Defense 
                Agencies; and
                    (B) coordination of the programs referred to in 
                subparagraph (A) with the programs on hypersonics of 
                the National Aeronautics and Space Administration.
            (3) Approve demonstration programs on hypersonic systems.
            (4) Ensure that any demonstration program on hypersonic 
        systems that is carried out in any year after its approval 
        under paragraph (3) is carried out only if certified under 
        subsection (e) as being consistent with the roadmap under 
        subsection (d).
    (d) Roadmap.--
            (1) Roadmap required.--The joint technology office 
        established under subsection (a) shall, in coordination with 
        the Joint Staff and the National Aeronautics and Space 
        Administration, develop a roadmap for the hypersonics programs 
        of the Department of Defense.
            (2) Elements.--The roadmap shall include the following 
        matters:
                    (A) Short-term, mid-term, and long-term goals for 
                the Department of Defense on hypersonics which shall be 
                consistent with the missions and anticipated 
                requirements of the Department over the applicable 
                period.
                    (B) Acquisition transition plans for hypersonics.
                    (C) Anticipated mission requirements for 
                hypersonics.
                    (D) A schedule for meeting such goals, including 
                the activities and funding anticipated to be required 
                for meeting such goals.
            (3) Submittal to congress.--The Secretary shall submit the 
        roadmap to the congressional defense committees at the same 
        time as the submittal to Congress of the budget for fiscal year 
        2008 (as submitted pursuant to section 1105 of title 31, United 
        States Code).
    (e) Annual Review and Certification of Funding.--
            (1) Annual review.--The joint technology office established 
        under subsection (a) shall conduct on an annual basis a review 
        of the funding available for research, development, test, and 
        evaluation and demonstration programs of the Department of 
        Defense on hypersonics in order to determine whether or not 
        such funding and programs are consistent with the roadmap 
        developed under subsection (d).
            (2) Certification.--The joint technology office shall, as a 
        result of each review under paragraph (1), certify to the 
        Secretary whether or not the funding and programs subject to 
        such review are consistent with the roadmap developed under 
        subsection (d).
            (3) Termination.--The requirements of this subsection shall 
        terminate after the submittal to Congress of the budget for 
        fiscal year 2012 pursuant to section 1105 of title 31, United 
        States Code.
    (f) Reports to Congress.--If, as a result of a review under 
subsection (e), funding or a program on hypersonics is certified under 
that subsection not to be consistent with the roadmap developed under 
subsection (d), the Secretary shall submit to Congress a report on such 
funding or program, as the case may be, together with a statement of 
the actions to be taken to make such funding or program, as the case 
may be, consistent with the roadmap.
    (g) Hypersonics Defined.--In this section, the term ``hypersonics'' 
means aircraft and missiles capable of travelling at speeds in excess 
of Mach 5.

SEC. 214. TRIDENT SEA-LAUNCHED BALLISTIC MISSILES.

    (a) Limitation on Availability of Funds.--
            (1) In general.--Except as provided in paragraph (2), none 
        of the funds authorized to be appropriated by this Act for the 
        Conventional Trident Modification (CTM) program may be 
        obligated or expended for the development or modification of 
        the Trident D-5 sea-launched ballistic missile until 30 days 
        after the date on which the report required by subsection (b) 
        is submitted to the congressional defense committees.
            (2) Exception.--Paragraph (1) shall not apply with respect 
        to amounts authorized to be appropriated by section 201(2) for 
        research, development, test, and evaluation, Navy, and 
        available for Advanced Conventional Strike Capability (PE 
        #64327N) in an amount not to exceed $32,000,000.
    (b) Report.--
            (1) Report required.--The Secretary of Defense shall, in 
        consultation with the Secretary of State, submit to the 
        congressional defense committees a report setting forth a 
        proposal to replace nuclear warheads on twenty-four Trident D-5 
        sea-launched ballistic missiles with conventional kinetic 
        warheads for deployment on submarines that carry Trident sea-
        launched ballistic missiles.
            (2) Elements.--The report required by paragraph (1) shall 
        include the following:
                    (A) A description of the types of scenarios, types 
                of targets, and circumstances in which a conventional 
                sea-launched ballistic missile would be used.
                    (B) A discussion of the weapon systems or weapons, 
                whether current or planned, that could be used as an 
                alternative for each of the scenarios, target types, 
                and circumstances set forth under subparagraph (A), and 
                a statement of any reason why each is not a suitable 
                alternative to a conventional sea-launched ballistic 
                missile.
                    (C) A description of the command and control 
                arrangements for conventional sea-launched ballistic 
                missiles, including launch authority and the use of 
                Permissive Action Links (PALs).
                    (D) An assessment of the capabilities of other 
                countries to detect and track the launch of a 
                conventional or nuclear sea-launched ballistic missile.
                    (E) An assessment of the capabilities of other 
                countries to discriminate between the launch of a 
                nuclear sea-launched ballistic missile and a 
                conventional sea-launched ballistic missile, other than 
                in a testing scenario.
                    (F) An assessment of the notification and other 
                protocols that would have to be in place prior to using 
                any conventional sea-launched ballistic missile and a 
                plan for entering into such protocols.
                    (G) An assessment of the adequacy of the 
                intelligence that would be needed to support an attack 
                involving conventional sea-launched ballistic missiles.
                    (H) A description of the total program cost, 
                including the procurement costs of additional D-5 
                missiles, of the conventional Trident sea-launched 
                ballistic missile program, by fiscal year.
                    (I) An analysis and assessment of the implications 
                for ballistic missile proliferation if the United 
                States decides to go forward with the conventional 
                Trident sea-launched ballistic missile program or any 
                other conventional long range ballistic missile 
                program.
                    (J) An analysis and assessment of the implications 
                for the United States missile defense system if other 
                countries utilize long range conventional ballistic 
                missiles.
                    (K) An analysis of any problems created by the 
                ambiguity that results from the use of the same 
                ballistic missile for both conventional and nuclear 
                warheads.
                    (L) An analysis and assessment of the methods that 
                other countries might use to resolve the ambiguities 
                associated with a nuclear or conventional sea-launched 
                ballistic missile.
                    (M) An analysis, by the Secretary of State, of the 
                international, treaty, and other concerns that would be 
                associated with the use of a conventional sea-launched 
                ballistic missile and recommendations for measures to 
                mitigate or eliminate such concerns.
                    (N) A joint statement by the Secretary of Defense 
                and the Secretary of State on how to ensure that the 
                use of a conventional sea-launched ballistic missile 
                will not result in an intentional, inadvertent, 
                mistaken, or accidental reciprocal or responsive launch 
                of a nuclear strike by any other country.
    (c) Availability of Funds for Report.--Of the amounts authorized to 
be appropriated by this Act (other than the amounts covered by the 
limitation in subsection (a)), $20,000,000 may be available to prepare 
the report required by subsection (b).

                  Subtitle C--Missile Defense Programs

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

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

SEC. 232. POLICY OF THE UNITED STATES ON PRIORITIES IN THE DEVELOPMENT, 
              TESTING, AND FIELDING OF MISSILE DEFENSE CAPABILITIES.

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

SEC. 233. ONE-YEAR EXTENSION OF COMPTROLLER GENERAL ASSESSMENTS OF 
              BALLISTIC MISSILE DEFENSE PROGRAMS.

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

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

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

SEC. 235. ANNUAL REPORTS ON TRANSITION OF BALLISTIC MISSILE DEFENSE 
              PROGRAMS TO THE MILITARY DEPARTMENTS.

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

                       Subtitle D--Other Matters

SEC. 251. EXTENSION OF REQUIREMENT FOR GLOBAL RESEARCH WATCH PROGRAM.

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

SEC. 252. EXPANSION AND EXTENSION OF AUTHORITY TO AWARD PRIZES FOR 
              ADVANCED TECHNOLOGY ACHIEVEMENTS.

    (a) Expansion.--
            (1) In general.--Subsection (a) of section 2374a of title 
        10, United States Code, is amended--
                    (A) by striking ``Director of the Defense Advanced 
                Research Projects Agency'' and inserting ``Director of 
                Defense Research and Engineering and the Service 
                Acquisition Executives of the military departments''; 
                and
                    (B) by striking ``a program'' and inserting 
                ``programs''.
            (2) Conforming amendments.--(A) Subsection (b) of such 
        section is amended by striking ``The program'' and inserting 
        ``Any program''.
            (B) Subsection (d) of such section is amended--
                    (i) by striking ``The program'' and inserting ``A 
                program''; and
                    (ii) by striking ``the Director'' and inserting 
                ``an official referred to in that subsection''.
    (b) Extension.--Subsection (f) of such section is amended by 
striking ``September 30, 2007'' and inserting ``September 30, 2011''.
    (c) Modification of Reporting Requirement.--Subsection (e) of such 
section is amended to read as follows:
    ``(e) Annual Report.--(l) Not later than March 1 each year, the 
Secretary shall submit to the Committees on Armed Services of the 
Senate and the House of Representatives a report on the activities 
undertaken during the preceding fiscal year under the authority in 
subsection (a).
    ``(2) The report for a fiscal year under this subsection shall 
include the following:
            ``(A) A description of the proposed goals of the 
        competitions established under each program under subsection 
        (a), including the areas of research, technology development, 
        or prototype development to be promoted by such competitions 
        and the relationship of such areas to the military missions of 
        the Department of Defense.
            ``(B) An analyses of why the utilization of the authority 
        in subsection (a) was the preferable method of achieving the 
        goals described in subparagraph (A) as opposed to other 
        authorities available to the Department, such as contracts, 
        grants, and cooperative agreements.
            ``(C) The total amount of cash prizes awarded under each 
        program, including a description of the manner in which the 
        amounts of cash prizes awarded and claimed were allocated among 
        the accounts of the Department for recording as obligations and 
        expenditures.
            ``(D) The methods used for the solicitation and evaluation 
        of submissions under each program, together with an assessment 
        of the effectiveness of such methods.
            ``(E) A description of the resources, including personnel 
        and funding, used in the execution of each program, together 
        with a detailed description of the activities for which such 
        resources were used and an accounting of how funding for 
        execution was allocated among the accounts of the Department 
        for recording as obligations and expenditures.
            ``(F) A description of any plans to transition the 
        technologies or prototypes developed as a result of each 
        program into an acquisition program of the Department.''.

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

    (a) Review and Revision of Policies and Practices.--
            (1) Review.--The Under Secretary of Defense for 
        Acquisition, Technology, and Logistics shall review Department 
        of Defense policies and practices on test and evaluation in 
        light of emerging approaches to acquisitions.
            (2) Revised guidance.--If the Under Secretary determines as 
        a result of the review under paragraph (1) that a revision of 
        the policies and practices referred to in that paragraph is 
        necessary in light of emerging approaches to acquisitions, the 
        Under Secretary shall issue new or revised guidance for the 
        Department of Defense on test and evaluation to address that 
        determination.
            (3) Coordination.--The Under Secretary shall carry out this 
        subsection in coordination with the Director of Operational 
        Test and Evaluation and the Director of the Defense Test 
        Resource Management Center.
    (b) Issues To Be Addressed.--In carrying out subsection (a), the 
Under Secretary shall address policies and practices on test and 
evaluation in order to--
            (1) ensure the performance of test and evaluation 
        activities with regard to--
                    (A) items that are acquired pursuant to the 
                authority for rapid acquisition and deployment of items 
                in section 806 of the Bob Stump National Defense 
                Authorization Act for Fiscal Year 2003 (10 U.S.C. 2302 
                note);
                    (B) programs that are conducted pursuant to the 
                authority for spiral development in section 803 of the 
                Bob Stump National Defense Authorization Act for Fiscal 
                Year 2003 (Public Law 107-314; 116 Stat. 2603; 10 
                U.S.C. 2430 note), or other authority for the conduct 
                of incremental acquisition programs;
                    (C) systems that are acquired pursuant to time-
                certain development programs; and
                    (D) equipment that is not subject to the 
                operational test and evaluation requirements in section 
                2399 of title 10, United States Code, but which may 
                require limited operational test and evaluation for the 
                purpose of ensuring the safety and survivability of 
                such equipment and personnel using such equipment; and
            (2) ensure the appropriate use, if any, of operational test 
        and evaluation resources to assess technology readiness levels 
        for the purpose of section 2366a of title 10, United States 
        Code, and other applicable technology readiness requirements.
    (c) Funding Matters.--The Director of the Defense Test Resource 
Management Center shall ensure that the strategic plan for Department 
of Defense test and evaluation resources developed pursuant to section 
196 of title 10, United States Code--
            (1) reflects any testing needs of the Department of Defense 
        that are identified as a result of activities under subsection 
        (a); and
            (2) includes an assessment of the test and evaluation 
        facilities, resources, and budgets that will be required to 
        meet such needs.
    (d) Report to Congress.--Not later than nine months after the date 
of the enactment of this Act, the Under Secretary shall submit to the 
congressional defense committees a report on the review conducted under 
paragraph (1) of subsection (a), including any new or revised guidance 
issued pursuant to paragraph (2) of that subsection.
    (e) Time-Certain Development Program Defined.--In this section, the 
term ``time-certain development program'' means a development program 
that is assigned a specific length of time in which milestone events 
will be accomplished by contract.

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

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

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

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

SEC. 256. SENSE OF SENATE ON TECHNOLOGY SHARING OF JOINT STRIKE FIGHTER 
              TECHNOLOGY.

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

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for expenses, not otherwise provided for, for 
operation and maintenance, in amounts as follows:
            (1) For the Army, $24,795,580,000.
            (2) For the Navy, $31,130,784,000.
            (3) For the Marine Corps, $3,905,262,000.
            (4) For the Air Force, $31,251,107,000.
            (5) For Defense-wide activities, $20,106,756,000.
            (6) For the Army Reserve, $2,139,702,000.
            (7) For the Naval Reserve, $1,288,764,000.
            (8) For the Marine Corps Reserve, $211,911,000.
            (9) For the Air Force Reserve, $2,575,100,000.
            (10) For the Army National Guard, $4,857,728,000.
            (11) For the Air National Guard, $5,318,717,000.
            (12) For the United States Court of Appeals for the Armed 
        Forces, $11,721,000.
            (13) For Environmental Restoration, Army, $463,794,000.
            (14) For Environmental Restoration, Navy, $304,409,000.
            (15) For Environmental Restoration, Air Force, 
        $423,871,000.
            (16) For Environmental Restoration, Defense-wide, 
        $18,431,000.
            (17) For Environmental Restoration, Formerly Used Defense 
        Sites, $282,790,000.
            (18) For the Overseas Contingency Operations Transfer Fund, 
        $10,000,000.
            (19) For Cooperative Threat Reduction programs, 
        $372,128,000.
            (20) For Overseas Humanitarian Disaster and Civic Aid, 
        $63,204,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for providing capital for working capital and 
revolving funds in amounts as follows:
            (1) For the Defense Working Capital Funds, $1,364,498,000.
            (2) For the National Defense Sealift Fund, $1,071,932,000.

SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS.

    (a) Defense Health Program.--Funds are hereby authorized to be 
appropriated for the Department of Defense for fiscal year 2007 for 
expenses, not otherwise provided for, for the Defense Health Program, 
$20,915,321,000, of which--
            (1) $20,381,863,000 is for Operation and Maintenance;
            (2) $135,603,000 is for Research, Development, Test, and 
        Evaluation; and
            (3) $397,855,000 is for Procurement.
    (b) Chemical Agents and Munitions Destruction, Defense.--
            (1) In general.--Funds are hereby authorized to be 
        appropriated for the Department of Defense for fiscal year 2007 
        for expenses, not otherwise provided for, for Chemical Agents 
        and Munitions Destruction, Defense, $1,277,304,000, of which--
                    (A) $1,046,290,000 is for Operation and 
                Maintenance; and
                    (B) $231,014,000 is for Research, Development, 
                Test, and Evaluation.
            (2) Availability.--Amounts authorized to be appropriated 
        under paragraph (1) are authorized for--
                    (A) the destruction of lethal chemical agents and 
                munitions in accordance with section 1412 of the 
                Department of Defense Authorization Act, 1986 (50 
                U.S.C. 1521); and
                    (B) the destruction of chemical warfare materiel of 
                the United States that is not covered by section 1412 
                of such Act.
    (c) Drug Interdiction and Counter-Drug Activities, Defense-wide.--
Funds are hereby authorized to be appropriated for the Department of 
Defense for fiscal year 2007 for expenses, not otherwise provided for, 
for Drug Interdiction and Counter-Drug Activities, Defense-wide, 
$926,890,000.
    (d) Defense Inspector General.--Funds are hereby authorized to be 
appropriated for the Department of Defense for fiscal year 2007 for 
expenses, not otherwise provided for, for the Office of the Inspector 
General of the Department of Defense, $216,297,000, of which--
            (1) $214,897,000 is for Operation and Maintenance; and
            (2) $1,400,000 is for Procurement.

    Subtitle B--Program Requirements, Restrictions, and Limitations

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

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

SEC. 312. AVAILABILITY OF FUNDS FOR EXHIBITS FOR THE NATIONAL MUSEUMS 
              OF THE ARMED FORCES.

    (a) National Museum of the United States Army.--Of the amounts 
authorized to be appropriated by section 301(1) for operation and 
maintenance for the Army, $3,000,000 may be available to the Secretary 
of the Army for education and training purposes to contract with the 
Army Historical Foundation for the acquisition, installation, and 
maintenance of exhibits at the National Museum of the United States 
Army.
    (b) National Museum of the United States Navy.--Of the amounts 
authorized to be appropriated by section 301(2) for operation and 
maintenance for the Navy, $3,000,000 may be available to the Secretary 
of the Navy for education and training purposes to contract with the 
Naval Historical Foundation for the acquisition, installation, and 
maintenance of exhibits at the National Museum of the United States 
Navy.
    (c) National Museum of the Marine Corps and Heritage Center.--Of 
the amounts authorized to be appropriated by section 301(3) for 
operation and maintenance for the Marine Corps, $3,000,000 may be 
available to the Secretary of the Navy for education and training 
purposes to contract with the United States Marine Corps Heritage 
Foundation for the acquisition, installation, and maintenance of 
exhibits at the National Museum of the Marine Corps and Heritage 
Center.
    (d) National Museum of the United States Air Force.--Of the amounts 
authorized to be appropriated by section 301(4) for operation and 
maintenance for the Air Force, $3,000,000 may be available to the 
Secretary of the Air Force for education and training purposes to 
contract with the Air Force Museum Foundation for the acquisition, 
installation, and maintenance of exhibits at the National Museum of the 
United States Air Force.
    (e) Reimbursement.--
            (1) Authority to accept reimbursement.--During any fiscal 
        year after fiscal year 2006, the Secretary of a military 
        department may accept from any non-profit entity authorized to 
        support the national museum of the applicable Armed Force 
        amounts to reimburse such Secretary for amounts obligated and 
        expended by such Secretary from amounts available to such 
        Secretary under this section.
            (2) Treatment.--Amounts accepted as reimbursement under 
        paragraph (1) shall be credited to the account that was used to 
        cover the costs incurred by the Secretary of the military 
        department concerned under this section. Amounts so credited 
        shall be merged with amounts in such account, and shall be 
        available for the same purposes, and subject to the same 
        conditions and limitations, as amounts in such account.

SEC. 313. LIMITATION ON FINANCIAL MANAGEMENT IMPROVEMENT AND AUDIT 
              INITIATIVES WITHIN THE DEPARTMENT OF DEFENSE.

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

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

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

                  Subtitle C--Environmental Provisions

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

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

SEC. 332. EXTENSION OF AUTHORITY TO GRANT EXEMPTIONS TO CERTAIN 
              REQUIREMENTS.

    (a) Amendment to Toxic Substances Control Act.--Section 6(e)(3) of 
the Toxic Substances Control Act (15 U.S.C. 2605(e)(3)) is amended--
            (1) in subparagraph (A), by striking ``subparagraphs (B) 
        and (C)'' and inserting ``subparagraphs (B), (C), and (D)'';
            (2) in subparagraph (B), by striking ``but not more than 1 
        year from the date it is granted'' and inserting ``but not more 
        than 1 year from the date it is granted, except as provided in 
        subparagraph (D)''; and
            (3) by adding at the end the following new subparagraph:
                    ``(D) The Administrator may grant an exemption 
                pursuant to subparagraph (B) for a period of up to 3 
                years for the purpose of authorizing the Secretary of 
                Defense and the Secretaries of the military departments 
                to provide for the transportation into the customs 
                territory of the United States of polychlorinated 
                biphenyls generated by or under the control of the 
                Department of Defense for purposes of their disposal, 
                treatment, or storage in the customs territory of the 
                United States.''.
    (b) Sunset Date.--The amendments made by subsection (a) shall cease 
to have effect on September 30, 2012. The termination of the authority 
to grant exemptions pursuant to such amendments shall not effect the 
validity of any exemption granted prior to such date.
    (c) Report.--Not later than March 1, 2011, the Secretary of Defense 
shall submit to the Committee on Armed Services and the Committee on 
Environment and Public Works of the Senate and the Committee on Armed 
Services and the Committee on Energy and Commerce of the House of 
Representatives a report on the status of polychlorinated biphenyls 
generated by or under the control of the Department of Defense outside 
the United States. The report shall address, at a minimum--
            (1) the remaining volume of such polychlorinated biphenyls 
        that may require transportation into the customs territory of 
        the United States for disposal, treatment, or storage; and
            (2) the efforts that have been made by the Department of 
        Defense and other Federal agencies to reduce such volume by--
                    (A) reducing the volume of polychlorinated 
                biphenyls generated by or under the control of the 
                Department of Defense outside the United States; or
                    (B) developing alternative options for the 
                disposal, treatment, or storage of such polychlorinated 
                biphenyls.

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

    (a) Identification of Disposal Sites.--
            (1) Historical review.--The Secretary of Defense, in 
        cooperation with the Commandant of the Coast Guard, the 
        Administrator of the National Oceanic and Atmospheric 
        Administration, and the heads of other relevant Federal 
        agencies, shall conduct a historical review of available 
        records to determine the number, size, and probable locations 
        of sites where the Armed Forces disposed of military munitions 
        in coastal waters. The historical review shall, to the extent 
        possible, identify the types of munitions at individual sites.
            (2) Interim reports.--The Secretary of Defense shall 
        periodically, but no less often than annually, release any new 
        information obtained during the historical review conducted 
        under paragraph (1). The Secretary may withhold from public 
        release the exact nature and locations of munitions the 
        potential unauthorized retrieval of which could pose a 
        significant threat to the national defense or public safety.
            (3) Inclusion of information in annual report on 
        environmental restoration activities.--The Secretary shall 
        include the information obtained pursuant to the review 
        conducted under paragraph (1) in the annual report on 
        environmental restoration activities submitted to Congress 
        under section 2706 of title 10, United States Code.
            (4) Final report.--The Secretary shall complete the 
        historical review required under paragraph (1) and submit a 
        final report on the findings of such review in the annual 
        report on environmental restoration activities submitted to 
        Congress for fiscal year 2009.
    (b) Identification of Navigational and Safety Hazards.--
            (1) Identification of hazards.--The Secretary of Defense 
        shall provide available information to the Secretary of 
        Commerce to assist the National Oceanic and Atmospheric 
        Administration in preparing nautical charts and other 
        navigational materials for coastal waters that identify known 
        or potential hazards posed by disposed military munitions to 
        private activities, including commercial shipping and fishing 
        operations.
            (2) Continuation of information activities.--The Secretary 
        of Defense shall continue activities to inform potentially 
        affected users of the ocean environment, particularly fishing 
        operations, of the possible hazards from contact with disposed 
        military munitions and the proper methods to mitigate such 
        hazards.
    (c) Research.--
            (1) In general.--The Secretary of Defense shall continue to 
        conduct research on the effects on the ocean environment and 
        those who use it of military munitions disposed of in coastal 
        waters.
            (2) Scope.--Research under paragraph (1) shall include--
                    (A) the sampling and analysis of ocean waters and 
                sea beds at or adjacent to military munitions disposal 
                sites selected pursuant to paragraph (3) to determine 
                whether the disposed military munitions have caused or 
                are causing contamination of such waters or sea beds;
                    (B) investigation into the long-term effects of 
                seawater exposure on disposed military munitions, 
                particularly effects on chemical munitions;
                    (C) investigation into the impacts any such 
                contamination may have on the ocean environment and 
                those who use it, including public health risks;
                    (D) investigation into the feasibility of removing 
                or otherwise remediating the military munitions; and
                    (E) the development of effective safety measures 
                for dealing with such military munitions.
            (3) Research criteria.--In conducting the research required 
        by this subsection, the Secretary shall ensure that the 
        sampling, analysis, and investigations are conducted at 
        representative sites, taking into account factors such as 
        depth, water temperature, nature of the military munitions 
        present, and relative proximity to onshore populations. In 
        conducting such research, the Secretary shall select at least 
        two representative sites each in the areas of the Atlantic 
        coast, the Pacific coast (including Alaska), and the Hawaiian 
        Islands.
            (4) Authority to make grants and enter into cooperative 
        agreements.--In conducting research under this subsection, the 
        Secretary may make grants to, and enter into cooperative 
        agreements with, qualified research entities.
    (d) Monitoring.--If the historical review required by subsection 
(a) or the research required by subsection (c) indicates that 
contamination is being released into the ocean waters from disposed 
military munitions at a particular site or that the site poses a 
significant public health or safety risk, the Secretary shall institute 
appropriate monitoring mechanisms at that site and report to the 
congressional defense committees on any additional measures that may be 
necessary to address the release or risk, as applicable.
    (e) Definitions.--In this section:
            (1) The term ``coastal waters'' means that part of the 
        ocean extending from the coast line of the United States to the 
        outer boundary of the outer Continental Shelf.
            (2) The term ``coast line'' has the meaning given that term 
        in section 2(c) of the Submerged Lands Act (43 U.S.C. 1301(c)).
            (3) The term ``outer Continental Shelf'' has the meaning 
        given that term in section 2(a) of the Outer Continental Shelf 
        Lands Act (43 U.S.C. 1331(a)).

SEC. 334. CLARIFICATION OF MULTI-YEAR AUTHORITY TO USE BASE CLOSURE 
              FUNDS TO FUND COOPERATIVE AGREEMENTS UNDER ENVIRONMENTAL 
              RESTORATION PROGRAM.

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

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

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

                          Subtitle D--Reports

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

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

                 Subtitle E--Workplace and Depot Issues

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

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

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

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

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

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

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

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

                       Subtitle F--Other Matters

SEC. 371. RECYCLING OF MILITARY MUNITIONS.

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

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

SEC. 372. INCENTIVES CLAUSES IN CHEMICAL DEMILITARIZATION CONTRACTS.

    (a) In General.--
            (1) Authority to include clauses in contracts.--The 
        Secretary of Defense may, for the purpose specified in 
        paragraph (2), authorize the inclusion of an incentives clause 
        in any contract for the destruction of the United States 
        stockpile of lethal chemical agents and munitions carried out 
        pursuant to section 1412 of the Department of Defense 
        Authorization Act, 1986 (50 U.S.C. 1521).
            (2) Purpose.--The purpose of a clause referred to in 
        paragraph (1) is to provide the contractor for a chemical 
        demilitarization facility an incentive to accelerate the safe 
        elimination of the United States chemical weapons stockpile and 
        to reduce the total cost of the Chemical Demilitarization 
        Program by providing incentive payments for the early 
        completion of destruction operations and the closure of such 
        facility.
    (b) Incentives Clauses.--
            (1) In general.--An incentives clause under this section 
        shall permit the contractor for the chemical demilitarization 
        facility concerned the opportunity to earn incentive payments 
        for the completion of destruction operations and facility 
        closure activities within target incentive ranges specified in 
        such clause.
            (2) Limitation on incentive payments.--The maximum 
        incentive payment under an incentives clause with respect to a 
        chemical demilitarization facility may not exceed amounts as 
        follows:
                    (A) In the case of an incentive payment for the 
                completion of destruction operations within the target 
                incentive range specified in such clause, $110,000,000.
                    (B) In the case of an incentive payment for the 
                completion of facility closure activities within the 
                target incentive range specified in such clause, 
                $55,000,000.
            (3) Target ranges.--An incentives clause in a contract 
        under this section shall specify the target incentive ranges of 
        costs for completion of destruction operations and facility 
        closure activities, respectively, as jointly agreed upon by the 
        contracting officer and the contractor concerned. An incentives 
        clause shall require a proportionate reduction in the maximum 
        incentive payment amounts in the event that the contractor 
        exceeds an agreed-upon target cost if such excess costs are the 
        responsibility of the contractor.
            (4) Calculation of incentive payments.--The amount of the 
        incentive payment earned by a contractor for a chemical 
        demilitarization facility under an incentives clause under this 
        section shall be based upon a determination by the Secretary on 
        how early in the target incentive range specified in such 
        clause destruction operations or facility closure activities, 
        as the case may be, are completed.
            (5) Consistency With Existing Obligations.--The provisions 
        of any incentives clause under this section shall be consistent 
        with the obligation of the Secretary of Defense under section 
        1412(c)(1)(A) of the Department of Defense Authorization Act, 
        1986 to provide for maximum protection for the environment, the 
        general public, and the personnel who are involved in the 
        destruction of the lethal chemical agents and munitions.
            (6) Additional terms and conditions.--In negotiating the 
        inclusion of an incentives clause in a contract under this 
        section, the Secretary may include in such clause such 
        additional terms and conditions as the Secretary considers 
        appropriate.
    (c) Limitation.--The authority to include an incentives clause in a 
contract under this section is subject to the availability of 
appropriations for that purpose.

SEC. 373. EXTENSION OF DEPARTMENT OF DEFENSE TELECOMMUNICATIONS BENEFIT 
              PROGRAM.

    (a) Termination at End of Contingency Operation.--Subsection (c) of 
section 344 of the National Defense Authorization Act for Fiscal Year 
2004 (Public Law 108-136; 117 Stat. 1449), as amended by section 341 of 
the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 
2005 (Public Law 108-375; 118 Stat. 1857), is further amended by 
striking ``terminate on September 30, 2006'' and inserting ``terminate 
with respect to a contingency operation on the date that is 60 days 
after the date on which the Secretary determines that the contingency 
operation has ended''.
    (b) Application to Other Contingency Operations.--Such section is 
further amended--
            (1) in subsection (a), by striking ``Operation Iraqi 
        Freedom and Operation Enduring Freedom'' and inserting ``a 
        contingency operation''; and
            (2) by adding at the end the following new subsection:
    ``(g) Contingency Operation Defined.--In this section, the term 
`contingency operation' has the meaning given that term in section 
101(a)(13) of title 10, United States Code. The term includes Operation 
Iraqi Freedom and Operation Enduring Freedom.''.
    (c) Extension to Hospitalized Members.--Subsection (a) of such 
section is further amended--
            (1) by striking ``As soon as possible after the date of the 
        enactment of this Act, the'' and inserting ``The''; and
            (2) by adding at the end the following new sentence: ``As 
        soon as possible after the date of the enactment of the 
        National Defense Authorization Act for Fiscal Year 2007, the 
        Secretary shall extend such telecommunications benefit to 
        members of the Armed Forces who, although no longer covered by 
        the preceding sentence, are hospitalized as a result of wounds 
        or other injuries incurred while serving in direct support of a 
        contingency operation.''.
    (d) Report on Implementation of Modified Benefits.--Not later than 
90 days after the date of the enactment of this Act, the Secretary of 
Defense shall submit to the congressional defense committees a report 
describing the status of the efforts of the Department of Defense to 
implement the modifications of the Department of Defense 
telecommunications benefit required by section 344 of the National 
Defense Authorization Act for Fiscal Year 2004 that result from the 
amendments made by this section.

SEC. 374. EXTENSION OF AVAILABILITY OF FUNDS FOR COMMEMORATION OF 
              SUCCESS OF THE ARMED FORCES IN OPERATION ENDURING FREEDOM 
              AND OPERATION IRAQI FREEDOM.

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

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

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

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

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

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

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

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

    Within the end strengths prescribed in section 411(a), the reserve 
components of the Armed Forces are authorized, as of September 30, 
2007, the following number of Reserves to be serving on full-time 
active duty or full-time duty, in the case of members of the National 
Guard, for the purpose of organizing, administering, recruiting, 
instructing, or training the reserve components:
            (1) The Army National Guard of the United States, 27,441.
            (2) The Army Reserve, 15,416.
            (3) The Navy Reserve, 12,564.
            (4) The Marine Corps Reserve, 2,261.
            (5) The Air National Guard of the United States, 13,206.
            (6) The Air Force Reserve, 2,707.

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

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

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

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

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

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

              Subtitle C--Authorization of Appropriations

SEC. 421. MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 2007 a total of 
$112,043,468,000. The authorization in the preceding sentence 
supersedes any other authorization of appropriations (definite or 
indefinite) for such purpose for fiscal year 2007.

SEC. 422. ARMED FORCES RETIREMENT HOME.

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

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

               Part I--Officer Personnel Policy Generally

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

    Section 528 of title 10, United States Code, is amended by adding 
at the end the following new subsections:
    ``(e) Military Status.--An officer of the armed forces, while 
serving in a position covered by this section--
            ``(1) shall not be subject to supervision or control by the 
        Secretary of Defense or by any officer or employee of the 
        Department of Defense, except as directed by the Secretary or 
        the Secretary's designee concerning reassignment from such 
        position; and
            ``(2) shall not exercise, by reason of the officer's status 
        as an officer, any supervision or control with respect to any 
        of the military or civilian personnel of the Department of 
        Defense except as otherwise authorized by law.
    ``(f) Effect of Appointment.--Except as provided in subsection (e), 
the appointment of an officer of the armed forces to a position covered 
by this section shall not affect the status, position, rank, or grade 
of such officer in the armed forces, or any emolument, perquisite, 
right, privilege, or benefit incident to or arising out of such status, 
position, rank, or grade.
    ``(g) Military Pay and Allowances.--(1) An officer of the armed 
forces on active duty who is appointed to a position covered by this 
section shall, while serving in such position and while remaining on 
active duty, continue to receive military pay and allowances, and shall 
not receive the pay prescribed for such position.
    ``(2) Funds from which pay and allowances under paragraph (1) are 
paid shall be reimbursed from the following:
            ``(A) Funds available to the Director of the Central 
        Intelligence Agency, for positions within the Central 
        Intelligence Agency.
            ``(B) Funds available to the Director of National 
        Intelligence, for positions within the Office of the Director 
        of National Intelligence.''.

SEC. 502. EXTENSION OF TEMPORARY REDUCTION OF TIME-IN-GRADE REQUIREMENT 
              FOR ELIGIBILITY FOR PROMOTION FOR CERTAIN ACTIVE-DUTY 
              LIST OFFICERS IN GRADES OF FIRST LIEUTENANT AND 
              LIEUTENANT (JUNIOR GRADE).

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

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

    (a) Restatement and Modification of Current Age Limits.--Section 
1251 of title 10, United States Code, is amended to read as follows:
``Sec. 1251. Regular commissioned officers; exceptions
    ``(a) Age Limits for General and Flag Officers.--(1) Unless retired 
or separated earlier, each regular commissioned officer of the Army, 
Air Force, or Marine Corps serving in a grade at or above brigadier 
general, or rear admiral (lower half) in the case of an officer in the 
Navy, shall be retired on the first day of the month following the 
month in which the officer becomes 64 years of age.
    ``(2) Notwithstanding paragraph (1), the Secretary of Defense may 
defer the retirement of an officer serving in a position that carries a 
grade above major general or rear admiral, but such a deferment may not 
extend beyond the first day of the month following the month in which 
the officer becomes 66 years of age.
    ``(3) Notwithstanding paragraphs (1) and (2), the President may 
defer the retirement of an officer serving in a position that carries a 
grade above major general or rear admiral, but such a deferment may not 
extend beyond the first day of the month following the month in which 
the officer becomes 68 years of age.
    ``(b) Age Limits for Other Officers.--Unless retired or separated 
earlier, each regular commissioned officer of the Army, Air Force, or 
Marine Corps other than an officer covered by section 1252 of this 
title or a commissioned warrant officer) serving in a grade below 
brigadier general, or rear admiral (lower half) in the case of an 
officer in the Navy, shall be retired on the first day of the month 
following the month in which the officer becomes 62 years of age.
    ``(c) Deferred Retirement of Health Professions Officers.--(1) The 
Secretary of the military department concerned may, subject to 
subsection (e), defer the retirement under subsection (b) of a health 
professions officer if during the period of the deferment the officer 
will be performing duties consisting primarily of providing patient 
care or performing other clinical duties.
    ``(2) For purposes of this subsection, a health professions officer 
is--
            ``(A) a medical officer;
            ``(B) a dental officer; or
            ``(C) an officer in the Army Nurse Corps, an officer in the 
        Navy Nurse Corps, or an officer in the Air Force designated as 
        a nurse.
    ``(d) Deferred Retirement of Chaplains.--The Secretary of the 
military department concerned may, subject to subsection (e), defer the 
retirement under subsection (b) of an officer who is appointed or 
designated as a chaplain if the Secretary determines that such deferral 
is in the best interest of the military department concerned.
    ``(e) Limitation on Deferral of Retirements.--(1) Except as 
provided in paragraph (2), a deferment under subsection (c) or (d) may 
not extend beyond the first day of the month following the month in 
which the officer becomes 68 years of age.
    ``(2) The Secretary of the military department concerned may extend 
a deferment under subsection (c) or (d) beyond the day referred to in 
paragraph (1) if the Secretary determines that extension of the 
deferment is necessary for the needs of the military department 
concerned. Such an extension shall be made on a case-by-case basis and 
shall be for such period as the Secretary considers appropriate.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 63 of such title is amended by striking the item relating to 
section 1251 and inserting the following new item:

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

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

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

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

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

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

SEC. 506. GRADE AND EXCLUSION FROM ACTIVE-DUTY GENERAL AND FLAG OFFICER 
              DISTRIBUTION AND STRENGTH LIMITATIONS OF OFFICER SERVING 
              AS ATTENDING PHYSICIAN TO THE CONGRESS.

    (a) Grade.--
            (1) Regular officer.--(A) Chapter 41 of title 10, United 
        States Code, is amended by adding at the end the following new 
        section:
``Sec. 722. Attending Physician to the Congress: grade
    ``A general officer serving as Attending Physician to the Congress, 
while so serving, holds the grade of major general. A flag officer 
serving as Attending Physician to the Congress, while so serving, holds 
the grade of rear admiral.''.
            (B) The table of sections at the beginning of such chapter 
        is amended by adding at the end the following new item:

``722. Attending Physician to the Congress: grade.''.
            (2) Reserve officer.--(A) Section 12210 of such title is 
        amended by striking ``who holds'' and all that follows and 
        inserting ``holds the reserve grade of major general or rear 
        admiral, as appropriate.''.
            (B) The heading of such section is amended to read as 
        follows:
``Sec. 12210. Attending Physician to the Congress: reserve grade''.
            (C) The table of sections at the beginning of chapter 1205 
        of such title is amended by striking the item relating to 
        section 12210 and inserting the following new item:

``12210. Attending Physician to the Congress: reserve grade.''.
    (b) Distribution Limitations.--Section 525 of title 10, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(f) An officer while serving as Attending Physician to the 
Congress is in addition to the number that would otherwise be permitted 
for that officer's armed force for officers serving on active duty in 
grades above brigadier general or rear admiral (lower half) under 
subsection (a).''.
    (c) Active-Duty Strength Limitations.--Section 526 of such title is 
amended by adding at the end the following new subsection:
    ``(f) Exclusion of Attending Physician to the Congress.--The 
limitations of this section do not apply to the general or flag officer 
who is serving as Attending Physician to the Congress.''.

SEC. 507. DISCRETIONARY SEPARATION AND RETIREMENT OF CHIEF WARRANT 
              OFFICERS, W-4, TWICE FAILING SELECTION FOR PROMOTION.

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

SEC. 508. INCREASED MANDATORY RETIREMENT AGES FOR RESERVE OFFICERS.

    (a) Major Generals and Rear Admirals.--
            (1) Increased age.--Section 14511 of title 10, United 
        States Code, is amended by striking ``62 years'' and inserting 
        ``64 years''.
            (2) Conforming amendment.--The heading of such section is 
        amended to read as follows:
``Sec. 14511. Separation at age 64: major generals and rear admirals''.
    (b) Brigadier Generals and Rear Admirals (Lower Half).--
            (1) Increased age.--Section 14510 of such title is amended 
        by striking ``60 years'' and inserting ``62 years''.
            (2) Conforming amendment.--The heading of such section is 
        amended to read as follows:
``Sec. 14510. Separation at age 62: brigadier generals and rear 
              admirals (lower half)''.
    (c) Officers Below Brigadier General or Rear Admiral (Lower 
Half).--
            (1) Increased age.--Section 14509 of such title is amended 
        by striking ``60 years'' and inserting ``62 years''.
            (2) Conforming amendment.--The heading of such section is 
        amended to read as follows:
``Sec. 14509. Separation at age 62: reserve officers in grades below 
              brigadier general or rear admiral (lower half)''.
    (d) Certain Other Officers.--
            (1) Increased age.--Section 14512 of such title is amended 
        by striking ``64 years'' both places it appears and inserting 
        ``66 years''.
            (2) Conforming amendment.--The heading of such section is 
        amended to read as follows:
``Sec. 14512. Separation at age 66: officers holding certain offices''.
    (e) Conforming Amendments.--Section 14508 of such title is 
amended--
            (1) in subsection (c), by striking ``60 years'' and 
        inserting ``62 years''; and
            (2) in subsection (d), by striking ``62 years'' and 
        inserting ``64 years''.
    (f) Clerical Amendment.--The table of sections at the beginning of 
chapter 1407 of such title is amended by striking the items relating to 
sections 14509, 14510, 14511, and 14512 and inserting the following new 
items:

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

                   Part II--Officer Promotion Policy

SEC. 515. PROMOTIONS.

    (a) Officers on Active-Duty List.--
            (1) Clarification of approval of selection board reports.--
        Subsection (a)(1) of section 624 of title 10, United States 
        Code, is amended by inserting ``or a delegate of the 
        President'' after ``the President''.
            (2) Date of establishment of promotion list.--Such 
        subsection is further amended by adding at the end the 
        following new sentence: ``For promotions that occur by and with 
        the advice and consent of the Senate, a promotion list shall be 
        treated as being established for purposes of this chapter on 
        the date on which the list is received by the Senate for 
        consideration.''.
            (3) Uniform procedures for delays of appointment upon 
        promotion.--Subsection (d) of such section is amended--
                    (A) in paragraph (1), by striking ``prescribed by 
                the Secretary concerned'' and inserting ``prescribed by 
                the Secretary of Defense''; and
                    (B) in paragraph (2), by striking ``prescribed by 
                the Secretary concerned'' and inserting ``prescribed by 
                the Secretary of Defense''.
            (4) Additional basis for delay of appointment.--Subsection 
        (d)(1) of such section is further amended--
                    (A) in subparagraph (C), by striking ``or'' at the 
                end;
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting ``; or'';
                    (C) by inserting after subparagraph (D) the 
                following new subparagraph (E):
            ``(E) substantiated adverse information about the officer 
        that is material to the decision to appoint the officer is 
        under review by the Secretary of Defense or the Secretary 
        concerned.''; and
                    (D) in the flush matter following subparagraph (E), 
                as inserted by subparagraph (C) of this paragraph--
                            (i) by striking ``or if the officer is 
                        acquitted'' and inserting ``if the officer is 
                        acquitted''; and
                            (ii) by inserting after ``brought against 
                        him,'' the following: ``or if after a review of 
                        substantiated adverse information about the 
                        officer regarding the requirement for exemplary 
                        conduct set forth in section 3583, 5947, or 
                        8583 of this title, as applicable, the officer 
                        is determined to be among the officers best 
                        qualified for promotion,''.
            (5) Additional basis for delay in appointment for lack of 
        qualifications.--Subsection (d)(2) of such section is further 
        amended--
                    (A) in the first sentence, by inserting before ``is 
                mentally, physically,'' the following: ``has not met 
                the requirement for exemplary conduct set forth in 
                section 3583, 5947, or 8583 of this title, as 
                applicable, or''; and
                    (B) in the second sentence, by striking ``If the 
                Secretary concerned later determines that the officer 
                is qualified for promotion to such grade'' and 
                inserting ``If it is later determined by a civilian 
                official of the Department of Defense (not below the 
                level of Secretary of a military department) that the 
                officer is qualified for promotion to such grade and, 
                after a review of adverse information regarding the 
                requirement for exemplary conduct set forth in section 
                3583, 5947, or 8583 of this title, as applicable, the 
                officer is determined to be among the officers best 
                qualified for promotion to such grade''.
    (b) Officers on Reserve Active-Status List.--
            (1) Clarification of approval of selection board reports.--
        Subsection (a) of section 14308 of title 10, United States 
        Code, is amended by inserting ``or a delegate of the 
        President'' after ``the President''.
            (2) Date of establishment of promotion list.--Such 
        subsection is further amended by adding at the end the 
        following new sentence: ``For promotions that occur by and with 
        the advice and consent of the Senate, a promotion list shall be 
        treated as being established for purposes of this chapter on 
        the date on which the list is received by the Senate for 
        consideration.''.
            (3) Uniform procedures for delays of appointment upon 
        promotion.--Section 14311 of such title is amended--
                    (A) in subsection (a)(1), by striking ``Secretary 
                of the military department concerned'' and inserting 
                ``Secretary of Defense''; and
                    (B) in subsection (b), by striking ``Secretary of 
                the military department concerned'' and inserting 
                ``Secretary of Defense''.
            (4) Additional basis for original delay of appointment.--
        Section 14311(a) of such title is further amended--
                    (A) in paragraph (1), by adding at the end the 
                following new subparagraph:
            ``(E) Substantiated adverse information about the officer 
        that is material to the decision to appoint the officer is 
        under review by the Secretary of Defense or the Secretary 
        concerned.''; and
                    (B) in paragraph (2)--
                            (i) by striking ``or if the officer is 
                        acquitted'' and inserting ``if the officer is 
                        acquitted''; and
                            (ii) by inserting after ``brought against 
                        him,'' the following: ``or if after a review of 
                        substantiated adverse information about the 
                        officer regarding the requirement for exemplary 
                        conduct set forth in section 3583, 5947, or 
                        8583 of this title, as applicable, the officer 
                        is determined to be among the officers best 
                        qualified for promotion,''.
            (5) Additional basis for delay in appointment for lack of 
        qualifications.--Section 14311(b) of such section is further 
        amended--
                    (A) in the first sentence, by inserting before ``is 
                mentally, physically,'' the following: ``has not met 
                the requirement for exemplary conduct set forth in 
                section 3583, 5947, or 8583 of this title, as 
                applicable, or''; and
                    (B) in the second sentence, by striking ``If the 
                Secretary concerned later determines that the officer 
                is qualified for promotion to the higher grade'' and 
                inserting ``If it is later determined by a civilian 
                official of the Department of Defense (not below the 
                level of Secretary of a military department) that the 
                officer is qualified for promotion to the higher grade 
                and, after a review of adverse information regarding 
                the requirement for exemplary conduct set forth in 
                section 3583, 5947, or 8583 of this title, as 
                applicable, the officer is determined to be among the 
                officers best qualified for promotion to the higher 
                grade''.
    (c) Deadline for Uniform Regulations on Delay of Promotions.--The 
Secretary of Defense shall prescribe the regulations required by 
section 624(d) of title 10, United States Code (as amended by 
subsection (a)(3) of this section), and the regulations required by 
section 14311 of title 10, United States Code (as amended by subsection 
(b)(3) of this section), not later than March 1, 2008.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act, and shall apply with 
respect to officers on promotion lists established on or after that 
date.

SEC. 516. CONSIDERATION OF ADVERSE INFORMATION BY PROMOTION SELECTION 
              BOARDS IN RECOMMENDATIONS ON OFFICERS TO BE PROMOTED.

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

SEC. 517. EXPANDED AUTHORITY FOR REMOVAL FROM REPORTS OF SELECTION 
              BOARDS OF OFFICERS RECOMMENDED FOR PROMOTION TO GRADES 
              BELOW GENERAL AND FLAG GRADES.

    (a) Officers on Active-Duty List.--Section 618(d) of title 10, 
United States Code, is amended--
            (1) by striking ``The name'' and inserting ``(1) Except as 
        provided in paragraph (2), the name''; and
            (2) by adding at the end the following new paragraph:
    ``(2) In the case of an officer recommended by a selection board 
for promotion to a grade below brigadier general or rear admiral (lower 
half), the name of the officer may also be removed from the report of 
the selection board by the Secretary of Defense or the Deputy Secretary 
of Defense.''.
    (b) Officers on Reserve-Active Status List.--Section 14111(b) of 
such title is amended--
            (1) by striking ``The name'' and inserting ``(1) Except as 
        provided in paragraph (2), the name''; and
            (2) by adding at the end the following new paragraph:
    ``(2) In the case of an officer recommended by a selection board 
for promotion to a grade below brigadier general or rear admiral (lower 
half), the name of the officer may also be removed from the report of 
the selection board by the Secretary of Defense or the Deputy Secretary 
of Defense.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act, and shall apply with 
respect to promotion selection boards convened on or after that date.

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

    (a) Selection Board Proceedings for Active Duty Officers.--
Subsection (f) of section 618 of title 10, United States Code, is 
amended to read as follows:
    ``(f)(1) Proceedings of a selection board convened under section 
611 of this title shall not be disclosed to any person not a member of 
the board.
    ``(2) Discussions and deliberations of a selection board described 
in paragraph (1), and any written or documentary records thereof, 
shall--
            ``(A) be immune from legal process;
            ``(B) not be admitted as evidence; and
            ``(C) not be used for any purpose in any action, suit, or 
        judicial or administrative proceeding without the consent of 
        the Secretary of the military department concerned.''.
    (b) Selection Board Proceedings for Reserve Officers.--
            (1) In general.--Section 14104 of such title is amended to 
        read as follows:
``Sec. 14104. Nondisclosure of board proceedings
    ``(a) In General.--The proceedings of a selection board convened 
under section 14101 of this title shall not be disclosed to any person 
not a member of the board.
    ``(b) Discussions and Deliberations.--Discussions and deliberations 
of a selection board described in subsection (a), and any written or 
documentary records thereof, shall--
            ``(1) be immune from legal process;
            ``(2) not be admitted as evidence; and
            ``(3) not be used for any purpose in any action, suit, or 
        judicial or administrative proceeding without the consent of 
        the Secretary of the military department concerned.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 1403 of such title is amended by striking 
        the item relating to section 14104 and inserting the following 
        new item:

``14104. Nondisclosure of board proceedings.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act, and shall apply with 
respect to the proceedings of any promotion selection board, whether 
convened before, on, or after such date.

SEC. 519. SPECIAL SELECTION BOARD AUTHORITIES.

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

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

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

            Part III--Joint Officer Management Requirements

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

    (a) Redesignation of Applicability of Policies Toward Joint 
Qualification.--Subsection (a) of section 661 of title 10, United 
States Code, is amended by striking the last sentence and inserting the 
following new sentence: ``For purposes of this chapter, officers to be 
managed by such policies, procedures, and practices are referred to as 
`joint qualified'.''.
    (b) Numbers and Designation.--Subsection (b) of such section is 
amended--
            (1) in the heading, by striking ``Selection'' and inserting 
        ``Designation'';
            (2) in paragraph (1), by striking ``of officers with the 
        joint specialty'' and inserting ``and levels of joint qualified 
        officers'';
            (3) in paragraph (2)--
                    (A) by striking ``selected for the joint 
                specialty'' and inserting ``designated as joint 
                qualified officers''; and
                    (B) by striking the second and third sentences and 
                inserting the following new sentence: ``Officers 
                considered for joint qualification shall--
            ``(A) meet criteria prescribed by the Secretary of Defense; 
        and
            ``(B) be those officers who are serving in the grade of 
        captain or, in the case of the Navy, lieutenant, or a higher 
        grade.''; and
            (4) in paragraph (3)--
                    (A) by striking ``select officers for the joint 
                specialty'' and inserting ``designate officers as joint 
                qualified officers''; and
                    (B) by striking ``the Deputy Secretary of Defense'' 
                and inserting ``the Under Secretary of Defense for 
                Personnel and Readiness''.
    (c) Education and Experience Requirements.--Subsection (c) of such 
section is amended to read as follows:
    ``(c) Education and Experience Requirements.--(1) An officer may 
not be designated as a joint qualified officer until the officer--
            ``(A)(i) successfully completes an appropriate program at a 
        joint professional military education school; and
            ``(ii) successfully completes a full tour of duty in a 
        joint duty assignment (as described in section 664(f) of this 
        title (other than in paragraph (2) of such section)); or
            ``(B) under regulations and policy prescribed by the 
        Secretary of Defense, successfully demonstrates a mastery of 
        knowledge, skills, and abilities in joint matters.
    ``(2)(A) In the case of an officer who has completed two full tours 
of duty in a joint duty assignment (as described in section 664(f) of 
this title) and demonstrates a mastery of knowledge, skills, and 
abilities on joint matters, the Secretary of Defense may waive the 
requirement that the officer have successfully completed a program of 
education referred to in paragraph (1)(A)(i) if the Secretary 
determines that the types of joint duty experiences completed by the 
officer have been of sufficient breadth to prepare the officer 
adequately for the highest level of joint qualification.
    ``(B) The authority of the Secretary of Defense to grant a waiver 
under subparagraph (A) may be delegated only to the Under Secretary of 
Defense for Personnel and Readiness.
    ``(C)(i) A waiver under subparagraph (A) may be granted only on a 
case-by-case basis.
    ``(ii) A waiver under subparagraph (A) may be granted only under 
circumstances justifying variation from the requirements of paragraph 
(1) for designation of an officer for the highest level of joint 
qualification as specified by the Secretary of Defense.
    ``(iii) In the case of a general or flag officer, a waiver under 
subparagraph (A) may be granted only under circumstances described in 
clause (ii) and circumstances in which the waiver is necessary to meet 
a critical need of the armed forces, as determined by the Chairman of 
the Joint Chiefs of Staff.
    ``(iv) In the case of officers in grades below brigadier general or 
rear admiral (lower half), the total number of waivers granted under 
subparagraph (A) for officers in the same pay grade during a fiscal 
year may not exceed 10 percent of the total number of officers in that 
pay grade selected for the highest level of joint qualification during 
that fiscal year.
    ``(D) There may not be more than 32 general and flag officers on 
active duty at the same time who were selected for the joint specialty 
or highest level of joint qualification while holding a general or flag 
officer grade and for whom a waiver was granted under subparagraph 
(A).''.
    (d) Number of Joint Duty Assignments.--Subsection (d) of such 
section is amended to read as follows:
    ``(d) Number of Joint Duty Assignments.--(1) The Secretary of 
Defense shall ensure that approximately one-half of the joint duty 
assignment positions in grades above major or, in the case of the Navy, 
lieutenant commander are filled at any time by officers who have the 
highest level of joint qualification.
    ``(2) The Secretary of Defense, with the advice of the Chairman of 
the Joint Chiefs of Staff, shall designate an appropriate number of 
joint duty assignment positions as critical joint duty assignment 
positions. A position may be designated as a critical joint duty 
assignment position only if the duties and responsibilities of the 
position make it important that the occupant be particularly trained 
in, and oriented toward, joint matters.
    ``(3)(A) Except as provided in subparagraph (B), a position 
designated under paragraph (2) may be held only by an officer who has 
the highest level of joint qualification.
    ``(B) The Secretary of Defense may waive the requirement in 
subparagraph (A) with respect to the assignment of an officer to a 
position designated under paragraph (1). Any such waiver shall be 
granted on a case-by-case basis. The authority of the Secretary to 
grant such a waiver may be delegated only to the Chairman of the Joint 
Chiefs of Staff.
    ``(4) The Secretary of Defense shall ensure that, of those joint 
duty assignment positions that are filled by general or flag officers, 
a substantial portion are among those positions that are designated 
under paragraph (2) as critical joint duty assignment positions.''.
    (e) Career Guidelines.--Subsection (e) of such section is amended 
by striking ``officers with the joint specialty'' and inserting 
``officers who are joint qualified officers''.
    (f) Treatment of Certain Service.--Subsection (f) of such section 
is amended by striking ``(including section 619(e)(1) of this title)''.
    (g) Clerical Amendment.--The table of sections at the beginning of 
chapter 38 of such title is amended by striking the item relating to 
section 661 and inserting the following new item:

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

SEC. 527. MODIFICATION OF PROMOTION POLICY OBJECTIVES FOR JOINT 
              OFFICERS.

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

SEC. 528. APPLICABILITY OF JOINT DUTY ASSIGNMENT REQUIREMENTS LIMITED 
              TO GRADUATES OF NATIONAL DEFENSE UNIVERSITY SCHOOLS.

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

SEC. 529. MODIFICATION OF DEFINITIONS RELATING TO JOINTNESS.

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

            Subtitle B--Reserve Component Personnel Matters

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

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

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

``328. National Guard active Guard and Reserve duty; additional 
                            duties.''.
    (e) Expansion of Duties of National Guard Technicians.--Section 
709(a) of such title is amended--
            (1) in paragraph (1)--
                    (A) by striking ''administration and'' and 
                inserting ''organizing, administering, instructing, 
                or''; and
                    (B) by striking ``and'' at the end;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(3) the performance of additional duties (to the extent 
        such duties do not interfere with the performance by the 
        technician of duties under paragraphs (1) and (2)) as follows:
                    ``(A) Support of operations or missions undertaken 
                by the technician's unit at the request of the 
                President or the Secretary of Defense.
                    ``(B) Support of Federal training operations or 
                Federal training missions assigned in whole or in part 
                to the technician's unit.
                    ``(C) Instructing or training members of the armed 
                forces on active duty, members of foreign military 
                forces (under authorities and limitations applicable to 
                the provision of such instruction or training by 
                members of the armed forces on active duty), Department 
                of Defense contractor personnel, and Department of 
                Defense civilian employees.''.

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

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

SEC. 533. MODIFICATION OF AUTHORITIES RELATING TO THE COMMISSION ON THE 
              NATIONAL GUARD AND RESERVES.

    (a) Annuities and Pay of Members on Federal Reemployment.--
Subsection (e) of section 513 of the Ronald W. Reagan National Defense 
Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 
1882), as amended by section 516 of the National Defense Authorization 
Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3237), is 
further amended by adding at the end the following new paragraph:
    ``(3) If warranted by circumstances described in subparagraph (A) 
or (B) of section 8344(i)(1) of title 5, United States Code, or by 
circumstances described in subparagraph (A) or (B) of section 
8468(f)(1) of such title, as applicable, the chairman of the Commission 
may exercise, with respect to the members of the Commission, the same 
waiver authority as would be available to the Director of the Office of 
Personnel Management under such section.''.
    (b) Final Report.--Subsection (f)(2) of such section 513 is amended 
by striking ``one year'' and inserting ``18 months''.
    (c) Effective Date.--The amendments made by this section shall be 
effective on October 28, 2004, as if included in the enactment of the 
Ronald W. Reagan National Defense Authorization Act for Fiscal Year 
2005. The amendment made by subsection (a) shall apply to members of 
the Commission on the National Guard and Reserves appointed on or after 
that date.

SEC. 534. PILOT PROGRAM ON REINTEGRATION OF MEMBERS OF THE NATIONAL 
              GUARD INTO CIVILIAN LIFE AFTER DEPLOYMENT.

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

            Subtitle C--Military Justice and Related Matters

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

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

               Subtitle D--Education and Training Matters

SEC. 561. DETAIL OF COMMISSIONED OFFICERS AS STUDENTS AT MEDICAL 
              SCHOOLS.

    (a) In General.--Chapter 101 of title 10, United States Code, is 
amended by inserting after section 2004 the following new section:
``Sec. 2004a. Detail of commissioned officers as students at medical 
              schools
    ``(a) Detail Authorized.--The Secretary of each military department 
may detail commissioned officers of the armed forces as students at 
accredited medical schools or schools of osteopathy located in the 
United States for a period of training leading to the degree of doctor 
of medicine. No more than 25 officers from each military department may 
commence such training in any single fiscal year.
    ``(b) Eligibility for Detail.--To be eligible for detail under 
subsection (a), an officer must be a citizen of the United States and 
must--
            ``(1) have served on active duty for a period of not less 
        than two years nor more than six years and be in the pay grade 
        0-3 or below as of the time the training is to begin; and
            ``(2) sign an agreement that unless sooner separated the 
        officer will--
                    ``(A) complete the educational course of medical 
                training;
                    ``(B) accept transfer or detail as a medical 
                officer within the military department concerned when 
                the officer's training is completed; and
                    ``(C) agree to serve on active duty following 
                completion of training for a period of two years for 
                each year or part thereof of the officer's medical 
                training under subsection (a).
    ``(c) Selection of Officers for Detail.--Officers detailed for 
medical training under subsection (a) shall be selected on a 
competitive basis by the Secretary of the military department 
concerned.
    ``(d) Relation of Service Obligations to Other Service 
Obligations.--Any service obligation incurred by an officer under an 
agreement entered into under subsection (b) shall be in addition to any 
service obligation incurred by the officer under any other provision of 
law or agreement.
    ``(e) Expenses.--Expenses incident to the detail of officers under 
this section shall be paid from any funds appropriated for the military 
department concerned.
    ``(f) Failure To Complete Program.--(1) An officer who is dropped 
from a program of medical training to which detailed under subsection 
(a) for deficiency in conduct or studies, or for other reasons, may be 
required to perform active duty in an appropriate military capacity in 
accordance with the active duty obligation imposed on the officer under 
regulations issued by the Secretary of Defense for purposes of this 
section.
    ``(2) In no case shall an officer be required to serve on active 
duty under this subsection for any period in excess of one year for 
each year or part thereof the officer participated in the program.
    ``(g) Limitation on Details.--(1) No agreement detailing an officer 
of the armed forces to an accredited medical school or school of 
osteopathy may be entered into during any period in which the President 
is authorized by law to induct persons into the armed forces 
involuntarily.
    ``(2) Nothing in this subsection shall affect any agreement entered 
into during any period when the President is not authorized by law to 
so induct persons into the armed forces.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 101 of such title is amended by inserting after the item 
relating to section 2004 the following new item:

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

SEC. 562. EXPANSION OF ELIGIBILITY TO PROVIDE JUNIOR RESERVE OFFICERS' 
              TRAINING CORPS INSTRUCTION.

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

SEC. 563. INCREASE IN MAXIMUM AMOUNT OF REPAYMENT UNDER EDUCATION LOAN 
              REPAYMENT FOR OFFICERS IN SPECIFIED HEALTH PROFESSIONS.

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

SEC. 564. INCREASE IN BENEFITS UNDER HEALTH PROFESSIONS SCHOLARSHIP AND 
              FINANCIAL ASSISTANCE PROGRAM.

    (a) Stipend.--Section 2121(d) of title 10, United States Code, is 
amended--
            (1) by striking ``the rate of $579 per month'' and 
        inserting ``in an amount not to exceed $30,000 per year''; and
            (2) by striking ``That rate'' and inserting ``The maximum 
        amount of the stipend''.
    (b) Annual Grant.--Section 2127(e) of such title is amended--
            (1) by striking ``$15,000'' and inserting ``in an amount 
        not to exceed $45,000''; and
            (2) by striking ``The amount'' and inserting ``The maximum 
        amount''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2006.
    (d) Prohibition on Adjustments in 2007.--No adjustment under 
subsection (d) of section 2122 of title 10, United States Code, in the 
maximum amount of the stipend payable under such section 2122, and no 
adjustment under subsection (e) of section 2127 of such title in the 
maximum amount of the annual grant payable under such section 2127, 
shall be made in 2007.

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

    (a) Report Required.--Not later than March 1, 2007, the Secretary 
of Defense shall submit to the congressional defense committees a 
report on the health professions scholarship and financial assistance 
program for active service under subchapter I of chapter 105 of title 
10, United States Code.
    (b) Elements.--The report required by subsection (a) shall include 
the following:
            (1) An assessment of the success of each military 
        department in achieving its recruiting goals under the health 
        professions scholarship and financial assistance program for 
        active service during each of fiscal years 2000 through 2006.
            (2) If any military department failed to achieve its 
        recruiting goals under the program during any fiscal year 
        covered by paragraph (1), an explanation of the failure of the 
        military department to achieve such goal during such fiscal 
        year.
            (3) An assessment of the adequacy of the stipend authorized 
        by section 2121(d) of title 10, United States Code, in meeting 
        the objectives of the program.
            (4) Such recommendations for legislative or administrative 
        action as the Secretary considers appropriate to enhance the 
        effectiveness of the program in meeting the annual recruiting 
        goals of the military departments for medical personnel covered 
        by the program.

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

    (a) Certificate Programs and Courses.--Subparagraph (C) of 
subsection (a)(2) of section 7045 of title 10, United States Code, is 
amended by striking ``Navy or Marine Corps'' and inserting ``armed 
forces''.
    (b) Graduate Level Instruction.--Such subsection is further 
amended--
            (1) by redesignating subparagraph (D) as subparagraph (E);
            (2) by inserting after subparagraph (C) the following new 
        subparagraph (D):
    ``(D)(i) The Secretary may, pursuant to regulations prescribed by 
the Secretary, permit an eligible enlisted member of the armed forces 
to receive graduate level instruction at the Naval Postgraduate School 
in a program leading to a master's degree in a technical, analytical, 
or engineering curricula.
    ``(ii) To be eligible for instruction under this subparagraph, an 
enlisted member shall hold a baccalaureate degree granted by an 
institution of higher education.
    ``(iii) Instruction shall be provided under this subparagraph on a 
space-available basis.
    ``(iv) An enlisted member who successfully completes a course of 
instruction under this subparagraph may be awarded a master's degree 
under section 7048 of this title.
    ``(v) The regulations prescribed under clause (i) may include 
criteria for eligibility of enlisted members for instruction under this 
subparagraph and obligations for further service in the armed forces by 
enlisted members relating to receipt of such instruction.''; and
            (3) in subparagraph (E), as so redesignated, by striking 
        ``and (C)'' and inserting ``(C), and (D)''.
    (c) Conforming Amendment.--Subsection (b)(2) of such section is 
amended by striking ``(a)(2)(D)'' and inserting ``(a)(2)(E)''.
    (d) Repeal of Certain Requirements on Instruction.--Section 526 of 
the National Defense Authorization Act for Fiscal Year 2006 (Public Law 
109-163) is amended by striking subsections (c) and (d).

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

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

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

SEC. 568. DEPARTMENT OF DEFENSE POLICY ON SERVICE ACADEMY AND ROTC 
              GRADUATES SEEKING TO PARTICIPATE IN PROFESSIONAL SPORTS 
              BEFORE COMPLETION OF THEIR ACTIVE-DUTY SERVICE 
              OBLIGATIONS.

    (a) Policy Required.--
            (1) In general.--Not later than July 1, 2007, the Secretary 
        of Defense shall prescribe the policy of the Department of 
        Defense on--
                    (A) whether to authorize graduates of the service 
                academies and the Reserve Officers' Training Corps to 
                participate in professional sports before the 
                completion of their obligations for service on active 
                duty as commissioned officers; and
                    (B) if so, the obligations for service on active 
                duty as commissioned officers of such graduates who 
                participate in professional sports before the 
                satisfaction of the obligations referred to in 
                subparagraph (A).
            (2) Review of current policies.--In prescribing the policy, 
        the Secretary shall review current policies, practices, and 
        regulations of the military departments on the obligations for 
        service on active duty as commissioned officers of graduates of 
        the service academies and the Reserve Officers' Training Corps, 
        including policies on authorized leaves of absence and policies 
        under excess leave programs.
            (3) Considerations.--In prescribing the policy, the 
        Secretary shall take into account the following:
                    (A) The compatibility of participation in 
                professional sports (including training for 
                professional sports) with service on active duty in the 
                Armed Forces or as a member of a reserve component of 
                the Armed Forces.
                    (B) The benefits for the Armed Forces of waiving 
                obligations for service on active duty for cadets, 
                midshipmen, and commissioned officers in order to 
                permit such individuals to participate in professional 
                sports.
                    (C) The manner in which the military departments 
                have resolved issues relating to the participation of 
                personnel in professional sports, including the extent 
                of and any reasons for, differences in the resolution 
                of such issues by such departments.
                    (D) The recoupment of the costs of education 
                provided by the service academies or under the Reserve 
                Officers' Training Corps program if graduates of the 
                service academies or the Reserve Officers' Training 
                Corps, as the case may be, do not complete the period 
                of obligated service to which they have agreed by 
                reason of participation in professional sports.
                    (E) Any other matters that the Secretary considers 
                appropriate.
    (b) Elements of Policy.--The policy prescribed under subsection (a) 
shall address the following matters:
            (1) The eligibility of graduates of the service academies 
        and the Reserve Officers' Training Corps for a reduction in the 
        obligated length of service on active duty as a commissioned 
        officer otherwise required of such graduates on the basis of 
        their participation in professional sports.
            (2) Criteria for the treatment of an individual as a 
        participant or potential participant in professional sports.
            (3) The effect on obligations for service on active duty as 
        a commissioned officer of any unsatisfied obligations under 
        prior enlistment contracts or other forms of advanced education 
        assistance.
            (4) Any authorized variations in the policy that are 
        warranted by the distinctive requirements of a particular Armed 
        Force.
            (5) The eligibility of individuals for medical discharge or 
        disability benefits as a result of injuries incurred while 
        participating in professional sports.
            (6) A prospective effective date for the policy and for the 
        application of the policy to individuals serving on such 
        effective date as a commissioned officer, cadet, or midshipman.
    (c) Application of Policy to Armed Forces.--Not later than December 
1, 2007, the Secretary of each military department shall prescribe 
regulations, or modify current regulations, in order to implement the 
policy prescribed by the Secretary of Defense under subsection (a) with 
respect to the Armed Forces under the jurisdiction of such Secretary.

            Subtitle E--Defense Dependents Education Matters

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

    (a) Funding for Fiscal Year 2007.--Of the amount authorized to be 
appropriated pursuant to section 301(5) for operation and maintenance 
for Defense-wide activities--
            (1) $30,000,000 shall be available only for the purpose of 
        providing assistance to local educational agencies under 
        section 572(a) of the National Defense Authorization Act for 
        Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3271; 20 U.S.C. 
        7703b); and
            (2) $10,000,000 shall be available only for the purpose of 
        providing assistance to local educational agencies under 
        section 572(b) of that Act.
    (b) Treatment of Funding for Notification Purposes.--The funding 
provided under subsection (a) for fiscal year 2007 shall be treated as 
funding for that fiscal year for purposes of the notification of local 
educational agencies required by section 572(c) of the National Defense 
Authorization Act for Fiscal Year 2006 (119 Stat. 3272).

SEC. 572. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.

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

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

    (a) Plan Required.--Not later than January 1, 2007, the Secretary 
of Defense shall submit to the congressional defense committees a 
report setting forth a plan to provide assistance to local educational 
agencies that experience growth in the enrollment of military dependent 
students as a result of any of the following events:
            (1) Force structure changes.
            (2) The relocation of a military unit.
            (3) The closure or realignment of military installations 
        pursuant to defense base closure and realignment under the base 
        closure laws.
    (b) Elements.--The report required by subsection (a) shall include 
the following:
            (1) An identification, current as of the date of the 
        report, of the total number of military dependent students who 
        are anticipated to be arriving at or departing from military 
        installations as a result of any event described in subsection 
        (a), including--
                    (A) an identification of the military installations 
                affected by such arrivals and departures;
                    (B) an estimate of the number of such students 
                arriving at or departing from each such installation; 
                and
                    (C) the anticipated schedule of such arrivals and 
                departures.
            (2) Such recommendations as the Office of Economic 
        Adjustment of the Department of Defense considers appropriate 
        for means of assisting affected local educational agencies in 
        accommodating increases in enrollment of military dependent 
        students as a result of any such event.
            (3) A plan for outreach to be conducted to affected local 
        educational agencies, commanders of military installations, and 
        members of the Armed Forces and civilian personnel of the 
        Department of Defense regarding information on the assistance 
        to be provided under the plan under subsection (a).
    (c) Update.--Not later than July 1, 2007, and every six months 
thereafter through January 1, 2011, the Secretary shall submit to the 
congressional defense committees an update of the report required by 
subsection (a). Each update shall include an update of each matter 
required under subsection (b) current as of the date of such update.
    (d) Definitions.--In this section:
            (1) The term ``base closure law'' has the meaning given 
        that term in section 101 of title 10, United States Code.
            (2) The term ``local educational agency'' has the meaning 
        given that term in section 8013(9) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7713(9)).
            (3) The term ``military dependent students'' refers to--
                    (A) elementary and secondary school students who 
                are dependents of members of the Armed Forces; and
                    (B) elementary and secondary school students who 
                are dependents of civilian employees of the Department 
                of Defense.

SEC. 574. PILOT PROGRAM ON PARENT EDUCATION TO PROMOTE EARLY CHILDHOOD 
              EDUCATION FOR DEPENDENT CHILDREN AFFECTED BY MILITARY 
              DEPLOYMENT OR RELOCATION OF MILITARY UNITS.

    (a) Pilot Program Required.--The Secretary of Defense shall carry 
out a pilot program on the provision of educational and support tools 
to the parents of preschool-age children--
            (1) whose parent or parents serve as members of the Armed 
        Forces on active duty (including members of the Selected 
        Reserve on active duty pursuant to a call or order to active 
        duty of 180 days or more); and
            (2) who are affected by the deployment of their parent or 
        parents or the relocation of the military unit of which their 
        parent or parents are a member.
    (b) Purpose.--The purpose of the pilot program is to develop models 
for improving the capability of military child and youth programs on or 
near military installations to provide assistance to military parents 
with young children through a program of activities focusing on the 
unique needs of children described in subsection (a).
    (c) Duration of Program.--The pilot program shall commence on 
October 1, 2007, and shall conclude on September 30, 2010.
    (d) Scope of Program.--The pilot program shall utilize one or more 
models (demonstrated through research) of universal access of parents 
of children described in subsection (a) to assistance under the pilot 
program in order to achieve the following goals:
            (1) The identification and mitigation of specific risk 
        factors for such children related to military life.
            (2) The maximization of the educational readiness of such 
        children.
    (e) Locations.--
            (1) In general.--The pilot program shall be carried out at 
        military installations selected by the Secretary for purposes 
        of this section from among military installations whose 
        military personnel are experiencing significant transition or 
        deployment or which are undergoing transition as a result of 
        the relocation or activation of military units or activities 
        relating to defense base closure and realignment.
            (2) Selection of certain installations.--At least one of 
        the installations selected by the Secretary under paragraph (1) 
        shall be an installation that permits the meaningful evaluation 
        of a model under subsection (d) that provides outreach to 
        parents in families with a parent who is a member of the 
        National Guard or Reserve, which families live more than 40 
        miles from the installation so selected.
    (f) Goals of Participating Installations.--Appropriate personnel at 
each military installation selected for participation in the pilot 
program shall develop goals, and specific outcome measures with respect 
to such goals, for the conduct of the pilot program at such 
installation.
    (g) Evaluation.--
            (1) Evaluation required.--Upon completion of the pilot 
        program at a military installation, the personnel referred to 
        in subsection (f) at such installation shall conduct an 
        evaluation and assessment of the success of the pilot program 
        at such installation in meeting the goals developed under that 
        subsection.
            (2) Report.--Upon completion of the evaluations under 
        paragraph (1) for all military installations participating in 
        the pilot program, the Secretary of Defense shall submit to the 
        congressional defense committees a report on such evaluations. 
        The report shall describe the results of such evaluations, and 
        may include such recommendations for legislative or 
        administrative action as the Secretary considers appropriate in 
        light of such evaluations, including recommendations for the 
        continuation of the pilot program.
    (h) Guidelines.--The Secretary shall issue guidelines applicable to 
the pilot program, including guidelines on the goals to be developed 
under subsection (f), specific outcome measures, and guidelines on the 
selection of curriculum and the conduct of developmental screening 
under the pilot program.
    (i) Funding.--Of the amounts authorized to be appropriated by 
section 301(1) for operation and maintenance for the Army, $1,500,000 
shall be available to carry out the pilot program in fiscal year 2007.

                       Subtitle F--Other Matters

SEC. 581. ADMINISTRATION OF OATHS.

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

SEC. 582. MILITARY ID CARDS FOR RETIREE DEPENDENTS WHO ARE PERMANENTLY 
              DISABLED.

    (a) In General.--Subsection (a) of section 1060b of title 10, 
United States Code, is amended to read as follows:
    ``(a) Issuance of Permanent ID Card.--(1) In issuing military ID 
cards to retiree dependents, the Secretary concerned shall issue a 
permanent ID card (not subject to renewal) to any such retiree 
dependent as follows:
            ``(A) A retiree dependent who has attained 75 years of age.
            ``(B) A retiree dependent who is permanently disabled.
    ``(2) A permanent ID card shall be issued to a retiree dependent 
under paragraph (1)(A) upon the expiration, after the retiree dependent 
attains 75 years of age, of any earlier, renewable military card or, if 
earlier, upon the request of the retiree dependent after attaining age 
75.''.
    (b) Conforming and Clerical Amendments.--
            (1) Heading amendment.--The heading of such section is 
        amended to read as follows:
``Sec. 1060b. Military ID cards: dependents and survivors of 
              retirees''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 53 of such title is amended by striking 
        the item relating to section 1060b and inserting the following 
        new item:

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

SEC. 583. MILITARY VOTING MATTERS.

    (a) Repeal of Periodic Inspector General Installation Visits for 
Assessment of Voting Assistance Programs.--Section 1566 of title 10, 
United States Code, is amended--
            (1) by striking subsection (d); and
            (2) by redesignating subsections (e) through (i) as 
        subsections (d) through (h), respectively.
    (b) Comptroller General Report.--Not later than March 1, 2007, the 
Comptroller General of the United States shall submit to Congress a 
report containing the assessment of the Comptroller General with 
respect to the following:
            (1) The programs and activities undertaken by the 
        Department of Defense to facilitate voter registration, 
        transmittal of ballots to absentee voters, and voting utilizing 
        electronic means of communication (such as electronic mail and 
        fax transmission) for military and civilian personnel covered 
        by the Uniformed and Overseas Citizens Absentee Voting Act (42 
        U.S.C. 1973ff et seq.).
            (2) The progress of the Department of Defense and the 
        Election Assistance Commission in developing a secure, 
        deployable system for Internet-based electronic voting pursuant 
        to the amendment made by section 567 of the Ronald W. Reagan 
        National Defense Authorization Act for Fiscal Year 2005 (Public 
        Law 108-375; 118 Stat. 1919).

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

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

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

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

SEC. 586. MILITARY SEVERELY INJURED CENTER.

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

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

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

                            MONTHLY BASIC PAY
                        COMMISSIONED OFFICERS\1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-10\2\.........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   8,453.10   8,729.70   8,913.60   8,964.90    9,194.10
O-7.............   7,023.90   7,350.00   7,501.20   7,621.20    7,838.40
O-6.............   5,206.20   5,719.20   6,094.50   6,094.50    6,117.60
O-5.............   4,339.80   4,888.80   5,227.50   5,291.10    5,502.00
O-4.............   3,744.60   4,334.70   4,623.90   4,688.40    4,956.90
O-3\3\..........   3,292.20   3,732.30   4,028.40   4,392.00    4,602.00
O-2\3\..........   2,844.30   3,239.70   3,731.40   3,857.40    3,936.60
O-1\3\..........   2,469.30   2,569.80   3,106.50   3,106.50    3,106.50
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-10\2\.........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   9,577.20   9,666.30  10,030.20  10,134.30   10,447.80
O-7.............   8,052.90   8,301.30   8,548.80   8,797.20    9,577.20
O-6.............   6,380.10   6,414.60   6,414.60   6,779.10    7,423.80
O-5.............   5,628.60   5,906.40   6,110.10   6,373.20    6,776.40
O-4.............   5,244.60   5,602.80   5,882.40   6,076.20    6,187.50
O-3\3\..........   4,833.30   4,982.70   5,228.40   5,355.90    5,355.90
O-2\3\..........   3,936.60   3,936.60   3,936.60   3,936.60    3,936.60
O-1\3\..........   3,106.50   3,106.50   3,106.50   3,106.50    3,106.50
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-10\2\.........      $0.00  $13,659.0  $13,725.9  $14,011.2  $14,508.60
                                     0          0          0
O-9.............       0.00  11,946.60  12,118.50  12,367.20   12,801.30
O-8.............  10,900.80  11,319.00   11598.30  11,598.30   11,598.30
O-7.............  10,236.00  10,236.00  10,236.00  10,236.00   10,287.90
O-6.............   7,802.10   8,180.10   8,395.20   8,613.00    9,035.70
O-5.............   6,968.10   7,158.00   7,373.10   7,373.10    7,373.10
O-4.............   6,252.30   6,252.30   6,252.30   6,252.30    6,252.30
O-3\3\..........   5,355.90   5,355.90   5,355.90   5,355.90    5,355.90
O-2\3\..........   3,936.60   3,936.60   3,936.60   3,936.60    3,936.60
O-1\3\..........   3,106.50   3,106.50   3,106.50   3,106.50    3,106.50
                 -------------------------------------------------------
                   Over 28    Over 30    Over 32    Over 34     Over 36
                 -------------------------------------------------------
O-10\2\.........  $14,508.6  $15,234.0  $15,234.0  $15,995.7  $15,995.70
                          0          0          0          0
O-9.............  12,801.30  13,441.50  13,441.50  14,113.50   14,113.50
O-8.............  11,598.30  11,888.40  11,888.40  12,185.70   12,185.70
O-7.............  10,287.90  10,493.70  10,493.70  10,493.70   10,493.70
O-6.............   9,035.70   9,216.30   9,216.30   9,216.30    9,216.30
O-5.............   7,373.10   7,373.10   7,373.10   7,373.10    7,373.10
O-4.............   6,252.30   6,252.30   6,252.30   6,252.30    6,252.30
O-3\3\..........   5,355.90   5,355.90   5,355.90   5,355.90    5,355.90
O-2\3\..........   3,936.60   3,936.60   3,936.60   3,936.60    3,936.60
O-1\3\..........   3,106.50   3,106.50   3,106.50   3,106.50    3,106.50
                 -------------------------------------------------------
                   Over 38    Over 40
                 -------------------------------------------------------
O-10\2\.........  $16,795.5  $16,795.5
                          0          0
O-9.............  14,819.10  14,819.10
O-8.............  12,185.70  12,185.70
O-7.............  10,493.70  10,493.70
O-6.............   9,216.30   9,216.30
O-5.............   7,373.10   7,373.10
O-4.............   6,252.30   6,252.30
O-3\3\..........   5,355.90   5,355.90
O-2\3\..........   3,936.60   3,936.60
O-1\3\..........   3,106.50  3,106.50
------------------------------------------------------------------------
\1\Notwithstanding the pay rates specified in this table, the actual
  basic pay for commissioned officers in grades O-7 through O-10 may not
  exceed the rate of pay for level II of the Executive Schedule and the
  actual basic pay for all other officers, including warrant officers,
  may not exceed the rate of pay for level V of the Executive Schedule.
\2\Subject to the preceding footnote, while serving as Chairman or Vice
  Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army,
  Chief of Naval Operations, Chief of Staff of the Air Force, Commandant
  of the Marine Corps, Commandant of the Coast Guard, or commander of a
  unified or specified combatant command (as defined in section 161(c)
  of title 10, United States Code), basic pay for this grade is
  calculated to be $17,972.10, regardless of cumulative years of service
  computed under section 205 of title 37, United States Code.
\3\This table does not apply to commissioned officers in the grade O-1,
  O-2, or O-3 who have been credited with over 4 years of active duty
  service as an enlisted member or warrant officer.


  COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN
                   ENLISTED MEMBER OR WARRANT OFFICER
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-3E............      $0.00      $0.00      $0.00  $4,392.00   $4,602.00
O-2E............       0.00       0.00       0.00   3,857.40    3,936.60
O-1E............       0.00       0.00       0.00   3,106.50    3,317.70
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-3E............  $4,833.00  $4,982.70  $5,228.40  $5,435.40   $5,554.20
O-2E............   4,062.00   4,273.50   4,437.00   4,558.80    4,558.80
O-1E............   3,440.10   3,565.50   3,688.80   3,857.40    3,857.40
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-3E............  $5,715.90  $5,715.90  $5,715.90  $5,715.90   $5,715.90
O-2E............   4,558.80   4,558.80   4,558.80   4,558.80    4,558.80
O-1E............   3,857.40   3,857.40   3,857.40   3,857.40    3,857.40
                 -------------------------------------------------------
                   Over 28    Over 30    Over 32    Over 34     Over 36
                 -------------------------------------------------------
O-3E............  $5,715.90  $5,715.90  $5,715.90  $5,715.90   $5,715.90
O-2E............   4,558.80   4,558.80   4,558.80   4,558.80    4,558.80
O-1E............   3,857.40   3,857.40   3,857.40   3,857.40    3,857.40
                 -------------------------------------------------------
                   Over 38    Over 40
                 -------------------------------------------------------
O-3E............  $5,715.90  $5,715.90
O-2E............   4,558.80   4,558.80
O-1E............   3,857.40   3,857.40
------------------------------------------------------------------------


                            WARRANT OFFICERS
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   3,402.00   3,660.00   3,765.00   3,868.50   4,046.40
W-3..............   3,106.80   3,236.40   3,369.00   3,412.80   3,552.00
W-2..............   2,749.20   3,009.30   3,089.40   3,144.60   3,322.80
W-1..............   2,413.20   2,672.40   2,742.90   2,890.50   3,065.10
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   4,222.20   4,400.70   4,669.20   4,904.40   5,128.20
W-3..............   3,825.90   4,110.90   4,245.30   4,400.40   4,560.30
W-2..............   3,600.00   3,737.10   3,872.40   4,037.70   4,166.70
W-1..............   3,322.20   3,442.20   3,610.20   3,775.50   3,905.10
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
W-5..............      $0.00  $6,049.50  $6,356.40  $6,585.00  $6,838.20
W-4..............   5,310.90   5,489.70   5,752.20   5,967.60   6,213.60
W-3..............   4,847.70   5,042.40   5,158.50   5,282.10   5,450.10
W-2..............   4,284.00   4,423.80   4,515.90   4,589.40   4,589.40
W-1..............   4,024.50   4,170.00   4,170.00   4,170.00   4,170.00
                  ------------------------------------------------------
                    Over 28    Over 30    Over 32    Over 34    Over 36
                  ------------------------------------------------------
W-5..............  $6,838.20  $7,180.20  $7,180.20  $7,539.30  $7,539.30
W-4..............   6,213.60   6,337.80   6,337.80   6,337.80   6,337.80
W-3..............   5,450.10   5,450.10   5,450.10   5,450.10   5,450.10
W-2..............   4,589.40   4,589.40   4,589.40   4,589.40   4,589.40
W-1..............   4,170.00   4,170.00   4,170.00   4,170.00   4,170.00
                  ------------------------------------------------------
                    Over 38    Over 40
                  ------------------------------------------------------
W-5..............  $7,916.40  $7,916.40
W-4..............   6,337.80   6,337.80
W-3..............   5,450.10   5,450.10
W-2..............   4,589.50   4,589.40
W-1..............   4,170.00   4,170.00
------------------------------------------------------------------------


                           ENLISTED MEMBERS\1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
E-9\2\...........      $0.00      $0.00      $0.00      $0.00      $0.00
E-8..............       0.00       0.00       0.00       0.00       0.00
E-7..............   2,339.10   2,553.00   2,650.80   2,780.70   2,881.50
E-6..............   2,023.20   2,226.00   2,324.40   2,419.80   2,519.40
E-5..............   1,854.00   1,977.90   2,073.30   2,171.40   2,323.80
E-4..............   1,699.50   1,786.50   1,883.10   1,978.50   2,062.80
E-3..............   1,534.20   1,630.80   1,729.20   1,729.20   1,729.20
E-2..............   1,458.90   1,458.90   1,458.90   1,458.90   1,458.90
E-1..............  \3\1,301.   1,301.40   1,301.40   1,301.40   1,301.40
                          40
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
E-9\2\...........      $0.00  $4,110.60  $4,203.90  $4,321.20  $4,459.50
E-8..............   3,364.80   3,513.90   3,606.00   3,716.40   3,835.80
E-7..............   3,055.20   3,152.70   3,326.70   3,471.00   3,569.70
E-6..............   2,744.10   2,831.40   3,000.00   3,051.90   3,089.70
E-5..............   2,483.70   2,613.90   2,630.10   2,630.10   2,630.10
E-4..............   2,062.80   2,062.80   2,062.80   2,062.80   2,062.80
E-3..............   1,729.20   1,729.20   1,729.20   1,729.20   1,729.20
E-2..............   1,458.90   1,458.90   1,458.90   1,458.90   1,458.90
E-1..............   1,301.40   1,301.40   1,301.40   1,301.40   1,301.40
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
E-9\2\...........  $4,598.40  $4,821.60  $5,010.30  $5,209.20  $5,512.80
E-8..............   4,051.80   4,161.30   4,347.30   4,450.50   4,704.90
E-7..............   3,674.40   3,715.50   3,852.00   3,925.20   4,204.20
E-6..............   3,133.50   3,133.50   3,133.50   3,133.50   3,133.50
E-5..............   2,630.10   2,630.10   2,630.10   2,630.10   2,630.10
E-4..............   2,062.80   2,062.80   2,062.80   2,062.80   2,062.80
E-3..............   1,729.20   1,729.20   1,729.20   1,729.20   1,729.20
E-2..............   1,458.90   1,458.90   1,458.90   1,458.90   1,458.90
E-1..............   1,301.40   1,301.40   1,301.40   1,301.40   1,301.40
                  ------------------------------------------------------
                    Over 28    Over 30    Over 32    Over 34    Over 36
                  ------------------------------------------------------
E-9\2\...........  $5,512.80  $5,788.50  $5,788.50  $6,078.00  $6,078.00
E-8..............   4,704.90   4,799.10   4,799.10   4,799.10   4,799.10
E-7..............   4,204.20   4,204.20   4,204.20   4,204.20   4,204.20
E-6..............   3,133.50   3,133.50   3,133.50   3,133.50   3,133.50
E-5..............   2,630.10   2,630.10   2,630.10   2,630.10   2,630.10
E-4..............   2,062.80   2,062.80   2,062.80   2,062.80   2,062.80
E-3..............   1,729.20   1,729.20   1,729.20   1,729.20   1,729.20
E-2..............   1,458.90   1,458.90   1,458.90   1,458.90   1,458.90
E-1..............   1,301.40   1,301.40   1,301.40   1,301.40   1,301.40
                  ------------------------------------------------------
                    Over 38    Over 40   .........
                  ------------------------------------------------------
E-9\2\...........  $6,381.90  $6,381.90
E-8..............   4,799.10   4,799.10
E-7..............   4,204.20   4,204.20
E-6..............   3,133.50   3,133.50
E-5..............   2,630.10   2,630.10
E-4..............   2,062.80   2,062.80
E-3..............   1,729.20   1,729.20
E-2..............   1,458.90   1,458.90
E-1..............   1,301.40  1,301.40
------------------------------------------------------------------------
\1\Notwithstanding the pay rates specified in this table, the actual
  basic pay for enlisted members may not exceed the rate of pay for
  level V of the Executive Schedule.
\2\Subject to the preceding footnote, while serving as Sergeant Major of
  the Army, Master Chief Petty Officer of the Navy, Chief Master
  Sergeant of the Air Force, Sergeant Major of the Marine Corps, Master
  Chief Petty Officer of the Coast Guard, or Senior Enlisted Advisor to
  the Chairman of the Joint Chiefs of Staff, basic pay for this grade is
  $6,642.60, regardless of cumulative years of service computed under
  section 205 of title 37, United States Code.
\3\In the case of members in the grade E-1 who have served less than 4
  months on active duty, basic pay is $1,203.90.

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

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

SEC. 603. CLARIFICATION OF EFFECTIVE DATE OF PROHIBITION ON 
              COMPENSATION FOR CORRESPONDENCE COURSES.

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

SEC. 604. ONE-YEAR EXTENSION OF PROHIBITION AGAINST REQUIRING CERTAIN 
              INJURED MEMBERS TO PAY FOR MEALS PROVIDED BY MILITARY 
              TREATMENT FACILITIES.

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

SEC. 605. ADDITIONAL HOUSING ALLOWANCE FOR RESERVES ON ACTIVE DUTY IN 
              SUPPORT OF A CONTINGENCY OPERATION.

    (a) In General.--Section 403(g) of title 37, United States Code, is 
amended--
            (1) by redesignating paragraphs (2), (3), and (4) as 
        paragraphs (3), (4), and (5), respectively;
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2)(A) Under regulations prescribed by the Secretary of Defense 
and the Secretary of Homeland Security with respect to the Coast Guard 
when it is not operating as a service in the Department of the Navy, 
the Secretary concerned may authorize payment of a housing allowance to 
a member described in paragraph (1) at a monthly rate equal to the rate 
of the basic allowance for housing under subsection (b) or the overseas 
basic allowance for housing under subsection (c), whichever applies to 
that location, for members of the regular components at that location 
in the same grade without dependents.
    ``(B) A member may concurrently receive a basic allowance for 
housing under paragraph (1) and a housing allowance under this 
paragraph, but may not receive the portion of the allowance, if any, 
authorized under section 404 of this title for lodging expenses if a 
housing allowance is authorized to be paid under this paragraph.''; and
            (3) in paragraph (3), as so redesignated, by striking 
        ``Paragraph (1)'' and inserting ``Paragraphs (1) and (2)''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2006, and shall apply with respect to months 
beginning on or after that date.

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

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

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

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

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

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

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

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

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

SEC. 615. INCREASE IN SPECIAL PAY FOR SELECTED RESERVE HEALTH CARE 
              PROFESSIONALS IN CRITICALLY SHORT WARTIME SPECIALTIES.

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

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

    (a) Increase in Accession Bonus for Dental Officers.--Section 
302h(a)(2) of title 37, United States Code, is amended by striking 
``$30,000'' and inserting ``$200,000''.
    (b) Accession Bonus for Medical Officers in Critically Short 
Wartime Specialities.--Chapter 5 of title 37, United States Code, is 
amended by inserting after section 302j the following new section:
``Sec. 302k. Special pay: accession bonus for medical officers in 
              critically short wartime specialties
    ``(a) Accession Bonus Authorized.--(1) A person who is a graduate 
of an accredited school of medicine or osteopathy in a specialty 
described in subsection (c) and who executes a written agreement 
described in subsection (d) to accept a commission as an officer of the 
Armed Forces and remain on active duty for a period of not less than 
four consecutive years may, upon the acceptance of the agreement by the 
Secretary concerned, be paid an accession bonus in the amount 
determined by the Secretary concerned.
    ``(2) The amount of an accession bonus under paragraph (1) may not 
exceed $400,000.
    ``(b) Limitation on Eligibility for Bonus.--A person may not be 
paid a bonus under subsection (a) if--
            ``(1) the person, in exchange for an agreement to accept an 
        appointment as an officer, received financial assistance from 
        the Department of Defense to pursue a course of study in 
        medicine or osteopathy; or
            ``(2) the Secretary concerned determines that the person is 
        not qualified to become and remain certified as a doctor or 
        osteopath in a specialty described in subsection (c).
    ``(c) Covered Specialties.--A specialty described in this 
subsection is a specialty designated by regulations as a critically 
short wartime specialty.
    ``(d) Agreement.--The agreement referred to in subsection (a) shall 
provide that, consistent with the needs of the armed service concerned, 
the person executing the agreement will be assigned to duty, for the 
period of obligated service covered by the agreement, as an officer of 
the Medical Corps of the Army or the Navy or as an officer of the Air 
Force designated as a medical officer in a specialty described in 
subsection (c).
    ``(e) Repayment.--A person who, after executing an agreement under 
subsection (a) is not commissioned as an officer of the armed forces, 
does not become licensed as a doctor or osteopath, as the case may be, 
or does not complete the period of active duty in a specialty specified 
in the agreement, shall be subject to the repayment provisions of 
section 303a(e) of this title.
    ``(f) Termination of Authority.--No agreement under this section 
may be entered into after December 31, 2007.''.
    (c) Accession Bonus for Dental Specialist Officers in Critically 
Short Wartime Specialities.--Chapter 5 of title 37, United States Code, 
as amended by subsection (b), is further amended by inserting after 
section 302k the following new section:
``Sec. 302l. Special pay: accession bonus for dental specialist 
              officers in critically short wartime specialties
    ``(a) Accession Bonus Authorized.--(1) A person who is a graduate 
of an accredited dental school in a specialty described in subsection 
(c) and who executes a written agreement described in subsection (d) to 
accept a commission as an officer of the Armed Forces and remain on 
active duty for a period of not less than four consecutive years may, 
upon the acceptance of the agreement by the Secretary concerned, be 
paid an accession bonus in the amount determined by the Secretary 
concerned.
    ``(2) The amount of an accession bonus under paragraph (1) may not 
exceed $400,000.
    ``(b) Limitation on Eligibility for Bonus.--A person may not be 
paid a bonus under subsection (a) if--
            ``(1) the person, in exchange for an agreement to accept an 
        appointment as an officer, received financial assistance from 
        the Department of Defense to pursue a course of study in 
        dentistry; or
            ``(2) the Secretary concerned determines that the person is 
        not qualified to become and remain certified as a dentist in a 
        specialty described in subsection (c).
    ``(c) Covered Specialties.--A specialty described in this 
subsection is a specialty designated by regulations as a critically 
short wartime specialty.
    ``(d) Agreement.--The agreement referred to in subsection (a) shall 
provide that, consistent with the needs of the armed service concerned, 
the person executing the agreement will be assigned to duty, for the 
period of obligated service covered by the agreement, as an officer of 
the Dental Corps of the Army or the Navy or as an officer of the Air 
Force designated as a dental officer in a specialty described in 
subsection (c).
    ``(e) Repayment.--A person who, after executing an agreement under 
subsection (a) is not commissioned as an officer of the armed forces, 
does not become licensed as a dentist or does not complete the period 
of active duty in a specialty specified in the agreement, shall be 
subject to the repayment provisions of section 303a(e) of this title.
    ``(f) Coordination With Other Accession Bonus Authority.--A person 
eligible to execute an agreement under both subsection (a) and section 
302h of this title shall elect which authority to execute the agreement 
under. A person may not execute an agreement under both subsection (a) 
and such section 302h.
    ``(g) Termination of Authority.--No agreement under this section 
may be entered into after December 31, 2007.''.
    (d) Clerical Amendment.--The table of sections at the beginning of 
chapter 5 of such title is amended by inserting after the item relating 
to section 302j the following new item:

``302k. Special pay: accession bonus for medical officers in critically 
                            short wartime specialties.
``302l. Special pay: accession bonus for dental specialist officers in 
                            critically short wartime specialties.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2006.

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

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

SEC. 618. MODIFICATION OF CERTAIN AUTHORITIES APPLICABLE TO THE 
              TARGETED SHAPING OF THE ARMED FORCES.

    (a) Voluntary Separation Pay and Benefits.
            (1) Increase in maximum amount of pay.--Subsection (f) of 
        section 1175a of title 10, United States Code, is amended by 
        striking ``two times'' and inserting ``four times''.
            (2) Extension of authority.--Subsection (k)(1) of such 
        section is amended by striking ``December 31, 2008'' and 
        inserting ``December 31, 2012''.
            (3) Repeal of limitation on applicability.--Subsection (b) 
        of section 643 of the National Defense Authorization Act for 
        Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3310; 10 U.S.C. 
        1175a note) is repealed.
    (b) Increase in Amount of Incentive Bonus for Transfer Between 
Armed Forces.--Section 327(d)(1) of title 37, United States Code, is 
amended by striking ``$2,500'' and inserting ``$10,000''.

SEC. 619. EXTENSION OF PILOT PROGRAM ON CONTRIBUTIONS TO THRIFT SAVINGS 
              PLAN FOR INITIAL ENLISTEES IN THE ARMY.

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

            Subtitle C--Travel and Transportation Allowances

SEC. 631. EXPANSION OF PAYMENT OF REPLACEMENT VALUE OF PERSONAL 
              PROPERTY DAMAGED DURING TRANSPORT AT GOVERNMENT EXPENSE.

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

             Subtitle D--Retired Pay and Survivor Benefits

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

    (a) Department of Defense Military Retirement Fund.--
            (1) Determination of contributions.--Section 1465 of title 
        10, United States Code, is amended--
                    (A) in subsection (b)(1)--
                            (i) in subparagraph (A)(ii)--
                                    (I) by striking ``(other than 
                                active duty for training)'';
                                    (II) by striking ``(other than 
                                full-time National Guard duty for 
                                training only)''; and
                                    (III) by inserting before the 
                                period at the end the following: ``, 
                                except that amounts expected to be paid 
                                to members who would be excluded from 
                                counting for active-duty end strength 
                                purposes by section 115(i) of this 
                                title for duty covered by such section 
                                shall be excluded''; and
                            (ii) in subparagraph (B)(ii)--
                                    (I) by striking ``Ready Reserve'' 
                                and inserting ``Selected Reserve''; and
                                    (II) by striking ``and other than 
                                members on full-time National Guard 
                                duty other than for training) who are'' 
                                and inserting ``) for duty''; and
                    (B) in subsection (c)(1)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``(other than 
                                active duty for training)'';
                                    (II) by striking ``(other than 
                                full-time National Guard duty for 
                                training only)''; and
                                    (III) by inserting ``other than 
                                members who would be excluded from 
                                counting for active-duty end strength 
                                purposes by section 115(i) of this 
                                title for duty covered by such 
                                section,'' after ``full-time National 
                                Guard duty,''; and
                            (ii) in subparagraph (B)--
                                    (I) by striking ``Ready Reserve'' 
                                and inserting ``Selected Reserve''; and
                                    (II) by striking ``and other than 
                                members on full-time National Guard 
                                duty other than for training) who are'' 
                                and inserting ``) for duty''.
            (2) Payments.--Section 1466(a) of such title is amended--
                    (A) in paragraph (1)(B)--
                            (i) by striking ``(other than active duty 
                        for training)'';
                            (ii) by striking ``(other than full-time 
                        National Guard duty for training only)''; and
                            (iii) by inserting before the period at the 
                        end the following: ``, except that amounts 
                        accrued for that month by members who would be 
                        excluded from counting for active-duty end 
                        strength purposes by section 115(i) of this 
                        title for duty covered by such section shall be 
                        excluded''; and
                    (B) in paragraph (2)(B)--
                            (i) by striking ``Ready Reserve'' and 
                        inserting ``Selected Reserve''; and
                            (ii) by striking ``and other than members 
                        on full-time National Guard duty other than for 
                        training) who are'' and inserting ``) for 
                        duty''.
    (b) Department of Defense Medicare-Eligible Retiree Health Care 
Fund.--
            (1) Exclusion of cadets and midshipmen from treatment on 
        active duty.--Section 1111(b) of such title is amended by 
        adding at the end the following new paragraph:
            ``(5) The term `members of the uniformed services on active 
        duty' does not include a cadet at the United States Military 
        Academy, the United States Air Force Academy, or the United 
        States Coast Guard Academy, or a midshipman at the United 
        States Naval Academy.''.
            (2) Determination of contributions.--Section 1115 of such 
        title is amended--
                    (A) in subsection (b)--
                            (i) in paragraph (1)(B)--
                                    (I) by striking ``(other than 
                                active duty for training)'';
                                    (II) by striking ``(other than 
                                full-time National Guard duty for 
                                training only)''; and
                                    (III) by inserting before the 
                                period at the end the following: ``, 
                                other than members who would be 
                                excluded from counting for active-duty 
                                end strength purposes by section 115(i) 
                                of this title for duty covered by such 
                                section''; and
                            (ii) in paragraph (2)(B)--
                                    (I) by striking ``Ready Reserve'' 
                                and inserting ``Selected Reserve''; and
                                    (II) by striking ``other than 
                                members on full-time National Guard 
                                duty other than for training)''; and
                    (B) in subsection (c)(1)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``(other than 
                                active duty for training)'';
                                    (II) by striking ``(other than 
                                full-time National Guard duty for 
                                training only)''; and
                                    (III) by inserting before the 
                                semicolon the following: ``, other than 
                                members who would be excluded from 
                                counting for active-duty end strength 
                                purposes by section 115(i) of this 
                                title for duty covered by such 
                                section''; and
                            (ii) in subparagraph (B)--
                                    (I) by striking ``Ready Reserve'' 
                                and inserting ``Selected Reserve''; and
                                    (II) by striking ``(other than 
                                members on full-time National Guard 
                                duty other than for training)''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2007.

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

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

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

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

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

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

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

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

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

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

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

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

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

                       Subtitle E--Other Matters

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

    (a) Audit Required.--
            (1) In general.--The Secretary of the Army shall conduct a 
        complete audit of the pay accounts of each member of the Army 
        wounded or injured in a combat zone who was evacuated from a 
        theater of operations for inpatient care during the period 
        beginning on May 1, 2005, and ending on April 30, 2006.
            (2) Report.--Not later than 120 days after the date of the 
        enactment of this Act, the Secretary shall submit to the 
        congressional defense committees a report on the audit 
        conducted under paragraph (1).
            (3) Report elements.--The report under paragraph (2) shall 
        include the following:
                    (A) A list of each member of the Army described in 
                paragraph (1) identified (in a manner that protects the 
                privacy of members so listed) by--
                            (i) date of wound or injury on which 
                        inclusion of such member on the list is based; 
                        and
                            (ii) grade and unit designation as of such 
                        date.
                    (B) For each member so listed, a statement of any 
                underpayment of each of any pay, allowance, or other 
                monetary benefit to which such member was entitled 
                during the period beginning on the date of such wound 
                or injury and ending on April 30, 2006, including basic 
                pay, hazardous duty pay, imminent danger pay, basic 
                allowance for housing, basic allowance for subsistence, 
                any family separation allowance, any tax exclusion for 
                combat duty, and any other pay, allowance, or monetary 
                benefit to which such member was entitled during such 
                period.
                    (C) For each member so listed, a statement of any 
                disbursements made to correct underpayments made to 
                such member as identified under subparagraph (B).
                    (D) For each member so listed, a statement of any 
                debts to the United States collected or pending 
                collection from such member.
                    (E) For each member so listed, a statement of any 
                reimbursements or debt relief granted to such member 
                for a debt identified under subparagraph (D).
                    (F) For each member so listed who has applied to 
                the United States for a relief of debt--
                            (i) a description of the nature of the debt 
                        for which relief was applied; and
                            (ii) a description of the disposition of 
                        the application, including, if granted, the 
                        date of disbursement for relief granted, and, 
                        if denied, the reasons for the denial.
                    (G) For each member so listed, a report of any 
                referral of such member to a collection or credit 
                agency.
            (4) Form.--The report under paragraph (2) shall be in 
        unclassified form, but may include a classified annex.
    (b) Assistance With Pay or Account Difficulties.--
            (1) Call assistance center.--Not later than 60 days after 
        the date of the enactment of this Act, the Secretary of Defense 
        shall establish within the Department of Defense an assistance 
        center, accessible by toll-free telephone call, through which a 
        covered member of the Armed Forces, or the primary next of kin 
        of such a member in the case of such a member who dies, may 
        secure assistance in resolving difficulties relating to the 
        military pay or accounts of such member.
            (2) Requests for assistance.--A request for assistance 
        under paragraph (1) may be made--
                    (A) by a covered member of the Armed Forces; or
                    (B) by the primary next of kin on behalf of, or 
                with respect to, a covered member of the Armed Forces.
            (3) Response to requests for assistance.--The Secretary 
        shall ensure that, in providing assistance under paragraph (1) 
        to a covered member of the Armed Forces or next of kin of such 
        a member, personnel of the assistance center established under 
        that paragraph--
                    (A) provide an initial response to the request for 
                assistance under paragraph (2) not later than 10 days 
                after receipt of such request; and
                    (B) provide a final response to the request for 
                assistance under that paragraph not later than 30 days 
                after receipt of such request.
            (4) Covered member of the armed forces defined.--In this 
        subsection, the term ``covered member of the Armed Forces'' 
        means a member of the Armed Forces wounded or injured in a 
        combat zone who is evacuated from a theater of operations for 
        inpatient care.

                         TITLE VII--HEALTH CARE

                      Subtitle A--Benefits Matters

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

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

SEC. 702. NATIONAL MAIL-ORDER PHARMACY PROGRAM.

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

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

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

SEC. 704. TRICARE COVERAGE FOR FORENSIC EXAMINATIONS FOLLOWING SEXUAL 
              ASSAULTS AND DOMESTIC VIOLENCE.

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

SEC. 705. PROHIBITION ON INCREASE IN FISCAL YEAR 2007 IN ENROLLMENT 
              FEES FOR COVERAGE UNDER TRICARE PRIME.

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

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

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

           Subtitle B--Planning, Programming, and Management

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

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

SEC. 722. RELATIONSHIP BETWEEN THE TRICARE PROGRAM AND EMPLOYER-
              SPONSORED GROUP HEALTH CARE PLANS.

    (a) In General.--Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1097b the following new section:
``Sec. 1097c. TRICARE program: relationship with employer-sponsored 
              group health plans
    ``(a) In General.--(1) The TRICARE program is the secondary payer 
for any health care services provided by an employer to a TRICARE 
eligible employee of such employer, and the spouse of such employee, 
through any group health plan offered by such employer.
    ``(2) An employer shall provide that a TRICARE eligible employee of 
such employer, and the spouse of such employee, is entitled to benefits 
and services under the group health plan offered by such employer in 
the same manner and to the same extent as similarly situated employees 
of such employer who are not TRICARE eligible employees.
    ``(3) An employer of a TRICARE eligible employee may not establish 
any condition applicable to the participation of the employee in a 
group health plan offered by such employer in connection with the 
entitlement of the employee for health care services under the TRICARE 
program, including any condition on--
            ``(A) the eligibility of the employee for participation in 
        the plan; or
            ``(B) benefits or services available to the employee under 
        the plan.
    ``(b) Prohibition on Incentives for TRICARE Eligible Employees Not 
To Enroll or To Disenroll in Group Health Plans.--(1) An employer may 
not offer a TRICARE eligible employee any financial or other benefit 
(including health services coverage that is supplemental to health 
services coverage under the TRICARE program) not to enroll, or to 
disenroll, in the group health plan offered by the employer in order to 
ensure that the TRICARE program, rather than the plan, is the primary 
payer for health care services received by the employee.
    ``(2)(A) An employer who violates the prohibition in paragraph (1) 
shall be liable to the United States for a civil penalty in an amount 
not to exceed $5,000 for each violation.
    ``(B) Any amounts collected under this paragraph shall be credited 
to the appropriation available for the TRICARE program for the fiscal 
year in which such amounts are collected.
    ``(3)(A) Except as provided in subparagraph (B), the provisions of 
section 1128A of the Social Security Act (42 U.S.C. 1320a-7a), other 
than subsections (a) and (b) of such section 1128A, which provisions 
relate to procedures for the imposition of civil money penalties for 
certain violations of the Social Security Act, shall apply to the 
imposition of penalties under paragraph (2).
    ``(B) The Secretary of Defense may provide in the regulations 
prescribed under this section for the application to the imposition of 
penalties under paragraph (2) of procedural requirements specified in 
such regulations rather than the procedural requirements referred to in 
subparagraph (A). Any procedural requirements under such regulations 
shall be comparable to the procedural requirements referred to in 
subparagraph (A).
    ``(c) Election of TRICARE Eligible Employees To Participate in 
Group Health Plan.--A TRICARE eligible employee shall have the 
opportunity to elect to participate in the group health plan offered by 
the employer of the employee and receive primary coverage for health 
care services under the plan in the same manner and to the same extent 
as similarly situated employees of such employer who are not TRICARE 
eligible employees.
    ``(d) Inapplicability to Certain Employers.--The provisions of this 
section do not apply to any employer who has fewer than 20 employees.
    ``(e) Retention of Eligibility for Coverage Under TRICARE.--Nothing 
in this section, including an election made by a TRICARE eligible 
employee under subsection (c), shall be construed to effect, modify, or 
terminate the eligibility of a TRICARE eligible employee or spouse of 
such employee for health care or dental services under this chapter in 
accordance with the other provisions of this chapter.
    ``(f) Collection of Information.--(1) To improve the administration 
of this section, the Secretary of Defense may utilize the authorities 
on collection of information set forth in paragraphs (1) and (2) of 
section 1095(k) of this title, including the authority in the second 
sentence of paragraph (2) of such section.
    ``(2) Information obtained pursuant to the use of the authorities 
in paragraph (1) may not be disclosed for any purpose of than to carry 
out the purpose of this section.
    ``(g) Outreach.--The Secretary of Defense shall, in coordination 
with the other administering Secretaries, conduct outreach to inform 
covered beneficiaries who are entitled to health care benefits under 
the TRICARE program of the rights and responsibilities of such 
beneficiaries and employers under this section.
    ``(h) Regulations.--The Secretary of Defense shall prescribe 
regulations relating to the administration and enforcement of this 
section. The regulations shall be prescribed in consultation with the 
other administering Secretaries and the Attorney General, as 
appropriate.
    ``(i) Definitions.--In this section:
            ``(1) The term `employer' includes a State or unit of local 
        government.
            ``(2) The term `group health plan' means a group health 
        plan (as that term is defined in section 5000(b)(1) of the 
        Internal Revenue Code of 1986 without regard to section 5000(d) 
        of the Internal Revenue Code of 1986).
            ``(3) The term `primary payer' means a group health plan 
        that provides a benefit that would be primary under section 
        1079(j)(1) or 1086(g) of this title.
            ``(4) The term `secondary payer' means a plan or program 
        whose medical benefits are payable only after a primary payer 
        has provided medical benefits in accordance with applicable law 
        and the plan of the primary payer.
            ``(5) The term `TRICARE eligible employee' means a covered 
        beneficiary under section 1086 of this title entitled to health 
        care benefits under the TRICARE program.
    ``(j) Effective Date.--This section shall take effect on January 1, 
2008.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 55 of such title is amended by inserting after the item 
relating to section 1097b the following new item:

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

SEC. 723. ENROLLMENT IN THE TRICARE PROGRAM.

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

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

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

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

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

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

    (a) In General.--Effective October 1, 2007, the claims processing 
requirements under the TRICARE program on the matters described in 
subsection (b) shall be identical to the claims processing requirements 
under the Medicare program on such matters.
    (b) Covered Matters.--The matters described in this subsection are 
as follows:
            (1) The utilization of single or multiple provider 
        identification numbers for purposes of the payment of health 
        care claims by Department of Defense contractors.
            (2) The documentation required to substantiate medical 
        necessity for items and services that are covered under both 
        the TRICARE program and the Medicare program.
    (c) Immediate Collection From Third-Party Payers.--
            (1) Policy required.--The Secretary of Defense, in 
        consultation with the other administering Secretaries, shall 
        prescribe in regulations a policy for the collection of amounts 
        from third-party payers as authorized by section 1095 of title 
        10, United States Code, immediately upon the presentation of 
        claims for health care services to the Department of Defense.
            (2) Overpayment.--The policy required by subsection (a) 
        shall include mechanisms for the recoupment by third-party 
        payers of amounts overpaid to the United States under the 
        policy.
    (d) Annual Reports on Claims Processing Standardization.--
            (1) In general.--Not later than October 1, 2007, and 
        annually thereafter, the Secretary of Defense shall submit to 
        the congressional defense committees a report setting forth a 
        complete list of the claims processing requirements under the 
        TRICARE program that differ from claims processing requirements 
        under the Medicare program.
            (2) Elements.--Each report under paragraph (1) shall 
        include, for each claims processing requirement listed in such 
        report, a business case that justifies maintaining such 
        requirement under the TRICARE program as a different claims 
        processing requirement than that required under the Medicare 
        program.
    (e) Definitions.--In this section:
            (1) The term ``administering Secretaries'' has the meaning 
        given that term in section 1072(3) of title 10, United States 
        Code.
            (2) The term ``Medicare program'' means the program under 
        title XVIII of the Social Security Act (42 U.S.C. 1395 et 
        seq.).
            (3) The term ``TRICARE program'' has the meaning given that 
        term in section 1072(7) of title 10, United States Code.

SEC. 726. REQUIREMENTS FOR SUPPORT OF MILITARY TREATMENT FACILITIES BY 
              CIVILIAN CONTRACTORS UNDER TRICARE.

    (a) Annual Integrated Regional Requirements on Support.--The 
Regional Director of each region under the TRICARE program shall 
develop each year integrated, comprehensive requirements for the 
support of military treatment facilities in such region that is 
provided by contract civilian health care and administrative personnel 
under the TRICARE program.
    (b) Purposes.--The purposes of the requirements established under 
subsection (a) shall be as follows:
            (1) To ensure consistent standards of quality in the 
        support of military treatment facilities by contract civilian 
        health care personnel under the TRICARE program.
            (2) To identify targeted, actionable opportunities 
        throughout each region of the TRICARE program for the most 
        efficient delivery of health care and support of military 
        treatment facilities.
            (3) To ensure the most effective use of various available 
        contracting methods in securing support of military treatment 
        facilities by civilian personnel under the TRICARE program, 
        including resource-sharing and clinical support agreements, 
        direct contracting, and venture capital investments.
            (4) To achieve savings targets for each region under the 
        TRICARE program.
    (c) Facilitation and Enhancement of Contractor Support.--
            (1) In general.--The Secretary of Defense shall take 
        appropriate actions to facilitate and enhance the support of 
        military treatment facilities under the TRICARE program in 
        order to assure maximum quality and productivity.
            (2) Actions.--In taking actions under paragraph (1), the 
        Secretary shall--
                    (A) ensure approval by a Regional Director of all 
                proposals for the support of military treatment 
                facilities in the region concerned in accordance with 
                the most current requirements established by such 
                Regional Director under subsection (a);
                    (B) ensure the availability of adequate and 
                sustainable funding support for projects which produce 
                a return on investment to the military treatment 
                facilities;
                    (C) ensure that a portion of any return on 
                investment is returned to the military treatment 
                facility to which such savings are attributable;
                    (D) require consistent standards of quality for 
                contract civilian health care personnel providing 
                support of military treatment facilities under the 
                TRICARE program, including--
                            (i) consistent credentialing requirements 
                        among military treatment ----facilities; and
                            (ii) accreditation of health care staffing 
                        firms by the Joint Commission on the 
                        Accreditation of Health Care Organization 
                        Health Care Staffing ----Standards;--
                    (E) remove financial disincentives for military 
                treatment facilities and civilian contractors to 
                initiate and sustain agreements for the support of 
                military treatment facilities by such contractors under 
                the TRICARE program;
                    (F) provide for a consistent process across all 
                regions of the TRICARE program for developing cost 
                benefit analyses of agreements for the support of 
                military treatment facilities by civilian contractors 
                under the TRICARE program based on actual cost and 
                utilization data within each region of the TRICARE 
                program; and
                    (G) provide for a system for tracking the 
                performance of each project for support of military 
                treatment facilities by a civilian contractor under the 
                TRICARE program.
    (d) Reports to Congress.--
            (1) Annual reports required.--Not later than February 1 
        each year, the Secretary shall submit to the congressional 
        defense committees a report on the support of military 
        treatment facilities by civilian contractors under the TRICARE 
        program during the preceding fiscal year.
            (2) Elements.--Each report shall set forth, for the fiscal 
        year covered by such report, the following:
                    (A) The status of the support of military health 
                treatment facilities that is provided by contract 
                civilian health care personnel under the TRICARE 
                program in each region of the TRICARE program.
                    (B) An assessment of the compliance of such support 
                with regional requirements under subsection (a).
                    (C) The number and type of agreements for the 
                support of military treatment facilities by contract 
                civilian health care personnel.
                    (D) The standards of quality in effect under the 
                requirements under subsection (a).
                    (E) The savings anticipated, and any savings 
                achieved, as a result of the implementation of the 
                requirements under subsection (a).

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

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

SEC. 728. DISEASE AND CHRONIC CARE MANAGEMENT.

    (a) Program Required.--Not later than October 1, 2007, the 
Secretary of Defense shall establish and implement throughout the 
military health care system a fully-integrated program on disease and 
chronic care management that provides, to the extent practicable, 
uniform policies and practices, and regional execution of such policies 
and practices, on disease management and chronic care management 
throughout that system, including both military hospitals and clinics 
and civilian healthcare providers.
    (b) Purposes of Program.--The purposes of the program required by 
subsection (a) are as follows:
            (1) To facilitate the improvement of the health status of 
        individuals under care in the military health care system.
            (2) To ensure the availability of effective health care 
        services in that system for individuals with diseases and other 
        chronic conditions.
            (3) To ensure the proper allocation of health care 
        resources for individuals who need care for disease or other 
        chronic conditions.
    (c) Elements.--The program required by subsection (a) shall meet 
the following requirements:
            (1) Based on uniform policies prescribed by the Secretary 
        under subsection (a), the program shall, at a minimum, address 
        the following chronic diseases and conditions:
                    (A) Diabetes.
                    (B) Cancer.
                    (C) Heart disease.
                    (D) Asthma.
                    (E) Chronic obstructive pulmonary disorder.
                    (F) Depression and anxiety disorders.
            (2) The program shall meet nationally-recognized 
        accreditation standards for disease and chronic care 
        management.
            (3) The program shall include specific outcome measures and 
        objectives on disease and chronic care management.
            (4) The program shall include strategies for disease and 
        chronic care management for all beneficiaries, including 
        beneficiaries eligible for benefits under the Medicare program 
        under title XVIII of the Social Security Act (42 U.S.C. 1395 et 
        seq.), for whom the TRICARE program is not the primary payer 
        for health care benefits.
            (5) Activities under the program shall conform to 
        applicable laws and regulations relating to the confidentiality 
        of health care information.
    (d) Design of Certain Portions of Program.--As part of the program 
required under subsection (a), the Secretary may contract for the 
design of a disease and chronic care management program for the 
military health care system.
    (e) Actions To Facilitate Program.--In order to facilitate the 
carrying out of the program required by subsection (a), the Secretary 
shall--
            (1) require a comprehensive analysis of the disease and 
        chronic care management opportunities within each region of the 
        TRICARE program, including within military treatment facilities 
        and through contractors under the TRICARE program;
            (2) ensure continuous, adequate funding of disease and 
        chronic care management activities throughout the military 
        health care system in order to achieve maximum health outcomes 
        and cost avoidance;
            (3) eliminate, to the extent practicable, any financial 
        disincentives to sustained investment by military hospitals and 
        health care services contractors of the Department of Defense 
        in the disease and chronic care management activities of the 
        Department;
            (4) ensure that appropriate clinical and claims data, 
        including pharmacy utilization data, is available for use in 
        implementing the program;
            (5) ensure outreach to eligible beneficiaries, who, on the 
        basis of their clinical conditions, are candidates for the 
        program utilizing print and electronic media, telephone, and 
        personal interaction; and
            (6) provide a system for monitoring improvements in health 
        status and clinical outcomes under the program and savings 
        associated with the program.
    (f) Comptroller General Report.--Not later than September 15, 2007, 
the Comptroller General of the United States shall submit to the 
congressional defense committees a report on the program required by 
subsection (a). The report shall include the following:
            (1) An assessment of the progress made toward 
        implementation of the program.
            (2) A description and assessment of the integration of 
        disease and chronic care management strategies in the regional 
        business plan of the TRICARE Regional Offices.
            (3) An assessment of the readiness of the Department to 
        implement the program by October 1, 2007.
    (g) Secretary of Defense Reports.--
            (1) In general.--Not later than January 1, 2008, and every 
        year thereafter, the Secretary shall submit to the 
        congressional defense committees a report on the program 
        required by subsection (a).
            (2) Report elements.--Each report required by this 
        subsection shall include the following:
                    (A) An assessment of the program during the one-
                year period ending on the date of such report.
                    (B) A description and assessment of improvements in 
                health status and clinical outcomes.
                    (C) A description of the savings and return on 
                investment associated with the program.
                    (D) A description of an investment strategy to 
                assure the sustainment of the disease and chronic care 
                management programs of the Department of Defense.

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

    (a) In General.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary of Defense shall prescribe in 
regulations requirements applicable to the conduct of post-deployment 
health assessments for members of the Armed Forces returning from 
deployment in support of a contingency operation.
    (b) General Requirements.--The regulations prescribed under 
subsection (a) shall require the following:
            (1) That a health assessment be conducted on each member of 
        the Armed Forces returning from deployment in support of a 
        contingency operation within such time after the return of such 
        member from deployment as the Secretary shall specify in the 
        regulations.
            (2) That each health assessment be conducted by a 
        healthcare provider having such qualifications as the Secretary 
        shall specify in the regulations.
            (3) That each health assessment assess such health-related 
        matters as the Secretary shall specify in the regulations, 
        including an assessment of mental health for referral of a 
        member for further evaluation relating to mental health 
        (including evaluation of the effects of combat or operational 
        stress).
            (4) That the results of each health assessment be stored in 
        a centralized data base maintained by the Secretary under this 
        section.
    (c) Assessments of Mental Health.--
            (1) Criteria for referral for further evaluations.--The 
        regulations prescribed under subsection (a) shall include--
                    (A) criteria to be utilized by healthcare providers 
                in determining whether to refer a member of the Armed 
                Forces for further evaluation relating to mental 
                health;
                    (B) mechanisms to ensure that healthcare providers 
                are trained in the application of such criteria in 
                making such determinations; and
                    (C) mechanisms for oversight to ensure that 
                healthcare providers apply such criteria consistently.
            (2) Availability of referral.--Under the regulations, a 
        copy of a referral of a member for further evaluation relating 
        to mental health shall be--
                    (A) provided to the member;
                    (B) placed in the healthcare record of the member 
                that is maintained by the Department of Defense; and
                    (C) provided to the healthcare manager of the 
                member.
            (3) Tracking mechanisms.--The regulations shall include 
        mechanisms to ensure that a member who receives a referral for 
        further evaluation relating to mental health receives such 
        evaluation and obtains such care and services as are warranted.
            (4) Quality assurance.--The regulations shall include a 
        requirement that the Department address, as part of the 
        deployment health assessment quality assurance program of the 
        Department, the following:
                    (A) The types of healthcare providers conducting 
                post-deployment health assessments.
                    (B) The training received by such providers 
                applicable to the conduct of such assessments, 
                including training on assessments and referrals 
                relating to mental health.
                    (C) The guidance available to such providers on how 
                to apply the criteria prescribed under paragraph (1)(A) 
                in determining whether to make a referral for further 
                evaluation of a member of the Armed Forces relating to 
                mental health.
                    (D) The effectiveness of the tracking mechanisms 
                required under paragraph (3) in ensuring that members 
                who receive referrals for further evaluations relating 
                to mental health receive such evaluations and obtain 
                such care and services as are warranted.
    (d) Comptroller General Reports on Implementation of 
Requirements.--
            (1) Study on implementation.--The Comptroller General of 
        the United States shall carry out a study of the implementation 
        of the requirements prescribed under this section.
            (2) Periodic evaluation of mental health assessment 
        processes.--The Comptroller General shall, on a periodic basis, 
        evaluate the following:
                    (A) The compliance of the Department of Defense and 
                healthcare providers with the requirements under this 
                section applicable to the assessment and referral of 
                members of the Armed Forces relating to mental health.
                    (B) The effectiveness of the processes under such 
                requirements in addressing the mental health care needs 
                of members returning from deployments overseas.
            (3) Reports.--(A) Not later than March 1, 2007, the 
        Comptroller General shall submit to the Committees on Armed 
        Services of the Senate and the House of Representatives a 
        report on the study carried out under paragraph (1).
            (B) Upon completion of an evaluation under paragraph (2), 
        the Comptroller General shall submit to the committees of 
        Congress referred to in subparagraph (A) a report on such 
        evaluation.
    (e) Contingency Operation Defined.--In this section, the term 
``contingency operation'' has the meaning given that term in section 
101(a)(13) of title 10, United States Code.

                    Subtitle C--Studies and Reports

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

    (a) Pilot Projects Required.--The Secretary of Defense shall carry 
out not less than three pilot projects to evaluate the efficacy of 
various approaches to improving the capability of the military and 
civilian health care systems to provide early diagnosis and treatment 
of Post Traumatic Stress Disorder (PTSD) and other mental health 
conditions.
    (b) Duration.--The requirement to carry out pilot projects under 
this section shall commence on October 1, 2007. Any pilot projects 
carried out under this section shall cease on September 30, 2008.
    (c) Pilot Project Requirements.--
            (1) Mobilization-demobilization facility.--
                    (A) In general.--One of the pilot projects under 
                this section shall be carried out at a military medical 
                facility at a large military installation at which the 
                mobilization or demobilization of members of the Armed 
                Forces occurs.
                    (B) Elements.--The pilot project under this 
                paragraph shall be designed to evaluate and produce 
                effective diagnostic and treatment approaches for use 
                by primary care providers in the military health care 
                system in order to improve the capability of such 
                providers to diagnose and treat Post Traumatic Stress 
                Disorder in a manner that avoids the referral of 
                patients to specialty care by a psychiatrist or other 
                mental health professional.
            (2) National guard or reserve facility.--
                    (A) In general.--One of the pilot projects under 
                this section shall be carried out at the location of a 
                National Guard or Reserve unit or units that are 
                located more than 40 miles from a military medical 
                facility and whose personnel are served primarily by 
                civilian community health resources.
                    (B) Elements.--The pilot project under this 
                paragraph shall be designed--
                            (i) to evaluate approaches for providing 
                        evidence-based clinical information on Post 
                        Traumatic Stress Disorder to civilian primary 
                        care providers; and
                            (ii) to develop educational materials and 
                        other tools for use by members of the National 
                        Guard or Reserve who come into contact with 
                        other members of the National Guard or Reserve 
                        who may suffer from Post Traumatic Stress 
                        Disorder in order to encourage and facilitate 
                        early reporting and referral for treatment.
            (3) Internet-based diagnosis and treatment.--One of the 
        pilot projects under this section shall be designed to 
        evaluate--
                    (A) Internet-based automated tools available to 
                military and civilian health care providers for the 
                early diagnosis and treatment of Post Traumatic Stress 
                Disorder, and for tracking patients who suffer from 
                Post Traumatic Stress Disorder; and
                    (B) Internet-based tools available to family 
                members of members of the Armed Forces in order to 
                assist such family members in the identification of the 
                emergence of Post Traumatic Stress Disorder.
    (d) Evaluation of Pilot Projects.--The Secretary shall evaluate 
each pilot project carried out under this section in order to assess 
the effectiveness of the approaches taken under such pilot project--
            (1) to improve the capability of the military and civilian 
        health care systems to provide early diagnosis and treatment of 
        Post Traumatic Stress Disorder and other mental health 
        conditions among members of the regular components of the Armed 
        Forces, and among members of the National Guard and Reserves, 
        who have returned from deployment; and
            (2) to provide outreach to the family members of the 
        members of the Armed Forces described in paragraph (1) on Post 
        Traumatic Stress Disorder and other mental health conditions 
        among such members of the Armed Forces.
    (e) Report to Congress.--
            (1) Report required.--Not later than December 31, 2008, the 
        Secretary shall submit to the congressional defense committees 
        a report on the pilot projects carried out under this section.
            (2) Elements.--The report required by paragraph (1) shall 
        include the following:
                    (A) A description of each pilot project carried out 
                under this section.
                    (B) An assessment of the effectiveness of the 
                approaches taken under each pilot project to improve 
                the capability of the military and civilian health care 
                systems to provide early diagnosis and treatment of 
                Post Traumatic Stress Disorder and other mental health 
                conditions among members of the Armed Forces.
                    (C) Any recommendations for legislative or 
                administrative action that the Secretary considers 
                appropriate in light of the pilot projects, including 
                recommendations on--
                            (i) the training of health care providers 
                        in the military and civilian health care 
                        systems on early diagnosis and treatment of 
                        Post Traumatic Stress Disorder and other mental 
                        health conditions; and
                            (ii) the provision of outreach on Post 
                        Traumatic Stress Disorder and other mental 
                        health conditions to members of the National 
                        Guard and Reserves who have returned from 
                        deployment.
                    (D) A plan, in light of the pilot projects, for the 
                improvement of the health care services provided to 
                members of the Armed Forces in order to better assure 
                the early diagnosis and treatment of Post Traumatic 
                Stress Disorder and other mental health conditions 
                among members of the Armed Forces, including a specific 
                plan for outreach on Post Traumatic Stress Disorder and 
                other mental health conditions to members of the 
                National Guard and Reserve who have returned from 
                deployment in order to facilitate and enhance the early 
                diagnosis and treatment of Post Traumatic Stress 
                Disorder and other mental health conditions among such 
                members of the National Guard and Reserves.
    (f) Funding.--
            (1) In general.--Of the amount authorized to be 
        appropriated by section 303(a) for the Defense Health Program, 
        $10,000,000 shall be available for pilot projects under this 
        section.
            (2) Availability.--The amount available under paragraph (1) 
        shall remain available until expended.

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

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

SEC. 743. COMPTROLLER GENERAL STUDY ON DEPARTMENT OF DEFENSE PHARMACY 
              BENEFITS PROGRAM.

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

SEC. 744. COMPTROLLER GENERAL AUDITS OF DEPARTMENT OF DEFENSE HEALTH 
              CARE COSTS AND COST-SAVING MEASURES.

    (a) General Audit Required.--
            (1) In general.--The Comptroller General of the United 
        States shall conduct an audit of the health care costs and 
        cost-saving measures of the Department of Defense in accordance 
        with this subsection. The Comptroller General shall conduct the 
        audit in conjunction with the Department of Defense initiative 
        to manage future medical benefits available through the 
        Department known as ``Sustain the Benefit''.
            (2) Elements.--The audit required by paragraph (1) shall 
        examine the following:
                    (A) The basis for the calculation by the Department 
                of Defense of the portion of the costs of health care 
                benefits provided by the Department to beneficiaries 
                that were paid by such beneficiaries in each of 1995 
                and 2005, including--
                            (i) a comparison of the cost to the 
                        Department of providing such benefits in each 
                        of 1995 and 2005;
                            (ii) the explanation for any increases in 
                        the costs of the Department of providing such 
                        benefits between 1995 and 2005; and
                            (iii) a comparison of the amounts paid, by 
                        category of beneficiaries, for health care 
                        benefits in 1995 with the amounts paid, by 
                        category of beneficiaries, for such benefits in 
                        2005.
                    (B) The calculations and assumptions utilized by 
                the Department in estimating the savings anticipated 
                through the implementation of proposed increases in 
                cost-sharing for health care benefits beginning in 
                2007.
                    (C) The average annual rate of increase, based on 
                inflation, of medical costs for the Department under 
                the Defense Health Program.
                    (D) The annual rate of growth in the cost of the 
                Defense Health Program that is attributable to 
                inflation in the cost of medical services over the last 
                five years and how such rate of growth compares with 
                annual rates of increases in health care premiums under 
                the Federal Employee Health Benefit Program and other 
                health care programs as well as rates of growth of 
                other health care cost indices over that time.
                    (E) The assumptions utilized by the Department in 
                estimating savings associated with adjustments in 
                copayments for pharmaceuticals.
                    (F) The costs of the administration of the Defense 
                Health Program and the TRICARE program for all 
                categories of beneficiaries.
    (c) Audit of TRICARE Reserve Select Program.--
            (1) In general.--In addition to the audit required by 
        subsection (a), the Comptroller General shall conduct an audit 
        of the costs of the Department of Defense in implementing the 
        TRICARE Reserve Select Program.
            (2) Elements.--The audit required by paragraph (1) shall 
        include an examination of the following:
                    (A) A comparison of the annual premium amounts 
                established by the Department of Defense for the 
                TRICARE Reserve Select Program with the actual costs of 
                the Department in providing benefits under that program 
                in fiscal years 2004 and 2005.
                    (B) The rate of inflation of health care costs of 
                the Department during fiscal years 2004 and 2005, and a 
                comparison of that rate of inflation with the annual 
                increase in premiums under the TRICARE Reserve Select 
                Program in January 2006.
                    (C) A comparison of the financial and health-care 
                utilization assumptions utilized by the Department in 
                establishing premiums under the TRICARE Reserve Select 
                Program with actual experiences under that program in 
                the first year of the implementation of that program.
            (3) TRICARE reserve select program defined.--In this 
        section, the term ``TRICARE Reserve Select Program'' means the 
        program carried out under section 1074d of title 10, United 
        States Code.
    (d) Use of Independent Experts.--Notwithstanding any other 
provision of law, in conducting the audits required by this section, 
the Comptroller General may engage the services of appropriate 
independent experts, including actuaries.
    (e) Report.--Not later than April 1, 2007, the Comptroller General 
shall submit to the congressional defense committees a report on the 
audits conducted under this section. The report shall include--
            (1) the findings of the Comptroller General as a result of 
        the audits; and
            (2) such recommendations as the Comptroller General 
        considers appropriate in light of such findings to ensure 
        maximum efficiency in the administration of the health care 
        benefits programs of the Department of Defense.

SEC. 745. REVIEW OF DEPARTMENT OF DEFENSE MEDICAL QUALITY IMPROVEMENT 
              PROGRAM.

    (a) Review Required.--The Secretary of Defense shall enter into a 
contract with the Institute of Medicine of the National Academy of 
Sciences, or another similarly qualified independent academic medical 
organization, for the purpose of conducting an independent review of 
the Department of Defense medical quality improvement program.
    (b) Elements.--The review required pursuant to subsection (a) shall 
include the following:
            (1) An assessment of the methods used by the Department of 
        Defense to monitor medical quality in services provided in 
        military hospitals and clinics and in services provided in 
        civilian hospitals and providers under the military health care 
        system.
            (2) An assessment of the transparency and public reporting 
        mechanisms of the Department on medical quality.
            (3) An assessment of how the Department incorporates 
        medical quality into performance measures for military and 
        civilian health care providers within the military health care 
        system.
            (4) An assessment of the patient safety programs of the 
        Department.
            (5) A description of the extent to which the Department 
        seeks to address particular medical errors, and an assessment 
        of the adequacy of such efforts.
            (6) An assessment of accountability within the military 
        health care system for preventable negative outcomes involving 
        negligence.
            (7) An assessment of the performance of the health care 
        safety and quality measures of the Department.
            (8) An assessment of the collaboration of the Department 
        with national initiatives to develop evidence-based quality 
        measures and intervention strategies, especially the 
        initiatives of the Agency for Health Care Research and Quality 
        within the Department of Health and Human Services.
            (9) A comparison of the methods, mechanisms, and programs 
        and activities referred to in paragraphs (1) through (8) with 
        similar methods, mechanisms, programs, and activities used in 
        other public and private health care systems and organizations.
    (c) Report.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, the Secretary shall submit to the 
        congressional defense committees a report on the review 
        required pursuant to subsection (a).
            (2) Elements.--The report required by paragraph (1) shall 
        include the following:
                    (A) The results of the review required pursuant to 
                subsection (a).
                    (B) A discussion of recent highlights in the 
                accomplishments of the Department of Defense medical 
                quality assurance program.
                    (C) Such recommendations for legislative or 
                administrative action as the Secretary considers 
                appropriate for the improvement of the program.

                       Subtitle D--Other Matters

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

    Section 744(a)(1) of the National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3360; 10 U.S.C. 129c 
note) is amended--
            (1) by inserting ``in a fiscal year'' before ``until'';
            (2) by inserting ``with respect to that fiscal year'' after 
        ``House of Representatives''; and
            (3) by striking the last sentence and inserting the 
        following new sentences: ``The certification with respect to 
        fiscal year 2007 may not be submitted before June 30, 2006. The 
        certification with respect to any fiscal year after fiscal year 
        2007 shall be submitted at the same time the budget of the 
        President for such fiscal year is submitted to Congress 
        pursuant to section 1105(a) of title 31, United States Code.''.

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

             Subtitle A--Acquisition Policy and Management

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

    (a) Additional Certification Requirements.--Subsection (a) of 
section 2366a of title 10, United States Code, is amended--
            (1) in paragraph (6), by striking ``and'' at the end;
            (2) redesignating paragraph (7) as paragraph (10); and
            (3) by inserting after paragraph (6) the following new 
        paragraphs:
            ``(7) the program is needed to meet validated requirements 
        consistent with the national military strategy;
            ``(8) reasonable estimates have been developed to execute 
        the product development and production plan under the program;
            ``(9) funding is available to execute the product 
        development and production plan under the program consistent 
        with the estimates described in paragraph (8) for the program; 
        and''.
    (b) Waiver for National Security.--Subsection (c) of such section 
is amended by striking ``(5), or (6)'' and inserting ``(5), (6), (7), 
(8), or (9)''.

SEC. 802. EXTENSION AND ENHANCEMENT OF DEFENSE ACQUISITION CHALLENGE 
              PROGRAM.

    (a) Priority for Proposals from Certain Businesses.--Paragraph (5) 
of subsection (b) of section 2359b of title 10, United States Code, is 
amended to read as follows:
    ``(5) The Under Secretary--
            ``(A) may establish procedures to ensure that the Challenge 
        Program does not become an avenue for the repetitive submission 
        of proposals that have been previously reviewed and found not 
        to have merit; and
            ``(B) may establish procedures to ensure that the Challenge 
        Program establishes appropriate priorities for proposals from 
        businesses that are not major contractors with the Department 
        of Defense.''.
    (b) Extension.--Subsection (j) of such section is amended by 
striking ``September 30, 2007'' and inserting ``September 30, 2012''.

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

    (a) Specification of Original Baseline Estimate.--Section 
2435(d)(1) of title 10, United States Code, is amended by inserting 
after ``with respect to the program under subsection (a)'' the 
following: ``in preparation for entry into system development and 
demonstration, or at program initiation, whichever occurs later''.
    (b) Reports to Congress on Certain Cost Increases.--Section 
2433(e)(1) of such title is amended by adding at the end the following 
new subparagraph:
    ``(C) If the Secretary concerned determines that the program 
acquisition unit cost or procurement unit cost of a major defense 
acquisition program has increased by a percentage equal to or greater 
than the significant cost growth threshold for the program and a 
Selected Acquisition Report has been submitted to Congress under 
subparagraph (A) or (B), each subsequent quarterly or comprehensive 
annual Selected Acquisition Report shall include the information 
required by subsection (g). No further report on increases in the 
program acquisition unit cost or procurement unit cost shall be 
required under subsection (c) or (d) unless the program manager has 
reasonable cause to believe that the program acquisition unit cost or 
procurement unit cost has increased by a percentage equal to or greater 
than the critical cost growth threshold.''.

SEC. 804. MAJOR AUTOMATED INFORMATION SYSTEM PROGRAMS.

    (a) Reports and Information on Program Cost and Performance.--
            (1) In general.--Part IV of subtitle A of title 10, United 
        States Code, is amended by inserting after chapter 144 the 
        following new chapter:

      ``CHAPTER 144A--MAJOR AUTOMATED INFORMATION SYSTEM PROGRAMS

``Sec.
``2445a. Major automated information system program defined.
``2445b. Cost, schedule, and performance information.
``2445c. Reports: quarterly reports; reports on program changes.
``2445d. Construction with other reporting requirements.
``Sec. 2445a. Major automated information system program defined
    ``(a) In General.--In this chapter, the term `major automated 
information system program' means a Department of Defense program for 
the acquisition of an automated information system (either as a product 
or a service) if--
            ``(1) the program is designated by the Secretary of 
        Defense, or a designee of the Secretary, as a major automated 
        information system program; or
            ``(2) the dollar value of the program is estimated to 
        exceed--
                    ``(A) $32,000,000 in fiscal year 2000 constant 
                dollars for all program costs in a single fiscal year;
                    ``(B) $126,000,000 in fiscal year 2000 constant 
                dollars for all program acquisition costs for the 
                entire program; or
                    ``(C) $378,000,000 in fiscal year 2000 constant 
                dollars for the total life-cycle costs of the program 
                (including operation and maintenance costs).
    ``(b) Adjustment.--The Secretary of Defense may adjust the amounts 
(and base fiscal year) set forth in subsection (a) on the basis of 
Department of Defense escalation rates. An adjustment under this 
subsection shall be effective after the Secretary transmits a written 
notification of the adjustment to the congressional defense committees.
``Sec. 2445b. Cost, schedule, and performance information
    ``(a) Submittal of Cost, Schedule, and Performance Information.--
The Secretary of Defense shall submit to Congress each calendar year, 
not later than 45 days after the President submits to Congress the 
budget for a fiscal year under section 1105 of title 31, budget 
justification documents regarding cost, schedule, and performance for 
each major automated information system program for which funds are 
requested by the President in the budget.
    ``(b) Elements.--The documents submitted under subsection (a) with 
respect to a major automated information system program shall include 
detailed and summarized information with respect to the automated 
information system to be acquired under the program, and shall 
specifically include each of the following:
            ``(1) The development schedule, including major milestones.
            ``(2) The implementation schedule, including estimates of 
        milestone dates, initial operational capability, and full 
        operational capability
            ``(3) Estimates of development costs and full life-cycle 
        costs.
            ``(4) A summary of key performance parameters.
``Sec. 2445c. Reports: quarterly reports; reports on program changes
    ``(a) Quarterly Reports by Program Managers.--The program manager 
of a major automated information system program shall, on a quarterly 
basis, submit to the senior Department of Defense official responsible 
for the program a written report identifying any variance in the 
projected development schedule, implementation schedule, life-cycle 
costs, or key performance parameters for the major automated 
information system to be acquired under the program from such 
information as originally submitted to Congress under section 2445b of 
this title.
    ``(b) Senior Officials Responsible for Programs.--For purposes of 
this section, the senior Department of Defense official responsible for 
a major automated information system program is--
            ``(1) in the case of an automated information system to be 
        acquired for a military department, the senior acquisition 
        executive for the military department; or
            ``(2) in the case of any other automated information system 
        to be acquired for the Department of Defense or any component 
        of the Department of Defense, the Under Secretary of Defense 
        for Acquisition, Technology, and Logistics.
    ``(c) Report on significant changes in program.--
            ``(1) In general.--If, based on a quarterly report 
        submitted by the program manager of a major automated 
        information system program pursuant to subsection (a), the 
        senior Department of Defense official responsible for the 
        program makes a determination described in paragraph (2), the 
        official shall, not later than 45 days after receiving such 
        report, notify the congressional defense committees in writing 
        of such determination.
            ``(2) Covered determination.--A determination described in 
        this paragraph with respect to a major automated information 
        system program is a determination that--
                    ``(A) there has been a schedule change that will 
                cause a delay of more than six months but less than a 
                year in any program schedule milestone or significant 
                event from the schedule originally submitted to 
                Congress under paragraph (1) or (2) of section 2445b(b) 
                of this title;
                    ``(B) the estimated program development cost or 
                full life-cycle cost for the program has increased by 
                at least 15 percent, but less than 25 percent, over the 
                original estimate submitted to Congress under paragraph 
                (3) of section 2445b(b) of this title; or
                    ``(C) there has been a significant, adverse change 
                in the expected performance of the major automated 
                information system to be acquired under the program 
                from the parameters originally submitted to Congress 
                under paragraph (4) of section 2445b(b) of this title.
    ``(d) Report on Critical Changes in Program.--
            ``(1) In general.--If, based on a quarterly report 
        submitted by the program manager of a major automated 
        information system program pursuant to subsection (a), the 
        senior Department of Defense official responsible for the 
        program makes a determination described in paragraph (2), the 
        official shall, not later than 60 days after receiving such 
        report--
                    ``(A) carry out an evaluation of the program under 
                subsection (e); and
                    ``(B) submit, through the Secretary of Defense, to 
                the congressional defense committees a report meeting 
                the requirements of subsection (f).
            ``(2) Covered determination.--A determination described in 
        this paragraph with respect to a major automated information 
        system program is a determination that--
                    ``(A) there has been a schedule change that will 
                cause a delay of one year or more in any program 
                schedule milestone or significant event from the 
                schedule originally submitted to Congress under 
                paragraph (1) or (2) of section 2445b(b) of this title;
                    ``(B) the estimated program development cost or 
                full life-cycle cost for the program has increased by 
                25 percent or more over the original estimate submitted 
                to Congress under paragraph (3) of section 2445b(b) of 
                this title; or
                    ``(C) there has been a change in the expected 
                performance of the major automated information system 
                to be acquired under the program that will undermine 
                the ability of the system to perform the functions 
                anticipated at the time information on the program was 
                originally submitted to Congress under section 2445b(b) 
                of this title.
    ``(e) Program Evaluation.--The evaluation of a major automated 
information system program conducted under this subsection for purposes 
of subsection (d)(1)(A) shall include an assessment of--
            ``(1) the projected cost and schedule for completing the 
        program if current requirements are not modified;
            ``(2) the projected cost and schedule for completing the 
        program based on reasonable modification of such requirements; 
        and
            ``(3) the rough order of magnitude of the cost and schedule 
        for any reasonable alternative system or capability.
    ``(f) Report on Critical Program Changes.--A report on a major 
automated information system program conducted under this subsection 
for purposes of subsection (d)(1)(B) shall include a written 
certification (with supporting explanation) stating that--
            ``(1) the automated information system to be acquired under 
        the program is essential to the national security or to the 
        efficient management of the Department of Defense;
            ``(2) there is no alternative to the system which will 
        provide equal or greater capability at less cost;
            ``(3) the new estimates of the costs, schedule, and 
        performance parameters with respect to the program and system 
        are reasonable; and
            ``(4) the management structure for the program is adequate 
        to manage and control program costs.
``Sec. 2445d. Construction with other reporting requirements
    ``In the case of a major automated information system program 
covered by this chapter that is also treatable as a major defense 
acquisition program for which reports would be required under chapter 
144 of this title, no reports on the program are required under such 
chapter if the requirements of this chapter with respect to the program 
are met.''.
            (2) Clerical amendments.--The tables of chapters the 
        beginning of subtitle A of such title, and of part IV of 
        subtitle A of such title, are each amended by inserting after 
        the item relating to chapter 144 the following new item:

``144A. Major Automated Information System Programs.........   2445a''.
    (b) Report on Reporting Requirements Applicable to Major Automated 
Information System Programs.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report setting forth the reporting 
requirements applicable to major automated information system programs 
as of the date of the report, including a specification of such 
reporting requirements considered by the Secretary to be duplicative or 
redundant.
    (c) Effective Date.--
            (1) In general.--The amendments made by subsection (a) 
        shall take effect on January 1, 2008, and shall apply with 
        respect to any major automated information system program for 
        which amounts are requested in the budget of the President (as 
        submitted to Congress under section 1105 of title 31, United 
        States Code) for a fiscal year after fiscal year 2008, 
        regardless of whether the acquisition of the automated 
        information system to be acquired under the program was 
        initiated before, on, or after January 1, 2008.
            (2) Report requirement.--Subsection (b) shall take effect 
        on the date of the enactment of this Act.

SEC. 805. ADJUSTMENT OF ORIGINAL BASELINE ESTIMATE FOR MAJOR DEFENSE 
              ACQUISITION PROGRAMS EXPERIENCING COST GROWTH RESULTING 
              FROM DAMAGE CAUSED BY HURRICANES KATRINA, RITA, AND 
              WILMA.

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

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

    (a) Inspector General Reviews and Determinations.--
            (1) In general.--For each covered non-defense agency, the 
        Inspector General of the Department of Defense and the 
        Inspector General of such non-defense agency shall, not later 
        than March 15, 2007, jointly--
                    (A) review--
                            (i) the procurement policies, procedures, 
                        and internal controls of such non-defense 
                        agency that are applicable to the procurement 
                        of property and services on behalf of the 
                        Department by such non-defense agency; and
                            (ii) the administration of those policies, 
                        procedures, and internal controls; and
                    (B) determine in writing whether--
                            (i) such non-defense agency is compliant 
                        with defense procurement requirements;
                            (ii) such non-defense agency is not 
                        compliant with defense procurement 
                        requirements, but has a program or initiative 
                        to significantly improve compliance with 
                        defense procurement requirements;
                            (iii) neither of the conclusions stated in 
                        clauses (i) and (ii) is correct in the case of 
                        such non-defense agency; or
                            (iv) such non-defense agency is not 
                        compliant with defense procurement requirements 
                        to such an extent that the interests of the 
                        Department of Defense are at risk in 
                        procurements conducted by such non-defense 
                        agency.
            (2) Actions following certain determinations.--If the 
        Inspectors General determine under paragraph (1) that the 
        conclusion stated in clause (ii), (iii), or (iv) of 
        subparagraph (B) of that paragraph is correct in the case of a 
        covered non-defense agency, such Inspectors General shall, not 
        later than June 15, 2008, jointly--
                    (A) conduct a second review, as described in 
                subparagraph (A) of that paragraph, regarding such non-
                defense agency's procurement of property or services on 
                behalf of the Department of Defense in fiscal year 
                2007; and
                    (B) determine in writing whether such non-defense 
                agency is or is not compliant with defense procurement 
                requirements.
    (b) Compliance With Defense Procurement Requirements.--For the 
purposes of this section, a covered non-defense agency is compliant 
with defense procurement requirements if such non-defense agency's 
procurement policies, procedures, and internal controls applicable to 
the procurement of products and services on behalf of the Department of 
Defense, and the manner in which they are administered, are adequate to 
ensure such non-defense agency's compliance with the requirements of 
laws and regulations that apply to procurements of property and 
services made directly by the Department of Defense.
    (c) Memoranda of Understanding Between Inspectors General.--
            (1) In general.--Not later than 60 days after the date of 
        the enactment of this Act, the Inspector General of the 
        Department of Defense and the Inspector General of each covered 
        non-defense agency shall enter into a memorandum of 
        understanding with each other to carry out the reviews and make 
        the determinations required by this section.
            (2) Scope of memoranda.--The Inspector General of the 
        Department of Defense and the Inspector General of a covered 
        non-defense agency may by mutual agreement conduct separate 
        reviews of the procurement of property and services on behalf 
        of the Department of Defense that are conducted by separate 
        business units, or under separate governmentwide acquisition 
        contracts, of such non-defense agency. In any case where such 
        separate reviews are conducted, the Inspectors General shall 
        make separate determinations under paragraph (1) or (2) of 
        subsection (a), as applicable, with respect to each such 
        separate review.
    (d) Limitations on Procurements on Behalf of Department of 
Defense.--
            (1) Limitation during review period.--After March 15, 2007, 
        and before June 16, 2008, no official of the Department of 
        Defense may, except as provided in subsection (e) or (f), 
        order, purchase, or otherwise procure property or services in 
        an amount in excess of $100,000 through a covered non-defense 
        agency for which a determination described in clause (iii) or 
        (iv) of paragraph (1)(B) of subsection (a) has been made under 
        subsection (a).
            (2) Limitation after review period.--After June 15, 2008, 
        no official of the Department of Defense may, except as 
        provided in subsection (e) or (f), order, purchase, or 
        otherwise procure property or services in an amount in excess 
        of $100,000 through a covered non-defense agency that, having 
        been subject to review under this section, has not been 
        determined under this section as being compliant with defense 
        procurement requirements.
            (3) Limitation following failure to reach mou.--Commencing 
        on the date that is 60 days after the date of the enactment of 
        this Act, if a memorandum of understanding between the 
        Inspector General of the Department of Defense and the 
        Inspector General of a covered non-defense agency cannot be 
        attained causing the review required by this section to not be 
        performed, no official of the Department of Defense, except as 
        provided in subsection (e) or (f), may order, purchase or 
        otherwise procure property or services in an amount in excess 
        of $100,000 through such non-defense agency.
    (e) Exception From Applicability of Limitations.--
            (1) Exception.--No limitation applies under subsection (d) 
        with respect to the procurement of property and services on 
        behalf of the Department of Defense by a covered non-defense 
        agency during any period that there is in effect a 
        determination of the Under Secretary of Defense for 
        Acquisition, Technology, and Logistics, made in writing, that 
        it is necessary in the interest of the Department of Defense to 
        continue to procure property and services through such non-
        defense agency.
            (2) Applicability of determination.--A written 
        determination with respect to a covered non-defense agency 
        under paragraph (1) is in effect for the period, not in excess 
        of one year, that the Under Secretary shall specify in the 
        written determination. The Under Secretary may extend from time 
        to time, for up to one year at a time, the period for which the 
        written determination remains in effect.
    (f) Termination of Applicability of Limitations.--Subsection (d) 
shall cease to apply to a covered non-defense agency on the date on 
which the Inspector General of the Department of Defense and the 
Inspector General of such non-defense agency jointly--
            (1) determine that such non-defense agency is compliant 
        with defense procurement requirements; and
            (2) notify the Secretary of Defense of that determination.
    (g) Identification of Procurements Made During a Particular Fiscal 
Year.--For the purposes of subsection (a), a procurement shall be 
treated as being made during a particular fiscal year to the extent 
that funds are obligated by the Department of Defense for that 
procurement in that fiscal year.
    (h) Resolution of Disagreements.--If the Inspector General of the 
Department of Defense and the Inspector General of a covered non-
defense agency are unable to agree on a joint determination under 
subsection (a) or subsection (f), a determination by the Inspector 
General of the Department of Defense under such subsection shall be 
conclusive for the purposes of this section.
    (i) Definitions.--In this section:
            (1) The term ``covered non-defense agency'' means each of 
        the following:
                    (A) The Department of Veterans Affairs.
                    (B) The National Institutes of Health.
            (2) The term ``governmentwide acquisition contract'', with 
        respect to a covered non-defense agency, means a task or 
        delivery order contract that--
                    (A) is entered into by the non-defense agency; and
                    (B) may be used as the contract under which 
                property or services are procured for one or more other 
                departments or agencies of the Federal Government.

SEC. 807. REGULATIONS ON USE OF FIXED PRICE CONTRACTS IN DEVELOPMENT 
              PROGRAMS.

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

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

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

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

    (a) Quality Control Policy.--The Secretary of Defense shall 
prescribe in regulations a quality control policy for the procurement 
of the following:
            (1) Ship critical safety items.
            (2) Modifications, repair, and overhaul of ship critical 
        safety items.
    (b) Elements.--The policy required under subsection (a) shall 
include requirements as follows:
            (1) That the head of the design control activity for ship 
        critical safety items establish processes to identify and 
        manage the procurement, modification, repair, and overhaul of 
        such items.
            (2) That the head of the contracting activity for a ship 
        critical safety item enter into a contract for the procurement, 
        modification, repair, or overhaul of such item only with a 
        source on a qualified manufacturers list or a source approved 
        by the design control activity in accordance with section 2319 
        of title 10, United States Code (as amended by subsection (d)).
            (3) That the ship critical safety items delivered, and the 
        services performed with respect to such items, meet all 
        technical and quality requirements specified by the design 
        control activity.
    (c) Definitions.--In this section, the terms ``ship critical safety 
item'' and ``design control activity'' have the meanings given such 
terms in subsection (g) of 2319 of title 10, United States Code (as so 
amended).
    (d) Conforming Amendments.--Section 2319 of title 10, United States 
Code, is amended--
            (1) in subsection (c)(3), by inserting ``or ship critical 
        safety item'' after ``aviation critical safety item''; and
            (2) in subsection (g)--
                    (A) by redesignating paragraph (2) as paragraph 
                (3);
                    (B) by inserting after paragraph (1) the following 
                new paragraph (2):
            ``(2) The term `ship critical safety item' means any ship 
        part, assembly, or support equipment containing a 
        characteristic the failure, malfunction, or absence of which 
        could cause a catastrophic or critical failure resulting in 
        loss of or serious damage to the ship or unacceptable risk of 
        personal injury or loss of life.''; and
                    (C) in paragraph (3), as so redesignated--
                            (i) by inserting ``or ship critical safety 
                        item'' after ``aviation critical safety item'';
                            (ii) by inserting ``, or the seaworthiness 
                        of a ship or ship equipment,'' after 
                        ``equipment''; and
                            (iii) by striking ``the item'' and 
                        inserting ``such item''.

SEC. 810. THREE-YEAR EXTENSION OF REQUIREMENT FOR REPORTS ON COMMERCIAL 
              PRICE TREND ANALYSES OF THE DEPARTMENT OF DEFENSE.

    Section 803(c)(4) of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (10 U.S.C. 2306a note) is 
amended by striking ``2006'' and inserting ``2009''.

SEC. 811. PILOT PROGRAM ON TIME-CERTAIN DEVELOPMENT IN ACQUISITION OF 
              MAJOR WEAPON SYSTEMS.

    (a) Pilot Program Authorized.--The Secretary of Defense may carry 
out a pilot program on the use of time-certain development in the 
acquisition of major weapon systems.
    (b) Purpose of Pilot Program.--The purpose of the pilot program 
authorized by subsection (a) is to assess the feasibility and 
advisability of utilizing time-certain development in the acquisition 
of major weapon systems in order to deliver new capabilities to the 
warfighter more rapidly through disciplined decision-making, emphasis 
on technological maturity, and appropriate trade-offs between system 
performance and schedule.
    (c) Inclusion of Systems in Pilot Program.--
            (1) In general.--The decision whether to include a major 
        weapon system in the pilot program shall be made by the 
        Milestone Decision Authority for the acquisition program for 
        the system.
            (2) Criteria.--A major weapon system may be included in the 
        pilot program only if the Milestone Decision Authority 
        determines, in consultation with the service acquisition 
        executive for the military department carrying out the 
        acquisition program for the system and one or more combatant 
        commanders responsible for fielding the system, that--
                    (A) the certification requirements of section 2366a 
                of title 10, United States Code, have been met, and no 
                waivers have been granted from such requirements;
                    (B) a preliminary design has been completed after 
                appropriate requirements analysis using systems 
                engineering, and the system, as so designed, will meet 
                battlefield needs identified by the relevant combatant 
                commanders;
                    (C) all critical technologies needed to meet system 
                requirements have been demonstrated in an operational 
                environment;
                    (D) an independent cost estimate has been conducted 
                and used as the basis for funding requirements for the 
                acquisition program for the system;
                    (E) the budget of the military department 
                responsible for carrying out the acquisition program 
                for the system provides the funding necessary to 
                execute the product development and production plan 
                consistent with the requirements identified pursuant to 
                subparagraph (D);
                    (F) an appropriately-qualified program manager has 
                entered into a performance agreement with the Milestone 
                Decision Authority that establishes expected parameters 
                for the cost, schedule, and performance of the 
                acquisition program for the system, consistent with a 
                business case for such acquisition program;
                    (G) the service acquisition executive and the 
                program manager have agreed that the program manager 
                will continue in such position until the delivery of 
                the initial operational capability under the 
                acquisition program for the system;
                    (H) the service acquisition executive, the relevant 
                combatant commanders, and the program manager have 
                agreed that no additional requirements will be added 
                during the development phase of the acquisition program 
                for the system; and
                    (I) a planned initial operational capability will 
                be delivered to the relevant combatant commanders no 
                more than 6 years after the date of the milestone B 
                approval for the system.
            (3) Timing of decision.--The decision whether to include a 
        major weapon system in the pilot program shall be made at the 
        time of milestone approval for the acquisition program for the 
        system.
    (d) Limitation on Number of System in Pilot Program.--The number of 
major weapon systems included in the pilot program at any time may not 
exceed 12 major weapon systems.
    (e) Special Funding Authority.--
            (1) Authority for reserve account.--Notwithstanding any 
        other provision of law, the Secretary of Defense may establish 
        a special reserve account utilizing funds made available for 
        the major weapon systems included in the pilot program.
            (2) Elements.--The special reserve account may include--
                    (A) funds made available for any major weapon 
                system included in the pilot program to cover 
                termination liability;
                    (B) funds made available for any major weapon 
                system included in the pilot program for award fees 
                that may be earned by contractors; and
                    (C) funds appropriated to the special reserve 
                account.
            (3) Availability of funds.--Funds in the special reserve 
        account may be used, in accordance with guidance issued by the 
        Secretary for purposes of this section, for the following 
        purposes:
                    (A) To cover termination liability for any major 
                weapon system included in the pilot program.
                    (B) To pay award fees that are earned by any 
                contractor for a major weapon system included in the 
                pilot program.
                    (C) To address unforseen contingencies that could 
                prevent a major weapon system included in the pilot 
                program from meeting critical schedule or performance 
                requirements.
            (4) Reports on use of funds.--Not later than 30 days after 
        the use of funds in the special reserve account for the purpose 
        specified in paragraph (3)(C), the Secretary shall submit to 
        the congressional defense committees a report on report the use 
        of funds in the account for such purpose. The report shall set 
        forth the purposes for which the funds were used and the 
        reasons for the use of the funds for such purposes.
    (f) Administration of Pilot Program.--The Secretary of Defense 
shall prescribe policies and procedures on the administration of the 
pilot program. Such policies and procedures shall--
            (1) provide for the use of program status reports based on 
        earned value data to track progress on a major weapon system 
        under the pilot program against baseline estimates applicable 
        to such system at each systems engineering technical review 
        point; and
            (2) grant authority to the program manager for the 
        acquisition program for a major weapon system to make key 
        program decisions and trade-offs, subject to management reviews 
        only if cost or schedule deviations exceed 10 percent baselines 
        for such acquisition program.
    (g) Expiration of Authority To Include Additional Systems in Pilot 
Program.--
            (1) Expiration.--A major weapon system may not be included 
        in the pilot program after September 30, 2012.
            (2) Retention of systems.--A major weapon system included 
        in the pilot program before the date specified in paragraph (1) 
        in accordance with the requirements of this section may remain 
        in the pilot program after that date.
    (h) Annual Report.--
            (1) In general.--Not later than one year after including 
        the first major weapon system in the pilot program, and 
        annually thereafter, the Secretary shall submit to the 
        congressional defense committees a report on the pilot program, 
        and the major weapon systems included in the pilot program, 
        during the one-year period ending on the date of such report.
            (2) Elements.--Each report under this subsection shall 
        include--
                    (A) a description of progress under the pilot 
                program, and on each major weapon system included in 
                the pilot program, during the period covered by such 
                report; and
                    (B) such other matters as the Secretary considers 
                appropriate.
    (i) Major Weapon System Defined.--In this section, the term ``major 
weapon system'' means a weapon system that is treatable as a major 
system under section 2302(5) of title 10, United States Code.

              Subtitle B--Defense Industrial Base Matters

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

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

SEC. 822. SUBSTITUTION OF SPECIALTY METALS WITH TITANIUM AND NICKEL 
              UNDER CERTAIN REQUIREMENTS.

    (a) In General.--Subsection (b) of section 2533a of title 10, 
United States Code, as amended by section 821(a) of this Act, is 
further amended by striking paragraph (2) and inserting the following 
new paragraphs:
            ``(2) Titanium.
            ``(3) Nickel.''.
    (b) Conforming Amendments.--Such section 2533a is further amended--
            (1) in subsection (c), by striking ``or specialty metals 
        (including stainless steel flatware)'' and inserting ``, 
        titanium, or nickel''; and
            (2) in subsection (e)--
                    (A) in the subsection caption, by striking 
                ``Specialty Metals'' and inserting ``Titanium, 
                Nickel,''; and
                    (B) in the matter preceding paragraph (1), by 
                striking ``specialty metals'' and inserting ``titanium, 
                nickel,''.

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

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

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

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

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

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

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

                 Subtitle C--Defense Contractor Matters

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

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

``2410p. Defense contractors: requirements concerning former Department 
                            of Defense officials.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of this Act, and shall apply 
with respect to contracts entered into on or after that date.

SEC. 842. LEAD SYSTEMS INTEGRATORS.

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

``2410q. Contracts: limitations on lead systems integrators.''.
            (3) Effective date.--The amendments made by subsection (a) 
        shall take effect on the date of the enactment of this Act, and 
        shall apply with respect to contracts entered into on or after 
        that date.
    (b) Update of Regulations on Lead Systems Integrators.--Not later 
than December 31, 2006, the Secretary of Defense shall update the 
acquisition regulations of the Department of Defense in order to 
specify fully in such regulations the matters with respect to lead 
systems integrators set forth in section 805(b) of the National Defense 
Authorization for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 
3372).
    (c) Definition of Lead Systems Integrator.--
            (1) Definition required.--The Secretary of Defense shall 
        include in the report required by section 805 of the National 
        Defense Authorization for Fiscal Year 2006 a precise and 
        comprehensive definition of the term ``lead systems 
        integrator'', as that term is utilized in such section.
            (2) Matters to be addressed.--In defining the term ``lead 
        systems integrator'' under paragraph (1), the Secretary shall 
        take into account the following:
                    (A) The importance of lead systems integrators in 
                the production, fielding, and sustainment of complex 
                systems, including their role in addressing increases 
                in cost, the evolution of interoperability 
                requirements, and the maintenance and sustainment of 
                critical capabilities.
                    (B) The unique engineering and integration skills 
                of lead systems integrators.
                    (C) The management and organizational skills and 
                capabilities of lead systems integrators, including the 
                capacity of lead systems integrators to facilitate the 
                participation of small and disadvantaged businesses in 
                the production, fielding, and sustainment of complex 
                systems.
    (d) Contract Types and Fee Structures.--The Secretary of Defense 
shall include in the report required by section 805 of the National 
Defense Authorization for Fiscal Year 2006 a specification of various 
types of contracts and fee structures, including award and incentive 
fees, that are appropriate for use by lead systems integrators in the 
production, fielding, and sustainment of complex systems.

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

    (a) Guidance on Linking of Award and Incentive Fees to Acquisition 
Outcomes.--Not later than 180 days after the date of the enactment of 
this Act, the Secretary of Defense shall issue guidance, with detailed 
implementation instructions (including definitions), for the Department 
of Defense on the appropriate use of award and incentive fees in 
Department of Defense acquisition programs.
    (b) Elements.--The guidance under subsection (a) shall--
            (1) ensure that all new contracts using award fees link 
        such fees to acquisition outcomes (which shall be defined in 
        terms of program cost, schedule, and performance);
            (2) provide guidance on the circumstances in which 
        contractor performance may be judged to be ``excellent'' or 
        ``superior'' and the percentage of the available award fee 
        which contractors should be paid for such performance;
            (3) establish standards for determining the percentage of 
        the available award fee, if any, which contractors should be 
        paid for performance that is judged to be ``acceptable'', 
        ``average'', ``expected'', ``good'', or ``satisfactory'';
            (4) ensure that no award fee may be paid for contractor 
        performance that is judged to be poor;
            (5) provide specific direction on the circumstances, if 
        any, in which it may be appropriate to roll over award fees 
        that are not earned in one award fee period to a subsequent 
        award fee period or periods;
            (6) ensure that the Department of Defense--
                    (A) collects relevant data on award and incentive 
                fees paid to contractors; and
                    (B) has mechanisms in place to evaluate such data 
                on a regular basis;
            (7) include performance measures to evaluate the 
        effectiveness of award and incentive fees as a tool for 
        improving contractor performance and achieving desired program 
        outcomes; and
            (8) provide mechanisms for sharing proven incentive 
        strategies for the acquisition of different types of products 
        and services among contracting and program management 
        officials.
    (c) Assessment of Independent Evaluation Mechanisms.--
            (1) In general.--The Secretary of Defense shall select a 
        federally-funded research and development center to assess 
        various mechanisms that could be used to ensure an independent 
        evaluation of contractor performance for the purpose of making 
        determinations applicable to the judging and payment of award 
        fees.
            (2) Considerations.--The assessment conducted pursuant to 
        paragraph (1) shall include consideration of the advantages and 
        disadvantages of a system in which award fees are--
                    (A) held in a separate fund or funds of the 
                Department of Defense; and
                    (B) allocated to a specific program only upon a 
                determination by an independent board, charged with 
                comparing contractor performance across programs, that 
                such fees have been earned by the contractor for such 
                program.
            (3) Report.--The Secretary shall submit to the 
        congressional defense committees a report on the assessment 
        conducted pursuant to paragraph (1) not later than one year 
        after the date of the enactment of this Act.

SEC. 844. PROHIBITION ON EXCESSIVE PASS-THROUGH CHARGES.

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

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

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

                  Subtitle D--Program Manager Matters

SEC. 861. PROGRAM MANAGER EMPOWERMENT AND ACCOUNTABILITY.

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

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

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

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

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

SEC. 864. INTERAGENCY PLAN FOR CONTINGENCY PROGRAM MANAGEMENT.

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

SEC. 865. COMPTROLLER GENERAL REPORT.

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

                       Subtitle E--Other Matters

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

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

SEC. 872. ONE-YEAR EXTENSION OF SPECIAL TEMPORARY CONTRACT CLOSEOUT 
              AUTHORITY.

    Section 804(d) of the National Defense Authorization Act for Fiscal 
Year 2004 (Public Law 108-136; 117 Stat. 1542) is amended by striking 
``September 30, 2006'' and inserting ``September 30, 2007''.

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

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

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

SEC. 901. UNITED STATES MILITARY CANCER INSTITUTE.

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

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

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

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

                      Subtitle B--Space Activities

SEC. 911. ESTABLISHMENT OF OPERATIONALLY RESPONSIVE SPACE CAPABILITIES.

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

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

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

                       Subtitle C--Other Matters

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

    (a) Policy Required.--The Secretary of Defense shall, in 
consultation with the Chairman of the Joint Chiefs of Staff, develop a 
policy applicable throughout the Department of Defense on research, 
development, test, and evaluation, procurement, and operation of 
unmanned systems.
    (b) Elements.--The policy required by subsection (a) shall include 
the following:
            (1) Mission requirements (including mission requirements 
        for the military departments and joint mission requirements) 
        for unmanned systems to replace manned systems in the 
        performance of routine or dangerous missions.
            (2) A strategy and schedules for the replacement of manned 
        systems with unmanned systems in the performance of such 
        missions.
            (3) Preference for joint unmanned systems in acquisition 
        programs for new systems, including a requirement under any 
        such program for the development of a manned system for a 
        certification that an unmanned system is incapable of meeting 
        program requirements.
            (4) Joint development and procurement of unmanned systems 
        and components.
            (5) A strategy for the divestment of the military 
        department unmanned systems unique to a particular department 
        with a preference for joint unmanned systems.
            (6) Programs to address technical, operational, and 
        production challenges, and gaps in capabilities, with respect 
        to unmanned systems.
            (7) An organizational structure for effective management, 
        coordination, and budgeting for the development and procurement 
        of unmanned systems, including an assessment of the feasibility 
        and advisability of designating a single department or other 
        element of the Department of Defense to act as executive agent 
        for the Department on unmanned systems.
            (8) Requirements for the integration of unmanned and manned 
        missions.
            (9) Requirements in order to satisfy the goals for unmanned 
        air and ground systems established in section 220 of the Floyd 
        D. Spence National Defense Authorization Act for Fiscal Year 
        2001 (as enacted into law by Public Law 106-398; 114 Stat. 
        1654A-38).
    (c) Report.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary shall submit to the congressional 
defense committees a report setting forth the policy required by 
subsection (a).

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

    (a) Executive Schedule Level IV.--Section 5315 of title 5, United 
States Code, is amended by inserting after the item relating to the 
Deputy Under Secretary of Defense for Personnel and Readiness the 
following new item:
            ``Deputy Under Secretary of Defense for Logistics and 
        Materiel Readiness.''.
    (b) Conforming Amendment.--Section 5314 of title 5, United States 
Code, is amended by striking the item relating to the Deputy Under 
Secretary of Defense for Logistics and Materiel Readiness.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act, and shall apply with 
respect to individuals appointed as Deputy Under Secretary of Defense 
for Logistics and Materiel Readiness on or after that date.

SEC. 923. THREE-YEAR EXTENSION OF JOINT INCENTIVES PROGRAM ON SHARING 
              OF HEALTH CARE RESOURCES BY THE DEPARTMENT OF DEFENSE AND 
              DEPARTMENT OF VETERANS AFFAIRS.

    Section 8111(d)(4) of title 38, United States Code, is amended by 
striking ``September 30, 2007'' and inserting ``September 30, 2010''.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

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

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

    Amounts authorized to be appropriated to the Department of Defense 
and the Department of Energy 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 an Act appropriating emergency supplemental appropriations for 
fiscal year 2006.

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

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

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

    Section 1001(a)(2) of the National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3418) is amended by 
striking ``$3,500,000,000'' and inserting ``$3,750,000,000''.

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

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

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

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

SEC. 1007. PROHIBITION ON PARKING OF FUNDS.

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

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

                       Subtitle B--Naval Vessels

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

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

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

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

                    Subtitle C--Counterdrug Matters

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

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

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

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

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

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

          Subtitle D--Defense Intelligence and Related Matters

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

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

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

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

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

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

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

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

   Subtitle E--Defense Against Terrorism and Related Security Matters

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 1051. ACCEPTANCE AND RETENTION OF REIMBURSEMENT FROM NON-FEDERAL 
              SOURCES TO DEFRAY DEPARTMENT OF DEFENSE COSTS OF 
              CONFERENCES.

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

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

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

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

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

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

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

                       Subtitle G--Report Matters

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

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

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

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

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

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

SEC. 1064. REPORT ON LOCAL BOARDS OF TRUSTEES OF THE ARMED FORCES 
              RETIREMENT HOME.

    Not later than 30 days after the date of the enactment of this Act, 
the Secretary of Defense shall submit to the congressional defense 
committees a report setting forth the following:
            (1) The current composition and activities of the Local 
        Board of Trustees of the Armed Forces Retirement Home--
        Washington under section 1516 of the Armed Forces Retirement 
        Home Act of 1991 (24 U.S.C. 416).
            (2) The current composition and activities of the Local 
        Board of Trustees of the Armed Forces Retirement Home--Gulfport 
        under section 1516 of such Act.

SEC. 1065. REPEAL OF CERTAIN REPORT REQUIREMENTS.

    (a) Annual Report on Aviation Career Incentive Pay.--Section 301a 
of title 37, United States Code, is amended by striking subsection (f).
    (b) Annual Report on Effects of Certain Initiatives on Recruitment 
and Retention.--
            (1) Repeal.--Section 1015 of title 37, United States Code, 
        is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 19 of such title is amended by striking 
        the item relating to section 1015.
    (c) Secretary of Defense Recommendation on Need for Defense Impact 
Review Process.--Section 1041 of the National Defense Authorization Act 
for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1217) is repealed.
    (d) Report on Pilot Program to Enhance Military Recruiting by 
Improving Military Awareness of School Counselors and Educators.--
Section 564 of the Floyd D. Spence National Defense Authorization Act 
for Fiscal Year 2001 (as enacted into law by Public Law 106-398 (114 
Stat. 1654A-134); 10 U.S.C. 503 note) is amended by striking subsection 
(c).
    (e) Annual Report on Medical Informatics.--Section 723(d) of the 
National Defense Authorization Act for Fiscal Year 2000 (10 U.S.C. 1071 
note) is amended--
            (1) by striking paragraph (5); and
            (2) by redesignating paragraphs (6) and (7) as paragraphs 
        (5) and (6), respectively.
    (f) Report on Imposition of Additional Charges or Fees for 
Attendance at Certain Academies.--Section 553(b) of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 
Stat. 2772; 10 U.S.C. 4331 note) is amended by striking the second 
sentence.

            Subtitle H--Technical and Conforming Amendments

SEC. 1071. UNIFORM DEFINITION OF NATIONAL SECURITY SYSTEM FOR CERTAIN 
              DEPARTMENT OF DEFENSE PURPOSES.

    (a) Defense Business Systems.--Section 2222(j)(6) of title 10, 
United States Code, is amended by striking ``section 2315 of this 
title'' and inserting ``section 3542(b)(2) of title 44''.
    (b) Information Technology.--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 the purposes of subtitle III of title 40, the term `national 
security system' has the meaning given that term in section 3542(b)(2) 
of title 44.''.

SEC. 1072. CONFORMING AMENDMENT RELATING TO REDESIGNATION OF DEFENSE 
              COMMUNICATIONS AGENCY AS 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.''.

SEC. 1073. TECHNICAL AMENDMENT.

    Effective as of the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163) and as if 
included in the enactment thereof, section 341(e) of such Act (119 
Stat. 3199) is amended by striking ``(a)(1)(E)'' and inserting 
``(a)(1)(F)''.

                       Subtitle I--Other Matters

SEC. 1081. NATIONAL FOREIGN LANGUAGE COORDINATION COUNCIL.

    (a) Establishment.--
            (1) In general.--Effective on October 1, 2006, there is 
        established the National Foreign Language Coordination Council 
        (in this section referred to as the ``Council'').
            (2) Independent establishment.--The National Foreign 
        Language Coordination Council shall be an independent 
        establishment as defined under section 104 of title 5, United 
        States Code.
    (b) Membership.--The Council shall consist of the following members 
or their designees:
            (1) The National Language Director, who shall serve as the 
        chairperson of the Council.
            (2) The Secretary of Education.
            (3) The Secretary of Defense.
            (4) The Secretary of State.
            (5) The Secretary of Homeland Security.
            (6) The Attorney General.
            (7) The Director of National Intelligence.
            (8) The Secretary of Labor.
            (9) The Director of the Office of Personnel Management.
            (10) The Director of the Office of Management and Budget.
            (11) The Secretary of Commerce.
            (12) The Secretary of Health and Human Services.
            (13) The Secretary of the Treasury.
            (14) The Secretary of Housing and Urban Development.
            (15) The Secretary of Agriculture.
            (16) The Chairman and President of the Export-Import Bank 
        of the United States.
            (17) The heads of such other Federal agencies as the 
        Council considers appropriate.
    (c) Responsibilities.--
            (1) In general.--The Council shall be charged with--
                    (A) developing a national foreign language 
                strategy, within 18 months of the date of the enactment 
                of this Act, in consultation with--
                            (i) State and local government agencies;
                            (ii) academic sector institutions;
                            (iii) foreign language related interest 
                        groups;
                            (iv) business associations;
                            (v) industry;
                            (vi) heritage associations; and
                            (vii) other relevant stakeholders;
                    (B) conducting a survey of the extent of Federal 
                agency foreign language and area expertise, and of 
                Federal agency needs for such expertise;
                    (C) identifying and evaluating the adequacy of 
                Federal foreign language programs, including any 
                duplicative or overlapping programs that may impede 
                efficiency; and
                    (D) monitoring the implementation of such strategy 
                through--
                            (i) application of current and recently 
                        enacted laws; and
                            (ii) the promulgation and enforcement of 
                        rules and regulations.
            (2) Strategy content.--The strategy developed under 
        paragraph (1) shall include--
                    (A) identification of priorities to expand foreign 
                language skills in the public and private sectors;
                    (B) recommendations for improving coordination of 
                foreign language programs and activities among Federal 
                agencies, enhancing Federal foreign language programs 
                and activities, and allocating resources appropriately 
                in order to maximize the use of resources;
                    (C) needed national policies and corresponding 
                legislative and regulatory actions in support of, and 
                allocation of designated resources to, promising 
                programs and initiatives at all levels (Federal, State, 
                and local), especially in the less commonly taught 
                languages that are seen as critical for national 
                security and global competitiveness during the next 20 
                to 50 years;
                    (D) effective ways to increase public awareness of 
                the need for foreign language skills and career paths 
                in the public and private sectors that can employ those 
                skills, with the objective of increasing support for 
                foreign language study among--
                            (i) Federal, State, and local leaders;
                            (ii) students;
                            (iii) parents;
                            (iv) elementary, secondary, and 
                        postsecondary educational institutions; and
                            (v) employers;
                    (E) recommendations for incentives for developing 
                related educational programs, including foreign 
                language teacher training;
                    (F) coordination of public and private sector 
                efforts to provide foreign language instruction and 
                acquire foreign language and area expertise;
                    (G) coordination of public and private sector 
                initiatives to develop a strategic posture for language 
                research;
                    (H) recommendations for--
                            (i) the development of foreign language 
                        achievement standards; and
                            (ii) corresponding assessments of foreign 
                        language achievement standards for the 
                        elementary, secondary, and postsecondary 
                        education levels, including the National 
                        Assessment of Educational Progress in foreign 
                        languages;
                    (I) recommendations for development of--
                            (i) language skill-level certification 
                        standards;
                            (ii) frameworks for pre-service and 
                        professional development study for those who 
                        teach foreign language;
                            (iii) suggested graduation criteria for 
                        foreign language studies in non-language areas, 
                        such as--
                                    (I) international business;
                                    (II) national security;
                                    (III) public administration;
                                    (IV) health care;
                                    (V) engineering;
                                    (VI) law;
                                    (VII) journalism; and
                                    (VIII) sciences;
                    (J) identification of and means for replicating 
                best practices for teaching foreign languages in the 
                public and private sectors, including best practices 
                from the international community; and
                    (K) recommendations for overcoming barriers in 
                foreign language proficiency.
    (d) Submission of Strategy to President and Congress.--Not later 
than 18 months after the date of the enactment of this Act, the Council 
shall prepare and transmit to the President and the relevant committees 
of Congress the national foreign language strategy required under 
subsection (c).
    (e) Meetings.--The Council may hold such meetings, and sit and act 
at such times and places, as the Council considers appropriate, but 
shall meet in formal session at least 2 times a year. State and local 
government agencies and other organizations (such as academic sector 
institutions, foreign language-related interest groups, business 
associations, industry, and heritage community organizations) shall be 
invited, as appropriate, to public meetings of the Council at least 
once a year.
    (f) Staff.--
            (1) In general.--The Director may--
                    (A) appoint, without regard to the provisions of 
                title 5, United States Code, governing the competitive 
                service, such personnel as the Director considers 
                necessary; and
                    (B) compensate such personnel without regard to the 
                provisions of chapter 51 and subchapter III of chapter 
                53 of that title.
            (2) Detail of government employees.--Upon request of the 
        Council, any Federal Government employee may be detailed to the 
        Council without reimbursement, and such detail shall be without 
        interruption or loss of civil service status or privilege
            (3) Experts and consultants.--With the approval of the 
        Council, the Director may procure temporary and intermittent 
        services under section 3109(b) of title 5, United States Code.
            (4) Travel expenses.--Council members and staff shall be 
        allowed travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for employees of agencies 
        under subchapter I of chapter 57 of title 5, United States 
        Code, while away from their homes or regular places of business 
        in the performance of services for the Council.
            (5) Security clearance.--
                    (A) In general.--Subject to subparagraph (B), the 
                appropriate Federal agencies or departments shall 
                cooperate with the Council in expeditiously providing 
                to the Council members and staff appropriate security 
                clearances to the extent possible pursuant to existing 
                procedures and requirements.
                    (B) Exception.--No person shall be provided with 
                access to classified information under this section 
                without the appropriate required security clearance 
                access.
            (6) Compensation.--The rate of pay for any employee of the 
        Council (including the Director) may not exceed the rate 
        payable for level V of the Executive Schedule under section 
        5316 of title 5, United States Code.
    (g) Powers.--
            (1) Delegation.--Any member or employee of the Council may, 
        if authorized by the Council, take any action that the Council 
        is authorized to take in this section.
            (2) Information.--
                    (A) Council authority to secure.--The Council may 
                secure directly from any Federal agency such 
                information, consistent with Federal privacy laws, 
                including the Family Educational Rights and Privacy Act 
                (20 U.S.C. 1232g) and the Department of Education's 
                General Education Provisions Act (20 U.S.C. 1232(h)), 
                the Council considers necessary to carry out its 
                responsibilities.
                    (B) Requirement to furnish requested information.--
                Upon request of the Director, the head of such agency 
                shall furnish such information to the Council.
            (3) Donations.--The Council may accept, use, and dispose of 
        gifts or donations of services or property.
            (4) Mail.--The Council may use the United States mail in 
        the same manner and under the same conditions as other Federal 
        agencies.
    (h) Conferences, Newsletter, and Website.--In carrying out this 
section, the Council--
            (1) may arrange Federal, regional, State, and local 
        conferences for the purpose of developing and coordinating 
        effective programs and activities to improve foreign language 
        education;
            (2) may publish a newsletter concerning Federal, State, and 
        local programs that are effectively meeting the foreign 
        language needs of the nation; and
            (3) shall create and maintain a website containing 
        information on the Council and its activities, best practices 
        on language education, and other relevant information.
    (i) Reports.--Not later than April 1, 2007, and annually 
thereafter, the Council shall prepare and transmit to the President and 
the relevant committees of Congress a report that describes--
            (1) the activities of the Council to develop the national 
        foreign language strategy required under subsection (c);
            (2) the findings of the Council as of the date of such 
        report;
            (3) the efforts of the Council to improve foreign language 
        education and training; and
            (4) impediments identified by the Council to the 
        implementation of a comprehensive national foreign language 
        strategy, including any statutory and regulatory restrictions.
    (j) Establishment of National Language Director.--
            (1) In general.--There is established a National Language 
        Director who shall be appointed by the President. The National 
        Language Director shall be a nationally recognized individual 
        with credentials and abilities in the public and private 
        sectors to be involved with creating and implementing long-term 
        solutions to achieving national foreign language and cultural 
        competency.
            (2) Responsibilities.--The National Language Director 
        shall--
                    (A) develop and monitor the implementation of a 
                national foreign language strategy across the public 
                and private sectors;
                    (B) establish formal relationships among the major 
                stakeholders in meeting the needs of the Nation for 
                improved capabilities in foreign languages and cultural 
                understanding, including Federal, State, and local 
                government agencies, academia, industry, labor, and 
                heritage communities; and
                    (C) coordinate and lead a public information 
                campaign that raises awareness of public and private 
                sector careers requiring foreign language skills and 
                cultural understanding, with the objective of 
                increasing interest in and support for the study of 
                foreign languages among national leaders, the business 
                community, local officials, parents, and individuals.
    (k) Encouragement of State Involvement.--
            (1) State contact persons.--The Council shall consult with 
        each State to provide for the designation by each State of an 
        individual to serve as a State contact person for the purpose 
        of receiving and disseminating information and communications 
        received from the Council.
            (2) State interagency councils and lead agencies.--Each 
        State is encouraged to establish a State interagency council on 
        foreign language coordination or designate a lead agency for 
        the State for the purpose of assuming primary responsibility 
        for coordinating and interacting with the Council and State and 
        local government agencies as necessary.
    (l) Sunset.--This section shall cease to have effect on September 
30, 2015.
    (m) Authorization of Appropriations.--There is authorized to be 
appropriated for fiscal year 2007, $1,500,000 to carry out this 
section.

SEC. 1082. SUPPORT OF SUCCESSOR ORGANIZATIONS OF THE DISESTABLISHED 
              INTERAGENCY GLOBAL POSITIONING SYSTEM EXECUTIVE BOARD.

    Section 8 of the Commercial Space Transportation Competitiveness 
Act of 2000 (Public Law 106-405; 114 Stat. 1753; 10 U.S.C. 2281 note) 
is amended by striking ``the Interagency Global Positioning System 
Executive Board, including an Executive Secretariat to be housed at the 
Department of Commerce'' and inserting ``the National Space-Based 
Positioning, Navigation, and Timing Executive Committee, the National 
Space-Based Positioning, Navigation, and Timing Coordination Office, 
and the National Space-Based Positioning, Navigation, and Timing 
Advisory Board, and any successor organization''.

SEC. 1083. SENSE OF CONGRESS ON THE QUADRENNIAL DEFENSE REVIEW.

    (a) Findings.--Congress makes the following findings:
            (1) The Quadrennial Defense Review (QDR) under section 118 
        of title 10, United States Code, is vital in laying out the 
        strategic military planning and threat objectives of the 
        Department of Defense.
            (2) The Quadrennial Defense Review is critical to 
        identifying the correct mix of military planning assumptions, 
        defense capabilities, and strategic focuses for the Armed 
        Forces of the United States.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) 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;
            (2) the Quadrennial Defense Review should include strategic 
        planning guidance and specific capabilities, including the 
        military platforms needed to achieve the strategic and 
        warfighting objectives identified in the Review, and do so in a 
        risk-based framework;
            (3) the development of each Quadrennial Defense Review 
        would benefit from an official assessment, by a so-called ``red 
        team'', of Quadrennial Defense Review assumptions, planning 
        guidelines, capability recommendations, and realism, and from 
        having that team brief Congress on the results of its 
        assessment;
            (4) the recommendations of the Quadrennial Defense Review 
        should not be constrained by budget considerations; and
            (5) the risk assessment prepared by the Chairman of the 
        Joint Chiefs to accompany the Quadrennial Defense Review should 
        be comprehensive and should include a description of the 
        capabilities needed to address the risks identified in that 
        assessment.

       TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

SEC. 1101. ACCRUAL OF ANNUAL LEAVE FOR MEMBERS OF THE UNIFORMED 
              SERVICES ON TERMINAL LEAVE PERFORMING DUAL EMPLOYMENT.

    Section 5534a of title 5, United States Code, is amended by adding 
at the end the following new sentence: ``Such a member is also entitled 
to accrue annual leave with pay in the manner specified in section 
6303(a) of this title for a retired member of the uniformed 
services.''.

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 by 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;
                    (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 development, 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. AUTHORITY TO EQUALIZE ALLOWANCES, BENEFITS, AND GRATUITIES 
              OF PERSONNEL ON OFFICIAL DUTY IN IRAQ AND AFGHANISTAN.

    (a) Findings.--Congress makes the following findings:
            (1) As part of the United States effort to bring democracy 
        and freedom to Iraq and Afghanistan, employees of a broad range 
        of Federal agencies are needed to serve in those countries, 
        furnishing expertise to their counterpart agencies in the 
        Government of Iraq and the Government of Afghanistan.
            (2) While the heads of a number of Federal agencies already 
        possess authority to provide to their personnel on official 
        duty abroad allowances, benefits, and death gratuities 
        comparable to those provided by the Secretary of State to 
        similarly-situated Foreign Service personnel on official duty 
        abroad, other agency heads do not possess such authority.
            (3) In order to assist the United States Government in 
        recruiting personnel to serve in Iraq and Afghanistan, and to 
        avoid inequities in allowances, benefits, and death gratuities 
        among similarly-situated United States Government civilian 
        personnel on official duty in these countries, it is essential 
        that the heads of all agencies that have personnel on official 
        duty in Iraq and Afghanistan have the same basic authority with 
        respect to allowances, benefits, and death gratuities for such 
        personnel.
    (b) In General.--During any fiscal year, the head of an agency may, 
in the agency head's discretion, provide to an individual employed by, 
or assigned or detailed to, such agency allowances, benefits, and 
gratuities comparable to those provided by the Secretary of State to 
members of the Foreign Service under section 413 and chapter 9 of title 
I of the Foreign Service Act of 1980 (22 U.S.C. 3973; 4081 et seq.), if 
such individual is on official duty in Iraq or Afghanistan.
    (c) Construction.--Nothing in this section shall be construed to 
impair or otherwise affect the authority of the head of an agency under 
any other provision of law.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

                      Subtitle A--General Matters

SEC. 1201. EXPANSION OF HUMANITARIAN AND CIVIC ASSISTANCE TO INCLUDE 
              COMMUNICATIONS AND INFORMATION CAPACITY.

    Section 401 of title 10, United States Code, as amended--
            (1) in subsection (c)--
                    (A) by redesignating paragraphs (2), (3), and (4) 
                as paragraphs (3), (4), and (5), respectively;
                    (B) by inserting after paragraph (1) end the 
                following new paragraph (2):
    ``(2) Expenses covered by paragraph (1) include communications or 
information systems equipment or supplies incurred in providing 
assistance described in subsection (e)(4).''; and
                    (C) in paragraph (4), as redesignated by 
                subparagraph (A) of this paragraph, by striking 
                ``paragraph (2)(B)'' and inserting ``paragraph 
                (3)(B)''; and
            (2) in subsection (e)(4), by inserting before the period 
        the following: ``, including information and communications 
        technology facilities''.

SEC. 1202. MODIFICATION OF AUTHORITIES RELATING TO THE REGIONAL DEFENSE 
              COUNTERTERRORISM FELLOWSHIP PROGRAM.

    (a) Redesignation of Program as Regional Defense Combatting 
Terrorism Fellowship Program.--Section 2249c of title 10, United States 
Code, is amended in subsections (a) and (c)(3), by striking 
``Counterterrorism'' and inserting ``Combatting Terrorism''.
    (b) Availability of Funds.--
            (1) In general.--Subsection (a) of such section is further 
        amended by striking ``the attendance'' and all that follows 
        through ``military educational institutions'' and inserting 
        ``the education and training of foreign military officers and 
        other foreign officials at military or civilian educational 
        institutions''.
            (2) Increase in amount available.--Subsection (b) of such 
        section is amended by striking ``$20,000,000'' and inserting 
        ``$25,000,000''.
            (3) Availability of amounts 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.''.
    (c) Conforming and Clerical Amendments.--
            (1) Conforming amendment.--The heading of such section is 
        amended to read as follows:
``Sec. 2249c. Authority to use appropriated funds for education and 
              training of foreign visitors under Regional Defense 
              Combatting Terrorism Fellowship Program''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of subchapter I of chapter 134 of such title is 
        amended by striking the item relating to section 2249c and 
        insert the following new item:

``2249c. Authority to use appropriated funds for education and training 
                            of foreign visitors under Regional Defense 
                            Combatting Terrorism Fellowship Program.''.

SEC. 1203. LOGISTIC SUPPORT OF ALLIED FORCES FOR COMBINED OPERATIONS.

    (a) Authority To Use Funds To Provide Support.--
            (1) In general.--Subchapter I of chapter 134 of title 10, 
        United States Code, is amended by inserting after section 2249c 
        the following new section:
``Sec. 2249d. Authority to use appropriated funds for logistic support 
              of allied forces for combined operations
    ``(a) Authority To Use Funds.--Subject to subsections (b) and (c), 
funds appropriated to the Department of Defense for operation and 
maintenance may be used by the Secretary of Defense, with the 
concurrence of the Secretary of State, to provide logistic support, 
supplies, and services to allied forces participating in combined 
operations with the armed forces of the United States.
    ``(b) Limitation Relating to Combined Operations.--The authority in 
subsection (a) to provide logistic support, supplies, and services may 
be exercised only--
            ``(1) with respect to combined operations during a period 
        of active hostilities, a contingency operation, or a noncombat 
        operation (including an operation in support of the provision 
        of humanitarian or foreign disaster assistance, country 
        stabilization operations, or peacekeeping operations under 
        chapter VI or VII of the Charter of the United Nations); and
            ``(2) in circumstances in which the Secretary of Defense 
        determines that the allied forces to be provided such logistic 
        support, supplies, and services--
                    ``(A) are essential to the success of such combined 
                operations; and
                    ``(B) would not be able to participate in such 
                combined operations but for the provision of such 
                logistic support, supplies, and services.
    ``(c) Limitations Relating to Amount.--(1) Except as provided in 
paragraph (2), the amount of logistic support, supplies, and services 
provided under subsection (a) in any fiscal year may not exceed 
$100,000,000.
    ``(2) In any fiscal year, in addition to any logistic support, 
supplies, and services provided under subsection (a) that are covered 
by paragraph (1), logistic support, supplies, and services in the 
amount of $5,000,000 may be provided under that subsection if such 
support, supplies, and services are solely for purposes of enhancing 
the interoperability of the logistical support systems of allied forces 
with the logistical support systems of the armed forces of the United 
States in order to facilitate combined operations.
    ``(d) Annual Report.--Not later than December 31 each year, the 
Secretary of Defense, in coordination with the Secretary of State, 
shall submit to the appropriate committees of Congress a report on the 
use of the authority in subsection (a) during the preceding fiscal 
year. Each report shall include, for the fiscal year covered by such 
report, the following:
            ``(1) Each nation provided logistic support, supplies, and 
        services.
            ``(2) For each such nation, a description of the type and 
        value of logistic support, supplies, and services so provided.
    ``(e) Definitions.--In this section:
            ``(1) The term `appropriate committees of Congress' means--
                    ``(A) the Committees on Armed Services and Foreign 
                Relations of the Senate; and
                    ``(B) the Committees on Armed Services and 
                International Relations of the House of 
                Representatives.
            ``(2) The term `logistic support, supplies, and services' 
        has the meaning given such term in section 2350(1) of this 
        title and includes sealift.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of subchapter I of such chapter is amended by 
        inserting after the item relating to section 2249c the 
        following new item:

``2249d. Authority to use appropriated funds for logistic support of 
                            allied forces for combined operations.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2006, and shall apply with respect to fiscal years 
beginning on or after that date.

SEC. 1204. EXCLUSION OF PETROLEUM, OIL, AND LUBRICANTS FROM LIMITATIONS 
              ON AMOUNT OF LIABILITIES THE UNITED STATES MAY ACCRUE 
              UNDER ACQUISITION AND CROSS-SERVICING AGREEMENTS.

    (a) Exclusion.--Section 2347 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(d) The limitations in this section on the amount of reimbursable 
liabilities or reimbursable credits that the United States may accrue 
under this subchapter shall not apply with respect to the sale, 
purchase, or exchange of petroleum, oils, or lubricants.''.
    (b) Conforming Amendments.--Paragraphs (1) and (2) of subsection 
(a) of such section are each amended by striking ``(other than 
petroleum, oils, and lubricants)''.

SEC. 1205. TEMPORARY AUTHORITY TO USE ACQUISITION AND CROSS-SERVICING 
              AGREEMENTS TO LOAN SIGNIFICANT MILITARY EQUIPMENT TO 
              FOREIGN FORCES IN IRAQ AND AFGHANISTAN FOR PERSONNEL 
              PROTECTION AND SURVIVABILITY.

    (a) Authority.--
            (1) In general.--Subject to paragraphs (2) and (3), the 
        Secretary of Defense may treat significant military equipment 
        as logistic support, supplies, and services under subchapter I 
        of chapter 138 of title 10, United States Code, for purposes of 
        providing for the use of such equipment by military forces of 
        nations participating in combined operations with United States 
        Forces in Iraq and Afghanistan if the Secretary, with the 
        concurrence of the Secretary of State, determines in writing 
        that it is in the national security interests of the United 
        States to provide for the use of such equipment in such manner.
            (2) Limitation on duration of provision.--Equipment may be 
        used by foreign military forces under this subsection for not 
        longer than one year.
            (3) Limitation on use.--Equipment may be used by foreign 
        military forces under this subsection solely for personnel 
        protection or to aid in the personnel survivability of such 
        forces.
    (b) Semiannual Reports.--
            (1) Reports required.--The Secretary of Defense shall, in 
        coordination with the Secretary of State, submit to the 
        appropriate committees of Congress a report on the exercise of 
        the authority in subsection (a) as follows:
                    (A) If the authority is exercised during the first 
                six-month period of a fiscal year, not later than 30 
                days after such period.
                    (B) If the authority is exercised during the second 
                six-month period of a fiscal year, not later than 30 
                days after such period.
            (2) Elements.--Each report under paragraph (1) shall 
        include, for each exercise of authority under subsection (a) 
        during the period covered by such report, the following:
                    (A) A copy of the written determination under 
                subsection (a) with respect to the exercise of such 
                authority.
                    (B) A statement of each recipient of equipment 
                under the exercise of such authority.
                    (C) A description of the type, quantity, and value 
                of the equipment supplied to each such recipient, and a 
                description of the terms and duration of the supply of 
                the equipment to such recipient.
    (c) Construction With Limitations on Transfer of Military 
Equipment.--The provision of significant military equipment for use 
under this section shall be subject to the provisions of the Arms 
Export Control Act (22 U.S.C. 2751 et seq.) and of any other export 
control regime under law relating to the transfer of military 
technology to foreign nations.
    (d) Definitions.--In this section:
            (1) The term ``appropriate committees of Congress'' means--
                    (A) the Committees on Armed Services and Foreign 
                Relations of the Senate; and
                    (B) the Committees on Armed Services and 
                International Relations of the House of 
                Representatives.
            (2) The term ``significant military equipment'' means items 
        designated as significant military equipment on the United 
        States Munitions List under section 38(a)(1) of the Arms Export 
        Control Act (22 U.S.C. 2778(a)(1)).
    (e) Expiration.--The authority in subsection (a) shall expire on 
September 30, 2008.

SEC. 1206. MODIFICATION OF AUTHORITIES RELATING TO THE BUILDING OF THE 
              CAPACITY OF FOREIGN MILITARY FORCES.

    (a) Funds Available for Presidential Program.--Subsection (c) of 
section 1206 of the National Defense Authorization Act for Fiscal Year 
2006 (Public Law 109-163; 119 Stat. 3456) is amended by striking 
``defense-wide''.
    (b) Limited Authority To Respond to Unanticipated Changes in 
Security Environment.--Such section is further amended--
            (1) by redesignating subsections (f) and (g) as subsections 
        (h) and (i), respectively; and
            (2) by inserting after subsection (e) the following new 
        subsection (f):
    ``(f) Combatant Commander Authority To Respond to Unanticipated 
Changes in Security Environment.--
            ``(1) In general.--During fiscal years 2007 and 2008, the 
        Secretary of Defense may, with the concurrence of the Secretary 
        of State, authorize any commander of a geographic combatant 
        command to respond to unanticipated changes in a security 
        environment within the area of responsibility of such commander 
        by conducting a program to build the capacity of the national 
        military forces of a country within such area of responsibility 
        in order for such country to--
                    ``(A) conduct counterterrorist operations; or
                    ``(B) participate in or support military and 
                stability operations.
            ``(2) Required elements.--Any program under paragraph (1) 
        shall include elements that promote--
                    ``(A) observance of and respect for human rights 
                and fundamental freedoms; and
                    ``(B) respect for legitimate civilian authority 
                within the country concerned.
            ``(3) Authorized elements.--Any program under paragraph (1) 
        may include the provision of equipment, supplies, and training.
            ``(4) Annual funding limitation.--The Secretary of Defense 
        may make available, from funds available for operation and 
        maintenance for fiscal year 2007 or 2008, not to exceed 
        $200,000,000 to conduct activities under paragraph (1) in such 
        fiscal year. Of the amount so made available for a fiscal year, 
        not more than $50,000,000 may be available for any commander of 
        a particular geographic combatant command in such fiscal year. 
        Amounts available under this paragraph are in addition to any 
        other amounts available to the commanders of the geographic 
        combatant commands, including amounts in the Combatant 
        Commanders Initiative Fund.
            ``(5) Assistance otherwise prohibited by law.--The 
        commander of a geographic combatant command may not use the 
        authority in paragraph (1) to provide any type of assistance 
        described in paragraphs (2) and (3) that is otherwise 
        prohibited by any provision of law.
            ``(6) Limitation on eligible countries.--The commander of a 
        geographic combatant command may not use the authority in 
        paragraph (1) to provide any type of assistance described in 
        paragraphs (2) and (3) to any foreign country that is otherwise 
        prohibited from receiving such type of assistance under any 
        other provision of law.
            ``(7) Formulation and execution of programs.--The Secretary 
        of Defense shall prescribe guidance for programs authorized by 
        paragraph (1). Such guidance shall include requirements for the 
        commanders of the geographic combatant commands to--
                    ``(A) formulate any program under paragraph (1) for 
                a country jointly with the United States ambassador or 
                chief of mission to such country; and
                    ``(B) coordinate with the United States ambassador 
                or chief of mission to a country in implementing any 
                program under paragraph (1) for such country.
            ``(8) Congressional notification.--Not less than 15 days 
        after the initiation of activities in a country under a program 
        under paragraph (1), the Secretary of Defense, in coordination 
        with the Secretary of State, shall submit to the congressional 
        committees specified in subsection (e)(3) a notice of the 
        following:
                    ``(A) The country being assisted in the building of 
                the capacity of its military forces under the program.
                    ``(B) The budget, implementation timeline with 
                milestones, and completion date for the program.
                    ``(C) The source and planned expenditure of funds 
                to complete the program.''.
    (c) Limited Authority To Meet Unanticipated Humanitarian Relief or 
Reconstruction Requirements.--Such section is further amended by 
inserting after subsection (f), as added by subsection (b)(2) of this 
section, the following new subsection (g):
    ``(g) Combatant Commander Authority To Meet Unanticipated 
Humanitarian Relief or Reconstruction Requirements.--
            ``(1) In general.--During fiscal years 2007 and 2008, the 
        Secretary of Defense may authorize any commander of a 
        geographic combatant command to provide the assistance 
        described in paragraph (2) to respond to urgent and 
        unanticipated humanitarian relief or reconstruction 
        requirements in a foreign country within the area of 
        responsibility of the commander of the geographic combatant 
        command if the commander of the geographic combatant command 
        determines that the provision of such assistance will promote 
        the security interests of the United States and the country to 
        which such assistance will be provided. Such assistance may be 
        provided without regard to any provision of chapter 137, 140, 
        or 141 of title 10, United States Code, or any other provision 
        of law that would prohibit, restrict, or limit the provision of 
        such assistance.
            ``(2) Types of assistance.--The assistance that may be 
        provided under paragraph (1) includes the following:
                    ``(A) Construction, reconstruction, or repair of 
                municipal, educational, cultural, or other local 
                facilities.
                    ``(B) Reconstitution or improvement of utilities or 
                other local infrastructure.
                    ``(C) Provision of any other goods or services 
                necessary to respond to urgent and unanticipated 
                humanitarian relief or reconstruction requirements.
            ``(3) Prohibition on assistance in certain countries.--
        Assistance may not be provided under paragraph (1) in Iraq or 
        Afghanistan.
            ``(4) Annual funding limitation.--From funds available for 
        operation and maintenance for fiscal year 2007 or 2008, not 
        more than $200,000 may be available to the commander of a 
        geographic combatant command to conduct activities under 
        paragraph (1) in any particular country in such fiscal year. 
        Amounts available under this paragraph are in addition to any 
        other amounts available to the commanders of the geographic 
        combatant commands, including amounts in the Combatant 
        Commanders Initiative Fund.
            ``(5) Construction of authority.--The authority and funds 
        available to the commanders of the geographic combatant 
        commands under this subsection are in addition to any other 
        authorities and funds available to the commanders of the 
        geographic combatant commands.
            ``(6) Guidance on provision of assistance.--(A) No funds 
        may be obligated or expended for the provision of assistance 
        under paragraph (1) until the Secretary of Defense prescribes 
        guidance on the provision of assistance under that paragraph.
            ``(B) The guidance under this paragraph shall include a 
        requirement that any assistance provided under paragraph (1) in 
        a particular country be provided only with the concurrence of 
        the United States ambassador or chief of mission to that 
        country.
            ``(C) Not later than 30 days after the issuance of the 
        guidance under this paragraph, the Secretary shall submit to 
        the congressional defense committees a report setting forth 
        such guidance.
            ``(D) Not later than 30 days after issuing any modification 
        to the guidance under this paragraph, the Secretary shall 
        submit to the congressional defense committees a report on such 
        modification.
            ``(7) Report.--Not later than November 1 of 2007 and 2008, 
        the Secretary of Defense shall submit to the congressional 
        defense committees a report on the provision of assistance 
        under paragraph (1) during the preceding fiscal year. Each 
        report shall include, for the fiscal year covered by such 
        report, the following:
                    ``(A) The source of funds utilized to provide 
                assistance under paragraph (1) during such fiscal year.
                    ``(B) Each country in which assistance was so 
                provided.
                    ``(C) For each country so provided assistance, the 
                type and amount of assistance provided.''.
    (d) Termination of Authority.--Subsection (i) of such section, as 
redesignated by subsection (b)(1) of this section, is further amended 
to read as follows:
    ``(i) Termination.--
            ``(1) Termination of presidential program.--The authority 
        of the President under subsection (a) to direct the Secretary 
        of Defense to conduct a program 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.
            ``(2) Termination of combatant commander authorities.--The 
        authority of the commanders of the geographic combatant 
        commands to carry out programs under subsection (f), and to 
        provide assistance under subsection (g), terminates at the 
        close of September 30, 2008. Any program or assistance 
        commenced before that date may be completed, but only using 
        funds available for fiscal year 2007 or 2008.''.

SEC. 1207. 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 the Department of Defense, and of 
members of the armed forces and civilian personnel of the Department, 
in multinational military centers 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 centers 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 section are 
as follows:
            (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) Memorandum of Understanding.--The participation of the 
Department of Defense, or of members of the armed forces or civilian 
personnel of the Department, in a multinational military center of 
excellence under subsection (a) shall be governed by 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.
    (d) Availability of Appropriated Funds.--(1) Funds appropriated to 
the Department of Defense for operation and maintenance are available 
as follows:
            (A) To pay the United States share of the 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 the Department 
        of Defense, and of members of the armed forces and civilian 
        personnel of the Department, in multinational military centers 
        of excellence under this section, including the costs of pay, 
        salaries, and expenses of such members and personnel in 
        participating in such centers.
    (2) The amount available under paragraph (1) in fiscal year 2007 
for the expenses and costs referred to in that paragraph may not exceed 
$3,000,000.
    (e) Use of Department of Defense Facilities and Equipment.--(1) 
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.
    (2) The use of facilities and equipment for support of a 
multinational military center of excellence under paragraph (1) may, at 
the election of the Secretary of Defense, be with or without 
reimbursement by other nations participating in the center.
    (f) Report on Use of Authority.--
            (1) Report required.--Not later than October 31, 2007, the 
        Secretary of Defense shall submit to the congressional defense 
        committees 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
                            (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).
    (g) Definitions.--In this section:
            (1) The term ``multinational military center of 
        excellence'' means an entity sponsored by one or more nations 
        that is accredited and approved by the North Atlantic Treaty 
        Organization military committee as offering recognized 
        expertise and experience to personnel participating in the 
        activities of such entity for the benefit of the North Atlantic 
        Treaty Organization 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) 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 for purposes of 
        this section by the Secretary of Defense with the concurrence 
        of the Secretary of State.

SEC. 1208. DISTRIBUTION OF EDUCATION AND TRAINING MATERIALS AND 
              INFORMATION TECHNOLOGY TO ENHANCE INTEROPERABILITY.

    (a) Distribution Authorized.--In furtherance of the national 
security objectives of the United States and to improve 
interoperability between the Armed Forces of the United States and 
military forces of friendly foreign countries, the Secretary of Defense 
may--
            (1) provide to the 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, to support the use of such 
        learning content for the education and training of such 
        personnel.
    (b) Personnel.--The personnel to which learning content and 
information technology may be provided under subsection (a) are as 
follows:
            (1) Military and civilian personnel of friendly foreign 
        governments.
            (2) Personnel of internationally-recognized nongovernmental 
        organizations.
    (c) Education and Training.--The 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) Information Technology.--In providing information technology 
under subsection (a)(2), the Secretary of Defense may only expend funds 
for the development and provision of information technology and 
learning content necessary to support the provision of education and 
training authorized by this section.
    (e) Secretary of State Concurrence in Certain Activities.--In the 
case of any activity proposed to be undertaken under the authority in 
this section that is not authorized by another provision of law, the 
Secretary of Defense may not undertake such activity without the 
concurrence of the Secretary of State.
    (f) Construction With Other Authority.--
            (1) Supplemental authority.--The authority in this section 
        is in addition to any other authority available to the 
        Secretary of Defense to provide assistance to foreign nations 
        or military forces.
            (2) Limitation.--The provision of learning content and 
        information technology under the authority in 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.
    (g) Guidance.--
            (1) Guidance required.--The Secretary of Defense shall 
        develop and issue guidance on the procedures for the use of the 
        authority in this section.
            (2) Submittal to congress.--Not later than 30 days after 
        issuing the guidance required by paragraph (1), the Secretary 
        shall submit to the congressional defense committees a report 
        setting forth such guidance.
            (3) Modification.--In the event the Secretary modifies the 
        guidance required by paragraph (1), the Secretary shall submit 
        to the congressional defense committees a report setting forth 
        the modified guidance not later than 30 days after the date of 
        such modification.
    (h) Annual Report.--
            (1) Report required.--Not later than October 31 of 2007 and 
        2008, the Secretary of Defense shall submit to the 
        congressional defense committees a report on the exercise of 
        the authority in this section during the preceding fiscal year.
            (2) Elements.--The 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.
    (i) Termination.--The authority in this section shall expire on 
September 30, 2008.

                       Subtitle B--Report Matters

SEC. 1221. REPORT ON INCREASED ROLE AND PARTICIPATION OF MULTINATIONAL 
              PARTNERS IN THE UNITED NATIONS COMMAND IN THE REPUBLIC OF 
              KOREA.

    (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 an increased role and 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, and 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 whether and how members of the United 
        Nations Command in the Republic of Korea might be persuaded to 
        deploy military forces in peacetime to the Republic of Korea to 
        bolster the deterrence mission of the United Nations Command.
            (4) An assessment of how the military and political 
        requirements for United States military forces in the Republic 
        of Korea might be affected were multinational partners in the 
        United Nations Command in the Republic of Korea to increase 
        their contribution of military forces stationed in the Republic 
        of Korea.
            (5) An assessment of whether and how the contribution of 
        additional military forces to the United Nations Command in the 
        Republic of Korea by a multinational partner might affect that 
        partner's approach to facilitating a diplomatic resolution of 
        the nuclear challenge posed by the Democratic Peoples 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.

SEC. 1222. REPORT ON INTERAGENCY OPERATING PROCEDURES FOR STABILIZATION 
              AND RECONSTRUCTION OPERATIONS.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the United States Government should bring to bear all 
        elements of national power to achieve its national security 
        objectives, including stabilization and reconstruction 
        operations;
            (2) civilian agencies of the United States Government lack 
        the capacity to deploy rapidly, and for sustained periods of 
        time, trained personnel to support stabilization and 
        reconstruction operations in the field;
            (3) civilian agencies of the United States Government 
        should expand their capacity to plan, coordinate, and conduct 
        stabilization and reconstruction operations, including their 
        capacity to deploy civilians with relevant expertise to 
        participate in sustained stability and reconstruction 
        operations;
            (4) National Security Presidential Directive 44, entitled 
        ``Management of Interagency Efforts Concerning Reconstruction 
        and Stabilization'', is a positive step toward improving 
        coordination, planning, and implementation by the United States 
        Government of reconstruction and stabilization assistance for 
        foreign states and regions at risk of, in, or in transition 
        from conflict or civil strife;
            (5) all the relevant United States Government agencies 
        should include in their budget requests for future fiscal years 
        adequate funding for planning and preparing to support 
        contingency operations and, as necessary, request emergency 
        supplemental funds for unanticipated contingency operations; 
        and
            (6) the President should provide clear guidance to United 
        States Government agencies to manage complex operations and 
        establish a standard, integrated approach to the planning and 
        conduct of interagency operations to ensure a coherent and 
        unified United States Government approach to contingency 
        operations.
    (b) Report.--Not later than six months after the date of the 
enactment of this Act, the President shall submit to Congress a report 
setting forth a plan to establish interagency operating procedures for 
the departments and agencies of the United States Government for the 
planning and conduct of stabilization and reconstruction operations.
    (c) Plan Elements.--The plan required under the report under 
subsection (b) shall include the following:
            (1) A delineation of the roles, responsibilities, and 
        authorities of the departments and agencies of the United 
        States Government for stabilization and reconstruction 
        operations.
            (2) A description of operational processes for setting 
        policy direction for stabilization and reconstruction 
        operations in order to guide--
                    (A) operational planning and funding decisions of 
                such departments and agencies;
                    (B) oversight of policy implementation;
                    (C) integration of programs and activities into an 
                implementation plan;
                    (D) integration of civilian and military planning 
                efforts;
                    (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 stabilization and 
        reconstruction operations, and an identification of additional 
        resources needed to support the conduct of stabilization and 
        reconstruction activities.
            (4) A description of how the capabilities and resources of 
        the departments and agencies of the United States Government 
        under stabilization and reconstruction operations will be 
        coordinated.
            (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 under stabilization 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 
        stabilization and reconstruction operations.
            (7) A discussion of the statutory and budgetary 
        impediments, if any, that prevent civilian agencies of the 
        United States Government from fully and effectively 
        participating in stabilization and reconstruction operations, 
        and recommendations for legislative or administration actions 
        to enhance the ability of the United States Government to 
        conduct stabilization and reconstruction operations.
            (8) Guidance for the implementation of the plan.

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

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.

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, 
        $77,000,000.
            (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, 
        $37,500,000.
            (5) For biological weapons proliferation prevention in the 
        former Soviet Union, $68,400,000.
            (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) Authority.--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.--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) Limitation.--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.

SEC. 1303. EXTENSION OF TEMPORARY AUTHORITY TO WAIVE LIMITATION ON 
              FUNDING FOR CHEMICAL WEAPONS DESTRUCTION FACILITY IN 
              RUSSIA.

    Section 1303(b) 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 by striking ``December 31, 2006, 
and no waiver shall remain in effect after that date'' and inserting 
``December 31, 2011''.

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

SEC. 1401. PURPOSE.

    The purpose of this title is to authorize anticipated 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. 1402. 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, $404,100,000.
            (2) For missile procurement, $450,000,000.
            (3) For weapons and tracked combat vehicles, $214,400,000.
            (4) For other procurement, $686,600,000.

SEC. 1403. MARINE CORPS PROCUREMENT.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
for the procurement account for the Marine Corps in the amount of 
$319,800,000.

SEC. 1404. AIR FORCE PROCUREMENT.

    Funds are hereby authorized to be appropriated for fiscal year 2007 
for the aircraft procurement account for the Air Force in the amount of 
$51,800,000.

SEC. 1405. 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, $22,124,466,000.
            (2) For the Navy, $2,349,560,000.
            (3) For the Marine Corps, $1,544,920,000.
            (4) For the Air Force, $2,779,898,000.
            (5) For Defense-wide activities, $3,388,402,000.
            (6) For the Army National Guard, $59,000,000.

SEC. 1406. 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 in the amount of $960,200,000 for 
operation and maintenance.

SEC. 1407. MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for fiscal year 2007 for military personnel accounts a total of 
$7,335,872,000.

SEC. 1408. JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND.

    There is hereby authorized to be appropriated to the Department of 
Defense for fiscal year for the Joint Improvised Explosive Device 
Defeat Fund a total of $2,100,000,000.

SEC. 1409. CLASSIFIED PROGRAMS.

    There is hereby authorized to be appropriated to the Department of 
Defense for fiscal year 2007 for classified programs a total of 
$3,000,000,000.

SEC. 1410. 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 
$2,230,982,000.
    (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.

SEC. 1411. 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. 1412. 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.
    (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. 1413. 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.
                                                       Calendar No. 427

109th CONGRESS

  2d Session

                                S. 2767

_______________________________________________________________________

                                 A BILL

     To authorize appropriations for fiscal year 2007 for military 
    activities of the Department of Defense, to prescribe personnel 
  strengths for such fiscal year for the Armed Forces, and for other 
                               purposes.

_______________________________________________________________________

                              May 9, 2006

                 Read twice and placed on the calendar