    [109th Congress Public Law 364]
    [From the U.S. Government Publishing Office]

    [DOCID: f:publ364.109]

    [[Page 120 STAT. 2083]]

    Public Law 109-364
    109th Congress

                                     An Act

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

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

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

    [[Page 120 STAT. 2084]]

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

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

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

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

    [[Page 120 STAT. 2085]]

                DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                              TITLE I--PROCUREMENT

                   Subtitle A--Authorization of Appropriations

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

                            Subtitle B--Army Programs

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

                            Subtitle C--Navy Programs

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

                         Subtitle D--Air Force Programs

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

                   Subtitle E--Joint and Multiservice Matters

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

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

                   Subtitle A--Authorization of Appropriations

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

         Subtitle B--Program Requirements, Restrictions, and Limitations

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

    [[Page 120 STAT. 2086]]

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

                      Subtitle C--Missile Defense Programs

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

                            Subtitle D--Other Matters

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

                      TITLE III--OPERATION AND MAINTENANCE

                   Subtitle A--Authorization of Appropriations

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

                      Subtitle B--Environmental Provisions

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

         Subtitle C--Program Requirements, Restrictions, and Limitations

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

                     Subtitle D--Workplace and Depot Issues

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

                               Subtitle E--Reports

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

    [[Page 120 STAT. 2087]]

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

                            Subtitle F--Other Matters

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

                   TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                            Subtitle A--Active Forces

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

                           Subtitle B--Reserve Forces

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

                   Subtitle C--Authorization of Appropriations

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

                       TITLE V--MILITARY PERSONNEL POLICY

                      Subtitle A--Officer Personnel Policy

                   Part I--Officer Personnel Policy Generally

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

    [[Page 120 STAT. 2088]]

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

                        Part II--Officer Promotion Policy

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

                 Part III--Joint Officer Management Requirements

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

                      Subtitle B--Reserve Component Matters

                      Part I--Reserve Component Management

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

             Part II--Authorities Relating to Guard and Reserve Duty

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

                       Subtitle C--Education and Training

                            Part I--Service Academies

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

             Part II--Scholarship and Financial Assistance Programs

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

                          Part III--Junior ROTC Program

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

    [[Page 120 STAT. 2089]]

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

                 Part IV--Other Education and Training Programs

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

                     Subtitle D--General Service Authorities

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

                      Subtitle E--Military Justice Matters

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

                       Subtitle F--Decorations and Awards

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

                   Subtitle G--Matters Relating to Casualties

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

         Subtitle H--Impact Aid and Defense Dependents Education System

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

                    Subtitle I--Armed Forces Retirement Home

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

                               Subtitle J--Reports

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

    [[Page 120 STAT. 2090]]

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

                            Subtitle K--Other Matters

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

               TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                         Subtitle A--Pay and Allowances

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

               Subtitle B--Bonuses and Special and Incentive Pays

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

    [[Page 120 STAT. 2091]]

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

                Subtitle C--Travel and Transportation Allowances

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

                  Subtitle D--Retired Pay and Survivor Benefits

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

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

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

                            Subtitle F--Other Matters

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

                        TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--TRICARE Program Improvements

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

    [[Page 120 STAT. 2092]]

                         Subtitle B--Studies and Reports

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

                Subtitle C--Planning, Programming, and Management

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

                            Subtitle D--Other Matters

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

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

      Subtitle A--Provisions Relating to Major Defense Acquisition Programs

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

                  Subtitle B--Acquisition Policy and Management

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

    [[Page 120 STAT. 2093]]

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

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

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

          Subtitle D--United States Defense Industrial Base Provisions

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

                            Subtitle E--Other Matters

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

           TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                  Subtitle A--Department of Defense Management

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

                          Subtitle B--Space Activities

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

                  Subtitle C--Chemical Demilitarization Program

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

    [[Page 120 STAT. 2094]]

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

                    Subtitle D--Intelligence-Related Matters

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

                            Subtitle E--Other Matters

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

                           TITLE X--GENERAL PROVISIONS

                          Subtitle A--Financial Matters

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

              Subtitle B--Policy Relating to Vessels and Shipyards

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

                       Subtitle C--Counter-Drug Activities

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

             Subtitle D--Force Structure and Defense Policy Matters

    Sec. 1031. Improvements to Quadrennial Defense Review.

    [[Page 120 STAT. 2095]]

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

                               Subtitle E--Reports

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

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

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

                     Subtitle G--Matters Involving Detainees

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

                            Subtitle H--Other Matters

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

                      TITLE XI--CIVILIAN PERSONNEL MATTERS

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

                 TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                       Subtitle A--Assistance and Training

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

    [[Page 120 STAT. 2096]]

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

          Subtitle B--Nonproliferation Matters and Countries of Concern

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

                            Subtitle C--Other Matters

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

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

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

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

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

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

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

    [[Page 120 STAT. 2097]]

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

                DIVISION  B--MILITARY CONSTRUCTION AUTHORIZATIONS

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

                                 TITLE XXI--ARMY

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

                                TITLE XXII--NAVY

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

                             TITLE XXIII--AIR FORCE

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

                          TITLE XXIV--DEFENSE AGENCIES

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

       TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
                                     PROGRAM

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

                 TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

             TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

    [[Page 120 STAT. 2098]]

    Sec. 2704. Effective date.

             TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

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

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

             Subtitle B--Real Property and Facilities Administration

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

                    Subtitle C--Base Closure and Realignment

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

                          Subtitle D--Land Conveyances

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

                           Subtitle E--Energy Security

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

    [[Page 120 STAT. 2099]]

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

                            Subtitle F--Other Matters

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

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

           TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

              Subtitle A--National Security Programs Authorizations

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

        Subtitle B--Program Authorizations, Restrictions, and Limitations

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

              TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

    Sec. 3201. Authorization.

                    TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

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

                      TITLE XXXIV--NAVAL PETROLEUM RESERVES

    Sec. 3401. Authorization of appropriations

    [[Page 120 STAT. 2100]]

                       TITLE XXXV--MARITIME ADMINISTRATION

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

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

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

                DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                              TITLE I--PROCUREMENT

                   Subtitle A--Authorization of Appropriations

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

                            Subtitle B--Army Programs

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

                            Subtitle C--Navy Programs

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

                         Subtitle D--Air Force Programs

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

    [[Page 120 STAT. 2101]]

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

                   Subtitle E--Joint and Multiservice Matters

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

                   Subtitle A--Authorization of Appropriations

    SEC. 101. ARMY.

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

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

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

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

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

    [[Page 120 STAT. 2102]]

                            Subtitle B--Army Programs

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

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

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

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

    [[Page 120 STAT. 2103]]

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

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

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

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

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

    [[Page 120 STAT. 2104]]

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

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

                            Subtitle C--Navy Programs

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

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

        (a) Limitation.--

    [[Page 120 STAT. 2105]]

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

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

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

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

    [[Page 120 STAT. 2106]]

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

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

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

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

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

    [[Page 120 STAT. 2107]]

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

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

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

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

    [[Page 120 STAT. 2108]]

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

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

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

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

    [[Page 120 STAT. 2109]]

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

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

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

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

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

    [[Page 120 STAT. 2110]]

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

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

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

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

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

    [[Page 120 STAT. 2111]]

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

                         Subtitle D--Air Force Programs

    SEC. 131. BOMBER FORCE STRUCTURE.

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

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

    [[Page 120 STAT. 2112]]

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

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

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

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

    [[Page 120 STAT. 2113]]

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

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

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

    [[Page 120 STAT. 2114]]

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

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

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

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

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

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

    [[Page 120 STAT. 2115]]

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

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

    [[Page 120 STAT. 2116]]

                   Subtitle E--Joint and Multiservice Matters

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

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

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

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

                   Subtitle A--Authorization of Appropriations

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

         Subtitle B--Program Requirements, Restrictions, and Limitations

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

                      Subtitle C--Missile Defense Programs

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

    [[Page 120 STAT. 2117]]

                            Subtitle D--Other Matters

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

                   Subtitle A--Authorization of Appropriations

    SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

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

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

         Subtitle B--Program Requirements, Restrictions, and Limitations

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

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

    [[Page 120 STAT. 2118]]

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

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

    [[Page 120 STAT. 2119]]

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

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

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

    [[Page 120 STAT. 2120]]

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

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

    [[Page 120 STAT. 2121]]

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

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

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

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

    [[Page 120 STAT. 2122]]

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

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

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

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

    [[Page 120 STAT. 2123]]

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

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

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

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

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

    [[Page 120 STAT. 2124]]

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

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

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

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

    [[Page 120 STAT. 2125]]

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

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

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

    [[Page 120 STAT. 2126]]

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

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

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

    [[Page 120 STAT. 2127]]

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

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

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

    [[Page 120 STAT. 2128]]

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

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

    [[Page 120 STAT. 2129]]

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

                      Subtitle C--Missile Defense Programs

    SEC. 221. FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES.

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

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

    [[Page 120 STAT. 2130]]

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

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

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

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

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

    [[Page 120 STAT. 2131]]

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

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

                            Subtitle D--Other Matters

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

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

    [[Page 120 STAT. 2132]]

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

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

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

    [[Page 120 STAT. 2133]]

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

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

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

    [[Page 120 STAT. 2134]]

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

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

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

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

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

                      TITLE III--OPERATION AND MAINTENANCE

                   Subtitle A--Authorization of Appropriations

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

                      Subtitle B--Environmental Provisions

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

    [[Page 120 STAT. 2135]]

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

         Subtitle C--Program Requirements, Restrictions, and Limitations

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

                     Subtitle D--Workplace and Depot Issues

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

                               Subtitle E--Reports

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

                            Subtitle F--Other Matters

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

                   Subtitle A--Authorization of Appropriations

    SEC. 301. OPERATION AND MAINTENANCE FUNDING.

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

    [[Page 120 STAT. 2136]]

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

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

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

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

    [[Page 120 STAT. 2137]]

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

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

                      Subtitle B--Environmental Provisions

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

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

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

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

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

    [[Page 120 STAT. 2138]]

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

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

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

    [[Page 120 STAT. 2139]]

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

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

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

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

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

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

    [[Page 120 STAT. 2140]]

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

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

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

        (e) Definitions.--In this section:

    [[Page 120 STAT. 2141]]

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

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

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

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

    [[Page 120 STAT. 2142]]

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

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

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

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

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

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

    [[Page 120 STAT. 2143]]

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

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

    [[Page 120 STAT. 2144]]

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

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

         Subtitle C--Program Requirements, Restrictions, and Limitations

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

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

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

    [[Page 120 STAT. 2145]]

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

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

    [[Page 120 STAT. 2146]]

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

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

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

    [[Page 120 STAT. 2147]]

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

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

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

    [[Page 120 STAT. 2148]]

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

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

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

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

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

    [[Page 120 STAT. 2149]]

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

                     Subtitle D--Workplace and Depot Issues

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

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

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

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

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

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

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

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

    [[Page 120 STAT. 2150]]

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

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

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

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

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

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

    [[Page 120 STAT. 2151]]

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

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

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

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

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

    [[Page 120 STAT. 2152]]

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

                               Subtitle E--Reports

    SEC. 341. REPORT ON NAVY FLEET RESPONSE PLAN.

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

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

    [[Page 120 STAT. 2153]]

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

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

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

    [[Page 120 STAT. 2154]]

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

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

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

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

    [[Page 120 STAT. 2155]]

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

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

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

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

    [[Page 120 STAT. 2156]]

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

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

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

    [[Page 120 STAT. 2157]]

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

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

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

    [[Page 120 STAT. 2158]]

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

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

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

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

    [[Page 120 STAT. 2159]]

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

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

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

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

    [[Page 120 STAT. 2160]]

                            Subtitle F--Other Matters

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

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

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

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

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

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

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

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

    [[Page 120 STAT. 2161]]

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

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

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

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

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

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

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

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

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

    [[Page 120 STAT. 2162]]

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

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

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

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

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

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

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

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

    [[Page 120 STAT. 2163]]

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

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

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

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

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

    [[Page 120 STAT. 2164]]

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

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

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

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

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

    [[Page 120 STAT. 2165]]

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

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

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

    [[Page 120 STAT. 2166]]

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

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

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

    [[Page 120 STAT. 2167]]

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

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

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

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

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

    [[Page 120 STAT. 2168]]

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

                   TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                            Subtitle A--Active Forces

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

                           Subtitle B--Reserve Forces

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

                   Subtitle C--Authorization of Appropriations

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

                            Subtitle A--Active Forces

    SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

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

    [[Page 120 STAT. 2169]]

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

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

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

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

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

    [[Page 120 STAT. 2170]]

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

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

                           Subtitle B--Reserve Forces

    SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

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

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

    [[Page 120 STAT. 2171]]

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

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

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

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

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

    [[Page 120 STAT. 2172]]

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

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

                   Subtitle C--Authorization of Appropriations

    SEC. 421. MILITARY PERSONNEL.

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

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

                       TITLE V--MILITARY PERSONNEL POLICY

                      Subtitle A--Officer Personnel Policy

                   Part I--Officer Personnel Policy Generally

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

                        Part II--Officer Promotion Policy

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

    [[Page 120 STAT. 2173]]

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

                 Part III--Joint Officer Management Requirements

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

                      Subtitle B--Reserve Component Matters

                      Part I--Reserve Component Management

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

             Part II--Authorities Relating to Guard and Reserve Duty

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

                       Subtitle C--Education and Training

                            Part I--Service Academies

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

             Part II--Scholarship and Financial Assistance Programs

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

                          Part III--Junior ROTC Program

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

                 Part IV--Other Education and Training Programs

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

    [[Page 120 STAT. 2174]]

                     Subtitle D--General Service Authorities

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

                      Subtitle E--Military Justice Matters

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

                       Subtitle F--Decorations and Awards

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

                   Subtitle G--Matters Relating to Casualties

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

         Subtitle H--Impact Aid and Defense Dependents Education System

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

                    Subtitle I--Armed Forces Retirement Home

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

                               Subtitle J--Reports

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

    [[Page 120 STAT. 2175]]

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

                            Subtitle K--Other Matters

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

                      Subtitle A--Officer Personnel Policy

                   PART I--OFFICER PERSONNEL POLICY GENERALLY

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

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

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

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

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

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

    [[Page 120 STAT. 2176]]

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

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

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

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

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

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

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

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

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

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

    [[Page 120 STAT. 2177]]

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

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

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

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

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

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

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

    [[Page 120 STAT. 2178]]

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

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

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

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

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

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

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

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

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

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

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

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

    [[Page 120 STAT. 2179]]

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

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

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

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

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

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

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

    [[Page 120 STAT. 2180]]

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

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

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

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

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

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

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

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

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

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

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

    [[Page 120 STAT. 2181]]

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

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

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

                        PART II--OFFICER PROMOTION POLICY

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

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

    [[Page 120 STAT. 2182]]

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

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

    [[Page 120 STAT. 2183]]

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

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

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

    [[Page 120 STAT. 2184]]

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

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

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

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

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

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

    [[Page 120 STAT. 2185]]

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

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

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

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

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

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

    [[Page 120 STAT. 2186]]

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

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

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

    [[Page 120 STAT. 2187]]

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

                 PART III--JOINT OFFICER MANAGEMENT REQUIREMENTS

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

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

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

    [[Page 120 STAT. 2188]]

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

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

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

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

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

    [[Page 120 STAT. 2189]]

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

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

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

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

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

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

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

    [[Page 120 STAT. 2190]]

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

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

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

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

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

    [[Page 120 STAT. 2191]]

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

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

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

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

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

    [[Page 120 STAT. 2192]]

                      Subtitle B--Reserve Component Matters

                      PART I--RESERVE COMPONENT MANAGEMENT

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

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

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

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

    [[Page 120 STAT. 2193]]

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

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

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

             PART II--AUTHORITIES RELATING TO GUARD AND RESERVE DUTY

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

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

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

    [[Page 120 STAT. 2194]]

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

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

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

    [[Page 120 STAT. 2195]]

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

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

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

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

    [[Page 120 STAT. 2196]]

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

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

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

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

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

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

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

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

    [[Page 120 STAT. 2197]]

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

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

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

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

    [[Page 120 STAT. 2198]]

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

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

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

                       Subtitle C--Education and Training

                            PART I--SERVICE ACADEMIES

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

        (a) United States Military Academy.--

    [[Page 120 STAT. 2199]]

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

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

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

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

    [[Page 120 STAT. 2200]]

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

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

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

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

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

    [[Page 120 STAT. 2201]]

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

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

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

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

    [[Page 120 STAT. 2202]]

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

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

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

    [[Page 120 STAT. 2203]]

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

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

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

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

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

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

    [[Page 120 STAT. 2204]]

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

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

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

    [[Page 120 STAT. 2205]]

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

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

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

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

    [[Page 120 STAT. 2206]]

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

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

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

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

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

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

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

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

    [[Page 120 STAT. 2207]]

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

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

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

             PART II--SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAMS

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

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

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

    [[Page 120 STAT. 2208]]

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

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

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

    [[Page 120 STAT. 2209]]

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

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

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

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

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

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

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

    [[Page 120 STAT. 2210]]

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

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

                          PART III--JUNIOR ROTC PROGRAM

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

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

    ``Sec. 2033. Instructor qualifications

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

    [[Page 120 STAT. 2211]]

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

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

    ``2033. Instructor qualifications.''.

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

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

    [[Page 120 STAT. 2212]]

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

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

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

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

    [[Page 120 STAT. 2213]]

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

                 PART IV--OTHER EDUCATION AND TRAINING PROGRAMS

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

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

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

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

    [[Page 120 STAT. 2214]]

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

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

                     Subtitle D--General Service Authorities

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

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

    [[Page 120 STAT. 2215]]

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

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

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

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

    ``Sec. 613a. Nondisclosure of board proceedings

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

    [[Page 120 STAT. 2216]]

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

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

    ``Sec. 14104. Nondisclosure of board proceedings

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

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

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

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

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

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

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

    [[Page 120 STAT. 2217]]

                      Subtitle E--Military Justice Matters

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

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

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

                       Subtitle F--Decorations and Awards

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

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

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

    [[Page 120 STAT. 2218]]

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

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

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

    [[Page 120 STAT. 2219]]

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

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

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

                   Subtitle G--Matters Relating to Casualties

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

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

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

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

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

    [[Page 120 STAT. 2220]]

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

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

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

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

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

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

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

    [[Page 120 STAT. 2221]]

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

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

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

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

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

    [[Page 120 STAT. 2222]]

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

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

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

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

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

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

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

        (d) Activities of Center.--

    [[Page 120 STAT. 2223]]

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

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

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

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

    [[Page 120 STAT. 2224]]

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

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

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

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

    [[Page 120 STAT. 2225]]

         Subtitle H--Impact Aid and Defense Dependents Education System

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

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

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

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

    [[Page 120 STAT. 2226]]

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

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

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

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

    [[Page 120 STAT. 2227]]

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

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

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

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

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

    [[Page 120 STAT. 2228]]

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

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

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

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

    [[Page 120 STAT. 2229]]

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

                    Subtitle I--Armed Forces Retirement Home

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

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

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

    [[Page 120 STAT. 2230]]

                               Subtitle J--Reports

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

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

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

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

    [[Page 120 STAT. 2231]]

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

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

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

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

    [[Page 120 STAT. 2232]]

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

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

                            Subtitle K--Other Matters

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

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

    [[Page 120 STAT. 2233]]

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

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

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

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

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

    [[Page 120 STAT. 2234]]

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

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

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

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

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

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

    [[Page 120 STAT. 2235]]

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

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

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

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

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

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

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

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

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

    [[Page 120 STAT. 2236]]

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

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

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

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

    ``Sec. 1222. Physical evaluation boards

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

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

    [[Page 120 STAT. 2237]]

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

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

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

    ``1222.  Physical evaluation boards.''.

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

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

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

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

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

    [[Page 120 STAT. 2238]]

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

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

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

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

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

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

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

    [[Page 120 STAT. 2239]]

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

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

               TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                         Subtitle A--Pay and Allowances

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

               Subtitle B--Bonuses and Special and Incentive Pays

    Sec. 611. Extension of certain bonus and special pay authorities for
               reserve forces.
    Sec. 612. Extension of certain bonus and special pay authorities for
               health care professionals.
    Sec. 613. Extension of special pay and bonus authorities for nuclear
               officers.
    Sec. 614. Extension of authorities relating to payment of other bonuses
               and special pays.
    Sec. 615. Expansion of eligibility of dental officers for additional
               special pay.
    Sec. 616. Increase in maximum annual rate of special pay for Selected
               Reserve health care professionals in critically short wartime
               specialties.
    Sec. 617. Expansion and enhancement of accession bonus authorities for
               certain officers in health care specialities.
    Sec. 618. Authority to provide lump sum payment of nuclear officer
               incentive pay.
    Sec. 619. Increase in maximum amount of nuclear career accession bonus.
    Sec. 620. Increase in maximum amount of incentive bonus for transfer
               between Armed Forces.
    Sec. 621. Additional authorities and incentives to encourage retired
               members and reserve component members to volunteer to serve
               on active duty in high-demand, low-density assignments.
    Sec. 622. Accession bonus for members of the Armed Forces appointed as
               commissioned officers after completing officer candidate
               school.
    Sec. 623. Modification of certain authorities applicable to the targeted
               shaping of the Armed Forces.
    Sec. 624. Enhancement of bonus to encourage certain persons to refer
               other persons for enlistment in the Army.

                Subtitle C--Travel and Transportation Allowances

    Sec. 631. Travel and transportation allowances for transportation of
               family members incident to illness or injury of members.

                  Subtitle D--Retired Pay and Survivor Benefits

    Sec. 641. Retired pay of general and flag officers to be based on rates
               of basic pay provided by law.
    Sec. 642. Inapplicability of retired pay multiplier maximum percentage
               to certain service of members of the Armed Forces in excess
               of 30 years.
    Sec. 643. Military Survivor Benefit Plan beneficiaries under insurable
               interest coverage.
    Sec. 644. Modification of eligibility for commencement of authority for
               optional annuities for dependents under the Survivor Benefit
               Plan.

    [[Page 120 STAT. 2240]]

    Sec. 645. Study of training costs, manning, operations tempo, and other
               factors that affect retention of members of the Armed Forces
               with special operations designations.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

    Sec. 661. Treatment of price surcharges of certain merchandise sold at
               commissary stores.
    Sec. 662. Limitations on lease of non-excess Department of Defense
               property for protection of morale, welfare, and recreation
               activities and revenue.
    Sec. 663. Report on cost effectiveness of purchasing commercial
               insurance for commissary and exchange facilities and
               facilities of other morale, welfare, and recreation programs
               and nonappropriated fund instrumentalities.
    Sec. 664. Study and report regarding access of disabled persons to
               morale, welfare, and recreation facilities and activities.

                            Subtitle F--Other Matters

    Sec. 670. Limitations on terms of consumer credit extended to
               servicemembers and dependents.
    Sec. 671. Enhancement of authority to waive claims for overpayment of
               pay and allowances and travel and transportation allowances.
    Sec. 672. Exception for notice to consumer reporting agencies regarding
               debts or erroneous payments pending a decision to waive,
               remit, or cancel.
    Sec. 673. Expansion and enhancement of authority to remit or cancel
               indebtedness of members and former members of the Armed
               Forces incurred on active duty.
    Sec. 674. Phased recovery of overpayments of pay made to members of the
               uniformed services.
    Sec. 675. Joint family support assistance program.
    Sec. 676. Special working group on transition to civilian employment of
               National Guard and Reserve members returning from deployment
               in Operation Iraqi Freedom or Operation Enduring Freedom.
    Sec. 677. Audit of pay accounts of members of the Army evacuated from a
               combat zone for inpatient care.
    Sec. 678. Report on eligibility and provision of assignment incentive
               pay.
    Sec. 679. Sense of Congress calling for payment to World War II veterans
               who survived Bataan Death March.

                         Subtitle A--Pay and Allowances

    SEC. 601. <<NOTE: Effective dates. 37 USC 1009 note.>> FISCAL YEAR
                            2007 INCREASE IN MILITARY BASIC PAY AND
                            REFORM OF BASIC PAY RATES.

        (a) Waiver of Section 1009 Adjustment.--The adjustment to become
    effective during fiscal year 2007 required by section 1009 of title 37,
    United States Code, in the rates of monthly basic pay authorized members
    of the uniformed services shall not be made.
        (b) January 1, 2007, Increase in Basic Pay.--Effective on January 1,
    2007, the rates of monthly basic pay for members of the uniformed
    services are increased by 2.2 percent.
        (c) Reform of Basic Pay Rates.--Effective on April 1, 2007, the
    rates of monthly basic pay for members of the uniformed services within
    each pay grade (and with years of service computed under section 205 of
    title 37, United States Code) are as follows:

                                                 COMMISSIONED OFFICERS1
    ----------------------------------------------------------------------------------------------------------------
                     Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
    ----------------------------------------------------------------------------------------------------------------
    O-8                                             8,453.10      8,729.70      8,913.60      8,964.90      9,194.10
    O-7                                             7,023.90      7,350.00      7,501.20      7,621.20      7,838.40
    O-6                                             5,206.20      5,719.20      6,094.50      6,094.50      6,117.60
    O-5                                             4,339.80      4,888.80      5,227.50      5,291.10      5,502.00
    O-4                                             3,744.60      4,334.70      4,623.90      4,688.40      4,956.90
    O-3 3                                           3,292.20      3,732.30      4,028.40      4,392.00      4,602.00

    [[Page 120 STAT. 2241]]

    O-2 3                                           2,844.30      3,239.70      3,731.40      3,857.40      3,936.60
    O-1 3                                           2,469.30      2,569.80      3,106.50      3,106.50      3,106.50
                                               ---------------------------------------------------------------------
                                                   Over 8        Over 10       Over 12       Over 14       Over 16
                                               ---------------------------------------------------------------------
    O-8                                             9,577.20      9,666.30     10,030.20     10,134.30     10,447.80
    O-7                                             8,052.90      8,301.30      8,548.80      8,797.20      9,577.20
    O-6                                             6,380.10      6,414.60      6,414.60      6,779.10      7,423.80
    O-5                                             5,628.60      5,906.40      6,110.10      6,373.20      6,776.40
    O-4                                             5,244.60      5,602.80      5,882.40      6,076.20      6,187.50
    O-3 3                                           4,833.00      4,982.70      5,228.40      5,355.90      5,355.90
    O-2 3                                           3,936.60      3,936.60      3,936.60      3,936.60      3,936.60
    O-1 3                                           3,106.50      3,106.50      3,106.50      3,106.50      3,106.50
                                               ---------------------------------------------------------------------
                                                   Over 18       Over 20       Over 22       Over 24       Over 26
                                               ---------------------------------------------------------------------
    O-10 2                                             $0.00    $13,659.00    $13,725.90    $14,011.20    $14,508.60
    O-9                                                 0.00     11,946.60     12,118.50     12,367.20     12,801.30
    O-8                                            10,900.80     11,319.00     11,598.30     11,598.30     11,598.30
    O-7                                            10,236.00     10,236.00     10,236.00     10,236.00     10,287.90
    O-6                                             7,802.10      8,180.10      8,395.20      8,613.00      9,035.70
    O-5                                             6,968.10      7,158.00      7,373.10      7,373.10      7,373.10
    O-4                                             6,252.30      6,252.30      6,252.30      6,252.30      6,252.30
    O-3 3                                           5,355.90      5,355.90      5,355.90      5,355.90      5,355.90
    O-2 3                                           3,936.60      3,936.60      3,936.60      3,936.60      3,936.60
    O-1 3                                           3,106.50      3,106.50      3,106.50      3,106.50      3,106.50
                                               ---------------------------------------------------------------------
                                                   Over 28       Over 30       Over 32       Over 34       Over 36
                                               ---------------------------------------------------------------------
    O-10 2                                        $14,508.60    $15,234.00    $15,234.00    $15,995.70    $15,995.70
    O-9                                            12,801.30     13,441.50     13,441.50     14,113.50     14,113.50
    O-8                                            11,598.30     11,888.40     11,888.40     12,185.70     12,185.70
    O-7                                            10,287.90     10,493.70     10,493.70     10,493.70     10,493.70
    O-6                                             9,035.70      9,216.30      9,216.30      9,216.30      9,216.30
    O-5                                             7,373.10      7,373.10      7,373.10      7,373.10      7,373.10
    O-4                                             6,252.30      6,252.30      6,252.30      6,252.30      6,252.30
    O-3 3                                           5,355.90      5,355.90      5,355.90      5,355.90      5,355.90
    O-2 3                                           3,936.60      3,936.60      3,936.60      3,936.60      3,936.60
    O-1 3                                           3,106.50      3,106.50      3,106.50      3,106.50      3,106.50
                                               ---------------------------------------------------------------------
                                                   Over 38       Over 40
                                               ---------------------------------------------------------------------
    O-10 2                                        $16,795.50    $16,795.50
    O-9                                            14,819.10     14,819.10
    O-8                                            12,185.70     12,185.70
    O-7                                            10,493.70     10,493.70
    O-6                                             9,216.30      9,216.30
    O-5                                             7,373.10      7,373.10
    O-4                                             6,252.30      6,252.30
    O-3 3                                           5,355.90      5,355.90
    O-2 3                                           3,936.60      3,936.60
    O-1 3                                           3,106.50      3,106.50
    ----------------------------------------------------------------------------------------------------------------
    1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for commissioned
      oficers in pay grades 0-7 through 0-10 may not exceed the rate of pay for level II of the Executive Schedule
      and the actual rate of basic pay for all other officers may not exceed the rate of pay for level V of the
      Executive Schedule.
    2 Subject to the preceding footnote, while serving as Chairman or Vice Chairman of the Joint Chiefs of Staff,
      Chief of Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air Force, Commandant of the
      Marine Corps, Commandant of the Coast Guard, or commander of a unified or specified combatant command (as
      defined in section 161(c) of title 10, United States Code), basic pay for this grade is $17,972.10, regardless
      of cumulative years of service computed under section 205 of title 37, United States Code.
    3 This table does not apply to commissioned officers in pay grade O-1, O-2, or O-3 who have been credited with
      over 4 years of active duty service as an enlisted member or warrant officer.

    [[Page 120 STAT. 2242]]

         COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER
    ----------------------------------------------------------------------------------------------------------------
                     Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
    ----------------------------------------------------------------------------------------------------------------
    O-3E                                               $0.00         $0.00         $0.00     $4,392.00     $4,602.00
    O-2E                                                0.00          0.00          0.00      3,857.40      3,936.60
    O-1E                                                0.00          0.00          0.00      3,106.50      3,317.70
                                               ---------------------------------------------------------------------
                                                   Over 8        Over 10       Over 12       Over 14       Over 16
                                               ---------------------------------------------------------------------
    O-3E                                           $4,833.00     $4,982.70     $5,228.40     $5,435.40     $5,554.20
    O-2E                                            4,062.00      4,273.50      4,437.00      4,558.80      4,558.80
    O-1E                                            3,440.10      3,565.50      3,688.80      3,857.40      3,857.40
                                               ---------------------------------------------------------------------
                                                   Over 18       Over 20       Over 22       Over 24       Over 26
                                               ---------------------------------------------------------------------
    O-3E                                           $5,715.90     $5,715.90     $5,715.90     $5,715.90     $5,715.90
    O-2E                                            4,558.80      4,558.80      4,558.80      4,558.80      4,558.80
    O-1E                                            3,857.40      3,857.40      3,857.40      3,857.40      3,857.40
                                               ---------------------------------------------------------------------
                                                   Over 28       Over 30       Over 32       Over 34       Over 36
                                               ---------------------------------------------------------------------
    O-3E                                           $5,715.90     $5,715.90     $5,715.90     $5,715.90     $5,715.90
    O-2E                                            4,558.80      4,558.80      4,558.80      4,558.80      4,558.80
    O-1E                                            3,857.40      3,857.40      3,857.40      3,857.40      3,857.40
                                               ---------------------------------------------------------------------
                                                   Over 38       Over 40
                                               ---------------------------------------------------------------------
    O-3E                                           $5,715.90     $5,715.90
    O-2E                                            4,558.80      4,558.80
    O-1E                                            3,857.40      3,857.40
    ----------------------------------------------------------------------------------------------------------------

    [[Page 120 STAT. 2243]]

                                                   WARRANT OFFICERS 1
    ----------------------------------------------------------------------------------------------------------------
                     Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
    ----------------------------------------------------------------------------------------------------------------
    W-5                                                $0.00         $0.00         $0.00         $0.00         $0.00
    W-4                                             3,402.00      3,660.00      3,765.00      3,868.50      4,046.40
    W-3                                             3,106.80      3,236.40      3,369.00      3,412.80      3,552.00
    W-2                                             2,749.20      3,009.30      3,089.40      3,144.60      3,322.80
    W-1                                             2,413.20      2,672.40      2,742.90      2,890.50      3,065.10
                                               ---------------------------------------------------------------------
                                                   Over 8        Over 10       Over 12       Over 14       Over 16
                                               ---------------------------------------------------------------------
    W-5                                                $0.00         $0.00         $0.00         $0.00         $0.00
    W-4                                             4,222.20      4,400.70      4,669.20      4,904.40      5,128.20
    W-3                                             3,825.90      4,110.90      4,245.30      4,400.40      4,560.30
    W-2                                             3,600.00      3,737.10      3,872.40      4,037.70      4,166.70
    W-1                                             3,322.20      3,442.20      3,610.20      3,775.50      3,905.10
                                               ---------------------------------------------------------------------
                                                   Over 18       Over 20       Over 22       Over 24       Over 26
                                               ---------------------------------------------------------------------
    W-5                                                $0.00     $6,049.50     $6,356.40     $6,585.00     $6,838.20
    W-4                                             5,310.90      5,489.70      5,752.20      5,967.60      6,213.60
    W-3                                             4,847.70      5,042.40      5,158.50      5,282.10      5,450.10
    W-2                                             4,284.00      4,423.80      4,515.90      4,589.40      4,589.40
    W-1                                             4,024.50      4,170.00      4,170.00      4,170.00      4,170.00
                                               ---------------------------------------------------------------------
                                                   Over 28       Over 30       Over 32       Over 34       Over 36
                                               ---------------------------------------------------------------------
    W-5                                            $6,838.20     $7,180.20     $7,180.20     $7,539.30     $7,539.30
    W-4                                             6,213.60      6,337.80      6,337.80      6,337.80      6,337.80
    W-3                                             5,450.10      5,450.10      5,450.10      5,450.10      5,450.10
    W-2                                             4,589.40      4,589.40      4,589.40      4,589.40      4,589.40
    W-1                                             4,170.00      4,170.00      4,170.00      4,170.00      4,170.00
                                               ---------------------------------------------------------------------
                                                   Over 38       Over 40
                                               ---------------------------------------------------------------------
    W-5                                            $7,916.40     $7,916.40
    W-4                                             6,337.80      6,337.80
    W-3                                             5,450.10      5,450.10
    W-2                                             4,589.40      4,589.40
    W-1                                             4,170.00      4,170.00
    ----------------------------------------------------------------------------------------------------------------
    1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for warrant officers
      may not exceed the rate of pay for level V of the Executive Schedule.

    [[Page 120 STAT. 2244]]

                                                   ENLISTED MEMBERS 1
    ----------------------------------------------------------------------------------------------------------------
                     Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
    ----------------------------------------------------------------------------------------------------------------
    E-9 2                                              $0.00         $0.00         $0.00         $0.00         $0.00
    E-8                                                 0.00          0.00          0.00          0.00          0.00
    E-7                                             2,339.10      2,553.00      2,650.80      2,780.70      2,881.50
    E-6                                             2,023.20      2,226.00      2,324.40      2,419.80      2,519.40
    E-5                                             1,854.00      1,977.90      2,073.30      2,171.40      2,323.80
    E-4                                             1,699.50      1,786.50      1,883.10      1,978.50      2,062.80
    E-3                                             1,534.20      1,630.80      1,729.20      1,729.20      1,729.20
    E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
    E-1 3                                           1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
                                               ---------------------------------------------------------------------
                                                   Over 8        Over 10       Over 12       Over 14       Over 16
                                               ---------------------------------------------------------------------
    E-9 2                                              $0.00     $4,110.60     $4,203.90     $4,321.20     $4,459.50
    E-8                                             3,364.80      3,513.90      3,606.00      3,716.40      3,835.80
    E-7                                             3,055.20      3,152.70      3,326.70      3,471.00      3,569.70
    E-6                                             2,744.10      2,831.40      3,000.00      3,051.90      3,089.70
    E-5                                             2,483.70      2,613.90      2,630.10      2,630.10      2,630.10
    E-4                                             2,062.80      2,062.80      2,062.80      2,062.80      2,062.80
    E-3                                             1,729.20      1,729.20      1,729.20      1,729.20      1,729.20
    E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
    E-1 3                                           1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
                                               ---------------------------------------------------------------------
                                                   Over 18       Over 20       Over 22       Over 24       Over 26
                                               ---------------------------------------------------------------------
    E-9 2                                          $4,598.40     $4,821.60     $5,010.30     $5,209.20     $5,512.80
    E-8                                             4,051.80      4,161.30      4,347.30      4,450.50      4,704.90
    E-7                                             3,674.40      3,715.50      3,852.00      3,925.20      4,204.20
    E-6                                             3,133.50      3,133.50      3,133.50      3,133.50      3,133.50
    E-5                                             2,630.10      2,630.10      2,630.10      2,630.10      2,630.10
    E-4                                             2,062.80      2,062.80      2,062.80      2,062.80      2,062.80
    E-3                                             1,729.20      1,729.20      1,729.20      1,729.20      1,729.20
    E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
    E-1 3                                           1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
                                               ---------------------------------------------------------------------
                                                   Over 28       Over 30       Over 32       Over 34       Over 36
                                               ---------------------------------------------------------------------
    E-9 2                                          $5,512.80     $5,788.50     $5,788.50     $6,078.00     $6,078.00
    E-8                                             4,704.90      4,799.10      4,799.10      4,799.10      4,799.10
    E-7                                             4,204.20      4,204.20      4,204.20      4,204.20      4,204.20
    E-6                                             3,133.50      3,133.50      3,133.50      3,133.50      3,133.50
    E-5                                             2,630.10      2,630.10      2,630.10      2,630.10      2,630.10
    E-4                                             2,062.80      2,062.80      2,062.80      2,062.80      2,062.80
    E-3                                             1,729.20      1,729.20      1,729.20      1,729.20      1,729.20
    E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
    E-1                                             1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
                                               ---------------------------------------------------------------------
                                                   Over 38       Over 40
                                               ---------------------------------------------------------------------
    E-9 2                                          $6,381.90     $6,381.90
    E-8                                             4,799.10      4,799.10
    E-7                                             4,204.20      4,204.20
    E-6                                             3,133.50      3,133.50
    E-5                                             2,630.10      2,630.10
    E-4                                             2,062.80      2,062.80
    E-3                                             1,729.20      1,729.20
    E-2                                             1,458.90      1,458.90
    E-1                                             1,301.40      1,301.40
    ----------------------------------------------------------------------------------------------------------------
    1 Notwithstanding the pay rates specified in this table, the actual basic pay for enlisted members may not
      exceed the rate of pay for level V of the Executive Schedule.

    [[Page 120 STAT. 2245]]

    2 Subject to the preceding footnote, the rate of basic pay for an enlisted member in this grade while serving as
      Sergeant Major of the Army, Master Chief Petty Officer of the Navy, Chief Master Sergeant of the Air Force,
      Sergeant Major of the Marine Corps, Master Chief Petty Officer of the Coast Guard, or Senior Enlisted Advisor
      to the Chairman of the Joint Chiefs of Staff is $6,642.60, regardless of cumulative years of service computed
      under section 205 of title 37, United States Code.
    3 In the case of members in pay grade E-1 who have served less than 4 months on active duty, the rate of basic
      pay is $1,203.90.

    SEC. 602. INCREASE IN MAXIMUM RATE OF BASIC PAY FOR GENERAL AND
                            FLAG OFFICER GRADES TO CONFORM TO INCREASE
                            IN PAY CAP FOR SENIOR EXECUTIVE SERVICE
                            PERSONNEL.

        (a) Increase.--Section 203(a)(2) of title 37, United States Code, is
    amended by striking ``level III of the Executive Schedule'' and
    inserting ``level II of the Executive Schedule''.
        (b) <<NOTE: 37 USC 203 note.>> Effective Date.--The amendment made
    by subsection (a) shall take effect on January 1, 2007, and shall apply
    with respect to months beginning on or after that date.
    SEC. 603. ONE-YEAR EXTENSION OF PROHIBITION AGAINST REQUIRING
                            CERTAIN INJURED MEMBERS TO PAY FOR MEALS
                            PROVIDED BY MILITARY TREATMENT FACILITIES.

        (a) Extension.--Section 402(h)(3) of title 37, United States Code,
    is amended by striking ``December 31, 2006'' and inserting ``December
    31, 2007''.
        (b) Report on Administration of Prohibition.--Not later than
    February 1, 2007, the Secretary of Defense shall submit to the
    congressional defense committees a report on the administration of
    section 402(h) of title 37, United States Code. The report shall
    include--
                (1) a description and assessment of the mechanisms used by
            the military departments to implement the prohibition contained
            in such section; and
                (2) such recommendations as the Secretary considers
            appropriate regarding making such prohibition permanent.
    SEC. 604. AVAILABILITY OF SECOND BASIC ALLOWANCE FOR HOUSING FOR
                            CERTAIN RESERVE COMPONENT OR RETIRED
                            MEMBERS SERVING IN SUPPORT OF CONTINGENCY
                            OPERATIONS.

        (a) Availability.--Section 403(g) of title 37, United States Code,
    is amended--
                (1) by redesignating paragraphs (2), (3), and (4) as
            paragraphs (3), (4), and (5), respectively;
                (2) by inserting after paragraph (1) the following new
            paragraph (2):

        ``(2) The Secretary concerned may provide a basic allowance for
    housing to a member described in paragraph (1) at a monthly rate equal
    to the rate of the basic allowance for housing established under
    subsection (b) or the overseas basic allowance for housing established
    under subsection (c), whichever applies to the location at which the
    member is serving, for members in the same grade at that location
    without dependents. The member may receive both a basic allowance for
    housing under paragraph (1) and under this paragraph for the same month,
    but may not receive the portion of the allowance authorized under
    section 404 of this title, if any, for lodging expenses if a basic
    allowance for housing is provided under this paragraph.''; and
                (3) in paragraph (3), as so redesignated, by striking
            ``Paragraph (1)'' and inserting ``Paragraphs (1) and (2)''.

    [[Page 120 STAT. 2246]]

        (b) <<NOTE: 37 USC 403 note.>> Effective Date.--Paragraph (2) of
    section 403(g) of title 37, United States Code, as added by subsection
    (a), shall apply with respect to months beginning on or after October 1,
    2006.
    SEC. 605. EXTENSION OF TEMPORARY CONTINUATION OF HOUSING ALLOWANCE
                            FOR DEPENDENTS OF MEMBERS DYING ON ACTIVE
                            DUTY TO SPOUSES WHO ARE ALSO MEMBERS.

        (a) Extension.--Section 403(l) of title 37, United States Code, is
    amended--
                (1) by redesignating paragraph (3) as paragraph (4); and
                (2) by inserting after paragraph (2) the following new
            paragraph:

        ``(3) An allowance may be paid under paragraph (2) to the spouse of
    the deceased member even though the spouse is also a member of the
    uniformed services. The allowance paid under such paragraph is in
    addition to any other pay and allowances to which the spouse is entitled
    as a member.''.
        (b) <<NOTE: 37 USC 403 note.>> Effective Date.--
                (1) General rule.--The amendments made by subsection (a)
            shall take effect on October 1, 2006.
                (2) Transitional rule.--After October 1, 2006, the Secretary
            of Defense, and the Secretary of Homeland Security in the case
            of the Coast Guard, may pay the allowance authorized by section
            403(l)(2) of title 37, United States Code, to a member of the
            uniformed services who is the spouse of a member who died on
            active duty during the one-year period ending on that date,
            except that the payment of the allowance must terminate within
            365 days after the date of the member's death.
    SEC. 606. PAYMENT OF FULL PREMIUM FOR COVERAGE UNDER
                            SERVICEMEMBERS' GROUP LIFE INSURANCE
                            PROGRAM DURING SERVICE IN OPERATION
                            ENDURING FREEDOM OR OPERATION IRAQI
                            FREEDOM.

        (a) Enhanced Allowance To Cover SGLI Deductions.--Subsection (a)(1)
    of section 437 of title 37, United States Code, is amended by striking
    ``for the first $150,000'' and all that follows through ``of such
    title'' and inserting ``for the amount of Servicemembers' Group Life
    Insurance coverage held by the member under section 1967 of such
    title''.
        (b) Conforming Amendments.--Such section is further amended--
                (1) in subsection (a)--
                        (A) by striking ``(1)'' before ``in the case of'';
                    and
                        (B) by striking paragraph (2);
                (2) by striking subsection (b); and
                (3) by redesignating subsection (c) as subsection (b) and in
            paragraph (2) of that subsection by striking ``coverage amount
            specified in subsection (a)(1) or in effect pursuant to
            subsection (b),'' and inserting ``maximum coverage amount
            available for such insurance,''.

        (c) Clerical Amendments.--The heading for such section, and the item
    relating to such section in the table of sections at the beginning of
    chapter 7 of such title, are each amended by striking the fourth and
    fifth words.
        (d) <<NOTE: 37 USC 403 note.>> Effective Date.--The amendments made
    by this section shall take effect on the first day of the first month
    beginning on or after the date of the enactment of this Act and shall
    apply

    [[Page 120 STAT. 2247]]

    with respect to service by members of the Armed Forces in the theater of
    operations for Operation Enduring Freedom or Operation Iraqi Freedom for
    months beginning on or after that date.
    SEC. 607. CLARIFICATION OF EFFECTIVE DATE OF PROHIBITION ON
                            COMPENSATION FOR CORRESPONDENCE COURSES.

        Section 206(d) of title 37, United States Code, is amended by adding
    at the end the following new paragraph:
        ``(3) The prohibition in paragraph (1), including the prohibition as
    it relates to a member of the National Guard while not in Federal
    service, applies to--
                ``(A) any work or study performed on or after September 7,
            1962, unless that work or study is specifically covered by the
            exception in paragraph (2); and
                ``(B) any claim based on that work or study arising after
            that date.''.
    SEC. 608. EXTENSION OF PILOT PROGRAM ON CONTRIBUTIONS TO THRIFT
                            SAVINGS PLAN FOR INITIAL ENLISTEES IN THE
                            ARMY.

        (a) Extension.--Subsection (a) of section 606 of the National
    Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119
    Stat. 3287; 37 U.S.C. 211 note) is amended by striking ``During fiscal
    year 2006'' and inserting ``During the period beginning on January 6,
    2006, and ending on December 31, 2008''.
        (b) Report Date.--Subsection (d)(1) of such section is amended by
    striking ``February 1, 2007'' and inserting ``February 1, 2008''.

               Subtitle B--Bonuses and Special and Incentive Pays

    SEC. 611. EXTENSION OF CERTAIN BONUS AND SPECIAL PAY AUTHORITIES
                            FOR RESERVE FORCES.

        (a) Selected Reserve Reenlistment Bonus.--Section 308b(g) of title
    37, United States Code, is amended by striking ``December 31, 2006'' and
    inserting ``December 31, 2007''.
        (b) Selected Reserve Affiliation or Enlistment Bonus.--Section
    308c(i) of such title is amended by striking ``December 31, 2006'' and
    inserting ``December 31, 2007''.
        (c) Special Pay for Enlisted Members Assigned to Certain High
    Priority Units.--Section 308d(c) of such title is amended by striking
    ``December 31, 2006'' and inserting ``December 31, 2007''.
        (d) Ready Reserve Enlistment Bonus for Persons Without Prior
    Service.--Section 308g(f)(2) of such title is amended by striking
    ``December 31, 2006'' and inserting ``December 31, 2007''.
        (e) Ready Reserve Enlistment and Reenlistment Bonus for Persons With
    Prior Service.--Section 308h(e) of such title is amended by striking
    ``December 31, 2006'' and inserting ``December 31, 2007''.
        (f) Selected Reserve Enlistment Bonus for Persons With Prior
    Service.--Section 308i(f) of such title is amended by striking
    ``December 31, 2006'' and inserting ``December 31, 2007''.

    [[Page 120 STAT. 2248]]

    SEC. 612. EXTENSION OF CERTAIN BONUS AND SPECIAL PAY AUTHORITIES
                            FOR HEALTH CARE PROFESSIONALS.

        (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1)
    of title 10, United States Code, is amended by striking ``December 31,
    2006'' and inserting ``December 31, 2007''.
        (b) Repayment of Education Loans for Certain Health Professionals
    Who Serve in the Selected Reserve.--Section 16302(d) of such title is
    amended by striking ``January 1, 2007'' and inserting ``January 1,
    2008''.
        (c) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of
    title 37, United States Code, is amended by striking ``December 31,
    2006'' and inserting ``December 31, 2007''.
        (d) Incentive Special Pay for Nurse Anesthetists.--Section
    302e(a)(1) of such title is amended by striking ``December 31, 2006''
    and inserting ``December 31, 2007''.
        (e) Special Pay for Selected Reserve Health Professionals in
    Critically Short Wartime Specialties.--Section 302g(e) of such title is
    amended by striking ``December 31, 2006'' and inserting ``December 31,
    2007''.
        (f) Accession Bonus for Dental Officers.--Section 302h(a)(1) of such
    title is amended by striking ``December 31, 2006'' and inserting
    ``December 31, 2007''.
        (g) Accession Bonus for Pharmacy Officers.--Section 302j(a) of such
    title is amended by striking ``December 31, 2006'' and inserting
    ``December 31, 2007''.
    SEC. 613. EXTENSION OF SPECIAL PAY AND BONUS AUTHORITIES FOR
                            NUCLEAR OFFICERS.

        (a) Special Pay for Nuclear-Qualified Officers Extending Period of
    Active Service.--Section 312(e) of title 37, United States Code, is
    amended by striking ``December 31, 2006'' and inserting ``December 31,
    2007''.
        (b) Nuclear Career Accession Bonus.--Section 312b(c) of such title
    is amended by striking ``December 31, 2006'' and inserting ``December
    31, 2007''.
        (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such
    title is amended by striking ``December 31, 2006'' and inserting
    ``December 31, 2007''.
    SEC. 614. EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF OTHER
                            BONUSES AND SPECIAL PAYS.

        (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37,
    United States Code, is amended by striking ``December 31, 2006'' and
    inserting ``December 31, 2007''.
        (b) Assignment Incentive Pay.--Section 307a(g) of such title is
    amended by striking ``December 31, 2007'' and inserting ``December 31,
    2008''.
        (c) Reenlistment Bonus for Active Members.--Section 308(g) of such
    title is amended by striking ``December 31, 2006'' and inserting
    ``December 31, 2007''.
        (d) Enlistment Bonus.--Section 309(e) of such title is amended by
    striking ``December 31, 2006'' and inserting ``December 31, 2007''.
        (e) Retention Bonus for Members With Critical Military Skills or
    Assigned to High Priority Units.--Section 323(i) of such title is
    amended by striking ``December 31, 2006'' and inserting ``December 31,
    2007''.

    [[Page 120 STAT. 2249]]

        (f) Accession Bonus for New Officers in Critical Skills.--Section
    324(g) of such title is amended by striking ``December 31, 2006'' and
    inserting ``December 31, 2007''.
        (g) Incentive Bonus for Conversion to Military Occupational
    Specialty to Ease Personnel Shortage.--Section 326(g) of such title is
    amended by striking ``December 31, 2006'' and inserting ``December 31,
    2007''.
        (h) Incentive Bonus for Transfer Between the Armed Forces.--Section
    327(h) of such title is amended by striking ``December 31, 2006'' and
    inserting ``December 31, 2009''.
    SEC. 615. EXPANSION OF ELIGIBILITY OF DENTAL OFFICERS FOR
                            ADDITIONAL SPECIAL PAY.

        (a) Repeal of Internship and Residency Exception.--Section
    302b(a)(4) of title 37, United States Code, is amended by striking the
    first sentence and inserting the following new sentence: ``An officer
    who is entitled to variable special pay under paragraph (2) or (3) is
    also entitled to additional special pay for any 12-month period during
    which an agreement executed under subsection (b) is in effect with
    respect to the officer.''.
        (b) <<NOTE: 37 USC 302b note.>> Effective Date.--The amendment made
    by this section shall take effect on October 1, 2006.
    SEC. 616. INCREASE IN MAXIMUM ANNUAL RATE OF SPECIAL PAY FOR
                            SELECTED RESERVE HEALTH CARE PROFESSIONALS
                            IN CRITICALLY SHORT WARTIME SPECIALTIES.

        (a) Increase.--Section 302g(a) of title 37, United States Code, is
    amended by striking ``$10,000'' and inserting ``$25,000''.
        (b) <<NOTE: 37 USC 302g note.>> Effective Date.--The amendment made
    by subsection (a) shall take effect on October 1, 2006, and shall apply
    to agreements entered into or revised under section 302g of title 37,
    United States Code, on or after that date.
    SEC. 617. EXPANSION AND ENHANCEMENT OF ACCESSION BONUS AUTHORITIES
                            FOR CERTAIN OFFICERS IN HEALTH CARE
                            SPECIALITIES.

        (a) Increase in Maximum Amount of Accession Bonus for Dental
    Officers.--Section 302h(a)(2) of title 37, United States Code, is
    amended by striking ``$30,000'' and inserting ``$200,000''.
        (b) Accession Bonus for Medical Officers in Critically Short Wartime
    Specialities.--Chapter 5 of title 37, United States Code, is amended by
    inserting after section 302j the following new section:

    ``Sec. 302k. Special pay: accession bonus for medical officers in
                            critically short wartime specialties

        ``(a) Accession Bonus Authorized.--A person who is a graduate of an
    accredited school of medicine or osteopathy in a specialty designated by
    regulations as a critically short wartime specialty and who executes a
    written agreement described in subsection (d) to accept a commission as
    an officer of the armed forces and remain on active duty for a period of
    not less than four consecutive years may, upon the acceptance of the
    agreement by the Secretary concerned, be paid an accession bonus in the
    amount determined by the Secretary concerned.
        ``(b) Amount of Bonus.--The amount of an accession bonus under
    subsection (a) may not exceed $400,000.

    [[Page 120 STAT. 2250]]

        ``(c) Limitation on Eligibility for Bonus.--A person may not be paid
    a bonus under subsection (a) if--
                ``(1) the person, in exchange for an agreement to accept an
            appointment as an officer, received financial assistance from
            the Department of Defense to pursue a course of study in
            medicine or osteopathy; or
                ``(2) the Secretary concerned determines that the person is
            not qualified to become and remain certified as a doctor or
            osteopath in a specialty designated by regulations as a
            critically short wartime specialty.

        ``(d) Agreement.--The agreement referred to in subsection (a) shall
    provide that, consistent with the needs of the armed force concerned,
    the person executing the agreement will be assigned to duty, for the
    period of obligated service covered by the agreement, as an officer of
    the Medical Corps of the Army or the Navy or as an officer of the Air
    Force designated as a medical officer in a specialty designated by
    regulations as a critically short wartime specialty.
        ``(e) Repayment.--A person who, after executing an agreement under
    subsection (a) is not commissioned as an officer of the armed forces,
    does not become licensed as a doctor or osteopath, as the case may be,
    or does not complete the period of active duty in a specialty specified
    in the agreement, shall be subject to the repayment provisions of
    section 303a(e) of this title.
        ``(f) Termination of Authority.--No agreement under this section may
    be entered into after December 31, 2007.''.
        (c) Accession Bonus for Dental Specialist Officers in Critically
    Short Wartime Specialities.--Such chapter is further amended by
    inserting after section 302k, as added by subsection (b), the following
    new section:

    ``Sec. 302l. Special pay: accession bonus for dental specialist officers
                            in critically short wartime specialties

        ``(a) Accession Bonus Authorized.--A person who is a graduate of an
    accredited dental school in a specialty designated by regulations as a
    critically short wartime specialty and who executes a written agreement
    described in subsection (d) to accept a commission as an officer of the
    armed forces and remain on active duty for a period of not less than
    four consecutive years may, upon the acceptance of the agreement by the
    Secretary concerned, be paid an accession bonus in the amount determined
    by the Secretary concerned.
        ``(b) Amount of Bonus.--The amount of an accession bonus under
    subsection (a) may not exceed $400,000.
        ``(c) Limitation on Eligibility for Bonus.--A person may not be paid
    a bonus under subsection (a) if--
                ``(1) the person, in exchange for an agreement to accept an
            appointment as an officer, received financial assistance from
            the Department of Defense to pursue a course of study in
            dentistry; or
                ``(2) the Secretary concerned determines that the person is
            not qualified to become and remain certified as a dentist in a
            specialty designated by regulations as a critically short
            wartime specialty.

        ``(d) Agreement.--The agreement referred to in subsection (a) shall
    provide that, consistent with the needs of the armed force concerned,
    the person executing the agreement will be assigned

    [[Page 120 STAT. 2251]]

    to duty, for the period of obligated service covered by the agreement,
    as an officer of the Dental Corps of the Army or the Navy or as an
    officer of the Air Force designated as a dental officer in a specialty
    designated by regulations as a critically short wartime specialty.
        ``(e) Repayment.--A person who, after executing an agreement under
    subsection (a) is not commissioned as an officer of the armed forces,
    does not become licensed as a dentist, or does not complete the period
    of active duty in a specialty specified in the agreement, shall be
    subject to the repayment provisions of section 303a(e) of this title.
        ``(f) Coordination With Other Accession Bonus Authority.--A person
    eligible to execute an agreement under both subsection (a) and section
    302h of this title shall elect which authority to execute the agreement
    under. A person may not execute an agreement under both subsection (a)
    and such section 302h.
        ``(g) Termination of Authority.--No agreement under this section may
    be entered into after December 31, 2007.''.
        (d) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by inserting after the item relating to section
    302j the following new items:

    ``302k. Special pay: accession bonus for medical officers in critically
               short wartime specialties.
    ``302l. Special pay: accession bonus for dental specialist officers in
               critically short wartime specialties.''.

        (e) <<NOTE: 37 USC 302h note.>> Effective Date.--The amendments made
    by this section shall take effect on October 1, 2006, and shall apply to
    agreements--
                (1) entered into or revised under section 302h of title 37,
            United States Code, on or after that date; or
                (2) entered into under section 302k or 302l of such title,
            as added by subsections (b) and (c), on or after that date.
    SEC. 618. AUTHORITY TO PROVIDE LUMP SUM PAYMENT OF NUCLEAR OFFICER
                            INCENTIVE PAY.

        (a) Lump Sum Payment Option.--Subsection (a) of section 312 of title
    37, United States Code, is amended in the matter after paragraph (3)--
                (1) by striking ``in equal annual installments'' and
            inserting ``in a single lump-sum or in annual installments of
            equal or different amounts''; and
                (2) by striking ``with the number of installments being
            equal to the number of years covered by the contract plus one''
            and inserting ``and, if the special pay will be paid in annual
            installments, the number of installments may not exceed the
            number of years covered by the agreement plus one''.

        (b) Stylistic and Conforming Amendments.--Such section is further
    amended--
                (1) by redesignating subsections (b) through (e) as
            subsections (c) through (f), respectively;
                (2) in subsection (a)--
                        (A) by striking ``an officer'' in the matter before
                    paragraph (1) and inserting ``the Secretary may pay
                    special pay under subsection (b) to an officer'';
                        (B) by striking the comma at the end of paragraph
                    (3) and inserting a period;

    [[Page 120 STAT. 2252]]

                        (C) by striking ``may, upon'' and all that follows
                    through ``The Secretary of the Navy shall'' and
                    inserting the following:

        ``(b) Payment Amount; Payment Options.--(1) The total amount paid to
    an officer under an agreement under subsection (a) or (e)(1) may not
    exceed $30,000 for each year of the active-service agreement. Amounts
    paid under the agreement are in addition to all other compensation to
    which the officer is entitled.
        ``(2) The Secretary shall'';
                        (D) by striking ``Upon acceptance of the agreement
                    by the Secretary or his designee'' and inserting the
                    following:

        ``(3) Upon acceptance of an agreement under subsection (a) or (e)(1)
    by the Secretary''; and
                        (E) by striking ``The Secretary (or his designee)''
                    and inserting the following:

        ``(4) The Secretary'';
                (3) in subsection (c), as redesignated by paragraph (1), by
            striking ``subsection (a) or subsection (d)(1)'' and inserting
            ``subsection (b) or (e)(1)''; and
                (4) in the first sentence of subsection (e)(1), as
            redesignated by paragraph (1)--
                        (A) by striking ``such subsection'' and inserting
                    ``subsection (b)''; and
                        (B) by striking ``that subsection'' and inserting
                    ``this subsection''.

        (c) Stylistic Amendments.--Such section is further amended--
                (1) in subsection (a), by inserting ``Special Pay
            Authorized; Eligibility.--'' after ``(a)'';
                (2) in subsection (c), as redesignated by subsection (b)(1),
            by inserting ``Repayment.--'' after ``(c)'';
                (3) in subsection (d), as redesignated by subsection (b)(1),
            by inserting ``Relation to Service Obligation.--'' after
            ``(d)'';
                (4) in subsection (e), as redesignated by subsection (b)(1),
            by inserting ``New Agreement.--'' after ``(e)''; and
                (5) in subsection (f), as redesignated by subsection (b)(1),
            by inserting ``Duration of Authority.--'' after ``(f)''.
    SEC. 619. INCREASE IN MAXIMUM AMOUNT OF NUCLEAR CAREER ACCESSION
                            BONUS.

        (a) Increase.--Section 312b(a)(1) of title 37, United States Code,
    is amended by striking ``$20,000'' and inserting ``$30,000''.
        (b) <<NOTE: 37 USC 312b note.>> Effective Date.--The amendment made
    by subsection (a) shall take effect on October 1, 2006, and shall apply
    to agreements entered into or revised under section 312b of title 37,
    United States Code, on or after that date.
    SEC. 620. INCREASE IN MAXIMUM AMOUNT OF INCENTIVE BONUS FOR
                            TRANSFER BETWEEN ARMED FORCES.

        (a) Increase.--Section 327(d)(1) of title 37, United States Code, is
    amended by striking ``$2,500'' and inserting ``$10,000''.
        (b) <<NOTE: 37 USC 327 note.>> Effective Date.--The amendment made
    by subsection (a) shall take effect on October 1, 2006, and shall apply
    to agreements entered into or revised under section 327 of title 37,
    United States Code, on or after that date.

    [[Page 120 STAT. 2253]]

    SEC. 621. ADDITIONAL AUTHORITIES AND INCENTIVES TO ENCOURAGE
                            RETIRED MEMBERS AND RESERVE COMPONENT
                            MEMBERS TO VOLUNTEER TO SERVE ON ACTIVE
                            DUTY IN HIGH-DEMAND, LOW-DENSITY
                            ASSIGNMENTS.

        (a) Authority To Offer Incentive Bonus.--Chapter 5 of title 37,
    United States Code, is amended by adding at the end the following new
    section:

    ``Sec. 329. Incentive bonus: retired members and reserve component
                            members volunteering for high-demand, low-
                            density assignments

        ``(a) Incentive Bonus Authorized.--The Secretary of Defense may pay
    a bonus under this section to a retired member or former member of the
    Army, Navy, Air Force, or Marine Corps or to a member of a reserve
    component of the Army, Navy, Air Force, or Marine Corps (who is not
    otherwise serving on active duty) who executes a written agreement to
    serve on active duty for a period specified in the agreement in an
    assignment intended to alleviate the need for members in a high-demand,
    low-density military capability or in any other specialty designated by
    the Secretary as critical to meet wartime or peacetime requirements.
        ``(b) Maximum Amount of Bonus.--A bonus under subsection (a) and any
    incentive developed under subsection (d) may not exceed $50,000.
        ``(c) Methods of Payment.--At the election of the Secretary of
    Defense, a bonus under subsection (a) and any incentive developed under
    subsection (d) shall be paid or provided--
                ``(1) when the member commences service on active duty; or
                ``(2) in annual installments in such amounts as may be
            determined by the Secretary.

        ``(d) Development of Additional Incentives.--(1) The Secretary of
    Defense may develop and provide to members referred to in subsection (a)
    additional incentives to encourage such members to return to active duty
    in assignments intended to alleviate the need for members in a high-
    demand, low-density military capability or in other specialties
    designated by the Secretary as critical to meet wartime or peacetime
    requirements.
        ``(2) <<NOTE: Contracts.>> The provision of any incentive developed
    under this subsection shall be subject to an agreement, as required for
    bonuses under subsection (a).

        ``(3) <<NOTE: Deadline.>> Not later than 30 days before first
    offering any incentive developed under this subsection, the Secretary
    shall submit to the congressional defense committees a report that
    contains a description of that incentive and an explanation why a bonus
    under subsection (a) or other pay and allowances are not sufficient to
    alleviate the high-demand, low-density military capability or otherwise
    fill critical military specialties.

        ``(4) In this subsection, the term `congressional defense
    committees' has the meaning given that term in section 101(a)(16) of
    title 10.
        ``(e) Relationship to Other Pay and Allowances.--A bonus or other
    incentive paid or provided to a member under this section is in addition
    to any other pay and allowances to which the member is entitled.
        ``(f) Prohibition on Promotions.--The written agreement required by
    subsections (a) and (d) shall specify that a member

    [[Page 120 STAT. 2254]]

    who is paid or receives a bonus or other incentive under this section is
    not eligible for promotion while serving in the assignment for which the
    bonus or other incentive is provided.
        ``(g) Repayment.--A member who does not complete the period of
    active duty specified in the agreement executed under subsection (a) or
    (d) shall be subject to the repayment provisions of section 303a(e) of
    this title.
        ``(h) High-Demand, Low-Density Military Capability.--In this
    section, the term `high-demand, low-density military capability' means a
    combat, combat support or service support capability, unit, system, or
    occupational specialty that the Secretary of Defense determines has
    funding, equipment, or personnel levels that are substantially below the
    levels required to fully meet or sustain actual or expected operational
    requirements set by regional commanders.
        ``(i) Regulations.--The Secretary of Defense may prescribe such
    regulations as the Secretary considers necessary to carry out this
    section.
        ``(j) Termination of Authority.--No agreement under subsection (a)
    or (d) may be entered into after December 31, 2010.''.
        (b) Temporary Authority to Order Retired Members to Active Duty in
    High-Demand, Low-Density Military Capability.--Section 688a of title 10,
    United States Code, is amended--
                (1) in subsection (a)--
                        (A) by striking the first sentence and inserting the
                    following new sentence: ``The Secretary of a military
                    department may order to active duty a retired member who
                    agrees to serve on active duty in an assignment intended
                    to alleviate a high-demand, low-density military
                    capability or in any other specialty designated by the
                    Secretary as critical to meet wartime or peacetime
                    requirements.''; and
                        (B) in the second sentence, by striking ``officer''
                    both places it appears and inserting ``member'';
                (2) in subsection (b), by striking ``an officer'' and
            inserting ``a member'';
                (3) in subsection (c), by striking ``500 officers'' and
            inserting ``1,000 members'';
                (4) in subsection (d), by striking ``officer'' and inserting
            ``member'';
                (5) in subsection (e), by striking ``Officers'' and
            inserting ``Retired members'';
                (6) in subsection (f)--
                        (A) by striking ``An officer'' and inserting ``A
                    retired member''; and
                        (B) by striking ``September 30, 2008'' and inserting
                    ``December 31, 2010''; and
                (7) by adding at the end the following new subsection:

        ``(g) High-Demand, Low-Density Military Capability Defined.--In this
    section, the term `high-demand, low-density military capability' means a
    combat, combat support or service support capability, unit, system, or
    occupational specialty that the Secretary of Defense determines has
    funding, equipment, or personnel levels that are substantially below the
    levels required to fully meet or sustain actual or expected operational
    requirements set by regional commanders.''.

    [[Page 120 STAT. 2255]]

        (c) Exclusion From Active-Duty List.--Section 641 of title 10,
    United States Code, is amended by adding at the end the following new
    paragraph:
                ``(6) Officers appointed pursuant to an agreement under
            section 329 of title 37.''.

        (d) Clerical Amendments.--
                (1) Title 37.--The table of sections at the beginning of
            chapter 5 of title 37, United States Code, is amended by adding
            at the end the following new item:

    ``329. Incentive bonus: retired members and reserve component members
               volunteering for high-demand, low-density assignments.''.

                (2) Title 10.--(A) The heading of section 688a of title 10,
            United States Code, is amended to read as follows:

    ``Sec. 688a. Retired members: temporary authority to order to active
                            duty in high-demand, low-density assignments''.

                (B) The table of sections at the beginning of chapter 39 of
            such title is amended by striking the item relating to section
            688a and inserting the following new item:

    ``688a. Retired members: temporary authority to order to active duty in
               high-demand, low-density assignments.''.

        (e) <<NOTE: 37 USC 329 note.>> Effective Date.--No agreement may be
    entered into under section 329 of title 37, United States Code, as added
    by subsection (a), before October 1, 2006.

        (f) Limitation on Fiscal Year 2007 Obligations.--During fiscal year
    2007, obligations incurred under section 329 of title 37, United States
    Code, as added by subsection (a), to provide bonuses or other incentives
    to retired members and former members of the Army, Navy, Air Force, or
    Marine Corps or to members of the reserve components of the Army, Navy,
    Air Force, and Marine Corps may not exceed $5,000,000.
    SEC. 622. ACCESSION BONUS FOR MEMBERS OF THE ARMED FORCES
                            APPOINTED AS COMMISSIONED OFFICERS AFTER
                            COMPLETING OFFICER CANDIDATE SCHOOL.

        (a) Accession Bonus Authorized.--
                (1) In general.--Chapter 5 of title 37, United States Code,
            is amended by inserting after section 329, as added by section
            621 of this Act, the following new section:

    ``Sec. 330. Special pay: accession bonus for officer candidates

        ``(a) <<NOTE: Regulations.>> Accession Bonus Authorized.--Under
    regulations prescribed by the Secretary concerned, a person who executes
    a written agreement described in subsection (c) may be paid an accession
    bonus under this section upon acceptance of the agreement by the
    Secretary concerned.

        ``(b) Amount of Bonus.--The amount of an accession bonus under
    subsection (a) may not exceed $8,000.
        ``(c) Agreement.--A written agreement referred to in subsection (a)
    is a written agreement by a person--
                ``(1) to complete officer candidate school;
                ``(2) to accept a commission or appointment as an officer of
            the armed forces; and
                ``(3) to serve on active duty as a commissioned officer for
            a period specified in the agreement.

    [[Page 120 STAT. 2256]]

        ``(d) <<NOTE: Contracts.>> Payment Method.--Upon acceptance of a
    written agreement under subsection (a) by the Secretary concerned, the
    total amount of the accession bonus payable under the agreement becomes
    fixed. The agreement shall specify whether the accession bonus will be
    paid in a lump sum or installments.

        ``(e) Repayment.--A person who, having received all or part of the
    bonus under a written agreement under subsection (a), does not complete
    the total period of active duty as a commissioned officer as specified
    in such agreement shall be subject to the repayment provisions of
    section 303a(e) of this title.
        ``(f) Termination of Authority.--No agreement under this section may
    be entered into after December 31, 2007.''.
                (2) Clerical amendment.--The table of sections at the
            beginning of such chapter is amended by inserting after the item
            relating to section 329, as added by section 621, the following
            new item:

    ``330. Special pay: accession bonus for officer candidates.''.

                (3) <<NOTE: 37 USC 330 note.>> Effective date.--The
            amendments made by this subsection shall take effect on October
            1, 2006.

        (b) Authority for Payment of Bonus Under Earlier Agreements.--
                (1) Authority.--The Secretary of the Army may pay a bonus to
            any person who, during the period beginning on April 1, 2005,
            and ending on April 6, 2006, executed an agreement to enlist for
            the purpose of attending officer candidate school and receive a
            bonus under section 309 of title 37, United States Code, and who
            has completed the terms of the agreement required for payment of
            the bonus.
                (2) Amount of bonus.--The amount of the bonus payable to a
            person under this subsection may not exceed $8,000.
                (3) Relation to enlistment bonus.--The bonus payable under
            this subsection is in addition to a bonus payable under section
            309 of title 37, United States Code, or any other provision of
            law.
    SEC. 623. MODIFICATION OF CERTAIN AUTHORITIES APPLICABLE TO THE
                            TARGETED SHAPING OF THE ARMED FORCES.

        (a) Voluntary Separation Pay and Benefits.--
                (1) Increase in maximum amount of pay.--Subsection (f) of
            section 1175a of title 10, United States Code, is amended by
            striking ``two times'' and inserting ``four times''.
                (2) Extension of authority.--Subsection (k)(1) of such
            section is amended by striking ``December 31, 2008'' and
            inserting ``December 31, 2012''.
                (3) Repeal of limitation on applicability.--Subsection (b)
            of section 643 of the National Defense Authorization Act for
            Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3310; 10 U.S.C.
            1175a note) is repealed.

        (b) Enhanced Authority for Early Discharges.--
                (1) Renewal of authority.--Subsection (a) of section 638a of
            title 10, United States Code, is amended by inserting ``and for
            the purpose of subsection (b)(4) during the period beginning on
            October 1, 2006, and ending on December 31, 2012,'' after
            ``December 31, 2001,''.
                (2) Relaxation of limitation on selective early discharge.--
            Subsection (d)(2) of such section is amended--

    [[Page 120 STAT. 2257]]

                        (A) in subparagraph (A), by inserting before the
                    semicolon the following: ``, except that during the
                    period beginning on October 1, 2006, and ending on
                    December 31, 2012, such number may be more than 30
                    percent of the officers considered in each competitive
                    category, but may not be more than 30 percent of the
                    number of officers considered in each grade''; and
                        (B) in subparagraph (B), by inserting before the
                    period the following: ``, except that during the period
                    beginning on October 1, 2006, and ending on December 31,
                    2012, such number may be more than 30 percent of the
                    officers considered in each competitive category, but
                    may not be more than 30 percent of the number of
                    officers considered in each grade''.
    SEC. 624. ENHANCEMENT OF BONUS TO ENCOURAGE CERTAIN PERSONS TO
                            REFER OTHER PERSONS FOR ENLISTMENT IN THE
                            ARMY.

        (a) Individuals Eligible for Bonus.--Subsection (a) of section 645
    of the National Defense Authorization Act for Fiscal Year 2006 (Public
    Law 109-163; 119 Stat. 3310) is amended--
                (1) by striking ``The Secretary'' and inserting the
            following:
                ``(1) Authority.--The Secretary'';
                (2) by striking ``a member of the Army, whether in the
            regular component of the Army or in the Army National Guard or
            Army Reserve,'' and inserting ``an individual referred to in
            paragraph (2)''; and
                (3) by adding at the end the following new paragraph:
                ``(2) Individuals eligible for bonus.--Subject to subsection
            (c), the following individuals are eligible for a referral bonus
            under this section:
                        ``(A) A member in the regular component of the Army.
                        ``(B) A member of the Army National Guard.
                        ``(C) A member of the Army Reserve.
                        ``(D) A member of the Army in a retired status,
                    including a member under 60 years of age who, but for
                    age, would be eligible for retired pay.
                        ``(E) A civilian employee of the Department of the
                    Army.''.

        (b) Certain Referrals Ineligible.--Subsection (c) of such section is
    amended by adding at the end the following new paragraph:
                ``(3) Junior reserve officers' training corps instructors.--
            A member of the Army detailed under subsection (c)(1) of section
            2031 of title 10, United States Code, to serve as an
            administrator or instructor in the Junior Reserve Officers'
            Training Corps program or a retired member of the Army employed
            as an administrator or instructor in the program under
            subsection (d) of such section may not be paid a bonus under
            subsection (a).''.

        (c) Amount of Bonus.--Subsection (d) of such section is amended to
    read as follows:
        ``(d) Amount of Bonus.--The amount of the bonus payable for a
    referral under subsection (a) may not exceed $2,000. The amount shall be
    payable in two lump sums as provided in subsection (e).''.

    [[Page 120 STAT. 2258]]

        (d) Payment of Bonus.--Subsection (e) of such section is amended to
    read as follows:
        ``(e) Payment.--A bonus payable for a referral of a person under
    subsection (a) shall be paid as follows:
                ``(1) Not more than $1,000 shall be paid upon the
            commencement of basic training by the person referred.
                ``(2) Not more than $1,000 shall be paid upon the completion
            of basic training and individual advanced training by the person
            referred.''.

        (e) Coordination With Receipt of Retired Pay.--Such section is
    further amended--
                (1) by redesignating subsection (g) as subsection (h); and
                (2) by inserting after subsection (f) the following new
            subsection (g):

        ``(g) Coordination With Receipt of Retired Pay.--A bonus paid under
    this section to a member of the Army in a retired status is in addition
    to any compensation to which the member is entitled under title 10, 37,
    or 38, United States Code, or any other provision of law.''.
        (f) Effective Date.--The amendments made by this section shall take
    effect on the date of the enactment of this Act, and shall apply with
    respect to bonuses payable under section 645 of the National Defense
    Authorization Act for Fiscal Year 2006, as amended by this section, on
    or after that date.

                Subtitle C--Travel and Transportation Allowances

    SEC. 631. TRAVEL AND TRANSPORTATION ALLOWANCES FOR TRANSPORTATION
                            OF FAMILY MEMBERS INCIDENT TO ILLNESS OR
                            INJURY OF MEMBERS.

        Section 411h(b)(1) of title 37, United States Code, is amended--
                (1) by striking ``and'' at the end of subparagraph (C);
                (2) by striking the period at the end of subparagraph (D)
            and inserting ``; and''; and
                (3) by adding at the end the following new subparagraph:
                ``(E) a person related to the member as described in
            subparagraph (A), (B), (C), or (D) who is also a member of the
            uniformed services.''.

                  Subtitle D--Retired Pay and Survivor Benefits

    SEC. 641. RETIRED PAY OF GENERAL AND FLAG OFFICERS TO BE BASED ON
                            RATES OF BASIC PAY PROVIDED BY LAW.

        (a) Determination of Retired Pay Base.--Chapter 71 of title 10,
    United States Code, is amended by inserting after section 1407 the
    following new section:

    ``Sec. 1407a. Retired pay base: officers retired in general or flag
                            officer grades

        ``(a) Rates of Basic Pay to Be Used in Determination.--In a case in
    which the determination under section 1406 or 1407 of this title of the
    retired pay base applicable to the computation

    [[Page 120 STAT. 2259]]

    of the retired pay of a covered general or flag officer involves a rate
    of basic pay payable to that officer for any period that was subject to
    a reduction under section 203(a)(2) of title 37 for such period, such
    retired-pay-base determination shall be made using the rate of basic pay
    for such period provided by law, rather than such rate as so reduced.
        ``(b) Covered General and Flag Officers.--In this section, the term
    `covered general or flag officer' means a member or former member who
    after September 30, 2006, is retired in a general officer grade or flag
    officer grade.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by inserting after the item relating to section
    1407 the following new item:

    ``1407a.  Retired pay base: officers retired in general or flag officer
               grades.''.

    SEC. 642. INAPPLICABILITY OF RETIRED PAY MULTIPLIER MAXIMUM
                            PERCENTAGE TO CERTAIN SERVICE OF MEMBERS
                            OF THE ARMED FORCES IN EXCESS OF 30 YEARS.

        (a) In General.--Paragraph (3) of section 1409(b) of title 10,
    United States Code, is amended to read as follows:
                ``(3) 30 years of service.--
                        ``(A) Retirement before january 1, 2007.--In the
                    case of a member who retires before January 1, 2007,
                    with more than 30 years of creditable service, the
                    percentage to be used under subsection (a) is 75
                    percent.
                        ``(B) Retirement after december 31, 2006.--In the
                    case of a member who retires after December 31, 2006,
                    with more than 30 years of creditable service, the
                    percentage to be used under subsection (a) is the sum
                    of--
                              ``(i) 75 percent; and
                              ``(ii) the product (stated as a percentage)
                          of--
                                        ``(I) 2\1/2\; and
                                        ``(II) the member's years of
                                    creditable service (as defined in
                                    subsection (c)) in excess of 30 years of
                                    creditable service, under conditions
                                    authorized for purposes of this
                                    subparagraph during a period designated
                                    by the Secretary of Defense for purposes
                                    of this subparagraph.''.

        (b) Retired Pay for Non-Regular Service.--Section 12739(c) of such
    title is amended--
                (1) by striking ``The total amount'' and inserting ``(1)
            Except as provided in paragraph (2), the total amount''; and
                (2) by adding at the end the following new paragraph:
                ``(2) In the case of a person who retires after December 31,
            2006, with more than 30 years of service credited to that person
            under section 12733 of this title, the total amount of the
            monthly retired pay computed under subsections (a) and (b) may
            not exceed the sum of--
                        ``(A) 75 percent of the retired pay base upon which
                    the computation is based; and
                        ``(B) the product of--
                              ``(i) the retired pay base upon which the
                          computation is based; and
                              ``(ii) 2\1/2\ percent of the years of service
                          credited to that person under section 12733 of
                          this title, for service under conditions
                          authorized for purposes of

    [[Page 120 STAT. 2260]]

                          this paragraph during a period designated by the
                          Secretary of Defense for purposes of this
                          paragraph.''.
    SEC. 643. MILITARY SURVIVOR BENEFIT PLAN BENEFICIARIES UNDER
                            INSURABLE INTEREST COVERAGE.

        (a) Authority to Elect New Beneficiary.--Section 1448(b)(1) of title
    10, United States Code, is amended--
                (1) by inserting ``or under subparagraph (G) of this
            paragraph'' in the second sentence of subparagraph (E) before
            the period at the end; and
                (2) by adding at the end the following new subparagraph:
                        ``(G) Election of new beneficiary upon death of
                    previous beneficiary.--
                              ``(i) Authority for election.--If the reason
                          for discontinuation in the Plan is the death of
                          the beneficiary, the participant in the Plan may
                          elect a new beneficiary. Any such beneficiary must
                          be a natural person with an insurable interest in
                          the participant. Such an election may be made only
                          during the 180-day period beginning on the date of
                          the death of the previous beneficiary.
                              ``(ii) Procedures.--Such an election shall be
                          in writing, signed by the participant, and made in
                          such form and manner as the Secretary concerned
                          may prescribe. Such an election shall be effective
                          the first day of the first month following the
                          month in which the election is received by the
                          Secretary.
                              ``(iii) Vitiation of election by participant
                          who dies within two years of election.--If a
                          person providing an annuity under a election under
                          clause (i) dies before the end of the two-year
                          period beginning on the effective date of the
                          election--
                                        ``(I) the election is vitiated; and
                                        ``(II) the amount by which the
                                    person's retired pay was reduced under
                                    section 1452 of this title that is
                                    attributable to the election shall be
                                    paid in a lump sum to the person who
                                    would have been the deceased person's
                                    beneficiary under the vitiated election
                                    if the deceased person had died after
                                    the end of such two-year period.''.

        (b) Change in Premium for Coverage of New Beneficiary.--Section
    1452(c) of such title is amended by adding at the end the following new
    paragraph:
                ``(5) Rule for designation of new insurable interest
            beneficiary following death of original beneficiary.--The
            Secretary of Defense shall prescribe in regulations premiums
            which a participant making an election under section
            1448(b)(1)(G) of this title shall be required to pay for
            participating in the Plan pursuant to that election. The total
            amount of the premiums to be paid by a participant under the
            regulations shall be equal to the sum of the following:
                        ``(A) The total additional amount by which the
                    retired pay of the participant would have been reduced
                    before the effective date of the election if the
                    original beneficiary (i) had not died and had been
                    covered under the Plan through the date of the election,
                    and (ii) had been the

    [[Page 120 STAT. 2261]]

                    same number of years younger than the participant (if
                    any) as the new beneficiary designated under the
                    election.
                        ``(B) Interest on the amounts by which the retired
                    pay of the participant would have been so reduced,
                    computed from the dates on which the retired pay would
                    have been so reduced at such rate or rates and according
                    to such methodology as the Secretary of Defense
                    determines reasonable.
                        ``(C) Any additional amount that the Secretary
                    determines necessary to protect the actuarial soundness
                    of the Department of Defense Military Retirement Fund
                    against any increased risk for the fund that is
                    associated with the election.''.

        (c) <<NOTE: 10 USC 1448 note.>> Transition.--
                (1) Transition period.--In the case of a participant in the
            Survivor Benefit Plan who made a covered insurable-interest
            election (as defined in paragraph (2)) and whose designated
            beneficiary under that election dies before the date of the
            enactment of this Act or during the 18-month period beginning on
            such date, the time period applicable for purposes of the
            limitation in the third sentence of subparagraph (G)(i) of
            section 1448(b)(1) of title 10, United States Code, as added by
            subsection (a), shall be the two-year period beginning on the
            date of the enactment of this Act (rather than the 180-day
            period specified in that sentence).
                (2) Covered insurable-interest elections.--For purposes of
            paragraph (1), a covered insurable-interest election is an
            election under section 1448(b)(1) of title 10, United States
            Code, made before the date of the enactment of this Act, or
            during the 18-month period beginning on such date, by a
            participant in the Survivor Benefit Plan to provide an annuity
            under that plan to a natural person with an insurable interest
            in that person.
                (3) Survivor benefit plan.--For purposes of this subsection,
            the term ``Survivor Benefit Plan'' means the program under
            subchapter II of chapter 73 of title 10, United States Code.
    SEC. 644. MODIFICATION OF ELIGIBILITY FOR COMMENCEMENT OF
                            AUTHORITY FOR OPTIONAL ANNUITIES FOR
                            DEPENDENTS UNDER THE SURVIVOR BENEFIT
                            PLAN.

        (a) In General.--Section 1448(d)(2)(B) of title 10, United States
    Code, is amended by striking ``who dies after November 23, 2003'' and
    inserting ``who dies after October 7, 2001''.
        (b) <<NOTE: 10 USC 1448 note.>> Applicability.--Any annuity payable
    to a dependent child under subchapter II of chapter 73 of title 10,
    United States Code, by reason of the amendment made by subsection (a)
    shall be payable only for months beginning on or after the date of the
    enactment of this Act.
    SEC. 645. STUDY OF TRAINING COSTS, MANNING, OPERATIONS TEMPO, AND
                            OTHER FACTORS THAT AFFECT RETENTION OF
                            MEMBERS OF THE ARMED FORCES WITH SPECIAL
                            OPERATIONS DESIGNATIONS.

        (a) Report Required.--Not later than August 1, 2007, the Secretary
    of Defense shall submit to the Committee on Armed Services of the Senate
    and the Committee on Armed Services of

    [[Page 120 STAT. 2262]]

    the House of Representatives a report on factors that affect retention
    of members of the Armed Forces who have a special operations forces
    designation.
        (b) Elements.--The report under subsection (a) shall include the
    following:
                (1) Information on the cost of training of members of the
            Armed Forces who have a special operations forces designation,
            with such information displayed separately and shown as
            aggregate costs of training for such members at the 4-year, 8-
            year, 12-year, 16-year, and 20-year points of service.
                (2) The average cost of special operations-unique training,
            both predeployment and during deployment, for the number of
            members of the Armed Forces who have a special operations forces
            designation who have been deployed at least twice to areas in
            which they were eligible for hostile fire pay.
                (3) For each component of the United States Special
            Operations Command, an estimate of when the assigned strength of
            that component will be under 90 percent of the authorized
            strength of that component, taking into account anticipated
            growth planned for in the most recent Quadrennial Defense
            Review.
                (4) The percentage of members of the Armed Forces with a
            special operations forces designation who have accumulated over
            48 months of hostile fire pay and the percentage who have
            accumulated over 60 months of such pay.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

    SEC. 661. TREATMENT OF PRICE SURCHARGES OF CERTAIN MERCHANDISE
                            SOLD AT COMMISSARY STORES.

        (a) Merchandise Procured From Exchanges.--Subsection (c)(3) of
    section 2484 of title 10, United States Code, is amended--
                (1) by inserting ``(A)'' after ``(3)'';
                (2) by striking ``Subsections'' and inserting ``Except as
            provided in subparagraph (B), subsections''; and
                (3) by adding at the end the following new subparagraph:

        ``(B) When a military exchange is the vendor of tobacco products or
    other merchandise authorized for sale in a commissary store under
    paragraph (1), any revenue above the cost of procuring the merchandise
    shall be allocated as if the revenue were a uniform sales price
    surcharge described in subsection (d).''.
        (b) Merchandise Treated as Noncommissary Store Inventory.--
    Subsection (g) of such section is amended--
                (1) by inserting ``(1)'' before ``Notwithstanding'';
                (2) by striking ``Subsections'' and inserting ``Except as
            provided in paragraph (2), subsections''; and
                (3) by adding at the end the following new paragraph:

        ``(2) When tobacco products are authorized for sale in a commissary
    store as noncommissary store inventory, any revenue above the cost of
    procuring the tobacco products shall be allocated as if the revenue were
    a uniform sales price surcharge described in subsection (d).''.

    [[Page 120 STAT. 2263]]

    SEC. 662. LIMITATIONS ON LEASE OF NON-EXCESS DEPARTMENT OF DEFENSE
                            PROPERTY FOR PROTECTION OF MORALE,
                            WELFARE, AND RECREATION ACTIVITIES AND
                            REVENUE.

        (a) Additional Condition on Use of Lease Authority.--Subsection (b)
    section 2667 of title 10, United States Code, is amended--
                (1) in paragraph (4), by striking ``and'' at the end;
                (2) in paragraph (5), by striking the period and inserting
            ``; and''; and
                (3) by adding at the end the following new paragraph:
                ``(6) except as otherwise provided in subsection (d), shall
            require the lessee to provide the covered entities specified in
            paragraph (1) of that subsection the right to establish and
            operate a community support facility or provide community
            support services, or seek equitable compensation for morale,
            welfare, and recreation programs of the Department of Defense in
            lieu of the operation of such a facility or the provision of
            such services, if the Secretary determines that the lessee will
            provide merchandise or services in direct competition with
            covered entities through the lease.''.

        (b) Application of Condition; Waiver.--Such section is further
    amended--
                (1) by redesignating subsections (d) through (i) as
            subsections (e) through (j), respectively; and
                (2) by inserting after subsection (c) the following new
            subsection (d):

        ``(d) Community Support Facilities and Community Support Services
    Under Lease; Waiver.--(1) In this subsection and subsection (b)(6), the
    term `covered entity' means each of the following:
                ``(A) The Army and Air Force Exchange Service.
                ``(B) The Navy Exchange Service Command.
                ``(C) The Marine Corps exchanges.
                ``(D) The Defense Commissary Agency.
                ``(E) The revenue-generating nonappropriated fund activities
            of the Department of Defense conducted for the morale, welfare,
            and recreation of members of the armed forces.

        ``(2) The Secretary of a military department may waive the
    requirement in subsection (b)(6) with respect to a lease if--
                ``(A) the lease is entered into under subsection (g); or
                ``(B) the Secretary determines that the waiver is in the
            best interests of the Government.

        ``(3) <<NOTE: Notification.>> The Secretary of the military
    department concerned shall provide to the congressional defense
    committees written notice of each waiver under paragraph (2), including
    the reasons for the waiver.

        ``(4) <<NOTE: Deadline.>> The covered entities shall exercise the
    right provided in subsection (b)(6) with respect to a lease, if at all,
    not later than 90 days after receiving notice from the Secretary of the
    military department concerned regarding the opportunity to exercise such
    right with respect to the lease. The Secretary may, at the discretion of
    the Secretary, extend the period under this paragraph for the exercise
    of the right with respect to a lease for such additional period as the
    Secretary considers appropriate.

        ``(5) <<NOTE: Regulations.>> The Secretary of Defense shall
    prescribe in regulations uniform procedures and criteria for the
    evaluation of proposals

    [[Page 120 STAT. 2264]]

    for enhanced use leases involving the operation of community support
    facilities or the provision of community support services by either a
    lessee under this section or a covered entity.
        ``(6) <<NOTE: Notification.>> The Secretary of the military
    department concerned shall provide written notification to the Committee
    on Armed Services of the Senate and the Committee on Armed Services of
    the House of Representatives regarding all leases under this section
    that include the operation of a community support facility or the
    provision of community support services, regardless of whether the
    facility will be operated by a covered entity or the lessee or the
    services will be provided by a covered entity or the lessee.''.

        (c) Definitions.--Subsection (i) of such section, as redesignated by
    subsection (b)(1) of this section, is amended to read as follows:
        ``(i) Definitions.--In this section:
                ``(1) The term `community support facility' includes an
            ancillary supporting facility (as that term is defined in
            section 2871(1) of this title).
                ``(2) The term `community support services' includes
            revenue-generating food, recreational, lodging support services,
            and resale operations and other retail facilities and services
            intended to support a community.
                ``(3) The term `military installation' has the meaning given
            such term in section 2687(e)(1) of this title.''.

        (d) Stylistic, Technical, and Conforming Amendments.--Such section
    is further amended--
                (1) in subsection (a), by inserting ``Lease Authority.--''
            after ``(a)'';
                (2) in subsection (b), by inserting ``Conditions on
            Leases.--'' after ``(b)'';
                (3) in subsection (c), by inserting ``Types of In-Kind
            Consideration.--'' after ``(c)'';
                (4) in subsection (e), as redesignated by subsection (b)(1)
            of this section--
                        (A) by inserting ``Deposit and Use of Proceeds.--''
                    after ``(e)''; and
                        (B) in paragraph (5), by striking ``subsection (f)''
                    and inserting ``subsection (g)'';
                (5) in subsection (f), as redesignated by subsection (b)(1)
            of this section, by inserting ``Treatment of Lessee Interest in
            Property.--'' after ``(f)'';
                (6) in subsection (g), as redesignated by subsection (b)(1)
            of this section--
                        (A) by inserting ``Special Rules for Base Closure
                    and Realignment Property.--'' after ``(g)''; and
                        (B) in paragraph (1), by striking ``subsection
                    (a)(3)'' and inserting ``subsection (a)(2)'';
                (7) in subsection (h), as redesignated by subsection (b)(1)
            of this section, by inserting ``Competitive Procedures for
            Selection of Certain Lessees; Exception.--'' after ``(h)''; and
                (8) in subsection (j), as redesignated by subsection (b)(1)
            of this section, by inserting ``Exclusion of Certain Lands.--''
            after ``(j)''.

    [[Page 120 STAT. 2265]]

    SEC. 663. REPORT ON COST EFFECTIVENESS OF PURCHASING COMMERCIAL
                            INSURANCE FOR COMMISSARY AND EXCHANGE
                            FACILITIES AND FACILITIES OF OTHER MORALE,
                            WELFARE, AND RECREATION PROGRAMS AND
                            NONAPPROPRIATED FUND INSTRUMENTALITIES.

        (a) Report Required.--Not later than July 31, 2007, the Secretary of
    Defense shall submit to Congress a report evaluating the cost
    effectiveness of the Defense Commissary Agency and the nonappropriated
    fund activities specified in subsection (b) purchasing commercial
    insurance to protect financial interests in facilities operated by the
    Defense Commissary Agency or those nonappropriated fund activities.
        (b) <<NOTE: Applicability.>> Covered Nonappropriated Fund
    Activities.--The report shall apply with respect to--
                (1) the Army and Air Force Exchange Service;
                (2) the Navy Exchange Service Command;
                (3) the Marine Corps exchanges; and
                (4) any nonappropriated fund activity of the Department of
            Defense for the morale, welfare, and recreation of members of
            the Armed Forces.
    SEC. 664. STUDY AND REPORT REGARDING ACCESS OF DISABLED PERSONS TO
                            MORALE, WELFARE, AND RECREATION FACILITIES
                            AND ACTIVITIES.

        (a) Study Required.--The Secretary of Defense shall conduct a study
    regarding the current capability of morale, welfare, and recreation
    facilities and activities operated by nonappropriated fund
    instrumentalities of the Department of Defense to provide access to and
    accommodate disabled persons who are otherwise eligible to use such
    facilities or participate in such activities and the legal requirements
    regarding such access and accommodation applicable to these morale,
    welfare, and recreation facilities and activities, with specific
    attention to the applicability of section 504 of the Rehabilitation Act
    of 1973 (29 U.S.C. 794).
        (b) Elements of Study.--In conducting the study, the Secretary of
    Defense shall address at a minimum the following:
                (1) The current plans of the Secretary of Defense and the
            Secretaries of the military departments to improve the access
            and accommodation of disabled persons to morale, welfare, and
            recreation facilities and activities operated by nonappropriated
            fund instrumentalities of the Department of Defense, including
            plans to make available additional golf carts at military golf
            courses that are accessible for disabled persons authorized to
            use such courses, and whether any portion of these plans require
            congressional authorization or funding.
                (2) The timing and cost of making these morale, welfare, and
            recreation facilities and activities fully accessible to
            disabled persons.
                (3) The expected utilization rates of these morale, welfare,
            and recreation facilities and activities by disabled persons, if
            the facilities and activities were fully accessible to disabled
            persons.
                (4) Any legal requirements applicable to providing golf
            carts at military golf courses that are accessible for disabled
            persons authorized to use such courses and the current
            availability of accessible golf carts at such courses.

    [[Page 120 STAT. 2266]]

        (c) Report Required.--Not later than 180 days after the date of the
    enactment of this Act, the Secretary of Defense shall submit to Congress
    a report containing the results of the study and any related findings,
    conclusions, and recommendations that the Secretary considers to be
    appropriate concerning the access of disabled persons to morale,
    welfare, and recreation facilities and activities, and specifically the
    Secretary's conclusions on making accessible golf carts available at all
    military golf courses for use by disabled persons authorized to use such
    courses.

                            Subtitle F--Other Matters

    SEC. 670. LIMITATIONS ON TERMS OF CONSUMER CREDIT EXTENDED TO
                            SERVICEMEMBERS AND DEPENDENTS.

        (a) Terms of Consumer Credit.--Chapter 49 of title 10, United States
    Code, is amended by adding at the end the following new section:

    ``Sec. 987. Terms of consumer credit extended to members and dependents:
                            limitations

        ``(a) Interest.--A creditor who extends consumer credit to a covered
    member of the armed forces or a dependent of such a member shall not
    require the member or dependent to pay interest with respect to the
    extension of such credit, except as--
                ``(1) agreed to under the terms of the credit agreement or
            promissory note;
                ``(2) authorized by applicable State or Federal law; and
                ``(3) not specifically prohibited by this section.

        ``(b) Annual Percentage Rate.--A creditor described in subsection
    (a) may not impose an annual percentage rate of interest greater than 36
    percent with respect to the consumer credit extended to a covered member
    or a dependent of a covered member.
        ``(c) Mandatory Loan Disclosures.--
                ``(1) Information required.--With respect to any extension
            of consumer credit (including any consumer credit originated or
            extended through the internet) to a covered member or a
            dependent of a covered member, a creditor shall provide to the
            member or dependent the following information orally and in
            writing before the issuance of the credit:
                        ``(A) A statement of the annual percentage rate of
                    interest applicable to the extension of credit.
                        ``(B) Any disclosures required under the Truth in
                    Lending Act (15 U.S.C. 1601 et seq.).
                        ``(C) A clear description of the payment obligations
                    of the member or dependent, as applicable.
                ``(2) <<NOTE: Regulations.>> Terms.--Such disclosures shall
            be presented in accordance with terms prescribed by the
            regulations issued by the Board of Governors of the Federal
            Reserve System to implement the Truth in Lending Act (15 U.S.C.
            1601 et seq.).

        ``(d) Preemption.--
                ``(1) Inconsistent laws.--Except as provided in subsection
            (f)(2), this section preempts any State or Federal law, rule, or
            regulation, including any State usury law, to the extent that
            such law, rule, or regulation is inconsistent with this section,
            except that this section shall not preempt any such law, rule,
            or regulation that provides protection to a covered

    [[Page 120 STAT. 2267]]

            member or a dependent of such a member in addition to the
            protection provided by this section.
                ``(2) Different treatment under state law of members and
            dependents prohibited.--States shall not--
                        ``(A) authorize creditors to charge covered members
                    and their dependents annual percentage rates of interest
                    for loans higher than the legal limit for residents of
                    the State; or
                        ``(B) permit violation or waiver of any State
                    consumer lending protections for the benefit of
                    residents of the State on the basis of nonresident or
                    military status of a covered member or dependent of such
                    a member, regardless of the member's or dependent's
                    domicile or permanent home of record.

        ``(e) Limitations.--It shall be unlawful for any creditor to extend
    consumer credit to a covered member or a dependent of such a member with
    respect to which--
                ``(1) the creditor rolls over, renews, repays, refinances,
            or consolidates any consumer credit extended to the borrower by
            the same creditor with the proceeds of other credit extended to
            the same covered member or a dependent;
                ``(2) the borrower is required to waive the borrower's right
            to legal recourse under any otherwise applicable provision of
            State or Federal law, including any provision of the
            Servicemembers Civil Relief Act;
                ``(3) the creditor requires the borrower to submit to
            arbitration or imposes onerous legal notice provisions in the
            case of a dispute;
                ``(4) the creditor demands unreasonable notice from the
            borrower as a condition for legal action;
                ``(5) the creditor uses a check or other method of access to
            a deposit, savings, or other financial account maintained by the
            borrower, or the title of a vehicle as security for the
            obligation;
                ``(6) the creditor requires as a condition for the extension
            of credit that the borrower establish an allotment to repay an
            obligation; or
                ``(7) the borrower is prohibited from prepaying the loan or
            is charged a penalty or fee for prepaying all or part of the
            loan.

        ``(f) Penalties and Remedies.--
                ``(1) Misdemeanor.--A creditor who knowingly violates this
            section shall be fined as provided in title 18, or imprisoned
            for not more than one year, or both.
                ``(2) Preservation of other remedies.--The remedies and
            rights provided under this section are in addition to and do not
            preclude any remedy otherwise available under law to the person
            claiming relief under this section, including any award for
            consequential and punitive damages.
                ``(3) Contract void.--Any credit agreement, promissory note,
            or other contract prohibited under this section is void from the
            inception of such contract.
                ``(4) Arbitration.--Notwithstanding section 2 of title 9, or
            any other Federal or State law, rule, or regulation, no
            agreement to arbitrate any dispute involving the extension of
            consumer credit shall be enforceable against any covered member
            or dependent of such a member, or any person who

    [[Page 120 STAT. 2268]]

            was a covered member or dependent of that member when the
            agreement was made.

        ``(g) Servicemembers Civil Relief Act Protections Unaffected.--
    Nothing in this section may be construed to limit or otherwise affect
    the applicability of section 207 of the Servicemembers Civil Relief Act
    (50 U.S.C. App. 527).
        ``(h) Regulations.--(1) The Secretary of Defense shall prescribe
    regulations to carry out this section.
        ``(2) Such regulations shall establish the following:
                ``(A) Disclosures required of any creditor that extends
            consumer credit to a covered member or dependent of such a
            member.
                ``(B) The method for calculating the applicable annual
            percentage rate of interest on such obligations, in accordance
            with the limit established under this section.
                ``(C) A maximum allowable amount of all fees, and the types
            of fees, associated with any such extension of credit, to be
            expressed and disclosed to the borrower as a total amount and as
            a percentage of the principal amount of the obligation, at the
            time at which the transaction is entered into.
                ``(D) Definitions of `creditor' under paragraph (5) and
            `consumer credit' under paragraph (6) of subsection (i),
            consistent with the provisions of this section.
                ``(E) Such other criteria or limitations as the Secretary of
            Defense determines appropriate, consistent with the provisions
            of this section.

        ``(3) In prescribing regulations under this subsection, the
    Secretary of Defense shall consult with the following:
                ``(A) The Federal Trade Commission.
                ``(B) The Board of Governors of the Federal Reserve System.
                ``(C) The Office of the Comptroller of the Currency.
                ``(D) The Federal Deposit Insurance Corporation.
                ``(E) The Office of Thrift Supervision.
                ``(F) The National Credit Union Administration.
                ``(G) The Treasury Department.

        ``(i) Definitions.--In this section:
                ``(1) Covered member.--The term `covered member' means a
            member of the armed forces who is--
                        ``(A) on active duty under a call or order that does
                    not specify a period of 30 days or less; or
                        ``(B) on active Guard and Reserve Duty.
                ``(2) Dependent.--The term `dependent', with respect to a
            covered member, means--
                        ``(A) the member's spouse;
                        ``(B) the member's child (as defined in section
                    101(4) of title 38); or
                        ``(C) an individual for whom the member provided
                    more than one-half of the individual's support for 180
                    days immediately preceding an extension of consumer
                    credit covered by this section.
                ``(3) Interest.--The term `interest' includes all cost
            elements associated with the extension of credit, including
            fees, service charges, renewal charges, credit insurance
            premiums, any ancillary product sold with any extension of
            credit to a servicemember or the servicemember's dependent, as
            applicable, and any other charge or premium with respect to the
            extension of consumer credit.

    [[Page 120 STAT. 2269]]

                ``(4) Annual percentage rate.--The term `annual percentage
            rate' has the same meaning as in section 107 of the Truth and
            Lending Act (15 U.S.C. 1606), as implemented by regulations of
            the Board of Governors of the Federal Reserve System. For
            purposes of this section, such term includes all fees and
            charges, including charges and fees for single premium credit
            insurance and other ancillary products sold in connection with
            the credit transaction, and such fees and charges shall be
            included in the calculation of the annual percentage rate.
                ``(5) Creditor.--The term `creditor' means a person--
                        ``(A) who--
                              ``(i) is engaged in the business of extending
                          consumer credit; and
                              ``(ii) meets such additional criteria as are
                          specified for such purpose in regulations
                          prescribed under this section; or
                        ``(B) who is an assignee of a person described in
                    subparagraph (A) with respect to any consumer credit
                    extended.
                ``(6) Consumer credit.--The term `consumer credit' has the
            meaning provided for such term in regulations prescribed under
            this section, except that such term does not include (A) a
            residential mortgage, or (B) a loan procured in the course of
            purchasing a car or other personal property, when that loan is
            offered for the express purpose of financing the purchase and is
            secured by the car or personal property procured.''.

        (b) Clerical Amendment.--The table of sections at the beginning of
    such title is amended by adding at the end the following new item:

    ``987. Terms of consumer credit extended to members and dependents:
               limitations.''.

        (c) <<NOTE: 10 USC 987 note.>> Effective Date.--
                (1) In general.--Except as provided in paragraph (2),
            section 987 of title 10, United States Code, as added by
            subsection (a), shall take effect on October 1, 2007, or on such
            earlier date as may be prescribed by the Secretary of Defense,
            and shall apply with respect to extensions of consumer credit on
            or after such effective date.
                (2) Authority to prescribe regulations.--Subsection (h) of
            such section shall take effect on the date of the enactment of
            this Act.
                (3) Publication of earlier effective date.--
            If <<NOTE: Federal Register, publication.>> the Secretary of
            Defense prescribes an effective date for section 987 of title
            10, United States Code, as added by subsection (a), earlier than
            October 1, 2007, the Secretary shall publish that date in the
            Federal Register. <<NOTE: Deadline.>> Such publication shall be
            made not less than 90 days before that earlier effective date.

        (d) <<NOTE: 10 USC 987 note.>> Interim Regulations.--The Secretary
    of Defense may prescribe interim regulations as necessary to carry out
    such section. For the purpose of prescribing such interim regulations,
    the Secretary is excepted from compliance with the notice-and-comment
    requirements of section 553 of title 5, United States
    Code. <<NOTE: Expiration date.>> All interim rules prescribed under the
    authority of this subsection that are not earlier superseded by final
    rules shall expire no later than 270 days after the effective date of
    section 987 of title 10, United States Code, as added by this section.

    [[Page 120 STAT. 2270]]

    SEC. 671. ENHANCEMENT OF AUTHORITY TO WAIVE CLAIMS FOR OVERPAYMENT
                            OF PAY AND ALLOWANCES AND TRAVEL AND
                            TRANSPORTATION ALLOWANCES.

        (a) Maximum Waiver Amount; Time for Exercise of Authority.--Section
    2774 of title 10, United States Code, is amended--
                (1) in subsection (a)(2)(A), by striking ``$1,500'' and
            inserting ``$10,000''; and
                (2) in subsection (b)(2), by striking ``three years'' and
            inserting ``five years''.

        (b) Conforming Amendments Regarding National Guard.--Section 716 of
    title 32, United States Code, is amended--
                (1) in subsection (a)(2)(A), by striking ``$1,500'' and
            inserting ``$10,000''; and
                (2) in subsection (b)(2), by striking ``three years'' and
            inserting ``five years''.

        (c) <<NOTE: 10 USC 2774 note.>> Effective Date.--The amendments made
    by this section shall take effect on March 1, 2007.
    SEC. 672. EXCEPTION FOR NOTICE TO CONSUMER REPORTING AGENCIES
                            REGARDING DEBTS OR ERRONEOUS PAYMENTS
                            PENDING A DECISION TO WAIVE, REMIT, OR
                            CANCEL.

        (a) Exception.--Section 2780(b) of title 10, United States Code, is
    amended--
                (1) by striking ``The Secretary'' and inserting ``(1) Except
            as provided in paragraph (2), the Secretary of Defense''; and
                (2) by adding at the end the following new paragraph:

        ``(2) No disclosure shall be made under paragraph (1) with respect
    to an indebtedness while a decision regarding waiver of collection of
    the indebtedness is pending under section 2774 of this title or section
    716 of title 32, or while a decision regarding remission or cancellation
    of the indebtedness is pending under section 4837, 6161, or 9837 of this
    title, unless the Secretary concerned (as defined in section 101(5) of
    title 37) determines that disclosure under that paragraph pending such
    decision is in the best interests of the United States.''.
        (b) <<NOTE: 10 USC 2780 note.>> Effective Date.--
                (1) In general.--The amendments made by this section shall
            take effect on March 1, 2007.
                (2) Application to prior actions.--Paragraph (2) of section
            2780(b) of title 10, United States Code, as added by subsection
            (a), shall not be construed to apply to or invalidate any action
            taken under such section before March 1, 2007.

        (c) Report.--Not later than March 1, 2007, the Secretary of Defense
    shall submit to the congressional defense committees a report on the
    requirement in section 2780(b) of title 10, United States Code, to
    disclose to consumer reporting agencies in accordance with section 3711
    of title 31, United States Code, information concerning certain
    indebtedness owed to the United States. The report shall include the
    following:
                (1) The total number of members of the Armed Forces whose
            indebtedness has been disclosed to consumer reporting agencies
            under section 2780(b), United States Code, during the period
            beginning on January 1, 2003, and ending on June 30, 2006.
                (2) The circumstances under which a decision to recover the
            indebtedness was made, rather than a decision to waive,

    [[Page 120 STAT. 2271]]

            remit, or cancel the indebtedness under the provisions of law
            referred to in paragraph (2) of such section, as added by
            subsection (a), and the title of the person who made the
            decision.
                (3) The cost of contracts for collection services to recover
            indebtedness owed to the United States that is delinquent.
                (4) An evaluation of whether or not such contracts, and the
            practice of disclosing to consumer reporting agencies the
            identity of members of the Armed Forces who owe a delinquent
            debt to the United States, has been effective in reducing
            indebtedness to the United States.
                (5) Such recommendations as the Secretary considers
            appropriate regarding the continuing disclosure of such
            information with respect to members of the Armed Forces.
    SEC. 673. EXPANSION AND ENHANCEMENT OF AUTHORITY TO REMIT OR
                            CANCEL INDEBTEDNESS OF MEMBERS AND FORMER
                            MEMBERS OF THE ARMED FORCES INCURRED ON
                            ACTIVE DUTY.

        (a) Department of the Army.--
                (1) Coverage of all members and former members.--Subsection
            (a) of section 4837 of title 10, United States Code, is amended
            by striking ``of a member'' and all that follows through ``on
            active duty'' and inserting ``of a person to the United States
            or any instrumentality of the United States incurred while the
            person was serving on active duty as a member of the Army''.
                (2) Repeal of limitation on time for exercise of
            authority.--Such section is further amended--
                        (A) by striking subsection (b); and
                        (B) by redesignating subsections (c) and (d) as
                    subsections (b) and (c), respectively.
                (3) Repeal of termination of modified authority.--Paragraph
            (3) of section 683(a) of the National Defense Authorization Act
            for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3322; 10
            U.S.C. 4837 note) is repealed.

        (b) Department of the Navy.--
                (1) Coverage of all members and former members.--Section
            6161 of title 10, United States Code, is amended by striking
            ``of a member'' and all that follows through ``on active duty''
            and inserting ``of a person to the United States or any
            instrumentality of the United States incurred while the person
            was serving on active duty as a member of the naval service''.
                (2) Repeal of limitation on time for exercise of
            authority.--Such section is further amended--
                        (A) by striking subsection (b); and
                        (B) by redesignating subsections (c) and (d) as
                    subsections (b) and (c), respectively.
                (3) Repeal of termination of modified authority.--Paragraph
            (3) of section 683(b) of the National Defense Authorization Act
            for Fiscal Year 2006 (119 Stat. 3323; 10 U.S.C. 6161 note) is
            repealed.

        (c) Department of the Air Force.--
                (1) Coverage of all members and former members.--Subsection
            (a) of section 9837 of title 10, United States Code, is amended
            by striking ``of a member'' and all that follows through ``on
            active duty'' and inserting ``of a person to the United States
            or any instrumentality of the United States

    [[Page 120 STAT. 2272]]

            incurred while the person was serving on active duty as a member
            of the Air Force''.
                (2) Repeal of limitation on time for exercise of
            authority.--Such section is further amended--
                        (A) by striking subsection (b); and
                        (B) by redesignating subsections (c) and (d) as
                    subsections (b) and (c), respectively.
                (3) Repeal of termination of modified authority.--Paragraph
            (3) of section 683(c) of the National Defense Authorization Act
            for Fiscal Year 2006 (119 Stat. 3324; 10 U.S.C. 9837 note) is
            repealed.

        (d) <<NOTE: 10 USC 4837 note.>> Deadline for Regulations.--The
    Secretary of Defense shall prescribe the regulations required for
    purposes of sections 4837, 6161, and 9837 of title 10, United States
    Code, as amended by this section, not later than March 1, 2007.

        (e) Clarifying and Editorial Amendments.--
                (1) Secretary of the army.--Subsection (a) of section 4837
            of title 10, United States Code, as amended by subsection
            (a)(1), is further amended--
                        (A) by striking ``If the'' and all that follows
                    through ``States, the Secretary'' and inserting ``The
                    Secretary of the Army''; and
                        (B) by inserting before the period at the end ``,
                    but only if the Secretary considers such action to be in
                    the best interest of the United States''.
                (2) Secretary of the navy.--Subsection (a) of section 6161
            of such title, as amended by subsection (b)(1), is further
            amended--
                        (A) by striking ``If the'' and all that follows
                    through ``States, the Secretary'' and inserting ``The
                    Secretary of the Navy''; and
                        (B) by inserting before the period at the end ``,
                    but only if the Secretary considers such action to be in
                    the best interest of the United States''.
                (3) Secretary of the air force.--Subsection (a) of section
            9837 of such title, as amended by subsection (c)(1), is further
            amended--
                        (A) by striking ``If the'' and all that follows
                    through ``States, the Secretary'' and inserting ``The
                    Secretary of the Air Force''; and
                        (B) by inserting before the period at the end ``,
                    but only if the Secretary considers such action to be in
                    the best interest of the United States''.
    SEC. 674. PHASED RECOVERY OF OVERPAYMENTS OF PAY MADE TO MEMBERS
                            OF THE UNIFORMED SERVICES.

        (a) Phased Recovery Required; Maximum Monthly Installment.--
    Subsection (c) of section 1007 of title 37, United States Code, is
    amended by adding at the end the following new paragraph:
        ``(3) If the indebtedness of a member of the uniformed services to
    the United States is due to the overpayment of pay or allowances to the
    member through no fault of the member, the amount of the overpayment
    shall be recovered in monthly installments. The amount deducted from the
    pay of the member for a month to recover the overpayment amount may not
    exceed 20 percent of the member's pay for that month unless the member
    requests or consents to collection of the overpayment at an accelerated
    rate.''.

    [[Page 120 STAT. 2273]]

        (b) Recovery Delay for Injured Members.--Such subsection is further
    amended by inserting after paragraph (3), as added by subsection (a),
    the following new paragraph:
        ``(4) If a member of the uniformed services is injured or wounded
    under the circumstances described in section 310(a)(2)(C) of this title
    or, while in the line of duty, incurs a wound, injury, or illness in a
    combat operation or combat zone designated by the Secretary of Defense,
    any overpayment of pay or allowances made to the member while the member
    recovers from the wound, injury, or illness may not be deducted from the
    member's pay until--
                ``(A) the end of the 90-day period beginning on the date on
            which the member is notified of the overpayment; or
                ``(B) such earlier date as may be requested or agreed to by
            the member.''.

        (c) Conforming Amendments.--Such subsection is further amended--
                (1) by inserting ``(1)'' before ``Under regulations'';
                (2) by striking ``his pay'' both places it appears and
            inserting ``the member's pay'';
                (3) by striking ``However, after'' and inserting the
            following:

        ``(2) After''; and
                (4) by inserting ``by a member of the uniformed services''
            after ``actually received''.
    SEC. 675. <<NOTE: 10 USC 1781 note.>> JOINT FAMILY SUPPORT
                            ASSISTANCE PROGRAM.

        (a) Program Required.--The Secretary of Defense shall carry out a
    joint family support assistance program for the purpose of providing to
    families of members of the Armed Forces the following types of
    assistance:
                (1) Financial and material assistance.
                (2) Mobile support services.
                (3) Sponsorship of volunteers and family support
            professionals for the delivery of support services.
                (4) Coordination of family assistance programs and
            activities provided by Military OneSource, Military Family Life
            Consultants, counselors, the Department of Defense, other
            Federal agencies, State and local agencies, and non-profit
            entities.
                (5) Facilitation of discussion on military family assistance
            programs, activities, and initiatives between and among the
            organizations, agencies, and entities referred to in paragraph
            (4).
                (6) Such other assistance that the Secretary considers
            appropriate.

        (b) Locations.--The Secretary of Defense shall carry out the program
    in not more than six areas of the United States selected by the
    Secretary. Up to three of the areas selected for the program shall be
    areas that are geographically isolated from military installations.
        (c) Resources and Volunteers.--The Secretary of Defense shall
    provide personnel and other resources of the Department of Defense
    necessary for the implementation and operation of the program and may
    accept and utilize the services of non-Government volunteers and non-
    profit entities under the program.
        (d) Procedures.--The Secretary of Defense shall establish procedures
    for the operation of the program and for the provision of assistance to
    families of members of the Armed Forces under the program.

    [[Page 120 STAT. 2274]]

        (e) Relation to Family Support Centers.--The program is not intended
    to operate in lieu of existing family support centers, but is instead
    intended to augment the activities of the family support centers.
        (f) Implementation Plan.--
                (1) Plan required.--Not <<NOTE: Deadline.>> later than 90
            days after the date on which funds are first obligated for the
            program, the Secretary of Defense shall submit to the
            congressional defense committees a report setting forth a plan
            for the implementation of the program.
                (2) Elements.--The plan required under paragraph (1) shall
            include the following:
                        (A) A description of the actions taken to select the
                    areas in which the program will be conducted.
                        (B) A description of the procedures established
                    under subsection (d).
                        (C) A review of proposed actions to be taken under
                    the program to improve coordination of family assistance
                    program and activities between and among the Department
                    of Defense, other Federal agencies, State and local
                    agencies, and non-profit entities.

        (g) Report.--
                (1) Report required.--Not later than 270 days after the date
            on which funds are first obligated for the program, the
            Secretary of Defense shall submit to the congressional defense
            committees a report on the program.
                (2) Elements.--The report shall include the following:
                        (A) A description of the program, including the
                    areas in which the program is conducted, the procedures
                    established under subsection (d) for operation of the
                    program, and the assistance provided through the program
                    for families of members of the Armed Forces.
                        (B) An assessment of the effectiveness of the
                    program in providing assistance to families of members
                    of the Armed Forces.
                        (C) An assessment of the advisability of extending
                    the program or making it permanent.

        (h) Duration.--The authority to carry out the program shall expire
    at the end of the three-year period beginning on the date on which funds
    are first obligated for the program.
    SEC. 676. <<NOTE: Establishment.>> SPECIAL WORKING GROUP ON
                            TRANSITION TO CIVILIAN EMPLOYMENT OF
                            NATIONAL GUARD AND RESERVE MEMBERS
                            RETURNING FROM DEPLOYMENT IN OPERATION
                            IRAQI FREEDOM OR OPERATION ENDURING
                            FREEDOM.

        (a) Working Group Required.--The Secretary of Defense shall
    establish within the Department of Defense a working group to identify
    and assess the needs of members of the National Guard and Reserve
    returning from deployment in Operation Iraqi Freedom or Operation
    Enduring Freedom in making the transition to civilian employment on
    their return from such deployment.
        (b) Members.--
                (1) Appointment.--Subject to paragraph (2), the Secretary of
            Defense shall appoint the members of the working group. The
            Secretary of Defense shall attempt to achieve a balance of
            members on the working group from among employees of the
            following agencies:

    [[Page 120 STAT. 2275]]

                        (A) The Department of Defense.
                        (B) The Department of Veterans Affairs.
                        (C) The Department of Labor.
                (2) Concurrence.--The appointment of employees of the
            Department of Veterans Affairs and the Department of Labor under
            paragraph (1) shall be subject to the concurrence of the
            Secretary of Veterans Affairs and the Secretary of Labor,
            respectively.

        (c) Responsibilities.--The working group shall--
                (1) identify and assess the needs of members of the National
            Guard and Reserve returning from deployment in Operation Iraqi
            Freedom or Operation Enduring Freedom in making the transition
            to civilian employment on their return from deployment,
            including the needs of--
                        (A) members who were self-employed before deployment
                    and seek to return to such employment after deployment;
                        (B) members who were students before deployment and
                    seek to return to school or commence employment after
                    deployment;
                        (C) members who have experienced multiple recent
                    deployments; and
                        (D) members who have been wounded or injured during
                    deployment;
                (2) identify and assess the extent to which such members
            receive promotions on their return from deployment in Operation
            Iraqi Freedom or Operation Enduring Freedom or experience
            constructive termination by their employers as a result of such
            deployment; and
                (3) develop recommendations on means of improving assistance
            to such members in meeting the needs identified in paragraph (1)
            on their return from deployment in Operation Iraqi Freedom or
            Operation Enduring Freedom.

        (d) Consultation.--In carrying out its responsibilities under
    subsection (c), the working group shall consult with the following:
                (1) Employees of the Small Business Administration.
                (2) Representatives of employers that employ, and
            associations of employers whose members employ, members of the
            National Guard and Reserve deployed in Operation Iraqi Freedom
            or Operation Enduring Freedom.
                (3) Representatives of employee assistance organizations.
                (4) Representatives of organizations that assist wounded or
            injured members of the National Guard and Reserves in finding or
            sustaining employment.
                (5) Representatives of such other public or private
            organizations and entities as the working group considers
            appropriate.

        (e) Report.--
                (1) In general.--Not later than one year after the date of
            the enactment of this Act, the working group established under
            subsection (a) shall submit to the Secretary of Defense and
            Congress a report on its activities under subsection (c).
                (2) Elements.--The report shall include the following:
                        (A) The results of the identifications and
                    assessments required under subsection (c).
                        (B) The recommendations developed under subsection
                    (c)(3), including recommendations on the following:

    [[Page 120 STAT. 2276]]

                              (i) The provision of outreach and training to
                          employers, employment assistance organizations,
                          and associations of employers on the employment
                          and transition needs of members of the National
                          Guard and Reserve returning from deployment in
                          Operation Iraqi Freedom or Operation Enduring
                          Freedom.
                              (ii) The provision of outreach and training to
                          employers, employment assistance organizations,
                          and associations of employers on the needs of
                          family members of such members.
                              (iii) The improvement of collaboration between
                          the public and private sectors in order to ensure
                          the successful transition of such members into
                          civilian employment upon their return from such
                          deployment.
                (3) Availability to public.--
            The <<NOTE: Internet.>> Secretary shall take appropriate actions
            to make the report available to the public, including through
            the Internet website of the Department of Defense.

        (f) Termination.--The working group shall terminate on the date that
    is two years after the date of the enactment of this Act.
        (g) Employment Assistance Organization Defined.--In this section,
    the term ``employment assistance organization'' means an organization or
    entity, whether public or private, that provides assistance to
    individuals in finding or retaining employment, including organizations
    and entities under military career support programs.
    SEC. 677. AUDIT OF PAY ACCOUNTS OF MEMBERS OF THE ARMY EVACUATED
                            FROM A COMBAT ZONE FOR INPATIENT CARE.

        (a) Audit Required.--The Secretary of the Army shall conduct a
    complete audit of the pay accounts of each member of the Army wounded or
    injured in a combat zone who was evacuated from a theater of operations
    for inpatient care during the period beginning on May 1, 2005, and
    ending on April 30, 2006.
        (b) Report on Results of Audit.--
                (1) Report required.--Not later than 120 days after the date
            of the enactment of this Act, the Secretary shall submit to the
            congressional defense committees a report on the audit conducted
            under subsection (a).
                (2) Identification of members.--The report shall include a
            list of each member of the Army described in subsection (a)
            identified, in a manner that protects the privacy of the
            members, by--
                        (A) the date of the wound or injury that is the
                    basis for the inclusion of the member on the list; and
                        (B) the grade of the member and unit designation as
                    of that date.
                (3) Additional report elements.--For each member included on
            the list prepared under paragraph (2), the report shall include
            the following:
                        (A) A statement of any underpayment of each of any
                    pay, allowance, or other monetary benefit to which the
                    member was entitled during the period beginning on the
                    date on which the wound or injury was incurred and
                    ending on April 30, 2006, including basic pay, hazardous
                    duty pay, imminent danger pay, basic allowance for
                    housing,

    [[Page 120 STAT. 2277]]

                    basic allowance for subsistence, any family separation
                    allowance, any tax exclusion for combat duty, and any
                    other pay, allowance, or monetary benefit to which such
                    member was entitled during such period.
                        (B) A statement of any disbursements made to correct
                    underpayments made to the member, as identified under
                    subparagraph (A).
                        (C) A statement of any debts to the United States
                    collected or pending collection from the member.
                        (D) A statement of any reimbursements or debt relief
                    granted to the member for a debt identified under
                    subparagraph (C).
                        (E) If the member has applied to the United States
                    for a relief of debt--
                              (i) a description of the nature of the debt
                          for which relief was applied; and
                              (ii) a description of the disposition of the
                          application, including--
                                        (I) if relief was granted, the date
                                    of disbursement of relief; and
                                        (II) if relief was denied, the
                                    reasons for the denial of relief.
                        (F) A report of any referral of the member to a
                    collection or credit agency.
                (4) Form of report.--The report shall be submitted in
            unclassified form, but may include a classified annex.
    SEC. 678. REPORT ON ELIGIBILITY AND PROVISION OF ASSIGNMENT
                            INCENTIVE PAY.

        Not later than 60 days after the date of the enactment of this Act,
    the Secretary of the Army shall submit to Congress a report--
                (1) specifying the number of members of the Army National
            Guard and the Army Reserve adversely affected by the disparate
            treatment afforded to members who previously served under a call
            or order to active duty under section 12304 of title 10, United
            States Code, in determining eligibility for assignment incentive
            pay; and
                (2) containing proposed remedies or courses of action to
            correct this disparity, including allowing time served during a
            call or order to active duty under such section 12304 to count
            toward the time needed to qualify for assignment incentive pay.
    SEC. 679. SENSE OF CONGRESS CALLING FOR PAYMENT TO WORLD WAR II
                            VETERANS WHO SURVIVED BATAAN DEATH MARCH.

        (a) Call for Appropriate Compensation.--It is the sense of Congress
    that--
                (1) there should be paid to each living Bataan Death March
            survivor an appropriate amount of compensation in recognition of
            their captivity during World War II; and
                (2) in the case of a Bataan Death March survivor who is
            deceased, but who has an unremarried surviving spouse, such
            compensation should be paid to that surviving spouse.

        (b) Bataan Death March Survivor.--In this section, the term ``Bataan
    Death March survivor'' means an individual who as a member of the Armed
    Forces during World War II was captured on the peninsula of Bataan or
    island of Corregidor in the territory

    [[Page 120 STAT. 2278]]

    of the Philippines by Japanese forces and participated in and survived
    the Bataan Death March.

                        TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--TRICARE Program Improvements

    Sec. 701. TRICARE coverage for forensic examination following sexual
               assault or domestic violence.
    Sec. 702. Authorization of anesthesia and other costs for dental care
               for children and certain other patients.
    Sec. 703. Improvements to descriptions of cancer screening for women.
    Sec. 704. Prohibition on increases in certain health care costs for
               members of the uniformed services.
    Sec. 705. Demonstration project on coverage of selected over-the-counter
               drugs under the pharmacy benefits program.
    Sec. 706. Expanded eligibility of Selected Reserve members under TRICARE
               program.
    Sec. 707. Relationship between the TRICARE program and employer-
               sponsored group health care plans.
    Sec. 708. Temporary prohibition on increase in copayments under retail
               pharmacy system of pharmacy benefits program.

                         Subtitle B--Studies and Reports

    Sec. 711. Department of Defense task force on the future of military
               health care.
    Sec. 712. Study relating to chiropractic health care services.
    Sec. 713. Comptroller General audits of Department of Defense health
               care costs and cost-saving measures.
    Sec. 714. Transfer of custody of the Air Force Health Study assets to
               Medical Follow-up Agency.
    Sec. 715. Study on allowing dependents of activated members of reserve
               components to retain civilian health care coverage.
    Sec. 716. Study of health effects of exposure to depleted uranium.
    Sec. 717. Report and plan on services to military dependent children
               with autism.
    Sec. 718. Comptroller General study on Department of Defense pharmacy
               benefits program.
    Sec. 719. Review of Department of Defense medical quality improvement
               program.
    Sec. 720. Report on distribution of hemostatic agents for use in the
               field.
    Sec. 721. Longitudinal study on traumatic brain injury incurred by
               members of the Armed Forces in Operation Iraqi Freedom and
               Operation Enduring Freedom.

                Subtitle C--Planning, Programming, and Management

    Sec. 731. Standardization of claims processing under TRICARE program and
               Medicare program.
    Sec. 732. Requirements for support of military treatment facilities by
               civilian contractors under TRICARE.
    Sec. 733. Standards and tracking of access to health care services for
               wounded, injured, or ill servicemembers returning to the
               United States from a combat zone.
    Sec. 734. Disease and chronic care management.
    Sec. 735. Additional elements of assessment of Department of Defense
               task force on mental health relating to mental health of
               members who were deployed in Operation Iraqi Freedom and
               Operation Enduring Freedom.
    Sec. 736. Additional authorized option periods for extension of current
               contracts under TRICARE.
    Sec. 737. Military vaccination matters.
    Sec. 738. Enhanced mental health screening and services for members of
               the Armed Forces.

                            Subtitle D--Other Matters

    Sec. 741. Pilot projects on early diagnosis and treatment of post
               traumatic stress disorder and other mental health conditions.
    Sec. 742. Requirement to certify and report on conversion of military
               medical and dental positions to civilian medical and dental
               positions.
    Sec. 743. Three-year extension of joint incentives program on sharing of
               health care resources by the Department of Defense and
               Department of Veterans Affairs.
    Sec. 744. Training curricula for family caregivers on care and
               assistance for members and former members of the Armed Forces
               with traumatic brain injury.

    [[Page 120 STAT. 2279]]

    Sec. 745. Recognition of Representative Lane Evans upon his retirement
               from the House of Representatives.

                    Subtitle A--TRICARE Program Improvements

    SEC. 701. TRICARE COVERAGE FOR FORENSIC EXAMINATION FOLLOWING
                            SEXUAL ASSAULT OR DOMESTIC VIOLENCE.

        Section 1079(a) of title 10, United States Code, is amended by
    adding at the end the following new paragraph:
                ``(17) Forensic examinations following a sexual assault or
            domestic violence may be provided.''.
    SEC. 702. AUTHORIZATION OF ANESTHESIA AND OTHER COSTS FOR DENTAL
                            CARE FOR CHILDREN AND CERTAIN OTHER
                            PATIENTS.

        Paragraph (1) of section 1079(a) of title 10, United States Code, is
    amended to read as follows:
                ``(1) With respect to dental care--
                        ``(A) except as provided in subparagraph (B), only
                    that care required as a necessary adjunct to medical or
                    surgical treatment may be provided; and
                        ``(B) in connection with dental treatment for
                    patients with developmental, mental, or physical
                    disabilities or for pediatric patients age 5 or under,
                    only institutional and anesthesia services may be
                    provided.''.
    SEC. 703. IMPROVEMENTS TO DESCRIPTIONS OF CANCER SCREENING FOR
                            WOMEN.

        (a) Terms Related to Primary and Preventive Health Care Services for
    Women.--Section 1074d of title 10, United States Code, is amended--
                (1) in subsection (a)(1), by adding at the end the following
            new sentence: ``The services described in paragraphs (1) and (2)
            of subsection (b) shall be provided under such procedures and at
            such intervals as the Secretary of Defense shall prescribe.'';
            and
                (2) in subsection (b)--
                        (A) in paragraph (1), by striking ``Papanicolaou
                    tests (pap smear)'' and inserting ``Cervical cancer
                    screening''; and
                        (B) in paragraph (2), by striking ``Breast
                    examinations and mammography'' and inserting ``Breast
                    cancer screening''.

        (b) Terms Related to Contracts for Medical Care for Spouses and
    Children.--Section 1079(a)(2) of such title is amended--
                (1) in the matter preceding subparagraph (A), by striking
            ``the schedule of pap smears and mammograms'' and inserting
            ``the schedule and method of cervical cancer screenings and
            breast cancer screenings''; and
                (2) in subparagraph (B), by striking ``pap smears and
            mammograms'' and inserting ``cervical and breast cancer
            screenings''.

    [[Page 120 STAT. 2280]]

    SEC. 704. PROHIBITION ON INCREASES IN CERTAIN HEALTH CARE COSTS
                            FOR MEMBERS OF THE UNIFORMED SERVICES.

        (a) Prohibition on Increase in Charges Under Contracts for Medical
    Care.--Section 1097(e) of title 10, United States Code, is amended by
    adding at the end the following: ``A premium, deductible, copayment, or
    other charge prescribed by the Secretary under this subsection may not
    be increased during the period beginning on April 1, 2006, and ending on
    September 30, 2007.''.
        (b) Prohibition on Increase in Charges for Inpatient Care.--Section
    1086(b)(3) of title 10, United States Code, is amended by inserting
    after ``charges for inpatient care'' the following: ``, except that in
    no case may the charges for inpatient care for a patient exceed $535 per
    day during the period beginning on April 1, 2006, and ending on
    September 30, 2007.''.
        (c) Prohibition on Increase in Premiums Under TRICARE Coverage for
    Certain Members in the Selected Reserve.--Section 1076d(d)(3) of title
    10, United States Code, is amended by adding at the end the following:
    ``During the period beginning on April 1, 2006, and ending on September
    30, 2007, the monthly amount of the premium may not be increased above
    the amount in effect for the month of March 2006.''.
        (d) Prohibition on Increase in Premiums Under TRICARE Coverage for
    Members of the Ready Reserve.--Section 1076b(e)(3) of title 10, United
    States Code, is amended by adding at the end the following: ``During the
    period beginning on April 1, 2006, and ending on September 30, 2007, the
    monthly amount of a premium under paragraph (2) may not be increased
    above the amount in effect for the first month health care is provided
    under this section as amended by Public Law 109-163.''.
    SEC. 705. <<NOTE: 10 USC 1074g note.>> DEMONSTRATION PROJECT ON
                            COVERAGE OF SELECTED OVER-THE-COUNTER
                            DRUGS UNDER THE PHARMACY BENEFITS PROGRAM.

        (a) Requirement to Conduct Demonstration.--The Secretary of Defense
    shall conduct a demonstration project under section 1092 of title 10,
    United States Code, to allow particular over-the-counter drugs to be
    included on the uniform formulary under section 1074g of such title.
        (b) Elements of Demonstration Project.--
                (1) Inclusion of certain over-the-counter drugs.--(A) As
            part of the demonstration project, the Secretary shall modify
            uniform formulary specifications under section 1074g(a) of such
            title to include an over-the-counter drug (referred to in this
            section as an ``OTC drug'') on the uniform formulary if the
            Pharmacy and Therapeutics Committee finds that the OTC drug is
            cost-effective and therapeutically equivalent to a prescription
            drug. If the Pharmacy and Therapeutics Committee makes such a
            finding, the OTC drug shall be considered to be in the same
            therapeutic class of pharmaceutical agents as the prescription
            drug.
                (B) An OTC drug shall be made available to a beneficiary
            through the demonstration project, but only if--
                        (i) the beneficiary has a prescription for a drug
                    requiring a prescription; and
                        (ii) pursuant to subparagraph (A), the OTC drug--
                              (I) is on the uniform formulary; and

    [[Page 120 STAT. 2281]]

                              (II) has been determined to be therapeutically
                          equivalent to the prescription drug.
                (2) Conduct through military facilities, retail pharmacies,
            or mail order program.--The Secretary shall conduct the
            demonstration project through at least two of the means
            described in subparagraph (E) of section 1074g(a)(2)(E) of such
            title through which OTC drugs are provided and may conduct the
            demonstration project throughout the entire pharmacy benefits
            program or at a limited number of sites. If the project is
            conducted at a limited number of sites, the number of sites
            shall be not less than five in each TRICARE region for each of
            the two means described in such subparagraph.
                (3) Period of demonstration.--The Secretary shall provide
            for conducting the demonstration project for a period of time
            necessary to evaluate the feasibility and cost effectiveness of
            the demonstration. Such period shall be at least as long as the
            period covered by pharmacy contracts in existence on the date of
            the enactment of this Act (including any extensions of the
            contracts), or five years, whichever is shorter.
                (4) Implementation deadline.--Implementation of the
            demonstration project shall begin not later than May 1, 2007.

        (c) Evaluation of Demonstration Project.--The Secretary shall
    evaluate the demonstration project for the following:
                (1) The costs and benefits of providing OTC drugs under the
            pharmacy benefits program in each of the means chosen by the
            Secretary to conduct the demonstration project.
                (2) The clinical effectiveness of providing OTC drugs under
            the pharmacy benefits program.
                (3) Customer satisfaction with the demonstration project.

        (d) Report.--Not later than two years after implementation of the
    demonstration project begins, the Secretary shall submit to the
    Committees on Armed Services of the Senate and House of Representatives
    a report on the demonstration project. The report shall contain--
                (1) the evaluation required by subsection (c);
                (2) recommendations for improving the provision of OTC drugs
            under the pharmacy benefits program; and
                (3) recommendations on whether permanent authority should be
            provided to cover OTC drugs under the pharmacy benefits program.

        (e) Continuation of Demonstration Project.--If the Secretary
    recommends in the report under subsection (d) that permanent authority
    should be provided, the Secretary may continue the demonstration project
    for up to one year after submitting the report.
        (f) Definitions.--In this section:
                (1) The term ``drug'' means a drug, including a biological
            product, within the meaning of section 1074g(f)(2) of title 10,
            United States Code.
                (2) The term ``OTC drug'' has the meaning indicated for such
            term in subsection (b)(1)(A).
                (3) The term ``over-the-counter drug'' means a drug that is
            not subject to section 503(b) of the Federal Food, Drug, and
            Cosmetic Act.
                (4) The term ``prescription drug'' means a drug that is
            subject to section 503(b) of the Federal Food, Drug, and
            Cosmetic Act.

    [[Page 120 STAT. 2282]]

    SEC. 706. EXPANDED ELIGIBILITY OF SELECTED RESERVE MEMBERS UNDER
                            TRICARE PROGRAM.

        (a) General Eligibility.--Subsection (a) of section 1076d of title
    10, United States Code, is amended--
                (1) by striking ``(a) Eligibility.--A member'' and inserting
            ``(a) Eligibility.--(1) Except as provided in paragraph (2), a
            member'';
                (2) by striking ``after the member completes'' and all that
            follows through ``one or more whole years following such date'';
            and
                (3) by adding at the end the following new paragraph:

        ``(2) Paragraph (1) does not apply to a member who is enrolled, or
    is eligible to enroll, in a health benefits plan under chapter 89 of
    title 5.''.
        (b) Condition for Termination of Eligibility.--Subsection (b) of
    such section is amended--
                (1) by striking ``(b) Period of Coverage.--(1) TRICARE
            Standard'' and all that follows through ``(4) Eligibility'' and
            inserting ``(b) Termination of Eligibility Upon Termination of
            Service.--Eligibility''; and
                (2) by striking paragraph (5).

        (c) Conforming Amendments.--
                (1) Such section is further amended--
                        (A) by striking subsection (e);
                        (B) by redesignating subsection (g) as subsection
                    (e) and transferring such subsection within such section
                    so as to appear following subsection (d); and
                        (C) by striking paragraph (3) of subsection (f).
                (2) The heading for such section is amended to read as
            follows:

    ``Sec. 1076d. TRICARE program: TRICARE standard coverage for members of
                            the Selected Reserve''.

        (d) Repeal of Obsolete Provision.--Effective <<NOTE: Effective
    date.>> October 1, 2007, section 1076b of title 10, United States Code,
    is repealed.

        (e) Clerical Amendments.--Effective <<NOTE: Effective
    date.>> October 1, 2007, the table of sections at the beginning of
    chapter 55 of title 10, United States Code, is amended--
                (1) by striking the item relating to section 1076b; and
                (2) by striking the item relating to section 1076d and
            inserting the following:

    ``1076d. TRICARE program: TRICARE Standard coverage for members of the
               Selected Reserve.''.

        (f) <<NOTE: 10 USC 1076d note.>> Savings Provision.--Enrollments in
    TRICARE Standard that are in effect on the day before the date of the
    enactment of this Act under section 1076d of title 10, United States
    Code, as in effect on such day, shall be continued until terminated
    after such day under such section 1076d as amended by this section.

        (g) <<NOTE: 10 USC 1076d note.>> Effective Date.--The Secretary of
    Defense shall ensure that health care under TRICARE Standard is provided
    under section 1076d of title 10, United States Code, as amended by this
    section, beginning not later than October 1, 2007.

    [[Page 120 STAT. 2283]]

    SEC. 707. RELATIONSHIP BETWEEN THE TRICARE PROGRAM AND EMPLOYER-
                            SPONSORED GROUP HEALTH CARE PLANS.

        (a) In General.--Chapter 55 of title 10, United States Code, is
    amended by inserting after section 1097b the following new section:

    ``Sec. 1097c. TRICARE program: relationship with employer-sponsored
                            group health plans

        ``(a) Prohibition on Financial Incentives Not to Enroll in a Group
    Health Plan.--(1) Except as provided in this subsection, the provisions
    of section 1862(b)(3)(C) of the Social Security Act shall apply with
    respect to financial or other incentives for a TRICARE-eligible employee
    not to enroll (or to terminate enrollment) under a health plan which
    would (in the case of such enrollment) be a primary plan under sections
    1079(j)(1) and 1086(g) of this title in the same manner as such section
    1862(b)(3)(C) applies to financial or other incentives for an individual
    entitled to benefits under title XVIII of the Social Security Act not to
    enroll (or to terminate enrollment) under a group health plan or a large
    group health plan which would (in the case of enrollment) be a primary
    plan (as defined in section 1862(b)(2)(A) of such Act).
        ``(2)(A) The Secretary of Defense may by regulation adopt such
    additional exceptions to the prohibition referenced and applied under
    paragraph (1) as the Secretary deems appropriate and such paragraph (1)
    shall be implemented taking into account the adoption of such
    exceptions.
        ``(B) The Secretary of Defense and the Secretary of Health and Human
    Services are authorized to enter into agreements for carrying out this
    subsection. Any such agreement shall provide that any expenses incurred
    by the Secretary of Health and Human Services pertaining to carrying out
    this subsection shall be reimbursed by the Secretary of Defense.
        ``(C) Authorities of the Inspector General of the Department of
    Defense shall be available for oversight and investigations of
    responsibilities of employers and other entities under this subsection.
        ``(D) Information obtained under section 1095(k) of this title may
    be used in carrying out this subsection in the same manner as
    information obtained under section 1862(b)(5) of the Social Security Act
    may be used in carrying out section 1862(b) of such Act.
        ``(E) Any amounts collected in carrying out paragraph (1) shall be
    handled in accordance with section 1079a of this title.
        ``(b) Election of TRICARE-Eligible Employees to Participate in Group
    Health Plan.--A TRICARE-eligible employee shall have the opportunity to
    elect to participate in the group health plan offered by the employer of
    the employee and receive primary coverage for health care services under
    the plan in the same manner and to the same extent as similarly situated
    employees of such employer who are not TRICARE-eligible employees.
        ``(c) Inapplicability to Certain Employers.--The provisions of this
    section do not apply to any employer who has fewer than 20 employees.
        ``(d) Retention of Eligibility for Coverage Under TRICARE.--Nothing
    in this section, including an election made by a TRICARE-eligible
    employee under subsection (b), shall be construed to affect, modify, or
    terminate the eligibility of a

    [[Page 120 STAT. 2284]]

    TRICARE-eligible employee or spouse of such employee for health care or
    dental services under this chapter in accordance with the other
    provisions of this chapter.
        ``(e) Outreach.--The Secretary of Defense shall, in coordination
    with the other administering Secretaries, conduct outreach to inform
    covered beneficiaries who are entitled to health care benefits under the
    TRICARE program of the rights and responsibilities of such beneficiaries
    and employers under this section.
        ``(f) Definitions.--In this section:
                ``(1) The term `employer' includes a State or unit of local
            government.
                ``(2) The term `group health plan' means a group health plan
            (as that term is defined in section 5000(b)(1) of the Internal
            Revenue Code of 1986 without regard to section 5000(d) of the
            Internal Revenue Code of 1986).
                ``(3) The term `TRICARE-eligible employee' means a covered
            beneficiary under section 1086 of this title entitled to health
            care benefits under the TRICARE program.

        ``(g) Effective Date.--This section shall take effect on January 1,
    2008.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    chapter 55 of such title is amended by inserting after the item relating
    to section 1097b the following new item:

    ``1097c. TRICARE program: relationship with employer-sponsored group
               health plans.''.

    SEC. 708. TEMPORARY PROHIBITION ON INCREASE IN COPAYMENTS UNDER
                            RETAIL PHARMACY SYSTEM OF PHARMACY
                            BENEFITS PROGRAM.

        (a) Temporary Prohibition.--During <<NOTE: Effective date.>> the
    period beginning on October 1, 2006, and ending on September 30, 2007,
    the cost sharing requirements established under paragraph (6) of section
    1074g of title 10, United States Code, for pharmaceutical agents
    available through retail pharmacies covered by paragraph (2)(E)(ii) of
    such section may not exceed amounts as follows:
                (1) In the case of generic agents, $3.
                (2) In the case of formulary agents, $9.
                (3) In the case of nonformulary agents, $22.

        (b) Transfer of Funds.--The Secretary of Defense shall transfer
    $186,000,000 from the unobligated balances of the National Defense
    Stockpile Transaction Fund to the Department of Defense Medicare-
    Eligible Retiree Health Care Fund.

                         Subtitle B--Studies and Reports

    SEC. 711. DEPARTMENT OF DEFENSE TASK FORCE ON THE FUTURE OF
                            MILITARY HEALTH CARE.

        (a) Requirement to Establish.--The Secretary of Defense shall
    establish within the Department of Defense a task force to examine
    matters relating to the future of military health care.
        (b) Composition.--
                (1) Members.--The task force shall consist of not more than
            14 members appointed by the Secretary of Defense from among
            individuals described in paragraph (2) who have demonstrated
            expertise in the area of health care programs and costs.

    [[Page 120 STAT. 2285]]

                (2) Range of members.--The individuals appointed to the task
            force shall include--
                        (A) at least one member of each of the Medical
                    Departments of the Army, Navy, and Air Force;
                        (B) a number of persons from outside the Department
                    of Defense equal to the total number of personnel from
                    within the Department of Defense (whether members of the
                    Armed Forces or civilian personnel) who are appointed to
                    the task force;
                        (C) persons who have experience in--
                              (i) health care actuarial forecasting;
                              (ii) health care program and budget
                          development;
                              (iii) health care information technology;
                              (iv) health care performance measurement;
                              (v) health care quality improvement including
                          evidence-based medicine; and
                              (vi) women's health;
                        (D) the senior medical advisor to the Chairman of
                    the Joint Chiefs of Staff;
                        (E) the Director of Defense Procurement and
                    Acquisition Policy in the Office of the Under Secretary
                    of Defense for Acquisition, Technology, and Logistics;
                        (F) at least one member from the Defense Business
                    Board;
                        (G) at least one representative from an organization
                    that advocates on behalf of active duty and retired
                    members of the Armed Forces who has experience in health
                    care; and
                        (H) at least one member from the Institute of
                    Medicine.
                (3) Individuals appointed outside the department of
            defense.--
                        (A) Individuals appointed to the task force from
                    outside the Department of Defense may include officers
                    or employees of other departments or agencies of the
                    Federal Government, officers or employees of State and
                    local governments, or individuals from the private
                    sector.
                        (B) Individuals appointed to the task force from
                    outside the Department of Defense shall include--
                              (i) an officer or employee of the Department
                          of Veterans Affairs; and
                              (ii) an officer or employee of the Department
                          of Health and Human Services.
                (4) Deadline for appointment.--All appointments of
            individuals to the task force shall be made not later than 90
            days after the date of the enactment of this Act.
                (5) Co-chairs of task force.--There shall be two co-chairs
            of the task force. One of the co-chairs shall be designated by
            the Secretary of Defense at the time of appointment from among
            the Department of Defense personnel appointed to the task force.
            The other co-chair shall be selected from among the members
            appointed from outside the Department of Defense by members so
            appointed.

        (c) Assessment and Recommendations on the Future of Military Health
    Care.--
                (1) In general.--Not <<NOTE: Reports.>> later than 12 months
            after the date on which all members of the task force have been
            appointed, the task force shall submit to the Secretary a report
            containing

    [[Page 120 STAT. 2286]]

            an assessment of, and recommendations for, sustaining the
            military health care services being provided to members of the
            Armed Forces, retirees, and their families.
                (2) Utilization of other efforts.--In preparing the report,
            the task force shall take into consideration the findings and
            recommendations included in the Healthcare for Military Retirees
            Task Group of the Defense Business Board, previous Government
            Accountability Office reports, studies and reviews by the
            Assistant Secretary of Defense for Health Affairs, and any other
            studies or research conducted by organizations regarding program
            and organizational improvements to the military health care
            system.
                (3) Elements.--The assessment and recommendations (including
            recommendations for legislative or administrative action) shall
            include measures to address the following:
                        (A) Wellness initiatives and disease management
                    programs of the Department of Defense, including health
                    risk tracking and the use of rewards for wellness.
                        (B) Education programs focused on prevention
                    awareness and patient-initiated health care.
                        (C) The ability to account for the true and accurate
                    cost of health care in the military health system.
                        (D) Alternative health care initiatives to manage
                    patient behavior and costs, including options and costs
                    and benefits of a universal enrollment system for all
                    TRICARE users.
                        (E) The appropriate command and control structure
                    within the Department of Defense and the Armed Forces to
                    manage the military health system.
                        (F) The adequacy of the military health care
                    procurement system, including methods to streamline
                    existing procurement activities.
                        (G) The appropriate mix of military and civilian
                    personnel to meet future readiness and high-quality
                    health care service requirements.
                        (H) The beneficiary and Government cost sharing
                    structure required to sustain military health benefits
                    over the long term.
                        (I) Programs focused on managing the health care
                    needs of Medicare-eligible military beneficiaries.
                        (J) Efficient and cost effective contracts for
                    health care support and staffing services, including
                    performance-based requirements for health care provider
                    reimbursement.

        (d) Administrative Matters.--
                (1) Compensation.--Each member of the task force who is a
            member of the Armed Forces or a civilian officer or employee of
            the United States shall serve without compensation (other than
            compensation to which entitled as a member of the Armed Forces
            or an officer or employee of the United States, as the case may
            be). Other members of the task force shall be treated for
            purposes of section 3161 of title 5, United States Code, as
            having been appointed under subsection (b) of such section.
                (2) Oversight.--The Under Secretary of Defense for Personnel
            and Readiness shall oversee the activities of the task force.

    [[Page 120 STAT. 2287]]

                (3) Administrative support.--The Washington Headquarters
            Services of the Department of Defense shall provide the task
            force with personnel, facilities, and other administrative
            support as necessary for the performance of the duties of the
            task force.
                (4) Access to facilities.--The Under Secretary of Defense
            for Personnel and Readiness shall, in coordination with the
            Secretaries of the military departments, ensure appropriate
            access by the task force to military installations and
            facilities for purposes of the discharge of the duties of the
            task force.

        (e) Reports.--
                (1) Interim report.--Not later than May 31, 2007, the task
            force shall submit to the Secretary of Defense and the
            Committees on Armed Services of the Senate and the House of
            Representatives an interim report on the activities of the task
            force. At a minimum, the report shall include interim findings
            and recommendations regarding subsection (c)(3)(H), particularly
            with regard to cost sharing under the pharmacy benefits program.
                (2) Final report.--(A) The task force shall submit to the
            Secretary of Defense a final report on its activities under this
            section. The report shall include--
                        (i) a description of the activities of the task
                    force;
                        (ii) the assessment and recommendations required by
                    subsection (c); and
                        (iii) such other matters relating to the activities
                    of the task force that the task force considers
                    appropriate.
                (B) Not later than 90 days after receipt of the report under
            subparagraph (A), the Secretary shall transmit the report to the
            Committees on Armed Services of the Senate and the House of
            Representatives. The Secretary may include in the transmittal
            such comments on the report as the Secretary considers
            appropriate.

        (f) Termination.--The task force shall terminate 90 days after the
    date on which the final report of the task force is transmitted to
    Congress under subsection (e)(2).
    SEC. 712. STUDY RELATING TO CHIROPRACTIC HEALTH CARE SERVICES.

        (a) Study Required.--
                (1) Groups covered.--The Secretary of Defense shall conduct
            a study of providing chiropractic health care services and
            benefits to the following groups:
                        (A) All members of the uniformed services on active
                    duty and entitled to care under section 1074(a) of title
                    10, United States Code.
                        (B) All members described in subparagraph (A) and
                    their eligible dependents, and all members of the
                    Selected Reserves and their eligible dependents.
                        (C) All members or former members of the uniformed
                    services who are entitled to retired or retainer pay or
                    equivalent pay and their eligible dependents.
                (2) Matters examined.--
                        (A) For each group listed in subparagraphs (A), (B),
                    and (C) of paragraph (1), the study shall examine the
                    following with respect to chiropractic health care
                    services and benefits:

    [[Page 120 STAT. 2288]]

                              (i) The cost of providing such services and
                          benefits.
                              (ii) The feasibility of providing such
                          services and benefits.
                              (iii) An assessment of the health care
                          benefits of providing such services and benefits.
                              (iv) An estimate of the potential cost savings
                          of providing such services and benefits in lieu of
                          other medical services.
                              (v) The identification of existing and planned
                          health care infrastructure, including personnel,
                          equipment, and facilities, to accommodate the
                          provision of chiropractic health care services.
                        (B) For the members of the group listed in
                    subparagraph (A) of paragraph (1), the study shall also
                    examine the effects of providing chiropractic health
                    care services and benefits--
                              (i) on the readiness of such members; and
                              (ii) on the acceleration of the return to duty
                          of such members following an identified injury or
                          other malady that can be appropriately treated
                          with chiropractic health care services.
                (3) Space available costs.--The study shall also include a
            detailed analysis of the projected costs of providing
            chiropractic health care services on a space available basis in
            the military treatment facilities currently providing
            chiropractic care under section 702 of the Floyd D. Spence
            National Defense Authorization Act of Fiscal Year 2001 (as
            enacted by Public Law 106-398; 10 U.S.C. 1092 note).
                (4) Eligible dependent defined.--In this section, the term
            ``eligible dependent'' has the meaning given that term in
            section 1076a(k) of title 10, United States Code.

        (b) Report Required.--Not later than March 31, 2008, the Secretary
    of Defense shall submit to the Committees on Armed Services of the
    Senate and the House of Representatives a report on the study required
    under subsection (a).
    SEC. 713. COMPTROLLER GENERAL AUDITS OF DEPARTMENT OF DEFENSE
                            HEALTH CARE COSTS AND COST-SAVING
                            MEASURES.

        (a) General Audit Required.--
                (1) In general.--The Comptroller General of the United
            States, in cooperation with the Director of the Congressional
            Budget Office, shall conduct an audit of the Department of
            Defense initiative to manage future medical benefits available
            through the Department known as ``Sustain the Benefit''.
                (2) Elements.--The audit required by paragraph (1) shall
            examine the following:
                        (A) The basis for the calculation by the Department
                    of Defense of the portion of the costs of health care
                    benefits provided by the Department to beneficiaries
                    that were paid by such beneficiaries in each of 1995 and
                    2005, including--
                              (i) a comparison of the cost to the Department
                          of providing such benefits in each of 1995 and
                          2005;
                              (ii) the explanation for any increases in the
                          costs of the Department of providing such benefits
                          between 1995 and 2005; and

    [[Page 120 STAT. 2289]]

                              (iii) a comparison of the amounts paid, by
                          category of beneficiaries, for health care
                          benefits in 1995 with the amounts paid, by
                          category of beneficiaries, for such benefits in
                          2005.
                        (B) The calculations and assumptions utilized by the
                    Department in estimating the savings anticipated through
                    the implementation of proposed increases in cost-sharing
                    for health care benefits beginning in 2007.
                        (C) The average annual rate of increase, based on
                    inflation, of medical costs for the Department under the
                    Defense Health Program.
                        (D) The annual rate of growth in the cost of the
                    Defense Health Program that is attributable to inflation
                    in the cost of medical services over the last five years
                    and how such rate of growth compares with annual rates
                    of increases in health care premiums under the Federal
                    Employee Health Benefit Program and other health care
                    programs as well as rates of growth of other health care
                    cost indices over that time.
                        (E) The assumptions utilized by the Department in
                    estimating savings associated with adjustments in
                    copayments for pharmaceuticals.
                        (F) The costs of the administration of the Defense
                    Health Program and the TRICARE program for all
                    categories of beneficiaries.

        (b) Audit of TRICARE Reserve Select Program.--
                (1) In general.--In addition to the audit required by
            subsection (a), the Comptroller General shall conduct an audit
            of the costs of the Department of Defense in implementing the
            TRICARE Reserve Select Program.
                (2) Elements.--The audit required by paragraph (1) shall
            include an examination of the following:
                        (A) A comparison of the annual premium amounts
                    established by the Department of Defense for the TRICARE
                    Reserve Select Program with the actual costs of the
                    Department in providing benefits under that program in
                    fiscal years 2004 and 2005.
                        (B) The rate of inflation of health care costs of
                    the Department during fiscal years 2004 and 2005, and a
                    comparison of that rate of inflation with the annual
                    increase in premiums under the TRICARE Reserve Select
                    Program in January 2006.
                        (C) A comparison of the financial and health-care
                    utilization assumptions utilized by the Department in
                    establishing premiums under the TRICARE Reserve Select
                    Program with actual experiences under that program in
                    the first year of the implementation of that program.
                (3) TRICARE reserve select program defined.--In this
            section, the term ``TRICARE Reserve Select Program'' means the
            program carried out under section 1076d of title 10, United
            States Code.

        (c) Use of Independent Experts.--Notwithstanding any other provision
    of law, in conducting the audits required by this section, the
    Comptroller General may engage the services of appropriate independent
    experts, including actuaries.
        (d) Report.--Not later than June 1, 2007, the Comptroller General
    shall submit to the congressional defense committees a

    [[Page 120 STAT. 2290]]

    report on the audits conducted under this section. The report shall
    include--
                (1) the findings of the Comptroller General as a result of
            the audits; and
                (2) such recommendations as the Comptroller General
            considers appropriate in light of such findings to ensure
            maximum efficiency in the administration of the health care
            benefits programs of the Department of Defense.
    SEC. 714. TRANSFER OF CUSTODY OF THE AIR FORCE HEALTH STUDY ASSETS
                            TO MEDICAL FOLLOW-UP AGENCY.

        (a) Transfer.--
                (1) Notification of participants.--The Secretary of the Air
            Force shall notify the participants of the Air Force Health
            Study that the study as currently constituted is ending as of
            September 30, 2006. In consultation with the Medical Follow-up
            Agency (in this section referred to as the ``Agency'') of the
            Institute of Medicine of the National Academy of Sciences, the
            Secretary of the Air Force shall request the written consent of
            the participants to transfer their data and biological specimens
            to the Agency during fiscal year 2007 and written consent for
            the Agency to maintain the data and specimens and make them
            available for additional studies.
                (2) Completion of <<NOTE: Deadline.>> transfer.--
            Custodianship of the Air Force Health Study shall be completely
            transferred to the Agency on or before September 30, 2007.
            Assets to be transferred shall include electronic data files and
            biological specimens of all the study participants.
                (3) Copies to archives.--The Air Force shall send paper
            copies of all study documents to the National Archives.

        (b) Report on Transfer.--
                (1) Requirement.--Not later than 30 days after completion of
            the transfer of the assets of the Air Force Health Study under
            subsection (a), the Secretary of the Air Force shall submit to
            the Committees on Armed Services of the Senate and the House of
            Representatives a report on the transfer.
                (2) Matters covered.--At a minimum, the report shall include
            information on the number of study participants whose data and
            biological specimens were not transferred, the efforts that were
            taken to contact such participants, and the reasons why the
            transfer of their data and specimens did not occur.

        (c) Disposition of Assets Not Transferred.--The Secretary of the Air
    Force may not destroy any data or biological specimens not transferred
    under subsection (a) until the expiration of the one-year period
    following submission of the report under subsection (b).
        (d) Funding.--
                (1) Costs of transfer.--The Secretary of Defense shall make
            available to the Air Force $850,000 for preparation, transfer of
            the assets of the Air Force Health Study, and shipment of data
            and specimens to the Medical Follow-up Agency and the National
            Archives during fiscal year 2007 from amounts available from the
            Department of Defense for that fiscal year. The Secretary of
            Defense is authorized to transfer the freezers and other
            physical assets assigned to the Air Force Health Study to the
            Agency without charge.

    [[Page 120 STAT. 2291]]

                (2) Costs of collaboration.--The Secretary of Defense may
            reimburse the National Academy of Sciences up to $200,000 for
            costs of the Medical Follow-up Agency to collaborate with the
            Air Force in the transfer and receipt of the assets of the Air
            Force Health Study to the Agency during fiscal year 2007 from
            amounts available from the Department of Defense for that fiscal
            year.
    SEC. 715. STUDY ON ALLOWING DEPENDENTS OF ACTIVATED MEMBERS OF
                            RESERVE COMPONENTS TO RETAIN CIVILIAN
                            HEALTH CARE COVERAGE.

        (a) Study Requirement.--The Secretary of Defense shall conduct a
    study on the feasibility of allowing family members of members of the
    reserve components of the Armed Forces who are called or ordered to
    active duty in support of a contingency operation to continue health
    care coverage under a civilian health care program and provide
    reimbursement for such health care.
        (b) Elements.--The study required by subsection (a) shall include
    the following:
                (1) An assessment of the number of military dependents with
            special health care needs (such as ongoing chemotherapy or
            physical therapy) who would benefit from continued coverage
            under the member's civilian health care plan instead of
            enrolling in the TRICARE program.
                (2) An assessment of the feasibility of providing
            reimbursement to the member or the sponsor of the civilian
            health coverage.
                (3) A recommendation on the appropriate rate of
            reimbursement for members or sponsors of civilian health
            coverage.
                (4) The feasibility of including dependents who do not have
            access to health care providers that accept payment under the
            TRICARE program.

        (c) Report Required.--Not later than 180 days after the date of the
    enactment of this Act, the Secretary of Defense shall submit to the
    Committees on Armed Services of the Senate and the House of
    Representatives a report on the study required under subsection (a).
    SEC. 716. STUDY OF HEALTH EFFECTS OF EXPOSURE TO DEPLETED URANIUM.

        (a) Study.--The Secretary of Defense, in consultation with the
    Secretary for Veterans Affairs and the Secretary of Health and Human
    Services, shall conduct a comprehensive study of the health effects of
    exposure to depleted uranium munitions on uranium-exposed soldiers and
    on children of uranium-exposed soldiers who were born after the exposure
    of the uranium-exposed soldiers to depleted uranium.
        (b) Uranium-Exposed Soldiers.--In this section, the term ``uranium-
    exposed soldiers'' means a member or former member of the Armed Forces
    who handled, came in contact with, or had the likelihood of contact with
    depleted uranium munitions while on active duty, including members and
    former members who--
                (1) were exposed to smoke from fires resulting from the
            burning of vehicles containing depleted uranium munitions or
            fires at depots at which depleted uranium munitions were stored;
                (2) worked within environments containing depleted uranium
            dust or residues from depleted uranium munitions;

    [[Page 120 STAT. 2292]]

                (3) were within a structure or vehicle while it was struck
            by a depleted uranium munition;
                (4) climbed on or entered equipment or structures struck by
            a depleted uranium munition; or
                (5) were medical personnel who provided initial treatment to
            members of the Armed Forces described in paragraph (1), (2),
            (3), or (4).

        (c) Report.--Not later than one year after the date of the enactment
    of this Act, the Secretary of Defense shall submit to Congress a report
    on the results of the study described in subsection (a).
    SEC. 717. REPORT AND PLAN ON SERVICES TO MILITARY DEPENDENT
                            CHILDREN WITH AUTISM.

        (a) Plan Required.--The Secretary of Defense shall, within 180 days
    after the date of the enactment of this Act, develop a plan to provide
    services to military dependent children with autism pursuant to the
    authority for an extended health care services program in subsections
    (d) and (e) of section 1079 of title 10, United States Code. Such plan
    shall include--
                (1) requirements for the education, training, and
            supervision of individuals providing services for military
            dependent children with autism;
                (2) standards for identifying and measuring the
            availability, distribution, and training of individuals of
            various levels of expertise to provide such services; and
                (3) procedures to ensure that such services are in addition
            to other publicly provided services to such children.

        (b) Participation of Affected Families.--In developing the plan
    required under subsection (a), the Secretary shall ensure the
    involvement and participation of affected military families or their
    representatives.
        (c) Report Required.--Not later than 30 days after completion of the
    plan required under subsection (a), the Secretary shall submit to the
    Committees on Armed Services of the Senate and the House of
    Representatives a report on the plan. The report may include any
    additional information the Secretary considers relevant.
    SEC. 718. COMPTROLLER GENERAL STUDY ON DEPARTMENT OF DEFENSE
                            PHARMACY BENEFITS PROGRAM.

        (a) In General.--The Comptroller General of the United States shall
    conduct a study of the Department of Defense pharmacy benefits program
    required by section 1074g of title 10, United States Code.
        (b) Elements.--The study required by subsection (a) shall include an
    examination of the following:
                (1) The cost of the Department of Defense pharmacy benefits
            program since the inception of the program.
                (2) The relative costs of various options under the program.
                (3) The copayment structure under the program.
                (4) The effectiveness of the rebate system under the program
            as a way of passing on discounts received by the Federal
            Government in the purchase of pharmaceutical agents.
                (5) The uniform formulary under the program, including the
            success of the formulary in achieving savings anticipated
            through use of the formulary.

    [[Page 120 STAT. 2293]]

                (6) Various alternative means of purchasing pharmaceutical
            agents more efficiently for availability under the program.
                (7) The composition and decision-making processes of the
            Pharmacy and Therapeutics Committee.
                (8) The composition of the Beneficiary Advisory Panel and
            its history as an advisory panel under the program (including
            the frequency of the acceptance of its recommendations by the
            Secretary of Defense).
                (9) Quality assurance mechanisms under the program.
                (10) The role of the program in support of the disease and
            chronic care management programs of the Department of Defense.
                (11) Mechanisms for customer service and customer feedback
            under the program.
                (12) Beneficiary satisfaction with the program.

        (c) Report.--Not later than nine months after the date of the
    enactment of this Act, the Comptroller General shall submit to the
    congressional defense committees a report on the study required by
    subsection (a). The report shall include such recommendations as the
    Comptroller General considers appropriate for legislative or
    administrative action to improve the Department of Defense pharmacy
    benefits program in light of the study.
    SEC. 719. REVIEW OF DEPARTMENT OF DEFENSE MEDICAL QUALITY
                            IMPROVEMENT PROGRAM.

        (a) Report Required.--
                (1) In general.--Not later than 180 days after the date of
            the enactment of this Act, the Secretary of Defense shall submit
            to the Committees on Armed Services of the Senate and the House
            of Representatives a report on actions taken in response to the
            recommendations of the July 2001 report of the Department of
            Defense Healthcare Quality Initiatives Review Panel.
                (2) Matters covered.--The report shall address the status of
            actions concerning each of the Panel's general and specific
            recommendations, including the amount of resources allocated by
            fiscal year to implement each recommendation. In any instance in
            which no action has been taken, justification for such inaction
            shall be provided in the report.

        (b) Review Required.--
                (1) In general.--The <<NOTE: Contracts.>> Secretary of
            Defense shall enter into a contract with the Institute of
            Medicine of the National Academy of Sciences, or another
            similarly qualified independent academic medical organization,
            for the purpose of conducting an independent review of the
            Department of Defense medical quality improvement program.
                (2) Elements.--The review required pursuant to paragraph (1)
            shall include the following:
                        (A) An assessment of the methods used by the
                    Department of Defense to monitor medical quality in
                    services provided in military hospitals and clinics and
                    in services provided in civilian hospitals and providers
                    under the military health care system.
                        (B) An assessment of the transparency and public
                    reporting mechanisms of the Department on medical
                    quality.

    [[Page 120 STAT. 2294]]

                        (C) An assessment of how the Department incorporates
                    medical quality into performance measures for military
                    and civilian health care providers within the military
                    health care system.
                        (D) An assessment of the patient safety programs of
                    the Department.
                        (E) A description of the extent to which the
                    Department seeks to address particular medical errors,
                    and an assessment of the adequacy of such efforts.
                        (F) An assessment of accountability within the
                    military health care system for preventable negative
                    outcomes involving negligence.
                        (G) An assessment of the performance of the health
                    care safety and quality measures of the Department.
                        (H) An assessment of the collaboration of the
                    Department with national initiatives to develop
                    evidence-based quality measures and intervention
                    strategies, especially the initiatives of the Agency for
                    Health Care Research and Quality within the Department
                    of Health and Human Services.
                        (I) A comparison of the methods, mechanisms, and
                    programs and activities referred to in subparagraphs (A)
                    through (G) with similar methods, mechanisms, programs,
                    and activities used in other public and private health
                    care systems and organizations.
                (3) Report.--
                        (A) In general.--Not later than one year after the
                    date of the enactment of this Act, the Secretary shall
                    submit to the Committees on Armed Services of the Senate
                    and the House of Representatives a report on the review
                    required pursuant to paragraph (1).
                        (B) Elements.--The report required by subparagraph
                    (A) shall include the following:
                              (i) The results of the review required
                          pursuant to paragraph (1).
                              (ii) A discussion of recent highlights in the
                          accomplishments of the Department of Defense
                          medical quality assurance program.
                              (iii) Such recommendations for legislative or
                          administrative action as the Secretary considers
                          appropriate for the improvement of the program.
    SEC. 720. REPORT ON DISTRIBUTION OF HEMOSTATIC AGENTS FOR USE IN
                            THE FIELD.

        Not later than 60 days after the date of the enactment of this Act,
    the Secretary of Defense shall submit to the congressional defense
    committees a report on the distribution of hemostatic agents to members
    of the Armed Forces serving in Iraq and Afghanistan, including a
    description of any distribution problems and attempts to resolve such
    problems.
    SEC. 721. LONGITUDINAL STUDY ON TRAUMATIC BRAIN INJURY INCURRED BY
                            MEMBERS OF THE ARMED FORCES IN OPERATION
                            IRAQI FREEDOM AND OPERATION ENDURING
                            FREEDOM.

        (a) Study Required.--The Secretary of Defense shall conduct a
    longitudinal study on the effects of traumatic brain injury incurred by
    members of the Armed Forces serving in Operation Iraqi

    [[Page 120 STAT. 2295]]

    Freedom or Operation Enduring Freedom on the members who incur such an
    injury and their families.
        (b) Duration.--The study required by subsection (a) shall be
    conducted for a period of 15 years.
        (c) Elements.--The study required by subsection (a) shall
    specifically address the following:
                (1) The long-term physical and mental health effects of
            traumatic brain injuries incurred by members of the Armed Forces
            during service in Operation Iraqi Freedom or Operation Enduring
            Freedom.
                (2) The health care, mental health care, and rehabilitation
            needs of such members for such injuries after the completion of
            inpatient treatment through the Department of Defense, the
            Department of Veterans Affairs, or both.
                (3) The type and availability of long-term care
            rehabilitation programs and services within and outside the
            Department of Defense and the Department of Veterans Affairs for
            such members for such injuries, including community-based
            programs and services and in-home programs and services.
                (4) The effect on family members of a member incurring such
            an injury.

        (d) Consultation.--The Secretary of Defense shall conduct the study
    required by subsection (a) and prepare the reports required by
    subsection (e) in consultation with the Secretary of Veterans Affairs.
        (e) Periodic and Final Reports.--After the third, seventh, eleventh,
    and fifteenth years of the study required by subsection (a), the
    Secretary of Defense shall submit to Congress a comprehensive report on
    the results of the study during the preceding years. Each report shall
    include the following:
                (1) Current information on the cumulative outcomes of the
            study.
                (2) Such recommendations as the Secretary of Defense and the
            Secretary of Veterans Affairs jointly consider appropriate based
            on the outcomes of the study, including recommendations for
            legislative, programmatic, or administrative action to improve
            long-term care and rehabilitation programs and services for
            members of the Armed Forces with traumatic brain injuries.

                Subtitle C--Planning, Programming, and Management

    SEC. 731. STANDARDIZATION OF CLAIMS PROCESSING UNDER TRICARE
                            PROGRAM AND MEDICARE PROGRAM.

        (a) In General.--Effective beginning with the next contract option
    period for managed care support contracts under the TRICARE program, the
    claims processing requirements under the TRICARE program on the matters
    described in subsection (b) shall be identical to the claims processing
    requirements under the Medicare program on such matters.
        (b) Covered Matters.--The matters described in this subsection are
    as follows:
                (1) The utilization of single or multiple provider
            identification numbers for purposes of the payment of health
            care claims by Department of Defense contractors.

    [[Page 120 STAT. 2296]]

                (2) The documentation required to substantiate medical
            necessity for items and services that are covered under both the
            TRICARE program and the Medicare program.

        (c) Report on Collection of Amounts Owed.--Not later than March 1,
    2007, the Secretary of Defense shall submit to the congressional defense
    committees a report setting forth a detailed description of the
    following:
                (1) All TRICARE policies and directives concerning
            collection of amounts owed to the United States pursuant to
            section 1095 of title 10, United States Code, from third party
            payers, including--
                        (A) collection by military treatment facilities from
                    third-party payers; and
                        (B) collection by contractors providing managed care
                    support under the TRICARE program from other insurers in
                    cases of private insurance liability for health care
                    costs of a TRICARE beneficiary.
                (2) An estimate of the outstanding amounts owed from third
            party payers in each of fiscal years 2002, 2003, and 2004.
                (3) The amounts collected from third party payers in each of
            fiscal years 2002, 2003, and 2004.
                (4) A plan of action to streamline the business practices
            that underlie the policies and directives described in paragraph
            (1).
                (5) A plan of action to accelerate and increase the
            collections or recoupments of amounts owed from third party
            payers.

        (d) Annual Reports on Claims Processing Standardization.--
                (1) In general.--Not later than October 1, 2007, and
            annually thereafter, the Secretary of Defense shall submit to
            the congressional defense committees a report setting forth a
            complete list of the claims processing requirements under the
            TRICARE program that differ from claims processing requirements
            under the Medicare program.
                (2) Elements.--Each report under paragraph (1) shall
            include, for each claims processing requirement listed in such
            report, a business case that justifies maintaining such
            requirement under the TRICARE program as a different claims
            processing requirement than that required under the Medicare
            program.

        (e) Definitions.--In this section:
                (1) The term ``Medicare program'' means the program under
            title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.).
                (2) The term ``TRICARE program'' has the meaning given that
            term in section 1072(7) of title 10, United States Code.
    SEC. 732. REQUIREMENTS FOR SUPPORT OF MILITARY TREATMENT
                            FACILITIES BY CIVILIAN CONTRACTORS UNDER
                            TRICARE.

        (a) Annual Integrated Regional Requirements on Support.--The
    Regional Director of each region under the TRICARE program shall develop
    each year integrated, comprehensive requirements for the support of
    military treatment facilities in such region that is provided by
    contract civilian health care and administrative personnel under the
    TRICARE program.
        (b) Purposes.--The purposes of the requirements established under
    subsection (a) shall be as follows:

    [[Page 120 STAT. 2297]]

                (1) To ensure consistent standards of quality in the support
            of military treatment facilities by contract civilian health
            care personnel under the TRICARE program.
                (2) To identify targeted, actionable opportunities
            throughout each region of the TRICARE program for the most
            efficient and cost effective delivery of health care and support
            of military treatment facilities.
                (3) To ensure the most effective use of various available
            contracting methods in securing support of military treatment
            facilities by civilian health care personnel under the TRICARE
            program, including resource-sharing and clinical support
            agreements, direct contracting, and venture capital investments.

        (c) Facilitation and Enhancement of Contractor Support.--
                (1) In general.--The Secretary of Defense shall take
            appropriate actions to facilitate and enhance the support of
            military treatment facilities under the TRICARE program in order
            to assure maximum quality and productivity.
                (2) Actions.--In taking actions under paragraph (1), the
            Secretary shall--
                        (A) require consistent standards of quality for
                    contract civilian health care personnel providing
                    support of military treatment facilities under the
                    TRICARE program, including--
                              (i) consistent credentialing requirements
                          among military treatment facilities;
                              (ii) consistent performance standards for
                          private sector companies providing health care
                          staffing services to military treatment facilities
                          and clinics, including, at a minimum, those
                          standards established for accreditation of health
                          care staffing firms by the Joint Commission on the
                          Accreditation of Health Care Organizations Health
                          Care Staffing Standards; and
                              (iii) additional standards covering--
                                        (I) financial stability;
                                        (II) medical management;
                                        (III) continuity of operations;
                                        (IV) training;
                                        (V) employee retention;
                                        (VI) access to contractor data; and
                                        (VII) fraud prevention;
                        (B) ensure the availability of adequate and
                    sustainable funding support for projects which produce a
                    return on investment to the military treatment
                    facilities;
                        (C) ensure that a portion of any return on
                    investment is returned to the military treatment
                    facility to which such savings are attributable;
                        (D) remove financial disincentives for military
                    treatment facilities and civilian contractors to
                    initiate and sustain agreements for the support of
                    military treatment facilities by such contractors under
                    the TRICARE program;
                        (E) provide for a consistent methodology across all
                    regions of the TRICARE program for developing cost
                    benefit analyses of agreements for the support of
                    military treatment facilities by civilian contractors
                    under the TRICARE program based on actual cost and
                    utilization data within each region of the TRICARE
                    program; and

    [[Page 120 STAT. 2298]]

                        (F) provide for a system for monitoring the
                    performance of significant projects for support of
                    military treatment facilities by a civilian contractor
                    under the TRICARE program.

        (d) Reports to Congress.--
                (1) Annual reports required.--Not later than February 1,
            2008, and each year thereafter, the Secretary, in coordination
            with the military departments, shall submit to the Committees on
            Armed Services of the Senate and the House of Representatives a
            report on the support of military treatment facilities by
            civilian contractors under the TRICARE program during the
            preceding fiscal year.
                (2) Elements.--Each report shall set forth, for the fiscal
            year covered by such report, the following:
                        (A) The level of support of military health
                    treatment facilities that is provided by contract
                    civilian health care personnel under the TRICARE program
                    in each region of the TRICARE program.
                        (B) An assessment of the compliance of such support
                    with regional requirements under subsection (a).
                        (C) The number and type of agreements for the
                    support of military treatment facilities by contract
                    civilian health care personnel.
                        (D) The standards of quality in effect under the
                    requirements under subsection (a).
                        (E) The savings anticipated, and any savings
                    achieved, as a result of the implementation of the
                    requirements under subsection (a).
                        (F) An assessment of the compliance of contracts for
                    health care staffing services for Department of Defense
                    facilities with the requirements of subsection
                    (c)(2)(A).

        (e) Effective Date.--This section shall take effect on October 1,
    2006.
    SEC. 733. STANDARDS AND TRACKING OF ACCESS TO HEALTH CARE SERVICES
                            FOR WOUNDED, INJURED, OR ILL
                            SERVICEMEMBERS RETURNING TO THE UNITED
                            STATES FROM A COMBAT ZONE.

        (a) Report on Uniform Standards for Access.--Not later than 90 days
    after the date of the enactment of this Act, the Secretary of Defense
    shall submit to the Committees on Armed Services of the Senate and the
    House of Representatives a report on uniform standards for the access of
    wounded, injured, or ill members of the Armed Forces to health care
    services in the United States following return from a combat zone.
        (b) Matters Covered.--The report required by subsection (a) shall
    describe in detail policies with respect to the following:
                (1) The access of wounded, injured, or ill members of the
            Armed Forces to emergency care.
                (2) The access of such members to surgical services.
                (3) Waiting times for referrals and consultations of such
            members by medical personnel, dental personnel, mental health
            specialists, and rehabilitative service specialists, including
            personnel and specialists with expertise in prosthetics and in
            the treatment of head, vision, and spinal cord injuries.
                (4) Waiting times of such members for acute care and for
            routine follow-up care.

    [[Page 120 STAT. 2299]]

        (c) Referral to Providers Outside Military Health Care System.--The
    Secretary shall require that health care services and rehabilitation
    needs of members described in subsection (a) be met through whatever
    means or mechanisms possible, including through the referral of members
    described in that subsection to health care providers outside the
    military health care system.
        (d) Uniform System for Tracking of Performance.--The Secretary shall
    establish a uniform system for tracking the performance of the military
    health care system in meeting the requirements for access of wounded,
    injured, or ill members of the Armed Forces to health care services
    described in subsection (a).
        (e) Reports.--
                (1) Tracking system.--Not later than 180 days after the date
            of the enactment of this Act, the Secretary shall submit to the
            Committees on Armed Services of the Senate and the House of
            Representatives a report on the system established under
            subsection (d).
                (2) Access.--Not later than October 1, 2006, and each
            quarter thereafter during fiscal year 2007, the Secretary shall
            submit to such committees a report on the performance of the
            health care system in meeting the access standards described in
            the report required by subsection (a).
    SEC. 734. DISEASE AND CHRONIC CARE MANAGEMENT.

        (a) Program Design and Development <<NOTE: Deadline.>> Required.--
    Not later than October 1, 2007, the Secretary of Defense shall design
    and develop a fully integrated program on disease and chronic care
    management for the military health care system that provides, to the
    extent practicable, uniform policies and practices on disease management
    and chronic care management throughout that system, including both
    military hospitals and clinics and civilian healthcare providers within
    the TRICARE network.

        (b) Purposes of Program.--The purposes of the program required by
    subsection (a) are as follows:
                (1) To facilitate the improvement of the health status of
            individuals under care in the military health care system.
                (2) To ensure the availability of effective health care
            services in that system for individuals with diseases and other
            chronic conditions.
                (3) To ensure the proper allocation of health care resources
            for individuals who need care for disease or other chronic
            conditions.

        (c) Elements of Program Design.--The program design required by
    subsection (a) shall meet the following requirements:
                (1) Based on uniform policies prescribed by the Secretary,
            the program shall, at a minimum, address the following chronic
            diseases and conditions:
                        (A) Diabetes.
                        (B) Cancer.
                        (C) Heart disease.
                        (D) Asthma.
                        (E) Chronic obstructive pulmonary disorder.
                        (F) Depression and anxiety disorders.
                (2) The program shall meet nationally recognized
            accreditation standards for disease and chronic care management.
                (3) The program shall include specific outcome measures and
            objectives on disease and chronic care management.

    [[Page 120 STAT. 2300]]

                (4) The program shall include strategies for disease and
            chronic care management for all beneficiaries, including
            beneficiaries eligible for benefits under the Medicare program
            under title XVIII of the Social Security Act (42 U.S.C. 1395 et
            seq.), for whom the TRICARE program is not the primary payer for
            health care benefits.
                (5) Activities under the program shall conform to applicable
            laws and regulations relating to the confidentiality of health
            care information.

        (d) Implementation Plan Required.--Not later than February 1, 2008,
    the Secretary of Defense, in coordination with the Secretaries of the
    military departments, shall develop an implementation plan for the
    disease and chronic care management program. In order to facilitate the
    carrying out of the program, the plan developed by the Secretary shall--
                (1) require a comprehensive analysis of the disease and
            chronic care management opportunities within each region of the
            TRICARE program, including within military treatment facilities
            and through contractors under the TRICARE program;
                (2) ensure continuous, adequate funding of disease and
            chronic care management activities throughout the military
            health care system in order to achieve maximum health outcomes
            and cost avoidance;
                (3) eliminate, to the extent practicable, any financial
            disincentives to sustained investment by military hospitals and
            health care services contractors of the Department of Defense in
            the disease and chronic care management activities of the
            Department;
                (4) ensure that appropriate clinical and claims data,
            including pharmacy utilization data, is available for use in
            implementing the program;
                (5) ensure outreach to eligible beneficiaries who, on the
            basis of their clinical conditions, are candidates for the
            program utilizing print and electronic media, telephone, and
            personal interaction; and
                (6) provide a system for monitoring improvements in health
            status and clinical outcomes under the program and savings
            associated with the program.

        (e) Report.--
                (1) In general.--Not later than March 1, 2008, the Secretary
            of Defense shall submit to the Committees on Armed Services of
            the Senate and the House of Representatives a report on the
            design, development, and implementation of the program on
            disease and chronic care management required by this section.
                (2) Report elements.--The report required by paragraph (1)
            shall include the following:
                        (A) A description of the design and development of
                    the program required by subsection (a).
                        (B) A description of the implementation plan
                    required by subsection (d).
                        (C) A description and assessment of improvements in
                    health status and clinical outcomes that are anticipated
                    as a result of implementation of the program.
                        (D) A description of the savings and return on
                    investment associated with the program.

    [[Page 120 STAT. 2301]]

                        (E) A description of an investment strategy to
                    assure the sustainment of the disease and chronic care
                    management programs of the Department of Defense.
    SEC. 735. ADDITIONAL ELEMENTS OF ASSESSMENT OF DEPARTMENT OF
                            DEFENSE TASK FORCE ON MENTAL HEALTH
                            RELATING TO MENTAL HEALTH OF MEMBERS WHO
                            WERE DEPLOYED IN OPERATION IRAQI FREEDOM
                            AND OPERATION ENDURING FREEDOM.

        Section 723(c) of the National Defense Authorization Act for Fiscal
    Year 2006 (Public Law 109-163; 119 Stat. 3348) is amended by adding at
    the end the following new paragraph:
                ``(4) Mental health needs of members who were deployed in
            oif or oef.--As part of the assessment required by paragraph (1)
            of the efficacy of mental health services provided to members of
            the Armed Forces by the Department of Defense, the task force
            shall consider the specific needs with respect to mental health
            of members who were deployed in Operation Iraqi Freedom or
            Operation Enduring Freedom upon their return from such
            deployment, including the following:
                        ``(A) An identification of mental health conditions
                    and disorders (including Post Traumatic Stress Disorder,
                    suicide attempts, and suicide) occurring among members
                    who have undergone multiple deployments in Operation
                    Iraqi Freedom or Operation Enduring Freedom.
                        ``(B) An evaluation of the availability to members
                    of assessments under the Mental Health Self-Assessment
                    Program of the Department of Defense to ensure the long-
                    term availability of the diagnostic mechanisms of the
                    assessment to detect mental health conditions that may
                    emerge in such members over time.
                        ``(C) The availability of programs and services
                    under the Mental Health Self-Assessment Program to
                    address the mental health of dependent children of
                    members who were deployed in Operation Iraqi Freedom or
                    Operation Enduring Freedom.
                        ``(D) Recommendations on mechanisms for improving
                    the mental health services available to members who were
                    deployed in Operation Iraqi Freedom or Operation
                    Enduring Freedom, including members who have undergone
                    multiple deployments.''.
    SEC. 736. ADDITIONAL AUTHORIZED OPTION PERIODS FOR EXTENSION OF
                            CURRENT CONTRACTS UNDER TRICARE.

        (a) Additional Number of Authorized Periods.--
                (1) In general.--The Secretary of Defense, after consulting
            with the other administering Secretaries, may extend any
            contract for the delivery of health care entered into under
            section 1097 of title 10, United States Code, that is in force
            on the date of the enactment of this Act by one year, and upon
            expiration of such extension by one additional year, if the
            Secretary determines that such extension--
                        (A) is in the best interests of the Department of
                    Defense and covered beneficiaries;
                        (B) is cost effective; and
                        (C) will--

    [[Page 120 STAT. 2302]]

                              (i) facilitate the effective administration of
                          the TRICARE program; or
                              (ii) ensure continuity in the delivery of
                          health care under the TRICARE program.
                (2) Limitation on number of extensions.--The total number of
            one-year extensions of a contract that may be granted under
            paragraph (1) may not exceed two extensions.
                (3) Notice and wait.--The Secretary may not commence the
            exercise of the authority in paragraph (1) with respect to a
            contract covered by that paragraph until 30 days after the date
            on which the Secretary submits to the Committees on Armed
            Services of the Senate and House of Representatives a report
            setting forth the following:
                        (A) The minimum level of performance, including
                    beneficiary satisfaction and cost, by the incumbent
                    contractor under the contract that will be required by
                    the Secretary in order to be eligible for an extension
                    authorized by such paragraph.
                        (B) The justification for such extension based on
                    each of the criteria in paragraph (1).
                        (C) The justification for such extension based on a
                    cost-benefit analysis.
                (4) Definitions.--In this subsection, the terms
            ``administering Secretaries'', ``covered beneficiary'', and
            ``TRICARE program'' have the meaning given such terms in section
            1072 of title 10, United States Code.

        (b) Report on Contracting Mechanisms for Health Care Service Support
    Contracts.--Not later than 180 days after the date of the enactment of
    this Act, the Secretary shall submit to the Committees on Armed Services
    of the Senate and House of Representatives a report on contracting
    mechanisms under consideration for future contracts for health care
    service support under section 1097 of title 10, United States Code. The
    report shall include an assessment of the advantages and disadvantages
    for the Department of Defense (including the potential for stimulating
    competition and the effect on health care beneficiaries of the
    Department) of providing in such contracts for a single term of 5 years,
    with a single optional period of extension of an additional 5 years if
    performance under such contract is rated as ``excellent''.
    SEC. 737. MILITARY VACCINATION MATTERS.

        (a) Additional Element for Comptroller General Study and Report on
    Vaccine Healthcare Centers.--Section 736(b) of the National Defense
    Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat.
    3356) is amended by adding at the end the following new paragraph:
                ``(10) The feasibility and advisability of transferring
            direct responsibility for the Centers from the Army Medical
            Command to the Under Secretary of Defense for Personnel and
            Readiness and the Deputy Assistant Secretary of Defense for
            Force Health Protection and Readiness.''.

        (b) Limitation on Restructuring of Vaccine Healthcare Centers.--The
    Secretary of Defense may not downsize or otherwise restructure the
    Vaccine Healthcare Centers of the Department of Defense during fiscal
    year 2007. The Secretary shall ensure that the Secretary of each
    military department shall, from amounts allocated during fiscal year
    2007 from the Defense Health Program,

    [[Page 120 STAT. 2303]]

    fund and maintain the Vaccine Healthcare Center of the military
    department concerned.
    SEC. 738. ENHANCED MENTAL HEALTH SCREENING AND SERVICES FOR
                            MEMBERS OF THE ARMED FORCES.

        (a) Additional Required Elements for Predeployment and
    Postdeployment Medical Examinations.--Subsection (b) of section 1074f of
    title 10, United States Code, is amended--
                (1) by inserting ``(1)'' before ``The system''; and
                (2) by adding at the end the following new paragraph:

        ``(2) The predeployment and postdeployment medical examination of a
    member of the armed forces required under paragraph (1) shall include
    the following:
                ``(A) An assessment of the current treatment of the member
            and any use of psychotropic medications by the member for a
            mental health condition or disorder.
                ``(B) An assessment of traumatic brain injury.''.

        (b) Criteria for Referral for Further Evaluations.--Such section is
    further amended by adding at the end the following:
        ``(e) Criteria for Referral for Further Evaluations.--The system
    described in subsection (a) shall include--
                ``(1) development of clinical practice guidelines to be
            utilized by healthcare providers in determining whether to refer
            a member of the armed forces for further evaluation relating to
            mental health (including traumatic brain injury);
                ``(2) mechanisms to ensure that healthcare providers are
            trained in the application of such clinical practice guidelines;
            and
                ``(3) mechanisms for oversight to ensure that healthcare
            providers apply such guidelines consistently.''.

        (c) Minimum Mental Health Standards for Deployment.--Such section is
    further amended by adding at the end the following:
        ``(f) Minimum Mental Health Standards for Deployment.--
    (1) <<NOTE: Regulations.>> The Secretary of Defense shall prescribe in
    regulations minimum standards for mental health for the eligibility of a
    member of the armed forces for deployment to a combat operation or
    contingency operation.

        ``(2) The standards required by paragraph (1) shall include the
    following:
                ``(A) A specification of the mental health conditions,
            treatment for such conditions, and receipt of psychotropic
            medications for such conditions that preclude deployment of a
            member of the armed forces to a combat operation or contingency
            operation, or to a specified type of such operation.
                ``(B) Guidelines for the deployability and treatment of
            members of the armed forces diagnosed with a severe mental
            illness or post traumatic stress disorder.

        ``(3) The Secretary shall take appropriate actions to ensure the
    utilization of the standards prescribed under paragraph (1) in the
    making of determinations regarding the deployability of members of the
    armed forces to a combat operation or continency operation.''.
        (d) Quality Assurance.--Subsection (d) of such section is amended--
                (1) by inserting ``(1)'' before ``The Secretary of
            Defense''; and
                (2) by adding at the end the following new paragraphs:

    [[Page 120 STAT. 2304]]

        ``(2) The quality assurance program established under paragraph (1)
    shall also include the following elements:
                ``(A) The types of healthcare providers conducting
            postdeployment health assessments.
                ``(B) The training received by such providers applicable to
            the conduct of such assessments, including training on
            assessments and referrals relating to mental health.
                ``(C) The guidance available to such providers on how to
            apply the clinical practice guidelines developed under
            subsection (e)(1) in determining whether to make a referral for
            further evaluation of a member of the armed forces relating to
            mental health.
                ``(D) The effectiveness of the tracking mechanisms required
            under this section in ensuring that members who receive
            referrals for further evaluations relating to mental health
            receive such evaluations and obtain such care and services as
            are warranted.
                ``(E) Programs established for monitoring the mental health
            of each member who, after deployment to a combat operation or
            contingency operations, is known--
                        ``(i) to have a mental health condition or disorder;
                    or
                        ``(ii) to be receiving treatment, including
                    psychotropic medications, for a mental health condition
                    or disorder.''.

        (e) Comptroller General Reports on Implementation of Requirements.--
                (1) Study on implementation.--The Comptroller General of the
            United States shall carry out a study of the implementation of
            the requirements of the amendments made by this section.
                (2) Reports.--Not later than March 1, 2008, the Comptroller
            General shall submit to the Committees on Armed Services of the
            Senate and the House of Representatives a report on the study
            carried out under paragraph (1).

        (f) Implementation.--The <<NOTE: Deadline.>> Secretary of Defense
    shall implement the requirements of the amendments made by this section
    not later than six months after the date of the enactment of this Act.

        (g) Report Required.--The Secretary of Defense shall submit to the
    Committees on Armed Services of the Senate and the House of
    Representatives a report on the actions taken to implement the
    requirements of the amendments made by this section not later than June
    1, 2007.

                            Subtitle D--Other Matters

    SEC. 741. PILOT PROJECTS ON EARLY DIAGNOSIS AND TREATMENT OF POST
                            TRAUMATIC STRESS DISORDER AND OTHER MENTAL
                            HEALTH CONDITIONS.

        (a) Pilot Projects Required.--The Secretary of Defense shall carry
    out not less than three pilot projects to evaluate the efficacy of
    various approaches to improving the capability of the military and
    civilian health care systems to provide early diagnosis and treatment of
    post traumatic stress disorder and other mental health conditions.

    [[Page 120 STAT. 2305]]

        (b) Duration.--Any <<NOTE: Deadlines.>> pilot project carried out
    under this section shall begin not later than October 1, 2007, and cease
    on September 30, 2008.

        (c) Pilot Project Requirements.--
                (1) Diagnostic and treatment approaches.--One of the pilot
            projects under this section shall be designed to evaluate
            effective diagnostic and treatment approaches for use by primary
            care providers in the military health care system in order to
            improve the capability of such providers to diagnose and treat
            post traumatic stress disorder.
                (2) National guard or reserve members.--
                        (A) One of the pilot projects under this section
                    shall be focused on members of the National Guard or
                    Reserves who are located more than 40 miles from a
                    military medical facility and who are served primarily
                    by civilian community health resources.
                        (B) The pilot project described in subparagraph (A)
                    shall be designed to develop educational materials and
                    other tools for use by members of the National Guard or
                    Reserves who come into contact with other members of the
                    National Guard or Reserves who may suffer from post
                    traumatic stress disorder in order to encourage and
                    facilitate early reporting and referral for treatment.
                (3) Outreach.--One of the pilot projects under this section
            shall be designed to provide outreach to the family members of
            the members of the Armed Forces on post traumatic stress
            disorder and other mental health conditions.

        (d) Evaluation of Pilot Projects.--The Secretary shall evaluate each
    pilot project carried out under this section in order to assess the
    effectiveness of the approaches taken under such pilot project--
                (1) to improve the capability of the military and civilian
            health care systems to provide early diagnosis and treatment of
            post traumatic stress disorder and other mental health
            conditions among members of the regular components of the Armed
            Forces, and among members of the National Guard and Reserves,
            who have returned from deployment; and
                (2) to provide outreach to the family members of the members
            of the Armed Forces described in paragraph (1) on post traumatic
            stress disorder and other mental health conditions among such
            members of the Armed Forces.

        (e) Report to Congress.--
                (1) Report required.--Not later than December 31, 2008, the
            Secretary shall submit to the congressional defense committees a
            report on the pilot projects carried out under this section.
                (2) Elements.--The report required by paragraph (1) shall
            include the following:
                        (A) A description of each pilot project carried out
                    under this section.
                        (B) An assessment of the effectiveness of the
                    approaches taken under each pilot project to improve the
                    capability of the military and civilian health care
                    systems to provide early diagnosis and treatment of post
                    traumatic stress disorder and other mental health
                    conditions among members of the Armed Forces.

    [[Page 120 STAT. 2306]]

                        (C) Any recommendations for legislative or
                    administrative action that the Secretary considers
                    appropriate in light of the pilot projects, including
                    recommendations on--
                              (i) the training of health care providers in
                          the military and civilian health care systems on
                          early diagnosis and treatment of post traumatic
                          stress disorder and other mental health
                          conditions; and
                              (ii) the provision of outreach on post
                          traumatic stress disorder and other mental health
                          conditions to members of the National Guard and
                          Reserves who have returned from deployment.
                        (D) A plan, in light of the pilot projects, for the
                    improvement of the health care services provided to
                    members of the Armed Forces in order to better assure
                    the early diagnosis and treatment of post traumatic
                    stress disorder and other mental health conditions among
                    members of the Armed Forces, including a specific plan
                    for outreach on post traumatic stress disorder and other
                    mental health conditions to members of the National
                    Guard and Reserves who have returned from deployment in
                    order to facilitate and enhance the early diagnosis and
                    treatment of post traumatic stress disorder and other
                    mental health conditions among such members of the
                    National Guard and Reserves.
    SEC. 742. REQUIREMENT TO CERTIFY AND REPORT ON CONVERSION OF
                            MILITARY MEDICAL AND DENTAL POSITIONS TO
                            CIVILIAN MEDICAL AND DENTAL POSITIONS.

        (a) Prohibition on Conversions.--
                (1) Submission of certification.--The Secretary of a
            military department may not convert any military medical or
            dental position to a civilian medical or dental position in a
            fiscal year until the Secretary submits to the congressional
            defense committees with respect to that fiscal year a
            certification that the conversions within that department will
            not increase cost or decrease quality of care or access to care.
                (2) Report on certification.--Each certification under
            paragraph (1) shall include a written report setting forth the
            following:
                        (A) The methodology used by the Secretary in making
                    the determinations necessary for the certification.
                        (B) The number of military medical or dental
                    positions, by grade or band and specialty, planned for
                    conversion to civilian medical or dental positions.
                        (C) The results of a market survey in each affected
                    area of the availability of civilian medical and dental
                    care providers in such area in order to determine
                    whether the civilian medical and dental care providers
                    available in such area are adequate to fill the civilian
                    positions created by the conversion of military medical
                    and dental positions to civilian positions in such area.
                        (D) An analysis, by affected area, showing the
                    extent to which access to health care and cost of health
                    care will be affected in both the direct care and
                    purchased care systems, including an assessment of the
                    effect of any increased shifts in patient load from the
                    direct care to the purchased care system, or any delays
                    in receipt of

    [[Page 120 STAT. 2307]]

                    care in either the direct or purchased care system
                    because of the planned conversions.
                        (E) The extent to which military medical and dental
                    positions planned for conversion to civilian medical or
                    dental positions will affect recruiting and retention of
                    uniformed medical and dental personnel.
                        (F) A comparison of the full costs for the military
                    medical and dental positions planned for conversion with
                    the estimated full costs for civilian medical and dental
                    positions, including expenses such as recruiting,
                    salary, benefits, training, and any other costs the
                    Department identifies.
                        (G) An assessment showing that the military medical
                    or dental positions planned for conversion are in excess
                    of the military medical and dental positions needed to
                    meet medical and dental readiness requirements of the
                    uniformed services, as determined jointly by all the
                    uniformed services.
                        (H) An identification of each medical and dental
                    position scheduled to be converted to a civilian
                    position in the subsequent fiscal year, including the
                    location of each position scheduled for conversion, the
                    estimated cost of such conversion, and whether or not
                    civilian personnel are available in the location for
                    filling a converted military medical or dental position.
                (3) Submission deadline.--A certification and report with
            respect to any fiscal year after fiscal year 2007 shall be
            submitted at the same time the budget of the President for such
            fiscal year is submitted to Congress pursuant to section 1105(a)
            of title 31, United States Code.

        (b) Requirement for <<NOTE: Deadline.>> Comptroller General
    Review.--Not later than 120 days after the submission of the budget of
    the President for a fiscal year, the Comptroller General shall submit to
    the congressional defense committees a report on any certifications and
    reports submitted with respect to that fiscal year under subsection (a).

        (c) Requirement to Resubmit Certification and Report Required by
    Public Law 109-163.--The Secretary of each military department shall
    resubmit the certification and report required by section 744(a) of the
    National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-
    163; 119 Stat. 3360; 10 U.S.C. 129c note). Such resubmissions shall
    address in their entirety the elements required by section 744(a)(2) of
    such Act.
        (d) Special Requirements for Fiscal Year 2007 Certification.--
                (1) List of 2007 planned conversions.--The report required
            by paragraph (2) of subsection (a) with respect to fiscal year
            2007 shall contain, in addition to the elements required by that
            paragraph, a list of each military medical or dental position
            scheduled to be converted to a civilian medical or dental
            position in fiscal year 2007.
                (2) Resubmission required first.--The certification and
            report required by subsection (a) with respect to fiscal year
            2007 may not be submitted prior to the resubmission required by
            subsection (c).
                (3) Prohibition on conversions during fiscal year 2007.--No
            conversions of a military medical or dental position

    [[Page 120 STAT. 2308]]

            may occur during fiscal year 2007 prior to both the resubmission
            required by subsection (c) and the submission of the
            certification and report required by subsection (a).

        (e) Report on Fiscal Year 2008 Conversion.--Not later than 90 days
    after the date of the enactment of this Act, the Secretary of Defense
    shall submit to the Committees on Armed Services of the Senate and House
    of Representatives a report that identifies the military medical or
    dental positions scheduled to be converted to civilian medical or dental
    positions in fiscal year 2008. Such report shall include the location of
    the positions scheduled for conversion, the estimated cost of such
    conversion, and whether or not civilian personnel are available in the
    location for filling the proposed converted military medical or dental
    position.
        (f) Definitions.--In this section:
                (1) The term ``military medical or dental position'' means a
            position for the performance of health care functions within the
            Armed Forces held by a member of the Armed Forces.
                (2) The term ``civilian medical or dental position'' means a
            position for the performance of health care functions within the
            Department of Defense held by an employee of the Department or
            of a contractor of the Department.
                (3) The term ``affected area'' means an area in which
            military medical or dental positions were converted to civilian
            medical or dental positions before October 1, 2004, or in which
            such conversions are scheduled to occur in the future.
                (4) The term ``uniformed services'' has the meaning given
            that term in section 1072(1) of title 10, United States Code.
                (5) The term ``conversion'', with respect to a military
            medical or dental position, means a change, effective as of the
            date of the documentation by the Department of Defense making
            the change, of the position to a civilian medical or dental
            position.
    SEC. 743. THREE-YEAR EXTENSION OF JOINT INCENTIVES PROGRAM ON
                            SHARING OF HEALTH CARE RESOURCES BY THE
                            DEPARTMENT OF DEFENSE AND DEPARTMENT OF
                            VETERANS AFFAIRS.

        Section 8111(d)(3) of title 38, United States Code, is amended by
    striking ``September 30, 2007'' and inserting ``September 30, 2010''.
    SEC. 744. TRAINING CURRICULA FOR FAMILY CAREGIVERS ON CARE AND
                            ASSISTANCE FOR MEMBERS AND FORMER MEMBERS
                            OF THE ARMED FORCES WITH TRAUMATIC BRAIN
                            INJURY.

        (a) Traumatic Brain Injury Family Caregiver Panel.--
                (1) Establishment.--The Secretary of Defense shall establish
            a panel within the Department of Defense, to be known as the
            ``Traumatic Brain Injury Family Caregiver Panel'', to develop
            coordinated, uniform, and consistent training curricula to be
            used in training family members in the provision of care and
            assistance to members and former members of the Armed Forces
            with traumatic brain injuries.
                (2) Members.--The Traumatic Brain Injury Family Caregiver
            Panel shall consist of 15 members appointed by the Secretary of
            Defense from among the following:
                        (A) Physicians, nurses, rehabilitation therapists,
                    and other individuals with an expertise in caring for
                    and assisting individuals with traumatic brain injury,
                    including

    [[Page 120 STAT. 2309]]

                    persons who specialize in caring for and assisting
                    individuals with traumatic brain injury incurred in
                    combat.
                        (B) Representatives of family caregivers or family
                    caregiver associations.
                        (C) Health and medical personnel of the Department
                    of Defense and the Department of Veterans Affairs with
                    expertise in traumatic brain injury and personnel and
                    readiness representatives of the Department of Defense
                    with expertise in traumatic brain injury.
                        (D) Psychologists or other individuals with
                    expertise in the mental health treatment and care of
                    individuals with traumatic brain injury.
                        (E) Experts in the development of training
                    curricula.
                        (F) Family members of members of the Armed Forces
                    with traumatic brain injury.
                        (G) Such other individuals the Secretary considers
                    appropriate.
                (3) Consultation.--In establishing the Traumatic Brain
            Injury Family Caregiver Panel and appointing the members of the
            Panel, the Secretary of Defense shall consult with the Secretary
            of Veterans Affairs.

        (b) Development of Curricula.--
                (1) Development.--The Traumatic Brain Injury Family
            Caregiver Panel shall develop training curricula to be used by
            family members of members and former members of the Armed Forces
            on techniques, strategies, and skills for care and assistance
            for such members and former members with traumatic brain injury.
                (2) Scope of curricula.--The curricula shall--
                        (A) be based on empirical research and validated
                    techniques; and
                        (B) shall provide for training that permits
                    recipients to tailor caregiving to the unique
                    circumstances of the member or former member of the
                    Armed Forces receiving care.
                (3) Particular requirements.--In developing the curricula,
            the Traumatic Brain Injury Family Caregiver Panel shall--
                        (A) specify appropriate training commensurate with
                    the severity of traumatic brain injury; and
                        (B) identify appropriate care and assistance to be
                    provided for the degree of severity of traumatic brain
                    injury for caregivers of various levels of skill and
                    capability.
                (4) Use of existing materials.--In developing the curricula,
            the Traumatic Brain Injury Family Caregiver Panel shall use and
            enhance any existing training curricula, materials, and
            resources applicable to such curricula as the Panel considers
            appropriate.
                (5) Deadline for development.--The Traumatic Brain Injury
            Family Caregiver Panel shall develop the curricula not later
            than one year after the date of the enactment of this Act.

        (c) Dissemination of Curricula.--
                (1) Dissemination mechanisms.--The Secretary of Defense
            shall develop mechanisms for the dissemination of the curricula
            developed under subsection (b)--

    [[Page 120 STAT. 2310]]

                        (A) to health care professionals who treat or
                    otherwise work with members and former members of the
                    Armed Forces with traumatic brain injury;
                        (B) to family members affected by the traumatic
                    brain injury of such members and former members; and
                        (C) to other care or support personnel who may
                    provide service to members or former members affected by
                    traumatic brain injury.
                (2) Use of existing mechanisms.--In developing such
            mechanisms, the Secretary may use and enhance existing
            mechanisms, including the Military Severely Injured Center
            (authorized under section 564 of this Act) and the programs for
            service to severely injured members established by the military
            departments.

        (d) Report.--Not later than one year after the development of the
    curricula required by subsection (b), the Secretary of Defense and the
    Secretary of Veterans Affairs shall submit to the Committees on Armed
    Services and Veterans Affairs of the Senate and the House of
    Representatives a report on the following:
                (1) The actions undertaken under this section.
                (2) Recommendations for the improvement or updating of
            training curriculum developed and provided under this section.
    SEC. 745. RECOGNITION OF REPRESENTATIVE LANE EVANS UPON HIS
                            RETIREMENT FROM THE HOUSE OF
                            REPRESENTATIVES.

        (a) Findings.--Congress makes the following findings:
                (1) Representative Lane Evans was elected to the House of
            Representatives in 1982 and is completing his 12th term
            representing the people of Illinois' 17th Congressional
            district.
                (2) As a member of the Committee on Armed Services of the
            House of Representatives since 1988, Representative Evans has
            worked to bring common sense priorities to defense spending and
            strengthen the military's conventional readiness.
                (3) Representative Evans has served as the ranking member of
            the Committee on Veterans' Affairs of the House of
            Representatives since 1997 and has been a tireless advocate for
            military veterans, ensuring that veterans receive the medical
            care they need and advocating for individuals suffering from
            post-traumatic stress disorder and Gulf War Syndrome.
                (5) Drawing on his own experience as a member of the Marine
            Corps, Representative Evans has tirelessly fought for both
            current members of the Armed Forces and veterans and has been a
            leader in legislative efforts to assist members exposed to Agent
            Orange.
                (4) Representative Evans' efforts to improve the transition
            of individuals from military service to the care of the
            Department of Veterans Affairs will continue to benefit
            generations of veterans long into the future.
                (6) Representative Evans is credited with bringing new
            services to veterans living in his Congressional district,
            including outpatient clinics in the Quad Cities and Quincy and
            the Quad-Cities Vet Center.
                (7) Representative Evans has worked with local leaders to
            promote the Rock Island Arsenal and has seen it win new jobs and
            missions through his support.

        (b) Recognition.--Congress recognizes and commends Representative
    Lane Evans for his 24 years of service to benefit the

    [[Page 120 STAT. 2311]]

    people of Illinois, members of the Armed Forces and their families,
    veterans, and the United States.

      TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED
                                     MATTERS

      Subtitle A--Provisions Relating to Major Defense Acquisition Programs

    Sec. 801. Requirements management certification training program.
    Sec. 802. Additional requirements relating to technical data rights.
    Sec. 803. Study and report on revisions to Selected Acquisition Report
               requirements.
    Sec. 804. Biannual updates on implementation of acquisition reform in
               the Department of Defense.
    Sec. 805. Additional certification requirements for major defense
               acquisition programs before proceeding to Milestone B.
    Sec. 806. Original baseline estimate for major defense acquisition
               programs.
    Sec. 807. Lead system integrators.

                  Subtitle B--Acquisition Policy and Management

    Sec. 811. Time-certain development for Department of Defense information
               technology business systems.
    Sec. 812. Pilot program on time-certain development in acquisition of
               major weapon systems.
    Sec. 813. Establishment of Panel on Contracting Integrity.
    Sec. 814. Linking of award and incentive fees to acquisition outcomes.
    Sec. 815. Report on defense instruction relating to contractor personnel
               authorized to accompany Armed Forces.
    Sec. 816. Major automated information system programs.
    Sec. 817. Internal controls for procurements on behalf of the Department
               of Defense by certain non-defense agencies.
    Sec. 818. Determination of contract type for development programs.
    Sec. 819. Three-year extension of requirement for reports on commercial
               price trend analyses of the Department of Defense.
    Sec. 820. Government performance of critical acquisition functions.

     Subtitle C--Amendments to General Contracting Authorities, Procedures,
                                 and Limitations

    Sec. 831. One-year extension of special temporary contract closeout
               authority.
    Sec. 832. Limitation on contracts for the acquisition of certain
               services.
    Sec. 833. Use of Federal supply schedules by State and local governments
               for goods and services for recovery from natural disasters,
               terrorism, or nuclear, biological, chemical, or radiological
               attack.
    Sec. 834. Waivers to extend task order contracts for advisory and
               assistance services.

          Subtitle D--United States Defense Industrial Base Provisions

    Sec. 841. Assessment and annual report of United States defense
               industrial base capabilities and acquisitions of articles,
               materials, and supplies manufactured outside the United
               States.
    Sec. 842. Protection of strategic materials critical to national
               security.
    Sec. 843. Strategic Materials Protection Board.

                            Subtitle E--Other Matters

    Sec. 851. Report on former Department of Defense officials employed by
               contractors of the Department of Defense.
    Sec. 852. Report and regulations on excessive pass-through charges.
    Sec. 853.  Program manager empowerment and accountability.
    Sec. 854. Joint policies on requirements definition, contingency program
               management, and contingency contracting.
    Sec. 855. Clarification of authority to carry out certain prototype
               projects.
    Sec. 856. Contracting with employers of persons with disabilities.
    Sec. 857. Enhanced access for small business.
    Sec. 858. Procurement goal for Hispanic-serving institutions.

    [[Page 120 STAT. 2312]]

      Subtitle A--Provisions Relating to Major Defense Acquisition Programs

    SEC. 801. REQUIREMENTS MANAGEMENT CERTIFICATION TRAINING PROGRAM.

        (a) Training Program.--
                (1) Requirement.--The Under Secretary of Defense for
            Acquisition, Technology, and Logistics, in consultation with the
            Defense Acquisition University, shall develop a training program
            to certify military and civilian personnel of the Department of
            Defense with responsibility for generating requirements for
            major defense acquisition programs (as defined in section
            2430(a) of title 10, United States Code).
                (2) Competency and other requirements.--The Under Secretary
            shall establish competency requirements for the personnel
            undergoing the training program. The Under Secretary shall
            define the target population for such training program by
            identifying which military and civilian personnel should have
            responsibility for generating requirements. The Under Secretary
            also may establish other training programs for personnel not
            subject to chapter 87 of title 10, United States Code, who
            contribute significantly to other types of acquisitions by the
            Department of Defense.

        (b) Applicability.--Effective <<NOTE: Effective date.>> on and after
    September 30, 2008, a member of the Armed Forces or an employee of the
    Department of Defense with authority to generate requirements for a
    major defense acquisition program may not continue to participate in the
    requirements generation process unless the member or employee
    successfully completes the certification training program developed
    under this section.

        (c) Reports.--The Secretary of Defense shall submit to the
    Committees on Armed Services of the Senate and House of Representatives
    an interim report, not later than March 1, 2007, and a final report, not
    later than March 1, 2008, on the implementation of the training program
    required under this section.
    SEC. 802. ADDITIONAL REQUIREMENTS RELATING TO TECHNICAL DATA
                            RIGHTS.

        (a) Additional Requirements Relating to Technical Data Rights.--
    Section 2320 of title 10, United States Code, is amended by adding at
    the end the following new subsection:
        ``(e) The Secretary of Defense shall require program managers for
    major weapon systems and subsystems of major weapon systems to assess
    the long-term technical data needs of such systems and subsystems and
    establish corresponding acquisition strategies that provide for
    technical data rights needed to sustain such systems and subsystems over
    their life cycle. Such strategies may include the development of
    maintenance capabilities within the Department of Defense or competition
    for contracts for sustainment of such systems or subsystems. Assessments
    and corresponding acquisition strategies developed under this section
    with respect to a weapon system or subsystem shall--
                ``(1) be developed before issuance of a contract
            solicitation for the weapon system or subsystem;

    [[Page 120 STAT. 2313]]

                ``(2) address the merits of including a priced contract
            option for the future delivery of technical data that were not
            acquired upon initial contract award;
                ``(3) address the potential for changes in the sustainment
            plan over the life cycle of the weapon system or subsystem; and
                ``(4) apply to weapon systems and subsystems that are to be
            supported by performance-based logistics arrangements as well as
            to weapons systems and subsystems that are to be supported by
            other sustainment approaches.''.

        (b) Modification of Presumption of Development Exclusively at
    Private Expense.--Section 2321(f) of title 10, United States Code, is
    amended--
                (1) by striking ``Expense for Commercial Items Contracts.--
            In'' and inserting ``Expense.--(1) Except as provided in
            paragraph (2), in''; and
                (2) by adding at the end the following new paragraph:

        ``(2) In the case of a challenge to a use or release restriction
    that is asserted with respect to technical data of a contractor or
    subcontractor (whether or not under a contract for commercial items) for
    a major system or a subsystem or component thereof on the basis that the
    major system, subsystem or component was developed exclusively at
    private expense, the challenge to the use or release restriction shall
    be sustained unless information provided by the contractor or
    subcontractor demonstrates that the item was developed exclusively at
    private expense.''.
        (c) Regulations.--Not <<NOTE: Deadline.>> later than 180 days after
    the date of the enactment of this Act, the Secretary of Defense shall
    revise regulations under section 2320 of title 10, United States Code,
    to implement subsection (e) of such section (as added by this section),
    including incorporating policy changes developed under such subsection
    into Department of Defense Directive 5000.1 and Department of Defense
    Instruction 5000.2.
    SEC. 803. STUDY AND REPORT ON REVISIONS TO SELECTED ACQUISITION
                            REPORT REQUIREMENTS.

        (a) Study Requirement.--The Secretary of Defense, acting through the
    Under Secretary of Defense for Acquisition, Technology, and Logistics in
    coordination with the service acquisition executives of each military
    department, shall conduct a study on revisions to requirements relating
    to Selected Acquisition Reports, as set forth in section 2432 of title
    10, United States Code.
        (b) Matters Covered.--The study required under subsection (a)
    shall--
                (1) focus on incorporating into the Selected Acquisition
            Report those elements of program progress that the Department of
            Defense considers most relevant to evaluating the performance
            and progress of major defense acquisition programs, with
            particular reference to the cost estimates and program schedule
            established when a major defense acquisition program receives
            Milestone B approval;
                (2) address the need to ensure that data provided through
            the Selected Acquisition Report is consistent with data provided
            through internal Department of Defense reporting systems for
            management purposes; and

    [[Page 120 STAT. 2314]]

                (3) include any recommendations to add to, modify, or delete
            elements of the Selected Acquisition Report, consistent with the
            findings of the study.

        (c) Report.--Not later than March 1, 2007, the Secretary shall
    submit to the Committees on Armed Services of the Senate and the House
    of Representatives a report on the results of the study, including such
    recommendations as the Secretary considers appropriate.
    SEC. 804. BIANNUAL UPDATES ON IMPLEMENTATION OF ACQUISITION REFORM
                            IN THE DEPARTMENT OF DEFENSE.

        (a) Biannual Updates Requirement.--
    Not <<NOTE: Reports. Deadlines.>> later than January 1 and July 1 of
    each year, beginning with January 1, 2007, the Secretary of Defense
    shall provide to the Committees on Armed Services of the Senate and the
    House of Representatives a report containing an update on the
    implementation of plans to reform the acquisition system in the
    Department of Defense.

        (b) Matters Covered.--Each report provided under subsection (a)
    shall cover the implementation of reforms of the processes for
    acquisition, including generation of requirements, award of contracts,
    and financial management. At a minimum, the reports shall take into
    account the recommendations made by the following:
                (1) The Defense Acquisition Performance Assessment Panel.
                (2) The Defense Science Board Summer Study on
            Transformation, issued in February 2006.
                (3) The Beyond Goldwater-Nichols Study of the Center for
            Strategic and International Studies.
                (4) The Quadrennial Defense Review, issued February 6, 2006.

        (c) Recommendations.--Each report submitted under subsection (a)
    shall include such recommendations as the Secretary considers
    appropriate, and implementation plans for the recommendations.
        (d) Termination of Report Requirement.--The requirement to submit
    reports under subsection (a) shall terminate on December 31, 2008.
    SEC. 805. ADDITIONAL CERTIFICATION REQUIREMENTS FOR MAJOR DEFENSE
                            ACQUISITION PROGRAMS BEFORE PROCEEDING TO
                            MILESTONE B.

        (a) Additional Certification Requirements.--Subsection (a) of
    section 2366a of title 10, United States Code, is amended--
                (1) by redesignating paragraph (7) as paragraph (10);
                (2) by redesignating paragraphs (1) through (6) as
            paragraphs (2) through (7), respectively;
                (3) by inserting before paragraph (2) (as so redesignated)
            the following new paragraph (1):
                ``(1) appropriate market research has been conducted prior
            to technology development to reduce duplication of existing
            technology and products;'';
                (4) in paragraph (7) (as so redesignated), by striking
            ``and'' at the end; and
                (5) by inserting after such paragraph (7) the following new
            paragraphs:
                ``(8) reasonable cost and schedule estimates have been
            developed to execute the product development and production plan
            under the program;

    [[Page 120 STAT. 2315]]

                ``(9) funding is available to execute the product
            development and production plan under the program, through the
            period covered by the future-years defense program submitted
            during the fiscal year in which the certification is made,
            consistent with the estimates described in paragraph (8) for the
            program; and''.

        (b) Waiver for National Security.--Subsection (c) of such section is
    amended by striking ``(5), or (6)'' and inserting ``(5), (6), (7), (8),
    or (9)''.
    SEC. 806. ORIGINAL BASELINE ESTIMATE FOR MAJOR DEFENSE ACQUISITION
                            PROGRAMS.

        Section 2435(d)(1) of title 10, United States Code, is amended by
    inserting after ``with respect to the program under subsection (a)'' the
    following: ``prepared before the program enters system development and
    demonstration, or at program initiation, whichever occurs later''.
    SEC. 807. LEAD SYSTEM INTEGRATORS.

        (a) Limitations on Contractors Acting as Lead System Integrators.--
                (1) In general.--Chapter 141 of title 10, United States
            Code, is amended by adding at the end the following new section:

    ``Sec. 2410p. Contracts: limitations on lead system integrators

        ``(a) In General.--Except as provided in subsection (b), no entity
    performing lead system integrator functions in the acquisition of a
    major system by the Department of Defense may have any direct financial
    interest in the development or construction of any individual system or
    element of any system of systems.
        ``(b) Exception.--An entity described in subsection (a) may have a
    direct financial interest in the development or construction of an
    individual system or element of a system of systems if--
                ``(1) the Secretary of Defense certifies to the Committees
            on Armed Services of the Senate and the House of Representatives
            that--
                        ``(A) the entity was selected by the Department of
                    Defense as a contractor to develop or construct the
                    system or element concerned through the use of
                    competitive procedures; and
                        ``(B) the Department took appropriate steps to
                    prevent any organizational conflict of interest in the
                    selection process; or
                ``(2) the entity was selected by a subcontractor to serve as
            a lower-tier subcontractor, through a process over which the
            entity exercised no control.

        ``(c) Construction.--Nothing in this section shall be construed to
    preclude an entity described in subsection (a) from performing work
    necessary to integrate two or more individual systems or elements of a
    system of systems with each other.''.
                (2) Clerical amendment.--The table of sections at the
            beginning of chapter 141 of such title is amended by adding at
            the end the following new item:

    ``2410p. Contracts: limitations on lead system integrators''.

    [[Page 120 STAT. 2316]]

                (3) Effective date.--Section 2410p of title 10, United
            States Code, as added by paragraph (1), shall apply with respect
            to contracts entered into after December 31, 2006.

        (b) Update of Regulations on Lead System Integrators.--
    Not <<NOTE: Deadline.>> later than December 31, 2006, the Secretary of
    Defense shall update the acquisition regulations of the Department of
    Defense in order to specify fully in such regulations the matters with
    respect to lead system integrators set forth in section 805(b) of the
    National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-
    163; 119 Stat. 3372) and the amendments made by subsection (a).

        (c) Additional Report Requirements.--The Secretary of Defense shall
    include in the report required by section 805 of such Act--
                (1) a precise and comprehensive definition of the term
            ``lead system integrator'', as that term is used in such
            section; and
                (2) a specification of various types of contracts and fee
            structures that are appropriate for use by lead system
            integrators in the production, fielding, and sustainment of
            complex systems.

                  Subtitle B--Acquisition Policy and Management

    SEC. 811. TIME-CERTAIN DEVELOPMENT FOR DEPARTMENT OF DEFENSE
                            INFORMATION TECHNOLOGY BUSINESS SYSTEMS.

        (a) Milestone A Limitation.--The Department of Defense executive or
    entity that is the milestone decision authority for an information
    system described in subsection (c) may not provide Milestone A approval
    for the system unless, as part of the decision process for such
    approval, that authority determines that the system will achieve initial
    operational capability within a specified period of time not exceeding
    five years.
        (b) Initial Operational Capability Limitation.--If an information
    system described in subsection (c), having received Milestone A
    approval, has not achieved initial operational capability within five
    years after the date of such approval, the system shall be deemed to
    have undergone a critical change in program requiring the evaluation and
    report required by section 2445c(d) of title 10, United States Code (as
    added by section 816 of this Act).
        (c) Covered Systems.--An information system described in this
    subsection is any Department of Defense information technology business
    system that is not a national security system, as defined in 3542(b)(2)
    of title 44, United States Code.
        (d) Definitions.--In this section:
                (1) Milestone decision authority.--The term ``milestone
            decision authority'' has the meaning given that term in
            Department of Defense Instruction 5000.2, dated May 12, 2003.
                (2) Milestone a.--The term ``Milestone A'' has the meaning
            given that term in Department of Defense Instruction 5000.2,
            dated May 12, 2003.

    [[Page 120 STAT. 2317]]

    SEC. 812. PILOT PROGRAM ON TIME-CERTAIN DEVELOPMENT IN ACQUISITION
                            OF MAJOR WEAPON SYSTEMS.

        (a) Pilot Program Authorized.--The Secretary of Defense may carry
    out a pilot program on the use of time-certain development in the
    acquisition of major weapon systems.
        (b) Purpose of Pilot Program.--The purpose of the pilot program
    authorized by subsection (a) is to assess the feasibility and
    advisability of utilizing time-certain development in the acquisition of
    major weapon systems in order to deliver new capabilities to the
    warfighter more rapidly through--
                (1) disciplined decision-making;
                (2) emphasis on technological maturity; and
                (3) appropriate trade-offs between--
                        (A) cost and system performance; and
                        (B) program schedule.

        (c) Inclusion of Systems in Pilot Program.--
                (1) In general.--The Secretary of Defense may include a
            major weapon system in the pilot program only if--
                        (A) the major weapon system meets the criteria under
                    paragraph (2) in accordance with that paragraph; and
                        (B) the Milestone Decision Authority nominates such
                    program to the Secretary of Defense for inclusion in the
                    program.
                (2) Criteria.--For purposes of paragraph (1) a major weapon
            system meets the criteria under this paragraph only if the
            Milestone Decision Authority determines, in consultation with
            the service acquisition executive for the military department
            carrying out the acquisition program for the system and one or
            more combatant commanders responsible for fielding the system,
            that--
                        (A) the certification requirements of section 2366a
                    of title 10, United States Code (as amended by section
                    805 of this Act), have been met, and no waivers have
                    been granted from such requirements;
                        (B) a preliminary design has been reviewed using
                    systems engineering, and the system, as so designed,
                    will meet battlefield needs identified by the relevant
                    combatant commanders after appropriate requirements
                    analysis;
                        (C) a representative model or prototype of the
                    system, or key subsystems, has been demonstrated in a
                    relevant environment, such as a well-simulated
                    operational environment;
                        (D) an independent cost estimate has been conducted
                    and used as the basis for funding requirements for the
                    acquisition program for the system;
                        (E) the budget of the military department
                    responsible for carrying out the acquisition program for
                    the system provides the funding necessary to execute the
                    product development and production plan consistent with
                    the requirements identified pursuant to subparagraph
                    (D);
                        (F) an appropriately qualified program manager has
                    entered into a performance agreement with the Milestone
                    Decision Authority that establishes expected parameters
                    for the cost, schedule, and performance of the
                    acquisition program for the system, consistent with a
                    business case for such acquisition program;

    [[Page 120 STAT. 2318]]

                        (G) the service acquisition executive and the
                    program manager have developed a strategy to ensure
                    stability in program management until, at a minimum, the
                    delivery of the initial operational capability under the
                    acquisition program for the system has occurred;
                        (H) the service acquisition executive, the relevant
                    combatant commanders, and the program manager have
                    agreed that no additional requirements that would be
                    inconsistent with the agreed-upon program schedule will
                    be added during the development phase of the acquisition
                    program for the system; and
                        (I) a planned initial operational capability will be
                    delivered to the relevant combatant commanders within a
                    defined period of time as prescribed in regulations by
                    the Secretary of Defense.
                (3) Timing of decision.--The decision whether to include a
            major weapon system in the pilot program shall be made at the
            time of milestone approval for the acquisition program for the
            system.

        (d) Limitation on Number of Weapons Systems in Pilot Program.--The
    number of major weapon systems included in the pilot program at any time
    may not exceed six major weapon systems.
        (e) Limitation on Cost of Weapons Systems in Pilot Program.--The
    Secretary of Defense may include a major weapon system in the pilot
    program only if, at the time a major weapon system is proposed for
    inclusion, the total cost for system design and development of the
    weapon system, as set forth in the cost estimate referred to in
    subsection (c)(2)(D), does not exceed $1,000,000,000 during the period
    covered by the current future-years defense program.
        (f) Special Funding Authority.--
                (1) Authority for reserve account.--Notwithstanding any
            other provision of law, the Secretary of Defense may establish a
            special reserve account utilizing funds made available for the
            major weapon systems included in the pilot program.
                (2) Elements.--The special reserve account may include--
                        (A) funds made available for any major weapon system
                    included in the pilot program to cover termination
                    liability;
                        (B) funds made available for any major weapon system
                    included in the pilot program for award fees that may be
                    earned by contractors; and
                        (C) funds appropriated to the special reserve
                    account.
                (3) Availability of funds.--Funds in the special reserve
            account may be used, in accordance with guidance issued by the
            Secretary for purposes of this section, for the following
            purposes:
                        (A) To cover termination liability for any major
                    weapon system included in the pilot program.
                        (B) To pay award fees that are earned by any
                    contractor for a major weapon system included in the
                    pilot program.
                        (C) To address unforeseen contingencies that could
                    prevent a major weapon system included in the pilot
                    program from meeting critical schedule or performance
                    requirements.

    [[Page 120 STAT. 2319]]

                (4) Reports on use of funds.--Not later than 30 days after
            the use of funds in the special reserve account for the purpose
            specified in paragraph (3)(C), the Secretary shall submit to the
            congressional defense committees a report on the use of funds in
            the account for such purpose. The report shall set forth the
            purposes for which the funds were used and the reasons for the
            use of the funds for such purposes.
                (5) Relationship to appropriations.--Nothing in this
            subsection may be construed as extending any period of time for
            which appropriated funds are made available.

        (g) Administration of Pilot Program.--The Secretary of Defense shall
    prescribe policies and procedures on the administration of the pilot
    program. Such policies and procedures shall--
                (1) provide for the use of program status reports based on
            earned value data to track progress on a major weapon system
            under the pilot program against baseline estimates applicable to
            such system at each systems engineering technical review point;
            and
                (2) grant authority, to the maximum extent practicable, to
            the program manager for the acquisition program for a major
            weapon system to make key program decisions and trade-offs,
            subject to management reviews only if cost or schedule
            deviations exceed the baselines for such acquisition program by
            10 percent or more.

        (h) Removal of Weapons Systems From Pilot Program.--The Secretary of
    Defense shall remove a major weapon system from the pilot program if--
                (1) the weapon system receives Milestone C approval; or
                (2) the Secretary determines that the weapon system is no
            longer in substantial compliance with the criteria in subsection
            (c)(2) or is otherwise no longer appropriate for inclusion in
            the pilot program.

        (i) Expiration of Authority To Include Additional Systems in Pilot
    Program.--
                (1) Expiration.--A major weapon system may not be included
            in the pilot program after September 30, 2012.
                (2) Retention of systems.--A major weapon system included in
            the pilot program before the date specified in paragraph (1) in
            accordance with the requirements of this section may remain in
            the pilot program after that date.

        (j) Annual Report.--
                (1) In general.--Not later than one year after including the
            first major weapon system in the pilot program, and annually
            thereafter, the Secretary shall submit to the congressional
            defense committees a report on the pilot program, and the major
            weapon systems included in the pilot program, during the one-
            year period ending on the date of such report.
                (2) Elements.--Each report under this subsection shall
            include--
                        (A) a description of progress under the pilot
                    program, and on each major weapon system included in the
                    pilot program, during the period covered by such report;
                        (B) a description of the use of all funds in the
                    special reserve account established under subsection
                    (f); and
                        (C) such other matters as the Secretary considers
                    appropriate.

    [[Page 120 STAT. 2320]]

        (k) Major Weapon System Defined.--In this section, the term ``major
    weapon system'' means a weapon system that is treatable as a major
    system under section 2302(5) of title 10, United States Code.
    SEC. 813. ESTABLISHMENT OF PANEL ON CONTRACTING INTEGRITY.

        (a) Establishment.--
                (1) In general.--The Secretary of Defense shall establish a
            panel to be known as the ``Panel on Contracting Integrity''.
                (2) Composition.--The panel shall be composed of the
            following:
                        (A) A representative of the Under Secretary of
                    Defense for Acquisition, Technology, and Logistics, who
                    shall be the chairman of the panel.
                        (B) A representative of the service acquisition
                    executive of each military department.
                        (C) A representative of the Inspector General of the
                    Department of Defense.
                        (D) A representative of the Inspector General of
                    each military department.
                        (E) A representative of each Defense Agency involved
                    with contracting, as determined appropriate by the
                    Secretary of Defense.
                        (F) Such other representatives as may be determined
                    appropriate by the Secretary of Defense.

        (b) Duties.--In addition to other matters assigned to it by the
    Secretary of Defense, the panel shall--
                (1) conduct reviews of progress made by the Department of
            Defense to eliminate areas of vulnerability of the defense
            contracting system that allow fraud, waste, and abuse to occur;
                (2) review the report by the Comptroller General required by
            section 841 of the National Defense Authorization Act for Fiscal
            Year 2006 (Public Law 109-163; 119 Stat. 3389), relating to
            areas of vulnerability of Department of Defense contracts to
            fraud, waste, and abuse; and
                (3) recommend changes in law, regulations, and policy that
            it determines necessary to eliminate such areas of
            vulnerability.

        (c) Meetings.--The panel shall meet as determined necessary by the
    Secretary of Defense but not less often than once every six months.
        (d) Report.--
                (1) Requirement.--The panel shall prepare and submit to the
            Secretary of Defense and the congressional defense committees an
            annual report on its activities. The report shall be submitted
            not later than December 31 of each year and contain a summary of
            the panel's findings and recommendations for the year covered by
            the report.
                (2) First report.--The first report under this subsection
            shall be submitted not later than December 31, 2007, and shall
            contain an examination of the current structure in the
            Department of Defense for contracting integrity and
            recommendations for any changes needed to the system of
            administrative safeguards and disciplinary actions to ensure
            accountability at the appropriate level for any violations of
            appropriate standards of behavior in contracting.

    [[Page 120 STAT. 2321]]

                (3) Interim reports.--The panel may submit such interim
            reports to the congressional defense committees as the Secretary
            of Defense considers appropriate.

        (e) Termination.--The panel shall terminate on December 31, 2009.
    SEC. 814. LINKING OF AWARD AND INCENTIVE FEES TO ACQUISITION
                            OUTCOMES.

        (a) Guidance on Linking of Award and Incentive Fees to Acquisition
    Outcomes.--Not later <<NOTE: Deadline.>> than 180 days after the date of
    the enactment of this Act, the Secretary of Defense shall issue
    guidance, with detailed implementation instructions (including
    definitions), for the Department of Defense on the appropriate use of
    award and incentive fees in Department of Defense acquisition programs.

        (b) Elements.--The guidance under subsection (a) shall--
                (1) ensure that all new contracts using award fees link such
            fees to acquisition outcomes (which shall be defined in terms of
            program cost, schedule, and performance);
                (2) establish standards for identifying the appropriate
            level of officials authorized to approve the use of award and
            incentive fees in new contracts;
                (3) provide guidance on the circumstances in which
            contractor performance may be judged to be ``excellent'' or
            ``superior'' and the percentage of the available award fee which
            contractors should be paid for such performance;
                (4) establish standards for determining the percentage of
            the available award fee, if any, which contractors should be
            paid for performance that is judged to be ``acceptable'',
            ``average'', ``expected'', ``good'', or ``satisfactory'';
                (5) ensure that no award fee may be paid for contractor
            performance that is judged to be below satisfactory performance
            or performance that does not meet the basic requirements of the
            contract;
                (6) provide specific direction on the circumstances, if any,
            in which it may be appropriate to roll over award fees that are
            not earned in one award fee period to a subsequent award fee
            period or periods;
                (7) ensure consistent use of guidelines and definitions
            relating to award and incentive fees across the military
            departments and Defense Agencies;
                (8) ensure that the Department of Defense--
                        (A) collects relevant data on award and incentive
                    fees paid to contractors; and
                        (B) has mechanisms in place to evaluate such data on
                    a regular basis;
                (9) include performance measures to evaluate the
            effectiveness of award and incentive fees as a tool for
            improving contractor performance and achieving desired program
            outcomes; and
                (10) provide mechanisms for sharing proven incentive
            strategies for the acquisition of different types of products
            and services among contracting and program management officials.

        (c) Assessment of Independent Evaluation Mechanisms.--
                (1) In general.--The Secretary of Defense shall select a
            federally funded research and development center to assess

    [[Page 120 STAT. 2322]]

            various mechanisms that could be used to ensure an independent
            evaluation of contractor performance for the purpose of making
            determinations applicable to the judging and payment of award
            fees.
                (2) Considerations.--The assessment conducted pursuant to
            paragraph (1) shall include consideration of the advantages and
            disadvantages of a system in which award fees are--
                        (A) held in a separate fund or funds of the
                    Department of Defense; and
                        (B) allocated to a specific program only upon a
                    determination by an independent board, charged with
                    comparing contractor performance across programs, that
                    such fees have been earned by the contractor for such
                    program.
                (3) Report.--The Secretary shall submit to the congressional
            defense committees a report on the assessment conducted pursuant
            to paragraph (1) not later than one year after the date of the
            enactment of this Act.
    SEC. 815. REPORT ON DEFENSE INSTRUCTION RELATING TO CONTRACTOR
                            PERSONNEL AUTHORIZED TO ACCOMPANY ARMED
                            FORCES.

        (a) Report on Implementation of Instruction.--The Secretary of
    Defense shall submit to Congress a report on the Department of Defense
    instruction described in subsection (c).
        (b) Matters Covered.--The report shall include the following:
                (1) Information on the status of the implementation of the
            instruction.
                (2) A discussion of how the instruction is being applied
            to--
                        (A) contracts in existence on the date the
                    instruction was issued, including contracts with respect
                    to which an option to extend is exercised after such
                    date;
                        (B) task orders issued under such contracts after
                    the date referred to in subparagraph (A); and
                        (C) contracts entered into after the date referred
                    to in subparagraph (A).
                (3) An analysis of the effectiveness of the instruction.
                (4) A review of compliance with the instruction.

        (c) Instruction Described.--The instruction referred to in this
    section is Department of Defense Instruction Number 3020.14, titled
    ``Contractor Personnel Authorized to Accompany the United States Armed
    Forces''.
    SEC. 816. MAJOR AUTOMATED INFORMATION SYSTEM PROGRAMS.

        (a) Reports and Information on Program Cost and Performance.--
                (1) In general.--Part IV of subtitle A of title 10, United
            States Code, is amended by inserting after chapter 144 the
            following new chapter:

           ``CHAPTER 144A--MAJOR AUTOMATED INFORMATION SYSTEM PROGRAMS

    ``Sec.
    ``2445a. Major automated information system program defined.
    ``2445b. Cost, schedule, and performance information.
    ``2445c. Reports: quarterly reports; reports on program changes.
    ``2445d. Construction with other reporting requirements.

    [[Page 120 STAT. 2323]]

    ``Sec. 2445a. Major automated information system program defined

        ``(a) In General.--In this chapter, the term `major automated
    information system program' means a Department of Defense program for
    the acquisition of an automated information system (either as a product
    or a service) if--
                ``(1) the program is designated by the Secretary of Defense,
            or a designee of the Secretary, as a major automated information
            system program; or
                ``(2) the dollar value of the program is estimated to
            exceed--
                        ``(A) $32,000,000 in fiscal year 2000 constant
                    dollars for all program costs in a single fiscal year;
                        ``(B) $126,000,000 in fiscal year 2000 constant
                    dollars for all program acquisition costs for the entire
                    program; or
                        ``(C) $378,000,000 in fiscal year 2000 constant
                    dollars for the total life-cycle costs of the program
                    (including operation and maintenance costs).

        ``(b) Adjustment.--The Secretary of Defense may adjust the amounts
    (and base fiscal year) set forth in subsection (a) on the basis of
    Department of Defense escalation rates. An adjustment under this
    subsection shall be effective after the Secretary transmits a written
    notification of the adjustment to the congressional defense committees.
        ``(c) Increments.--In the event any increment of a major automated
    information system program separately meets the requirements for
    treatment as a major automated information system program, the
    provisions of this chapter shall apply to such increment as well as to
    the overall major automated information system program of which such
    increment is a part.

    ``Sec. 2445b. Cost, schedule, and performance information

        ``(a) Submittal of Cost, Schedule, and Performance Information.--
    The <<NOTE: Deadline.>> Secretary of Defense shall submit to Congress
    each calendar year, not later than 45 days after the President submits
    to Congress the budget for a fiscal year under section 1105 of title 31,
    budget justification documents regarding cost, schedule, and performance
    for each major automated information system program for which funds are
    requested by the President in the budget.

        ``(b) Elements.--The documents submitted under subsection (a) with
    respect to a major automated information system program shall include
    detailed and summarized information with respect to the automated
    information system to be acquired under the program, and shall
    specifically include each of the following:
                ``(1) The development schedule, including major milestones.
                ``(2) The implementation schedule, including estimates of
            milestone dates, initial operational capability, and full
            operational capability.
                ``(3) Estimates of development costs and full life-cycle
            costs.
                ``(4) A summary of key performance parameters.

        ``(c) Baseline.--(1) For purposes of this chapter, the initial
    submittal to Congress of the documents required by subsection (a) with
    respect to a major automated information system program shall constitute
    the original estimate or information originally submitted on such
    program for purposes of the reports and determinations on program
    changes in section 2445c of this title.

    [[Page 120 STAT. 2324]]

        ``(2) An adjustment or revision of the original estimate or
    information originally submitted on a program may be treated as the
    original estimate or information originally submitted on the program if
    the adjustment or revision is the result of a critical change in the
    program covered by section 2445c(d) of this title.
        ``(3) In the event of an adjustment or revision to the original
    estimate or information originally submitted on a program under
    paragraph (2), the Secretary of Defense shall include in the next budget
    justification documents submitted under subsection (a) after such
    adjustment or revision a notification to the congressional defense
    committees of such adjustment or revision, together with the reasons for
    such adjustment or revision.

    ``Sec. 2445c. Reports: quarterly reports; reports on program changes

        ``(a) Quarterly Reports by Program Managers.--The program manager of
    a major automated information system program shall, on a quarterly
    basis, submit to the senior Department of Defense official responsible
    for the program a written report identifying any variance in the
    projected development schedule, implementation schedule, life-cycle
    costs, or key performance parameters for the major automated information
    system to be acquired under the program from such information as
    originally submitted to Congress under section 2445b of this title.
        ``(b) Senior Officials Responsible for Programs.--For purposes of
    this section, the senior Department of Defense official responsible for
    a major automated information system program is--
                ``(1) in the case of an automated information system to be
            acquired for a military department, the senior acquisition
            executive for the military department; or
                ``(2) in the case of any other automated information system
            to be acquired for the Department of Defense or any component of
            the Department of Defense, the Under Secretary of Defense for
            Acquisition, Technology, and Logistics.

        ``(c) Report on Significant Changes in Program.--
                ``(1) In <<NOTE: Notification.>> general.--If, based on a
            quarterly report submitted by the program manager of a major
            automated information system program pursuant to subsection (a),
            the senior Department of Defense official responsible for the
            program makes a determination described in paragraph (2), the
            official shall, not later than 45 days after receiving such
            report, notify the congressional defense committees in writing
            of such determination.
                ``(2) Covered determination.--A determination described in
            this paragraph with respect to a major automated information
            system program is a determination that--
                        ``(A) there has been a schedule change that will
                    cause a delay of more than six months but less than a
                    year in any program schedule milestone or significant
                    event from the schedule originally submitted to Congress
                    under paragraph (1) or (2) of section 2445b(b) of this
                    title;
                        ``(B) the estimated program development cost or full
                    life-cycle cost for the program has increased by at
                    least 15 percent, but less than 25 percent, over the
                    original estimate submitted to Congress under paragraph
                    (3) of section 2445b(b) of this title; or

    [[Page 120 STAT. 2325]]

                        ``(C) there has been a significant, adverse change
                    in the expected performance of the major automated
                    information system to be acquired under the program from
                    the parameters originally submitted to Congress under
                    paragraph (4) of section 2445b(b) of this title.

        ``(d) Report on Critical Changes in Program.--
                ``(1) In general.--If, based on a quarterly report submitted
            by the program manager of a major automated information system
            program pursuant to subsection (a), the senior Department of
            Defense official responsible for the program makes a
            determination described in paragraph (2), the official shall,
            not later than 60 days after receiving such report--
                        ``(A) carry out an evaluation of the program under
                    subsection (e); and
                        ``(B) submit, through the Secretary of Defense, to
                    the congressional defense committees a report meeting
                    the requirements of subsection (f).
                ``(2) Covered determination.--A determination described in
            this paragraph with respect to a major automated information
            system program is a determination that--
                        ``(A) the system failed to achieve initial
                    operational capability within five years of milestone A
                    approval;
                        ``(B) there has been a schedule change that will
                    cause a delay of one year or more in any program
                    schedule milestone or significant event from the
                    schedule originally submitted to Congress under
                    paragraph (1) or (2) of section 2445b(b) of this title;
                        ``(C) the estimated program development cost or full
                    life-cycle cost for the program has increased by 25
                    percent or more over the original estimate submitted to
                    Congress under paragraph (3) of section 2445b(b) of this
                    title; or
                        ``(D) there has been a change in the expected
                    performance of the major automated information system to
                    be acquired under the program that will undermine the
                    ability of the system to perform the functions
                    anticipated at the time information on the program was
                    originally submitted to Congress under section 2445b(b)
                    of this title.

        ``(e) Program Evaluation.--The evaluation of a major automated
    information system program conducted under this subsection for purposes
    of subsection (d)(1)(A) shall include an assessment of--
                ``(1) the projected cost and schedule for completing the
            program if current requirements are not modified;
                ``(2) the projected cost and schedule for completing the
            program based on reasonable modification of such requirements;
            and
                ``(3) the rough order of magnitude of the cost and schedule
            for any reasonable alternative system or capability.

        ``(f) Report on Critical Program <<NOTE: Certification.>> Changes.--
    A report on a major automated information system program conducted under
    this subsection for purposes of subsection (d)(1)(B) shall include a
    written certification (with supporting explanation) stating that--
                ``(1) the automated information system to be acquired under
            the program is essential to the national security or to the
            efficient management of the Department of Defense;
                ``(2) there is no alternative to the system which will
            provide equal or greater capability at less cost;

    [[Page 120 STAT. 2326]]

                ``(3) the new estimates of the costs, schedule, and
            performance parameters with respect to the program and system
            are reasonable; and
                ``(4) the management structure for the program is adequate
            to manage and control program costs.

        ``(g) Prohibition on Obligation of Funds.--(1) If the determination
    of a critical change to a program is made by the senior Department
    official responsible for the program under subsection (d)(2) and a
    report is not submitted to Congress within the 60-day period provided by
    subsection (d)(1), appropriated funds may not be obligated for any major
    contract under the program.
        ``(2) <<NOTE: Applicability. Termination date.>> The prohibition on
    the obligation of funds for a program under paragraph (1) shall cease to
    apply on the date on which Congress has received a report in compliance
    with the requirements of subsection (d)(2).

    ``Sec. 2445d. Construction with other reporting requirements

        ``In the case of a major automated information system program
    covered by this chapter that is also treatable as a major defense
    acquisition program for which reports would be required under chapter
    144 of this title, no reports on the program are required under such
    chapter if the requirements of this chapter with respect to the program
    are met.''.
                (2) Clerical amendments.--The tables of chapters the
            beginning of subtitle A of such title, and of part IV of
            subtitle A of such title, are each amended by inserting after
            the item relating to chapter 144 the following new item:

    ``144A. Major Automated Information System Programs.............2445a''.

        (b) Report on Reporting Requirements Applicable to Major Automated
    Information System Programs.--Not later than 180 days after the date of
    enactment of this Act, the Secretary of Defense shall submit to the
    congressional defense committees a report setting forth the reporting
    requirements applicable to major automated information system programs
    as of the date of the report, including a specification of such
    reporting requirements considered by the Secretary to be duplicative or
    redundant.
        (c) Effective Date.--
                (1) In general.--The amendments made by subsection (a) shall
            take effect on January 1, 2008, and shall apply with respect to
            any major automated information system program for which amounts
            are requested in the budget of the President (as submitted to
            Congress under section 1105 of title 31, United States Code) for
            a fiscal year after fiscal year 2008, regardless of whether the
            acquisition of the automated information system to be acquired
            under the program was initiated before, on, or after January 1,
            2008.
                (2) Report requirement.--Subsection (b) shall take effect on
            the date of the enactment of this Act.
    SEC. 817. INTERNAL CONTROLS FOR PROCUREMENTS ON BEHALF OF THE
                            DEPARTMENT OF DEFENSE BY CERTAIN NON-
                            DEFENSE AGENCIES.

        (a) Inspector General Reviews and Determinations.--
                (1) In <<NOTE: Deadline.>> general.--For each covered non-
            defense agency, the Inspector General of the Department of
            Defense and the Inspector General of such non-defense agency
            shall, not later than March 15, 2007, jointly--

    [[Page 120 STAT. 2327]]

                        (A) review--
                              (i) the procurement policies, procedures, and
                          internal controls of such non-defense agency that
                          are applicable to the procurement of property and
                          services on behalf of the Department by such non-
                          defense agency; and
                              (ii) the administration of those policies,
                          procedures, and internal controls; and
                        (B) determine in writing whether--
                              (i) such non-defense agency is compliant with
                          defense procurement requirements;
                              (ii) such non-defense agency is not compliant
                          with defense procurement requirements, but has a
                          program or initiative to significantly improve
                          compliance with defense procurement requirements;
                              (iii) neither of the conclusions stated in
                          clauses (i) and (ii) is correct in the case of
                          such non-defense agency; or
                              (iv) such non-defense agency is not compliant
                          with defense procurement requirements to such an
                          extent that the interests of the Department of
                          Defense are at risk in procurements conducted by
                          such non-defense agency.
                (2) Actions <<NOTE: Deadline.>> following certain
            determinations.--If the Inspectors General determine under
            paragraph (1) that a conclusion stated in clause (ii), (iii), or
            (iv) of subparagraph (B) of that paragraph is correct in the
            case of a covered non-defense agency, such Inspectors General
            shall, not later than June 15, 2008, jointly--
                        (A) conduct a second review, as described in
                    subparagraph (A) of that paragraph, regarding such non-
                    defense agency's procurement of property or services on
                    behalf of the Department of Defense in fiscal year 2007;
                    and
                        (B) determine in writing whether such non-defense
                    agency is or is not compliant with defense procurement
                    requirements.

        (b) Compliance With Defense Procurement Requirements.--For the
    purposes of this section, a covered non-defense agency is compliant with
    defense procurement requirements if such non-defense agency's
    procurement policies, procedures, and internal controls applicable to
    the procurement of products and services on behalf of the Department of
    Defense, and the manner in which they are administered, are adequate to
    ensure such non-defense agency's compliance with the requirements of
    laws and regulations that apply to procurements of property and services
    made directly by the Department of Defense.
        (c) Memoranda of Understanding Between Inspectors General.--
                (1) In <<NOTE: Deadline.>> general.--Not later than 60 days
            after the date of the enactment of this Act, the Inspector
            General of the Department of Defense and the Inspector General
            of each covered non-defense agency shall enter into a memorandum
            of understanding with each other to carry out the reviews and
            make the determinations required by this section.
                (2) Scope of memoranda.--The Inspector General of the
            Department of Defense and the Inspector General of a covered
            non-defense agency may by mutual agreement conduct separate

    [[Page 120 STAT. 2328]]

            reviews of the procurement of property and services on behalf of
            the Department of Defense that are conducted by separate
            business units, or under separate governmentwide acquisition
            contracts, of such non-defense agency. In any case where such
            separate reviews are conducted, the Inspectors General shall
            make separate determinations under paragraph (1) or (2) of
            subsection (a), as applicable, with respect to each such
            separate review.

        (d) Limitations <<NOTE: Deadlines.>> on Procurements on Behalf of
    Department of Defense.--
                (1) Limitation during review period.--After March 15, 2007,
            and before June 16, 2008, no official of the Department of
            Defense may, except as provided in subsection (e) or (f), order,
            purchase, or otherwise procure property or services in an amount
            in excess of $100,000 through a covered non-defense agency for
            which a determination described in clause (iii) or (iv) of
            paragraph (1)(B) of subsection (a) has been made under
            subsection (a).
                (2) Limitation after review period.--After June 15, 2008, no
            official of the Department of Defense may, except as provided in
            subsection (e) or (f), order, purchase, or otherwise procure
            property or services in an amount in excess of $100,000 through
            a covered non-defense agency that, having been subject to review
            under this section, has not been determined under this section
            as being compliant with defense procurement requirements.
                (3) Limitation following failure to reach mou.--Commencing
            on the date that is 60 days after the date of the enactment of
            this Act, if a memorandum of understanding between the Inspector
            General of the Department of Defense and the Inspector General
            of a covered non-defense agency cannot be attained causing the
            review required by this section to not be performed, no official
            of the Department of Defense, except as provided in subsection
            (e) or (f), may order, purchase or otherwise procure property or
            services in an amount in excess of $100,000 through such non-
            defense agency.

        (e) Exception From Applicability of Limitations.--
                (1) Exception.--No limitation applies under subsection (d)
            with respect to the procurement of property and services on
            behalf of the Department of Defense by a covered non-defense
            agency during any period that there is in effect a determination
            of the Under Secretary of Defense for Acquisition, Technology,
            and Logistics, made in writing, that it is necessary in the
            interest of the Department of Defense to continue to procure
            property and services through such non-defense agency.
                (2) Applicability of determination.--A written determination
            with respect to a covered non-defense agency under paragraph (1)
            is in effect for the period, not in excess of one year, that the
            Under Secretary shall specify in the written determination. The
            Under Secretary may extend from time to time, for up to one year
            at a time, the period for which the written determination
            remains in effect.

        (f) Termination of Applicability of Limitations.--Subsection (d)
    shall cease to apply to a covered non-defense agency on the date on
    which the Inspector General of the Department of Defense and the
    Inspector General of such non-defense agency jointly--

    [[Page 120 STAT. 2329]]

                (1) determine that such non-defense agency is compliant with
            defense procurement requirements; and
                (2) <<NOTE: Notification.>> notify the Secretary of Defense
            of that determination.

        (g) Identification of Procurements Made During a Particular Fiscal
    Year.--For the purposes of subsection (a), a procurement shall be
    treated as being made during a particular fiscal year to the extent that
    funds are obligated by the Department of Defense for that procurement in
    that fiscal year.

        (h) Resolution of Disagreements.--If the Inspector General of the
    Department of Defense and the Inspector General of a covered non-defense
    agency are unable to agree on a joint determination under subsection (a)
    or (f), a determination by the Inspector General of the Department of
    Defense under such subsection shall be conclusive for the purposes of
    this section.
        (i) Definitions.--In this section:
                (1) The term ``covered non-defense agency'' means each of
            the following:
                        (A) The Department of Veterans Affairs.
                        (B) The National Institutes of Health.
                (2) The term ``governmentwide acquisition contract'', with
            respect to a covered non-defense agency, means a task or
            delivery order contract that--
                        (A) is entered into by the non-defense agency; and
                        (B) may be used as the contract under which property
                    or services are procured for one or more other
                    departments or agencies of the Federal Government.
    SEC. 818. DETERMINATION OF CONTRACT TYPE FOR DEVELOPMENT PROGRAMS.

        (a) Repeal of Superseded Requirements.--Section 807 of the National
    Defense Authorization Act, Fiscal Year 1989 (10 U.S.C. 2304 note) is
    repealed.
        (b) Modification of <<NOTE: Deadline.>> Regulations.--Not later than
    120 days after the date of the enactment of this Act, the Secretary of
    Defense shall modify the regulations of the Department of Defense
    regarding the determination of contract type for development programs.

        (c) Elements.--As modified under subsection (b), the regulations
    shall require the Milestone Decision Authority for a major defense
    acquisition program to select the contract type for a development
    program at the time of a decision on Milestone B approval (or Key
    Decision Point B approval in the case of a space program) that is
    consistent with the level of program risk for the program. The Milestone
    Decision Authority may select--
                (1) a fixed-price type contract (including a fixed price
            incentive contract); or
                (2) a cost type contract.

        (d) Conditions With Respect to Authorization of Cost Type
    Contract.--As modified under subsection (b), the regulations shall
    provide that the Milestone Decision Authority may authorize the use of a
    cost type contract under subsection (c) for a development program only
    upon a written determination that--
                (1) the program is so complex and technically challenging
            that it would not be practicable to reduce program risk to a
            level that would permit the use of a fixed-price type contract;
            and

    [[Page 120 STAT. 2330]]

                (2) the complexity and technical challenge of the program is
            not the result of a failure to meet the requirements established
            in section 2366a of title 10, United States Code.

        (e) Justification for Selection of Contract Type.--As modified under
    subsection (b), the regulations shall require the Milestone Decision
    Authority to document the basis for the contract type selected for a
    program. The documentation shall include an explanation of the level of
    program risk for the program and, if the Milestone Decision Authority
    determines that the level of program risk is high, the steps that have
    been taken to reduce program risk and reasons for proceeding with
    Milestone B approval despite the high level of program risk.
    SEC. 819. THREE-YEAR EXTENSION OF REQUIREMENT FOR REPORTS ON
                            COMMERCIAL PRICE TREND ANALYSES OF THE
                            DEPARTMENT OF DEFENSE.

        Section 803(c)(4) of the Strom Thurmond National Defense
    Authorization Act for Fiscal Year 1999 (10 U.S.C. 2306a note) is amended
    by striking ``2006'' and inserting ``2009''.
    SEC. 820. GOVERNMENT PERFORMANCE OF CRITICAL ACQUISITION
                            FUNCTIONS.

        (a) Goal.--It <<NOTE: Deadline.>> shall be the goal of the
    Department of Defense and each of the military departments to ensure
    that, within five years after the date of the enactment of this Act, for
    each major defense acquisition program and each major automated
    information system program, each of the following positions is performed
    by a properly qualified member of the Armed Forces or full-time employee
    of the Department of Defense:
                (1) Program manager.
                (2) Deputy program manager.
                (3) Chief engineer.
                (4) Systems engineer.
                (5) Cost estimator.

        (b) Plan of <<NOTE: Deadline.>> Action.--Not later than six months
    after the date of enactment of this Act, the Secretary of Defense shall
    develop and begin implementation of a plan of action for recruiting,
    training, and ensuring appropriate career development of military and
    civilian personnel to achieve the objective established in subsection
    (a). The plan of action required by this subsection shall include
    specific, measurable interim milestones.

        (c) Reports.--Not later than one year after the date of the
    enactment of this Act and each year thereafter, the Secretary of Defense
    shall submit to the congressional defense committees a report on the
    progress made by the Department of Defense and the military departments
    toward achieving the goal established in subsection (a).
        (d) Definitions.--In this section:
                (1) The term ``major defense acquisition program'' has the
            meaning given such term in section 2430(a) of title 10, United
            States Code.
                (2) The term ``major automated information system program''
            has the meaning given such term in section 2445a(a) of title 10,
            United States Code (as added by section 816 of this Act).

    [[Page 120 STAT. 2331]]

     Subtitle C--Amendments to General Contracting Authorities, Procedures,
                                 and Limitations

    SEC. 831. ONE-YEAR EXTENSION OF SPECIAL TEMPORARY CONTRACT
                            CLOSEOUT AUTHORITY.

        Section 804(d) of the National Defense Authorization Act for Fiscal
    Year 2004 (Public Law 108-136; 117 Stat. 1542) is amended by striking
    ``September 30, 2006'' and inserting ``September 30, 2007''.
    SEC. 832. LIMITATION ON CONTRACTS FOR THE ACQUISITION OF CERTAIN
                            SERVICES.

        (a) Limitation.--Except as provided in subsection (b), the Secretary
    of Defense may not enter into a service contract to acquire a military
    flight simulator.
        (b) Waiver.--The Secretary of Defense may waive subsection (a) with
    respect to a contract if the Secretary--
                (1) determines that a waiver is necessary for national
            security purposes; and
                (2) provides to the congressional defense committees an
            economic analysis as described in subsection (c) at least 30
            days before the waiver takes effect.

        (c) Economic Analysis.--The economic analysis provided under
    subsection (b) shall include, at a minimum, the following:
                (1) A clear explanation of the need for the contract.
                (2) An examination of at least two alternatives for
            fulfilling the requirements that the contract is meant to
            fulfill, including the following with respect to each
            alternative:
                        (A) A rationale for including the alternative.
                        (B) A cost estimate of the alternative and an
                    analysis of the quality of each cost estimate.
                        (C) A discussion of the benefits to be realized from
                    the alternative.
                        (D) A best value determination of each alternative
                    and a detailed explanation of the life-cycle cost
                    calculations used in the determination.

        (d) Definitions.--In this section:
                (1) The term ``military flight simulator'' means any major
            system to simulate the form, fit, and function of a military
            aircraft that has no commonly available commercial variant.
                (2) The term ``service contract'' means any contract entered
            into by the Department of Defense the principal purpose of which
            is to furnish services in the United States through the use of
            service employees.
                (3) The term ``service employees'' has the meaning provided
            in section 8(b) of the Service Contract Act of 1965 (41 U.S.C.
            357(b)).

    [[Page 120 STAT. 2332]]

    SEC. 833. USE OF FEDERAL SUPPLY SCHEDULES BY STATE AND LOCAL
                            GOVERNMENTS FOR GOODS AND SERVICES FOR
                            RECOVERY FROM NATURAL DISASTERS,
                            TERRORISM, OR NUCLEAR, BIOLOGICAL,
                            CHEMICAL, OR RADIOLOGICAL ATTACK.

        (a) Authority To Use Supply Schedules for Certain Goods and
    Services.--Section 502 of title 40, United States Code, is amended by
    adding at the end the following new subsection:
        ``(d) Use of Supply Schedules for Certain Goods and Services.--
                ``(1) In general.--The Administrator may provide for the use
            by State or local governments of Federal supply schedules of the
            General Services Administration for goods or services that are
            to be used to facilitate recovery from a major disaster declared
            by the President under the Robert T. Stafford Disaster Relief
            and Emergency Assistance Act (42 U.S.C. 5121 et seq.) or to
            facilitate recovery from terrorism or nuclear, biological,
            chemical, or radiological attack.
                ``(2) Determination by secretary of homeland security.--The
            Secretary of Homeland Security shall determine which goods and
            services qualify as goods and services described in paragraph
            (1) before the Administrator provides for the use of the Federal
            supply schedule relating to such goods and services.
                ``(3) Voluntary use.--In the case of the use by a State or
            local government of a Federal supply schedule pursuant to
            paragraph (1), participation by a firm that sells to the Federal
            Government through the supply schedule shall be voluntary with
            respect to a sale to the State or local government through such
            supply schedule.
                ``(4) Definitions.--The definitions in subsection (c)(3)
            shall apply for purposes of this subsection.''.

        (b) Procedures.--Not <<NOTE: Deadline.>> later than 30 days after
    the date of the enactment of this Act, the Administrator of General
    Services shall establish procedures to implement subsection (d) of
    section 502 of title 40, United States Code (as added by subsection
    (a)).
    SEC. 834. WAIVERS TO EXTEND TASK ORDER CONTRACTS FOR ADVISORY AND
                            ASSISTANCE SERVICES.

         (a) Defense Contracts.--
                (1) Waiver authority.--The head of an agency may issue a
            waiver to extend a task order contract entered into under
            section 2304b of title 10, United States Code, for a period not
            exceeding 10 years, through five one-year options, if the head
            of the agency determines in writing--
                        (A) that the contract provides engineering or
                    technical services of such a unique and substantial
                    technical nature that award of a new contract would be
                    harmful to the continuity of the program for which the
                    services are performed;
                        (B) that award of a new contract would create a
                    large disruption in services provided to the Department
                    of Defense; and
                        (C) that the Department of Defense would, through
                    award of a new contract, endure program risk during
                    critical program stages due to loss of program corporate
                    knowledge of ongoing program activities.

    [[Page 120 STAT. 2333]]

                (2) Delegation.--The authority of the head of an agency
            under paragraph (1) may be delegated only to the senior
            procurement executive of the agency.
                (3) Report.--Not later than April 1, 2007, the Secretary of
            Defense shall submit to the Committees on Armed Services of the
            Senate and the House of Representatives a report on advisory and
            assistance services. The report shall include the following
            information:
                        (A) The methods used by the Department of Defense to
                    identify a contract as an advisory and assistance
                    services contract, as defined in section 2304b of title
                    10, United States Code.
                        (B) The number of such contracts awarded by the
                    Department during the five-year period preceding the
                    date of the enactment of this Act.
                        (C) The average annual expenditures by the
                    Department for such contracts.
                        (D) The average length of such contracts.
                        (E) The number of such contracts recompeted and
                    awarded to the previous award winner.
                (4) Prohibition on use of authority by department of defense
            if report not submitted.--The head of an agency may not issue a
            waiver under paragraph (1) if the report required by paragraph
            (3) is not submitted by the date set forth in that paragraph.

        (b) Civilian Agency Contracts.--
                (1) Waiver authority.--The head of an executive agency may
            issue a waiver to extend a task order contract entered into
            under section 303I of the Federal Property and Administrative
            Services Act of 1949 (41 U.S.C. 253i) for a period not exceeding
            10 years, through five one-year options, if the head of the
            agency determines in writing--
                        (A) that the contract provides engineering or
                    technical services of such a unique and substantial
                    technical nature that award of a new contract would be
                    harmful to the continuity of the program for which the
                    services are performed;
                        (B) that award of a new contract would create a
                    large disruption in services provided to the executive
                    agency; and
                        (C) that the executive agency would, through award
                    of a new contract, endure program risk during critical
                    program stages due to loss of program corporate
                    knowledge of ongoing program activities.
                (2) Delegation.--The authority of the head of an executive
            agency under paragraph (1) may be delegated only to the Chief
            Acquisition Officer of the agency (or the senior procurement
            executive in the case of an agency for which a Chief Acquisition
            Officer has not been appointed or designated under section 16(a)
            of the Office of Federal Procurement Policy Act (41 U.S.C.
            414(a))).
                (3) Report.--Not later than April 1, 2007, the Administrator
            for Federal Procurement Policy shall submit to the Committee on
            Homeland Security and Governmental Affairs of the Senate and the
            Committee on Government Reform of the House of Representatives a
            report on advisory and assistance services. The report shall
            include the following information:

    [[Page 120 STAT. 2334]]

                        (A) The methods used by executive agencies to
                    identify a contract as an advisory and assistance
                    services contract, as defined in section 303I(i) of the
                    Federal Property and Administrative Services Act of 1949
                    (41 U.S.C. 253i(i)).
                        (B) The number of such contracts awarded by each
                    executive agency during the five-year period preceding
                    the date of the enactment of this Act.
                        (C) The average annual expenditures by each
                    executive agency for such contracts.
                        (D) The average length of such contracts.
                        (E) The number of such contracts recompeted and
                    awarded to the previous award winner.
                (4) Prohibition on use of authority by executive agencies if
            report not submitted.--The head of an executive agency may not
            issue a waiver under paragraph (1) if the report required by
            paragraph (3) is not submitted by the date set forth in that
            paragraph.

        (c) Termination of <<NOTE: Deadline.>> Authority.--A waiver may not
    be issued under this section after December 31, 2011.

        (d) Comptroller General Review.--
                (1) Report requirement.--Not later than one year after the
            date of the enactment of this Act, the Comptroller General shall
            submit to the committees described in paragraph (3) a report on
            the use of advisory and assistance services contracts by the
            Federal Government.
                (2) Defense and civilian agency contracts covered.--The
            report shall cover both of the following:
                        (A) Advisory and assistance services contracts as
                    defined in section 2304b of title 10, United States
                    Code.
                        (B) Advisory and assistance services contracts as
                    defined in section 303I(i) of the Federal Property and
                    Administrative Services Act of 1949 (41 U.S.C. 253i(i)).
                (3) Matters covered.--The report shall address the following
            issues:
                        (A) The extent to which executive agencies and
                    elements of the Department of Defense require advisory
                    and assistance services for periods of greater than five
                    years.
                        (B) The extent to which such advisory and assistance
                    services are provided by the same contractors under
                    recurring contracts.
                        (C) The rationale for contracting for advisory and
                    assistance services that will be needed on a continuing
                    basis, rather than performing the services inside the
                    Federal Government.
                        (D) The contract types and oversight mechanisms used
                    by the Federal Government in contracts for advisory and
                    assistance services and the extent to which such
                    contract types and oversight mechanisms are adequate to
                    protect the interests of the Government and taxpayers.
                        (E) The actions taken by the Federal Government to
                    prevent organizational conflicts of interest and
                    improper personal services contracts in its contracts
                    for advisory and assistance services.
                (4) Committees.--The committees described in this paragraph
            are the following:
                        (A) The Committees on Armed Services and on Homeland
                    Security and Governmental Affairs of the Senate.

    [[Page 120 STAT. 2335]]

                        (B) The Committees on Armed Services and on
                    Government Reform of the House of Representatives.

          Subtitle D--United States Defense Industrial Base Provisions

    SEC. 841. ASSESSMENT AND ANNUAL REPORT OF UNITED STATES DEFENSE
                            INDUSTRIAL BASE CAPABILITIES AND
                            ACQUISITIONS OF ARTICLES, MATERIALS, AND
                            SUPPLIES MANUFACTURED OUTSIDE THE UNITED
                            STATES.

        Section 812 of the National Defense Authorization Act for Fiscal
    Year 2004 (Public Law 108-136; 117 Stat. 1542) is amended--
                (1) by amending the heading to read as follows:
    ``SEC. 812. ASSESSMENT AND ANNUAL REPORT OF UNITED STATES DEFENSE
                            INDUSTRIAL BASE CAPABILITIES AND
                            ACQUISITIONS OF ARTICLES, MATERIALS, AND
                            SUPPLIES MANUFACTURED OUTSIDE THE UNITED
                            STATES.'';
                (2) by adding at the end of subsection (c)(2)(A) the
            following new clauses:
                ``(v) The dollar value of any articles, materials, or
            supplies purchased that were manufactured outside of the United
            States.
                ``(vi) An itemized list of all waivers granted with respect
            to such articles, materials, or supplies under the Buy American
            Act (41 U.S.C. 10a et seq.).
                ``(vii) A summary of--
                        ``(I) the total procurement funds expended on
                    articles, materials, and supplies manufactured inside
                    the United States; and
                        ``(II) the total procurement funds expended on
                    articles, materials, and supplies manufactured outside
                    the United States.''; and
                (3) by adding at the end the following new subsections:

        ``(d) Public Availability.--The Secretary of Defense shall make the
    report submitted under subsection (c) publicly available to the maximum
    extent practicable.
        ``(e) Applicability.--This section shall not apply to acquisitions
    made by an agency, or component thereof, that is an element of the
    intelligence community as set forth in or designated under section 3(4)
    of the National Security Act of 1947 (50 U.S.C. 401a(4)).''.
    SEC. 842. PROTECTION OF STRATEGIC MATERIALS CRITICAL TO NATIONAL
                            SECURITY.

        (a) Requirement to Buy From American Sources.--
                (1) In general.--Subchapter V of chapter 148 of title 10,
            United States Code, is amended by inserting after section 2533a
            the following new section:

    ``Sec. 2533b. Requirement to buy strategic materials critical to
                            national security from American sources;
                            exceptions

        ``(a) Requirement.--Except as provided in subsections (b) through
    (j), funds appropriated or otherwise available to the Department of
    Defense may not be used for procurement of--

    [[Page 120 STAT. 2336]]

                ``(1) the following types of end items, or components
            thereof, containing a specialty metal not melted or produced in
            the United States: aircraft, missile and space systems, ships,
            tank and automotive items, weapon systems, or ammunition; or
                ``(2) a specialty metal that is not melted or produced in
            the United States and that is to be purchased directly by the
            Department of Defense or a prime contractor of the Department.

        ``(b) Availability Exception.--(1) Subsection (a) does not apply to
    the extent that the Secretary of Defense or the Secretary of the
    military department concerned determines that compliant specialty metal
    of satisfactory quality and sufficient quantity, and in the required
    form, cannot be procured as and when needed. For purposes of the
    preceding sentence, the term `compliant specialty metal' means specialty
    metal melted or produced in the United States.
        ``(2) This subsection applies to prime contracts and subcontracts at
    any tier under such contracts.
        ``(c) Exception for Certain Procurements.--Subsection (a) does not
    apply to the following:
                ``(1) Procurements outside the United States in support of
            combat operations or in support of contingency operations.
                ``(2) Procurements for which the use of procedures other
            than competitive procedures has been approved on the basis of
            section 2304(c)(2) of this title, relating to unusual and
            compelling urgency of need.

        ``(d) Exception Relating to Agreements With Foreign Governments.--
    Subsection (a)(1) does not preclude the procurement of a specialty metal
    if--
                ``(1) the procurement is necessary--
                        ``(A) to comply with agreements with foreign
                    governments requiring the United States to purchase
                    supplies from foreign sources for the purposes of
                    offsetting sales made by the United States Government or
                    United States firms under approved programs serving
                    defense requirements; or
                        ``(B) in furtherance of agreements with foreign
                    governments in which both such governments agree to
                    remove barriers to purchases of supplies produced in the
                    other country or services performed by sources of the
                    other country; and
                ``(2) any such agreement with a foreign government complies,
            where applicable, with the requirements of section 36 of the
            Arms Export Control Act (22 U.S.C. 2776) and with section 2457
            of this title.

        ``(e) Exception for Commissaries, Exchanges, and Other
    Nonappropriated Fund Instrumentalities.--Subsection (a) does not apply
    to items purchased for resale purposes in commissaries, exchanges, and
    nonappropriated fund instrumentalities operated by the Department of
    Defense.
        ``(f) Exception for Small Purchases.--Subsection (a) does not apply
    to procurements in amounts not greater than the simplified acquisition
    threshold referred to in section 2304(g) of this title.
        ``(g) Exception for Purchases of Electronic Components.--Subsection
    (a) does not apply to procurements of commercially available electronic
    components whose specialty metal content is

    [[Page 120 STAT. 2337]]

    de minimis in value compared to the overall value of the lowest level
    electronic component produced that contains such specialty metal.
        ``(h) Applicability to Procurements of Commercial Items.--This
    section applies to procurements of commercial items notwithstanding
    section 34 of the Office of Federal Procurement Policy Act (41 U.S.C.
    430).
        ``(i) Specialty Metal Defined.--In this section, the term `specialty
    metal' means any of the following:
                ``(1) Steel--
                        ``(A) with a maximum alloy content exceeding one or
                    more of the following limits: manganese, 1.65 percent;
                    silicon, 0.60 percent; or copper, 0.60 percent; or
                        ``(B) containing more than 0.25 percent of any of
                    the following elements: aluminum, chromium, cobalt,
                    columbium, molybdenum, nickel, titanium, tungsten, or
                    vanadium.
                ``(2) Metal alloys consisting of nickel, iron-nickel, and
            cobalt base alloys containing a total of other alloying metals
            (except iron) in excess of 10 percent.
                ``(3) Titanium and titanium alloys.
                ``(4) Zirconium and zirconium base alloys.

        ``(j) Additional Definitions.--In this section:
                ``(1) The term `United States' includes possessions of the
            United States.
                ``(2) The term `component' has the meaning provided in
            section 4 of the Office of Federal Procurement Policy Act (41
            U.S.C. 403).''.
                (2) Clerical amendment.--The table of sections at the
            beginning of such subchapter is amended by adding at the end the
            following new item:

    ``2533b. Requirement to buy strategic materials critical to national
               security from American sources; exceptions.''.

                (3) Conforming amendments.--Section 2533a of title 10,
            United States Code, is amended--
                        (A) by striking paragraph (2) of subsection (b) and
                    redesignating paragraph (3) of such subsection as
                    paragraph (2);
                        (B) in subsection (c), by striking ``or specialty
                    metals (including stainless steel flatware)''; and
                        (C) in subsection (e)--
                              (i) by striking ``Specialty Metals and'' in
                          the heading; and
                              (ii) by striking ``specialty metals or''.
                (4) Effective dates.--
                        (A) Section 2533b of title 10, United States Code,
                    as added by paragraph (1), shall apply with respect to
                    contracts entered into after the date occurring 30 days
                    after the date of the enactment of this Act.
                        (B) The amendments made by paragraph (3) shall take
                    effect on the date occurring 30 days after the date of
                    the enactment of this Act.

        (b) One-Time Waiver of Specialty Metals Domestic Source
    Requirement.--
                (1) Authority.--The Secretary of Defense or the Secretary of
            a military department may accept specialty metals if such

    [[Page 120 STAT. 2338]]

            metals were incorporated into items produced, manufactured, or
            assembled in the United States before the date of the enactment
            of this Act with respect to which the contracting officer for
            the contract determines that the contractor is not in compliance
            with section 2533b of title 10, United States Code (as added by
            subsection (a)(1)), if--
                        (A) the contracting officer for the contract
                    determines in writing that--
                              (i) it would not be practical or economical to
                          remove or replace the specialty metals
                          incorporated in such items or to substitute items
                          containing compliant materials;
                              (ii) the prime contractor and subcontractor
                          responsible for providing items containing non-
                          compliant materials have in place an effective
                          plan to ensure compliance with section 2533b of
                          title 10, United States Code (as so added), with
                          regard to items containing specialty metals if
                          such metals were incorporated into items produced,
                          manufactured, or assembled in the United States
                          after the date of the enactment of this Act; and
                              (iii) the non-compliance is not knowing or
                          willful; and
                        (B) the Under Secretary of Defense for Acquisition,
                    Technology, and Logistics or the service acquisition
                    executive of the military department concerned approves
                    the determination.
                (2) Notice.--Not <<NOTE: Deadline. Website.>> later than 15
            days after a contracting officer makes a determination under
            paragraph (1)(A) with respect to a contract, the contracting
            officer shall post a notice on FedBizOpps.gov that a waiver has
            been granted for the contract under this subsection.
                (3) Definition.--In this subsection, the term
            ``FedBizOpps.gov'' means the website maintained by the General
            Services Administration known as FedBizOpps.gov (or any
            successor site).
                (4) Termination of authority.--A contracting officer may
            exercise the authority under this subsection only with respect
            to the delivery of items the final acceptance of which takes
            place after the date of the enactment of this Act and before
            September 30, 2010.
    SEC. 843. STRATEGIC MATERIALS PROTECTION BOARD.

        (a) In General.--Chapter 7 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 187. Strategic Materials Protection Board

        ``(a) Establishment.--(1) The Secretary of Defense shall establish a
    Strategic Materials Protection Board.
        ``(2) The Board shall be composed of representatives of the
    following:
                ``(A) The Secretary of Defense, who shall be the chairman of
            the Board.
                ``(B) The Under Secretary of Defense for Acquisition,
            Technology, and Logistics.
                ``(C) The Under Secretary of Defense for Intelligence.
                ``(D) The Secretary of the Army.

    [[Page 120 STAT. 2339]]

                ``(E) The Secretary of the Navy.
                ``(F) The Secretary of the Air Force.

        ``(b) Duties.--In addition to other matters assigned to it by the
    Secretary of Defense, the Board shall--
                ``(1) determine the need to provide a long term domestic
            supply of materials designated as critical to national security
            to ensure that national defense needs are met;
                ``(2) analyze the risk associated with each material
            designated as critical to national security and the effect on
            national defense that the nonavailability of such material from
            a domestic source would have;
                ``(3) recommend a strategy to the President to ensure the
            domestic availability of materials designated as critical to
            national security;
                ``(4) recommend such other strategies to the President as
            the Board considers appropriate to strengthen the industrial
            base with respect to materials critical to national security;
            and
                ``(5) <<NOTE: Federal Register, publication.>> publish not
            less frequently than once every two years in the Federal
            Register recommendations regarding materials critical to
            national security, including a list of specialty metals, if any,
            recommended for addition to, or removal from, the definition of
            `specialty metal' for purposes of section 2533b of this title.

        ``(c) Meetings.--The Board shall meet as determined necessary by the
    Secretary of Defense but not less frequently than once every two years
    to make recommendations regarding materials critical to national
    security as described in subsection (b)(5).
        ``(d) Reports.--After each meeting of the Board, the Board shall
    prepare and submit to Congress a report containing the results of the
    meeting and such recommendations as the Board determines appropriate.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``187. Strategic Materials Protection Board.''.

        (c) First Meeting of <<NOTE: Deadline.>> Board.--The first meeting
    of the Strategic Materials Protection Board, established by section 187
    of title 10, United States Code (as added by subsection (a)) shall be
    not later than 180 days after the date of the enactment of this Act.

                            Subtitle E--Other Matters

    SEC. 851. REPORT ON FORMER DEPARTMENT OF DEFENSE OFFICIALS
                            EMPLOYED BY CONTRACTORS OF THE DEPARTMENT
                            OF DEFENSE.

        (a) Report Required.--Not later than December 1, 2007, the
    Comptroller General shall submit to the Committees on Armed Services of
    the Senate and House of Representatives a report on the employment of
    former officials of the Department of Defense by major defense
    contractors during the most recent calendar year for which, in the
    judgment of the Comptroller General, data are reasonably available. The
    report shall assess the extent to which

    [[Page 120 STAT. 2340]]

    former officials of the Department of Defense who served in acquisition-
    related positions were provided compensation by major defense
    contractors during such calendar year.
        (b) Objectives of Report.--The objectives of the report required by
    subsection (a) shall be to determine the effectiveness of existing
    statutes and regulations governing the employment of former Department
    of Defense officials by defense contractors, including section 207 of
    title 18, United States Code, and section 27 of the Office of Federal
    Procurement Policy Act (41 U.S.C. 423). At a minimum, the report shall
    assess the extent to which such former officials who receive
    compensation from defense contractors have been assigned by those
    contractors to work on--
                (1) Department of Defense contracts or programs for which
            such former officials personally had program oversight
            responsibility or decision-making authority when they served in
            the Department of Defense; or
                (2) Department of Defense contracts or programs which are
            the responsibility of the agency, office, or command in which
            such former officials served in the Department of Defense.

        (c) Confidentiality Requirement.--The report required by subsection
    (a) shall not include the names of specific former Department of Defense
    officials who receive compensation from defense contractors or
    information from which such individuals could be identified.
        (d) Access to Information.--In accordance with the contract clause
    required pursuant to section 2313(c) of title 10, United States Code, a
    major defense contractor shall provide the Comptroller General access to
    information requested by the Comptroller General for the purpose of this
    review regarding former officials of the Department of Defense who have
    received compensation from the contractor during the relevant calendar
    year.
        (e) Definitions.--In this section:
                (1) Major defense contractor.--The term ``major defense
            contractor'' includes any company that received more than
            $500,000,000 in contract awards from the Department of Defense
            in fiscal year 2005.
                (2) Former department of defense official.--The term
            ``former Department of Defense official'' means either of the
            following:
                        (A) A former Department of Defense employee.
                        (B) A former or retired member of the Armed Forces.
    SEC. 852. REPORT AND REGULATIONS ON EXCESSIVE PASS-THROUGH
                            CHARGES.

        (a) Comptroller General Report on Excessive Pass-Through Charges.--
                (1) In general.--Not later than 180 days after the date of
            the enactment of this Act, the Comptroller General shall issue a
            report on pass-through charges on contracts or subcontracts (or
            task or delivery orders) that are entered into for or on behalf
            of the Department of Defense.
                (2) Matters covered.--The report issued under this sub-
            section--

    [[Page 120 STAT. 2341]]

                        (A) shall assess the extent to which the Department
                    of Defense has paid excessive pass-through charges to
                    contractors who provided little or no value to the
                    performance of the contract;
                        (B) shall assess the extent to which the Department
                    has been particularly vulnerable to excessive pass-
                    through charges on any specific category of contracts or
                    by any specific category of contractors (including any
                    category of small business); and
                        (C) shall determine the extent to which any
                    prohibition on excessive pass-through charges would be
                    inconsistent with existing commercial practices for any
                    specific category of contracts or have an unjustified
                    adverse effect on any specific category of contractors
                    (including any category of small business).

        (b) Regulations Required.--
                (1) In <<NOTE: Deadline.>> general.--Not later than May 1,
            2007, the Secretary of Defense shall prescribe regulations to
            ensure that pass-through charges on contracts or subcontracts
            (or task or delivery orders) that are entered into for or on
            behalf of the Department of Defense are not excessive in
            relation to the cost of work performed by the relevant
            contractor or subcontractor.
                (2) Scope of regulations.--The regulations prescribed under
            this subsection--
                        (A) shall not apply to any firm, fixed-price
                    contract or subcontract (or task or delivery order) that
                    is--
                              (i) awarded on the basis of adequate price
                          competition; or
                              (ii) for the acquisition of a commercial item,
                          as defined in section 4(12) of the Office of
                          Federal Procurement Policy Act (41 U.S.C.
                          403(12)); and
                        (B) may include such additional exceptions as the
                    Secretary determines to be necessary in the interest of
                    the national defense.
                (3) Definition.--In this section, the term ``excessive pass-
            through charge'', with respect to a contractor or subcontractor
            that adds no, or negligible, value to a contract or subcontract,
            means a charge to the Government by the contractor or
            subcontractor that is for overhead or profit on work performed
            by a lower-tier contractor or subcontractor (other than charges
            for the direct costs of managing lower-tier contracts and
            subcontracts and overhead and profit based on such direct
            costs).
                (4) Report.--Not later than one year after the date of the
            enactment of this Act, the Secretary of Defense shall submit to
            the congressional defense committees a report on the steps taken
            to implement the requirements of this subsection, including--
                        (A) any standards for determining when no, or
                    negligible, value has been added to a contract by a
                    contractor or subcontractor;
                        (B) any procedures established for preventing
                    excessive pass-through charges; and
                        (C) any exceptions determined by the Secretary to be
                    necessary in the interest of the national defense.

    [[Page 120 STAT. 2342]]

                (5) Effective date.--The regulations prescribed under this
            subsection shall apply to contracts awarded for or on behalf of
            the Department of Defense on or after May 1, 2007.
    SEC. 853. PROGRAM MANAGER EMPOWERMENT AND ACCOUNTABILITY.

        (a) Strategy.--The Secretary of Defense shall develop a
    comprehensive strategy for enhancing the role of Department of Defense
    program managers in developing and carrying out defense acquisition
    programs.
        (b) Matters to Be Addressed.--The strategy required by this section
    shall address, at a minimum--
                (1) enhanced training and educational opportunities for
            program managers;
                (2) increased emphasis on the mentoring of current and
            future program managers by experienced senior executives and
            program managers within the Department;
                (3) improved career paths and career opportunities for
            program managers;
                (4) additional incentives for the recruitment and retention
            of highly qualified individuals to serve as program managers;
                (5) improved resources and support (including systems
            engineering expertise, cost estimating expertise, and software
            development expertise) for program managers;
                (6) improved means of collecting and disseminating best
            practices and lessons learned to enhance program management
            throughout the Department;
                (7) common templates and tools to support improved data
            gathering and analysis for program management and oversight
            purposes;
                (8) increased accountability of program managers for the
            results of defense acquisition programs; and
                (9) enhanced monetary and nonmonetary awards for successful
            accomplishment of program objectives by program managers.

        (c) Guidance on Tenure and Accountability of Program Managers Before
    Milestone B.--Not <<NOTE: Deadline.>> later than 180 days after the date
    of the enactment of this Act, the Secretary of Defense shall revise
    Department of Defense guidance for major defense acquisition programs to
    address the qualifications, resources, responsibilities, tenure, and
    accountability of program managers for the program development period
    (before Milestone B approval (or Key Decision Point B approval in the
    case of a space program)).

        (d) Guidance on Tenure and Accountability of Program Managers After
    Milestone B.--Not <<NOTE: Deadline.>> later than 180 days after the date
    of enactment of this Act, the Secretary of Defense shall revise
    Department of Defense guidance for major defense acquisition programs to
    address the qualifications, resources, responsibilities, tenure and
    accountability of program managers for the program execution period
    (from Milestone B approval (or Key Decision Point B approval in the case
    of a space program) until the delivery of the first production units of
    a program). The guidance issued pursuant to this subsection shall
    address, at a minimum--
                (1) the need for a performance agreement between a program
            manager and the milestone decision authority for the program,
            setting forth expected parameters for cost, schedule, and
            performance, and appropriate commitments by the program

    [[Page 120 STAT. 2343]]

            manager and the milestone decision authority to ensure that such
            parameters are met;
                (2) authorities available to the program manager, including,
            to the extent appropriate, the authority to object to the
            addition of new program requirements that would be inconsistent
            with the parameters established at Milestone B (or Key Decision
            Point B in the case of a space program) and reflected in the
            performance agreement; and
                (3) the extent to which a program manager for such period
            should continue in the position without interruption until the
            delivery of the first production units of the program.

        (e) Reports.--
                (1) Report by secretary of defense.--Not later than 270 days
            after the date of enactment of this Act, the Secretary of
            Defense shall submit to the congressional defense committees a
            report on the strategy developed pursuant to subsection (a) and
            the guidance issued pursuant to subsections (b) and (c).
                (2) Report by comptroller general.--Not later than one year
            after the date of enactment of this Act, the Comptroller General
            shall submit to the congressional defense committees a report on
            the actions taken by the Secretary of Defense to implement the
            requirements of this section.
    SEC. 854. JOINT POLICIES ON REQUIREMENTS DEFINITION, CONTINGENCY
                            PROGRAM MANAGEMENT, AND CONTINGENCY
                            CONTRACTING.

        (a) In General.--
                (1) Joint policy requirement.--Chapter 137 of title 10,
            United States Code, is amended by adding at the end the
            following new section:

    ``Sec. 2333. Joint policies on requirements definition, contingency
                            program management, and contingency contracting

        ``(a) Joint Policy Requirement.--The Secretary of Defense, in
    consultation with the Chairman of the Joint Chiefs of Staff, shall
    develop joint policies for requirements definition, contingency program
    management, and contingency contracting during combat operations and
    post-conflict operations.
        ``(b) Requirements Definition Matters Covered.--The joint policy for
    requirements definition required by subsection (a) shall, at a minimum,
    provide for the following:
                ``(1) The assignment of a senior commissioned officer or
            civilian member of the senior executive service, with
            appropriate experience and qualifications related to the
            definition of requirements to be satisfied through acquisition
            contracts (such as for delivery of products or services,
            performance of work, or accomplishment of a project), to act as
            head of requirements definition and coordination during combat
            operations, post-conflict operations, and contingency
            operations, if required, including leading a requirements review
            board involving all organizations concerned.
                ``(2) An organizational approach to requirements definition
            and coordination during combat operations, post-conflict
            operations, and contingency operations that is designed to
            ensure that requirements are defined in a way that effectively
            implements United States Government and Department of Defense

    [[Page 120 STAT. 2344]]

            objectives, policies, and decisions regarding the allocation of
            resources, coordination of interagency efforts in the theater of
            operations, and alignment of requirements with the proper use of
            funds.

        ``(c) Contingency Program Management Matters Covered.--The joint
    policy for contingency program management required by subsection (a)
    shall, at a minimum, provide for the following:
                ``(1) The assignment of a senior commissioned officer or
            civilian member of the senior executive service, with
            appropriate program management experience and qualifications, to
            act as head of program management during combat operations,
            post-conflict operations, and contingency operations, including
            stabilization and reconstruction operations involving multiple
            United States Government agencies and international
            organizations, if required.
                ``(2) A preplanned organizational approach to program
            management during combat operations, post-conflict operations,
            and contingency operations that is designed to ensure that the
            Department of Defense is prepared to conduct such program
            management.
                ``(3) Identification of a deployable cadre of experts, with
            the appropriate tools and authority, and trained in processes
            under paragraph (6).
                ``(4) Utilization of the hiring and appointment authorities
            necessary for the rapid deployment of personnel to ensure the
            availability of key personnel for sufficient lengths of time to
            provide for continuing program and project management.
                ``(5) A requirement to provide training (including training
            under a program to be created by the Defense Acquisition
            University) to program management personnel in--
                        ``(A) the use of laws, regulations, policies, and
                    directives related to program management in combat or
                    contingency environments;
                        ``(B) the integration of cost, schedule, and
                    performance objectives into practical acquisition
                    strategies aligned with available resources and subject
                    to effective oversight; and
                        ``(C) procedures of the Department of Defense
                    related to funding mechanisms and contingency contract
                    management.
                ``(6) Appropriate steps to ensure that training is
            maintained for such personnel even when they are not deployed in
            a contingency operation.
                ``(7) Such steps as may be needed to ensure jointness and
            cross-service coordination in the area of program management
            during contingency operations.

        ``(d) Contingency Contracting Matters Covered.--(1) The joint policy
    for contingency contracting required by subsection (a) shall, at a
    minimum, provide for the following:
                ``(A) The designation of a senior commissioned officer or
            civilian member of the senior executive service in each military
            department with the responsibility for administering the policy.
                ``(B) The assignment of a senior commissioned officer with
            appropriate acquisition experience and qualifications to act as
            head of contingency contracting during combat operations, post-
            conflict operations, and contingency operations, who shall
            report

    [[Page 120 STAT. 2345]]

            directly to the commander of the combatant command in whose area
            of responsibility the operations occur.
                ``(C) A sourcing approach to contingency contracting that is
            designed to ensure that each military department is prepared to
            conduct contingency contracting during combat operations, post-
            conflict operations, and contingency operations, including
            stabilization and reconstruction operations involving
            interagency organizations, if required.
                ``(D) A requirement to provide training (including training
            under a program to be created by the Defense Acquisition
            University) to contingency contracting personnel in--
                        ``(i) the use of law, regulations, policies, and
                    directives related to contingency contracting
                    operations;
                        ``(ii) the appropriate use of rapid acquisition
                    methods, including the use of exceptions to competition
                    requirements under section 2304 of this title, sealed
                    bidding, letter contracts, indefinite delivery
                    indefinite quantity task orders, set asides under
                    section 8(a) of the Small Business Act (15 U.S.C.
                    637(a)), undefinitized contract actions, and other tools
                    available to expedite the delivery of goods and services
                    during combat operations or post-conflict operations;
                        ``(iii) the appropriate use of rapid acquisition
                    authority, commanders' emergency response program funds,
                    and other tools unique to contingency contracting; and
                        ``(iv) instruction on the necessity for the prompt
                    transition from the use of rapid acquisition authority
                    to the use of full and open competition and other
                    methods of contracting that maximize transparency in the
                    acquisition process.
                ``(E) Appropriate steps to ensure that training is
            maintained for such personnel even when they are not deployed in
            a contingency operation.
                ``(F) Such steps as may be needed to ensure jointness and
            cross-service coordination in the area of contingency
            contracting.

        ``(2) To the extent practicable, the joint policy for contingency
    contracting required by subsection (a) should be taken into account in
    the development of interagency plans for stabilization and
    reconstruction operations, consistent with the report submitted by the
    President under section 1035 of this Act on interagency operating
    procedures for the planning and conduct of stabilization and
    reconstruction operations.
        ``(e) Definitions.--In this section:
                ``(1) Contingency contracting personnel.--The term
            `contingency contracting personnel' means members of the armed
            forces and civilian employees of the Department of Defense who
            are members of the defense acquisition workforce and, as part of
            their duties, are assigned to provide support to contingency
            operations (whether deployed or not).
                ``(2) Contingency contracting.--The term `contingency
            contracting' means all stages of the process of acquiring
            property or services by the Department of Defense during a
            contingency operation.
                ``(3) Contingency operation.--The term `contingency
            operation' has the meaning provided in section 101(13) of this
            title.

    [[Page 120 STAT. 2346]]

                ``(4) Acquisition support agencies.--The term `acquisition
            support agencies' means Defense Agencies and Department of
            Defense Field Activities that carry out and provide support for
            acquisition-related activities.
                ``(5) Contingency program management.--The term `contingency
            program management' means the process of planning, organizing,
            staffing, controlling, and leading the combined efforts of
            participating civilian and military personnel and organizations
            for the management of a specific defense acquisition program or
            programs during combat operations, post-conflict operations, and
            contingency operations.
                ``(6) Requirements definition.--The term `requirements
            definition' means the process of translating policy objectives
            and mission needs into specific requirements, the description of
            which will be the basis for awarding acquisition contracts for
            projects to be accomplished, work to be performed, or products
            to be delivered.''.
                (2) Clerical amendment.--The table of sections at the
            beginning of such chapter is amended by adding at the end the
            following new item:

    ``2333. Joint policies on requirements definition, contingency
               contracting, and program management.''.

        (b) Deadline for Development of Joint Policies.--The Secretary of
    Defense shall develop the joint policies required under section 2333 of
    title 10, United States Code, as added by subsection (a), not later than
    18 months after the date of enactment of this Act.
        (c) Reports.--
                (1) Interim report.--
                        (A) Requirement.--Not later than 365 days after the
                    date of the enactment of this Act, the Secretary of
                    Defense shall submit to the Committees on Armed Services
                    of the Senate and the House of Representatives an
                    interim report on requirements definition, contingency
                    contracting, and program management.
                        (B) Matters covered.--The report shall include
                    discussions of the following:
                              (i) Progress in the development of the joint
                          policies under section 2333 of title 10, United
                          States Code.
                              (ii) The ability of the Armed Forces to
                          support requirements definition, contingency
                          contracting, and program management.
                              (iii) The ability of commanders of combatant
                          commands to request requirements definition,
                          contingency contracting, or program management
                          support, and the ability of the military
                          departments and the acquisition support agencies
                          to respond to such requests and provide such
                          support, including the availability of rapid
                          acquisition personnel for such support.
                              (iv) The ability of the current civilian and
                          military acquisition workforce to deploy to combat
                          theaters of operations and to conduct requirements
                          definition, contingency contracting, or program
                          management activities during combat and during
                          post-conflict, reconstruction, or other
                          contingency operations.

    [[Page 120 STAT. 2347]]

                              (v) The effect of different periods of
                          deployment on continuity in the acquisition
                          process.
                (2) Final report.--Not later than 18 months after the date
            of the enactment of this Act, the Secretary of Defense shall
            submit to the committees referred to in paragraph (1)(A) a final
            report on requirements definition, contingency contracting, and
            program management, containing a discussion of the
            implementation of the joint policies developed under section
            2333 of title 10, United States Code (as so added), including
            updated discussions of the matters covered in the interim
            report. In addition, the report should include a discussion of
            the actions taken to ensure that the joint policies will be
            adequately resourced at the time of execution.
    SEC. 855. CLARIFICATION OF AUTHORITY TO CARRY OUT CERTAIN
                            PROTOTYPE PROJECTS.

        Section 845(a) of the National Defense Authorization Act for Fiscal
    Year 1994 (10 U.S.C. 2371 note) is amended--
                (1) in paragraph (2)(A), by inserting ``or, for the Defense
            Advanced Projects Agency or the Missile Defense Agency, the
            director of the agency'' after ``(41 U.S.C. 414(c))''; and
                (2) in paragraph (3), by inserting ``or director of the
            Defense Advanced Projects Agency or Missile Defense Agency''
            after ``executive''.
    SEC. 856. CONTRACTING WITH EMPLOYERS OF PERSONS WITH DISABILITIES.

        (a) Inapplicability of Certain Laws.--
                (1) Inapplicability of the randolph-sheppard act to
            contracts and subcontracts for military dining facility support
            services covered by javits-wagner-o'day act.--The Randolph-
            Sheppard Act (20 U.S.C. 107 et seq.) does not apply to full food
            services, mess attendant services, or services supporting the
            operation of a military dining facility that, as of the date of
            the enactment of this Act, were services on the procurement list
            established under section 2 of the Javits-Wagner-O'Day Act (41
            U.S.C. 47).
                (2) Inapplicability of the javits-wagner-o'day act to
            contracts for the operation of a military dining facility.--(A)
            The Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.) does not
            apply at the prime contract level to any contract entered into
            by the Department of Defense as of the date of the enactment of
            this Act with a State licensing agency under the Randolph-
            Sheppard Act (20 U.S.C. 107 et seq.) for the operation of a
            military dining facility.
                (B) The Javits-Wagner-O'Day Act shall apply to any
            subcontract entered into by a Department of Defense contractor
            for full food services, mess attendant services, and other
            services supporting the operation of a military dining facility.
                (3) Repeal of superseded law.--Subsections (a) and (b) of
            section 853 of the Ronald W. Reagan National Defense
            Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118
            Stat. 2021) are repealed.

        (b) Review and Report by Comptroller General of Randolph-Sheppard
    and Javits-Wagner-O'Day Contracts.--
                (1) In general.--The Comptroller General shall conduct a
            review of a representative sample of food service contracts

    [[Page 120 STAT. 2348]]

            described in paragraph (2) and determine in writing the
            following:
                        (A) Differences in operational procedures and
                    administration of contracts awarded by the Department of
                    Defense under the Randolph-Sheppard Act (20 U.S.C. 107
                    et seq.) and the Javits-Wagner-O'Day Act (41 U.S.C. 46
                    et seq.) on a State-by-State basis with regard to the
                    relationship between State licensing agencies and blind
                    vendors.
                        (B) Differences in competition, source selection,
                    and management processes and procedures for contracts
                    awarded by the Department under the Randolph-Sheppard
                    Act and the Javits-Wagner-O'Day Act, including a review
                    of the average total cost of contract awards and
                    compensation packages to all beneficiaries.
                        (C) Precise methods used to determine whether a
                    price is fair and reasonable under contracts awarded by
                    the Department under the Randolph-Sheppard Act and the
                    Javits-Wagner-O'Day Act, as required under the Federal
                    Acquisition Regulation and the Defense Federal
                    Acquisition Regulation Supplement.
                (2) Contracts covered.--For purposes of the review under
            paragraph (1), a food service contract described in this
            paragraph is a contract--
                        (A) for full food services, mess attendant services,
                    or services supporting the operation of all or any part
                    of a military dining facility;
                        (B) that was awarded under either the Randolph-
                    Sheppard Act or the Javits-Wagner-O'Day Act; and
                        (C) that is in effect on the date of the enactment
                    of this Act.
                (3) Report.--Not later than March 1, 2007, the Comptroller
            General shall submit to the Committees on Armed Services of the
            Senate and the House of Representatives a report on the review
            conducted under this subsection, with such findings and
            recommendations as the Comptroller General considers
            appropriate.

        (c) Requirements for Inspectors General of Department of Defense and
    Department of Education.--
                (1) Review of management procedures.--
            Not <<NOTE: Deadline.>> later than March 1, 2007, the Inspector
            General of the Department of Defense and the Inspector General
            of the Department of Education shall jointly review the
            management procedures under both the Randolph-Sheppard Act (20
            U.S.C. 107 et seq.) and the Javits-Wagner-O'Day Act (41 U.S.C.
            46 et seq.). In carrying out this paragraph, the Inspectors
            General shall each have access to the following:
                        (A) Memoranda on program management and the basis
                    for contract award under the programs.
                        (B) Guidance sent to State agencies on
                    administration of the programs.
                        (C) Names of participating vendors, as well as
                    qualifying experience and educational background of such
                    vendors.
                (2) Memorandum of understanding between inspectors
            general.--Not later <<NOTE: Deadline.>> than 60 days after the
            date of the enactment of this Act, the Inspector General of the
            Department of Defense and the Inspector General of the
            Department of

    [[Page 120 STAT. 2349]]

            Education shall enter into a memorandum of understanding with
            each other to carry out paragraph (1).
                (3) Report.--Not later than one year after the date of
            enactment of this Act, the Inspector General of the Department
            of Defense and the Inspector General of the Department of
            Education shall jointly submit to the Committees on Armed
            Services of the Senate and the House of Representatives a report
            on the review required by paragraph (1). The report shall
            include--
                        (A) findings of the Inspectors General regarding the
                    management procedures reviewed; and
                        (B) such other information and recommendations as
                    the Inspectors General consider appropriate.

        (d) Definitions.--In this section:
                (1) The term ``State licensing agency'' means any agency
            designated by the Secretary of Education under section 2(a)(5)
            of the Randolph-Sheppard Act (20 U.S.C. 107a(a)(5)).
                (2) The term ``military dining facility'' means a facility
            owned, operated, leased, or wholly controlled by the Department
            of Defense and used to provide dining services to members of the
            Armed Forces, including a cafeteria, military mess hall,
            military troop dining facility, or any similar dining facility
            operated for the purpose of providing meals to members of the
            Armed Forces.
    SEC. 857. ENHANCED ACCESS FOR SMALL BUSINESS.

         Section 9(a) of the Contract Disputes Act of 1978 (41 U.S.C. 608)
    is amended by striking the period at the end of the first sentence and
    inserting the following: ``or, in the case of a small business concern
    (as defined in the Small Business Act and regulations under that Act),
    $150,000 or less.''.
    SEC. 858. PROCUREMENT GOAL FOR HISPANIC-SERVING INSTITUTIONS.

        Section 2323 of title 10, United States Code, is amended--
                (1) in subsection (a)(1)--
                        (A) by striking ``and'' at the end of subparagraph
                    (B);
                        (B) by striking the period at the end of
                    subparagraph (C) and inserting ``; and''; and
                        (C) by adding at the end the following new
                    subparagraph:
                        ``(D) Hispanic-serving institutions (as defined in
                    section 502(a) of the Higher Education Act of 1965 (20
                    U.S.C. 1101a(a)).'';
                (2) in subsection (a)(2)--
                        (A) by inserting after ``historically Black colleges
                    and universities'' the following: ``, Hispanic-serving
                    institutions,''; and
                        (B) by inserting after ``such colleges and
                    universities'' the following: ``and institutions'';
                (3) in subsection (c)(1), by inserting after ``historically
            Black colleges and universities'' the following: ``, Hispanic-
            serving institutions,''; and
                (4) in subsection (c)(3), by inserting after ``historically
            Black colleges and universities'' the following: ``, to
            Hispanic-serving institutions,''.

    [[Page 120 STAT. 2350]]

           TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                  Subtitle A--Department of Defense Management

    Sec. 901. Increase in authorized number of Assistant Secretaries of
               Defense.
    Sec. 902. Modifications to the Combatant Commander Initiative Fund.
    Sec. 903. Addition to membership of specified council.
    Sec. 904. Consolidation and standardization of authorities relating to
               Department of Defense Regional Centers for Security Studies.
    Sec. 905. Oversight by Office of Under Secretary of Defense for
               Acquisition, Technology, and Logistics of exercise of
               acquisition authority by combatant commanders and heads of
               Defense Agencies.
    Sec. 906. Standardization of statutory references to ``national security
               system'' within laws applicable to Department of Defense.
    Sec. 907. Correction of reference to predecessor of Defense Information
               Systems Agency.

                          Subtitle B--Space Activities

    Sec. 911. Designation of successor organizations for the disestablished
               Interagency Global Positioning Executive Board.
    Sec. 912.  Extension of authority for pilot program for provision of
               space surveillance network services to non-United States
               Government entities.
    Sec. 913. Operationally responsive space.
    Sec. 914. Independent review and assessment of Department of Defense
               organization and management for national security in space.

                  Subtitle C--Chemical Demilitarization Program

    Sec. 921. Sense of Congress on completion of destruction of United
               States chemical weapons stockpile.
    Sec. 922. Comptroller General review of cost-benefit analysis of off-
               site versus on-site treatment and disposal of hydrolysate
               derived from neutralization of VX nerve gas at Newport
               Chemical Depot, Indiana.
    Sec. 923. Incentives clauses in chemical demilitarization contracts.
    Sec. 924. Chemical demilitarization program contracting authority.

                    Subtitle D--Intelligence-Related Matters

    Sec. 931. Four-year extension of authority of Secretary of Defense to
               engage in commercial activities as security for intelligence
               collection activities.
    Sec. 932. Annual reports on intelligence oversight activities of the
               Department of Defense.
    Sec. 933. Collection by National Security Agency of service charges for
               certification or validation of information assurance
               products.

                            Subtitle E--Other Matters

    Sec. 941. Department of Defense policy on unmanned systems.
    Sec. 942. Executive Schedule level IV for Deputy Under Secretary of
               Defense for Logistics and Materiel Readiness.
    Sec. 943. Study and report on reform of Defense Travel System.
    Sec. 944. Administration of pilot project on Civilian Linguist Reserve
               Corps.
    Sec. 945. Improvement of authorities on the National Security Education
               Program.
    Sec. 946. Report on the posture of United States Special Operations
               Command to conduct the global war on terrorism.

                  Subtitle A--Department of Defense Management

    SEC. 901. INCREASE IN AUTHORIZED NUMBER OF ASSISTANT SECRETARIES
                            OF DEFENSE.

        (a) Increase.--Section 138(a) of title 10, United States Code, is
    amended by striking ``nine'' and inserting ``ten''.
        (b) Conforming Amendment.--Section 5315 of title 5, United States
    Code, is amended by striking ``(9)'' after ``Assistant Secretaries of
    Defense'' and inserting ``(10)''.

    [[Page 120 STAT. 2351]]

    SEC. 902. MODIFICATIONS TO THE COMBATANT COMMANDER INITIATIVE
                            FUND.

        (a) Addition to Authorized Activities.--Subsection (b)(6) of section
    166a of title 10, United States Code is amended by striking ``civil
    assistance'' and inserting ``civic assistance, to include urgent and
    unanticipated humanitarian relief and reconstruction assistance''.
        (b) Additional Priority Consideration.--Subsection (c) of such
    section is amended--
                (1) by striking ``and'' at the end of paragraph (1);
                (2) by striking the period at the end of paragraph (2) and
            inserting ``; and''; and
                (3) by adding at the end the following new paragraph:
                ``(3) the provision of funds to be used for urgent and
            unanticipated humanitarian relief and reconstruction assistance,
            particularly in a foreign country where the armed forces are
            engaged in a contingency operation.''.
    SEC. 903. ADDITION TO MEMBERSHIP OF SPECIFIED COUNCIL.

        Section 179(a) of title 10, United States Code, is amended by adding
    at the end the following new paragraph:
                ``(5) The commander of the United States Strategic
            Command.''.
    SEC. 904. CONSOLIDATION AND STANDARDIZATION OF AUTHORITIES
                            RELATING TO DEPARTMENT OF DEFENSE REGIONAL
                            CENTERS FOR SECURITY STUDIES.

        (a) Basic Authorities for Regional Centers.--
                (1) In general.--Section 184 of title 10, United States
            Code, is amended to read as follows:

    ``Sec. 184. Regional Centers for Security Studies

        ``(a) In General.--The Secretary of Defense shall administer the
    Department of Defense Regional Centers for Security Studies in
    accordance with this section as international venues for bilateral and
    multilateral research, communication, and exchange of ideas involving
    military and civilian participants.
        ``(b) Regional Centers Specified.--(1) A Department of Defense
    Regional Center for Security Studies is a Department of Defense
    institution that--
                ``(A) is operated, and designated as such, by the Secretary
            of Defense for the study of security issues relating to a
            specified geographic region of the world; and
                ``(B) serves as a forum for bilateral and multilateral
            research, communication, and exchange of ideas involving
            military and civilian participants.

        ``(2) The Department of Defense Regional Centers for Security
    Studies are the following:
                ``(A) The <<NOTE: Germany.>> George C. Marshall European
            Center for Security Studies, established in 1993 and located in
            Garmisch-Partenkirchen, Germany.
                ``(B) <<NOTE: Hawaii.>> The Asia-Pacific Center for Security
            Studies, established in 1995 and located in Honolulu, Hawaii.
                ``(C) <<NOTE: District of Columbia.>> The Center for
            Hemispheric Defense Studies, established in 1997 and located in
            Washington, D.C.
                ``(D) <<NOTE: District of Columbia.>> The Africa Center for
            Strategic Studies, established in 1999 and located in
            Washington, D.C.

    [[Page 120 STAT. 2352]]

                ``(E) <<NOTE: District of Columbia.>> The Near East South
            Asia Center for Strategic Studies, established in 2000 and
            located in Washington, D.C.

        ``(3) No institution or element of the Department of Defense may be
    designated as a Department of Defense Regional Center for Security
    Studies for purposes of this section, other than the institutions
    specified in paragraph (2), except as specifically provided by law after
    the date of the enactment of this section.
        ``(c) Regulations.--The administration of the Regional Centers under
    this section shall be carried out under regulations prescribed by the
    Secretary.
        ``(d) Participation.--Participants in activities of the Regional
    Centers may include United States and foreign military, civilian, and
    nongovernmental personnel.
        ``(e) Employment and Compensation of Faculty.--At each Regional
    Center, the Secretary may, subject to the availability of
    appropriations--
                ``(1) employ a Director, a Deputy Director, and as many
            civilians as professors, instructors, and lecturers as the
            Secretary considers necessary; and
                ``(2) prescribe the compensation of such persons, in
            accordance with Federal guidelines.

        ``(f) Payment of Costs.--(1) Participation in activities of a
    Regional Center shall be on a reimbursable basis (or by payment in
    advance), except in a case in which reimbursement is waived in
    accordance with paragraph (3).
        ``(2) For a foreign national participant, payment of costs may be
    made by the participant, the participant's own government, by a
    Department or agency of the United States other than the Department of
    Defense, or by a gift or donation on behalf of one or more Regional
    Centers accepted under section 2611 of this title on behalf of the
    participant's government.
        ``(3) The Secretary of Defense may waive reimbursement of the costs
    of activities of the Regional Centers for foreign military officers and
    foreign defense and security civilian government officials from a
    developing country if the Secretary determines that attendance of such
    personnel without reimbursement is in the national security interest of
    the United States. Costs for which reimbursement is waived pursuant to
    this paragraph shall be paid from appropriations available to the
    Regional Centers.
        ``(4) Funds accepted for the payment of costs shall be credited to
    the appropriation then currently available to the Department of Defense
    for the Regional Center that incurred the costs. Funds so credited shall
    be merged with the appropriation to which credited and shall be
    available to that Regional Center for the same purposes and same period
    as the appropriation with which merged.
        ``(5) Funds available for the payment of personnel expenses under
    the Latin American cooperation authority set forth in section 1050 of
    this title are also available for the costs of the operation of the
    Center for Hemispheric Defense Studies.
        ``(g) Support to Other Agencies.--The Director of a Regional Center
    may enter into agreements with the Secretaries of the military
    departments, the heads of the Defense Agencies, and, with the
    concurrence of the Secretary of Defense, the heads of other Federal
    departments and agencies for the provision of services by that Regional
    Center under this section. Any such participating department and agency
    shall transfer to the Regional Center funds to pay the full costs of the
    services received.

    [[Page 120 STAT. 2353]]

        ``(h) Annual Report.--Not later than February 1 of each year, the
    Secretary of Defense shall submit to the Committee on Armed Services of
    the Senate and the Committee on Armed Services of the House of
    Representatives a report on the operation of the Regional Centers for
    security studies during the preceding fiscal year. The annual report
    shall include, for each Regional Center, the following information:
                ``(1) The status and objectives of the center.
                ``(2) The budget of the center, including the costs of
            operating the center.
                ``(3) A description of the extent of the international
            participation in the programs of the center, including the costs
            incurred by the United States for the participation of each
            foreign nation.
                ``(4) A description of the foreign gifts and donations, if
            any, accepted under section 2611 of this title.''.
                (2) Clerical amendment.--The item relating to such section
            in the table of sections at the beginning of chapter 7 of such
            title is amended to read as follows:

    ``184. Regional Centers for Security Studies.''.

        (b) Conforming Amendments.--
                (1) Employment and compensation authority for civilian
            faculty.--Section 1595 of title 10, United States Code, is
            amended--
                        (A) in subsection (c)--
                              (i) by striking paragraphs (3) and (5); and
                              (ii) by redesignating paragraphs (4) and (6)
                          as paragraphs (3) and (4), respectively; and
                        (B) by striking subsection (e).
                (2) Status of center for hemispheric defense studies.--
            Section 2165 of title 10, United States Code, is amended--
                        (A) in subsection (b)--
                              (i) by striking paragraph (6); and
                              (ii) by redesignating paragraph (7) as
                          paragraph (6); and
                        (B) by striking subsection (c).
    SEC. 905. OVERSIGHT BY OFFICE OF UNDER SECRETARY OF DEFENSE FOR
                            ACQUISITION, TECHNOLOGY, AND LOGISTICS OF
                            EXERCISE OF ACQUISITION AUTHORITY BY
                            COMBATANT COMMANDERS AND HEADS OF DEFENSE
                            AGENCIES.

        (a) Designation of Official for Oversight.--The Secretary of Defense
    shall designate a senior acquisition official within the Office of the
    Under Secretary of Defense for Acquisition, Technology, and Logistics to
    oversee the exercise of acquisition authority by--
                (1) any commander of a combatant command who is authorized
            by section 166b, 167, or 167a of title 10, United States Code,
            to exercise acquisition authority; and
                (2) any head of a Defense Agency who is designated by the
            Secretary of Defense to exercise acquisition authority.

        (b) Guidance.--
                (1) In general.--The senior acquisition official designated
            under subsection (a) shall develop guidance to ensure that the
            use of acquisition authority by commanders of combatant commands
            and the heads of Defense Agencies--

    [[Page 120 STAT. 2354]]

                        (A) is in compliance with department-wide
                    acquisition policy; and
                        (B) is coordinated with and mutually supportive of
                    acquisition programs of the military departments.
                (2) Urgent requirements.--Guidance developed under paragraph
            (1) shall take into account the need to fulfill the urgent
            requirements of the commanders of combatant commands and the
            heads of Defense Agencies and to ensure that those requirements
            are addressed expeditiously.

        (c) Consultation.--The senior acquisition official designated under
    subsection (a) shall on a regular basis consult on matters related to
    requirements and acquisition with the commanders of combatant commands
    and the heads of Defense Agencies referred to in that subsection.
        (d) Deadline for Designation.--The Secretary of Defense shall make
    the designation required by subsection (a) not later than 180 days after
    the date of the enactment of this Act.
    SEC. 906. STANDARDIZATION OF STATUTORY REFERENCES TO ``NATIONAL
                            SECURITY SYSTEM'' WITHIN LAWS APPLICABLE
                            TO DEPARTMENT OF DEFENSE.

        (a) Defense Business Systems.--Section 2222(j)(6) of title 10,
    United States Code, is amended by striking ``in section 2315 of this
    title'' and inserting ``in section 3542(b)(2) of title 44''.
        (b) Chief Information Officer Responsibilities.--Section 2223(c)(3)
    of such title is amended by striking ``section 11103 of title 40'' and
    inserting ``section 3542(b)(2) of title 44''.
        (c) Procurement of Automatic Data Processing Equipment and
    Services.--The text of section 2315 of such title is amended to read as
    follows:
        ``For purposes of subtitle III of title 40, the term `national
    security system', with respect to a telecommunications and information
    system operated by the Department of Defense, has the meaning given that
    term by section 3542(b)(2) of title 44.''.
    SEC. 907. CORRECTION OF REFERENCE TO PREDECESSOR OF DEFENSE
                            INFORMATION SYSTEMS AGENCY.

        Paragraph (1) of section 193(f) of title 10, United States Code, is
    amended to read as follows:
                ``(1) The Defense Information Systems Agency.''.

                          Subtitle B--Space Activities

    SEC. 911. DESIGNATION OF SUCCESSOR ORGANIZATIONS FOR THE
                            DISESTABLISHED INTERAGENCY GLOBAL
                            POSITIONING EXECUTIVE BOARD.

        (a) Successor Organizations.--Section 8 of the Commercial Space
    Transportation Competitiveness Act of 2000 (10 U.S.C. 2281 note) is
    amended by striking ``by Congress'' and all that follows and inserting
    ``for the functions and activities of the following organizations
    established pursuant to the United States Space-Based Position,
    Navigation, and Timing Policy issued December 8, 2004 (and any successor
    organization, to the extent the successor organization performs the
    functions of the specified organization):
                ``(1) The interagency committee known as the National Space-
            Based Positioning, Navigation, and Timing Executive Committee.

    [[Page 120 STAT. 2355]]

                ``(2) The support office for the committee specified in
            paragraph (1) known as the National Space-Based Positioning,
            Navigation, and Timing Coordination Office.
                ``(3) The Federal advisory committee known as the National
            Space-Based Positioning, Navigation, and Timing Advisory
            Board.''.

        (b) Clarification.--Such section is further amended by striking
    ``interagency funding'' and inserting ``multi-agency funding''.
    SEC. 912. EXTENSION OF AUTHORITY FOR PILOT PROGRAM FOR PROVISION
                              OF SPACE SURVEILLANCE NETWORK SERVICES
                              TO NON-UNITED STATES GOVERNMENT
                              ENTITIES.

        Section 2274(i) <<NOTE: Deadline.>> of title 10, United States Code,
    is amended by striking ``shall be conducted'' and all that follows and
    inserting ``may be conducted through September 30, 2009.''.
    SEC. 913. OPERATIONALLY RESPONSIVE SPACE.

        (a) United States Policy on Operationally Responsive Space.--It is
    the policy of the United States to demonstrate, acquire, and deploy an
    effective capability for operationally responsive space to support
    military users and operations from space, which shall consist of--
                (1) responsive satellite payloads and busses built to common
            technical standards;
                (2) low-cost space launch vehicles and supporting range
            operations that facilitate the timely launch and on-orbit
            operations of satellites;
                (3) responsive command and control capabilities; and
                (4) concepts of operations, tactics, techniques, and
            procedures that permit the use of responsive space assets for
            combat and military operations other than war.

        (b) Operationally Responsive Space Program Office.--
                (1) Establishment of office.--Section 2273a of title 10,
            United States Code, is amended to read as follows:

    ``Sec. 2273a. Operationally Responsive Space Program Office

        ``(a) Establishment.--The Secretary of Defense shall establish
    within the Department of Defense an office to be known as the
    Operationally Responsive Space Program Office (in this section referred
    to as the `Office').
        ``(b) Head of Office.--The head of the Office shall be--
                ``(1) the Department of Defense Executive Agent for Space;
            or
                ``(2) the designee of the Secretary of Defense, who shall
            report to the Department of Defense Executive Agent for Space.

        ``(c) Mission.--The mission of the Office shall be--
                ``(1) to contribute to the development of low-cost, rapid
            reaction payloads, busses, spacelift, and launch control
            capabilities in order to fulfill joint military operational
            requirements for on-demand space support and reconstitution; and
                ``(2) to coordinate and execute operationally responsive
            space efforts across the Department of Defense with respect to
            planning, acquisition, and operations.

        ``(d) Elements.--The Secretary of Defense shall select the elements
    of the Department of Defense to be included in the Office so as to
    contribute to the development of capabilities for operationally
    responsive space and to achieve a balanced representation

    [[Page 120 STAT. 2356]]

    of the military departments in the Office to ensure proper
    acknowledgment of joint considerations in the activities of the Office,
    except that the Office shall include the following:
                ``(1) A science and technology element that shall pursue
            innovative approaches to the development of capabilities for
            operationally responsive space through basic and applied
            research focused on (but not limited to) payloads, bus, and
            launch equipment.
                ``(2) An acquisition element that shall undertake the
            acquisition of systems necessary to integrate, sustain, and
            launch assets for operationally responsive space.
                ``(3) An operations element that shall--
                        ``(A) sustain and maintain assets for operationally
                    responsive space prior to launch;
                        ``(B) integrate and launch such assets; and
                        ``(C) operate such assets in orbit.
                ``(4) A combatant command support element that shall serve
            as the primary intermediary between the military departments and
            the combatant commands in order to--
                        ``(A) ascertain the needs of the commanders of the
                    combatant commands; and
                        ``(B) integrate operationally responsive space
                    capabilities into--
                              ``(i) operations plans of the combatant
                          commands;
                              ``(ii) techniques, tactics, and procedures of
                          the military departments; and
                              ``(iii) military exercises, demonstrations,
                          and war games.
                ``(5) Such other elements as the Secretary of Defense may
            consider necessary.

        ``(e) Acquisition Authority.--The acquisition activities of the
    Office shall be subject to the following:
                ``(1) The Department of Defense Executive Agent for Space
            shall be the senior acquisition executive of the Office.
                ``(2) The Joint Capabilities Integration and Development
            System process shall not apply to acquisitions by the Office for
            operational experimentation.
                ``(3) The commander of the United States Strategic Command,
            or the designee of the commander, shall--
                        ``(A) validate all system requirements for systems
                    to be acquired by the Office; and
                        ``(B) participate in the approval of any acquisition
                    program initiated by the Office.
                ``(4) To the maximum extent practicable, the procurement
            unit cost of a launch vehicle procured by the Office for launch
            to low earth orbit should not exceed $20,000,000 (in constant
            dollars).
                ``(5) To the maximum extent practicable, the procurement
            unit cost of an integrated satellite procured by the Office
            should not exceed $40,000,000 (in constant dollars).

        ``(f) Required Program Element.--(1) The Secretary of Defense shall
    ensure that, within budget program elements for space programs of the
    Department of Defense, that--
                ``(A) there is a separate, dedicated program element for
            operationally responsive space;

    [[Page 120 STAT. 2357]]

                ``(B) to the extent applicable, relevant program elements
            should be consolidated into the program element required by
            subparagraph (A); and
                ``(C) the Office executes its responsibilities through this
            program element.

        ``(2) The Office shall manage the program element required by
    paragraph (1)(A).''.
                (2) Clerical amendment.--The item relating to that section
            in the table of sections at the beginning of chapter 135 of such
            title is amended to read as follows:

    ``2273a. Operationally Responsive Space Program Office.''.

        (c) Plan for Operationally Responsive Space.--
                (1) Plan required.--Not <<NOTE: Reports. Deadline.>> later
            than 120 days after the date of the enactment of this Act, the
            Secretary of Defense shall submit to the congressional defense
            committees a report setting forth a plan for the acquisition by
            the Department of Defense of capabilities for operationally
            responsive space to support military users and military
            operations.
                (2) Elements.--The plan required by paragraph (1) shall
            include the following:
                        (A) An identification of the roles and missions of
                    each military department, Defense Agency, and other
                    component or element of the Department of Defense for
                    the fulfillment of the mission of the Department with
                    respect to operationally responsive space.
                        (B) An identification of the capabilities required
                    by the Department to fulfill such mission during the
                    period covered by the current future-years defense
                    program submitted to Congress pursuant to section 221 of
                    title 10, United States Code, and an additional 10-year
                    period.
                        (C) A description of the chain of command and
                    reporting structure of the Operationally Responsive
                    Space Program Office established under section 2273a of
                    title 10, United States Code, as amended by subsection
                    (b).
                        (D) A description of the classification of
                    information required for the Operationally Responsive
                    Space Program Office in order to ensure that the Office
                    carries out its responsibilities under such section
                    2273a in a proper and efficient manner.
                        (E) A description of the acquisition policies and
                    procedures applicable to the Operationally Responsive
                    Space Program Office, including a description of any
                    legislative or administrative action necessary to
                    provide the Office additional acquisition authority to
                    carry out its responsibilities.
                        (F) A schedule for the implementation of the plan
                    and the establishment of the Operationally Responsive
                    Space Program Office.
                        (G) The funding and personnel required to implement
                    the plan over the course of the current future-years
                    defense program.
                        (H) A description of any additional authorities and
                    programmatic, organizational, or other changes necessary
                    to ensure that the Operationally Responsive Space
                    Program Office can successfully carry out its
                    responsibilities.

    [[Page 120 STAT. 2358]]

        (d) Repeal of Superseded Law.--Section 913 of the National Defense
    Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat.
    3408; 10 U.S.C. 2273a note) is repealed.
    SEC. 914. INDEPENDENT REVIEW AND ASSESSMENT OF DEPARTMENT OF
                            DEFENSE ORGANIZATION AND MANAGEMENT FOR
                            NATIONAL SECURITY IN SPACE.

        (a) Independent Review and Assessment Required.--The Secretary of
    Defense shall select an appropriate entity outside the Department of
    Defense to conduct an independent review and assessment of the
    organization and management of the Department of Defense for national
    security in space. In selecting the entity to conduct the review and
    assessment, the Secretary shall consult with the chairman and ranking
    minority member of the Committee on Armed Services of the Senate and the
    chairman and ranking minority member of the Committee on Armed Services
    of the House of Representatives.
        (b) Elements.--The review and assessment required by this section
    shall address the following:
                (1) The requirements of the Department of Defense for
            national security space capabilities, as identified by the
            Department, and the efforts of the Department to fulfill such
            requirements.
                (2) The actions that could be taken by the Department to
            modify the organization and management of the Department over
            the near-term, medium-term, and long-term in order to strengthen
            United States national security in space, and the ability of the
            Department to implement its requirements and carry out the
            future space missions, including the following:
                        (A) Actions to improve or enhance current
                    interagency coordination processes regarding the
                    operation of national security space assets, including
                    improvements or enhancements in interoperability and
                    communications.
                        (B) Actions to improve or enhance the relationship
                    between the intelligence aspects of national security
                    space (so-called ``black space'') and the non-
                    intelligence aspects of national security space (so-
                    called ``white space'').
                        (C) Actions to improve or enhance the manner in
                    which military space issues are addressed by
                    professional military education institutions.
                        (D) Actions to create a specialized career field for
                    military space acquisition personnel, to include an
                    emphasis on long-term assignments, that could help
                    develop and maintain a professional space acquisition
                    cadre with technical expertise and institutional
                    knowledge.

        (c) Liaison.--The Secretary of Defense shall designate at least one
    senior civilian employee of the Department of Defense, and at least one
    general or flag officer, to serve as liaison between the Department, the
    Armed Forces, and the entity conducting the review and assessment under
    this section.
        (d) Report.--Not later than one year after the date of the enactment
    of this Act, the entity conducting the review and assessment under this
    section shall submit to the Secretary of Defense and the congressional
    defense committees a report containing--
                (1) the results of the review and assessment; and

    [[Page 120 STAT. 2359]]

                (2) recommendations on the best means by which the
            Department may improve its organization and management for
            national security in space.

                  Subtitle C--Chemical Demilitarization Program

    SEC. 921. SENSE OF CONGRESS ON COMPLETION OF DESTRUCTION OF UNITED
                            STATES CHEMICAL WEAPONS STOCKPILE.

        (a) Findings.--Congress makes the following findings:
                (1) The Convention on the Prohibition of the Development,
            Production, Stockpiling and Use of Chemical Weapons and on Their
            Destruction, done at Paris on January 13, 1993 (commonly
            referred to as the ``Chemical Weapons Convention''), requires
            that destruction of the entire United States chemical weapons
            stockpile be completed by no later than the extended deadline of
            April 29, 2012.
                (2) On April 10, 2006, the Department of Defense notified
            Congress that the United States would not meet even the extended
            deadline under the Chemical Weapons Convention for destruction
            of the United States chemical weapons stockpile.
                (3) Destroying existing chemical weapons is a homeland
            security imperative and an arms control priority and is required
            by United States law.
                (4) The elimination and nonproliferation of chemical weapons
            of mass destruction is of utmost importance to the national
            security of the United States.

        (b) Sense of Congress.--It is the sense of Congress that--
                (1) the United States is committed to making every effort to
            safely dispose of its entire chemical weapons stockpile by the
            Chemical Weapons Convention extended deadline of April 29, 2012,
            or as soon thereafter as possible, and will carry out all of its
            other obligations under that Convention;
                (2) to prevent further delays in completing the destruction
            of the United States chemical weapons stockpile, the Secretary
            of Defense should prepare a comprehensive schedule for the safe
            destruction of such stockpile and should annually submit that
            schedule (as currently in effect) to the congressional defense
            committees, either separately or as part of another required
            report, until such destruction is completed;
                (3) the Secretary of Defense should make every effort to
            ensure adequate funding to complete the elimination of the
            United States chemical weapons stockpile in the shortest time
            possible, consistent with the requirement to protect public
            health, safety, and the environment; and
                (4) when selecting a site for the treatment or disposal of
            neutralized chemical agent at a location remote from the
            location where the agent is stored, the Secretary of Defense
            should propose a credible process that seeks to gain the support
            of affected communities.

    [[Page 120 STAT. 2360]]

    SEC. 922. COMPTROLLER GENERAL REVIEW OF COST-BENEFIT ANALYSIS OF
                            OFF-SITE VERSUS ON-SITE TREATMENT AND
                            DISPOSAL OF HYDROLYSATE DERIVED FROM
                            NEUTRALIZATION OF VX NERVE GAS AT NEWPORT
                            CHEMICAL DEPOT, INDIANA.

        (a) Review <<NOTE: Reports.>> Required.--Not later than December 1,
    2006, the Comptroller General shall submit to Congress a report
    containing a review of the cost-benefit analysis prepared by the
    Secretary of the Army entitled ``Cost-Benefit Analysis of Off-Site
    Versus On-Site Treatment and Disposal of Newport Caustic Hydrolysate''
    and dated April 24, 2006.

        (b) Content of Review.--In conducting the review under subsection
    (a), the Comptroller General shall consider and assess at a minimum the
    following matters:
                (1) The adequacy of the rationale contained in the cost-
            benefit analysis referred to in subsection (a) in dismissing
            five of the eight technologies for hydrolysate treatment
            directed for consideration on page 116 of the Report of the
            Committee on Armed Services of the House of Representatives on
            H.R. 1815 (House Report 109-89).
                (2) The rationale for the failure of the Secretary of the
            Army to consider other technical solutions, such as constructing
            a wastewater disposal system at the Newport Chemical Depot.
                (3) The adequacy of the cost-benefit analysis presented for
            the three technologies considered.

        (c) Limitation on Transport <<NOTE: New Jersey.>> Pending Report.--
    The Secretary of the Army may not transport neutralized bulk nerve agent
    (other than those small quantities necessary for laboratory evaluation
    of the disposal process) from the Newport Chemical Depot to the State of
    New Jersey until the earlier of--
                (1) the end of the 60-day period beginning on the date on
            which the report required by subsection (a) is submitted; or
                (2) February 1, 2007.
    SEC. 923. INCENTIVES CLAUSES IN CHEMICAL DEMILITARIZATION
                            CONTRACTS.

        (a) In General.--
                (1) Authority to include clauses in contracts.--The
            Secretary of Defense may, for the purpose specified in paragraph
            (2), authorize the inclusion of an incentives clause in any
            contract for the destruction of the United States stockpile of
            lethal chemical agents and munitions carried out pursuant to
            section 1412 of the Department of Defense Authorization Act,
            1986 (50 U.S.C. 1521).
                (2) Purpose.--The purpose of a clause referred to in
            paragraph (1) is to provide the contractor for a chemical
            demilitarization facility an incentive to accelerate the safe
            elimination of the United States chemical weapons stockpile and
            to reduce the total cost of the Chemical Demilitarization
            Program by providing incentive payments for the early completion
            of destruction operations and the closure of such facility.

        (b) Incentives Clauses.--
                (1) In general.--An incentives clause under this section
            shall permit the contractor for the chemical demilitarization
            facility concerned the opportunity to earn incentive payments
            for the completion of destruction operations and facility
            closure

    [[Page 120 STAT. 2361]]

            activities within target incentive ranges specified in such
            clause.
                (2) Limitation on incentive payments.--The maximum incentive
            payment under an incentives clause with respect to a chemical
            demilitarization facility may not exceed amounts as follows:
                        (A) In the case of an incentive payment for the
                    completion of destruction operations within the target
                    incentive range specified in such clause, $110,000,000.
                        (B) In the case of an incentive payment for the
                    completion of facility closure activities within the
                    target incentive range specified in such clause,
                    $55,000,000.
                (3) Target ranges.--An incentives clause in a contract under
            this section shall specify the target incentive ranges of costs
            for completion of destruction operations and facility closure
            activities, respectively, as jointly agreed upon by the
            contracting officer and the contractor concerned. An incentives
            clause shall require a proportionate reduction in the maximum
            incentive payment amounts in the event that the contractor
            exceeds an agreed-upon target cost if such excess costs are the
            responsibility of the contractor.
                (4) Calculation of incentive payments.--The amount of the
            incentive payment earned by a contractor for a chemical
            demilitarization facility under an incentives clause under this
            section shall be based upon a determination by the Secretary on
            how early in the target incentive range specified in such clause
            destruction operations or facility closure activities, as the
            case may be, are completed.
                (5) Consistency with existing obligations.--The provisions
            of any incentives clause under this section shall be consistent
            with the obligation of the Secretary of Defense under section
            1412(c)(1)(A) of the Department of Defense Authorization Act,
            1986, to provide for maximum protection for the environment, the
            general public, and the personnel who are involved in the
            destruction of the lethal chemical agents and munitions.
                (6) Additional terms and conditions.--In negotiating the
            inclusion of an incentives clause in a contract under this
            section, the Secretary may include in such clause such
            additional terms and conditions as the Secretary considers
            appropriate.

        (c) Additional Limitation on Payments.--
                (1) Payment conditional on performance.--No payment may be
            made under an incentives clause under this section unless the
            Secretary determines that the contractor concerned has
            satisfactorily performed its duties under such incentives
            clause.
                (2) Payment contingent on appropriations.--An incentives
            clause under this section shall specify that the obligation of
            the Government to make payment under such incentives clause is
            subject to the availability of appropriations for that purpose.
            Amounts appropriated for Chemical Agents and Munitions
            Destruction, Defense, shall be available for payments under
            incentives clauses under this section.

    [[Page 120 STAT. 2362]]

    SEC. 924. CHEMICAL DEMILITARIZATION PROGRAM CONTRACTING AUTHORITY.

        (a) Multiyear Contracting Authority.--The Secretary of Defense may
    carry out responsibilities under section 1412(a) of the Department of
    Defense Authorization Act, 1986 (50 U.S.C. 1521(a)) through multiyear
    contracts entered into before the date of the enactment of this Act.
        (b) Availability of Funds.--Contracts entered into under subsection
    (a) shall be funded through annual appropriations for the destruction of
    chemical agents and munitions.

                    Subtitle D--Intelligence-Related Matters

    SEC. 931. FOUR-YEAR EXTENSION OF AUTHORITY OF SECRETARY OF DEFENSE
                            TO ENGAGE IN COMMERCIAL ACTIVITIES AS
                            SECURITY FOR INTELLIGENCE COLLECTION
                            ACTIVITIES.

        Section 431(a) of title 10, United States Code, is amended by
    striking ``December 31, 2006'' and inserting ``December 31, 2010''.
    SEC. 932. ANNUAL REPORTS ON INTELLIGENCE OVERSIGHT ACTIVITIES OF
                            THE DEPARTMENT OF DEFENSE.

        (a) In General.--Subchapter I of chapter 21 of title 10, United
    States Code, is amended by adding at the end the following new section:

    ``Sec. 427. Intelligence oversight activities of Department of Defense:
                            annual reports

        ``(a) Annual Reports Required.--(1) Not later than March 1 of each
    year, the Secretary of Defense shall submit--
                ``(A) to the congressional committees specified in
            subparagraph (A) of paragraph (2) a report on the intelligence
            oversight activities of the Department of Defense during the
            previous calendar year insofar as such oversight activities
            relate to tactical intelligence and intelligence-related
            activities of the Department; and
                ``(B) to the congressional committees specified in
            subparagraph (B) of paragraph (2) a report on the intelligence
            oversight activities of the Department of Defense during the
            previous calendar year insofar as such oversight activities
            relate to intelligence and intelligence-related activities of
            the Department other than those specified in subparagraph (A).

        ``(2)(A) The committees specified in this subparagraph are the
    following:
                ``(i) The Committee on Armed Services and the Committee on
            Appropriations of the Senate.
                ``(ii) The Permanent Select Committee on Intelligence, the
            Committee on Armed Services, and the Committee on Appropriations
            of the House of Representatives.

        ``(B) The committees specified in this subparagraph are the
    following:
                ``(i) The Select Committee on Intelligence, the Committee on
            Armed Services, and the Committee on Appropriations of the
            Senate.
                ``(ii) The Permanent Select Committee on Intelligence and
            the Committee on Appropriations of the House of Representatives.

    [[Page 120 STAT. 2363]]

        ``(b) Elements.--Each report under subsection (a) shall include, for
    the calendar year covered by such report and with respect to oversight
    activities subject to coverage in that report, the following:
                ``(1) A description of any violation of law or of any
            Executive order or Presidential directive (including Executive
            Order No. 12333) that comes to the attention of any General
            Counsel or Inspector General within the Department of Defense,
            or the Under Secretary of Defense for Intelligence, and a
            description of the actions taken by such official with respect
            to such activity.
                ``(2) A description of the results of intelligence oversight
            inspections undertaken by each of the following:
                        ``(A) The Office of the Secretary of Defense.
                        ``(B) Each military department.
                        ``(C) Each combat support agency.
                        ``(D) Each field operating agency.
                ``(3) A description of any changes made in any program for
            the intelligence oversight activities of the Department of
            Defense, including any training program.
                ``(4) A description of any changes made in any published
            directive or policy memoranda on the intelligence or
            intelligence-related activities of--
                        ``(A) any military department;
                        ``(B) any combat support agency; or
                        ``(C) any field operating agency.

        ``(c) Definitions.--In this section:
                ``(1) The term `intelligence oversight activities of the
            Department of Defense' refers to any activity undertaken by an
            agency, element, or component of the Department of Defense to
            ensure compliance with regard to requirements or instructions on
            the intelligence and intelligence-related activities of the
            Department under law or any Executive order or Presidential
            directive (including Executive Order No. 12333).
                ``(2) The term `combat support agency' has the meaning given
            that term in section 193(f) of this title.
                ``(3) The term `field operating agency' means a specialized
            subdivision of the Department of Defense that carries out
            activities under the operational control of the Department.''.

        (b) Clerical Amendment.--The table of sections at the beginning of
    such subchapter is amended by adding at the end the following new item:

    ``427. Intelligence oversight activities of Department of Defense:
               annual reports.''.

    SEC. 933. COLLECTION BY NATIONAL SECURITY AGENCY OF SERVICE
                            CHARGES FOR CERTIFICATION OR VALIDATION OF
                            INFORMATION ASSURANCE PRODUCTS.

        The National Security Agency Act of 1959 (50 U.S.C. 402 note) is
    amended by adding at the end the following new section:
        ``Sec. 20. (a) The Director may collect charges for evaluating,
    certifying, or validating information assurance products under the
    National Information Assurance Program or successor program.
        ``(b) <<NOTE: Regulations.>> The charges collected under subsection
    (a) shall be established through a public rulemaking process in
    accordance with Office of Management and Budget Circular No. A-25.

        ``(c) Charges collected under subsection (a) shall not exceed the
    direct costs of the program referred to in that subsection.

    [[Page 120 STAT. 2364]]

        ``(d) The appropriation or fund bearing the cost of the service for
    which charges are collected under the program referred to in subsection
    (a) may be reimbursed, or the Director may require advance payment
    subject to such adjustment on completion of the work as may be agreed
    upon.
        ``(e) Amounts collected under this section shall be credited to the
    account or accounts from which costs associated with such amounts have
    been or will be incurred, to reimburse or offset the direct costs of the
    program referred to in subsection (a).''.

                            Subtitle E--Other Matters

    SEC. 941. DEPARTMENT OF DEFENSE POLICY ON UNMANNED SYSTEMS.

        (a) Policy Required.--The Secretary of Defense shall develop a
    policy, to be applicable throughout the Department of Defense, on
    research, development, test and evaluation, procurement, and operation
    of unmanned systems.
        (b) Elements.--The policy required by subsection (a) shall include
    or address the following:
                (1) An identification of missions and mission requirements,
            including mission requirements for the military departments and
            joint mission requirements, for which unmanned systems may
            replace manned systems.
                (2) A preference for unmanned systems in acquisition
            programs for new systems, including a requirement under any such
            program for the development of a manned system for a
            certification that an unmanned system is incapable of meeting
            program requirements.
                (3) An assessment of the circumstances under which it would
            be appropriate to pursue joint development and procurement of
            unmanned systems and components of unmanned systems.
                (4) The transition of unmanned systems unique to one
            military department to joint systems, when appropriate.
                (5) An organizational structure for effective management,
            coordination, and budgeting for the development and procurement
            of unmanned systems, including an assessment of the feasibility
            and advisability of designating a single department or other
            element of the Department of Defense to act as executive agent
            for the Department on unmanned systems.
                (6) The integration of unmanned and manned systems to
            enhance support of the missions identified in paragraph (1).
                (7) Such other matters that the Secretary of Defense
            considers to be appropriate.

        (c) Consultation.--The Secretary of Defense shall develop the policy
    required by subsection (a) in consultation with the Chairman of the
    Joint Chiefs of Staff.
        (d) Report.--Not later than 120 days after the date of the enactment
    of this Act, the Secretary shall submit to the congressional defense
    committees a report containing--
                (1) the policy required by subsection (a); and
                (2) an implementation plan for the policy that includes--
                        (A) a strategy and schedules for the replacement of
                    manned systems with unmanned systems in the performance
                    of the missions identified in the policy pursuant to
                    subsection (b)(1);

    [[Page 120 STAT. 2365]]

                        (B) establishment of programs to address technical,
                    operational, and production challenges, and gaps in
                    capabilities, with respect to unmanned systems; and
                        (C) an assessment of progress towards meeting the
                    goals identified for the subset of unmanned air and
                    ground systems established in section 220 of the Floyd
                    D. Spence National Defense Authorization Act for Fiscal
                    Year 2001 (as enacted into law by Public Law 106-398;
                    114 Stat. 1654A-38).

        (e) Unmanned Systems Defined.--In this section, the term ``unmanned
    systems'' consists of unmanned aerial systems, unmanned ground systems,
    and unmanned maritime systems.
    SEC. 942. EXECUTIVE SCHEDULE LEVEL IV FOR DEPUTY UNDER SECRETARY
                            OF DEFENSE FOR LOGISTICS AND MATERIEL
                            READINESS.

        (a) Executive Schedule Level IV.--Section 5315 of title 5, United
    States Code, is amended by inserting after the item relating to the
    Deputy Under Secretary of Defense for Personnel and Readiness the
    following new item:
                ``Deputy Under Secretary of Defense for Logistics and
            Materiel Readiness.''.

        (b) Conforming Amendment.--Section 5314 of title 5, United States
    Code, is amended by striking the item relating to the Deputy Under
    Secretary of Defense for Logistics and Materiel Readiness.
        (c) Effective Date.--The amendments made by this section shall take
    effect on the date of the enactment of this Act, and shall apply with
    respect to individuals appointed as Deputy Under Secretary of Defense
    for Logistics and Materiel Readiness on or after that date.
    SEC. 943. STUDY AND REPORT ON REFORM OF DEFENSE TRAVEL SYSTEM.

        (a) Independent Study of System.--
                (1) Study required.--Not <<NOTE: Deadline.>> later than 180
            days after the date of the enactment of this Act, the Secretary
            of Defense shall submit to the congressional defense committees
            the results and recommendations of an independent study of the
            Defense Travel System conducted to determine the most cost-
            effect method of meeting Department of Defense travel
            requirements. The study shall be conducted by an entity outside
            the Department of Defense.
                (2) Elements of study.--At a minimum, the study required by
            this subsection shall address the following:
                        (A) The feasibility of separating the financial
                    infrastructure of the Defense Travel System, including
                    voucher processing, accounting, disbursing, debt
                    collection, management accountability, and archival
                    functions, from the travel reservation process.
                        (B) The feasibility of converting the travel
                    reservation process to a fee-for-services system or
                    authorizing the use of multiple travel reservation
                    processes, all of which processes would use the
                    financial infrastructure of the Defense Travel System.
                        (C) The feasibility of making the use of the
                    financial infrastructure of the Defense Travel System
                    mandatory for all Department of Defense travel
                    transactions.

    [[Page 120 STAT. 2366]]

        (b) Implementation <<NOTE: Deadline.>> Plans.--Not later than 60
    days after the Secretary of Defense receives the independent study
    required by subsection (a), <<NOTE: Reports.>> the Secretary shall
    submit to the congressional defense committees a report describing the
    actions, if any, that the Secretary intends to take to implement the
    recommendations contained in the study. If the Secretary does not intend
    to implement any of the recommendations, the Secretary shall explain the
    basis for this decision.

        (c) Conditions on New Contract or Expenditures for Defense Travel
    System.--Except to continue operations to provide current services and
    to perform the functions described in paragraphs (1) through (3), the
    Secretary of Defense may not initiate a new contract for the Defense
    Travel System or expend funds for the Defense Travel System until each
    of the following occurs:
                (1) The Secretary submits the report required by subsection
            (b).
                (2) The Secretary develops firm, fixed requirements for the
            Defense Travel System.
                (3) The Secretary develops a schedule to phase out the
            legacy travel systems made redundant by implementation of the
            Defense Travel System.
    SEC. 944. ADMINISTRATION OF PILOT PROJECT ON CIVILIAN LINGUIST
                            RESERVE CORPS.

        (a) Transfer of Administration to Secretary of Defense.--
                (1) In general.--Administration of the pilot project on the
            establishment of a Civilian Linguist Reserve Corps required by
            section 613 of the Intelligence Authorization Act for Fiscal
            Year 2005 (Public Law 108-487; 118 Stat. 3959; 50 U.S.C. 403-1b
            note) is hereby transferred from the Director of National
            Intelligence to the Secretary of Defense.
                (2) Conforming amendments.--Section 613 of the Intelligence
            Authorization Act for Fiscal Year 2005 is amended--
                        (A) by striking ``Director of National
                    Intelligence'' each place it appears and inserting
                    ``Secretary of Defense''; and
                        (B) by striking ``Director'' each place it appears
                    and inserting ``Secretary''.

        (b) Coordination With Director of National Intelligence in
    Administration.--Subsection (a) of such section is further amended--
                (1) by inserting ``(1)'' after ``Pilot Project.--''; and
                (2) by adding at the end the following new paragraph:

        ``(2) The Secretary shall conduct the pilot project in coordination
    with the Director of National Intelligence.''.
        (c) Discharge of Project Through National Security Education
    Program.--Subsection (a) of such section is further amended by adding at
    the end the following new paragraph:
        ``(3) The Secretary shall conduct the pilot project through the
    National Security Education Program.''.
        (d) Duration of Project.--Subsection (c) of such section is amended
    by striking ``three-year period'' and inserting ``five-year period''.
        (e) Repeal of Superseded Authorization.--Such section is further
    amended by striking subsection (f).

    [[Page 120 STAT. 2367]]

    SEC. 945. IMPROVEMENT OF AUTHORITIES ON THE NATIONAL SECURITY
                            EDUCATION PROGRAM.

        (a) Expansion of Employment Creditable Under Service Agreements.--
    Paragraph (2) of subsection (b) of section 802 of the David L. Boren
    National Security Education Act of 1991 (50 U.S.C. 1902) is amended to
    read as follows:
                ``(2)(A) <<NOTE: Deadline.>> will (in accordance with
            regulations prescribed by the Secretary of Defense in
            coordination with the heads of the other Federal departments and
            agencies concerned) begin work not later than three years after
            the recipient's completion of degree study during which
            scholarship assistance was provided under the program--
                              ``(i) for not less than one year in a position
                          certified by the Secretary of Defense, in
                          coordination with the Director of National
                          Intelligence, the Secretary of Homeland Security,
                          and the Secretary of State (as appropriate), as
                          contributing to the national security of the
                          United States in the Department of Defense, any
                          element of the intelligence community, the
                          Department of Homeland Security, or the Department
                          of State; or
                              ``(ii) for not less than one year in a
                          position in a Federal agency or office that is
                          identified by the Secretary of Defense under
                          subsection (g) as having national security
                          responsibilities if the recipient demonstrates to
                          the Secretary that no position is available in the
                          departments and agencies covered by clause (i); or
                        ``(B) will (in accordance with such regulations)
                    begin work not later than two years after the
                    recipient's completion or termination of study for which
                    fellowship assistance was provided under the program--
                              ``(i) for not less than one year in a position
                          certified by the Secretary of Defense, in
                          coordination with the Director of National
                          Intelligence, the Secretary of Homeland Security,
                          and the Secretary of State (as appropriate), as
                          contributing to the national security of the
                          United States in the Department of Defense, any
                          element of the intelligence community, the
                          Department of Homeland Security, or the Department
                          of State; or
                              ``(ii) for not less than one year in a
                          position in a Federal agency or office that is
                          identified by the Secretary of Defense under
                          subsection (g) as having national security
                          responsibilities if the recipient demonstrates to
                          the Secretary that no position is available in the
                          departments and agencies covered by clause (i);
                          and''.

        (b) Temporary Employment and Retention of Certain Participants.--
    Such section is further amended--
                (1) by redesignating subsections (h) and (i) as subsections
            (i) and (j), respectively; and
                (2) by inserting after subsection (g) the following new
            subsection (h):

        ``(h) Temporary Employment and Retention of Certain Participants.--
                ``(1) In general.--The Secretary of Defense may--

    [[Page 120 STAT. 2368]]

                        ``(A) appoint or retain a person provided
                    scholarship or fellowship assistance under the program
                    in a position in the Department of Defense on an interim
                    basis during the period of the person's pursuit of a
                    degree under the program and for a period not to exceed
                    two years after completion of the degree, but only if,
                    in the case of the period after completion of the
                    degree, there is an active investigation to provide
                    security clearance to the person for an appropriate
                    permanent position in the Department of Defense under
                    subsection (b)(2); and
                        ``(B) if there is no appropriate permanent position
                    available for the person after the end of the periods
                    described in subparagraph (A), separate the person from
                    employment with the Department without regard to any
                    other provision of law, in which event the service
                    agreement of the person under subsection (b) shall
                    terminate.
                ``(2) Treatment of certain service.--The period of service
            of a person covered by paragraph (1) in a position on an interim
            basis under that paragraph shall, after completion of the
            degree, be treated as a period of service for purposes of
            satisfying the obligated service requirements of the person
            under the service agreement of the person under subsection
            (b).''.

        (c) Plan for Improving Program.--Not <<NOTE: Deadline.>> later than
    90 days after the date of the enactment of this Act, the Secretary of
    Defense shall submit to Congress a plan for improving the recruitment,
    placement, and retention within the Department of Defense of individuals
    who receive scholarships or fellowships under the David L. Boren
    National Security Education Act of 1991 (50 U.S.C. 1901 et seq.) in
    order to facilitate the purposes of that Act in meeting the requirements
    of the Department in acquiring individuals with critical foreign
    language skills and individuals who are regional experts.
    SEC. 946. REPORT ON THE POSTURE OF UNITED STATES SPECIAL
                            OPERATIONS COMMAND TO CONDUCT THE GLOBAL
                            WAR ON TERRORISM.

        (a) Findings.--Congress makes the following findings:
                (1) The 2006 Quadrennial Defense Review recommends an
            increase in the size of the United States Special Operations
            Command as a fundamental part of the efforts of the Department
            of Defense to fight the global war on terrorism.
                (2) Special operations forces conducting all nine of their
            statutory activities, as specified in section 167(j) of title
            10, United States Code, play a crucial role in the global war on
            terrorism, and the Department of Defense should take a balanced
            approach to the expansion of the force structure of that command
            to provide additional capability in both the active and reserve
            components.
                (3) Special operations forces are engaged in operations
            across the globe and in extreme and varied operational
            environments which require specialized training to successfully
            operate in those environments.
                (4) Due to the global and long-term nature of the global war
            on terrorism, the Secretary of Defense should assess whether the
            United States Special Operations Command has

    [[Page 120 STAT. 2369]]

            the appropriate force structure and training focus required for
            successful operations in the global war on terrorism.

        (b) Report on Posture of SOCOM to Conduct the Global War on
    Terrorism.--Not later than six months after the date of the enactment of
    this Act, the Secretary of Defense shall submit to the congressional
    defense committees a report assessing the posture of the United States
    Special Operations Command to conduct the global war on terrorism. The
    Secretary shall include in the report the following:
                (1) The Secretary's assessment of whether the United States
            Special Operations Command is appropriately manned, resourced,
            and equipped to successfully meet the long-term requirements of
            the global war on terrorism.
                (2) The Secretary's assessment whether the expansion of that
            command as recommended in the 2006 Quadrennial Defense Review
            provides an appropriate balance between active and reserve
            component capabilities.
                (3) The Secretary's assessment of whether United States
            Special Operations Command has sufficient Army Special Forces to
            meet the 2006 Quadrennial Defense Review objective of building
            allied and partner nation capacity through security assistance
            and other training missions such as the Joint Combined Exchange
            Training program.
                (4) A detailed statement of the efforts of the commander of
            the United States Special Operations Command to provide special
            operations forces personnel with specialized environmental
            training in preparation for operations across the globe and in
            extreme and varied operational environments such as mountain,
            jungle, or desert environments.

                           TITLE X--GENERAL PROVISIONS

                          Subtitle A--Financial Matters

    Sec. 1001. General transfer authority.
    Sec. 1002. Authorization of additional emergency supplemental
               appropriations for fiscal year 2006.
    Sec. 1003. Reduction in certain authorizations due to savings relating
               to lower inflation.
    Sec. 1004. Increase in fiscal year 2006 general transfer authority.
    Sec. 1005. United States contribution to NATO common-funded budgets in
               fiscal year 2007.
    Sec. 1006. Report on budgeting for fluctuations in fuel cost rates.
    Sec. 1007. Modification of date of submittal of OMB/CBO report on
               scoring of outlays.
    Sec. 1008. Budgeting for ongoing military operations in Afghanistan and
               Iraq.

              Subtitle B--Policy Relating to Vessels and Shipyards

    Sec. 1011. Aircraft carrier force structure.
    Sec. 1012. Sense of Congress on naming the CVN-78 aircraft carrier as
               the U.S.S. Gerald R. Ford.
    Sec. 1013. Transfer of naval vessels to foreign nations based upon
               vessel class.
    Sec. 1014. Overhaul, repair, and maintenance of vessels in foreign
               shipyards.
    Sec. 1015. Report on options for future lease arrangement for Guam
               Shipyard.
    Sec. 1016. Assessments of naval vessel construction efficiencies and of
               effectiveness of special contractor incentives.
    Sec. 1017. Obtaining carriage by vessel: criterion regarding overhaul,
               repair, and maintenance of vessels in the United States.
    Sec. 1018. Riding gang member requirements.
    Sec. 1019. Authority to transfer SS Arthur M. Huddell to the Government
               of Greece.

    [[Page 120 STAT. 2370]]

                       Subtitle C--Counter-Drug Activities

    Sec. 1021. Extension of authority of Department of Defense to provide
               additional support for counterdrug activities of other
               governmental agencies.
    Sec. 1022. Extension and expansion of Department of Defense authority to
               provide support for counter-drug activities of certain
               foreign governments.
    Sec. 1023. Extension of authority to support unified counterdrug and
               counterterrorism campaign in Colombia.
    Sec. 1024. Continuation of reporting requirement regarding Department of
               Defense expenditures to support foreign counterdrug
               activities.
    Sec. 1025. Report on interagency counter-narcotics plan for Afghanistan
               and South and Central Asian regions.
    Sec. 1026. Report on United States support for Operation Bahamas, Turks
               & Caicos.

             Subtitle D--Force Structure and Defense Policy Matters

    Sec. 1031. Improvements to Quadrennial Defense Review.
    Sec. 1032. Quarterly reports on implementation of 2006 Quadrennial
               Defense Review Report.
    Sec. 1033. Report on feasibility of establishing a regional combatant
               command for Africa.
    Sec. 1034. Determination of Department of Defense intratheater and
               intertheater airlift requirements and sealift mobility
               requirements.
    Sec. 1035. Presidential report on improving interagency support for
               United States 21st century national security missions and
               interagency operations in support of stability, security,
               transition, and reconstruction operations.

                               Subtitle E--Reports

    Sec. 1041. Additional element in annual report on chemical and
               biological warfare defense.
    Sec. 1042. Report on biodefense human capital requirements in support of
               biosafety laboratories.
    Sec. 1043. Report on technologies for neutralizing or defeating threats
               to military rotary-wing aircraft from portable air defense
               systems and rocket-propelled grenades.
    Sec. 1044. Reports on expanded use of unmanned aerial vehicles in the
               National Airspace System.
    Sec. 1045. Report on incentives to encourage certain members and former
               members of the Armed Forces to serve in the Bureau of Customs
               and Border Protection.
    Sec. 1046. Repeal of certain report requirements.
    Sec. 1047. Requirement for identification of recently enacted recurring
               reporting requirements applicable to the Department of
               Defense.

     Subtitle F--Miscellaneous Authorities and Limitations on Availability
                                and Use of Funds

    Sec. 1051. Acceptance and retention of reimbursement from non-Federal
               sources to defray Department of Defense costs of conferences.
    Sec. 1052. Increased flexibility in use of funds for Joint Staff
               exercises.
    Sec. 1053. Prohibition on parking of funds.
    Sec. 1054. Modification of authorities relating to the Special Inspector
               General for Iraq Reconstruction.

                     Subtitle G--Matters Involving Detainees

    Sec. 1061. Provision of information to Congress on certain criminal
               investigations and prosecutions involving detainees.

                            Subtitle H--Other Matters

    Sec. 1071. Technical and clerical amendments.
    Sec. 1072. Revision to authorities relating to Commission on the
               Implementation of the New Strategic Posture of the United
               States.
    Sec. 1073. Revised deadline for submission of final report of EMP
               Commission.
    Sec. 1074. Extension of returning worker exemption to H-2B numerical
               limitation.
    Sec. 1075. Patent term extensions for the badges of the American Legion,
               the American Legion Women's Auxiliary, and the Sons of the
               American Legion.
    Sec. 1076. Use of the Armed Forces in major public emergencies.
    Sec. 1077. Increased hunting and fishing opportunities for members of
               the Armed Forces, retired members, and disabled veterans.

    [[Page 120 STAT. 2371]]

                          Subtitle A--Financial Matters

    SEC. 1001. GENERAL TRANSFER AUTHORITY.

        (a) Authority to Transfer Authorizations.--
                (1) Authority.--Upon determination by the Secretary of
            Defense that such action is necessary in the national interest,
            the Secretary may transfer amounts of authorizations made
            available to the Department of Defense in this division for
            fiscal year 2007 between any such authorizations for that fiscal
            year (or any subdivisions thereof). Amounts of authorizations so
            transferred shall be merged with and be available for the same
            purposes as the authorization to which transferred.
                (2) Limitation.--The total amount of authorizations that the
            Secretary may transfer under the authority of this section may
            not exceed $4,500,000,000.

        (b) Limitations.--The authority provided by this section to transfer
    authorizations--
                (1) may only be used to provide authority for items that
            have a higher priority than the items from which authority is
            transferred; and
                (2) may not be used to provide authority for an item that
            has been denied authorization by Congress.

        (c) Effect on Authorization Amounts.--A transfer made from one
    account to another under the authority of this section shall be deemed
    to increase the amount authorized for the account to which the amount is
    transferred by an amount equal to the amount transferred.
        (d) Notice to Congress.--The Secretary shall promptly notify
    Congress of each transfer made under subsection (a).
    SEC. 1002. AUTHORIZATION OF ADDITIONAL EMERGENCY SUPPLEMENTAL
                              APPROPRIATIONS FOR FISCAL YEAR 2006.

        (a) Iraq, Afghanistan, and the Global War on Terror.--Amounts
    authorized to be appropriated to the Department of Defense for fiscal
    year 2006 in the National Defense Authorization Act for Fiscal Year 2006
    (Public Law 109-163) are hereby adjusted, with respect to any such
    authorized amount, by the amount by which appropriations pursuant to
    such authorization are increased by a supplemental appropriation, or
    decreased by a rescission, or both, or are increased by a transfer of
    funds, pursuant to title I of the Emergency Supplemental Appropriations
    Act for Defense, the Global War on Terror, and Hurricane Recovery, 2006
    (Public Law 109-234).
        (b) Hurricane Disaster Relief and Recovery.--Amounts authorized to
    be appropriated to the Department of Defense for fiscal year 2006 in the
    National Defense Authorization Act for Fiscal Year 2006 are hereby
    adjusted, with respect to any such authorized amount, by the amount by
    which appropriations pursuant to such authorization are increased by a
    supplemental appropriation, or decreased by a rescission, or both, or
    are increased by a transfer of funds, pursuant to title II of the
    Emergency Supplemental Appropriations Act for Defense, the Global War on
    Terror, and Hurricane Recovery, 2006.
        (c) Border Security.--Amounts authorized to be appropriated to the
    Department of Defense for fiscal year 2006 in the National Defense
    Authorization Act for Fiscal Year 2006 are hereby adjusted,

    [[Page 120 STAT. 2372]]

    with respect to any such authorized amount, by the amount by which
    appropriations pursuant to such authorization are increased by a
    supplemental appropriation, or decreased by a rescission, or both, or
    are increased by a transfer of funds, pursuant to title V of the
    Emergency Supplemental Appropriations Act for Defense, the Global War on
    Terror, and Hurricane Recovery, 2006.
    SEC. 1003. REDUCTION IN CERTAIN AUTHORIZATIONS DUE TO SAVINGS
                              RELATING TO LOWER INFLATION.

        (a) Reduction.--The aggregate amount authorized to be appropriated
    by titles I, II, and III is the amount equal to the sum of all the
    amounts authorized to be appropriated by such titles reduced by
    $757,051,000.
        (b) Source of Savings.--Reductions required in order to comply with
    subsection (a) shall be derived from savings resulting from lower-than-
    expected inflation as a result of a review of the inflation assumptions
    used in the preparation of the budget of the President for fiscal year
    2007, as submitted to Congress pursuant to section 1005 of title 31,
    United States Code.
        (c) Allocation of Reduction.--The Secretary of Defense shall
    allocate the reduction required by subsection (a) among the amounts
    authorized to be appropriated for accounts in titles I, II, and III to
    reflect the extent to which net savings from lower-than-expected
    inflation are allocable to amounts authorized to be appropriated to such
    accounts.
    SEC. 1004. INCREASE IN FISCAL YEAR 2006 GENERAL TRANSFER
                              AUTHORITY.

        Section 1001(a)(2) of the National Defense Authorization Act for
    Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3418) is amended by
    striking ``$3,500,000,000'' and inserting ``$5,000,000,000''.
    SEC. 1005. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED
                              BUDGETS IN FISCAL YEAR 2007.

        (a) Fiscal Year 2007 Limitation.--The total amount contributed by
    the Secretary of Defense in fiscal year 2007 for the common-funded
    budgets of NATO may be any amount up to, but not in excess of, the
    amount specified in subsection (b) (rather than the maximum amount that
    would otherwise be applicable to those contributions under the fiscal
    year 1998 baseline limitation).
        (b) Total Amount.--The amount of the limitation applicable under
    subsection (a) is the sum of the following:
                (1) The amounts of unexpended balances, as of the end of
            fiscal year 2006, of funds appropriated for fiscal years before
            fiscal year 2007 for payments for those budgets.
                (2) The amount specified in subsection (c)(1).
                (3) The amount specified in subsection (c)(2).
                (4) The total amount of the contributions authorized to be
            made under section 2501.

        (c) Authorized Amounts.--Amounts authorized to be appropriated by
    titles II and III of this Act are available for contributions for the
    common-funded budgets of NATO as follows:
                (1) Of the amount provided in section 201(1), $797,000 for
            the Civil Budget.
                (2) Of the amount provided in section 301(1), $310,277,000
            for the Military Budget.

        (d) Definitions.--For purposes of this section:

    [[Page 120 STAT. 2373]]

                (1) Common-funded budgets of nato.--The term ``common-funded
            budgets of NATO'' means the Military Budget, the Security
            Investment Program, and the Civil Budget of the North Atlantic
            Treaty Organization (and any successor or additional account or
            program of NATO).
                (2) Fiscal year 1998 baseline limitation.--The term ``fiscal
            year 1998 baseline limitation'' means the maximum annual amount
            of Department of Defense contributions for common-funded budgets
            of NATO that is set forth as the annual limitation in section
            3(2)(C)(ii) of the resolution of the Senate giving the advice
            and consent of the Senate to the ratification of the Protocols
            to the North Atlantic Treaty of 1949 on the Accession of Poland,
            Hungary, and the Czech Republic (as defined in section 4(7) of
            that resolution), approved by the Senate on April 30, 1998.
    SEC. 1006. REPORT ON BUDGETING FOR FLUCTUATIONS IN FUEL COST
                              RATES.

        (a) Secretary of Defense Report.--
                (1) Report on budgeting for fuel cost fluctuations.--Not
            later than February 15, 2007, the Secretary of Defense shall
            submit to the Committee on Armed Services of the Senate and the
            Committee on Armed Services of the House of Representatives a
            report on the fuel rate and cost projection used in the annual
            Department of Defense budget presentation.
                (2) Matters to be included.--In the report under paragraph
            (1), the Secretary shall--
                        (A) identify alternative approaches for selecting
                    fuel rates that would produce more realistic estimates
                    of amounts required to be appropriated or otherwise made
                    available for the Department of Defense to accommodate
                    fuel rate fluctuations;
                        (B) discuss the advantages and disadvantages of each
                    approach identified pursuant to subparagraph (A); and
                        (C) identify the Secretary's preferred approach
                    among the alternative identified pursuant to
                    subparagraph (A) and provide the Secretary's rationale
                    for preferring that approach.
                (3) Identification of alternative approaches.--In
            identifying alternative approaches pursuant to paragraph (2)(A),
            the Secretary shall examine--
                        (A) approaches used by other Federal departments and
                    agencies; and
                        (B) the feasibility of using private economic
                    forecasting.

        (b) Comptroller General Review and Report.--The Comptroller General
    shall review the report under subsection (a), including the basis for
    the Secretary's conclusions stated in the report, and shall submit, not
    later than March 15, 2007, to the Committee on Armed Services of the
    Senate and the Committee on Armed Services of the House of
    Representatives a report containing the results of that review.
    SEC. 1007. MODIFICATION OF DATE OF SUBMITTAL OF OMB/CBO REPORT ON
                              SCORING OF OUTLAYS.

        Section 226(a) of title 10, United States Code, is amended by
    striking ``January 15 of each year'' and inserting ``April 1 of each
    year''.

    [[Page 120 STAT. 2374]]

    SEC. 1008. BUDGETING FOR ONGOING MILITARY OPERATIONS IN
                              AFGHANISTAN AND IRAQ.

        The President's budget submitted to Congress pursuant to section
    1105(a) of title 31, United States Code, for each fiscal year after
    fiscal year 2007 shall include--
                (1) a request for the appropriation of funds for such fiscal
            year for ongoing military operations in Afghanistan and Iraq;
                (2) an estimate of all funds expected to be required in that
            fiscal year for such operations; and
                (3) a detailed justification of the funds requested.

              Subtitle B--Policy Relating to Vessels and Shipyards

    SEC. 1011. AIRCRAFT CARRIER FORCE STRUCTURE.

        (a) Reduction in Minimum Number of Operational Aircraft Carriers
    Required by Law.--Section 5062(b) of title 10, United States Code, is
    amended by striking ``12'' and inserting ``11''.
        (b) Required Certification Before Retirement of U.S.S. John F.
    Kennedy.--The Secretary of the Navy may not retire the U.S.S. John F.
    Kennedy (CV-67) from operational status unless the Secretary of Defense
    first submits to the Committee on Armed Services of the Senate and the
    Committee on Armed Services of the House of Representatives the
    Secretary's certification that the Secretary has received--
                (1) a formal notice from the Secretary of Homeland Security
            that the Department of Homeland Security does not desire to
            maintain and operate that vessel; and
                (2) a formal notice from the North Atlantic Treaty
            Organization that the North Atlantic Treaty Organization does
            not desire to maintain and operate that vessel.

        (c) Conditions on Status of U.S.S. John F. Kennedy if Retired.--Upon
    the retirement from operational status of the U.S.S. John F. Kennedy
    (CV-67), the Secretary of the Navy--
                (1) while the vessel is in the custody and control of the
            Navy, shall maintain that vessel in a state of preservation
            (including configuration control, dehumidification, cathodic
            protection, and maintenance of spares) that would allow for
            reactivation of that vessel in the event that the vessel was
            needed in response to a national emergency; and
                (2) if the vessel is transferred from the custody and
            control of the Navy, shall require as a condition of such
            transfer that--
                        (A) if the President declares a national emergency
                    pursuant to the National Emergencies Act (50 U.S.C. 1601
                    et seq.), the transferee shall, upon request of the
                    Secretary of Defense, return the vessel to the United
                    States; and
                        (B) in such a case (unless the transferee is
                    otherwise notified by the Secretary), title to the
                    vessel shall revert immediately to the United States.
    SEC. 1012. SENSE OF CONGRESS ON NAMING THE CVN-78 AIRCRAFT CARRIER
                              AS THE U.S.S. GERALD R. FORD.

        (a) Findings.--Congress makes the following findings:
                (1) Gerald R. Ford has served his country with honor and
            distinction for the past 64 years, and continues to serve.

    [[Page 120 STAT. 2375]]

                (2) Gerald R. Ford was commissioned in the Naval Reserve in
            1942 and served valiantly at sea on the U.S.S. Monterey (CVL-26)
            during World War II, taking part in major operations in the
            Pacific, including at Makin Island, Kwajalein, Truk, Saipan, and
            the Philippine Sea.
                (3) Gerald R. Ford received 9 engagement stars and 2 bronze
            stars for his service in the Navy during World War II.
                (4) Gerald R. Ford was first elected to the House of
            Representatives in 1948.
                (5) During 25 years of service in the House of
            Representatives, Gerald R. Ford distinguished himself by an
            exemplary record for character, decency, and trustworthiness.
                (6) Throughout his service in the House of Representatives,
            Gerald R. Ford was an ardent proponent of strong national
            defense and international leadership by the United States.
                (7) From 1965 to 1973, Gerald R. Ford served as minority
            leader of the House of Representatives, raising the standard for
            bipartisanship in his tireless fight for freedom, hope, and
            justice.
                (8) In 1973, Gerald R. Ford was appointed by President Nixon
            to the office of Vice President of the United States under the
            25th Amendment to the Constitution, having been confirmed by
            overwhelming majorities in both Houses of Congress.
                (9) On August 9, 1974, Gerald R. Ford became the 38th
            President of the United States, taking office during one of the
            most challenging periods in the history of the United States.
                (10) As President from August 9, 1974, to January 20, 1977,
            Gerald R. Ford restored the faith of the people of the United
            States in the office of the President through his steady
            leadership, courage, and ultimate integrity.
                (11) As President, Gerald R. Ford helped restore the
            prestige of the United States in the world community by working
            to achieve peace in the Middle East, preserve detente with the
            Soviet Union, and set new limits on the spread of nuclear
            weapons.
                (12) As President, Gerald R. Ford served as Commander in
            Chief of the Armed Forces with great dignity, supporting a
            strong Navy and a global military presence for the United States
            and honoring the members of the Armed Forces.
                (13) Since leaving the office of President, Gerald R. Ford
            has been an international ambassador of American goodwill, a
            noted scholar and lecturer, a strong supporter of human rights,
            and a promoter of higher education.
                (14) Gerald R. Ford was awarded the Medal of Freedom and the
            Congressional Gold Medal in 1999 in recognition of his
            contribution to the Nation.
                (15) As President, Gerald R. Ford bore the weight of a
            constitutional crisis and guided the Nation on a path of healing
            and restored hope, earning forever the enduring respect and
            gratitude of the Nation.

        (b) Naming of CVN-78 Aircraft Carrier.--It is the sense of Congress
    that the nuclear-powered aircraft carrier of the Navy designated as CVN-
    78 should be named the U.S.S. Gerald R. Ford.

    [[Page 120 STAT. 2376]]

    SEC. 1013. TRANSFER OF NAVAL VESSELS TO FOREIGN NATIONS BASED UPON
                              VESSEL CLASS.

        Section 7307(a) of title 10, United States Code, is amended--
                (1) by striking ``disposition of that vessel is approved''
            and inserting ``disposal of that vessel, or of a vessel of the
            class of that vessel, is authorized''; and
                (2) by adding at the end the following new sentences: ``In
            the case of an authorization by law for the disposal of such a
            vessel that names a specific vessel as being authorized for such
            disposal, the Secretary of Defense may substitute another vessel
            of the same class, if the vessel substituted has virtually
            identical capabilities as the named vessel. In the case of an
            authorization by law for the disposal of vessels of a specified
            class, the Secretary may dispose of vessels of that class
            pursuant to that authorization only in the number of such
            vessels specified in that law as being authorized for
            disposal.''.
    SEC. 1014. OVERHAUL, REPAIR, AND MAINTENANCE OF VESSELS IN FOREIGN
                              SHIPYARDS.

        Section 7310(a) of title 10, United States Code, is amended--
                (1) by inserting ``or Guam'' in the subsection heading after
            ``United States''; and
                (2) by inserting ``or Guam'' after ``in the United States''.
    SEC. 1015. REPORT ON OPTIONS FOR FUTURE LEASE ARRANGEMENT FOR GUAM
                              SHIPYARD.

        (a) Report Required.--Not later than December 15, 2006, the
    Secretary of the Navy shall submit to the Committee on Armed Services of
    the Senate and the Committee on Armed Service of the House of
    Representatives a report describing the options available with respect
    to the Guam Shipyard in Santa Rita, Guam.
        (b) Contents of Report.--The report required under subsection (a)
    shall include the following:
                (1) An evaluation of the performance of the entities that,
            as of the date of the enactment of this Act, are the lessee and
            operators of the Guam Shipyard under the terms of the lease in
            effect on the date of the enactment of this Act.
                (2) An evaluation of each of the following options with
            respect to the Guam Shipyard lease:
                        (A) Terminating the remaining term of the lease and
                    issuing a new 25 year lease with the same entity.
                        (B) Terminating the remaining term of the lease with
                    respect to the approximately 73 acres within the Guam
                    Shipyard that are required for mission requirements and
                    leaving the remaining term of the lease in effect with
                    respect to the approximately 27 acres within the
                    Facility that are not required for mission requirements.
                        (C) Terminating the remaining term of the lease and
                    negotiating a new use arrangement with a different
                    lessee or operator. The new use arrangement options
                    shall include:
                              (i) Government-owned and government-operated
                          facility.
                              (ii) Government-owned and contractor-operated
                          facility.

    [[Page 120 STAT. 2377]]

                              (iii) Government-leased property for
                          contractor-owned and contractor-operated facility.

        (c) Options for New Use Arrangements.--In evaluating the options
    under subsection (b)(2)(C), the Secretary of the Navy shall include an
    evaluation of each of the following:
                (1) The anticipated future military vessel repair and
            workload on Guam in relation to the 2006 Quadrennial Defense
            Review, issued on February 6, 2006, pursuant to section 118 of
            title 10, United States Code.
                (2) The anticipated military vessel repair and workload
            attributable to vessels comprising the Maritime Prepositioning
            Ship Squadron Three.
                (3) The anticipated military vessel repair and workload due
            to a change in section 7310 of title 10, United States Code,
            that would designate Guam as a United States homeport facility.
                (4) The expected workload if the submarine tender the U.S.S.
            Frank Cable (AS-40) is decommissioned.
                (5) The estimated reacquisition costs of transferred
            Government property.
                (6) Costs to improve floating dry dock mooring certification
            and required nuclear certification for the floating dry dock
            designated as AFDB-8 to conduct the following maintenance:
                        (A) Dry-docking selected restricted availabilities
                    and mid-term availability for attack submarines.
                        (B) Dry-docking phased maintenance availabilities
                    for amphibious vessels, including to amphibious assault
                    ships, dock landing ships, and amphibious transport dock
                    ships.
                        (C) Dry-docking phased maintenance availabilities
                    for surface combatants, including cruisers, destroyers,
                    and frigates.
                (7) Commercial opportunities for development to expand
            commercial ship repair and general industrial services, given
            anti-terrorism force protection requirements at the current
            facility.
                (8) Estimates from three contractors for the maintenance and
            repair costs associated with executing a multiship, multioption
            contract that would generate a minimum 60,000 manday commitment
            for the Department of the Navy and Military Sealift Command
            vessels.
                (9) A projection of the maintenance and repair costs
            associated with executing a minimum 60,000 mandays for the
            Department of the Navy and Military Sealift Command vessels as a
            Government-owned and Government-operated Navy ship repair
            facility.

        (d) Input From Contractors.--In evaluating the options under clauses
    (ii) and (iii) of subsection (b)(2)(C) for the purposes of paragraphs
    (1), (2), and (3) of subsection (c), the Secretary of the Navy shall
    seek input from at least three contractors on the viability of
    operations based on the projected workload fiscal years 2008 through
    2013.
        (e) Recommendations.--The Secretary of the Navy shall include in the
    report required under subsection (a) the following:
                (1) The recommendations of the Secretary with respect to
            continuation of the existing Guam Shipyard lease based on
            evaluations conducted pursuant to subsection (b)(1).

    [[Page 120 STAT. 2378]]

                (2) The option under subsection (b)(2) that the Secretary
            recommends for fiscal year 2008.

        (f) GAO Report.--Not later than March 1, 2007, the Comptroller
    General shall submit to the Committee on Armed Services of the Senate
    and the Committee on Armed Service of the House of Representatives a
    report evaluating the report submitted by the Secretary of the Navy
    under subsection (a). The report shall include the option under
    subsection (b)(2) that the Secretary recommends for fiscal year 2008.
    SEC. 1016. ASSESSMENTS OF NAVAL VESSEL CONSTRUCTION EFFICIENCIES
                              AND OF EFFECTIVENESS OF SPECIAL
                              CONTRACTOR INCENTIVES.

        (a) Assessment Required.--The Secretary of the Navy shall conduct an
    assessment of each of the aspects of naval vessel construction specified
    in subsection (b) in order to determine--
                (1) what inefficiencies exist in those aspects of naval
            vessel construction;
                (2) what innovative design and production technologies,
            processes, and performance incentives are warranted to alleviate
            the inefficiencies so identified; and
                (3) what action the Secretary intends to take to facilitate
            the adoption by the shipbuilding industry of the technologies,
            processes, and performance incentives identified under paragraph
            (2).

        (b) Aspects to Be Assessed.--Subsection (a) applies with respect to
    the following aspects of naval vessel construction:
                (1) Program design, engineering, and production engineering.
                (2) Organization and operating systems.
                (3) Steelwork production.
                (4) Ship construction and outfitting.
                (5) Combat systems development, integration, and
            installation.

        (c) Consideration of Prior Assessments.--In making the assessments
    required by subsection (a), the Secretary shall take into consideration
    the results of--
                (1) the study of the cost effectiveness of the ship
            construction program of the Navy required by section 1014 of the
            Ronald W. Reagan National Defense Authorization Act for Fiscal
            Year 2005 (Public Law 108-375; 118 Stat. 2041);
                (2) the assessment of the United States naval shipbuilding
            industry required by section 254 of the National Defense
            Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119
            Stat. 3180); and
                (3) any prior assessment performed by or on behalf of the
            Department of Defense.

        (d) Special Contractor Incentives.--In addition to the assessments
    under subsection (a), the Secretary shall conduct an assessment of the
    effectiveness of the use in naval vessel construction contracts of
    special contract incentives for investment by the contractor in
    facilities and process improvement projects. Such assessment shall
    include the following:
                (1) A description of the intent of the use of such
            incentives in naval vessel construction contracts.
                (2) A description of the process and criteria used by the
            Secretary for evaluation of proposed projects to receive such

    [[Page 120 STAT. 2379]]

            incentives in naval vessel construction contracts and for the
            selection among such proposed projects for inclusion of
            incentives in such contracts.
                (3) For each facility or process improvement project for
            which funds were provided in a naval vessel construction
            contract during the five-year period ending on the date of the
            enactment of this Act (including the facility or process
            improvement project contract incentives incorporated in the
            Virginia-class submarine construction contract and in the CVN-21
            construction contract)--
                        (A) a description of the facility or process
                    improvement project proposed by the contractor;
                        (B) the amount expended (or to be expended) by the
                    United States for the project under the contract; and
                        (C) the estimated or actual return on investment for
                    the amounts referred to in subparagraph (B).
                (4) The plans of the Secretary of the Navy to use similar
            contract incentives in ongoing and future shipbuilding programs.
                (5) Any recommendation by the Secretary for the enactment of
            legislation that might increase the effectiveness of, or expand
            the use of, such contract incentives.

        (e) Report.--Not later than April 1, 2007, the Secretary of the Navy
    shall submit to the congressional defense committees a report on--
                (1) the Secretary's assessments of naval vessel construction
            efficiencies under subsection (a), addressing each of the
            matters specified in that subsection; and
                (2) the Secretary's assessment of the effectiveness of
            special incentives for contractor investment in facilities and
            process improvement projects under subsection (d).
    SEC. 1017. OBTAINING CARRIAGE BY VESSEL: CRITERION REGARDING
                              OVERHAUL, REPAIR, AND MAINTENANCE OF
                              VESSELS IN THE UNITED STATES.

        (a) Acquisition Policy.--In order to maintain the national defense
    industrial base, the Secretary of Defense shall issue an acquisition
    policy that establishes, as a criterion required to be considered in
    obtaining carriage by vessel of cargo for the Department of Defense, the
    extent to which an offeror of such carriage had overhaul, repair, and
    maintenance work for covered vessels of the offeror performed in
    shipyards located in the United States.
        (b) Covered Vessels.--A vessel is a covered vessel of an offeror
    under this section if the vessel is--
                (1) owned, operated, or controlled by the offeror; and
                (2) qualified to engage in the carriage of cargo in the
            coastwise or non-contiguous trade under section 27 of the
            Merchant Marine Act, 1920 (46 U.S.C. 883), section 12106 of
            title 46, United States Code, and section 2 of the Shipping Act,
            1916 (46 U.S.C. App. 802).

        (c) Application of Policy.--The acquisition policy shall include
    rules providing for application of the policy to covered vessels as
    expeditiously as is practicable based on the nature of carriage
    obtained, and by no later than June 1, 2007.
        (d) Regulations.--
                (1) In general.--The Secretary shall prescribe regulations
            as necessary to carry out the acquisition policy and submit

    [[Page 120 STAT. 2380]]

            such regulations to the Committees on Armed Services of the
            Senate and the House of Representatives, by not later than June
            1, 2007.
                (2) Interim regulations.--
                        (A) In general.--The Secretary may prescribe interim
                    regulations as necessary to carry out the acquisition
                    policy. For this purpose, the Secretary is excepted from
                    compliance with the notice and comment requirements of
                    section 553 of title 5, United States Code.
                        (B) Submission to congress.--Upon the issuance of
                    interim regulations under this paragraph, the Secretary
                    shall submit to the Committees on Armed Services of the
                    Senate and the House of Representatives the interim
                    regulations and a description of the acquisition policy
                    developed (or being developed) under subsection (a).
                        (C) Expiration.--All interim regulations prescribed
                    under the authority of this paragraph that are not
                    earlier superseded by final regulations shall expire no
                    later than June 1, 2007.

        (e) Annual Report.--The Secretary, acting through the United States
    Transportation Command, shall annually submit to the Committees on Armed
    Services of the Senate and the House of Representatives a report
    regarding overhaul, repair, and maintenance performed on covered vessels
    of each offeror of carriage to which the acquisition policy applies.
        (f) Definitions.--In this section:
                (1) Foreign shipyard.--The term ``foreign shipyard'' means a
            shipyard that is not located in the United States.
                (2) United states.--The term ``United States'' means--
                        (A) any State of the United States; and
                        (B) Guam.
    SEC. 1018. RIDING GANG MEMBER REQUIREMENTS.

        (a) Requirement for Charters and Contracts.--
                (1) In general.--The Secretary of Defense may not award,
            renew, extend, or exercise an option to extend any charter of a
            vessel documented under chapter 121 of title 46, United States
            Code, for the Department of Defense, or any contract for the
            carriage of cargo by a vessel documented under that chapter for
            the Department of Defense, unless the charter or contract,
            respectively, includes provisions that allow riding gang members
            to perform work on the vessel during the effective period of the
            charter or contract only under terms, conditions, restrictions,
            and requirements that, except as provided in paragraphs (2) and
            (3), are substantially the same as those that apply under
            section 8106 of title 46, United States Code, as in effect
            immediately before the enactment of this Act, with respect to a
            vessel referred to in that section.
                (2) Limitation.--For purposes of paragraph (1) of this
            subsection, subsections (a)(1)(A)(ii), (c), and (d) of section
            8106 of title 46, United States Code, shall not apply with
            respect to a charter or contract referred to in paragraph (1).
                (3) Merchant mariner's document required.--The Secretary of
            Defense shall include in the provisions required under paragraph
            (1) a requirement that each riding gang member

    [[Page 120 STAT. 2381]]

            who performs work on the vessel must hold a merchant mariner's
            document issued under chapter 73 of title 46, United States
            Code.
                (4) Riding gang member defined.--In this subsection the term
            ``riding gang member'' has the meaning that term has in section
            8106 of title 46, United States Code, as in effect immediately
            before the enactment of this Act.

        (b) Exemptions by Secretary of Defense.--
                (1) In general.--The <<NOTE: Regulations.>> Secretary of
            Defense may issue regulations that exempt from the charter or
            contract provisions required under subsection (a) any individual
            who is on a vessel for purposes other than engaging in the
            operation or maintenance of the vessel, including an individual
            who is--
                        (A) one of the personnel who accompany, supervise,
                    guard, and maintain unit equipment aboard a ship,
                    commonly referred to as supercargo personnel;
                        (B) one of the force protection personnel of the
                    vessel;
                        (C) a specialized repair technician; or
                        (D) otherwise required by the Secretary of Defense
                    to be aboard the vessel.
                (2) Background check.--Such regulations shall include a
            requirement that any individual who is exempt under the
            regulations must pass a background check before going aboard the
            vessel, unless the individual holds a merchant mariner's
            document issued under chapter 73 of title 46, United States
            Code.
                (3) Exempted individual not treated as in addition to the
            crew.--An individual exempted under paragraph (1) shall not be
            counted as an individual in addition to the crew for the
            purposes of section 3304 of title 46, United States Code.
    SEC. 1019. AUTHORITY TO TRANSFER SS ARTHUR M. HUDDELL TO THE
                              GOVERNMENT OF GREECE.

        (a) Authority to Transfer.--The President is authorized to transfer
    the ex-Liberty ship SS Arthur M. Huddell to the Government of Greece in
    accordance with such terms and conditions as the President may
    determine.
        (b) Additional Equipment.--The President is authorized to convey
    additional equipment from other obsolete vessels of the National Defense
    Reserve Fleet to assist the Government of Greece in using the vessel
    referred to in subsection (a) as a museum exhibit.
        (c) Repair and Refurbishment in United States Shipyard.--To the
    maximum extent practicable, the President shall require, as a condition
    of the transfer of the vessel referred to in subsection (a), that the
    Government of Greece have such repair or refurbishment of the vessel as
    is needed performed at a shipyard located in the United States.

    [[Page 120 STAT. 2382]]

                       Subtitle C--Counter-Drug Activities

    SEC. 1021. EXTENSION OF AUTHORITY OF DEPARTMENT OF DEFENSE TO
                              PROVIDE ADDITIONAL SUPPORT FOR
                              COUNTERDRUG ACTIVITIES OF OTHER
                              GOVERNMENTAL AGENCIES.

        Section 1004(a) of the National Defense Authorization Act for Fiscal
    Year 1991 (10 U.S.C. 374 note) is amended by striking ``through 2006''
    and inserting ``through 2011''.
    SEC. 1022. EXTENSION AND EXPANSION OF DEPARTMENT OF DEFENSE
                              AUTHORITY TO PROVIDE SUPPORT FOR
                              COUNTER-DRUG ACTIVITIES OF CERTAIN
                              FOREIGN GOVERNMENTS.

        (a) Extension of Authority.--Paragraph (2) of subsection (a) of
    section 1033 of the National Defense Authorization Act for Fiscal Year
    1998 (Public Law 105-85; 111 Stat. 1881), as amended by section 1021 of
    the National Defense Authorization Act for Fiscal Year 2004 (Public Law
    108-136: 117 Stat. 1593), is amended by striking ``September 30, 2006''
    and inserting ``September 30, 2008''.
        (b) Additional Governments Eligible To Receive Support.--Subsection
    (b) of such section is amended by adding at the end the following new
    paragraphs:
                ``(10) The Government of Azerbaijan.
                ``(11) The Government of Kazakhstan.
                ``(12) The Government of Kyrgyzstan.
                ``(13) The Government of Armenia.
                ``(14) The Government of Guatemala.
                ``(15) The Government of Belize.
                ``(16) The Government of Panama.''.

        (c) Types of Support.--Subsection (c) of such section is amended--
                (1) in paragraph (2), by inserting ``, vehicles, and,
            subject to section 484(a) of the Foreign Assistance Act of 1961
            (22 U.S.C. 2291c(a)), aircraft'' after ``patrol boats''; and
                (2) by adding at the end the following new paragraphs:
                ``(4) The transfer of detection, interception, monitoring,
            and testing equipment.
                ``(5) For the Government of Afghanistan only, individual and
            crew-served weapons of 50 caliber or less and ammunition for
            such weapons for counter-narcotics security forces.''.

        (d) Maximum Annual Amount of Support.--Subsection (e)(2) of such
    section is amended--
                (1) by striking ``or $40,000,000'' and inserting
            ``$40,000,000''; and
                (2) by inserting before the period at the end the following:
            ``, or $60,000,000 during either of the fiscal years 2007 and
            2008''.
    SEC. 1023. EXTENSION OF AUTHORITY TO SUPPORT UNIFIED COUNTERDRUG
                              AND COUNTERTERRORISM CAMPAIGN IN
                              COLOMBIA.

        Section 1021 of the Ronald W. Reagan National Defense Authorization
    Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2042) is
    amended--
                (1) in subsection (a)(1), by striking ``and 2006'' and
            inserting ``through 2008''; and

    [[Page 120 STAT. 2383]]

                (2) in subsection (c), by striking ``and 2006'' and
            inserting ``through 2008''.
    SEC. 1024. CONTINUATION OF REPORTING REQUIREMENT REGARDING
                              DEPARTMENT OF DEFENSE EXPENDITURES TO
                              SUPPORT FOREIGN COUNTERDRUG ACTIVITIES.

        (a) Two-Year Extension of Reporting Requirement.--Section 1022 of
    the Floyd D. Spence National Defense Authorization Act for Fiscal Year
    2001 (as enacted into law by Public Law 106-398; 114 Stat. 1654A-255),
    as amended by section 1022 of the National Defense Authorization Act for
    Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1215) and section 1021
    of the National Defense Authorization Act for Fiscal Year 2006 (Public
    Law 109-163; 119 Stat. 3426), is further amended by striking ``Not later
    than April 15, 2006,'' and inserting ``(a) Reports Required.--Not later
    than April 15, 2006, February 15, 2007, and February 15, 2008,''.
        (b) Additional Information to Be Included.--Such section is further
    amended--
                (1) by designating the second sentence as subsection (b) and
            striking ``The report'' and inserting ``Information to Be
            Provided.--Each report under this section''; and
                (2) in paragraph (2), by inserting before the period at the
            end the following: ``and the amount of funds provided for each
            type of counterdrug activity assisted''.

        (c) Form and Submission of Reports.--Such section is further
    amended--
                (1) in subsection (a), as designated by subsection (a) of
            this section, by striking ``the congressional defense
            committees'' and inserting ``the congressional committees
            specified in subsection (d)''; and
                (2) by adding at the end the following new subsections:

        ``(c) Form of Reports.--Each report under this section shall be
    submitted in both classified and unclassified form.
        ``(d) Specified Committees.--The congressional committees specified
    in this subsection are the following:
                ``(1) The Committee on Armed Services, the Committee on
            Foreign Relations, and the Committee on Appropriations of the
            Senate.
                ``(2) The Committee on Armed Services, the Committee on
            International Relations, and the Committee on Appropriations of
            the House of Representatives.''.
    SEC. 1025. REPORT ON INTERAGENCY COUNTER-NARCOTICS PLAN FOR
                              AFGHANISTAN AND SOUTH AND CENTRAL ASIAN
                              REGIONS.

        (a) Report Required.--Not later than December 31, 2006, the
    Secretary of Defense shall submit to the congressional defense
    committees a report updating the interagency counter-narcotics
    implementation plan for Afghanistan and the South and Central Asian
    regions, including Turkmenistan, Uzbekistan, Tajikistan, Kyrgyzstan,
    Kazakhstan, Iran, Armenia, Azerbaijan, Pakistan, India, and China.
        (b) Consultation.--The report under this section shall be prepared
    in consultation with the Secretary of State, the Administrator of the
    Agency for International Development, and the Director of the Drug
    Enforcement Administration.

    [[Page 120 STAT. 2384]]

        (c) Matters to Be Included.--The report shall include the following
    for each foreign government covered by the report:
                (1) A consideration of what activities should be reallocated
            among the United States and the foreign government based on the
            capabilities of each department and agency involved.
                (2) Any measures necessary to clarify the legal authority
            required to complete the mission.
                (3) The measures necessary for the United States to
            successfully complete its counter-narcotics efforts in
            Afghanistan and the South and Central Asian regions, including
            an assessment of whether sufficient personnel and other
            resources, including infrastructure and development initiatives,
            are being made available by the United States and the foreign
            government.
                (4) Current and proposed United States funding to support
            counter-narcotics activities of the foreign government.
    SEC. 1026. REPORT ON UNITED STATES SUPPORT FOR OPERATION BAHAMAS,
                              TURKS & CAICOS.

        (a) Findings.--Congress makes the following findings:
                (1) In 1982 the United States Government created Operation
            Bahamas, Turks & Caicos (OPBAT) to counter the smuggling of
            cocaine into the United States.
                (2) According to the Drug Enforcement Agency, an estimated
            80 percent of the cocaine entering the United States in the
            1980s came through the Bahamas, whereas, according to the Office
            of National Drug Control Policy, only an estimated 10 percent
            comes through the Bahamas today.
                (3) According to the Drug Enforcement Agency, more than
            80,000 kilograms of cocaine and nearly 700,000 pounds of
            marijuana have been seized in Operation Bahamas, Turks & Caicos
            since 1986, with a combined street value of approximately two
            billion dollars.
                (4) The Army has provided military airlift to law
            enforcement officials under Operation Bahamas, Turks & Caicos to
            create an effective, reliable, and immediate response capability
            for drug interdiction. This support is largely responsible for
            the decline in cocaine shipments to the United States through
            the Bahamas.
                (5) The Bahamas is an island nation composed of
            approximately 700 islands and keys, which makes aviation assets
            the best and most efficient method of transporting law
            enforcement agents and interdicting smugglers.
                (6) It is in the interests of the United States to maintain
            the results of the successful Operation Bahamas, Turks & Caicos
            program and prevent drug smugglers from rebuilding their
            operations through the Bahamas.

        (b) Report on United States Government Support for OPBAT.--
                (1) Report on decision to withdraw.--Not later than 30 days
            before implementing a decision to withdraw Department of Defense
            helicopters from Operation Bahamas, Turks & Caicos, the
            Secretary of Defense shall submit to the Congress a report
            outlining the plan for the coordination of the Operation
            Bahamas, Turks & Caicos mission, at the same level of
            effectiveness, using other United States Government assets.

    [[Page 120 STAT. 2385]]

                (2) Consultation.--The Secretary of Defense shall consult
            with the Secretary of State, the Attorney General, and the
            Secretary of Homeland Security, and with other appropriate
            officials of the United States Government, in preparing the
            report under paragraph (1).
                (3) Elements.--The report under paragraph (1) on the
            withdrawal of equipment referred to in that paragraph shall
            include the following:
                        (A) An explanation of the military justification for
                    the withdrawal of the equipment.
                        (B) An assessment of the availability of other
                    options (including other Government helicopters) to
                    provide the capability being provided by the equipment
                    to be withdrawn.
                        (C) An explanation of how each option specified
                    under subparagraph (B) will provide the capability
                    currently provided by the equipment to be withdrawn.
                        (D) An assessment of the potential use of unmanned
                    aerial vehicles in Operation Bahamas, Turks & Caicos,
                    including the capabilities of such vehicles and any
                    advantages or disadvantages associated with the use of
                    such vehicles in that operation, and a recommendation on
                    whether or not to deploy such vehicles in that
                    operation.

             Subtitle D--Force Structure and Defense Policy Matters

    SEC. 1031. IMPROVEMENTS TO QUADRENNIAL DEFENSE REVIEW.

        (a) Findings.--Congress finds that the comprehensive examination of
    the defense program and policies of the United States that is undertaken
    by the Security Defense every four years pursuant to section 118 of
    title 10, United States Code, known as the Quadrennial Defense Review,
    is--
                (1) vital in laying out the strategic military planning and
            threat objectives of the Department of Defense; and
                (2) critical to identifying the correct mix of military
            planning assumptions, defense capabilities, and strategic
            focuses for the Armed Forces.

        (b) Sense of Congress.--It is the sense of Congress that the
    Quadrennial Defense Review is intended to provide more than an overview
    of global threats and the general strategic orientation of the
    Department of Defense.
        (c) Conduct of Review.--Subsection (b) of section 118 of title 10,
    United States Code, is amended--
                (1) by striking ``and'' at the end of paragraph (2);
                (2) by striking the period at the end of paragraph (3) and
            inserting ``; and''; and
                (3) by adding at the end the following new paragraph:
                ``(4) to make recommendations that are not constrained to
            comply with the budget submitted to Congress by the President
            pursuant to section 1105 of title 31.''.

        (d) Additional Elements in Report to Congress.--Subsection (d) of
    such section is amended--
                (1) in paragraph (1), by inserting ``, the strategic
            planning guidance,'' after ``United States'';

    [[Page 120 STAT. 2386]]

                (2) by redesignating paragraphs (9) through (15) as
            paragraphs (10), (11), (12), (13), (14), (15), and (17),
            respectively;
                (3) by inserting after paragraph (8) the following new
            paragraph (9):
                ``(9) The specific capabilities, including the general
            number and type of specific military platforms, needed to
            achieve the strategic and warfighting objectives identified in
            the review.''; and
                (4) by inserting after paragraph (15), as redesignated by
            paragraph (2), the following new paragraph:
                ``(16) The homeland defense and support to civil authority
            missions of the active and reserve components, including the
            organization and capabilities required for the active and
            reserve components to discharge each such mission.''.

        (e) CJCS Review.--Subsection (e)(1) of such section is amended by
    inserting before the period at the end the following: ``and a
    description of the capabilities needed to address such risk''.
        (f) Independent Assessment.--Such section is further amended by
    adding at the end the following new subsection:
        ``(f) Independent Panel Assessment.--(1) <<NOTE: Deadlines.>> Not
    later than six months before the date on which the report on a
    Quadrennial Defense Review is to be submitted under subsection (d), the
    Secretary of Defense shall establish a panel to conduct an assessment of
    the quadrennial defense review.

        ``(2) Not later than three months after the date on which the report
    on a quadrennial defense review is submitted under subsection (d) to the
    congressional committees named in that subsection, the panel appointed
    under paragraph (1) shall submit to those committees an assessment of
    the review, including the recommendations of the review, the stated and
    implied assumptions incorporated in the review, and the vulnerabilities
    of the strategy and force structure underlying the review. The
    assessment of the panel shall include analyses of the trends,
    asymmetries, and concepts of operations that characterize the military
    balance with potential adversaries, focusing on the strategic approaches
    of possible opposing forces.''.
    SEC. 1032. QUARTERLY REPORTS ON IMPLEMENTATION OF 2006 QUADRENNIAL
                              DEFENSE REVIEW REPORT.

        (a) Reports Required.--Not later than 30 days after the end of each
    fiscal-year quarter, the Secretary of Defense shall submit to the
    Committee on Armed Services of the Senate and the Committee on Armed
    Services of the House of Representatives a report on the implementation
    of recommendations described in the Department of Defense 2006
    Quadrennial Defense Review Report.
        (b) Contents of Reports.--Each quarterly report under subsection (a)
    shall, at a minimum--
                (1) describe the processes and procedures established by the
            Secretary of Defense to examine the various recommendations
            referred to in subsection (a);
                (2) discuss implementation plans and strategies for each
            area highlighted by the Quadrennial Defense Review Report;
                (3) provide relevant information about the status of such
            implementation; and
                (4) indicate changes in the Secretary's assessment of the
            defense strategies or capabilities required since the
            publication of the 2006 Quadrennial Defense Review Report.

    [[Page 120 STAT. 2387]]

        (c) Initial Report.--The first report under subsection (a) shall be
    submitted not later than January 31, 2007.
        (d) Expiration of Requirement.--The reporting requirement in
    subsection (a) shall terminate upon the earlier of the following:
                (1) The date of the publication of the next Quadrennial
            Defense Review Report after the date of the enactment of this
            Act pursuant to section 118 of title 10, United States Code.
                (2) The date of transmission of a written notification by
            the Secretary of Defense to the Committee on Armed Services of
            the Senate and the Committee on Armed Services of the House of
            Representatives that implementation of the recommendations of
            the 2006 Quadrennial Defense Review is complete.
    SEC. 1033. REPORT ON FEASIBILITY OF ESTABLISHING A REGIONAL
                              COMBATANT COMMAND FOR AFRICA.

        (a) Report Required.--Not later than 180 days after the date of the
    enactment of this Act, the Secretary of Defense shall submit to the
    Committee on Armed Services of the Senate and the Committee on Armed
    Services of the House of Representatives a report on the establishment
    under chapter 6 of title 10, United States Code, of a new unified
    combatant command with a geographic area of responsibility consisting of
    the African continent and adjacent waters.
        (b) Content.--The report under subsection (a) shall include--
                (1) a study on the feasibility and advisability of
            establishing a combatant command for Africa as described in
            subsection (a);
                (2) an assessment of the benefits and problems associated
            with establishing such a command; and
                (3) an estimate of the costs, time, and resources needed to
            establish such a command.
    SEC. 1034. DETERMINATION OF DEPARTMENT OF DEFENSE INTRATHEATER AND
                              INTERTHEATER AIRLIFT REQUIREMENTS AND
                              SEALIFT MOBILITY REQUIREMENTS.

        (a) Determination of Requirements.--The Secretary of Defense, as
    part of the 2006 Mobility Capabilities Study, shall determine Department
    of Defense mobility requirements as follows:
                (1) The Secretary shall determine intratheater and
            intertheater airlift mobility requirements (stated in terms of
            million ton miles per day) and sealift mobility requirements
            (stated in terms of tons) necessary to support warfighting
            objectives of the commanders of the combatant commands for each
            scenario that was modeled in the 2005 Mobility Capabilities
            Study and each scenario that is modeled in the 2006 Mobility
            Capabilities Study.
                (2) The Secretary shall determine intratheater and
            intertheater airlift mobility requirements (stated in terms of
            million ton miles per day) and sealift mobility requirements
            (stated in terms of tons) for executing the National Military
            Strategy with a low acceptable level of risk, with a medium
            acceptable level of risk, and with a high acceptable level of
            risk, for each of the following:
                        (A) Two overlapping ``swift defeat'' campaigns.
                        (B) The Global War on Terrorism.
                        (C) Baseline security posture operations.

    [[Page 120 STAT. 2388]]

                        (D) Homeland defense and civil support operations.
                        (E) Special operations missions.
                        (F) Global long-range strike missions.
                        (G) Strategic nuclear missions.

        (b) Report.--Not later than February 1, 2007, the Secretary of
    Defense shall submit to the congressional defense committees a report
    providing the mobility requirements determined pursuant to subsection
    (a). As part of the report, the Secretary shall--
                (1) set forth each mobility requirement specified in
            paragraph (1) or (2) of subsection (a); and
                (2) compare those defined mobility requirements to the
            Department of Defense's mobility capability program of record
            for intertheater and intratheater airlift and sealift.

        (c) Mobility Capabilities Studies.--For purposes of this section:
                (1) 2006 mobility capabilities study.--The term ``2006
            Mobility Capabilities Study'' means the studies conducted by the
            Secretary of Defense and the Joint Staff during 2006 as a
            follow-on to the 2005 Mobility Capabilities Study.
                (2) 2005 mobility capabilities study.--The term ``2005
            Mobility Capabilities Study'' means the comprehensive Mobility
            Capabilities Study completed in December 2005 and conducted
            through the Office of Program Analysis and Evaluation of the
            Department of Defense to assess mobility needs for all aspects
            of the National Defense Strategy.
    SEC. 1035. PRESIDENTIAL REPORT ON IMPROVING INTERAGENCY SUPPORT
                              FOR UNITED STATES 21ST CENTURY NATIONAL
                              SECURITY MISSIONS AND INTERAGENCY
                              OPERATIONS IN SUPPORT OF STABILITY,
                              SECURITY, TRANSITION, AND RECONSTRUCTION
                              OPERATIONS.

        (a) Report Required.--Not later than April 1, 2007, the President
    shall submit to Congress a report on building interagency capacity and
    enhancing the integration of civilian capabilities of the executive
    branch with the capabilities of the Armed Forces to enhance the
    achievement of United States national security goals and objectives.
        (b) Report Elements.--The report under subsection (a) shall include
    the following:
                (1) An assessment of the capacity and capabilities required
            within the civilian agencies of the United States Government to
            achieve the full range of United States national security goals
            and objectives, to defend United States national security
            interests, and, in particular, to coordinate with the Armed
            Forces where deployed, including capacity and capabilities in at
            least the following areas:
                        (A) Organizations and organizational structures,
                    including a description of the roles, responsibilities,
                    and authorities;
                        (B) Planning and assessment capabilities;
                        (C) Information sharing policies, practices, and
                    systems;
                        (D) Leadership issues, including command and control
                    of forces and personnel in the field;

    [[Page 120 STAT. 2389]]

                        (E) Personnel policies and systems, including those
                    pertaining to recruiting, retention, training,
                    education, promotion, awards, employment, deployment,
                    and retirement; and
                        (F) Acquisition authorities, including identifying
                    any economies of scale that could be gained by improved
                    coordination of acquisition activities and replicating
                    ``best practices'', as appropriate.
                (2) The criteria and considerations used to evaluate
            progress in each of the areas specified in paragraph (1) towards
            building interagency capacity and capabilities and integrating
            such capabilities across the United States Government to enhance
            the achievement of United States national security goals and
            objectives.
                (3) Recommendations for specific legislative proposals that
            would build interagency capacity by--
                        (A) addressing statutory or budgetary impediments,
                    if any, to the improvement of interagency cooperation
                    and coordination in order to carry out the full range of
                    national security missions (including stability,
                    security, transition, and reconstruction operations);
                    and
                        (B) providing means to enhance the integration of
                    civilian capabilities with the capabilities of deployed
                    elements of the Armed Forces for each of those national
                    security missions.

        (c) Additional Report Elements.--The report under subsection (a)
    shall include a portion dedicated to efforts to address the near-term
    need to strengthen interagency operations in support of stability,
    security, transition, and reconstruction operations, including a plan to
    establish interagency operating procedures for the departments and
    agencies of the United States Government for the planning and conduct of
    stability, security, transition, and reconstruction operations. Such
    plan shall include the following:
                (1) A delineation of the roles, responsibilities, and
            authorities of the departments and agencies of the United States
            Government for stability, security, transition, and
            reconstruction operations.
                (2) A description of operational processes for setting
            policy direction for stability, security, transition, and
            reconstruction operations in order to guide--
                        (A) operational planning and funding decisions of
                    those departments and agencies;
                        (B) integration of civilian and military planning
                    efforts;
                        (C) integration of programs and activities into an
                    implementation plan;
                        (D) oversight of policy implementation;
                        (E) provision of guidance to field-level personnel
                    on program direction and priorities; and
                        (F) monitoring of field implementation of assistance
                    programs.
                (3) A description of available capabilities and resources of
            each department and agency of the United States Government that
            could be used in support of stability, security, transition, and
            reconstruction operations and identification of additional
            resources needed to support the conduct of such operations.

    [[Page 120 STAT. 2390]]

                (4) A description of how the capabilities and resources of
            the departments and agencies of the United States Government
            will be coordinated to support stability, security, transition,
            and reconstruction operations.
                (5) A description of existing, or planned, protocols between
            departments and agencies of the United States Government on the
            utilization and allocation of assets in field operations that
            support stability, security, transition, and reconstruction
            operations.
                (6) Recommendations for improving interagency training,
            education, and simulation exercises in order to adequately
            prepare civilian and military personnel in the departments and
            agencies of the United States Government to perform stability,
            security, transition, and reconstruction operations.
                (7) Guidance for the implementation of the plan.

        (d) Form of Report.--To the maximum extent practicable, the report
    shall be unclassified, with a classified annex, if necessary.

                               Subtitle E--Reports

    SEC. 1041. ADDITIONAL ELEMENT IN ANNUAL REPORT ON CHEMICAL AND
                              BIOLOGICAL WARFARE DEFENSE.

        Section 1703(b) of the National Defense Authorization Act for Fiscal
    Year 1994 (50 U.S.C. 1523(b)) is amended by adding at the end the
    following new paragraph:
                ``(10) A description of the coordination and integration of
            the program of the Defense Advanced Research Projects Agency
            (DARPA) on basic and applied research and advanced technology
            development on chemical and biological warfare defense
            technologies and systems under section 1701(c)(2) with the
            overall program of the Department of Defense on chemical and
            biological warfare defense, including--
                        ``(A) an assessment of the degree to which the DARPA
                    program is coordinated and integrated with, and supports
                    the objectives and requirements of, the overall program
                    of the Department of Defense; and
                        ``(B) the means by which the Department determines
                    the level of such coordination and support.''.
    SEC. 1042. REPORT ON BIODEFENSE HUMAN CAPITAL REQUIREMENTS IN
                              SUPPORT OF BIOSAFETY LABORATORIES.

        (a) Study Required.--The Secretary of Defense shall conduct a study
    to determine the Department of Defense human capital requirements for
    pending capital programs to construct biodefense laboratories at
    Biosafety Level (BSL) 3 and Biosafety Level 4 or to expand current
    biodefense laboratories to such biosafety levels.
        (b) Elements.--In conducting the study, the Secretary shall address
    the following:
                (1) The number of trained research and support staff, by
            discipline and qualification level, including researchers,
            laboratory technicians, animal handlers, facility managers,
            facility or equipment maintainers, biosecurity personnel
            (including biosafety, physical, and electronic security
            personnel), and other safety personnel required--
                        (A) for existing biodefense laboratories at
                    Biosafety Level 3 and Biosafety Level 4; and

    [[Page 120 STAT. 2391]]

                        (B) to manage biodefense research efforts to combat
                    bioterrorism at the biodefense laboratories described in
                    subsection (a).
                (2) Plans to recruit and retain skilled personnel, in
            numbers sufficient to meet requirements described in paragraph
            (1)(B).
                (3) A forecast of the training required to provide the
            personnel described by paragraph (1)(B) in time to meet the
            scheduled openings of the biodefense laboratories described in
            subsection (a), including--
                        (A) the types of training required;
                        (B) the length of training required; and
                        (C) the training sources.

        (c) Report.--Not later than 180 days after the date of the enactment
    of this Act, the Secretary shall submit to the Committees on Armed
    Services of the Senate and House of Representatives a report setting
    forth the results of the study conducted under this section.
    SEC. 1043. REPORT ON TECHNOLOGIES FOR NEUTRALIZING OR DEFEATING
                              THREATS TO MILITARY ROTARY-WING AIRCRAFT
                              FROM PORTABLE AIR DEFENSE SYSTEMS AND
                              ROCKET-PROPELLED GRENADES.

        (a) Report Required.--Not later than 180 days after the date of the
    enactment of this Act, the Secretary of Defense shall submit to the
    congressional defense committees a report on technologies for
    neutralizing or defeating threats to military rotary-wing aircraft posed
    by portable air defense systems and rocket-propelled grenades that are
    being researched, developed, employed, or considered by the United
    States Government or the North Atlantic Treaty Organization.
        (b) Content.--The report under subsection (a) shall include the
    following:
                (1) An assessment of the expected value and utility of the
            technologies referred to in subsection (a), particularly with
            respect to--
                        (A) the saving of lives;
                        (B) the ability to reduce the vulnerability of
                    aircraft; and
                        (C) the enhancement of the ability of aircraft and
                    their crews to accomplish assigned missions.
                (2) An assessment of the potential costs of developing and
            deploying such technologies.
                (3) A description of efforts undertaken to develop such
            technologies, including--
                        (A) nonlethal countermeasures;
                        (B) lasers and other systems designed to dazzle,
                    impede, or obscure threatening weapons or their users;
                        (C) direct fire response systems;
                        (D) directed energy weapons; and
                        (E) passive and active systems.
                (4) A description of any impediment to the development of
            such technologies, such as legal restrictions under the law of
            war, treaty restrictions under the Protocol on Blinding Lasers,
            and political obstacles such as the reluctance of other allied
            countries to pursue such technologies.

    [[Page 120 STAT. 2392]]

    SEC. 1044. REPORTS ON EXPANDED USE OF UNMANNED AERIAL VEHICLES IN
                              THE NATIONAL AIRSPACE SYSTEM.

        (a) Findings.--Congress makes the following findings:
                (1) Unmanned aerial vehicles (UAVs) serve Department of
            Defense intelligence, surveillance, reconnaissance, and combat
            missions.
                (2) Operational reliability of unmanned aerial systems
            continues to improve, and development and fielding of so-called
            sense-and-avoid technology should continue in order to provide
            unmanned aerial systems with an appropriate level of safety.
                (3) Unmanned aerial vehicles have the potential to support
            the Nation's homeland defense mission, border security mission,
            and natural disaster recovery efforts.

        (b) Reports.--
                (1) DOD report.--Not later than one year after the date of
            the enactment of this Act, the Secretary of Defense shall submit
            to the relevant congressional committees a report on the actions
            of the Department of Defense to develop standards for the
            testing and operation of unmanned aerial vehicles in the
            National Airspace System.
                (2) FAA report.--Not later than one year after the date of
            the enactment of this Act, the Administrator of the Federal
            Aviation Administration shall submit to the relevant
            congressional committees a report on progress in developing a
            policy for testing and a plan for achieving wider access by
            unmanned aerial vehicles that are appropriately equipped to
            operate in the National Airspace System
                (3) Relevant congressional committee.--For the purposes of
            this subsection, the relevant congressional committees are the
            following:
                        (A) The Committee on Armed Services, the Committee
                    on Commerce, the Committee on Science and
                    Transportation, and the Committee on Homeland Security
                    and Governmental Affairs of the Senate.
                        (B) The Committee on Armed Services, the Committee
                    on Energy and Commerce, the Committee on Government
                    Reform, and the Committee on Transportation and
                    Infrastructure of the House of Representatives.
    SEC. 1045. REPORT ON INCENTIVES TO ENCOURAGE CERTAIN MEMBERS AND
                              FORMER MEMBERS OF THE ARMED FORCES TO
                              SERVE IN THE BUREAU OF CUSTOMS AND
                              BORDER PROTECTION.

        (a) Report Required.--Not later than 60 days after the date of the
    enactment of this Act, the Secretary of Homeland Security and the
    Secretary of Defense shall jointly submit to the congressional
    committees specified in subsection (e) a report assessing the
    desirability and feasibility of offering incentives to members and
    former members of the Armed Forces described in subsection (b) for the
    purpose of encouraging such members to serve in the Bureau of Customs
    and Border Protection of the Department of Homeland Security.
        (b) Covered Members and Former Members.--The members and former
    members of the Armed Forces to be covered by the report under subsection
    (a) are the following:
                (1) Members of the reserve components of the Armed Forces.

    [[Page 120 STAT. 2393]]

                (2) Former members of the Armed Forces within two years of
            separation from service in the Armed Forces.

        (c) Requirements and Limitations.--
                (1) Nature of incentives.--In considering incentives for
            purposes of the report required by subsection (a), the
            Secretaries shall consider such incentives as the Secretaries
            jointly consider appropriate, whether or not such incentives are
            monetary or otherwise and whether or not such incentives are
            authorized by current law or regulations.
                (2) Targeting of incentives.--In assessing any incentive for
            purposes of the report, the Secretaries shall give particular
            attention to the utility of such incentive in--
                        (A) encouraging service in the Bureau of Customs and
                    Border Protection after service in the Armed Forces by
                    members and former members of the Armed Forces described
                    in subsection (b) who provided border patrol or border
                    security assistance to the Bureau as part of their
                    duties as members of the Armed Forces; and
                        (B) leveraging military training and experience by
                    accelerating training, or allowing credit to be applied
                    to related areas of training, required for service with
                    the Bureau of Customs and Border Protection.
                (3) Payment.--In assessing incentives for purposes of the
            report, the Secretaries shall assume that any costs of such
            incentives shall be borne by the Department of Homeland
            Security.

        (d) Elements.--The report required by subsection (a) shall include
    the following:
                (1) A description of various monetary and non-monetary
            incentives considered for purposes of the report.
                (2) An assessment of the desirability and feasibility of
            utilizing any such incentive for the purpose specified in
            subsection (a), including an assessment of the particular
            utility of such incentive in encouraging service in the Bureau
            of Customs and Border Protection after service in the Armed
            Forces by members and former members of the Armed Forces
            described in subsection (c)(2)(A).
                (3) Any other matters that the Secretaries jointly consider
            appropriate.

        (e) Submission of Report.--The report required by subsection (a)
    shall be submitted to--
                (1) the Committee on Armed Services, the Committee on
            Homeland Security and Governmental Affairs, and the Committee on
            Appropriations of the Senate; and
                (2) the Committee on Armed Services, the Committee on
            Homeland Security, and the Committee on Appropriations of the
            House of Representatives.
    SEC. 1046. REPEAL OF CERTAIN REPORT REQUIREMENTS.

        (a) Annual Report on Aviation Career Incentive Pay.--Section 301a of
    title 37, United States Code, is amended by striking subsection (f).
        (b) Annual Report on Effects of Certain Initiatives on Recruitment
    and Retention.--
                (1) Repeal.--Section 1015 of title 37, United States Code,
            is repealed.

    [[Page 120 STAT. 2394]]

                (2) Clerical amendment.--The table of sections at the
            beginning of chapter 19 of such title is amended by striking the
            item relating to section 1015.

        (c) Secretary of Defense Recommendation on Need for Defense Impact
    Review Process.--Section 1041 of the National Defense Authorization Act
    for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1217) is repealed.
        (d) Report on Pilot Program To Enhance Military Recruiting by
    Improving Military Awareness of School Counselors and Educators.--
    Section 564 of the Floyd D. Spence National Defense Authorization Act
    for Fiscal Year 2001 (as enacted into law by Public Law 106-398 (114
    Stat. 1654A-133; 10 U.S.C. 503 note)) is amended by striking subsection
    (c).
        (e) Annual Report on Medical Informatics.--Section 723(d) of the
    National Defense Authorization Act for Fiscal Year 2000 (Public Law 106-
    65; 10 U.S.C. 1071 note) is amended--
                (1) by striking paragraph (5); and
                (2) by redesignating paragraphs (6) and (7) as paragraphs
            (5) and (6), respectively.
    SEC. 1047. REQUIREMENT FOR IDENTIFICATION OF RECENTLY ENACTED
                              RECURRING REPORTING REQUIREMENTS
                              APPLICABLE TO THE DEPARTMENT OF DEFENSE.

        (a) Identification and Submittal to Congressional Committees.--
                (1) In general.--Not <<NOTE: Deadline.>> later than March 1,
            2007, the Secretary of Defense shall submit to the Committee on
            Armed Services of the Senate and the Committee on Armed Services
            of the House of Representatives a listing of each provision of
            law specified in paragraph (2).
                (2) Covered provisions of law.--Paragraph (1) applies with
            respect to any provision of law enacted on or after November 24,
            2003 (the date of the enactment of the National Defense
            Authorization Act for Fiscal Year 2004 (Public Law 108-136)),
            and before February 1, 2007, that requires the submission by the
            Secretary of Defense or any other official of the Department of
            Defense of annual, semiannual, or other periodic reports to one
            or more of the congressional defense committees.

        (b) Additional Matter To Be Submitted.--The Secretary of Defense
    shall include with the listing submitted under subsection (a) the
    following:
                (1) With respect to each provision of law covered by that
            subsection, a description of the report requirement under that
            provision.
                (2) For each such report requirement--
                        (A) an assessment by the Secretary--
                              (i) of the burden imposed on the Department of
                          Defense by the preparation of the report; and
                              (ii) of the utility of such report from the
                          perspective of the Department of Defense; and
                        (B) a recommendation on the advisability of
                    repealing or modifying the requirement for the submittal
                    of such report.

        (c) Definition.--In this section, the term ``report'' has the
    meaning given that term in section 480(c) of title 10, United States
    Code.

    [[Page 120 STAT. 2395]]

     Subtitle F--Miscellaneous Authorities and Limitations on Availability
                                and Use of Funds

    SEC. 1051. ACCEPTANCE AND RETENTION OF REIMBURSEMENT FROM NON-
                              FEDERAL SOURCES TO DEFRAY DEPARTMENT OF
                              DEFENSE COSTS OF CONFERENCES.

        (a) In General.--Subchapter II of chapter 134 of title 10, United
    States Code, is amended by adding at the end the following new section:

    ``Sec. 2262. Department of Defense conferences: collection of fees to
                            cover Department of Defense costs

        ``(a) Authority to Collect Fees.--(1) The Secretary of Defense may
    collect fees from any individual or commercial participant in a
    conference, seminar, exhibition, symposium, or similar meeting conducted
    by the Department of Defense (in this section referred to collectively
    as a `conference').
        ``(2) The Secretary may provide for the collection of fees under
    this section directly or by contract. The fees may be collected in
    advance of a conference.
        ``(b) Use of Collected Fees.--Amounts collected under subsection (a)
    with respect to a conference shall be credited to the appropriation or
    account from which the costs of the conference are paid and shall be
    available to pay the costs of the Department of Defense with respect to
    the conference or to reimburse the Department for costs incurred with
    respect to the conference.
        ``(c) Treatment of Excess Amounts.--In the event the total amount of
    fees collected under subsection (a) with respect to a conference exceeds
    the actual costs of the Department of Defense with respect to the
    conference, the amount of such excess shall be deposited into the
    Treasury as miscellaneous receipts.
        ``(d) Annual Reports.--(1) Not later than 45 days after the
    President submits to Congress the budget for a fiscal year under section
    1105 of title 31, the Secretary of Defense shall submit to the
    congressional defense committees a budget justification document
    summarizing the use of the fee-collection authority provided by this
    section.
        ``(2) Each report shall include the following:
                ``(A) A list of all conferences conducted during the
            preceding two calendar years for which fees were collected under
            this section.
                ``(B) For each conference included on the list under
            subparagraph (A):
                        ``(i) The estimated costs of the Department for the
                    conference.
                        ``(ii) The actual costs of the Department for the
                    conference, including a separate statement of the amount
                    of any conference coordinator fees associated with the
                    conference.
                        ``(iii) The amount of fees collected under this
                    section for the conference.

    [[Page 120 STAT. 2396]]

                ``(C) An estimate of the number of conferences to be
            conducted during the calendar year in which the report is
            submitted for which the Department will collect fees under this
            section.''.

        (b) Clerical Amendment.--The table of sections at the beginning of
    subchapter II of chapter 134 of such title is amended by adding at the
    end the following new item:

    ``2262. Department of Defense conferences: collection of fees to cover
               Department of Defense costs.''.

    SEC. 1052. INCREASED FLEXIBILITY IN USE OF FUNDS FOR JOINT STAFF
                              EXERCISES.

        (a) In General.--Amounts available to the Chairman of the Joint
    Chiefs of Staff for joint staff exercises may be available for any
    expenses as follows:
                (1) Expenses of the Armed Forces in connection with such
            exercises, including expense relating to self-deploying
            watercraft under the jurisdiction of a military department.
                (2) Expenses relating to the costs of port support
            activities in connection with such exercises, including
            transportation and port handling.
                (3) Expenses relating to the breakout and operation of
            prepositioned watercraft and lighterage for joint logistics and
            over the shore exercises in connection with such exercises.

        (b) Supplement Not Supplant.--Any amounts made available by the
    Chairman of the Joint Chiefs of Staff under subsection (a) for expenses
    covered by that subsection are in addition to any other amounts
    available under law for such expenses.
    SEC. 1053. PROHIBITION ON PARKING OF FUNDS.

        (a) Prohibition.--
                (1) In general.--Chapter 165 of title 10, United States
            Code, is amended by inserting after section 2773a the following
            new section:

    ``Sec. 2773b. Parking of funds: prohibition; penalties

        ``(a) Prohibition.--An officer or employee of the Department of
    Defense may not direct the designation of funds for a particular purpose
    in the budget of the President, as submitted to Congress pursuant to
    section 1105 of title 31, or the supporting documents of the Department
    of Defense component of such budget, with the knowledge or intent that
    such funds, if made available to the Department, will not be used for
    the purpose for which they are designated.
        ``(b) Penalties.--The direction of the designation of funds in
    violation of the prohibition in subsection (a) shall be treated for
    purposes of chapter 13 of title 31 as a violation of section
    1341(a)(1)(A) of such title.''.
                (2) Clerical amendment.--The table of sections at the
            beginning of chapter 165 of such title is amended by inserting
            after the item relating to section 2773a the following new item:

    ``2773b. Parking of funds: prohibition; penalties.''.

        (b) Effective Date.--

    [[Page 120 STAT. 2397]]

                (1) In general.--The amendments made by subsection (a) shall
            take effect on the date that is 31 days after the date of the
            enactment of this Act.
                (2) Modification of certain policies and regulations.--
            Not <<NOTE: Deadline.>> later than 30 days after the date of the
            enactment of this Act, the Secretary of Defense shall modify the
            policies and regulations of the Department of Defense regarding
            the preparation and submittal to Congress of budget materials
            for the Department of Defense to take into account section 2773b
            of title 10, United States Code, as added by subsection (a).
    SEC. 1054. MODIFICATION OF AUTHORITIES RELATING TO THE SPECIAL
                              INSPECTOR GENERAL FOR IRAQ
                              RECONSTRUCTION.

        (a) Duties.--For purposes of carrying out the duties of the Special
    Inspector General for Iraq Reconstruction under section 3001(f) of the
    Emergency Supplemental Appropriations Act for Defense and for the
    Reconstruction of Iraq and Afghanistan, 2004 (Public Law 108-106; 117
    Stat. 1235 et seq.; 5 U.S.C. App., note to section 8G of Public Law 95-
    452), any United States funds appropriated or otherwise made available
    for fiscal year 2006 for the reconstruction of Iraq, irrespective of the
    designation of such funds, shall be deemed to be amounts appropriated or
    otherwise made available to the Iraq Relief and Reconstruction Fund.
        (b) Termination.--Section 3001(o) of the Emergency Supplemental
    Appropriations Act for Defense and for the Reconstruction of Iraq and
    Afghanistan, 2004 (Public Law 108-106; 117 Stat. 1238; 5 U.S.C. App.,
    note to section 8G of Public Law 95-452) is amended to read as follows:
        ``(o) Termination.--The Office of the Inspector General shall
    terminate on October 1, 2007, with transition operations authorized to
    continue through December 31, 2007.''.

                     Subtitle G--Matters Involving Detainees

    SEC. 1061. PROVISION OF INFORMATION TO CONGRESS ON CERTAIN
                              CRIMINAL INVESTIGATIONS AND PROSECUTIONS
                              INVOLVING DETAINEES.

        (a) Annual Report.--Subsection (c) of section 1093 of the Ronald W.
    Reagan National Defense Authorization Act for Fiscal Year 2005 (Public
    Law 108-375; 118 Stat. 2070) is amended--
                (1) in paragraph (1), by inserting ``, or any prosecution on
            account of,'' after ``Notice of any investigation into''; and
                (2) by adding at the end the following new paragraph:
                ``(3) For each investigation or prosecution described in
            paragraph (1) with respect to which notice is included in the
            report--
                        ``(A) a detailed and comprehensive description of
                    such investigation or prosecution and any resulting
                    judicial or nonjudicial punishment or other disciplinary
                    action; and
                        ``(B) if the individual receiving the punishment or
                    disciplinary action is a member of the Armed Forces, the
                    grade of that individual (i) as of the time of the
                    incident resulting in the investigation or prosecution,
                    (ii) as of the beginning of the investigation or
                    prosecution, and (iii) as of the submission of the
                    report.''.

    [[Page 120 STAT. 2398]]

        (b) Timely Submission of Covered Information.--Such section is
    further amended by adding at the end the following new subsection:
        ``(f) Additional Reporting.--In addition to the annual report under
    subsection (c), the Secretary of Defense shall submit to the committees
    named in that subsection regular and timely reports on the matters
    described in paragraphs (1) and (3) of that subsection.''.

                            Subtitle H--Other Matters

    SEC. 1071. TECHNICAL AND CLERICAL AMENDMENTS.

        (a) Title 10, United States Code.--Title 10, United States Code, is
    amended as follows:
                (1) Section 115 is amended--
                        (A) by striking the second subsection (i) (added by
                    section 512(b) of Public Law 108-375 (118 Stat. 1880));
                    and
                        (B) by adding at the end of subsection (i) the
                    following new paragraph:
                ``(13) Members of the National Guard on full-time National
            Guard duty involuntarily and performing homeland defense
            activities under chapter 9 of title 32.''.
                (2) Sections 133(c)(1), 2225(f)(1), 2302c(b),
            2304(f)(1)(B)(iii), 2359a(i), and 2382(c)(3)(A) are amended by
            striking ``section 16(3) of the Office of Federal Procurement
            Policy Act (41 U.S.C. 414(3))'' and inserting ``section 16(c) of
            the Office of Federal Procurement Policy Act (41 U.S.C.
            414(c))''.
                (3) Section 426(a)(1)(B) is amended by striking
            ``coordiation'' and inserting ``coordination''.
                (4) Section 843(b)(2) is amended--
                        (A) in subparagraph (B)(iii), by striking ``article
                    126'' and inserting ``article 125''; and
                        (B) in subparagraph (C), by striking ``under chapter
                    110 or 117, or under section 1591, of title 18'' and
                    inserting ``under chapter 110 or 117 of title 18 or
                    under section 1591 of that title''.
                (5) Section 1107a(a) is amended--
                        (A) by redesignating subparagraphs (A) and (B) as
                    paragraphs (1) and (2), respectively; and
                        (B) in paragraph (2), as so redesignated, by
                    striking ``subparagraph (A)'' and inserting ``paragraph
                    (1)''.
                (6) Section 1217(a) is amended by striking ``the date of''
            and all that follows and inserting ``October 28, 2004.''.
                (7) Section 1406(i)(3)(B)(vi) is amended by striking
            ``Advisor for'' and inserting ``Advisor to''.
                (8) Section 1448(d)(6)(A) is amended by striking the second
            comma after ``November 23, 2003''.
                (9) Section 2006(b)(1) is amended--
                        (A) by inserting ``of this title'' after ``and
                    1607''; and
                        (B) by striking ``of this title'' before the period
                    at the end.
                (10) Section 2103a(b) is amended in the subsection heading
            by striking ``Eligibilty'' and inserting ``Eligibility''.
                (11) Section 2105 is amended by adding a period at the end
            of the last sentence.

    [[Page 120 STAT. 2399]]

                (12) The item relating to section 2152 in the table of
            sections at the beginning of chapter 107 is amended to read as
            follows:

    ``2152. Joint professional military education: general requirements.''.

                (13) The heading for section 2155, and the item relating to
            that section in the table of sections at the beginning of
            chapter 107, are amended by capitalizing the first letter of the
            fifth word.
                (14) Section 2155(a) is amended in the subsection heading by
            inserting ``Phase'' after ``Education''.
                (15) Section 2157 is amended by striking ``phase II'' in
            paragraph (1) and inserting ``Phase II''.
                (16) Section 2216(b)(1) is amended by striking
            ``subsections'' and inserting ``subsection''.
                (17) The heading for section 2440 is amended so that the
            first letter of each word after the first is lower case.
                (18) The item relating to section 2481 in the table of
            sections at the beginning of subchapter I of chapter 147 is
            amended by adding a period at the end.
                (19)(A) The second section 2613 (added by section 1051(a) of
            Public Law 108-375 (118 Stat. 2053)) is redesignated as section
            2614 and is amended by redesignating the second subsection (c)
            as subsection (d).
                (B) The item relating to such section in the table of
            sections at the beginning of chapter 155 is revised to reflect
            the redesignation of such section by subparagraph (A).
                (20) Section 2613(b) is amended by striking ``In the'' and
            inserting ``In this''.
                (21) Section 2692(b)(9) is amended by striking ``materiel''
            and inserting ``material''.
                (22) Section 2694a(c) is amended in the subsection heading
            by striking ``Revisionary'' and inserting ``Reversionary''.
                (23) Section 2703(h) is amended by striking ``subsection''
            in the first sentence and inserting ``section''.
                (24) Section 2722(c)(2) is amended by striking ``section
            921'' and inserting ``section 921(a)''.
                (25) Section 2784a(a)(2) is amended by striking ``care'' and
            inserting ``card''.
                (26) Section 2831(f)(2) is amended by striking
            ``enviromental'' and inserting ``environmental''.
                (27) Section 3911(b) is amended--
                        (A) in paragraph (1), by striking the second comma
                    after ``paragraph (2)''; and
                        (B) in paragraph (2), by striking ``the date of the
                    enactment of the National Defense Authorization Act for
                    Fiscal Year 2006'' and inserting ``January 6, 2006,''.
                (28) Section 4342(a)(9) is amended by striking ``cadet'' and
            inserting ``cadets''.
                (29) Section 4544(d) is amended in the subsection heading by
            striking ``Arangement'' and inserting ``Arrangement''.
                (30) Section 4687(c) is amended by striking ``section
            921(10)'' and inserting ``section 921(a)(10)''.
                (31) The item relating to section 6086 in the table of
            sections at the beginning of chapter 557 is amended by striking
            the semicolon and inserting a colon.

    [[Page 120 STAT. 2400]]

                (32) The table of sections at the beginning of chapter 561
            is amended--
                        (A) in the item relating to section 6154, by
                    striking the semicolon and inserting a colon; and
                        (B) by striking the item relating to section 6161
                    and inserting the following:

    ``6161. Settlement of accounts: remission or cancellation of
               indebtedness of members.''.

                (33) Section 6323(a)(2) is amended--
                        (A) in subparagraph (A), by striking the second
                    comma after ``subparagraph (B)''; and
                        (B) in subparagraph (B), by striking ``the date of
                    the enactment of the National Defense Authorization Act
                    for Fiscal Year 2006'' and inserting ``January 6,
                    2006,''.
                (34) The item relating to section 6965 in the table of
            sections at the beginning of chapter 603 is amended by striking
            the semicolon and inserting a colon.
                (35) The item relating to section 7081 in the table of
            sections at the beginning of chapter 607 is amended by striking
            the first semicolon and inserting a colon.
                (36) Section 7306b(b)(1) is amended by striking ``section
            2(14)'' and inserting ``section 3(14)''.
                (37) Section 8911(b) is amended--
                        (A) in paragraph (1), by striking the second comma
                    after ``paragraph (2)''; and
                        (B) in paragraph (2), by striking ``the date of the
                    enactment of the National Defense Authorization Act for
                    Fiscal Year 2006'' and inserting ``January 6, 2006,''.
                (38) Section 9342(a)(9) is amended by striking ``cadet'' and
            inserting ``cadets''.
                (39) Section 9355(c)(1) is amended by striking ``board'' and
            inserting ``Board''.
                (40) Section 12731(a)(3) is amended by striking ``before the
            end of the 180-day period beginning on the date of the enactment
            of the National Defense Authorization Act for Fiscal Year 2005''
            and inserting ``before April 25, 2005''.
                (41) Section 12741 is amended by striking ``under subsection
            (b)'' in subsections (c) and (d) and inserting ``under
            subsection (a)''.
                (42) Section 18233(f)(2) is amended by striking the comma
            after ``purchase''.

        (b) Title 32, United States Code.--Title 32, United States Code, is
    amended as follows:
                (1) Section 902 is amended by striking ``(a)'' before ``The
            Secretary''.
                (2) Section 908(b)(1) is amended by striking ``subsection
            (i)'' and inserting ``subsection (i)(13)''.

        (c) Title 37, United States Code.--Title 37, United States Code, is
    amended as follows:
                (1) Section 210(c)(6) is amended by striking ``Advisor for''
            and inserting ``Advisor to''.
                (2) Section 301(f)(2)(C) is amended by striking the comma
            after ``the term''.
                (3) Section 308g(f) is amended by striking the second period
            at the end.

    [[Page 120 STAT. 2401]]

                (4) Section 308j is amended by striking subsection (g) and
            inserting the following new subsection:

        ``(g) Repayment.--A person who enters into an agreement under this
    section and receives all or part of the bonus under the agreement, but
    who does not accept a commission or an appointment as an officer or does
    not commence to participate or does not satisfactorily participate in
    the Selected Reserve for the total period of service specified in the
    agreement, shall be subject to the repayment provisions of section
    303a(e) of this title.''.
                (5) The table of sections at the beginning of chapter 7 is
            amended--
                        (A) by striking the item relating to section 407 and
                    inserting the following:

    ``407. Travel and transportation allowances: dislocation allowance.'';
               and

                        (B) by striking the item relating to section 425 and
                    inserting the following:

    ``425. United States Navy Band; United States Marine Corps Band:
               allowances while on concert tour.''.

                (6) Section 402a(b)(3)(B) is amended by striking ``section
            310 of this section'' and inserting ``section 310 of this
            title''.
                (7) Section 414(c) is amended by striking ``, or the Senior
            Enlisted Advisor for the Chairman of the Joint Chiefs of Staff''
            before the period at the end.
                (8) The heading of section 1010 is amended to read as
            follows:

    ``Sec. 1010. Commissioned officers: promotions; effective date for pay
                            and allowances''.

        (d) Public Law 109-272.--Effective as of August 14, 2006, and as if
    included therein as enacted, section 2(a) of Public Law 109-272 (120
    Stat. 770; 16 U.S.C. 431 note) is amended by striking ``division E'' and
    inserting ``division J''.
        (e) National Defense Authorization Act for Fiscal Year 2006.--
    Effective as of January 6, 2006, and as if included therein as enacted,
    the National Defense Authorization Act for Fiscal Year 2006 (Public Law
    109-163) is amended as follows:
                (1) Section 341(e) (119 Stat. 3199) is amended by striking
            ``(a)(1)(E)'' and inserting ``(a)(1)(F)''.
                (2) Section 545(b) (119 Stat. 3254) is amended by striking
            ``title''.
                (3) Section 606(a) (119 Stat. 3287; 37 U.S.C. 211 note) is
            amended by striking ``title 10'' and inserting ``title 37''.
                (4) Section 608(b) (119 Stat. 3289) is amended--
                        (A) in paragraph (1), by striking ``the first
                    sentence'' and inserting ``the second sentence''; and
                        (B) in paragraph (2), by striking ``the second
                    sentence'' and inserting ``the third sentence''.
                (5) Section 685(a) (119 Stat. 3325) is amended by striking
            ``Advisor for'' both places it appears and inserting ``Advisor
            to''.
                (6) Section 687(a)(2) (119 Stat. 3327) is amended by
            striking ``subsection (a)'' and inserting ``subsection (e)''.
                (7) Section 687(b)(15) (119 Stat. 3330) is amended--
                        (A) by striking ``Subsection (d)'' and inserting
                    ``Subsection (e)''; and

    [[Page 120 STAT. 2402]]

                        (B) in the matter inserted by that section, by
                    striking ``(d) Repayment.--'' and inserting ``(e)
                    Repayment.--''.
                (8) Section 740(c) (119 Stat. 3359; 10 U.S.C. 1073 note) is
            amended by inserting ``include'' after ``shall''.

        (f) Reconciliation of Duplicate Enactments.--
                (1) In executing to section 2554 of title 10, United States
            Code, the identical amendments made by section 8126(c)(2) of
            Public Law 109-148 (119 Stat. 2729) and section 1058(c) of
            Public Law 109-163 (119 Stat. 3443), such amendments shall be
            executed so as to appear only once in the law as amended.
                (2) In executing to section 109 of the Housing and Community
            Development Act of 1974 the identical amendments made by section
            8126(d) of Public Law 109-148 (119 Stat. 2730) and section
            1058(d) of Public Law 109-163 (119 Stat. 3443), such amendments
            shall be executed so as to appear only once in the law as
            amended.
                (3) Section 8126 of Public Law 109-148 (119 Stat. 2728) is
            repealed.

        (g) Ronald W. Reagan National Defense Authorization Act for Fiscal
    Year 2005.--Effective as of October 28, 2004, and as if included therein
    as enacted, the Ronald W. Reagan National Defense Authorization Act for
    Fiscal Year 2005 (Public Law 108-375) is amended as follows:
                (1) Section 416 is amended--
                        (A) in subsection (a)(1) (118 Stat. 1866), by
                    inserting ``the second place it appears'' before the
                    semicolon at the end; and
                        (B) in subsection (g)(1) (118 Stat. 1868), by
                    inserting open quotation marks before ``(1) Reserve''.
                (2) Subsections (a)(2), (b)(2), and (c)(2) of section 544
            (118 Stat. 1906) are amended by striking ``such title'' and
            inserting ``such chapter''.
                (3) Section 554(1) (118 Stat. 1913) is amended by inserting
            ``of'' in the quoted matter after ``a period''.
                (4) Section 593(a) (118 Stat. 1934; 10 U.S.C. 503 note) is
            amended in the subsection heading by striking ``Screeing'' and
            inserting ``Screening''.
                (5) Section 645 (118 Stat. 1962; 10 U.S.C. 1448 note) is
            amended by redesignating the last subsection (relating to
            definitions) as subsection (j).
                (6) Section 651(a)(5)(C) (118 Stat. 1966) is amended by
            striking ``subsection (f)'' and inserting ``subsection (e)''.
                (7) Section 726(b)(1) (118 Stat. 1992) is amended by
            striking ``(1)'' in the second quoted matter.
                (8) Section 731 (118 Stat. 1993; 10 U.S.C. 1074 note) is
            amended by striking ``this title'' each place it appears in
            subsections (a), (b)(3)(C), and (c)(1)(A) and inserting ``this
            subtitle''.
                (9) Section 733(b)(2) (118 Stat. 1998; 10 U.S.C. 1074f note)
            is amended by striking ``section 1301'' and inserting ``section
            731(b)''.
                (10) Section 801(b)(2)(A) (118 Stat. 2004) is amended--
                        (A) by striking ``(7), (8), and (9)'' and inserting
                    ``(7) and (8)''; and
                        (B) by striking ``(8), (9), and (10)'' and inserting
                    ``(8) and (9)''.

    [[Page 120 STAT. 2403]]

                (11) Section 818(b) (118 Stat. 2016) is amended by inserting
            ``of subsection (b)'' after ``Paragraph (3)''.
                (12) Section 1103(a)(1) (118 Stat. 2072) is amended by
            inserting ``basic'' after ``rates of'' in the first quoted
            matter.
                (13) Section 1203(e)(2)(B) (118 Stat. 2079) is amended by
            inserting ``office'' after ``and field'' in the first quoted
            matter.

        (h) Bob Stump National Defense Authorization Act for Fiscal Year
    2003.--Section 806(d) of the Bob Stump National Defense Authorization
    Act for Fiscal Year 2003 (10 U.S.C. 2302 note) is amended in the
    subsection heading by striking ``Statues'' and inserting ``Statutes''.
        (i) Coordination With Other Amendments.--For purposes of applying
    amendments made by provisions of this Act other than provisions of this
    section, this section shall be treated as having been enacted
    immediately before the other provisions of this Act.
    SEC. 1072. REVISION TO AUTHORITIES RELATING TO COMMISSION ON THE
                              IMPLEMENTATION OF THE NEW STRATEGIC
                              POSTURE OF THE UNITED STATES.

        Section 1051 of the National Defense Authorization Act for Fiscal
    Year 2006 (Public Law 109-163; 119 Stat. 3431) is amended--
                (1) in subsection (c)(1), by striking ``June 30, 2007'' and
            inserting ``September 30, 2007''; and
                (2) in subsection (f), by striking ``July 30, 2007'' and
            inserting ``November 30, 2007''.
    SEC. 1073. REVISED DEADLINE FOR SUBMISSION OF FINAL REPORT OF EMP
                              COMMISSION.

        Section 1403(a) of the Floyd D. Spence National Defense
    Authorization Act for Fiscal Year 2001 (as enacted into law by Public
    Law 106-398; 114 Stat. 1654A-346), as amended by section 1052(f) of the
    National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-
    163; 119 Stat. 3434), is amended by striking ``June 30, 2007'' and
    inserting ``September 30, 2007''.
    SEC. 1074. EXTENSION OF RETURNING WORKER EXEMPTION TO H-2B
                              NUMERICAL LIMITATION.

        (a) In General.--Section 214(g)(9) of the Immigration and
    Nationality Act (8 U.S.C. 1184(g)(9)) is amended--
                (1) by amending the first sentence of subparagraph (A) to
            read as follows: ``Subject to subparagraphs (B) and (C), an
            alien who has already been counted toward the numerical
            limitation of paragraph (1)(B) during fiscal year 2004, 2005, or
            2006 shall not again be counted toward such limitation during
            fiscal year 2007.''; and
                (2) in subparagraph (B), by striking ``referred to in
            subparagraph (A)'' and inserting ``to admit or otherwise provide
            status under section 101(a)(15)(H)(ii)(b)''.

        (b) Deletion of Prior Sunset Provision.--Section 402(b)(1) of the
    Save Our Small and Seasonal Businesses Act of 2005 (title IV of division
    B of Public Law 109-13; 119 Stat. 318; 8 U.S.C. 1184 note) is amended by
    striking ``2004,'' and all that follows through the period at the end
    and inserting ``2004.''.
        (c) Effective Date.--The amendments made by this section shall take
    effect on October 1, 2006. If this section is enacted after October 1,
    2006, the amendments made by this section shall take effect as if
    enacted on such date.

    [[Page 120 STAT. 2404]]

    SEC. 1075. PATENT TERM EXTENSIONS FOR THE BADGES OF THE AMERICAN
                              LEGION, THE AMERICAN LEGION WOMEN'S
                              AUXILIARY, AND THE SONS OF THE AMERICAN
                              LEGION.

        (a) Patent Term Extension for the Badge of the American Legion.--The
    term of the design patent numbered 54,296 (for the badge of the American
    Legion) is renewed and extended for a period of 14 years beginning on
    the date of enactment of this Act, with all the rights and privileges
    pertaining to such patent.
        (b) Patent Term Extension for the Badge of the American Legion
    Women's Auxiliary.--The term of the design patent numbered 55,398 (for
    the badge of the American Legion Women's Auxiliary) is renewed and
    extended for a period of 14 years beginning on the date of enactment of
    this Act, with all the rights and privileges pertaining to such patent.
        (c) Patent Term Extension for the Badge of the Sons of the American
    Legion.--The term of the design patent numbered 92,187 (for the badge of
    the Sons of the American Legion) is renewed and extended for a period of
    14 years beginning on the date of enactment of this Act, with all the
    rights and privileges pertaining to such patent.
    SEC. 1076. USE OF THE ARMED FORCES IN MAJOR PUBLIC EMERGENCIES.

        (a) Use of the Armed Forces Authorized.--
                (1) In general.--Section 333 of title 10, United States
            Code, is amended to read as follows:

    ``Sec. 333. Major public emergencies; interference with State and
                            Federal law

        ``(a) Use of Armed Forces in Major Public Emergencies.--(1) The
    President may employ the armed forces, including the National Guard in
    Federal service, to--
                ``(A) restore public order and enforce the laws of the
            United States when, as a result of a natural disaster, epidemic,
            or other serious public health emergency, terrorist attack or
            incident, or other condition in any State or possession of the
            United States, the President determines that--
                        ``(i) domestic violence has occurred to such an
                    extent that the constituted authorities of the State or
                    possession are incapable of maintaining public order;
                    and
                        ``(ii) such violence results in a condition
                    described in paragraph (2); or
                ``(B) suppress, in a State, any insurrection, domestic
            violence, unlawful combination, or conspiracy if such
            insurrection, violation, combination, or conspiracy results in a
            condition described in paragraph (2).

        ``(2) A condition described in this paragraph is a condition that--
                ``(A) so hinders the execution of the laws of a State or
            possession, as applicable, and of the United States within that
            State or possession, that any part or class of its people is
            deprived of a right, privilege, immunity, or protection named in
            the Constitution and secured by law, and the constituted
            authorities of that State or possession are unable, fail, or
            refuse to protect that right, privilege, or immunity, or to give
            that protection; or

    [[Page 120 STAT. 2405]]

                ``(B) opposes or obstructs the execution of the laws of the
            United States or impedes the course of justice under those laws.

        ``(3) In any situation covered by paragraph (1)(B), the State shall
    be considered to have denied the equal protection of the laws secured by
    the Constitution.
        ``(b) Notice to Congress.--The President shall notify Congress of
    the determination to exercise the authority in subsection (a)(1)(A) as
    soon as practicable after the determination and every 14 days thereafter
    during the duration of the exercise of that authority.''.
                (2) Proclamation to disperse.--Section 334 of such title is
            amended by inserting ``or those obstructing the enforcement of
            the laws'' after ``insurgents''.
                (3) Heading amendment.--The heading of chapter 15 of such
            title is amended to read as follows:

        ``CHAPTER 15--ENFORCEMENT OF THE LAWS TO RESTORE PUBLIC ORDER''.

                (4) Clerical amendments.--(A) The tables of chapters at the
            beginning of subtitle A of title 10, United States Code, and at
            the beginning of part I of such subtitle, are each amended by
            striking the item relating to chapter 15 and inserting the
            following new item:

    ``15 Enforcement of the Laws to Restore Public Order..............331''.

                (B) The table of sections at the beginning of chapter 15 of
            such title is amended by striking the item relating to sections
            333 and inserting the following new item:

    ``333. Major public emergencies; interference with State and Federal
               law.''.

        (b) Provision of Supplies, Services, and Equipment.--
                (1) In general.--Chapter 152 of such title is amended by
            adding at the end the following new section:

    ``Sec. 2567. Supplies, services, and equipment: provision in major
                            public emergencies

        ``(a) Provision Authorized.--In any situation in which the President
    determines to exercise the authority in section 333(a)(1)(A) of this
    title, the President may direct the Secretary of Defense to provide
    supplies, services, and equipment to persons affected by the situation.
        ``(b) Covered Supplies, Services, and Equipment.--The supplies,
    services, and equipment provided under this section may include food,
    water, utilities, bedding, transportation, tentage, search and rescue,
    medical care, minor repairs, the removal of debris, and other assistance
    necessary for the immediate preservation of life and property.
        ``(c) Limitations.--(1) Supplies, services, and equipment may be
    provided under this section--
                ``(A) only to the extent that the constituted authorities of
            the State or possession concerned are unable to provide such
            supplies, services, and equipment, as the case may be; and
                ``(B) only until such authorities, or other departments or
            agencies of the United States charged with the provision of such
            supplies, services, and equipment, are able to provide such
            supplies, services, and equipment.

    [[Page 120 STAT. 2406]]

        ``(2) The Secretary may provide supplies, services, and equipment
    under this section only to the extent that the Secretary determines that
    doing so will not interfere with military preparedness or ongoing
    military operations or functions.
        ``(d) Inapplicability of Certain Authorities.--The provision of
    supplies, services, or equipment under this section shall not be subject
    to the provisions of section 403(c) of the Robert T. Stafford Disaster
    Relief and Emergency Assistance Act (42 U.S.C. 5170b(c)).''.
                (2) Clerical amendment.--The table of sections at the
            beginning of such chapter is amended by adding at the end the
            following new item:

    ``2567. Supplies, services, and equipment: provision in major public
               emergencies''.

        (c) Conforming Amendment.--Section 12304(c)(1) of such title is
    amended by striking ``No unit'' and all that follows through
    ``subsection (b),'' and inserting ``Except to perform any of the
    functions authorized by chapter 15 or section 12406 of this title or by
    subsection (b), no unit or member of a reserve component may be ordered
    to active duty under this section''.
    SEC. 1077. INCREASED HUNTING AND FISHING OPPORTUNITIES FOR MEMBERS
                              OF THE ARMED FORCES, RETIRED MEMBERS,
                              AND DISABLED VETERANS.

        (a) Access for Members, Retired Members, and Disabled Veterans.--
    Consistent with section 2671 of title 10, United States Code, and using
    such funds as are made available for this purpose, the Secretary of
    Defense shall ensure that members of the Armed Forces, retired members,
    disabled veterans, and persons assisting disabled veterans are able to
    utilize lands under the jurisdiction of the Department of Defense that
    are available for hunting or fishing.
        (b) Assessment.--Not <<NOTE: Reports. Deadline.>> later than 180
    days after the date of the enactment of this Act, the Secretary shall
    submit to Congress a report containing the results of an assessment of
    those lands under the jurisdiction of the Department of Defense and
    suitable for hunting or fishing and describing the actions necessary--
                (1) to further increase the acreage made available to
            members of the Armed Forces, retired members, disabled veterans,
            and persons assisting disabled veterans for hunting and fishing;
            and
                (2) to make that acreage more accessible to disabled
            veterans.

        (c) Recreational Activities on Santa
    Rosa <<NOTE: California.>> Island.--The Secretary of the Interior shall
    immediately cease the plan, approved in the settlement agreement for
    case number 96-7412 WJR and case number 97-4098 WJR, to exterminate the
    deer and elk on Santa Rosa Island, Channel Islands, California, by
    helicopter and shall not exterminate or nearly exterminate the deer and
    elk.

                      TITLE XI--CIVILIAN PERSONNEL MATTERS

    Sec. 1101. Accrual of annual leave for members of the uniformed services
               performing dual employment.
    Sec. 1102. Strategy for improving the senior management, functional, and
               technical workforce of the Department of Defense.

    [[Page 120 STAT. 2407]]

    Sec. 1103. Three-year extension of authority for experimental personnel
               management program for scientific and technical personnel.
    Sec. 1104. Reports on members of the Armed Forces and civilian employees
               of the Department of Defense serving in the legislative
               branch.
    Sec. 1105. Extension of authority to waive annual limitation on total
               compensation paid to Federal civilian employees.

    SEC. 1101. ACCRUAL OF ANNUAL LEAVE FOR MEMBERS OF THE UNIFORMED
                              SERVICES PERFORMING DUAL EMPLOYMENT.

        Section 5534a of title 5, United States Code, is amended by adding
    at the end the following new sentence: ``Such a member also is entitled
    to accrue annual leave with pay in the manner specified in section
    6303(a) of this title for a retired member of a uniformed service.''.
    SEC. 1102. STRATEGY FOR IMPROVING THE SENIOR MANAGEMENT,
                              FUNCTIONAL, AND TECHNICAL WORKFORCE OF
                              THE DEPARTMENT OF DEFENSE.

        (a) Inclusion in 2007 Strategic Human Capital Plan.--The Secretary
    of Defense shall include in the March 1, 2007, strategic human capital
    plan required by section 1122(c) of the National Defense Authorization
    Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3453; 10 U.S.C.
    prec. 1580 note) a strategic plan to shape and improve the senior
    management, functional, and technical workforce (including scientists
    and engineers) of the Department of Defense.
        (b) Scope of Plan.--The strategic plan required by subsection (a)
    shall cover, at a minimum, the following categories of Department of
    Defense civilian personnel:
                (1) Appointees in the Senior Executive Service under section
            3131 of title 5, United States Code.
                (2) Persons serving in positions described in section
            5376(a) of title 5, United States Code.
                (3) Highly qualified experts appointed pursuant to section
            9903 of title 5, United States Code.
                (4) Scientists and engineers appointed pursuant to section
            342(b) of the National Defense Authorization Act for Fiscal Year
            1995 (Public Law 103-337; 108 Stat. 2721), as amended by section
            1114 of the Floyd D. Spence National Defense Authorization Act
            for Fiscal Year 2001 (as enacted into law by Public Law 106-398
            (114 Stat. 1654A-315)).
                (5) Scientists and engineers appointed pursuant to section
            1101 of the Strom Thurmond National Defense Authorization Act
            for Fiscal Year 1999 (5 U.S.C. 3104 note).
                (6) Persons serving in the Defense Intelligence Senior
            Executive Service under section 1606 of title 10, United States
            Code.
                (7) Persons serving in Intelligence Senior Level positions
            under section 1607 of title 10, United States Code.

        (c) Contents of Plan.--The strategic plan required by subsection (a)
    shall include--
                (1) an assessment of--
                        (A) the needs of the Department of Defense for
                    senior management, functional, and technical personnel
                    (including scientists and engineers) in light of recent
                    trends and projected changes in the mission and
                    organization of the Department and in light of staff
                    support needed to accomplish that mission;

    [[Page 120 STAT. 2408]]

                        (B) the capability of the existing civilian employee
                    workforce of the Department to meet requirements
                    relating to the mission of the Department, including the
                    impact on that capability of projected trends in the
                    senior management, functional, and technical personnel
                    workforce of the Department based on expected losses due
                    to retirement and other attrition; and
                        (C) gaps in the existing or projected civilian
                    employee workforce of the Department that should be
                    addressed to ensure that the Department has continued
                    access to the senior management, functional, and
                    technical personnel (including scientists and engineers)
                    it needs; and
                (2) a plan of action for developing and reshaping the senior
            management, functional, and technical workforce of the
            Department to address the gaps identified under paragraph
            (1)(C), including--
                        (A) any legislative or administrative action that
                    may be needed to adjust the requirements applicable to
                    any category of civilian personnel identified in
                    subsection (b) or to establish a new category of senior
                    management or technical personnel;
                        (B) any changes in the number of personnel
                    authorized in any category of personnel identified in
                    subsection (b) that may be needed to address such gaps
                    and effectively meet the needs of the Department;
                        (C) any changes in the rates or methods of pay for
                    any category of personnel identified in subsection (b)
                    that may be needed to address inequities and ensure that
                    the Department has full access to appropriately
                    qualified personnel to address such gaps and meet the
                    needs of the Department;
                        (D) specific recruiting and retention goals,
                    including the program objectives of the Department to be
                    achieved through such goals;
                        (E) specific strategies for developing, training,
                    deploying, compensating, motivating, and designing
                    career paths and career opportunities for the senior
                    management, functional, and technical workforce of the
                    Department, including the program objectives of the
                    Department to be achieved through such strategies; and
                        (F) specific steps that the Department has taken or
                    plans to take to ensure that the senior management,
                    functional, and technical workforce of the Department is
                    managed in compliance with the requirements of section
                    129 of title 10, United States Code.
    SEC. 1103. THREE-YEAR EXTENSION OF AUTHORITY FOR EXPERIMENTAL
                              PERSONNEL MANAGEMENT PROGRAM FOR
                              SCIENTIFIC AND TECHNICAL PERSONNEL.

        Section 1101(e)(1) of the Strom Thurmond National Defense
    Authorization Act for Fiscal Year 1999 (5 U.S.C. 3104 note) is amended
    by striking ``September 30, 2008'' and inserting ``September 30, 2011''.

    [[Page 120 STAT. 2409]]

    SEC. 1104. <<NOTE: 10 USC note prec. 711.>> REPORTS ON MEMBERS OF
                              THE ARMED FORCES AND CIVILIAN EMPLOYEES
                              OF THE DEPARTMENT OF DEFENSE SERVING IN
                              THE LEGISLATIVE BRANCH.

        (a) Quarterly Reports on Details and Fellowships of Long Duration.--
    Not later than 120 days after the date of the enactment of this Act, and
    quarterly thereafter, the Secretary of Defense shall submit to the
    congressional defense committees a report on the members of the Armed
    Forces and civilian employees of the Department of Defense who, as of
    the date of such report, have served continuously in the Legislative
    Branch for more than 12 consecutive months in one or a combination of
    covered legislative details or fellowships.
        (b) Reports on Certain Military Details and Fellowships.--If a
    member of the Armed Forces is assigned to a covered legislative detail
    or fellowship as the last tour of duty of such member before retirement
    or separation from the Armed Forces in contravention of the regulations
    of the Department of Defense, the Secretary shall submit to the
    congressional defense committees a report on the assignment of such
    member to such covered legislative detail or fellowship. The report
    shall include a rationale for the waiver of the regulations of the
    Department in order to permit the detail or fellowship.
        (c) Report Elements.--Each report under subsection (a) or (b) shall
    set forth, for each member of the Armed Forces or civilian employee of
    the Department of Defense covered by such report, the following:
                (1) The name of such member or employee.
                (2) In the case of a member, the Armed Force of such member.
                (3) The committee or member of Congress to which such member
            or employee is detailed or assigned.
                (4) A general description of the projects or tasks
            undertaken or to be undertaken, as applicable, by such member or
            employee as a detailee, fellow, or both.
                (5) The anticipated termination date of the current detail
            or fellowship of such member or employee.

        (d) Covered Legislative Detail or Fellowship Defined.--In this
    section, the term ``covered legislative detail or fellowship'' means the
    following:
                (1) A detail under the provisions of Department of Defense
            Directive 1000.17.
                (2) A legislative fellowship (including a legislative
            fellowship under the provisions of Department of Defense
            Directive 1322.6).
    SEC. 1105. EXTENSION OF AUTHORITY TO WAIVE ANNUAL LIMITATION ON
                              TOTAL COMPENSATION PAID TO FEDERAL
                              CIVILIAN EMPLOYEES.

        Section 1105 of the National Defense Authorization Act for Fiscal
    Year 2006 (Public Law 109-163; 119 Stat. 3450) is amended--
                (1) in subsection (a), by inserting ``and 2007'' after
            ``2006''; and
                (2) in subsection (b)--
                        (A) by striking ``$200,000'' in the heading; and
                        (B) by striking ``a calendar year'' and inserting
                    ``2006 and $212,100 in 2007''.

    [[Page 120 STAT. 2410]]

                 TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                       Subtitle A--Assistance and Training

    Sec. 1201. Logistic support for allied forces participating in combined
               operations.
    Sec. 1202. Temporary authority to use acquisition and cross-servicing
               agreements to lend certain military equipment to foreign
               forces in Iraq and Afghanistan for personnel protection and
               survivability.
    Sec. 1203. Recodification and revision to law relating to Department of
               Defense humanitarian demining assistance.
    Sec. 1204. Enhancements to Regional Defense Combating Terrorism
               Fellowship Program.
    Sec. 1205. Participation of the Department of Defense in multinational
               military centers of excellence.
    Sec. 1206. Modification and extension of authorities relating to program
               to build the capacity of foreign military forces.
    Sec. 1207. Authority for distribution to certain foreign personnel of
               education and training materials and information technology
               to enhance military interoperability.

          Subtitle B--Nonproliferation Matters and Countries of Concern

    Sec. 1211. North Korea.
    Sec. 1212. Report on participation of multinational partners in the
               United Nations Command in the Republic of Korea.
    Sec. 1213. Intelligence on Iran.
    Sec. 1214. Sense of Congress on United States policy on the nuclear
               programs of Iran.

                            Subtitle C--Other Matters

    Sec. 1221. Exclusion of petroleum, oil, and lubricants from limitations
               on annual amount of liabilities the United States may accrue
               under acquisition and cross-servicing agreements.
    Sec. 1222. Modification of limitations on assistance under the American
               Servicemembers' Protection Act of 2002.
    Sec. 1223. Humanitarian support for Iraqi children in urgent need of
               medical care.
    Sec. 1224. Sense of Congress opposing the granting of amnesty by the
               government of Iraq to persons known to have attacked, killed,
               or wounded members of the United States Armed Forces in Iraq.
    Sec. 1225. Annual reports on United States contributions to the United
               Nations.
    Sec. 1226. Comprehensive regional strategy and annual reports on
               Somalia.
    Sec. 1227. Report on the implementation of the Darfur Peace Agreement.
    Sec. 1228. Sense of Congress concerning cooperation with Russia on
               issues pertaining to missile defense.
    Sec. 1229. Sense of Congress calling for convening of a summit for a
               comprehensive political agreement for Iraq.
    Sec. 1230. Sense of Congress on the commendable actions of the Armed
               Forces in Iraq.
    Sec. 1231. Annual report on foreign sales of significant military
               equipment manufactured in the United States.

                       Subtitle A--Assistance and Training

    SEC. 1201. LOGISTIC SUPPORT FOR ALLIED FORCES PARTICIPATING IN
                              COMBINED OPERATIONS.

        (a) Authority.--Chapter 3 of title 10, United States Code, is
    amended by inserting after section 127b the following new section:

    ``Sec. 127c. Allied forces participating in combined operations:
                            authority to provide logistic support, supplies,
                            and services

        ``(a) Authority.--Subject to subsections (b) and (c), the Secretary
    of Defense may provide logistic support, supplies, and services to
    allied forces participating in a combined operation with

    [[Page 120 STAT. 2411]]

    the armed forces. Provision of such support, supplies, and services to
    the forces of an allied nation may be made only with the concurrence of
    the Secretary of State.
        ``(b) Limitations.--(1) The authority provided by subsection (a) may
    be used only in accordance with the Arms Export Control Act and other
    export control laws of the United States.
        ``(2) The authority provided by subsection (a) may be used only for
    a combined operation--
                ``(A) that is carried out during active hostilities or as
            part of a contingency operation or a noncombat operation
            (including an operation in support of the provision of
            humanitarian or foreign disaster assistance, a country
            stabilization operation, or a peacekeeping operation under
            chapter VI or VII of the Charter of the United Nations); and
                ``(B) in a case in which the Secretary of Defense determines
            that the allied forces to be provided logistic support,
            supplies, and services--
                        ``(i) are essential to the success of the combined
                    operation; and
                        ``(ii) would not be able to participate in the
                    combined operation but for the provision of such
                    logistic support, supplies, and services by the
                    Secretary.

        ``(c) Limitations on Value.--(1) Except as provided in paragraph
    (2), the value of logistic support, supplies, and services provided
    under this section in any fiscal year may not exceed $100,000,000.
        ``(2) In addition to any logistic support, supplies, and services
    provided under subsection (a) that are covered by paragraph (1), the
    value of logistic support, supplies, and services provided under this
    section solely for the purposes of enhancing the interoperability of the
    logistical support systems of military forces participating in combined
    operation of the United States in order to facilitate such operations
    may not, in any fiscal year, exceed $5,000,000.
        ``(d) Annual Report.--(1) Not later than December 31 each year, the
    Secretary of Defense shall submit to the Committee on Armed Services and
    the Committee on Foreign Relations of the Senate and the Committee on
    Armed Services and the Committee on International Relations of the House
    of Representatives a report on the use of the authority provided by
    subsection (a) during the preceding fiscal year.
        ``(2) Each report under paragraph (1) shall be prepared in
    coordination with the Secretary of State.
        ``(3) Each report under paragraph (1) shall include, for the fiscal
    year covered by the report, the following:
                ``(A) Each nation provided logistic support, supplies, and
            services through the use of the authority provided by subsection
            (a).
                ``(B) For each such nation, a description of the type and
            value of logistic support, supplies, and services so provided.

        ``(e) Definition.--In this section, the term `logistic support,
    supplies, and services' has the meaning given that term in section
    2350(1) of this title.''.

    [[Page 120 STAT. 2412]]

        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by inserting after the item relating to section
    127b the following new item:

    ``127c. Allied forces participating in combined operations: authority to
               provide logistic support, supplies, and services.''.

    SEC. 1202. TEMPORARY AUTHORITY TO USE ACQUISITION AND CROSS-
                              SERVICING AGREEMENTS TO LEND CERTAIN
                              MILITARY EQUIPMENT TO FOREIGN FORCES IN
                              IRAQ AND AFGHANISTAN FOR PERSONNEL
                              PROTECTION AND SURVIVABILITY.

        (a) Authority.--
                (1) In general.--Subject to paragraphs (2), (3), and (4),
            the Secretary of Defense may treat covered military equipment as
            logistic support, supplies, and services under subchapter I of
            chapter 138 of title 10, United States Code, for the purpose of
            providing for the use of such equipment by military forces of a
            nation participating in combined operations with the United
            States in Iraq or Afghanistan.
                (2) Required determinations.--Equipment may be provided to
            the military forces of a nation under the authority of this
            section only upon--
                        (A) a determination by the Secretary of Defense that
                    the United States forces in the combined operation have
                    no unfilled requirements for that equipment; and
                        (B) a determination by the Secretary of Defense,
                    with the concurrence of the Secretary of State, that it
                    is in the national security interest of the United
                    States to provide for the use of such equipment by the
                    military forces of that nation under this section.
                (3) Limitation on use of equipment.--Equipment provided to
            the military forces of a nation under the authority of this
            section may be used by those forces only in Iraq or Afghanistan
            and only for personnel protection or to aid in the personnel
            survivability of those forces.
                (4) Limitation on duration of provision of equipment.--
            Equipment provided to the military forces of a nation under the
            authority of this section may be used by the military forces of
            that nation for not longer than one year.

        (b) Semiannual Reports to Congressional Committees.--
                (1) Use of authority during first six months of fiscal
            year.--If the authority provided in subsection (a) is exercised
            during the first six months of a fiscal year, the Secretary of
            Defense shall submit to the specified congressional committees a
            report on that exercise of such authority not later than the
            following April 30.
                (2) Use of authority during second six months of fiscal
            year.--If the authority provided in subsection (a) is exercised
            during the second six months of a fiscal year, the Secretary of
            Defense shall submit to the specified congressional committees a
            report on that exercise of such authority not later than the
            following October 30.
                (3) Content.--Each report under paragraph (1) or (2) shall
            include, with respect to each exercise of the authority provided
            in subsection (a) during the period covered by the report, the
            following:

    [[Page 120 STAT. 2413]]

                        (A) A description of the basis for the determination
                    of the Secretary of Defense that it is in the national
                    security interests of the United States to provide for
                    the use of covered military equipment in the manner
                    authorized in subsection (a).
                        (B) Identification of each foreign force that
                    receives such equipment.
                        (C) A description of the type, quantity, and value
                    of the equipment provided to each foreign force that
                    receives such equipment.
                        (D) A description of the terms and duration of the
                    provision of the equipment to each foreign force that
                    receives such equipment.
                (4) Coordination.--Each report under paragraph (1) or (2)
            shall be prepared in coordination with the Secretary of State.

        (c) Limitations on Provision of Military Equipment.--The provision
    of military equipment under this section is subject to the provisions of
    the Arms Export Control Act (22 U.S.C. 2751 et seq.) and of any other
    export control process under laws relating to the transfer of military
    equipment and technology to foreign nations.
        (d) Definitions.--In this section:
                (1) The term ``covered military equipment'' means items
            designated as significant military equipment in categories I,
            II, III, VII, XI, and XIII of the United States Munitions List
            under section 38(a)(1) of the Arms Export Control Act (22 U.S.C.
            2778(a)(1)).
                (2) The term ``specified congressional committees'' means--
                        (A) the Committee on Armed Services and the
                    Committee on Foreign Relations of the Senate; and
                        (B) the Committee on Armed Services and the
                    Committee on International Relations of the House of
                    Representatives.

        (e) Expiration.--The authority to provide military equipment to the
    military forces of a foreign nation under this section expires on
    September 30, 2008.
    SEC. 1203. RECODIFICATION AND REVISION TO LAW RELATING TO
                              DEPARTMENT OF DEFENSE HUMANITARIAN
                              DEMINING ASSISTANCE.

        (a) Repeal.--Section 401 of title 10, United States Code, is
    amended--
                (1) in subsection (a), by striking paragraph (4);
                (2) in subsection (b)--
                        (A) by striking ``(1)'' after ``(b)''; and
                        (B) by striking paragraph (2);
                (3) in subsection (c), by striking paragraphs (2) and (3);
            and
                (4) in subsection (e), by striking paragraph (5).

        (b) Recodification and Revision.--
                (1) In general.--Chapter 20 of such title is amended by
            adding at the end the following new section:

    [[Page 120 STAT. 2414]]

    ``Sec. 407. Humanitarian demining assistance: authority; limitations

        ``(a) Authority.--(1) <<NOTE: Regulations.>> Under regulations
    prescribed by the Secretary of Defense, the Secretary of a military
    department may carry out humanitarian demining assistance in a country
    if the Secretary concerned determines that the assistance will promote
    either--
                ``(A) the security interests of both the United States and
            the country in which the activities are to be carried out; or
                ``(B) the specific operational readiness skills of the
            members of the armed forces who participate in the activities.

        ``(2) Humanitarian demining assistance under this section shall
    complement, and may not duplicate, any other form of social or economic
    assistance which may be provided to the country concerned by any other
    department or agency of the United States.
        ``(3) The Secretary of Defense shall ensure that no member of the
    armed forces, while providing humanitarian demining assistance under
    this section--
                ``(A) engages in the physical detection, lifting, or
            destroying of landmines or other explosive remnants of war
            (unless the member does so for the concurrent purpose of
            supporting a United States military operation); or
                ``(B) provides such assistance as part of a military
            operation that does not involve the armed forces.

        ``(b) Limitations.--(1) Humanitarian demining assistance may not be
    provided under this section unless the Secretary of State specifically
    approves the provision of such assistance.
        ``(2) Any authority provided under any other provision of law to
    provide humanitarian demining assistance to a foreign country shall be
    carried out in accordance with, and subject to, the limitations
    prescribed in this section.
        ``(c) Expenses.--(1) Expenses incurred as a direct result of
    providing humanitarian demining assistance under this section to a
    foreign country shall be paid for out of funds specifically appropriated
    for the purpose of the provision by the Department of Defense of
    overseas humanitarian assistance.
        ``(2) Expenses covered by paragraph (1) include the following:
                ``(A) Travel, transportation, and subsistence expenses of
            Department of Defense personnel providing such assistance.
                ``(B) The cost of any equipment, services, or supplies
            acquired for the purpose of carrying out or supporting
            humanitarian demining activities, including any nonlethal,
            individual, or small-team equipment or supplies for clearing
            landmines or other explosive remnants of war that are to be
            transferred or otherwise furnished to a foreign country in
            furtherance of the provision of assistance under this section.

        ``(3) The cost of equipment, services, and supplies provided in any
    fiscal year under this section may not exceed $10,000,000.
        ``(d) Annual Report.--The Secretary of Defense shall include in the
    annual report under section 401 of this title a separate discussion of
    activities carried out under this section during the preceding fiscal
    year, including--
                ``(1) a list of the countries in which humanitarian demining
            assistance was carried out during the preceding fiscal year;
                ``(2) the type and description of humanitarian demining
            assistance carried out in each country during the preceding
            fiscal year, as specified in paragraph (1);

    [[Page 120 STAT. 2415]]

                ``(3) a list of countries in which humanitarian demining
            assistance could not be carried out during the preceding fiscal
            year due to insufficient numbers of Department of Defense
            personnel to carry out such activities; and
                ``(4) the amount expended in carrying out such assistance in
            each such country during the preceding fiscal year.

        ``(e) Humanitarian Demining Assistance Defined.--In this section,
    the term `humanitarian demining assistance', as it relates to training
    and support, means detection and clearance of landmines and other
    explosive remnants of war, including activities related to the
    furnishing of education, training, and technical assistance with respect
    to the detection and clearance of landmines and other explosive remnants
    of war.''.
                (2) Clerical amendment.--The table of sections at the
            beginning of such chapter is amended by adding at the end the
            following new item:

    ``407. Humanitarian demining assistance: authority; limitations.''.

    SEC. 1204. ENHANCEMENTS TO REGIONAL DEFENSE COMBATING TERRORISM
                              FELLOWSHIP PROGRAM.

        (a) Authorized Purposes.--Subsection (a) of section 2249c of title
    10, United States Code, is amended by striking ``associated with'' and
    all that follows and inserting: ``associated with the education and
    training of foreign military officers, ministry of defense officials, or
    security officials at military or civilian educational institutions,
    regional centers, conferences, seminars, or other training programs
    conducted under the Regional Defense Combating Terrorism Fellowship
    Program. Costs for which payment may be made under this section include
    the costs of transportation and travel and subsistence costs.''.
        (b) Annual Limitation on Amount Obligated.--Subsection (b) of such
    section is amended by striking ``$20,000,000'' and inserting
    ``$25,000,000''.
        (c) Obligation of Funds Across Fiscal Years.--Subsection (b) of such
    section is further amended by adding at the end the following new
    sentence: ``Amounts available under the authority in subsection (a) for
    a fiscal year may be used for programs that begin in such fiscal year
    but end in the next fiscal year.''.
        (d) Clerical Amendments.--
                (1) Reference to program.--Subsection (c)(3) of such section
            is amended by striking ``Regional Defense Counterterrorism
            Fellowship Program'' and inserting ``program referred to in
            subsection (a)''.
                (2) Section heading.--The heading of such section is amended
            to read as follows:

    [[Page 120 STAT. 2416]]

    ``Sec. 2249c. Regional Defense Combating Terrorism Fellowship Program:
                            authority to use appropriated funds for costs
                            associated with education and training of
                            foreign officials''.

                (3) Table of sections.--The item relating to such section in
            the table of sections at the beginning of subchapter I of
            chapter 134 of such title is amended to read as follows:

    ``2249c.  Regional Defense Combating Terrorism Fellowship Program:
               authority to use appropriated funds for costs associated with
               education and training of foreign officials.''.

    SEC. 1205. PARTICIPATION OF THE DEPARTMENT OF DEFENSE IN
                              MULTINATIONAL MILITARY CENTERS OF
                              EXCELLENCE.

        (a) Participation Authorized.--During fiscal year 2007, the
    Secretary of Defense may, with the concurrence of the Secretary of
    State, authorize the participation of members of the Armed Forces and
    Department of Defense civilian personnel in any multinational military
    center of excellence hosted by any nation or combination of nations
    referred to in subsection (b) for purposes of--
                (1) enhancing the ability of military forces and civilian
            personnel of the nations participating in such center to engage
            in joint exercises or coalition or international military
            operations; or
                (2) improving interoperability between the Armed Forces of
            the United States and the military forces of friendly foreign
            nations.

        (b) Covered Nations.--The nations referred to in this subsection are
    the following:
                (1) The United States.
                (2) Any member nation of the North Atlantic Treaty
            Organization (NATO).
                (3) Any major non-NATO ally.
                (4) Any other friendly foreign nation identified by the
            Secretary of Defense, with the concurrence of the Secretary of
            State, for purposes of this section.

        (c) Definitions.--In this section:
                (1) Multinational military center of excellence.--The term
            ``multinational military center of excellence'' means an entity
            sponsored by one or more nations that is accredited and approved
            by the Military Committee of the North Atlantic Treaty
            Organization (NATO) as offering recognized expertise and
            experience to personnel participating in the activities of such
            entity for the benefit of NATO by providing such personnel
            opportunities to--
                        (A) enhance education and training;
                        (B) improve interoperability and capabilities;
                        (C) assist in the development of doctrine; and
                        (D) validate concepts through experimentation.
                (2) Major non-nato ally.--The term ``major non-NATO ally''
            means a country (other than a member nation of the North
            Atlantic Treaty Organization) that is designated as a major non-
            NATO ally pursuant to section 517 of the Foreign Assistance Act
            of 1961 (22 U.S.C. 2321k).

        (d) Memorandum of Understanding.--
                (1) Requirement.--The participation of members of the Armed
            Forces or Department of Defense civilian personnel in a
            multinational military center of excellence under subsection

    [[Page 120 STAT. 2417]]

            (a) shall be in accordance with the terms of one or more
            memoranda of understanding entered into by the Secretary of
            Defense, with the concurrence of the Secretary of State, and the
            foreign nation or nations concerned.
                (2) Scope.--If Department of Defense facilities, equipment,
            or funds are used to support a multinational military center of
            excellence under subsection (a), the memoranda of understanding
            under paragraph (1) with respect to that center shall provide
            details of any cost-sharing arrangement or other funding
            arrangement.

        (e) Availability of Appropriated Funds.--
                (1) Availability.--Funds appropriated to the Department of
            Defense for operation and maintenance are available as follows:
                        (A) To pay the United States share of the operating
                    expenses of any multinational military center of
                    excellence in which the United States participates under
                    this section.
                        (B) To pay the costs of the participation of members
                    of the Armed Forces and Department of Defense civilian
                    personnel in multinational military centers of
                    excellence under this section, including the costs of
                    expenses of such participants.
                (2) Limitation on amount.--The amount available under
            paragraph (1)(A) in fiscal year 2007 for the expenses referred
            to in that paragraph may not exceed $3,000,000.
                (3) Limitation on use of funds.--No funds may be used under
            this section to fund the pay or salaries of members of the Armed
            Forces and Department of Defense civilian personnel who
            participate in multinational military centers of excellence
            under this section.

        (f) Use of Department of Defense Facilities and Equipment.--
    Facilities and equipment of the Department of Defense may be used for
    purposes of the support of multinational military centers of excellence
    under this section that are hosted by the Department.
        (g) Report on Use of Authority.--
                (1) Report required.--Not later than October 31, 2007, the
            Secretary of Defense shall submit to the Committee on Armed
            Services of the Senate and the Committee on Armed Services of
            the House of Representatives a report on the use of the
            authority in this section during fiscal year 2007.
                (2) Elements.--The report required by paragraph (1) shall
            include the following:
                        (A) A detailed description of the participation of
                    the Department of Defense, and of members of the Armed
                    Forces and civilian personnel of the Department, in
                    multinational military centers of excellence under the
                    authority of this section during fiscal year 2007.
                        (B) For each multinational military center of
                    excellence in which the Department of Defense, or
                    members of the Armed Forces or civilian personnel of the
                    Department, so participated--
                              (i) a description of such multinational
                          military center of excellence;
                              (ii) a description of the activities
                          participated in by the Department, or by members
                          of the Armed Forces or civilian personnel of the
                          Department; and

    [[Page 120 STAT. 2418]]

                              (iii) a statement of the costs of the
                          Department for such participation, including--
                                        (I) a statement of the United States
                                    share of the expenses of such center and
                                    a statement of the percentage of the
                                    United States share of the expenses of
                                    such center to the total expenses of
                                    such center; and
                                        (II) a statement of the amount of
                                    such costs (including a separate
                                    statement of the amount of costs paid
                                    for under the authority of this section
                                    by category of costs).
    SEC. 1206. MODIFICATION AND EXTENSION OF AUTHORITIES RELATING TO
                              PROGRAM TO BUILD THE CAPACITY OF FOREIGN
                              MILITARY FORCES.

        (a) Program Implementation Vested in Secretary of Defense.--
                (1) Authority.--Subsection (a) of section 1206 of the
            National Defense Authorization Act for Fiscal Year 2006 (Public
            Law 109-163; 119 Stat. 3456) is amended by striking ``The
            President may direct the Secretary of Defense to'' and inserting
            ``The Secretary of Defense, with the concurrence of the
            Secretary of State, may''.
                (2) Conforming amendments.--Such section is further
            amended--
                        (A) in subsection (b), by striking ``directed by the
                    President'' in paragraphs (1) and (2);
                        (B) in subsection (c)--
                              (i) in paragraph (1), by striking ``directed
                          by the President''; and
                              (ii) in paragraphs (2) and (3), by striking
                          ``The President'' and inserting ``The Secretary of
                          Defense'';
                        (C) in subsection (d), by striking ``directed by the
                    President'' both places it appears; and
                        (D) in subsection (e)(2), by striking ``as directed
                    by the President''.

        (b) Funding.--Subsection (c)(1) of such section is further amended--
                (1) by striking ``$200,000,000'' and inserting
            ``$300,000,000''; and
                (2) by striking ``defense-wide''.

        (c) Notification to Congress.--Paragraph (1) of subsection (e) of
    such section is amended to read as follows:
                ``(1) Notification.--Whenever the Secretary of Defense
            decides, with the concurrence of the Secretary of State, to
            conduct or support a program authorized under subsection (a),
            the Secretary of Defense shall submit to Congress a notification
            in writing of that decision. Any such notification shall be
            prepared in coordination with the Secretary of State.''.

        (d) One-Year Extension of Program Authority.--Subsection (g) of such
    section is amended to read as follows:
        ``(g) Termination of Program.--The authority provided under
    subsection (a) terminates at the close of September 30, 2008. Any
    program directed before that date may be completed, but only using funds
    available for fiscal year 2006, 2007, or 2008.''.

    [[Page 120 STAT. 2419]]

    SEC. 1207. AUTHORITY FOR DISTRIBUTION TO CERTAIN FOREIGN PERSONNEL
                              OF EDUCATION AND TRAINING MATERIALS AND
                              INFORMATION TECHNOLOGY TO ENHANCE
                              MILITARY INTEROPERABILITY.

        (a) Distribution Authorized.--To enhance interoperability between
    the Armed Forces and military forces of friendly foreign countries, the
    Secretary of Defense may--
                (1) provide to personnel referred to in subsection (b)
            electronically-distributed learning content for the education
            and training of such personnel for the development and
            enhancement of allied and friendly military capabilities for
            multinational operations, including joint exercises and
            coalition operations; and
                (2) provide information technology, including computer
            software developed for such purpose, but only to the extent
            necessary to support the use of such learning content for the
            education and training of such personnel.

        (b) Authorized Recipients.--The personnel to whom learning content
    and information technology may be provided under subsection (a) are
    military and civilian personnel of a friendly foreign government, with
    the permission of that government.
        (c) Education and Training.--Any education and training provided
    under subsection (a) shall include the following:
                (1) Internet-based education and training.
                (2) Advanced distributed learning and similar Internet
            learning tools, as well as distributed training and computer
            assisted exercises.

        (d) Secretary of State Concurrence in Certain Activities.--In the
    case of any activity proposed to be undertaken under this section that
    is not authorized by another provision of law, the Secretary of Defense
    may undertake such activity only with the concurrence of the Secretary
    of State.
        (e) Applicability of Export Control Regimes.--The provision of
    learning content and information technology under this section shall be
    subject to the provisions of the Arms Export Control Act (22 U.S.C. 2751
    et seq.) and any other export control regime under law relating to the
    transfer of military technology to foreign nations.
        (f) Secretary of Defense Guidance.--
                (1) Guidance required.--The Secretary of Defense shall
            develop and issue guidance on the procedures for the use of the
            authority provided in this section.
                (2) Submittal <<NOTE: Deadline. Reports.>> to congressional
            committees.--Not later than 30 days after issuing the guidance
            required by paragraph (1), the Secretary shall submit to the
            Committees on Armed Services of the Senate and House of
            Representatives a report setting forth such guidance.
                (3) Modification.--If <<NOTE: Reports. Deadline.>> the
            Secretary modifies the guidance issued under paragraph (1), the
            Secretary shall submit to the committees named in paragraph (2)
            a report setting forth the modified guidance not later than 30
            days after the date of such modification.

        (g) Annual Report.--
                (1) Report required.--Not later than October 31 of 2007 and
            2008, the Secretary of Defense shall submit to the committees
            named in subsection (f)(1) a report on the exercise of

    [[Page 120 STAT. 2420]]

            the authority provided in this section during the preceding
            fiscal year.
                (2) Elements.--Each report under paragraph (1) shall
            include, for the fiscal year covered by such report, the
            following:
                        (A) A statement of the recipients of learning
                    content and information technology provided under this
                    section.
                        (B) A description of the type, quantity, and value
                    of the learning content and information technology
                    provided under this section.

        (h) Termination.--The authority provided in this section shall
    expire on September 30, 2008.

          Subtitle B--Nonproliferation Matters and Countries of Concern

    SEC. 1211. NORTH KOREA.

        (a) Coordinator of Policy on North Korea.--
                (1) Appointment required.--
            Not <<NOTE: Deadline. President.>> later than 60 days after the
            date of the enactment of this Act, the President shall appoint a
            senior presidential coordinator of United States policy on North
            Korea.
                (2) Designation.--The individual appointed under paragraph
            (1) may be known as the ``North Korea Policy Coordinator'' (in
            this subsection referred to as the ``Coordinator)''.
                (3) Duties.--The Coordinator shall--
                        (A) conduct a full and complete interagency review
                    of United States policy toward North Korea;
                        (B) consult with foreign governments, including the
                    parties to the Six Party Talks on the denuclearization
                    of the Korean peninsula; and
                        (C) provide policy direction and leadership for
                    negotiations with North Korea relating to nuclear
                    weapons, ballistic missiles, and other security matters.
                (4) Report.--Not later than 90 days after the date of the
            appointment of an individual as Coordinator under paragraph (1),
            the Coordinator shall submit to the President and Congress an
            unclassified report, with a classified annex if necessary, on
            the actions undertaken under paragraph (3). The report shall set
            forth--
                        (A) the results of the review under paragraph
                    (3)(A); and
                        (B) any other matter on North Korea that the
                    Coordinator considers appropriate.
                (5) Termination.--The position under this subsection shall
            terminate no later than December 31, 2011.

        (b) Semiannual Reports on Nuclear and Missile Programs of North
    Korea.--
                (1) Reports <<NOTE: President.>> required.--Not later than
            90 days after the date of the enactment of this Act, and every
            180 days thereafter for fiscal years 2007 and 2008, the
            President shall transmit to Congress an unclassified report,
            with a classified annex as appropriate, on the nuclear program
            and the missile program of North Korea.
                (2) Matters to be included.--Each report under paragraph (1)
            shall include the following:

    [[Page 120 STAT. 2421]]

                        (A) The most current national intelligence estimate
                    on the nuclear program and the missile program of North
                    Korea and, consistent with the protection of
                    intelligence sources and methods, an unclassified
                    summary of the key judgments in that estimate.
                        (B) The most current unclassified United States
                    Government assessment, stated as a range if necessary,
                    of--
                              (i) the number of nuclear weapons possessed by
                          North Korea; and
                              (ii) the amount of nuclear material suitable
                          for weapons use produced by North Korea by
                          plutonium reprocessing and uranium enrichment.
                        (C) Any other matter relating to the nuclear program
                    or missile program of North Korea that the President
                    considers appropriate.
    SEC. 1212. REPORT ON PARTICIPATION OF MULTINATIONAL PARTNERS IN
                              THE UNITED NATIONS COMMAND IN THE
                              REPUBLIC OF KOREA.

        (a) Report Required.--Not later than 180 days after the date of the
    enactment of this Act, the Secretary of Defense, in coordination with
    the Secretary of State, shall submit to the appropriate committees of
    Congress a report on participation of multinational partners in the
    United Nations Command in the Republic of Korea.
        (b) Elements.--The report required by subsection (a) shall include
    the following:
                (1) A list of the nations that are current members of the
            United Nations Command in the Republic of Korea, together with a
            detailed description of the role and participation of each such
            member nation in the responsibilities and activities of the
            United Nations Command.
                (2) A detailed description of efforts being undertaken by
            the United States to encourage enhanced participation in the
            responsibilities and activities of the United Nations Command in
            the Republic of Korea by such member nations.
                (3) A discussion of how members of the United Nations
            Command in the Republic of Korea might be persuaded to increase
            their contribution of military forces stationed in the Republic
            and an assessment of how United States political-military
            requirements in the Republic of Korea might be affected by such
            increases.
                (4) An assessment of how the contribution of additional
            military forces by a member of the United Nations Command might
            affect that member's approach to facilitating a diplomatic
            resolution of the nuclear challenge posed by the Democratic
            People's Republic of Korea.

        (c) Form.--The report required by subsection (a) shall be submitted
    in unclassified form, but may include a classified annex.
        (d) Appropriate Committees of Congress Defined.--In this section,
    the term ``appropriate committees of Congress'' means--
                (1) the Committees on Armed Services and Foreign Relations
            of the Senate; and
                (2) the Committees on Armed Services and International
            Relations of the House of Representatives.

    [[Page 120 STAT. 2422]]

    SEC. 1213. INTELLIGENCE ON IRAN.

        (a) Submittal to Congress of Updated National Intelligence Estimate
    on Iran.--
                (1) Submittal required.--The Director of National
            Intelligence shall submit to Congress an updated, comprehensive
            National Intelligence Estimate on Iran. <<NOTE: Deadline.>> Such
            National Intelligence Estimate shall be submitted as soon as is
            practicable, but not later than the end of the 90-day period
            beginning on the date of the enactment of this Act.
                (2) Notice <<NOTE: Reports.>> regarding submittal.--If
            before the end of the 90-day period specified in paragraph (1)
            the Director determines that the National Intelligence Estimate
            required by that paragraph cannot be submitted by the end of
            that period as required by that paragraph, the Director shall
            (before the end of that period) submit to Congress a report
            setting forth--
                        (A) the reasons why the National Intelligence
                    Estimate cannot be submitted by the end of such 90-day
                    period; and
                        (B) an estimated date for the submittal of the
                    National Intelligence Estimate.
                (3) Form.--The National Intelligence Estimate under
            paragraph (1) shall be submitted in classified form. Consistent
            with the protection of intelligence sources and methods, an
            unclassified summary of the key judgments of the National
            Intelligence Estimate should be submitted.

        (b) Presidential Report on Policy Objectives and United States
    Strategy Regarding Iran.--
                (1) Report required.--As soon as is practicable, but not
            later than 90 days after the date of the enactment of this Act,
            the President shall submit to Congress a report on--
                        (A) the objectives of United States policy on Iran;
                    and
                        (B) the strategy for achieving those objectives.
                (2) Form.--The report under paragraph (1) shall be submitted
            in unclassified form with a classified annex, as appropriate.
                (3) Elements.--The report submitted under paragraph (1)
            shall--
                        (A) address the role of diplomacy, incentives,
                    sanctions, other punitive measures and incentives, and
                    other programs and activities relating to Iran for which
                    funds are provided by Congress; and
                        (B) summarize United States contingency planning
                    regarding the range of possible United States military
                    actions in support of United States policy objectives
                    with respect to Iran.
    SEC. 1214. SENSE OF CONGRESS ON UNITED STATES POLICY ON THE
                              NUCLEAR PROGRAMS OF IRAN.

        Congress--
                (1) endorses the policy of the United States to achieve a
            successful diplomatic outcome, in coordination with leading
            members of the international community, with respect to the
            threat posed by the efforts of the Iranian regime to acquire a
            capability to produce nuclear weapons;
                (2) calls on Iran to--

    [[Page 120 STAT. 2423]]

                        (A) suspend fully and verifiably its enrichment and
                    reprocessing activities, as required by the
                    International Atomic Energy Agency (IAEA); and
                        (B) work with the international community to achieve
                    a negotiated outcome to the concerns regarding its
                    nuclear program;
                (3) in the event Iran fails to comply with United Nations
            Security Council Resolution 1696 (July 31, 2006), urges the
            Security Council to work for the adoption of appropriate
            measures under Article 41 of Chapter VII of the Charter of the
            United Nations; and
                (4) urges the President and the Secretary of State to keep
            Congress fully and currently informed regarding the progress of
            this vital diplomatic initiative.

                            Subtitle C--Other Matters

    SEC. 1221. EXCLUSION OF PETROLEUM, OIL, AND LUBRICANTS FROM
                              LIMITATIONS ON ANNUAL AMOUNT OF
                              LIABILITIES THE UNITED STATES MAY ACCRUE
                              UNDER ACQUISITION AND CROSS-SERVICING
                              AGREEMENTS.

        (a) Exclusion.--Section 2347 of title 10, United States Code, is
    amended--
                (1) in subsection (a), by striking ``(other than petroleum,
            oils, and lubricants)'' in paragraphs (1) and (2); and
                (2) by adding at the end the following new subsection:

        ``(d) The amount of any sale, purchase, or exchange of petroleum,
    oils, or lubricants by the United States under this subchapter in any
    fiscal year shall be excluded in any computation for the purposes of
    subsection (a) or (b) of the amount of reimbursable liabilities or
    reimbursable credits that the United States accrues under this
    subchapter in that fiscal year.''.
        (b) <<NOTE: 10 USC 2347 note.>> Effective Date.--The amendments made
    by subsection (a) shall take effect beginning with fiscal year 2007.

        (c) Reports.--Not later than October 31 of 2007 and 2008, the
    Secretary of Defense shall submit to the Committee on Armed Services of
    the Senate and the Committee on Armed Services of the House of
    Representatives a report on the exercise during the preceding fiscal
    year of the authority provided in subchapter I of chapter 138 of title
    10, United States Code, with respect to the sale, purchase, or exchange
    of petroleum, oil, or lubricants. Each report shall identify each
    country involved in a sale, purchase, or exchange of petroleum, oil, or
    lubricants with the United States and include a description, by country,
    of the type, quantity, and value of the petroleum, oil, and lubricants
    that were sold, purchased, or exchanged by the United States.
    SEC. 1222. MODIFICATION OF LIMITATIONS ON ASSISTANCE UNDER THE
                              AMERICAN SERVICEMEMBERS' PROTECTION ACT
                              OF 2002.

        Section 2013(13)(A) of the American Servicemembers' Protection Act
    of 2002 (22 U.S.C. 7432(13)(A)) is amended by striking ``or 5''.
    SEC. 1223. HUMANITARIAN SUPPORT FOR IRAQI CHILDREN IN URGENT NEED
                              OF MEDICAL CARE.

        (a) Findings.--Congress makes the following findings:

    [[Page 120 STAT. 2424]]

                (1) The Secretary of Defense has discretionary authority to
            permit space-available travel on military aircraft for various
            reasons, including humanitarian purposes.
                (2) Recently, 110 Iraqi children journeyed 22 hours by bus
            from Baghdad, Iraq, to Amman, Jordan, for urgently needed oral/
            facial surgery. While traveling, armed insurgents stopped and
            boarded the children's bus, raising serious questions about the
            safety of further travel by ground.
                (3) Pursuant to the Secretary's discretionary authority
            referred to in paragraph (1), the Secretary authorized the Iraqi
            children to travel on military aircraft for their return trip
            from Amman to Baghdad.
                (4) The Secretary is to be commended for his initiative in
            providing for the safe return of these children to Iraq by
            military aircraft.

        (b) Sense of Congress.--It is the sense of Congress that the
    Secretary of Defense should continue to provide space-available travel
    on military aircraft for humanitarian reasons to Iraqi children who
    would otherwise have no means available to seek urgently needed medical
    care such as that provided by a humanitarian organization in Amman,
    Jordan.
    SEC. 1224. SENSE OF CONGRESS OPPOSING THE GRANTING OF AMNESTY BY
                              THE GOVERNMENT OF IRAQ TO PERSONS KNOWN
                              TO HAVE ATTACKED, KILLED, OR WOUNDED
                              MEMBERS OF THE UNITED STATES ARMED
                              FORCES IN IRAQ.

        (a) Findings.--Congress makes the following findings:
                (1) The Armed Forces of the United States and coalition
            military forces are serving heroically in Iraq to provide all
            the people of Iraq a better future.
                (2) The Armed Forces of the United States and coalition
            military forces have served bravely in Iraq since the beginning
            of military operations in March of 2003.
                (3) As of June 15, 2006, more than 2,500 members of the
            Armed Forces of the United States and members of coalition
            military forces have been killed and more than 18,000 have been
            injured in operations to bring peace and stability to all the
            people of Iraq.

        (b) Sense of Congress.--
                (1) Iraqi sovereignty.--It is the sense of Congress that the
            goal of the United States and of the coalition partners of the
            United States has been to empower the Iraqi people and, in doing
            so, to recognize their freedom to exercise full sovereignty.
                (2) Amnesty.--Recognizing the sovereignty of the Iraqi
            people as referred to in paragraph (1), it is further the sense
            of Congress that the Government of Iraq, consistent with that
            sovereignty, should not grant amnesty to persons known to have
            attacked, killed, or wounded members of the Armed Forces of the
            United States.
    SEC. 1225. <<NOTE: President.>> ANNUAL REPORTS ON UNITED STATES
                              CONTRIBUTIONS TO THE UNITED NATIONS.

        (a) Annual Report.--Not later than 90 days after the date of the
    enactment of this Act and annually thereafter until December 31, 2010,
    the President shall submit to Congress a report listing all assessed and
    voluntary contributions of the United States

    [[Page 120 STAT. 2425]]

    Government for the preceding fiscal year to the United Nations and
    United Nations affiliated agencies and related bodies.
        (b) Contents.--Each report required under subsection (a) shall set
    forth, for the fiscal year covered by such report, the following:
                (1) The total amount of all assessed and voluntary
            contributions of the United States Government to the United
            Nations and United Nations affiliated agencies and related
            bodies.
                (2) The approximate percentage of United States Government
            contributions to each United Nations affiliated agency or body
            in such fiscal year when compared with all contributions to such
            agency or body from any source in such fiscal year.
                (3) For each such contribution--
                        (A) the amount of such contribution;
                        (B) a description of such contribution (including
                    whether assessed or voluntary);
                        (C) the department or agency of the United States
                    Government responsible for such contribution;
                        (D) the purpose of such contribution; and
                        (E) the United Nations or United Nations affiliated
                    agency or related body receiving such contribution.
    SEC. 1226. COMPREHENSIVE REGIONAL STRATEGY AND ANNUAL REPORTS ON
                              SOMALIA.

        (a) Sense of Congress.--It is the sense of Congress that the United
    States should--
                (1) support--
                        (A) the establishment of a functional, legitimate,
                    and unified national government in Somalia;
                        (B) humanitarian assistance to the people of
                    Somalia;
                        (C) efforts to prevent Somalia from becoming a safe
                    haven for terrorists and terrorist activities; and
                        (D) regional stability;
                (2) broaden and integrate its strategic approach toward
            Somalia within the context of United States policy and
            activities in the countries of the Horn of Africa and other
            relevant countries on the Arabian Peninsula; and
                (3) coordinate and carry out all diplomatic, humanitarian,
            counterterrorism, and security-related activities in Somalia
            within the framework of an interagency process.

        (b) Comprehensive Regional Strategy.--
                (1) In general.--Not <<NOTE: President.>> later than 90 days
            after the date of the enactment of this Act, the President shall
            submit to the appropriate congressional committees a report on a
            comprehensive regional strategy toward Somalia within the
            context of United States policy and activities in the countries
            of the Horn of Africa and other relevant countries on the
            Arabian Peninsula.
                (2) Components.--The comprehensive regional strategy
            described in the report shall include the following components:
                        (A) A clearly stated policy towards Somalia that
                    will help establish a functional, legitimate, and
                    unified national government in Somalia that is capable
                    of maintaining the rule of law and preventing Somalia
                    from becoming a safe haven for terrorists.
                        (B) A description of the type and form of bilateral,
                    regional, and multilateral efforts to coordinate and
                    strengthen diplomatic engagement with Somalia.

    [[Page 120 STAT. 2426]]

                        (C) A description of an integrated political,
                    humanitarian, intelligence, and military approach to
                    counter transnational security threats in Somalia and
                    throughout the countries of the Horn of Africa.
                        (D) A description of an interagency framework
                    involving the Federal agencies and departments of the
                    United States to plan, coordinate, and execute United
                    States policy and activities in Somalia and throughout
                    the countries of the Horn of Africa and to oversee
                    policy and program implementation.
                        (E) Guidance on the manner in which the
                    comprehensive regional strategy will be implemented.

        (c) Annual <<NOTE: President.>> Reports.--Not later than April 1,
    2007, and annually thereafter until April 1, 2010, the President shall
    submit to the appropriate congressional committees a report on the
    status of the implementation of the comprehensive regional strategy
    toward Somalia required under subsection (b).

        (d) Form.--Each report under this section, including the
    comprehensive regional strategy, shall be submitted in unclassified
    form, but may include a classified annex, as appropriate.
        (e) Appropriate Congressional Committees Defined.--In this section,
    the term ``appropriate congressional committees'' means--
                (1) the Committee on Armed Services, the Committee on
            International Relations, and the Permanent Select Committee on
            Intelligence of the House of Representatives; and
                (2) the Committee on Armed Services, the Committee on
            Foreign Relations, and the Select Committee on Intelligence of
            the Senate.
    SEC. 1227. REPORT ON THE IMPLEMENTATION OF THE DARFUR PEACE
                              AGREEMENT.

        (a) Requirement for Reports.--Not later than 90 days after the date
    of the enactment of this Act and every six months thereafter until
    December 31, 2011, the Secretary of Defense, in coordination with the
    Secretary of State, shall submit to the appropriate congressional
    committees a report on the implementation of the Darfur Peace Agreement
    of May 5, 2006, and the contributions of the Department of Defense to
    the North Atlantic Treaty Organization in support of the African Union
    Mission in Sudan (AMIS).
        (b) Contents.--Each report under subsection (a) shall include--
                (1) a description of major violations of the Darfur Peace
            Agreement and major delays in implementing the Agreement,
            including violations and delays relating to the demobilization
            and disarmament of the Janjaweed, the voluntary safe return of
            internally displaced persons and refugees, and security and
            access for humanitarian supply routes;
                (2) an assessment of the extent to which the Ceasefire
            Commission and the AMIS are able to monitor the implementation
            of the Darfur Peace Agreement and an assessment of efforts to
            impede the monitoring activities of the Ceasefire Commission and
            AMIS;
                (3) a list of contributions made by the Department of
            Defense in support of NATO assistance to AMIS and the United
            Nations peacekeeping operation authorized for Darfur;

    [[Page 120 STAT. 2427]]

                (4) a description of the activities carried out by United
            States Armed Forces in support of NATO assistance to AMIS and
            the United Nations peacekeeping operation authorized for Darfur;
                (5) the amount of funds expended by the Department of
            Defense in support of NATO assistance to AMIS; and
                (6) a description of the efforts by the United States to
            obtain troop contributions from other countries to serve in the
            United Nations peacekeeping operation authorized for Darfur.

         (c) Form and Availability of Reports.--
                (1) Form.--Reports submitted under this section shall be in
            an unclassified form and may include a classified annex.
                (2) Availability.--The <<NOTE: Public
            information.>> unclassified portion of such reports shall be
            made available to the public.

        (d) Appropriate Congressional Committees Defined.--In this section,
    the term ``appropriate committees of Congress'' means--
                (1) the Committee on Armed Services and the Committee on
            International Relations of the House of Representatives; and
                (2) the Committee on Armed Services and the Committee on
            Foreign Relations of the Senate.
    SEC. 1228. SENSE OF CONGRESS CONCERNING COOPERATION WITH RUSSIA ON
                              ISSUES PERTAINING TO MISSILE DEFENSE.

        It is the sense of Congress that--
                (1) cooperation between the United States and Russia with
            regard to missile defense is in the interest of the United
            States;
                (2) there does not exist strong enough engagement between
            the United States and Russia with respect to missile defense
            cooperation;
                (3) the United States should explore innovative and
            nontraditional means of cooperation with Russia on issues
            pertaining to missile defense; and
                (4) as part of such an effort, the Secretary of Defense
            should consider the possibilities for United States-Russian
            cooperation with respect to missile defense through--
                        (A) the testing of specific elements of the
                    detection and tracking equipment of the Missile Defense
                    Agency of the United States Department of Defense
                    through the use of Russian target missiles; and
                        (B) the provision of early warning radar to the
                    Missile Defense Agency by the use of Russian radar data.
    SEC. 1229. SENSE OF CONGRESS CALLING FOR CONVENING OF A SUMMIT FOR
                              A COMPREHENSIVE POLITICAL AGREEMENT FOR
                              IRAQ.

        (a) In General.--It is the sense of Congress that the President
    should continue working with the Government of Iraq and the United
    Nations to convene a summit as soon as possible after the enactment of
    this Act for the purpose of reaching a comprehensive political agreement
    for Iraq--
                (1) that promotes the Government of Iraq's National
            Reconciliation and Dialogue Plan of June 25, 2006, which is
            designed to focus on many of the fundamental questions dividing
            Iraqis; and
                (2) that address the issues of--

    [[Page 120 STAT. 2428]]

                        (A) federalism;
                        (B) the equitable distribution of oil revenues;
                        (C) the demobilization and reintegration of armed
                    militias
                        (D) the inducement of the armed opposition to lay
                    down their arms and join the political process, and
                        (E) the building of a renewed international
                    partnership with Iraq aimed at encouraging the economic
                    recovery and reconstruction of Iraq.

        (b) Summit Participants.--A summit convened for the purpose stated
    in subsection (a) should include the following participants (as well as
    other appropriate participants):
                (1) Representatives of Iraq's neighbors.
                (2) Representatives of the Arab League.
                (3) The Secretary General of the North Atlantic Treaty
            Organization.
                (4) Representatives of the European Union.
                (5) Leaders of the governments of each permanent member of
            the United Nations Security Council.
    SEC. 1230. SENSE OF CONGRESS ON THE COMMENDABLE ACTIONS OF THE
                              ARMED FORCES IN IRAQ.

        (a) Findings.--Congress makes the following findings:
                (1) On June 7, 2006, the United States Armed Forces carried
            out an air strike near the City of Baquba, northeast of Baghdad,
            Iraq, that resulted in the death of Ahmad Fadeel al-Nazal al-
            Khalayleh, better known as Abu Musab al-Zarqawi, the leader of
            the al-Qaeda in Iraq terrorist organization and the most wanted
            terrorist in Iraq.
                (2) Zarqawi, as the operational commander of al-Qaeda in
            Iraq, led a brutal campaign of suicide bombings, car bombings,
            assassinations, and abductions that caused the deaths of many
            members of the United States Armed Forces, civilian officials of
            the United States Government, thousands of innocent Iraqi
            civilians, and innocent civilians of other nations.
                (3) Zarqawi publicly swore his allegiance to Osama bin Laden
            and al-Qaeda in 2004, and changed the name of his terrorist
            organization from the ``Monotheism and Holy War Group'' to ``al-
            Qaeda in Iraq''.
                (4) In an audiotape broadcast in December 2004, Osama bin
            Laden, the leader of al-Qaeda's worldwide terrorist
            organization, called Zarqawi ``the prince of al-Qaeda in Iraq''.
                (5) Three perpetrators confessed to being paid by Zarqawi to
            carry out the October 2002 assassination of the United States
            diplomat, Lawrence Foley, in Amman, Jordan.
                (6) The Monotheism and Holy War Group claimed responsibility
            for--
                        (A) the August 2003 suicide attack that destroyed
                    the United Nations headquarters in Baghdad and killed
                    the United Nations envoy to Iraq, Sergio Vieira de
                    Mello, along with 21 other people; and
                        (B) the suicide attack on the Imam Ali Mosque in
                    Najaf that occurred less than two weeks later, which
                    killed at least 85 people, including the Ayatollah Sayed
                    Mohammed Baqr al-Hakim, and wounded dozens more.

    [[Page 120 STAT. 2429]]

                (7) Zarqawi is believed to have personally beheaded American
            hostage Nicholas Berg in May 2004.
                (8) In May 2004, Zarqawi was implicated in a car bombing
            that killed Izzadine Salim, the rotating president of the Iraqi
            Governing Council.
                (9) In November 2005, al-Qaeda in Iraq attacked three hotels
            in Amman, Jordan, killing at least 67 innocent civilians.
                (10) Zarqawi and his terrorist organization were directly
            responsible for numerous other brutal terrorist attacks against
            the American and coalition forces, Iraqi security forces and
            recruits, and innocent Iraqi civilians.
                (11) Zarqawi sought to turn Iraq into a safe haven for al-
            Qaeda.
                (12) To achieve that end, Zarqawi stated his opposition to
            the democratically elected government of Iraq and worked to
            divide the Iraqi people, foment sectarian violence, and incite a
            civil war in Iraq.
                (13) The members of the United States Armed Forces, the
            intelligence community, and other Federal agencies, along with
            coalition partners and the Iraqi Security Forces, should be
            commended for their courage and extraordinary efforts to track
            down the most wanted terrorist in Iraq and to secure a free and
            prosperous future for the people of Iraq.

        (b) Sense of Congress.--It is the sense of Congress that Congress--
                (1) commends the United States Armed Forces, the
            intelligence community, and other Federal agencies, along with
            coalition partners, for the actions taken through June 7, 2006,
            that resulted in the death of Abu Musab al-Zarqawi, the leader
            of the al-Qaeda in Iraq terrorist organization and the most
            wanted terrorist in Iraq;
                (2) commends the United States Armed Forces, the
            intelligence community, and other agencies for the action
            referred to in paragraph (1) and their exemplary performance in
            striving to bring freedom, democracy, and security to the people
            of Iraq;
                (3) commends the coalition partners of the United States,
            the new government of Iraq, and members of the Iraqi Security
            Forces for their invaluable assistance in the operation referred
            to in paragraph (1) and their extraordinary efforts to secure a
            free and prosperous Iraq;
                (4) commends United States civilian and military leadership
            for their continuing efforts to eliminate the leadership of al-
            Qaeda in Iraq, and also commends the new government of Iraq, led
            by Prime Minister Nouri al-Maliki, for its contribution to that
            achievement;
                (5) recognizes that the death of Abu Musab al-Zarqawi is a
            victory for American and coalition forces in the global war on
            terror and a blow to the al-Qaeda terrorist organization;
                (6) commends Iraqi Prime Minister Nouri al-Maliki on the
            finalization of the new Iraqi cabinet;
                (7) urges the democratically elected government in Iraq to
            use this opportunity to defeat the terrorist enemy, to put an
            end to ethnic and sectarian violence, and to achieve a free,
            prosperous, and secure future for Iraq; and
                (8) affirms that the Congress will continue to support the
            United States Armed Forces, the democratically elected unity

    [[Page 120 STAT. 2430]]

            government of Iraq, and the people of Iraq in their quest to
            secure a free, prosperous, and democratic Iraq.
    SEC. <<NOTE: 22 USC 2776a.>> 1231. ANNUAL REPORT ON FOREIGN SALES
                              OF SIGNIFICANT MILITARY EQUIPMENT
                              MANUFACTURED IN THE UNITED STATES.

        (a) Report Required.--Not later than March 31 of each year, the
    Secretary of Defense shall submit to the congressional defense
    committees a report on foreign military sales and direct sales to
    foreign entities of significant military equipment manufactured in the
    United States during the preceding calendar year.
        (b) Contents.--Each report required by subsection (a) shall
    indicate, for each sale of significant military equipment in excess of
    $2,000,000--
                (1) the nature of the equipment and the dollar value of the
            sale;
                (2) the country to which the equipment was sold; and
                (3) the manufacturer of the equipment and the State in which
            the equipment was manufactured.

        (c) Public Availability.--The Secretary of Defense shall make each
    report required by subsection (a) publicly available to the maximum
    extent practicable.
        (d) Significant Military Equipment Defined.--In this section, the
    term ``significant military equipment'' has the meaning given the term
    in section 47(9) of the Arms Export Control Act (22 U.S.C. 2794(9)
    note).

       TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER
                                  SOVIET UNION

    Sec. 1301. Specification of Cooperative Threat Reduction programs and
               funds.
    Sec. 1302. Funding allocations.
    Sec. 1303. Extension of temporary authority to waive limitation on
               funding for chemical weapons destruction facility in Russia.
    Sec. 1304. National Academy of Sciences study of prevention of
               proliferation of biological weapons.

    SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS
                              AND FUNDS.

        (a) Specification of CTR Programs.--For purposes of section 301 and
    other provisions of this Act, Cooperative Threat Reduction programs are
    the programs specified in section 1501(b) of the National Defense
    Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat.
    2731; 50 U.S.C. 2362 note).
        (b) Fiscal Year 2007 Cooperative Threat Reduction Funds Defined.--As
    used in this title, the term ``fiscal year 2007 Cooperative Threat
    Reduction funds'' means the funds appropriated pursuant to the
    authorization of appropriations in section 301 for Cooperative Threat
    Reduction programs.
        (c) Availability of Funds.--Funds appropriated pursuant to the
    authorization of appropriations in section 301 for Cooperative Threat
    Reduction programs shall be available for obligation for three fiscal
    years.

    [[Page 120 STAT. 2431]]

    SEC. 1302. FUNDING ALLOCATIONS.

        (a) Funding for Specific Purposes.--Of the $372,128,000 authorized
    to be appropriated to the Department of Defense for fiscal year 2007 in
    section 301(19) for Cooperative Threat Reduction programs, the following
    amounts may be obligated for the purposes specified:
                (1) For strategic offensive arms elimination in Russia,
            $76,985,000.
                (2) For nuclear weapons storage security in Russia,
            $87,100,000.
                (3) For nuclear weapons transportation security in Russia,
            $33,000,000.
                (4) For weapons of mass destruction proliferation prevention
            in the states of the former Soviet Union, $37,486,000.
                (5) For biological weapons proliferation prevention in the
            former Soviet Union, $68,357,000.
                (6) For chemical weapons destruction in Russia, $42,700,000.
                (7) For defense and military contacts, $8,000,000.
                (8) For activities designated as Other Assessments/
            Administrative Support, $18,500,000.

        (b) Report on Obligation or Expenditure of Funds for Other
    Purposes.--No fiscal year 2007 Cooperative Threat Reduction funds may be
    obligated or expended for a purpose other than a purpose listed in
    paragraphs (1) through (8) of subsection (a) until 30 days after the
    date that the Secretary of Defense submits to Congress a report on the
    purpose for which the funds will be obligated or expended and the amount
    of funds to be obligated or expended. Nothing in the preceding sentence
    shall be construed as authorizing the obligation or expenditure of
    fiscal year 2007 Cooperative Threat Reduction funds for a purpose for
    which the obligation or expenditure of such funds is specifically
    prohibited under this title or any other provision of law.
        (c) Limited Authority to Vary Individual Amounts.--
                (1) In general.--Subject to paragraphs (2) and (3), in any
            case in which the Secretary of Defense determines that it is
            necessary to do so in the national interest, the Secretary may
            obligate amounts appropriated for fiscal year 2007 for a purpose
            listed in any of the paragraphs in subsection (a) in excess of
            the specific amount authorized for that purpose.
                (2) Notice-and-wait required.--An obligation of funds for a
            purpose stated in any of the paragraphs in subsection (a) in
            excess of the specific amount authorized for such purpose may be
            made using the authority provided in paragraph (1) only after--
                        (A) the Secretary submits to Congress notification
                    of the intent to do so together with a complete
                    discussion of the justification for doing so; and
                        (B) 15 days have elapsed following the date of the
                    notification.
                (3) Restriction.--The Secretary may not, under the authority
            provided in paragraph (1), obligate amounts for a purpose stated
            in any of paragraphs (6) through (8) of subsection (a) in excess
            of 125 percent of the specific amount authorized for such
            purpose.

    [[Page 120 STAT. 2432]]

    SEC. 1303. EXTENSION OF TEMPORARY AUTHORITY TO WAIVE LIMITATION ON
                              FUNDING FOR CHEMICAL WEAPONS DESTRUCTION
                              FACILITY IN RUSSIA.

        Section 1303 of the Ronald W. Reagan National Defense Authorization
    Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2094; 22 U.S.C.
    5952 note) is amended--
                (1) in subsection (a), by striking ``shall not apply for a
            calendar year for which the President submits to Congress a
            written certification'' and inserting the following: ``shall not
            apply for a calendar year to the chemical weapons destruction
            facility that is (as of 2006) under construction at Shchuch'ye
            in the Russian Federation, if the President submits to Congress
            a written certification, for the calendar year concerned,''; and
                (2) in subsection (b), by striking ``shall expire'' and all
            that follows through the period at the end and inserting ``is
            not effective for calendar years after calendar year 2011.''.
    SEC. 1304. NATIONAL ACADEMY OF SCIENCES STUDY OF PREVENTION OF
                              PROLIFERATION OF BIOLOGICAL WEAPONS.

        (a) Study Required.--Not later than 60 days after the date of the
    enactment of this Act, the Secretary of Defense shall enter into an
    arrangement with the National Academy of Sciences under which the
    Academy shall carry out a study to identify areas for further
    cooperation with Russia and other states of the former Soviet Union
    under the Cooperative Threat Reduction (CTR) program of the Department
    of Defense in the specific area of prevention of proliferation
    biological weapons.
        (b) Matters to Be Included in Study.--The Secretary shall provide
    for the study under subsection (a) to include the following:
                (1) A brief review of any ongoing or previously completed
            United States Government program (whether conducted through the
            Cooperative Threat Reduction program or otherwise) in the area
            of prevention of proliferation of biological weapons.
                (2) An identification of further cooperative work between
            the United States Government and foreign governments, including
            technical scientific cooperation, that could effectively be
            pursued in the area of prevention of proliferation of biological
            weapons and the objectives that such work would be designed to
            achieve.
                (3) An identification of any obstacles to designing and
            implementing a nonproliferation program (whether conducted
            through the Cooperative Threat Reduction program or otherwise)
            that could successfully accomplish the objectives identified
            pursuant to paragraph (2), together with recommendations for
            overcoming such obstacles, including recommendations in the area
            of coordination among relevant United States Government
            departments and agencies.

        (c) Report.--
                (1) Secretary of defense report.--Not later than December
            31, 2007, the Secretary of Defense shall submit to the Committee
            on Armed Services of the Senate and the Committee on Armed
            Services of the House of Representatives a report on the study
            carried out under subsection (a).
                (2) Matters to be incuded.--The report under paragraph (1)
            shall incude the following:

    [[Page 120 STAT. 2433]]

                        (A) The results of the study carried out under
                    subsection (a), including any report received from the
                    National Academy of Sciences on such study.
                        (B) An assessment of the study by the Secretary.
                        (C) an action plan for implementing the
                    recommendations from the study, if any, that the
                    Secretary has decided to pursue.
                (3) Form of submittal.--The report under paragraph (1) shall
            be submitted in unclassified form, but may include a classified
            annex.

        (d) Funding.--Of the amounts made available pursuant to the
    authorization of appropriations in section 301(19) for Cooperative
    Threat Reduction programs, not more than $150,000 shall be available to
    carry out this section.

      TITLE XIV--MATTERS RELATED TO DEFENSE AGAINST TERRORISM AND RELATED
                                SECURITY MATTERS

    Sec. 1401. Enhancement to authority to pay rewards for assistance in
               combating terrorism.
    Sec. 1402. Quarterly reports on Department of Defense response to threat
               posed by improvised explosive devices.
    Sec. 1403. Requirement that all military wheeled vehicles used in Iraq
               and Afghanistan outside of secure military operating bases be
               protected by Improvised Explosive Device (IED) jammers.
    Sec. 1404. Report on assessment process of Chairman of the Joint Chiefs
               of Staff relating to Global War on Terrorism.
    Sec. 1405. Treatment under Freedom of Information Act of certain
               confidential information shared with State and local
               personnel.
    Sec. 1406. Database of emergency response capabilities.

    SEC. 1401. ENHANCEMENT TO AUTHORITY TO PAY REWARDS FOR ASSISTANCE
                              IN COMBATING TERRORISM.

        (a) Increase in Delegation Limitation.--Paragraph (2) of section
    127b(c) of title 10, United States Code, is amended by striking
    ``$2,500'' and inserting ``$10,000''.
        (b) Expansion of Senior Officers to Whom Combatant Commander
    Authority May Be Delegated.--Such paragraph is further amended--
                (1) by inserting after ``deputy commander'' the following:
            ``, or to the commander of a command directly subordinate to
            that commander,''; and
                (2) by adding at the end the following new sentence: ``Such
            a delegation may be made to the commander of a command directly
            subordinate to the commander of a combatant command only with
            the approval of the Secretary of Defense, the Deputy Secretary
            of Defense, or an Under Secretary of Defense to whom authority
            has been delegated under subparagraph (1)(A).''.
    SEC. 1402. <<NOTE: 10 USC 113 note.>> QUARTERLY REPORTS ON
                              DEPARTMENT OF DEFENSE RESPONSE TO THREAT
                              POSED BY IMPROVISED EXPLOSIVE DEVICES.

         (a) Reports Required.--
                (1) Initial report.--Not later than 90 days after the date
            of the enactment of this Act, the Secretary of Defense shall
            submit to Congress a report--

    [[Page 120 STAT. 2434]]

                        (A) regarding the status of the threat posed to
                    United States and allied forces in Iraq and Afghanistan
                    by improvised explosive devices; and
                        (B) describing efforts being undertaken by the
                    Department of Defense to defeat that threat.
                (2) Supplemental quarterly reports.--After the submission of
            the report under paragraph (1), the Secretary shall submit to
            Congress a supplemental report, not later than 30 days after the
            end of each calendar-year quarter, to account for every reported
            incident involving the detonation or discovery of an improvised
            explosive device during the preceding quarter that involved
            United States or allied forces in Iraq and Afghanistan.
                (3) Classification of reports.--Reports under this section
            shall be transmitted in an unclassified manner with a classified
            annex, if necessary.

        (b) Joint IED Defeat Organization and Related Offices.--Each report
    under subsection (a) shall provide the following information regarding
    the joint entity in the Office of the Secretary of Defense known as the
    ``Joint IED Defeat Organization'' and those portions of all other
    organizational elements within the Department of Defense that are
    focused on countering improvised explosive devices:
                (1) The number of Department of Defense personnel assigned
            to the Joint IED Defeat Organization and each other
            organizational element.
                (2) The major locations to which such personnel are assigned
            and the organizational structure of those elements.
                (3) The projected budget of the Joint IED Defeat
            Organization and those other elements relating to the counter-
            IED mission.
                (4) The level of funding required for administrative costs
            relating to the counter-IED mission.

        (c) Existing Threat and Counter Measures.--Each report under
    subsection (a) shall include the following information regarding the
    threat posed by improvised explosive devices and the countermeasures
    employed to defeat those threats:
                (1) The number of improvised explosive devices being
            encountered by United States and allied military personnel,
            including general trends in tactics and technology used by the
            enemy.
                (2) Passive countermeasures employed and the success rate of
            each such countermeasure.
                (3) Active countermeasures employed and the success rate of
            each such countermeasure.
                (4) Any evidence of assistance to the enemy by foreign
            countries or other entities not directly involved in fighting
            United States and allied forces in Iraq and Afghanistan.
                (5) A summary of data collected and reports generated by the
            Department of Defense on efforts to counter improvised explosive
            devices in Iraq and Afghanistan and other fronts in the Global
            War on Terrorism.

        (d) Research, Development, Test, and Evaluation of New
    Countermeasures.--Each report under subsection (a) shall include the
    following information regarding research, development, test, and
    evaluation activities relating to new active and passive countermeasures
    and any impediments to those activities:

    [[Page 120 STAT. 2435]]

                (1) The status of any effort within the Department of
            Defense to conduct research, development, test, and evaluation
            of passive and active countermeasures and to accelerate the
            introduction of those countermeasures into deployed units.
                (2) Impediments to introduction of new passive and active
            countermeasures.

        (e) Interdiction Efforts.--
                (1) Description of interdiction efforts.--Each report under
            subsection (a) shall identify those portions of any office
            within the Department of Defense (in addition to those discussed
            pursuant to subsection (b)) that are focused on interdiction of
            improvised explosive devices, together with the personnel and
            funding requirements for that office (as specified in subsection
            (b)) and the success of the interdiction efforts of that office.
                (2) Interdiction defined.--For purposes of this subsection,
            the term ``interdiction'' includes--
                        (A) the development of intelligence regarding
                    persons and locations involved in the manufacture or
                    deployment of improvised explosive devices; and
                        (B) subsequent action against those persons or
                    locations, including efforts to prevent emplacement of
                    improvised explosive devices.
    SEC. 1403. REQUIREMENT THAT ALL MILITARY WHEELED VEHICLES USED IN
                              IRAQ AND AFGHANISTAN OUTSIDE OF SECURE
                              MILITARY OPERATING BASES BE PROTECTED BY
                              IMPROVISED EXPLOSIVE DEVICE (IED)
                              JAMMERS.

        (a) Requirement.--The Secretary of Defense shall take such steps as
    necessary to ensure that by the end of fiscal year 2007 all United
    States military wheeled vehicles used in Iraq and Afghanistan outside of
    secure military operating bases are protected by Improvised Explosive
    Device (IED) jammers.
        (b) Funding.--The Secretary shall carry out subsection (a) using
    funds provided pursuant to authorizations of appropriations in title XV.
        (c) Report.--Not later than December 15, 2006, the Secretary of
    Defense shall submit to the congressional defense committees a report on
    the cost and timeline to complete compliance with the requirement in
    subsection (a) that by the end of fiscal year 2007 each vehicle
    described in that subsection be protected by an Improvised Explosive
    Device jammer.
    SEC. 1404. REPORT ON ASSESSMENT PROCESS OF CHAIRMAN OF THE JOINT
                              CHIEFS OF STAFF RELATING TO GLOBAL WAR
                              ON TERRORISM.

        Not later than March 1, 2007, the Secretary of Defense shall submit
    to the Committee on Armed Services of the Senate and the Committee on
    Armed Services of the House of Representatives a report on the findings
    of the semiannual assessment process relating to the Global War on
    Terrorism that is described in the annex to the National Military
    Strategic Plan for the War on Terrorism, issued by the Secretary of
    Defense on February 1, 2006, that is designated as the Implementation
    and Assessment Annex (Annex R).

    [[Page 120 STAT. 2436]]

    SEC. 1405. TREATMENT UNDER FREEDOM OF INFORMATION ACT OF CERTAIN
                              CONFIDENTIAL INFORMATION SHARED WITH
                              STATE AND LOCAL PERSONNEL.

        (a) In General.--Chapter 3 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 130d. Treatment under Freedom of Information Act of certain
                            confidential information shared with State and
                            local personnel

        ``Confidential business information and other sensitive but
    unclassified homeland security information in the possession of the
    Department of Defense that is shared, pursuant to section 892 of the
    Homeland Security Act of 2002 (6 U.S.C. 482), with State and local
    personnel (as defined in such section) shall not be subject to
    disclosure under section 552 of title 5 by virtue of the sharing of such
    information with such personnel.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``130d. Treatment under Freedom of Information Act of certain
               confidential information shared with State and local
               personnel.''.

    SEC. 1406. <<NOTE: 10 USC 113 note.>> DATABASE OF EMERGENCY
                              RESPONSE CAPABILITIES.

        The Secretary of Defense shall maintain a database of emergency
    response capabilities that includes the following:
                (1) The types of emergency response capabilities that each
            State's National Guard, as reported by the States, may be able
            to provide in response to a domestic natural or manmade
            disaster, both to their home States and under State-to-State
            mutual assistance agreements.
                (2) The types of emergency response capabilities that the
            Department of Defense may be able to provide in support of the
            National Response Plan's Emergency Support Functions, and
            identification of the units that provide these capabilities.

       TITLE XV--AUTHORIZATION FOR INCREASED COSTS DUE TO OPERATION IRAQI
                     FREEDOM AND OPERATION ENDURING FREEDOM

    Sec. 1501. Purpose.
    Sec. 1502. Army procurement.
    Sec. 1503. Navy and Marine Corps procurement.
    Sec. 1504. Air Force procurement.
    Sec. 1505. Defense-wide activities procurement.
    Sec. 1506. Research, development, test, and evaluation.
    Sec. 1507. Operation and maintenance.
    Sec. 1508. Defense Health Program.
    Sec. 1509. Classified programs.
    Sec. 1510. Military personnel.
    Sec. 1511. Treatment as additional authorizations.
    Sec. 1512. Transfer authority.
    Sec. 1513. Availability of funds.
    Sec. 1514. Joint Improvised Explosive Device Defeat Fund.
    Sec. 1515. Iraq Freedom Fund.
    Sec. 1516. Iraq Security Forces Fund.
    Sec. 1517. Afghanistan Security Forces Fund.
    Sec. 1518. Submittal to Congress of Department of Defense supplemental
               and cost of war execution reports.

    [[Page 120 STAT. 2437]]

    Sec. 1519. Limitation on availability of funds for certain purposes
               relating to Iraq.
    Sec. 1520. Intelligence Community Management Account.

    SEC. 1501. PURPOSE.

        The purpose of this title is to authorize estimated future emergency
    supplemental appropriations for the Department of Defense for fiscal
    year 2007 to provide funds for additional costs due to Operation Iraqi
    Freedom and Operation Enduring Freedom.
    SEC. 1502. ARMY PROCUREMENT.

        Funds are hereby authorized to be appropriated for fiscal year 2007
    for procurement accounts of the Army in amounts as follows:
                (1) For aircraft procurement, $1,524,300,000
                (2) For ammunition procurement, $48,591,000.
                (3) For weapons and tracked combat vehicles procurement,
            $3,022,836,000.
                (4) For other procurement, $4,636,810,000.
                (5) For missile procurement, $3,200,000.
    SEC. 1503. NAVY AND MARINE CORPS PROCUREMENT.

        (a) Navy.--Funds are hereby authorized to be appropriated for fiscal
    year 2007 for procurement accounts for the Navy in amounts as follows:
                (1) For aircraft procurement, $389,465,000
                (2) For weapons procurement, $109,400,000.
                (3) For other procurement, $14,600,000.

        (b) Marine Corps.--Funds are hereby authorized to be appropriated
    for fiscal year 2007 for the procurement account for the Marine Corps in
    the amount of $4,397,926,000.
        (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized
    to be appropriated for fiscal year 2007 for the procurement account for
    ammunition for the Navy and the Marine Corps in the amount of
    $151,439,000.
    SEC. 1504. AIR FORCE PROCUREMENT.

        Funds are hereby authorized to be appropriated for fiscal year 2007
    for procurement accounts for the Air Force in amounts as follows:
                (1) For aircraft procurement, $2,174,000,000.
                (2) For other procurement, $5,650,000.
    SEC. 1505. DEFENSE-WIDE ACTIVITIES PROCUREMENT.

         Funds are hereby authorized to be appropriated for fiscal year 2007
    for the procurement account for Defense-wide in the amount of
    $127,600,000.
    SEC. 1506. RESEARCH, DEVELOPMENT, TEST, AND EVALUATION.

         Funds are hereby authorized to be appropriated for fiscal year 2007
    for the use of the Department of Defense for research, development,
    test, and evaluation as follows:
                (1) For the Army, $2,639,000.
                (2) For the Navy, $7,856,000.
    SEC. 1507. OPERATION AND MAINTENANCE.

        Funds are hereby authorized to be appropriated for fiscal year 2007
    for the use of the Armed Forces for expenses, not otherwise provided
    for, for operation and maintenance, in amounts as follows:
                (1) For the Army, $28,045,387,000.
                (2) For the Navy, $2,007,948,000.

    [[Page 120 STAT. 2438]]

                (3) For the Marine Corps, $2,257,089,000.
                (4) For the Air Force, $2,478,906,000.
                (5) For Defense-wide activities, $1,544,614,000.
                (6) For the Army National Guard, $221,500,000.
                (7) For the Air National Guard, $2,000,000.
                (8) For the Army Reserve, $500,000.
    SEC. 1508. DEFENSE HEALTH PROGRAM.

        Funds are hereby authorized to be appropriated for the Department of
    Defense for fiscal year 2007 for expenses, not otherwise provided for,
    the Defense Health Program, in the amount of $869,200,000 for operation
    and maintenance.
    SEC. 1509. CLASSIFIED PROGRAMS.

        Funds are hereby authorized to be appropriated to the Department of
    Defense for fiscal year 2007 for classified programs, in the amount of
    $2,500,000,000.
    SEC. 1510. MILITARY PERSONNEL.

         There is hereby authorized to be appropriated to the Department of
    Defense for military personnel accounts for fiscal year 2007 a total of
    $8,106,979,000.
    SEC. 1511. TREATMENT AS ADDITIONAL AUTHORIZATIONS.

        The amounts authorized to be appropriated by this title are in
    addition to amounts otherwise authorized to be appropriated by this Act.
    SEC. 1512. TRANSFER AUTHORITY.

        (a) Authority To Transfer Authorizations.--
                (1) Authority.--Upon determination by the Secretary of
            Defense that such action is necessary in the national interest,
            the Secretary may transfer amounts of authorizations made
            available to the Department of Defense in this title for fiscal
            year 2007 between any such authorizations for that fiscal year
            (or any subdivisions thereof). Amounts of authorizations so
            transferred shall be merged with and be available for the same
            purposes as the authorization to which transferred.
                (2) Limitation.--The total amount of authorizations that the
            Secretary may transfer under the authority of this section may
            not exceed $2,500,000,000. The transfer authority provided in
            this section is in addition to any other transfer authority
            available to the Secretary of Defense.

        (b) Limitations.--The authority provided by this section to transfer
    authorizations--
                (1) may only be used to provide authority for items that
            have a higher priority than the items from which authority is
            transferred;
                (2) may not be used to provide authority for an item that
            has been denied authorization by Congress; and
                (3) may not be combined with the authority under section
            1001.

        (c) Effect on Authorization Amounts.--A transfer made from one
    account to another under the authority of this section shall be deemed
    to increase the amount authorized for the account to which the amount is
    transferred by an amount equal to the amount transferred.

    [[Page 120 STAT. 2439]]

        (d) Notice to Congress.--A transfer may be made under the authority
    of this section only after the Secretary of Defense--
                (1) consults with the chairmen and ranking members of the
            congressional defense committees with respect to the proposed
            transfer; and
                (2) after such consultation, notifies those committees in
            writing of the proposed transfer not less than five days before
            the transfer is made.
    SEC. 1513. AVAILABILITY OF FUNDS.

        Funds in this title shall be made available for obligation to the
    Army, Navy, Marine Corps, Air Force, and Defense-wide components by the
    end of the second quarter of fiscal year 2007.
    SEC. 1514. JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND.

        (a) Authorization of Appropriation.--Funds are hereby authorized for
    fiscal year 2007 for the Joint Improvised Explosive Device Defeat Fund
    in the amount of $2,100,000,000.
        (b) Use of Funds.--Funds appropriated pursuant to subsection (a)
    shall be available to the Secretary of Defense for the purpose of
    allowing the Director of the Joint Improvised Explosive Device Defeat
    Organization to investigate, develop, and provide equipment, supplies,
    services, training, facilities, personnel, and funds to assist United
    States forces in the defeat of improvised explosive devices.
        (c) Transfer Authority.--
                (1) Transfers authorized.--Amounts authorized to be
            appropriated by subsection (a) may be transferred from the Joint
            Improvised Explosive Device Defeat Fund to any of the following
            accounts and funds of the Department of Defense to accomplish
            the purposes provided in subsection (b):
                        (A) Military personnel accounts.
                        (B) Operation and maintenance accounts.
                        (C) Procurement accounts.
                        (D) Research, development, test, and evaluation
                    accounts.
                        (E) Defense working capital funds.
                (2) Additional transfer authority.--The transfer authority
            provided by paragraph (1) is in addition to any other transfer
            authority available to the Department of Defense.
                (3) Transfers back to the fund.--Upon determination that all
            or part of the funds transferred from the Joint Improvised
            Explosive Device Defeat Fund under paragraph (1) are not
            necessary for the purpose provided, such funds may be
            transferred back to the Joint Improvised Explosive Device Defeat
            Fund.
                (4) Prior notice to congressional committees.--Funds may not
            be obligated from the Joint Improvised Explosive Device Defeat
            Fund, or transferred under the authority provided in paragraph
            (1), until five days after the date on which the Secretary of
            Defense notifies the congressional defense committees in writing
            of the details of the proposed obligation or transfer.
                (5) Effect on authorization amounts.--A transfer of an
            amount to an account under the authority in paragraph (1) shall
            be deemed to increase the amount authorized for such account by
            an amount equal to the amount transferred.

        (d) Management Plan.--

    [[Page 120 STAT. 2440]]

                (1) Plan required.--Not later than 60 days after the date of
            the enactment of this Act, the Secretary shall submit to the
            congressional defense committees a plan for the intended
            management and use of the Joint Improvised Explosive Device
            Defeat Fund.
                (2) Matter to be included.--The plan required by paragraph
            (1) shall include an update of the plan required in the
            paragraph under the heading ``Joint Improvised Explosive Device
            Defeat Fund'' in chapter 2 of title I of the Emergency
            Supplemental Appropriations Act for Defense, the Global War on
            Terror, and Hurricane Recovery, 2006 (Public Law 109-234; 120
            Stat. 424), including identification of--
                        (A) year-to-date transfers and obligations; and
                        (B) projected transfers and obligations through
                    September 30, 2007.

        (e) Quarterly Reports.--Not later than 30 days after the end of each
    fiscal-year quarter, the Secretary shall submit to the congressional
    defense committees a report summarizing the detail of any obligation or
    transfer of funds from the Joint Improvised Explosive Device Defeat Fund
    plan required by subsection (d).
        (f) Duration of Authority.--Amounts appropriated to the Fund are
    available for obligation or transfer from the Fund until September 30,
    2009.
    SEC. 1515. IRAQ FREEDOM FUND.

        (a) In General.--Funds are hereby authorized to be appropriated for
    fiscal year 2007 for the Iraq Freedom Fund in the amount of $50,000,000.
        (b) Transfer.--
                (1) Transfer authorized.--Subject to paragraph (2), amounts
            authorized to be appropriated by subsection (a) may be
            transferred from the Iraq Freedom Fund to any accounts as
            follows:
                        (A) Operation and maintenance accounts of the Armed
                    Forces.
                        (B) Military personnel accounts.
                        (C) Research, development, test, and evaluation
                    accounts of the Department of Defense.
                        (D) Procurement accounts of the Department of
                    Defense.
                        (E) Accounts providing funding for classified
                    programs.
                        (F) The operating expenses account of the Coast
                    Guard.
                (2) Notice to congress.--A transfer may not be made under
            the authority in paragraph (1) until five days after the date on
            which the Secretary of Defense notifies the congressional
            defense committees in writing of the transfer.
                (3) Treatment of transferred funds.--Amounts transferred to
            an account under the authority in paragraph (1) shall be merged
            with amounts in such account and shall be made available for the
            same purposes, and subject to the same conditions and
            limitations, as amounts in such account.
                (4) Effect on authorization amounts.--A transfer of an
            amount to an account under the authority in paragraph (1) shall
            be deemed to increase the amount authorized for such account by
            an amount equal to the amount transferred.

    [[Page 120 STAT. 2441]]

    SEC. 1516. IRAQ SECURITY FORCES FUND.

        (a) Authorization of Appropriations.--Funds are hereby authorized to
    be appropriated for fiscal year 2007 for the Iraq Security Forces Fund
    in the amount of $1,734,000,000.
        (b) Use of Funds.--
                (1) In general.--Funds appropriated pursuant to subsection
            (a) shall be available to the Secretary of Defense for the
            purpose of allowing the Commander, Multi-National Security
            Transition Command--Iraq, to provide assistance to the security
            forces of Iraq.
                (2) Types of assistance authorized.--Assistance provided
            under this section may include the provision of equipment,
            supplies, services, training, facility and infrastructure
            repair, renovation, construction, and funding.
                (3) Secretary of state concurrence.--Assistance may be
            provided under this section only with the concurrence of the
            Secretary of State.

        (c) Authority in Addition to Other Authorities.--The authority to
    provide assistance under this section is in addition to any other
    authority to provide assistance to foreign nations.
        (d) Transfer Authority.--
                (1) Transfers authorized.--Subject to paragraph (2), amounts
            authorized to be appropriated by subsection (a) may be
            transferred from the Iraq Security Forces Fund to any of the
            following accounts and funds of the Department of Defense to
            accomplish the purposes provided in subsection (b):
                        (A) Military personnel accounts.
                        (B) Operation and maintenance accounts.
                        (C) Procurement accounts.
                        (D) Research, development, test, and evaluation
                    accounts.
                        (E) Defense working capital funds.
                        (F) Overseas Humanitarian, Disaster, and Civic Aid
                    account.
                (2) Additional authority.--The transfer authority provided
            by paragraph (1) is in addition to any other transfer authority
            available to the Department of Defense.
                (3) Transfers back to the fund.--Upon determination that all
            or part of the funds transferred from the Iraq Security Forces
            Fund under paragraph (1) are not necessary for the purpose
            provided, such funds may be transferred back to the Iraq
            Security Forces Fund.
                (4) Prior notice to congressional committees.--Funds may not
            be obligated from the Iraq Security Forces Fund, or transferred
            under the authority provided in paragraph (1), until five days
            after the date on which the Secretary of Defense notifies the
            congressional defense committees in writing of the details of
            the proposed obligation or transfer.
                (5) Effect on authorization amounts.--A transfer of an
            amount to an account under the authority in paragraph (1) shall
            be deemed to increase the amount authorized for such account by
            an amount equal to the amount transferred.

        (e) Contributions.--
                (1) Authority to accept contributions.--Contributions of
            funds for the purposes provided in subsection (b) from any
            person, foreign government, or international organization may

    [[Page 120 STAT. 2442]]

            be credited to the Iraq Security Forces Fund and used for the
            purposes provided in subsection (b).
                (2) Limitation.--The Secretary may not accept a contribution
            under this subsection if the acceptance of the contribution
            would compromise or appear to compromise the integrity of any
            program of the Department of Defense.
                (3) Notification.--The Secretary shall notify the
            congressional defense committees in writing upon the receipt and
            upon the transfer of any contribution. Such notice shall
            delineate the sources and amounts of the funds received and the
            specific use of such contributions.

        (f) Quarterly Reports.--Not later than 30 days after the end of each
    fiscal-year quarter, the Secretary shall submit to the congressional
    defense committees a report summarizing the details of any obligation or
    transfer of funds from the Iraq Security Forces Fund during the
    preceding quarter.
        (g) Duration of Authority.--Amounts appropriated or contributed to
    the Fund are available for obligation or transfer from the Iraq Security
    Forces Fund until September 30, 2008.
    SEC. 1517. AFGHANISTAN SECURITY FORCES FUND.

        (a) Authorization of Appropriations.--Funds are hereby authorized to
    be appropriated for fiscal year 2007 for the Afghanistan Security Forces
    Fund in the amount of $1,446,300,000.
        (b) Use of Funds.--
                (1) In general.--Funds appropriated pursuant to subsection
            (a) shall be available to the Secretary of Defense for the
            purpose of allowing the Commander, Office of Security
            Cooperation--Afghanistan, to provide assistance to the security
            forces of Afghanistan.
                (2) Types of assistance authorized.--Assistance provided
            under this section may include the provision of equipment,
            supplies, services, training, facility and infrastructure
            repair, renovation, construction, and funding.
                (3) Secretary of state concurrence.--Assistance may be
            provided under this section only with the concurrence of the
            Secretary of State.

        (c) Authority in Addition to Other Authorities.--The authority to
    provide assistance under this section is in addition to any other
    authority to provide assistance to foreign nations.
        (d) Transfer Authority.--
                (1) Transfers authorized.--Subject to paragraph (2), amounts
            authorized to be appropriated by subsection (a) may be
            transferred from the Afghanistan Security Forces Fund to any of
            the following accounts and funds of the Department of Defense to
            accomplish the purposes provided in subsection (b):
                        (A) Military personnel accounts.
                        (B) Operation and maintenance accounts.
                        (C) Procurement accounts.
                        (D) Research, development, test, and evaluation
                    accounts.
                        (E) Defense working capital funds.
                        (F) Overseas Humanitarian, Disaster, and Civic Aid
                    account.

    [[Page 120 STAT. 2443]]

                (2) Additional authority.--The transfer authority provided
            by paragraph (1) is in addition to any other transfer authority
            available to the Department of Defense.
                (3) Transfers back to the fund.--Upon determination that all
            or part of the funds transferred from the Afghanistan Security
            Forces Fund under paragraph (1) are not necessary for the
            purpose provided, such funds may be transferred back to the
            Afghanistan Security Forces Fund.
                (4) Prior notice to congressional committees.--Funds may not
            be obligated from the Afghanistan Security Forces Fund, or
            transferred under the authority provided in paragraph (1), until
            five days after the date on which the Secretary of Defense
            notifies the congressional defense committees in writing of the
            details of the proposed obligation or transfer.
                (5) Effect on authorization amounts.--A transfer of an
            amount to an account under the authority in paragraph (1) shall
            be deemed to increase the amount authorized for such account by
            an amount equal to the amount transferred.

        (e) Contributions.--
                (1) Authority to accept contributions.--Contributions of
            funds for the purposes provided in subsection (b) from any
            person, foreign government, or international organization may be
            credited to the Afghanistan Security Forces Fund and used for
            the purposes provided in subsection (b).
                (2) Limitation.--The Secretary may not accept a contribution
            under this subsection if the acceptance of the contribution
            would compromise or appear to compromise the integrity of any
            program of the Department of Defense.
                (3) Notification.--The Secretary shall notify the
            congressional defense committees in writing upon the receipt and
            upon the transfer of any contribution. Such notice shall
            delineate the sources and amounts of the funds received and the
            specific use of such contributions.

        (f) Quarterly Reports.--Not later than 30 days after the end of each
    fiscal-year quarter, the Secretary shall submit to the congressional
    defense committees a report summarizing the details of any obligation or
    transfer of funds from the Afghanistan Security Forces Fund during the
    preceding quarter.
        (g) Duration of Authority.--Amounts appropriated or contributed to
    the Fund are available for obligation or transfer from the Afghanistan
    Security Forces Fund until September 30, 2008.
    SEC. 1518. 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''.

    [[Page 120 STAT. 2444]]

    SEC. 1519. LIMITATION ON AVAILABILITY OF FUNDS FOR CERTAIN
                              PURPOSES RELATING TO IRAQ.

        No funds appropriated pursuant to an authorization of appropriations
    in this Act may be obligated or expended for a purpose as follows:
                (1) To establish any military installation or base for the
            purpose of providing for the permanent stationing of United
            States Armed Forces in Iraq.
                (2) To exercise United States economic control of the oil
            resources of Iraq.
    SEC. 1520. INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT.

        There is hereby authorized to be appropriated for the Intelligence
    Community Management Account for fiscal year 2007 a total of
    $19,265,000.

    DIVISION <<NOTE: Military Construction Authorization Act for Fiscal Year
    2007.>> B--MILITARY CONSTRUCTION AUTHORIZATIONS
    SEC. 2001. SHORT TITLE.

        This division may be cited as the ``Military Construction
    Authorization Act for Fiscal Year 2007''.
    SEC. 2002. RECOGNITION OF REPRESENTATIVE JOEL HEFLEY UPON HIS
                              RETIREMENT FROM THE HOUSE OF
                              REPRESENTATIVES.

        (a) Findings.--Congress makes the following findings:
                (1) Representative Joel Hefley was elected to represent
            Colorado's 5th Congressional district in 1986 and has served in
            the House of Representatives since that time with distinction,
            class, integrity, and honor.
                (2) Representative Hefley has served on the Committee on
            Armed Services of the House of Representatives for 18 years,
            including service as Chairman of the Subcommittee on Military
            Installations and Facilities from 1995 through 2000 and, since
            2001, as Chairman of the Subcommittee on Readiness.
                (3) Representative Hefley's colleagues know him to be a fair
            and effective lawmaker who works for the national interest while
            never forgetting his Western roots.
                (4) Representative Hefley's efforts on the Committee on
            Armed Services have been instrumental to the military value of,
            and quality of life at, installations in the State of Colorado,
            including Fort Carson, Cheyenne Mountain, Peterson Air Force
            Base, Schriever Air Force Base, Buckley Air Force Base, and the
            United States Air Force Academy.
                (5) Representative Hefley was a leader in efforts to retain
            and expand Fort Carson as an essential part of the national
            defense system during the Defense Base Closure and Realignment
            process.
                (6) Representative Hefley has consistently advocated for
            providing members of the Armed Forces and their families with
            quality, safe, and affordable housing and supportive
            communities.
                (7) As a primary architect of the Military Housing
            Privatization Initiative, Representative Hefley helped lead

    [[Page 120 STAT. 2445]]

            congressional efforts to establish this initiative to eliminate
            inadequate housing on military installations, and the first
            pilot program was located at Fort Carson.
                (8) Representative Hefley's leadership on the Military
            Housing Privatization Initiative has allowed for the
            privatization of more than 121,000 units of military family
            housing, which brought meaningful improvements to living
            conditions for thousands of members of the Armed Forces and
            their spouses and children at installations throughout the
            United States.

        (b) Recognition.--Congress recognizes and commends Representative
    Joel Hefley for his 20 years of service to benefit the people of
    Colorado, members of the Armed Forces and their families, veterans, and
    the United States.

                                 TITLE XXI--ARMY

    Sec. 2101. Authorized Army construction and land acquisition projects
    Sec. 2102. Family housing
    Sec. 2103. Improvements to military family housing units
    Sec. 2104. Authorization of appropriations, Army

    SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION
                              PROJECTS.

        (a) Inside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2104(a)(1), the
    Secretary of the Army may acquire real property and carry out military
    construction projects for the installations or locations inside the
    United States, and in the amounts, set forth in the following table:

                         Army: Inside the United States
    ------------------------------------------------------------------------
                                         Installation or
                 State                       Location             Amount
    ------------------------------------------------------------------------
    Alabama........................  Redstone Arsenal.......     $24,300,000
    Alaska.........................  Fort Richardson........     $72,300,000
                                     Fort Wainwright........      $8,800,000
                                     Fort Irwin.............     $18,200,000
                                     Fort Carson............     $30,800,000
                                     Fort Gillem............     $15,000,000
                                     Fort Stewart/Hunter         $95,300,000
                                      Army Air Field.
    Hawaii.........................  Schofield Barracks.....     $54,500,000
    Kansas.........................  Fort Leavenworth.......     $23,200,000
                                     Fort Riley.............     $47,400,000
    Kentucky.......................  Blue Grass Army Depot..      $3,500,000
                                     Fort Campbell..........    $135,300,000
    Louisiana......................  Fort Polk..............     $15,900,000
    Maryland.......................  Aberdeen Proving Ground      $8,800,000
                                     Fort Detrick...........     $12,400,000
    Michigan.......................  Detroit Arsenal........     $18,500,000
    Missouri.......................  Fort Leonard Wood......     $34,500,000
    New Jersey.....................  Picatinny Arsenal......      $9,900,000
    New York.......................  Fort Drum..............    $218,600,000
    North Carolina.................  Fort Bragg.............     $96,900,000
                                     Sunny Point Military        $46,000,000
                                      Ocean Terminal.
    Oklahoma.......................  McAlester Army               $3,050,000
                                      Ammunition Plant.
    Pennsylvania...................  Letterkenny Depot......      $7,500,000
    Texas..........................  Corpus Christi Army         $12,200,000
                                      Depot.
                                     Fort Bliss.............      $8,200,000
                                     Fort Hood..............     $93,000,000
                                     Red River Depot........      $6,000,000
    Utah...........................  Dugway Proving Ground..     $14,400,000

    [[Page 120 STAT. 2446]]

    Virginia.......................  Fort Belvoir...........     $27,000,000
    ------------------------------------------------------------------------

                         Army: Inside the United States
    ------------------------------------------------------------------------
                                           Installation or
                   State                      Location            Amount
    ------------------------------------------------------------------------
    Alabama...........................  Redstone Arsenal....     $24,300,000
    Alaska............................  Fort Richardson.....     $72,300,000
                                        Fort Wainwright.....      $8,800,000
    California........................  Fort Irwin..........     $18,200,000
    Colorado..........................  Fort Carson.........     $30,800,000
    Georgia...........................  Fort Gillem.........     $15,000,000
                                        Fort Stewart/Hunter      $95,300,000
                                         Army Air Field.
    Hawaii............................  Schofield Barracks..     $54,500,000
    Kansas............................  Fort Leavenworth....     $23,200,000
                                        Fort Riley..........     $47,400,000
    Kentucky..........................  Blue Grass Army           $3,500,000
                                         Depot.
                                        Fort Campbell.......    $135,300,000
    Louisiana.........................  Fort Polk...........     $15,900,000
    Maryland..........................  Aberdeen Proving          $8,800,000
                                         Ground.
                                        Fort Detrick........     $12,400,000
    Michigan..........................  Detroit Arsenal.....     $18,500,000
    Missouri..........................  Fort Leonard Wood...     $34,500,000
    New Jersey........................  Picatinny Arsenal...      $9,900,000
    New York..........................  Fort Drum...........    $218,600,000
    North Carolina....................  Fort Bragg..........     $96,900,000
                                        Sunny Point Military     $46,000,000
                                         Ocean Terminal.
    Oklahoma..........................  McAlester Army            $3,050,000
                                         Ammunition Plant.
    Pennsylvania......................  Letterkenny Depot...      $7,500,000
    Texas.............................  Corpus Christi Army      $12,200,000
                                         Depot.
                                        Fort Bliss..........      $8,200,000
                                        Fort Hood...........     $93,000,000
                                        Red River Depot.....      $6,000,000
    Utah..............................  Dugway Proving           $14,400,000
                                         Ground.
    Virginia..........................  Fort Belvoir........     $27,000,000
    ------------------------------------------------------------------------

        (b) Outside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2104(a)(2), the
    Secretary of the Army may acquire real property and carry out military
    construction projects for the installations or locations outside the
    United States, and in the amounts, set forth in the following table:

                         Army: Outside the United States
    ------------------------------------------------------------------------
                                          Installation or
                 Country                      Location            Amount
    ------------------------------------------------------------------------
    Germany..........................  Grafenwoehr..........    $157,632,000
                                       Vilseck..............     $19,000,000
    Italy............................  Vicenza..............    $223,000,000
    Japan............................  Camp Hansen..........      $7,150,000
    Korea............................  Camp Humphreys.......     $61,600,000
                                       Yongpyong............      $7,400,000
    Romania..........................  Babadag Range........     $34,800,000
    ------------------------------------------------------------------------

    [[Page 120 STAT. 2447]]

    SEC. 2102. FAMILY HOUSING.

        (a) Construction and Acquisition.--Using amounts appropriated
    pursuant to the authorization of appropriations in section
    2104(a)(5)(A), the Secretary of the Army may construct or acquire family
    housing units (including land acquisition and supporting facilities) at
    the installations or locations, in the number of units, and in the
    amounts set forth in the following table:

                                                  Army: Family Housing
    ----------------------------------------------------------------------------------------------------------------
                      State                    Installation or Location              Units                Amount
    ----------------------------------------------------------------------------------------------------------------
    Alaska..................................  Fort Richardson...........  162                            $70,000,000
                                              Fort Wainwright...........  234                           $132,000,000
    Arizona.................................  Fort Huachuca.............  119                            $32,000,000
    Arkansas................................  Pine Bluff Arsensal.......  10                              $2,900,000
    Wisconsin...............................  Fort McCoyine.............  13                              $4,900,000
    ----------------------------------------------------------------------------------------------------------------

        (b) Planning and Design.--Using amounts appropriated pursuant to the
    authorization of appropriations in section 2104(a)(5)(A), the Secretary
    of the Army may carry out architectural and engineering services and
    construction design activities with respect to the construction or
    improvement of family housing units in an amount not to exceed
    $16,332,000.
    SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

        Subject to section 2825 of title 10, United States Code, and using
    amounts appropriated pursuant to the authorization of appropriations in
    section 2104(a)(5)(A), the Secretary of the Army may improve existing
    military family housing units in an amount not to exceed $320,659,000.
    SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

        (a) Authorization of Appropriations.--Funds are hereby authorized to
    be appropriated for fiscal years beginning after September 30, 2006, for
    military construction, land acquisition, and military family housing
    functions of the Department of the Army in the total amount of
    $3,518,450,000 as follows:
                (1) For military construction projects inside the United
            States authorized by section 2101(a), $1,362,200,000.
                (2) For military construction projects outside the United
            States authorized by section 2101(b), $510,582,000.
                (3) For unspecified minor military construction projects
            authorized by section 2805 of title 10, United States Code,
            $23,930,000.
                (4) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $219,830,000.
                (5) For military family housing functions:
                        (A) For construction and acquisition, planning and
                    design, and improvement of military family housing and
                    facilities, $578,791,000.
                        (B) For support of military family housing
                    (including the functions described in section 2833 of
                    title 10, United States Code), $675,617,000.
                (6) For the construction of increment 2 of a barracks
            complex at Fort Drum, New York, authorized by section 2101(a)

    [[Page 120 STAT. 2448]]

            of the Military Construction Authorization Act for Fiscal Year
            2006 (division B of Public Law 109-163; 119 Stat. 3485),
            $16,500,000.
                (7) For the construction of increment 2 of a barracks
            complex for the 2nd Brigade at Fort Bragg, North Carolina,
            authorized by section 2101(a) of the Military Construction
            Authorization Act for Fiscal Year 2006 (division B of Public Law
            109-163; 119 Stat. 3485), $31,000,000.
                (8) For the construction of increment 2 of a barracks
            complex for the 3rd Brigade at Fort Bragg, North Carolina,
            authorized by section 2101(a) of the Military Construction
            Authorization Act for Fiscal Year 2006 (division B of Public Law
            109-163; 119 Stat. 3485), $50,000,000.
                (9) For the construction of increment 2 of a barracks
            complex for divisional artillery at Fort Bragg, North Carolina,
            authorized by section 2101(a) of the Military Construction
            Authorization Act for Fiscal Year 2006 (division B of Public Law
            109-163; 119 Stat. 3485), $37,000,000.
                (10) For the construction of increment 2 of a defense access
            road at Fort Belvoir, Virginia, authorized by section 2101(a) of
            the Military Construction Authorization Act for Fiscal Year 2006
            (division B of Public Law 109-163; 119 Stat. 3486), $13,000,000.

        (b) Limitation on Total Cost of Construction Projects.--
    Notwithstanding the cost variations authorized by section 2853 of title
    10, United States Code, and any other cost variation authorized by law,
    the total cost of all projects carried out under section 2101 of this
    Act may not exceed the sum of the following:
                (1) The total amount authorized to be appropriated under
            paragraphs (1) and (2) of subsection (a).
                (2) $306,000,000 (the balance of the amount authorized under
            section 2101(a) for construction of a brigade complex for Fort
            Lewis, Washington).

                                TITLE XXII--NAVY

    Sec. 2201. Authorized Navy construction and land acquisition projects.
    Sec. 2202. Family housing.
    Sec. 2203. Improvements to military family housing units.
    Sec. 2204. Authorization of appropriations, Navy.
    Sec. 2205. Modification of authority to carry out certain fiscal year
               2004, 2005, and 2006 projects.

    SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION
                              PROJECTS.

        (a) Inside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2204(a)(1), the
    Secretary of the Navy may acquire real property and carry out military
    construction projects for the installations or locations inside the
    United States, and in the amounts, set forth in the following table:

                         Navy: Inside the United States
    ------------------------------------------------------------------------
                                         Installation or
                 State                       Location             Amount
    ------------------------------------------------------------------------
    Arizona........................  Marine Corps Air             $5,966,000
                                      Station, Yuma.
    California.....................  Marine Corps Air             $6,412,000
                                      Station, Camp
                                      Pendleton.

    [[Page 120 STAT. 2449]]

                                     Marine Corps Air             $2,968,000
                                      Station, Miramar.
                                     Marine Corps Base, Camp    $106,142,000
                                      Pendleton.
                                     Marine Corps Base,          $27,217,000
                                      Twentynine Palms.
                                     Naval Air Station,          $21,535,000
                                      North Island.
                                     Naval Support Activity,      $7,380,000
                                      Monterey.
    Connecticut....................  Naval Submarine Base,        $9,580,000
                                      New London.
    Florida........................  Cape Canaveral.........      $9,900,000
                                     Naval Air Station,          $13,486,000
                                      Pensacola.
    Georgia........................  Marine Corps Logistics      $70,540,000
                                      Base, Albany.
                                     Navy/Naval Submarine        $20,282,000
                                      Base, Kings Bay.
    Hawaii.........................  Naval Base, Pearl           $48,338,000
                                      Harbor.
                                     Naval Magazine, Pearl        $6,010,000
                                      Harbor.
                                     Naval Shipyard, Pearl       $22,000,000
                                      Harbor.
    Indiana........................  Naval Support Activity,      $6,730,000
                                      Crane.
    Maine..........................  Portsmouth Naval             $9,650,000
                                      Shipyard.
    Maryland.......................  Naval Air Station,          $16,316,000
                                      Patuxent River.
                                     NMIC/Naval Support          $67,939,000
                                      Activity, Suitland.
    Mississippi....................  Naval Air Station,           $5,870,000
                                      Meridian.
    Nevada.........................  Naval Air Station,           $7,730,000
                                      Fallon.
    North Carolina.................  Marine Corps Air             $2,790,000
                                      Station, Cherry Point.
                                     Marine Corps Air            $21,500,000
                                      Station, New River.
                                     Marine Corps Base, Camp    $160,904,000
                                      Lejeune.
    Rhode Island...................  Naval Station, Newport.      $3,308,000
    South Carolina.................  Marine Corps Air            $25,575,000
                                      Station, Beaufort.
    Virginia.......................  Marine Corps Base,          $30,628,000
                                      Quantico.
                                     Naval Shipyard, Norfolk     $34,952,000
                                     Naval Special Weapons        $9,850,000
                                      Center, Dahlgren.
                                     Naval Station, Norfolk.     $12,062,000
                                     Naval Support Activity,     $41,712,000
                                      Norfolk.
    Washington.....................  Naval Air Station,          $67,303,000
                                      Whidbey Island.
                                     Naval Base, Kitsap.....     $17,617,000
    ------------------------------------------------------------------------

        (b) Outside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2204(a)(2), the
    Secretary of the Navy may acquire real property and carry out military
    construction projects for the installations or locations outside the
    United States, and in the amounts, set forth in the following table:

                         Navy: Outside the United States
    ------------------------------------------------------------------------
               Country              Installation or Location      Amount
    ------------------------------------------------------------------------
    Diego Garcia.................  Diego Garcia.............     $37,473,000
    Italy........................  Naval Air Station,            $13,051,000
                                    Sigonella.
    ------------------------------------------------------------------------

        (c) Unspecified Worldwide.--Using amounts appropriated pursuant to
    the authorization of appropriations in section 2204(a)(3), the Secretary
    of the Navy may acquire real property and carry out military
    construction projects for unspecified installations or locations in the
    amount set forth in the following table:

    [[Page 120 STAT. 2450]]

                           Navy: Unspecified Worldwide
    ------------------------------------------------------------------------
               Location                     Project               Amount
    ------------------------------------------------------------------------
                                   Helicopter Support            $12,185,000
                                    Facility.
    ------------------------------------------------------------------------

    SEC. 2202. FAMILY HOUSING.

        (a) Construction and Acquisition.--Using amounts appropriated
    pursuant to the authorization of appropriations in section
    2204(a)(6)(A), the Secretary of the Navy may construct or acquire family
    housing units (including land acquisition and supporting facilities) at
    the installations, in the number of units, and in the amounts set forth
    in the following table:

                                                  Navy: Family Housing
    ----------------------------------------------------------------------------------------------------------------
                    Location                           Installation                    Units              Amount
    ----------------------------------------------------------------------------------------------------------------
    California..............................  Marine Corps Log. Base, Barstow  74...................     $27,851,000
    Guam....................................   Naval Station/Base, Guam......  176..................     $98,174,000
    ----------------------------------------------------------------------------------------------------------------

        (b) Planning and Design.--Using amounts appropriated pursuant to the
    authorization of appropriations in section 2204(a)(6)(A), the Secretary
    of the Navy may carry out architectural and engineering services and
    construction design activities with respect to the construction or
    improvement of military family housing units in an amount not to exceed
    $2,785,000.
    SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

        Subject to section 2825 of title 10, United States Code, and using
    amounts appropriated pursuant to the authorization of appropriations in
    section 2204(a)(6)(A), the Secretary of the Navy may improve existing
    military family housing units in an amount not to exceed $180,146,000.
    SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

        (a) Authorization of Appropriations.--Funds are hereby authorized to
    be appropriated for fiscal years beginning after September 30, 2006, for
    military construction, land acquisition, and military family housing
    functions of the Department of the Navy in the total amount of
    $2,109,367,000, as follows:
                (1) For military construction projects inside the United
            States authorized by section 2201(a), $832,982,000.
                (2) For military construction projects outside the United
            States authorized by section 2201(b), $50,524,000.
                (3) For military construction projects at unspecified
            worldwide locations authorized by section 2201(c), $12,185,000.
                (4) For unspecified minor military construction projects
            authorized by section 2805 of title 10, United States Code,
            $8,939,000.
                (5) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $70,861,000.
                (6) For military family housing functions:
                        (A) For construction and acquisition, planning and
                    design, and improvement of military family housing and
                    facilities, $308,956,000.

    [[Page 120 STAT. 2451]]

                        (B) For support of military family housing
                    (including functions described in section 2833 of title
                    10, United States Code), $509,126,000.
                (7) For the construction of increment 2 of a reclamation and
            conveyance project for Marine Corps Base, Camp Pendleton,
            California, authorized by section 2201(a) of the Military
            Construction Authorization Act of Fiscal Year 2006 (division B
            of Public Law 109-163; 119 Stat. 3490), as amended by section
            2205(c) of this Act, $33,290,000.
                (8) For the construction of increment 2 of a helicopter
            hangar replacement at Naval Air Station, Jacksonville, Florida,
            authorized by section 2201(a) of the Military Construction
            Authorization Act for Fiscal Year 2006 (division B of Public Law
            109-163; 119 Stat. 3489), $43,250,000.
                (9) For the construction of increment 2 of recruit training
            barracks infrastructure upgrades at Recruit Training Command,
            Great Lakes, Illinois, authorized by section 2201(a) of the
            Military Construction Authorization Act for Fiscal Year 2006
            (division B of Public Law 109-163; 119 Stat. 3490), $23,589,000.
                (10) For the construction of increment 2 of a field house at
            the United States Naval Academy, Annapolis, Maryland, authorized
            by section 2201(a) of the Military Construction Authorization
            Act of Fiscal Year 2006 (division B of Public Law 109-163; 119
            Stat. 3490), $26,685,000.
                (11) For the construction of increment 2 of the replacement
            of Ship Repair Pier 3 at Naval Support Activity, Norfolk Naval
            Shipyard, Virginia, authorized by section 2201(a) of the
            Military Construction Authorization Act of Fiscal Year 2006
            (division B of Public Law 109-163; 119 Stat. 3490), $30,939,000.
                (12) For the construction of increment 2 of an addition to
            Hockmuth Hall, Marine Corps Base, Quantico, Virginia, authorized
            by section 2201(a) of the Military Construction Authorization
            Act of Fiscal Year 2006 (division B of Public Law 109-163; 119
            Stat. 3490), $10,159,000.
                (13) For the construction of increment 2 of wharf upgrades
            at Naval Station Guam, Marianas Islands, authorized by section
            2201(b) of the Military Construction Authorization Act for
            Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat.
            3490), $29,772,000.
                (14) For the construction of increment 2 of wharf upgrades
            at Yokosuka, Japan, authorized by section 2201(b) of the
            Military Construction Authorization Act of Fiscal Year 2006
            (division B of Public Law 109-163; 119 Stat. 3490), $44,360,000.
                (15) For the construction of increment 2 of bachelor
            quarters at Naval Station, Everett, Washington, authorized by
            section 2201(a) of the Military Construction Authorization Act
            of Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat.
            3490), $20,917,000.
                (16) For the construction of increment 3 of the limited area
            production and storage complex at Strategic Weapons Facility
            Pacific, Bangor, Washington, authorized by section 2201(a) of
            the Military Construction Authorization Act for Fiscal Year 2005
            (division B of Public Law 108-375; 118 Stat. 2105), as amended
            by section 2206 of the Military Construction Authorization Act
            for Fiscal Year 2006 (division B of Public Law 109-163; 119
            Stat. 3493, $14,274,000.

    [[Page 120 STAT. 2452]]

                (17) For the construction of the next increment of the
            outlaying landing field facilities at Washington County, North
            Carolina, authorized by section 2201(a) of the Military
            Construction Authorization Act for Fiscal Year 2004 (division B
            of Public Law 108-136; 117 Stat. 1704), as amended by section
            2205(a) of this Act, $7,926,000.
                (18) For the construction of increment 4 of pier 11
            replacement at Naval Station, Norfolk, Virginia, authorized by
            section 2201(a) of the Military Construction Authorization Act
            for Fiscal Year 2004 (division B of Public Law 108-136; 117
            Stat. 1704), $30,633,000.

        (b) Limitation on Total Cost of Construction Projects.--
    Notwithstanding the cost variations authorized by section 2853 of title
    10, United States Code, and any other cost variation authorized by law,
    the total cost of all projects carried out under section 2201 of this
    Act may not exceed the sum of the following:
                (1) The total amount authorized to be appropriated under
            paragraphs (1), (2), and (3) of subsection (a).
                (2) $56,159,000 (the balance of the amount authorized under
            section 2201(a) for construction of an addition to the National
            Maritime Intelligence Center, Suitland, Maryland).
                (3) $31,153,000 (the balance of the amount authorized under
            section 2201(a) to recapitalize Hangar 5 at Naval Air Station,
            Whidbey Island, Washington).
    SEC. 2205. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL
                              YEAR 2004, 2005, AND 2006 PROJECTS.

        (a) Fiscal Year 2004 Inside the United States Project.--
                (1) Modification.--The table in section 2201(a) of the
            Military Construction Authorization Act for Fiscal Year 2004
            (division B of Public Law 108-136; 117 Stat. 1704), as amended
            by section 2205 of the Military Construction Authorization Act
            for Fiscal Year 2006 (division B of Public Law 109-163; 119
            Stat. 3492), is amended--
                        (A) at the end of the items relating to North
                    Carolina, by inserting a new item entitled ``Navy
                    Outlying Landing Field, Washington County'' in the
                    amount of ``$193,260,000'';
                        (B) by striking the item relating to Various
                    Locations, CONUS; and
                        (C) by striking the amount identified as the total
                    in the amount column and inserting ``$1,489,424,000''.
                (2) Conforming amendments.--Section 2204(b)(6) of that Act
            (117 Stat. 1706) is amended--
                        (A) by striking ``$28,750,000'' and inserting
                    ``$165,650,000''; and
                        (B) by striking ``outlying landing field facilities,
                    various locations in the continental United States'' and
                    inserting ``an outlying landing field in Washington
                    County, North Carolina''.

        (b) Fiscal Year 2005 Inside the United States Project.--
                (1) Modification.--The table in section 2201(a) of the
            Military Construction Authorization Act for Fiscal Year 2005
            (division B of Public Law 108-375; 118 Stat. 2105), as amended
            by section 2206 of the Military Construction Authorization Act
            for Fiscal Year 2006 (division B of Public Law 109-163; 119
            Stat. 3493), is amended--

    [[Page 120 STAT. 2453]]

                        (A) by striking the item relating to Navy Outlying
                    Landing Field, Washington County, North Carolina; and
                        (B) by striking the amount identified as the total
                    in the amount column and inserting ``$825,479,000''.
                (2) Conforming amendments.--Section 2204 of that Act (118
            Stat. 2107), as amended by section 2206 of the Military
            Construction Authorization Act for Fiscal Year 2006 (division B
            of Public Law 109-163; 119 Stat. 3493), is amended--
                        (A) in subsection (a)--
                              (i) in paragraph (1), by striking
                          ``$752,927,000'' and inserting ``722,927,000'';
                          and
                              (ii) by adding at the end the following new
                          paragraph:
                ``(10) For the construction of increment 2 of the Navy
            outlying landing field in Washington County, North Carolina,
            authorized by section 2201(a) of the Military Construction
            Authorization Act for Fiscal Year 2004 (division B of Public Law
            108-136; 117 Stat. 1704), as amended by section 2205(a) of the
            Military Construction Authorization Act for Fiscal Year 2007,
            $30,000,000.''; and
                        (B) in subsection (b), by striking paragraph (3).

        (c) Fiscal Year 2006 Inside the United States Project.--
                (1) Modification.--The table in section 2201(a) of the
            Military Construction Authorization Act for Fiscal Year 2006
            (division B of Public Law 109-163; 119 Stat. 3489) is amended in
            the item related to Marine Corps Base, Camp Pendleton,
            California, by striking ``$90,437,000'' in the amount column and
            inserting ``$86,006,000''.
                (2) Conforming amendments.--Section 2204(b)(2) of that Act
            (119 Stat. 3492) is amended by striking ``$37,721,000'' and
            inserting ``$33,290,000''.

                             TITLE XXIII--AIR FORCE

    Sec. 2301. Authorized Air Force construction and land acquisition
               projects.
    Sec. 2302. Family housing.
    Sec. 2303. Improvements to military family housing units.
    Sec. 2304. Authorization of appropriations, Air Force.
    Sec. 2305. Modification of authority to carry out certain fiscal year
               2006 project.

    SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION
                              PROJECTS.

        (a) Inside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2304(a)(1), the
    Secretary of the Air Force may acquire real property and carry out
    military construction projects for the installations or locations inside
    the United States, and in the amounts, set forth in the following table:

                       Air Force: Inside the United States
    ------------------------------------------------------------------------
                                       Installation or
                 State                     Location              Amount
    ------------------------------------------------------------------------
    Alaska........................  Eielson Air Force           $38,300,000
                                     Base.
                                    Elmendorf Air Force         $68,100,000
                                     Base.
    Arizona.......................  Davis-Monthan Air           $11,800,000
                                     Force Base.
    Arkansas......................  Little Rock Air Force        $9,800,000
                                     Base.
    California....................  Beale Air Force Base.       $28,000,000
                                    Travis Air Force Base       $85,800,000

    [[Page 120 STAT. 2454]]

    Colorado......................  Buckley Air Force           $10,700,000
                                     Base.
                                    Peterson Air Force           $4,900,000
                                     Base.
                                    Schriever Air Force         $21,000,000
                                     Base.
    Delaware......................  Dover Air Force Base.       $30,400,000
    Florida.......................  Eglin Air Force Base.       $30,350,000
                                    Hurlburt Field.......       $32,950,000
                                    MacDill Air Force           $71,000,000
                                     Base.
                                    Tyndall Air Force            $8,200,000
                                     Base.
    Georgia.......................  Robins Air Force Base       $59,600,000
    Hawaii........................  Hickam Air Force Base       $28,538,000
    Illinois......................  Scott Air Force Base.       $28,200,000
    Kansas........................  McConnell Air Force          $3,875,000
                                     Base.
    Kentucky......................  Fort Knox............        $3,500,000
    Maryland......................  Andrews Air Force           $29,000,000
                                     Base.
    Massachusetts.................  Hanscom Air Force           $12,400,000
                                     Base.
    Missouri......................  Whiteman Air Force           $3,800,000
                                     Base.
    Montana.......................  Malmstrom Air Force          $5,700,000
                                     Base.
    Nevada........................  Indian Springs              $49,923,000
                                     Auxiliary Field.
    New Jersey....................  McGuire Air Force           $28,500,000
                                     Base.
    New Mexico....................  Kirtland Air Force          $11,400,000
                                     Base.
    North Dakota..................  Minot Air Force Base.        $9,000,000
    Oklahoma......................  Altus Air Force Base.        $9,500,000
                                    Tinker Air Force Base        $5,700,000
    South Carolina................  Charleston Air Force        $10,200,000
                                     Base.
                                    Shaw Air Force Base..       $31,500,000
    South Dakota..................   Ellsworth Air Force         $3,000,000
                                     Base.
    Texas.........................  Fort Bliss...........        $8,500,000
                                    Lackland Air Force          $13,200,000
                                     Base.
                                    Laughlin Air Force          $12,600,000
                                     Base.
                                    Sheppard Air Force           $7,000,000
                                     Base.
    Utah..........................  Hill Air Force Base..       $63,400,000
    Virginia......................  Langley Air Force           $57,700,000
                                     Base.
    Washington....................  Fairchild Air Force          $4,250,000
                                     Base.
    Wyoming.......................  Francis E. Warren Air       $11,000,000
                                     Force Base.
    ------------------------------------------------------------------------

        (b) Outside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2304(a)(2), the
    Secretary of the Air Force may acquire real property and carry out
    military construction projects for the installations or locations
    outside the United States, and in the amounts, set forth in the
    following table:

                      Air Force: Outside the United States
    ------------------------------------------------------------------------
               Country              Installation or Location      Amount
    ------------------------------------------------------------------------
    Germany......................  Ramstein Air Base........     $53,150,000
    Guam.........................  Andersen Air Base........     $65,300,000
    Korea........................  Kunsan Air Base..........     $37,360,000
                                   Osan Air Base............      $2,156,000
    ------------------------------------------------------------------------

        (c) Unspecified Worldwide.--Using amounts appropriated pursuant to
    the authorization of appropriations in section 2304(a)(3), the Secretary
    of the Air Force may acquire real property and carry out military
    construction projects for unspecified installations or locations in the
    amount set forth in the following table:

    [[Page 120 STAT. 2455]]

                        Air Force: Unspecified Worldwide
    ------------------------------------------------------------------------
               Location             Installation or Location      Amount
    ------------------------------------------------------------------------
    Worldwide Classified.........  Classified Project 1.....      $3,377,000
                                   Classified Project 2.....      $4,600,000
                                   Classified Project 3.....      $1,700,000
    ------------------------------------------------------------------------

    SEC. 2302. FAMILY HOUSING.

        (a) Construction and Acquisition.--Using amounts appropriated
    pursuant to the authorization of appropriations in section
    2304(a)(6)(A), the Secretary of the Air Force may construct or acquire
    family housing units (including land acquisition and supporting
    facilities) at the installations or locations, in the number of units,
    and in the amounts set forth in the following table:

                                                Air Force: Family Housing
    ----------------------------------------------------------------------------------------------------------------
                State or Country                   Installation or Location             Units             Amount
    ----------------------------------------------------------------------------------------------------------------
    Alaska..................................  Eielson Air Force Base...........  129................     $87,414,000
    Idaho...................................  Mountain Home Air Force Base.....  457................    $107,800,000
    Missouri................................  Whiteman Air Force Base..........  116................     $39,270,000
    Montana.................................  Malmstrom Air Force Base.........  493................    $140,252,000
    North Carolina..........................  Seymour Johnson Air Force Base...  56.................     $22,956,000
    North Dakota............................  Minot Air Force Base.............  575................    $170,188,000
    Texas...................................  Dyess Air Force Base.............  199................     $49,215,000
    Germany.................................  Ramstein Air Base................  101................     $59,488,000
                                              Spangdahlem Air Base.............  60.................     $39,294,000
    United Kingdom..........................  Royal Air Force Lakenheath.......  74.................     $35,282,000
    ----------------------------------------------------------------------------------------------------------------

        (b) Planning and Design.--Using amounts appropriated pursuant to the
    authorization of appropriations in section 2304(a)(6)(A), the Secretary
    of the Air Force may carry out architectural and engineering services
    and construction design activities with respect to the construction or
    improvement of military family housing units in an amount not to exceed
    $13,202,000.
    SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

        Subject to section 2825 of title 10, United States Code, and using
    amounts appropriated pursuant to the authorization of appropriations in
    section 2304(a)(6)(A), the Secretary of the Air Force may improve
    existing military family housing units in an amount not to exceed
    $403,777,000.
    SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

        (a) Authorization of Appropriations.--Funds are hereby authorized to
    be appropriated for fiscal years beginning after September 30, 2006, for
    military construction, land acquisition, and military family housing
    functions of the Department of the Air Force in the total amount of
    $3,231,442,000, as follows:
                (1) For military construction projects inside the United
            States authorized by section 2301(a), $962,286,000.
                (2) For military construction projects outside the United
            States authorized by section 2301(b), $157,966,000.
                (3) For military construction projects at unspecified
            worldwide locations authorized by section 2301(c), $9,677,000.

    [[Page 120 STAT. 2456]]

                (4) For unspecified minor military construction projects
            authorized by section 2805 of title 10, United States Code,
            $15,000,000.
                (5) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $79,004,000.
                (6) For military family housing functions:
                        (A) For construction and acquisition, planning and
                    design, and improvement of military family housing and
                    facilities, $1,168,138,000.
                        (B) For support of military family housing
                    (including functions described in section 2833 of title
                    10, United States Code), $755,071,000.
                (7) For the construction of increment 2 of the C-17
            maintenance complex at Elmendorf Air Force Base, Alaska,
            authorized by section 2301(a) of the Military Construction
            Authorization Act for Fiscal Year 2006 (division B of Public Law
            109-163; 119 Stat. 3494), $30,000,000.
                (8) For the construction of increment 2 of the main base
            runway at Edwards Air Force Base, California, authorized by
            section 2301(a) of the Military Construction Authorization Act
            for Fiscal Year 2006 (division B of Public Law 109-163; 119
            Stat. 3494), $31,000,000.
                (9) For the construction of increment 2 of the CENTCOM Joint
            Intelligence Center at MacDill Air Force Base, Florida,
            authorized by section 2301(a) of the Military Construction
            Authorization Act for Fiscal Year 2006 (division B of Public Law
            109-163; 119 Stat. 3494), as amended by section 2305 of this
            Act, $23,300,000.

        (b) Limitation on Total Cost of Construction Projects.--
    Notwithstanding the cost variations authorized by section 2853 of title
    10, United States Code, and any other cost variation authorized by law,
    the total cost of all projects carried out under section 2301 of this
    Act may not exceed the total amount authorized to be appropriated under
    paragraphs (1), (2), and (3) of subsection (a).
    SEC. 2305. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL
                              YEAR 2006 PROJECT.

        (a) Modification of Inside the United States Project.--The table in
    section 2301(a) of the Military Construction Authorization Act for
    Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat. 3494) is
    amended in the item relating to MacDill Air Force Base, Florida, by
    striking ``$107,200,000'' in the amount column and inserting
    ``$101,500,000''.
        (b) Conforming Amendment.--Section 2304(b)(4) of that Act (119 Stat.
    3496) is amended by striking ``$29,000,000'' and inserting
    ``$23,300,000''.

                          TITLE XXIV--DEFENSE AGENCIES

    Sec. 2401. Authorized Defense Agencies construction and land acquisition
               projects.
    Sec. 2402. Family housing.
    Sec. 2403. Energy conservation projects.
    Sec. 2404. Authorized base closure and realignment activities funded
               through Department of Defense Base Closure Account 2005.
    Sec. 2405. Authorization of appropriations, Defense Agencies.
    Sec. 2406. Modification of authority to carry out certain fiscal year
               2006 project.

    [[Page 120 STAT. 2457]]

    SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND
                              ACQUISITION PROJECTS.

        (a) Inside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2405(a)(1), the
    Secretary of Defense may acquire real property and carry out military
    construction projects for the installations or locations inside the
    United States, and in the amounts, set forth in the following tables:

                                               Defense Education Activity
    ----------------------------------------------------------------------------------------------------------------
                        State                                   Installation or Location                  Amount
    ----------------------------------------------------------------------------------------------------------------
    Kentucky.....................................  Fort Knox........................................     $18,108,000
    ----------------------------------------------------------------------------------------------------------------

                                                Defense Logistics Agency
    ----------------------------------------------------------------------------------------------------------------
                        State                                   Installation or Location                  Amount
    ----------------------------------------------------------------------------------------------------------------
    Arizona......................................  Marine Corps Air Station, Yuma...................      $8,715,000
    California...................................  Beale Air Force Base.............................      $9,000,000
    Pennsylvania.................................  Defense Distribution Depot, New Cumberland.......      $8,900,000
    Viginia......................................  Fort Belvoir.....................................      $5,500,000
    Washington...................................  Naval Air Station, Whidbey Island................     $26,000,000
    ----------------------------------------------------------------------------------------------------------------

                                               Special Operations Command
    ----------------------------------------------------------------------------------------------------------------
                        State                                   Installation or Location                  Amount
    ----------------------------------------------------------------------------------------------------------------
    California...................................  Marine Corps Base, Camp Pendleton................     $24,400,000
    Colorado.....................................  Fort Carson......................................     $26,100,000
    Florida......................................  Hurlburt Field...................................     $14,482,000
                                                   MacDill Air Force Base...........................     $27,300,000
    Kentucky.....................................  Fort Campbell....................................     $24,500,000
    Mississippi..................................  Stennis Space Center.............................     $10,200,000
    North Carolina...............................  Fort Bragg.......................................     $51,768,000
                                                   Marine Corps Base, Camp Lejeune..................     $51,600,000
                                                   Pope Air Force Base..............................     $15,276,000
    Virginia.....................................  Naval Air Base, Little Creek.....................     $22,000,000
    ----------------------------------------------------------------------------------------------------------------

                                               TRICARE Management Activity
    ----------------------------------------------------------------------------------------------------------------
                        State                                   Installation or Location                  Amount
    ----------------------------------------------------------------------------------------------------------------
    Alaska.......................................  Fort Richardson..................................     $37,200,000
    California...................................  Fort Irwin.......................................      $6,050,000
    Florida......................................  MacDill Air Force Base...........................     $92,000,000
                                                   Naval Hospital, Jacksonville.....................     $16,000,000
    Hawaii.......................................  Naval Base, Pearl Harbor.........................      $7,700,000
    Illinois.....................................  Naval Hospital, Great Lakes......................     $20,000,000
    Maryland.....................................  Fort Detrick.....................................    $550,000,000
    New York.....................................  Fort Drum........................................      $9,700,000
    Texas........................................  Fort Hood........................................     $18,000,000
    ----------------------------------------------------------------------------------------------------------------

        (b) Outside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2405(a)(2), the
    Secretary of Defense may acquire real property and carry out military
    construction projects for the installations or locations outside the
    United States, and in the amounts, set forth in the following tables:

    [[Page 120 STAT. 2458]]

                                               Defense Education Activity
    ----------------------------------------------------------------------------------------------------------------
                        Country                                 Installation or Location                  Amount
    ----------------------------------------------------------------------------------------------------------------
    Italy.........................................  Vicenza.........................................     $47,210,000
    Korea.........................................  Osan Air Base...................................      $4,589,000
    Spain.........................................  Naval Station, Rota.............................     $23,048,000
    ----------------------------------------------------------------------------------------------------------------

                            Defense Logistics Agency
    ------------------------------------------------------------------------
                                            Installation or
           Country or Possession                Location            Amount
    ------------------------------------------------------------------------
    Japan.............................  Okinawa................   $5,000,000
    Wake Island.......................  Wake Island............   $2,600,000
    ------------------------------------------------------------------------

                             Missile Defense Agency
    ------------------------------------------------------------------------
                                          Installation or
          Country or Possession               Location            Amount
    ------------------------------------------------------------------------
    Kwajalein........................  Kwajalein Atoll            $7,592,000
    ------------------------------------------------------------------------

                           Special Operations Command
    ------------------------------------------------------------------------
               Country              Installation or Location      Amount
    ------------------------------------------------------------------------
    Qatar........................  Al Udeid AB..............     $44,500,000
    ------------------------------------------------------------------------

                           TRICARE Management Activity
    ------------------------------------------------------------------------
               Country              Installation or Location      Amount
    ------------------------------------------------------------------------
    Italy........................  Vicenza..................     $52,000,000
    ------------------------------------------------------------------------

    SEC. 2402. FAMILY HOUSING.

        (a) Construction and Acquisition.--Using amounts appropriated
    pursuant to the authorization of appropriations in section
    2405(a)(9)(A), the Secretary of Defense may construct or acquire family
    housing units (including land acquisition and supporting facilities) at
    the location, in the number of units, and in the amount set forth in the
    following table:

                                        Defense Logistics Agency: Family Housing
    ----------------------------------------------------------------------------------------------------------------
                      State                               Location                     Units              Amount
    ----------------------------------------------------------------------------------------------------------------
    Virginia................................  Defense Supply Center, Richmond  25...................      $7,840,000
    ----------------------------------------------------------------------------------------------------------------

        (b) Planning and Design.--Using amounts appropriated pursuant to the
    authorization of appropriations in section 2405(a)(9)(A), the Secretary
    of Defense may carry out architectural and engineering services and
    construction design activities with respect to the construction or
    improvement of military family housing units in an amount not to exceed
    $200,000.

    [[Page 120 STAT. 2459]]

    SEC. 2403. ENERGY CONSERVATION PROJECTS.

        Using amounts appropriated pursuant to the authorization of
    appropriations in section 2405(a)(6), the Secretary of Defense may carry
    out energy conservation projects under section 2865 of title 10, United
    States Code, in the amount of $55,000,000.
    SEC. 2404. AUTHORIZED BASE CLOSURE AND REALIGNMENT ACTIVITIES
                              FUNDED THROUGH DEPARTMENT OF DEFENSE
                              BASE CLOSURE ACCOUNT 2005.

        (a) Authorized Activities.--Using amounts appropriated pursuant to
    the authorization of appropriations in section 2405(a)(8), the Secretary
    of Defense may carry out base closure and realignment activities,
    including real property acquisition and military construction projects,
    as authorized by 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) and
    funded through the Department of Defense Base Closure Account 2005
    established by section 2906A of such Act, in the amount of
    $5,902,723,000.
        (b) Conforming Amendments to Fiscal Year 2006 Authorizations.--
                (1) Authorized activities.--Title XXIV of the Military
            Construction Authorization Act for Fiscal Year 2006 (division B
            of Public Law 109-163; 119 Stat. 3496) is amended by adding at
            the end the following new section:
    ``SEC. 2404. AUTHORIZED BASE CLOSURE AND REALIGNMENT ACTIVITIES
                            FUNDED THROUGH DEPARTMENT OF DEFENSE BASE
                            CLOSURE ACCOUNT 2005.

        ``Using amounts appropriated pursuant to the authorization of
    appropriations in section 2403(a)(7), the Secretary of Defense may carry
    out base closure and realignment activities, including real property
    acquisition and military construction projects, as authorized by 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) and funded through the
    Department of Defense Base Closure Account 2005 established by section
    2906A of such Act, in the amount of $2,035,466,000.''.
                (2) Authorization of appropriations and limitations.--
            Section 2403 of that Act (119 Stat. 3499) is amended--
                        (A) in subsection (a)(7)--
                              (i) by striking ``as authorized by 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)'' and inserting ``authorized by section
                          2404 of this Act''; and
                              (ii) by striking ``section 2906 of such Act''
                          and inserting ``section 2906A of the Defense Base
                          Closure and Realignment Act of 1990 (part A of
                          title XXIX of Public Law 101-510; 10 U.S.C. 2687
                          note)'';
                        (B) by redesignating subsection (c) as subsection
                    (d); and
                        (C) by inserting after subsection (b) the following
                    new subsection (c):

        ``(c) Limitation on Total Cost of Base Closure and Realignment
    Activities.--Notwithstanding the cost variations authorized by section
    2853 of title 10, United States Code, and any other cost variation
    authorized by law, the total cost of all

    [[Page 120 STAT. 2460]]

    base closure and realignment activities, including real property
    acquisition and military construction projects, carried out under
    section 2404 of this Act may not exceed the sum of the following:
                ``(1) The total amount authorized to be appropriated under
            subsection (a)(7).
                ``(2) $531,000,000 (the balance of the amount authorized
            under section 2404 for base closure and realignment
            activities).''.
    SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

        (a) In General.--Funds are hereby authorized to be appropriated for
    fiscal years beginning after September 30, 2006, for military
    construction, land acquisition, and military family housing functions of
    the Department of Defense (other than the military departments) in the
    total amount of $7,163,431,000, as follows:
                (1) For military construction projects inside the United
            States authorized by section 2401(a), $533,099,000.
                (2) For military construction projects outside the United
            States authorized by section 2401(b), $170,789,000.
                (3) For unspecified minor military construction projects
            under section 2805 of title 10, United States Code, $21,672,000.
                (4) For contingency construction projects of the Secretary
            of Defense under section 2804 of title 10, United States Code,
            $10,000,000.
                (5) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $172,950,000.
                (6) For energy conservation projects authorized by section
            2403 of this Act, $55,000,000.
                (7) For base closure and realignment activities as
            authorized by 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) and funded through the Department of Defense Base Closure
            Account 1990 established by section 2906 of such Act,
            $191,220,000.
                (8) For base closure and realignment activities authorized
            by section 2404 of this Act and funded through the Department of
            Defense Base Closure Account 2005 established by section 2906A
            of the Defense Base Closure and Realignment Act of 1990 (part A
            of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note),
            $5,236,223,000.
                (9) For military family housing functions:
                        (A) For construction and acquisition, planning and
                    design, and improvement of military family housing and
                    facilities, $8,808,000.
                        (B) For support of military family housing
                    (including functions described in section 2833 of title
                    10, United States Code), $48,506,000.
                        (C) For credit to the Department of Defense Family
                    Housing Improvement Fund established by section
                    2883(a)(1) of title 10, United States Code, $2,500,000.
                (10) For the construction of increment 2 of the regional
            security operations center at Augusta, Georgia, authorized by
            section 2401(a) of the Military Construction Authorization Act
            of Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat.
            3497), as amended by section 7016 of Public Law 109-234 (120
            Stat. 485), $77,118,000.

    [[Page 120 STAT. 2461]]

                (11) For the construction of increment 2 of the regional
            security operations center at Kunia, Hawaii, authorized by
            section 2401(a) of the Military Construction Authorization Act
            of Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat.
            3497), as amended by section 7017 of Public Law 109-234 (120
            Stat. 485), $47,016,000.
                (12) For the construction of increment 2 of the classified
            material conversion facility at Fort Meade, Maryland, authorized
            by section 2401(a) of the Military Construction Authorization
            Act of Fiscal Year 2006 (division B of Public Law 109-163; 119
            Stat. 3497), $11,151,000.
                (13) For the construction of increment 2 of an operations
            building, Royal Air Force Menwith Hill Station, United Kingdom,
            authorized by section 2401(b) of the Military Construction
            Authorization Act of Fiscal Year 2006 (division B of Public Law
            109-163; 119 Stat. 3498), as amended by section 2406 of this
            Act, $46,386,000.
                (14) For the construction of the second increment of certain
            base closure and realignment activities authorized by section
            2404 of the Military Construction Authorization Act of Fiscal
            Year 2006 (division B of Public Law 109-163; 119 Stat. 3500), as
            added by section 2404(b) of this Act, $390,000,000.
                (15) For the construction of increment 7 of a munitions
            demilitarization facility at Blue Grass Army Depot, Kentucky,
            authorized by section 2401(a) of the Military Construction
            Authorization Act for Fiscal Year 2000 (division B of Public Law
            106-65; 113 Stat. 835), as amended by section 2405 of the
            Military Construction Authorization Act of 2002 (division B of
            Public Law 107-107; 115 Stat. 1298), and section 2405 of the
            Military Construction Authorization Act for Fiscal Year 2003
            (division B of Public Law 107-314; 116 Stat. 2698), $99,157,000.
                (16) For the construction of increment 8 of a munitions
            demilitarization facility at Pueblo Chemical Activity, Colorado,
            authorized by section 2401(a) of the Military Construction
            Authorization Act for Fiscal Year 1997 (division B of Public Law
            104-201; 110 Stat. 2775), as amended by section 2406 of the
            Military Construction Authorization Act for Fiscal Year 2000
            (division B of Public Law 106-65; 113 Stat. 839), and section
            2407 of the Military Construction Authorization Act for Fiscal
            Year 2003 (division B of Public Law 107-314; 116 Stat. 2698),
            $41,836,000.

        (b) Limitation on Total Cost of Construction Projects.--
    Notwithstanding the cost variations authorized by section 2853 of title
    10, United States Code, and any other cost variation authorized by law,
    the total cost of all projects carried out under section 2401 of this
    Act may not exceed the sum of the following:
                (1) The total amount authorized to be appropriated under
            paragraphs (1) and (2) of subsection (a).
                (2) $46,400,000 (the balance of the amount authorized under
            section 2401(a) for construction of a health clinic at MacDill
            Air Force Base, Florida).
                (3) $521,000,000 (the balance of the amount authorized under
            section 2401(a) for stage 1 of the replacement of the Army
            Medical Research Institute of Infectious Diseases at Fort
            Detrick, Maryland).

    [[Page 120 STAT. 2462]]

        (c) Limitation on Total Cost of Base Closure and Realignment
    Activities.--Notwithstanding the cost variations authorized by section
    2853 of title 10, United States Code, and any other cost variation
    authorized by law, the total cost of all base closure and realignment
    activities, including real property acquisition and military
    construction projects, carried out under section 2404(a) of this Act may
    not exceed the sum of the following:
                (1) The total amount authorized to be appropriated under
            subsection (a)(8).
                (2) $666,500,000 (the balance of the amount authorized under
            section 2404(a) for base closure and realignment activities).

        (d) Congressional Notification Regarding Base Closure and
    Realignment Activities.--Not <<NOTE: Deadline. Reports.>> later than 14
    days after the date on which funds appropriated pursuant to the
    authorization of appropriations in subsection (a)(8) are first obligated
    for a particular program, project, or activity, the Secretary of Defense
    shall submit to the congressional defense committees a report describing
    the program, project, or activity.
    SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL
                              YEAR 2006 PROJECT.

        (a) Modification of Outside the United States National Security
    Agency Project.--The table relating to the National Security Agency in
    section 2401(b) of the Military Construction Authorization Act for
    Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat. 3498) is
    amended in the item relating to Menwith Hill, United Kingdom, by
    striking ``$86,354,000'' in the amount column and inserting
    ``$91,383,000''.
        (b) Conforming Amendments.--Section 2403(b)(5) of that Act (119
    Stat. 3500) is amended by striking ``$44,657,000'' and inserting
    ``$49,686,000''.

       TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
                                     PROGRAM

    Sec. 2501. Authorized NATO construction and land acquisition projects
    Sec. 2502. Authorization of appropriations, NATO

    SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION
                              PROJECTS.

        The Secretary of Defense may make contributions for the North
    Atlantic Treaty Organization Security Investment program as provided in
    section 2806 of title 10, United States Code, in an amount not to exceed
    the sum of the amount authorized to be appropriated for this purpose in
    section 2502 and the amount collected from the North Atlantic Treaty
    Organization as a result of construction previously financed by the
    United States.
    SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

        Funds are hereby authorized to be appropriated for fiscal years
    beginning after September 30, 2006, for contributions by the Secretary
    of Defense under section 2806 of title 10, United States Code, for the
    share of the United States of the cost of projects

    [[Page 120 STAT. 2463]]

    for the North Atlantic Treaty Organization Security Investment program
    authorized by section 2501, in the amount of $200,985,000.

                 TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

    Sec. 2601. Authorized Guard and Reserve construction and land
               acquisition projects

    SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND
                              ACQUISITION PROJECTS.

        Funds are hereby authorized to be appropriated for fiscal years
    beginning after September 30, 2006, for the costs of acquisition,
    architectural and engineering services, and construction of facilities
    for the Guard and Reserve Forces, and for contributions therefor, under
    chapter 1803 of title 10, United States Code (including the cost of
    acquisition of land for those facilities), in the following amounts:
                (1) For the Department of the Army--
                        (A) for the Army National Guard of the United
                    States, $561,375,000; and
                        (B) for the Army Reserve, $190,617,000.
                (2) For the Department of the Navy, for the Navy Reserve and
            Marine Corps Reserve, $49,998,000.
                (3) For the Department of the Air Force--
                        (A) for the Air National Guard of the United States,
                    $294,283,000; and
                        (B) for the Air Force Reserve, $56,836,000.

             TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

    Sec. 2701. Expiration of authorizations and amounts required to be
               specified by law.
    Sec. 2702. Extension of authorizations of certain fiscal year 2004
               projects.
    Sec. 2703. Extension of authorizations of certain fiscal year 2003
               projects.
    Sec. 2704. Effective date.

    SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE
                              SPECIFIED BY LAW.

        (a) Expiration of Authorizations After Three Years.--Except as
    provided in subsection (b), all authorizations contained in titles XXI
    through XXVI for military construction projects, land acquisition,
    family housing projects and facilities, and contributions to the North
    Atlantic Treaty Organization Security Investment program (and
    authorizations of appropriations therefor) shall expire on the later
    of--
                (1) October 1, 2009; or
                (2) the date of the enactment of an Act authorizing funds
            for military construction for fiscal year 2010.

        (b) Exception.--Subsection (a) shall not apply to authorizations for
    military construction projects, land acquisition, family housing
    projects and facilities, and contributions to the North Atlantic Treaty
    Organization Security Investment program (and authorizations of
    appropriations therefor), for which appropriated funds have been
    obligated before the later of--

    [[Page 120 STAT. 2464]]

                (1) October 1, 2009; or
                (2) the date of the enactment of an Act authorizing funds
            for fiscal year 2010 for military construction projects, land
            acquisition, family housing projects and facilities, or
            contributions to the North Atlantic Treaty Organization Security
            Investment program.
    SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 2004
                              PROJECTS.

        (a) Extension and Renewal.--Notwithstanding section 2701 of the
    Military Construction Authorization Act for Fiscal Year 2004 (division B
    of Public Law 108-136; 117 Stat. 1716), authorizations set forth in the
    tables in subsection (b), as provided in section 2101, 2301, 2302, 2401,
    or 2601 of that Act shall remain in effect until October 1, 2007, or the
    date of the enactment of an Act authorizing funds for military
    construction for fiscal year 2008, whichever is later.
        (b) Tables.--The tables referred to in subsection (a) are as
    follows:

                 Army: Extension of 2004 Project Authorizations
    ------------------------------------------------------------------------
        Installation or Location             Project              Amount
    ------------------------------------------------------------------------
    Aviano Air Base, Italy.........  Joint deployment            $15,500,000
                                      facility.
    Fort Wainwright, Alaska........  Training range complex.     $47,000,000
    ------------------------------------------------------------------------

               Air Force: Extension of 2004 Project Authorizations
    ------------------------------------------------------------------------
        Installation or Location             Project              Amount
    ------------------------------------------------------------------------
    Eglin Air Force Base, Florida..  Family housing (279         $32,166,000
                                      units).
    Hickam Air Force Base, Hawaii..  Parking ramp...........     $10,102,000
    Travis Air Force Base,           Family housing (56          $12,723,000
     California.                      units).
    ------------------------------------------------------------------------

              Defense Wide: Extension of 2004 Project Authorization
    ------------------------------------------------------------------------
         Installation or Location        Agency and Project       Amount
    ------------------------------------------------------------------------
    Hickam Air Force Base, Hawaii....  DLA hydrant fuel          $14,100,000
                                        system.
    ------------------------------------------------------------------------

          Army National Guard: Extension of 2004 Project Authorizations
    ------------------------------------------------------------------------
         Installation or Location             Project             Amount
    ------------------------------------------------------------------------
    Albuquerque, New Mexico..........  Readiness center.....      $2,533,000
    Fort Indiantown Gap, Pennsylvania  Training range.......     $15,338,000
    Gary, Indiana....................  Aviation support          $15,581,000
                                        facility.
    ------------------------------------------------------------------------

    SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 2003
                              PROJECTS.

        (a) Extension.--Notwithstanding section 2701 of the Military
    Construction Authorization Act for Fiscal Year 2003 (division B of
    Public Law 107-314; 116 Stat. 2700), authorizations set forth in the
    table in subsection (b), as provided in section 2302 of that

    [[Page 120 STAT. 2465]]

    Act and extended by section 2702 of the Military Construction
    Authorization Act for Fiscal Year 2006 (division B of Public Law 109-
    163; 119 Stat. 3502), shall remain in effect until October 1, 2007, or
    the date of the enactment of an Act authorizing funds for military
    construction for fiscal year 2008, whichever is later.
        (b) Tables.--The table referred to in subsection (a) is as follows:

               Air Force: Extension of 2003 Project Authorizations
    ------------------------------------------------------------------------
        Installation or Location             Project              Amount
    ------------------------------------------------------------------------
    Eglin Air Force Base, Florida..  Family housing (134         $15,906,000
                                      units).
    Eglin Air Force Base, Florida..  Family housing office..        $597,000
    Randolph Air Force Base, Texas   Housing maintenance            $447,000
                                      facility.
    ------------------------------------------------------------------------

    SEC. 2704. EFFECTIVE DATE.

        Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI of this Act shall take
    effect on the later of--
                (1) October 1, 2006; or
                (2) the date of the enactment of this Act.

             TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

     Subtitle A--Military Construction Program and Military Family Housing
                                     Changes

    Sec. 2801. Increase in maximum annual amount authorized to be obligated
               for emergency military construction.
    Sec. 2802. One-year extension of temporary, limited authority to use
               operation and maintenance funds for construction projects
               outside the United States.
    Sec. 2803. Repeal of requirement to determine availability of suitable
               alternative housing for acquisition in lieu of construction
               of new family housing.
    Sec. 2804. Authority to continue to occupy leased family housing for
               United States Southern Command personnel.
    Sec. 2805. Consideration of alternative and more efficient uses for
               general officer and flag officer quarters in excess of 6,000
               square feet.
    Sec. 2806. Modification of notification requirements related to cost
               variation authority.
    Sec. 2807. Consideration of local comparability of floor areas in
               construction, acquisition, and improvement of military
               unaccompanied housing.
    Sec. 2808. Certification required for military construction projects for
               facilities designed to provide training in urban operations.
    Sec. 2809. Authority to carry out military construction projects in
               connection with industrial facility investment program.
    Sec. 2810. Repeal of special requirement for military construction
               contracts on Guam.
    Sec. 2811. Temporary expansion of authority to convey property at
               military installations to support military construction.
    Sec. 2812. Pilot projects for acquisition or construction of military
               unaccompanied housing.

             Subtitle B--Real Property and Facilities Administration

    Sec. 2821. Congressional notice requirements, in advance of acquisition
               of land by condemnation for military purposes.
    Sec. 2822. Consolidation of Department of Defense authorities regarding
               granting of easements for rights-of-way.
    Sec. 2823. Authority to grant restrictive easements for conservation
               purposes in connection with land conveyances.
    Sec. 2824. Maximum term of leases for structures and real property
               relating to structures in foreign countries needed for
               purposes other than family housing.
    Sec. 2825. Consolidation of laws relating to transfer of Department of
               Defense real property within the Department of Defense and to
               other Federal agencies.

    [[Page 120 STAT. 2466]]

    Sec. 2826. Defense access road program.
    Sec. 2827. Reports on Army operational ranges.

                    Subtitle C--Base Closure and Realignment

    Sec. 2831. Modification of deposit requirements in connection with lease
               proceeds received at military installations approved for
               closure or realignment after January 1, 2005.
    Sec. 2832. Report on Air Force and Air National Guard bases affected by
               2005 round of defense base closure and realignment.

                          Subtitle D--Land Conveyances

    Sec. 2841. Conveyance of easement, Pine Bluff Arsenal, Arkansas.
    Sec. 2842. Modification of land transfer authority, Potomac Annex,
               District of Columbia.
    Sec. 2843. Land conveyance, Naval Air Station, Barbers Point, Hawaii.
    Sec. 2844. Land conveyances, Omaha, Nebraska.
    Sec. 2845. Land conveyance, Hopkinton, New Hampshire.
    Sec. 2846. Land conveyance, North Hills Army Reserve Center, Allison
               Park, Pennsylvania.
    Sec. 2847. Transfer of jurisdiction, Fort Jackson, South Carolina.
    Sec. 2848. Sense of Congress regarding land conveyance involving Army
               Reserve Center, Marshall, Texas.
    Sec. 2849. Modifications to land conveyance authority, Engineering
               Proving Ground, Fort Belvoir, Virginia.
    Sec. 2850. Land conveyance, Radford Army Ammunition Plant, New River
               Unit, Virginia.

                           Subtitle E--Energy Security

    Sec. 2851. Consolidation and enhancement of laws to improve Department
               of Defense energy efficiency and conservation.
    Sec. 2852. Department of Defense goal regarding use of renewable energy
               to meet electricity needs.
    Sec. 2853. Congressional notification of cancellation ceiling for
               Department of Defense energy savings performance contracts.
    Sec. 2854. Use of energy efficiency products in new construction.

                            Subtitle F--Other Matters

    Sec. 2861. Availability of research and technical assistance under
               Defense Economic Adjustment Program.
    Sec. 2862. Availability of community planning assistance relating to
               encroachment of civilian communities on military facilities
               used for training by the Armed Forces.
    Sec. 2863. Prohibitions against making certain military airfields or
               facilities available for use by civil aircraft.
    Sec. 2864. Modification of certain transportation projects.
    Sec. 2865. Availability of funds for South County Commuter Rail project,
               Providence, Rhode Island.
    Sec. 2866. Fox Point Hurricane Barrier, Providence, Rhode Island.
    Sec. 2867. Federal funding for fixed guideway projects.
    Sec. 2868. Feasibility study regarding use of General Services
               Administration property for Fort Belvoir, Virginia,
               realignment.

     Subtitle A--Military Construction Program and Military Family Housing
                                     Changes

    SEC. 2801. INCREASE IN MAXIMUM ANNUAL AMOUNT AUTHORIZED TO BE
                              OBLIGATED FOR EMERGENCY MILITARY
                              CONSTRUCTION.

        Section 2803(c)(1) of title 10, United States Code, is amended by
    striking ``$45,000,000'' and inserting ``$50,000,000''.
    SEC. 2802. ONE-YEAR EXTENSION OF TEMPORARY, LIMITED AUTHORITY TO
                              USE OPERATION AND MAINTENANCE FUNDS FOR
                              CONSTRUCTION PROJECTS OUTSIDE THE UNITED
                              STATES.

        Section 2808(a) of the Military Construction Authorization Act for
    Fiscal Year 2004 (division B of Public Law 108-136; 117 Stat.

    [[Page 120 STAT. 2467]]

    1723), as amended by section 2810 of the Military Construction
    Authorization Act for Fiscal Year 2005 (division B of Public Law 108-
    375; 118 Stat. 2128) and section 2809 of the Military Construction
    Authorization Act for Fiscal Year 2006 (division B of Public Law 109-
    163; 119 Stat. 3508), is further amended by striking ``and 2006'' and
    inserting ``through 2007''.
    SEC. 2803. REPEAL OF REQUIREMENT TO DETERMINE AVAILABILITY OF
                              SUITABLE ALTERNATIVE HOUSING FOR
                              ACQUISITION IN LIEU OF CONSTRUCTION OF
                              NEW FAMILY HOUSING.

        (a) In General.--Section 2823 of title 10, United States Code, is
    repealed.
        (b) Clerical Amendment.--The table of sections at the beginning of
    subchapter II of chapter 169 of such title is amended by striking the
    item relating to section 2823.
    SEC. 2804. AUTHORITY TO CONTINUE TO OCCUPY LEASED FAMILY HOUSING
                              FOR UNITED STATES SOUTHERN COMMAND
                              PERSONNEL.

        Section 2828(b)(4) of title 10, United States Code, is amended by
    adding at the end the following new subparagraph:
        ``(D) <<NOTE: Deadline.>> Until September 30, 2008, the Secretary of
    the Army may authorize family members of a member of the armed forces on
    active duty who is assigned to a family-member-restricted area and who,
    before such assignment, was occupying a housing unit leased under this
    paragraph, to remain in the leased housing unit until the member
    completes the assignment. Costs incurred for the leased housing unit
    during the assignment shall be included in the costs subject to the
    limitation under subparagraph (B).''.
    SEC. 2805. CONSIDERATION OF ALTERNATIVE AND MORE EFFICIENT USES
                              FOR GENERAL OFFICER AND FLAG OFFICER
                              QUARTERS IN EXCESS OF 6,000 SQUARE FEET.

        (a) Reporting Requirements.--Subsection (e)(1) of section 2831 of
    title 10, United States Code, is amended--
                (1) in subparagraph (A), by striking ``and'' at the end of
            the subparagraph;
                (2) in subparagraph (B)--
                        (A) by striking ``so identified'' and inserting
                    ``identified under subparagraph (A)''; and
                        (B) by striking the period at the end of the
                    subparagraph and inserting a semicolon; and
                (3) by adding at the end the following new subparagraphs:
                ``(C) identifying each family housing unit in excess of
            6,000 square feet used, or intended for use, as quarters for a
            general officer or flag officer;
                ``(D) for each family housing unit identified under
            subparagraph (C), specifying any alternative and more efficient
            use to which the unit could be converted (which would include
            any costs necessary to convert the unit) and containing an
            explanation of the reasons why the unit is not being converted
            to the alternative use; and
                ``(E) for each family housing unit identified under
            subparagraph (C) for which costs under subparagraph (A) or new
            construction costs are anticipated to exceed $100,000 in the
            next fiscal year, specifying any alternative use to which the

    [[Page 120 STAT. 2468]]

            unit could be converted (which would include any costs necessary
            to convert the unit) and an estimate of the costs to demolish
            and rebuild the unit to private sector standards.''.

        (b) Stylistic Amendments.--Such section is further amended--
                (1) in subsection (a), by inserting ``Establishment.--''
            after ``(a)'';
                (2) in subsection (b), by inserting ``Credits to Account.--
            '' after ``(b)'';
                (3) in subsection (c), by inserting ``Availability of
            Amounts in Account.--'' after ``(c)''; and
                (4) in subsection (d), by inserting ``Use of Account.--''
            after ``(d)''; and
                (5) in the heading of subsection (e), by striking ``Cost
            of'';
    SEC. 2806. MODIFICATION OF NOTIFICATION REQUIREMENTS RELATED TO
                              COST VARIATION AUTHORITY.

        Section 2853(c) of title 10, United States Code, is amended by
    striking ``if--'' and paragraphs (1), (2), and (3) and inserting the
    following: ``if the variation in cost or reduction in the scope of work
    is approved by the Secretary concerned and--
                ``(1) in the case of a cost increase or a reduction in the
            scope of work--
                        ``(A) the Secretary concerned notifies the
                    appropriate committees of Congress in writing of the
                    cost increase or reduction in scope and the reasons
                    therefor, including a description of the funds proposed
                    to be used to finance any increased costs; and
                        ``(B) a period of 21 days has elapsed after the date
                    on which the notification is received by the committees
                    or, if over sooner, a period of 14 days has elapsed
                    after the date on which a copy of the notification is
                    provided in an electronic medium pursuant to section 480
                    of this title; or
                ``(2) in the case of a cost decrease, the Secretary
            concerned notifies the appropriate committees of Congress in
            writing not later than 14 days after the date funds are
            obligated in connection with the military construction project
            or military family housing project.''.
    SEC. 2807. CONSIDERATION OF LOCAL COMPARABILITY OF FLOOR AREAS IN
                              CONSTRUCTION, ACQUISITION, AND
                              IMPROVEMENT OF MILITARY UNACCOMPANIED
                              HOUSING.

        (a) Comparability of Floor Areas.--
                (1) In general.--Section 2856 of title 10, United States
            Code, is amended to read as follows:

    ``Sec. 2856. Military unaccompanied housing: local comparability of
                            floor areas

        ``In the construction, acquisition, and improvement of military
    unaccompanied housing, the Secretary concerned shall ensure that the
    floor areas of such housing in a particular locality (as designated by
    the Secretary concerned for purposes of this section) do not exceed the
    floor areas of similar housing in the private sector in that
    locality.''.
                (2) Clerical amendment.--The table of sections at the
            beginning of subchapter III of chapter 169 of such title is

    [[Page 120 STAT. 2469]]

            amended by striking the item relating to section 2856 and
            inserting the following new item:

    ``2856. Military unaccompanied housing: local comparability of floor
               areas.''.

        (b) Conforming Amendments Regarding Alternative Acquisition and
    Improvement Authority.--Section 2880(b) of such title is amended--
                (1) by striking ``(1) Section 2826'' and inserting
            ``Sections 2826 and 2856'';
                (2) by inserting ``or military unaccompanied housing'' after
            ``military family housing''; and
                (3) by striking paragraph (2).
    SEC. 2808. CERTIFICATION REQUIRED FOR MILITARY CONSTRUCTION
                              PROJECTS FOR FACILITIES DESIGNED TO
                              PROVIDE TRAINING IN URBAN OPERATIONS.

        (a) Certification Required.--Section 2859 of title 10, United States
    Code, is amended by adding at the end the following new subsection:
        ``(d) Certification Required for Military Construction Projects
    Designed to Provide Training in Urban Operations.--(1) Except as
    provided in paragraph (3), the Secretary concerned may not carry out a
    military construction project to construct a facility designed to
    provide training in urban operations for members of the armed forces or
    personnel of the Department of Defense or other Federal agencies until--
                ``(A) the Secretary of Defense approves a strategy for
            training and facility construction for operations in urban
            terrain; and
                ``(B) <<NOTE: Evaluation.>> the Under Secretary of Defense
            for Personnel and Readiness evaluates the project and certifies
            to the appropriate committees of Congress that the project--
                        ``(i) is consistent with the strategy; and
                        ``(ii) incorporates the appropriate capabilities for
                    joint and interagency use in accordance with the
                    strategy.

        ``(2) The Under Secretary of Defense for Personnel and Readiness
    shall conduct the evaluation required by paragraph (1)(B) in
    consultation with the Commander of the United States Joint Forces
    Command.
        ``(3) This subsection shall not apply with respect to a military
    construction project carried out under the authority of section 2803,
    2804, or 2808 of this title or section 2808 of the Military Construction
    Authorization Act for Fiscal Year 2004 (division B of Public Law 108-
    136; 117 Stat. 1723).''.
        (b) Clerical Amendments.--
                (1) Section heading.--The heading of such section is amended
            to read as follows:

    ``Sec. 2859. Construction requirements related to antiterrorism and
                            force protection or urban-training operations''.

                (2) Table of sections.--The table of sections at the
            beginning of subchapter III of chapter 169 of such title is
            amended

    [[Page 120 STAT. 2470]]

            by striking the item relating to section 2859 and inserting the
            following new item:

    ``2859. Construction requirements related to antiterrorism and force
               protection or urban-training operations.''.

        (c) Effective Date.--Subsection <<NOTE: 10 USC 2859 note.>> (d) of
    section 2859 of title 10, United States Code, as added by subsection
    (a), shall apply with respect to military construction projects
    described in such subsection (d) for which funds are first provided for
    fiscal year 2007 or thereafter.
    SEC. 2809. AUTHORITY TO CARRY OUT MILITARY CONSTRUCTION PROJECTS
                              IN CONNECTION WITH INDUSTRIAL FACILITY
                              INVESTMENT PROGRAM.

        (a) Authority.--Subchapter III of chapter 169 of title 10, United
    States Code, is amended by inserting after section 2860 the following
    new section:

    ``Sec. 2861. Military construction projects in connection with
                            industrial facility investment program

        ``(a) Authority.--The Secretary of Defense may carry out a military
    construction project, not previously authorized, for the purpose of
    carrying out activities under section 2474(a)(2) of this title, using
    funds appropriated or otherwise made available for that purpose in
    military construction accounts.
        ``(b) Crediting of Funds to Capital Budget.--Funds appropriated or
    otherwise made available in a fiscal year for the purpose of carrying
    out a military construction project with respect to a covered depot (as
    defined in subsection (e) of section 2476 of this title) may be credited
    to the amount required by subsection (a) of such section to be invested
    in the capital budgets of the covered depots in that fiscal year.
        ``(c) Notice and Wait Requirement.--When a decision is made to carry
    out a project under subsection (a), the Secretary of Defense shall
    notify in writing the appropriate committees of Congress of that
    decision and the savings estimated to be realized from the project. The
    project may then be carried out only after the end of the 21-day period
    beginning on the date the notification is received by such committees
    or, if earlier, the end of the 14-day period beginning on the date on
    which a copy of the notification is provided in an electronic medium
    pursuant to section 480 of this title.
        ``(d) Annual Report.--Not later than December 31 of each year, the
    Secretary shall submit to Congress a report describing actions taken
    under this section and the savings realized from such actions during the
    fiscal year ending in the year in which the report is submitted.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such subchapter is amended by inserting after the item relating to
    section 2860 the following new item:

    ``2861. Military construction projects in connection with industrial
               facility investment program.''.

    SEC. 2810. REPEAL OF SPECIAL REQUIREMENT FOR MILITARY CONSTRUCTION
                              CONTRACTS ON GUAM.

        (a) Repeal.--Section 2864 of title 10, United States Code, is
    repealed.

    [[Page 120 STAT. 2471]]

        (b) Clerical Amendment.--The table of sections at the beginning of
    subchapter III of chapter 169 of such title is amended by striking the
    item relating to section 2864.
    SEC. 2811. TEMPORARY EXPANSION OF AUTHORITY TO CONVEY PROPERTY AT
                              MILITARY INSTALLATIONS TO SUPPORT
                              MILITARY CONSTRUCTION.

        (a) Temporary Inclusion of All Military Installations.--Subsection
    (a) of section 2869 of title 10, United States Code, is amended--
                (1) by redesignating paragraphs (1) and (2) as subparagraphs
            (A) and (B), respectively;
                (2) by inserting ``(1)'' before ``The Secretary concerned'';
                (3) by striking ``located on a military installation that is
            closed or realigned under a base closure law'' and inserting
            ``described in paragraph (2)''; and
                (4) by adding at the end the following new paragraphs:

        ``(2) <<NOTE: Applicability.>> Paragraph (1) applies with respect to
    real property under the jurisdiction of the Secretary concerned that--
                ``(A) is located on a military installation that is closed
            or realigned under a base closure law; or
                ``(B) is located on a military installation not covered by
            subparagraph (A) and is determined to be excess to the needs of
            the Department of Defense.

        ``(3) <<NOTE: Applicability.>> Subparagraph (B) of paragraph (2)
    shall apply only during the period beginning on the date of the
    enactment of the John Warner National Defense Authorization Act for
    Fiscal Year 2007 and ending on September 30, 2008. Any conveyance of
    real property described in such subparagraph for which the Secretary
    concerned has provided the advance public notice required by subsection
    (d)(1) before the expiration date may be completed after that date.''.

        (b) Use of Authority to Support Agreements to Limit Encroachments.--
    Subparagraph (A) of paragraph (1) of subsection (a) of such section, as
    redesignated and amended by subsection (a), is further amended by
    striking ``land acquisition'' and inserting ``land acquisition,
    including the acquisition of all right, title, and interest or a lesser
    interest in real property under an agreement entered into under section
    2684a of this title to limit encroachments and other constraints on
    military training, testing, and operations''.
        (c) Advance Notice of Use of Authority; Content of Notice.--
    Subsection (d) of such section is amended--
                (1) in paragraph (1), by striking ``closed or realigned
            under the base closure laws is to be conveyed'' and inserting
            ``is proposed for conveyance'';
                (2) by striking paragraph (2) and inserting the following
            new paragraph:

        ``(2) The Secretary concerned may not enter into an agreement under
    subsection (a) for the conveyance of real property until--
                ``(A) the Secretary submits to Congress notice of the
            conveyance, including--
                        ``(i) a description of the real property to be
                    conveyed by the Secretary under the agreement;
                        ``(ii) a description of the military construction
                    project, land acquisition, military family housing, or
                    military unaccompanied housing to be carried out under
                    the agreement in exchange for the conveyance of the
                    property; and

    [[Page 120 STAT. 2472]]

                        ``(iii) the amount of any payment to be made under
                    subsection (b) or under section 2684a(d) of this title
                    to equalize the fair market values of the property to be
                    conveyed and the military construction project, land
                    acquisition, military family housing, or military
                    unaccompanied housing to be carried out under the
                    agreement in exchange for the conveyance of the
                    property; and
                ``(B) the waiting period applicable to that notice under
            paragraph (3) expires.

        ``(3) If the notice submitted under paragraph (2) deals with the
    conveyance of real property located on a military installation that is
    closed or realigned under a base closure law or the conveyance of real
    property under an agreement entered into under section 2684a of this
    title, the Secretary concerned may enter into the agreement under
    subsection (a) for the conveyance of the property after a period of 21
    days has elapsed from the date of receipt of the notice or, if over
    sooner, a period of 14 days has elapsed from the date on which a copy of
    the notice is provided in an electronic medium pursuant to section 480
    of this title. In the case of other real property to be conveyed under
    subsection (a), the Secretary concerned may enter into the agreement
    only after a period of 60 days has elapsed from the date of receipt of
    the notice or, if over sooner, a period of 45 days has elapsed from the
    date on which the electronic copy is provided.''.
        (d) Deposit and Use of Funds.--Subsection (e) of such section is
    amended to read as follows:
        ``(e) Deposit and Use of Funds.--(1) Except as provided in paragraph
    (2), the Secretary concerned may deposit funds received under subsection
    (b) in the Department of Defense housing funds established under section
    2883(a) of this title.
        ``(2) During the period specified in paragraph (3) of subsection
    (a), the Secretary concerned shall deposit funds received under
    subsection (b) in the appropriation `Foreign Currency Fluctuations,
    Construction, Defense'.
        ``(3) The funds deposited under paragraph (2) shall be available, in
    such amounts as provided in appropriation Acts, for the purpose of
    paying increased costs of overseas military construction and family
    housing construction or improvement associated with unfavorable
    fluctuations in currency exchange rates. The use of such funds for this
    purpose does not relieve the Secretary concerned from the duty to
    provide advance notice to Congress under section 2853(c) of this title
    whenever the Secretary approves an increase in the cost of an overseas
    project under such section.''.
        (e) Annual Reports; Effect of Failure to Submit.--Subsection (f) of
    such section is amended--
                (1) by redesignating paragraphs (1), (2), and (3) as
            subparagraphs (A), (B), and (C), respectively;
                (2) in subparagraph (C), as so redesignated, by inserting
            before the period at the end the following: ``and of excess real
            property at military installations'';
                (3) by striking ``(f)'' and all that follows through ``the
            following:'' and inserting the following:

        ``(f) Annual Reports; Effect of Failure to Submit.--(1) Not later
    than March 15 of each year, the Secretary of Defense shall submit to
    Congress a report detailing the following:''; and
                (4) by adding at the end the following new paragraph:

    [[Page 120 STAT. 2473]]

        ``(2) If the report for a year is not submitted to Congress by the
    date specified in paragraph (1), the Secretary concerned may not enter
    into an agreement under subsection (a) after that date for the
    conveyance of real property until the date on which the report is
    finally submitted.''.
        (f) Clerical Amendments.--
                (1) Section heading.--The heading of such section is amended
            to read as follows:

    ``Sec. 2869. Conveyance of property at military installations to support
                            military construction or limit encroachment''.

                (2) Table of sections.--The table of sections at the
            beginning of subchapter III of chapter 169 of such title is
            amended by striking the item relating to section 2869 and
            inserting the following new item:

    ``2869. Conveyance of property at military installations to support
               military construction or limit encroachment.''.

        (g) Conforming Amendments to Authority to Limit Encroachments.--
    Subsection (d)(3) of section 2684a of such title is amended--
                (1) by redesignating subparagraphs (B) and (C) as
            subparagraphs (C) and (D), respectively;
                (2) in subparagraph (C), as so redesignated, by striking
            ``in the sharing of acquisition costs of real property, or an
            interest in real property, under paragraph (1)(B)'' and
            inserting ``under subparagraph (A), either through the
            contribution of funds or excess real property, or both,''; and
                (3) by inserting after subparagraph (A) the following new
            subparagraph (B):

        ``(B) In lieu of or in addition to making a monetary contribution
    toward the cost of acquiring a parcel of real property, or an interest
    therein, pursuant to an agreement under this section, the Secretary
    concerned may convey, using the authority provided by section 2869 of
    this title, real property described in paragraph (2) of subsection (a)
    of such section, subject to the limitation in paragraph (3) of such
    subsection.''.
    SEC. 2812. PILOT PROJECTS FOR ACQUISITION OR CONSTRUCTION OF
                              MILITARY UNACCOMPANIED HOUSING.

        (a) Reduction of Applicable Notification Periods.--Section 2881a of
    title 10, United States Code, is amended by striking ``90 days'' both
    places it appears and inserting ``30 days''.
        (b) Extension of Authority.--Subsection (f) of such section is
    amended by striking ``2007'' and inserting ``2009''.

             Subtitle B--Real Property and Facilities Administration

    SEC. 2821. CONGRESSIONAL NOTICE REQUIREMENTS, IN ADVANCE OF
                              ACQUISITION OF LAND BY CONDEMNATION FOR
                              MILITARY PURPOSES.

        (a) Sense <<NOTE: 10 USC 2663 note.>> of Congress.--It is the sense
    of Congress that the Secretary of Defense, when acquiring land for
    military purposes, should--

    [[Page 120 STAT. 2474]]

                (1) make every effort to acquire the land by means of
            purchases from willing sellers; and
                (2) employ condemnation, eminent domain, or seizure
            procedures only as a measure of last resort in cases of
            compelling national security requirements or at the request of
            the seller.

        (b) Advance Notice of Use of Condemnation; Exceptions.--Section 2663
    of title 10, United States Code, is amended--
                (1) in subsection (a)(1), ``The Secretary'' and inserting
            ``Subject to subsection (f), the Secretary''; and
                (2) by adding at the end the following new subsections:

        ``(f) Advance Notice of Use of Condemnation.--(1) Before commencing
    any legal proceeding to acquire any interest in land under subsection
    (a), including acquisition for temporary use, by condemnation, eminent
    domain, or seizure, the Secretary of the military department concerned
    shall--
                ``(A) pursue, to the maximum extent practicable, all other
            available options for the acquisition or use of the land, such
            as the purchase of an easement or the execution of a land
            exchange; and
                ``(B) submit to the congressional defense committees a
            report containing--
                        ``(i) a description of the land to be acquired;
                        ``(ii) a certification that negotiations with the
                    owner or owners of the land occurred, and that the
                    Secretary tendered consideration in an amount equal to
                    the fair market value of the land, as determined by the
                    Secretary; and
                        ``(iii) an explanation of the other approaches
                    considered for acquiring use of the land, the reasons
                    for the acquisition of the land, and the reasons why
                    alternative acquisition strategies are inadequate.

        ``(2) The Secretary concerned may have proceedings brought in the
    name of the United States to acquire the land after the end of the 21-
    day period beginning on the date on which the report is received by the
    committees or, if over sooner, the end of the 14-day period beginning on
    the date on which a copy of the report is provided in an electronic
    medium pursuant to section 480 of this title.
        ``(g) Exception to Advance Notice Requirement.--If the Secretary of
    a military department determines that the use of condemnation, eminent
    domain, or seizure to acquire an interest in land is required under
    subsection (a) to satisfy a requirement vital to national security, and
    that any delay would be detrimental to national security or the
    protection of health, safety, or the environment, the Secretary may have
    proceedings brought in the name of the United States to acquire the land
    in advance of submitting the report required by subsection
    (f)(1)(B). <<NOTE: Reports. Deadline.>> However, the Secretary shall
    submit the report not later than seven days after commencement of the
    legal proceedings with respect to the land.''.
    SEC. 2822. CONSOLIDATION OF DEPARTMENT OF DEFENSE AUTHORITIES
                              REGARDING GRANTING OF EASEMENTS FOR
                              RIGHTS-OF-WAY.

        (a) Consolidation.--Subsection (a) of section 2668 of title 10,
    United States Code, is amended--
                (1) in the matter preceding paragraph (1)--

    [[Page 120 STAT. 2475]]

                        (A) by striking ``he'' both places it appears and
                    inserting ``the Secretary''; and
                        (B) by striking ``his control, to a State,
                    Commonwealth, or possession, or political subdivision
                    thereof, or to a citizen, association, partnership, or
                    corporation of a State, Commonwealth, or possession,''
                    and inserting ``the Secretary's control'';
                (2) in paragraph (2), by striking ``oil pipe lines'' and
            inserting ``gas, water, sewer, and oil pipe lines''; and
                (3) in paragraph (13), by striking ``he considers advisable,
            except a purpose covered by section 2669 of this title'' and
            inserting ``the Secretary considers advisable''.

        (b) Stylistic Amendments.--Such section is further amended--
                (1) in subsection (a), by inserting ``Authorized Types of
            Easements.--'' after ``(a)'';
                (2) in subsection (b), by inserting ``Limitation on Size of
            Easement.--'' after ``(b)'';
                (3) in subsection (c), by inserting ``Termination.--'' after
            ``(c)'';
                (4) in subsection (d), by inserting ``Notice to Department
            of the Interior.--'' after ``(d)''; and
                (5) in subsection (e), by inserting ``Disposition of
            Consideration.--'' after ``(e)''.

        (c) Conforming Repeal.--Section 2669 of such title is repealed.
        (d) Clerical Amendment.--The table of sections at the beginning of
    chapter 159 of such title is amended by striking the item related to
    section 2669.
    SEC. 2823. AUTHORITY TO GRANT RESTRICTIVE EASEMENTS FOR
                              CONSERVATION PURPOSES IN CONNECTION WITH
                              LAND CONVEYANCES.

        (a) Restrictive Easements.--Chapter 159 of title 10, United States
    Code, is amended by inserting after section 2668 the following new
    section:

    ``Sec. 2668a. Easements: granting restrictive easements in connection
                            with land conveyances

        ``(a) Authority to Include Restrictive Easement.--In connection with
    the conveyance of real property by the Secretary concerned under any
    provision of law, the Secretary concerned may grant an easement to an
    entity specified in subsection (b) restricting future uses of the
    conveyed real property for a conservation purpose consistent with
    section 170(h)(4)(A)(iv) of the Internal Revenue Code of 1986 (26 U.S.C.
    170(h)(4)(A)(iv)).
        ``(b) Authorized Recipients.--An easement under subsection (a) may
    be granted only to--
                ``(1) a State or local government; or
                ``(2) a qualified organization, as that term is defined in
            section 170(h) of the Internal Revenue Code of 1986 (26 U.S.C.
            170(h)).

        ``(c) Limitations on Use of Easement Authority.--An easement under
    subsection (a) may not be granted unless--
                ``(1) the proposed recipient of the easement consents to the
            receipt of the easement;
                ``(2) the Secretary concerned determines that the easement
            is in the public interest and the conservation purpose to be

    [[Page 120 STAT. 2476]]

            promoted by the easement cannot be effectively achieved through
            the application of State law by the State or a local government
            without the grant of restrictive easements;
                ``(3) the jurisdiction that encompasses the property to be
            subject to the easement authorizes the grant of restrictive
            easements; and
                ``(4) the Secretary can give or assign to a third party the
            responsibility for monitoring and enforcing easements granted
            under this section.

        ``(d) Consideration.--Easements granted under this section shall be
    without consideration from the recipient.
        ``(e) Acreage Limitation.--No easement granted under this section
    may include more land than is necessary for the easement.
        ``(f) Terms and Conditions.--The grant of an easement under this
    section shall be subject to such additional terms and conditions as the
    Secretary concerned considers appropriate to protect the interests of
    the United States.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by inserting after the item relating to section
    2668 the following new item:

    ``2668a. Easements: granting restrictive easements in connection with
               land conveyances.''.

    SEC. 2824. MAXIMUM TERM OF LEASES FOR STRUCTURES AND REAL PROPERTY
                              RELATING TO STRUCTURES IN FOREIGN
                              COUNTRIES NEEDED FOR PURPOSES OTHER THAN
                              FAMILY HOUSING.

        Section 2675(a) of title 10, United States Code, is amended by
    striking ``five years'' and inserting ``10 years''.
    SEC. 2825. CONSOLIDATION OF LAWS RELATING TO TRANSFER OF
                              DEPARTMENT OF DEFENSE REAL PROPERTY
                              WITHIN THE DEPARTMENT OF DEFENSE AND TO
                              OTHER FEDERAL AGENCIES.

        (a) Inclusion of Transfer Authority Between Armed Forces.--Section
    2696 of title 10, United States Code, is amended--
                (1) by redesignating subsections (a) and (b) as subsections
            (b) and (c), respectively; and
                (2) by inserting before subsection (b), as so redesignated,
            the following new subsection:

        ``(a) Transfers Between Armed Forces.--If either of the Secretaries
    concerned requests it and the other approves, real property may be
    transferred, without compensation, from one armed force to
    another. <<NOTE: Applicability.>> Section 2571(d) of this title shall
    apply to the transfer of real property under this subsection.''.

        (b) Inclusion of Department of Justice Program to Screen and Convey
    Property for Correctional Facilities.--The text of section 2693 of such
    title is amended--
                (1) by redesignating paragraphs (1), (2), and (3) of
            subsection (a) as subparagraphs (A), (B), and (C), respectively;
                (2) by redesignating paragraphs (1) and (2) of subsection
            (b) as subparagraphs (A) and (B), respectively, and in such
            subparagraph (B), as so redesignated, by striking ``this
            section'' and inserting ``paragraph (1)'';
                (3) by striking ``(a) Except as provided in subsection (b)''
            and inserting ``(f) Screening and Conveyance of Property

    [[Page 120 STAT. 2477]]

            for Correctional Facilities Purposes.--(1) Except as provided in
            paragraph (2)'';
                (4) by striking ``(b) The provisions of this section'' and
            inserting ``(2) Paragraph (1)''; and
                (5) <<NOTE: 10 USC 2693, 2696.>> by transferring the text,
            as so redesignated and amended, to appear as a new subsection
            (f) at the end of section 2696 of such title.

        (c) Conforming Amendments.--
                (1) Conforming amendment to authority on interchange of
            property and services.--Section 2571(a) of such title is amended
            by striking ``and real estate''.
                (2) Repeal of superseded authority on screening and transfer
            for correctional purposes.--Section 2693 of such title is
            repealed.
                (3) Conforming amendments to consolidated authority.--
            Section 2696 of such title is amended--
                        (A) in subsection (b), as redesignated by subsection
                    (a)(1), by striking ``Screening Requirement.--'' and
                    inserting ``Screening Requirements for Additional
                    Federal Use.--'';
                        (B) in subsection (c)(1), as redesignated by
                    subsection (a)(1), by striking ``subsection (a)'' in the
                    first sentence and inserting ``subsection (b)'';
                        (C) in subsection (d), by striking ``subsection
                    (b)(1)'' and inserting ``subsection (c)(1)''; and
                        (D) in subsection (e), by striking ``this section''
                    and inserting ``subsection (b)''.

        (d) Clerical Amendments.--
                (1) Section 2571.--(A) The heading of section 2571 of such
            title is amended to read as follows:

    ``Sec. 2571. Interchange of supplies and services''.

                (B) The table of sections at the beginning of chapter 153 of
            such title is amended by striking the item relating to section
            2571 and inserting the following new item:

    ``2571. Interchange of supplies and services.''.

                (2) Sections 2693 and 2696.--(A) The heading of section 2696
            of such title is amended to read as follows:

    ``Sec. 2696. Real property: transfer between armed forces and screening
                            requirements for other Federal use''.

                (B) The table of sections at the beginning of chapter 159 of
            such title is amended--
                        (i) by striking the item relating to section 2693;
                    and
                        (ii) by striking the item relating to section 2696
                    and inserting the following new item:

    ``2696. Real property: transfer between armed forces and screening
               requirements for other Federal use.''.

    SEC. 2826. DEFENSE ACCESS ROAD PROGRAM.

        Section 2837 of the Military Construction Authorization Act for
    Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat. 3522) is
    amended--
                (1) in subsection (a)--
                        (A) by inserting ``and transit systems'' after
                    ``that roads''; and

    [[Page 120 STAT. 2478]]

                        (B) by striking ``that is'' and inserting ``that
                    are''; and
                (2) in subsection (b)--
                        (A) by striking ``and'' at the end of paragraph (1);
                    and
                        (B) by striking paragraph (2) and inserting the
                    following new paragraphs:
                ``(2) to determine whether the existing surface
            transportation infrastructure, including roads and transit at
            each installation identified under paragraph (1) is adequate to
            support the increased traffic associated with the increase in
            the number of defense personnel described in that paragraph; and
                ``(3) to determine whether the defense access road program
            adequately considers the complete range of surface
            transportation options, including roads and other means of
            transit, necessary to support the national defense.''.
    SEC. 2827. REPORTS ON ARMY OPERATIONAL RANGES.

        (a) Report <<NOTE: Colorado.>> on Pinon Canyon Maneuver Site.--
                (1) Report required.--Not later than November 30, 2006, the
            Secretary of the Army shall submit to the congressional defense
            committees a report containing an analysis of any potential
            expansion of the Pinon Canyon Maneuver Site at Fort Carson,
            Colorado.
                (2) Elements of report.--The report required under paragraph
            (1) shall include the following:
                        (A) A description of the current and projected
                    military requirements of the Army for training at the
                    Pinon Canyon Maneuver Site.
                        (B) An analysis of the reasons for any changes in
                    those requirements, including the extent to which the
                    changes are the result of--
                              (i) an increase in military personnel using
                          the Pinon Canyon Maneuver Site due to decisions
                          made as part of the 2005 round of defense base
                          closure and realignment under 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);
                              (ii) the conversion of Army brigades to a
                          modular format;
                              (iii) the Integrated Global Presence and
                          Basing Strategy;
                              (iv) high operational tempos; or
                              (v) surge requirements.
                        (C) A proposed plan for addressing those
                    requirements, including a description of any proposed
                    expansion of the existing Pinon Canyon Maneuver Site by
                    acquiring privately held land surrounding the site and
                    an analysis of alternative approaches that would not
                    require expansion.
                (3) Additional elements.--If the expansion of the Pinon
            Canyon Maneuver Site is recommended in the plan required by
            paragraph (2)(C), the report shall also include the following:
                        (A) An assessment of the economic impact on local
                    communities of expanding the Pinon Canyon Maneuver Site
                    by acquiring privately held land surrounding the site.
                        (B) An assessment of the environmental impact of
                    expanding the Pinon Canyon Maneuver Site.

    [[Page 120 STAT. 2479]]

                        (C) An estimate of the costs associated with the
                    potential expansion, including land acquisition, range
                    improvements, installation of utilities, environmental
                    restoration, and other environmental activities in
                    connection with the acquisition.
                        (D) An assessment of options for compensating local
                    communities for the loss of property tax revenue as a
                    result of the expansion of the Pinon Canyon Maneuver
                    Site.
                        (E) An assessment of whether the acquisition of
                    additional land at the Pinon Canyon Maneuver Site can be
                    carried out by the Secretary solely through
                    transactions, including land exchanges and the lease or
                    purchase of easements, with willing sellers of the
                    privately held land.

        (b) Limitation on Real Property Acquisition Pending Report.--The
    Secretary of the Army may not carry out any acquisition of real property
    to expand the Pinon Canyon Maneuver Site until at least 30 days after
    the date on which the Secretary submits the report required under
    subsection (a).
        (c) Report on Potential Expansion of Army Operational Ranges.--
                (1) Report required.--Not later than February 1, 2007, the
            Secretary of the Army shall submit to the congressional defense
            committees a report containing an assessment of the Army
            operational ranges used to support range activities.
                (2) Content.--The report required under paragraph (1) shall
            include the following information:
                        (A) The size, description, and mission-essential
                    tasks supported by each Army operational range during
                    fiscal year 2003.
                        (B) A description of the projected changes in Army
                    operational range requirements, including the size,
                    characteristics, and attributes for mission-essential
                    activities at each range and the extent to which any
                    changes in requirements are a result of--
                              (i) decisions made as part of the 2005 round
                          of defense base closure and realignment under 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);
                              (ii) the conversion of Army brigades to a
                          modular format;
                              (iii) the Integrated Global Presence and
                          Basing Strategy;
                              (iv) high operational tempos; or
                              (v) surge requirements.
                        (C) The projected deficit or surplus of land at each
                    Army operational range, and a description of the Army's
                    plan to address that projected deficit or surplus of
                    land as well as the upgrade of range attributes at each
                    existing Army operational range.
                        (D) A description of the Army's prioritization
                    process and investment strategy to address the potential
                    expansion or upgrade of Army operational ranges.
                        (E) An analysis of alternatives to the expansion of
                    Army operational ranges, including an assessment of the

    [[Page 120 STAT. 2480]]

                    joint use of operational ranges under the jurisdiction,
                    custody, or control of the Secretary of another military
                    department.
                (3) Definitions.--In this subsection:
                        (A) The term ``Army operational range'' has the
                    meaning given the term ``operational range'' in section
                    101(e)(3) of title 10, United States Code, except that
                    the term is limited to operational ranges under the
                    jurisdiction, custody, or control of the Secretary of
                    the Army.
                        (B) The term ``range activities'' has the meaning
                    given that term in section 101(e)(2) of such title.

                    Subtitle C--Base Closure and Realignment

    SEC. 2831. MODIFICATION OF DEPOSIT REQUIREMENTS IN CONNECTION WITH
                              LEASE PROCEEDS RECEIVED AT MILITARY
                              INSTALLATIONS APPROVED FOR CLOSURE OR
                              REALIGNMENT AFTER JANUARY 1, 2005.

        Section 2667(d) of title 10, United States Code, is amended--
                (1) in paragraph (1)(B)(ii), by striking ``paragraph (4) or
            (5)'' and inserting ``paragraph (4), (5), or (6)'';
                (2) in paragraph (5), by inserting after ``lease under
            subsection (f)'' the following: ``at a military installation
            approved for closure or realignment under a base closure law
            before January 1, 2005,''; and
                (3) by adding at the end the following new paragraph:

        ``(6) Money rentals received by the United States from a lease under
    subsection (f) at a military installation approved for closure or
    realignment under a base closure law on or after January 1, 2005, shall
    be deposited into the account established under section 2906A(a) 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. 2832. REPORT ON AIR FORCE AND AIR NATIONAL GUARD BASES
                              AFFECTED BY 2005 ROUND OF DEFENSE BASE
                              CLOSURE AND REALIGNMENT.

        (a) Report.--Not later than January 1, 2007, the Secretary of the
    Air Force shall submit to Congress a report on planning by the
    Department of the Air Force for future roles and missions for each Air
    Force and Air National Guard installation that--
                (1) will have the number of aircraft, weapon systems, or
            functions assigned to the installation reduced or eliminated as
            a result of decisions made as part of the 2005 round of defense
            base closure and realignment under 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); or
                (2) will serve as a receiving location for the realignment
            of aircraft, weapons systems, or functions as a result of such
            decisions.

        (b) Elements of Report.--The report required under subsection (a)
    shall include the following:
                (1) An assessment of the capabilities, characteristics, and
            capacity of the facilities, other infrastructure, and personnel
            at each installation described in subsection (a).

    [[Page 120 STAT. 2481]]

                (2) A description of the planning process used by the
            Department of the Air Force to determine future roles and
            missions at each installation described in subsection (a),
            including an analysis of alternatives for installations to
            support each future role or mission.
                (3) A description of the future roles and missions under
            consideration for each Air Force and Air National Guard
            installation, including installations described in subsection
            (a), and an explanation of the criteria and decision-making
            process to make final decisions about future roles and missions
            for each installation.
                (4) A timeline for decisions on the final determination of
            future roles and missions for each installation described in
            subsection (a).

                          Subtitle D--Land Conveyances

    SEC. 2841. CONVEYANCE OF EASEMENT, PINE BLUFF ARSENAL, ARKANSAS.

        (a) Conveyance Authorized.--The Secretary of the Army may convey,
    without consideration, to Jefferson County, Arkansas (in this section
    referred to as the ``County''), all right, title, and interest of the
    United States in and to an easement that was acquired by the United
    States in 1942 for the benefit of Pine Bluff Arsenal, Arkansas, and
    encumbers the real property described in subsection (c) if the Secretary
    determines that the conveyance and subsequent use of the easement will
    not adversely impact the mission of Pine Bluff Arsenal. The conveyance
    shall include all appurtenances to the easement and any improvements
    thereon constructed by the United States.
        (b) Purpose of Conveyance.--The conveyance authorized by subsection
    (a) is for the sole purpose of permitting the County to construct,
    maintain, and operate a railroad over, upon, and across the real
    property encumbered by the easement.
        (c) Description of Property Encumbered by Easement.--The real
    property encumbered by the easement is situated in Jefferson County,
    Arkansas, consists of approximately 38.18 acres, and is described as PBR
    Tract No. 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36,
    37, 38, 38-A, and 39 and includes the real property described in a
    Warranty Deed from C.C. Neal and Pearlee Neal dated August 14, 1942. If
    the Secretary determines that an additional survey is necessary to
    better determine the legal description of the real property encumbered
    by the easement, a survey satisfactory to the Secretary shall be
    conducted.
        (d) Further Transfer, Assignments, or Permits.--Subject to
    subsection (b), the County may make such further transfer or
    assignments, grant such permits, or make such other arrangements with
    regard to the easement conveyed under subsection (a) as the County
    considers beneficial and appropriate for the interests of the County.
        (e) Payment of Costs of Conveyances.--
                (1) Payment required.--The Secretary shall require the
            County to cover costs to be incurred by the Secretary, or to
            reimburse the Secretary for costs incurred by the Secretary, to
            carry out a conveyance under subsection (a), including survey
            costs, related to the conveyance. If amounts are collected from

    [[Page 120 STAT. 2482]]

            the County in advance of the Secretary incurring the actual
            costs, and the amount collected exceeds the costs actually
            incurred by the Secretary to carry out the conveyance, the
            Secretary shall refund the excess amount to the County.
                (2) Treatment of amounts received.--Amounts received under
            paragraph (1) as reimbursement for costs incurred by the
            Secretary to carry out a conveyance under subsection (a) shall
            be credited to the fund or account that was used to cover the
            costs incurred by the Secretary in carrying out the conveyance.
            Amounts so credited shall be merged with amounts in such fund or
            account and shall be available for the same purposes, and
            subject to the same conditions and limitations, as amounts in
            such fund or account.

        (f) Additional Term and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.
    SEC. 2842. MODIFICATION OF LAND TRANSFER AUTHORITY, POTOMAC ANNEX,
                              DISTRICT OF COLUMBIA.

        Section 2831(a) of the National Defense Authorization Act for Fiscal
    Year 1997 (Public Law 104-201; 110 Stat. 2795) is amended by striking
    ``consisting of approximately 3 acres'' and inserting ``consisting of
    approximately 4 acres and containing two buildings, known as building 6
    and building 7''.
    SEC. 2843. LAND CONVEYANCE, NAVAL AIR STATION, BARBERS POINT,
                              HAWAII.

        (a) Conveyance of Property.--
    Not <<NOTE: Deadline. Contracts.>> later than September 30, 2008, the
    Secretary of the Navy shall enter into a binding agreement to convey, by
    sale, lease, or a combination thereof, to any public or private person
    or entity outside the Department of Defense certain parcels of real
    property, including any improvements thereon, consisting of
    approximately 499 acres located at the former Naval Air Station, Barbers
    Point, Oahu, Hawaii, that are subject to the Ford Island Master
    Development Agreement developed pursuant to section 2814(a)(2) of title
    10, United States Code, for the purpose of promoting the beneficial
    development of the real property.

        (b) Use of Existing Authority.--To implement subsection (a), the
    Secretary may utilize the special conveyance and lease authorities
    provided to the Secretary by subsections (b) and (c) of section 2814 of
    title 10, United States Code, for the purpose of developing or
    facilitating the development of Ford Island, Hawaii.
        (c) Description of <<NOTE: Survey.>> Property.--The exact acreage
    and legal description of real property to be conveyed under subsection
    (a) shall be determined by a survey satisfactory to the Secretary.

        (d) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with a conveyance under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.
    SEC. 2844. LAND CONVEYANCES, OMAHA, NEBRASKA.

        (a) Conveyances Authorized.--
                (1) Army conveyance.--The Secretary of the Army may convey
            to the Metropolitan Community College Area, a public community
            college located in Omaha, Nebraska (in this section referred to
            as the ``College'') all right, title, and interest of

    [[Page 120 STAT. 2483]]

            the United States in and to three parcels of real property under
            the control of the Army Reserve, including any improvements
            thereon, consisting of approximately 5.42 acres on the Fort
            Omaha campus at the College, for educational purposes.
                (2) Navy conveyance.--The Secretary of the Navy may convey
            to the College all right, title, and interest of the United
            States in and to a parcel of real property under the control of
            the Navy Reserve and Marine Corps Reserve, including any
            improvements thereon, consisting of approximately 6.57 acres on
            the Fort Omaha campus at the College, for educational purposes.

        (b) Consideration.--
                (1) In general.--As consideration for each conveyance under
            subsection (a), the College shall provide the United States,
            whether by cash payment, in-kind consideration, or a combination
            thereof, an amount that is not less than the fair market value
            of the conveyed property, as determined pursuant to an appraisal
            acceptable to the Secretary concerned.
                (2) Reduced tuition rates.--The Secretary concerned may
            accept as in-kind consideration under paragraph (1) reduced
            tuition rates for military personnel at the College.

        (c) Payment of Costs of Conveyances.--
                (1) Payment required.--The Secretary concerned shall require
            the College to cover costs to be incurred by the Secretary, or
            to reimburse the Secretary for costs incurred by the Secretary,
            to carry out a conveyance under subsection (a), including survey
            costs, related to the conveyance. If amounts are collected from
            the College in advance of the Secretary incurring the actual
            costs, and the amount collected exceeds the costs actually
            incurred by the Secretary to carry out the conveyance, the
            Secretary shall refund the excess amount to the College.
                (2) Treatment of amounts received.--Amounts received under
            paragraph (1) as reimbursement for costs incurred by the
            Secretary concerned to carry out a conveyance under subsection
            (a) shall be credited to the fund or account that was used to
            cover the costs incurred by the Secretary in carrying out the
            conveyance. Amounts so credited shall be merged with amounts in
            such fund or account and shall be available for the same
            purposes, and subject to the same conditions and limitations, as
            amounts in such fund or account.

        (d) Description <<NOTE: Surveys.>> of Property.--The exact acreage
    and legal description of the real property to be conveyed under
    subsection (a) shall be determined by surveys satisfactory to the
    Secretary concerned.

        (e) Additional Terms and Conditions.--The Secretary concerned may
    require such additional terms and conditions in connection with the
    conveyances under subsection (a) as the Secretary considers appropriate
    to protect the interests of the United States.
    SEC. 2845. LAND CONVEYANCE, HOPKINTON, NEW HAMPSHIRE.

        (a) Conveyance Authorized.--The Secretary of the Army may convey to
    the Town of Hopkinton, New Hampshire (in this section referred to as the
    ``Town''), all right, title, and interest of the United States in and to
    a parcel of real property, including any improvements thereon,
    consisting of approximately 90 acres located at a site in Hopkinton, New
    Hampshire, known as the ``Kast Hill''

    [[Page 120 STAT. 2484]]

    property for the purpose of permitting the Town to use the existing sand
    and gravel resources on the property and to ensure perpetual
    conservation of the property.
        (b) Consideration.--
                (1) In general.--As consideration for the conveyance under
            subsection (a), the Town shall, subject to paragraph (2),
            provide to the United States, whether by cash payment, in-kind
            consideration, or a combination thereof, an amount that is not
            less than the fair market value of the conveyed property, as
            determined pursuant to an appraisal acceptable to the Secretary.
                (2) Waiver of payment of consideration.--The Secretary may
            waive the requirement for consideration under paragraph (1) if
            the Secretary determines that the Town will not use the existing
            sand and gravel resources to generate revenue.

        (c) Reversionary Interest.--If the Secretary determines at any time
    that the real property conveyed under subsection (a) is not being used
    in accordance with the purpose of the conveyance specified in such
    subsection, all right, title, and interest in and to all or any portion
    of the property shall revert, at the option of the Secretary, to the
    United States, and the United States shall have the right of immediate
    entry onto the property. <<NOTE: Records.>> Any determination of the
    Secretary under this subsection shall be made on the record after an
    opportunity for a hearing.

        (d) Prohibition on Reconveyance of Land.--The Town may not reconvey
    any of the land acquired from the United States under subsection (a)
    without the prior approval of the Secretary.
        (e) Payment of Costs of Conveyance.--
                (1) Payment required.--The Secretary shall require the Town
            to cover costs to be incurred by the Secretary, or to reimburse
            the Secretary for costs incurred by the Secretary, to carry out
            the conveyance under subsection (a), including survey costs,
            costs related to environmental documentation, and other
            administrative costs related to the conveyance. If amounts are
            collected from the Town in advance of the Secretary incurring
            the actual costs, and the amount collected exceeds the costs
            actually incurred by the Secretary to carry out the conveyance,
            the Secretary shall refund the excess amount to the Town.
                (2) Treatment of amounts received.--Amounts received as
            reimbursement under paragraph (1) shall be credited to the fund
            or account that was used to cover the costs incurred by the
            Secretary in carrying out the conveyance. Amounts so credited
            shall be merged with amounts in such fund or account and shall
            be available for the same purposes, and subject to the same
            conditions and limitations, as amounts in such fund or account.

        (f) Description <<NOTE: Survey.>> of Property.--The exact acreage
    and legal description of the real property to be conveyed under
    subsection (a) shall be determined by a survey satisfactory to the
    Secretary.

        (g) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance of
    real property under subsection (a) as the Secretary considers
    appropriate to protect the interests of the United States.

    [[Page 120 STAT. 2485]]

    SEC. 2846. LAND CONVEYANCE, NORTH HILLS ARMY RESERVE CENTER,
                              ALLISON PARK, PENNSYLVANIA.

        (a) Conveyance Authorized.--The Secretary of the Army may convey to
    the North Allegheny School District (in this section referred to as the
    ``School District'') all right, title, and interest of the United States
    in and to a parcel of real property consisting of approximately 11.15
    acres and containing the North Hills Army Reserve Center in Allison
    Park, Pennsylvania, for the purpose of permitting the School District to
    use the property for educational and recreational purposes and for
    parking facilities related thereto.
        (b) Consideration.--The Secretary may waive any requirement for
    consideration in connection with the conveyance under subsection (a) if
    the Secretary determines that, were the conveyance of the property to be
    made under subchapter III of chapter 5 of title 40, United States Code,
    for the same purpose specified in subsection (a), the conveyance could
    be made without consideration.
        (c) Reversionary Interest.--If the Secretary determines at any time
    that the real property conveyed under subsection (a) is not being used
    in accordance with the purpose of the conveyance specified in such
    subsection, all right, title, and interest in and to all or any portion
    of the property shall revert, at the option of the Secretary, to the
    United States, and the United States shall have the right of immediate
    entry onto the property. <<NOTE: Records.>> Any determination of the
    Secretary under this subsection shall be made on the record after an
    opportunity for a hearing.

        (d) Payment of Costs of Conveyance.--
                (1) Payment required.--The Secretary shall require the
            School District to cover costs to be incurred by the Secretary,
            or to reimburse the Secretary for costs incurred by the
            Secretary, to carry out the conveyance under subsection (a),
            including survey costs, costs related to environmental
            documentation, and other administrative costs related to the
            conveyance. If amounts are collected from the School District in
            advance of the Secretary incurring the actual costs, and the
            amount collected exceeds the costs actually incurred by the
            Secretary to carry out the conveyance, the Secretary shall
            refund the excess amount to the School District.
                (2) Treatment of amounts received.--Amounts received as
            reimbursement under paragraph (1) shall be credited to the fund
            or account that was used to cover the costs incurred by the
            Secretary in carrying out the conveyance. Amounts so credited
            shall be merged with amounts in such fund or account, and shall
            be available for the same purposes, and subject to the same
            conditions and limitations, as amounts in such fund or account.

        (e) Description <<NOTE: Survey.>> of Property.--The exact acreage
    and legal description of the real property to be conveyed under
    subsection (a) shall be determined by a survey satisfactory to the
    Secretary.
        (f) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.

    [[Page 120 STAT. 2486]]

    SEC. 2847. TRANSFER OF JURISDICTION, FORT JACKSON, SOUTH CAROLINA.

        (a) Transfer Authorized.--The Secretary of the Army may transfer,
    without reimbursement, to the administrative jurisdiction of the
    Secretary of Veterans Affairs a parcel of real property, including any
    improvements thereon, consisting of approximately 600 acres and
    comprising a portion of Fort Jackson, South Carolina.
        (b) Use of Land.--The Secretary of Veterans Affairs shall establish
    on the real property transferred under subsection (a) a national
    cemetery under chapter 24 of title 38, United States Code.
        (c) Legal Description.--The exact acreage and legal description of
    the real property to be transferred under this section shall be
    determined by a survey satisfactory to the Secretary of the Army. The
    cost of the survey shall be borne by the Secretary of Veterans Affairs.
        (d) Additional Terms and Conditions.--The Secretary of the Army may
    require such additional terms and conditions in connection with the
    transfer under this section as the Secretary of the Army considers
    appropriate to protect the interests of the United States.
    SEC. 2848. SENSE OF CONGRESS REGARDING LAND CONVEYANCE INVOLVING
                              ARMY RESERVE CENTER, MARSHALL, TEXAS.

        It is the sense of Congress that the Secretary of the Army should
    consider the feasibility of conveying the Army Reserve Center at 1209
    Pinecrest Drive East in Marshall, Texas, to the Marshall-Harrison County
    Veterans Association for the purpose of assisting the efforts of the
    Association in erecting a veterans memorial, creating a park, and
    establishing a museum recognizing and honoring the sacrifices and
    accomplishments of veterans of the Armed Forces.
    SEC. 2849. MODIFICATIONS TO LAND CONVEYANCE AUTHORITY, ENGINEERING
                              PROVING GROUND, FORT BELVOIR, VIRGINIA.

        (a) Construction of Security Barrier.--Section 2836 of the Military
    Construction Authorization Act for Fiscal Year 2002 (division B of
    Public Law 107-107; 115 Stat. 1314), as amended by section 2846 of the
    Military Construction Authorization Act for Fiscal Year 2006 (division B
    of Public Law 109-163; 119 Stat. 3527), is further amended--
                (1) in subsection (b)(4), by striking ``$3,880,000'' and
            inserting ``$4,880,000''; and
                (2) in subsection (d)--
                        (A) in paragraph (1), by inserting after
                    ``Virginia,'' the following: ``and the construction of a
                    security barrier, as applicable,''; and
                        (B) in paragraph (2), by inserting after ``Building
                    191'' the following: ``and the construction of a
                    security barrier, as applicable''.

        (b) Authority to Enter Into Alternative Agreement for Design and
    Construction of Fairfax County Parkway Portion.--Such section 2836 is
    further amended--
                (1) in subsection (b)--
                        (A) by amending paragraph (1) to read as follows:

    [[Page 120 STAT. 2487]]

                ``(1) except as provided in subsection (f), design and
            construct, at its expense and for public benefit, the portion of
            the Fairfax County Parkway through the Engineer Proving Ground
            (in this section referred to as the `Parkway portion');''; and
                        (B) in paragraph (2), by inserting after ``C514''
                    the following: ``, RW-214 (in this section referred to
                    as `Parkway project')'';
                (2) by redesignating subsection (f) as subsection (g);
                (3) by inserting after subsection (e) the following new
            subsection:

        ``(f) Alternate Agreement for Construction of Road.--(1) The
    Secretary of the Army may, in connection with the conveyance authorized
    under subsection (a), enter into an agreement with the Commonwealth
    providing for the design and construction by the Department of the Army
    or the United States Department of Transportation of the Parkway portion
    and other portions of the Fairfax County Parkway off the Engineer
    Proving Ground that are necessary to complete the Parkway project (in
    this subsection referred to as the `alternate agreement') if the
    Secretary determines that the alternate agreement is in the best
    interests of the United States to support the permanent relocation of
    additional military and civilian personnel at Fort Belvoir pursuant to
    decisions made as part of the 2005 round of defense base closure and
    realignment under 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).
        ``(2) If the Secretary of Defense certifies that the Parkway portion
    is important to the national defense pursuant to section 210 of title
    23, United States Code, the Secretary of the Army may enter into an
    agreement with the Secretary of Transportation to carry out the
    alternate agreement under the Defense Access Road Program.
        ``(3) The Commonwealth shall pay to the Secretary of the Army the
    costs of the design and construction of the Parkway portion and any
    other portions of the Fairfax County Parkway off the Engineer Proving
    Ground designed and constructed under the alternate agreement. The
    Secretary shall apply such payment to the design and construction
    provided for in the alternate agreement.
        ``(4) Using the authorities available to the Secretary under chapter
    160 of title 10, United States Code, and funds deposited in the
    Environmental Restoration Account, Army, established by section 2703(a)
    of such title and appropriated for this purpose, the Secretary may carry
    out environmental restoration activities on real property under the
    jurisdiction of the Secretary in support of the construction of the
    Parkway portion.
        ``(5) The alternate agreement shall be subject to the following
    conditions:
                ``(A) The Commonwealth shall acquire and retain all
            necessary right, title, and interest in any real property not
            under the jurisdiction of the Secretary that is necessary for
            construction of the Parkway portion or for construction of any
            other portions of the Fairfax County Parkway off the Engineer
            Proving Ground that will be constructed under the alternate
            agreement, and shall grant to the United States all necessary
            access to and use of such property for such construction.
                ``(B) The Secretary shall receive consideration from the
            Commonwealth as required in subsections (b)(2), (b)(3), and

    [[Page 120 STAT. 2488]]

            (b)(4) and shall carry out the acceptance and disposition of
            funds in accordance with subsection (d).

        ``(6) The design of the Parkway portion under the alternate
    agreement shall be subject to the approval of the Secretary and the
    Commonwealth in accordance with the Virginia Department of
    Transportation Approved Plan, dated June 15, 2004, Project #R000-029-
    249, PE-108, C-514, RW-214. For each phase of the design and
    construction of the Parkway portion under the alternate agreement, the
    Secretary may--
                ``(A) accept funds from the Commonwealth; or
                ``(B) transfer funds received from the Commonwealth to the
            United States Department of Transportation.

        ``(7) Upon completion of the construction of the Parkway portion and
    any other portions of the Fairfax County Parkway off the Engineer
    Proving Ground required under the alternate agreement, the Secretary
    shall carry out the conveyance under subsection (a). As a condition of
    such conveyance carried out under the alternate agreement, the Secretary
    shall receive a written commitment, in a form satisfactory to the
    Secretary, that the Commonwealth agrees to accept all responsibility for
    the costs of operation and maintenance of the Parkway portion upon
    conveyance to the Commonwealth of such real property.''; and
                (4) in subsection (g), as redesignated by paragraph (2), by
            inserting ``or the alternate agreement authorized under
            subsection (f)'' after ``conveyance under subsection (a)''.
    SEC. 2850. LAND CONVEYANCE, RADFORD ARMY AMMUNITION PLANT, NEW
                              RIVER UNIT, VIRGINIA.

        (a) Conveyance Authorized.--The Secretary of the Army may convey,
    without consideration, to the Commonwealth of Virginia on behalf of the
    Virginia Department of Veterans Services (in this section referred to as
    the ``Commonwealth'') all right, title, and interest of the United
    States in and to a parcel of real property, including any improvements
    thereon, consisting of approximately 85 acres at the Radford Army
    Ammunition Plant, New River Unit, Virginia, for the purpose of
    permitting the Commonwealth to establish on the property a cemetery
    operated by the Commonwealth for veterans of the Armed Forces.
        (b) Reversionary Interest.--If the Secretary determines at any time
    that the real property conveyed under subsection (a) is not being used
    in accordance with the purpose of the conveyance specified in such
    subsection, all right, title, and interest in and to the property shall
    revert, at the option of the Secretary, to the United States, and the
    United States shall have the right of immediate entry onto the property.
    Any determination of the Secretary under this subsection shall be made
    on the record after an opportunity for a hearing.
        (c) Payment of Costs of Conveyance.--
                (1) Payment required.--The Secretary shall require the
            Commonwealth to cover costs to be incurred by the Secretary, or
            to reimburse the Secretary for costs incurred by the Secretary,
            to carry out the conveyance under subsection (a), including
            survey costs, costs related to environmental documentation, and
            other administrative costs related to the conveyance. If amounts
            are collected from the Commonwealth in advance of the Secretary
            incurring the actual costs, and the amount collected exceeds the
            costs actually incurred by the

    [[Page 120 STAT. 2489]]

            Secretary to carry out the conveyance, the Secretary shall
            refund the excess amount to the Commonwealth.
                (2) Treatment of amounts received.--Amounts received as
            reimbursement under paragraph (1) shall be credited to the fund
            or account that was used to cover the costs incurred by the
            Secretary in carrying out the conveyance. Amounts so credited
            shall be merged with amounts in such fund or account and shall
            be available for the same purposes, and subject to the same
            conditions and limitations, as amounts in such fund or account.

        (d) Description of Real Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Secretary.
        (e) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.

                           Subtitle E--Energy Security

    SEC. 2851. CONSOLIDATION AND ENHANCEMENT OF LAWS TO IMPROVE
                              DEPARTMENT OF DEFENSE ENERGY EFFICIENCY
                              AND CONSERVATION.

        (a) Creation of New Chapter.--
                (1) Reorganization of section 2865 of title 10.--Title 10,
            United States Code, is amended by inserting after chapter 172
            the following new chapter:

                         ``CHAPTER 173--ENERGY SECURITY

    ``Subchapter
    ``I. Energy Security Activities................................... 2911
    ``II. Energy-Related Procurement.................................. 2922
    ``III. General Provisions......................................... 2925

                   ``SUBCHAPTER I--ENERGY SECURITY ACTIVITIES

    ``Sec.
    `` 2911. Energy performance goals and plan for Department of Defense.
    `` 2912. Availability and use of energy cost savings.
    `` 2913. Energy savings contracts and activities.
    `` 2914. Energy conservation construction projects.
    ``2915. New construction: use of renewable forms of energy and energy
               efficient products.
    ``2916. Sale of electricity from alternate energy and cogeneration
               production facilities.
    ``2917. Development of geothermal energy on military lands.
    ``2918. Fuel sources for heating systems; prohibition on converting
               certain heating facilities.

    ``Sec. 2911. Energy performance goals and plan for Department of Defense

        ``(a) Energy Performance Goals.--(1) The Secretary of Defense shall
    submit to the congressional defense committees the energy performance
    goals for the Department of Defense regarding transportation systems,
    support systems, utilities, and infrastructure and facilities.
        ``(2) <<NOTE: Deadline.>> The energy performance goals shall be
    submitted annually not later than the date on which the President
    submits to Congress

    [[Page 120 STAT. 2490]]

    the budget for the next fiscal year under section 1105 of title 31 and
    cover that fiscal year as well as the next five, l0, and 20 years. The
    Secretary shall identify changes to the energy performance goals since
    the previous submission.
        ``(b) Energy Performance Plan.--The Secretary of Defense shall
    develop, and update as necessary, a comprehensive plan to help achieve
    the energy performance goals for the Department of Defense.
        ``(c) Special Considerations.--For the purpose of developing and
    implementing the energy performance goals and energy performance plan,
    the Secretary of Defense shall consider at a minimum the following:
                ``(1) Opportunities to reduce the current rate of
            consumption of energy.
                ``(2) Opportunities to reduce the future demand and the
            requirements for the use of energy.
                ``(3) Opportunities to implement conservation measures to
            improve the efficient use of energy.
                ``(4) Opportunities to pursue alternative energy
            initiatives, including the use of alternative fuels in military
            vehicles and equipment.
                ``(5) Cost effectiveness, cost savings, and net present
            value of alternatives.
                ``(6) The value of diversification of types and sources of
            energy used.
                ``(7) The value of economies-of-scale associated with fewer
            energy types used.
                ``(8) The value of the use of renewable energy sources.
                ``(9) The potential for an action to serve as an incentive
            for members of the armed forces and civilian personnel to reduce
            energy consumption or adopt an improved energy performance
            measure.

        ``(d) Selection of Energy Conservation Measures.--(1) For the
    purpose of implementing the energy performance plan, the Secretary of
    Defense shall provide that the selection of energy conservation
    measures, including energy efficient maintenance, shall be limited to
    those measures that--
                ``(A) are readily available;
                ``(B) demonstrate an economic return on the investment;
                ``(C) are consistent with the energy performance goals and
            energy performance plan for the Department; and
                ``(D) are supported by the special considerations specified
            in subsection (c).

        ``(2) In this subsection, the term `energy efficient maintenance'
    includes--
                ``(A) the repair of military vehicles, equipment, or
            facility and infrastructure systems, such as lighting, heating,
            or cooling equipment or systems, or industrial processes, by
            replacement with technology that--
                        ``(i) will achieve energy savings over the life-
                    cycle of the equipment or system being repaired; and
                        ``(ii) will meet the same end needs as the equipment
                    or system being repaired; and
                ``(B) improvements in an operation or maintenance process,
            such as improved training or improved controls, that result in
            energy savings.

    [[Page 120 STAT. 2491]]

    ``Sec. 2912. Availability and use of energy cost savings

        ``(a) Availability.--An amount of the funds appropriated to the
    Department of Defense for a fiscal year that is equal to the amount of
    energy cost savings realized by the Department, including financial
    benefits resulting from shared energy savings contracts entered into
    under section 2913 of this title, shall remain available for obligation
    under subsection (b) until expended, without additional authorization or
    appropriation.
        ``(b) Use.--The Secretary of Defense shall provide that the amount
    that remains available for obligation under subsection (a) and the funds
    made available under section 2916(b)(2) of this title shall be used as
    follows:
                ``(1) One-half of the amount shall be used for the
            implementation of additional energy conservation measures at
            buildings, facilities, or installations of the Department of
            Defense or related to vehicles and equipment of the Department,
            which are designated, in accordance with regulations prescribed
            by the Secretary of Defense, by the head of the department,
            agency, or instrumentality that realized the savings referred to
            in subsection (a).
                ``(2) One-half of the amount shall be used at the
            installation at which the savings were realized, as determined
            by the commanding officer of such installation consistent with
            applicable law and regulations, for--
                        ``(A) improvements to existing military family
                    housing units;
                        ``(B) any unspecified minor construction project
                    that will enhance the quality of life of personnel; or
                        ``(C) any morale, welfare, or recreation facility or
                    service.

        ``(c) Treatment of Certain Financial Incentives.--Financial
    incentives received from gas or electric utilities under section 2913 of
    this title shall be credited to an appropriation designated by the
    Secretary of Defense. Amounts so credited shall be merged with the
    appropriation to which credited and shall be available for the same
    purposes and the same period as the appropriation with which merged.
        ``(d) Congressional Notification.--The Secretary of Defense shall
    include in the budget material submitted to Congress in connection with
    the submission of the budget for a fiscal year pursuant to section 1105
    of title 31 a separate statement of the amounts available for obligation
    under this section in that fiscal year.

    ``Sec. 2913. Energy savings contracts and activities

        ``(a) Shared Energy Savings Contracts.--(1) The Secretary of Defense
    shall develop a simplified method of contracting for shared energy
    savings contract services that will accelerate the use of these
    contracts with respect to military installations and will reduce the
    administrative effort and cost on the part of the Department of Defense
    as well as the private sector.
        ``(2) In carrying out paragraph (1), the Secretary of Defense may--
                ``(A) request statements of qualifications (as prescribed by
            the Secretary of Defense), including financial and performance
            information, from firms engaged in providing shared energy
            savings contracting;

    [[Page 120 STAT. 2492]]

                ``(B) designate from the statements received, with an update
            at least annually, those firms that are presumptively qualified
            to provide shared energy savings services;
                ``(C) select at least three firms from the qualifying list
            to conduct discussions concerning a particular proposed project,
            including requesting a technical and price proposal from such
            selected firms for such project; and
                ``(D) select from such firms the most qualified firm to
            provide shared energy savings services pursuant to a contractual
            arrangement that the Secretary determines is fair and
            reasonable, taking into account the estimated value of the
            services to be rendered and the scope and nature of the project.

        ``(3) In carrying out paragraph (1), the Secretary may also provide
    for the direct negotiation, by departments, agencies, and
    instrumentalities of the Department of Defense, of contracts with shared
    energy savings contractors that have been selected competitively and
    approved by any gas or electric utility serving the department, agency,
    or instrumentality concerned.
        ``(b) Participation in Gas or Electric Utility Programs.--The
    Secretary of Defense shall permit and encourage each military
    department, Defense Agency, and other instrumentality of the Department
    of Defense to participate in programs conducted by any gas or electric
    utility for the management of energy demand or for energy conservation.
        ``(c) Acceptance of Financial Incentive, Goods, or Services.--The
    Secretary of Defense may authorize any military installation to accept
    any financial incentive, goods, or services generally available from a
    gas or electric utility, to adopt technologies and practices that the
    Secretary determines are in the interests of the United States and
    consistent with the energy performance goals for the Department of
    Defense.
        ``(d) Agreements With Gas or Electric Utilities.--(1) The Secretary
    of Defense may authorize the Secretary of a military department having
    jurisdiction over a military installation to enter into agreements with
    gas or electric utilities to design and implement cost-effective demand
    and conservation incentive programs (including energy management
    services, facilities alterations, and the installation and maintenance
    of energy saving devices and technologies by the utilities) to address
    the requirements and circumstances of the installation.
        ``(2) If an agreement under this subsection provides for a utility
    to advance financing costs for the design or implementation of a program
    referred to in that paragraph to be repaid by the United States, the
    cost of such advance may be recovered by the utility under terms no less
    favorable than those applicable to its most favored customer.
        ``(3) Subject to the availability of appropriations, repayment of
    costs advanced under paragraph (2) shall be made from funds available to
    a military department for the purchase of utility services.
        ``(4) An agreement under this subsection shall provide that title to
    any energy-saving device or technology installed at a military
    installation pursuant to the agreement vest in the United States. Such
    title may vest at such time during the term of the agreement, or upon
    expiration of the agreement, as determined to be in the best interests
    of the United States.

    [[Page 120 STAT. 2493]]

    ``Sec. 2914. Energy conservation construction projects

        ``(a) Projects Authorized.--The Secretary of Defense may carry out a
    military construction project for energy conservation, not previously
    authorized, using funds appropriated or otherwise made available for
    that purpose.
        ``(b) Congressional Notification.--When a decision is made to carry
    out a project under this section, the Secretary of Defense shall notify
    in writing the appropriate committees of Congress of that decision. The
    project may then be carried out only after the end of the 21-day period
    beginning on the date the notification is received by such committees
    or, if earlier, the end of the 14-day period beginning on the date on
    which a copy of the notification is provided in an electronic medium
    pursuant to section 480 of this title.

                   ``SUBCHAPTER II--ENERGY-RELATED PROCUREMENT

    ``Sec.
    ``2922. Liquid fuels and natural gas: contracts for storage, handling,
               or distribution.
    ``2922a. Contracts for energy or fuel for military installations.
    ``2922b. Procurement of energy systems using renewable forms of energy.
    ``2922c. Procurement of gasohol as motor vehicle fuel.
    ``2922d. Procurement of fuel derived from coal, oil shale, and tar
               sands.
    ``2922e. Acquisition of certain fuel sources: authority to waive
               contract procedures; acquisition by exchange; sales
               authority.
    ``2922f. Preference for energy efficient electric equipment.

                      ``SUBCHAPTER III--GENERAL PROVISIONS

    ``Sec.
    ``2925. Annual report.

    ``Sec. 2925. Annual report

        ``(a) Report Required.--As part of the annual submission of the
    energy performance goals for the Department of Defense under section
    2911 of this title, the Secretary of Defense shall submit a report
    containing the following:
                ``(1) A description of the progress made to achieve the
            goals of the Energy Policy Act of 2005 (Public Law 109-58) and
            the energy performance goals for the Department of Defense
            during the preceding fiscal year.
                ``(2) A description of the actions taken to implement the
            energy performance plan in effect under section 2911 of this
            title and carry out this chapter during the preceding fiscal
            year.
                ``(3) A description of the energy savings realized from such
            actions.
                ``(4) An estimate of the types and quantities of energy
            consumed by the Department of Defense and members of the armed
            forces and civilian personnel residing or working on military
            installations during the preceding fiscal year, including a
            breakdown of energy consumption by user groups and types of
            energy, energy costs, and the quantities of renewable energy
            produced or procured by the Department.
                ``(5) A description of the types and amount of financial
            incentives received under section 2913 of this title during the
            preceding fiscal year and the appropriation account or accounts
            to which the incentives were credited.

    [[Page 120 STAT. 2494]]

        ``(b) Initial Report.--In the first report required under this
    section, the Secretary of Defense shall include the following:
                ``(1) Such recommendations for changes to this chapter as
            the Secretary considers appropriate to improve energy
            performance.
                ``(2) A description of how responsibility over energy
            performance is distributed within the Department of Defense and
            a discussion on whether such responsibilities should be
            consolidated within a single entity.
                ``(3) A discussion of the manner in which the Secretary
            intends to balance the considerations specified in subsection
            (c) of section 2911 of this title in developing and implementing
            the energy performance goals and energy performance plan.
                ``(4) A discussion of the extent to which non-direct energy
            costs are considered in making research and development,
            procurement, and construction decisions.''.
                (2) Conforming repeal.--Section 2865 of title 10, United
            States Code, is repealed.

        (b) Inclusion of Additional Energy-Related Sections.--
                (1) Transfer and redesignation of chapter 159 and 169
            provisions.--Sections 2857, 2867, 2689, and 2690 of title 10,
            United States Code, are--
                        (A) transferred to chapter 173 of such title, as
                    added by subsection (a)(1);
                        (B) inserted after section 2914; and
                        (C) redesignated as sections 2915, 2916, 2917, and
                    2918, respectively.
                (2) Transfer and redesignation of chapter 141 provisions.--
            Sections 2388, 2394, 2394a, 2398, 2398a, 2404, and 2410c of such
            title are--
                        (A) transferred to chapter 173 of such title, as
                    added by subsection (a)(1);
                        (B) inserted after the table of sections of
                    subchapter II of such chapter; and
                        (C) redesignated as sections 2922, 2922a, 2922b,
                    2922c, 2922d, 2922e, and 2922f, respectively.
                (3) Conforming amendments.--Chapter 173 of such title, as
            added by subsection (a)(1), is amended--
                        (A) in section 2915 (former section 2857), as
                    transferred and redesignated by paragraph (1)--
                              (i) in subsection (a), by striking ``would be
                          practical and economically feasible'' and
                          inserting ``is consistent with the energy
                          performance goals and energy performance plan for
                          the Department of Defense developed under section
                          2911 of this title and supported by the special
                          considerations specified in subsection (c) of such
                          section''; and
                              (ii) in subsection (b), by striking ``in those
                          cases in which use of such forms of energy has the
                          potential for reduced energy costs'';
                        (B) in subsection (b)(2) of section 2916 (former
                    section 2867), as transferred and redesignated by
                    paragraph (1), by striking ``section 2865(a) of this
                    title'' and inserting ``section 2911(b) of this title'';
                        (C) in subsection (a)(1) of section 2922a (former
                    section 2394), as transferred and redesignated by
                    paragraph (2),

    [[Page 120 STAT. 2495]]

                    by striking ``section 2689 of this title'' and inserting
                    ``section 2917 of this title'';
                        (D) in section 2922b (former section 2394a), as
                    transferred and redesignated by paragraph (2)--
                              (i) in subsection (a)--
                                        (I) by striking ``possible and will
                                    be cost effective, reliable, and
                                    otherwise suited'' and inserting
                                    ``possible, suited''; and
                                        (II) by striking ``his
                                    jurisdiction'' and inserting ``the
                                    jurisdiction of the Secretary,
                                    consistent with the energy performance
                                    goals and energy performance plan for
                                    the Department of Defense developed
                                    under section 2911 of this title, and
                                    supported by the special considerations
                                    specified in subsection (c) of such
                                    section'';
                              (ii) in subsection (b)--
                                        (I) by striking ``cost effective
                                    and''; and
                                        (II) by striking ``section 2857 of
                                    this title'' and inserting ``section
                                    2915 of this title''; and
                              (iii) by striking subsection (c); and
                        (E) in subsection (a) of section 2922f (former
                    section 2410c), as transferred and redesignated by
                    paragraph (2)--
                              (i) by striking ``When cost effective, in''
                          and inserting ``In''; and
                              (ii) by striking ``procurement, as the case
                          may be.'' and inserting ``procurement, if
                          providing such a preference is consistent with the
                          energy performance goals and energy performance
                          plan for the Department of Defense developed under
                          section 2911 of this title and supported by the
                          special considerations specified in subsection (c)
                          of such section.''.
                (4) Applicability of chapter 169 definitions.--Section
            2801(c) of such title is amended by inserting ``and chapter 173
            of this title'' after ``chapter'' in the matter preceding
            paragraph (1).

        (c) Clerical Amendments.--
                (1) Reference to new chapter.--The table of chapters at the
            beginning of subtitle A of title 10, United States Code, and at
            the beginning of part IV of such subtitle, are each amended by
            inserting after the item relating to chapter 172 the following
            new item:

                                 ``173. Energy
    Security.................................................................
                                  .... 2911''.

                (2) Chapter 141.--The table of sections at the beginning of
            chapter 141 of such title is amended by striking the items
            relating to sections 2388, 2394, 2394a, 2398, 2398a, 2404, and
            2410c.
                (3) Chapter 159.--The table of sections at the beginning of
            chapter 159 of such title is amended by striking the items
            relating to sections 2689 and 2690.
                (4) Chapter 169.--The table of sections at the beginning of
            subchapter III of chapter 169 of such title is amended by
            striking the items relating to sections 2857, 2865, and 2867.

        (d) Conforming Amendment to Water Conservation Authority.--
    Subsection (b) of section 2866 of title 10, United States Code, is
    amended to read as follows:

    [[Page 120 STAT. 2496]]

        ``(b) Use of Financial Incentives and Water Cost Savings.--(1)
    Financial incentives received from utilities for management of water
    demand or water conservation under subsection (a)(2) shall be credited
    to an appropriation designated by the Secretary of Defense. Amounts so
    credited shall be merged with the appropriation to which credited and
    shall be available for the same purposes and the same period as the
    appropriation with which merged.
        ``(2) Water cost savings realized under subsection (a)(3) shall be
    used as follows:
                ``(A) One-half of the amount shall be used for water
            conservation activities at such buildings, facilities, or
            installations of the Department of Defense as may be designated
            (in accordance with regulations prescribed by the Secretary of
            Defense) by the head of the department, agency, or
            instrumentality that realized the water cost savings.
                ``(B) One-half of the amount shall be used at the
            installation at which the savings were realized, as determined
            by the commanding officer of such installation consistent with
            applicable law and regulations, for--
                        ``(i) improvements to existing military family
                    housing units;
                        ``(ii) any unspecified minor construction project
                    that will enhance the quality of life of personnel; or
                        ``(iii) any morale, welfare, or recreation facility
                    or service.

        ``(3) The Secretary of Defense shall include in the budget material
    submitted to Congress in connection with the submission of the budget
    for a fiscal year pursuant to section 1105 of title 31 a separate
    statement of the amounts available for obligation under this subsection
    in that fiscal year.''.
    SEC. 2852. DEPARTMENT OF DEFENSE GOAL REGARDING USE OF RENEWABLE
                              ENERGY TO MEET ELECTRICITY NEEDS.

        Section 2911 of title 10, United States Code, as added by section
    2851 of this Act, is amended by adding at the end the following new
    subsection:
        ``(e) Goal Regarding Use of Renewable Energy To Meet Electricity
    Needs.--It shall be the goal of the Department of Defense--
                ``(1) to produce or procure not less than 25 percent of the
            total quantity of electric energy it consumes within its
            facilities and in its activities during fiscal year 2025 and
            each fiscal year thereafter from renewable energy sources (as
            defined in section 203(b) of the Energy Policy Act of 2005 (42
            U.S.C. 15852(b))); and
                ``(2) to produce or procure electric energy from renewable
            energy sources whenever the use of such renewable energy sources
            is consistent with the energy performance goals and energy
            performance plan for the Department and supported by the special
            considerations specified in subsection (c).''.
    SEC. 2853. CONGRESSIONAL NOTIFICATION OF CANCELLATION CEILING FOR
                              DEPARTMENT OF DEFENSE ENERGY SAVINGS
                              PERFORMANCE CONTRACTS.

        Section 2913 of title 10, United States Code, as added by section
    2851 of this Act, is amended by adding at the end the following new
    subsection:

    [[Page 120 STAT. 2497]]

        ``(e) Congressional Notification of Cancellation Ceiling for Energy
    Savings Performance Contracts.--When a decision is made to award an
    energy savings performance contract that contains a clause setting forth
    a cancellation ceiling in excess of $7,000,000, the Secretary of Defense
    shall submit to the appropriate committees of Congress written
    notification of the proposed contract and of the proposed cancellation
    ceiling for the contract. The notification shall include the
    justification for the proposed cancellation ceiling. The contract may
    then be awarded only after the end of the 30-day period beginning on the
    date the notification is received by such committees or, if earlier, the
    end of the 15-day period beginning on the date on which a copy of the
    notification is provided in an electronic medium pursuant to section 480
    of this title.''.
    SEC. 2854. USE OF ENERGY EFFICIENCY PRODUCTS IN NEW CONSTRUCTION.

        (a) Use of Energy Efficient Products.--Section 2915 of title 10,
    United States Code, as transferred, redesignated, and amended by section
    2851(b) of this Act, is amended by adding at the end the following new
    subsection:
        ``(e) Use of Energy Efficiency Products in New Construction.--(1)
    The Secretary of Defense shall ensure, to the maximum extent
    practicable, that energy efficient products meeting the requirements of
    the Department of Defense are used in new facility construction by or
    for the Department carried out under chapter 169 of this title if such
    products are readily available and their use is consistent with the
    energy performance goals and energy performance plan for the Department
    developed under section 2911 of this title and supported by the special
    considerations specified in subsection (c) of such section.
        ``(2) In determining the energy efficiency of products, the
    Secretary shall consider products that--
                ``(A) meet or exceed Energy Star specifications; or
                ``(B) are listed on the Federal Energy Management Program
            Product Energy Efficiency Recommendations product list of the
            Department of Energy.''.

        (b) Clerical Amendments.--Such section is further amended--
                (1) by striking the section heading and inserting the
            following:

    ``Sec. 2915. New construction: use of renewable forms of energy and
                            energy efficient products'';

                (2) in subsection (a), by inserting ``Use of Renewable Forms
            of Energy Encouraged.--'' after ``(a)'';
                (3) in subsection (b), by inserting ``Consideration During
            Design Phase of Projects.--'' after ``(b)'';
                (4) in subsection (c), by inserting ``Determination of Cost
            Effectiveness.--'' after ``(c)''; and
                (5) in subsection (d), by inserting ``Exception to Square
            Feet and Cost Per Square Foot Limitations.--'' after ``(d)''.

    [[Page 120 STAT. 2498]]

                            Subtitle F--Other Matters

    SEC. 2861. AVAILABILITY OF RESEARCH AND TECHNICAL ASSISTANCE UNDER
                              DEFENSE ECONOMIC ADJUSTMENT PROGRAM.

        Section 2391 of title 10, United States Code, is amended by
    inserting after subsection (b) the following new subsection:
        ``(c) Research and Technical Assistance.--The Secretary of Defense
    may make grants to, or conclude cooperative agreements or enter into
    contracts with, another Federal agency, a State or local government, or
    any private entity to conduct research and provide technical assistance
    in support of activities under this section or Executive Order 12788 (57
    Fed. Reg. 2213), as amended by section 33 of Executive Order 13286 (68
    Fed. Reg. 10625) and Executive Order 13378 (70 Fed. Reg. 28413).''.
    SEC. 2862. AVAILABILITY OF COMMUNITY PLANNING ASSISTANCE RELATING
                              TO ENCROACHMENT OF CIVILIAN COMMUNITIES
                              ON MILITARY FACILITIES USED FOR TRAINING
                              BY THE ARMED FORCES.

         Section 2391(d)(1) of title 10, United States Code, is amended by
    adding at the end the following new sentence: ``For purposes of
    subsection (b)(1)(D), the term `military installation' includes a
    military facility owned and operated by any of the several States, the
    District of Columbia, the Commonwealth of Puerto Rico, American Samoa,
    Guam, or the Virgin Islands, even though the facility is not under the
    jurisdiction of the Department of Defense, if the Secretary of Defense
    determines that the military facility is subject to significant use for
    training by the armed forces.''.
    SEC. 2863. PROHIBITIONS AGAINST MAKING CERTAIN MILITARY AIRFIELDS
                              OR FACILITIES AVAILABLE FOR USE BY CIVIL
                              AIRCRAFT.

        (a) Prohibitions.--With respect to each military installation
    specified in subsection (b), the Secretary of Defense and the Secretary
    of the Navy may not enter into an agreement, or authorize any other
    person to enter into an agreement, that would--
                (1) authorize civil aircraft to regularly use an airfield or
            any other property at the installation; or
                (2) convey any real property at the installation, including
            any airfield at the installation, for the purpose of permitting
            the use of the property by civil aircraft.

        (b) Covered Installations.--The prohibitions in subsection (a) apply
    with respect to the following military installations:
                (1) Marine Corps Air Station, Camp Pendleton, California.
                (2) Marine Corps Air Station, Miramar, California.
                (3) Marine Corps Base, Camp Pendleton, California.
                (4) Naval Air Station, North Island, California.

        (c) Repeal of Existing Limited Prohibition.--Section 2894 of the
    Military Construction Authorization Act for Fiscal Year 1996 (division B
    of Public Law 104-106; 110 Stat. 592) is repealed.
    SEC. 2864. MODIFICATION OF CERTAIN TRANSPORTATION PROJECTS.

        (a) High Priority Projects.--The table in section 1702 of the Safe,
    Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for
    Users (Public Law 109-59; 119 Stat. 1256) is amended--

    [[Page 120 STAT. 2499]]

                (1) in the item designated as project 4333 (119 Stat. 1422),
            by striking ``Plan and construct, land acquisition, Detroit West
            Riverfront Greenway'' in the project description column and
            inserting ``Detroit Riverfront Conservancy, Riverfront walkway,
            greenway, and adjacent land planning, construction, and land
            acquisition from Gabriel Richard Park at the Douglas Mac Arthur
            Bridge to Riverside Park at the Ambassador Bridge, Detroit'';
            and
                (2) in the item designated as project 4651 (119 Stat. 1434),
            by striking ``Grading, paving'' and all that follows through
            ``Airport'' in the project description column and inserting
            ``Grading, paving, roads, and the transfer of rail-to-truck for
            the intermodal facility at Rickenbacker Airport, Columbus,
            Ohio''.

        (b) Transportation Improvement Project.--The table in section
    1934(c) of such Act (119 Stat. 1485) is amended in the item designated
    as project 196 (119 Stat. 1495) by striking ``Detroit Riverfront
    Conservancy'' and all that follows through ``Detroit'' in the project
    description column and inserting ``Detroit Riverfront Conservancy,
    Riverfront walkway, greenway, and adjacent land planning, construction,
    and land acquisition from Gabriel Richard Park at the Douglas Mac Arthur
    Bridge to Riverside Park at the Ambassador Bridge, Detroit''.
    SEC. 2865. 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 3043(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. 2866. FOX POINT HURRICANE BARRIER, PROVIDENCE, RHODE ISLAND.

        (a) Assumption of Responsibility for <<NOTE: Deadline.>> Barrier.--
    Not later than two years after the date of the enactment of this Act,
    the Secretary of the Army, acting through the Chief of Engineers, shall
    assume responsibility for the annual operation and maintenance of the
    Fox Point Hurricane Barrier in Providence, Rhode Island.

        (b) Identification and Conveyance of Required Structures.--The City
    of Providence, Rhode Island, in coordination with the Secretary, shall
    identify any land and structures required for the continued operation
    and maintenance, repair, replacement, rehabilitation, and structural
    integrity of the Fox Point Hurricane Barrier. The City shall convey to
    the Secretary, by quitclaim deed and without consideration, all right,
    title, and interest of the City in and to the land and structures so
    identified.
        (c) Authorization of Appropriations.--There are authorized to be
    appropriated to the Secretary such funds as are necessary for each
    fiscal year for the operation and maintenance, including repair,
    replacement, and rehabilitation, of the Fox Point Hurricane Barrier.

    [[Page 120 STAT. 2500]]

    SEC. 2867. FEDERAL FUNDING FOR FIXED GUIDEWAY PROJECTS.

        The Federal Transit Administration's Dear Colleague letter dated
    April 29, 2005 (C-05-05), which requires fixed guideway projects to
    achieve a ``medium'' cost-effectiveness rating for the Federal Transit
    Administration to recommend such projects for funding, shall not apply
    to the Northstar Corridor Commuter Rail Project in Minnesota.
    SEC. 2868. FEASIBILITY STUDY REGARDING USE OF GENERAL SERVICES
                              ADMINISTRATION PROPERTY FOR FORT
                              BELVOIR, VIRGINIA, REALIGNMENT.

        (a) Feasibility <<NOTE: Deadline. Reports.>> Study.--Not later than
    180 days after the date of the enactment of this Act, the Secretary of
    the Army shall submit to Congress a report evaluating the costs,
    benefits, feasibility, and suitability of locating support functions for
    Fort Belvoir and the Engineering Proving Grounds, Virginia, on property
    currently occupied by General Services Administration warehouses in
    Springfield, Virginia.

        (b) Consultation.--The Secretary of the Army shall carry out this
    section in consultation with the Administrator of General Services.

     DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND
                              OTHER AUTHORIZATIONS

           TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

              Subtitle A--National Security Programs Authorizations

    Sec. 3101. National Nuclear Security Administration.
    Sec. 3102. Defense environmental cleanup.
    Sec. 3103. Other defense activities.
    Sec. 3104. Defense nuclear waste disposal.

        Subtitle B--Program Authorizations, Restrictions, and Limitations

    Sec. 3111. Plan for transformation of National Nuclear Security
               Administration nuclear weapons complex.
    Sec. 3112. Extension of Facilities and Infrastructure Recapitalization
               Program.
    Sec. 3113. Utilization of contributions to Global Threat Reduction
               Initiative.
    Sec. 3114. Utilization of contributions to Second Line of Defense
               program.
    Sec. 3115. Two-year extension of authority for appointment of certain
               scientific, engineering, and technical personnel.
    Sec. 3116. National Academy of Sciences study of quantification of
               margins and uncertainty methodology for assessing and
               certifying the safety and reliability of the nuclear
               stockpile.
    Sec. 3117. Consolidation of counterintelligence programs of Department
               of Energy and National Nuclear Security Administration.
    Sec. 3118. Notice-and-wait requirement applicable to certain third-party
               financing arrangements.
    Sec. 3119. Extension of deadline for transfer of lands to Los Alamos
               County, New Mexico, and of lands in trust for the Pueblo of
               San Ildefonso.
    Sec. 3120. Limitations on availability of funds for Waste Treatment and
               Immobilization Plant.
    Sec. 3121. Report on Russian Surplus Fissile Materials Disposition
               Program.
    Sec. 3122. Limitation on availability of funds for construction of MOX
               Fuel Fabrication Facility.
    Sec. 3123. Education of future nuclear engineers.
    Sec. 3124. Technical correction related to authorization of
               appropriations for fiscal year 2006.

    [[Page 120 STAT. 2501]]

              Subtitle A--National Security Programs Authorizations

    SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

        (a) Authorization of Appropriations.--Funds are hereby authorized to
    be appropriated to the Department of Energy for fiscal year 2007 for the
    activities of the National Nuclear Security Administration in carrying
    out programs necessary for national security in the amount of
    $9,300,811,000, to be allocated as follows:
                (1) For weapons activities, $6,417,676,000.
                (2) For defense nuclear nonproliferation activities,
            $1,701,426,000.
                (3) For naval reactors, $795,133,000.
                (4) For the Office of the Administrator for Nuclear
            Security, $386,576,000.

        (b) Authorization of New Plant Projects.--From funds referred to in
    subsection (a) that are available for carrying out plant projects, the
    Secretary of Energy may carry out the following new plant projects:
                (1) For weapons activities:
                Project 07-D-140, project engineering and design, various
            locations, $4,977,000.
                Project 07-D-220, Radioactive Liquid Waste Treatment
            Facility upgrade, Los Alamos National Laboratory, Los Alamos,
            New Mexico, $14,828,000.
                 Project 07-D-253, Technical Area 1 Heating Systems
            Modernization, Sandia National Laboratories, Albuquerque, New
            Mexico, $14,500,000.
                (2) For defense nuclear nonproliferation activities:
                Project 07-SC-05, Physical Sciences Facility, Pacific
            Northwest National Laboratory, Richland, Washington, $4,220,000.
                (3) For naval reactors:
                Project 07-D-190, project engineering and design, Materials
            Research Technology Complex, Bettis Atomic Power Laboratory,
            West Mifflin, Pennsylvania, $1,485,000.
    SEC. 3102. DEFENSE ENVIRONMENTAL CLEANUP.

         Funds are hereby authorized to be appropriated to the Department of
    Energy for fiscal year 2007 for defense environmental cleanup activities
    in carrying out programs necessary for national security in the amount
    of $5,435,312,000.
    SEC. 3103. OTHER DEFENSE ACTIVITIES.

         Funds are hereby authorized to be appropriated to the Department of
    Energy for fiscal year 2007 for other defense activities in carrying out
    programs necessary for national security in the amount of $717,788,000.
    SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

         Funds are hereby authorized to be appropriated to the Department of
    Energy for fiscal year 2007 for defense nuclear waste disposal for
    payment to the Nuclear Waste Fund established in section 302(c) of the
    Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222(c)) in the amount of
    $358,080,000.

    [[Page 120 STAT. 2502]]

        Subtitle B--Program Authorizations, Restrictions, and Limitations

    SEC. 3111. PLAN FOR TRANSFORMATION OF NATIONAL NUCLEAR SECURITY
                              ADMINISTRATION NUCLEAR WEAPONS COMPLEX.

        (a) Plan Required.--Subtitle A of title XLII of the Atomic Energy
    Defense Act (division D of Public Law 107-314) is amended by inserting
    after section 4213 (50 U.S.C. 2533) the following new section:
    ``SEC. 4214. <<NOTE: 50 USC 2534.>> PLAN FOR TRANSFORMATION OF
                            NATIONAL NUCLEAR SECURITY ADMINISTRATION
                            NUCLEAR WEAPONS COMPLEX.

        ``(a) Plan Required.--The Secretary of Energy shall develop a plan
    to transform the nuclear weapons complex so as to achieve a responsive
    infrastructure by 2030. The plan shall be designed to accomplish the
    following objectives:
                ``(1) To maintain the safety, reliability, and security of
            the United States nuclear weapons stockpile.
                ``(2) To continue Stockpile Life Extension Programs that the
            Nuclear Weapons Council considers necessary.
                ``(3) To prepare to produce replacement warheads under the
            Reliable Replacement Warhead program at a rate necessary to meet
            future stockpile requirements, commencing with a first
            production unit in 2012 and achieving steady-state production
            using modern manufacturing processes by 2025.
                ``(4) To eliminate, within the nuclear weapons complex,
            duplication of production capability except to the extent
            required to ensure the safety, reliability, and security of the
            stockpile.
                ``(5) To maintain the current philosophy within the national
            security laboratories of peer review of nuclear weapons designs
            while eliminating duplication of laboratory capabilities except
            to the extent required to ensure the safety, reliability, and
            security of the stockpile.
                ``(6) To maintain the national security mission, and in
            particular the science-based Stockpile Stewardship Program, as
            the primary mission of the national security laboratories while
            optimizing the work-for-others activities of those laboratories
            to support other national security objectives in fields such as
            defense, intelligence, and homeland security.
                ``(7) To consolidate to the maximum extent practicable, and
            to provide for the ultimate disposition of, special nuclear
            material throughout the nuclear weapons complex, with the
            ultimate goal of eliminating Category I and II special nuclear
            material from the national security laboratories no later than
            March 1, 2012, so as to further reduce the footprint of the
            nuclear weapons complex, reduce security costs, and reduce
            transportation costs for special nuclear material. This
            objective does not preclude the retention of Category I and II
            special nuclear materials at a national security laboratory if
            the transformation plan required by this subsection envisions a
            pit production capability (including interim pit production) at
            a national security laboratory.

    [[Page 120 STAT. 2503]]

                ``(8) To employ a risk-based approach to ensure compliance
            with Design Basis Threat security requirements.
                ``(9) To expeditiously dismantle inactive nuclear weapons to
            reduce the size of the stockpile to the lowest level required by
            the Nuclear Weapons Council.
                ``(10) To operate the nuclear weapons complex in a more
            cost-effective manner.

        ``(b) Report.--Not later than February 1, 2007, the Secretary of
    Energy shall submit to the congressional defense committees a report on
    the transformation plan required by subsection (a). The report shall
    address each of the objectives required by subsection (c) and also
    include each of the following:
                ``(1) A comprehensive list of the capabilities, facilities,
            and project staffing that the National Nuclear Security
            Administration will need to have in place at the nuclear weapons
            complex as of 2030 to meet the requirements of the
            transformation plan.
                ``(2) A comprehensive list of the capabilities and
            facilities that the National Nuclear Security Administration
            currently has in place at the nuclear weapons complex that will
            not be needed as of 2030 to meet the requirements of the
            transformation plan.
                ``(3) A plan for implementing the transformation plan,
            including a schedule with incremental milestones.

        ``(c) Consultation.--The Secretary of Energy shall develop the
    transformation plan required by subsection (a) in consultation with the
    Secretary of Defense and the Nuclear Weapons Council.
        ``(d) Definition.--In this section, the term `national security
    laboratory' has the meaning given such term in section 3281 of the
    National Nuclear Security Administration Act (50 U.S.C. 2471).''.
        (b) Inclusion in Future-Years Nuclear Security Program.--Section
    3253 of the National Nuclear Security Administration Act (50 U.S.C.
    2453) is amended in subsection (b) by adding at the end the following
    new paragraph:
                ``(5) A statement of proposed budget authority, estimated
            expenditures, and proposed appropriations necessary to support
            the programs required to implement the plan to transform the
            nuclear weapons complex under section 4214 of the Atomic Energy
            Defense Act, together with a detailed description of how the
            funds identified for each program element specified pursuant to
            paragraph (1) in the budget for the Administration for each
            fiscal year during that five-fiscal-year period will help ensure
            that those programs are implemented. The statement shall assume
            year-to-year funding profiles that account for increases only
            for projected inflation.''.
    SEC. 3112. EXTENSION OF FACILITIES AND INFRASTRUCTURE
                              RECAPITALIZATION PROGRAM.

        Section 3114 of the National Defense Authorization Act for Fiscal
    Year 2004 (Public Law 108-136; 50 U.S.C. 2453 note), as amended by
    section 3113 of the Ronald W. Reagan National Defense Authorization Act
    for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2160), is amended--
                (1) in subsection (a)(3)(F), by striking ``2011'' and
            inserting ``2013''; and

    [[Page 120 STAT. 2504]]

                (2) in subsection (b), by striking ``2011'' and inserting
            ``2013''.
    SEC. 3113. UTILIZATION OF CONTRIBUTIONS TO GLOBAL THREAT REDUCTION
                              INITIATIVE.

        Section 3132 of the Ronald W. Reagan National Defense Authorization
    Act for Fiscal Year 2005 (Public Law 108--375; 118 Stat. 2166; 50 U.S.C.
    2569) is amended--
                (1) by redesignating subsection (f) as subsection (g); and
                (2) by adding after subsection (e) the following new
            subsection:

        ``(f) Participation by Other Governments and Organizations.--
                ``(1) In general.--The Secretary of Energy may, with the
            concurrence of the Secretary of State, enter into one or more
            agreements with any person (including a foreign government,
            international organization, or multinational entity) that the
            Secretary of Energy considers appropriate under which the person
            contributes funds for purposes of the programs described in
            paragraph (2).
                ``(2) Programs covered.--The programs described in this
            paragraph are the following international programs within the
            Global Threat Reduction Initiative:
                        ``(A) The International Radiological Threat
                    Reduction program.
                        ``(B) The Emerging Threats and Gap Materials
                    program.
                        ``(C) The Reduced Enrichment for Research and Test
                    Reactors program.
                        ``(D) The Russian Research Reactor Fuel Return
                    program.
                        ``(E) The Global Research Reactor Security program.
                        ``(F) The Kazakhstan Spent Fuel program.
                ``(3) Retention and use of amounts.--Notwithstanding section
            3302 of title 31, United States Code, the Secretary of Energy
            may retain and use amounts contributed under an agreement under
            paragraph (1) for purposes of the programs described in
            paragraph (2). Amounts so contributed shall be retained in a
            separate fund established in the Treasury for such purposes and
            shall be available for use without further appropriation and
            without fiscal year limitation.
                ``(4) Return of amounts not used within 5 years.--If an
            amount contributed under an agreement under paragraph (1) is not
            used under this subsection within 5 years after it was
            contributed, the Secretary of Energy shall return that amount to
            the person who contributed it.
                ``(5) Notice to congressional defense committees.--
            Not <<NOTE: Deadline.>> later than 30 days after the receipt of
            an amount contributed under paragraph (1), the Secretary of
            Energy shall submit to the congressional defense committees a
            notice specifying the purpose and value of the contribution and
            identifying the person who contributed it. The Secretary may not
            use the amount until 15 days after the notice is submitted.
                ``(6) Annual report.--Not later than October 31 of each
            year, the Secretary of Energy shall submit to the congressional
            defense committees a report on the receipt and use of amounts

    [[Page 120 STAT. 2505]]

            under this subsection during the preceding fiscal year. Each
            report for a fiscal year shall set forth--
                        ``(A) a statement of any amounts received under this
                    subsection, including, for each such amount, the value
                    of the contribution and the person who contributed it;
                        ``(B) a statement of any amounts used under this
                    subsection, including, for each such amount, the
                    purposes for which the amount was used; and
                        ``(C) a statement of the amounts retained but not
                    used under this subsection, including, for each such
                    amount, the purposes (if known) for which the Secretary
                    intends to use the amount.
                ``(7) Expiration.--The authority to accept, retain, and use
            contributions under this subsection expires on December 31,
            2013.''.
    SEC. 3114. <<NOTE: 50 USC 2301 note.>> UTILIZATION OF
                              CONTRIBUTIONS TO SECOND LINE OF DEFENSE
                              PROGRAM.

        (a) In General.--The Secretary of Energy may, with the concurrence
    of the Secretary of State, enter into one or more agreements with any
    person (including a foreign government, international organization, or
    multinational entity) that the Secretary of Energy considers appropriate
    under which the person contributes funds for purposes of the Second Line
    of Defense program of the National Nuclear Security Administration.
        (b) Retention and Use of Amounts.--Notwithstanding section 3302 of
    title 31, United States Code, the Secretary of Energy may retain and use
    amounts contributed under an agreement under subsection (a) for purposes
    of the Second Line of Defense program. Amounts so contributed shall be
    retained in a separate fund established in the Treasury for such
    purposes and shall be available for use without further appropriation
    and without fiscal year limitation.
        (c) Return of Amounts Not Used Within 5 Years.--If an amount
    contributed under an agreement under subsection (a) is not used under
    this section within 5 years after it was contributed, the Secretary of
    Energy shall return that amount to the person who contributed it.
        (d) Notice to Congressional
    Defense <<NOTE: Deadline.>> Committees.--Not later than 30 days after
    the receipt of an amount contributed under subsection (a), the Secretary
    of Energy shall submit to the congressional defense committees a notice
    specifying the purpose and value of the contribution and identifying the
    person who contributed it. The Secretary may not use the amount until 15
    days after the notice is submitted.

        (e) Annual Report.--Not later than October 31 of each year, the
    Secretary of Energy shall submit to the congressional defense committees
    a report on the receipt and use of amounts under this section during the
    preceding fiscal year. Each report for a fiscal year shall set forth--
                (1) a statement of any amounts received under this section,
            including, for each such amount, the value of the contribution
            and the person who contributed it;
                (2) a statement of any amounts used under this section,
            including, for each such amount, the purposes for which the
            amount was used; and

    [[Page 120 STAT. 2506]]

                (3) a statement of the amounts retained but not used under
            this section, including, for each such amount, the purposes (if
            known) for which the Secretary intends to use the amount.

        (f) Expiration.--The authority to accept, retain, and use
    contributions under this section expires on December 31, 2013.
    SEC. 3115. TWO-YEAR EXTENSION OF AUTHORITY FOR APPOINTMENT OF
                              CERTAIN SCIENTIFIC, ENGINEERING, AND
                              TECHNICAL PERSONNEL.

        Section 4601(c)(1) of the Atomic Energy Defense Act (50 U.S.C.
    2701(c)(1)) is amended by striking ``September 30, 2006'' and inserting
    ``September 30, 2008''.
    SEC. 3116. NATIONAL ACADEMY OF SCIENCES STUDY OF QUANTIFICATION OF
                              MARGINS AND UNCERTAINTY METHODOLOGY FOR
                              ASSESSING AND CERTIFYING THE SAFETY AND
                              RELIABILITY OF THE NUCLEAR STOCKPILE.

        (a) Study Required.--The Secretary of Energy shall, as soon as
    practicable and no later than 120 days after the date of the enactment
    of this Act, enter into an arrangement with the National Research
    Council of the National Academy of Sciences for the Council to carry out
    a study of the quantification of margins and uncertainty methodology
    used by the national security laboratories for assessing and certifying
    the safety and reliability of the nuclear stockpile.
        (b) Matters Included.--The study required by subsection (a) shall
    evaluate the following:
                (1) The use of the quantification of margins and uncertainty
            methodology by the national security laboratories, including
            underlying assumptions of weapons performance and the ability of
            modeling and simulation tools to predict nuclear explosive
            package characteristics.
                (2) The manner in which that methodology is used to conduct
            the annual assessments of the nuclear weapons stockpile.
                (3) How the use of that methodology compares and contrasts
            between the national security laboratories.
                (4) Whether the application of the quantification of margins
            and uncertainty used for annual assessments and certification of
            the nuclear weapons stockpile can be applied to the planned
            Reliable Replacement Warhead program so as to carry out the
            objective of that program to reduce the likelihood of the
            resumption of underground testing of nuclear weapons.

        (c) Report.--
                (1) In general.--Not later than one year after the date on
            which the arrangement required by subsection (a) is entered
            into, the National Research Council shall submit to the
            Secretary of Energy and the congressional committees specified
            in paragraph (2) a report on the study that addresses the
            matters listed in subsection (b) and any other matters
            considered by the National Research Council to be relevant to
            the use of the quantification of margins and uncertainty
            methodology in assessing the current or future nuclear weapons
            stockpile.
                (2) Specified committees.--The congressional committees
            referred to in paragraph (1) are the following:
                        (A) The Committee on Armed Services of the Senate.

    [[Page 120 STAT. 2507]]

                        (B) The Committee on Armed Services of the House of
                    Representatives.

        (d) Provision of Information.--The Secretary of Energy shall, in a
    timely manner, make available to the National Research Council all
    information that the National Research Council considers necessary to
    carry out its responsibilities under this section.
        (e) Funding.--Of the amounts made available to the Department of
    Energy pursuant to the authorization of appropriations in section 3101,
    $2,000,000 shall be available for carrying out the study required by
    this section.
    SEC. 3117. CONSOLIDATION OF COUNTERINTELLIGENCE PROGRAMS OF
                              DEPARTMENT OF ENERGY AND NATIONAL
                              NUCLEAR SECURITY ADMINISTRATION.

        (a) Transfer <<NOTE: 42 USC 7144b note.>> of Functions.--
                (1) In general.--The functions, personnel, funds, assets,
            and other resources of the Office of Defense Nuclear
            Counterintelligence of the National Nuclear Security
            Administration are transferred to the Secretary of Energy, to be
            administered (except to any extent otherwise directed by the
            Secretary) by the Director of the Office of Counterintelligence
            of the Department of Energy.
                (2) Sunset.--Effective September 30, 2010--
                        (A) the functions, personnel, funds, assets, and
                    other resources transferred by paragraph (1) are
                    transferred to the Administrator for Nuclear Security;
                        (B) subsection (e) of section 3220 of the National
                    Nuclear Security Administration Act (50 U.S.C. 2410), as
                    added by this section, is repealed; and
                        (C) section 3233 of the National Nuclear Security
                    Administration Act (50 U.S.C. 2423) is amended--
                              (i) in each of subsections (a) and (b), by
                          striking ``The Secretary of Energy shall'' and
                          inserting ``The Administrator shall''; and
                              (ii) in subsection (b), by striking ``Office
                          of Counterintelligence of the Department of
                          Energy'' and inserting ``Administration''.

        (b) NNSA Counterintelligence Office Abolished.--
                (1) In general.--Section 3232 of the National Nuclear
            Security Administration Act (50 U.S.C. 2422) is amended--
                        (A) by amending the heading to read as follows:
    ``SEC. 3232. OFFICE OF DEFENSE NUCLEAR SECURITY.''.
                        (B) by striking subsection (a) and inserting the
                    following new subsection (a):

        ``(a) Establishment.--There is within the Administration an Office
    of Defense Nuclear Security, headed by a Chief appointed by the
    Secretary of Energy. The Administrator shall recommend to the Secretary
    suitable candidates for such position.'';
                        (C) by striking subsection (b); and
                        (D) by redesignating subsection (c) as subsection
                    (b).
                (2) Conforming amendment.--The table of sections at the
            beginning of the National Nuclear Security Administration Act is
            amended by striking the item relating to section 3232 and
            inserting the following new item:

    ``Sec. 3232. Office of Defense Nuclear Security.''.

    [[Page 120 STAT. 2508]]

        (c) Counterintelligence Programs at NNSA Facilities.--Section 3233
    of the National Nuclear Security Administration Act (50 U.S.C. 2423) is
    amended--
                (1) in each of subsections (a) and (b), by striking ``The
            Administrator shall'' and inserting ``The Secretary of Energy
            shall''; and
                (2) in subsection (b), by striking ``Office of Defense
            Nuclear Counterintelligence'' and inserting ``Office of
            Counterintelligence of the Department of Energy''.

        (d) Status of NNSA Intelligence and Counterintelligence Personnel.--
    Section 3220 of the National Nuclear Security Administration Act (50
    U.S.C. 2410) is amended by adding at the end the following new
    subsection:
        ``(e) Status of Intelligence and Counterintelligence Personnel.--
    Notwithstanding the restrictions of subsections (a) and (b), each
    officer or employee of the Administration, or of a contractor of the
    Administration, who is carrying out activities related to intelligence
    or counterintelligence shall, in carrying out those activities, be
    subject to the authority, direction, and control of the Secretary of
    Energy or the Secretary's delegate.''.
        (e) NNSA Intelligence and Counterintelligence Liaison.--Section 3218
    of the National Nuclear Security Administration Act (50 U.S.C. 2408) is
    amended in subsection (b)--
                (1) by redesignating paragraph (4) as paragraph (5); and
                (2) by inserting after paragraph (3) the following new
            paragraph (4):
                ``(4) Liaison with the Department of Energy's Office of
            Intelligence and Counterintelligence.''.

        (f) Service From Which DOE Intelligence Director and
    Counterintelligence Director Appointed.--Section 215(b)(1) (42 U.S.C.
    7144b(b)(1)) and section 216(b)(1) (42 U.S.C. 7144c(b)(1)) of the
    Department of Energy Organization Act are each amended by striking
    ``which shall be a position in the Senior Executive Service'' and
    inserting ``who shall be an employee in the Senior Executive Service,
    the Senior Intelligence Service, the Senior National Intelligence
    Service, or any other Service that the Secretary, in coordination with
    the Director of National Intelligence, considers appropriate''.
        (g) Intelligence Executive Committee; Budget for Intelligence and
    Counterintelligence.--Section 214 of the Department of Energy
    Organization Act (42 U.S.C. 7144a) is amended--
                (1) by inserting ``(a)'' before ``The Secretary shall be
            responsible''; and
                (2) by adding at the end the following:

        ``(b)(1) <<NOTE: Establishment.>> There is within the Department an
    Intelligence Executive Committee. The Committee shall consist of the
    Deputy Secretary of Energy, who shall chair the Committee, and each
    Under Secretary of Energy.
                ``(2) The Committee shall be staffed by the Director of the
            Office of Intelligence and the Director of the Office of
            Counterintelligence.
                ``(3) The Secretary shall use the Committee to assist in
            developing and promulgating the counterintelligence and
            intelligence policies, requirements, and priorities of the
            Department.

        ``(c) In the budget justification materials submitted to Congress in
    support of each budget submitted by the President to Congress under
    title 31, United States Code, the amounts requested for

    [[Page 120 STAT. 2509]]

    the Department for intelligence functions and the amounts requested for
    the Department for counterintelligence functions shall each be specified
    in appropriately classified individual, dedicated program elements.
    Within the amounts requested for counterintelligence functions, the
    amounts requested for the National Nuclear Security Administration shall
    be specified separately from the amounts requested for other elements of
    the Department.''.
        (h) Report.--Not later than 1 year after the date of the enactment
    of this Act, the Inspector General of the Department of Energy shall
    submit to Congress a report on the implementation of this section and of
    the amendments required by this section. The report shall include the
    Inspector General's evaluation of that implementation.
    SEC. 3118. NOTICE-AND-WAIT REQUIREMENT APPLICABLE TO CERTAIN
                              THIRD-PARTY FINANCING ARRANGEMENTS.

        Subtitle A of title XLVIII of the Atomic Energy Defense Act (50
    U.S.C. 2781 et seq.) is amended by adding at the end the following new
    section:
    ``SEC. 4804. <<NOTE: 50 USC 2784.>>  NOTICE-AND-WAIT REQUIREMENT
                            APPLICABLE TO CERTAIN THIRD-PARTY
                            FINANCING ARRANGEMENTS.

        ``(a) Notice-and-Wait Requirement.--The Secretary of Energy may not
    enter into an arrangement described in subsection (b) until 30 days
    after the date on which the Secretary notifies the congressional defense
    committees in writing of the proposed arrangement.
        ``(b) Covered Arrangements.--
                ``(1) In general.--Except as provided in paragraph (2), an
            arrangement referred to in subsection (a) is any alternative
            financing arrangement, third-party financing arrangement,
            public-private partnership, privatization arrangement, private
            capital arrangement, or other financing arrangement that--
                        ``(A) is entered into in connection with a project
                    conducted using funds authorized to be appropriated to
                    the Department of Energy to carry out programs necessary
                    for national security; and
                        ``(B) involves a contractor or Federal agency
                    obtaining and charging to the Department of Energy as an
                    allowable cost under a contract the use of office space,
                    facilities, or other real property assets with a value
                    of at least $5,000,000.
                ``(2) Exception.--An arrangement referred to in subsection
            (a) does not include an arrangement that--
                        ``(A) involves the Department of Energy or a
                    contractor acquiring or entering into a capital lease
                    for office space, facilities, or other real property
                    assets; or
                        ``(B) is entered into in connection with a capital
                    improvement project undertaken as part of an energy
                    savings performance contract under section 801 of the
                    National Energy Conservation Policy Act (42 U.S.C.
                    8287).''.
    SEC. 3119. EXTENSION OF DEADLINE FOR TRANSFER OF LANDS TO LOS
                              ALAMOS COUNTY, NEW MEXICO, AND OF LANDS
                              IN TRUST FOR THE PUEBLO OF SAN
                              ILDEFONSO.

        Section 632 of the Departments of Commerce, Justice, and State, the
    Judiciary, and Related Agencies Appropriations Act, 1998

    [[Page 120 STAT. 2510]]

    (Public Law 105-119; 111 Stat. 2523; 42 U.S.C. 2391 note) is amended--
                (1) in subsection (d)(2), by striking ``10 years after the
            date of enactment of this Act'' and inserting ``November 26,
            2012''; and
                (2) in subsection (g)(3)(B), by striking ``the end of the
            10-year period beginning on the date of enactment of this Act''
            and inserting ``November 26, 2012''.
    SEC. 3120. LIMITATIONS ON AVAILABILITY OF FUNDS FOR WASTE
                              TREATMENT AND IMMOBILIZATION PLANT.

        (a) Limitation Relating to Earned Value Management System.--
                (1) In general.--Of the amount appropriated or otherwise
            available for defense environmental cleanup activities and
            available for the Waste Treatment and Immobilization Plant, not
            more than 90 percent of that amount may be obligated or
            expended.
                (2) Termination of <<NOTE: Certification.>> limitation.--
            Paragraph (1) does not apply after the date on which the
            Secretary of Energy certifies to the congressional defense
            committees that the Defense Contract Management Agency has
            recommended for acceptance the earned value management system
            used to track and report costs of the Waste Treatment and
            Immobilization Plant.

        (b) Limitation Relating to Seismic Criteria.--
                (1) In general.--Of the amount appropriated or otherwise
            available for defense environmental cleanup activities and
            available for the Waste Treatment and Immobilization Plant, none
            of that amount may be obligated or expended for construction, or
            for the procurement of critical equipment affected by seismic
            criteria, relating to the Pretreatment Facility and the High-
            Level Waste Facility.
                (2) Exception.--Paragraph (1) does not apply to the
            obligation or expenditure of funds for construction that is
            necessary for maintenance or for activities related to
            maintenance.
                (3) Termination of limitation.--
            Paragraph <<NOTE: Certification.>> (1) does not apply after the
            date on which the Secretary of Energy certifies to the
            congressional defense committees that the final seismic and
            ground motion criteria have been approved by the Secretary and
            that the contracting officer of the Waste Treatment and
            Immobilization Plant Project has formally directed that the
            final criteria be used for the final design of the Pretreatment
            Facility and the High-Level Waste Facility.
    SEC. 3121. REPORT ON RUSSIAN SURPLUS FISSILE MATERIALS DISPOSITION
                              PROGRAM.

        Not later than March 1, 2007, the Secretary of Energy shall submit
    to the congressional defense committees a report on the Russian Surplus
    Fissile Materials Disposition Program (in this section referred to as
    the ``Program''). The report shall include--
                (1) a description of the disposition method the Government
            of Russia has agreed to use under the Program;
                (2) a description of the assistance the United States
            Government plans to provide under the Program;
                (3) an estimate of the total cost and schedule of such
            assistance; and
                (4) an explanation of how parallelism is to be defined for
            purposes of the Program, including projected goals for the

    [[Page 120 STAT. 2511]]

            disposition of Russian weapons-grade plutonium under the 2000
            Plutonium Disposition and Management Agreement, and whether such
            parallelism can be achieved if the United States mixed-oxide
            (MOX) plutonium disposition program continues on the current
            planned schedule without further delays.
    SEC. 3122. LIMITATION ON AVAILABILITY OF FUNDS FOR CONSTRUCTION OF
                              MOX FUEL FABRICATION FACILITY.

        Of the amount appropriated under section 3101(a)(2) or otherwise
    available for defense nuclear nonproliferation activities for fiscal
    year 2007, none of that amount may be obligated for construction project
    99-D-143, the Mixed-Oxide (MOX) Fuel Fabrication Facility, until 30 days
    after the date on which the Secretary of Energy provides to the
    congressional defense committees--
                (1) an independent cost estimate for the United States
            Surplus Fissile Materials Disposition Program and facilities;
                (2) a written certification that the Department of Energy
            intends to use the MOX Fuel Fabrication Facility for United
            States plutonium disposition regardless of the future direction
            of the Russian Surplus Fissile Materials Disposition Program;
            and
                (3) a corrective action plan for addressing the issues
            raised by the Inspector General of the Department of Energy in
            the December 2005 report titled ``The Status of the Mixed Oxide
            Fuel Fabrication Facility''.
    SEC. 3123. EDUCATION OF FUTURE NUCLEAR ENGINEERS.

        (a) Findings.--Congress makes the following findings:
                (1) The Department of Defense and the Department of Energy
            depend on the specialized expertise of nuclear engineers who
            support the development and sustainment of technologies
            including naval reactors, strategic weapons, and nuclear power
            plants.
                (2) Experts estimate that over 25 percent of the
            approximately 58,000 workers in the nuclear power industry in
            the United States will be eligible to retire within 5 years,
            representing both a huge loss of institutional memory and a
            potential national security crisis.
                (3) This shortfall of workers is exacerbated by reductions
            to the University Reactor Infrastructure and Education
            Assistance program, which trains civilian nuclear scientists and
            engineers. The defense and civilian nuclear industries are
            interdependent on a limited number of educational institutions
            to produce their workforce. A reduction in nuclear scientists
            and engineers trained in the civilian sector may result in a
            further loss of qualified personnel for defense-related research
            and engineering.
                (4) The Department of Defense's successful Science, Math and
            Research for Transformation (SMART) scholarship-for-service
            program serves as a good model for a targeted scholarship or
            fellowship program designed to educate future scientists at the
            postsecondary and postgraduate levels.

        (b) Report on Education of Future Nuclear Engineers.--
                (1) Study.--The Secretary of Energy shall study the
            feasibility and merit of establishing a targeted scholarship or
            fellowship program to educate future nuclear engineers at the
            postsecondary and postgraduate levels.

    [[Page 120 STAT. 2512]]

                (2) Report <<NOTE: President.>> required.--The President
            shall submit to the congressional defense committees, at the
            same time that the budget for fiscal year 2008 is submitted
            under section 1105(a) of title 31, United States Code, a report
            on the study conducted by the Secretary of Energy under
            paragraph (1).
    SEC. 3124. TECHNICAL CORRECTION RELATED TO AUTHORIZATION OF
                              APPROPRIATIONS FOR FISCAL YEAR 2006.

        Effective <<NOTE: Effective date.>> as of January 6, 2006, and as if
    included therein as enacted, section 3101(a) of the National Defense
    Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat.
    3537) is amended by striking ``$9,196,456'' and inserting
    ``$9,196,456,000''.

              TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

    Sec. 3201. Authorization.

    SEC. 3201. AUTHORIZATION.

        There are authorized to be appropriated for fiscal year 2007,
    $22,260,000 for the operation of the Defense Nuclear Facilities Safety
    Board under chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286
    et seq.).

                    TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

    Sec. 3301. Authorized uses of National Defense Stockpile funds.
    Sec. 3302. Revisions to required receipt objectives for previously
               authorized disposals from National Defense Stockpile.

    SEC. 3301. AUTHORIZED USES OF NATIONAL DEFENSE STOCKPILE FUNDS.

        (a) Obligation of Stockpile Funds.--During fiscal year 2007, the
    National Defense Stockpile Manager may obligate up to $52,132,000 of the
    funds in the National Defense Stockpile Transaction Fund established
    under subsection (a) of section 9 of the Strategic and Critical
    Materials Stock Piling Act (50 U.S.C. 98h) for the authorized uses of
    such funds under subsection (b)(2) of such section, including the
    disposal of hazardous materials that are environmentally sensitive.
        (b) Additional Obligations.--The National Defense Stockpile Manager
    may obligate amounts in excess of the amount specified in subsection (a)
    if the National Defense Stockpile Manager notifies Congress that
    extraordinary or emergency conditions necessitate the additional
    obligations. The National Defense Stockpile Manager may make the
    additional obligations described in the notification after the end of
    the 45-day period beginning on the date on which Congress receives the
    notification.
        (c) Limitations.--The authorities provided by this section shall be
    subject to such limitations as may be provided in appropriations Acts.

    [[Page 120 STAT. 2513]]

    SEC. 3302. REVISIONS TO REQUIRED RECEIPT OBJECTIVES FOR PREVIOUSLY
                              AUTHORIZED DISPOSALS FROM NATIONAL
                              DEFENSE STOCKPILE.

        (a) Fiscal Year 1999 Disposal Authority.--Section 3303(a) of the
    Strom Thurmond National Defense Authorization Act for Fiscal Year 1999
    (Public Law 105-261; 50 U.S.C. 98d note), as amended by section 3302 of
    the Ronald W. Reagan National Defense Authorization Act for Year 2005
    (Public Law 108-375; 118 Stat. 2193) and section 3302 of the National
    Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119
    Stat. 3545), is amended--
                (1) by striking ``and'' at the end of paragraph (5); and
                (2) by striking the period at the end of paragraph (6) and
            inserting ``; and''; and
                (3) by adding at the end the following new paragraph:
                ``(7) $1,016,000,000 by the end of fiscal year 2014.''.

        (b) Fiscal Year 1998 Disposal Authority.--Section 3305(a)(5) of the
    National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
    85; 50 U.S.C. 98d note), as amended by section 3305 of the National
    Defense Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115
    Stat. 1390), is amended by striking ``2006'' and inserting ``2008''.
        (c) Fiscal Year 1997 Disposal Authority.--Section 3303 of the
    National Defense Authorization Act for Fiscal Year 1997 (Public Law 104-
    201; 50 U.S.C. 98d note), as amended by section 3402(f) of the National
    Defense Authorization Act for Year 2000 (Public Law 106-65; 113 Stat.
    973) and section 3304(c) of the National Defense Authorization Act for
    2002 (Public Law 107-107; 115 Stat. 1390), is amended--
                (1) in subsection (a), by striking paragraph (2) and
            inserting the following new paragraph (2):
                ``(2) $720,000,000 during the 12-fiscal year period ending
            September 30, 2008.''; and
                (2) in subsection (b)(2), by striking ``the 10-fiscal year
            period'' and inserting ``the period''.

                      TITLE XXXIV--NAVAL PETROLEUM RESERVES

    Sec. 3401. Authorization of appropriations.

    SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

        (a) Amount.--There are hereby authorized to be appropriated to the
    Secretary of Energy $18,810,000 for fiscal year 2007 for the purpose of
    carrying out activities under chapter 641 of title 10, United States
    Code, relating to the naval petroleum reserves.
        (b) Period of Availability.--Funds appropriated pursuant to the
    authorization of appropriations in subsection (a) shall remain available
    until expended.

                       TITLE XXXV--MARITIME ADMINISTRATION

    Sec. 3501. Authorization of appropriations for fiscal year 2007.
    Sec. 3502. Amendments relating to the Maritime Security Fleet program.

    [[Page 120 STAT. 2514]]

    Sec. 3503. Applicability to certain Maritime Administration vessels of
               limitations on overhaul, repair, and maintenance of vessels
               in foreign shipyards.
    Sec. 3504. Vessel transfer authority.
    Sec. 3505. United States Merchant Marine Academy graduates: service
               requirements.
    Sec. 3506. United States Merchant Marine Academy graduates: service
               obligation performance reporting requirement.
    Sec. 3507. Temporary authority to transfer obsolete combatant vessels to
               Navy for disposal.
    Sec. 3508. Qualifying Reserve duty for receipt of student incentive
               payments.
    Sec. 3509. Large passenger ship crew requirements.
    Sec. 3510. Miscellaneous Maritime Administration provisions.

    SEC. 3501. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 2007.

        Funds are hereby authorized to be appropriated for fiscal year 2007,
    to be available without fiscal year limitation if so provided in
    appropriations Acts, for the use of the Department of Transportation for
    the Maritime Administration as follows:
                (1) For expenses necessary for operations and training
            activities, $116,442,000.
                (2) For paying reimbursement under section 3517 of the
            Maritime Security Act of 2003 (46 U.S.C. 53101 note),
            $19,500,000.
                (3) For assistance to small shipyards and maritime
            communities under section 3506 of the National Defense
            Authorization Act for Fiscal Year 2006 (46 U.S.C. App. 1249),
            $15,000,000.
                (4) For expenses to dispose of obsolete vessels in the
            National Defense Reserve Fleet, including provision of
            assistance under section 7 of Public Law 92-402, $25,740,000.
                (5) For administrative expenses related to the
            implementation of the loan guarantee program under title XI of
            the Merchant Marine Act, 1936 (46 U.S.C. App. 1271 et seq.),
            administrative expenses related implementation of the
            reimbursement program under section 3517 of the Maritime
            Security Act of 2003 (46 U.S.C. 53101 note), and administrative
            expenses related to the implementation of the small shipyards
            and maritime communities assistance program under section 3506
            of the National Defense Authorization Act for Fiscal Year 2006
            (46 U.S.C. App. 1249), $3,317,000.
    SEC. 3502. AMENDMENTS RELATING TO THE MARITIME SECURITY FLEET
                              PROGRAM.

        (a) Limitation on Transfer of Operating Agreements.--Section
    53105(e) of title 46, United States Code, is amended--
                (1) by inserting ``(1) In general.--'' before the first
            sentence;
                (2) by moving paragraph (1) (as designated by the amendment
            made by paragraph (1) of this subsection) so as to appear
            immediately below the heading for such subsection, and 2 ems to
            the right; and
                (3) by adding at the end the following:
                ``(2) Limitation.--The Secretary of Defense may not approve
            under paragraph (1) transfer of an operating agreement to a
            person that is not a citizen of the United States under section
            2 of the Shipping Act, 1916 (46 U.S.C. App. 802), unless the
            Secretary of Defense determines that there is no person who is a
            citizen under such section and is interested

    [[Page 120 STAT. 2515]]

            in obtaining the operating agreement for a vessel that is
            otherwise eligible to be included in the Fleet under section
            53102(b) and meets the requirements of the Department of
            Defense.''.

        (b) Maritime Security Fleet Program Tank Vessels.--
                (1) In general.--Section 53103(c)(4) of title 46, United
            States Code, is amended--
                        (A) in subparagraph (A)(i) by striking ``(i)'' and
                    inserting ``(i)(I)'';
                        (B) in subparagraph (A) by redesignating clause (ii)
                    as subclause (II) of clause (i);
                        (C) in subparagraph (A)(i)(II), as so redesignated,
                    by striking ``53102(b).'' and inserting ``53102(b);
                    or'';
                        (D) by inserting after subparagraph (A)(i)(II), as
                    so redesignated, the following:
                        ``(ii)(I) <<NOTE: Deadline.>> not later than 9
                    months after the first date amounts are available to
                    carry out this chapter, the operator of the existing
                    tank vessel enters into an agreement to charter one or
                    more tank vessels to be built in the United States and
                    operated as a documented vessel or documented vessels;
                        ``(II) the combined tonnage of the vessels required
                    to be chartered under subclause (I) is equal to or
                    greater than the tonnage of the existing tank vessel
                    subject to an operating agreement;
                        ``(III) <<NOTE: Contracts.>> the operator enters
                    into an agreement with the Secretary that is
                    substantially the same as an Emergency Preparedness
                    Agreement under section 53107 of this title, under which
                    the operator shall make available commercial
                    transportation resources as provided in that section;
                        ``(IV) if the person that is the owner or operator
                    of the existing tank vessel owns or operates more than
                    one existing tank vessel subject to an operating
                    agreement, the combined tonnage of those vessels
                    required to be chartered under subclause (I) by that
                    person is equal to or greater than the combined tonnage
                    of all such existing tank vessels owned or operated by
                    such person that are subject to operating agreements.'';
                        (E) in subparagraph (B) by inserting ``with respect
                    to which a binding contract is entered into under
                    subparagraph (A)(i)'' after ``existing tank vessel'';
                    and
                        (F) by adding at the end the following:
                ``(C) For purpose of subparagraph (A)(ii), tonnage shall be
            measured under section 14502 of this title, or an alternate
            tonnage measured under section 14302 of this title as prescribed
            by the Secretary under section 14104 of this title.
                ``(D) No payment under this chapter may be made for an
            existing tank vessel with respect to which an agreement is
            entered into under subparagraph (A)(ii) for any period
            occurring--
                        ``(i) after the date that is 5 years after the first
                    date that amounts became available to carry out this
                    chapter, if the vessel or vessels required to be
                    chartered under subparagraph (A)(ii) have not been
                    delivered; or
                        ``(ii) after delivery of the vessel or vessels
                    required to be chartered under such subparagraph, if any
                    of such vessels is not chartered by the operator of the
                    existing tank vessel.''.

    [[Page 120 STAT. 2516]]

                (2) Assistance authority.--Section 3543(a) of the National
            Defense Authorization Act for Fiscal Year 2004 (46 U.S.C. 53101
            note) is amended by striking ``shall, to the extent of the
            availability of appropriations,'' and inserting ``may''.

        (c) Priority in Allocation of Amounts Available for Annual
    Payments.--Section 53106 of title 46, United States Code, is amended by
    adding at the end the following:
        ``(f) Priority in Allocation of Available Amounts.--If the amount
    available for a fiscal year for making payments under operating
    agreements under this chapter is not sufficient to pay the full amount
    authorized under each agreement pursuant to this section for such fiscal
    year, the amount available shall be allocated among such agreements in a
    manner that gives priority to payments for vessels that are subject to
    agreements under section 3517 of the Maritime Security Act of 2003 (46
    U.S.C. 53101 note).''.
    SEC. 3503. APPLICABILITY TO CERTAIN MARITIME ADMINISTRATION
                              VESSELS OF LIMITATIONS ON OVERHAUL,
                              REPAIR, AND MAINTENANCE OF VESSELS IN
                              FOREIGN SHIPYARDS.

        Section 11 of the Merchant Ship Sales Act of 1946 (50 U.S.C. App.
    1744) is amended by inserting after subsection (c) the following:
        ``(d) Applicability of Limitations on Overhaul, Repair, and
    Maintenance in Foreign Shipyards.--
                ``(1) Application of limitation.--The provisions of section
            7310 of title 10, United States Code, shall apply to vessels
            specified in subsection (b), and to the Secretary of
            Transportation with respect to those vessels, in the same manner
            as those provisions apply to vessels specified in subsection (b)
            of such section, and to the Secretary of the Navy, respectively.
                ``(2) Covered vessels.--Vessels specified in this paragraph
            are vessels maintained by the Secretary of Transportation in
            support of the Department of Defense, including any vessel
            assigned by the Secretary of Transportation to the Ready Reserve
            Force that is owned by the United States.''.
    SEC. 3504. <<NOTE: 49 USC 301 note.>> VESSEL TRANSFER AUTHORITY.

        The Secretary of Transportation may transfer or otherwise make
    available without reimbursement to any other department a vessel under
    the jurisdiction of the Department of Transportation, upon request by
    the Secretary of the department that receives the vessel.
    SEC. 3505. UNITED STATES MERCHANT MARINE ACADEMY GRADUATES:
                              SERVICE REQUIREMENTS.

        (a) Alternate Service.--Section 1303(e) of the Merchant Marine Act,
    1936 (46 U.S.C. App. 1295b(e)) <<NOTE: 46 USC 51306.>> is amended by
    adding at the end the following:

        ``(6)(A) An individual who for the 5-year period following
    graduation from the Academy, serves as a commissioned officer on active
    duty in an armed force of the United States or as a commissioned officer
    of the National Oceanic and Atmospheric Administration or the Public
    Health Service shall be excused from the requirements of subparagraphs
    (C), (D), and (E) of paragraph (1).
        ``(B) The Secretary may modify or waive any of the terms and
    conditions set forth in paragraph (1) through the imposition of
    alternative service requirements.''.

    [[Page 120 STAT. 2517]]

        (b) Application.--Paragraph <<NOTE: 46 USC 51306 note.>> (6) of
    section 1303(e) of the Merchant Marine Act, 1936 (46 U.S.C. App.
    1295b(e)), as added by this section, applies only to an individual who
    enrolls as a cadet at the United States Merchant Marine Academy, and
    signs an agreement under paragraph (1) of that section, after the date
    of the enactment of this Act.
    SEC. 3506. UNITED STATES MERCHANT MARINE ACADEMY GRADUATES:
                              SERVICE OBLIGATION PERFORMANCE REPORTING
                              REQUIREMENT.

        (a) In General.--Section 1303(e) of the Merchant Marine Act, 1936
    (46 U.S.C. App. 1295b(e)) <<NOTE: 46 USC 51306.>> is further amended by
    adding at the end the following:

        ``(7)(A) Subject to any otherwise applicable restrictions on
    disclosure in section 552a of title 5, United States Code, the Secretary
    of Defense, the Secretary of the department in which the Coast Guard is
    operating, the Administrator of the National Oceanic and Atmospheric
    Administration, and the Surgeon General of the Public Health Service--
                ``(i) shall report the status of obligated service of an
            individual graduate of the Academy upon request of the
            Secretary; and
                ``(ii) may, in their discretion, notify the Secretary of any
            failure of the graduate to perform the graduate's duties, either
            on active duty or in the Ready Reserve component of their
            respective service, or as a commissioned officer of the National
            Oceanic and Atmospheric Administration or the Public Health
            Service, respectively.

        ``(B) A report or notice under subparagraph (A) shall identify any
    graduate determined to have failed to comply with service obligation
    requirements and provide all required information as to why such
    graduate failed to comply.
        ``(C) Upon receipt of such a report or notice, such graduate may be
    considered to be in default of the graduate's service obligations by the
    Secretary, and subject to all remedies the Secretary may have with
    respect to such a default.''.
        (b) Application.--The <<NOTE: 46 USC 51306 note.>> amendment made by
    this section does not apply with respect to an agreement entered into
    under section 1303(e) of the Merchant Marine Act, 1936 (46 U.S.C.
    1295b(e)) before the date of the enactment of this Act.
    SEC. 3507. TEMPORARY AUTHORITY TO TRANSFER OBSOLETE COMBATANT
                              VESSELS TO NAVY FOR DISPOSAL.

        The Secretary of Transportation shall, subject to the availability
    of appropriations and consistent with section 1535 of title 31, United
    States Code, popularly known as the Economy Act, transfer to the
    Secretary of the Navy during fiscal year 2007 for disposal by the Navy,
    no fewer than 3 combatant vessels in the nonretention fleet of the
    Maritime Administration that are acceptable to the Secretary of the
    Navy.
    SEC. 3508. QUALIFYING RESERVE DUTY FOR RECEIPT OF STUDENT
                              INCENTIVE PAYMENTS.

        Section 1304(g)(2) of title XIII of the Merchant Marine Act, 1936
    (46 U.S.C. App. 1295c(g)(2)) <<NOTE: 46 USC 51509.>> is amended to read
    as follows:

        ``(2) Each agreement entered into under paragraph (1) shall require
    the individual to accept enlisted reserve status in the United States
    Naval Reserve (including the Merchant Marine Reserve,

    [[Page 120 STAT. 2518]]

    United States Naval Reserve) or the United States Coast Guard Reserve
    before receiving any student incentive payments under this
    subsection.''.
    SEC. 3509. LARGE PASSENGER SHIP CREW REQUIREMENTS.

         Section 8103 of title 46, United States Code, is amended by adding
    at the end the following:
        ``(k) Crew Requirements for Large Passenger Vessels.--
                ``(1) Citizenship and nationality.--Each unlicensed seaman
            on a large passenger vessel shall be--
                        ``(A) a citizen of the United States;
                        ``(B) an alien lawfully admitted to the United
                    States for permanent residence;
                        ``(C) an alien allowed to be employed in the United
                    States under the Immigration and Nationality Act (8
                    U.S.C. 1101 et seq.), including an alien crewman
                    described in section 101(a)(15)(D)(i) of that Act (8
                    U.S.C. 1101(a)(15)(D)(i)), who meets the requirements of
                    paragraph (3)(A) of this subsection; or
                        ``(D) a foreign national who is enrolled in the
                    United States Merchant Marine Academy.
                ``(2) Percentage limitation for alien seamen.--Not more than
            25 percent of the unlicensed seamen on a vessel described in
            paragraph (1) of this subsection may be aliens referred to in
            subparagraph (B) or (C) of that paragraph.
                ``(3) Special rules for certain unlicensed seamen.--
                        ``(A) Qualifications.--An unlicensed seaman
                    described in paragraph (1)(C) of this subsection--
                              ``(i) shall have been employed, for a period
                          of not less than 1 year, on a passenger vessel
                          under the same common ownership or control as the
                          vessel described in paragraph (1) of this
                          subsection, as certified by the owner or managing
                          operator of such vessel to the Secretary;
                              ``(ii) shall have no record of material
                          disciplinary actions during such employment, as
                          verified in writing by the owner or managing
                          operator of such vessel to the Secretary;
                              ``(iii) shall have successfully completed a
                          United States Government security check of the
                          relevant domestic and international databases, as
                          appropriate, or any other national security-
                          related information or database;
                              ``(iv) shall have successfully undergone an
                          employer background check--
                                        ``(I) for which the owner or
                                    managing operator provides a signed
                                    report to the Secretary that describes
                                    the background checks undertaken that
                                    are reasonably and legally available to
                                    the owner or managing operator including
                                    personnel file information obtained from
                                    such seaman and from databases available
                                    to the public with respect to the
                                    seaman;
                                        ``(II) that consisted of a search of
                                    all information reasonably available to
                                    the owner or managing operator in the
                                    seaman's country of citizenship

    [[Page 120 STAT. 2519]]

                                    and any other country in which the
                                    seaman receives employment referrals, or
                                    resides;
                                        ``(III) that is kept on the vessel
                                    and available for inspection by the
                                    Secretary; and
                                        ``(IV) the information derived from
                                    which is made available to the Secretary
                                    upon request; and
                              ``(v) may not be a citizen or temporary or
                          permanent resident of a country designated by the
                          United States as a sponsor of terrorism or any
                          other country that the Secretary, in consultation
                          with the Secretary of State and the heads of other
                          appropriate United States agencies, determines to
                          be a security threat to the United States.
                        ``(B) Restrictions.--An unlicensed seaman described
                    in paragraph (1)(C) of this subsection--
                              ``(i) may be employed only in the steward's
                          department of the vessel; and
                              ``(ii) may not perform watchstanding,
                          automated engine room duty watch, or vessel
                          navigation functions.
                        ``(C) Status, documentation, and employment.--An
                    unlicensed seaman described in subparagraph (C) or (D)
                    of paragraph (1) of this subsection--
                              ``(i) is deemed to meet the nationality
                          requirements necessary to qualify for a merchant
                          mariners document notwithstanding the requirements
                          of part 12 of title 46, Code of Federal
                          Regulations;
                              ``(ii) is deemed to meet the proof-of-identity
                          requirements necessary to qualify for a merchant
                          mariners document, as prescribed under regulations
                          promulgated by the Secretary, if the seaman
                          possesses--
                                        ``(I) an unexpired passport issued
                                    by the government of the country of
                                    which the seaman is a citizen or
                                    subject; and
                                        ``(II) an unexpired visa issued to
                                    the seaman, as described in paragraph
                                    (1)(C);
                              ``(iii) shall, if eligible, be issued a
                          merchant mariners document with an appropriate
                          annotation reflecting the restrictions of
                          subparagraph (B) of this paragraph; and
                              ``(iv) may be employed for a period of service
                          on board not to exceed 36 months in the aggregate
                          as a nonimmigrant crewman described in section
                          101(a)(15)(D)(i) of the Immigration and
                          Nationality Act (8 U.S.C. 1101(a)(15)(D)(i)) on
                          vessels engaged in domestic voyages
                          notwithstanding the departure requirements and
                          time limitations of such section and the
                          regulations and rules promulgated thereunder.
                ``(4) Merchant mariner's document requirements not
            affected.--This subsection shall not be construed to affect any
            requirement under Federal law that an individual must hold a
            merchant mariner's document.
                ``(5) Definitions.--In this subsection:
                        ``(A) Steward's department.--The term `steward's
                    department' means the department that includes
                    entertainment personnel and all service personnel,
                    including wait staff, housekeeping staff, and galley
                    workers, as defined

    [[Page 120 STAT. 2520]]

                    in the vessel security plan approved by the Secretary
                    pursuant to section 70103(c) of this title.
                        ``(B) Large passenger vessel.--The term `large
                    passenger vessel' means a vessel of more than 70,000
                    gross tons, as measured under section 14302 of this
                    title, with capacity for at least 2,000 passengers and
                    documented with a coastwise endorsement under chapter
                    121 of this title.''.
    SEC. 3510. MISCELLANEOUS MARITIME ADMINISTRATION PROVISIONS.

        (a) Technical Correction Regarding War Risk Insurance for Merchant
    Marine Vessels.--
                (1) In general.--Section 1208(a) of the Merchant Marine Act,
            1936 (46 U.S.C. App. 1288(a)) <<NOTE: 46 USC 53909.>> is
            amended--
                        (A) by striking ``Upon the request of the Secretary
                    of Transportation, the Secretary of the Treasury may
                    invest or reinvest all or any part of the fund in
                    securities of the United States or in securities
                    guaranteed as to principal and interest by the United
                    States.''; and
                        (B) by inserting after ``to the credit of such
                    fund.'' the following: ``Payments of return premiums,
                    losses, settlements, judgments, and all liabilities
                    incurred by the United States under this title shall be
                    made from such fund through the Fiscal Service of the
                    Department of the Treasury.''.
                (2) Effective date.--The <<NOTE: 46 USC 53909
            note.>> amendments made by paragraph (1) shall be effective as
            if enacted by section 3502 of the Ronald W. Reagan National
            Defense Authorization Act for Fiscal Year 2005 (118 Stat. 2195).

        (b) Right to Use Maritime Administration Decoration.--Section 8 of
    the Merchant Marine Decorations and Medals Act (46 U.S.C. App.
    2007) <<NOTE: 46 USC 51908.>> is amended by inserting ``or the Secretary
    of Transportation,'' after ``Act,''.

        (c) Intermodal Centers.--
                (1) In general.--Notwithstanding section 5309(m)(6)(B) of
            title 49, United States Code, half of the amounts appropriated
            or made available under subsections (b) and (c) of section 5338
            of title 49, United States Code, for capital projects under
            section 5309(m)(6)(B) of that title for fiscal years 2006
            through 2009 shall be made available and used, in accordance
            with section 9008(a) of Public Law 109-59, for an intermodal or
            marine facility comprising a component of the Hawaii Port
            Infrastructure Expansion Program.
                (2) Supplementary funding.--Any amount made available under
            paragraph (1) shall be in addition to any amounts authorized to
            be appropriated under subsections (b) and (c) of section 9008 of
            Public Law 109-59.

        (d) Technical Correction.--
                (1) Correction.--Section 3509 of the National Defense
            Authorization Act for Fiscal Year 2006 (119 Stat.
            3557) <<NOTE: 46 USC 51701.>> is amended by striking ``Maritime
            Education and Training Act of 1980'' and inserting ``Merchant
            Marine Act, 1936''.

    [[Page 120 STAT. 2521]]

                (2) Effective date.--This subsection shall be effective
            immediately after section 3509 of the National Defense
            Authorization Act for Fiscal Year 2006 (119 Stat. 3557) takes
            effect.

        Approved October 17, 2006.

    LEGISLATIVE HISTORY--H.R. 5122 (S. 2766) (S. 2767):
    ---------------------------------------------------------------------------

    HOUSE REPORTS: Nos. 109-452 (Comm. on Armed Services and 109-702
    (Comm. of Conference).
    SENATE REPORTS: No. 109-254 accompanying S. 2766 (Comm. on Armed
    Services).
    CONGRESSIONAL RECORD, Vol. 152 (2006):
                May 10, 11, considered and passed House.
                June 22, considered and passed Senate, amended, in lieu of
                    S. 2766.
                Sept. 29, House and Senate agreed to conference report.
    WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 42 (2006):
                Oct. 17, Presidential statement.

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