[Congressional Record (Bound Edition), Volume 152 (2006), Part 10]
[Senate]
[Pages 13289-13382]
[From the U.S. Government Publishing Office, www.gpo.gov]




      DEPARTMENT OF DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2007

  On Thursday, June 22, 2006, the Senate passed S. 2767, as follows:

                                S. 2767

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

     SECTION 1. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Table of contents.
Sec. 2. Congressional defense committees.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

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

                       Subtitle B--Army Programs

Sec. 111. 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.
Sec. 114. Replacement equipment.

                       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. Funding for procurement of F-22A fighter aircraft.
Sec. 147. Multiyear procurement of F-119 engines for F-22A fighter 
              aircraft.
Sec. 148. Multi-spectral imaging capabilities.
Sec. 149. Minuteman III Intercontinental Ballistic Missiles.

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

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for science and technology.
Sec. 203. Amount for development and validation of warfighter rapid 
              awareness processing 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.
Sec. 215. Arrow ballistic missile defense system.
Sec. 216. High Energy Laser Low Aspect Target Tracking.
Sec. 217. Advanced Aluminum Aerostructures Initiative.
Sec. 218. Legged mobility robotic research.
Sec. 219. Wideband Digital Airborne Electronic Sensing Array.
Sec. 220. Science and technology.

                  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.
Sec. 236. Testing and operations for missile defense.

                       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.
Sec. 257. Report on biometrics programs of the Department of Defense.

                  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.
Sec. 315. Expansion of Junior Reserve Officers' Training Corps program.
Sec. 316. Infantry Combat Equipment.
Sec. 317. Individual First Aid Kit.
Sec. 318. Reading for the Blind and Dyslexic program of the Department 
              of Defense.
Sec. 319. Military training infrastructure improvements at Virginia 
              Military Institute.
Sec. 320. Environmental documentation for beddown of F-22A aircraft at 
              Holloman Air Force Base, New Mexico.

[[Page 13290]]

                  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.
Sec. 352. National Academy of Sciences study on human exposure to 
              contaminated drinking water at Camp Lejeune, North 
              Carolina.
Sec. 353. Report on aerial training airspace requirements of the 
              Department of Defense.
Sec. 354. Report on actions to reduce Department of Defense consumption 
              of petroleum-based fuel.
Sec. 355. Reports on withdrawal or diversion of equipment from reserve 
              units for support of reserve units being mobilized and 
              other units.
Sec. 356. Plan to replace equipment withdrawn or diverted from the 
              reserve components of the Armed Forces for Operation 
              Iraqi Freedom or Operation Enduring Freedom.
Sec. 357. Plan to replace equipment withdrawn or diverted from the 
              reserve components of the Armed Forces for Operation 
              Iraqi Freedom or Operation Enduring Freedom.
Sec. 358. Report on vehicle-based active protection systems for certain 
              battlefield threats.
Sec. 359. Report on high altitude aviation training site, Eagle County, 
              Colorado.
Sec. 360. Report on Air Force safety requirements for Air Force flight 
              training operations at Pueblo Memorial Airport, Colorado.
Sec. 360A. Report on use of alternative fuels by the Department of 
              Defense.

                 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.
Sec. 375. Energy efficiency in weapons platforms.
Sec. 376. Chemical demilitarization program contracting authority.
Sec. 377. Utilization of fuel cells as back-up power systems in 
              Department of Defense operations.
Sec. 378. Prepositioning of Department of Defense assets to improve 
              support to civilian authorities.
Sec. 379. Recovery and availability to corporation for the promotion of 
              rifle practice and firearms safety of certain firearms, 
              ammunition, and parts.

              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.
Sec. 509. Modification of qualifications for leadership of the Naval 
              Postgraduate School.

                   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.
Sec. 521. Report on joint officer promotion boards.

            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.
Sec. 530. Condition on appointment of commissioned officers to position 
              of Director of National Intelligence or Director of the 
              Central Intelligence Agency.

            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.
Sec. 552. Clarification of application of Uniform Code of Military 
              Justice during a time of war.

               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.

[[Page 13291]]

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.
Sec. 569. Review of legal status of Junior ROTC program.
Sec. 570. Junior Reserve Officers' Training Corps instructor 
              qualifications.
Sec. 570A. Modification of time limit for use of entitlement to 
              educational assistance for reserve component members 
              supporting contingency operations and other operations.

            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.
Sec. 587. Sense of Senate on notice to Congress of recognition of 
              members of the Armed Forces for extraordinary acts of 
              bravery, heroism, and achievement.
Sec. 588. Report on provision of electronic copy of military records on 
              discharge or release of members from the Armed Forces.
Sec. 589. Purple Heart award eligibility.
Sec. 590. Comprehensive review on procedures of the Department of 
              Defense on Mortuary Affairs.
Sec. 591. Report on omission of social security numbers on military 
              identification cards.
Sec. 592. Funeral ceremonies for veterans.

          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.
Sec. 620. Accession bonus for members of the Armed Forces appointed as 
              commissioned officers after completing officer candidate 
              school.
Sec. 621. Enhancement of bonus to encourage members of the Army to 
              refer other persons for enlistment 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.
Sec. 648. Renaming of death gratuity payable for deaths of members of 
              the Armed Forces as fallen hero compensation.
Sec. 649. Effective date of termination of phase-in of concurrent 
              receipt for veterans with service-connected disabilities 
              rated as total by virtue of unemployability.
Sec. 650. Determination of retired pay base of general and flag 
              officers based on rates of basic pay provided by law.
Sec. 651. Inapplicability of retired pay multiplier maximum percentage 
              to service of members of the Armed Forces in excess of 30 
              years.
Sec. 652. Modification of eligibility for commencement of authority for 
              optional annuities for dependents under the survivor 
              benefit plan.
Sec. 653. Commencement of receipt of non-regular service retired pay by 
              members of the Ready Reserve on active Federal status or 
              active duty for significant periods.

                       Subtitle E--Other Matters

Sec. 661. Audit of pay accounts of members of the Army evacuated from a 
              combat zone for inpatient care.
Sec. 662. Pilot Program on Troops to Nurse Teachers.
Sec. 663. Expansion and enhancement of authority to remit or cancel 
              indebtedness of members of the Armed Forces.
Sec. 664. Exception for notice to consumer reporting agencies regarding 
              debts or erroneous payments pending a decision to waive, 
              remit, or cancel.
Sec. 665. Enhancement of authority to waive claims for overpayment of 
              pay and allowances.
Sec. 666. Terms of consumer credit extended to servicemember or 
              servicemember's dependent.
Sec. 667. Joint family support assistance program.
Sec. 668. Improvement of management of Armed Forces Retirement Home.

Subtitle F--Transition Assistance for Members of the National Guard and 
    Reserve Returning From Deployment in Operation Iraqi Freedom or 
                       Operation Enduring Freedom

Sec. 681. Short title.
Sec. 682. Special working group on transition to civilian employment of 
              members of the National Guard and Reserve returning from 
              deployment in Operation Iraqi Freedom and Operation 
              Enduring Freedom.
Sec. 683. Office for employers and employment assistance organizations.
Sec. 684. Additional responsibilities of Department of Defense task 
              force on mental health relating to mental health of 
              members of the National Guard and Reserve deployed in 
              Operation Iraqi Freedom and Operation Enduring Freedom.

[[Page 13292]]

Sec. 685. Grants on assistance in community-based settings for members 
              of the National Guard and Reserve and their families 
              after deployment in Operation Iraqi Freedom and Operation 
              Enduring Freedom.
Sec. 686. Longitudinal study on traumatic brain injury incurred by 
              members of the Armed Forces in Operation Iraqi Freedom 
              and Operation Enduring Freedom.
Sec. 687. Training curricula for family caregivers on care and 
              assistance for members and former members of the Armed 
              Forces with traumatic brain injury incurred in Operation 
              Iraqi Freedom and Operation Enduring Freedom.

                         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.
Sec. 707. Temporary prohibition on increase in copayments under retail 
              pharmacy system of pharmacy benefits program.
Sec. 708. Expansion of eligibility of members of the Selected Reserve 
              for coverage under TRICARE.

           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.
Sec. 730. Mental Health Self-Assessment Program.
Sec. 731. Additional authorized option periods for extension of current 
              contracts under TRICARE.
Sec. 732. Military vaccination matters.
Sec. 733. Enhanced mental health screening and services for members of 
              the Armed Forces.
Sec. 734. Education, training, and supervision of personnel providing 
              special education services under extended benefits under 
              TRICARE.

                    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.
Sec. 746. Study of health effects of exposure to depleted uranium.

                       Subtitle D--Other Matters

Sec. 761. Extension of limitation on conversion of military medical and 
              dental positions to civilian medical and dental 
              positions.
Sec. 762. Transfer of custody of the Air Force health study assets to 
              Medical Follow-Up Agency.
Sec. 763. Sense of Senate on the Transformational Medical Technology 
              Initiative of the Department of Defense.

  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.
Sec. 812. Government performance of critical acquisition functions.

              Subtitle B--Defense Industrial Base Matters

Sec. 821. Removal of hand and measuring tools from certain 
              requirements.
Sec. 822. Applicability of certain requirements regarding specialty 
              metals.
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. Department of Defense 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.
Sec. 874. Pilot program on expanded use of mentor-protege authority.

      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.
Sec. 903. United States Marine Band and United States Marine Drum and 
              Bugle Corps.
Sec. 904. Military deputies to the assistant secretaries of the 
              military departments for acquisition, logistics, and 
              technology matters.

[[Page 13293]]

                      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. 
Sec. 913. Independent review and assessment of Department of Defense 
              organization and management for national security in 
              space.

                       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.
Sec. 924. Sense of Senate on nomination of individual to serve as 
              Director of Operational Test and Evaluation on a 
              permanent basis.
Sec. 925. Inclusion of homeland defense and civil support missions of 
              the National Guard and Reserves in the Quadrennial 
              Defense Review.
Sec. 926. Reforms to the Defense Travel System to a Fee-For-Use-of-
              Service System.
Sec. 927. Report on incorporation of elements of the reserve components 
              into the Special Forces.

               Subtitle D--National Guard Bureau Matters

Sec. 931. Short title.
Sec. 932. Expanded authority of Chief of the National Guard Bureau and 
              expanded functions of the National Guard Bureau.
Sec. 933. Requirement that position of Deputy Commander of the United 
              States Northern Command be filled by a qualified National 
              Guard officer.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Authorization of additional emergency supplemental 
              appropriations for fiscal year 2006.
Sec. 1003. Reduction in certain authorizations due to savings relating 
              to lower inflation.
Sec. 1004. Increase in fiscal year 2006 general transfer authority.
Sec. 1005. United States contribution to NATO common-funded budgets in 
              fiscal year 2007.
Sec. 1006. Modification of date of submittal of OMB/CBO report on 
              scoring of outlays.
Sec. 1007. Prohibition on parking of funds.
Sec. 1008. Incorporation of Classified Annex.
Sec. 1009. Reports to Congress and notice to public on earmarks in 
              funds available to the Department of Defense.

                       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.
Sec. 1013. Naming of CVN-78 Aircraft Carrier as the U.S.S. Gerald Ford.
Sec. 1014. Authority to donate SS ARTHUR M. HUDDELL to the Government 
              of Greece.

                    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.
Sec. 1024. Operation Bahamas, Turks & Caicos.

          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.
Sec. 1035. Collection by National Security Agency of service charges 
              for certification or validation of information assurance 
              products.
Sec. 1036. Funding for a certain military intelligence 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.
Sec. 1044. Temporary National Guard support for securing the southern 
              land border of the United States.

 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.
Sec. 1054. Strengthening the Special Inspector General for Iraq 
              Reconstruction.

                       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.
Sec. 1066. Report on incentives to encourage certain members and former 
              members of the Armed Forces to serve in the Bureau of 
              Customs and Border Protection.
Sec. 1067. Report on reporting requirements applicable to the 
              Department of Defense.
Sec. 1068. Report on technologies for neutralizing or defeating threats 
              to military rotary wing aircraft from portable air 
              defense systems and rocket propelled grenades.
Sec. 1069. Reports on Department of Justice efforts to investigate and 
              prosecute cases of contracting abuse in Iraq, 
              Afghanistan, and throughout the war on terror.
Sec. 1070. Report on biodefense staffing and training requirements in 
              support of national biosafety laboratories.
Sec. 1070A. Annual report on acquisitions of articles, materials, and 
              supplies manufactured outside the United States.
Sec. 1070B. Annual report on foreign sales of significant military 
              equipment manufactured inside the United States.
Sec. 1070C. Report on feasibility of establishing regional combatant 
              command for Africa.
Sec. 1070D. Annual reports on expanded use of unmanned aerial vehicles 
              in the National Airspace System.

            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. Quadrennial Defense Review.
Sec. 1084. Sense of Congress on the commendable actions of the Armed 
              Forces.
Sec. 1085. Budgeting for ongoing military operations.
Sec. 1086. Court security improvements.
Sec. 1087. Sense of the Senate on destruction of chemical weapons.
Sec. 1088. Improved accountability for competitive contracting in 
              hurricane recovery.
Sec. 1089. Protection of certain disclosures of information by Federal 
              employees.
Sec. 1090. Sense of Congress regarding the men and women of the Armed 
              Forces of the United States in Iraq.
Sec. 1091. Extension of returning worker exemption.
Sec. 1092. Limitation on the United States share of assessments for 
              United Nations peacekeeping operations.

[[Page 13294]]

Sec. 1093. Termination of program.
Sec. 1094. Patent term extensions for the badges of the American 
              Legion, the American Legion Women's Auxiliary, and the 
              Sons of the American Legion.
Sec. 1095. Availability of funds for South County Commuter Rail 
              Project, Providence, Rhode Island.
Sec. 1096. Sense of Congress on Iraq summit.

       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.
Sec. 1104. Programs for use of leave by caregivers for family members 
              of individuals performing certain military service.
Sec. 1105. Three-year extension of authority for experimental personnel 
              management program for scientific and technical 
              personnel.

              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.
Sec. 1209. United States' policy on the nuclear programs of Iran.
Sec. 1210. Modification of limitations on assistance under the American 
              Servicemembers' Protection Act of 2002.
Sec. 1211. Sense of the Congress commending the Government of Iraq for 
              affirming its position of no amnesty for terrorists who 
              attack United States Armed Forces.
Sec. 1212. Sense of Congress on the granting of amnesty to persons 
              known to have killed members of the Armed Forces in Iraq.
Sec. 1213. Annual reports on United States contributions to the United 
              Nations.
Sec. 1214. North Korea.
Sec. 1215. Comprehensive strategy for Somalia.
Sec. 1216. Intelligence on Iran.
Sec. 1217. Reports on implementation of the Darfur Peace Agreement.

                       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.
Sec. 1223. Repeal of certain report requirements.
Sec. 1224. Reports on the Darfur Peace Agreement.

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

Sec. 1301. Specification of Cooperative Threat Reduction programs and 
              funds.
Sec. 1302. Funding allocations.
Sec. 1303. Extension of temporary authority to waive limitation on 
              funding for chemical weapons destruction facility in 
              Russia.
Sec. 1304. Removal of certain restrictions on provision of cooperative 
              threat reduction assistance.

  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. 1414. Amount for procurement of hemostatic agents for use in the 
              field.
Sec. 1415. Our Military Kids youth support program.
Sec. 1416. Joint Advertising, Market Research and Studies program.
Sec. 1417. Report.
Sec. 1418. Submittal to Congress of Department of Defense supplemental 
              and cost of war execution reports.
Sec. 1419. Limitation on availability of funds for certain purposes 
              relating to Iraq.

     SEC. 2. CONGRESSIONAL DEFENSE COMMITTEES.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

     SEC. 101. ARMY.

       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

[[Page 13295]]

     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.

     SEC. 114. REPLACEMENT EQUIPMENT.

       (a) Priority.--Priority for the distribution of new and 
     combat serviceable equipment, with associated support and 
     test equipment for acting and reserve component forces, shall 
     be given to units scheduled for mission deployment, 
     employment first, or both regardless of component.
       (b) Allocation.--In the amounts authorized to be 
     appropriated by section 101(5) for the procurement of 
     replacement equipment, subject to subsection (a), priority 
     for the distribution of Army National Guard equipment 
     described in subsection (a) may be given to States that have 
     experienced a major disaster, as determined under the Robert 
     T. Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5121-5206), and may require replacement equipment to 
     respond to future emergencies/disasters only after 
     distribution of new and combat serviceable equipment has been 
     made in accordance with subsection (a).

                       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.

[[Page 13296]]

       (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. FUNDING FOR PROCUREMENT OF F-22A FIGHTER 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 fighter aircraft.
       (b) Multiyear Procurement.--The Secretary of the Air Force 
     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 not more 
     than 60 F-22A fighter aircraft.

     SEC. 147. MULTIYEAR PROCUREMENT OF F-119 ENGINES FOR F-22A 
                   FIGHTER AIRCRAFT.

       The Secretary of the Air Force 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 the following:
       (1) Not more than 120 F-119 engines for F-22A fighter 
     aircraft.
       (2) Not more than 13 spare F-119 engines for F-22A fighter 
     aircraft.

     SEC. 148. MULTI-SPECTRAL IMAGING CAPABILITIES.

       (a) Findings.--The Senate makes the following findings:
       (1) The budget of the President for fiscal year 2007, as 
     submitted to Congress under section 1105(a) of title 31, 
     United States Code, and the current Future-Years Defense 
     Program adopts an Air Force plan to retire the remaining 
     fleet of U-2 aircraft by 2011.
       (2) This retirement would eliminate the multi-spectral 
     capability provided by the electro-optical/infrared (EO/IR) 
     Senior Year Electro-optical Reconnaissance System (SYERS-2) 
     high-altitude imaging system.
       (3) The system referred to in paragraph (2) provides high-
     resolution, long-range, day-and-night image intelligence.
       (4) The infrared capabilities of the system referred to in 
     paragraph (2) can defeat enemy efforts to use camouflage or 
     concealment, as well as provide images through poor 
     visibility and smoke.
       (5) Although the Air Force has previously recognized the 
     military value of Senior Year Electro-optical Reconnaissance 
     System sensors, the Air Force has no plans to migrate this 
     capability to any platform remaining in the fleet.
       (6) The Air Force could integrate such capabilities onto 
     the Global Hawk platform to retain this capability for 
     combatant commanders.
       (7) The Nation risks a loss of an important intelligence 
     gathering capability if this capability is not transferred to 
     another platform.
       (b) Sense of Senate.--It is the sense of the Senate that 
     the Air Force should investigate ways to retain the multi-
     spectral imaging capabilities provided by the Senior Year 
     Electro-optical Reconnaissance System high-altitude imaging 
     system after the retirement of the U-2 aircraft fleet.
       (c) Report Requirement.--The Secretary of the Air Force 
     shall submit to the congressional defense committees, at the 
     same time the budget of the President for fiscal year 2008 is 
     submitted to Congress under section 1105(a) of title 31, 
     United States Code, a plan for migrating the capabilities 
     provided by the Senior Year Electro-optical Reconnaissance 
     System high-altitude imaging system from the U-2 aircraft to 
     the Global Hawk platform before the retirement of the U-2 
     aircraft fleet in 2011.

     SEC. 149. MINUTEMAN III INTERCONTINENTAL BALLISTIC MISSILES.

       (a) Findings.--Congress makes the following findings:
       (1) In the Joint Explanatory Statement of the Committee of 
     Conference on H.R. 1815, the National Defense Authorization 
     Act for Fiscal Year 2006, the conferees state that the policy 
     of the United States ``is to deploy a force of 500 ICBMs''. 
     The conferees further note ``that unanticipated strategic 
     developments may compel the United States to make changes to 
     this force structure in the future.''.
       (2) The Quadrennial Defense Review (QDR) conducted under 
     section 118 of title 10, United States Code, in 2005 finds 
     that maintaining a robust nuclear deterrent ``remains a 
     keystone of United States national power''. However, 
     notwithstanding that finding and without providing any 
     specific justification for the recommendation, the 
     Quadrennial Defense Review recommends reducing the number of 
     deployed Minuteman III Intercontinental Ballistic Missiles 
     (ICBMs) from 500 to 450 beginning in fiscal year 2007. The 
     Quadrennial Defense Review also fails to identify what 
     unanticipated strategic developments compelled the United 
     States to reduce the Intercontinental Ballistic Missile force 
     structure.
       (3) The commander of the Strategic Command, General James 
     Cartwright, testified before the Committee on Armed Services 
     of the Senate that the reduction in deployment of Minuteman 
     III Intercontinental Ballistic Missiles is required so that 
     the 50 missiles withdrawn from the deployed force could be 
     used for test assets and spares to extend the life of the 
     Minuteman III Intercontinental Ballistic Missile well into 
     the future. If spares are not modernized, the Air Force may 
     not have sufficient replacement missiles to sustain the force 
     size.
       (b) Modernization of Intercontinental Ballistic Missiles 
     Required.--The Air Force shall modernize Minuteman III 
     Intercontinental Ballistic Missiles in the United States 
     inventory as required to maintain a sufficient supply of 
     launch test assets and spares to sustain the deployed force 
     of such missiles through 2030.
       (c) Limitation on Termination of Modernization Program 
     Pending Report.--No funds authorized to be appropriated for 
     the Department of Defense may be obligated or expended for 
     the termination of any Minuteman III ICBM modernization 
     program, or for the withdrawal of any Minuteman III 
     Intercontinental Ballistic Missile from the active force, 
     until 30 days after the Secretary of Defense submits to the 
     congressional defense committees a report setting forth the 
     following:
       (1) A detailed strategic justification for the proposal to 
     reduce the Minuteman III Intercontinental Ballistic Missile 
     force from 500 to 450 missiles, including an analysis of the 
     effects of the reduction on the ability of the United States 
     to assure allies and dissuade potential competitors.
       (2) A detailed analysis of the strategic ramifications of 
     continuing to equip a portion of the Minuteman III 
     Intercontinental Ballistic Missile force with multiple 
     independent warheads rather than single warheads as 
     recommended by past reviews of the United States nuclear 
     posture.
       (3) An assessment of the test assets and spares required to 
     maintain a force of 500 deployed Minuteman III 
     Intercontinental Ballistic Missiles through 2030.
       (4) An assessment of the test assets and spares required to 
     maintain a force of 450 deployed Minuteman III 
     Intercontinental Ballistic Missiles through 2030.
       (5) An inventory of currently available Minuteman III 
     Intercontinental Ballistic Missile test assets and spares.
       (6) A plan to sustain and complete the modernization of all 
     deployed and spare Minuteman III Intercontinental Ballistic 
     Missiles, a test plan, and an analysis of the funding 
     required to carry out modernization of all deployed and spare 
     Minuteman III Intercontinental Ballistic Missiles.
       (7) An assessment of whether halting upgrades to the 
     Minuteman III Intercontinental Ballistic Missiles withdrawn 
     from the deployed force would compromise the ability of those 
     missiles to serve as test assets.
       (8) A description of the plan of the Department of Defense 
     for extending the life of the Minuteman III Intercontinental 
     Ballistic Missile force beyond fiscal year 2030.
       (d) Remote Visual Assessment.--
       (1) Additional amount for research, development, test, and 
     evaluation, air force.--The amount authorized to be 
     appropriated by section 201(3) for research, development, 
     test, and evaluation for the Air Force is hereby increased by 
     $5,000,000.
       (2) Availability of amount.--Of the amount authorized to be 
     appropriated by section 201(3) for research, development, 
     test, and evaluation for the Air Force, as increased by 
     paragraph (1), $5,000,000 may be available for ICBM Security 
     Modernization (PE #0604851) for Remote Visual Assessment for 
     security for silos for intercontinental ballistic missiles 
     (ICBMs).
       (3) Offset.--The amount authorized to be appropriated by 
     section 103(2) for procurement of missiles for the Air Force 
     is hereby reduced by $5,000,000, with the amount of the 
     reduction to be allocated to amounts available for the 
     Evolved Expendable Launch Vehicle.
       (e) ICBM Modernization Program Defined.--In this section, 
     the term ``ICBM Modernization program'' means each of the 
     following for the Minuteman III Intercontinental Ballistic 
     Missile:
       (1) The Guidance Replacement Program (GRP).
       (2) The Propulsion Replacement Program (PRP).
       (3) The Propulsion System Rocket Engine (PSRE) program.
       (4) The Safety Enhanced Reentry Vehicle (SERV) program.

[[Page 13297]]



         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.

     SEC. 203. AMOUNT FOR DEVELOPMENT AND VALIDATION OF WARFIGHTER 
                   RAPID AWARENESS PROCESSING TECHNOLOGY.

       (a) Increase in Amount for Research, Development, Test, and 
     Evaluation for the Navy.--The amount authorized to be 
     appropriated by section 201(2) for research, development, 
     test, and evaluation for the Navy is hereby increased by 
     $4,000,000.
       (b) Availability of Amount.--Of the amount authorized to be 
     appropriated by section 201(2) for research, development, 
     test, and evaluation for the Navy, as increased by subsection 
     (a), $4,000,000 may be available for the development, 
     validation, and demonstration of warfighter rapid awareness 
     processing technology for distributed operations within the 
     Marine Corps Landing Force Technology program.
       (c) Offset.--The amount authorized to be appropriated by 
     section 421 for military personnel is hereby decreased by 
     $4,000,000, due to unexpended obligations, if available.

    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.

[[Page 13298]]

       (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).

     SEC. 215. ARROW BALLISTIC MISSILE DEFENSE SYSTEM.

       Of the amount authorized to be appropriated by section 
     201(4) for research, development, test, and evaluation for 
     Defense-wide activities and available for ballistic missile 
     defense--
       (1) $65,000,000 may be available for coproduction of the 
     Arrow ballistic missile defense system; and
       (2) $63,702,000 may be available for the Arrow System 
     Improvement Program.

     SEC. 216. HIGH ENERGY LASER LOW ASPECT TARGET TRACKING.

       (a) Additional Amount for Research, Development, Test, and 
     Evaluation, Army.--The amount authorized to be appropriated 
     by section 201(1) for research, development, test, and 
     evaluation for the Army is hereby increased by $5,000,000.
       (b) Availability of Amount.--
       (1) In general.--Of the amount authorized to be 
     appropriated by section 201(1) for research, development, 
     test, and evaluation for the Army, as increased by subsection 
     (a), $5,000,000 may be available for the Department of 
     Defense High Energy Laser Test Facility for High Energy Laser 
     Low Aspect Target Tracking (HEL-LATT) test series done 
     jointly with the Navy.
       (2) Construction with other amounts.--The amount available 
     under paragraph (1) for the purpose set forth in that 
     paragraph is in addition to any amounts available under this 
     Act for that purpose.
       (c) Offset.--The amount authorized to be appropriated by 
     section 421 for military personnel is hereby reduced by 
     $5,000,000, due to unexpended obligations, if available.

     SEC. 217. ADVANCED ALUMINUM AEROSTRUCTURES INITIATIVE.

       (a) Additional Amount for Research, Development, Test, and 
     Evaluation, Air Force.--The amount authorized to be 
     appropriated by section 201(3) for research, development, 
     test, and evaluation for the Air Force is hereby increased by 
     $2,000,000.
       (b) Availability of Amount.--Of the amount authorized to be 
     appropriated by section 201(3) for research, development, 
     test, and evaluation for the Air Force, as increased by 
     subsection (a), $2,000,000 may be available for Aerospace 
     Technology Development and Demonstration (PE #603211F) for 
     the Advanced Aluminum Aerostructures Initiative (A3I).
       (c) Offset.--The amount authorized to be appropriated by 
     section 421 for military personnel is hereby decreased by 
     $2,000,000, due to unexpended obligations, if available.

     SEC. 218. LEGGED MOBILITY ROBOTIC RESEARCH.

       (a) Additional Amount for Research, Development, Test, and 
     Evaluation, Army.--The amount authorized to be appropriated 
     by section 201(1) for research, development, test, and 
     evaluation for the Army is hereby increased by $1,000,000.
       (b) Availability of Amount.--Of the amount authorized to be 
     appropriated by section 201(1) for research, development, 
     test, and evaluation for the Army, as increased by subsection 
     (a), $1,000,000 may be available for Combat Vehicle and 
     Automotive Technology (PE #602601A) for legged mobility 
     robotic research for military applications.
       (c) Offset.--The amount authorized to be appropriated by 
     section 421 for military personnel is hereby decreased by 
     $1,000,000, due to unexpended obligations, if available

     SEC. 219. WIDEBAND DIGITAL AIRBORNE ELECTRONIC SENSING ARRAY.

       (a) Additional Amount for Research, Development, Test, and 
     Evaluation, Air Force.--The amount authorized to be 
     appropriated by section 201(3) for research, development, 
     test, and evaluation for the Air Force is hereby increased by 
     $3,000,000.
       (b) Availability of Amount.--Of the amount authorized to be 
     appropriated by section 201(3) for research, development, 
     test, and evaluation for the Air Force, as increased by 
     subsection (a), $3,000,000 may be available for Wideband 
     Digital Airborne Electronic Sensing Array (PE #0602204F).

[[Page 13299]]

       (c) Offset.--The amount authorized to be appropriated by 
     section 421 for military personnel is hereby reduced by 
     $3,000,000, due to unexpended obligations, if available.

     SEC. 220. SCIENCE AND TECHNOLOGY.

       (a) Army Support for University Research Initiatives.--
       (1) Additional amount for research, development, test, and 
     evaluation, army.--The amount authorized to be appropriated 
     by section 201(1) for research, development, test, and 
     evaluation for the Army is hereby increased by $10,000,000.
       (2) Availability of amount.--Of the amount authorized to be 
     appropriated by section 201(1) for research, development, 
     test, and evaluation for the Army, as increased by paragraph 
     (1), $10,000,000 may be available for program element PE 
     0601103A for University Research Initiatives.
       (b) Navy Support for University Research Initiatives.--
       (1) Additional amount for research, development, test, and 
     evaluation, navy.--The amount authorized to be appropriated 
     by section 201(2) for research, development, test, and 
     evaluation for the Navy is hereby increased by $10,000,000.
       (2) Availability of amount.--Of the amount authorized to be 
     appropriated by section 201(2) for research, development, 
     test, and evaluation for the Navy, as increased by paragraph 
     (1), $10,000,000 may be available for program element PE 
     0601103N for University Research Initiatives.
       (c) Air Force Support for University Research 
     Initiatives.--
       (1) Additional amount for research, development, test, and 
     evaluation, air force.--The amount authorized to be 
     appropriated by section 201(3) for research, development, 
     test, and evaluation for the Air Force is hereby increased by 
     $10,000,000.
       (2) Availability of amount.--Of the amount authorized to be 
     appropriated by section 201(3) for research, development, 
     test, and evaluation for the Air Force, as increased by 
     paragraph (1), $10,000,000 may be available for program 
     element PE 0601103F for University Research Initiatives.
       (d) Computer Science and Cybersecurity.--
       (1) Additional amount for research, development, test, and 
     evaluation, defense-wide.--The amount authorized to be 
     appropriated by section 201(4) for research, development, 
     test, and evaluation for Defense-wide activities is hereby 
     increased by $10,000,000.
       (2) Availability of amount.--Of the amount authorized to be 
     appropriated by section 201(4) for research, development, 
     test, and evaluation for Defense-wide activities, as 
     increased by paragraph (1), $10,000,000 may be available for 
     program element PE 0601101E for the Defense Advanced Research 
     Projects Agency University Research Program in Computer 
     Science and Cybersecurity.
       (e) SMART National Defense Education Program.--
       (1) Additional amount for research, development, test, and 
     evaluation, defense-wide.--The amount authorized to be 
     appropriated by section 201(4) for research, development, 
     test, and evaluation for Defense-wide activities is hereby 
     increased by $5,000,000.
       (2) Availability of amount.--Of the amount authorized to be 
     appropriated by section 201(4) for research, development, 
     test, and evaluation for Defense-wide activities, as 
     increased by paragraph (1), $5,000,000 may be available for 
     program element PE 0601120D8Z for the SMART National Defense 
     Education Program.
       (f) Offset.--The amount authorized to be appropriated by 
     section 421 for military personnel is hereby reduced by 
     $45,000,000, due to unexpended obligations, if available.

                  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.

     SEC. 236. TESTING AND OPERATIONS FOR MISSILE DEFENSE.

       (a) Additional Amount for Missile Defense Agency.--Of the 
     amount authorized to be appropriated by section 201(4) for 
     research, development, test, and evaluation for Defense-wide 
     activities, the amount that is available for the Missile 
     Defense Agency is hereby increased by $45,000,000.
       (b) Availability of Amount.--Of the amount authorized to be 
     appropriated by section 201(4) for research, development, 
     test, and evaluation for Defense-wide activities and 
     available for the Missile Defense Agency, as increased by 
     subsection (a), $45,000,000 may be available for Ballistic 
     Missile Defense Midcourse Defense Segment (PE #63882C)--
       (1) to accelerate the ability to conduct concurrent test 
     and missile defense operations; and
       (2) to increase the pace of realistic flight testing of the 
     ground-based midcourse defense system.
       (c) Supplement.--Amounts available under subsection (b) for 
     the program element referred to in that subsection are in 
     addition to any other amounts available in this Act for that 
     program element.

[[Page 13300]]

       (d) Offset.--The amount authorized to be appropriated by 
     section 421 for military personnel is hereby reduced by 
     $45,000,000, due to unexpended obligations.

                       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) Reports on Certain Determinations To Proceed Beyond 
     Low-Rate Initial Production.--Section 2399(b) of title 10, 
     United States Code, is amended--
       (1) by redesignating paragraph (5) as paragraph (6); and
       (2) by inserting after paragraph (4) the following new 
     paragraph (5):
       ``(5) If, before a final decision is made within the 
     Department of Defense to proceed with a major defense 
     acquisition program beyond low-rate initial production, a 
     decision is made within the Department to proceed to 
     operational use of the program or allocate funds available 
     for procurement for the program, the Director shall submit to 
     the Secretary of Defense and the congressional defense 
     committees the report with respect to the program under 
     paragraph (2) as soon as practicable after the decision under 
     this paragraph is made.''.
       (b) Review and Revision of Policies and Practices.--
       (1) Review.--The Under Secretary of Defense for 
     Acquisition, Technology, and Logistics and the Director of 
     Operational Test and Evaluation shall review Department of 
     Defense policies and practices on test and evaluation in 
     order to--
       (A) reaffirm the test and evaluation principles that guide 
     traditional acquisition programs; and
       (B) determine how best to apply such principles to emerging 
     acquisition approaches.
       (2) Revised guidance.--If the Under Secretary determines as 
     a result of the review under paragraph (1) that a revision of 
     the policies and practices referred to in that paragraph is 
     necessary in light of emerging approaches to acquisitions, 
     the Under Secretary and the Director shall jointly issue new 
     or revised guidance for the Department of Defense on test and 
     evaluation to address that determination.
       (c) Issues To Be Addressed.--In carrying out subsection 
     (b), the Under Secretary shall address policies and practices 
     on test and evaluation in order to--
       (1) ensure the performance of test and evaluation 
     activities with regard to--
       (A) items that are acquired pursuant to the authority for 
     rapid acquisition and deployment of items in section 806 of 
     the Bob Stump National Defense Authorization Act for Fiscal 
     Year 2003 (10 U.S.C. 2302 note);
       (B) programs that are conducted pursuant to the authority 
     for spiral development in section 803 of the Bob Stump 
     National Defense Authorization Act for Fiscal Year 2003 
     (Public Law 107-314; 116 Stat. 2603; 10 U.S.C. 2430 note), or 
     other authority for the conduct of incremental acquisition 
     programs;
       (C) systems that are acquired pursuant to 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.
       (d) 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 (b); and
       (2) includes an assessment of the test and evaluation 
     facilities, resources, and budgets that will be required to 
     meet such needs.
       (e) Report to Congress.--Not later than nine months after 
     the date of the enactment of this Act, the Under Secretary 
     shall submit to the congressional defense committees a report 
     on the review conducted under paragraph (1) of subsection 
     (b), including any new or revised guidance issued pursuant to 
     paragraph (2) of that subsection.
       (f) 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, which length of time may be not more than 6 years 
     from milestone B to initial operational capability.

     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.

[[Page 13301]]

       (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.

     SEC. 257. REPORT ON BIOMETRICS PROGRAMS OF THE DEPARTMENT OF 
                   DEFENSE.

       (a) Report.--The Secretary of Defense shall submit to 
     Congress, at the same time as the submittal of the budget of 
     the President for fiscal year 2008 (as submitted under 
     section 1105(a) of title 31, United States Code) a report on 
     the biometrics programs of the Department of Defense.
       (b) Elements.--The report shall address the following:
       (1) Whether the Department should modify the current 
     executive agent management structure for the biometrics 
     programs.
       (2) The requirements for the biometrics programs to meet 
     needs throughout the Department of Defense.
       (3) A description of programs currently fielded to meet 
     requirements in Iraq and Afghanistan.
       (4) An assessment of the adequacy of fielded programs to 
     meet operational requirements.
       (5) An assessment of programmatic or capability gaps in 
     meeting future requirements.
       (6) The actions being taken within the Executive Branch to 
     coordinate and integrate requirements, programs, and 
     resources among the departments and agencies of the Executive 
     Branch with a role in using or developing biometrics 
     capabilities.
       (c) Biometrics Defined.--In this section, the term 
     ``biometrics'' means an identity management program or system 
     that utilizes distinct personal attributes, including DNA, 
     facial features, irises, retinas, signatures, or voices, to 
     identify individuals.

                  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.

[[Page 13302]]



    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 facility designated by the Secretary as 
     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 facility designated by the Secretary as 
     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 facility designated by the Secretary as 
     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).

     SEC. 315. EXPANSION OF JUNIOR RESERVE OFFICERS' TRAINING 
                   CORPS PROGRAM.

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

     SEC. 316. INFANTRY COMBAT EQUIPMENT.

       Of the amount authorized to be appropriated by section 
     301(8) for operation and maintenance for the Marine Corps 
     Reserve, $2,500,000 may be available for Infantry Combat 
     Equipment (ICE).

     SEC. 317. INDIVIDUAL FIRST AID KIT.

       Of the amount authorized to be appropriated by section 
     301(8) for operation and maintenance for the Marine Corps 
     Reserve, $1,500,000 may be available for the Individual First 
     Aid Kit (IFAK).

     SEC. 318. READING FOR THE BLIND AND DYSLEXIC PROGRAM OF THE 
                   DEPARTMENT OF DEFENSE.

       (a) Defense Dependents.--Of the amount authorized to be 
     appropriated by section 301(5) for operation and maintenance 
     for Defense-wide activities, $500,000 may be available for 
     the Reading for the Blind and Dyslexic program of the 
     Department of Defense for defense dependents of elementary 
     and secondary school age in the continental United States and 
     overseas.
       (b) Severely Wounded or Injured Members of the Armed 
     Forces.--Of the amount authorized to be appropriated by 
     section 1405(5) for operation and maintenance for Defense-
     wide activities, $500,000 may be available for the Reading 
     for the Blind and Dyslexic program of the Department of 
     Defense for severely wounded or injured members of the Armed 
     Forces.

     SEC. 319. MILITARY TRAINING INFRASTRUCTURE IMPROVEMENTS AT 
                   VIRGINIA MILITARY INSTITUTE.

       Of the amount authorized to be appropriated by section 
     301(1) for operation and maintenance for the Army, $2,900,000 
     may be available to the Virginia Military Institute for 
     military training infrastructure improvements to provide 
     adequate field training of all Armed Forces Reserve Officer 
     Training Corps.

     SEC. 320. ENVIRONMENTAL DOCUMENTATION FOR BEDDOWN OF F-22A 
                   AIRCRAFT AT HOLLOMAN AIR FORCE BASE, NEW 
                   MEXICO.

       The Secretary of the Air Force shall prepare environmental 
     documentation per the requirements of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) for 
     the beddown of F-22A aircraft at Holloman Air Force Base, New 
     Mexico, as replacements for the retiring F-117A aircraft.

                  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

[[Page 13303]]

     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

[[Page 13304]]

     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.

     SEC. 352. NATIONAL ACADEMY OF SCIENCES STUDY ON HUMAN 
                   EXPOSURE TO CONTAMINATED DRINKING WATER AT CAMP 
                   LEJEUNE, NORTH CAROLINA.

       (a) Study Required.--
       (1) In general.--Not later than 60 days after the date of 
     the enactment of this Act, the Secretary of Navy shall enter 
     into an agreement with the National Academy of Sciences to 
     conduct a comprehensive review and evaluation of the 
     available scientific and medical evidence regarding 
     associations between pre-natal, child, and adult exposure to 
     drinking water contaminated with trichloroethylene (TCE) and 
     tetrachloroethylene (PCE) at Camp Lejeune, North Carolina, as 
     well as other pre-natal, child, and adult exposures to levels 
     of trichloroethylene and tetrachloroethylene similar to those 
     experienced at Camp Lejeune, and birth defects or diseases 
     and any other adverse health effects.
       (2) Elements.--In conducting the review and evaluation, the 
     Academy shall review and summarize the scientific and medical 
     evidence and assess the strength of that evidence in 
     establishing a link or association between exposure to 
     trichloroethylene and tetrachloroethylene and each birth 
     defect or disease suspected to be associated with such 
     exposure. For each birth defect or disease reviewed, the 
     Academy shall determine, to the extent practicable with 
     available scientific and medical data, whether--
       (A) a statistical association with such contaminant 
     exposures exists; and
       (B) there exist plausible biological mechanisms or other 
     evidence of a causal relationship between contaminant 
     exposures and the birth defect or disease.
       (3) Scope of review.--In conducting the review and 
     evaluation, the Academy shall include a review and evaluation 
     of--
       (A) the toxicologic and epidemiologic literature on adverse 
     health effects of trichloroethylene and tetrachloroethylene, 
     including epidemiologic and risk assessment reports from 
     government agencies;
       (B) recent literature reviews by the National Research 
     Council, Institute of Medicine, and other groups;
       (C) the completed and on-going Agency for Toxic Substances 
     Disease Registry (ATSDR) studies on potential 
     trichloroethylene and tetrachloroethylene exposure at Camp 
     Lejeune; and
       (D) published meta-analyses.
       (4) Peer review.--The Academy shall obtain the peer review 
     of the report prepared as a result of the review and 
     evaluation under applicable Academy procedures.
       (5) Submittal.--The Academy shall submit the report 
     prepared as a result of the review and evaluation to the 
     Secretary and Congress not later than 18 months after 
     entering into the agreement for the review and evaluation 
     under paragraph (1).
       (b) Notice on Exposure.--
       (1) Notice required.--Upon completion of the current 
     epidemiological study by the Agency for Toxic Substances 
     Disease Registry, known as the Exposure to Volatile Organic 
     Compounds in Drinking Water and Specific Birth Defects and 
     Childhood Cancers, United States Marine Corps Base Camp 
     Lejeune, North Carolina, the Commandant of the Marine Corps 
     shall take appropriate actions, including the use of national 
     media such as newspapers, television, and the Internet, to 
     notify former Camp Lejeune residents and employees who may 
     have been exposed to drinking water impacted by 
     trichloroethylene and tetrachloroethylene of the results of 
     the study.
       (2) Elements.--The information provided by the Commandant 
     of the Marine Corps under paragraph (1) shall be prepared in 
     conjunction with the Agency for Toxic Substances Disease 
     Registry and shall include a description of sources of 
     additional information relating to such exposure, including, 
     but not be limited to, the following:
       (A) A description of the events resulting in exposure to 
     contaminated drinking water at Camp Lejeune.
       (B) A description of the duration and extent of the 
     contamination of drinking water at Camp Lejeune.
       (C) The known and suspected health effects of exposure to 
     the drinking water impacted

[[Page 13305]]

     by trichloroethylene and tetrachloroethylene at Camp Lejeune.

     SEC. 353. REPORT ON AERIAL TRAINING AIRSPACE REQUIREMENTS OF 
                   THE DEPARTMENT OF DEFENSE.

       (a) Findings.--Congress makes the following findings:
       (1) Access to and use of available and unfettered aerial 
     training airspace is critical for preserving aircrew 
     warfighting proficiency and the ability to test, evaluate, 
     and improve capabilities of both personnel and equipment 
     within the most realistic training environments possible.
       (2) The growth of civilian and commercial aviation traffic 
     and the rapid expansion of commercial and general air traffic 
     lanes across the continental United States has left few 
     remaining areas of the country available for realistic air 
     combat training or expansion of existing training areas.
       (3) Many Military Operating Areas (MOAs) originally 
     established in what was once open and uncongested airspace 
     are now encroached upon by a heavy volume of commercial and 
     general air traffic, making training more difficult and 
     potentially hazardous.
       (4) Some aerial training areas in the upper great plains, 
     western States, and Gulf coast remain largely free from 
     encroachment and available for increased use, expansion, and 
     preservation for the future.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Department of Defense should--
       (1) establish a policy to identify military aerial training 
     areas that are projected to remain viable and free from 
     encroachment well into the 21st century;
       (2) determine aerial training airspace requirements to meet 
     future training and airspace requirements of current and next 
     generation military aircraft; and
       (3) undertake all necessary actions in a timely manner, 
     including coordination with the Federal Aviation 
     Administration, to preserve and, if necessary, expand those 
     areas of airspace to meet present and future training 
     requirements.
       (c) Report.--Not later than 120 days after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to the congressional defense committees a report setting 
     forth a proposed plan to preserve and, if necessary, expand 
     available aerial training airspace to meet the projected 
     needs of the Department of Defense for such airspace through 
     2025.

     SEC. 354. REPORT ON ACTIONS TO REDUCE DEPARTMENT OF DEFENSE 
                   CONSUMPTION OF PETROLEUM-BASED FUEL.

       (a) Report Required.--Not later than one year after the 
     date of the enactment of this Act, the Secretary of Defense 
     shall submit to the Committees on Armed Services of the 
     Senate and the House of Representatives a report on the 
     actions taken, and to be taken, by the Department of Defense 
     to reduce the consumption by the Department of petroleum-
     based fuel.
       (b) Elements.--The report shall include the status of 
     implementation by the Department of the requirements of the 
     following:
       (1) The Energy Policy Act of 2005 (Public Law 109-58).
       (2) The Energy Policy Act of 1992. (Public Law 102-486)
       (3) Executive Order 13123.
       (4) Executive Order 13149.
       (5) Any other law, regulation, or directive relating to the 
     consumption by the Department of petroleum-based fuel.

     SEC. 355. REPORTS ON WITHDRAWAL OR DIVERSION OF EQUIPMENT 
                   FROM RESERVE UNITS FOR SUPPORT OF RESERVE UNITS 
                   BEING MOBILIZED AND OTHER UNITS.

       (a) Findings.--Congress makes the following findings:
       (1) The National Guard continues to provide invaluable 
     resources to meet national security, homeland defense, and 
     civil emergency mission requirements.
       (2) Current military operations, transnational threats, and 
     domestic emergencies will increase the use of the National 
     Guard for both military support to civilian authorities and 
     to execute the military strategy of the United States.
       (3) To meet the demand for certain types of equipment for 
     continuing United States military operations, the Army has 
     required Army National Guard Units to leave behind many items 
     for use by follow-on forces.
       (4) The Governors of every State and 2 Territories 
     expressed concern in February 2006 that units returning from 
     deployment overseas without adequate equipment would have 
     trouble carrying out their homeland security and domestic 
     disaster duties.
       (5) The Department of Defense estimates that it has 
     directed the Army National Guard to leave overseas more than 
     75,000 items valued at approximately $1,760,000,000 to 
     support Operation Enduring Freedom and Operation Iraqi 
     Freedom.
       (6) Department of Defense Directive 1225.6 requires a 
     replacement and tracking plan be developed within 90 days for 
     equipment of the reserve components of the Armed Forces that 
     is transferred to the active components of the Armed Forces.
       (7) In October 2005, the Government Accountability Office 
     found that the Department of Defense can only account for 
     about 45 percent of such equipment and has not developed a 
     plan to replace such equipment.
       (8) The Government Accountability Office also found that 
     without a completed and implemented plan to replace all 
     National Guard equipment left overseas, Army National Guard 
     units will likely face growing equipment shortages and 
     challenges in regaining readiness for future missions.
       (b) Reports on Withdrawal or Diversion of Equipment From 
     Reserve Units for Support of Reserve Units Being Mobilized 
     and Other Units.--
       (1) In general.--Chapter 1007 of title 10, United States 
     Code, is amended by inserting after section 10208 the 
     following new section:

     ``Sec. 10208a. Mobilization: reports on withdrawal or 
       diversion of equipment from Reserve units for support of 
       Reserve units being mobilized and other units

       ``(a) Report Required on Withdrawal or Diversion of 
     Equipment.--Not later than 90 days after withdrawing or 
     diverting equipment from a unit of the Reserve to a unit of 
     the Reserve being ordered to active duty under section 12301, 
     12302, or 12304 of this title, or to a unit or units of a 
     regular component of the armed forces, for purposes of the 
     discharge of the mission of such unit or units, the Secretary 
     concerned shall submit to the Secretary of Defense a status 
     report on the withdrawal or diversion of equipment.
       ``(b) Elements.--Each status report under subsection (a) on 
     equipment withdrawn or diverted shall include the following:
       ``(1) A plan to recapitalize or replace such equipment 
     within the unit from which withdrawn or diverted.
       ``(2) If such equipment is to remain in a theater of 
     operations while the unit from which withdrawn or diverted 
     returns to the United States, a plan to provide such unit 
     with recapitalized or replacement equipment appropriate to 
     ensure the continuation of the readiness training of such 
     unit.
       ``(3) A signed memorandum of understanding between the 
     active or reserve component to which withdrawn or diverted 
     and the reserve component from which withdrawn or diverted 
     that specifies--
       ``(A) how such equipment will be tracked; and
       ``(B) when such equipment will be returned to the component 
     from which withdrawn or diverted.''.
       (2) 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 10208 the 
     following new item:

``10208a. Mobilization: reports on withdrawal or diversion of equipment 
              from Reserve units for support of Reserve units being 
              mobilized and other units.''.

     SEC. 356. PLAN TO REPLACE EQUIPMENT WITHDRAWN OR DIVERTED 
                   FROM THE RESERVE COMPONENTS OF THE ARMED FORCES 
                   FOR OPERATION IRAQI FREEDOM OR OPERATION 
                   ENDURING FREEDOM.

       (a) Plan Required.--Not later than 90 days after the date 
     of the enactment of this Act, the Secretary shall submit to 
     the congressional defense committees a plan to replace 
     equipment withdrawn or diverted from units of the reserve 
     components of the Armed Forces for use in Operation Iraqi 
     Freedom or Operation Enduring Freedom.
       (b) Elements.--The plan required by subsection (a) shall--
       (1) identify the equipment to be recapitalized or acquired 
     to replace the equipment described in subsection (a);
       (2) specify a schedule for recapitalizing or acquiring the 
     equipment identified under paragraph (1), which schedule 
     shall take into account applicable depot workload and 
     acquisition considerations, including production capacity and 
     current production schedules; and
       (3) specify the funding to be required to recapitalize or 
     acquire the equipment identified under paragraph (1).

     SEC. 357. PLAN TO REPLACE EQUIPMENT WITHDRAWN OR DIVERTED 
                   FROM THE RESERVE COMPONENTS OF THE ARMED FORCES 
                   FOR OPERATION IRAQI FREEDOM OR OPERATION 
                   ENDURING FREEDOM.

       (a) Plan Required.--Not later than 90 days after the date 
     of the enactment of this Act, the Secretary shall submit to 
     the congressional defense committees a plan to replace 
     equipment withdrawn or diverted from units of the reserve 
     components of the Armed Forces for use in Operation Iraqi 
     Freedom or Operation Enduring Freedom.
       (b) Elements.--The plan required by subsection (a) shall--
       (1) identify the equipment to be recapitalized or acquired 
     to replace the equipment described in subsection (a);
       (2) specify a schedule for recapitalizing or acquiring the 
     equipment identified under paragraph (1), which schedule 
     shall take into account applicable depot workload and 
     acquisition considerations, including production capacity and 
     current production schedules; and
       (3) specify the funding to be required to recapitalize or 
     acquire the equipment identified under paragraph (1).

[[Page 13306]]



     SEC. 358. REPORT ON VEHICLE-BASED ACTIVE PROTECTION SYSTEMS 
                   FOR CERTAIN BATTLEFIELD THREATS.

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

     SEC. 359. REPORT ON HIGH ALTITUDE AVIATION TRAINING SITE, 
                   EAGLE COUNTY, COLORADO.

       (a) Report Required.--Not later than December 15, 2006, the 
     Secretary of the Army shall submit to the congressional 
     defense committees a report on the High Altitude Aviation 
     Training Site (HAATS) in Eagle County, Colorado.
       (b) Elements.--The report required by subsection (a) shall 
     include the following:
       (1) A description of the type of high altitude aviation 
     training being conducted at the High Altitude Aviation 
     Training Site, including the number of pilots who receive 
     such training on an annual basis and the types of aircraft 
     used in such training.
       (2) A description of the number and type of helicopters 
     required at the High Altitude Aviation Training Site to 
     provide the high altitude aviation training needed to sustain 
     the war strategies contained in the 2006 Quadrennial Defense 
     Review, assuming that priority is afforded in the provision 
     of such training to commanders, instructor pilots, aviation 
     safety officers, and deploying units.
       (3) A thorough evaluation of accident rates for deployed 
     helicopter pilots of the Army who receive high altitude 
     aviation training at the High Altitude Aviation Training 
     Site, and accident rates for deployed Army helicopter pilots 
     who did not receive such training, including the following:
       (A) An estimate (set forth as a range) of the number of 
     accidents attributable to power management.
       (B) The number of accidents occurring in a combat 
     environment.
       (C) The number of accidents occurring in a non-combat 
     environment.
       (4) An evaluation of the inventory and availability of Army 
     aircraft for purposes of establishing an appropriate schedule 
     for the assignment of a CH-47 aircraft to the High Altitude 
     Aviation Training Site, if the Chief of Staff of the Army 
     determines there is value in conducting such training at the 
     HAATS.
       (5) A description of the status of any efforts to ensure 
     that all helicopter aircrews deployed to the area of 
     responsibility of the Central Command (CENTCOM AOR) are 
     qualified in mountain flight and power management prior to 
     deployment, including the locations where such training 
     occurred, with particular focus on the status of such efforts 
     with respect to aircrews to be deployed in support of 
     Operation Enduring Freedom.
       (c) Tracking System.--The Secretary shall implement a 
     system for tracking those pilots that have attended a school 
     with an established program of instruction for high altitude 
     aviation operations training. The system should, if 
     practical, utilize an existing system that permits the query 
     of pilot flight experience and training.

     SEC. 360. REPORT ON AIR FORCE SAFETY REQUIREMENTS FOR AIR 
                   FORCE FLIGHT TRAINING OPERATIONS AT PUEBLO 
                   MEMORIAL AIRPORT, COLORADO.

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

     SEC. 360A. REPORT ON USE OF ALTERNATIVE FUELS BY THE 
                   DEPARTMENT OF DEFENSE.

       (a) Study.--The Secretary of Defense shall conduct a study 
     on the use of alternative fuels by the Armed Forces and the 
     Defense Agencies, including any measures that can be taken to 
     increase the use of such fuels by the Department of Defense 
     and the Defense Agencies.
       (b) Elements.--The study shall address each matter set 
     forth in paragraphs (1) through (7) of section 357(b) of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163; 119 Stat. 3207) with respect to 
     alternative fuels (rather than to the fuels specified in such 
     paragraphs).
       (c) Report.--
       (1) In general.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary shall submit to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives a report on the study conducted under this 
     section.
       (2) Manner of submittal.--The report required by this 
     subsection may be incorporated into, or provided as an annex 
     to, the study required by section 357(c) of the National 
     Defense Authorization Act for Fiscal Year 2006.
       (d) Alternative Fuels Defined.--In this section, the term 
     ``alternative fuels'' means biofuels, biodiesel, renewable 
     diesel, ethanol that contain less than 85 percent ethyl 
     alcohol, and cellulosic ethanol.

                 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:

[[Page 13307]]

       ``(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) Additional Limitation on Payments.--
       (1) Payment conditional on performance.--No payment may be 
     made under an incentives clause under this section unless the 
     Secretary determines that the contractor concerned has 
     satisfactorily performed its duties under such incentives 
     clause.
       (2) Payment contingent on appropriations.--An incentives 
     clause under this section shall specify that the obligation 
     of the Government to make payment under such incentives 
     clause is subject to the availability of appropriations for 
     that purpose. Amounts appropriated for Chemical Agents and 
     Munitions Destruction, Defense, shall be available for 
     payments under incentives clauses under this section.

     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--

[[Page 13308]]

       (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''.

     SEC. 375. ENERGY EFFICIENCY IN WEAPONS PLATFORMS.

       (a) Policy.--It shall be the policy of the Department of 
     Defense to improve the fuel efficiency of weapons platforms, 
     consistent with mission requirements, in order to--
       (1) enhance platform performance;
       (2) reduce the size of the fuel logistics systems;
       (3) reduce the burden high fuel consumption places on 
     agility;
       (4) reduce operating costs; and
       (5) dampen the financial impact of volatile oil prices.
       (b) Report Required.--
       (1) In general.--Not later than one year after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     submit to the congressional defense committees a report on 
     the progress of the Department of Defense in implementing the 
     policy established by subsection (a).
       (2) Elements.--The report shall include the following:
       (A) An assessment of the feasibility of designating a 
     senior Department of Defense official to be responsible for 
     implementing the policy established by subsection (a).
       (B) A summary of the recommendations made as of the time of 
     the report by--
       (i) the Energy Security Integrated Product Team established 
     by the Secretary of Defense in April 2006;
       (ii) the Defense Science Board Task Force on Department of 
     Defense Energy Strategy established by the Under Secretary of 
     Defense for Acquisition, Technology and Logistics on May 2, 
     2006; and
       (iii) the January 2001 Defense Science Board Task Force 
     report on Improving Fuel Efficiency of Weapons Platforms.
       (C) For each recommendation summarized under subparagraph 
     (B)--
       (i) the steps that the Department has taken to implement 
     such recommendation;
       (ii) any additional steps the Department plans to take to 
     implement such recommendation; and
       (iii) for any recommendation that the Department does not 
     plan to implement, the reasons for the decision not to 
     implement such recommendation.
       (D) An assessment of the extent to which the research, 
     development, acquisition, and logistics guidance and 
     directives of the Department for weapons platforms are 
     appropriately designed to address the policy established by 
     subsection (a).
       (E) An assessment of the extent to which such guidance and 
     directives are being carried out in the research, 
     development, acquisition, and logistics programs of the 
     Department.
       (F) A description of any additional actions that, in the 
     view of the Secretary, may be needed to implement the policy 
     established by subsection (a).

     SEC. 376. CHEMICAL DEMILITARIZATION PROGRAM CONTRACTING 
                   AUTHORITY.

       (a) Multiyear Contracting Authority.--The Secretary of 
     Defense may carry out responsibilities under section 1412(a) 
     of the Department of Defense Authorization Act, 1986 (Public 
     Law 99-145; 50 U.S.C. 1521(a)) through multiyear contracts 
     entered into before the date of the enactment of this Act.
       (b) Availability of Funds.--Contracts entered into under 
     subsection (a) shall be funded through annual appropriations 
     for the destruction of chemical agents and munitions.

     SEC. 377. UTILIZATION OF FUEL CELLS AS BACK-UP POWER SYSTEMS 
                   IN DEPARTMENT OF DEFENSE OPERATIONS.

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

     SEC. 378. PREPOSITIONING OF DEPARTMENT OF DEFENSE ASSETS TO 
                   IMPROVE SUPPORT TO CIVILIAN AUTHORITIES.

       (a) Prepositioning Authorized.--The Secretary of Defense 
     may provide for the prepositioning of prepackaged or 
     preidentified basic response assets, such as medical 
     supplies, food and water, and communications equipment, in 
     order to improve Department of Defense support to civilian 
     authorities.
       (b) Reimbursement.--To the extent required by section 1535 
     of title 31, United States Code (popularly known as the 
     ``Economy Act''), or other applicable law, the Secretary 
     shall require reimbursement of the Department of Defense for 
     costs incurred in the prepositioning of basic response assets 
     under subsection (a).
       (c) Limitation.--Basic response assets may not be 
     prepositioned under subsection (a) if the prepositioning of 
     such assets will adversely affect the military preparedness 
     of the United States.
       (d) Procedures and Guidelines.--The Secretary may develop 
     procedures and guidelines applicable to the prepositioning of 
     basic response assets under this section.

     SEC. 379. RECOVERY AND AVAILABILITY TO CORPORATION FOR THE 
                   PROMOTION OF RIFLE PRACTICE AND FIREARMS SAFETY 
                   OF CERTAIN FIREARMS, AMMUNITION, AND PARTS.

       (a) In General.--Subchapter II of chapter 407 of title 36, 
     United States Code, is amended by inserting after the item 
     relating to section 40728 the following new section:

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

       ``(a) Recovery.--The Secretary of the Army may recover from 
     any country to which a grant of rifles, ammunition, repair 
     parts, or other supplies described in section 40731(a) of 
     this title is made under section 505 of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2314) any such rifles, 
     ammunition, repair parts, or supplies that are excess to the 
     needs of such country.
       ``(b) Cost of Recovery.--(1) Except as provided in 
     paragraph (2), the cost of recovery of any rifles, 
     ammunition, repair parts, or supplies under subsection (a) 
     shall be treated as incremental direct costs incurred in 
     providing logistical support to the corporation for which 
     reimbursement shall be required as provided in section 
     40727(a) of this title.
       ``(2) The Secretary may require the corporation to pay 
     costs of recovery described in paragraph (1) in advance of 
     incurring such costs. Amounts so paid shall not be subject to 
     the provisions of section 3302 of title 31, but shall be 
     administered in accordance with the last sentence of section 
     40727(a) of this title.
       ``(c) Availability.--Any rifles, ammunition, repair parts, 
     or supplies recovered under subsection (a) shall be available 
     for transfer to the corporation in accordance with the 
     provisions of section 40728 of this title under such 
     additional terms and conditions as the Secretary shall 
     prescribe for purposes of this section.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 407 of such title is amended by 
     inserting after the item relating to section 40728 the 
     following new item:

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

              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.

[[Page 13309]]

       (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.

[[Page 13310]]

       ``(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:

[[Page 13311]]

       ``(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 States 
     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.''.

     SEC. 509. MODIFICATION OF QUALIFICATIONS FOR LEADERSHIP OF 
                   THE NAVAL POSTGRADUATE SCHOOL.

       Section 7042(a) of title 10, United States Code, is 
     amended--
       (1) in paragraph (1)(A)--
       (A) by inserting ``active-duty or retired'' after ``An'';
       (B) by inserting ``or Marine Corps'' after ``Navy'';
       (C) by inserting ``or colonel, respectively'' after 
     ``captain''; and
       (D) by inserting ``or assigned'' after ``detailed'';
       (2) in paragraph (2), by inserting ``and the Commandant of 
     the Marine Corps'' after ``Operations''; and
       (3) in paragraph (4)(A)--
       (A) by inserting ``(unless such individual is a retired 
     officer of the Navy or Marine Corps in a grade not below the 
     grade of captain or colonel, respectively)'' after ``in the 
     case of a civilian'';
       (B) by inserting ``active-duty or retired'' after ``in the 
     case of an''; and
       (C) by inserting ``or Marine Corps'' after ``Navy''.

                   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)--

[[Page 13312]]

       (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

[[Page 13313]]

     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.

     SEC. 521. REPORT ON JOINT OFFICER PROMOTION BOARDS.

       (a) Report Required.--Not later than June 1, 2007, the 
     Secretary of Defense shall submit to the Committee on Armed 
     Services of the Senate and House of Representatives a report 
     on the desirability and feasibility of conducting joint 
     officer promotion selection boards.
       (b) Elements.--The report under subsection (a) shall 
     include--
       (1) a discussion of the limitations in existing officer 
     career paths and promotion procedures that might warrant the 
     conduct of joint officer promotion selection boards;
       (2) an identification of the requirements for officers for 
     which joint officer promotion selection boards would be 
     advantageous;
       (3) recommendations on methods to demonstrate how joint 
     officer promotion selection boards might be structured, and 
     an evaluation of the feasibility of such methods; and
       (4) any proposals for legislative action that the Secretary 
     considers appropriate.

            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

[[Page 13314]]

     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).

     SEC. 530. CONDITION ON APPOINTMENT OF COMMISSIONED OFFICERS 
                   TO POSITION OF DIRECTOR OF NATIONAL 
                   INTELLIGENCE OR DIRECTOR OF THE CENTRAL 
                   INTELLIGENCE AGENCY.

       (a) Condition.--
       (1) In general.--Chapter 32 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 529. Condition on appointment to certain positions: 
       Director of National Intelligence; Director of the Central 
       Intelligence Agency

       ``As a condition of appointment to the position of Director 
     of National Intelligence or Director of the Central 
     Intelligence Agency, an officer shall acknowledge that upon 
     termination of service in such position the officer shall be 
     retired in accordance with section 1253 of this title.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 32 of such title is amended by adding at 
     the end the following new item:

``529. Condition on appointment to certain positions: Director of 
              National Intelligence; Director of the Central 
              Intelligence Agency.''.

       (b) Retirement.--
       (1) In general.--Chapter 63 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1253. Mandatory retirement: Director of National 
       Intelligence; Director of the Central Intelligence Agency

       ``Upon termination of the appointment of an officer to the 
     position of Director of National Intelligence or Director of 
     the Central Intelligence Agency, the Secretary of the 
     military department concerned shall retire the officer under 
     any provision of this title under which the officer is 
     eligible to retire.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 63 of such title is amended by adding at 
     the end the following new item:

``1253. Mandatory retirement: Director of National Intelligence; 
              Director of the Central Intelligence Agency.''.

       (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 appointments of commissioned 
     officers of the Armed Forces to the position of Director of 
     National Intelligence or Director of the Central Intelligence 
     Agency on or after that date.

            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

[[Page 13315]]

       (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 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

[[Page 13316]]

     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.

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

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

               Subtitle 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).

[[Page 13317]]

       ``(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

[[Page 13318]]

       (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.

     SEC. 569. REVIEW OF LEGAL STATUS OF JUNIOR ROTC PROGRAM.

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

     SEC. 570. JUNIOR RESERVE OFFICERS' TRAINING CORPS INSTRUCTOR 
                   QUALIFICATIONS.

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

     ``Sec. 2033. Instructor qualifications

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

[[Page 13319]]

     experience, proficiency, and expertise in coaching, 
     mentoring, and practical arts in executing the program, and 
     shall have the following qualifications:
       ``(A) Professional military qualification, as determined by 
     the Secretary of the military department concerned.
       ``(B) Award of an associates degree from an institution of 
     higher learning within 5 years of employment.
       ``(C) Completion of secondary education teaching 
     certification requirements for the program as established by 
     the Secretary of the military department concerned.
       ``(D) Award of an advanced certification by the Secretary 
     of the military department concerned in core content areas 
     based on--
       ``(i) accumulated points for professional activities, 
     services to the profession, awards, and recognitions;
       ``(ii) professional development to meet content knowledge 
     and instructional skills; and
       ``(iii) performance evaluation of competencies and 
     standards within the program through site visits and 
     inspections.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2033. Instructor qualifications.''.

     SEC. 570A. MODIFICATION OF TIME LIMIT FOR USE OF ENTITLEMENT 
                   TO EDUCATIONAL ASSISTANCE FOR RESERVE COMPONENT 
                   MEMBERS SUPPORTING CONTINGENCY OPERATIONS AND 
                   OTHER OPERATIONS.

       (a) Modification.--Section 16164(a) of title 10, United 
     States Code, is amended by striking ``this chapter while 
     serving--'' and all that follows and inserting ``this 
     chapter--
       ``(1) while the member is serving--
       ``(A) in the Selected Reserve of the Ready Reserve, in the 
     case of a member called or ordered to active service while 
     serving in the Selected Reserve; or
       ``(B) in the Ready Reserve, in the case of a member ordered 
     to active duty while serving in the Ready Reserve (other than 
     the Selected Reserve); and
       ``(2) in the case of a person who separates from the 
     Selected Reserve of the Ready Reserve after completion of a 
     period of active service described in section 16163 of this 
     title and completion of a service contract under other than 
     dishonorable conditions, during the 10-year period beginning 
     on the date on which the person separates from the Selected 
     Reserve.''.
       (b) Conforming Amendment.--Paragraph (2) of section 
     16165(a) of such title is amended to read as follows:
       ``(2) when the member separates from the Ready Reserve as 
     provided in section 16164(a)(1) of this title, or upon 
     completion of the period provided for in section 16164(a)(2) 
     of this title, as applicable.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 28, 2004, as if included in the 
     enactment of the Ronald W. Reagan National Defense 
     Authorization Act for Fiscal Year 2005 (Public Law 108-375), 
     to which such amendments relate.

            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).
       (c) Transition of Military Dependents From Military to 
     Civilian Schools.--
       (1) In general.--The Secretary of Defense shall work 
     collaboratively with the Secretary of Education in any 
     efforts to ease the transition of dependents of members of 
     the Armed Forces from attendance in Department of Defense 
     dependent schools to civilian schools in systems operated by 
     local educational agencies.
       (2) Utilization of existing resources.--In working with the 
     Secretary of Education under paragraph (1), the Secretary of 
     Defense may utilize funds authorized to be appropriated for 
     operation and maintenance for Defense-wide activities to 
     share expertise and experience of the Department of Defense 
     Education Activity with local educational agencies as 
     dependents of members of the Armed Forces make the transition 
     from attendance at Department of Defense dependent schools to 
     attendance at civilian schools in systems operated by such 
     local educational agencies, including such transitions 
     resulting from defense base closure and realignment, global 
     rebasing, and force restructuring.
       (3) Definitions.--In this subsection:
       (A) The term ``expertise and experience'', with respect to 
     the Department of Defense Education Activity, means resources 
     of such activity relating to--
       (i) academic strategies which result in increased academic 
     achievement;
       (ii) curriculum development consultation and materials;
       (iii) teacher training resources and materials;
       (iv) access to virtual and distance learning technology 
     capabilities and related applications for teachers; and
       (v) such other services as the Secretary of Defense 
     considers appropriate to improve the academic achievement of 
     such students.
       (B) 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)).
       (4) Expiration.--The authority of the Secretary of the 
     Defense under this subsection shall expire on September 30, 
     2011.

     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--

[[Page 13320]]

       (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).
       (c) Use of Electronic Voting Technology.--
       (1) Continuation of interim voting assistance system.--The 
     Secretary of Defense shall continue the Interim Voting 
     Assistance System (IVAS) ballot request program with respect 
     to all absent uniformed services voters (as defined under 
     section 107(1) of the Uniformed Overseas Citizens Absentee 
     Voting Act (42 U.S.C. 1973ff-6(1))), overseas employees of 
     the Department of Defense, and the dependents of such voters 
     and employees, for the general election and all elections 
     through December 31, 2006.
       (2) Reports.--
       (A) In general.--Not later than 30 days after the date of 
     the regularly scheduled general election for Federal office 
     for November 2006, the Secretary of Defense shall submit to 
     the congressional defense committees a report setting forth--
       (i) an assessment of the success of the implementation of 
     the Interim Voting Assistance System ballot request program 
     carried out under paragraph (1);
       (ii) recommendations for continuation of the Interim Voting 
     Assistance System and for improvements to that system; and
       (iii) an assessment of available technologies and other 
     means of achieving enhanced use of electronic and Internet-
     based capabilities under the Interim Voting Assistance 
     System.
       (B) Future elections.--Not later than May 15, 2007, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report detailing plans for expanding the 
     use of electronic voting technology for individuals covered 
     under the Uniformed Overseas Citizens Absentee Voting Act (42 
     U.S.C. 1973ff et seq.) for elections through November 30, 
     2010.

     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

[[Page 13321]]

     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).

     SEC. 587. SENSE OF SENATE ON NOTICE TO CONGRESS OF 
                   RECOGNITION OF MEMBERS OF THE ARMED FORCES FOR 
                   EXTRAORDINARY ACTS OF BRAVERY, HEROISM, AND 
                   ACHIEVEMENT.

       It is the sense of the Senate that the Secretary of Defense 
     or the Secretary of the military department concerned should, 
     upon awarding a medal to a member of the Armed Forces or 
     otherwise commending or recognizing a member of the Armed 
     Forces for an act of extraordinary heroism, bravery, 
     achievement, or other distinction, notify the Committee on 
     Armed Services of the Senate and House of Representatives, 
     the Senators from the State in which such member resides, and 
     the Member of the House of Representatives from the district 
     in which such member resides of such extraordinary award, 
     commendation, or recognition.

     SEC. 588. REPORT ON PROVISION OF ELECTRONIC COPY OF MILITARY 
                   RECORDS ON DISCHARGE OR RELEASE OF MEMBERS FROM 
                   THE ARMED FORCES.

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

     SEC. 589. PURPLE HEART AWARD ELIGIBILITY.

       (a) Findings.--Congress makes the following findings:
       (1) The Purple Heart is the oldest military decoration in 
     the world in present use.
       (2) The Purple Heart was established on August 7, 1782, 
     during the Revolutionary War, when General George Washington 
     issued an order establishing the Honorary Badge of 
     Distinction, otherwise known as the Badge of Military Merit.
       (3) The award of the Purple Heart ceased with the end of 
     the Revolutionary War, but was revived in 1932, the 200th 
     anniversary of George Washington's birth, out of respect for 
     his memory and military achievements by War Department 
     General Orders No. 3, dated February 22, 1932.
       (4) The criteria for the award was originally announced in 
     War Department Circular dated February 22, 1932, and revised 
     by Presidential Executive Order 9277, dated December 3, 1942; 
     Executive Order 10409, dated February 12, 1952; Executive 
     Order 11016, dated April 25, 1962; and Executive Order 12464, 
     dated February 23, 1984.
       (5) The Purple Heart is awarded in the name of the 
     President of the United States as Commander in Chief to 
     members of the Armed Forces who qualify under criteria set 
     forth by Presidential Executive Order.
       (b) Determination.--As part of the review and report 
     required in subsection (d), the President shall make a 
     determination on expanding eligibility to all deceased 
     servicemembers held as a prisoner of war after December 7, 
     1941, and who meet the criteria establishing eligibility for 
     the prisoner-of-war medal under section 1128 of title 10, but 
     who do not meet the criteria establishing eligibility for the 
     Purple Heart.
       (c) Requirements.--In making the determination described in 
     subsection (b), the President shall take into consideration--
       (1) the brutal treatment endured by thousands of POWs 
     incarcerated by enemy forces;
       (2) that many service members died due to starvation, 
     abuse, the deliberate withholding of medical treatment for 
     injury or disease, or other causes which do not currently 
     meet the criteria for award of the Purple Heart;
       (3) the views of veteran organizations, including the 
     Military Order of the Purple Heart;
       (4) the importance and gravity that has been assigned to 
     determining all available facts prior to a decision to award 
     the Purple Heart; and
       (5) the views of the Secretary of Defense and the Joint 
     Chiefs of Staff.
       (d) Report.--Not later than March 1, 2007, the President 
     shall provide the Committees on Armed Services of the Senate 
     and House of Representatives a report on the advisability of 
     modifying the criteria for the award of the Purple Heart to 
     authorize the award of the Purple Heart to military members 
     who die in captivity under unknown circumstances or as a 
     result of conditions and treatment which currently do not 
     qualify the decedent for award of the Purple Heart; and for 
     military members who survive captivity as prisoners of war, 
     but die thereafter as a result of disease or disability 
     incurred during captivity.

     SEC. 590. COMPREHENSIVE REVIEW ON PROCEDURES OF THE 
                   DEPARTMENT OF DEFENSE ON MORTUARY AFFAIRS.

       (a) Report.--As soon as practicable after the completion of 
     the comprehensive review

[[Page 13322]]

     of the procedures of the Department of Defense on mortuary 
     affairs, the Secretary of Defense shall submit to the 
     congressional defense committees a report on the review.
       (b) Additional Elements.--In conducting the comprehensive 
     review described in subsection (a), the Secretary shall also 
     address, in addition to any other matters covered by the 
     review, the following:
       (1) The utilization of additional or increased 
     refrigeration (including icing) in combat theaters in order 
     to enhance preservation of remains.
       (2) The relocation of refrigeration assets further forward 
     in the field.
       (3) Specific time standards for the movement of remains 
     from combat units.
       (4) The forward location of autopsy and embalming 
     operations.
       (5) Any other matters that the Secretary considers 
     appropriate in order to speed the return of remains to the 
     United States in a non-decomposed state.
       (c) Additional Element of Policy on Casualty Assistance to 
     Survivors of Military Decedents.--Section 562(b) of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163; 119 Stat. 3267; 10 U.S.C. 1475 note) is 
     amended by adding at the end the following new paragraph:
       ``(12) The process by which the Department of Defense, upon 
     request, briefs survivors of military decedents on the cause 
     of, and any investigation into, the death of such military 
     decedents and on the disposition and transportation of the 
     remains of such decedents, which process shall--
       ``(A) provide for the provision of such briefings by fully 
     qualified Department personnel;
       ``(B) ensure briefings take place as soon as possible after 
     death and updates are provided in a timely manner when new 
     information becomes available;
       ``(C) ensure that--
       ``(i) such briefings and updates relate the most complete 
     and accurate information available at the time of such 
     briefings or updates, as the case may be; and
       ``(ii) incomplete or unverified information is identified 
     as such during the course of such briefings or updates; and
       ``(D) include procedures by which such survivors shall, 
     upon request, receive updates or supplemental information on 
     such briefings or updates from qualified Department 
     personnel.''.

     SEC. 591. REPORT ON OMISSION OF SOCIAL SECURITY NUMBERS ON 
                   MILITARY IDENTIFICATION CARDS.

       (a) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to Congress a report setting forth the assessment of the 
     Secretary of the feasibility of utilizing military 
     identification cards that do not contain, display or exhibit 
     the Social Security Number of the individual identified by 
     such military identification card.
       (b) Military Identification Card Defined.--In this section, 
     the term ``military identification card'' has the meaning 
     given the term ``military ID card'' in section 1060b(b)(1) of 
     title 10, United States Code.

     SEC. 592. FUNERAL CEREMONIES FOR VETERANS.

       (a) Support for Ceremonies by Details Consisting Solely of 
     Members of Veterans and Other Organizations.--
       (1) Support of ceremonies.--Section 1491 of title 10, 
     United States Code, is amended--
       (A) by redesignating subsections (e), (f), (g), and (h) as 
     subsections (f), (g), (h), and (i), respectively; and
       (B) by inserting after subsection (d) the following new 
     subsection (e):
       ``(e) Support for Funeral Honors Details Composed of 
     Members of Veterans Organizations.--(1) Subject to such 
     regulations and procedures as the Secretary of Defense may 
     prescribe, the Secretary of the military department of which 
     a veteran was a member may support the conduct of funeral 
     honors for such veteran that are provided solely by members 
     of veterans organizations or other organizations referred to 
     in subsection (b)(2).
       ``(2) The provision of support under this subsection is 
     subject to the availability of appropriations for that 
     purpose.
       ``(3) The support provided under this subsection may 
     include the following:
       ``(A) Reimbursement for costs incurred by organizations 
     referred to in paragraph (1) in providing funeral honors, 
     including costs of transportation, meals, and similar costs.
       ``(B) Payment to members of such organizations providing 
     such funeral honors of the daily stipend prescribed under 
     subsection (d)(2).''.
       (2) Conforming amendments.--Such section is further 
     amended--
       (A) in subsection (d)(2), by inserting ``and subsection 
     (e)'' after ``paragraph (1)(A)''; and
       (B) in paragraph (1) of section (f), as redesignated by 
     subsection (a)(1) of this section, by inserting ``(other than 
     a requirement in subsection (e)'' after ``pursuant to this 
     section''.
       (b) Use of Excess M-1 Rifles for Ceremonial and Other 
     Purposes.--Section 4683 of such title is amended--
       (1) in subsection (a), by adding at the end the following 
     new paragraph:
       ``(3) Rifles loaned or donated under paragraph (1) may be 
     used by an eligible designee for funeral ceremonies of a 
     member or former member of the armed forces and for other 
     ceremonial purposes.'';
       (2) in subsection (c), by inserting after 
     ``accountability'' the following: ``, provided that such 
     conditions do not unduly hamper eligible designees from 
     participating in funeral ceremonies of a member or former 
     member of the armed forces or other ceremonies'';
       (3) in subsection (d)--
       (A) in paragraph (2), by striking ``; or'' and inserting 
     ``or fire department;'';
       (B) in paragraph (3), by striking the period at the end and 
     inserting ``; or''; and
       (C) by adding at the end the following new paragraph:
       ``(4) any other member in good standing of an organization 
     described in paragraphs (1), (2), or (3).''; and
       (4) by adding at the end the following new subsection:
       ``(e) Eligible Designee Defined.--In this section, the term 
     `eligible designee' means a designee of an eligible 
     organization who--
       ``(1) is a spouse, son, daughter, nephew, niece, or other 
     family relation of a member or former member of the armed 
     forces;
       ``(2) is at least 18 years of age; and
       ``(3) has successfully completed a formal firearm training 
     program or a hunting safety program.''.

          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

[[Page 13323]]

 
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  11,598.30  11,598.30   11,598.30
O-7.............  10,236.00  10,236.00  10,236.00  10,236.00   10,287.90
O-6.............   7,802.10   8,180.10   8,395.20   8,613.00    9,035.70
O-5.............   6,968.10   7,158.00   7,373.10   7,373.10    7,373.10
O-4.............   6,252.30   6,252.30   6,252.30   6,252.30    6,252.30
O-3\3\..........   5,355.90   5,355.90   5,355.90   5,355.90    5,355.90
O-2\3\..........   3,936.60   3,936.60   3,936.60   3,936.60    3,936.60
O-1\3\..........   3,106.50   3,106.50   3,106.50   3,106.50    3,106.50
                 -------------------------------------------------------
                   Over 28    Over 30    Over 32    Over 34     Over 36
                 -------------------------------------------------------
O-10\2\.........  $14,508.6  $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
                 -------------------------------------------------------

[[Page 13324]]

 
                   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

[[Page 13325]]

 
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.

[[Page 13326]]

       ``(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

[[Page 13327]]

     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) Relaxation of Limitation on Selective Early 
     Retirement.--Section 638(a)(2) of title 10, United States 
     Code, is amended by adding at the end the following new 
     sentence: ``However, during the period beginning on October 
     1, 2006, and ending on December 31, 2012, such number may be 
     more than 30 percent of the number of officers considered in 
     each competitive category, but may not be more than 30 
     percent of the number of officers considered in each 
     grade.''.
       (c) Enhanced Authority for Selective Early Retirement and 
     Early Discharges.--
       (1) Renewal of authority.--Subsection (a) of section 638a 
     of title 10, United States Code, is amended by inserting 
     ``and during the period beginning on October 1, 2006, and 
     ending on December 31, 2012,'' after ``December 31, 2001,''.
       (2) Relaxation of limitation on selective early 
     retirement.--Subsection (c)(1) of such section is amended by 
     adding at the end the following new sentence: ``However, 
     during the period beginning on October 1, 2006, and ending on 
     December 31, 2012, such number may be more than 30 percent of 
     the number of officers considered in each competitive 
     category, but may not be more than 30 percent of the number 
     of officers considered in each grade.''.
       (3) Relaxation of limitation on selective early 
     discharge.--Subsection (d)(2) of such section is amended--
       (A) in subparagraph (A), by inserting before the semicolon 
     the following: ``, except that during the period beginning on 
     October 1, 2006, and ending on December 31, 2012, such number 
     may be more than 30 percent of the officers considered in 
     each competitive category, but may not be more than 30 
     percent of the number of officers considered in each grade''; 
     and
       (B) in subparagraph (B), by inserting before the period the 
     following: ``, except that during the period beginning on 
     October 1, 2006, and ending on December 31, 2012, such number 
     may be more than 30 percent of the officers considered in 
     each competitive category, but may not be more than 30 
     percent of the number of officers considered in each grade''.
       (d) 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''.

     SEC. 620. ACCESSION BONUS FOR MEMBERS OF THE ARMED FORCES 
                   APPOINTED AS COMMISSIONED OFFICERS AFTER 
                   COMPLETING OFFICER CANDIDATE SCHOOL.

       (a) Accession Bonus Authorized.--
       (1) In general.--Chapter 5 of title 37, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 329. Special pay: accession bonus for officer 
       candidates

       ``(a) Accession Bonus Authorized.--Under regulations 
     prescribed by the Secretary concerned, a person who, during 
     the period beginning on October 1, 2006, and ending on 
     December 31, 2007, executes a written agreement described in 
     subsection (b) may, upon acceptance of the agreement by the 
     Secretary concerned, be paid an accession bonus in an amount 
     not to exceed $8,000 determined by the Secretary concerned.
       ``(b) Agreement.--A written agreement described in this 
     subsection is a written agreement by a person--
       ``(1) to complete officer candidate school;
       ``(2) to accept a commission or appointment as an officer 
     of the armed forces; and
       ``(3) to serve on active duty as a commissioned officer for 
     a period specified in such agreement.
       ``(c) Payment Method.--Upon acceptance of a written 
     agreement under subsection (a) by the Secretary concerned, 
     the total amount of the accession bonus payable under the 
     agreement becomes fixed. The agreement shall specify whether 
     the accession bonus will be paid in a lump sum or 
     installments.
       ``(d) Repayment.--A person who, having received all or part 
     of the bonus under a written agreement under subsection (a), 
     does not complete the total period of active duty as a 
     commissioned officer as specified in such agreement shall be 
     subject to the repayment provisions of section 303a(e) of 
     this title.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 5 of such title is amended by adding at 
     the end the following new item:

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

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

[[Page 13328]]



     SEC. 621. ENHANCEMENT OF BONUS TO ENCOURAGE MEMBERS OF THE 
                   ARMY TO REFER OTHER PERSONS FOR ENLISTMENT IN 
                   THE ARMY.

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

            Subtitle C--Travel and Transportation Allowances

     SEC. 631. 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)--

[[Page 13329]]

       (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.--
       (1) In general.--Subchapter II of chapter 73 of title 10, 
     United States Code, is amended as follows:
       (A) In section 1450, by striking subsection (c).
       (B) In section 1451(c)--
       (i) by striking paragraph (2); and
       (ii) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively.
       (2) Conforming amendments.--Such subchapter is further 
     amended as follows:
       (A) In section 1450--
       (i) by striking subsection (e); and
       (ii) by striking subsection (k).
       (B) In section 1451(g)(1), by striking subparagraph (C).
       (C) In section 1452--
       (i) in subsection (f)(2), by striking ``does not apply--'' 
     and all that follows and inserting ``does not apply in the 
     case of a deduction made through administrative error.''; and
       (ii) by striking subsection (g).
       (D) In section 1455(c), by striking ``, 1450(k)(2),''.
       (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 (as in 
     effect on the day before the effective date provided under 
     subsection (e)), 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.''.

     SEC. 648. RENAMING OF DEATH GRATUITY PAYABLE FOR DEATHS OF 
                   MEMBERS OF THE ARMED FORCES AS FALLEN HERO 
                   COMPENSATION.

       (a) In General.--Subchapter II of chapter 75 of title 10, 
     United States Code, is amended as follows:
       (1) In section 1475(a), by striking ``have a death gratuity 
     paid'' and inserting ``have fallen hero compensation paid''.

[[Page 13330]]

       (2) In section 1476(a)--
       (A) in paragraph (1), by striking ``a death gratuity'' and 
     inserting ``fallen hero compensation''; and
       (B) in paragraph (2), by striking ``A death gratuity'' and 
     inserting ``Fallen hero compensation''.
       (3) In section 1477(a), by striking ``A death gratuity'' 
     and inserting ``Fallen hero compensation''.
       (4) In section 1478(a), by striking ``The death gratuity'' 
     and inserting ``The amount of fallen hero compensation''.
       (5) In section 1479(1), by striking ``the death gratuity'' 
     and inserting ``fallen hero compensation''.
       (6) In section 1489--
       (A) in subsection (a), by striking ``a gratuity'' in the 
     matter preceding paragraph (1) and inserting ``fallen hero 
     compensation''; and
       (B) in subsection (b)(2), by inserting ``or other 
     assistance'' after ``lesser death gratuity''.
       (b) Clerical Amendments.--
       (1) Heading amendments.--Such subchapter is further amended 
     by striking ``Death Gratuity:'' each place it appears in the 
     heading of sections 1475 through 1480 and 1489 and inserting 
     ``Fallen Hero Compensation:''.
       (2) Table of sections.--The table of sections at the 
     beginning of such subchapter is amended by striking ``Death 
     gratuity:'' in the items relating to sections 1474 through 
     1480 and 1489 and inserting ``Fallen hero compensation:''.
       (c) General References.--Any reference to a death gratuity 
     payable under subchapter II of chapter 75 of title 10, United 
     States Code, in any law, regulation, document, paper, or 
     other record of the United States shall be deemed to be a 
     reference to fallen hero compensation payable under such 
     subchapter, as amended by this section.

     SEC. 649. EFFECTIVE DATE OF TERMINATION OF PHASE-IN OF 
                   CONCURRENT RECEIPT FOR VETERANS WITH SERVICE-
                   CONNECTED DISABILITIES RATED AS TOTAL BY VIRTUE 
                   OF UNEMPLOYABILITY.

       (a) In General.--Section 1414(a)(1) of title 10, United 
     States Code, is amended by striking ``100 percent'' the first 
     place it appears and all that follows and inserting ``100 
     percent and in the case of a qualified retiree receiving 
     veterans' disability compensation at the rate payable for a 
     100 percent disability by reason of a determination of 
     individual unemployability, payment of retired pay to such 
     veteran is subject to subsection (c) only during the period 
     beginning on January 1, 2004, and ending on December 31, 
     2004.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on December 31, 2004.

     SEC. 650. DETERMINATION OF RETIRED PAY BASE OF GENERAL AND 
                   FLAG OFFICERS BASED ON RATES OF BASIC PAY 
                   PROVIDED BY LAW.

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

     ``Sec. 1407a. Retired pay base: members who were general or 
       flag officers

       ``Notwithstanding any other provision of law, if the 
     determination of the retired pay base or retainer pay base 
     under section 1406 or 1407 of this title with respect to a 
     person who was a commissioned officer in pay grades O-7 
     through O-10 involves a rate or rates of basic pay that were 
     subject to a reduction under section 203(a)(2) of title 37, 
     such determination shall be made utilizing such rate or rates 
     of basic pay in effect as provided by law rather than such 
     rate or rates as so reduced under section 203(a)(2) of title 
     37.''.
       (2) Clerical amendment.--The table of sections for chapter 
     71 of such title is amended by inserting after the item 
     relating to section 1407 the following new item:

``1407a. Retired pay base: members who were general or flag 
              officers.''.

       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on October 1, 2006, and shall apply with 
     respect to the computation of retired pay for members of the 
     Armed Forces who retire on or after that date.

     SEC. 651. INAPPLICABILITY OF RETIRED PAY MULTIPLIER MAXIMUM 
                   PERCENTAGE TO SERVICE OF MEMBERS OF THE ARMED 
                   FORCES IN EXCESS OF 30 YEARS.

       (a) In General.--Paragraph (3) of section 1409(b) of title 
     10, United States Code, is amended to read as follows:
       ``(3) 30 years of service.--
       ``(A) Retirement before january 1, 2007.--In the case of a 
     member who retires before January 1, 2007, with more than 30 
     years of creditable service, the percentage to be used under 
     subsection (a) is 75 percent.
       ``(B) Retirement after december 31, 2006.--In the case of a 
     member who retires after December 31, 2006, with more than 30 
     years of creditable service, the percentage to be used under 
     subsection (a) is the sum of--
       ``(i) 75 percent; and
       ``(ii) the product (stated as a percentage) of--

       ``(I) 2\1/2\; and
       ``(II) the member's years of creditable service (as defined 
     in subsection (c)) in excess of 30 years of creditable 
     service in any service, regardless of when served, under 
     conditions authorized for purposes of this subparagraph 
     during a period designated by the Secretary of Defense for 
     purposes of this subparagraph.''.

       (b) Retired Pay for Non-Regular Service.--Section 12739(c) 
     of such title is amended--
       (1) by striking ``The total amount'' and inserting ``(1) 
     Except as provided in paragraph (2), the total amount''; and
       (2) by adding at the end the following new paragraph:
       ``(2) In the case of a person who retires after December 
     31, 2006, with more than 30 years of service credited to that 
     person under section 12733 of this title, the total amount of 
     the monthly retired pay computed under subsections (a) and 
     (b) may not exceed the sum of--
       ``(A) 75 percent of the retired pay base upon which the 
     computation is based; and
       ``(B) the product of--
       ``(i) the retired pay base upon which the computation is 
     based; and
       ``(ii) 2\1/2\ percent of the years of service credited to 
     that person under section 12733 of this title for service, 
     regardless of when served, under conditions authorized for 
     purposes of this paragraph during a period designated by the 
     Secretary of Defense for purposes of this paragraph.''.

     SEC. 652. MODIFICATION OF ELIGIBILITY FOR COMMENCEMENT OF 
                   AUTHORITY FOR OPTIONAL ANNUITIES FOR DEPENDENTS 
                   UNDER THE SURVIVOR BENEFIT PLAN.

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

     SEC. 653. COMMENCEMENT OF RECEIPT OF NON-REGULAR SERVICE 
                   RETIRED PAY BY MEMBERS OF THE READY RESERVE ON 
                   ACTIVE FEDERAL STATUS OR ACTIVE DUTY FOR 
                   SIGNIFICANT PERIODS.

       (a) Reduced Eligibility Age.--Section 12731 of title 10, 
     United States Code, is amended--
       (1) in subsection (a), by striking paragraph (1) and 
     inserting the following:
       ``(1) has attained the eligibility age applicable under 
     subsection (f) to that person;''; and
       (2) by adding at the end the following new subsection:
       ``(f)(1) Subject to paragraph (2), the eligibility age for 
     purposes of subsection (a)(1) is 60 years of age.
       ``(2)(A) In the case of a person who as a member of the 
     Ready Reserve serves on active duty or performs active 
     service described in subparagraph (B) after September 11, 
     2001, the eligibility age for purposes of subsection (a)(1) 
     shall be reduced below 60 years of age by three months for 
     each aggregate of 90 days on which such person so performs in 
     any fiscal year after such date, subject to subparagraph (C). 
     A day of duty may be included in only one aggregate of 90 
     days for purposes of this subparagraph.
       ``(B)(i) Service on active duty described in this 
     subparagraph is service on active duty pursuant to a call or 
     order to active duty under a provision of law referred to in 
     section 101(a)(13)(B) of this title or under section 12301(d) 
     of this title. Such service does not include service on 
     active duty pursuant to a call or order to active duty under 
     section 12310 of this title.
       ``(ii) Active service described in this subparagraph is 
     service under a call to active service authorized by the 
     President or the Secretary of Defense under section 502(f) of 
     title 32 for purposes of responding to a national emergency 
     declared by the President or supported by Federal funds.
       ``(C) The eligibility age for purposes of subsection (a)(1) 
     may not be reduced below 50 years of age for any person under 
     subparagraph (A).''.
       (b) Continuation of Age 60 as Minimum Age for Eligibility 
     of Non-Regular Service Retirees for Health Care.--Section 
     1074(b) of such title is amended--
       (1) by inserting ``(1)'' after ``(b)''; and
       (2) by adding at the end the following new paragraph:
       ``(2) Paragraph (1) does not apply to a member or former 
     member entitled to retired pay for non-regular service under 
     chapter 1223 of this title who is under 60 years of age.''.
       (c) Administration of Related Provisions of Law or 
     Policy.--With respect to any provision of law, or of any 
     policy, regulation, or directive of the executive branch that 
     refers to a member or former member of the uniformed services 
     as being eligible for, or entitled to, retired pay under 
     chapter 1223 of title 10, United States Code, but for the 
     fact that the member or former member is under 60 years of 
     age, such provision shall be carried out with respect to that 
     member or former member by substituting for the reference to 
     being 60 years of age a reference to having attained the 
     eligibility age applicable under subsection (f) of section 
     12731 of title

[[Page 13331]]

     10, United States Code (as added by subsection (a)), to such 
     member or former member for qualification for such retired 
     pay under subsection (a) of such section.
       (d) Effective Date and Applicability.--The amendment made 
     by subsection (a) shall take effect as of September 11, 2001, 
     and shall apply with respect to applications for retired pay 
     that are submitted under section 12731(a) of title 10, United 
     States Code, on or after the date of the enactment of this 
     Act.

                       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.

     SEC. 662. PILOT PROGRAM ON TROOPS TO NURSE TEACHERS.

       (a) Pilot Program Required.--
       (1) In general.--The Secretary of Defense shall, in 
     coordination with the Secretary of Health and Human Services 
     and the Secretary of Education, conduct a pilot program to 
     assess the feasibility and potential benefits of a program 
     to--
       (A) assist nurse corps officers described in subsection (c) 
     in achieving necessary qualifications to become nurse 
     educators and in securing employment as nurse educators at 
     accredited schools of nursing;
       (B) provide scholarships to nurse corps officers described 
     in subsection (c) in return for continuing service in the 
     Selected Reserve or other forms of public service; and
       (C) help alleviate the national shortage of nurse educators 
     and registered nurses.
       (2) Duration.--Except as provided in subsection (h), the 
     pilot program shall be conducted during the period beginning 
     on January 1, 2007, and ending on December 31, 2012. A nurse 
     corps officer may not enter into an agreement to participate 
     in the pilot program after December 31, 2012.
       (3) Regulations.--The pilot program shall be conducted 
     under regulations prescribed by the Secretary of Defense in 
     consultation with the Secretary of Health and Human Services 
     and the Secretary of Education.
       (b) Designation.--The pilot program required by subsection 
     (a) shall be known as the ``Troops to Nurse Teachers Pilot 
     Program'' (in this section referred to as the ``Program'').
       (c) Nurse Corps Officers.--A nurse corps officer described 
     in this subsection is any commissioned officer of the Armed 
     Forces qualified and designated as an officer in a Nurse 
     Corps of the Armed Forces who is--
       (1) serving in a reserve component of the Armed Forces;
       (2) honorably discharged from the Armed Forces; or
       (3) a retired member of the Armed Forces.
       (d) Selection of Participants in Program.--
       (1) Application.--An eligible nurse corps officer seeking 
     to participate in the Program shall submit to the Secretary 
     of Defense an application therefor. The application shall be 
     in such form, and contain such information, as the Secretary 
     may require.
       (2) Selection.--The Secretary shall select participants in 
     the Program from among qualified nurse corps officers 
     submitting applications therefor under paragraph (1).
       (e) Participant Agreement.--
       (1) In general.--A nurse corps officer selected under 
     subsection (d) to participate in the Program shall enter into 
     an agreement with the Secretary of Defense relating to 
     participation in the Program.
       (2) Elements.--The agreement of a nurse corps officer under 
     the program shall, at the election of the Secretary for 
     purposes of the Program and as appropriate with respect to 
     that status of such nurse corps officer--
       (A) require such nurse corps officer, within such time as 
     the Secretary may require, to accept an offer of full-time 
     employment as a nurse educator from an accredited school of 
     nursing for a period of not less than one year; or
       (B) require such nurse corps officer--
       (i) within such time as the Secretary may require, to 
     successfully complete a program leading to a master's degree 
     or doctoral degree in a nursing field from an accredited 
     school of nursing or to a doctoral degree in a related field 
     from an accredited institution of higher education;
       (ii) to serve in the Selected Reserve or some other form of 
     public service under terms and conditions established by the 
     Secretary; and
       (iii) upon completion of such program and service, to 
     accept an offer of full-time employment as a nurse educator 
     from an accredited school of nursing for a period of not less 
     than 3 years.
       (f) Assistance.--
       (1) Transition assistance.--The Secretary of Defense may 
     provide a participant in the Program who enters into an 
     agreement described in subsection (e)(2)(A) assistance as 
     follows:
       (A) Career placement assistance in securing full-time 
     employment as a nurse educator at an accredited school of 
     nursing.
       (B) A stipend in an amount not to exceed $5,000 for 
     transition to employment referred to in paragraph (1), and 
     for educational training for such employment, for a period 
     not to exceed two years after entry by such participant into 
     an agreement under subsection (e).
       (2) Scholarship assistance.--The Secretary of Defense may 
     provide a participant in the Program who enters into an 
     agreement described in subsection (e)(2)(B) scholarship 
     assistance to pursue a degree described in subsection 
     (e)(2)(B)(i) in an amount not to exceed $30,000 annually for 
     a period of not more than four years.
       (g) Treatment of Assistance.--A stipend or scholarship 
     provided under subsection (f) shall not be taken into account 
     in determining the eligibility of a participant in the 
     Program for Federal student financial assistance provided 
     under title IV of the Higher Education Act of 1965 (20 U.S.C. 
     1070 et seq.).
       (h) Administration After Initial Period.--
       (1) In general.--The termination of the Program on December 
     31, 2012, under subsection (a)(2) shall not terminate the 
     entitlement to assistance under the Program of any nurse 
     corps officer entering into an agreement to participate in 
     the Program under

[[Page 13332]]

     subsection (e) that continues in force after that date.
       (2) Administration.--The Secretary of Education shall 
     undertake any administration of the Program that is required 
     after December 31, 2012, including responsibility for any 
     funding necessary to provide assistance under the Program 
     after that date.
       (i) Report.--
       (1) In general.--Not later than three years after the 
     commencement of the Program, the Secretary of Defense shall, 
     in consultation with the Secretary of Health and Human 
     Services and the Secretary of Education, submit to Congress a 
     report on the Program.
       (2) Elements.--The report shall--
       (A) describe the activities undertaken under the Program; 
     and
       (B) include an assessment of the effectiveness of the 
     Program in--
       (i) facilitating the development of nurse educators;
       (ii) encouraging service in the Selected Reserve and other 
     forms of public service; and
       (iii) helping alleviate the national shortage of nurse 
     educators and registered nurses.
       (j) Definitions.--In this section:
       (1) Nurse educator.--The term ``nurse educator'' means a 
     registered nurse who--
       (A) is a member of the nursing faculty at an accredited 
     school of nursing;
       (B) holds a graduate degree in nursing from an accredited 
     school of nursing or a doctoral degree in a related field 
     from an accredited institution of higher education;
       (C) holds a valid, unrestricted license to practice nursing 
     from a State; and
       (D) has successfully completed additional course work in 
     education and demonstrates competency in an advanced practice 
     area of nursing.
       (2) School of nursing.--The term ``school of nursing'' 
     means a school of nursing (as that term is defined in section 
     801 of the Public Health Service Act (42 U.S.C. 296)) that is 
     accredited (as that term is defined in section 801(6) of the 
     Public Health Service Act).
       (k) Funding.--From amounts authorized to be appropriated 
     for the Department of Defense, $5,000,000 may be available 
     for the Program.

     SEC. 663. EXPANSION AND ENHANCEMENT OF AUTHORITY TO REMIT OR 
                   CANCEL INDEBTEDNESS OF MEMBERS OF THE ARMED 
                   FORCES.

       (a) Members of the Army.--
       (1) Coverage of all members and former members.--Subsection 
     (a) of section 4837 of title 10, United States Code, is 
     amended by striking ``a member of the Army'' and all that 
     follows through ``in an active status'' and inserting ``a 
     member of the Army (including a member on active duty or a 
     member of a reserve component in an active status), a retired 
     member of the Army, or a former member of the Army''.
       (2) Time for exercise of authority.--Subsection (b) of such 
     section is amended--
       (A) in paragraph (1), by adding ``or'' at the end; and
       (B) by striking paragraphs (2) and (3) and inserting the 
     following new paragraph (2):
       ``(2) in the case of any other member of the Army covered 
     by subsection (a), during such period or periods as the 
     Secretary of Defense may provide in regulations prescribed by 
     the Secretary of Defense.''.
       (3) Repeal of termination of modified authority.--Paragraph 
     (3) of section 683(a) of the National Defense Authorization 
     Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3322; 
     10 U.S.C. 4837 note) is repealed.
       (b) Members of the Navy.--
       (1) Coverage of all members and former members.--Section 
     6161 of title 10, United States Code, is amended by striking 
     ``a member of the Navy'' and all that follows through ``in an 
     active status'' and inserting ``a member of the Navy 
     (including a member on active duty or a member of a reserve 
     component in an active status), a retired member of the Navy 
     , or a former member of the Navy''.
       (2) Time for exercise of authority.--Subsection (b) of such 
     section is amended--
       (A) in paragraph (1), by adding ``or'' at the end; and
       (B) by striking paragraphs (2) and (3) and inserting the 
     following new paragraph (2):
       ``(2) in the case of any other member of the Navy covered 
     by subsection (a), during such period or periods as the 
     Secretary of Defense may provide in regulations prescribed by 
     the Secretary of Defense.''.
       (3) Repeal of termination of modified authority.--Paragraph 
     (3) of section 683(b) of the National Defense Authorization 
     Act for Fiscal Year 2006 (119 Stat. 3323; 10 U.S.C. 6161 
     note) is repealed.
       (c) Members of the Air Force.--
       (1) Coverage of all members and former members.--Subsection 
     (a) of section 4837 of title 10, United States Code, is 
     amended by striking ``a member of the Air Force'' and all 
     that follows through ``in an active status'' and inserting 
     ``a member of the Air Force (including a member on active 
     duty or a member of a reserve component in an active status), 
     a retired member of the Air Force, or a former member of the 
     Air Force''.
       (2) Time for exercise of authority.--Subsection (b) of such 
     section is amended--
       (A) in paragraph (1), by adding ``or'' at the end; and
       (B) by striking paragraphs (2) and (3) and inserting the 
     following new paragraph (2):
       ``(2) in the case of any other member of the Air Force 
     covered by subsection (a), during such period or periods as 
     the Secretary of Defense may provide in regulations 
     prescribed by the Secretary of Defense.''.
       (3) Repeal of termination of modified authority.--Paragraph 
     (3) of section 683(c) of the National Defense Authorization 
     Act for Fiscal Year 2006 (119 Stat. 3324; 10 U.S.C. 9837 
     note) is repealed.
       (d) Deadline for Regulations.--The Secretary of Defense 
     shall prescribe the regulations required for purposes of 
     sections 4837, 6161, and 9837 of title 10, United States 
     Code, as amended by this section, not later than March 1, 
     2007.

     SEC. 664. EXCEPTION FOR NOTICE TO CONSUMER REPORTING AGENCIES 
                   REGARDING DEBTS OR ERRONEOUS PAYMENTS PENDING A 
                   DECISION TO WAIVE, REMIT, OR CANCEL.

       (a) Exception.--Section 2780(b) of title 10, United States 
     Code, is amended--
       (1) by striking ``The Secretary'' and inserting ``(1) 
     Except as provided in paragraph (2), the Secretary''; and
       (2) by adding at the end the following new paragraph:
       ``(2) No disclosure shall be made under paragraph (1) with 
     respect to an indebtedness while a decision regarding waiver 
     of collection is pending under section 2774 of this title, or 
     a decision regarding remission or cancellation is pending 
     under section 4837, 6161, or 9837 of this title, unless the 
     Secretary concerned (as defined in section 101(5) of title 
     37), or the designee of such Secretary, determines that 
     disclosure under that paragraph pending such decision is in 
     the best interests of the United States.''.
       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     take effect on March 1, 2007.
       (2) Application to prior actions.--Paragraph (2) of section 
     2780(b) of title 10, United States Code (as added by 
     subsection (a)), shall not be construed to apply to or 
     invalidate any action taken under such section before March 
     1, 2007.
       (c) Report.--Not later than March 1, 2007, the Secretary of 
     Defense shall submit to the congressional defense committees 
     a report on the exercise of the authority in section 2780(b) 
     of title 10, United States Code, including--
       (1) the total number of members of the Armed Forces who 
     have been reported to consumer reporting agencies under such 
     section;
       (2) the circumstances under which such authority has been 
     exercised, or waived (as provided in paragraph (2) of such 
     section (as amended by subsection (a))), and by whom;
       (3) the cost of contracts for collection services to 
     recover indebtedness owed to the United States that is 
     delinquent;
       (4) an evaluation of whether or not such contracts, and the 
     practice of reporting military debtors to collection 
     agencies, has been effective in reducing indebtedness to the 
     United States; and
       (5) such recommendations as the Secretary considers 
     appropriate regarding the continuing use of such authority 
     with respect to members of the Armed Forces.

     SEC. 665. ENHANCEMENT OF AUTHORITY TO WAIVE CLAIMS FOR 
                   OVERPAYMENT OF PAY AND ALLOWANCES.

       (a) Clarification of Pay and Allowances.--Subsection (a) of 
     section 2774 of title 10, United States Code, is amended in 
     the matter preceding paragraph (1) by inserting ``(including 
     any bonus or special or incentive pay)'' after ``pay or 
     allowances''.
       (b) Waiver by Secretaries Concerned.--Paragraph (2) of such 
     subsection is amended--
       (1) in the matter preceding subparagraph (A), by inserting 
     ``or the designee of such Secretary'' after ``title 37,''; 
     and
       (2) in subparagraph (A), by striking ``$1,500'' and 
     inserting ``$10,000''.
       (c) Time for Waiver.--Subsection (b)(2) of such section is 
     amended by striking ``three years'' and inserting ``five 
     years''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on March 1, 2007.
       (e) Deadline for Revised Standards.--The Director of the 
     Office of Management and Budget and the Secretary of Defense 
     shall prescribe any modifications to the standards under 
     section 2774 of title 10, United States Code, that are 
     required or authorized by reason of the amendments made by 
     this section not later than March 1, 2007.

     SEC. 666. TERMS OF CONSUMER CREDIT EXTENDED TO SERVICEMEMBER 
                   OR SERVICEMEMBER'S DEPENDENT.

       (a) Terms of Consumer Credit.--Title II of the 
     Servicemembers Civil Relief Act (50 U.S.C. App. 521 et seq.) 
     is amended by adding at the end the following new section:

     ``SEC. 208. TERMS OF CONSUMER CREDIT.

       ``(a) Interest.--A creditor who extends consumer credit to 
     a servicemember or a servicemember's dependent shall not 
     require the servicemember or the servicemember's dependent to 
     pay interest with respect to the extension of such credit, 
     except as--
       ``(1) agreed to under the terms of the credit agreement or 
     promissory note;
       ``(2) authorized by applicable State or Federal law; and

[[Page 13333]]

       ``(3) not specifically prohibited by this section.
       ``(b) Annual Percentage Rate.--A creditor described in 
     subsection (a) shall not impose an annual percentage rate 
     greater than 36 percent with respect to the consumer credit 
     extended to a servicemember or a servicemember's dependent.
       ``(c) Mandatory Loan Disclosures.--
       ``(1) Information required.--With respect to any extension 
     of consumer credit to a servicemember or a servicemember's 
     dependent, a creditor shall provide to the servicemember or 
     the servicemember's dependent the following information in 
     writing, at or before the issuance of the credit:
       ``(A) A statement of the annual percentage rate applicable 
     to the extension of credit.
       ``(B) Any disclosures required under the Truth in Lending 
     Act (15 U.S.C. 1601 et seq.).
       ``(C) A clear description of the payment obligations of the 
     servicemember or the servicemember's dependent, as 
     applicable.
       ``(2) Terms.--Such disclosures shall be presented in 
     accordance with terms prescribed by the regulations issued by 
     the Board of Governors of the Federal Reserve System to 
     implement the Truth in Lending Act (15 U.S.C. 1601 et seq.).
       ``(d) Limitation.--A creditor described in subsection (a) 
     shall not automatically renew, repay, refinance, or 
     consolidate with the proceeds of other credit extended by the 
     same creditor any consumer credit extended to a servicemember 
     or a servicemember's dependent without--
       ``(1) executing new loan documentation signed by the 
     servicemember or the servicemember's dependent, as 
     applicable; and
       ``(2) providing the loan disclosures described in 
     subsection (c) to the servicemember or the servicemember's 
     dependent.
       ``(e) Preemption.--Except as provided in subsection (f)(2), 
     this section preempts any State or Federal law, rule, or 
     regulation, including any State usury law, to the extent that 
     such laws, rules, or regulations are inconsistent with this 
     section, except that this section shall not preempt any such 
     law, rule, or regulation that provides additional protection 
     to a servicemember or a servicemember's dependent.
       ``(f) Penalties.--
       ``(1) Misdemeanor.--Any creditor who knowingly violates 
     this section shall be fined as provided in title 18, United 
     States Code, or imprisoned for not more than one year, or 
     both.
       ``(2) Preservation of other remedies.--The remedies and 
     rights provided under this section are in addition to and do 
     not preclude any remedy otherwise available under law to the 
     person claiming relief under this section, including any 
     award for consequential and punitive damages.
       ``(g) Definition.--For purposes of this section, the term 
     `interest' includes service charges, renewal charges, fees, 
     or any other charges (except bona fide insurance) with 
     respect to the extension of consumer credit.''.
       (b) Clerical Amendment.--The table of contents of the 
     Servicemembers Civil Relief Act (50 U.S.C. App. 501) is 
     amended by inserting after the item relating to section 207 
     the following new item:

``Sec. 208. Terms of consumer credit''.

     SEC. 667. JOINT FAMILY SUPPORT ASSISTANCE PROGRAM.

       (a) Program Required.--The Secretary of Defense shall carry 
     out a joint family support assistance program for the purpose 
     of providing assistance to families of members of the Armed 
     Forces.
       (b) Locations.--
       (1) In general.--The Secretary shall carry out the program 
     for at least six regions of the country through sites 
     established by the Secretary for purposes of the program in 
     such regions.
       (2) Location of certain sites.--At least three of the sites 
     established under paragraph (1) shall be located in an area 
     that it geographically isolated from military installations.
       (c) Functions.--The Secretary shall provide assistance to 
     families of the members of the Armed Forces under the program 
     by providing at each site established for purposes of the 
     program under subsection (b) the following:
       (1) Financial, material, and other assistance to families 
     of members of the Armed Forces.
       (2) Mobile support services to families of members of the 
     Armed Forces.
       (3) Sponsorship of volunteers and family support 
     professionals for the delivery of support services to 
     families of members of the Armed Forces.
       (4) Coordination of family assistance programs and 
     activities provided by Military OneSource, Military Family 
     Life Consultants, counselors, the Department of Defense, 
     other departments and agencies of the Federal Government, 
     State and local agencies, and non-profit entities.
       (5) Facilitation of discussion on military family 
     assistance programs, activities, and initiatives between and 
     among the organizations, agencies, and entities referred to 
     in paragraph (4).
       (d) Resources.--
       (1) In general.--The Secretary shall provide personnel and 
     other resources necessary for the implementation and 
     operation of the program at each site established under 
     subsection (b).
       (2) Acceptance of certain services.--In providing resources 
     under paragraph (1), the Secretary may accept and utilize the 
     services of non-Federal Government volunteers and non-profit 
     entities.
       (e) Procedures.--The Secretary shall establish procedures 
     for the operation of each site established under subsection 
     (b) and for the provision of assistance to families of 
     members of the Armed Forces at such site.
       (f) Implementation Plan.--
       (1) Plan required.--Not later than 30 days after the first 
     obligation of amounts for the program, the Secretary shall 
     submit to the congressional defense committees a report 
     setting forth a plan for the implementation of the program.
       (2) Elements.--The plan required under paragraph (1) shall 
     include the following:
       (A) A description of the actions taken to select and 
     establish sites for the program under subsection (b).
       (B) A description of the procedures established under 
     subsection (d).
       (C) A review of proposed actions to be taken under the 
     program to improve coordination on family assistance program 
     and activities between and among the Department of Defense, 
     other departments and agencies of the Federal Government, 
     State and local agencies, and non-profit entities.
       (g) Report.--
       (1) In general.--Not later than 270 days after the first 
     obligation of amounts for the program, the Secretary shall 
     submit to the congressional defense committees a report on 
     the program.
       (2) Elements.--The report shall include the following:
       (A) A description of the program, including each site 
     established for purposes of the program, the procedures 
     established under subsection (d) for operations at each such 
     site, and the assistance provided through each such site for 
     families of members of the Armed Forces.
       (B) An assessment of the effectiveness of the program in 
     providing assistance to families of members of the Armed 
     Forces.
       (C) An assessment of the advisability of extending the 
     program or making it permanent.
       (h) Assistance to Non-Profit Entities Providing Assistance 
     to Military Families.--The Secretary may provide financial, 
     material, and other assistance to non-profit entities in 
     order to facilitate the provision by such entities of 
     assistance to geographically isolated families of members of 
     the Armed Forces.
       (i) Sunset.--The program required by this section, and the 
     authority to provide assistance under subsection (h), shall 
     cease upon the date that is three years after the first 
     obligation of amounts for the program.
       (j) Funding.--Of the amount authorized to be appropriated 
     by section 301(5) for operation and maintenance for Defense-
     wide activities, $5,000,000 may be available for the program 
     required by this section and the provision of assistance 
     under subsection (h).

     SEC. 668. IMPROVEMENT OF MANAGEMENT OF ARMED FORCES 
                   RETIREMENT HOME.

       (a) Redesignation of Chief Operating Officer as Chief 
     Executive Officer.--
       (1) In general.--Section 1515 of the Armed Forces 
     Retirement Home Act of 1991 (24 U.S.C. 415) is amended--
       (A) by striking ``Chief Operating Officer'' each place it 
     appears and inserting ``Chief Executive Officer''; and
       (B) in subsection (e)(1), by striking ``Chief Operating 
     Officer's'' and inserting ``Chief Executive Officer's''.
       (2) Conforming amendments.--Such Act is further amended by 
     striking ``Chief Operating Officer'' each place it appears in 
     a provision as follows and inserting ``Chief Executive 
     Officer'':
       (A) Section 1511 (24 U.S.C. 411).
       (B) Section 1512 (24 U.S.C. 412).
       (C) Section 1513(a) (24 U.S.C. 413(a)).
       (D) Section 1514(c)(1) (24 U.S.C. 414(c)(1)).
       (E) Section 1516(b) (24 U.S.C. 416(b)).
       (F) Section 1517 (24 U.S.C. 417).
       (G) Section 1518(c) (24 U.S.C. 418(c)).
       (H) Section 1519(c) (24 U.S.C. 419(c)).
       (I) Section 1521(a) (24 U.S.C. 421(a)).
       (J) Section 1522 (24 U.S.C. 422).
       (K) Section 1523(b) (24 U.S.C. 423(b)).
       (L) Section 1531 (24 U.S.C. 431).
       (3) Clerical amendments.--(A) The heading of section 1515 
     of such Act is amended to read as follows:

     ``SEC. 1515. CHIEF EXECUTIVE OFFICER.''.

       (B) The table of contents for such Act is amended by 
     striking the item relating to section 1515 and inserting the 
     following new item:

``Sec. 1515. Chief Executive Officer.''.

       (4) References.--Any reference in any law, regulation, 
     document, record, or other paper of the United States to the 
     Chief Operating Officer of the Armed Forces Retirement Home 
     shall be considered to be a reference to the Chief Executive 
     Officer of the Armed Forces Retirement Home.
       (b) Director and Deputy Director of Facilities.--
       (1) Military director.--Subsection (b)(1) of section 1517 
     of such Act (24 U.S.C. 417) is amended by striking ``a 
     civilian with experience as a continuing care retirement 
     community professional or''.

[[Page 13334]]

       (2) Civilian deputy director.--Subsection (d)(1)(A) of such 
     section is amended by striking ``or a member'' and all that 
     follows and inserting ``; and''.
       (3) Effective date.--The amendments made by this subsection 
     shall take effect on the date of the enactment of this Act, 
     and shall apply with respect to any vacancy that occur in the 
     position of Director or Deputy Director of a facility of the 
     Armed Forces Retirement Home that occurs on or after that 
     date.
       (c) Clarification of Membership on Local Board of 
     Trustees.--Section 1516(c)(1)(H) of such Act (24 U.S.C. 
     416(c)(1)(K)) is amended by inserting before the period at 
     the end the following: ``, who shall be a member of the Armed 
     Forces serving on active duty in the grade of brigadier 
     general, or in the case of the Navy, rear admiral (lower 
     half)''.

Subtitle F--Transition Assistance for Members of the National Guard and 
    Reserve Returning From Deployment in Operation Iraqi Freedom or 
                       Operation Enduring Freedom

     SEC. 681. SHORT TITLE.

       This subtitle may be cited as the ``Heroes at Home Act of 
     2006''.

     SEC. 682. SPECIAL WORKING GROUP ON TRANSITION TO CIVILIAN 
                   EMPLOYMENT OF MEMBERS OF THE NATIONAL GUARD AND 
                   RESERVE RETURNING FROM DEPLOYMENT IN OPERATION 
                   IRAQI FREEDOM AND OPERATION ENDURING FREEDOM.

       (a) Working Group Required.--The Secretary of Defense shall 
     establish within the Department of Defense a working group to 
     identify and assess the needs of members of the National 
     Guard and Reserve returning from deployment in Operation 
     Iraqi Freedom or Operation Enduring Freedom in transitioning 
     to civilian employment on their return from such deployment.
       (b) Members.--The working group established under 
     subsection (a) shall include a balance of individuals 
     appointed by the Secretary of Defense from among the 
     following:
       (1) Personnel of the Department of Defense.
       (2) With the concurrence of the Secretary of Veterans 
     Affairs, personnel of the Department of Veterans Affairs.
       (3) With the concurrence of the Secretary of Labor, 
     personnel of the Department of Labor.
       (c) Responsibilities.--The working group established under 
     subsection (a) shall--
       (1) identify and assess the needs of members of the 
     National Guard and Reserve described in subsection (a) in 
     transitioning to civilian employment on their return from 
     deployment as described in that subsection, including the 
     needs of--
       (A) members who were self-employed before deployment and 
     seek to return to such employment after deployment;
       (B) members who were students before deployment and seek to 
     return to school or commence employment after deployment;
       (C) members who have experienced multiple recent 
     deployments; and
       (D) members who have been wounded or injured during 
     deployment; and
       (2) develop recommendations on means of improving 
     assistance to members of the National Guard and Reserve 
     described in subsection (a) in meeting the needs identified 
     in paragraph (1) on their return from deployment as described 
     in subsection (a).
       (d) Consultation.--In carrying out its responsibilities 
     under subsection (c), the working group established under 
     subsection (a) shall consult with the following:
       (1) Appropriate personnel of the Small Business 
     Administration.
       (2) Representatives of employers who employ members of the 
     National Guard and Reserve described in subsection (a) on 
     their return to civilian employment as described in that 
     subsection.
       (3) Representatives of employee assistance organizations.
       (4) Representatives of associations of employers.
       (5) Representatives of organizations that assist wounded or 
     injured members of the National Guard and Reserves in finding 
     or sustaining employment.
       (6) Representatives of such other public or private 
     organizations and entities as the working group considers 
     appropriate.
       (e) Report.--
       (1) In general.--Not later than one year after the date of 
     the enactment of this Act, the working group established 
     under subsection (a) shall submit to the Secretary of Defense 
     and Congress a report on its activities under subsection (c).
       (2) Elements.--The report required by paragraph (1) shall 
     include the following:
       (A) The results of the identification and assessment 
     required under subsection (c)(1).
       (B) The recommendations developed under subsection (c)(2), 
     including recommendations on the following:
       (i) The provision of outreach and training to employers, 
     employment assistance organizations, and associations of 
     employers on the employment and transition needs of members 
     of the National Guard and Reserve described in subsection (a) 
     upon their return from deployment as described in that 
     subsection.
       (ii) The provision of outreach and training to employers, 
     employment assistance organizations, and associations of 
     employers on the needs of family members of such members.
       (iii) The improvement of collaboration between the pubic 
     and private sectors in order to ensure the successful 
     transition of such members into civilian employment upon 
     their return from such deployment.
       (3) Availability to public.--The Secretary shall take 
     appropriate actions to make the report under paragraph (1) 
     available to the public, including through the Internet 
     website of the Department of Defense.
       (f) Termination.--
       (1) In general.--The working group established under 
     subsection (a) shall terminate on the date that is two years 
     after the date of the enactment of this Act.
       (2) Interim duties.--During the period beginning on the 
     date of the submittal of the report required by subsection 
     (e) and the termination of the working group under paragraph 
     (1), the working group shall serve as an advisory board to 
     the Office for Employers and Employment Assistance 
     Organizations under section 683.
       (g) Employment Assistance Organization Defined.--In this 
     section, the term ``employment assistance organization'' 
     means an organization or entity, whether public or private, 
     that provides assistance to individuals in finding or 
     retaining employment, including organizations and entities 
     under military career support programs.

     SEC. 683. OFFICE FOR EMPLOYERS AND EMPLOYMENT ASSISTANCE 
                   ORGANIZATIONS.

       (a) Designation of Office.--
       (1) In general.--The Secretary of Defense shall designate 
     an office within the Department of Defense to assist 
     employers, employment assistance organizations, and 
     associations of employers in facilitating the successful 
     transition to civilian employment of members of the National 
     Guard and Reserve returning from deployment in Operation 
     Iraqi Freedom or Operation Enduring Freedom.
       (2) Name.--The office designated under this subsection 
     shall be known as the ``Office for Employers and Employment 
     Assistance Organizations'' (in this section referred to as 
     the ``Office'').
       (3) Head.--The Secretary shall designate an individual to 
     act as the head of the Office.
       (4) Integration.--In designating the Office, the Secretary 
     shall ensure close communication between the Office and the 
     military departments, including the commands of the reserve 
     components of the Armed Forces.
       (b) Functions.--The Office shall have the following 
     functions:
       (1) To provide education and technical assistance to 
     employers, employment assistance organizations, and 
     associations of employers to assist them in facilitating the 
     successful transition to civilian employment of members of 
     the National Guard and Reserve described in subsection (a) on 
     their return from deployment as described in that subsection.
       (2) To provide education and technical assistance to 
     employers, employment assistance organizations, and 
     associations of employers to assist them in facilitating the 
     successful adjustment of family members of the National Guard 
     and Reserve to the deployment and return from deployment of 
     members of the National Guard and Reserve as described in 
     that subsection.
       (c) Resources To Be Provided.--
       (1) In general.--In carrying out the functions specified in 
     subsection (b), the Office shall provide employers, 
     employment assistance organizations, and associations of 
     employers resources, services, and assistance that include 
     the following:
       (A) Guidelines on best practices and effective strategies.
       (B) Education on the physical and mental health conditions 
     that can and may be experienced by members of the National 
     Guard and Reserve described in subsection (a) on their return 
     from deployment as described in that subsection in 
     transitioning to civilian employment, including Post 
     Traumatic Stress Disorder (PTSD) and traumatic brain injury 
     (TBI), including education on--
       (i) the detection of warning signs of such conditions;
       (ii) the medical, mental health, and employment services 
     available to such members, including materials on services 
     offered by the Department of Defense, the Department of 
     Veterans Affairs (including through the vet center program 
     under section 1712A of title 38, United States Code), the 
     Department of Labor, military support programs, and community 
     mental health clinics; and
       (iii) the mechanisms for referring such members for 
     services described in clause (ii) and for other medical and 
     mental health screening and care when appropriate.
       (C) Education on the range and types of potential physical 
     and mental health effects of deployment and post-deployment 
     adjustment on family members of members of the National Guard 
     and Reserve described in subsection (a), including education 
     on--
       (i) the detection of warning signs of such effects on 
     family members of members of the National Guard and Reserves;
       (ii) the medical, mental health, and employment services 
     available to such family members, including materials on such 
     services as described in subparagraph (B)(ii); and
       (iii) mechanisms for referring such family members for 
     services described in clause (ii)

[[Page 13335]]

     and for medical and mental health screening and care when 
     appropriate.
       (D) Education on mechanisms, strategies, and resources for 
     accommodating and employing wounded or injured members of the 
     National Guard and Reserves in work settings.
       (2) Provision of resources.--The Office shall make 
     resources, services, and assistance available under this 
     subsection through such mechanisms as the head of the Office 
     considers appropriate, including the Internet, video 
     conferencing, telephone services, workshops, trainings, 
     presentations, group forums, and other mechanisms.
       (d) Personnel and Other Resources.--The Secretary of 
     Defense shall assign to the Office such personnel, funding, 
     and other resources as are required to ensure the effective 
     discharge by the Office of the functions under subsection 
     (b).
       (e) Reports on Activities.--
       (1) Annual report by office.--Not later than one year after 
     the designation of the Office, and annually thereafter, the 
     head of the Office, in consultation with the working group 
     established pursuant to section 682 (while in effect), shall 
     submit to the Secretary of Defense a written report on the 
     progress and outcomes of the Office during the one-year 
     period ending on the date of such report.
       (2) Transmittal to congress.--Not later than 60 days after 
     receipt of a report under paragraph (1), the Secretary shall 
     transmit such report to the Committees on Armed Services of 
     the Senate and the House of Representatives, together with--
       (A) such comments on such report, and such assessment of 
     the effectiveness of the Office, as the Secretary considers 
     appropriate; and
       (B) such recommendations on means of improving the 
     effectiveness of the Office as the Secretary considers 
     appropriate.
       (3) Availability to public.--The Secretary shall take 
     appropriate actions to make each report under paragraph (2) 
     available to the public, including through the Internet 
     website of the Office.
       (f) Employment Assistance Organization Defined.--In this 
     section, the term ``employment assistance organization'' 
     means an organization or entity, whether public or private, 
     that provides assistance to individuals in finding or 
     retaining employment, including organizations and entities 
     under military career support programs.

     SEC. 684. ADDITIONAL RESPONSIBILITIES OF DEPARTMENT OF 
                   DEFENSE TASK FORCE ON MENTAL HEALTH RELATING TO 
                   MENTAL HEALTH OF MEMBERS OF THE NATIONAL GUARD 
                   AND RESERVE DEPLOYED IN OPERATION IRAQI FREEDOM 
                   AND OPERATION ENDURING FREEDOM.

       (a) Additional Responsibilities.--Section 723 of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163; 119 Stat. 3348) is amended--
       (1) by redesignating subsections (d), (e), (f), and (g) as 
     subsections (e), (f), (g), and (h), respectively; and
       (2) by inserting after subsection (c) the following new 
     subsection (d):
       ``(d) Assessment of Mental Health Needs of Members of 
     National Guard and Reserve Deployed in OIF or OEF.--
       ``(1) In general.--In addition to the activities required 
     under subsection (c), the task force shall, not later than 12 
     months after the date of the enactment of the Heroes at Home 
     Act of 2006, submit to the Secretary a report containing an 
     assessment and recommendations on the needs with respect to 
     mental health of members of the National Guard and Reserve 
     who are deployed in Operation Iraqi Freedom or Operation 
     Enduring Freedom upon their return from such deployment.
       ``(2) Elements.--The assessment and recommendations 
     required by paragraph (1) shall include the following:
       ``(A) An assessment of the specific needs with respect to 
     mental health of members of the National Guard and Reserve 
     who are deployed in Operation Iraqi Freedom or Operation 
     Enduring Freedom upon their return from such deployment.
       ``(B) An identification of mental health conditions and 
     disorders (including Post Traumatic Stress Disorder (PTSD), 
     suicide attempts, and suicide) occurring among members of the 
     National Guard and Reserve who undergo multiple deployments 
     in Operation Iraqi Freedom or Operation Enduring Freedom upon 
     their return from such deployment.
       ``(C) Recommendations on mechanisms for improving the 
     mental health services available to members of the National 
     Guard and Reserve who are deployed in Operation Iraqi Freedom 
     or Operation Enduring Freedom, including such members who 
     undergo multiple deployments in such operations, upon their 
     return from such deployment.''.
       (b) Report.--Subsection (f) of such section, as 
     redesignated by subsection (a)(1) of this section, is further 
     amended--
       (1) in the subsection heading, by striking ``Report'' and 
     inserting ``Reports'';
       (2) by striking paragraph (1) and inserting the following 
     new paragraph (1):
       ``(1) In general.--The report submitted to the Secretary 
     under each of subsections (c) and (d) shall include--
       ``(A) a description of the activities of the task force 
     under such subsection;
       ``(B) the assessment and recommendations required by such 
     subsection; and
       ``(C) such other matters relating to the activities of the 
     task force under such subsection as the task force considers 
     appropriate.''; and
       (3) in paragraph (2)--
       (A) by striking ``the report under paragraph (1)'' and 
     inserting ``a report under paragraph (1)''; and
       (B) by striking ``the report as'' and inserting ``such 
     report as''.
       (c) Plan Matters.--Subsection (g) of such section, as 
     redesignated by subsection (a)(1) of this section, is further 
     amended--
       (1) by striking ``the report from the task force under 
     subsection (e)(1)'' and inserting ``a report from the task 
     force under subsection (f)(1)''; and
       (2) by inserting ``contained in such report'' after ``the 
     task force'' the second place it appears.
       (d) Termination.--Subsection (h) of such section, as 
     redesignated by subsection (a)(1) of this section, is further 
     amended--
       (1) by inserting ``with respect to the assessment and 
     recommendations required by subsection (d)'' after ``the task 
     force''; and
       (2) by striking ``subsection (e)(2)'' and inserting 
     ``subsection (f)(2)''.

     SEC. 685. GRANTS ON ASSISTANCE IN COMMUNITY-BASED SETTINGS 
                   FOR MEMBERS OF THE NATIONAL GUARD AND RESERVE 
                   AND THEIR FAMILIES AFTER DEPLOYMENT IN 
                   OPERATION IRAQI FREEDOM AND OPERATION ENDURING 
                   FREEDOM.

       (a) In General.--The Secretary of Defense may award grants 
     to eligible entities to carry out demonstration projects to 
     assess the feasibility and advisability of utilizing 
     community-based settings for the provision of assistance to 
     members of the National Guard and Reserve who serve in 
     Operation Iraqi Freedom or Operation Enduring Freedom, and 
     their families, after the return of such members from 
     deployment in Operation Iraqi Freedom or Operation Enduring 
     Freedom, as the case may be, including--
       (1) services to improve the reuniting of such members of 
     the National Guard and Reserve and their families;
       (2) education to increase awareness of the physical and 
     mental health conditions that members of the National Guard 
     and Reserve can and may experience on their return from such 
     deployment, including education on--
       (A) Post Traumatic Stress Disorder (PTSD) and traumatic 
     brain injury (TBI); and
       (B) mechanisms for the referral of such members of the 
     National Guard and Reserve for medical and mental health 
     screening and care when necessary; and
       (3) education to increase awareness of the physical and 
     mental health conditions that family members of such members 
     of the National Guard and Reserve can and may experience on 
     the return of such members from such deployment, including 
     education on--
       (A) depression, anxiety, and relationship problems; and
       (B) mechanisms for medical and mental health screening and 
     care when appropriate.
       (b) Eligible Entities.--An entity eligible for the award of 
     a grant under this section is any public or private non-
     profit organization, such as a community mental health 
     clinic, family support organization, military support 
     organization, law enforcement agency, community college, or 
     public school.
       (c) Application.--An eligible entity seeking a grant under 
     this section shall submit to the Secretary of Defense an 
     application therefor in such manner, and containing such 
     information, as the Secretary may require for purposes of 
     this section, including a description of how such entity will 
     work with the Department of Defense, the Department of 
     Veterans Affairs, State health agencies, other appropriate 
     Federal, State, and local agencies, family support 
     organizations, and other community organization in 
     undertaking activities described in subsection (a).
       (d) Annual Reports by Grant Recipients.--An entity awarded 
     a grant under this section shall submit to the Secretary of 
     Defense on an annual basis a report on the activities 
     undertaken by such entity during the preceding year utilizing 
     amounts under the grant. Each report shall include such 
     information as the Secretary shall specify for purposes of 
     this subsection.
       (e) Annual Reports to Congress.--
       (1) In general.--Not later than one year after the date of 
     the enactment of this Act, and annually thereafter, the 
     Secretary of Defense shall submit to Congress a report on 
     activities undertaken under the grants awarded under this 
     section. The report shall include recommendations for 
     legislative, programmatic, or administrative action to 
     improve or enhance activities under the grants awarded under 
     this section.
       (2) Availability to public.--The Secretary shall take 
     appropriate actions to make each report under this subsection 
     available to the public.

     SEC. 686. LONGITUDINAL STUDY ON TRAUMATIC BRAIN INJURY 
                   INCURRED BY MEMBERS OF THE ARMED FORCES IN 
                   OPERATION IRAQI FREEDOM AND OPERATION ENDURING 
                   FREEDOM.

       (a) Study Required.--The Secretary of Defense shall, in 
     consultation with the Secretary of Veterans Affairs, conduct 
     a longitudinal study on the effects of traumatic

[[Page 13336]]

     brain injury incurred by members of the Armed Forces in 
     Operation Iraqi Freedom or Operation Enduring Freedom. The 
     duration of the longitudinal study shall be 15 years.
       (b) Elements.--The study required by subsection (a) shall 
     address the following:
       (1) The long-term physical and mental health effects of 
     traumatic brain injuries incurred by members of the Armed 
     Forces during service in Operation Iraqi Freedom or Operation 
     Enduring Freedom.
       (2) The health care, mental health care, and rehabilitation 
     needs of such members for such injuries after the completion 
     of inpatient treatment through the Department of Defense, the 
     Department of Veterans Affairs, or both.
       (3) The type and availability of long-term care 
     rehabilitation programs and services within and outside the 
     Department of Defense and the Department of Veterans Affairs 
     for such members for such injuries, including community-based 
     programs and services and in-home programs and services.
       (c) Reports.--
       (1) Periodic and final reports.--After the third, seventh, 
     eleventh, and fifteenth years of the study required by 
     subsection (a), the Secretary of Defense shall, in 
     consultation with the Secretary of Veterans Affairs, submit 
     to Congress a comprehensive report on the results of the 
     study during the preceding years. Each report shall include 
     the following:
       (A) Current information on the cumulative outcomes of the 
     study.
       (B) Such recommendations as the Secretary of Defense and 
     the Secretary of Veterans Affairs jointly consider 
     appropriate based on the outcomes of the study, including 
     recommendations for legislative, programmatic, or 
     administrative action to improve long-term care and 
     rehabilitation programs and services for members of the Armed 
     Forces with traumatic brain injuries.
       (2) Availability to public.--The Secretary of Defense and 
     the Secretary of Veterans Affairs shall jointly take 
     appropriate actions to make each report under this subsection 
     available to the public.
       (d) Funding.--
       (1) Authorization of appropriations.--There is authorized 
     to be appropriated to the Department of Defense to carry out 
     this section amounts as follows:
       (A) For fiscal year 2007, $5,000,000.
       (B) For each of fiscal years 2008 through 2021, such sums 
     as may be necessary.
       (2) Offset.--The amount authorized to be appropriated by 
     section 102(a)(2) for weapons procurement for the Navy is 
     hereby reduced by $5,000,000, with the amount of the 
     reduction to be allocated to amounts for the Trident II 
     conventional modification program.

     SEC. 687. TRAINING CURRICULA FOR FAMILY CAREGIVERS ON CARE 
                   AND ASSISTANCE FOR MEMBERS AND FORMER MEMBERS 
                   OF THE ARMED FORCES WITH TRAUMATIC BRAIN INJURY 
                   INCURRED IN OPERATION IRAQI FREEDOM AND 
                   OPERATION ENDURING FREEDOM.

       (a) Traumatic Brain Injury Family Caregiver Panel.--
       (1) Establishment.--The Secretary of Defense shall, in 
     consultation with the Secretary of Veterans Affairs, 
     establish within the Department of Defense a panel to develop 
     coordinated, uniform, and consistent training curricula to be 
     used in training family members in the provision of care and 
     assistance to members and former members of the Armed Forces 
     for traumatic brain injuries incurred during service in the 
     Armed Forces in Operation Iraqi Freedom or Operation Enduring 
     Freedom.
       (2) Designation of panel.--The panel established under 
     paragraph (1) shall be known as the ``Traumatic Brain Injury 
     Family Caregiver Panel''.
       (3) Members.--The Traumatic Brain Injury Family Caregiver 
     Panel established under paragraph (1) shall consist of 15 
     members appointed by the Secretary of Defense, in 
     consultation with the Secretary of Veterans Affairs, equally 
     represented from among--
       (A) physicians, nurses, rehabilitation therapists, and 
     other individuals with an expertise in caring for and 
     assisting individuals with traumatic brain injury, including 
     those who specialize in caring for and assisting individuals 
     with traumatic brain injury incurred in war;
       (B) representatives of family caregivers or family 
     caregiver associations;
       (C) Department of Defense and Department of Veterans 
     Affairs health and medical personnel with expertise in 
     traumatic brain injury, and Department of Defense personnel 
     and readiness representatives with expertise in traumatic 
     brain injury;
       (D) psychologists or other individuals with expertise in 
     the mental health treatment and care of individuals with 
     traumatic brain injury;
       (E) experts in the development of training curricula; and
       (F) any other individuals the Secretary considers 
     appropriate.
       (b) Development of Curricula.--
       (1) In general.--The Traumatic Brain Injury Family 
     Caregiver Panel shall develop training curricula to be 
     utilized during the provision of training to family members 
     of members and former members of the Armed Forces described 
     in subsection (a) on techniques, strategies, and skills for 
     care and assistance for such members and former members with 
     the traumatic brain injuries described in that subsection.
       (2) Scope of curricula.--The curricula shall--
       (A) be based on empirical research and validated 
     techniques; and
       (B) shall provide for training that permits recipients to 
     tailor caregiving to the unique circumstances of the member 
     or former member of the Armed Forces receiving care.
       (3) Particular requirements.--In developing the curricula, 
     the Traumatic Brain Injury Family Caregiver Panel shall--
       (A) specify appropriate training commensurate with the 
     severity of traumatic brain injury; and
       (B) identify appropriate care and assistance to be provided 
     for the degree of severity of traumatic brain injury for 
     caregivers of various levels of skill and capability.
       (4) Use of existing materials.--In developing the 
     curricula, the Traumatic Brain Injury Family Caregiver Panel 
     shall utilize and enhance any existing training curricula, 
     materials, and resources applicable to such curricula as the 
     Panel considers appropriate.
       (5) Deadline for development.--The Traumatic Brain Injury 
     Family Caregiver Panel shall develop the curricula not later 
     than one year after the date of the enactment of this Act.
       (c) Dissemination of Curricula.--
       (1) In general.--The Secretary of Defense shall, in 
     consultation with the Traumatic Brain Injury Family Caregiver 
     Panel, develop mechanisms for the dissemination of the 
     curricula developed under subsection (b) to health care 
     professionals referred to in paragraph (2) who treat or 
     otherwise work with members and former members of the Armed 
     Forces with traumatic brain injury incurred in Operation 
     Iraqi Freedom or Operation Enduring Freedom. In developing 
     such mechanisms, the Secretary may utilize and enhance 
     existing mechanisms, including the Military Severely Injured 
     Center.
       (2) Health care professionals.--The health care 
     professionals referred to in this paragraph are the 
     following:
       (A) Personnel at military medical treatment facilities.
       (B) Personnel at the polytrauma centers of the Department 
     of Veterans Affairs.
       (C) Personnel and care managers at the Military Severely 
     Injured Center.
       (D) Such other health care professionals of the Department 
     of Defense as the Secretary considers appropriate.
       (E) Such other health care professionals of the Department 
     of Veterans Affairs as the Secretary of Defense, in 
     consultation with the Secretary of Veterans Affairs, 
     considers appropriate.
       (3) Provision of training to family caregivers.--
       (A) In general.--Health care professionals referred to in 
     paragraph (2) who are trained in the curricula developed 
     under subsection (b) shall provide training to family members 
     of members and former members of the Armed Forces who incur 
     traumatic brain injuries during service in the Operation 
     Iraqi Freedom or Operation Enduring Freedom in the care and 
     assistance to be provided for such injuries.
       (B) Timing of training.--Training under this paragraph 
     shall, to the extent practicable, be provided to family 
     members while the member or former member concerned is 
     undergoing treatment at a facility of the Department of 
     Defense or Department of Veterans Affairs, as applicable, in 
     order to ensure that such family members receive practice on 
     the provision of such care and assistance under the guidance 
     of qualified health professionals.
       (C) Particularized training.--Training provided under this 
     paragraph to family members of a particular member or former 
     member shall be tailored to the particular care needs of such 
     member or former member and the particular caregiving needs 
     of such family members.
       (4) Quality assurance.--The Secretary shall develop 
     mechanisms to ensure quality in the provision of training 
     under this section to health care professionals referred to 
     in paragraph (2) and in the provision of such training under 
     paragraph (4) by such health care professionals.
       (5) Report.--Not later than one year after the development 
     of the curricula required by subsection (b), and annually 
     thereafter, the Traumatic Brain Injury Family Caregiver 
     Training Panel shall submit to the Secretary of Defense and 
     the Secretary of Veterans Affairs, and to Congress, a report 
     on the following:
       (A) The actions undertaken under this subsection.
       (B) The results of the tracking of outcomes based on 
     training developed and provided under this section.
       (C) Recommendations for the improvement of training 
     developed and provided under this section.
       (d) Funding.--
       (1) Authorization of appropriations.--There is authorized 
     to be appropriated to the Department of Defense to carry out 
     this section amounts as follows:
       (A) For fiscal year 2007, $1,000,000.
       (B) For each of fiscal years 2008 through 2011, such sums 
     as may be necessary.
       (2) Offset.--The amount authorized to be appropriated by 
     section 102(a)(2) for weapons

[[Page 13337]]

     procurement for the Navy is hereby reduced by $1,000,000, 
     with the amount of the reduction to be allocated to amounts 
     for the Trident II conventional modification program.

                         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.

     SEC. 707. TEMPORARY PROHIBITION ON INCREASE IN COPAYMENTS 
                   UNDER RETAIL PHARMACY SYSTEM OF PHARMACY 
                   BENEFITS PROGRAM.

       Subsection (a)(6) of section 1074g of title 10, United 
     States Code, as amended by section 702(b) of this Act, is 
     further amended by adding at the end the following new 
     subparagraph:
       ``(D) During the period beginning on October 1, 2006, and 
     ending on September 31, 2007, the cost sharing requirements 
     established under this paragraph for pharmaceutical agents 
     available through retail pharmacies covered by paragraph 
     (2)(E)(ii) may not exceed amounts as follows:
       ``(i) In the case of generic agents, $3.
       ``(ii) In the case of formulary agents, $9.
       ``(iii) In the case of nonformulary agents, $22.''.

     SEC. 708. EXPANSION OF ELIGIBILITY OF MEMBERS OF THE SELECTED 
                   RESERVE FOR COVERAGE UNDER TRICARE.

       (a) In General.--Subsection (a) of section 1076b of title 
     10, United States Code, is amended--
       (1) in paragraph (2), by striking ``or'' at the end;
       (2) in paragraph (3), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following new paragraph:
       ``(4) is an employee of a business with 20 or fewer 
     employees.''.
       (b) Premiums.--Subsection (e)(2) of such section is amended 
     by adding at the end the following new subparagraph:
       ``(C) For members eligible under paragraph (4) of 
     subsection (a), the amount equal to 75 percent of the total 
     amount determined by the Secretary on an appropriate 
     actuarial basis as being reasonable for the coverage.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 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.

[[Page 13338]]

       ``(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.

[[Page 13339]]

       (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

[[Page 13340]]

     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

[[Page 13341]]

     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 (including Traumatic 
     Brain Injury (TBI)) 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 (including 
     Traumatic Brain Injury);
       (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.

     SEC. 730. MENTAL HEALTH SELF-ASSESSMENT PROGRAM.

       (a) Finding.--Congress finds that the Mental Health Self-
     Assessment Program (MHSAP) of the Department of Defense is 
     vital to the overall health and well-being of deploying 
     members of the Armed Forces and their families because that 
     program provides--
       (1) a non-threatening, voluntary, anonymous self-assessment 
     of mental health that is effective in helping to detect 
     mental health and substance abuse conditions;
       (2) awareness regarding warning signs of such conditions; 
     and
       (3) information and outreach to members of the Armed Forces 
     (including members of the National Guard and Reserves) and 
     their families on specific services available for such 
     conditions.
       (b) Expansion of Program.--The Secretary of Defense shall, 
     acting through the Office of Health Affairs of the Department 
     of Defense, take appropriate actions to expand the Mental 
     Health Self-Assessment Program in order to achieve the 
     following:
       (1) The continuous availability of the assessment under the 
     program to members and former members of the Armed Forces in 
     order to ensure the long-term availability of the diagnostic 
     mechanisms of the assessment to detect mental health 
     conditions that may emerge over time.
       (2) The availability of programs and services under the 
     program to address the mental health of dependent children of 
     members of the Armed Forces who have been deployed or 
     mobilized.
       (c) Outreach.--The Secretary shall develop and implement a 
     plan to conduct outreach and other appropriate activities to 
     expand and enhance awareness of the Mental Health Self-
     Assessment Program, and the programs and services available 
     under that program, among members of the Armed Forces 
     (including members of the National Guard and Reserves) and 
     their families.
       (d) Reports.--Not later than one year after the date of the 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on the actions undertaken under this section during 
     the one-year period ending on the date of such report.

     SEC. 731. ADDITIONAL AUTHORIZED OPTION PERIODS FOR EXTENSION 
                   OF CURRENT CONTRACTS UNDER TRICARE.

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

     SEC. 732. MILITARY VACCINATION MATTERS.

       (a) Additional Element for Comptroller General Study and 
     Report on Vaccine Healthcare Centers.--Section 736(b) of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163; 119 Stat. 3356) is amended by adding at 
     the end the following new paragraph:
       ``(10) The feasibility and advisability of transferring 
     direct responsibility for the Centers from the Army Medical 
     Command to the Under Secretary of Defense for Personnel and 
     Readiness and the Assistant Secretary of Defense for Force 
     Protection and Readiness.''.
       (b) Response to Medical Needs Arising From Mandatory 
     Military Vaccinations.--
       (1) In general.--The Secretary of Defense shall maintain a 
     joint military medical center of excellence focusing on the 
     medical needs arising from mandatory military vaccinations.
       (2) Elements.--The joint military medical center of 
     excellence under paragraph (1) shall consist of the 
     following:
       (A) The Vaccine Healthcare Centers of the Department of 
     Defense, which shall be the principal elements of the center.
       (B) Any other elements that the Secretary considers 
     appropriate.
       (3) Authorized activities.--In acting as the principal 
     elements of the joint military medical center under paragraph 
     (1), the Vaccine Healthcare Centers referred to in paragraph 
     (2)(A) may carry out the following:

[[Page 13342]]

       (A) Medical assistance and care to individuals receiving 
     mandatory military vaccines and their dependents, including 
     long-term case management for adverse events where necessary.
       (B) Evaluations to identify and treat potential and actual 
     health effects from vaccines before and after their use in 
     the field.
       (C) The development and sustainment of a long-term vaccine 
     safety and efficacy registry.
       (D) Support for an expert clinical advisory board for case 
     reviews related to disability assessment questions.
       (E) Long-term and short-term studies to identify 
     unanticipated benefits and adverse events from vaccines.
       (F) Educational outreach for immunization providers and 
     those required to receive immunizations.
       (G) The development, dissemination, and validation of 
     educational materials for Department of Defense healthcare 
     workers relating to vaccine safety, efficacy, and 
     acceptability.
       (c) Limitation on Restructuring of Vaccine Healthcare 
     Centers.--
       (1) Limitation.--The Secretary of Defense may not downsize 
     or otherwise restructure the Vaccine Healthcare Centers of 
     the Department of Defense until the Secretary submits to 
     Congress a report setting forth a plan for meeting the 
     immunization needs of the Armed Forces during the 10-year 
     period beginning on the date of the submittal of the report.
       (2) Report elements.--The report submitted under paragraph 
     (1) shall include the following:
       (A) An assessment of the potential biological threats to 
     members of the Armed Forces that are addressable by vaccine.
       (B) An assessment of the distance and time required to 
     travel to a Vaccine Healthcare Center by members of the Armed 
     Forces who have severe reactions to a mandatory military 
     vaccine.
       (C) An identification of the most effective mechanisms for 
     ensuring the provision services by the Vaccine Healthcare 
     Centers to both military medical professionals and members of 
     the Armed Forces.
       (D) An assessment of current military and civilian 
     expertise with respect to mass adult immunization programs, 
     including case management under such programs for rare 
     adverse reactions to immunizations.
       (E) An organizational structure for each military 
     department to ensure support of the Vaccine Healthcare 
     Centers in the provision of services to members of the Armed 
     Forces.

     SEC. 733. ENHANCED MENTAL HEALTH SCREENING AND SERVICES FOR 
                   MEMBERS OF THE ARMED FORCES.

       (a) Required Elements of Assessments.--Each pre-deployment 
     mental health assessment of a member of the Armed Forces, 
     shall include the following:
       (1) A mental health history of the member, with emphasis on 
     mental health status during the 12-month period ending on the 
     date of the assessment and a review of military service 
     during that period.
       (2) An assessment of the current treatment of the member, 
     and any use of psychotropic medications by the member, for a 
     mental health condition or disorder.
       (3) An assessment of any behavior of the member identified 
     by the member's commanding officer that could indicate the 
     presence of a mental health condition.
       (4) Information provided by the member (through a checklist 
     or other means) on the presence of any serious mental illness 
     or any symptoms indicating a mental health condition or 
     disorder.
       (b) Referral for Further Evaluation.--Each member of the 
     Armed Forces who is determined during a pre-deployment or 
     post-deployment mental health assessment to have, or have 
     symptoms or indicators for, a mental health condition or 
     disorder shall be referred to a qualified health care 
     professional with experience in the evaluation and diagnosis 
     of mental health conditions.
       (c) Referral of Members Deployed in Contingency or Combat 
     Operations.--Any member of the Armed Forces called or ordered 
     to active duty in support of contingency or combat operations 
     who requests access to mental health care services any time 
     before, during, or after deployment shall be provided access 
     to such services--
       (1) not later than 72 hours after the making of such 
     request; or
       (2) at the earliest practicable time thereafter.
       (d) Minimum Mental Health Standards for Deployment.--
       (1) Standards required.--The Secretary of Defense shall 
     prescribe in regulations minimum standards for mental health 
     for the eligibility of a member of the Armed Forces for 
     deployment to a combat operation or contingency operation.
       (2) Elements.--The standards required by paragraph (1) 
     shall include the following:
       (A) A specification of the mental health conditions, 
     treatment for such conditions, and receipt of psychotropic 
     medications for such conditions that preclude deployment of a 
     member of the Armed Forces to a combat operation or 
     contingency operation, or to a specified type of such 
     operation.
       (B) Guidelines for the deployability and treatment of 
     members of the Armed Forces diagnosed with a severe mental 
     illness or Post Traumatic Stress Disorder (PTSD).
       (3) Utilization.--The Secretary shall take appropriate 
     actions to ensure the utilization of the standards prescribed 
     under paragraph (1) in the making of determinations regarding 
     the deployability of members of the Armed Forces to a combat 
     operation or contingency operation.
       (e) Monitoring of Certain Individuals.--The Secretary of 
     Defense shall develop a plan, to be implemented throughout 
     the Department of Defense, for monitoring the mental health 
     of each member of the Armed Forces who, after deployment to a 
     combat operation or contingency operation, is known--
       (1) to have a mental health condition or disorder; or
       (2) to be receiving treatment, including psychotropic 
     medications, for a mental health condition or disorder.
       (f) Implementation.--Not later than six months after the 
     date of the enactment of this Act, the Secretary of Defense 
     shall submit to the Committees on Armed Services of the 
     Senate and the House or Representatives a report on the 
     actions taken to implement the requirements of this section.

     SEC. 734. EDUCATION, TRAINING, AND SUPERVISION OF PERSONNEL 
                   PROVIDING SPECIAL EDUCATION SERVICES UNDER 
                   EXTENDED BENEFITS UNDER TRICARE.

       Section 1079(d)(2) of title 10, United States Code is 
     amended by adding at the end the following: ``The regulations 
     shall include the following:
       ``(A) Requirements for education, training, and supervision 
     of individuals providing special education services known as 
     Applied Behavioral Analysis under this subsection that are in 
     addition to any other education, training, and supervision 
     requirements applicable to Board Certified Behavior Analysts 
     or Board Certified Associate Behavior Analysts or are 
     otherwise applicable to personnel providing such services 
     under applicable State law.
       ``(B) Metrics to identify and measure the availability and 
     distribution of individuals of various expertise in Applied 
     Behavioral Analysis in order to evaluate and assure the 
     availability of qualified personnel to meet needs for Applied 
     Behavioral Analysis under this subsection.''.

                    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

[[Page 13343]]

     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.

[[Page 13344]]



     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.

     SEC. 746. STUDY OF HEALTH EFFECTS OF EXPOSURE TO DEPLETED 
                   URANIUM.

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

                       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.''.

     SEC. 762. TRANSFER OF CUSTODY OF THE AIR FORCE HEALTH STUDY 
                   ASSETS TO MEDICAL FOLLOW-UP AGENCY.

       (a) Transfer.--

[[Page 13345]]

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

     SEC. 763. SENSE OF SENATE ON THE TRANSFORMATIONAL MEDICAL 
                   TECHNOLOGY INITIATIVE OF THE DEPARTMENT OF 
                   DEFENSE.

       (a) Findings.--The Senate finds the following:
       (1) The most recent Quadrennial Defense Review and other 
     studies have identified the need to develop broad-spectrum 
     medical countermeasures against the threat of genetically 
     engineered bioterror agents.
       (2) The Transformational Medical Technology Initiative of 
     the Department of Defense implements cutting edge 
     transformational medical technologies and applies them to 
     address the challenges of known, emerging, and bioengineered 
     threats.
       (3) The Transformational Medical Technology Initiative is 
     designed to provide such technologies in a much shorter 
     timeframe, and at lower cost, than is required with 
     traditional approaches.
       (b) Sense of Senate.--It is the sense of the Senate that--
       (1) the Transformational Medical Technology Initiative is 
     an important effort to provide needed capability within the 
     Department of Defense to field effective broad-spectrum 
     countermeasures against a significant array of current and 
     future biological threats; and
       (2) innovative technological approaches to achieve broad-
     spectrum medical countermeasures are a necessary component of 
     the capacity of the Department to provide chemical-biological 
     defense and force protection capabilities for the Armed 
     Forces.

  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.

[[Page 13346]]

       ``(c) Increments.--In the event any increment of a major 
     automated information system program separately meets the 
     requirements for treatment as a major automated information 
     system program, the provisions of this chapter shall apply to 
     such increment as well as to the overall major automated 
     information system program of which such increment is a part.

     ``Sec. 2445b. Cost, schedule, and performance information

       ``(a) Submittal of Cost, Schedule, and Performance 
     Information.--The Secretary of Defense shall submit to 
     Congress each calendar year, not later than 45 days after the 
     President submits to Congress the budget for a fiscal year 
     under section 1105 of title 31, budget justification 
     documents regarding cost, schedule, and performance for each 
     major automated information system program for which funds 
     are requested by the President in the budget.
       ``(b) Elements.--The documents submitted under subsection 
     (a) with respect to a major automated information system 
     program shall include detailed and summarized information 
     with respect to the automated information system to be 
     acquired under the program, and shall specifically include 
     each of the following:
       ``(1) The development schedule, including major milestones.
       ``(2) The implementation schedule, including estimates of 
     milestone dates, initial operational capability, and full 
     operational capability.
       ``(3) Estimates of development costs and full life-cycle 
     costs.
       ``(4) A summary of key performance parameters.
       ``(c) Baseline.--(1) For purposes of this chapter, the 
     initial submittal to Congress of the documents required by 
     subsection (a) with respect to a major automated information 
     system program shall constitute the original estimate or 
     information originally submitted on such program for purposes 
     of the reports and determinations on program changes in 
     section 2445c of this title.
       ``(2) An adjustment or revision of the original estimate or 
     information originally submitted on a program may be treated 
     as the original estimate or information originally submitted 
     on the program if the adjustment or revision is the result of 
     a critical change in the program covered by section 2445c(d) 
     of this title.
       ``(3) In the event of an adjustment or revision to the 
     original estimate or information originally submitted on a 
     program under paragraph (2), the Secretary of Defense shall 
     include in the next budget justification documents submitted 
     under subsection (a) after such adjustment or revision a 
     notification to the congressional defense committees of such 
     adjustment or revision, together with the reasons for such 
     adjustment or revision.

     ``Sec. 2445c. Reports: quarterly reports; reports on program 
       changes

       ``(a) Quarterly Reports by Program Managers.--The program 
     manager of a major automated information system program 
     shall, on a quarterly basis, submit to the senior Department 
     of Defense official responsible for the program a written 
     report identifying any variance in the projected development 
     schedule, implementation schedule, life-cycle costs, or key 
     performance parameters for the major automated information 
     system to be acquired under the program from such information 
     as originally submitted to Congress under section 2445b of 
     this title.
       ``(b) Senior Officials Responsible for Programs.--For 
     purposes of this section, the senior Department of Defense 
     official responsible for a major automated information system 
     program is--
       ``(1) in the case of an automated information system to be 
     acquired for a military department, the senior acquisition 
     executive for the military department; or
       ``(2) in the case of any other automated information system 
     to be acquired for the Department of Defense or any component 
     of the Department of Defense, the Under Secretary of Defense 
     for Acquisition, Technology, and Logistics.
       ``(c) Report on Significant Changes in Program.--
       ``(1) In 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.
       ``(g) Prohibition on Obligation of Funds.--(1) If the 
     determination of a critical change to a program is made by 
     the senior Department official responsible for the program 
     under subsection (d)(2) and a report is not submitted to 
     Congress within the 60-day period provided by subsection 
     (d)(1), appropriated funds may not be obligated for any major 
     contract under the program.
       ``(2) The prohibition on the obligation of funds for a 
     program under paragraph (1) shall cease to apply on the date 
     on which Congress has received a report in compliance with 
     the requirements of subsection (d)(2).

     ``Sec. 2445d. Construction with other reporting requirements

       ``In the case of a major automated information system 
     program covered by this chapter that is also treatable as a 
     major defense acquisition program for which reports would be 
     required under chapter 144 of this title, no reports on the 
     program are required under such chapter if the requirements 
     of this chapter with respect to the program are met.''.
       (2) Clerical amendments.--The tables of chapters the 
     beginning of subtitle A of such title, and of part IV of 
     subtitle A of such title, are each amended by inserting after 
     the item relating to chapter 144 the following new item:

``144A. Major Automated Information System Programs........2445a''.....

       (b) Report on Reporting Requirements Applicable to Major 
     Automated Information System Programs.--Not later than 180 
     days after the date of enactment of this Act, the Secretary 
     of Defense shall submit to the congressional defense 
     committees a report setting forth the reporting requirements 
     applicable to major automated information system programs as 
     of the date of the report, including a specification of such 
     reporting

[[Page 13347]]

     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:

[[Page 13348]]

       (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.
       (d) Repeal of Superseded Requirements.--Section 807 of the 
     National Defense Authorization Act for Fiscal Year 1989 (10 
     U.S.C. 2304 note) is repealed.
       (e) 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''.

[[Page 13349]]



     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 unforeseen 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.

     SEC. 812. GOVERNMENT PERFORMANCE OF CRITICAL ACQUISITION 
                   FUNCTIONS.

       (a) Government Performance of Functions.--
       (1) In general.--Section 2383 of title 10, United States 
     Code is amended--
       (A) by redesignating subsection (b) as subsection (c); and
       (B) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Government Performance of Critical Acquisition 
     Functions.--The head of an agency shall ensure that, at a 
     minimum, for each major defense acquisition program and each 
     major automated information system program, each of the 
     following positions is performed by a properly qualified 
     full-time Federal military or civilian employee:
       ``(1) Program manager.
       ``(2) Deputy program manager.
       ``(3) Chief engineer.
       ``(4) Systems engineer.
       ``(5) Cost estimator.''.
       (2) Definitional matters.--Subsection (c) of such section, 
     as redesignated by paragraph (1)(A) of this subsection, is 
     further amended by adding at the end the following new 
     paragraphs:
       ``(5) The term `major defense acquisition program' has the 
     meaning given such term in section 2430(a) of this title.
       ``(6) The term `major automated information system program' 
     has the meaning given such term in section 2445a(a) of this 
     title.''.
       (b) Effective Date and Phase-In.--
       (1) Effective date.--The amendments made by subsection (a) 
     shall take effect on the date that is one year after the date 
     of enactment of this Act.
       (2) Temporary waver.--During the two-year period beginning 
     on the effective date specified in paragraph (1), the head of 
     an agency may waive the requirement in subsection (b) of 
     section 2383 of title 10, United States Code, as amended by 
     subsection (a) of this section, with regard to a specific 
     function on a particular program upon a written determination 
     by the head of the agency that a properly qualified full-time 
     Federal military or civilian employee cannot reasonably be 
     made available to perform such function.

[[Page 13350]]



              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. APPLICABILITY OF CERTAIN REQUIREMENTS REGARDING 
                   SPECIALTY METALS.

       (a) Exemption for Certain Commercial Items.--Subsection (i) 
     of section 2533a of title 10, United States Code, is 
     amended--
       (1) by inserting ``, Dual-Use Items, and Electronic 
     Components'' after ``Commercial Items'';
       (2) by inserting ``(1)'' before ``this section'';
       (3) in paragraph (1), as so designated, by inserting 
     ``described in subsection (b)(1)'' after ``commercial 
     items''; and
       (4) by adding at the end the following new paragraphs:
       ``(2) This section is not applicable to--
       ``(A) a contract or subcontract for the procurement of a 
     commercial item containing specialty metals described in 
     subsections (b)(2) and (b)(3); or
       ``(B) specialty metals that are incorporated into an 
     electronic component, where the value of the specialty metal 
     used in the component is de minimis in relation to the value 
     of the electronic component.
       ``(3) For purposes of paragraph (2)(A), a commercial item 
     does not include--
       ``(A) any item that contains noncommercial modifications 
     that cost or are expected to cost, in the aggregate, more 
     than 5 percent of the total price of such item;
       ``(B) any item that would not be considered to be a 
     commercial item, but for sales to government entities or 
     inclusion in items that are sold to government entities;
       ``(C) forgings or castings for military unique end items;
       ``(D) fasteners other than commercial off-the-shelf items 
     (as defined in section 35(c) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 431(c)); or
       ``(E) specialty metals.''.
       (b) Exception for Certain Dual-Use Items To Facilitate 
     Civil-Military Integration.--Such section is further amended 
     by adding at the end the following new subsection:
       ``(k) Exception for Certain Dual-Use Items To Facilitate 
     Civil-Military Integration.--Subsection (a) does not apply to 
     the procurement of an item from a contractor or a first-tier 
     subcontractor if the Secretary of Defense or the Secretary of 
     a military department determines that--
       ``(1) the item is or will be produced using the same 
     production facilities, a common supply chain, and the same or 
     similar production processes that are used for the production 
     of similar items delivered to non-defense customers; and
       ``(2) the contractor or subcontractor has made a 
     contractual commitment to purchase a quality, grade, and 
     amount of domestically-melted specialty metals for use by the 
     purchaser during the period of contract performance in the 
     production of the item and other similar items delivered to 
     non-defense customers that is not less that the greater of--
       ``(A) the amount of specialty metals that is purchased by 
     the contractor for use in the item delivered to the 
     Department of Defense; or
       ``(B) 40 percent of the amount of specialty metals 
     purchased by the contractor or subcontractor for use during 
     such period in the production of the item and similar items 
     delivered to non-defense contractors.''.
       (c) De Minimis Standard for Specialty Metals.--Such section 
     is further amended by adding at the end the following new 
     subsection:
       ``(l) Minimum Threshold for Specialty Metals.--
     Notwithstanding the requirements of subsection (a), the 
     Secretary of Defense or the Secretary of a military 
     department may accept delivery of an item containing 
     specialty metals that were not grown, reprocessed, reused, or 
     produced in the United States if the total amount of 
     noncompliant specialty metals in the item does not exceed 2 
     percent of the total amount of specialty metals in the 
     item.''.
       (d) Effective Date.--
       (1) In general.--The amendments made by subsections (a) and 
     (c) shall take effect on the date of the enactment of this 
     Act, and shall apply with respect to items accepted for 
     delivery on or after that date.
       (2) Civil-military integration.--The amendment made by 
     subsection (b) shall take effect on the date of the enactment 
     of this Act, and shall apply to contracts entered into on or 
     after that date.

     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

[[Page 13351]]

     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.

[[Page 13352]]



     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 below-satisfactory 
     performance or performance that does not meet the basic 
     requirements of the contract;
       (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.

[[Page 13353]]



     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. DEPARTMENT OF DEFENSE 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 shall 
     develop a plan for the Department of Defense for contingency 
     program management during combat operations and post-conflict 
     operations.
       (b) Matters To Be Covered.--The plan of the Department of 
     Defense 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 
     Department 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) procedures for the Department 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.
       (c) Utilization in Plan for Interagency Procedures for 
     Stabilization and Reconstruction Operations.--To the extent 
     practicable, the elements of the plan of the Department of 
     Defense for contingency program management required by 
     subsection (a) shall be taken into account in the development 
     of the plan for the establishment of interagency operating 
     procedures for stabilization and reconstruction operations 
     required by section 1222.

     SEC. 865. COMPTROLLER GENERAL REPORT.

       Not later than February 1, 2007, the Comptroller General of 
     the United States shall

[[Page 13354]]

     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 inserting ``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''.

     SEC. 874. PILOT PROGRAM ON EXPANDED USE OF MENTOR-PROTEGE 
                   AUTHORITY.

       (a) Pilot Program Authorized.--The Secretary of Defense may 
     carry out a pilot program to assess the feasibility and 
     advisability of treating small business concerns described in 
     subsection (b) as disadvantaged small business concerns under 
     the Mentor-Protege Program under section 831 of the National 
     Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 
     2302 note).
       (b) Covered Small Business Concerns.--The small business 
     concerns described in this subsection are small business 
     concerns that--
       (1) are participants in the Small Business Innovative 
     Research Program of the Department of Defense established 
     pursuant to section 9 of the Small Business Act (15 U.S.C. 
     638); and
       (2) as determined by the Secretary, are developing 
     technologies that will assist in detecting or defeating 
     Improvised Explosive Devices (IEDs) or other critical force 
     protection measures.
       (c) Treatment as Disadvantaged Small Business Concerns.--
       (1) In general.--For purposes of the pilot program, the 
     Secretary may treat a small business concern described in 
     subsection (b) as a disadvantaged small business concern 
     under the Mentor-Protege Program.
       (2) Mentor-protege agreement.--Any eligible business 
     concerned approved for participation in the Mentor-Protege 
     Program as a mentor firm may enter into a mentor-protege 
     agreement and provide assistance described in section 831 of 
     the National Defense Authorization Act for Fiscal Year 1991 
     with respect to a small business concern treated under 
     paragraph (1) as a disadvantaged small business concern under 
     the Mentor-Protege Program.
       (d) Funding.--
       (1) In general.--Notwithstanding the limitation in section 
     9(f)(2) of the Small Business Act (15 U.S.C. 638(f)(2)), 
     funds for any reimbursement provided to a mentor firm under 
     section 831(g) of the National Defense Authorization Act for 
     Fiscal Year 1991 with respect to a small business concern 
     described in subsection (b) under the pilot program shall be 
     derived from funds available for the Small Business 
     Innovative Research Program of the Department of Defense.
       (2) Limitation.--The amount available under paragraph (1) 
     for reimbursement described in that paragraph may not exceed 
     the amount equal to one percent of the funds available for 
     the Small Business Innovative Research Program.
       (e) Sunset.--
       (1) Agreements.--No mentor-protege agreement may be entered 
     into under the pilot program after September 30, 2010.
       (2) Other matters.--No reimbursement may be paid, and no 
     credit toward the attainment of a subcontracting goal may be 
     granted, under the pilot program after September 30, 2013.
       (f) Report.--Not later than March 1, 2009, the Secretary 
     shall submit to the appropriate committees of Congress a 
     report on the pilot program. The report shall--
       (1) describe the extent to which mentor-protege agreements 
     have been entered under the pilot program; and
       (2) describe and assess the technological benefits arising 
     under such agreements.
       (g) Definitions.--In this section:
       (1) The term ``appropriate committees of Congress'' means--
       (A) the Committees on Armed Services, Appropriations, and 
     Small Business and Entrepreneurship of the Senate; and
       (B) the Committees on Armed Services and Appropriations of 
     the House of Representatives.
       (2) The term ``small business concern'' has the meaning 
     given that term in section 831(m)(1) of the National Defense 
     Authorization Act for Fiscal Year 1991.

      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.

     SEC. 903. UNITED STATES MARINE BAND AND UNITED STATES MARINE 
                   DRUM AND BUGLE CORPS.

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

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

       ``(a) United States Marine Band.--The band of the Marine 
     Corps shall be composed

[[Page 13355]]

     of one director, two assistant directors, and other personnel 
     in such numbers and grades as the Secretary of the Navy 
     determines to be necessary.
       ``(b) United States Marine Drum and Bugle Corps.--The drum 
     and bugle corps of the Marine Corps shall be composed of one 
     commanding officer and other personnel in such numbers and 
     grades as the Secretary of the Navy determines to be 
     necessary.
       ``(c) Appointment and Promotion.--(1) The Secretary of the 
     Navy shall prescribe regulations for the appointment and 
     promotion of members of the Marine Band and members of the 
     Marine Drum and Bugle Corps.
       ``(2) The President may from time to time appoint members 
     of the Marine Band and members of the Marine Drum and Bugle 
     Corps to grades not above the grade of captain. The authority 
     of the President to make appointments under this paragraph 
     may be delegated only to the Secretary of Defense.
       ``(3) The President, by and with the advice and consent of 
     the Senate, may from time to time appoint any member of the 
     Marine Band or of the Marine Drum and Bugle Corps to a grade 
     above the grade of captain.
       ``(d) Retirement.--Unless otherwise entitled to higher 
     retired grade and retired pay, a member of the Marine Band or 
     Marine Drum and Bugle Corps who holds, or has held, an 
     appointment under this section is entitled, when retired, to 
     be retired in, and with retired pay based on, the highest 
     grade held under this section in which the Secretary of the 
     Navy determines that such member served satisfactorily.
       ``(e) Revocation of Appointment.--The Secretary of the Navy 
     may revoke any appointment of a member of the Marine Band or 
     Marine Drum and Bugle Corps. When a member's appointment to a 
     commissioned grade terminates under this subsection, such 
     member is entitled, at the option of such member--
       ``(1) to be discharged from the Marine Corps; or
       ``(2) to revert to the grade and status such member held at 
     the time of appointment under this section.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 565 of such title is amended by striking 
     the item relating to section 6222 and inserting the following 
     new item:

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

     SEC. 904. MILITARY DEPUTIES TO THE ASSISTANT SECRETARIES OF 
                   THE MILITARY DEPARTMENTS FOR ACQUISITION, 
                   LOGISTICS, AND TECHNOLOGY MATTERS.

       (a) Department of the Army.--
       (1) Establishment of position.--There is hereby established 
     within the Department of the Army the position of Military 
     Deputy to the Assistant Secretary of the Army for 
     Acquisition, Logistics, and Technology.
       (2) Lieutenant general.--The individual serving in the 
     position of Military Deputy to the Assistant Secretary of the 
     Army for Acquisition, Logistics, and Technology shall be a 
     lieutenant general of the Army on active duty.
       (3) Exclusion from grade and number limitations.--An 
     officer serving in the position of Military Deputy to the 
     Assistant Secretary of the Army for Acquisition, Logistics, 
     and Technology shall not be counted against the numbers and 
     percentages of officers of the Army of the grade of 
     lieutenant general.
       (b) Department of the Navy.--
       (1) Establishment of position.--There is hereby established 
     within the Department of the Navy the position of Military 
     Deputy to the Assistant Secretary of the Navy for Research, 
     Development, and Acquisition.
       (2) Vice admiral.--The individual serving in the position 
     of Military Deputy to the Assistant Secretary of the Navy for 
     Research, Development, and Acquisition shall be a vice 
     admiral on active duty.
       (3) Exclusion from grade and number limitations.--An 
     officer serving in the position of Military Deputy to the 
     Assistant Secretary of the Navy for Research, Development, 
     and Acquisition shall not be counted against the numbers and 
     percentages of officers of the grade of vice admiral.
       (c) Department of the Air Force.--
       (1) Establishment of position.--There is hereby established 
     within the Department of the Air Force the position of 
     Military Deputy to the Assistant Secretary of the Air Force 
     for Acquisition.
       (2) Lieutenant general.--The individual serving in the 
     position of Military Deputy to the Assistant Secretary of the 
     Air Force for Acquisition shall be a lieutenant general of 
     the Air Force on active duty.
       (3) Exclusion from grade and number limitations.--An 
     officer serving in the position of Military Deputy to the 
     Assistant Secretary of the Air Force for Acquisition shall 
     not be counted against the numbers and percentages of 
     officers of the Air Force of the grade of lieutenant general.

                      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

[[Page 13356]]

     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''.

     SEC. 913. INDEPENDENT REVIEW AND ASSESSMENT OF DEPARTMENT OF 
                   DEFENSE ORGANIZATION AND MANAGEMENT FOR 
                   NATIONAL SECURITY IN SPACE.

       (a) Independent Review and Assessment Required.--
       (1) In general.--The Secretary of Defense shall provide for 
     an independent review and assessment of the organization and 
     management of the Department of Defense for national security 
     in space.
       (2) Conduct of review.--The review and assessment shall be 
     conducted by an appropriate entity outside the Department of 
     Defense selected by the Secretary for purposes of this 
     section.
       (3) Elements.--The review and assessment shall address the 
     following:
       (A) The requirements of the Department of Defense for 
     national security space capabilities, as identified by the 
     Department, and the efforts of the Department to fulfill such 
     requirements.
       (B) The future space missions of the Department, and the 
     plans of the Department to meet the future space missions.
       (C) The actions that could be taken by the Department to 
     modify the organization and management of the Department over 
     the near-term, medium-term, and long-term in order to 
     strengthen United States national security in space, and the 
     ability of the Department to implement its requirements and 
     carry out the future space missions, including the following:
       (i) Actions to exploit existing and planned military space 
     assets to provide support for United States military 
     operations.
       (ii) Actions to improve or enhance current interagency 
     coordination processes regarding the operation of national 
     security space assets, including improvements or enhancements 
     in interoperability and communications.
       (iii) Actions to improve or enhance the relationship 
     between the intelligence aspects of national security space 
     (so-called ``black space'') and the non-intelligence aspects 
     of national security space (so-called ``white space'').
       (iv) Actions to improve or enhance the manner in which 
     military space issues are addressed by professional military 
     education institutions.
       (4) Liaison.--The Secretary shall designate at least one 
     senior civilian employee of the Department of Defense, and at 
     least one general or flag officer of an Armed Force, to serve 
     as liaison between the Department, the Armed Forces, and the 
     entity conducting the review and assessment.
       (b) Report.--
       (1) In general.--Not later than one year after the date of 
     the enactment of this Act, the entity conducting the review 
     and assessment shall submit to the Secretary and the 
     congressional defense committees a report on the review and 
     assessment.
       (2) Elements.--The report shall include--
       (A) the results of the review and assessment; and
       (B) recommendations on the best means by which the 
     Department may improve its organization and management for 
     national security in space.

                       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''.

     SEC. 924. SENSE OF SENATE ON NOMINATION OF INDIVIDUAL TO 
                   SERVE AS DIRECTOR OF OPERATIONAL TEST AND 
                   EVALUATION ON A PERMANENT BASIS.

       (a) Findings.--The Senate makes the following findings:
       (1) Congress established the position of Director of 
     Operational Test and Evaluation of the Department of Defense 
     in 1983 to ensure the operational effectiveness and 
     suitability of weapon systems in combat.
       (2) The Director of Operational Test and Evaluation serves 
     as the principal adviser to the Secretary of Defense on 
     operational test and evaluation and is vital to ensuring the 
     operational effectiveness of weapon systems in combat.

[[Page 13357]]

       (3) The position of Director of Operational Test and 
     Evaluation has been held on an acting basis since February 
     15, 2005.
       (b) Sense of Senate.--It is the sense of the Senate that 
     the President should submit to the Senate the nomination of 
     an individual for the position of Director of Operational 
     Test and Evaluation as soon as practicable.

     SEC. 925. INCLUSION OF HOMELAND DEFENSE AND CIVIL SUPPORT 
                   MISSIONS OF THE NATIONAL GUARD AND RESERVES IN 
                   THE QUADRENNIAL DEFENSE REVIEW.

       Section 118(d) of title 10, United States Code, is 
     amended--
       (1) by redesignating paragraph (15) as paragraph (16); and
       (2) by inserting after paragraph (14) the following new 
     paragraph (15):
       ``(15) The homeland defense mission and civil support 
     missions of the active and reserve components of the armed 
     forces, including the organization and capabilities required 
     for the active and reserve components to discharge each such 
     mission.''.

     SEC. 926. REFORMS TO THE DEFENSE TRAVEL SYSTEM TO A FEE-FOR-
                   USE-OF-SERVICE SYSTEM.

       No later than one year after the enactment of this Act, the 
     Secretary of Defense may not obligate or expend any funds 
     related to the Defense Travel System except those funds 
     obtained through a one-time, fixed price service fee per 
     Department of Defense customer utilizing the system with an 
     additional fixed fee for each transaction.

     SEC. 927. REPORT ON INCORPORATION OF ELEMENTS OF THE RESERVE 
                   COMPONENTS INTO THE SPECIAL FORCES.

       (a) Findings.--The Senate makes the following findings:
       (1) The Quadrennial Defense Review recommends an increase 
     in the size of the Special Operations Command and the Special 
     Forces as a fundamental part of our efforts to fight the war 
     on terror.
       (2) The Special Forces play a crucial role in the war on 
     terror, and the expansion of their force structure as 
     outlined in the Quadrennial Defense Review should be fully 
     funded.
       (3) Expansion of the Special Forces should be consistent 
     with the Total Force Policy.
       (4) The Secretary of Defense should assess whether the 
     establishment of additional reserve component Special Forces 
     units and associated units is consistent with the Total Force 
     Policy.
       (5) Training areas in high-altitude and mountainous areas 
     represent a national asset for preparing Special Forces units 
     and personnel for duty in similar regions of Central Asia.
       (b) Report on Incorporation of Elements Into Special 
     Forces.--Not later than six months after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to the congressional defense committees a report to address 
     whether units and capabilities should be incorporated into 
     the reserve components of the Armed Forces as part of the 
     expansion of the Special Forces as outlined in the 
     Quadrennial Defense Review, and consistent with the Total 
     Force Policy.
       (c) Report on Special Forces Training.--Not later than six 
     months after the date of the enactment of this Act, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the effort taken by the United 
     States Special Operations Command to provide Special Forces 
     training in high-altitude and mountainous areas within the 
     United States.

               Subtitle D--National Guard Bureau Matters

     SEC. 931. SHORT TITLE.

       This title may be cited as the ``National Defense 
     Enhancement and National Guard Empowerment Act of 2006''.

     SEC. 932. EXPANDED AUTHORITY OF CHIEF OF THE NATIONAL GUARD 
                   BUREAU AND EXPANDED FUNCTIONS OF THE NATIONAL 
                   GUARD BUREAU.

       (a) Expanded Authority.--
       (1) In general.--Subsection (a) of section 10501 of title 
     10, United States Code, is amended by striking ``joint bureau 
     of the Department of the Army and the Department of the Air 
     Force'' and inserting ``joint activity of the Department of 
     Defense''.
       (2) Purpose.--Subsection (b) of such section is amended by 
     striking ``between'' and all that follows and inserting 
     ``between--
       ``(1)(A) the Secretary of Defense, the Joint Chiefs of 
     Staff, and the commanders of the combatant commands for the 
     United States, and (B) the Department of the Army and the 
     Department of the Air Force; and
       ``(2) the several States.''.
       (b) Enhancements of Position of Chief of the National Guard 
     Bureau.--
       (1) Advisory function on national guard matters.--
     Subsection (c) of section 10502 of title 10, United States 
     Code, is amended by inserting ``to the Secretary of Defense, 
     to the Chairman of the Joint Chiefs of Staff,'' after 
     ``principal advisor''.
       (2) Grade.--Subsection (e) of such section, as redesignated 
     by paragraph (2)(A)(i) of this subsection, is further amended 
     by striking ``lieutenant general'' and inserting ``general''.
       (3) Annual report to congress on validated requirements.--
     Section 10504 of such title is amended by adding at the end 
     the following new subsection:
       ``(c) Annual Report on Validated Requirements.--Not later 
     than December 31 each year, the Chief of the National Guard 
     Bureau shall submit to Congress a report on the requirements 
     validated under section 10503a(b)(1) of this title during the 
     preceding fiscal year.''.
       (c) Enhancement of Functions of National Guard Bureau.--
       (1) Development of charter.--Section 10503 of title 10, 
     United States Code, is amended--
       (A) in the matter preceding paragraph (1), by striking 
     ``The Secretary of the Army and the Secretary of the Air 
     Force shall jointly develop'' and inserting ``The Secretary 
     of Defense, in consultation with the Secretary of the Army 
     and the Secretary of the Air Force, shall develop''; and
       (B) in paragraph (12), by striking ``the Secretaries'' and 
     inserting ``the Secretary of Defense''.
       (2) Additional general functions.--Such section is further 
     amended--
       (A) by redesignating paragraph (12), as amended by 
     paragraph (1)(B) of this subsection, as paragraph (13); and
       (B) by inserting after paragraph (11) the following new 
     paragraph (12):
       ``(12) Facilitating and coordinating with other Federal 
     agencies, and with the several States, the use of National 
     Guard personnel and resources for and in contingency 
     operations, military operations other than war, natural 
     disasters, support of civil authorities, and other 
     circumstances.''.
       (3) Military assistance for civil authorities.--Chapter 
     1011 of such title is further amended by inserting after 
     section 10503 the following new section:

     ``Sec. 10503a. Functions of National Guard Bureau: military 
       assistance to civil authorities

       ``(a) Identification of Additional Necessary Assistance.--
     The Chief of the National Guard Bureau shall--
       ``(1) identify gaps between Federal and State capabilities 
     to prepare for and respond to emergencies; and
       ``(2) make recommendations to the Secretary of Defense on 
     programs and activities of the National Guard for military 
     assistance to civil authorities to address such gaps.
       ``(b) Scope of Responsibilities.--In meeting the 
     requirements of subsection (a), the Chief of the National 
     Guard Bureau shall, in coordination with the Adjutant 
     Generals of the States, have responsibilities as follows:
       ``(1) To validate the requirements of the several States 
     and Territories with respect to military assistance to civil 
     authorities.
       ``(2) To develop doctrine and training requirements 
     relating to the provision of military assistance to civil 
     authorities.
       ``(3) To administer amounts provided the National Guard for 
     the provision of military assistance to civil authorities.
       ``(4) To carry out any other responsibility relating to the 
     provision of military assistance to civil authorities as the 
     Secretary of Defense shall specify.
       ``(c) Assistance.--The Chairman of the Joint Chiefs of 
     Staff shall assist the Chief of the National Guard Bureau in 
     carrying out activities under this section.
       ``(d) Consultation.--The Chief of the National Guard Bureau 
     shall carry out activities under this section in consultation 
     with the Secretary of the Army and the Secretary of the Air 
     Force.''.
       (4) Limitation on increase in personnel of national guard 
     bureau.--The Secretary of Defense shall, to the extent 
     practicable, ensure that no additional personnel are assigned 
     to the National Guard Bureau in order to address 
     administrative or other requirements arising out of the 
     amendments made by this subsection.
       (d) Conforming and Clerical Amendments.--
       (1) Conforming amendment.--The heading of section 10503 of 
     such title is amended to read as follows:

     ``Sec. 10503. Functions of National Guard Bureau: charter''.

       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 1011 of such title is amended by 
     striking the item relating to section 10503 and inserting the 
     following new items:

``10503. Functions of National Guard Bureau: charter.
``10503a. Functions of National Guard Bureau: military assistance to 
              civil authorities.''.

     SEC. 933. REQUIREMENT THAT POSITION OF DEPUTY COMMANDER OF 
                   THE UNITED STATES NORTHERN COMMAND BE FILLED BY 
                   A QUALIFIED NATIONAL GUARD OFFICER.

       (a) In General.--The position of Deputy Commander of the 
     United States Northern Command shall be filled by a qualified 
     officer of the National Guard who is eligible for promotion 
     to the grade of lieutenant general.
       (b) Purpose.--The purpose of the requirement in subsection 
     (a) is to ensure that information received from the National 
     Guard Bureau regarding the operation of the National Guard of 
     the several States is integrated into the plans and 
     operations of the United States Northern Command.

[[Page 13358]]



                      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 ADDITIONAL EMERGENCY SUPPLEMENTAL 
                   APPROPRIATIONS FOR FISCAL YEAR 2006.

       (a) Iraq, Afghanistan, and the Global War on Terror.--
     Amounts authorized to be appropriated to the Department of 
     Defense for fiscal year 2006 in the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163) 
     are hereby adjusted, with respect to any such authorized 
     amount, by the amount by which appropriations pursuant to 
     such authorization are increased by a supplemental 
     appropriation, or decreased by a rescission, or both, or are 
     increased by a transfer of funds, pursuant to title I of the 
     Emergency Supplemental Appropriations Act for Defense, the 
     Global War on Terror, and Hurricane Recovery, 2006 (Public 
     Law 109-234).
       (b) Hurricane Disaster Relief and Recovery.--Amounts 
     authorized to be appropriated to the Department of Defense 
     for fiscal year 2006 in the National Defense Authorization 
     Act for Fiscal Year 2006 are hereby adjusted, with respect to 
     any such authorized amount, by the amount by which 
     appropriations pursuant to such authorization are increased 
     by a supplemental appropriation, or decreased by a 
     rescission, or both, or are increased by a transfer of funds, 
     pursuant to title II of the Emergency Supplemental 
     Appropriations Act for Defense, the Global War on Terror, and 
     Hurricane Recovery, 2006.
       (c) Border Security.--Amounts authorized to be appropriated 
     to the Department of Defense for fiscal year 2006 in the 
     National Defense Authorization Act for Fiscal Year 2006 are 
     hereby adjusted, with respect to any such authorized amount, 
     by the amount by which appropriations pursuant to such 
     authorization are increased by a supplemental appropriation, 
     or decreased by a rescission, or both, or are increased by a 
     transfer of funds, pursuant to title V of the Emergency 
     Supplemental Appropriations Act for Defense, the Global War 
     on Terror, and Hurricane Recovery, 2006.

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

       (a) Reduction.--The aggregate amount authorized to be 
     appropriated by titles I, II, and III is the amount equal to 
     the sum of all the amounts authorized to be appropriated by 
     such titles reduced by $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 
     ``$5,000,000,000''.

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

       (a) Fiscal Year 2007 Limitation.--The total amount 
     contributed by the Secretary of Defense in fiscal year 2007 
     for the common-funded budgets of NATO may be any amount up 
     to, but not in excess of, the amount specified in subsection 
     (b) (rather than the maximum amount that would otherwise be 
     applicable to those contributions under the fiscal year 1998 
     baseline limitation).
       (b) Total Amount.--The amount of the limitation applicable 
     under subsection (a) is the sum of the following:
       (1) The amounts of unexpended balances, as of the end of 
     fiscal year 2006, of funds appropriated for fiscal years 
     before fiscal year 2007 for payments for those budgets.
       (2) The amount specified in subsection (c)(1).
       (3) The amount specified in subsection (c)(2).
       (4) The total amount of the contributions authorized to be 
     made under section 2501.
       (c) Authorized Amounts.--Amounts authorized to be 
     appropriated by titles II and III of this Act are available 
     for contributions for the common-funded budgets of NATO as 
     follows:
       (1) Of the amount provided in section 201(1), $797,000 for 
     the Civil Budget.
       (2) Of the amount provided in section 301(1), $310,277,000 
     for the Military Budget.
       (d) Definitions.--For purposes of this section:
       (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)).

     SEC. 1008. INCORPORATION OF CLASSIFIED ANNEX.

       (a) Status of Classified Annex.--The Classified Annex 
     prepared by the Committee on Armed Services of the Senate to 
     accompany S. 2766 of the 109th Congress and transmitted to 
     the President is hereby incorporated into this Act.
       (b) Construction With Other Provisions of Act.--The amounts 
     specified in the Classified Annex are not in addition to 
     amounts authorized to be appropriated by other provisions of 
     this Act.
       (c) Limitation on Use of Funds.--Funds appropriated 
     pursuant to an authorization contained in this Act that are 
     made available for a program, project, or activity referred 
     to in the Classified Annex may only be expended for such 
     program, project, or activity in accordance with such terms, 
     conditions, limitations, restrictions, and requirements as 
     are set out for such program, project, or activity in the 
     Classified Annex.

[[Page 13359]]

       (d) Distribution of Classified Annex.--The President shall 
     provide for appropriate distribution of the Classified Annex, 
     or of appropriate portions of the annex, within the executive 
     branch of the Government.

     SEC. 1009. REPORTS TO CONGRESS AND NOTICE TO PUBLIC ON 
                   EARMARKS IN FUNDS AVAILABLE TO THE DEPARTMENT 
                   OF DEFENSE.

       (a) Annual Report and Notice Required.--The Secretary of 
     Defense shall submit to Congress, and post on the Internet 
     website of the Department of Defense available to the public, 
     each year information as follows:
       (1) A description of each earmark of funds made available 
     to the Department of Defense for the previous fiscal year, 
     including the location (by city, State, country, and 
     congressional district if relevant) in which the earmarked 
     funds are to be utilized, the purpose of such earmark (if 
     known), and the recipient of such earmark.
       (2) The total cost of administering each such earmark 
     including the amount of such earmark, staff time, 
     administrative expenses, and other costs.
       (3) The total cost of administering all such earmarks.
       (4) An assessment of the utility of each such earmark in 
     meeting the goals of the Department, set forth using a rating 
     system as follows:
       (A) A for an earmark that directly advances the primary 
     goals of the Department or an agency, element, or component 
     of the Department.
       (B) B for an earmark that advances many of the primary 
     goals of the Department or an agency, element, or component 
     of the Department.
       (C) C for an earmark that may advance some of the primary 
     goals of the Department or an agency, element, or component 
     of the Department.
       (D) D for an earmark that cannot be demonstrated as being 
     cost-effective in advancing the primary goals of the 
     Department or any agency, element, or component of the 
     Department.
       (E) F for an earmark that distracts from or otherwise 
     impedes that capacity of the Department to meet the primary 
     goals of the Department.
       (b) Earmark Defined.--In this section, the term ``earmark'' 
     means a provision of law, or a directive contained within a 
     joint explanatory statement or report accompanying a 
     conference report or bill (as applicable), that specifies the 
     identity of an entity, program, project, or service, 
     including a defense system, to receive assistance not 
     requested by the President and the amount of the assistance 
     to be so received.

                       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''.

     SEC. 1013. NAMING OF CVN-78 AIRCRAFT CARRIER AS THE U.S.S. 
                   GERALD FORD.

       (a) Findings.--Congress makes the following findings:
       (1) Gerald R. Ford has served his country with honor and 
     distinction for the past 64 years, and continues to serve.
       (2) Gerald R. Ford joined the United States Naval Reserve 
     in 1942 and served valiantly at sea on the U.S.S. Monterey 
     (CVL-26) during World War II, taking part in major operations 
     in the Pacific, including at Makin Island, Kwajalein, Truk, 
     Saipan, and the Philippine Sea.
       (3) The U.S.S. Monterey earned 10 battle stars, awarded for 
     participation in battle, while Gerald R. Ford served on the 
     vessel.
       (4) Gerald R. Ford was first elected to the House of 
     Representatives in 1948.
       (5) In the course of 25 years of service in the House of 
     Representatives, Gerald R. Ford distinguished himself by his 
     exemplary record for character, decency, and trustworthiness.
       (6) Throughout his service in Congress, Gerald R. Ford was 
     an ardent proponent of strong national defense and 
     international leadership by the United States.
       (7) From 1965 to 1973, Gerald R. Ford served as minority 
     leader of the House of Representatives, raising the standard 
     for bipartisanship in his tireless fight for freedom, hope, 
     and justice.
       (8) In 1973, Gerald R. Ford was appointed by President 
     Nixon to the office of Vice President of the United States 
     with the overwhelming support of Congress.
       (9) From 1974 to 1976, Gerald R. Ford served as the 38th 
     President of the United States, taking office during one of 
     the most challenging periods in the history of the United 
     States and restoring the faith of the people of the United 
     States in the office of the President through his steady 
     leadership, courage, and ultimate integrity.
       (10) President Gerald R. Ford helped restore the prestige 
     of the United States in the world community by working to 
     achieve peace in the Middle East, preserve detente with the 
     Soviet Union, and set new limits on the spread of nuclear 
     weapons.
       (11) President Gerald R. Ford served as Commander in Chief 
     of the Armed Forces of the United States with great dignity, 
     supporting a strong Navy and a global military presence for 
     the United State and honoring the men and women of the Armed 
     Forces of the United States.
       (12) Since leaving the office of President, Gerald R. Ford 
     has been an international ambassador of American goodwill, a 
     noted scholar and lecturer, a strong supporter of human 
     rights, and a promoter of higher education.
       (13) Gerald R. Ford was awarded the Medal of Freedom and 
     the Congressional Gold Medal in 1999 in recognition of his 
     contribution to the Nation.
       (14) As President, Gerald R. Ford bore the weight of a 
     constitutional crisis and guided the Nation on a path of 
     healing and restored hope, earning forever the enduring 
     respect and gratitude of the Nation.
       (b) Naming of CVN-78 Aircraft Carrier.--CVN-78, a nuclear 
     powered aircraft carrier of the Navy, shall be named the 
     U.S.S. Gerald Ford.

     SEC. 1014. AUTHORITY TO DONATE SS ARTHUR M. HUDDELL TO THE 
                   GOVERNMENT OF GREECE.

       (a) Findings.--Congress makes the following findings:
       (1) It is in the economic and environmental interests of 
     the United States to promote the disposal of vessels in the 
     National Defense Reserve Fleet that are of insufficient value 
     to warrant further preservation.
       (2) The Maritime Administration of the Department of 
     Transportation has been authorized to make such disposals, 
     including the sale and recycling of such vessels and the 
     donation of such vessels to any State, commonwealth, or 
     possession of the United States, and to nonprofit 
     organizations.
       (3) The government of Greece has expressed an interest in 
     obtaining and using the ex-Liberty ship, SS ARTHUR M. 
     HUDDELL, for purposes of a museum exhibit.
       (4) It is in the interest of the United States to authorize 
     the Maritime Administration to donate SS ARTHUR M. HUDDELL to 
     Greece.
       (b) Donation of SS ARTHUR M. HUDDELL to Government of 
     Greece.--Notwithstanding Section 510(j) of the Merchant 
     Marine Act, 1936 (46 App. U.S.C. 1158), the Secretary of 
     Transportation is authorized to transfer SS ARTHUR M. 
     HUDDELL, by gift, to the Government of Greece, in accordance 
     with terms and conditions determined by the Secretary.
       (c) Additional Equipment.--The Secretary may convey 
     additional equipment from other obsolete vessels of the 
     National Defense Reserve Fleet to assist the Government of 
     Greece under this section for purposes of the museum exhibit 
     referred to in subsection (a)(3).

                    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.

[[Page 13360]]

       ``(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, subject to section 484(a) of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2291c(a)), 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 and the Committee on Foreign 
     Relations of the Senate and the Committee on International 
     Relations of the House of Representatives a comprehensive 
     report on the support provided under this section during the 
     preceding fiscal year to each government referred to in 
     paragraphs (1) through (24) of subsection (b).''.

     SEC. 1024. OPERATION BAHAMAS, TURKS & CAICOS.

       (a) Findings.--Congress makes the following findings:
       (1) In 1982 the United States Government created Operation 
     Bahamas, Turks & Caicos (OPBAT) to counter the smuggling of 
     cocaine into the United States.
       (2) According to the Drug Enforcement Agency, an estimated 
     80 percent of the cocaine entering the United States in the 
     1980s came through the Bahamas, whereas, according to the 
     Office of National Drug Control Policy, only an estimated 10 
     percent comes through the Bahamas today.
       (3) According to the Drug Enforcement Agency, more than 
     80,000 kilograms of cocaine and nearly 700,000 pounds of 
     marijuana have been seized in Operation Bahamas, Turks & 
     Caicos since 1986, with a combined street value of 
     approximately two trillion dollars.
       (4) The Army has provided military airlift to law 
     enforcement officials under Operation Bahamas, Turks & Caicos 
     to create an effective, reliable, and immediate response 
     capability for drug interdiction. This support is largely 
     responsible for the decline in cocaine shipments to the 
     United States through the Bahamas.
       (5) The Bahamas is an island nation composed of 
     approximately 700 islands and keys, which makes aviation 
     assets the best and most efficient method of transporting law 
     enforcement agents and interdicting smugglers.
       (6) It is in the interests of the United States to maintain 
     the results of the successful Operation Bahamas, Turks & 
     Caicos program and prevent drug smugglers from rebuilding 
     their operations through the Bahamas.
       (b) Report on United States Government Support for OPBAT.--
       (1) Report on decision to withdraw.--Not later than 30 days 
     before implementing a decision to withdraw Department of 
     Defense helicopters from Operation Bahamas, Turks & Caicos, 
     the Secretary of Defense shall submit to the Congress a 
     report outlining the plan for the coordination of the 
     Operation Bahamas, Turks & Caicos mission, at the same level 
     of effectiveness, using other United States Government 
     assets.
       (2) Consultation.--The Secretary of Defense shall consult 
     with the Secretary of State, the Attorney General, and the 
     Secretary of Homeland Security, and with other appropriate 
     officials of the United States Government, in preparing the 
     report under paragraph (1).
       (3) Elements.--The report under paragraph (1) on the 
     withdrawal of equipment referred to in that paragraph shall 
     include the following:
       (A) An explanation of the military justification for the 
     withdrawal of the equipment.
       (B) An assessment of the availability of other options 
     (including other Government helicopters) to provide the 
     capability being provided by the equipment to be withdrawn.
       (C) An explanation of how each option specified under 
     subparagraph (B) will provide the capability currently 
     provided by the equipment to be withdrawn.
       (D) An assessment of the potential use of unmanned aerial 
     vehicles in Operation Bahamas, Turks & Caicos, including the 
     capabilities of such vehicles and any advantages or 
     disadvantages associated with the use of such vehicles in 
     that operation, and a recommendation on whether or not to 
     deploy such vehicles in that operation.

          Subtitle D--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:

[[Page 13361]]

       ``(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.

     SEC. 1035. COLLECTION BY NATIONAL SECURITY AGENCY OF SERVICE 
                   CHARGES FOR CERTIFICATION OR VALIDATION OF 
                   INFORMATION ASSURANCE PRODUCTS.

       The National Security Agency Act of 1959 (50 U.S.C. 402 
     note) is amended by adding at the end the following new 
     section:
       ``Sec. 20.(a) The Director may collect charges for 
     evaluating, certifying, or validating information assurance 
     products under the National Information Assurance Program or 
     successor program.
       ``(b) The charges collected under subsection (a) shall be 
     established through a public rulemaking process in accordance 
     with Office of Management and Budget Circular No. A-25.
       ``(c) Charges collected under subsection (a) shall not 
     exceed the direct costs of the program referred to in that 
     subsection.
       ``(d) The appropriation or fund bearing the cost of the 
     service for which charges are collected under the program 
     referred to in subsection (a) may be reimbursed, or the 
     Director may require advance payment subject to such 
     adjustment on completion of the work as may be agreed upon.
       ``(e) Amounts collected under this section shall be 
     credited to the account or accounts from which costs 
     associated with such amounts have been or will be incurred, 
     to reimburse or offset the direct costs of the program 
     referred to in subsection (a).''.

     SEC. 1036. FUNDING FOR A CERTAIN MILITARY INTELLIGENCE 
                   PROGRAM.

       (a) Increase in Amount for Research, Development, Test, and 
     Evaluation, Defense-Wide.--The amount authorized to be 
     appropriated by section 201(4) for research, development, 
     test, and evaluation for Defense-wide activities is hereby 
     increased by $450,000,000.
       (b) Offset.--The amount authorized to be appropriated by 
     section 201(3) for research, development, test, and 
     evaluation for the Air Force is hereby decreased by 
     $450,000,000, with the amount of the reduction to be 
     allocated to amounts available for a classified program as 
     described on page 34 of Volume VII (Compartmented Annex) of 
     the Fiscal Year 2007 Military Intelligence Program 
     justification book.

   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:

[[Page 13362]]



    ``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.
       ``(b) Covered Supplies, Services, and Equipment.--The 
     supplies, services, and equipment provided under this section 
     may include food, water, utilities, bedding, transportation, 
     tentage, search and rescue, medical care, minor repairs, the 
     removal of debris, and other assistance necessary for the 
     immediate preservation of life and property.
       ``(c) Limitations.--(1) Supplies, services, and equipment 
     may be provided under this section--
       ``(A) only to the extent that the constituted authorities 
     of the State or possession concerned are unable to provide 
     such supplies, services, and equipment, as the case may be; 
     and
       ``(B) only until such authorities, or other departments or 
     agencies of the United States charged with the provision of 
     such supplies, services, and equipment, are able to provide 
     such supplies, services, and equipment.
       ``(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.

     SEC. 1044. TEMPORARY NATIONAL GUARD SUPPORT FOR SECURING THE 
                   SOUTHERN LAND BORDER OF THE UNITED STATES.

       (a) Authority To Provide Assistance.--(1) With the approval 
     of the Secretary of Defense, the Governor of a State may 
     order any units or personnel of the National Guard of such 
     State to annual training duty under section 502(a) of title 
     32, United States Code, to carry out in any State along the 
     southern land border of the United States the activities 
     authorized in subsection (b) for the purpose of securing such 
     border. Such duty shall not exceed 21 days in any year.
       (2) With the approval of the Secretary of Defense, the 
     Governor of a State may order any units or personnel of the 
     National Guard of such State to perform duty under section 
     502(f) of title 32, United States Code, to provide command, 
     control, and continuity of support for units and personnel 
     performing annual training duty under paragraph (1).
       (b) Authorized Activities.--The activities authorized by 
     this subsection are the following:
       (1) Ground surveillance activities.
       (2) Airborne surveillance activities.
       (3) Logistical support.
       (4) Provision of translation services and training.
       (5) Provision of administrative support services.
       (6) Provision of technical training services.
       (7) Provision of emergency medical assistance and services.
       (8) Provision of communications services.
       (9) Rescue of aliens in peril.
       (10) Construction of roadways, patrol roads, fences, 
     barriers, and other facilities to secure the southern land 
     border of the United States.
       (11) Ground and air transportation.
       (c) Cooperative Agreements.--Units and personnel of the 
     National Guard of a State may perform activities in another 
     State under subsection (a) only pursuant to the terms of an 
     emergency management assistance compact or other cooperative 
     arrangement entered into between the Governors of such States 
     for purposes of this section, and only with the approval of 
     the Secretary of Defense.
       (d) Coordination of Assistance.--The Secretary of Homeland 
     Security shall, in consultation with the Secretary of Defense 
     and the Governors of the States concerned, coordinate the 
     performance of activities under this section by units and 
     personnel of the National Guard.
       (e) Annual Training.--Annual training duty performed by 
     members of the National Guard under this section shall be 
     appropriate for the units and individual members concerned, 
     taking into account the types of units and military 
     occupational specialties of individual members performing 
     such duty.
       (f) Prohibition on Direct Participation in Law 
     Enforcement.--Activities carried out under this section shall 
     not include the direct participation of a member of the 
     National Guard in a search, seizure, arrest, or similar 
     activity.
       (g) Duration of Authority.--The authority of this section 
     shall expire on January 1, 2009.
       (h) Definitions.--In this section:
       (1) The term ``Governor of a State'' means, in the case of 
     the District of Columbia, the Commanding General of the 
     National Guard of the District of Columbia.
       (2) The term ``State'' means each of the several States and 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     Guam, and the Virgin Islands.
       (3) The term ``State along the southern land border of the 
     United States'' means each of the following:
       (A) The State of Arizona.
       (B) The State of California.
       (C) The State of New Mexico.
       (D) The State of Texas.

 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.

[[Page 13363]]

       ``(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.

     SEC. 1054. STRENGTHENING THE SPECIAL INSPECTOR GENERAL FOR 
                   IRAQ RECONSTRUCTION.

       For purposes of discharging the duties of the Special 
     Inspector General for Iraq Reconstruction under subsection 
     (f) of section 3001 of the Emergency Supplemental 
     Appropriations Act for Defense and for the Reconstruction of 
     Iraq and Afghanistan, 2004 (5 U.S.C. 8G note), and for 
     purposes of determining the date of termination of the Office 
     of the Special Inspector General under subsection (o) of such 
     section, any funds appropriated or otherwise made available 
     for fiscal year 2006 for the reconstruction of Iraq, 
     regardless of how such funds may be designated, shall be 
     treated as amounts appropriated or otherwise made available 
     for the Iraq Relief and Reconstruction Fund.

                       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.

[[Page 13364]]

       (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.

     SEC. 1066. REPORT ON INCENTIVES TO ENCOURAGE CERTAIN MEMBERS 
                   AND FORMER MEMBERS OF THE ARMED FORCES TO SERVE 
                   IN THE BUREAU OF CUSTOMS AND BORDER PROTECTION.

       (a) Report Required.--Not later than 60 days after the date 
     of the enactment of this Act, the Secretary of Homeland 
     Security and the Secretary of Defense shall jointly submit to 
     the appropriate committees of Congress a report assessing the 
     desirability and feasibility of offering incentives to 
     covered members and former members of the Armed Forces for 
     the purpose of encouraging such members to serve in the 
     Bureau of Customs and Border Protection.
       (b) Covered Members and Former Members of the Armed 
     Forces.--For purposes of this section, covered members and 
     former members of the Armed Forces are the following:
       (1) Members of the reserve components of the Armed Forces.
       (2) Former members of the Armed Forces within two years of 
     separation from service in the Armed Forces.
       (c) Requirements and Limitations.--
       (1) Nature of incentives.--In considering incentives for 
     purposes of the report required by subsection (a), the 
     Secretaries shall consider such incentives, whether monetary 
     or otherwise and whether or not authorized by current law or 
     regulations, as the Secretaries jointly consider appropriate.
       (2) Targeting of incentives.--In assessing any incentive 
     for purposes of the report, the Secretaries shall give 
     particular attention to the utility of such incentive in--
       (A) encouraging service in the Bureau of Customs and Border 
     Protection after service

[[Page 13365]]

     in the Armed Forces by covered members and former of the 
     Armed Forces who have provided border patrol or border 
     security assistance to the Bureau as part of their duties as 
     members of the Armed Forces; and
       (B) leveraging military training and experience by 
     accelerating training, or allowing credit to be applied to 
     related areas of training, required for service with the 
     Bureau of Customs and Border Protection.
       (3) Payment.--In assessing incentives for purposes of the 
     report, the Secretaries shall assume that any costs of such 
     incentives shall be borne by the Department of Homeland 
     Security.
       (d) Elements.--The report required by subsection (a) shall 
     include the following:
       (1) A description of various monetary and non-monetary 
     incentives considered for purposes of the report.
       (2) An assessment of the desirability and feasibility of 
     utilizing any such incentive for the purpose specified in 
     subsection (a), including an assessment of the particular 
     utility of such incentive in encouraging service in the 
     Bureau of Customs and Border Protection after service in the 
     Armed Forces by covered members and former members of the 
     Armed Forces described in subsection (c)(2).
       (3) Any other matters that the Secretaries jointly consider 
     appropriate.
       (e) Appropriate Committees of Congress Defined.--In this 
     section, the term ``appropriate committees of Congress'' 
     means--
       (1) the Committees on Armed Services, Homeland Security and 
     Governmental Affairs, and Appropriations of the Senate; and
       (2) the Committees on Armed Services, Homeland Security, 
     and Appropriations of the House of Representatives.

     SEC. 1067. REPORT ON REPORTING REQUIREMENTS APPLICABLE TO THE 
                   DEPARTMENT OF DEFENSE.

       (a) Report Required.--
       (1) In general.--Not later than March 1, 2007, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on each report described in 
     paragraph (2) that is required by law to be submitted to the 
     congressional defense committees by the Department of Defense 
     or any department, agency, element, or component under the 
     Department of Defense.
       (2) Covered reports.--Paragraph (1) applies with respect to 
     any report required under a provision of law enacted on or 
     after the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 2004 (Public Law 108-136) 
     that requires recurring reports to the committees referred to 
     in that paragraph.
       (b) Elements.--The report required by subsection (a) shall 
     set forth the following:
       (1) Each report described by that subsection, including a 
     statement of the provision of law under which such report is 
     required to be submitted to Congress.
       (2) For each such report, an assessment by the Secretary of 
     the utility of such report from the perspective of the 
     Department of Defense and a recommendation on the 
     advisability of repealing the requirement for the submittal 
     of such report.

     SEC. 1068. REPORT ON TECHNOLOGIES FOR NEUTRALIZING OR 
                   DEFEATING THREATS TO MILITARY ROTARY WING 
                   AIRCRAFT FROM PORTABLE AIR DEFENSE SYSTEMS AND 
                   ROCKET PROPELLED GRENADES.

       (a) In General.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     submit to Congress a report on technologies for neutralizing 
     or defeating threats to military rotary wing aircraft posed 
     by portable air defense systems and rocket propelled grenades 
     that are being researched, developed, employed, or considered 
     by the United States Government or the North Atlantic Treaty 
     Organization.
       (b) Content.--The report required under subsection (a) 
     shall include--
       (1) an assessment of the expected value and utility of the 
     technologies, particularly with respect to--
       (A) the saving of lives;
       (B) the ability to reduce the vulnerability of aircraft; 
     and
       (C) the enhancement of the ability of aircraft and their 
     crews to accomplish assigned missions;
       (2) an assessment of the potential costs of developing and 
     deploying such technologies;
       (3) a description of efforts undertaken to develop such 
     technologies, including--
       (A) non-lethal counter measures;
       (B) lasers and other systems designed to dazzle, impede, or 
     obscure threatening weapon or their users;
       (C) direct fire response systems;
       (D) directed energy weapons; and
       (E) passive and active systems; and
       (4) a description of any impediments to the development of 
     such technologies, such as legal restrictions under the law 
     of war, treaty restrictions under the Protocol on Blinding 
     Lasers, and political obstacles such as the reluctance of 
     other allied countries to pursue such technologies.

     SEC. 1069. REPORTS ON DEPARTMENT OF JUSTICE EFFORTS TO 
                   INVESTIGATE AND PROSECUTE CASES OF CONTRACTING 
                   ABUSE IN IRAQ, AFGHANISTAN, AND THROUGHOUT THE 
                   WAR ON TERROR.

       (a) Findings.--Congress makes the following findings:
       (1) Waste, fraud, and abuse in contracting are harmful to 
     United States efforts to successfully win the conflicts in 
     Iraq and Afghanistan and succeed in the war on terror. The 
     act of stealing from our soldiers who are daily in harm's way 
     is clearly criminal and must be actively prosecuted.
       (2) It is a vital interest of United States taxpayers to be 
     protected from theft of their tax dollars by corrupt 
     contractors.
       (3) Whistleblower lawsuits are an important tool for 
     exposing waste, fraud, and abuse and can identify serious 
     graft and corruption.
       (4) This issue is of paramount importance to the United 
     States taxpayer, and the Congress must be provided with 
     information about alleged contractor waste, fraud, and abuse 
     taking place in Iraq, Afghanistan, and throughout the war on 
     terror and about the efforts of the Department of Justice to 
     combat these crimes.
       (b) Reports.--
       (1) In general.--Not later than 90 days after the date of 
     the enactment of this Act, and every 180 days thereafter, the 
     Attorney General shall submit to the Committee on the 
     Judiciary and the Committee on Homeland Security and 
     Governmental Affairs of the Senate, the Committee on the 
     Judiciary and the Committee on Government Reform of the House 
     of Representatives, and the congressional defense committees 
     a report on efforts to investigate and prosecute cases of 
     waste, fraud, and abuse under sections 3729 and 3730(b) of 
     title 31, United States Code, or any other related law that 
     are related to Federal contracting in Iraq, Afghanistan, and 
     throughout the war on terror.
       (2) Content.--Each report submitted under paragraph (1) 
     shall include the following:
       (A) Information on organized efforts of the Department of 
     Justice that have been created to ensure that the Department 
     of Justice is investigating, in a timely and appropriate 
     manner, claims of contractor waste, fraud, and abuse related 
     to the activities of the United States Government in Iraq, 
     Afghanistan, and throughout the war on terror.
       (B) Information on the specific number of personnel, 
     financial resources, and workdays devoted to addressing this 
     waste, fraud, and abuse, including a complete listing of all 
     of the offices across the United States and throughout the 
     world that are working on these cases and an explanation of 
     the types of additional resources, both in terms of personnel 
     and finances, that the Department of Justice needs to ensure 
     that all of these cases proceed on a timely basis.
       (C) A detailed description of any internal Department of 
     Justice task force that exists to work specifically on cases 
     of contractor fraud and abuse in Iraq, Afghanistan, and 
     throughout the war on terror, including a description of its 
     action plan, the frequency of its meetings, the level and 
     quantity of staff dedicated to it, its measures for success, 
     the nature and substance of the allegations, and the amount 
     of funds in controversy for each case. If there is a showing 
     of extraordinary circumstances that disclosure of particular 
     information would pose an imminent threat of harm to a 
     relator and be detrimental to the public interest, then this 
     information should be redacted in accordance with standard 
     practices.
       (D) A detailed description of any interagency task force 
     that exists to work specifically on cases of contractor 
     waste, fraud, and abuse in Iraq, Afghanistan, and throughout 
     the war on terror, including its action plan, the frequency 
     of its meetings, the level and quantity of staff dedicated to 
     it, its measures for success, the type, nature, and substance 
     of the allegations, and the amount of funds in controversy 
     for each case. If there is a showing of extraordinary 
     circumstances that disclosure of particular information would 
     pose an imminent threat of harm to a relator and be 
     detrimental to the public interest, then this information 
     should be redacted in accordance with standard practices.
       (E) The names of the senior officials directly responsible 
     for oversight of the efforts to address these cases of 
     contractor waste, fraud, and abuse in Iraq, Afghanistan, and 
     throughout the war on terror.
       (F) Specific information on the number of investigators and 
     other personnel that have been provided to the Department of 
     Justice by other Federal departments and agencies in support 
     of the efforts of the Department of Justice to combat 
     contractor waste, fraud, and abuse in Iraq, Afghanistan, and 
     throughout the war on terror, including data on the quantity 
     of time that these investigators have spent working within 
     the Department of Justice structures dedicated to this 
     effort.
       (G) Specific information on the full number of 
     investigations, including grand jury investigations currently 
     underway, that are addressing these cases of contractor 
     waste, fraud, and abuse in Iraq, Afghanistan, and throughout 
     the war on terror.
       (H) Specific information on the number and status of the 
     criminal cases that have been launched to address contractor 
     waste, fraud, and abuse in Iraq, Afghanistan, and throughout 
     the war on terror.
       (I) Specific information on the number of civil cases that 
     have been filed to address contractor waste, fraud, and abuse 
     in Iraq, Afghanistan, and throughout the war on terror, 
     including specific information on the quantity of cases 
     initiated by private parties, as well as the quantity of 
     cases that

[[Page 13366]]

     have been referred to the Department of Justice by the 
     Department of Defense, the Department of State, and other 
     relevant Federal departments and agencies.
       (J) Specific information on the resolved civil and criminal 
     cases that have been filed to address contractor waste, 
     fraud, and abuse in Iraq, Afghanistan, and throughout the war 
     on terror, including the specific results of these cases, the 
     types of waste, fraud, and abuse that took place, the amount 
     of funds that were returned to the United States Government 
     as a result of resolution of these cases, and a full 
     description of the type and substance of the waste, fraud, 
     and abuse that took place. If there is a showing of 
     extraordinary circumstances that disclosure of particular 
     information would pose an imminent threat of harm to a 
     relator and be detrimental to the public interest, then this 
     information should be redacted in accordance with standard 
     practices.
       (K) The best estimate by the Department of Justice of the 
     scale of the problem of contractor waste, fraud, and abuse in 
     Iraq, Afghanistan, and throughout the war on terror.

     SEC. 1070. REPORT ON BIODEFENSE STAFFING AND TRAINING 
                   REQUIREMENTS IN SUPPORT OF NATIONAL BIOSAFETY 
                   LABORATORIES.

       (a) Study Required.--The Secretary of Defense shall, in 
     consultation with the Secretary of Homeland Security and the 
     Secretary of Health and Human Services, conduct a study to 
     determine the staffing and training requirements for pending 
     capital programs to construct biodefense laboratories 
     (including agriculture and animal laboratories) at Biosafety 
     Level (BSL) 3 and Biosafety Level 4 or to expand current 
     biodefense laboratories to such biosafety levels.
       (b) Elements.--In conducting the study, the Secretary of 
     Defense shall address the following:
       (1) The number of trained personnel, by discipline and 
     qualification level, required for existing biodefense 
     laboratories at Biosafety Level 3 and Biosafety Level 4.
       (2) The number of research and support staff, including 
     researchers, laboratory technicians, animal handlers, 
     facility managers, facility or equipment maintainers, 
     biosecurity personnel (including biosafety, physical, and 
     electronic security personnel), and other safety personnel 
     required to manage biodefense research efforts to combat 
     bioterrorism at the biodefense laboratories described in 
     subsection (a).
       (3) The training required to provide the personnel 
     described by paragraphs (1) and (2), including the type of 
     training (whether classroom, laboratory, or field training) 
     required, the length of training required by discipline, and 
     the curriculum required to be developed for such training.
       (4) Training schedules necessary to meet the scheduled 
     openings of the biodefense laboratories described in 
     subsection (a), including schedules for refresher training 
     and continuing education that may be necessary for that 
     purpose.
       (c) Report.--Not later than December 31, 2006, the 
     Secretary of Defense shall submit to Congress a report 
     setting forth the results of the study conducted under this 
     section.

     SEC. 1070A. ANNUAL REPORT ON ACQUISITIONS OF ARTICLES, 
                   MATERIALS, AND SUPPLIES MANUFACTURED OUTSIDE 
                   THE UNITED STATES.

       (a) In General.--Not later than March 31 of each year, the 
     Department of Defense shall submit a report to Congress on 
     the amount of the acquisitions made by the agency in the 
     preceding fiscal year of articles, materials, or supplies 
     purchased from entities that manufacture the articles, 
     materials, or supplies outside of the United States.
       (b) Content.--Each report required by subsection (a) shall 
     separately indicate--
       (1) the dollar value of any articles, materials, or 
     supplies purchased that were manufactured outside of the 
     United States;
       (2) an itemized list of all waivers granted with respect to 
     such articles, materials, or supplies under the Buy American 
     Act (41 U.S.C. 10a et seq.); and
       (3) a summary of--
       (A) the total procurement funds expended on articles, 
     materials, and supplies manufactured inside the United 
     States; and
       (B) the total procurement funds expended on articles, 
     materials, and supplies manufactured outside the United 
     States.
       (c) Public Availability.--The Department of Defense 
     submitting a report under subsection (a) shall make the 
     report publicly available to the maximum extent practicable.
       (d) Applicability.--This section shall not apply to 
     acquisitions made by an agency, or component thereof, that is 
     an element of the intelligence community as set forth in or 
     designated under section 3(4) of the National Security Act of 
     1947 (50 U.S.C. 401a(4)).

     SEC. 1070B. ANNUAL REPORT ON FOREIGN SALES OF SIGNIFICANT 
                   MILITARY EQUIPMENT MANUFACTURED INSIDE THE 
                   UNITED STATES.

       (a) In General.--Not later than March 31 of each year, the 
     Department of Defense shall submit a report to Congress on 
     foreign military sales and direct sales to foreign customers 
     of significant military equipment manufactured inside the 
     United States.
       (b) Content.--Each report required by subsection (a) shall 
     indicate, for each sale in excess of $2,000,000--
       (1) the nature of the military equipment sold and the 
     dollar value of the sale;
       (2) the country to which the military equipment was sold; 
     and
       (3) the manufacturer of the equipment and the State in 
     which the equipment was manufactured.
       (c) Public Availability.--The Department of Defense shall 
     make reports submitted under this section publicly available 
     to the maximum extent practicable.

     SEC. 1070C. REPORT ON FEASIBILITY OF ESTABLISHING REGIONAL 
                   COMBATANT COMMAND FOR AFRICA.

       (a) In General.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     submit to the congressional defense committees and the 
     Committee on Foreign Relations of the Senate and the 
     Committee on International Relations of the House of 
     Representatives a report on the establishment of a United 
     States Armed Forces regional combatant command for Africa.
       (b) Content.--The report required under subsection (a) 
     shall include--
       (1) a study on the feasibility and desirability of 
     establishing of a United States Armed Forces regional 
     combatant command for Africa;
       (2) an assessment of the benefits and problems associated 
     with establishing such a command; and
       (3) an estimate of the costs, time, and resources needed to 
     establish such a command.

     SEC. 1070D. ANNUAL REPORTS ON EXPANDED USE OF UNMANNED AERIAL 
                   VEHICLES IN THE NATIONAL AIRSPACE SYSTEM.

       (a) Findings.--The Senate makes the following findings:
       (1) Unmanned aerial vehicles (UAVs) serve Department of 
     Defense intelligence, surveillance, reconnaissance, and 
     combat missions.
       (2) Operational reliability of unmanned systems continues 
     to improve and sense-and-avoid technology development and 
     fielding must continue in an effort to provide unmanned 
     aerial systems with an equivalent level of safety to manned 
     aircraft.
       (3) Unmanned aerial vehicles have the potential to support 
     the Nation's homeland defense mission, border security 
     mission, and natural disaster recovery efforts.
       (4) Accelerated development and testing of standards for 
     the integration of unmanned aerial vehicles in the National 
     Airspace System would further the increased safe use of such 
     vehicles for border security, homeland defense, and natural 
     disaster recovery efforts.
       (b) Annual Reports.--Not later than one year after the date 
     of the enactment of this Act and annually thereafter until 
     the Federal Aviation Administration promulgates such policy, 
     the Secretary of Defense shall submit to the Committees on 
     Armed Services, Commerce, Science and Transportation, and 
     Homeland Security and Governmental Affairs of the Senate and 
     the Committees on Armed Services, Energy and Commerce, and 
     Government Reform of the House of Representatives a report on 
     the actions of the Department of Defense to support the 
     development by the Federal Aviation Administration of a 
     policy on the testing and operation of unmanned aerial 
     vehicles in the National Airspace System.

            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'').

[[Page 13367]]

       (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;

[[Page 13368]]

       (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. 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 
     the Quadrennial Defense Review is intended to provide more 
     than an overview of global threats and the general strategic 
     orientation of the Department of Defense.
       (c) Improvements to Quadrennial Defense Review.--
       (1) Conduct of review.--Subsection (b) of section 118 of 
     title 10, United States Code, is amended--
       (A) in paragraph (2), by striking ``and'' at the end;
       (B) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following new paragraph:
       ``(4) to make recommendations that are not constrained to 
     comply with the budget submitted to Congress by the President 
     pursuant to section 1105 of title 31.''.
       (2) Additional element in report to congress.--Subsection 
     (d) of such section is amended--
       (A) in paragraph (1), by inserting ``, the strategic 
     planning guidance,'' after ``United States'';
       (B) by redesignating paragraphs (9) through (15) as 
     paragraphs (10) through (16), respectively; and
       (C) by inserting after paragraph (8) the following new 
     paragraph (9):
       ``(9) The specific capabilities, including the general 
     number and type of specific military platforms, needed to 
     achieve the strategic and warfighting objectives identified 
     in the review.''.
       (3) CJCS review.--Subsection (e)(1) of such section is 
     amended by inserting before the period at the end the 
     following: `` and a description of the capabilities needed to 
     address such risk''.
       (4) Independent assessment.--Such section is further 
     amended by adding at the end the following new subsection:
       ``(f) Independent Assessment.--(1) Not later than one year 
     before the date a report on a quadrennial defense review is 
     to be submitted to Congress under subsection (d), the 
     President shall appoint a panel to conduct an independent 
     assessment of the review.
       ``(2) The panel appointed under paragraph (1) shall be 
     composed of seven individuals (who may not be employees of 
     the Department of Defense) as follows:
       ``(A) Three members shall be appointed by the President.
       ``(B) One member shall be appointed by the President in 
     consultation with, and based on the recommendations of, the 
     Speaker of the House of Representatives.
       ``(C) One member shall be appointed by the President in 
     consultation with, and based on the recommendations of, the 
     Minority Leader of the House of Representatives.
       ``(D) One member shall be appointed by the President in 
     consultation with, and based on the recommendations of, the 
     Majority Leader of the Senate.
       ``(E) One member shall be appointed by the President in 
     consultation with, and based on the recommendations of, the 
     Minority Leader of the Senate.
       ``(3) Not later than three months after the date that the 
     report on a quadrennial defense review is submitted to 
     Congress under subsection (d), the panel appointed under 
     paragraph (2) shall provide to the congressional defense 
     committees an assessment of the assumptions, planning 
     guidelines, recommendations, and realism of the review.''.

     SEC. 1084. SENSE OF CONGRESS ON THE COMMENDABLE ACTIONS OF 
                   THE ARMED FORCES.

       (a) Findings.--Congress finds that--
       (1) on June 7, 2006, the United States Armed Forces 
     conducted an air raid near the City of Baquba, northeast of 
     Baghdad, Iraq, that resulted in the death of Ahmad Fadeel al-
     Nazal al-Khalayleh, better known as Abu Musab al-Zarqawi, the 
     leader of the al-Qaeda in Iraq terrorist organization and the 
     most wanted terrorist in Iraq;
       (2) Zarqawi, as the operational commander of al-Qaeda in 
     Iraq, led a brutal campaign of suicide bombings, car 
     bombings, assassinations, and abductions that caused the 
     deaths of many members of the United States Armed Forces, 
     civilian officials of the United States Government, thousands 
     of innocent Iraqi civilians, and innocent civilians of other 
     nations;
       (3) Zarqawi publicly swore his allegiance to Osama bin 
     Laden and al-Qaeda in 2004, and changed the name of his 
     terrorist organization from the ``Monotheism and Holy War 
     Group'' to ``al-Qaeda in Iraq'';
       (4) in an audiotape broadcast in December 2004, Osama bin 
     Laden, the leader of al- Qaeda's worldwide terrorist 
     organization, called Zarqawi ``the prince of al-Qaeda in 
     Iraq'';
       (5) 3 perpetrators confessed to being paid by Zarqawi to 
     carry out the October 2002 assassination of the United States 
     diplomat, Lawrence Foley, in Amman, Jordan;
       (6) the Monotheism and Holy War Group claimed 
     responsibility for--
       (A) the August 2003 suicide attack that destroyed the 
     United Nations headquarters in Baghdad and killed the United 
     Nations envoy to Iraq Sergio Vieira de Mello along with 21 
     other people; and
       (B) the suicide attack on the Imam Ali Mosque in Najaf that 
     occurred less than 2 weeks later, which killed at least 85 
     people, including the Ayatollah Sayed Mohammed Baqr al-Hakim, 
     and wounded dozens more;
       (7) Zarqawi is believed to have personally beheaded 
     American hostage Nicholas Berg in May 2004;
       (8) in May 2004, Zarqawi was implicated in a car bombing 
     that killed Izzadine Salim, the rotating president of the 
     Iraqi Governing Council;
       (9) in November 2005, al-Qaeda in Iraq attacked 3 hotels in 
     Amman, Jordan, killing at least 67 innocent civilians;
       (10) Zarqawi and his terrorist organization were directly 
     responsible for numerous other brutal terrorist attacks 
     against the American and coalition troops, Iraqi security 
     forces and recruits, and innocent Iraqi civilians;
       (11) Zarqawi sought to turn Iraq into a safe haven for al-
     Qaeda;
       (12) to achieve that end, Zarqawi stated his opposition to 
     the democratically elected government of Iraq and worked to 
     divide the Iraqi people, foment sectarian violence, and 
     incite a civil war in Iraq; and
       (13) the men and women of the United States Armed Forces, 
     the intelligence community, and other agencies, along with 
     coalition partners and the Iraqi Security Forces, should be 
     commended for their courage and extraordinary efforts to 
     track down the most wanted terrorist in Iraq and to secure a 
     free and prosperous future for the people of Iraq.

[[Page 13369]]

       (b) Sense of Congress.--It is the sense of Congress that 
     Congress--
       (1) commends the United States Armed Forces, the 
     intelligence community, and other agencies, along with 
     coalition partners, for the actions taken through June 7, 
     2006, that resulted in the death of Abu Musab al-Zarqawi, the 
     leader of the al-Qaeda in Iraq terrorist organization and the 
     most wanted terrorist in Iraq;
       (2) commends the United States Armed Forces, the 
     intelligence community, and other agencies for this action 
     and their exemplary performance in striving to bring freedom, 
     democracy, and security to the people of Iraq;
       (3) commends the coalition partners of the United States, 
     the new government of Iraq, and members of the Iraqi Security 
     Forces for their invaluable assistance in that operation and 
     their extraordinary efforts to secure a free and prosperous 
     Iraq;
       (4) commends our civilian and military leadership for their 
     continuing efforts to eliminate the leadership of al-Qaeda in 
     Iraq, and also commends the new government of Iraq, led by 
     Prime Minister Jawad al-Maliki, for its contribution to that 
     achievement;
       (5) recognizes that the death of Abu Musab al-Zarqawi is a 
     victory for American and coalition forces in the global war 
     on terror and a blow to the al-Qaeda terrorist organization;
       (6) commends the Iraqi Prime Minister Jawad al-Maliki on 
     the finalization of the new Iraqi cabinet;
       (7) urges the democratically elected government in Iraq to 
     use this opportunity to defeat the terrorist enemy, to put an 
     end to ethnic and sectarian violence, and to achieve a free, 
     prosperous, and secure future for Iraq; and
       (8) affirms that the Senate will continue to support the 
     United States Armed Forces, the democratically elected unity 
     government of Iraq, and the people of Iraq in their quest to 
     secure a free, prosperous, and democratic Iraq.

     SEC. 1085. BUDGETING FOR ONGOING MILITARY OPERATIONS.

       The President's budget submitted pursuant to section 
     1105(a) of title 31, United States Code, for each fiscal year 
     after fiscal year 2007 shall include--
       (1) a request for funds for such fiscal year for ongoing 
     military operations in Afghanistan and Iraq;
       (2) an estimate of all funds expected to be required in 
     that fiscal year for such operations; and
       (3) a detailed justification of the funds requested.

     SEC. 1086. COURT SECURITY IMPROVEMENTS.

       (a) Judicial Branch Security Requirements.--
       (1) Ensuring consultation and coordination with the 
     judiciary.--Section 566 of title 28, United States Code, is 
     amended by adding at the end the following:
       ``(i) The Director of the United States Marshals Service 
     shall consult and coordinate with the Judicial Conference of 
     the United States on a continuing basis regarding the 
     security requirements for the judicial branch of the United 
     States Government.''.
       (2) Conforming amendment.--Section 331 of title 28, United 
     States Code, is amended by adding at the end the following:
       ``The Judicial Conference shall consult and coordinate with 
     the Director of United States Marshals Service on a 
     continuing basis regarding the security requirements for the 
     judicial branch of the United States Government.''.
       (b) Protection of Family Members.--Section 105(b)(3) of the 
     Ethics in Government Act of 1978 (5 U.S.C. App.) is amended--
       (1) in subparagraph (A), by inserting ``or a family member 
     of that individual'' after ``that individual''; and
       (2) in subparagraph (B)(i), by inserting ``or a family 
     member of that individual'' after ``the report''.
       (c) Extension of Sunset Provision.--Section 105(b)(3) of 
     the Ethics in Government Act of 1978 (5 U.S.C. App.) is 
     amended by striking ``2005'' each place that term appears and 
     inserting ``2009''.
       (d) Protections Against Malicious Recording of Fictitious 
     Liens Against Federal Judges and Federal Law Enforcement 
     Officers.--
       (1) Offense.--Chapter 73 of title 18, United States Code, 
     is amended by adding at the end the following:

     ``SEC. 1521. RETALIATING AGAINST A FEDERAL JUDGE OR FEDERAL 
                   LAW ENFORCEMENT OFFICER BY FALSE CLAIM OR 
                   SLANDER OF TITLE.

       ``(a) Whoever files or attempts to file, in any public 
     record or in any private record which is generally available 
     to the public, any false lien or encumbrance against the real 
     or personal property of a Federal judge or a Federal law 
     enforcement official, on account of the performance of 
     official duties by that Federal judge or Federal law 
     enforcement official, knowing or having reason to know that 
     such lien or encumbrance is false or contains any materially 
     false, fictitious, or fraudulent statement or representation, 
     shall be fined under this title or imprisoned for not more 
     than 10 years, or both.
       ``(b) As used in this section--
       ``(1) the term `Federal judge' means a justice or judge of 
     the United States as defined in section 451 of title 28, 
     United States Code, a judge of the United States Court of 
     Federal Claims, a United States bankruptcy judge, a United 
     States magistrate judge, and a judge of the United States 
     Court of Appeals for the Armed Forces, United States Court of 
     Appeals for Veterans Claims, United States Tax Court, 
     District Court of Guam, District Court of the Northern 
     Mariana Islands, or District Court of the Virgin Islands; and
       ``(2) the term `Federal law enforcement officer' has the 
     meaning given that term in section 115 of this title and 
     includes an attorney who is an officer or employee of the 
     United States in the executive branch of the Government.''.
       (2) Clerical amendment.--The chapter analysis for chapter 
     73 of title 18, United States Code, is amended by adding at 
     the end the following new item:

``1521. Retaliating against a Federal judge or Federal law enforcement 
              officer by false claim or slander of title.''.

       (e) Protection of Individuals Performing Certain Official 
     Duties.--
       (1) Offense.--Chapter 7 of title 18, United States Code, is 
     amended by adding at the end the following:

     ``SEC. 118. PROTECTION OF INDIVIDUALS PERFORMING CERTAIN 
                   OFFICIAL DUTIES.

       ``(a) Whoever knowingly makes restricted personal 
     information about a covered official, or a member of the 
     immediate family of that covered official, publicly 
     available, with the intent that such restricted personal 
     information be used to kill, kidnap, or inflict bodily harm 
     upon, or to threaten to kill, kidnap, or inflict bodily harm 
     upon, that covered official, or a member of the immediate 
     family of that covered official, shall be fined under this 
     title and imprisoned not more than 5 years, or both.
       ``(b) As used in this section--
       ``(1) the term `restricted personal information' means, 
     with respect to an individual, the Social Security number, 
     the home address, home phone number, mobile phone number, 
     personal email, or home fax number of, and identifiable to, 
     that individual;
       ``(2) the term `covered official' means--
       ``(A) an individual designated in section 1114;
       ``(B) a Federal judge or Federal law enforcement officer as 
     those terms are defined in section 1521; or
       ``(C) a grand or petit juror, witness, or other officer in 
     or of, any court of the United States, or an officer who may 
     be serving at any examination or other proceeding before any 
     United States magistrate judge or other committing 
     magistrate; and
       ``(3) the term `immediate family' has the same meaning 
     given that term in section 115(c)(2).''.
       (2) Clerical amendment.--The chapter analysis for chapter 7 
     of title 18, United States Code, is amended by adding at the 
     end the following:

``Sec. 117. Domestic assault by an habitual offender.
``Sec. 118. Protection of individuals performing certain official 
              duties.''.

       (f) Prohibition of Possession of Dangerous Weapons in 
     Federal Court Facilities.--Section 930(e)(1) of title 18, 
     United States Code, is amended by inserting ``or other 
     dangerous weapon'' after ``firearm''.
       (g) Clarification of Venue for Retaliation Against a 
     Witness.--Section 1513 of title 18, United States Code, is 
     amended by adding at the end the following:
       ``(g) A prosecution under this section may be brought in 
     the district in which the official proceeding (whether or not 
     pending, about to be instituted or completed) was intended to 
     be affected, or in which the conduct constituting the alleged 
     offense occurred.''.
       (h) Witness Protection Grant Program.--Title I of the 
     Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 
     3711 et seq.) is amended by adding at the end the following 
     new part:

                  ``PART JJ--WITNESS PROTECTION GRANTS

     ``SEC. 3001. PROGRAM AUTHORIZED.

       ``(a) In General.--From amounts made available to carry out 
     this part, the Attorney General may make grants to States, 
     units of local government, and Indian tribes to create and 
     expand witness protection programs in order to prevent 
     threats, intimidation, and retaliation against victims of, 
     and witnesses to, crimes.
       ``(b) Uses of Funds.--Grants awarded under this part shall 
     be--
       ``(1) distributed directly to the State, unit of local 
     government, or Indian tribe; and
       ``(2) used for the creation and expansion of witness 
     protection programs in the jurisdiction of the grantee.
       ``(c) Preferential Consideration.--In awarding grants under 
     this part, the Attorney General may give preferential 
     consideration, if feasible, to an application from a 
     jurisdiction that--
       ``(1) has the greatest need for witness and victim 
     protection programs;
       ``(2) has a serious violent crime problem in the 
     jurisdiction; and
       ``(3) has had, or is likely to have, instances of threats, 
     intimidation, and retaliation against victims of, and 
     witnesses to, crimes.

[[Page 13370]]

       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $20,000,000 for each of fiscal years 2006 through 2010.''.
       (i) Grants to States To Protect Witnesses and Victims of 
     Crimes.--
       (1) In general.--Section 31702 of the Violent Crime Control 
     and Law Enforcement Act of 1994 (42 U.S.C. 13862) is 
     amended--
       (A) in paragraph (3), by striking ``and'' at the end;
       (B) in paragraph (4), by striking the period and inserting 
     ``; and''; and
       (C) by adding at the end the following:
       ``(5) to create and expand witness and victim protection 
     programs to prevent threats, intimidation, and retaliation 
     against victims of, and witnesses to, violent crimes.''.
       (2) Authorization of appropriations.--Section 31707 of the 
     Violent Crime Control and Law Enforcement Act of 1994 (42 
     U.S.C. 13867) is amended to read as follows:

     ``SEC. 31707. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated $20,000,000 for 
     each of the fiscal years 2006 through 2010 to carry out this 
     subtitle.''.
       (j) Eligibility of State Courts for Certain Federal 
     Grants.--
       (1) Correctional options grants.--Section 515 of the 
     Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 
     3762a) is amended--
       (A) in subsection (a)--
       (i) in paragraph (2), by striking ``and'' at the end;
       (ii) in paragraph (3), by striking the period and inserting 
     ``; and''; and
       (iii) by adding at the end the following:
       ``(4) grants to State courts to improve security for State 
     and local court systems.''; and
       (B) in subsection (b), by inserting after the period the 
     following:
     ``Priority shall be given to State court applicants under 
     subsection (a)(4) that have the greatest demonstrated need to 
     provide security in order to administer justice.''.
       (2) Allocations.--Section 516(a) of the Omnibus Crime 
     Control and Safe Streets Act of 1968 (42 U.S.C. 3762b) is 
     amended by--
       (A) striking ``80'' and inserting ``70'';
       (B) striking ``and 10'' and inserting ``10''; and
       (C) inserting before the period the following: ``, and 10 
     percent for section 515(a)(4)''.
       (k) Bankruptcy, Magistrate, and Territorial Judges Life 
     Insurance.--
       (1) Bankruptcy judges.--Section 153 of title 28, United 
     States Code, is amended by adding at the end the following:
       ``(e) For purposes of construing and applying chapter 87 of 
     title 5, United States Code, including any adjustment of 
     insurance rates by regulation or otherwise, a bankruptcy 
     judge of the United States in regular active service or who 
     is retired under section 377 of this title shall be deemed to 
     be a judge of the United States described under section 
     8701(a)(5) of title 5.''.
       (2) United states magistrate judges.--Section 634(c) of 
     title 28, United States Code, is amended--
       (A) by inserting ``(1)'' after ``(c)''; and
       (B) by adding at the end the following:
       ``(2) For purposes of construing and applying chapter 87 of 
     title 5, United States Code, including any adjustment of 
     insurance rates by regulation or otherwise, a magistrate 
     judge of the United States in regular active service or who 
     is retired under section 377 of this title shall be deemed to 
     be a judge of the United States described under section 
     8701(a)(5) of title 5.''.
       (3) Territorial judges.--
       (A) Guam.--Section 24 of the Organic Act of Guam (48 U.S.C. 
     1424b) is amended by adding at the end the following:
       ``(c) For purposes of construing and applying chapter 87 of 
     title 5, United States Code, including any adjustment of 
     insurance rates by regulation or otherwise, a judge appointed 
     under this section who is in regular active service or who is 
     retired under section 373 of title 28, United States Code, 
     shall be deemed to be a judge of the United States described 
     under section 8701(a)(5) of title 5.''.
       (B) Commonwealth of the northern mariana islands.--Section 
     1(b) of the Act of November 8, 1977 (48 U.S.C. 1821) is 
     amended by adding at the end the following:
       ``(5) For purposes of construing and applying chapter 87 of 
     title 5, United States Code, including any adjustment of 
     insurance rates by regulation or otherwise, a judge appointed 
     under this section who is in regular active service or who is 
     retired under section 373 of title 28, United States Code, 
     shall be deemed to be a judge of the United States described 
     under section 8701(a)(5) of title 5.''.
       (C) Virgin islands.--Section 24(a) of the Revised Organic 
     Act of the Virgin Islands (48 U.S.C. 1614(a)) is amended--
       (i) by inserting ``(1)'' after ``(a)''; and
       (ii) by adding at the end the following:
       ``(2) For purposes of construing and applying chapter 87 of 
     title 5, United States Code, including any adjustment of 
     insurance rates by regulation or otherwise, a judge appointed 
     under this section who is in regular active service or who is 
     retired under section 373 of title 28, United States Code, 
     shall be deemed to be a judge of the United States described 
     under section 8701(a)(5) of title 5.''.
       (m) Health Insurance for Surviving Family and Spouses of 
     Judges.--Section 8901(3) of title 5, United States Code, is 
     amended--
       (1) in subparagraph (C), by striking ``; and'' and 
     inserting a semicolon;
       (2) in subparagraph (D), by adding ``and'' after the 
     semicolon; and
       (3) by adding at the end the following:
       ``(E) a member of a family who is a survivor of--
       ``(i) a Justice or judge of the United States, as defined 
     under section 451 of title 28, United States Code;
       ``(ii) a judge of the District Court of Guam, the District 
     Court of the Northern Mariana Islands, or the District Court 
     of the Virgin Islands;
       ``(iii) a judge of the United States Court of Federal 
     Claims; or
       ``(iv) a United States bankruptcy judge or a full-time 
     United States magistrate judge.''.

     SEC. 1087. SENSE OF THE SENATE ON DESTRUCTION OF CHEMICAL 
                   WEAPONS.

       (a) Findings.--The Senate makes the following findings:
       (1) The Convention on the Prohibition of the Development, 
     Production, Stockpiling and Use of Chemical Weapons and on 
     Their Destruction, done at Paris on January 13, 1993 
     (commonly referred to as the ``Chemical Weapons 
     Convention''), requires all United States chemical weapons 
     stockpiles be destroyed by no later than the extended 
     deadline of April 29, 2012.
       (2) On April 10, 2006, the Department of Defense notified 
     Congress that the United States would not meet even the 
     extended deadline under the Chemical Weapons Convention for 
     destruction of United States chemical weapons stockpiles.
       (3) Destroying existing chemical weapons is a homeland 
     security imperative, an arms control priority, and required 
     by United States law.
       (4) The elimination and nonproliferation of chemical 
     weapons of mass destruction is of utmost importance to the 
     national security of the United States.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) the United States is committed to making every effort 
     to safely dispose of its chemical weapons stockpiles by the 
     Chemical Weapons Convention deadline of April 29, 2012, or as 
     soon thereafter as possible, and will carry out all of its 
     other obligations under the Convention;
       (2) the Secretary of Defense should prepare a comprehensive 
     schedule for safely destroying the United States chemical 
     weapons stockpiles to prevent further delays in the 
     destruction of such stockpiles, and the schedule should be 
     submitted annually to the congressional defense committees 
     separately or as part of another required report; and
       (3) the Secretary of Defense should make every effort to 
     ensure adequate funding to complete the elimination of the 
     United States chemical weapons stockpile in the shortest time 
     possible, consistent with the requirement to protect public 
     health, safety, and the environment.

     SEC. 1088. IMPROVED ACCOUNTABILITY FOR COMPETITIVE 
                   CONTRACTING IN HURRICANE RECOVERY.

       The exceptions to full and open competition otherwise 
     available under paragraphs (2), (3), (4), and (5) of section 
     303(c) of the Federal Property and Administrative Services 
     Act of 1949 (41 U.S.C. 253(c)) and paragraphs (2), (3), (4), 
     and (5) of section 2304(c) of title 10, United States Code, 
     shall not apply to Federal contracts worth over $500,000 for 
     the procurement of property or services in connection with 
     relief and recovery efforts related to Hurricane Katrina and 
     the other hurricanes of the 2005 season.

     SEC. 1089. PROTECTION OF CERTAIN DISCLOSURES OF INFORMATION 
                   BY FEDERAL EMPLOYEES.

       (a) Short Title.--This Act may be cited as the ``Federal 
     Employee Protection of Disclosures Act''.
       (b) Clarification of Disclosures Covered.--Section 
     2302(b)(8) of title 5, United States Code, is amended--
       (1) in subparagraph (A)--
       (A) by striking ``which the employee or applicant 
     reasonably believes evidences'' and inserting ``, without 
     restriction to time, place, form, motive, context, or prior 
     disclosure made to any person by an employee or applicant, 
     including a disclosure made in the ordinary course of an 
     employee's duties, that the employee or applicant reasonably 
     believes is evidence of''; and
       (B) in clause (i), by striking ``a violation'' and 
     inserting ``any violation'';
       (2) in subparagraph (B)--
       (A) by striking ``which the employee or applicant 
     reasonably believes evidences'' and inserting ``, without 
     restriction to time, place, form, motive, context, or prior 
     disclosure made to any person by an employee or applicant, 
     including a disclosure made in the ordinary course of an 
     employee's duties, of information that the employee or 
     applicant reasonably believes is evidence of''; and
       (B) in clause (i), by striking ``a violation'' and 
     inserting ``any violation (other than a violation of this 
     section)''; and
       (3) by adding at the end the following:
       ``(C) any disclosure that--
       ``(i) is made by an employee or applicant of information 
     required by law or Executive

[[Page 13371]]

     order to be kept secret in the interest of national defense 
     or the conduct of foreign affairs that the employee or 
     applicant reasonably believes is direct and specific evidence 
     of--

       ``(I) any violation of any law, rule, or regulation;
       ``(II) gross mismanagement, a gross waste of funds, an 
     abuse of authority, or a substantial and specific danger to 
     public health or safety; or
       ``(III) a false statement to Congress on an issue of 
     material fact; and

       ``(ii) is made to--

       ``(I) a member of a committee of Congress having a primary 
     responsibility for oversight of a department, agency, or 
     element of the Federal Government to which the disclosed 
     information relates and who is authorized to receive 
     information of the type disclosed;
       ``(II) any other Member of Congress who is authorized to 
     receive information of the type disclosed; or
       ``(III) an employee of Congress who has the appropriate 
     security clearance and is authorized to receive information 
     of the type disclosed.''.

       (c) Covered Disclosures.--Section 2302(a)(2) of title 5, 
     United States Code, is amended--
       (1) in subparagraph (B)(ii), by striking ``and'' at the 
     end;
       (2) in subparagraph (C)(iii), by striking the period at the 
     end and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(D) `disclosure' means a formal or informal communication 
     or transmission, but does not include a communication 
     concerning policy decisions that lawfully exercise 
     discretionary authority unless the employee providing the 
     disclosure reasonably believes that the disclosure 
     evidences--
       ``(i) any violation of any law, rule, or regulation; or
       ``(ii) gross mismanagement, a gross waste of funds, an 
     abuse of authority, or a substantial and specific danger to 
     public health or safety.''.
       (d) Rebuttable Presumption.--Section 2302(b) of title 5, 
     United States Code, is amended by amending the matter 
     following paragraph (12) to read as follows:
     ``This subsection shall not be construed to authorize the 
     withholding of information from Congress or the taking of any 
     personnel action against an employee who discloses 
     information to Congress, except that an employee or applicant 
     may be disciplined for the disclosure of information 
     described in paragraph (8)(C)(i) to a Member or employee of 
     Congress who is not authorized to receive such information. 
     For purposes of paragraph (8), any presumption relating to 
     the performance of a duty by an employee who has authority to 
     take, direct others to take, recommend, or approve any 
     personnel action may be rebutted by substantial evidence. For 
     purposes of paragraph (8), a determination as to whether an 
     employee or applicant reasonably believes that they have 
     disclosed information that evidences any violation of law, 
     rule, regulation, gross mismanagement, a gross waste of 
     funds, an abuse of authority, or a substantial and specific 
     danger to public health or safety shall be made by 
     determining whether a disinterested observer with knowledge 
     of the essential facts known to and readily ascertainable by 
     the employee could reasonably conclude that the actions of 
     the Government evidence such violations, mismanagement, 
     waste, abuse, or danger.''.
       (e) Nondisclosure Policies, Forms, and Agreements; Security 
     Clearances; and Retaliatory Investigations.--
       (1) Personnel action.--Section 2302(a)(2)(A) of title 5, 
     United States Code, is amended--
       (A) in clause (x), by striking ``and'' after the semicolon; 
     and
       (B) by redesignating clause (xi) as clause (xiv) and 
     inserting after clause (x) the following:
       ``(xi) the implementation or enforcement of any 
     nondisclosure policy, form, or agreement;
       ``(xii) a suspension, revocation, or other determination 
     relating to a security clearance or any other access 
     determination by a covered agency;
       ``(xiii) an investigation, other than any ministerial or 
     nondiscretionary fact finding activities necessary for the 
     agency to perform its mission, of an employee or applicant 
     for employment because of any activity protected under this 
     section; and''
       (2) Prohibited personnel practice.--Section 2302(b) of 
     title 5, United States Code, is amended--
       (A) in paragraph (11), by striking ``or'' at the end;
       (B) in paragraph (12), by striking the period and inserting 
     a semicolon; and
       (C) by inserting after paragraph (12) the following:
       ``(13) implement or enforce any nondisclosure policy, form, 
     or agreement, if such policy, form, or agreement does not 
     contain the following statement: `These provisions are 
     consistent with and do not supersede, conflict with, or 
     otherwise alter the employee obligations, rights, or 
     liabilities created by Executive Order No. 12958; section 
     7211 of title 5, United States Code (governing disclosures to 
     Congress); section 1034 of title 10, United States Code 
     (governing disclosure to Congress by members of the 
     military); section 2302(b)(8) of title 5, United States Code 
     (governing disclosures of illegality, waste, fraud, abuse, or 
     public health or safety threats); the Intelligence Identities 
     Protection Act of 1982 (50 U.S.C. 421 et seq.) (governing 
     disclosures that could expose confidential Government 
     agents); and the statutes which protect against disclosures 
     that could compromise national security, including sections 
     641, 793, 794, 798, and 952 of title 18, United States Code, 
     and section 4(b) of the Subversive Activities Control Act of 
     1950 (50 U.S.C. 783(b)). The definitions, requirements, 
     obligations, rights, sanctions, and liabilities created by 
     such Executive order and such statutory provisions are 
     incorporated into this agreement and are controlling'; or
       ``(14) conduct, or cause to be conducted, an investigation, 
     other than any ministerial or nondiscretionary fact finding 
     activities necessary for the agency to perform its mission, 
     of an employee or applicant for employment because of any 
     activity protected under this section.''.
       (3) Board and court review of actions relating to security 
     clearances.--
       (A) In general.--Chapter 77 of title 5, United States Code, 
     is amended by inserting after section 7702 the following:

     ``Sec. 7702a. Actions relating to security clearances

       ``(a) In any appeal relating to the suspension, revocation, 
     or other determination relating to a security clearance or 
     access determination, the Merit Systems Protection Board or 
     any reviewing court--
       ``(1) shall determine whether paragraph (8) or (9) of 
     section 2302(b) was violated;
       ``(2) may not order the President or the designee of the 
     President to restore a security clearance or otherwise 
     reverse a determination of clearance status or reverse an 
     access determination; and
       ``(3) subject to paragraph (2), may issue declaratory 
     relief and any other appropriate relief.
       ``(b)(1) If, in any final judgment, the Board or court 
     declares that any suspension, revocation, or other 
     determination with regard to a security clearance or access 
     determination was made in violation of paragraph (8) or (9) 
     of section 2302(b), the affected agency shall conduct a 
     review of that suspension, revocation, access determination, 
     or other determination, giving great weight to the Board or 
     court judgment.
       ``(2) Not later than 30 days after any Board or court 
     judgment declaring that a security clearance suspension, 
     revocation, access determination, or other determination was 
     made in violation of paragraph (8) or (9) of section 2302(b), 
     the affected agency shall issue an unclassified report to the 
     congressional committees of jurisdiction (with a classified 
     annex if necessary), detailing the circumstances of the 
     agency's security clearance suspension, revocation, other 
     determination, or access determination. A report under this 
     paragraph shall include any proposed agency action with 
     regard to the security clearance or access determination.
       ``(c) An allegation that a security clearance or access 
     determination was revoked or suspended in retaliation for a 
     protected disclosure shall receive expedited review by the 
     Office of Special Counsel, the Merit Systems Protection 
     Board, and any reviewing court.
       ``(d) For purposes of this section, corrective action may 
     not be ordered if the agency demonstrates by a preponderance 
     of the evidence that it would have taken the same personnel 
     action in the absence of such disclosure.''.
       (B) Technical and conforming amendment.--The table of 
     sections for chapter 77 of title 5, United States Code, is 
     amended by inserting after the item relating to section 7702 
     the following:

``7702a. Actions relating to security clearances.''.

       (f) Exclusion of Agencies by the President.--Section 
     2302(a)(2)(C) of title 5, United States Code, is amended by 
     striking clause (ii) and inserting the following:
       ``(ii)(I) the Federal Bureau of Investigation, the Central 
     Intelligence Agency, the Defense Intelligence Agency, the 
     National Imagery and Mapping Agency, the National Security 
     Agency; and
       ``(II) as determined by the President, any executive agency 
     or unit thereof the principal function of which is the 
     conduct of foreign intelligence or counterintelligence 
     activities, if the determination (as that determination 
     relates to a personnel action) is made before that personnel 
     action; or''.
       (g) Attorney Fees.--Section 1204(m)(1) of title 5, United 
     States Code, is amended by striking ``agency involved'' and 
     inserting ``agency where the prevailing party is employed or 
     has applied for employment''.
       (h) Disciplinary Action.--Section 1215(a)(3) of title 5, 
     United States Code, is amended to read as follows:
       ``(3)(A) A final order of the Board may impose--
       ``(i) disciplinary action consisting of removal, reduction 
     in grade, debarment from Federal employment for a period not 
     to exceed 5 years, suspension, or reprimand;
       ``(ii) an assessment of a civil penalty not to exceed 
     $1,000; or
       ``(iii) any combination of disciplinary actions described 
     under clause (i) and an assessment described under clause 
     (ii).

[[Page 13372]]

       ``(B) In any case in which the Board finds that an employee 
     has committed a prohibited personnel practice under paragraph 
     (8) or (9) of section 2302(b), the Board shall impose 
     disciplinary action if the Board finds that the activity 
     protected under paragraph (8) or (9) of section 2302(b) was a 
     significant motivating factor, even if other factors also 
     motivated the decision, for the employee's decision to take, 
     fail to take, or threaten to take or fail to take a personnel 
     action, unless that employee demonstrates, by preponderance 
     of evidence, that the employee would have taken, failed to 
     take, or threatened to take or fail to take the same 
     personnel action, in the absence of such protected 
     activity.''.
       (i) Special Counsel Amicus Curiae Appearance.--Section 1212 
     of title 5, United States Code, is amended by adding at the 
     end the following:
       ``(h)(1) The Special Counsel is authorized to appear as 
     amicus curiae in any action brought in a court of the United 
     States related to any civil action brought in connection with 
     section 2302(b) (8) or (9), or subchapter III of chapter 73, 
     or as otherwise authorized by law. In any such action, the 
     Special Counsel is authorized to present the views of the 
     Special Counsel with respect to compliance with section 
     2302(b) (8) or (9) or subchapter III of chapter 73 and the 
     impact court decisions would have on the enforcement of such 
     provisions of law.
       ``(2) A court of the United States shall grant the 
     application of the Special Counsel to appear in any such 
     action for the purposes described in subsection (a).''.
       (j) Judicial Review.--
       (1) In general.--Section 7703(b)(1) of title 5, United 
     States Code, is amended to read as follows:
       ``(b)(1)(A) Except as provided in subparagraph (B) and 
     paragraph (2), a petition to review a final order or final 
     decision of the Board shall be filed in the United States 
     Court of Appeals for the Federal Circuit. Notwithstanding any 
     other provision of law, any petition for review must be filed 
     within 60 days after the date the petitioner received notice 
     of the final order or decision of the Board.
       ``(B) During the 5-year period beginning on the effective 
     date of the Federal Employee Protection of Disclosures Act, a 
     petition to review a final order or final decision of the 
     Board in a case alleging a violation of paragraph (8) or (9) 
     of section 2302(b) shall be filed in the United States Court 
     of Appeals for the Federal Circuit or any court of appeals of 
     competent jurisdiction as provided under subsection 
     (b)(2).''.
       (2) Review obtained by office of personnel management.--
     Section 7703(d) of title 5, United States Code, is amended to 
     read as follows:
       ``(d)(1) Except as provided under paragraph (2), this 
     paragraph shall apply to any review obtained by the Director 
     of the Office of Personnel Management. The Director of the 
     Office of Personnel Management may obtain review of any final 
     order or decision of the Board by filing, within 60 days 
     after the date the Director received notice of the final 
     order or decision of the Board, a petition for judicial 
     review in the United States Court of Appeals for the Federal 
     Circuit if the Director determines, in his discretion, that 
     the Board erred in interpreting a civil service law, rule, or 
     regulation affecting personnel management and that the 
     Board's decision will have a substantial impact on a civil 
     service law, rule, regulation, or policy directive. If the 
     Director did not intervene in a matter before the Board, the 
     Director may not petition for review of a Board decision 
     under this section unless the Director first petitions the 
     Board for a reconsideration of its decision, and such 
     petition is denied. In addition to the named respondent, the 
     Board and all other parties to the proceedings before the 
     Board shall have the right to appear in the proceeding before 
     the Court of Appeals. The granting of the petition for 
     judicial review shall be at the discretion of the Court of 
     Appeals.
       ``(2) During the 5-year period beginning on the effective 
     date of the Federal Employee Protection of Disclosures Act, 
     this paragraph shall apply to any review relating to 
     paragraph (8) or (9) of section 2302(b) obtained by the 
     Director of the Office of Personnel Management. The Director 
     of the Office of Personnel Management may obtain review of 
     any final order or decision of the Board by filing, within 60 
     days after the date the Director received notice of the final 
     order or decision of the Board, a petition for judicial 
     review in the United States Court of Appeals for the Federal 
     Circuit or any court of appeals of competent jurisdiction as 
     provided under subsection (b)(2) if the Director determines, 
     in his discretion, that the Board erred in interpreting 
     paragraph (8) or (9) of section 2302(b). If the Director did 
     not intervene in a matter before the Board, the Director may 
     not petition for review of a Board decision under this 
     section unless the Director first petitions the Board for a 
     reconsideration of its decision, and such petition is denied. 
     In addition to the named respondent, the Board and all other 
     parties to the proceedings before the Board shall have the 
     right to appear in the proceeding before the court of 
     appeals. The granting of the petition for judicial review 
     shall be at the discretion of the Court of Appeals.''.
       (k) Nondisclosure Policies, Forms, and Agreements.--
       (1) In general.--
       (A) Requirement.--Each agreement in Standard Forms 312 and 
     4414 of the Government and any other nondisclosure policy, 
     form, or agreement of the Government shall contain the 
     following statement: ``These restrictions are consistent with 
     and do not supersede, conflict with, or otherwise alter the 
     employee obligations, rights, or liabilities created by 
     Executive Order No. 12958; section 7211 of title 5, United 
     States Code (governing disclosures to Congress); section 1034 
     of title 10, United States Code (governing disclosure to 
     Congress by members of the military); section 2302(b)(8) of 
     title 5, United States Code (governing disclosures of 
     illegality, waste, fraud, abuse or public health or safety 
     threats); the Intelligence Identities Protection Act of 1982 
     (50 U.S.C. 421 et seq.) (governing disclosures that could 
     expose confidential Government agents); and the statutes 
     which protect against disclosure that may compromise the 
     national security, including sections 641, 793, 794, 798, and 
     952 of title 18, United States Code, and section 4(b) of the 
     Subversive Activities Act of 1950 (50 U.S.C. 783(b)). The 
     definitions, requirements, obligations, rights, sanctions, 
     and liabilities created by such Executive order and such 
     statutory provisions are incorporated into this agreement and 
     are controlling.''.
       (B) Enforceability.--Any nondisclosure policy, form, or 
     agreement described under subparagraph (A) that does not 
     contain the statement required under subparagraph (A) may not 
     be implemented or enforced to the extent such policy, form, 
     or agreement is inconsistent with that statement.
       (2) Persons other than government employees.--
     Notwithstanding paragraph (1), a nondisclosure policy, form, 
     or agreement that is to be executed by a person connected 
     with the conduct of an intelligence or intelligence-related 
     activity, other than an employee or officer of the United 
     States Government, may contain provisions appropriate to the 
     particular activity for which such document is to be used. 
     Such form or agreement shall, at a minimum, require that the 
     person will not disclose any classified information received 
     in the course of such activity unless specifically authorized 
     to do so by the United States Government. Such nondisclosure 
     forms shall also make it clear that such forms do not bar 
     disclosures to Congress or to an authorized official of an 
     executive agency or the Department of Justice that are 
     essential to reporting a substantial violation of law.
       (l) Clarification of Whistleblower Rights for Critical 
     Infrastructure Information.--Section 214(c) of the Homeland 
     Security Act of 2002 (6 U.S.C. 133(c)) is amended by adding 
     at the end the following: ``For purposes of this section a 
     permissible use of independently obtained information 
     includes the disclosure of such information under section 
     2302(b)(8) of title 5, United States Code.''.
       (m) Advising Employees of Rights.--Section 2302(c) of title 
     5, United States Code, is amended by inserting ``, including 
     how to make a lawful disclosure of information that is 
     specifically required by law or Executive order to be kept 
     secret in the interest of national defense or the conduct of 
     foreign affairs to the Special Counsel, the Inspector General 
     of an agency, Congress, or other agency employee designated 
     to receive such disclosures'' after ``chapter 12 of this 
     title''.
       (n) Scope of Due Process.--
       (1) Special counsel.--Section 1214(b)(4)(B)(ii) of title 5, 
     United States Code, is amended by inserting ``, after a 
     finding that a protected disclosure was a contributing 
     factor,'' after ``ordered if''.
       (2) Individual action.--Section 1221(e)(2) of title 5, 
     United States Code, is amended by inserting ``, after a 
     finding that a protected disclosure was a contributing 
     factor,'' after ``ordered if''.
       (o) Effective Date.--This Act shall take effect 30 days 
     after the date of enactment of this Act.

     SEC. 1090. SENSE OF CONGRESS REGARDING THE MEN AND WOMEN OF 
                   THE ARMED FORCES OF THE UNITED STATES IN IRAQ.

       (a) Findings.--Congress makes the following findings:
       (1) In 2003, members of the Armed Forces of the United 
     States successfully liberated the people of Iraq from the 
     tyrannical regime of Saddam Hussein.
       (2) Members of the Armed Forces of the United States have 
     bravely risked their lives everyday over the last 3 years to 
     protect the people of Iraq from terror attacks by Al Qaeda 
     and other extremist organizations.
       (3) Members of the Armed Forces of the United States have 
     conducted dozens of operations with coalition forces to 
     track, apprehend, and eliminate terrorists in Iraq.
       (4) Members of the Armed Forces of the United States have 
     helped sustain political progress in Iraq by assisting the 
     people of Iraq as they exercised their right to choose their 
     leaders and draft their own constitution.
       (5) Members of the Armed Forces of the United States have 
     taught over 150,000 soldiers of Iraq to respect civilian 
     authority, conduct counter-insurgency operations, provide 
     meaningful security, and protect the people of Iraq from 
     terror attacks.

[[Page 13373]]

       (6) Members of the Armed Forces of the United States have 
     built new schools, hospitals, and public works throughout 
     Iraq.
       (7) Members of the Armed Forces of the United States have 
     helped rebuild Iraq's dilapidated energy sector.
       (8) Members of the Armed Forces of the United States have 
     restored electrical power and sewage waste treatment for the 
     people of Iraq.
       (9) Members of the Armed Forces of the United States have 
     established lasting and productive relationships with local 
     leaders in Iraq and secured the support of a majority of the 
     populace of Iraq.
       (10) Members of the Armed Forces of the United States have 
     courageously endured sophisticated terror tactics, including 
     deadly car-bombs, sniper attacks, and improvised explosive 
     devices.
       (11) Members of the Armed Forces of the United States have 
     paid a high cost in order to defeat the terrorists, defend 
     innocent civilians, and protect democracy from those who 
     desire the return of oppression and extremism to Iraq.
       (12) Members of the Armed Forces of the United States have 
     performed their duty in Iraq with an unflagging commitment to 
     the highest ideals and traditions of the United States and 
     the Armed Forces.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the men and women in uniform of the Armed Forces of the 
     United States in Iraq should be commended for their on-going 
     service to the United States, their commitment to the ideals 
     of the United States, and their determination to win the 
     Global War on Terrorism;
       (2) gratitude should be expressed to the families of the 
     Armed Forces of the United States, especially those families 
     who have lost loved ones in Operational Iraqi Freedom; and
       (3) the people of the United States should honor those who 
     have paid the ultimate sacrifice and assist those families 
     who have loved ones in the Armed Forces of the United States 
     deployed overseas.

     SEC. 1091. EXTENSION OF RETURNING WORKER EXEMPTION.

       Section 402(b)(1) of the Save Our Small and Seasonal 
     Businesses Act of 2005 (title IV of division B of Public Law 
     109-13; 8 U.S.C. 1184 note) is amended by striking ``2006'' 
     and inserting ``2008''.

     SEC. 1092. LIMITATION ON THE UNITED STATES SHARE OF 
                   ASSESSMENTS FOR UNITED NATIONS PEACEKEEPING 
                   OPERATIONS.

       (a) In General.--Section 404(b)(2)(B) of the Foreign 
     Relations Authorization Act, Fiscal Years 1994 and 1995 (22 
     U.S.C. 287e note) is amended by adding at the end the 
     following:
       ``(v) For assessments made during calendar years 2005, 
     2006, and 2007, 27.10 percent.''.
       (b) Conforming Amendment.--Section 411 of the Department of 
     State and Related Agency Appropriations Act, 2005 (title IV 
     of division B of Public Law 108-447; 22 U.S.C. 287e note) is 
     repealed.

     SEC. 1093. TERMINATION OF PROGRAM.

       Section 711(c) of the Small Business Competitive 
     Demonstration Program Act of 1988 (15 U.S.C. 644 note) is 
     amended by inserting after ``January 1, 1989'' the following: 
     ``, and shall terminate on the date of enactment of the 
     National Defense Authorization Act for Fiscal Year 2007''.

     SEC. 1094. PATENT TERM EXTENSIONS FOR THE BADGES OF THE 
                   AMERICAN LEGION, THE AMERICAN LEGION WOMEN'S 
                   AUXILIARY, AND THE SONS OF THE AMERICAN LEGION.

       (a) Patent Term Extension for the Badge of the American 
     Legion.--The term of a certain design patent numbered 54,296 
     (for the badge of the American Legion) is renewed and 
     extended for a period of 14 years beginning on the date of 
     enactment of this Act, with all the rights and privileges 
     pertaining to such patent.
       (b) Patent Term Extension for the Badge of the American 
     Legion Women's Auxiliary.--The term of a certain design 
     patent numbered 55,398 (for the badge of the American Legion 
     Women's Auxiliary) is renewed and extended for a period of 14 
     years beginning on the date of enactment of this Act, with 
     all the rights and privileges pertaining to such patent.
       (c) Patent Term Extension for the Badge of the Sons of the 
     American Legion.--The term of a certain design patent 
     numbered 92,187 (for the badge of the Sons of the American 
     Legion) is renewed and extended for a period of 14 years 
     beginning on the date of enactment of this Act, with all the 
     rights and privileges pertaining to such patent.

     SEC. 1095. AVAILABILITY OF FUNDS FOR SOUTH COUNTY COMMUTER 
                   RAIL PROJECT, PROVIDENCE, RHODE ISLAND.

       Funds available for the South County Commuter Rail project, 
     Providence, Rhode Island, authorized by paragraphs (34) and 
     (35) of section 3034(d) of the Safe, Accountable, Flexible, 
     Efficient Transportation Equity Act: A Legacy for Users 
     (Public Law 109-59; 119 Stat. 1650) shall be available for 
     the purchase of commuter rail equipment for the South County 
     Commuter Rail project upon the receipt by the Rhode Island 
     Department of Transportation of an approved environmental 
     assessment for the South County Commuter Rail project.

     SEC. 1096. SENSE OF CONGRESS ON IRAQ SUMMIT.

       Sense of Congress.--It is the sense of Congress that the 
     President should convene a summit as soon as possible that 
     includes the leaders of the Government of Iraq, leaders of 
     the governments of each country bordering Iraq, 
     representatives of the Arab League, the Secretary General of 
     the North Atlantic Treaty Organization, representatives of 
     the European Union, and leaders of the governments of each 
     permanent member of the United Nations Security Council, for 
     the purpose of reaching a comprehensive political agreement 
     for Iraq that addresses fundamental issues including 
     federalism, oil revenues, the militias, security guarantees, 
     reconstruction, economic assistance, and border security.

       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

[[Page 13374]]

     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.

     SEC. 1104. PROGRAMS FOR USE OF LEAVE BY CAREGIVERS FOR FAMILY 
                   MEMBERS OF INDIVIDUALS PERFORMING CERTAIN 
                   MILITARY SERVICE.

       (a) Federal Employees Program.--
       (1) Definitions.--In this subsection:
       (A) Caregiver.--The term ``caregiver'' means an individual 
     who--
       (i) is an employee;
       (ii) is at least 21 years of age; and
       (iii) is capable of self care and care of children or other 
     dependent family members of a qualified member of the Armed 
     Forces.
       (B) Covered period of service.--The term ``covered period 
     of service'' means any period of service performed by an 
     employee as a caregiver while the individual who designated 
     the caregiver under paragraph (3) remains a qualified member 
     of the Armed Forces.
       (C) Employee.--The term ``employee'' has the meaning given 
     under section 6331 of title 5, United States Code.
       (D) Family member.--The term ``family member'' includes--
       (i) individuals for whom the qualified member of the Armed 
     Forces provides medical, financial, and logistical support 
     (such as housing, food, clothing, or transportation); and
       (ii) children under the age of 19 years, elderly adults, 
     persons with disabilities, and other persons who are unable 
     to care for themselves in the absence of the qualified member 
     of the Armed Forces.
       (E) Qualified member of the armed forces.--The term 
     ``qualified member of the Armed Forces'' means--
       (i) a member of a reserve component of the Armed Forces as 
     described under section 10101 of title 10, United States 
     Code, who has received notice to report to, or is serving on, 
     active duty in the Armed Forces in support of a contingency 
     operation as defined under section 101(a)(13) of title 10, 
     United States Code; or
       (ii) a member of the Armed Forces on active duty who is 
     eligible for hostile fire or imminent danger special pay 
     under section 310 of title 37, United States Code.
       (2) Establishment of program.--The Office of Personnel 
     Management shall establish a program to authorize a caregiver 
     to--
       (A) use any sick leave of that caregiver during a covered 
     period of service in the same manner and to the same extent 
     as annual leave is used; and
       (B) use any leave available to that caregiver under 
     subchapter III or IV of chapter 63 of title 5, United States 
     Code, during a covered period of service as though that 
     covered period of service is a medical emergency.
       (3) Designation of caregiver.--
       (A) In general.--A qualified member of the Armed Forces 
     shall submit a written designation of the individual who is 
     the caregiver for any family member of that member of the 
     Armed Forces during a covered period of service to the 
     employing agency and the Office of Personnel Management.
       (B) Designation of spouse.--Notwithstanding paragraph 
     (1)(A)(ii), an individual less than 21 years of age may be 
     designated as a caregiver if that individual is the spouse of 
     the qualified member of the Armed Forces making the 
     designation.
       (4) Use of caregiver leave.--Leave may only be used under 
     this subsection for purposes directly relating to, or 
     resulting from, the designation of an employee as a 
     caregiver.
       (5) Regulations.--Not later than 120 days after the date of 
     enactment of this Act, the Office of Personnel Management 
     shall prescribe regulations to carry out this subsection.
       (6) Termination.--The program under this subsection shall 
     terminate on December 31, 2007.
       (b) Voluntary Private Sector Leave Program.--
       (1) Definitions.--
       (A) Caregiver.--The term ``caregiver'' means an individual 
     who--
       (i) is an employee;
       (ii) is at least 21 years of age; and
       (iii) is capable of self care and care of children or other 
     dependent family members of a qualified member of the Armed 
     Forces.
       (B) Covered period of service.--The term ``covered period 
     of service'' means any period of service performed by an 
     employee as a caregiver while the individual who designated 
     the caregiver under paragraph (4) remains a qualified member 
     of the Armed Forces.
       (C) Employee.--The term ``employee'' means an employee of a 
     business entity participating in the program under this 
     subsection.
       (D) Family member.--The term ``family member'' includes--
       (i) individuals for whom the qualified member of the Armed 
     Forces provides medical, financial, and logistical support 
     (such as housing, food, clothing, or transportation); and
       (ii) children under the age of 19 years, elderly adults, 
     persons with disabilities, and other persons who are unable 
     to care for themselves in the absence of the qualified member 
     of the Armed Forces.
       (E) Qualified member of the armed forces.--The term 
     ``qualified member of the Armed Forces'' means--
       (i) a member of a reserve component of the Armed Forces as 
     described under section 10101 of title 10, United States 
     Code, who has received notice to report to, or is serving on, 
     active duty in the Armed Forces in support of a contingency 
     operation as defined under section 101(a)(13) of title 10, 
     United States Code; or
       (ii) a member of the Armed Forces on active duty who is 
     eligible for hostile fire or imminent danger special pay 
     under section 310 of title 37, United States Code.
       (2) Establishment of program.--
       (A) In general.--The Secretary of Labor may establish a 
     program to authorize employees of business entities described 
     under paragraph (3) to use sick leave, or any other leave 
     available to an employee, during a covered period of service 
     in the same manner and to the same extent as annual leave (or 
     its equivalent) is used.
       (B) Exception.--Subparagraph (A) shall not apply to leave 
     made available under the Family and Medical Leave Act of 1993 
     (29 U.S.C. 2601 et seq.).
       (3) Voluntary business participation.--The Secretary of 
     Labor may solicit business entities to voluntarily 
     participate in the program under this subsection.
       (4) Designation of caregiver.--
       (A) In general.--A qualified member of the Armed Forces 
     shall submit a written designation of the individual who is 
     the caregiver for any family member of that member of the 
     Armed Forces during a covered period of service to the 
     employing business entity.
       (B) Designation of spouse.--Notwithstanding paragraph 
     (1)(A)(ii), an individual less than 21 years of age may be 
     designated as a caregiver if that individual is the spouse of 
     the qualified member of the Armed Forces making the 
     designation.
       (5) Use of caregiver leave.--Leave may only be used under 
     this subsection for purposes directly relating to, or 
     resulting from, the designation of an employee as a 
     caregiver.
       (6) Regulations.--Not later than 120 days after the date of 
     enactment of this Act, the Secretary of Labor may prescribe 
     regulations to carry out this subsection.
       (7) Termination.--The program under this subsection shall 
     terminate on December 31, 2007.
       (c) GAO Report.--Not later than June 30, 2007, the 
     Government Accountability Office shall submit a report to 
     Congress on the programs under subsections (a) and (b) that 
     includes--

[[Page 13375]]

       (1) an evaluation of the success of each program; and
       (2) recommendations for the continuance or termination of 
     each program.

     SEC. 1105. THREE-YEAR EXTENSION OF AUTHORITY FOR EXPERIMENTAL 
                   PERSONNEL MANAGEMENT PROGRAM FOR SCIENTIFIC AND 
                   TECHNICAL PERSONNEL.

       Section 1101(e)(1) of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (5 U.S.C. 3104 note) 
     is amended by striking ``September 30, 2008'' and inserting 
     ``September 30, 2011''.

              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.

[[Page 13376]]

       (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:

[[Page 13377]]

       ``(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)(A) in fiscal 
     year 2007 for the expenses 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:

[[Page 13378]]

       (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.

     SEC. 1209. UNITED STATES' POLICY ON THE NUCLEAR PROGRAMS OF 
                   IRAN.

       (a) Findings.--Congress finds that:
       (1) The pursuit by the Iranian regime of a capability to 
     produce nuclear weapons represents a threat to the United 
     States, the middle east region, and international peace and 
     security.
       (2) On May 31, 2006, Secretary of State Rice announced that 
     the United States would join negotiations with Iran, along 
     with the United Kingdom, France, and Germany, provided that 
     Iran fully and verifiably suspends its enrichment and 
     reprocessing activities.
       (3) On June 1, 2006, President George W. Bush stated that 
     ``Secretary Rice, at my instructions, said to the world that 
     we want to solve the problem of the Iranian nuclear issue 
     diplomatically. And we made it very clear publicly that we're 
     willing to come to the table, so long as the Iranians 
     verifiably suspend their program. In other words, we said to 
     the Iranians [that] the United States of America wants to 
     work with our partners to solve the problem''.
       (4) On June 1, 2006, the United States, the United Kingdom, 
     France, Germany, the People's Republic of China, and the 
     Russian Federation agreed upon a package of incentives and 
     disincentives, which was subsequently presented to Iran by 
     the High Representative of the European Union, Javier Solana.
       (b) Sense of Congress.--Congress--
       (1) endorses the policy of the United States, announced May 
     31, 2006, to achieve a successful diplomatic outcome, in 
     coordination with leading members of the international 
     community, with respect to the threat posed by the efforts of 
     the Iranian regime to acquire a capability to produce nuclear 
     weapons;
       (2) calls on Iran to suspend fully and verifiably its 
     enrichment and reprocessing activities, cooperate fully with 
     the International Atomic Energy Agency, and enter into 
     negotiations, including with the United States, pursuant to 
     the package presented to Iran by the High Representative of 
     the European Union; and
       (3) urges the President and the Secretary of State to keep 
     Congress fully and currently informed about the progress of 
     this vital diplomatic initiative.

     SEC. 1210. MODIFICATION OF LIMITATIONS ON ASSISTANCE UNDER 
                   THE AMERICAN SERVICEMEMBERS' PROTECTION ACT OF 
                   2002.

       Section 2013(13)(A) of the American Servicemembers' 
     Protection Act of 2002 (title II of Public Law 107-206; 116 
     Stat. 909; 22 U.S.C. 7432(13)(A)) is amended by striking ``or 
     5''.

     SEC. 1211. SENSE OF THE CONGRESS COMMENDING THE GOVERNMENT OF 
                   IRAQ FOR AFFIRMING ITS POSITION OF NO AMNESTY 
                   FOR TERRORISTS WHO ATTACK UNITED STATES ARMED 
                   FORCES.

       (a) Findings.--Congress makes the following findings:
       (1) The Armed Forces of the United States and coalition 
     military forces are serving heroically in Iraq to provide all 
     the people of Iraq a better future.
       (2) The Armed Forces of the United States and coalition 
     military forces have served bravely in Iraq since the 
     beginning of military operations in March 2003.
       (3) More than 2,500 of the Armed Forces of the United 
     States and members of coalition military forces have been 
     killed and more than 18,000 injured in operations to bring 
     peace and stability to all the people of Iraq.
       (4) The National Security Advisor of Iraq affirmed that the 
     Government of Iraq will ``never give amnesty to those who 
     have killed American soldiers or Iraqi soldiers or 
     civilians.''
       (5) The National Security Advisor of Iraq thanked ``the 
     American wives and American women and American mothers for 
     the treasure and blood they have invested in this country . . 
     . of liberating 30 million people in this country . . . and 
     we are ever so grateful.''
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the goal of the United States and our coalition 
     partners has been to empower the Iraqi nation with full 
     sovereignty thereby recognizing their freedom to exercise 
     that sovereignty. Through successive elections and difficult 
     political agreements the unity government is now in place 
     exercising that sovereignty. We must respect that exercise of 
     that sovereignty in accordance with their own wisdom;
       (2) history records that governments derived of free 
     elections should not grant amnesty to those who have 
     committed war crimes or terrorists acts; and
       (3) the United States should continue with the historic 
     tradition of diplomatically, economically, and in a 
     humanitarian manner assisting nations and the people who have 
     fought once a conflict is concluded.

     SEC. 1212. SENSE OF CONGRESS ON THE GRANTING OF AMNESTY TO 
                   PERSONS KNOWN TO HAVE KILLED MEMBERS OF THE 
                   ARMED FORCES IN IRAQ.

       (a) Findings.--Congress makes the following findings:
       (1) The Armed Forces of the United States and coalition 
     military forces are serving heroically in Iraq to provide all 
     the people of Iraq a better future.
       (2) The Armed Forces of the United States and coalition 
     military forces have served bravely in Iraq since the 
     beginning of military operations in March of 2003.
       (3) More than 2,500 members of the Armed Forces of the 
     United States and members of coalition military forces have 
     been killed and more than 18,000 injured in operations to 
     bring peace and stability to all the people of Iraq.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the Government of Iraq should not grant amnesty to 
     persons known to have attacked, killed, or wounded members of 
     the Armed Forces of the United States; and
       (2) the President should immediately notify the Government 
     of Iraq that the Government of the United States strongly 
     opposes granting amnesty to persons who have attacked members 
     of the Armed Forces of the United States.

     SEC. 1213. ANNUAL REPORTS ON UNITED STATES CONTRIBUTIONS TO 
                   THE UNITED NATIONS.

       (a) Annual Report Required.--Not later than 90 days after 
     the date of the enactment of this Act, and annually 
     thereafter, the President shall submit to Congress a report 
     listing all assessed and voluntary contributions of the 
     United States Government for the preceding fiscal year to the 
     United Nations and United Nations affiliated agencies and 
     related bodies.
       (b) Elements.--Each report under subsection (a) shall set 
     forth, for the fiscal year covered by such report, the 
     following:
       (1) The total amount of all assessed and voluntary 
     contributions of the United States Government to the United 
     Nations and United Nations affiliated agencies and related 
     bodies.
       (2) The approximate percentage of United States Government 
     contributions to each United Nations affiliated agency or 
     body in such fiscal year when compared with all contributions 
     to such agency or body from any source in such fiscal year.
       (3) For each such contribution--
       (A) the amount of such contribution;
       (B) a description of such contribution (including whether 
     assessed or voluntary);
       (C) the department or agency of the United States 
     Government responsible for such contribution;
       (D) the purpose of such contribution; and
       (E) the United Nations or United Nations affiliated agency 
     or related body receiving such contribution.

     SEC. 1214. NORTH KOREA.

       (a) Coordinator of Policy on North Korea.--
       (1) Appointment required.--Not later than 60 days after the 
     date of the enactment of this Act, the President shall 
     appoint a senior presidential envoy to act as coordinator of 
     United States policy on North Korea.
       (2) Designation.--The individual appointed under paragraph 
     (1) may be known as the ``North Korea Policy Coordinator'' 
     (in this subsection referred to as the ``Coordinator)''.
       (3) Duties.--The Coordinator shall--
       (A) conduct a full and complete interagency review of 
     United States policy toward North Korea including matters 
     related to security and human rights;
       (B) provide policy direction for negotiations with North 
     Korea relating to nuclear weapons, ballistic missiles, and 
     other security matters; and
       (C) provide leadership for United States participation in 
     Six Party Talks on the denuclearization of the Korean 
     peninsula.
       (4) Report.--Not later than 90 days after the date of the 
     appointment of an individual as Coordinator under paragraph 
     (1), the Coordinator shall submit to the President and 
     Congress an unclassified report, with a classified annex if 
     necessary, on the actions undertaken under paragraph (3). The 
     report shall set forth--
       (A) the results of the review under paragraph (3)(A); and
       (B) any other matters on North Korea that the individual 
     considers appropriate.
       (b) Report on Nuclear and Missile Programs of North 
     Korea.--
       (1) Report required.--Not later than 90 days after the date 
     of the enactment of this Act, and every 180 days thereafter, 
     the President shall submit to Congress an unclassified 
     report, with a classified annex as appropriate, on the 
     nuclear program and the missile program of North Korea.
       (2) Elements.--Each report submitted under paragraph (1) 
     shall include the following:
       (A) The most current national intelligence estimate on the 
     nuclear program and the missile program of North Korea, and, 
     consistent with the protection of intelligence sources and 
     methods, an unclassified summary of the key judgments in the 
     estimate.
       (B) The most current unclassified United States Government 
     assessment, stated as a range if necessary, of (i) the number 
     of nuclear weapons possessed by North Korea and (ii) the 
     amount of nuclear material suitable for weapons use produced 
     by North Korea by plutonium reprocessing and uranium 
     enrichment for each period as follows:

[[Page 13379]]

       (I) Before October 1994.
       (II) Between October 1994 and October 2002.
       (III) Between October 2002 and the date of the submittal of 
     the initial report under paragraph (1).
       (IV) Each 12-month period after the submittal of the 
     initial report under paragraph (1).
       (C) Any other matter relating to the nuclear program or 
     missile program of North Korea that the President considers 
     appropriate.

     SEC. 1215. COMPREHENSIVE STRATEGY FOR SOMALIA.

       (a) Sense of Senate.--It is the sense of the Senate that 
     the United States should--
       (1) support the development of the Transitional Federal 
     Institutions in Somalia into a unified national government, 
     support humanitarian assistance to the people of Somalia, 
     support efforts to prevent Somalia from becoming a safe haven 
     for terrorists and terrorist activities, and support regional 
     stability;
       (2) broaden and integrate its strategic approach toward 
     Somalia within the context of United States activities in 
     countries of the Horn of Africa, including Djibouti, 
     Ethiopia, Kenya, Eritrea, and in Yemen on the Arabian 
     Peninsula; and
       (3) carry out all diplomatic, humanitarian, counter-
     terrorism, and security-related activities in Somalia within 
     the context of a comprehensive strategy developed through an 
     interagency process.
       (b) Development of a Comprehensive Strategy for Somalia.--
       (1) Requirement for strategy.--Not later then 90 days after 
     the date of the enactment of this Act, the President shall 
     develop and submit to the appropriate committees of Congress 
     a comprehensive strategy toward Somalia within the context of 
     United States activities in the countries of the Horn of 
     Africa.
       (2) Content of strategy.--The strategy should include the 
     following:
       (A) A clearly stated policy towards Somalia that will help 
     establish a functional, legitimate, unified national 
     government in Somalia that is capable of maintaining the rule 
     of law and preventing Somalia from becoming a safe haven for 
     terrorists.
       (B) An integrated political, humanitarian, intelligence, 
     and military approach to counter transnational security 
     threats in Somalia within the context of United States 
     activities in the countries of the Horn of Africa.
       (C) An interagency framework to plan, coordinate, and 
     execute United States activities in Somalia within the 
     context of other activities in the countries of the Horn of 
     Africa among the agencies and departments of the United 
     States to oversee policy and program implementation.
       (D) A description of the type and form of diplomatic 
     engagement to coordinate the implementation of the United 
     States policy in Somalia.
       (E) A description of bilateral, regional, and multilateral 
     efforts to strengthen and promote diplomatic engagement in 
     Somalia.
       (F) A description of appropriate metrics to measure the 
     progress and effectiveness of the United States policy 
     towards Somalia and throughout the countries of the Horn of 
     Africa.
       (G) Guidance on the manner in which the strategy will be 
     implemented.
       (c) Annual Reports.--Not later than April 1, 2007, and 
     annually thereafter, the President shall prepare and submit 
     to the appropriate committees of Congress a report on the 
     status of the implementation of the strategy.
       (d) Form.--Each report under this section shall be 
     submitted in unclassified form, but may include a classified 
     annex.
       (e) Appropriate Committees of Congress Defined.--In this 
     section, the term ``appropriate committees of Congress'' 
     means--
       (1) the Committee on Appropriations, the Committee on Armed 
     Services, the Committee on Foreign Relations, and the Select 
     Committee Intelligence of the Senate; and
       (2) the Committee on Appropriations, the Committee on Armed 
     Services, the Committees on International Relations, and the 
     Permanent Select Committee on Intelligence of the House of 
     Representatives.

     SEC. 1216. INTELLIGENCE ON IRAN.

       (a) Submittal to Congress of Updated National Intelligence 
     Estimate on Iran.--
       (1) Submittal required.--As soon as is practicable, but not 
     later than 90 days after the date of the enactment of this 
     Act, the Director of National Intelligence shall submit to 
     Congress an updated National Intelligence Estimate on Iran.
       (2) Notice regarding submittal.--If the Director determines 
     that the National Intelligence Estimate required by paragraph 
     (1) cannot be submitted by the date specified in that 
     paragraph, the Director shall submit to Congress a report 
     setting forth--
       (A) the reasons why the National Intelligence Estimate 
     cannot be submitted by such date; and
       (B) an estimated date for the submittal of the National 
     Intelligence Estimate.
       (3) Form.--The National Intelligence Estimate under 
     paragraph (1) shall be submitted in classified form. 
     Consistent with the protection of intelligence sources and 
     methods, an unclassified summary of the key judgments of the 
     National Intelligence Estimate should be submitted.
       (4) Elements.--The National Intelligence Estimate submitted 
     under paragraph (1) shall address the following:
       (A) The foreign policy and regime objectives of Iran.
       (B) The current status of the nuclear programs of Iran, 
     including--
       (i) an assessment of the current and projected capabilities 
     of Iran to design a nuclear weapon, to produce plutonium, 
     enriched uranium, and other weapons materials, to build a 
     nuclear weapon, and to deploy a nuclear weapon; and
       (ii) an assessment of the intentions of Iran regarding 
     possible development of nuclear weapons, the motivations 
     underlying such intentions, and the factors that might 
     influence changes in such intentions.
       (C) The military and defense capabilities of Iran, 
     including any non-nuclear weapons of mass destruction 
     programs and related delivery systems.
       (D) The relationship of Iran with terrorist organizations, 
     the use by Iran of terrorist organizations in furtherance of 
     its foreign policy objectives, and the factors that might 
     cause Iran to reduce or end such relationships.
       (E) The prospects for support from the international 
     community for various potential courses of action with 
     respect to Iran, including diplomacy, sanctions, and military 
     action.
       (F) The anticipated reaction of Iran to the courses of 
     action set forth under subparagraph (E), including an 
     identification of the course or courses of action most likely 
     to successfully influence Iran in terminating or moderating 
     its policies of concern.
       (G) The level of popular and elite support within Iran for 
     the Iran regime, and for its civil nuclear program, nuclear 
     weapons ambitions, and other policies, and the prospects for 
     reform and political change within Iran.
       (H) The views among the populace and elites of Iran with 
     respect to the United States, including views on direct 
     discussions with or normalization of relations with the 
     United States.
       (I) The views among the populace and elites of Iran with 
     respect to other key countries involved in nuclear diplomacy 
     with Iran.
       (J) The likely effects and consequences of any military 
     action against the nuclear programs or other regime interests 
     of Iran.
       (K) The confidence level of key judgments in the National 
     Intelligence Estimate, the quality of the sources of 
     intelligence on Iran, the nature and scope of any gaps in 
     intelligence on Iran, and any significant alternative views 
     on the matters contained in the National Intelligence 
     Estimate.
       (b) Presidential Report on Policy Objectives and United 
     States Strategy Regarding Iran.--
       (1) Report required.--As soon as is practicable, but not 
     later than 90 days after the date of the enactment of this 
     Act, the President shall submit to Congress a report on the 
     following:
       (A) The objectives of United States policy on Iran.
       (B) The strategy for achieving such objectives.
       (2) Form.--The report under paragraph (1) shall be 
     submitted in unclassified form with a classified annex, as 
     appropriate.
       (3) Elements.--The report submitted under paragraph (1) 
     shall--
       (A) address the role of diplomacy, incentives, sanctions, 
     other punitive measures and incentives, and other programs 
     and activities relating to Iran for which funds are provided 
     by Congress; and
       (B) summarize United States contingency planning regarding 
     the range of possible United States military actions in 
     support of United States policy objectives with respect to 
     Iran.
       (c) Director of National Intelligence Report on Process for 
     Vetting and Clearing Administration Officials' Statements 
     Drawn From Intelligence.--
       (1) Report required.--As soon as is practicable, but not 
     later than 90 days after the date of the enactment of this 
     Act, the Director of National Intelligence shall submit to 
     Congress a report on the process for vetting and clearing 
     statements of Administration officials that are drawn from or 
     rely upon intelligence.
       (2) Elements.--The report shall--
       (A) describe current policies and practices of the Office 
     of the Director of National Intelligence and the intelligence 
     community for--
       (i) vetting and clearing statements of senior 
     Administration officials that are drawn from or rely upon 
     intelligence; and
       (ii) how significant misstatements of intelligence that may 
     occur in public statements of senior public officials are 
     identified, brought to the attention of any such officials, 
     and corrected;
       (B) assess the sufficiency and adequacy of such policies 
     and practices; and
       (C) include any recommendations that the Director considers 
     appropriate to improve such policies and practices.

     SEC. 1217. REPORTS ON IMPLEMENTATION OF THE DARFUR PEACE 
                   AGREEMENT.

       (a) Requirement for Reports.--Not later than 30 days after 
     the date of the enactment of this Act, and every 60 days 
     thereafter

[[Page 13380]]

     until the date that the President submits the certification 
     described in subsection (b), the President shall submit to 
     Congress a report on the implementation of the Darfur Peace 
     Agreement of May 5, 2006, and the situation in Darfur, Sudan. 
     Each such report shall include--
       (1) a description of the steps being taken by the 
     Government of Sudan, the Sudan Liberation Movement/Army (SLM/
     A), and other parties to the Agreement to uphold their 
     commitments to--
       (A) demobilize and disarm the Janjaweed, as stated in 
     paragraphs 214(F), 338, 339, 340, 366, 387, and 368 of the 
     Agreement;
       (B) provide secure, unfettered access for humanitarian 
     personnel and supplies, as stated in paragraph 214(E) of the 
     Agreement;
       (C) ensure that foreign combatants respect the provisions 
     of the Agreement, as stated in paragraphs 341 through 344 of 
     the Agreement; and
       (D) expedite the safe and voluntary return of internally-
     displaced persons and refugees to their places of origin, as 
     stated in paragraphs 182 through 187 of the Agreement; and
       (2) a description of any violation of the Agreement and any 
     delay in implementing the Agreement, including any such 
     violation or delay that compromises the safety of civilians, 
     and the names of the individuals or entities responsible for 
     such violation or delay;
       (3) a description of any attacks against civilians and any 
     activities that disrupt implementation of the Agreement by 
     armed persons who are not a party to the Agreement; and
       (4) a description of the ability of the Ceasefire 
     Commission, the African Union Mission in Sudan, and the other 
     organizations identified in the Agreement to monitor the 
     implementation of the Agreement, and a description of any 
     obstruction to such monitoring.
       (b) Certification.--The certification described in this 
     subsection is a certification made by the President and 
     submitted to Congress that the Government of Sudan has 
     fulfilled its obligations under the Darfur Peace Agreement of 
     May 5, 2006, to demobilize and disarm the Janjaweed and to 
     protect civilians.
       (c) Form and Availability of Reports.--
       (1) Form.--A report submitted under this section shall be 
     in an unclassified form and may include a classified annex.
       (2) Availability.--The President shall make the 
     unclassified portion of a reported submitted under this 
     section available to the public.

                       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.

     SEC. 1223. REPEAL OF CERTAIN REPORT REQUIREMENTS.

       (a) Reports on Allied Contributions to the Common 
     Defense.--Section 1003 of the Department of Defense 
     Authorization Act, 1985 (22 U.S.C. 1928 note) is amended by 
     striking subsections (c) and (d).
       (b) Cost-Sharing Report.--Section 1313 of the National 
     Defense Authorization Act for Fiscal Year 1995 (Public Law 
     103-337; 108 Stat. 2894; 22 U.S.C. 1928 note) is amended--

[[Page 13381]]

       (1) by striking subsection (c); and
       (2) by redesignating subsection (d) as subsection (c).

     SEC. 1224. REPORTS ON THE DARFUR PEACE AGREEMENT.

       Not later than 60 days after the date of the enactment of 
     this Act, annually thereafter, the Secretary of Defense shall 
     submit to the Committee on Armed Services of the Senate and 
     the Committee on Armed Services of the House of 
     Representatives a detailed report on the Department of 
     Defense's role in assisting the parties to the Darfur Peace 
     Agreement of May 5, 2006 with implementing that Agreement. 
     Each such report shall include a description of--
       (1) the assets that the United States military, in concert 
     with the United States North Atlantic Treaty Organisation 
     (NATO) allies, are able to offer the African Union Mission in 
     Sudan (AMIS) and any United Nations peacekeeping mission 
     authorized for Darfur;
       (2) any plans of the Secretary of Defense to support the 
     AMIS by providing information regarding the location of 
     belligerents and potential violations of the Darfur Peace 
     Agreement and assistance to improve the AMIS use of 
     intelligence and tactical mobility;
       (3) the resources that will be used during the current 
     fiscal year to provide the support described in paragraph (2) 
     and the resources that will be needed during the next fiscal 
     year to provide such support;
       (4) the efforts of the Secretary of Defense and Secretary 
     of State to leverage troop contributions from other countries 
     to serve in the proposed United Nation peacekeeping mission 
     for Darfur;
       (5) any plans of the Secretary of Defense to participate in 
     the deployment of any NATO mentoring or technical assistance 
     teams to Darfur to assist the AMIS; and
       (6) any actions carried out by the Secretary of Defense to 
     address deficiencies in the AMIS communications systems, 
     particularly the interoperability of communications 
     equipment.

  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''.

     SEC. 1304. REMOVAL OF CERTAIN RESTRICTIONS ON PROVISION OF 
                   COOPERATIVE THREAT REDUCTION ASSISTANCE.

       (a) Repeal of Restrictions.--
       (1) Soviet nuclear threat reduction act of 1991.--Section 
     211(b) of the Soviet Nuclear Threat Reduction Act of 1991 
     (title II of Public Law 102-228; 22 U.S.C. 2551 note) is 
     repealed.
       (2) Cooperative threat reduction act of 1993.--Section 
     1203(d) of the Cooperative Threat Reduction Act of 1993 
     (title XII of Public Law 103-160; 22 U.S.C. 5952(d)) is 
     repealed.
       (3) Russian chemical weapons destruction facilities.--
     Section 1305 of the National Defense Authorization Act for 
     Fiscal Year 2000 (Public Law 106-65; 22 U.S.C. 5952 note) is 
     repealed.
       (b) Inapplicability of other restrictions.--
       Section 502 of the Freedom for Russia and Emerging Eurasian 
     Democracies and Open Markets Support Act of 1992 (Public Law 
     102-511; 106 Stat. 3338; 22 U.S.C. 5852) shall not apply to 
     any Cooperative Threat Reduction program.

  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

[[Page 13382]]

     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.

     SEC. 1414. AMOUNT FOR PROCUREMENT OF HEMOSTATIC AGENTS FOR 
                   USE IN THE FIELD.

       (a) Sense of Congress.--It is the sense of Congress that 
     every member of the Armed Forces deployed in a combat zone 
     should carry life saving resources on them, including 
     hemostatic agents.
       (b) Availability of Funds.--(1) Of the amount authorized 
     under section 1405(1) for operation and maintenance for the 
     Army, $15,000,000 may be made available for the procurement 
     of a sufficient quantity of hemostatic agents, including 
     blood-clotting bandages, for use by members of the Armed 
     Forces in the field so that each soldier serving in Iraq and 
     Afghanistan is issued at least one hemostatic agent and 
     accompanying medical personnel have a sufficient inventory of 
     hemostatic agents.
       (2) Of the amount authorized under section 1405(3) for 
     operation and maintenance for the Marine Corps, $5,000,000 
     may be made available for the procurement of a sufficient 
     quantity of hemostatic agents, including blood-clotting 
     bandages, for use by members of the Armed Forces in the field 
     so that each Marine serving in Iraq and Afghanistan is issued 
     at least one hemostatic agent and accompanying medical 
     personnel have a sufficient inventory of hemostatic agents.
       (c) Report.--Not later than 60 days after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to the congressional defense committees a report on the 
     distribution of hemostatic agents to members of the Armed 
     Forces serving in Iraq and Afghanistan, including a 
     description of any distribution problems and attempts to 
     resolve such problems.

     SEC. 1415. OUR MILITARY KIDS YOUTH SUPPORT PROGRAM.

       (a) Army Funding for Expansion of Program.--Of the amount 
     authorized to be appropriated by section 1405(1) for 
     operation and maintenance for the Army, $1,500,000 may be 
     available for the expansion nationwide of the Our Military 
     Kids youth support program for dependents of elementary and 
     secondary school age of members of the National Guard and 
     Reserve who are severely wounded or injured during 
     deployment.
       (b) Army National Guard Funding for Expansion of Program.--
     Of the amount authorized to be appropriated by section 
     1405(6) for operation and maintenance for the Army National 
     Guard, $500,000 may be available for the expansion nationwide 
     of the Our Military Kids youth support program.

     SEC. 1416. JOINT ADVERTISING, MARKET RESEARCH AND STUDIES 
                   PROGRAM.

       (a) Increase in Amount for Operation and Maintenance, 
     Defense-Wide.--The amount authorized to be appropriated by 
     section 301(5) for operation and maintenance for Defense-wide 
     activities, is hereby increased by $10,000,000.
       (b) Availability of Amount.--Of the amount authorized to be 
     appropriated by section 1405(5) for operation and maintenance 
     for Defense-wide activities, as increased by subsection (a), 
     $10,000,000 may be available for the Joint Advertising, 
     Market Research and Studies (JAMRS) program.
       (c) Offset.--The amount authorized to be appropriated by 
     section 421 for military personnel is hereby decreased by 
     $10,000,000, due to unexpended obligations, if available.

     SEC. 1417. REPORT.

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

     SEC. 1418. SUBMITTAL TO CONGRESS OF DEPARTMENT OF DEFENSE 
                   SUPPLEMENTAL AND COST OF WAR EXECUTION REPORTS.

       Section 1221(c) of the National Defense Authorization Act 
     for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3462; 10 
     U.S.C. 113 note) is amended--
       (1) in the subsection caption by inserting ``Congress and'' 
     after ``Submission to''; and
       (2) by inserting ``the congressional defense committees 
     and'' before ``the Comptroller General''.

     SEC. 1419. LIMITATION ON AVAILABILITY OF FUNDS FOR CERTAIN 
                   PURPOSES RELATING TO IRAQ.

       No funds authorized to be appropriated by this Act may be 
     obligated or expended for a purpose as follows:
       (1) To establish a permanent United States military 
     installation or base in Iraq.
       (2) To exercise United States control over the oil 
     resources of Iraq.

                          ____________________