```

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

                                  <all>
```