PUBLIC LAW 109–364—OCT. 17, 2006 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.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress 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

John Warner

National Defense

Authorization

Act for Fiscal

Year 2007.

Oct. 17, 2006

[H.R. 5122]

120 STAT. 2084 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2086 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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).

120 STAT. 2088 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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 LowDensity, High-Demand Airborne Assets.

120 STAT. 2090 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2092 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2094 PUBLIC LAW 109–364—OCT. 17, 2006

Sec. 922. Comptroller General review of cost-benefit analysis of off-site versus onsite 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.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2096 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2098 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2100 PUBLIC LAW 109–364—OCT. 17, 2006

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. 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.

10 USC 101 note.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2102 PUBLIC LAW 109–364—OCT. 17, 2006

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

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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 (WINT) 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:

Reports.

120 STAT. 2104 PUBLIC LAW 109–364—OCT. 17, 2006

(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.—

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2106 PUBLIC LAW 109–364—OCT. 17, 2006

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)).

PUBLIC LAW 109–364—OCT. 17, 2006 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 AntonioVerDate 14-DEC-2004 14:10 Nov 15, 2006 Jkt 059139 PO 00364 Frm 00025 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL364.109 APPS06 PsN: PUBL364
120 STAT. 2108 PUBLIC LAW 109–364—OCT. 17, 2006

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).

PUBLIC LAW 109–364—OCT. 17, 2006 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. 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.

10 USC 7291

note.

120 STAT. 2110 PUBLIC LAW 109–364—OCT. 17, 2006

(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. QUALITY CONTROL IN PROCUREMENT OF SHIP CRITICAL

SAFETY ITEMS AND RELATED SERVICES.

(a) QUALITY CONTROL POLICY.—The Secretary of Defense shall

prescribe in regulations a quality control policy for the procurement

of the following:

(1) Ship critical safety items.

(2) Modifications, repair, and overhaul of ship critical safety

items.

(b) ELEMENTS.—The policy required under subsection (a) shall

include requirements as follows:

(1) That the head of the design control activity for ship

critical safety items establish processes to identify and manage

the procurement, modification, repair, and overhaul of such

items.

(2) That the head of the contracting activity for a ship

critical safety item enter into a contract for the procurement,

modification, repair, or overhaul of such item only with a source

on a qualified manufacturers list or a source approved by

the design control activity in accordance with section 2319

of title 10, United States Code (as amended by subsection

(d)).

(3) That the ship critical safety items delivered, and the

services performed with respect to such items, meet all technical

and quality requirements specified by the design control

activity.

(c) DEFINITIONS.—In this section, the terms ‘‘ship critical safety

item’’ and ‘‘design control activity’’ have the meanings given such

terms in subsection (g) of 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);

Regulations.

10 USC 2302

note.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2112 PUBLIC LAW 109–364—OCT. 17, 2006

(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) 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.

Effective date.

PUBLIC LAW 109–364—OCT. 17, 2006 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 CON- TRACTS.—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

120 STAT. 2114 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2116 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2118 PUBLIC LAW 109–364—OCT. 17, 2006

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-presentvalue 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

PUBLIC LAW 109–364—OCT. 17, 2006 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 ‘‘lifecycle 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

120 STAT. 2120 PUBLIC LAW 109–364—OCT. 17, 2006

(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.’’.

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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

Procedures.

120 STAT. 2122 PUBLIC LAW 109–364—OCT. 17, 2006

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 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

Procedures.

Applicability.

PUBLIC LAW 109–364—OCT. 17, 2006 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 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

Deadline.

120 STAT. 2124 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2126 PUBLIC LAW 109–364—OCT. 17, 2006

goals of the military departments and the Defense Agencies; and

‘‘(2) 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. 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.

10 USC 2358

note.

Reports.

Classified

information.

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2128 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2130 PUBLIC LAW 109–364—OCT. 17, 2006

(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. 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 mediumrange 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) 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.’’.

Deadline.

10 USC 2431

note.

PUBLIC LAW 109–364—OCT. 17, 2006 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:

120 STAT. 2132 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘(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) 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

10 USC 139 note.

PUBLIC LAW 109–364—OCT. 17, 2006 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;’’.

120 STAT. 2134 PUBLIC LAW 109–364—OCT. 17, 2006

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) 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.

Contracts.

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2136 PUBLIC LAW 109–364—OCT. 17, 2006

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 Com- missary, $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.

PUBLIC LAW 109–364—OCT. 17, 2006 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 CounterDrug 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).’’.

120 STAT. 2138 PUBLIC LAW 109–364—OCT. 17, 2006

SEC. 313. 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

Deadlines.

10 USC 2710

note.

PUBLIC LAW 109–364—OCT. 17, 2006 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. 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.—

10 USC 2710

note.

120 STAT. 2140 PUBLIC LAW 109–364—OCT. 17, 2006

(1) IDENTIFICATION OF HAZARDS.—The Secretary of Defense

shall provide available information to the Secretary of Commerce to assist the National Oceanic and Atmospheric Administration in preparing nautical charts and other navigational

materials for coastal waters that identify known or potential

hazards posed by disposed military munitions to private activities, including commercial shipping and fishing operations.

(2) CONTINUATION OF INFORMATION ACTIVITIES.—The Secretary of Defense shall continue activities to inform potentially

affected users of the ocean environment, particularly fishing

operations, of the possible hazards from contact with disposed

military munitions and the proper methods to mitigate such

hazards.

(c) RESEARCH.— (1) IN GENERAL.—The Secretary of Defense shall continue

to conduct research on the effects on the ocean environment

and those who use it of military munitions disposed of in

coastal waters.

(2) SCOPE.—Research under paragraph (1) shall include—

(A) the sampling and analysis of ocean waters and

sea beds at or adjacent to military munitions disposal

sites selected pursuant to paragraph (3) to determine

whether the disposed military munitions have caused or

are causing contamination of such waters or sea beds;

(B) investigation into the long-term effects of seawater

exposure on disposed military munitions, particularly

effects on chemical munitions;

(C) investigation into the impacts any such contamination may have on the ocean environment and those who

use it, including public health risks;

(D) investigation into the feasibility of removing or

otherwise remediating the military munitions; and

(E) the development of effective safety measures for

dealing with such military munitions.

(3) RESEARCH CRITERIA.—In conducting the research

required by this subsection, the Secretary shall ensure that

the sampling, analysis, and investigations are conducted at

representative sites, taking into account factors such as depth,

water temperature, nature of the military munitions present,

and relative proximity to onshore populations. In conducting

such research, the Secretary shall select at least two representative sites each in the areas of the Atlantic coast, the Pacific

coast (including Alaska), and the Hawaiian Islands.

(4) AUTHORITY TO MAKE GRANTS AND ENTER INTO COOPERATIVE AGREEMENTS.—In conducting research under this subsection, the Secretary may make grants to, and enter into

cooperative agreements with, qualified research entities.

(d) MONITORING.—If the historical review required by subsection (a) or the research required by subsection (c) indicates

that contamination is being released into the ocean waters from

disposed military munitions at a particular site or that the site

poses a significant public health or safety risk, the Secretary 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:

Reports.

PUBLIC LAW 109–364—OCT. 17, 2006 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—

120 STAT. 2142 PUBLIC LAW 109–364—OCT. 17, 2006

(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 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. The Administrator shall promptly publish

notice of such extension in the Federal Register.’’.

(b) SUNSET DATE.—The amendments made by subsection (a)

shall cease to have effect on September 30, 2012. The termination

of the authority to grant exemptions pursuant to such amendments

shall not effect the validity of any exemption granted prior to

such date.

(c) REPORT.—Not later than March 1, 2011, the Secretary of

Defense shall submit to the Committee on Armed Services and

the Committee on Environment and Public Works of the Senate

and the Committee on Armed Services and the Committee on

Energy and Commerce of the House of Representatives a report

on the status of 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—

15 USC 2605

note.

Federal Register,

publication.

Deadline.

PUBLIC LAW 109–364—OCT. 17, 2006 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 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) 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

Reports.

Deadline.

Deadline.

Contracts.

120 STAT. 2144 PUBLIC LAW 109–364—OCT. 17, 2006

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. 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.

10 USC 2222

note.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2146 PUBLIC LAW 109–364—OCT. 17, 2006

SEC. 323. 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.

10 USC 229 note.

PUBLIC LAW 109–364—OCT. 17, 2006 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:

120 STAT. 2148 PUBLIC LAW 109–364—OCT. 17, 2006

(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 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 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

Deadline.

Deadline.

PUBLIC LAW 109–364—OCT. 17, 2006 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:

‘‘§ 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. 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:

Notification.

120 STAT. 2150 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘(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) EFFECTIVE DATE.—Section 2476 of title 10, United States

Code, as added by subsection (a), shall take effect on October

1, 2006.

(d) 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 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

Applicability.

10 USC 2476

note.

10 USC 2476

note.

PUBLIC LAW 109–364—OCT. 17, 2006 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 CONTRAC- TORS.—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 securityguard 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

120 STAT. 2152 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2154 PUBLIC LAW 109–364—OCT. 17, 2006

(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 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:

Deadline.

PUBLIC LAW 109–364—OCT. 17, 2006 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 livefire 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

120 STAT. 2156 PUBLIC LAW 109–364—OCT. 17, 2006

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—

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2158 PUBLIC LAW 109–364—OCT. 17, 2006

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

(a) 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) 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.

Certification.

10 USC 221 note.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2160 PUBLIC LAW 109–364—OCT. 17, 2006

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:

‘‘§ 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) 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 MATE- RIEL.—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—

10 USC 2229

note.

PUBLIC LAW 109–364—OCT. 17, 2006 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:

‘‘§ 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.’’.

120 STAT. 2162 PUBLIC LAW 109–364—OCT. 17, 2006

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:

‘‘§ 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 (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

10 USC note

prec. 1031.

PUBLIC LAW 109–364—OCT. 17, 2006 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. 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 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.

Deadline.

22 USC 4865

note.

120 STAT. 2164 PUBLIC LAW 109–364—OCT. 17, 2006

SEC. 358. 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. 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) 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:

10 USC 2911

note.

10 USC 2567

note.

10 USC 2911

note.

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2166 PUBLIC LAW 109–364—OCT. 17, 2006

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 nondeployed 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

PUBLIC LAW 109–364—OCT. 17, 2006 120 STAT. 2167

than 80 percent may be obligated before the date on which

the report required under paragraph (1) is submitted.

SEC. 362. 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 DEPART- MENT 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 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) 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’’.

Reports.

Effective date.

10 USC 2825

note.

120 STAT. 2168 PUBLIC LAW 109–364—OCT. 17, 2006

(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.

PUBLIC LAW 109–364—OCT. 17, 2006 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 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) 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

10 USC 115 note.

Effective date.

120 STAT. 2170 PUBLIC LAW 109–364—OCT. 17, 2006

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 activeduty 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

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2172 PUBLIC LAW 109–364—OCT. 17, 2006

(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.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2174 PUBLIC LAW 109–364—OCT. 17, 2006

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 LowDensity, 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.

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2176 PUBLIC LAW 109–364—OCT. 17, 2006

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:

‘‘§ 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:

‘‘§ 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:

PUBLIC LAW 109–364—OCT. 17, 2006 120 STAT. 2177

‘‘§ 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 caseby-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—

120 STAT. 2178 PUBLIC LAW 109–364—OCT. 17, 2006

(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:

‘‘§ 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:

‘‘§ 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:

‘‘§ 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:

‘‘§ 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).

PUBLIC LAW 109–364—OCT. 17, 2006 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 SERV- ICES.—Section 8081 of title 10, United States Code, is amended

by striking ‘‘brigadier general’’ in the second sentence and inserting

‘‘major general’’.

(b) 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’’.

10 USC 8081

note.

120 STAT. 2180 PUBLIC LAW 109–364—OCT. 17, 2006

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:

‘‘§ 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:

‘‘§ 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

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2182 PUBLIC LAW 109–364—OCT. 17, 2006

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

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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.’’.

10 USC 624 note.

120 STAT. 2184 PUBLIC LAW 109–364—OCT. 17, 2006

(e) EFFECTIVE DATE.—The amendments made by this section

shall take effect on the date of the enactment of this Act and

shall apply with respect to 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) 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.’’.

10 USC 616 note.

10 USC 624 note.

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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) 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

10 USC 628 note.

10 USC 618 note.

120 STAT. 2186 PUBLIC LAW 109–364—OCT. 17, 2006

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)’’.

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2188 PUBLIC LAW 109–364—OCT. 17, 2006

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

PUBLIC LAW 109–364—OCT. 17, 2006 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:

‘‘§ 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) EFFECTIVE DATE.—The amendments made by this section

shall take effect on October 1, 2007.

(g) 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) IMPLEMENTATION PLAN.—

(1) PLAN REQUIRED.—Not 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.

Deadline.

10 USC 661 note.

10 USC 661 note.

10 USC 661 note.

120 STAT. 2190 PUBLIC LAW 109–364—OCT. 17, 2006

(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;

PUBLIC LAW 109–364—OCT. 17, 2006 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) EFFECTIVE DATE.—The amendments made by this section

shall take effect on October 1, 2007.

10 USC 664 note.

120 STAT. 2192 PUBLIC LAW 109–364—OCT. 17, 2006

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):

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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

Procedures.

120 STAT. 2194 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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;

120 STAT. 2196 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘(ii) members of foreign military forces (under the

same authorities and restrictions applicable to activeduty 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:

‘‘§ 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

PUBLIC LAW 109–364—OCT. 17, 2006 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 ‘‘OPER- ATIONS 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 REEMPLOY- MENT.—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

120 STAT. 2198 PUBLIC LAW 109–364—OCT. 17, 2006

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.—

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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.

10 USC 4345

note.

120 STAT. 2200 PUBLIC LAW 109–364—OCT. 17, 2006

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:

‘‘§ 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) For the assessment at the Academy under paragraph (1)

with respect to an Academy program year that begins in an oddnumbered calendar year, the Secretary of the Army shall conduct

Survey.

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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:

Survey.

120 STAT. 2202 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘§ 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) For the assessment at the Academy under paragraph (1)

with respect to an Academy program year that begins in an oddnumbered 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—

Survey.

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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:

‘‘§ 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.

Survey.

120 STAT. 2204 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘(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) For the assessment at the Academy under paragraph (1)

with respect to an Academy program year that begins in an oddnumbered 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

Survey.

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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) 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.—

10 USC 4361

note.

Survey.

120 STAT. 2206 PUBLIC LAW 109–364—OCT. 17, 2006

(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. DEPARTMENT OF DEFENSE POLICY ON SERVICE ACADEMY

AND ROTC GRADUATES SEEKING TO PARTICIPATE IN

PROFESSIONAL SPORTS BEFORE COMPLETION OF THEIR

ACTIVE-DUTY SERVICE OBLIGATIONS.

(a) POLICY REQUIRED.—

(1) IN GENERAL.—Not later than July 1, 2007, the Secretary

of Defense shall prescribe the policy of the Department of

Defense on—

(A) whether to authorize graduates of the service academies and the Reserve Officers’ Training Corps to participate in professional sports before the completion of their

obligations for service on active duty as commissioned officers; and

(B) if so, the obligations for service on active duty

as commissioned officers of such graduates who participate

in professional sports before the satisfaction of the obligations referred to in subparagraph (A).

(2) REVIEW OF CURRENT POLICIES.—In prescribing the

policy, the Secretary shall review current policies, practices,

and regulations of the military departments on the obligations

for service on active duty as commissioned officers of graduates

of the service academies and the Reserve Officers’ Training

Corps, including policies on authorized leaves of absence and

policies under excess leave programs.

(3) CONSIDERATIONS.—In prescribing the policy, the Secretary shall take into account the following:

(A) The compatibility of participation in professional

sports (including training for professional sports) with

service on active duty in the Armed Forces or as a member

of a reserve component of the Armed Forces.

(B) The benefits for the Armed Forces of waiving

obligations for service on active duty for cadets, midshipmen, and commissioned officers in order to permit such

individuals to participate in professional sports.

(C) The manner in which the military departments

have resolved issues relating to the participation of personnel in professional sports, including the extent of and

any reasons for, differences in the resolution of such issues

by such departments.

(D) The recoupment of the costs of education provided

by the service academies or under the Reserve Officers’

Deadline.

10 USC 4348

note.

PUBLIC LAW 109–364—OCT. 17, 2006 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 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:

Deadline.

Regulations.

120 STAT. 2208 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘§ 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.

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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

10 USC 2173

note.

120 STAT. 2210 PUBLIC LAW 109–364—OCT. 17, 2006

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) 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:

‘‘§ 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.

10 USC 2121

note.

PUBLIC LAW 109–364—OCT. 17, 2006 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 MEM- BERS.—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 onehalf 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

120 STAT. 2212 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘(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 onehalf 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. 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

10 USC 2031

note.

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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)’’.

Regulations.

120 STAT. 2214 PUBLIC LAW 109–364—OCT. 17, 2006

(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 PRO- GRAMS.—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.

PUBLIC LAW 109–364—OCT. 17, 2006 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 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:

‘‘§ 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

Deadline.

120 STAT. 2216 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘(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:

‘‘§ 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.

PUBLIC LAW 109–364—OCT. 17, 2006 120 STAT. 2217

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.

Not 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) 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)).

President.

10 USC 3755

note.

Regulations.

Deadline.

10 USC 802 note.

120 STAT. 2218 PUBLIC LAW 109–364—OCT. 17, 2006

(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) 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.

President.

PUBLIC LAW 109–364—OCT. 17, 2006 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. 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:

‘‘§ 1151. Retention of assistive technology and services provided before separation

‘‘(a) 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).’’.

Regulations.

10 USC note

prec. 1211.

120 STAT. 2220 PUBLIC LAW 109–364—OCT. 17, 2006

(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. TRANSPORTATION OF REMAINS OF CASUALTIES DYING IN

A THEATER OF COMBAT OPERATIONS.

(a) 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).

Regulations.

10 USC 1482

note.

PUBLIC LAW 109–364—OCT. 17, 2006 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:

‘‘§ 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

120 STAT. 2222 PUBLIC LAW 109–364—OCT. 17, 2006

(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. 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.—

10 USC 113 note.

PUBLIC LAW 109–364—OCT. 17, 2006 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—

120 STAT. 2224 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘(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. 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.

10 USC 1481

note.

PUBLIC LAW 109–364—OCT. 17, 2006 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 HEAD- QUARTERS 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, tuitionfree basis notwithstanding section 1404(d)(2).’’.

(b) REPORT ON LONG-TERM PLAN FOR EDUCATION OF DEPEND- ENTS 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

120 STAT. 2226 PUBLIC LAW 109–364—OCT. 17, 2006

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 Defensewide 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. 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 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

Deadline.

20 USC 7703b

note.

PUBLIC LAW 109–364—OCT. 17, 2006 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 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. 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

10 USC 1788

note.

Deadline.

120 STAT. 2228 PUBLIC LAW 109–364—OCT. 17, 2006

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

PUBLIC LAW 109–364—OCT. 17, 2006 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).

120 STAT. 2230 PUBLIC LAW 109–364—OCT. 17, 2006

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 LowDensity, 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, HighDemand 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 futureyears 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. 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,

10 USC 113 note.

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2232 PUBLIC LAW 109–364—OCT. 17, 2006

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

PUBLIC LAW 109–364—OCT. 17, 2006 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) EFFECTIVE DATE.—The amendments made by this section

shall take effect on October 1, 2007.

SEC. 592. REVISION IN GOVERNMENT CONTRIBUTIONS TO MEDICAREELIGIBLE 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

10 USC 1465

note.

120 STAT. 2234 PUBLIC LAW 109–364—OCT. 17, 2006

(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) 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:

10 USC 1111

note.

PUBLIC LAW 109–364—OCT. 17, 2006 120 STAT. 2235

‘‘§ 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) 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) 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);

Regulations.

Regulations.

120 STAT. 2236 PUBLIC LAW 109–364—OCT. 17, 2006

(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:

‘‘§ 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. 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) LIAISON OFFICER (PEBLO) REQUIREMENTS AND TRAINING.—

(1) The Secretary of Defense shall prescribe regulations establishing—

‘‘(A) a requirement for the Secretary of each military

department to make available to members of the armed forces

Regulations.

Applicability.

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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) 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:

‘‘§ 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

10 USC 1222

note.

Regulations.

120 STAT. 2238 PUBLIC LAW 109–364—OCT. 17, 2006

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:

‘‘§ 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) 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.’’.

Regulations.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2240 PUBLIC LAW 109–364—OCT. 17, 2006

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. 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

Effective dates.

37 USC 1009

note.

PUBLIC LAW 109–364—OCT. 17, 2006 120 STAT. 2241

COMMISSIONED OFFICERS1—Continued

Pay

Grade 2 or less Over 2 Over 3 Over 4 Over 6

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.

120 STAT. 2242 PUBLIC LAW 109–364—OCT. 17, 2006

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

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2244 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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)’’.

37 USC 203 note.

120 STAT. 2246 PUBLIC LAW 109–364—OCT. 17, 2006

(b) 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) 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) 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

37 USC 403 note.

37 USC 403 note.

37 USC 403 note.

PUBLIC LAW 109–364—OCT. 17, 2006 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’’.

120 STAT. 2248 PUBLIC LAW 109–364—OCT. 17, 2006

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’’.

PUBLIC LAW 109–364—OCT. 17, 2006 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 OCCUPA- TIONAL 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) 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) 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:

‘‘§ 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.

37 USC 302g

note.

37 USC 302b

note.

120 STAT. 2250 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘(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:

‘‘§ 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

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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;

37 USC 302h

note.

120 STAT. 2252 PUBLIC LAW 109–364—OCT. 17, 2006

(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 activeservice 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) 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) 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.

37 USC 327 note.

37 USC 312b

note.

PUBLIC LAW 109–364—OCT. 17, 2006 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 HIGHDEMAND, 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:

‘‘§ 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) The provision of any incentive developed under this subsection shall be subject to an agreement, as required for bonuses

under subsection (a).

‘‘(3) 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

Deadline.

Contracts.

120 STAT. 2254 PUBLIC LAW 109–364—OCT. 17, 2006

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.’’.

PUBLIC LAW 109–364—OCT. 17, 2006 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:

‘‘§ 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) 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:

‘‘§ 330. Special pay: accession bonus for officer candidates

‘‘(a) 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.

Regulations.

37 USC 329 note.

120 STAT. 2256 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘(d) 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) 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 DIS- CHARGE.—Subsection (d)(2) of such section is amended—

37 USC 330 note.

Contracts.

PUBLIC LAW 109–364—OCT. 17, 2006 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).’’.

120 STAT. 2258 PUBLIC LAW 109–364—OCT. 17, 2006

(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:

‘‘§ 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

PUBLIC LAW 109–364—OCT. 17, 2006 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) 21⁄2; 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) 21⁄2 percent of the years of service credited

to that person under section 12733 of this title, for

service under conditions authorized for purposes of

120 STAT. 2260 PUBLIC LAW 109–364—OCT. 17, 2006

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

PUBLIC LAW 109–364—OCT. 17, 2006 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) TRANSITION.— (1) TRANSITION PERIOD.—In the case of a participant in

the Survivor Benefit Plan who made a covered insurableinterest 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) 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

10 USC 1448

note.

10 USC 1448

note.

120 STAT. 2262 PUBLIC LAW 109–364—OCT. 17, 2006

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).’’.

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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) 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) The Secretary of Defense shall prescribe in regulations

uniform procedures and criteria for the evaluation of proposals

Regulations.

Deadline.

Notification.

120 STAT. 2264 PUBLIC LAW 109–364—OCT. 17, 2006

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) 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)’’.

Notification.

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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.

Applicability.

120 STAT. 2266 PUBLIC LAW 109–364—OCT. 17, 2006

(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:

‘‘§ 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) 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

Regulations.

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2268 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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 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. Such publication shall be made

not less than 90 days before that earlier effective date.

(d) 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. 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.

Expiration date.

10 USC 987 note.

Deadline.

Federal Register,

publication.

10 USC 987 note.

120 STAT. 2270 PUBLIC LAW 109–364—OCT. 17, 2006

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) 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) 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,

10 USC 2780

note.

10 USC 2774

note.

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2272 PUBLIC LAW 109–364—OCT. 17, 2006

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) 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.’’.

10 USC 4837

note.

PUBLIC LAW 109–364—OCT. 17, 2006 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. 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.

10 USC 1781

note.

120 STAT. 2274 PUBLIC LAW 109–364—OCT. 17, 2006

(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 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. 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:

Establishment.

Deadline.

PUBLIC LAW 109–364—OCT. 17, 2006 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:

120 STAT. 2276 PUBLIC LAW 109–364—OCT. 17, 2006

(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 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,

Internet.

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2278 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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’’.

120 STAT. 2280 PUBLIC LAW 109–364—OCT. 17, 2006

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. 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 overthe-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

10 USC 1074g

note.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2282 PUBLIC LAW 109–364—OCT. 17, 2006

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:

‘‘§ 1076d. TRICARE program: TRICARE standard coverage

for members of the Selected Reserve’’.

(d) REPEAL OF OBSOLETE PROVISION.—Effective October 1, 2007,

section 1076b of title 10, United States Code, is repealed.

(e) CLERICAL AMENDMENTS.—Effective 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) 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) 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.

10 USC 1076d

note.

10 USC 1076d

note.

Effective date.

Effective date.

PUBLIC LAW 109–364—OCT. 17, 2006 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:

‘‘§ 1097c. TRICARE program: relationship with employersponsored 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

120 STAT. 2284 PUBLIC LAW 109–364—OCT. 17, 2006

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 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.

Effective date.

PUBLIC LAW 109–364—OCT. 17, 2006 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 cochairs 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 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

Reports.

120 STAT. 2286 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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:

120 STAT. 2288 PUBLIC LAW 109–364—OCT. 17, 2006

(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

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2290 PUBLIC LAW 109–364—OCT. 17, 2006

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 Followup Agency (in this section referred to as the ‘‘Agency’’) of

the Institute of Medicine of the National Academy of Sciences,

the Secretary of the Air Force shall request the written consent

of the participants to transfer their data and biological specimens to the Agency during fiscal year 2007 and written consent

for the Agency to maintain the data and specimens and make

them available for additional studies.

(2) COMPLETION OF TRANSFER.—Custodianship of the Air

Force Health Study shall be completely transferred to the

Agency on or before September 30, 2007. Assets to be transferred shall include electronic data files and biological specimens of all the study participants.

(3) COPIES TO ARCHIVES.—The Air Force shall send paper

copies of all study documents to the National Archives.

(b) REPORT ON TRANSFER.—

(1) REQUIREMENT.—Not later than 30 days after completion

of the transfer of the assets of the Air Force Health Study

under subsection (a), the Secretary of the Air Force shall submit

to the 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.

Deadline.

PUBLIC LAW 109–364—OCT. 17, 2006 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;

120 STAT. 2292 PUBLIC LAW 109–364—OCT. 17, 2006

(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.

PUBLIC LAW 109–364—OCT. 17, 2006 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 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.

Contracts.

120 STAT. 2294 PUBLIC LAW 109–364—OCT. 17, 2006

(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

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2296 PUBLIC LAW 109–364—OCT. 17, 2006

(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:

PUBLIC LAW 109–364—OCT. 17, 2006 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 SUP- PORT.— (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

120 STAT. 2298 PUBLIC LAW 109–364—OCT. 17, 2006

(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.

PUBLIC LAW 109–364—OCT. 17, 2006 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 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.

Deadline.

120 STAT. 2300 PUBLIC LAW 109–364—OCT. 17, 2006

(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.

PUBLIC LAW 109–364—OCT. 17, 2006 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 longterm 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—

120 STAT. 2302 PUBLIC LAW 109–364—OCT. 17, 2006

(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,

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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:

Regulations.

120 STAT. 2304 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘(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 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.

Deadline.

PUBLIC LAW 109–364—OCT. 17, 2006 120 STAT. 2305

(b) DURATION.—Any 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.

Deadlines.

120 STAT. 2306 PUBLIC LAW 109–364—OCT. 17, 2006

(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

PUBLIC LAW 109–364—OCT. 17, 2006 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 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

Deadline.

120 STAT. 2308 PUBLIC LAW 109–364—OCT. 17, 2006

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

PUBLIC LAW 109–364—OCT. 17, 2006 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)—

120 STAT. 2310 PUBLIC LAW 109–364—OCT. 17, 2006

(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

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2312 PUBLIC LAW 109–364—OCT. 17, 2006

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 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;

Effective date.

PUBLIC LAW 109–364—OCT. 17, 2006 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 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

Deadline.

120 STAT. 2314 PUBLIC LAW 109–364—OCT. 17, 2006

(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 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;

Reports.

Deadlines.

PUBLIC LAW 109–364—OCT. 17, 2006 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:

‘‘§ 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’’.

120 STAT. 2316 PUBLIC LAW 109–364—OCT. 17, 2006

(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 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.

Deadline.

PUBLIC LAW 109–364—OCT. 17, 2006 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;

120 STAT. 2318 PUBLIC LAW 109–364—OCT. 17, 2006

(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 futureyears 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.

PUBLIC LAW 109–364—OCT. 17, 2006 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 tradeoffs, 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.

120 STAT. 2320 PUBLIC LAW 109–364—OCT. 17, 2006

(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.

PUBLIC LAW 109–364—OCT. 17, 2006 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 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

Deadline.

120 STAT. 2322 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 120 STAT. 2323

‘‘§ 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.

‘‘§ 2445b. Cost, schedule, and performance information

‘‘(a) SUBMITTAL OF COST, SCHEDULE, AND PERFORMANCE

INFORMATION.—The Secretary of Defense shall submit to Congress

each calendar year, not later than 45 days after the President

submits to Congress the budget for a fiscal year under section

1105 of title 31, budget justification documents regarding cost,

schedule, and performance for each major automated information

system program for which funds are requested by the President

in the budget.

‘‘(b) ELEMENTS.—The documents submitted under subsection

(a) with respect to a major automated information system program

shall include detailed and summarized information with respect

to the automated information system to be acquired under the

program, and shall specifically include each of the following:

‘‘(1) The development schedule, including major milestones.

‘‘(2) The implementation schedule, including estimates of

milestone dates, initial operational capability, and full operational capability.

‘‘(3) Estimates of development costs and full life-cycle costs.

‘‘(4) A summary of key performance parameters.

‘‘(c) BASELINE.—(1) For purposes of this chapter, the initial

submittal to Congress of the documents required by subsection

(a) with respect to a major automated information system program

shall constitute the original estimate or information originally submitted on such program for purposes of the reports and determinations on program changes in section 2445c of this title.

Deadline.

120 STAT. 2324 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘(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.

‘‘§ 2445c. Reports: quarterly reports; reports on program

changes

‘‘(a) QUARTERLY REPORTS BY PROGRAM MANAGERS.—The program manager of a major automated information system program

shall, on a quarterly basis, submit to the senior Department of

Defense official responsible for the program a written report identifying any variance in the projected development schedule,

implementation schedule, life-cycle costs, or key performance

parameters for the major automated information system to be

acquired under the program from such information as originally

submitted to Congress under section 2445b of this title.

‘‘(b) SENIOR OFFICIALS RESPONSIBLE FOR PROGRAMS.—For purposes of this section, the senior Department of Defense official

responsible for a major automated information system program

is—

‘‘(1) in the case of an automated information system to

be acquired for a military department, the senior acquisition

executive for the military department; or

‘‘(2) in the case of any other automated information system

to be acquired for the Department of Defense or any component

of the Department of Defense, the Under Secretary of Defense

for Acquisition, Technology, and Logistics.

‘‘(c) REPORT ON SIGNIFICANT CHANGES IN PROGRAM.—

‘‘(1) IN GENERAL.—If, based on a quarterly report submitted

by the program manager of a major automated information

system program pursuant to subsection (a), the senior Department of Defense official responsible for the program makes

a determination described in paragraph (2), the official shall,

not later than 45 days after receiving such report, notify the

congressional defense committees in writing of such determination.

‘‘(2) COVERED DETERMINATION.—A determination described

in this paragraph with respect to a major automated information system program is a determination that—

‘‘(A) there has been a schedule change that will cause

a delay of more than six months but less than a year

in any program schedule milestone or significant event

from the schedule originally submitted to Congress under

paragraph (1) or (2) of section 2445b(b) of this title;

‘‘(B) the estimated program development cost or full

life-cycle cost for the program has increased by at least

15 percent, but less than 25 percent, over the original

estimate submitted to Congress under paragraph (3) of

section 2445b(b) of this title; or

Notification.

PUBLIC LAW 109–364—OCT. 17, 2006 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 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;

Certification.

120 STAT. 2326 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘(3) the new estimates of the costs, schedule, and performance parameters with respect to the program and system are

reasonable; and

‘‘(4) the management structure for the program is adequate

to manage and control program costs.

‘‘(g) PROHIBITION ON OBLIGATION OF FUNDS.—(1) If the determination of a critical change to a program is made by the senior

Department official responsible for the program under subsection

(d)(2) and a report is not submitted to Congress within the 60-

day period provided by subsection (d)(1), appropriated funds may

not be obligated for any major contract under the program.

‘‘(2) The prohibition on the obligation of funds for a program

under paragraph (1) shall cease to apply on the date on which

Congress has received a report in compliance with the requirements

of subsection (d)(2).

‘‘§ 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 NONDEFENSE AGENCIES.

(a) INSPECTOR GENERAL REVIEWS AND DETERMINATIONS.—

(1) IN GENERAL.—For each covered non-defense agency,

the Inspector General of the Department of Defense and the

Inspector General of such non-defense agency shall, not later

than March 15, 2007, jointly—

Deadline.

Applicability.

Termination

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PUBLIC LAW 109–364—OCT. 17, 2006 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 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 nondefense agency, such Inspectors General shall, not later than

June 15, 2008, jointly—

(A) conduct a second review, as described in subparagraph (A) of that paragraph, regarding such non-defense

agency’s procurement of property or services on behalf of

the Department of Defense in fiscal year 2007; and

(B) determine in writing whether such non-defense

agency is or is not compliant with defense procurement

requirements.

(b) COMPLIANCE WITH DEFENSE PROCUREMENT REQUIREMENTS.—For the purposes of this section, a covered non-defense

agency is compliant with defense procurement requirements if such

non-defense agency’s procurement policies, procedures, and internal

controls applicable to the procurement of products and services

on behalf of the Department of Defense, and the manner in which

they are administered, are adequate to ensure such non-defense

agency’s compliance with the requirements of laws and regulations

that apply to procurements of property and services made directly

by the Department of Defense.

(c) MEMORANDA OF UNDERSTANDING BETWEEN INSPECTORS

GENERAL.—

(1) IN GENERAL.—Not later than 60 days after the date

of the enactment of this Act, the Inspector General of the

Department of Defense and the Inspector General of each covered non-defense agency shall enter into a memorandum of

understanding with each other to carry out the reviews and

make the determinations required by this section.

(2) SCOPE OF MEMORANDA.—The Inspector General of the

Department of Defense and the Inspector General of a covered

non-defense agency may by mutual agreement conduct separate

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120 STAT. 2328 PUBLIC LAW 109–364—OCT. 17, 2006

reviews of the procurement of property and services on behalf

of the Department of Defense that are conducted by separate

business units, or under separate governmentwide acquisition

contracts, of such non-defense agency. In any case where such

separate reviews are conducted, the Inspectors General shall

make separate determinations under paragraph (1) or (2) of

subsection (a), as applicable, with respect to each such separate

review.

(d) LIMITATIONS ON PROCUREMENTS ON BEHALF OF DEPARTMENT

OF DEFENSE.—

(1) LIMITATION DURING REVIEW PERIOD.—After March 15,

2007, and before June 16, 2008, no official of the Department

of Defense may, except as provided in subsection (e) or (f),

order, purchase, or otherwise procure property or services in

an amount in excess of $100,000 through a covered non-defense

agency for which a determination described in clause (iii) or

(iv) of paragraph (1)(B) of subsection (a) has been made under

subsection (a).

(2) LIMITATION AFTER REVIEW PERIOD.—After June 15, 2008,

no official of the Department of Defense may, except as provided

in subsection (e) or (f), order, purchase, or otherwise procure

property or services in an amount in excess of $100,000 through

a covered non-defense agency that, having been subject to

review under this section, has not been determined under this

section as being compliant with defense procurement requirements.

(3) LIMITATION FOLLOWING FAILURE TO REACH MOU.—Commencing on the date that is 60 days after the date of the

enactment of this Act, if a memorandum of understanding

between the Inspector General of the Department of Defense

and the Inspector General of a covered non-defense agency

cannot be attained causing the review required by this section

to not be performed, no official of the Department of Defense,

except as provided in subsection (e) or (f), may order, purchase

or otherwise procure property or services in an amount in

excess of $100,000 through such non-defense agency.

(e) EXCEPTION FROM APPLICABILITY OF LIMITATIONS.—

(1) EXCEPTION.—No limitation applies under subsection (d)

with respect to the procurement of property and services on

behalf of the Department of Defense by a covered non-defense

agency during any period that there is in effect a determination

of the Under Secretary of Defense for Acquisition, Technology,

and Logistics, made in writing, that it is necessary in the

interest of the Department of Defense to continue to procure

property and services through such non-defense agency.

(2) APPLICABILITY OF DETERMINATION.—A written determination with respect to a covered non-defense agency under

paragraph (1) is in effect for the period, not in excess of one

year, that the Under Secretary shall specify in the written

determination. The Under Secretary may extend from time

to time, for up to one year at a time, the period for which

the written determination remains in effect.

(f) TERMINATION OF APPLICABILITY OF LIMITATIONS.—Subsection

(d) shall cease to apply to a covered non-defense agency on the

date on which the Inspector General of the Department of Defense

and the Inspector General of such non-defense agency jointly—

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PUBLIC LAW 109–364—OCT. 17, 2006 120 STAT. 2329

(1) determine that such non-defense agency is compliant

with defense procurement requirements; and

(2) notify the Secretary of Defense of that determination.

(g) IDENTIFICATION OF PROCUREMENTS MADE DURING A PARTICULAR FISCAL YEAR.—For the purposes of subsection (a), a

procurement shall be treated as being made during a particular

fiscal year to the extent that funds are obligated by the Department

of Defense for that procurement in that fiscal year.

(h) RESOLUTION OF DISAGREEMENTS.—If the Inspector General

of the Department of Defense and the Inspector General of a covered

non-defense agency are unable to agree on a joint determination

under subsection (a) or (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 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

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120 STAT. 2330 PUBLIC LAW 109–364—OCT. 17, 2006

(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 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 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).

Deadline.

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PUBLIC LAW 109–364—OCT. 17, 2006 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)).

120 STAT. 2332 PUBLIC LAW 109–364—OCT. 17, 2006

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 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.

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PUBLIC LAW 109–364—OCT. 17, 2006 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:

120 STAT. 2334 PUBLIC LAW 109–364—OCT. 17, 2006

(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 AGEN- CIES 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 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.

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PUBLIC LAW 109–364—OCT. 17, 2006 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:

‘‘§ 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—

120 STAT. 2336 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘(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

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2338 PUBLIC LAW 109–364—OCT. 17, 2006

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 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:

‘‘§ 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.

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PUBLIC LAW 109–364—OCT. 17, 2006 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) 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 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

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120 STAT. 2340 PUBLIC LAW 109–364—OCT. 17, 2006

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 PASSTHROUGH 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 subsection—

PUBLIC LAW 109–364—OCT. 17, 2006 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 GENERAL.—Not later than May 1, 2007, the Secretary

of Defense shall prescribe regulations to ensure that passthrough 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 passthrough 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.

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120 STAT. 2342 PUBLIC LAW 109–364—OCT. 17, 2006

(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 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 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

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PUBLIC LAW 109–364—OCT. 17, 2006 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:

‘‘§ 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

120 STAT. 2344 PUBLIC LAW 109–364—OCT. 17, 2006

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, postconflict operations, and contingency operations, who shall report

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2346 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘(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.

PUBLIC LAW 109–364—OCT. 17, 2006 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 JavitsWagner-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

120 STAT. 2348 PUBLIC LAW 109–364—OCT. 17, 2006

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 RandolphSheppard 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 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 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

Deadline.

Deadline.

PUBLIC LAW 109–364—OCT. 17, 2006 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,’’.

120 STAT. 2350 PUBLIC LAW 109–364—OCT. 17, 2006

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 onsite 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)’’.

PUBLIC LAW 109–364—OCT. 17, 2006 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:

‘‘§ 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 George C. Marshall European Center for Security

Studies, established in 1993 and located in GarmischPartenkirchen, Germany.

‘‘(B) The Asia-Pacific Center for Security Studies, established in 1995 and located in Honolulu, Hawaii.

‘‘(C) The Center for Hemispheric Defense Studies, established in 1997 and located in Washington, D.C.

‘‘(D) The Africa Center for Strategic Studies, established

in 1999 and located in Washington, D.C.

District of

Columbia.

District of

Columbia.

Hawaii.

Germany.

120 STAT. 2352 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘(E) 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.

District of

Columbia.

PUBLIC LAW 109–364—OCT. 17, 2006 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—

120 STAT. 2354 PUBLIC LAW 109–364—OCT. 17, 2006

(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 SpaceBased 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.

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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:

‘‘§ 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

Deadline.

120 STAT. 2356 PUBLIC LAW 109–364—OCT. 17, 2006

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;

PUBLIC LAW 109–364—OCT. 17, 2006 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 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.

Reports.

Deadline.

120 STAT. 2358 PUBLIC LAW 109–364—OCT. 17, 2006

(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

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2360 PUBLIC LAW 109–364—OCT. 17, 2006

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 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 OnSite 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 costbenefit 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 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

New Jersey.

Reports.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2362 PUBLIC LAW 109–364—OCT. 17, 2006

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:

‘‘§ 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.

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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.

Regulations.

120 STAT. 2364 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘(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);

PUBLIC LAW 109–364—OCT. 17, 2006 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 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.

Deadline.

120 STAT. 2366 PUBLIC LAW 109–364—OCT. 17, 2006

(b) IMPLEMENTATION PLANS.—Not later than 60 days after the

Secretary of Defense receives the independent study required by

subsection (a), 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).

Reports.

Deadline.

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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—

Deadline.

120 STAT. 2368 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘(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 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

Deadline.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2370 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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,

120 STAT. 2372 PUBLIC LAW 109–364—OCT. 17, 2006

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 commonfunded 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:

PUBLIC LAW 109–364—OCT. 17, 2006 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’’.

120 STAT. 2374 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2376 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 120 STAT. 2377

(iii) Government-leased property for contractorowned 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).

120 STAT. 2378 PUBLIC LAW 109–364—OCT. 17, 2006

(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

PUBLIC LAW 109–364—OCT. 17, 2006 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 Virginiaclass 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

120 STAT. 2380 PUBLIC LAW 109–364—OCT. 17, 2006

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

PUBLIC LAW 109–364—OCT. 17, 2006 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 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.

Regulations.

120 STAT. 2382 PUBLIC LAW 109–364—OCT. 17, 2006

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

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2384 PUBLIC LAW 109–364—OCT. 17, 2006

(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.

PUBLIC LAW 109–364—OCT. 17, 2006 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’’;

120 STAT. 2386 PUBLIC LAW 109–364—OCT. 17, 2006

(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) 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.

Deadlines.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2388 PUBLIC LAW 109–364—OCT. 17, 2006

(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;

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2390 PUBLIC LAW 109–364—OCT. 17, 2006

(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

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2392 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2394 PUBLIC LAW 109–364—OCT. 17, 2006

(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 COUN- SELORS 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 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.

Deadline.

PUBLIC LAW 109–364—OCT. 17, 2006 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:

‘‘§ 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.

120 STAT. 2396 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘(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:

‘‘§ 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.—

PUBLIC LAW 109–364—OCT. 17, 2006 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 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.’’.

Deadline.

120 STAT. 2398 PUBLIC LAW 109–364—OCT. 17, 2006

(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.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2400 PUBLIC LAW 109–364—OCT. 17, 2006

(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.

PUBLIC LAW 109–364—OCT. 17, 2006 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:

‘‘§ 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

120 STAT. 2402 PUBLIC LAW 109–364—OCT. 17, 2006

(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)’’.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2404 PUBLIC LAW 109–364—OCT. 17, 2006

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:

‘‘§ 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

PUBLIC LAW 109–364—OCT. 17, 2006 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:

‘‘§ 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.

120 STAT. 2406 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘(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 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 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.

California.

Reports.

Deadline.

PUBLIC LAW 109–364—OCT. 17, 2006 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;

120 STAT. 2408 PUBLIC LAW 109–364—OCT. 17, 2006

(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’’.

PUBLIC LAW 109–364—OCT. 17, 2006 120 STAT. 2409

SEC. 1104. 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’’.

10 USC note

prec. 711.

120 STAT. 2410 PUBLIC LAW 109–364—OCT. 17, 2006

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:

‘‘§ 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

PUBLIC LAW 109–364—OCT. 17, 2006 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.’’.

120 STAT. 2412 PUBLIC LAW 109–364—OCT. 17, 2006

(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 CROSSSERVICING 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:

PUBLIC LAW 109–364—OCT. 17, 2006 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:

120 STAT. 2414 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘§ 407. Humanitarian demining assistance: authority; limitations

‘‘(a) AUTHORITY.—(1) 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);

Regulations.

PUBLIC LAW 109–364—OCT. 17, 2006 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:

120 STAT. 2416 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘§ 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

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2418 PUBLIC LAW 109–364—OCT. 17, 2006

(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.’’.

PUBLIC LAW 109–364—OCT. 17, 2006 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 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 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

Reports.

Deadline.

Deadline.

Reports.

120 STAT. 2420 PUBLIC LAW 109–364—OCT. 17, 2006

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 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 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:

President.

Deadline.

President.

PUBLIC LAW 109–364—OCT. 17, 2006 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 politicalmilitary 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.

120 STAT. 2422 PUBLIC LAW 109–364—OCT. 17, 2006

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. 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 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—

Reports.

Deadline.

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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:

10 USC 2347

note.

120 STAT. 2424 PUBLIC LAW 109–364—OCT. 17, 2006

(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. 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

President.

PUBLIC LAW 109–364—OCT. 17, 2006 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 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.

President.

120 STAT. 2426 PUBLIC LAW 109–364—OCT. 17, 2006

(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 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;

President.

PUBLIC LAW 109–364—OCT. 17, 2006 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 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—

Public

information.

120 STAT. 2428 PUBLIC LAW 109–364—OCT. 17, 2006

(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.

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2430 PUBLIC LAW 109–364—OCT. 17, 2006

government of Iraq, and the people of Iraq in their quest

to secure a free, prosperous, and democratic Iraq.

SEC. 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.

22 USC 2776a.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2432 PUBLIC LAW 109–364—OCT. 17, 2006

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:

PUBLIC LAW 109–364—OCT. 17, 2006 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 COM- MANDER 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. 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—

10 USC 113 note.

120 STAT. 2434 PUBLIC LAW 109–364—OCT. 17, 2006

(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:

PUBLIC LAW 109–364—OCT. 17, 2006 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).

120 STAT. 2436 PUBLIC LAW 109–364—OCT. 17, 2006

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:

‘‘§ 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. 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.

10 USC 113 note.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2438 PUBLIC LAW 109–364—OCT. 17, 2006

(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.

PUBLIC LAW 109–364—OCT. 17, 2006 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.—

120 STAT. 2440 PUBLIC LAW 109–364—OCT. 17, 2006

(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.

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2442 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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’’.

120 STAT. 2444 PUBLIC LAW 109–364—OCT. 17, 2006

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 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

Military

Construction

Authorization

Act for Fiscal

Year 2007.

PUBLIC LAW 109–364—OCT. 17, 2006 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

State Installation or 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 Army Air Field .. $95,300,000 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 Ocean Terminal $46,000,000 Oklahoma ............................ McAlester Army Ammunition Plant ... $3,050,000

Pennsylvania ...................... Letterkenny Depot ................................ $7,500,000

Texas ................................... Corpus Christi Army Depot ................. $12,200,000 Fort Bliss ............................................... $8,200,000

Fort Hood .............................................. $93,000,000

Red River Depot ................................... $6,000,000

Utah .................................... Dugway Proving Ground ...................... $14,400,000

120 STAT. 2446 PUBLIC LAW 109–364—OCT. 17, 2006

Army: Inside the United States—Continued

State Installation or Location Amount

Virginia ............................... Fort Belvoir ........................................... $27,000,000

Army: Inside the United States

State Installation or 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 Army

Air Field.

$95,300,000

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 Ocean

Terminal.

$46,000,000

Oklahoma .......................................... McAlester Army Ammunition

Plant.

$3,050,000

Pennsylvania ..................................... Letterkenny Depot ................. $7,500,000

Texas .................................................. Corpus Christi Army Depot .. $12,200,000

Fort Bliss ................................ $8,200,000

Fort Hood ............................... $93,000,000

Red River Depot ..................... $6,000,000

Utah ................................................... Dugway Proving Ground ....... $14,400,000

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

Country Installation or 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

PUBLIC LAW 109–364—OCT. 17, 2006 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)

120 STAT. 2448 PUBLIC LAW 109–364—OCT. 17, 2006

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

State Installation or Location Amount

Arizona .................................. Marine Corps Air Station, Yuma .. $5,966,000

California .............................. Marine Corps Air Station, Camp

Pendleton.

$6,412,000

PUBLIC LAW 109–364—OCT. 17, 2006 120 STAT. 2449

Navy: Inside the United States—Continued

State Installation or Location Amount

Marine Corps Air Station,

Miramar.

$2,968,000

Marine Corps Base, Camp Pendleton.$106,142,000

Marine Corps Base, Twentynine

Palms.

$27,217,000

Naval Air Station, North Island ... $21,535,000

Naval Support Activity, Monterey $7,380,000

Connecticut ........................... Naval Submarine Base, New London.$9,580,000

Florida .................................. Cape Canaveral .............................. $9,900,000 Naval Air Station, Pensacola ........ $13,486,000

Georgia ................................. Marine Corps Logistics Base, Albany.$70,540,000

Navy/Naval Submarine Base,

Kings Bay.

$20,282,000

Hawaii .................................. Naval Base, Pearl Harbor ............. $48,338,000

Naval Magazine, Pearl Harbor ..... $6,010,000

Naval Shipyard, Pearl Harbor ...... $22,000,000 Indiana ................................. Naval Support Activity, Crane ...... $6,730,000

Maine .................................... Portsmouth Naval Shipyard .......... $9,650,000

Maryland .............................. Naval Air Station, Patuxent River $16,316,000

NMIC/Naval Support Activity,

Suitland.

$67,939,000

Mississippi ............................ Naval Air Station, Meridian .......... $5,870,000

Nevada .................................. Naval Air Station, Fallon .............. $7,730,000

North Carolina ..................... Marine Corps Air Station, Cherry

Point.

$2,790,000

Marine Corps Air Station, New

River.

$21,500,000

Marine Corps Base, Camp

Lejeune.

$160,904,000

Rhode Island ........................ Naval Station, Newport ................. $3,308,000

South Carolina ..................... Marine Corps Air Station, Beaufort.$25,575,000

Virginia ................................. Marine Corps Base, Quantico ....... $30,628,000

Naval Shipyard, Norfolk ................ $34,952,000

Naval Special Weapons Center,

Dahlgren.

$9,850,000

Naval Station, Norfolk ................... $12,062,000

Naval Support Activity, Norfolk ... $41,712,000

Washington ........................... Naval Air Station, Whidbey Island $67,303,000

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, Sigonella ............... $13,051,000

(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:

120 STAT. 2450 PUBLIC LAW 109–364—OCT. 17, 2006

Navy: Unspecified Worldwide

Location Project Amount

........................................... Helicopter Support Facility ................ $12,185,000

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2452 PUBLIC LAW 109–364—OCT. 17, 2006

(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—

PUBLIC LAW 109–364—OCT. 17, 2006 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

State Installation or Location Amount

Alaska ...................... Eielson Air Force Base ............................ $38,300,000

Elmendorf Air Force Base ....................... $68,100,000

Arizona .................... Davis-Monthan Air Force Base ............... $11,800,000

Arkansas ................. Little Rock Air Force Base ...................... $9,800,000

California ................ Beale Air Force Base ............................... $28,000,000

Travis Air Force Base .............................. $85,800,000

120 STAT. 2454 PUBLIC LAW 109–364—OCT. 17, 2006

Air Force: Inside the United States—Continued

State Installation or Location Amount

Colorado .................. Buckley Air Force Base ........................... $10,700,000

Peterson Air Force Base .......................... $4,900,000

Schriever Air Force Base ......................... $21,000,000

Delaware ................. Dover Air Force Base ............................... $30,400,000

Florida ..................... Eglin Air Force Base ................................ $30,350,000

Hurlburt Field .......................................... $32,950,000

MacDill Air Force Base ........................... $71,000,000

Tyndall Air Force Base ............................ $8,200,000

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 Base ....................... $3,875,000

Kentucky ................. Fort Knox .................................................. $3,500,000

Maryland ................. Andrews Air Force Base .......................... $29,000,000

Massachusetts ......... Hanscom Air Force Base ......................... $12,400,000

Missouri ................... Whiteman Air Force Base ....................... $3,800,000

Montana .................. Malmstrom Air Force Base ..................... $5,700,000

Nevada .................... Indian Springs Auxiliary Field ............... $49,923,000

New Jersey .............. McGuire Air Force Base .......................... $28,500,000

New Mexico ............. Kirtland Air Force Base .......................... $11,400,000

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 Base ...................... $10,200,000

Shaw Air Force Base ............................... $31,500,000

South Dakota .......... Ellsworth Air Force Base ........................ $3,000,000

Texas ....................... Fort Bliss .................................................. $8,500,000

Lackland Air Force Base ......................... $13,200,000

Laughlin Air Force Base .......................... $12,600,000

Sheppard Air Force Base ......................... $7,000,000

Utah ......................... Hill Air Force Base .................................. $63,400,000

Virginia ................... Langley Air Force Base ........................... $57,700,000

Washington ............. Fairchild Air Force Base ......................... $4,250,000

Wyoming ................. Francis E. Warren Air Force Base ......... $11,000,000

(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:

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2456 PUBLIC LAW 109–364—OCT. 17, 2006

(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.

PUBLIC LAW 109–364—OCT. 17, 2006 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:

120 STAT. 2458 PUBLIC LAW 109–364—OCT. 17, 2006

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

Country or Possession Installation or Location Amount

Japan .......................................................... Okinawa ............................. $5,000,000

Wake Island ............................................... Wake Island ....................... $2,600,000

Missile Defense Agency

Country or Possession Installation or 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.

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2460 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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).

120 STAT. 2462 PUBLIC LAW 109–364—OCT. 17, 2006

(c) LIMITATION ON TOTAL COST OF BASE CLOSURE AND REALIGN- MENT 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 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

Deadline.

Reports.

PUBLIC LAW 109–364—OCT. 17, 2006 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—

120 STAT. 2464 PUBLIC LAW 109–364—OCT. 17, 2006

(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 facility .... $15,500,000

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 units) $32,166,000

Hickam Air Force Base, Hawaii .... Parking ramp ....................... $10,102,000

Travis Air Force Base, California .. Family housing (56 units) ... $12,723,000

Defense Wide: Extension of 2004 Project Authorization

Installation or Location Agency and Project Amount

Hickam Air Force Base, Hawaii ......... DLA hydrant fuel system.$14,100,000

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 facility $15,581,000

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

PUBLIC LAW 109–364—OCT. 17, 2006 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 units) $15,906,000

Eglin Air Force Base, Florida ........ Family housing office .......... $597,000

Randolph Air Force Base, Texas Housing maintenance facility.$447,000

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.

120 STAT. 2466 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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

Deadline.

120 STAT. 2468 PUBLIC LAW 109–364—OCT. 17, 2006

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:

‘‘§ 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

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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:

‘‘§ 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

Evaluation.

120 STAT. 2470 PUBLIC LAW 109–364—OCT. 17, 2006

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 (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:

‘‘§ 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.

10 USC 2859

note.

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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) 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

Applicability.

Applicability.

120 STAT. 2472 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘(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:

PUBLIC LAW 109–364—OCT. 17, 2006 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:

‘‘§ 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 OF CONGRESS.—It is the sense of Congress that

the Secretary of Defense, when acquiring land for military purposes,

should—

10 USC 2663

note.

120 STAT. 2474 PUBLIC LAW 109–364—OCT. 17, 2006

(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). 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 RIGHTSOF-WAY.

(a) CONSOLIDATION.—Subsection (a) of section 2668 of title 10,

United States Code, is amended—

(1) in the matter preceding paragraph (1)—

Reports.

Deadline.

PUBLIC LAW 109–364—OCT. 17, 2006 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:

‘‘§ 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

120 STAT. 2476 PUBLIC LAW 109–364—OCT. 17, 2006

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. 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

Applicability.

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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 INTER- CHANGE 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:

‘‘§ 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:

‘‘§ 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

10 USC 2693,

2696.

120 STAT. 2478 PUBLIC LAW 109–364—OCT. 17, 2006

(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 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.

Colorado.

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2480 PUBLIC LAW 109–364—OCT. 17, 2006

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).

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2482 PUBLIC LAW 109–364—OCT. 17, 2006

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 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 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

Survey.

Deadline.

Contracts.

PUBLIC LAW 109–364—OCT. 17, 2006 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 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’’

Surveys.

120 STAT. 2484 PUBLIC LAW 109–364—OCT. 17, 2006

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. 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 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.

Survey.

Records.

PUBLIC LAW 109–364—OCT. 17, 2006 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. 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 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.

Survey.

Records.

120 STAT. 2486 PUBLIC LAW 109–364—OCT. 17, 2006

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:

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2488 PUBLIC LAW 109–364—OCT. 17, 2006

(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

PUBLIC LAW 109–364—OCT. 17, 2006 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.

‘‘§ 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) The energy performance goals shall be submitted annually

not later than the date on which the President submits to Congress

Deadline.

120 STAT. 2490 PUBLIC LAW 109–364—OCT. 17, 2006

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.

PUBLIC LAW 109–364—OCT. 17, 2006 120 STAT. 2491

‘‘§ 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.

‘‘§ 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;

120 STAT. 2492 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘(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.

PUBLIC LAW 109–364—OCT. 17, 2006 120 STAT. 2493

‘‘§ 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.

‘‘§ 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.

120 STAT. 2494 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘(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),

PUBLIC LAW 109–364—OCT. 17, 2006 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:

120 STAT. 2496 PUBLIC LAW 109–364—OCT. 17, 2006

‘‘(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:

PUBLIC LAW 109–364—OCT. 17, 2006 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:

‘‘§ 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)’’.

120 STAT. 2498 PUBLIC LAW 109–364—OCT. 17, 2006

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—

PUBLIC LAW 109–364—OCT. 17, 2006 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 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.

Deadline.

120 STAT. 2500 PUBLIC LAW 109–364—OCT. 17, 2006

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 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.

Deadline.

Reports.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2502 PUBLIC LAW 109–364—OCT. 17, 2006

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. 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.

50 USC 2534.

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2504 PUBLIC LAW 109–364—OCT. 17, 2006

(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 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

Deadline.

PUBLIC LAW 109–364—OCT. 17, 2006 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. 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 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

Deadline.

50 USC 2301

note.

120 STAT. 2506 PUBLIC LAW 109–364—OCT. 17, 2006

(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.

PUBLIC LAW 109–364—OCT. 17, 2006 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 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.’’.

42 USC 7144b

note.

120 STAT. 2508 PUBLIC LAW 109–364—OCT. 17, 2006

(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 PER- SONNEL.—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) 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

Establishment.

PUBLIC LAW 109–364—OCT. 17, 2006 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. 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

50 USC 2784.

120 STAT. 2510 PUBLIC LAW 109–364—OCT. 17, 2006

(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 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 (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

Certification.

Certification.

PUBLIC LAW 109–364—OCT. 17, 2006 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-forservice 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.

120 STAT. 2512 PUBLIC LAW 109–364—OCT. 17, 2006

(2) REPORT 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 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.

Effective date.

President.

PUBLIC LAW 109–364—OCT. 17, 2006 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.

120 STAT. 2514 PUBLIC LAW 109–364—OCT. 17, 2006

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

PUBLIC LAW 109–364—OCT. 17, 2006 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) 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) 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.’’.

Contracts.

Deadline.

120 STAT. 2516 PUBLIC LAW 109–364—OCT. 17, 2006

(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. 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)) 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.’’.

46 USC 51306.

49 USC 301 note.

PUBLIC LAW 109–364—OCT. 17, 2006 120 STAT. 2517

(b) APPLICATION.—Paragraph (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)) 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 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)) 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,

46 USC 51509.

46 USC 51306

note.

46 USC 51306.

46 USC 51306

note.

120 STAT. 2518 PUBLIC LAW 109–364—OCT. 17, 2006

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

PUBLIC LAW 109–364—OCT. 17, 2006 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

120 STAT. 2520 PUBLIC LAW 109–364—OCT. 17, 2006

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)) 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 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) 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) is

amended by striking ‘‘Maritime Education and Training Act

of 1980’’ and inserting ‘‘Merchant Marine Act, 1936’’.

46 USC 51701.

46 USC 51908.

46 USC 53909

note.

46 USC 53909.

PUBLIC LAW 109–364—OCT. 17, 2006 120 STAT. 2521

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.

Æ

(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.