`[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5122 Enrolled Bill (ENR)]


        H.R.5122

                       One Hundred Ninth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
             the third day of January, two thousand and six


                                 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 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.

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

             Part IV--Other Education and Training Programs

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

                 Subtitle D--General Service Authorities

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

                  Subtitle E--Military Justice Matters

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

                   Subtitle F--Decorations and Awards

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

               Subtitle G--Matters Relating to Casualties

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

     Subtitle H--Impact Aid and Defense Dependents Education System

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

                Subtitle I--Armed Forces Retirement Home

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

                           Subtitle J--Reports

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

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

                Subtitle D--Intelligence-Related Matters

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

                        Subtitle E--Other Matters

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

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

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

          Subtitle B--Policy Relating to Vessels and Shipyards

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

                   Subtitle C--Counter-Drug Activities

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

         Subtitle D--Force Structure and Defense Policy Matters

Sec. 1031. Improvements to Quadrennial Defense Review.
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.
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.
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.
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.
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

                   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.
 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.

                       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 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 (WIN-T) 
    program.
        (3) The Mounted Battle Command On-the-Move (MBCOTM) system.
    SEC. 115. COMPTROLLER GENERAL REPORT ON THE CONTRACT FOR THE FUTURE 
      COMBAT SYSTEMS PROGRAM.
    (a) Report Required.--Not later than March 15, 2007, the 
Comptroller General of the United States shall submit to the 
congressional defense committees a report on the participation and 
activities of the lead systems integrator in the Future Combat Systems 
(FCS) program under the contract of the Army for the Future Combat 
Systems.
    (b) Elements.--The report required by subsection (a) shall include 
the following:
        (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.--
        (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 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)).
    (b) Adjustment of Limitation Amount.--The Secretary of the Navy may 
adjust the amount set forth in subsection (a) for any ship constructed 
under the LHA Replacement amphibious assault ship program by the 
following:
        (1) The amounts of increases or decreases in costs attributable 
    to economic inflation after September 30, 2006.
        (2) The amounts of increases or decreases in costs attributable 
    to compliance with changes in Federal, State, or local laws enacted 
    after September 30, 2006.
        (3) The amounts of outfitting costs and post-delivery costs 
    incurred for that ship.
        (4) The amounts of increases or decreases in costs of that ship 
    that are attributable to insertion of new technology into that 
    ship, as compared to the technology baseline as it was defined at 
    the development stage referred to as Milestone B.
        (5) The amounts of increases or decreases to nonrecurring 
    design and engineering cost attributable to achieving compliance 
    with the cost limitation.
        (6) The amounts of increases or decreases to cost required to 
    correct deficiencies that may affect the safety of the ship and 
    personnel or otherwise preclude the ship from safe operations and 
    crew certification.
        (7) Contract cost adjustments directly attributed to the effect 
    of Hurricane Katrina in August 2005 or other force majeure contract 
    modifications.
    (c) Limitation on Technology Insertion Cost Adjustment.--The 
Secretary of the Navy may use the authority under paragraph (4) of 
subsection (b) to adjust the amount set forth in subsection (a) for a 
ship referred to in that subsection with respect to insertion of new 
technology into that ship only if--
        (1) the Secretary determines, and certifies to the 
    congressional defense committees, that insertion of the new 
    technology would lower the life-cycle cost of the ship; or
        (2) the Secretary determines, and certifies to the 
    congressional defense committees, that insertion of the new 
    technology is required to meet an emerging threat and the Secretary 
    of Defense certifies to those committees that such threat poses 
    grave harm to national security.
    (d) Written Notice of Change in Amount.--
        (1) Requirement.--The Secretary of the Navy shall submit to the 
    congressional defense committees each year, at the same time that 
    the budget is submitted under section 1105(a) of title 31, United 
    States Code, for the next fiscal year, written notice of any change 
    in the amount set forth in subsection (a) during the preceding 
    fiscal year that the Secretary has determined to be associated with 
    a cost referred to in subsection (b).
        (2) Effective date.--The requirement in paragraph (1) shall 
    become effective with the budget request for the year of 
    procurement of the first ship referred to in subsection (a).
    SEC. 126. COST LIMITATION FOR SAN ANTONIO (LPD-17) CLASS AMPHIBIOUS 
      SHIP PROGRAM.
    (a) Limitation.--
        (1) Procurement cost.--The total amount obligated or expended 
    from funds appropriated or otherwise made available for 
    Shipbuilding and Conversion, Navy, for the San Antonio-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).
        (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.
        (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);
            (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.
        (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.
    SEC. 134. MULTIYEAR PROCUREMENT AUTHORITY FOR F-22A RAPTOR FIGHTER 
      AIRCRAFT.
    (a) Prohibition on Use of Incremental Funding.--The Secretary of 
the Air Force may not use incremental funding for the procurement of F-
22A aircraft.
    (b) Multiyear Authority.--The Secretary of the Air Force may enter 
into a multiyear contract for the procurement of up to 60 F-22A Raptor 
fighter aircraft beginning with the 2007 program year.
    (c) Compliance With Law Applicable to Multiyear Contracts.--A 
contract under subsection (b) for the procurement of F-22A aircraft 
shall be entered into in accordance with section 2306b of title 10, 
United States Code, except that, notwithstanding subsection (k) of that 
section, such a contract may not be for a period in excess of three 
program years.
    (d) Secretary of Defense Certification.--In the case of a contract 
under subsection (b) for the procurement of F-22A aircraft, a 
certification under subsection (i)(1)(A) of section 2306b of title 10, 
United States Code, with respect to that contract may only be submitted 
if the certification includes an additional certification by the 
Secretary that each of the conditions specified in subsection (a) of 
that section has been satisfied with respect to that contract, as 
follows:
        (1) That the use of such contract will result in substantial 
    savings of the total anticipated costs of carrying out the program 
    through annual contracts.
        (2) That the minimum need for the property to be purchased is 
    expected to remain substantially unchanged during the contemplated 
    contract period in terms of production rate, procurement rate, and 
    total quantities.
        (3) That there is a reasonable expectation that throughout the 
    contemplated contract period the Secretary of the Air Force will 
    request funding for the contract at the level required to avoid 
    contract cancellation.
        (4) That there is a stable design for the property to be 
    acquired and that the technical risks associated with such property 
    are not excessive.
        (5) That the estimates of both the cost of the contract and the 
    anticipated cost avoidance through the use of a multiyear contract 
    are realistic.
        (6) That the use of such contract will promote the national 
    security of the United States.
In certifying that the cost savings are substantial, the Secretary 
shall duly consider the historical cost savings that led to a decision 
to proceed with a multiyear procurement contract under section 2306b of 
title 10, United States Code, in the case of previous aviation-related 
multiyear contracts authorized by law dating back to fiscal year 1982.
    (e) FFRDC Cost Report.--The Secretary of Defense shall provide for 
a federally funded research and development center (other than the 
Institute for Defense Analyses) to report on the cost estimates for a 
three year, 60-aircraft, F-22A multiyear procurement program, beginning 
in fiscal year 2007, compared to a corresponding annual procurement 
program.
    (f) Notice-and-Wait Requirement.--Upon submission to Congress of a 
certification referred to in subsection (d) with respect to a proposed 
contract under subsection (b) for the procurement 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.
    (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.

               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.

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

                    (I) supply, maintenance, and other operations 
                manpower required to support the alternative;
                    (II) the number of flight hours required to achieve 
                engine maturity and the year in which that is expected 
                to be achieved; and
                    (III) the total number of engines expected to be 
                procured over the lifetime of the Joint Strike Fighter 
                program; and

                (iii) an evaluation of benefits, other than cost, 
            provided by competition, to include an assessment of 
            improved performance, operational readiness and warfighting 
            capability, risk reduction, technology innovation, and 
            contractor responsiveness.
            (D) A description of the acquisition strategies (including 
        development and production) that were used for, and experience 
        with respect to cost, schedule, and performance under, past 
        acquisition programs for engines for tactical fighter aircraft, 
        including the F-15, F-16, F-18, and F-22 aircraft.
            (E) A comparison of the experiences under past acquisition 
        programs carried out on a sole-source basis with respect to 
        performance, savings, maintainability, reliability, and 
        technical innovation.
            (F) The impact that canceling the F136 competitive engine 
        would have on the high-performance military engine industrial 
        base, and on the Department of Defense's ability to make 
        competitive engine choices for future combat aircraft systems 
        beyond the Joint Strike Fighter.
            (G) Conclusions and recommendations.
        (4) Certifications.--In submitting the report required by 
    paragraph (3), the Comptroller General and the chief executive 
    officer of the federally funded research and development center 
    shall also submit a certification as to whether the Secretary of 
    Defense provided access to sufficient information to enable the 
    Comptroller General or the chief executive officer, as the case may 
    be, to make informed judgments on the matters required to be 
    included in the report.
    (c) Life-Cycle Costs Defined.--In this section, the term ``life-
cycle costs'' includes--
        (1) those elements of cost that would be considered for a life-
    cycle cost analysis for a major defense acquisition program, 
    including procurement of engines, procurement of spare engines, and 
    procurement of engine components and parts; and
        (2) good-faith estimates of routine engine costs (such as 
    performance upgrades and component improvement) that historically 
    have occurred in tactical fighter engine programs.
    SEC. 212. EXPANSION AND EXTENSION OF AUTHORITY TO AWARD PRIZES FOR 
      ADVANCED TECHNOLOGY ACHIEVEMENTS.
    (a) Expansion.--
        (1) In general.--Subsection (a) of section 2374a of title 10, 
    United States Code, is amended--
            (A) by striking ``Director of the Defense Advanced Research 
        Projects Agency'' and inserting ``Director of Defense Research 
        and Engineering and the service acquisition executive for each 
        military department''; and
            (B) by striking ``a program'' and inserting ``programs''.
        (2) Conforming amendments.--Such section is further amended--
            (A) in subsection (b), by striking ``The program'' and 
        inserting ``Each program''; and
            (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.''.
    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 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 Evaluation.--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
        ``(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 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.
        (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 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.
        (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 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.
        (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.
        (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 medium-range 
    ballistic missile, and the danger that Iran will acquire a nuclear 
    weapon and integrate it with a ballistic missile Iran already 
    possesses is a reason for immediate concern.
    (b) Policy.--It is the policy of the United States that the 
Department of Defense accord a priority within the missile defense 
program to the development, testing, fielding, and improvement of 
effective near-term missile defense capabilities, including the ground-
based midcourse defense system, the Aegis ballistic missile defense 
system, the Patriot PAC-3 system, the Terminal High Altitude Area 
Defense system, and the sensors necessary to support such systems.
    SEC. 224. ONE-YEAR EXTENSION OF COMPTROLLER GENERAL ASSESSMENTS OF 
      BALLISTIC MISSILE DEFENSE PROGRAMS.
    Section 232(g) of the National Defense Authorization Act for Fiscal 
Year 2002 (10 U.S.C. 2431 note) is amended--
        (1) in paragraph (1), by striking ``through 2007'' and 
    inserting ``through 2008''; and
        (2) in paragraph (2), by striking ``through 2008'' and 
    inserting ``through 2009''.
    SEC. 225. SUBMITTAL OF PLANS FOR TEST AND EVALUATION OF THE 
      OPERATIONAL CAPABILITY OF THE BALLISTIC MISSILE DEFENSE SYSTEM.
    Section 234(a) of the National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109-163; 119 Stat. 3174; 10 U.S.C. 2431 note) is 
amended by adding at the end the following new paragraph:
        ``(3) Submittal to congress.--Each plan prepared under this 
    subsection and approved by the Director of Operational Test and 
    Evaluation shall be submitted to the congressional defense 
    committees not later than 30 days after the date of the approval of 
    such plan by the Director.''.
    SEC. 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:
    ``(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
            (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;''.
    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.
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 agencies of 
the Department of Defense for expenses, not otherwise provided for, for 
operation and maintenance, in amounts as follows:
        (1) For the Army, $24,416,352,000.
        (2) For the Navy, $31,157,639,000.
        (3) For the Marine Corps, $3,863,462,000.
        (4) For the Air Force, $31,081,257,000.
        (5) For Defense-wide activities, $20,093,876,000.
        (6) For the Army Reserve, $2,260,802,000.
        (7) For the Naval Reserve, $1,275,764,000.
        (8) For the Marine Corps Reserve, $211,311,000.
        (9) For the Air Force Reserve, $2,698,400,000.
        (10) For the Army National Guard, $4,776,421,000.
        (11) For the Air National Guard, $5,292,517,000.
        (12) For the United States Court of Appeals for the Armed 
    Forces, $11,721,000.
        (13) For Environmental Restoration, Army, $413,794,000.
        (14) For Environmental Restoration, Navy, $304,409,000.
        (15) For Environmental Restoration, Air Force, $423,871,000.
        (16) For Environmental Restoration, Defense-wide, $18,431,000.
        (17) For Environmental Restoration, Formerly Used Defense 
    Sites, $282,790,000.
        (18) For Former Soviet Union Threat Reduction programs, 
    $372,128,000.
        (19) For Overseas Humanitarian Disaster and Civic Aid, 
    $63,204,000.
    SEC. 302. WORKING CAPITAL FUNDS.
    Funds are hereby authorized to be appropriated for fiscal year 2007 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for providing capital for working capital and 
revolving funds in amounts as follows:
        (1) For the Defense Working Capital Funds, $161,998,000.
        (2) For the National Defense Sealift Fund, $1,071,932,000.
        (3) For the Defense Working Capital Fund, Defense Commissary, 
    $1,184,000,000.
        (4) For the Pentagon Reservation Maintenance Revolving Fund, 
    $18,500,000.
    SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS.
    (a) Defense Health Program.--Funds are hereby authorized to be 
appropriated for the Department of Defense for fiscal year 2007 for 
expenses, not otherwise provided for, for the Defense Health Program, 
$21,426,621,000, of which--
        (1) $20,894,663,000 is for Operation and Maintenance;
        (2) $135,603,000 is for Research, Development, Test, and 
    Evaluation; and
        (3) $396,355,000 is for Procurement.
    (b) Chemical Agents and Munitions Destruction, Defense.--(1) Funds 
are hereby authorized to be appropriated for the Department of Defense 
for fiscal year 2007 for expenses, not otherwise provided for, for 
Chemical Agents and Munitions Destruction, Defense, $1,277,304,000, of 
which--
            (A) $1,046,290,000 is for Operation and Maintenance; and
            (B) $231,014,000 is for Research, Development, Test, and 
        Evaluation.
    (2) Amounts authorized to be appropriated under paragraph (1) are 
authorized for--
        (A) the destruction of lethal chemical agents and munitions in 
    accordance with section 1412 of the Department of Defense 
    Authorization Act for Fiscal Year 1986 (50 U.S.C. 1521); and
        (B) the destruction of chemical warfare materiel of the United 
    States that is not covered by section 1412 of such Act.
    (c) Drug Interdiction and Counter-Drug Activities, Defense-Wide.--
Funds are hereby authorized to be appropriated for the Department of 
Defense for fiscal year 2006 for expenses, not otherwise provided for, 
for Drug Interdiction and Counter-Drug Activities, Defense-wide, 
$926,890,000.
    (d) Defense Inspector General.--Funds are hereby authorized to be 
appropriated for the Department of Defense for fiscal year 2006 for 
expenses, not otherwise provided for, for the Office of the Inspector 
General of the Department of Defense, $216,297,000, of which--
        (1) $214,897,000 is for Operation and Maintenance; and
        (2) $1,400,000 is for Procurement.

                  Subtitle B--Environmental Provisions

    SEC. 311. REVISION OF REQUIREMENT FOR UNEXPLODED ORDNANCE PROGRAM 
      MANAGER.
    Section 2701(k) of title 10, United States Code, is amended--
        (1) in paragraph (1)--
            (A) by striking ``establish'' and inserting ``designate''; 
        and
            (B) by inserting ``research,'' after ``characterization,'';
        (2) by striking paragraph (2) and redesignating paragraph (3) 
    as paragraph (4); and
        (3) by inserting after paragraph (1) the following new 
    paragraphs:
    ``(2) The position of program manager shall be filled by--
        ``(A) an employee in a position that is equivalent to pay grade 
    O-6 or above; or
        ``(B) a member of the armed forces who is serving in the grade 
    of colonel or, in the case of the Navy, captain, or in a higher 
    grade.
    ``(3) The program manager shall report to the Deputy Under 
Secretary of Defense for Installations and Environment.''.
    SEC. 312. FUNDING OF COOPERATIVE AGREEMENTS UNDER ENVIRONMENTAL 
      RESTORATION PROGRAM.
    Section 2701(d)(2) of title 10, United States Code, is amended by 
adding at the end the following new sentence: ``This two-year 
limitation does not apply to an agreement funded using amounts in the 
Department of Defense Base Closure Account 1990 or the Department of 
Defense Base Closure Account 2005 established under sections 2906 and 
2906A of the Defense Base Closure and Realignment Act of 1990 (part A 
of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note).''.
    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 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.--
        (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:
        (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--
        (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--
            (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 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.
    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.
    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.
        (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:
        (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 of the Chairman of whether the deployment of the 
MCTFS to the Navy is in the best interests of the Department of 
Defense.

                 Subtitle D--Workplace and Depot Issues

    SEC. 331. PERMANENT EXCLUSION OF CERTAIN CONTRACT EXPENDITURES FROM 
      PERCENTAGE LIMITATION ON THE PERFORMANCE OF DEPOT-LEVEL 
      MAINTENANCE.
    (a) Permanent Exclusion.--Section 2474(f) of title 10, United 
States Code, is amended--
        (1) by striking ``(1) Amounts'' and inserting ``Amounts'';
        (2) by striking ``entered into during fiscal years 2003 through 
    2009''; and
        (3) by striking paragraph (2).
    (b) Inclusion of Certain Items in Annual Report.--
        (1) Inclusion of certain items.--Paragraph (2) of section 
    2466(d) of such title is amended to read as follows:
    ``(2) Each report required under paragraph (1) shall include as a 
separate item any expenditure covered by section 2474(f) of this title 
that was made during the fiscal year covered by the report and shall 
specify the amount and nature of each such expenditure.''.
        (2) Conforming amendment.--The heading for subsection (d) of 
    section 2466 of such title is amended to read as follows: ``Annual 
    Report.--''.
    SEC. 332. MINIMUM CAPITAL INVESTMENT FOR CERTAIN DEPOTS.
    (a) Minimum Investment Levels.--Chapter 146 of title 10, United 
States Code, is amended by adding at the end the following new section:

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

    ``(a) Minimum Investment.--Each fiscal year, the Secretary of a 
military department shall invest in the capital budgets of the covered 
depots of that military department a total amount equal to not less 
than six percent of the average total combined workload funded at all 
the depots of that military department for the preceding three fiscal 
years.
    ``(b) Capital Budget.--For purposes of this section, the capital 
budget of a depot includes investment funds spent on depot 
infrastructure, equipment, and process improvement in direct support of 
depot operations.
    ``(c) Waiver.--The Secretary of Defense may waive the requirement 
under subsection (a) with respect to a military department for a fiscal 
year if the Secretary determines that the waiver is necessary for 
reasons of national security. 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:
        ``(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
            (B) for fiscal year 2008, by substituting ``five percent'' 
        for ``six percent''.
        (2) Covered depots.--In this subsection, the term ``covered 
    depot'' has the meaning given that term in subsection (e) of 
    section 2476 of title 10, United States Code, as added by 
    subsection (a).
    SEC. 333. EXTENSION OF TEMPORARY AUTHORITY FOR CONTRACTOR 
      PERFORMANCE OF SECURITY GUARD FUNCTIONS.
    (a) Extension and Limitation on Total Number of Contractors.--
Section 332(c) of the Bob Stump National Defense Authorization Act for 
Fiscal Year 2003 (Public Law 107-314) is amended--
        (1) by striking ``September 30, 2007'' both places it appears 
    and inserting ``September 30, 2009'';
        (2) by redesignating subsection (d) as subsection (e); and
        (3) by inserting after subsection (c) the following new 
    subsection (d):
    ``(d) Limitation.--The total number of personnel employed to 
perform security guard functions under all contracts entered into 
pursuant to this section shall not exceed--
        ``(1) for fiscal year 2007, the total number of such personnel 
    employed under such contracts on October 1, 2006;
        ``(2) for fiscal year 2008, the number equal to 90 percent of 
    the total number of such personnel employed under such contracts on 
    October 1, 2006; and
        ``(3) for fiscal year 2009, the number equal to 80 percent of 
    the total number of such personnel employed under such contracts on 
    October 1, 2006.''.
    (b) Report on Contractor Performance of Security-Guard Functions.--
Not later than February 1, 2007, the Secretary of Defense shall submit 
to the Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives a report on contractor 
performance of security guard functions under section 332 of the Bob 
Stump National Defense Authorization Act for Fiscal Year 2003 (Public 
Law 107-314). The report shall include the following:
        (1) An explanation of progress made toward implementing each of 
    the seven recommendations in the Comptroller General report 
    entitled ``Contract Security Guards: Army's Guard Program Requires 
    Greater Oversight and Reassessment of Acquisition Approach'' (GAO-
    06-284).
        (2) An assessment, taking into consideration the observations 
    made by the Comptroller General on the report of the Department of 
    Defense of November 2005 that is entitled ``Department of Defense 
    Installation Security Guard Requirement Assessment and Plan'', of 
    the following:
            (A) The cost-effectiveness of using contractors rather than 
        Department of Defense employees to perform security-guard 
        functions.
            (B) The performance of contractors employed as security 
        guards compared with the performance of military personnel who 
        have served as security guards.
            (C) Specific results of on-site visits made by officials 
        designated by the Secretary of Defense to military 
        installations using contractors to perform security-guard 
        functions.
    (c) Contract Limitation.--No contract may be entered into under 
section 332 of the Bob Stump National Defense Authorization 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.
        (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.
        (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:
        (1) An analysis of different approaches to crew rotation and 
    the degree of forward presence each approach would provide.
        (2) A comparison of the degree of forward presence provided by 
    the fleet under the long-term shipbuilding plan of the Navy with 
    and without the widespread use of crew rotation.
        (3) The long-term benefits and costs of using crew rotation on 
    Navy ships.
    SEC. 343. REPORT ON ARMY LIVE-FIRE RANGES IN HAWAII.
    Not later than March 1, 2007, the Secretary of the Army shall 
submit to Congress a report on the adequacy of the live-fire ranges of 
the Army in the State of Hawaii with respect to current and future 
training requirements. The report shall include the following:
        (1) An evaluation of the capacity of the existing live-fire 
    ranges to meet the training requirements of the Army, including the 
    training requirements of Stryker Brigade Combat Teams.
        (2) A description of any existing plan to modify or expand any 
    range in Hawaii for the purpose of meeting anticipated live-fire 
    training requirements.
        (3) A description of the current live-fire restrictions at the 
    Makua Valley range and the effect of these restrictions on unit 
    readiness.
        (4) Cost and schedule estimates for the construction of new 
    ranges or the modification of existing ranges that are necessary to 
    support future training requirements if existing restrictions on 
    training at the Makua Valley range remain in place.
    SEC. 344. COMPTROLLER GENERAL REPORT ON JOINT STANDARDS AND 
      PROTOCOLS FOR ACCESS CONTROL SYSTEMS AT DEPARTMENT OF DEFENSE 
      INSTALLATIONS.
    (a) Report Required.--Not later than one year after the date of the 
enactment of this Act, the Comptroller General shall submit to the 
Committee on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report containing the 
assessment of the Comptroller General of--
        (1) the extent to which consistency exists in standards, 
    protocols, and procedures for access control across installations 
    of the Department of Defense; and
        (2) whether the establishment of joint standards and protocols 
    for access control at such installations would be likely to--
            (A) address any need of the Department identified by the 
        Comptroller General; or
            (B) improve access control across such installations by 
        providing greater consistency and improved force protection.
    (b) Issues to Be Assessed.--In conducting the assessment required 
by subsection (a), the Comptroller General shall assess the extent to 
which each installation of the Department of Defense has or would 
benefit from having an access control system with the ability to--
        (1) electronically check any identification card issued by any 
    Federal agency or any State or local government within the United 
    States, including any identification card of a visitor 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--
            (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.
    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.
    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.

                       Subtitle F--Other Matters

    SEC. 351. DEPARTMENT OF DEFENSE STRATEGIC POLICY ON PREPOSITIONING 
      OF MATERIEL AND EQUIPMENT.
    (a) Strategic Policy Required.--Chapter 131 of title 10, United 
States Code, is amended by adding at the end the following new section:

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

    ``(a) Policy Required.--The Secretary of Defense shall maintain a 
strategic policy on the programs of the Department of Defense for the 
prepositioning of materiel and equipment. Such policy shall take into 
account national security threats, strategic mobility, service 
requirements, and the requirements of the combatant commands.
    ``(b) Limitation of Diversion of Prepositioned Materiel.--The 
Secretary of a military department may not divert materiel or equipment 
from prepositioned stocks except--
        ``(1) in accordance with a change made by the Secretary of 
    Defense to the policy maintained under subsection (a); or
        ``(2) for the purpose of directly supporting a contingency 
    operation or providing humanitarian assistance under chapter 20 of 
    this title.
    ``(c) Congressional Notification.--The Secretary of Defense may not 
implement or change the policy required under subsection (a) until the 
Secretary submits to the congressional defense committees a report 
describing the policy or change to the policy.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

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

    (c) Deadline for Establishment of Policy.--
        (1) Deadline.--Not later than six months after the date of the 
    enactment of this Act, the Secretary of Defense shall establish the 
    strategic policy on the programs of the Department of Defense for 
    the prepositioning of materiel and equipment required under section 
    2229 of title 10, United States Code, as added by subsection (a).
        (2) Limitation on diversion of prepositioned materiel.--During 
    the period beginning on the date of the enactment of this Act and 
    ending on the date on which the Secretary of Defense submits the 
    report required under section 2229(c) of title 10, United States 
    Code, on the policy referred to in paragraph (1), the Secretary of 
    a military department may not divert materiel or equipment from 
    prepositioned stocks except for the purpose of directly supporting 
    a contingency operation or providing humanitarian assistance under 
    chapter 20 of that title.
    SEC. 352. AUTHORITY TO MAKE DEPARTMENT OF DEFENSE HORSES AVAILABLE 
      FOR ADOPTION.
    (a) Inclusion of Department of Defense Horses in Existing 
Authority.--Section 2583 of title 10, United States Code, is amended--
        (1) in the section heading, by striking ``working dogs'' and 
    inserting ``animals'';
        (2) by striking ``working'' each place it appears;
        (3) by striking ``dog'' and ``dogs'' each place they appear and 
    inserting ``animal'' and ``animals'', respectively;
        (4) by striking ``dog's'' in paragraphs (1) and (2) of 
    subsection (a) and inserting ``animal's'';
        (5) by striking ``a dog's adoptability'' in subsection (b) and 
    inserting ``the adoptability of the animal''; and
        (6) by adding at the end the following new subsection:
    ``(g) Military Animal Defined.--In this section, the term `military 
animal' means the following:
        ``(1) A military working dog.
        ``(2) A horse owned by the Department of Defense.''.
    (b) Clerical Amendment.--The item relating to such section in the 
table of sections at the beginning of chapter 153 of such title is 
amended to read as follows:

``2583. Military animals: transfer and adoption.''.
    SEC. 353. SALE AND USE OF PROCEEDS OF RECYCLABLE MUNITIONS 
      MATERIALS.
    (a) Establishment of Program.--Chapter 443 of title 10, United 
States Code, is amended by adding at the end the following new section:

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

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

``4690. Recyclable munitions materials: sale; use of proceeds.''.
    SEC. 354. RECOVERY AND TRANSFER TO CORPORATION FOR THE PROMOTION OF 
      RIFLE PRACTICE AND FIREARMS SAFETY OF CERTAIN FIREARMS, 
      AMMUNITION, AND PARTS GRANTED TO FOREIGN COUNTRIES.
    (a) Authority to Recover; Transfer to Corporation.--Subchapter II 
of chapter 407 of title 36, United States Code, is amended by inserting 
after section 40728 the following new section:

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

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

``40728A. Recovery of excess firearms, ammunition, and parts granted to 
          foreign countries and transfer to corporation.''.
    SEC. 355. EXTENSION OF DEPARTMENT OF DEFENSE TELECOMMUNICATIONS 
      BENEFIT PROGRAM.
    (a) Termination at End of Contingency Operation.--Subsection (c) of 
section 344 of the National Defense Authorization Act for Fiscal Year 
2004 (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
        (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.
    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:
            (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 programmed funding to 
fully meet the requirements for that fiscal year for each of the 
following:
        (1) Ship steaming days per quarter for deployed and non-
    deployed ship operations.
        (2) Projected depot maintenance requirements for ships and 
    aircraft.
    (c) Limitation.--Of the funds available for Operation and 
Maintenance, Defense-Wide, for the Office of the Secretary of Defense 
for each of fiscal years 2008, 2009, and 2010, no more than 80 percent 
may be obligated in that fiscal year until after the submission of the 
certification required by subsection (b) for the annual budget 
submitted in February of that year for the following fiscal year.
    (d) Annual Report.--Beginning with the fiscal year 2008 budget of 
the President, the Secretary of the Navy shall submit to the 
congressional defense committees an annual report (to be submitted when 
the budget is submitted) setting forth the progress toward funding the 
requirements of subsection (a). The annual reporting requirement shall 
terminate after the fiscal year 2010 budget submission. Each such 
report shall include the following:
        (1) An assessment of the deployed and non-deployed quarterly 
    ship steaming day requirements, itemized by active-duty component 
    and reserve component.
        (2) An assessment of the associated budget request for each of 
    the following:
            (A) Deployed and non-deployed ship steaming days per 
        quarter.
            (B) Chief of Naval Operations ship depot maintenance 
        availabilities, shown by type of maintenance availability and 
        by location.
            (C) Air depot maintenance workload, shown by type of 
        airframe and by location.
    (e) Report on Riverine Squadrons.--
        (1) Report required.--The Secretary of the Navy shall submit to 
    the congressional defense committees a report on the Riverine 
    Squadrons of the Navy. The report shall be submitted with the 
    President's budget for fiscal year 2008 and shall include the 
    following:
            (A) The total amount funded for fiscal year 2006 and 
        projected funding for fiscal year 2007 and fiscal year 2008 for 
        those squadrons.
            (B) The operational requirement of the commander of the 
        United States Central Command for those squadrons and the 
        corresponding Department of Navy concept of operations for 
        deployments of those squadrons to support Operation Iraqi 
        Freedom or Operation Enduring Freedom.
            (C) The military table of organization and equipment for 
        those squadrons.
            (D) A summary of existing Department of Navy equipment that 
        has been assigned in fiscal year 2006 or will be provided in 
        fiscal year 2007 and fiscal year 2008 for those squadrons.
            (E) The Department of Navy directive for the mission 
        assigned to those squadrons.
        (2) Limitation.--Of the amount made available for fiscal year 
    2007 to the Department of Navy for operation and maintenance for 
    the Office of the Secretary of the Navy, not more 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 Department of 
Defense.--Subsection (a) of section 2636a of title 10, United States 
Code, is amended by striking ``of baggage and household effects for 
members of the armed forces at Government expense'' and inserting ``at 
Government expense of baggage and household effects for members of the 
armed forces or civilian employees of the Department of Defense (or 
both)''.
    (b) Requirement for Payment and Deduction Upon Failure of Carrier 
to Settle.--Effective 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''.
        (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.
        (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 brigades and battalions, increased unit manning, force 
        stabilization and shaping, and rebalancing of the active and 
        reserve component forces.
        ``(4) Fiscal-year 2007 baseline.--In this subsection, the term 
    `fiscal-year 2007 baseline', with respect to the Army and Marine 
    Corps, means the active-duty end strength authorized for those 
    services in section 401 of the John Warner National Defense 
    Authorization Act for Fiscal Year 2007.
        ``(5) Active-duty end strength.--In this subsection, the term 
    `active-duty end strength' means the strength for active-duty 
    personnel of one of the Armed Forces as of the last day of a fiscal 
    year.
    ``(b) Relationship to Presidential Waiver Authority.--Nothing in 
this section shall be construed to limit the President's authority 
under section 123a of title 10, United States Code, to waive any 
statutory end strength in a time of war or national emergency.
    ``(c) Relationship to Other Variance Authority.--The authority 
under subsection (a) is in addition to the authority to vary authorized 
end strengths that is provided in subsections (e) and (f) of section 
115 of title 10, United States Code.
    ``(d) Budget Treatment.--
        ``(1) Fiscal year 2008 budget.--The budget for the Department 
    of Defense for fiscal year 2008 as submitted to Congress shall 
    comply, with respect to funding, with subsections (c) and (d) of 
    section 691 of title 10, United States Code.
        ``(2) Other increases.--If the Secretary of Defense plans to 
    increase the Army or Marine Corps active duty end strength for a 
    fiscal year under subsection (a), then the budget for the 
    Department of Defense for that fiscal year as submitted to Congress 
    shall include the amounts necessary for funding that active duty 
    end strength in excess of the fiscal year 2007 active duty end 
    strength authorized for that service under section 401 of the John 
    Warner National Defense Authorization Act for Fiscal Year 2007.''.

                       Subtitle B--Reserve Forces

    SEC. 411. END STRENGTHS FOR SELECTED RESERVE.
    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 
30, 2007, as follows:
        (1) The Army National Guard of the United States, 350,000.
        (2) The Army Reserve, 200,000.
        (3) The Navy Reserve, 71,300.
        (4) The Marine Corps Reserve, 39,600.
        (5) The Air National Guard of the United States, 107,000.
        (6) The Air Force Reserve, 74,900.
        (7) The Coast Guard Reserve, 10,000.
    (b) Adjustments.--The end strengths prescribed by subsection (a) 
for the Selected Reserve of any reserve component shall be 
proportionately reduced by--
        (1) the total authorized strength of units organized to serve 
    as units of the Selected Reserve of such component which are on 
    active duty (other than for training) at the end of the fiscal 
    year; and
        (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.
    (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.
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.

                 Subtitle D--General Service Authorities

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

                  Subtitle E--Military Justice Matters

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

                   Subtitle F--Decorations and Awards

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

               Subtitle G--Matters Relating to Casualties

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

     Subtitle H--Impact Aid and Defense Dependents Education System

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

                Subtitle I--Armed Forces Retirement Home

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

                           Subtitle J--Reports

Sec. 581. Report on personnel requirements for airborne assets 
          identified as Low-Density, High-Demand Airborne Assets.
Sec. 582. Report on feasibility of establishment of Military Entrance 
          Processing Command station on Guam.
Sec. 583. Inclusion in annual Department of Defense report on sexual 
          assaults of information on results of disciplinary actions.
Sec. 584. Report on provision of electronic copy of military records on 
          discharge or release of members from the Armed Forces.
Sec. 585. Report on omission of social security account numbers from 
          military identification cards.
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 position 
covered by this section shall, while serving in such position and while 
remaining on active duty, continue to receive military pay and 
allowances and shall not receive the pay prescribed for such position.
    ``(2) Funds from which pay and allowances under paragraph (1) are 
paid to an officer while so serving shall be reimbursed as follows:
        ``(A) For an officer serving in a position within the Central 
    Intelligence Agency, such reimbursement shall be made from funds 
    available to the Director of the Central Intelligence Agency.
        ``(B) For an officer serving in a position within the Office of 
    the Director of National Intelligence, such reimbursement shall be 
    made from funds available to the Director of National Intelligence.
    ``(g) Covered Positions.--The positions covered by this section are 
the positions specified in subsections (b) and (c) and the positions 
designated under subsection (d).''.
    (b) Clerical Amendments.--
        (1) The heading of such section is amended to read as follows:

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

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

``528. Officers serving in certain intelligence positions: military 
          status; exclusion from distribution and strength limitations; 
          pay and allowances.''.
    SEC. 502. EXTENSION OF AGE FOR MANDATORY RETIREMENT FOR ACTIVE-DUTY 
      GENERAL AND FLAG OFFICERS.
    (a) Revised Age Limits for General and Flag Officers.--Chapter 63 
of title 10, United States Code, is amended by inserting after section 
1252 the following new section:

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

    ``(a) General Rule.--Unless retired or separated earlier, each 
regular commissioned officer of the Army, Navy, Air Force, or Marine 
Corps serving in a general or flag officer grade shall be retired on 
the first day of the month following the month in which the officer 
becomes 64 years of age.
    ``(b) Exception for Officers Serving in O-9 and O-10 Positions.--In 
the case of an officer serving in a position that carries a grade above 
major general or rear admiral, the retirement under subsection (a) of 
that officer may be deferred--
        ``(1) by the President, but such a deferment may not extend 
    beyond the first day of the month following the month in which the 
    officer becomes 68 years of age; or
        ``(2) by the Secretary of Defense, but such a deferment may not 
    extend beyond the first day of the month following the month in 
    which the officer becomes 66 years of age.''.
    (b) Restatement and Modification of Current Age Limits for Other 
Officers.--Section 1251 of such title is amended to read as follows:

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

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

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

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

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

    (d) Conforming Amendments.--Chapter 71 of such title is amended--
        (1) in the table in section 1401(a), by inserting at the bottom 
    of the column under the heading ``For sections'', in the entry for 
    Formula Number 5, the following: ``1253''; and
        (2) in the table in section 1406(b)(1), by inserting at the 
    bottom of the first column the following: ``1253''.
    SEC. 503. INCREASED MANDATORY RETIREMENT AGES FOR RESERVE OFFICERS.
    (a) Major Generals and Rear Admirals.--
        (1) Increased age.--Section 14511 of title 10, United States 
    Code, is amended by striking ``62 years'' and inserting ``64 
    years''.
        (2) Conforming amendment.--The heading of such section is 
    amended to read as follows:

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

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

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

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

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

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

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

    (e) Conforming Amendments.--Section 14508 of such title is 
amended--
        (1) in subsection (c), by striking ``60 years'' and inserting 
    ``62 years''; and
        (2) in subsection (d), by striking ``62 years'' and inserting 
    ``64 years''.
    (f) Clerical Amendment.--The table of sections at the beginning of 
chapter 1407 of such title is amended by striking the items relating to 
sections 14509, 14510, 14511, and 14512 and inserting the following new 
items:

``14509. Separation at age 62: reserve officers in grades below 
          brigadier general or rear admiral (lower half).
``14510. Separation at age 62: brigadier generals and rear admirals 
          (lower half).
``14511. Separation at age 64: major generals and rear admirals.
``14512. Separation at age 66: officers holding certain offices.''.
    SEC. 504. STANDARDIZATION OF GRADE OF SENIOR DENTAL OFFICER OF THE 
      AIR FORCE WITH THAT OF SENIOR DENTAL OFFICER OF THE ARMY.
    (a) Air Force Assistant Surgeon General for Dental Services.--
Section 8081 of title 10, United States Code, is amended by striking 
``brigadier general'' in the second sentence and inserting ``major 
general''.
    (b) 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''.
    SEC. 507. GRADE AND EXCLUSION FROM ACTIVE-DUTY GENERAL AND FLAG 
      OFFICER DISTRIBUTION AND STRENGTH LIMITATIONS OF OFFICER SERVING 
      AS ATTENDING PHYSICIAN TO THE CONGRESS.
    (a) Grade.--
        (1) Regular officer.--(A) Chapter 41 of title 10, United States 
    Code, is amended by adding at the end the following new section:

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

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

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

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

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

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

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

    (b) Distribution Limitations.--Section 525 of such title is amended 
by adding at the end the following new subsection:
    ``(f) An officer while serving as Attending Physician to the 
Congress is in addition to the number that would otherwise be permitted 
for that officer's armed force for officers serving on active duty in 
grades above brigadier general or rear admiral (lower half) under 
subsection (a).''.
    (c) Active-Duty Strength Limitations.--Section 526 of such title is 
amended by adding at the end the following new subsection:
    ``(f) Exclusion of Attending Physician to the Congress.--The 
limitations of this section do not apply to the general or flag officer 
who is serving as Attending Physician to the Congress.''.
    SEC. 508. MODIFICATION OF QUALIFICATIONS FOR LEADERSHIP OF THE 
      NAVAL POSTGRADUATE SCHOOL.
     Subsection (a) of section 7042 of title 10, United States Code, is 
amended to read as follows:
    ``(a)(1) The President of the Naval Postgraduate School shall be 
one of the following:
        ``(A) An active-duty officer of the Navy or Marine Corps in a 
    grade not below the grade of captain, or colonel, respectively, who 
    is assigned or detailed to such position.
        ``(B) A civilian individual, including an individual who was 
    retired from the Navy or Marine Corps in a grade not below captain, 
    or colonel, respectively, who has the qualifications 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 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 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.''.
    (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.''.
    (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 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)''.
    (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 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 Secretary to 
grant such a waiver may be delegated only to the Chairman of the Joint 
Chiefs of Staff.
    ``(4) The Secretary of Defense shall ensure that, of those joint 
duty assignment positions that are filled by general or flag officers, 
a substantial portion are among those positions that are designated 
under paragraph (2) as critical joint duty assignment positions.''.
    (c) Career Guidelines.--Subsection (e) of such section is amended 
by striking ``officers with the joint specialty'' and inserting 
``officers to achieve joint qualification and for officers who have 
been designated as joint qualified''.
    (d) Technical Amendment Regarding Treatment of Certain Service.--
Subsection (f) of such section is amended by striking ``section 
619(e)(1)'' and inserting ``section 619a''.
    (e) Clerical Amendments.--
        (1) Section heading.--The heading of such section is amended to 
    read as follows:

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

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

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

    (f) 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.
            (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;
        ``(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.

                 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):
    ``(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 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.
        ``(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;
                ``(ii) members of foreign military forces (under the 
            same authorities and restrictions applicable to active-duty 
            members providing such instruction or training);
                ``(iii) Department of Defense contractor personnel; or
                ``(iv) Department of Defense civilian employees.''.
    SEC. 526. GOVERNOR'S AUTHORITY TO ORDER MEMBERS TO ACTIVE GUARD AND 
      RESERVE DUTY.
    (a) In General.--Chapter 3 of title 32, United States Code, is 
amended by adding at the end the following new section:

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

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

``328. Active Guard and Reserve duty: Governor's authority.''.
    SEC. 527. EXPANSION OF OPERATIONS OF CIVIL SUPPORT TEAMS.
    (a) In General.--Section 12310(c) of title 10, United States Code, 
is amended--
        (1) in paragraph (1)--
            (A) by striking ``involving--'' and inserting ``involving 
        any of the following:''; and
            (B) by striking subparagraphs (A) and (B) and inserting the 
        following:
        ``(A) The use or threatened use of a weapon of mass destruction 
    (as defined in section 12304(i)(2) of this title) in the United 
    States.
        ``(B) A terrorist attack or threatened terrorist attack in the 
    United States that results, or could result, in catastrophic loss 
    of life or property.
        ``(C) The intentional or unintentional release of nuclear, 
    biological, radiological, or toxic or poisonous chemical materials 
    in the United States that results, or could result, in catastrophic 
    loss of life or property.
        ``(D) A natural or manmade disaster in the United States that 
    results in, or could result in, catastrophic loss of life or 
    property.'';
        (2) by amending paragraph (3) to read as follows:
    ``(3) A Reserve may perform duty described in paragraph (1) only 
while assigned to a reserve component weapons of mass destruction civil 
support team.''; and
        (3) by adding at the end the following new paragraph:
    ``(7) In this subsection, the term `United States' includes the 
Commonwealth of Puerto Rico, Guam, and the Virgin Islands.''.
    (b) Technical and Conforming Amendments.--Such section is further 
amended--
        (1) by striking the subsection heading and inserting 
    ``Operations Relating to Defense Against Weapons of Mass 
    Destruction and Terrorist Attacks.--'';
        (2) in paragraph (5), by striking ``rapid assessment element 
    team'' and inserting ``weapons of mass destruction civil support 
    team''; and
        (3) in paragraph (6)--
            (A) in the matter preceding subparagraph (A), by striking 
        ``paragraph (3)'' and inserting ``paragraphs (1) and (3)''; and
            (B) in subparagraph (B), by striking ``paragraph (3)(B)'' 
        and inserting ``paragraph (3)''.
    SEC. 528. MODIFICATION OF AUTHORITIES RELATING TO THE COMMISSION ON 
      THE NATIONAL GUARD AND RESERVES.
    (a) Annuities and Pay of Members on Federal Reemployment.--
Subsection (e) of section 513 of the Ronald W. Reagan National Defense 
Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 
1882), as amended by section 516 of the National Defense Authorization 
Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3237), is 
further amended by adding at the end the following new paragraph:
    ``(3) If warranted by circumstances described in subparagraph (A) 
or (B) of section 8344(i)(1) of title 5, United States Code, or by 
circumstances described in subparagraph (A) or (B) of section 
8468(f)(1) of such title, as applicable, the chairman of the Commission 
may exercise, with respect to the members of the Commission, the same 
waiver authority as would be available to the Director of the Office of 
Personnel Management under such section.''.
    (b) Final Report.--Subsection (f)(2) of such section 513 (118 Stat. 
1882) is amended by striking ``Not later than one year after the first 
meeting of the Commission'' and inserting ``Not later than January 31, 
2008''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as of October 28, 2004, as if included in the enactment of the 
Ronald W. Reagan National Defense Authorization Act for Fiscal Year 
2005. The amendment made by subsection (a) shall apply to members of 
the Commission on the National Guard and Reserves appointed on or after 
that date.
    SEC. 529. ADDITIONAL MATTERS TO BE REVIEWED BY COMMISSION ON THE 
      NATIONAL GUARD AND RESERVES.
    (a) Additional Matters To Be Reviewed by Commission.--The 
Commission on the National Guard and Reserves shall include among the 
matters it studies (in addition to the matters specified in subsection 
(c) of the commission charter) each of the following:
        (1) National guard bureau enhancement proposals.--The 
    advisability and feasibility of implementing the provisions of S. 
    2658 and H.R. 5200 of the 109th Congress, as introduced in the 
    Senate and the House of Representatives, respectively, on April 26, 
    2006.
        (2) Chief of national guard bureau.--As an alternative to 
    implementation of the provisions of the bills specified in 
    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.--
        (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.
    SEC. 532. REVISION AND CLARIFICATION OF REQUIREMENTS WITH RESPECT 
      TO SURVEYS AND REPORTS CONCERNING SEXUAL HARASSMENT AND SEXUAL 
      VIOLENCE AT THE SERVICE ACADEMIES.
    (a) Codification and Revision to Existing Requirement for Service 
Academy Policy on Sexual Harassment and Sexual Violence.--
        (1) United states military academy.--Chapter 403 of title 10, 
    United States Code, is amended by adding at the end the following 
    new section:

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

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

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

    ``(a) Required Policy.--Under guidance prescribed by the Secretary 
of Defense, the Secretary of the Navy shall direct the Superintendent 
of the Naval Academy to prescribe a policy on sexual harassment and 
sexual violence applicable to the midshipmen and other personnel of the 
Naval Academy.
    ``(b) Matters To Be Specified in Policy.--The policy on sexual 
harassment and sexual violence prescribed under this section shall 
include specification of the following:
        ``(1) Programs to promote awareness of the incidence of rape, 
    acquaintance rape, and other sexual offenses of a criminal nature 
    that involve midshipmen or other Academy personnel.
        ``(2) Procedures that a midshipman should follow in the case of 
    an occurrence of sexual harassment or sexual violence, including--
            ``(A) if the midshipman chooses to report an occurrence of 
        sexual harassment or sexual violence, a specification of the 
        person or persons to whom the alleged offense should be 
        reported and the options for confidential reporting;
            ``(B) a specification of any other person whom the victim 
        should contact; and
            ``(C) procedures on the preservation of evidence 
        potentially necessary for proof of criminal sexual assault.
        ``(3) Procedures for disciplinary action in cases of alleged 
    criminal sexual assault involving a midshipman or other Academy 
    personnel.
        ``(4) Any other sanction authorized to be imposed in a 
    substantiated case of sexual harassment or sexual violence 
    involving a midshipman or other Academy personnel in rape, 
    acquaintance rape, or any other criminal sexual offense, whether 
    forcible or nonforcible.
        ``(5) Required training on the policy for all midshipmen and 
    other Academy personnel, including the specific training required 
    for personnel who process allegations of sexual harassment or 
    sexual violence involving Academy personnel.
    ``(c) Annual Assessment.--(1) The Secretary of Defense, through the 
Secretary of the Navy, shall direct the Superintendent to conduct at 
the Academy during each Academy program year an assessment, to be 
administered by the Department of Defense, to determine the 
effectiveness of the policies, training, and procedures of the Academy 
with respect to sexual harassment and sexual violence involving Academy 
personnel.
    ``(2) For the assessment at the Academy under paragraph (1) with 
respect to an Academy program year that begins in an odd-numbered 
calendar year, the Secretary of the Navy shall conduct a survey, to be 
administered by the Department of Defense, of Academy personnel--
        ``(A) to measure--
            ``(i) the incidence, during that program year, of sexual 
        harassment and sexual violence events, on or off the Academy 
        reservation, that have been reported to officials of the 
        Academy; and
            ``(ii) the incidence, during that program year, of sexual 
        harassment and sexual violence events, on or off the Academy 
        reservation, that have not been reported to officials of the 
        Academy; and
        ``(B) to assess the perceptions of Academy personnel of--
            ``(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:

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

    ``(a) Required Policy.--Under guidance prescribed by the Secretary 
of Defense, the Secretary of the Air Force shall direct the 
Superintendent of the Academy to prescribe a policy on sexual 
harassment and sexual violence applicable to the cadets and other 
personnel of the Academy.
    ``(b) Matters to Be Specified in Policy.--The policy on sexual 
harassment and sexual violence prescribed under this section shall 
include specification of the following:
        ``(1) Programs to promote awareness of the incidence of rape, 
    acquaintance rape, and other sexual offenses of a criminal nature 
    that involve cadets or other Academy personnel.
        ``(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 odd-numbered 
calendar year, the Secretary of the Air Force shall conduct a survey, 
to be administered by the Department of Defense, of Academy personnel--
        ``(A) to measure--
            ``(i) the incidence, during that program year, of sexual 
        harassment and sexual violence events, on or off the Academy 
        reservation, that have been reported to officials of the 
        Academy; and
            ``(ii) the incidence, during that program year, of sexual 
        harassment and sexual violence events, on or off the Academy 
        reservation, that have not been reported to officials of the 
        Academy; and
        ``(B) to assess the perceptions of Academy personnel of--
            ``(i) the policies, training, and procedures on sexual 
        harassment and sexual violence involving Academy personnel;
            ``(ii) the enforcement of such policies;
            ``(iii) the incidence of sexual harassment and sexual 
        violence involving Academy personnel; and
            ``(iv) any other issues relating to sexual harassment and 
        sexual violence involving Academy personnel.
    ``(d) Annual Report.--(1) The Secretary of the Air Force shall 
direct the Superintendent of the Academy to submit to the Secretary a 
report on sexual harassment and sexual violence involving cadets 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.--
        (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' 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:

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

    ``(a) Detail Authorized.--The Secretary of each military department 
may detail commissioned officers of the armed forces as students at 
accredited medical schools or schools of osteopathy located in the 
United States for a period of training leading to the degree of doctor 
of medicine. No more than 25 officers from each military department may 
commence such training in any single fiscal year.
    ``(b) Eligibility for Detail.--To be eligible for detail under 
subsection (a), an officer must be a citizen of the United States and 
must--
        ``(1) have served on active duty for a period of not less than 
    two years nor more than six years and be in the pay grade 0-3 or 
    below as of the time the training is to begin; and
        ``(2) sign an agreement that unless sooner separated the 
    officer will--
            ``(A) complete the educational course of medical training;
            ``(B) accept transfer or detail as a medical officer within 
        the military department concerned when the officer's training 
        is completed; and
            ``(C) agree to serve, following completion of the officer's 
        training, on active duty (or on active duty and in the Selected 
        Reserve) for a period as specified pursuant to subsection (c).
    ``(c) Service Obligation.--An agreement under subsection (c) shall 
provide that the officer shall serve on active duty for two years for 
each year or part thereof of the officer's medical training under 
subsection (a), except that the agreement may authorize the officer to 
serve a portion of the officer's service obligation on active duty and 
to complete the service obligation that remains upon separation from 
active duty in the Selected Reserve, in which case the officer shall 
serve three years in the Selected Reserve for each year or part thereof 
of the officer's medical training under subsection (a) for any service 
obligation that was not completed before separation from active duty.
    ``(d) Selection of Officers for Detail.--Officers detailed for 
medical training under subsection (a) shall be selected on a 
competitive basis by the Secretary of the military department 
concerned.
    ``(e) Relation of Service Obligations to Other Service 
Obligations.--Any service obligation incurred by an officer under an 
agreement entered into under subsection (b) shall be in addition to any 
service obligation incurred by the officer under any other provision of 
law or agreement.
    ``(f) Expenses.--Expenses incident to the detail of officers under 
this section shall be paid from any funds appropriated for the military 
department concerned.
    ``(g) Failure to Complete Program.--(1) An officer who is dropped 
from a program of medical training to which detailed under subsection 
(a) for deficiency in conduct or studies, or for other reasons, may be 
required to perform active duty in an appropriate military capacity in 
accordance with the active duty obligation imposed on the officer under 
regulations issued by the Secretary of Defense for purposes of this 
section.
    ``(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 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:

``Sec. 2033. Instructor qualifications

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

``2033. Instructor qualifications.''.
    SEC. 540. EXPANSION OF MEMBERS ELIGIBLE TO BE EMPLOYED TO PROVIDE 
      JUNIOR RESERVE OFFICERS' TRAINING CORPS INSTRUCTION.
    (a) Eligibility of ``Gray-Area'' Guard and Reserve Members.--
Section 2031 of title 10, United States Code, is amended by adding at 
the end the following new subsection:
    ``(e) Instead of, or in addition to, detailing officers and 
noncommissioned officers on active duty under subsection (c)(1) and 
authorizing the employment of retired officers and noncommissioned 
officers who are in receipt of retired pay and members of the Fleet 
Reserve and Fleet Marine Corps Reserve under subsection (d), the 
Secretary of the military department concerned may authorize qualified 
institutions to employ as administrators and instructors in the program 
officers and noncommissioned officers who are under 60 years of age and 
who, but for age, would be eligible for retired pay for non-regular 
service under section 12731 of this title and whose qualifications are 
approved by the Secretary and the institution concerned and who request 
such employment, subject to the following:
        ``(1) The Secretary concerned shall pay to the institution an 
    amount equal to one-half of the amount paid to the member by the 
    institution for any period, up to a maximum of one-half of the 
    difference between--
            ``(A) the retired or retainer pay for an active duty 
        officer or noncommissioned officer of the same grade and years 
        of service for such period; and
            ``(B) the active duty pay and allowances which the member 
        would have received for that period if on active duty.
        ``(2) Notwithstanding the limitation in paragraph (1), the 
    Secretary concerned may pay to the institution more than one-half 
    of the amount paid to the member by the institution if (as 
    determined by the Secretary)--
            ``(A) the institution is in an educationally and 
        economically deprived area; and
            ``(B) the Secretary determines that such action is in the 
        national interest.
        ``(3) Payments by the Secretary concerned under this subsection 
    shall be made from funds appropriated for that purpose.
        ``(4) Amounts may be paid under this subsection with respect to 
    a member after the member reaches the age of 60.
        ``(5) Notwithstanding any other provision of law, a member 
    employed by a qualified institution pursuant to an authorization 
    under this subsection is not, while so employed, considered to be 
    on active duty or inactive duty training for any purpose.''.
    (b) Clarification of Status of Retired Members Providing 
Instruction.--Subsection (d) of such section is amended in the matter 
preceding paragraph (1) by inserting ``who are in receipt of retired 
pay'' after ``retired officers and noncommissioned officers''.
    SEC. 541. 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 
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)''.
    (d) Deadline for Submission of Previously Required Report.--The 
report required by subsection (c) of section 526 of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 
Stat. 3246), relating to the rationale and plans of the Navy to provide 
enlisted members an opportunity to obtain graduate degrees, shall be 
submitted, in accordance with that subsection, not later than March 30, 
2007.
    (e) Repeal of Requirement for Report on Pilot Program.--
        (1) Repeal.--Subsection (d) of section 526 of the National 
    Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 
    119 Stat. 3246) is repealed.
        (2) Conforming amendment.--Subsection (c)(2) of such section is 
    amended by striking ``, particularly in the career fields under 
    consideration for the pilot program referred to in subsection 
    (d)''.
    (f) Report on Use of NPS and AFIT.--Not later than March 30, 2007, 
the Secretary of the Navy and the Secretary of the Air Force shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives a joint 
report on the manner by which each Secretary intends to use the Naval 
Postgraduate School and the Air Force Institute of Technology during 
fiscal years 2008 through 2013 to meet the overall requirements of the 
Navy and Marine Corps and of the Air Force for enlisted members with 
graduate degrees. The report shall include the following:
        (1) The numbers and occupational specialities of enlisted 
    members that each Secretary plans to enroll as candidates for 
    graduate degrees each year in each of the two schools.
        (2) A description of the graduate degrees that those enlisted 
    members will pursue at those schools.
        (3) Other matters that the two Secretaries jointly consider to 
    be useful for the committees to better understand the future role 
    that the two schools will each have in meeting service requirements 
    for enlisted members with graduate degrees.

                Subtitle D--General Service Authorities

    SEC. 546. TEST OF UTILITY OF TEST PREPARATION GUIDES AND EDUCATION 
      PROGRAMS IN ENHANCING RECRUIT CANDIDATE PERFORMANCE ON THE ARMED 
      SERVICES VOCATIONAL APTITUDE BATTERY (ASVAB) AND ARMED FORCES 
      QUALIFICATION TEST (AFQT).
    (a) Requirement for Test.--The Secretary of Defense shall conduct a 
test of the utility of commercially available test preparation guides 
and education programs designed to assist recruit candidates achieve 
scores on military recruit qualification testing that better reflect 
the full potential of those recruit candidates in terms of aptitude and 
mental category. The test shall be conducted through the Secretaries of 
the Army, Navy, and Air Force.
    (b) Assessment of Commercially Available Guides and Programs.--The 
test shall assess commercially available test preparation guides and 
education programs designed to enhance test performance. The test 
preparation guides assessed shall test both written formats and self-
paced computer-assisted programs. Education programs assessed may test 
both self-study textbook and computer-assisted courses and instructor-
led courses.
    (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:

``Sec. 613a. Nondisclosure of board proceedings

    ``(a) Nondisclosure.--The proceedings of a selection board convened 
under section 611 this title may not be disclosed to any person not a 
member of the board.
    ``(b) Prohibited Uses of Board Discussions, Deliberations, and 
Records.--The discussions and deliberations of a selection board 
described in subsection (a) and any written or documentary record of 
such discussions and deliberations--
        ``(1) are immune from legal process;
        ``(2) may not be admitted as evidence; and
        ``(3) may not be used for any purpose in any action, suit, or 
    judicial or administrative proceeding without the consent of the 
    Secretary of the military department concerned.''.
        (2) Conforming amendment.--Section 618 of such title is amended 
    by striking subsection (f).
    (b) Reserve Selection Board Proceedings.--Section 14104 of such 
title is amended to read as follows:

``Sec. 14104. Nondisclosure of board proceedings

    ``(a) Nondisclosure.--The proceedings of a selection board convened 
under section 14101 of this title may not be disclosed to any person 
not a member of the board.
    ``(b) Prohibited Uses of Board Discussions, Deliberations, and 
Records.--The discussions and deliberations of a selection board 
described in subsection (a) and any written or documentary record of 
such discussions and deliberations--
        ``(1) are immune from legal process;
        ``(2) may not be admitted as evidence; and
        ``(3) may not be used for any purpose in any action, suit, or 
    judicial or administrative proceeding without the consent of the 
    Secretary of the military department concerned.''.
    (c) Applicability.--Section 613a of title 10, United States Code, 
as added by subsection (a), shall apply with respect to the proceedings 
of all selection boards convened under section 611 of that title, 
including selection boards convened before the date of the enactment of 
this Act. Section 14104 of such title, as amended by subsection (b), 
shall apply with respect to the proceedings of all selection boards 
convened under section 14101 of that title, including selection boards 
convened before the date of the enactment of this Act.
    (d) Clerical Amendments.--
        (1) The table of sections at the beginning of subchapter I of 
    chapter 36 of title 10, United States Code, is amended by inserting 
    after the item relating to section 613 the following new item:

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

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

``14104. Nondisclosure of board proceedings.''.
    SEC. 548. REPORT ON EXTENT OF PROVISION OF TIMELY NOTICE OF LONG-
      TERM DEPLOYMENTS.
    Not later than March 1, 2007, the Secretary of Defense shall submit 
to the Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives a report on the number 
of members of the Armed Forces (shown by service and within each 
service by reserve component and active component) who, during the 
period beginning on January 1, 2005, and ending on the date of the 
enactment of this Act, have not received at least 30 days notice (in 
the form of an official order) before a deployment that will last 180 
days or more. With respect to members of the reserve components, the 
report shall describe the degree of compliance (or noncompliance) with 
Department of Defense policy concerning the amount of notice to be 
provided before long-term mobilizations or deployments.

                  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)).
        (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.
        (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:

``Sec. 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).''.
    (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).
        (2) Composition.--An honor guard detail provided under this 
    section shall consist of sufficient members of the Armed Forces to 
    perform the duties specified in paragraph (3). The members of the 
    honor guard detail shall be in uniform.
        (3) Duties.--Except to the extent that the person designated to 
    direct disposition of remains requests that any of the following 
    functions not be performed, an honor guard detail under this 
    section--
            (A) shall--
                (i) travel with the remains during transportation; or
                (ii) meet the remains at the place to which 
            transportation by air (or by rail or motor vehicle, if 
            applicable) is made for the transfer of the remains;
            (B) shall provide appropriate honors at the arrival of the 
        remains referred to in subparagraph (A)(ii) (unless airline or 
        other security requirements do not permit such honors to be 
        provided); and
            (C) shall participate in the transfer of the remains from 
        an aircraft, when airport and airline security requirements 
        permit, by carrying out the remains with a flag draped over the 
        casket to a hearse or other form of ground transportation for 
        travel to a funeral home or other place designated by the 
        person designated to direct disposition of such remains.
    (f) Secretary Concerned Defined.--In this section, the term 
``Secretary concerned'' has the meaning given that term in section 
101(a)(9) of title 10, United States Code.
    (g) Effective Date.--This section shall take effect at such time as 
may be prescribed by the Secretary of Defense, but not later than 
January 1, 2007.
    SEC. 563. ANNUAL BUDGET DISPLAY OF FUNDS FOR POW/MIA ACTIVITIES OF 
      DEPARTMENT OF DEFENSE.
    (a) Consolidated Budget Justification.--Chapter 9 of title 10, 
United States Code, is amended by adding at the end the following new 
section:

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

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

     Subtitle H--Impact Aid and Defense Dependents Education System

    SEC. 571. ENROLLMENT IN DEFENSE DEPENDENTS' EDUCATION SYSTEM OF 
      DEPENDENTS OF FOREIGN MILITARY MEMBERS ASSIGNED TO SUPREME 
      HEADQUARTERS ALLIED POWERS, EUROPE.
    (a) Temporary Enrollment Authority.--Section 1404A of the Defense 
Dependents' Education Act of 1978 (20 U.S.C. 923a) is amended--
        (1) in subsection (a)--
            (A) by striking ``of the children'' and inserting ``of--
        ``(1) the children'';
            (B) by striking the period at the end and inserting ``; 
        and''; and
            (C) by adding at the end the following new paragraph:
        ``(2) the children of a foreign military member assigned to the 
    Supreme Headquarters Allied Powers, Europe, but only in a school of 
    the defense dependents' education system in Mons, Belgium, and only 
    through the 2010-2011 school year.''; and
        (2) by adding at the end the following new subsection:
    ``(c) Special Rules Regarding Enrollment of Dependents of Foreign 
Military Members Assigned to Supreme Headquarters Allied Powers, 
Europe.--(1) In the regulations required by subsection (a), the 
Secretary shall prescribe a methodology based on the estimated total 
number of dependents of sponsors under section 1414(2) enrolled in 
schools of the defense dependents' education system in Mons, Belgium, 
to determine the number of children described in paragraph (2) of 
subsection (a) who will be authorized to enroll under such subsection.
    ``(2) If the number of children described in paragraph (2) of 
subsection (a) who seek enrollment in schools of the defense 
dependents' education system in Mons, Belgium, exceeds the number 
authorized by the Secretary under paragraph (1), the Secretary may 
enroll the additional children on a space-available, tuition-free basis 
notwithstanding section 1404(d)(2).''.
    (b) Report on Long-Term Plan for Education of Dependents of 
Military Personnel Assigned to Shape.--Not later than 180 days after 
the date of the enactment of this Act, the Secretary of Defense shall 
submit to Congress a report evaluating alternatives for the education 
of dependents of United States military personnel and dependents of 
foreign military personnel assigned to Supreme Headquarters Allied 
Powers, Europe, including--
        (1) an evaluation of the feasibility of establishing an 
    international school at Supreme Headquarters Allied Powers, Europe; 
    and
        (2) an estimate of the timeframe necessary for transition to 
    any new model for educating such dependents.
    SEC. 572. CONTINUATION OF AUTHORITY TO ASSIST LOCAL EDUCATIONAL 
      AGENCIES THAT BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED FORCES 
      AND DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.
    (a) Assistance to Schools With Significant Numbers of Military 
Dependent Students.--Of the amount authorized to be appropriated 
pursuant to section 301(5) for operation and maintenance for Defense-
wide activities, $35,000,000 shall be available only for the purpose of 
providing assistance to local educational agencies under subsection (a) 
of section 572 of the National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109-163; 119 Stat. 3271; 20 U.S.C. 7703b).
    (b) Assistance to Schools With Enrollment Changes Due to Base 
Closures, Force Structure Changes, or Force Relocations.--Of the amount 
authorized to be appropriated pursuant to section 301(5) for operation 
and maintenance for Defense-wide activities, $10,000,000 shall be 
available only for the purpose of providing assistance to local 
educational agencies under subsection (b) of such section 572.
    (c) Local Educational Agency Defined.--In this section, the term 
``local educational agency'' has the meaning given that term in section 
8013(9) of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7713(9)).
    SEC. 573. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.
    Of the amount authorized to be appropriated pursuant to section 
301(5) for operation and maintenance for Defense-wide activities, 
$5,000,000 shall be available for payments under section 363 of the 
Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
(as enacted into law by Public Law 106-398; 114 Stat. 1654A-77; 20 
U.S.C. 7703a).
    SEC. 574. 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 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 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 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).

                          Subtitle J--Reports

    SEC. 581. REPORT ON PERSONNEL REQUIREMENTS FOR AIRBORNE ASSETS 
      IDENTIFIED AS LOW-DENSITY, HIGH-DEMAND AIRBORNE ASSETS.
    (a) Report Required.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report on personnel 
requirements for airborne assets identified as Low-Density, High-Demand 
Airborne Assets based on combatant commander requirements to conduct 
and sustain operations for the global war on terrorism.
    (b) Matter To Be Included.--The report shall include the following 
for each airborne asset identified as a Low-Density, High-Demand 
Airborne Asset:
        (1) The numbers of operations and maintenance crews to meet 
    tasking contemplated to conduct operations for the global war on 
    terrorism.
        (2) The current numbers of operations and maintenance crews.
        (3) If applicable, shortages of operations and maintenance 
    crews.
        (4) Whether such shortages are addressed in the future-years 
    defense program.
        (5) Whether end-strength increases are required to meet any 
    such shortages.
        (6) Estimated manpower costs of personnel needed to address 
    shortfalls.
        (7) If applicable, the number and types of equipment needed to 
    address training shortfalls.
    SEC. 582. REPORT ON FEASIBILITY OF ESTABLISHMENT OF MILITARY 
      ENTRANCE PROCESSING COMMAND STATION ON GUAM.
    (a) Review.--The Secretary of Defense shall review the feasibility 
and cost effectiveness of establishing on Guam a station of the 
Military Entrance Processing Command to process new recruits for the 
Armed Forces who are drawn from the western Pacific region. For the 
purposes of the review, the cost effectiveness of establishing such a 
facility on Guam shall be measured, in part, against the system in 
effect in early 2006 of using Hawaii and other locations for the 
processing of new recruits from Guam and other locations in the western 
Pacific region.
    (b) Report.--Not later than June 1, 2007, the Secretary shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives a report 
providing the results of the study under subsection (a).
    SEC. 583. 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, 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 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 
        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 MEDICARE-ELIGIBLE 
      RETIREE HEALTH CARE FUND.
    (a) Medicare-Eligible Retiree Health Care Fund.--Section 1111 of 
title 10, United States Code, is amended--
        (1) in subsection (a), by striking ``of the Department of 
    Defense'' and inserting ``of the uniformed services''; and
        (2) in subsection (b), by adding at the end the following new 
    paragraph:
        ``(5) The term `members of the uniformed services on active 
    duty' does not include a cadet at the United States Military 
    Academy, the United States Air Force Academy, or the Coast Guard 
    Academy or a midshipman at the United States Naval Academy.''.
    (b) Determination of Contributions to the Fund.--Section 1115 of 
such title is amended--
        (1) in subsection (b)--
            (A) in paragraph (1)(B), by striking ``on active duty'' and 
        all that follows through ``training only)'' and inserting the 
        following: ``on active duty and full-time National Guard duty, 
        but excluding any member who would be excluded for active-duty 
        end strength purposes by section 115(i) of this title''; and
            (B) in paragraph (2)(B)--
                (i) by striking ``Ready Reserve'' and inserting 
            ``Selected Reserve''; and
                (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:

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

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

``5138. Bureau of Medicine and Surgery: Dental Corps; Chief; 
          functions.''.
    SEC. 594. PERMANENT AUTHORITY FOR PRESENTATION OF RECOGNITION ITEMS 
      FOR RECRUITMENT AND RETENTION PURPOSES.
    Section 2261 of title 10, United States Code, is amended by 
striking subsection (d).
    SEC. 595. PERSONS AUTHORIZED TO ADMINISTER ENLISTMENT AND 
      APPOINTMENT OATHS.
    (a) Enlistment Oath.--Section 502 of title 10, United States Code, 
is amended--
        (1) by inserting ``(a) Enlistment Oath.--'' before ``Each 
    person enlisting'';
        (2) by striking the last sentence; and
        (3) by adding at the end the following new subsection:
    ``(b) 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);
                (ii) recommendations for continuation of the Interim 
            Voting Assistance System and for improvements to that 
            system; and
                (iii) an assessment of available technologies and other 
            means of achieving enhanced use of electronic and Internet-
            based capabilities under the Interim Voting Assistance 
            System.
            (B) Future elections.--Not later than May 15, 2007, the 
        Secretary of Defense shall submit to the Congress a report 
        setting forth in detail plans for expanding the use of 
        electronic voting technology for individuals covered under the 
        Uniformed and Overseas Citizens Absentee Voting Act (42 U.S.C. 
        1973ff et seq.) for elections through November 30, 2010.
    (c) Comptroller General Report.--Not later than March 1, 2007, the 
Comptroller General of the United States shall submit to Congress a 
report containing the assessment of the Comptroller General with 
respect to the following:
        (1) The programs and activities undertaken by the Department of 
    Defense to facilitate voter registration, transmittal of ballots to 
    absentee voters, and voting utilizing electronic means of 
    communication (such as electronic mail and fax transmission) for 
    military and civilian personnel covered by the Uniformed and 
    Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff et seq.).
        (2) The progress of the Department of Defense and the Election 
    Assistance Commission in developing a secure, deployable system for 
    Internet-based electronic voting pursuant to the amendment made by 
    section 567 of the Ronald W. Reagan National Defense Authorization 
    Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 1919).
    (d) Repeal of Expired Provision.--Section 1566(g)(2) of title 10, 
United States Code, is amended by striking the last sentence.
    SEC. 597. PHYSICAL EVALUATION BOARDS.
    (a) In General.--
        (1) Procedural requirements.--Chapter 61 of title 10, United 
    States Code, is amended by adding at the end the following new 
    section:

``Sec. 1222. Physical evaluation boards

    ``(a) Response to Applications and Appeals.--The Secretary of each 
military department shall ensure, in the case of any member of the 
armed forces appearing before a physical evaluation board under that 
Secretary's supervision, that documents announcing a decision of the 
board in the case convey the findings and conclusions of the board in 
an orderly and itemized fashion with specific attention to each issue 
presented by the member in regard to that member's case. 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 
    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:

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

        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 53 of such title is amended by striking the item 
    relating to section 1060b and inserting the following new item:

``1060b. Military ID cards: dependents and survivors of retirees.''.
    SEC. 599. UNITED STATES MARINE BAND AND UNITED STATES MARINE DRUM 
      AND BUGLE CORPS.
    (a) In General.--Section 6222 of title 10, United States Code, is 
amended to read as follows:

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

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

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

          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.
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
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.





     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
----------------------------------------------------------------------------------------------------------------





                                               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.





                                               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.
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)''.
    (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 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''.
    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''.
    (f) Accession Bonus for New Officers in Critical Skills.--Section 
324(g) of such title is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.
    (g) Incentive Bonus for Conversion to Military Occupational 
Specialty to Ease Personnel Shortage.--Section 326(g) of such title is 
amended by striking ``December 31, 2006'' and inserting ``December 31, 
2007''.
    (h) Incentive Bonus for Transfer Between the Armed Forces.--Section 
327(h) of such title is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2009''.
    SEC. 615. EXPANSION OF ELIGIBILITY OF DENTAL OFFICERS FOR 
      ADDITIONAL SPECIAL PAY.
    (a) Repeal of Internship and Residency Exception.--Section 
302b(a)(4) of title 37, United States Code, is amended by striking the 
first sentence and inserting the following new sentence: ``An officer 
who is entitled to variable special pay under paragraph (2) or (3) is 
also entitled to additional special pay for any 12-month period during 
which an agreement executed under subsection (b) is in effect with 
respect to the officer.''.
    (b) 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:

``Sec. 302k. Special pay: accession bonus for medical officers in 
            critically short wartime specialties

    ``(a) Accession Bonus Authorized.--A person who is a graduate of an 
accredited school of medicine or osteopathy in a specialty designated 
by regulations as a critically short wartime specialty and who executes 
a written agreement described in subsection (d) to accept a commission 
as an officer of the armed forces and remain on active duty for a 
period of not less than four consecutive years may, upon the acceptance 
of the agreement by the Secretary concerned, be paid an accession bonus 
in the amount determined by the Secretary concerned.
    ``(b) Amount of Bonus.--The amount of an accession bonus under 
subsection (a) may not exceed $400,000.
    ``(c) Limitation on Eligibility for Bonus.--A person may not be 
paid a bonus under subsection (a) if--
        ``(1) the person, in exchange for an agreement to accept an 
    appointment as an officer, received financial assistance from the 
    Department of Defense to pursue a course of study in medicine or 
    osteopathy; or
        ``(2) the Secretary concerned determines that the person is not 
    qualified to become and remain certified as a doctor or osteopath 
    in a specialty designated by regulations as a critically short 
    wartime specialty.
    ``(d) Agreement.--The agreement referred to in subsection (a) shall 
provide that, consistent with the needs of the armed force concerned, 
the person executing the agreement will be assigned to duty, for the 
period of obligated service covered by the agreement, as an officer of 
the Medical Corps of the Army or the Navy or as an officer of the Air 
Force designated as a medical officer in a specialty designated by 
regulations as a critically short wartime specialty.
    ``(e) Repayment.--A person who, after executing an agreement under 
subsection (a) is not commissioned as an officer of the armed forces, 
does not become licensed as a doctor or osteopath, as the case may be, 
or does not complete the period of active duty in a specialty specified 
in the agreement, shall be subject to the repayment provisions of 
section 303a(e) of this title.
    ``(f) Termination of Authority.--No agreement under this section 
may be entered into after December 31, 2007.''.
    (c) Accession Bonus for Dental Specialist Officers in Critically 
Short Wartime Specialities.--Such chapter is further amended by 
inserting after section 302k, as added by subsection (b), the following 
new section:

``Sec. 302l. Special pay: accession bonus for dental specialist 
            officers in critically short wartime specialties

    ``(a) Accession Bonus Authorized.--A person who is a graduate of an 
accredited dental school in a specialty designated by regulations as a 
critically short wartime specialty and who executes a written agreement 
described in subsection (d) to accept a commission as an officer of the 
armed forces and remain on active duty for a period of not less than 
four consecutive years may, upon the acceptance of the agreement by the 
Secretary concerned, be paid an accession bonus in the amount 
determined by the Secretary concerned.
    ``(b) Amount of Bonus.--The amount of an accession bonus under 
subsection (a) may not exceed $400,000.
    ``(c) Limitation on Eligibility for Bonus.--A person may not be 
paid a bonus under subsection (a) if--
        ``(1) the person, in exchange for an agreement to accept an 
    appointment as an officer, received financial assistance from the 
    Department of Defense to pursue a course of study in dentistry; or
        ``(2) the Secretary concerned determines that the person is not 
    qualified to become and remain certified as a dentist in a 
    specialty designated by regulations as a critically short wartime 
    specialty.
    ``(d) Agreement.--The agreement referred to in subsection (a) shall 
provide that, consistent with the needs of the armed force concerned, 
the person executing the agreement will be assigned 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;
            (C) by striking ``may, upon'' and all that follows through 
        ``The Secretary of the Navy shall'' and inserting the 
        following:
    ``(b) Payment Amount; Payment Options.--(1) The total amount paid 
to an officer under an agreement under subsection (a) or (e)(1) may not 
exceed $30,000 for each year of the active-service agreement. Amounts 
paid under the agreement are in addition to all other compensation to 
which the officer is entitled.
    ``(2) The Secretary shall'';
            (D) by striking ``Upon acceptance of the agreement by the 
        Secretary or his designee'' and inserting the following:
    ``(3) Upon acceptance of an agreement under subsection (a) or 
(e)(1) by the Secretary''; and
            (E) by striking ``The Secretary (or his designee)'' and 
        inserting the following:
    ``(4) The Secretary'';
        (3) in subsection (c), as redesignated by paragraph (1), by 
    striking ``subsection (a) or subsection (d)(1)'' and inserting 
    ``subsection (b) or (e)(1)''; and
        (4) in the first sentence of subsection (e)(1), as redesignated 
    by paragraph (1)--
            (A) by striking ``such subsection'' and inserting 
        ``subsection (b)''; and
            (B) by striking ``that subsection'' and inserting ``this 
        subsection''.
    (c) Stylistic Amendments.--Such section is further amended--
        (1) in subsection (a), by inserting ``Special Pay Authorized; 
    Eligibility.--'' after ``(a)'';
        (2) in subsection (c), as redesignated by subsection (b)(1), by 
    inserting ``Repayment.--'' after ``(c)'';
        (3) in subsection (d), as redesignated by subsection (b)(1), by 
    inserting ``Relation to Service Obligation.--'' after ``(d)'';
        (4) in subsection (e), as redesignated by subsection (b)(1), by 
    inserting ``New Agreement.--'' after ``(e)''; and
        (5) in subsection (f), as redesignated by subsection (b)(1), by 
    inserting ``Duration of Authority.--'' after ``(f)''.
    SEC. 619. INCREASE IN MAXIMUM AMOUNT OF NUCLEAR CAREER ACCESSION 
      BONUS.
    (a) Increase.--Section 312b(a)(1) of title 37, United States Code, 
is amended by striking ``$20,000'' and inserting ``$30,000''.
    (b) 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.
    SEC. 621. ADDITIONAL AUTHORITIES AND INCENTIVES TO ENCOURAGE 
      RETIRED MEMBERS AND RESERVE COMPONENT MEMBERS TO VOLUNTEER TO 
      SERVE ON ACTIVE DUTY IN HIGH-DEMAND, LOW-DENSITY ASSIGNMENTS.
    (a) Authority To Offer Incentive Bonus.--Chapter 5 of title 37, 
United States Code, is amended by adding at the end the following new 
section:

``Sec. 329. Incentive bonus: retired members and reserve component 
            members volunteering for high-demand, low-density 
            assignments

    ``(a) Incentive Bonus Authorized.--The Secretary of Defense may pay 
a bonus under this section to a retired member or former member of the 
Army, Navy, Air Force, or Marine Corps or to a member of a reserve 
component of the Army, Navy, Air Force, or Marine Corps (who is not 
otherwise serving on active duty) who executes a written agreement to 
serve on active duty for a period specified in the agreement in an 
assignment intended to alleviate the need for members in a high-demand, 
low-density military capability or in any other specialty designated by 
the Secretary as critical to meet wartime or peacetime requirements.
    ``(b) Maximum Amount of Bonus.--A bonus under subsection (a) and 
any incentive developed under subsection (d) may not exceed $50,000.
    ``(c) Methods of Payment.--At the election of the Secretary of 
Defense, a bonus under subsection (a) and any incentive developed under 
subsection (d) shall be paid or provided--
        ``(1) when the member commences service on active duty; or
        ``(2) in annual installments in such amounts as may be 
    determined by the Secretary.
    ``(d) Development of Additional Incentives.--(1) The Secretary of 
Defense may develop and provide to members referred to in subsection 
(a) additional incentives to encourage such members to return to active 
duty in assignments intended to alleviate the need for members in a 
high-demand, low-density military capability or in other specialties 
designated by the Secretary as critical to meet wartime or peacetime 
requirements.
    ``(2) 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 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.''.
    (c) Exclusion From Active-Duty List.--Section 641 of title 10, 
United States Code, is amended by adding at the end the following new 
paragraph:
        ``(6) Officers appointed pursuant to an agreement under section 
    329 of title 37.''.
    (d) Clerical Amendments.--
        (1) Title 37.--The table of sections at the beginning of 
    chapter 5 of title 37, United States Code, is amended by adding at 
    the end the following new item:

``329. Incentive bonus: retired members and reserve component members 
          volunteering for high-demand, low-density assignments.''.

        (2) Title 10.--(A) The heading of section 688a of title 10, 
    United States Code, is amended to read as follows:

``Sec. 688a. Retired members: temporary authority to order to active 
            duty in high-demand, low-density assignments''.

        (B) The table of sections at the beginning of chapter 39 of 
    such title is amended by striking the item relating to section 688a 
    and inserting the following new item:

``688a. Retired members: temporary authority to order to active duty in 
          high-demand, low-density assignments.''.

    (e) Effective Date.--No agreement may be entered into under section 
329 of title 37, United States Code, as added by subsection (a), before 
October 1, 2006.
    (f) Limitation on Fiscal Year 2007 Obligations.--During fiscal year 
2007, obligations incurred under section 329 of title 37, United States 
Code, as added by subsection (a), to provide bonuses or other 
incentives to retired members and former members of the Army, Navy, Air 
Force, or Marine Corps or to members of the reserve components of the 
Army, Navy, Air Force, and Marine Corps may not exceed $5,000,000.
    SEC. 622. ACCESSION BONUS FOR MEMBERS OF THE ARMED FORCES APPOINTED 
      AS COMMISSIONED OFFICERS AFTER COMPLETING OFFICER CANDIDATE 
      SCHOOL.
    (a) Accession Bonus Authorized.--
        (1) In general.--Chapter 5 of title 37, United States Code, is 
    amended by inserting after section 329, as added by section 621 of 
    this Act, the following new section:

``Sec. 330. Special pay: accession bonus for officer candidates

    ``(a) 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.
    ``(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 discharge.--
    Subsection (d)(2) of such section is amended--
            (A) in subparagraph (A), by inserting before the semicolon 
        the following: ``, except that during the period beginning on 
        October 1, 2006, and ending on December 31, 2012, such number 
        may be more than 30 percent of the officers considered in each 
        competitive category, but may not be more than 30 percent of 
        the number of officers considered in each grade''; and
            (B) in subparagraph (B), by inserting before the period the 
        following: ``, except that during the period beginning on 
        October 1, 2006, and ending on December 31, 2012, such number 
        may be more than 30 percent of the officers considered in each 
        competitive category, but may not be more than 30 percent of 
        the number of officers considered in each grade''.
    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).''.
    (d) Payment of Bonus.--Subsection (e) of such section is amended to 
read as follows:
    ``(e) Payment.--A bonus payable for a referral of a person under 
subsection (a) shall be paid as follows:
        ``(1) Not more than $1,000 shall be paid upon the commencement 
    of basic training by the person referred.
        ``(2) Not more than $1,000 shall be paid upon the completion of 
    basic training and individual advanced training by the person 
    referred.''.
    (e) Coordination With Receipt of Retired Pay.--Such section is 
further amended--
        (1) by redesignating subsection (g) as subsection (h); and
        (2) by inserting after subsection (f) the following new 
    subsection (g):
    ``(g) Coordination With Receipt of Retired Pay.--A bonus paid under 
this section to a member of the Army in a retired status is in addition 
to any compensation to which the member is entitled under title 10, 37, 
or 38, United States Code, or any other provision of law.''.
    (f) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act, and shall apply with 
respect to bonuses payable under section 645 of the National Defense 
Authorization Act for Fiscal Year 2006, as amended by this section, on 
or after that date.

            Subtitle C--Travel and Transportation Allowances

    SEC. 631. TRAVEL AND TRANSPORTATION ALLOWANCES FOR TRANSPORTATION 
      OF FAMILY MEMBERS INCIDENT TO ILLNESS OR INJURY OF MEMBERS.
    Section 411h(b)(1) of title 37, United States Code, is amended--
        (1) by striking ``and'' at the end of subparagraph (C);
        (2) by striking the period at the end of subparagraph (D) and 
    inserting ``; and''; and
        (3) by adding at the end the following new subparagraph:
        ``(E) a person related to the member as described in 
    subparagraph (A), (B), (C), or (D) who is also a member of the 
    uniformed services.''.

             Subtitle D--Retired Pay and Survivor Benefits

    SEC. 641. RETIRED PAY OF GENERAL AND FLAG OFFICERS TO BE BASED ON 
      RATES OF BASIC PAY PROVIDED BY LAW.
    (a) Determination of Retired Pay Base.--Chapter 71 of title 10, 
United States Code, is amended by inserting after section 1407 the 
following new section:

``Sec. 1407a. Retired pay base: officers retired in general or flag 
            officer grades

    ``(a) Rates of Basic Pay to Be Used in Determination.--In a case in 
which the determination under section 1406 or 1407 of this title of the 
retired pay base applicable to the computation of the retired pay of a 
covered general or flag officer involves a rate of basic pay payable to 
that officer for any period that was subject to a reduction under 
section 203(a)(2) of title 37 for such period, such retired-pay-base 
determination shall be made using the rate of basic pay for such period 
provided by law, rather than such rate as so reduced.
    ``(b) Covered General and Flag Officers.--In this section, the term 
`covered general or flag officer' means a member or former member who 
after September 30, 2006, is retired in a general officer grade or flag 
officer grade.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1407 the following new item:

``1407a.  Retired pay base: officers retired in general or flag officer 
          grades.''.
    SEC. 642. INAPPLICABILITY OF RETIRED PAY MULTIPLIER MAXIMUM 
      PERCENTAGE TO CERTAIN SERVICE OF MEMBERS OF THE ARMED FORCES IN 
      EXCESS OF 30 YEARS.
    (a) In General.--Paragraph (3) of section 1409(b) of title 10, 
United States Code, is amended to read as follows:
        ``(3) 30 years of service.--
            ``(A) Retirement before january 1, 2007.--In the case of a 
        member who retires before January 1, 2007, with more than 30 
        years of creditable service, the percentage to be used under 
        subsection (a) is 75 percent.
            ``(B) Retirement after december 31, 2006.--In the case of a 
        member who retires after December 31, 2006, with more than 30 
        years of creditable service, the percentage to be used under 
        subsection (a) is the sum of--
                ``(i) 75 percent; and
                ``(ii) the product (stated as a percentage) of--

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

    (b) Retired Pay for Non-Regular Service.--Section 12739(c) of such 
title is amended--
        (1) by striking ``The total amount'' and inserting ``(1) Except 
    as provided in paragraph (2), the total amount''; and
        (2) by adding at the end the following new paragraph:
        ``(2) In the case of a person who retires after December 31, 
    2006, with more than 30 years of service credited to that person 
    under section 12733 of this title, the total amount of the monthly 
    retired pay computed under subsections (a) and (b) may not exceed 
    the sum of--
            ``(A) 75 percent of the retired pay base upon which the 
        computation is based; and
            ``(B) the product of--
                ``(i) the retired pay base upon which the computation 
            is based; and
                ``(ii) 2\1/2\ percent of the years of service credited 
            to that person under section 12733 of this title, for 
            service under conditions authorized for purposes of 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 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 insurable-interest 
    election (as defined in paragraph (2)) and whose designated 
    beneficiary under that election dies before the date of the 
    enactment of this Act or during the 18-month period beginning on 
    such date, the time period applicable for purposes of the 
    limitation in the third sentence of subparagraph (G)(i) of section 
    1448(b)(1) of title 10, United States Code, as added by subsection 
    (a), shall be the two-year period beginning on the date of the 
    enactment of this Act (rather than the 180-day period specified in 
    that sentence).
        (2) Covered insurable-interest elections.--For purposes of 
    paragraph (1), a covered insurable-interest election is an election 
    under section 1448(b)(1) of title 10, United States Code, made 
    before the date of the enactment of this Act, or during the 18-
    month period beginning on such date, by a participant in the 
    Survivor Benefit Plan to provide an annuity under that plan to a 
    natural person with an insurable interest in that person.
        (3) Survivor benefit plan.--For purposes of this subsection, 
    the term ``Survivor Benefit Plan'' means the program under 
    subchapter II of chapter 73 of title 10, United States Code.
    SEC. 644. MODIFICATION OF ELIGIBILITY FOR COMMENCEMENT OF AUTHORITY 
      FOR OPTIONAL ANNUITIES FOR DEPENDENTS UNDER THE SURVIVOR BENEFIT 
      PLAN.
    (a) In General.--Section 1448(d)(2)(B) of title 10, United States 
Code, is amended by striking ``who dies after November 23, 2003'' and 
inserting ``who dies after October 7, 2001''.
    (b) 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 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).''.
    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 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)''.
    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.
    (c) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
Congress a report containing the results of the study and any related 
findings, conclusions, and recommendations that the Secretary considers 
to be appropriate concerning the access of disabled persons to morale, 
welfare, and recreation facilities and activities, and specifically the 
Secretary's conclusions on making accessible golf carts available at 
all military golf courses for use by disabled persons authorized to use 
such courses.

                       Subtitle F--Other Matters

    SEC. 670. LIMITATIONS ON TERMS OF CONSUMER CREDIT EXTENDED TO 
      SERVICEMEMBERS AND DEPENDENTS.
    (a) Terms of Consumer Credit.--Chapter 49 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 987. Terms of consumer credit extended to members and 
            dependents: limitations

    ``(a) Interest.--A creditor who extends consumer credit to a 
covered member of the armed forces or a dependent of such a member 
shall not require the member or dependent to pay interest with respect 
to the extension of such credit, except as--
        ``(1) agreed to under the terms of the credit agreement or 
    promissory note;
        ``(2) authorized by applicable State or Federal law; and
        ``(3) not specifically prohibited by this section.
    ``(b) Annual Percentage Rate.--A creditor described in subsection 
(a) may not impose an annual percentage rate of interest greater than 
36 percent with respect to the consumer credit extended to a covered 
member or a dependent of a covered member.
    ``(c) Mandatory Loan Disclosures.--
        ``(1) Information required.--With respect to any extension of 
    consumer credit (including any consumer credit originated or 
    extended through the internet) to a covered member or a dependent 
    of a covered member, a creditor shall provide to the member or 
    dependent the following information orally and in writing before 
    the issuance of the credit:
            ``(A) A statement of the annual percentage rate of interest 
        applicable to the extension of credit.
            ``(B) Any disclosures required under the Truth in Lending 
        Act (15 U.S.C. 1601 et seq.).
            ``(C) A clear description of the payment obligations of the 
        member or dependent, as applicable.
        ``(2) 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 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 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.
        ``(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.
    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, 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 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.''.
    (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.
    (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:
            (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:
                (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, 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 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.
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''.
    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 over-the-counter drugs to be 
included on the uniform formulary under section 1074g of such title.
    (b) Elements of Demonstration Project.--
        (1) Inclusion of certain over-the-counter drugs.--(A) As part 
    of the demonstration project, the Secretary shall modify uniform 
    formulary specifications under section 1074g(a) of such title to 
    include an over-the-counter drug (referred to in this section as an 
    ``OTC drug'') on the uniform formulary if the Pharmacy and 
    Therapeutics Committee finds that the OTC drug is cost-effective 
    and therapeutically equivalent to a prescription drug. If the 
    Pharmacy and Therapeutics Committee makes such a finding, the OTC 
    drug shall be considered to be in the same therapeutic class of 
    pharmaceutical agents as the prescription drug.
        (B) An OTC drug shall be made available to a beneficiary 
    through the demonstration project, but only if--
            (i) the beneficiary has a prescription for a drug requiring 
        a prescription; and
            (ii) pursuant to subparagraph (A), the OTC drug--
                (I) is on the uniform formulary; and
                (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.
    SEC. 706. EXPANDED ELIGIBILITY OF SELECTED RESERVE MEMBERS UNDER 
      TRICARE PROGRAM.
    (a) General Eligibility.--Subsection (a) of section 1076d of title 
10, United States Code, is amended--
        (1) by striking ``(a) Eligibility.--A member'' and inserting 
    ``(a) Eligibility.--(1) Except as provided in paragraph (2), a 
    member'';
        (2) by striking ``after the member completes'' and all that 
    follows through ``one or more whole years following such date''; 
    and
        (3) by adding at the end the following new paragraph:
    ``(2) Paragraph (1) does not apply to a member who is enrolled, or 
is eligible to enroll, in a health benefits plan under chapter 89 of 
title 5.''.
    (b) Condition for Termination of Eligibility.--Subsection (b) of 
such section is amended--
        (1) by striking ``(b) Period of Coverage.--(1) TRICARE 
    Standard'' and all that follows through ``(4) Eligibility'' and 
    inserting ``(b) Termination of Eligibility Upon Termination of 
    Service.--Eligibility''; and
        (2) by striking paragraph (5).
    (c) Conforming Amendments.--
        (1) Such section is further amended--
            (A) by striking subsection (e);
            (B) by redesignating subsection (g) as subsection (e) and 
        transferring such subsection within such section so as to 
        appear following subsection (d); and
            (C) by striking paragraph (3) of subsection (f).
        (2) The heading for such section is amended to read as follows:

``Sec. 1076d. TRICARE program: TRICARE standard coverage for members of 
            the Selected Reserve''.

    (d) Repeal of Obsolete Provision.--Effective 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.
    SEC. 707. RELATIONSHIP BETWEEN THE TRICARE PROGRAM AND EMPLOYER-
      SPONSORED GROUP HEALTH CARE PLANS.
    (a) In General.--Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1097b the following new section:

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

    ``(a) Prohibition on Financial Incentives Not to Enroll in a Group 
Health Plan.--(1) Except as provided in this subsection, the provisions 
of section 1862(b)(3)(C) of the Social Security Act shall apply with 
respect to financial or other incentives for a TRICARE-eligible 
employee not to enroll (or to terminate enrollment) under a health plan 
which would (in the case of such enrollment) be a primary plan under 
sections 1079(j)(1) and 1086(g) of this title in the same manner as 
such section 1862(b)(3)(C) applies to financial or other incentives for 
an individual entitled to benefits under title XVIII of the Social 
Security Act not to enroll (or to terminate enrollment) under a group 
health plan or a large group health plan which would (in the case of 
enrollment) be a primary plan (as defined in section 1862(b)(2)(A) of 
such Act).
    ``(2)(A) The Secretary of Defense may by regulation adopt such 
additional exceptions to the prohibition referenced and applied under 
paragraph (1) as the Secretary deems appropriate and such paragraph (1) 
shall be implemented taking into account the adoption of such 
exceptions.
    ``(B) The Secretary of Defense and the Secretary of Health and 
Human Services are authorized to enter into agreements for carrying out 
this subsection. Any such agreement shall provide that any expenses 
incurred by the Secretary of Health and Human Services pertaining to 
carrying out this subsection shall be reimbursed by the Secretary of 
Defense.
    ``(C) Authorities of the Inspector General of the Department of 
Defense shall be available for oversight and investigations of 
responsibilities of employers and other entities under this subsection.
    ``(D) Information obtained under section 1095(k) of this title may 
be used in carrying out this subsection in the same manner as 
information obtained under section 1862(b)(5) of the Social Security 
Act may be used in carrying out section 1862(b) of such Act.
    ``(E) Any amounts collected in carrying out paragraph (1) shall be 
handled in accordance with section 1079a of this title.
    ``(b) Election of TRICARE-Eligible Employees to Participate in 
Group Health Plan.--A TRICARE-eligible employee shall have the 
opportunity to elect to participate in the group health plan offered by 
the employer of the employee and receive primary coverage for health 
care services under the plan in the same manner and to the same extent 
as similarly situated employees of such employer who are not TRICARE-
eligible employees.
    ``(c) Inapplicability to Certain Employers.--The provisions of this 
section do not apply to any employer who has fewer than 20 employees.
    ``(d) Retention of Eligibility for Coverage Under TRICARE.--Nothing 
in this section, including an election made by a TRICARE-eligible 
employee under subsection (b), shall be construed to affect, modify, or 
terminate the eligibility of a 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.
        (2) Range of members.--The individuals appointed to the task 
    force shall include--
            (A) at least one member of each of the Medical Departments 
        of the Army, Navy, and Air Force;
            (B) a number of persons from outside the Department of 
        Defense equal to the total number of personnel from within the 
        Department of Defense (whether members of the Armed Forces or 
        civilian personnel) who are appointed to the task force;
            (C) persons who have experience in--
                (i) health care actuarial forecasting;
                (ii) health care program and budget development;
                (iii) health care information technology;
                (iv) health care performance measurement;
                (v) health care quality improvement including evidence-
            based medicine; and
                (vi) women's health;
            (D) the senior medical advisor to the Chairman of the Joint 
        Chiefs of Staff;
            (E) the Director of Defense Procurement and Acquisition 
        Policy in the Office of the Under Secretary of Defense for 
        Acquisition, Technology, and Logistics;
            (F) at least one member from the Defense Business Board;
            (G) at least one representative from an organization that 
        advocates on behalf of active duty and retired members of the 
        Armed Forces who has experience in health care; and
            (H) at least one member from the Institute of Medicine.
        (3) Individuals appointed outside the department of defense.--
            (A) Individuals appointed to the task force from outside 
        the Department of Defense may include officers or employees of 
        other departments or agencies of the Federal Government, 
        officers or employees of State and local governments, or 
        individuals from the private sector.
            (B) Individuals appointed to the task force from outside 
        the Department of Defense shall include--
                (i) an officer or employee of the Department of 
            Veterans Affairs; and
                (ii) an officer or employee of the Department of Health 
            and Human Services.
        (4) Deadline for appointment.--All appointments of individuals 
    to the task force shall be made not later than 90 days after the 
    date of the enactment of this Act.
        (5) Co-chairs of task force.--There shall be two co-chairs of 
    the task force. One of the co-chairs shall be designated by the 
    Secretary of Defense at the time of appointment from among the 
    Department of Defense personnel appointed to the task force. The 
    other co-chair shall be selected from among the members appointed 
    from outside the Department of Defense by members so appointed.
    (c) Assessment and Recommendations on the Future of Military Health 
Care.--
        (1) In general.--Not 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 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.
        (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:
                (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
                (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 report on the 
audits conducted under this section. The report shall include--
        (1) the findings of the Comptroller General as a result of the 
    audits; and
        (2) such recommendations as the Comptroller General considers 
    appropriate in light of such findings to ensure maximum efficiency 
    in the administration of the health care benefits programs of the 
    Department of Defense.
    SEC. 714. TRANSFER OF CUSTODY OF THE AIR FORCE HEALTH STUDY ASSETS 
      TO MEDICAL FOLLOW-UP AGENCY.
    (a) Transfer.--
        (1) Notification of participants.--The Secretary of the Air 
    Force shall notify the participants of the Air Force Health Study 
    that the study as currently constituted is ending as of September 
    30, 2006. In consultation with the Medical Follow-up Agency (in 
    this section referred to as the ``Agency'') of the Institute of 
    Medicine of the National Academy of Sciences, the Secretary of the 
    Air Force shall request the written consent of the participants to 
    transfer their data and biological specimens to the Agency during 
    fiscal year 2007 and written consent for the Agency to maintain the 
    data and specimens and make them available for additional studies.
        (2) Completion of 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.
        (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;
        (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.
        (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.
            (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 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.
        (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:
        (1) To ensure consistent standards of quality in the support of 
    military treatment facilities by contract civilian health care 
    personnel under the TRICARE program.
        (2) To identify targeted, actionable opportunities throughout 
    each region of the TRICARE program for the most efficient and cost 
    effective delivery of health care and support of military treatment 
    facilities.
        (3) To ensure the most effective use of various available 
    contracting methods in securing support of military treatment 
    facilities by civilian health care personnel under the TRICARE 
    program, including resource-sharing and clinical support 
    agreements, direct contracting, and venture capital investments.
    (c) Facilitation and Enhancement of Contractor Support.--
        (1) In general.--The Secretary of Defense shall take 
    appropriate actions to facilitate and enhance the support of 
    military treatment facilities under the TRICARE program in order to 
    assure maximum quality and productivity.
        (2) Actions.--In taking actions under paragraph (1), the 
    Secretary shall--
            (A) require consistent standards of quality for contract 
        civilian health care personnel providing support of military 
        treatment facilities under the TRICARE program, including--
                (i) consistent credentialing requirements among 
            military treatment facilities;
                (ii) consistent performance standards for private 
            sector companies providing health care staffing services to 
            military treatment facilities and clinics, including, at a 
            minimum, those standards established for accreditation of 
            health care staffing firms by the Joint Commission on the 
            Accreditation of Health Care Organizations Health Care 
            Staffing Standards; and
                (iii) additional standards covering--

                    (I) financial stability;
                    (II) medical management;
                    (III) continuity of operations;
                    (IV) training;
                    (V) employee retention;
                    (VI) access to contractor data; and
                    (VII) fraud prevention;

            (B) ensure the availability of adequate and sustainable 
        funding support for projects which produce a return on 
        investment to the military treatment facilities;
            (C) ensure that a portion of any return on investment is 
        returned to the military treatment facility to which such 
        savings are attributable;
            (D) remove financial disincentives for military treatment 
        facilities and civilian contractors to initiate and sustain 
        agreements for the support of military treatment facilities by 
        such contractors under the TRICARE program;
            (E) provide for a consistent methodology across all regions 
        of the TRICARE program for developing cost benefit analyses of 
        agreements for the support of military treatment facilities by 
        civilian contractors under the TRICARE program based on actual 
        cost and utilization data within each region of the TRICARE 
        program; and
            (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.
    (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.
        (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.
            (E) A description of an investment strategy to assure the 
        sustainment of the disease and chronic care management programs 
        of the Department of Defense.
    SEC. 735. ADDITIONAL ELEMENTS OF ASSESSMENT OF DEPARTMENT OF 
      DEFENSE TASK FORCE ON MENTAL HEALTH RELATING TO MENTAL HEALTH OF 
      MEMBERS WHO WERE DEPLOYED IN OPERATION IRAQI FREEDOM AND 
      OPERATION ENDURING FREEDOM.
    Section 723(c) of the National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109-163; 119 Stat. 3348) is amended by adding at 
the end the following new paragraph:
        ``(4) Mental health needs of members who were deployed in oif 
    or oef.--As part of the assessment required by paragraph (1) of the 
    efficacy of mental health services provided to members of the Armed 
    Forces by the Department of Defense, the task force shall consider 
    the specific needs with respect to mental health of members who 
    were deployed in Operation Iraqi Freedom or Operation Enduring 
    Freedom upon their return from such deployment, including the 
    following:
            ``(A) An identification of mental health conditions and 
        disorders (including Post Traumatic Stress Disorder, suicide 
        attempts, and suicide) occurring among members who have 
        undergone multiple deployments in Operation Iraqi Freedom or 
        Operation Enduring Freedom.
            ``(B) An evaluation of the availability to members of 
        assessments under the Mental Health Self-Assessment Program of 
        the Department of Defense to ensure the long-term availability 
        of the diagnostic mechanisms of the assessment to detect mental 
        health conditions that may emerge in such members over time.
            ``(C) The availability of programs and services under the 
        Mental Health Self-Assessment Program to address the mental 
        health of dependent children of members who were deployed in 
        Operation Iraqi Freedom or Operation Enduring Freedom.
            ``(D) Recommendations on mechanisms for improving the 
        mental health services available to members who were deployed 
        in Operation Iraqi Freedom or Operation Enduring Freedom, 
        including members who have undergone multiple deployments.''.
    SEC. 736. ADDITIONAL AUTHORIZED OPTION PERIODS FOR EXTENSION OF 
      CURRENT CONTRACTS UNDER TRICARE.
    (a) Additional Number of Authorized Periods.--
        (1) In general.--The Secretary of Defense, after consulting 
    with the other administering Secretaries, may extend any contract 
    for the delivery of health care entered into under section 1097 of 
    title 10, United States Code, that is in force on the date of the 
    enactment of this Act by one year, and upon expiration of such 
    extension by one additional year, if the Secretary determines that 
    such extension--
            (A) is in the best interests of the Department of Defense 
        and covered beneficiaries;
            (B) is cost effective; and
            (C) will--
                (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, 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:
    ``(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.
    (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.
            (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 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 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 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)--
            (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 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.

 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;
        ``(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
        (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;
        ``(9) funding is available to execute the product development 
    and production plan under the program, through the period covered 
    by the future-years defense program submitted during the fiscal 
    year in which the certification is made, consistent with the 
    estimates described in paragraph (8) for the program; and''.
    (b) Waiver for National Security.--Subsection (c) of such section 
is amended by striking ``(5), or (6)'' and inserting ``(5), (6), (7), 
(8), or (9)''.
    SEC. 806. ORIGINAL BASELINE ESTIMATE FOR MAJOR DEFENSE ACQUISITION 
      PROGRAMS.
    Section 2435(d)(1) of title 10, United States Code, is amended by 
inserting after ``with respect to the program under subsection (a)'' 
the following: ``prepared before the program enters system development 
and demonstration, or at program initiation, whichever occurs later''.
    SEC. 807. LEAD SYSTEM INTEGRATORS.
    (a) Limitations on Contractors Acting as Lead System Integrators.--
        (1) In general.--Chapter 141 of title 10, United States Code, 
    is amended by adding at the end the following new section:

``Sec. 2410p. Contracts: limitations on lead system integrators

    ``(a) In General.--Except as provided in subsection (b), no entity 
performing lead system integrator functions in the acquisition of a 
major system by the Department of Defense may have any direct financial 
interest in the development or construction of any individual system or 
element of any system of systems.
    ``(b) Exception.--An entity described in subsection (a) may have a 
direct financial interest in the development or construction of an 
individual system or element of a system of systems if--
        ``(1) the Secretary of Defense certifies to the Committees on 
    Armed Services of the Senate and the House of Representatives 
    that--
            ``(A) the entity was selected by the Department of Defense 
        as a contractor to develop or construct the system or element 
        concerned through the use of competitive procedures; and
            ``(B) the Department took appropriate steps to prevent any 
        organizational conflict of interest in the selection process; 
        or
        ``(2) the entity was selected by a subcontractor to serve as a 
    lower-tier subcontractor, through a process over which the entity 
    exercised no control.
    ``(c) Construction.--Nothing in this section shall be construed to 
preclude an entity described in subsection (a) from performing work 
necessary to integrate two or more individual systems or elements of a 
system of systems with each other.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 141 of such title is amended by adding at the end the 
    following new item:

``2410p. Contracts: limitations on lead system integrators''.

        (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.
    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;
            (G) the service acquisition executive and the program 
        manager have developed a strategy to ensure stability in 
        program management until, at a minimum, the delivery of the 
        initial operational capability under the acquisition program 
        for the system has occurred;
            (H) the service acquisition executive, the relevant 
        combatant commanders, and the program manager have agreed that 
        no additional requirements that would be inconsistent with the 
        agreed-upon program schedule will be added during the 
        development phase of the acquisition program for the system; 
        and
            (I) a planned initial operational capability will be 
        delivered to the relevant combatant commanders within a defined 
        period of time as prescribed in regulations by the Secretary of 
        Defense.
        (3) Timing of decision.--The decision whether to include a 
    major weapon system in the pilot program shall be made at the time 
    of milestone approval for the acquisition program for the system.
    (d) Limitation on Number of Weapons Systems in Pilot Program.--The 
number of major weapon systems included in the pilot program at any 
time may not exceed six major weapon systems.
    (e) Limitation on Cost of Weapons Systems in Pilot Program.--The 
Secretary of Defense may include a major weapon system in the pilot 
program only if, at the time a major weapon system is proposed for 
inclusion, the total cost for system design and development of the 
weapon system, as set forth in the cost estimate referred to in 
subsection (c)(2)(D), does not exceed $1,000,000,000 during the period 
covered by the current future-years defense program.
    (f) Special Funding Authority.--
        (1) Authority for reserve account.--Notwithstanding any other 
    provision of law, the Secretary of Defense may establish a special 
    reserve account utilizing funds made available for the major weapon 
    systems included in the pilot program.
        (2) Elements.--The special reserve account may include--
            (A) funds made available for any major weapon system 
        included in the pilot program to cover termination liability;
            (B) funds made available for any major weapon system 
        included in the pilot program for award fees that may be earned 
        by contractors; and
            (C) funds appropriated to the special reserve account.
        (3) Availability of funds.--Funds in the special reserve 
    account may be used, in accordance with guidance issued by the 
    Secretary for purposes of this section, for the following purposes:
            (A) To cover termination liability for any major weapon 
        system included in the pilot program.
            (B) To pay award fees that are earned by any contractor for 
        a major weapon system included in the pilot program.
            (C) To address unforeseen contingencies that could prevent 
        a major weapon system included in the pilot program from 
        meeting critical schedule or performance requirements.
        (4) Reports on use of funds.--Not later than 30 days after the 
    use of funds in the special reserve account for the purpose 
    specified in paragraph (3)(C), the Secretary shall submit to the 
    congressional defense committees a report on the use of funds in 
    the account for such purpose. The report shall set forth the 
    purposes for which the funds were used and the reasons for the use 
    of the funds for such purposes.
        (5) Relationship to appropriations.--Nothing in this subsection 
    may be construed as extending any period of time for which 
    appropriated funds are made available.
    (g) Administration of Pilot Program.--The Secretary of Defense 
shall prescribe policies and procedures on the administration of the 
pilot program. Such policies and procedures shall--
        (1) provide for the use of program status reports based on 
    earned value data to track progress on a major weapon system under 
    the pilot program against baseline estimates applicable to such 
    system at each systems engineering technical review point; and
        (2) grant authority, to the maximum extent practicable, to the 
    program manager for the acquisition program for a major weapon 
    system to make key program decisions and trade-offs, subject to 
    management reviews only if cost or schedule deviations exceed the 
    baselines for such acquisition program by 10 percent or more.
    (h) Removal of Weapons Systems From Pilot Program.--The Secretary 
of Defense shall remove a major weapon system from the pilot program 
if--
        (1) the weapon system receives Milestone C approval; or
        (2) the Secretary determines that the weapon system is no 
    longer in substantial compliance with the criteria in subsection 
    (c)(2) or is otherwise no longer appropriate for inclusion in the 
    pilot program.
    (i) Expiration of Authority To Include Additional Systems in Pilot 
Program.--
        (1) Expiration.--A major weapon system may not be included in 
    the pilot program after September 30, 2012.
        (2) Retention of systems.--A major weapon system included in 
    the pilot program before the date specified in paragraph (1) in 
    accordance with the requirements of this section may remain in the 
    pilot program after that date.
    (j) Annual Report.--
        (1) In general.--Not later than one year after including the 
    first major weapon system in the pilot program, and annually 
    thereafter, the Secretary shall submit to the congressional defense 
    committees a report on the pilot program, and the major weapon 
    systems included in the pilot program, during the one-year period 
    ending on the date of such report.
        (2) Elements.--Each report under this subsection shall 
    include--
            (A) a description of progress under the pilot program, and 
        on each major weapon system included in the pilot program, 
        during the period covered by such report;
            (B) a description of the use of all funds in the special 
        reserve account established under subsection (f); and
            (C) such other matters as the Secretary considers 
        appropriate.
    (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.
        (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 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.

``Sec. 2445a. Major automated information system program defined

    ``(a) In General.--In this chapter, the term `major automated 
information system program' means a Department of Defense program for 
the acquisition of an automated information system (either as a product 
or a service) if--
        ``(1) the program is designated by the Secretary of Defense, or 
    a designee of the Secretary, as a major automated information 
    system program; or
        ``(2) the dollar value of the program is estimated to exceed--
            ``(A) $32,000,000 in fiscal year 2000 constant dollars for 
        all program costs in a single fiscal year;
            ``(B) $126,000,000 in fiscal year 2000 constant dollars for 
        all program acquisition costs for the entire program; or
            ``(C) $378,000,000 in fiscal year 2000 constant dollars for 
        the total life-cycle costs of the program (including operation 
        and maintenance costs).
    ``(b) Adjustment.--The Secretary of Defense may adjust the amounts 
(and base fiscal year) set forth in subsection (a) on the basis of 
Department of Defense escalation rates. An adjustment under this 
subsection shall be effective after the Secretary transmits a written 
notification of the adjustment to the congressional defense committees.
    ``(c) Increments.--In the event any increment of a major automated 
information system program separately meets the requirements for 
treatment as a major automated information system program, the 
provisions of this chapter shall apply to such increment as well as to 
the overall major automated information system program of which such 
increment is a part.

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

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

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

    ``(a) Quarterly Reports by Program Managers.--The program manager 
of a major automated information system program shall, on a quarterly 
basis, submit to the senior Department of Defense official responsible 
for the program a written report identifying any variance in the 
projected development schedule, implementation schedule, life-cycle 
costs, or key performance parameters for the major automated 
information system to be acquired under the program from such 
information as originally submitted to Congress under section 2445b of 
this title.
    ``(b) Senior Officials Responsible for Programs.--For purposes of 
this section, the senior Department of Defense official responsible for 
a major automated information system program is--
        ``(1) in the case of an automated information system to be 
    acquired for a military department, the senior acquisition 
    executive for the military department; or
        ``(2) in the case of any other automated information system to 
    be acquired for the Department of Defense or any component of the 
    Department of Defense, the Under Secretary of Defense for 
    Acquisition, Technology, and Logistics.
    ``(c) Report on Significant Changes in Program.--
        ``(1) In general.--If, based on a quarterly report submitted by 
    the program manager of a major automated information system program 
    pursuant to subsection (a), the senior Department of Defense 
    official responsible for the program makes a determination 
    described in paragraph (2), the official shall, not later than 45 
    days after receiving such report, notify the congressional defense 
    committees in writing of such determination.
        ``(2) Covered determination.--A determination described in this 
    paragraph with respect to a major automated information system 
    program is a determination that--
            ``(A) there has been a schedule change that will cause a 
        delay of more than six months but less than a year in any 
        program schedule milestone or significant event from the 
        schedule originally submitted to Congress under paragraph (1) 
        or (2) of section 2445b(b) of this title;
            ``(B) the estimated program development cost or full life-
        cycle cost for the program has increased by at least 15 
        percent, but less than 25 percent, over the original estimate 
        submitted to Congress under paragraph (3) of section 2445b(b) 
        of this title; or
            ``(C) there has been a significant, adverse change in the 
        expected performance of the major automated information system 
        to be acquired under the program from the parameters originally 
        submitted to Congress under paragraph (4) of section 2445b(b) 
        of this title.
    ``(d) Report on Critical Changes in Program.--
        ``(1) In general.--If, based on a quarterly report submitted by 
    the program manager of a major automated information system program 
    pursuant to subsection (a), the senior Department of Defense 
    official responsible for the program makes a determination 
    described in paragraph (2), the official shall, not later than 60 
    days after receiving such report--
            ``(A) carry out an evaluation of the program under 
        subsection (e); and
            ``(B) submit, through the Secretary of Defense, to the 
        congressional defense committees a report meeting the 
        requirements of subsection (f).
        ``(2) Covered determination.--A determination described in this 
    paragraph with respect to a major automated information system 
    program is a determination that--
            ``(A) 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;
        ``(3) the new estimates of the costs, schedule, and performance 
    parameters with respect to the program and system are reasonable; 
    and
        ``(4) the management structure for the program is adequate to 
    manage and control program costs.
    ``(g) Prohibition on Obligation of Funds.--(1) If the determination 
of a critical change to a program is made by the senior Department 
official responsible for the program under subsection (d)(2) and a 
report is not submitted to Congress within the 60-day period provided 
by subsection (d)(1), appropriated funds may not be obligated for any 
major contract under the program.
    ``(2) The prohibition on the obligation of funds for a program 
under paragraph (1) shall cease to apply on the date on which Congress 
has received a report in compliance with the requirements of subsection 
(d)(2).

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

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

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

    (b) Report on Reporting Requirements Applicable to Major Automated 
Information System Programs.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report setting forth the reporting 
requirements applicable to major automated information system programs 
as of the date of the report, including a specification of such 
reporting requirements considered by the Secretary to be duplicative or 
redundant.
    (c) Effective Date.--
        (1) In general.--The amendments made by subsection (a) shall 
    take effect on January 1, 2008, and shall apply with respect to any 
    major automated information system program for which amounts are 
    requested in the budget of the President (as submitted to Congress 
    under section 1105 of title 31, United States Code) for a fiscal 
    year after fiscal year 2008, regardless of whether the acquisition 
    of the automated information system to be acquired under the 
    program was initiated before, on, or after January 1, 2008.
        (2) Report requirement.--Subsection (b) shall take effect on 
    the date of the enactment of this Act.
    SEC. 817. INTERNAL CONTROLS FOR PROCUREMENTS ON BEHALF OF THE 
      DEPARTMENT OF DEFENSE BY CERTAIN NON-DEFENSE AGENCIES.
    (a) Inspector General Reviews and Determinations.--
        (1) In general.--For each covered non-defense agency, the 
    Inspector General of the Department of Defense and the Inspector 
    General of such non-defense agency shall, not later than March 15, 
    2007, jointly--
            (A) review--
                (i) the procurement policies, procedures, and internal 
            controls of such non-defense agency that are applicable to 
            the procurement of property and services on behalf of the 
            Department by such non-defense agency; and
                (ii) the administration of those policies, procedures, 
            and internal controls; and
            (B) determine in writing whether--
                (i) such non-defense agency is compliant with defense 
            procurement requirements;
                (ii) such non-defense agency is not compliant with 
            defense procurement requirements, but has a program or 
            initiative to significantly improve compliance with defense 
            procurement requirements;
                (iii) neither of the conclusions stated in clauses (i) 
            and (ii) is correct in the case of such non-defense agency; 
            or
                (iv) such non-defense agency is not compliant with 
            defense procurement requirements to such an extent that the 
            interests of the Department of Defense are at risk in 
            procurements conducted by such non-defense agency.
        (2) Actions following certain determinations.--If the 
    Inspectors General determine under paragraph (1) that a conclusion 
    stated in clause (ii), (iii), or (iv) of subparagraph (B) of that 
    paragraph is correct in the case of a covered non-defense agency, 
    such Inspectors General shall, not later than June 15, 2008, 
    jointly--
            (A) conduct a second review, as described in subparagraph 
        (A) of that paragraph, regarding such non-defense agency's 
        procurement of property or services on behalf of the Department 
        of Defense in fiscal year 2007; and
            (B) determine in writing whether such non-defense agency is 
        or is not compliant with defense procurement requirements.
    (b) Compliance With Defense Procurement Requirements.--For the 
purposes of this section, a covered non-defense agency is compliant 
with defense procurement requirements if such non-defense agency's 
procurement policies, procedures, and internal controls applicable to 
the procurement of products and services on behalf of the Department of 
Defense, and the manner in which they are administered, are adequate to 
ensure such non-defense agency's compliance with the requirements of 
laws and regulations that apply to procurements of property and 
services made directly by the Department of Defense.
    (c) Memoranda of Understanding Between Inspectors General.--
        (1) In general.--Not later than 60 days after the date of the 
    enactment of this Act, the Inspector General of the Department of 
    Defense and the Inspector General of each covered non-defense 
    agency shall enter into a memorandum of understanding with each 
    other to carry out the reviews and make the determinations required 
    by this section.
        (2) Scope of memoranda.--The Inspector General of the 
    Department of Defense and the Inspector General of a covered non-
    defense agency may by mutual agreement conduct separate reviews of 
    the procurement of property and services on behalf of the 
    Department of Defense that are conducted by separate business 
    units, or under separate governmentwide acquisition contracts, of 
    such non-defense agency. In any case where such separate reviews 
    are conducted, the Inspectors General shall make separate 
    determinations under paragraph (1) or (2) of subsection (a), as 
    applicable, with respect to each such separate review.
    (d) Limitations on Procurements on Behalf of Department of 
Defense.--
        (1) Limitation during review period.--After March 15, 2007, and 
    before June 16, 2008, no official of the Department of Defense may, 
    except as provided in subsection (e) or (f), order, purchase, or 
    otherwise procure property or services in an amount in excess of 
    $100,000 through a covered non-defense agency for which a 
    determination described in clause (iii) or (iv) of paragraph (1)(B) 
    of subsection (a) has been made under subsection (a).
        (2) Limitation after review period.--After June 15, 2008, no 
    official of the Department of Defense may, except as provided in 
    subsection (e) or (f), order, purchase, or otherwise procure 
    property or services in an amount in excess of $100,000 through a 
    covered non-defense agency that, having been subject to review 
    under this section, has not been determined under this section as 
    being compliant with defense procurement requirements.
        (3) Limitation following failure to reach mou.--Commencing on 
    the date that is 60 days after the date of the enactment of this 
    Act, if a memorandum of understanding between the Inspector General 
    of the Department of Defense and the Inspector General of a covered 
    non-defense agency cannot be attained causing the review required 
    by this section to not be performed, no official of the Department 
    of Defense, except as provided in subsection (e) or (f), may order, 
    purchase or otherwise procure property or services in an amount in 
    excess of $100,000 through such non-defense agency.
    (e) Exception From Applicability of Limitations.--
        (1) Exception.--No limitation applies under subsection (d) with 
    respect to the procurement of property and services on behalf of 
    the Department of Defense by a covered non-defense agency during 
    any period that there is in effect a determination of the Under 
    Secretary of Defense for Acquisition, Technology, and Logistics, 
    made in writing, that it is necessary in the interest of the 
    Department of Defense to continue to procure property and services 
    through such non-defense agency.
        (2) Applicability of determination.--A written determination 
    with respect to a covered non-defense agency under paragraph (1) is 
    in effect for the period, not in excess of one year, that the Under 
    Secretary shall specify in the written determination. The Under 
    Secretary may extend from time to time, for up to one year at a 
    time, the period for which the written determination remains in 
    effect.
    (f) Termination of Applicability of Limitations.--Subsection (d) 
shall cease to apply to a covered non-defense agency on the date on 
which the Inspector General of the Department of Defense and the 
Inspector General of such non-defense agency jointly--
        (1) determine that such non-defense agency is compliant with 
    defense procurement requirements; and
        (2) notify the Secretary of Defense of that determination.
    (g) Identification of Procurements Made During a Particular Fiscal 
Year.--For the purposes of subsection (a), a procurement shall be 
treated as being made during a particular fiscal year to the extent 
that funds are obligated by the Department of Defense for that 
procurement in that fiscal year.
    (h) Resolution of Disagreements.--If the Inspector General of the 
Department of Defense and the Inspector General of a covered non-
defense agency are unable to agree on a joint determination under 
subsection (a) or (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
        (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).

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)).
    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.
        (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:
            (A) The methods used by executive agencies to identify a 
        contract as an advisory and assistance services contract, as 
        defined in section 303I(i) of the Federal Property and 
        Administrative Services Act of 1949 (41 U.S.C. 253i(i)).
            (B) The number of such contracts awarded by each executive 
        agency during the five-year period preceding the date of the 
        enactment of this Act.
            (C) The average annual expenditures by each executive 
        agency for such contracts.
            (D) The average length of such contracts.
            (E) The number of such contracts recompeted and awarded to 
        the previous award winner.
        (4) Prohibition on use of authority by executive agencies if 
    report not submitted.--The head of an executive agency may not 
    issue a waiver under paragraph (1) if the report required by 
    paragraph (3) is not submitted by the date set forth in that 
    paragraph.
    (c) Termination of 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.
            (B) The Committees on Armed Services and on Government 
        Reform of the House of Representatives.

      Subtitle D--United States Defense Industrial Base Provisions

    SEC. 841. ASSESSMENT AND ANNUAL REPORT OF UNITED STATES DEFENSE 
      INDUSTRIAL BASE CAPABILITIES AND ACQUISITIONS OF ARTICLES, 
      MATERIALS, AND SUPPLIES MANUFACTURED OUTSIDE THE UNITED STATES.
    Section 812 of the National Defense Authorization Act for Fiscal 
Year 2004 (Public Law 108-136; 117 Stat. 1542) is amended--
        (1) by amending the heading to read as follows:
    ``SEC. 812. ASSESSMENT AND ANNUAL REPORT OF UNITED STATES DEFENSE 
      INDUSTRIAL BASE CAPABILITIES AND ACQUISITIONS OF ARTICLES, 
      MATERIALS, AND SUPPLIES MANUFACTURED OUTSIDE THE UNITED 
      STATES.'';
        (2) by adding at the end of subsection (c)(2)(A) the following 
    new clauses:
        ``(v) The dollar value of any articles, materials, or supplies 
    purchased that were manufactured outside of the United States.
        ``(vi) An itemized list of all waivers granted with respect to 
    such articles, materials, or supplies under the Buy American Act 
    (41 U.S.C. 10a et seq.).
        ``(vii) A summary of--
            ``(I) the total procurement funds expended on articles, 
        materials, and supplies manufactured inside the United States; 
        and
            ``(II) the total procurement funds expended on articles, 
        materials, and supplies manufactured outside the United 
        States.''; and
        (3) by adding at the end the following new subsections:
    ``(d) Public Availability.--The Secretary of Defense shall make the 
report submitted under subsection (c) publicly available to the maximum 
extent practicable.
    ``(e) Applicability.--This section shall not apply to acquisitions 
made by an agency, or component thereof, that is an element of the 
intelligence community as set forth in or designated under section 3(4) 
of the National Security Act of 1947 (50 U.S.C. 401a(4)).''.
    SEC. 842. PROTECTION OF STRATEGIC MATERIALS CRITICAL TO NATIONAL 
      SECURITY.
    (a) Requirement to Buy From American Sources.--
        (1) In general.--Subchapter V of chapter 148 of title 10, 
    United States Code, is amended by inserting after section 2533a the 
    following new section:

``Sec. 2533b. Requirement to buy strategic materials critical to 
            national security from American sources; exceptions

    ``(a) Requirement.--Except as provided in subsections (b) through 
(j), funds appropriated or otherwise available to the Department of 
Defense may not be used for procurement of--
        ``(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 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 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:

``Sec. 187. Strategic Materials Protection Board

    ``(a) Establishment.--(1) The Secretary of Defense shall establish 
a Strategic Materials Protection Board.
    ``(2) The Board shall be composed of representatives of the 
following:
        ``(A) The Secretary of Defense, who shall be the chairman of 
    the Board.
        ``(B) The Under Secretary of Defense for Acquisition, 
    Technology, and Logistics.
        ``(C) The Under Secretary of Defense for Intelligence.
        ``(D) The Secretary of the Army.
        ``(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 former officials of the 
Department of Defense who served in acquisition-related positions were 
provided compensation by major defense contractors during such calendar 
year.
    (b) Objectives of Report.--The objectives of the report required by 
subsection (a) shall be to determine the effectiveness of existing 
statutes and regulations governing the employment of former Department 
of Defense officials by defense contractors, including section 207 of 
title 18, United States Code, and section 27 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 423). At a minimum, the report shall 
assess the extent to which such former officials who receive 
compensation from defense contractors have been assigned by those 
contractors to work on--
        (1) Department of Defense contracts or programs for which such 
    former officials personally had program oversight responsibility or 
    decision-making authority when they served in the Department of 
    Defense; or
        (2) Department of Defense contracts or programs which are the 
    responsibility of the agency, office, or command in which such 
    former officials served in the Department of Defense.
    (c) Confidentiality Requirement.--The report required by subsection 
(a) shall not include the names of specific former Department of 
Defense officials who receive compensation from defense contractors or 
information from which such individuals could be identified.
    (d) Access to Information.--In accordance with the contract clause 
required pursuant to section 2313(c) of title 10, United States Code, a 
major defense contractor shall provide the Comptroller General access 
to information requested by the Comptroller General for the purpose of 
this review regarding former officials of the Department of Defense who 
have received compensation from the contractor during the relevant 
calendar year.
    (e) Definitions.--In this section:
        (1) Major defense contractor.--The term ``major defense 
    contractor'' includes any company that received more than 
    $500,000,000 in contract awards from the Department of Defense in 
    fiscal year 2005.
        (2) Former department of defense official.--The term ``former 
    Department of Defense official'' means either of the following:
            (A) A former Department of Defense employee.
            (B) A former or retired member of the Armed Forces.
    SEC. 852. REPORT AND REGULATIONS ON EXCESSIVE PASS-THROUGH CHARGES.
    (a) Comptroller General Report on Excessive Pass-Through Charges.--
        (1) In general.--Not later than 180 days after the date of the 
    enactment of this Act, the Comptroller General shall issue a report 
    on pass-through charges on contracts or subcontracts (or task or 
    delivery orders) that are entered into for or on behalf of the 
    Department of Defense.
        (2) Matters covered.--The report issued under this subsection--
            (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 pass-through 
    charges on contracts or subcontracts (or task or delivery orders) 
    that are entered into for or on behalf of the Department of Defense 
    are not excessive in relation to the cost of work performed by the 
    relevant contractor or subcontractor.
        (2) Scope of regulations.--The regulations prescribed under 
    this subsection--
            (A) shall not apply to any firm, fixed-price contract or 
        subcontract (or task or delivery order) that is--
                (i) awarded on the basis of adequate price competition; 
            or
                (ii) for the acquisition of a commercial item, as 
            defined in section 4(12) of the Office of Federal 
            Procurement Policy Act (41 U.S.C. 403(12)); and
            (B) may include such additional exceptions as the Secretary 
        determines to be necessary in the interest of the national 
        defense.
        (3) Definition.--In this section, the term ``excessive pass-
    through charge'', with respect to a contractor or subcontractor 
    that adds no, or negligible, value to a contract or subcontract, 
    means a charge to the Government by the contractor or subcontractor 
    that is for overhead or profit on work performed by a lower-tier 
    contractor or subcontractor (other than charges for the direct 
    costs of managing lower-tier contracts and subcontracts and 
    overhead and profit based on such direct costs).
        (4) Report.--Not later than one year after the date of the 
    enactment of this Act, the Secretary of Defense shall submit to the 
    congressional defense committees a report on the steps taken to 
    implement the requirements of this subsection, including--
            (A) any standards for determining when no, or negligible, 
        value has been added to a contract by a contractor or 
        subcontractor;
            (B) any procedures established for preventing excessive 
        pass-through charges; and
            (C) any exceptions determined by the Secretary to be 
        necessary in the interest of the national defense.
        (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 manager and 
    the milestone decision authority to ensure that such parameters are 
    met;
        (2) authorities available to the program manager, including, to 
    the extent appropriate, the authority to object to the addition of 
    new program requirements that would be inconsistent with the 
    parameters established at Milestone B (or Key Decision Point B in 
    the case of a space program) and reflected in the performance 
    agreement; and
        (3) the extent to which a program manager for such period 
    should continue in the position without interruption until the 
    delivery of the first production units of the program.
    (e) Reports.--
        (1) Report by secretary of defense.--Not later than 270 days 
    after the date of enactment of this Act, the Secretary of Defense 
    shall submit to the congressional defense committees a report on 
    the strategy developed pursuant to subsection (a) and the guidance 
    issued pursuant to subsections (b) and (c).
        (2) Report by comptroller general.--Not later than one year 
    after the date of enactment of this Act, the Comptroller General 
    shall submit to the congressional defense committees a report on 
    the actions taken by the Secretary of Defense to implement the 
    requirements of this section.
    SEC. 854. JOINT POLICIES ON REQUIREMENTS DEFINITION, CONTINGENCY 
      PROGRAM MANAGEMENT, AND CONTINGENCY CONTRACTING.
    (a) In General.--
        (1) Joint policy requirement.--Chapter 137 of title 10, United 
    States Code, is amended by adding at the end the following new 
    section:

``Sec. 2333. Joint policies on requirements definition, contingency 
            program management, and contingency contracting

    ``(a) Joint Policy Requirement.--The Secretary of Defense, in 
consultation with the Chairman of the Joint Chiefs of Staff, shall 
develop joint policies for requirements definition, contingency program 
management, and contingency contracting during combat operations and 
post-conflict operations.
    ``(b) Requirements Definition Matters Covered.--The joint policy 
for requirements definition required by subsection (a) shall, at a 
minimum, provide for the following:
        ``(1) The assignment of a senior commissioned officer or 
    civilian member of the senior executive service, with appropriate 
    experience and qualifications related to the definition of 
    requirements to be satisfied through acquisition contracts (such as 
    for delivery of products or services, performance of work, or 
    accomplishment of a project), to act as head of requirements 
    definition and coordination during combat operations, post-conflict 
    operations, and contingency operations, if required, including 
    leading a requirements review board involving all organizations 
    concerned.
        ``(2) An organizational approach to requirements definition and 
    coordination during combat operations, post-conflict operations, 
    and contingency operations that is designed to ensure that 
    requirements are defined in a way that effectively implements 
    United States Government and Department of Defense objectives, 
    policies, and decisions regarding the allocation of resources, 
    coordination of interagency efforts in the theater of operations, 
    and alignment of requirements with the proper use of funds.
    ``(c) Contingency Program Management Matters Covered.--The joint 
policy for contingency program management required by subsection (a) 
shall, at a minimum, provide for the following:
        ``(1) The assignment of a senior commissioned officer or 
    civilian member of the senior executive service, with appropriate 
    program management experience and qualifications, to act as head of 
    program management during combat operations, post-conflict 
    operations, and contingency operations, including stabilization and 
    reconstruction operations involving multiple United States 
    Government agencies and international organizations, if required.
        ``(2) A preplanned organizational approach to program 
    management during combat operations, post-conflict operations, and 
    contingency operations that is designed to ensure that the 
    Department of Defense is prepared to conduct such program 
    management.
        ``(3) Identification of a deployable cadre of experts, with the 
    appropriate tools and authority, and trained in processes under 
    paragraph (6).
        ``(4) Utilization of the hiring and appointment authorities 
    necessary for the rapid deployment of personnel to ensure the 
    availability of key personnel for sufficient lengths of time to 
    provide for continuing program and project management.
        ``(5) A requirement to provide training (including training 
    under a program to be created by the Defense Acquisition 
    University) to program management personnel in--
            ``(A) the use of laws, regulations, policies, and 
        directives related to program management in combat or 
        contingency environments;
            ``(B) the integration of cost, schedule, and performance 
        objectives into practical acquisition strategies aligned with 
        available resources and subject to effective oversight; and
            ``(C) procedures of the Department of Defense related to 
        funding mechanisms and contingency contract management.
        ``(6) Appropriate steps to ensure that training is maintained 
    for such personnel even when they are not deployed in a contingency 
    operation.
        ``(7) Such steps as may be needed to ensure jointness and 
    cross-service coordination in the area of program management during 
    contingency operations.
    ``(d) Contingency Contracting Matters Covered.--(1) The joint 
policy for contingency contracting required by subsection (a) shall, at 
a minimum, provide for the following:
        ``(A) The designation of a senior commissioned officer or 
    civilian member of the senior executive service in each military 
    department with the responsibility for administering the policy.
        ``(B) The assignment of a senior commissioned officer with 
    appropriate acquisition experience and qualifications to act as 
    head of contingency contracting during combat operations, post-
    conflict operations, and contingency operations, who shall report 
    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.
        ``(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.
                (v) The effect of different periods of deployment on 
            continuity in the acquisition process.
        (2) Final report.--Not later than 18 months after the date of 
    the enactment of this Act, the Secretary of Defense shall submit to 
    the committees referred to in paragraph (1)(A) a final report on 
    requirements definition, contingency contracting, and program 
    management, containing a discussion of the implementation of the 
    joint policies developed under section 2333 of title 10, United 
    States Code (as so added), including updated discussions of the 
    matters covered in the interim report. In addition, the report 
    should include a discussion of the actions taken to ensure that the 
    joint policies will be adequately resourced at the time of 
    execution.
    SEC. 855. CLARIFICATION OF AUTHORITY TO CARRY OUT CERTAIN PROTOTYPE 
      PROJECTS.
    Section 845(a) of the National Defense Authorization Act for Fiscal 
Year 1994 (10 U.S.C. 2371 note) is amended--
        (1) in paragraph (2)(A), by inserting ``or, for the Defense 
    Advanced Projects Agency or the Missile Defense Agency, the 
    director of the agency'' after ``(41 U.S.C. 414(c))''; and
        (2) in paragraph (3), by inserting ``or director of the Defense 
    Advanced Projects Agency or Missile Defense Agency'' after 
    ``executive''.
    SEC. 856. CONTRACTING WITH EMPLOYERS OF PERSONS WITH DISABILITIES.
    (a) Inapplicability of Certain Laws.--
        (1) Inapplicability of the randolph-sheppard act to contracts 
    and subcontracts for military dining facility support services 
    covered by javits-wagner-o'day act.--The Randolph-Sheppard Act (20 
    U.S.C. 107 et seq.) does not apply to full food services, mess 
    attendant services, or services supporting the operation of a 
    military dining facility that, as of the date of the enactment of 
    this Act, were services on the procurement list established under 
    section 2 of the Javits-Wagner-O'Day Act (41 U.S.C. 47).
        (2) Inapplicability of the javits-wagner-o'day act to contracts 
    for the operation of a military dining facility.--(A) The Javits-
    Wagner-O'Day Act (41 U.S.C. 46 et seq.) does not apply at the prime 
    contract level to any contract entered into by the Department of 
    Defense as of the date of the enactment of this Act with a State 
    licensing agency under the Randolph-Sheppard Act (20 U.S.C. 107 et 
    seq.) for the operation of a military dining facility.
        (B) The Javits-Wagner-O'Day Act shall apply to any subcontract 
    entered into by a Department of Defense contractor for full food 
    services, mess attendant services, and other services supporting 
    the operation of a military dining facility.
        (3) Repeal of superseded law.--Subsections (a) and (b) of 
    section 853 of the Ronald W. Reagan National Defense Authorization 
    Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2021) are 
    repealed.
    (b) Review and Report by Comptroller General of Randolph-Sheppard 
and Javits-Wagner-O'Day Contracts.--
        (1) In general.--The Comptroller General shall conduct a review 
    of a representative sample of food service contracts described in 
    paragraph (2) and determine in writing the following:
            (A) Differences in operational procedures and 
        administration of contracts awarded by the Department of 
        Defense under the Randolph-Sheppard Act (20 U.S.C. 107 et seq.) 
        and the Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.) on a 
        State-by-State basis with regard to the relationship between 
        State licensing agencies and blind vendors.
            (B) Differences in competition, source selection, and 
        management processes and procedures for contracts awarded by 
        the Department under the Randolph-Sheppard Act and the Javits-
        Wagner-O'Day Act, including a review of the average total cost 
        of contract awards and compensation packages to all 
        beneficiaries.
            (C) Precise methods used to determine whether a price is 
        fair and reasonable under contracts awarded by the Department 
        under the Randolph-Sheppard Act and the Javits-Wagner-O'Day 
        Act, as required under the Federal Acquisition Regulation and 
        the Defense Federal Acquisition Regulation Supplement.
        (2) Contracts covered.--For purposes of the review under 
    paragraph (1), a food service contract described in this paragraph 
    is a contract--
            (A) for full food services, mess attendant services, or 
        services supporting the operation of all or any part of a 
        military dining facility;
            (B) that was awarded under either the Randolph-Sheppard Act 
        or the Javits-Wagner-O'Day Act; and
            (C) that is in effect on the date of the enactment of this 
        Act.
        (3) Report.--Not later than March 1, 2007, the Comptroller 
    General shall submit to the Committees on Armed Services of the 
    Senate and the House of Representatives a report on the review 
    conducted under this subsection, with such findings and 
    recommendations as the Comptroller General considers appropriate.
    (c) Requirements for Inspectors General of Department of Defense 
and Department of Education.--
        (1) Review of management procedures.--Not 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 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,''.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department of Defense Management

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

                      Subtitle B--Space Activities

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

              Subtitle C--Chemical Demilitarization Program

Sec. 921. Sense of Congress on completion of destruction of United 
          States chemical weapons stockpile.
Sec. 922. Comptroller General review of cost-benefit analysis of off-
          site versus on-site treatment and disposal of hydrolysate 
          derived from neutralization of VX nerve gas at Newport 
          Chemical Depot, Indiana.
Sec. 923. Incentives clauses in chemical demilitarization contracts.
Sec. 924. Chemical demilitarization program contracting authority.

                Subtitle D--Intelligence-Related Matters

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

                        Subtitle E--Other Matters

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

              Subtitle A--Department of Defense Management

    SEC. 901. INCREASE IN AUTHORIZED NUMBER OF ASSISTANT SECRETARIES OF 
      DEFENSE.
    (a) Increase.--Section 138(a) of title 10, United States Code, is 
amended by striking ``nine'' and inserting ``ten''.
    (b) Conforming Amendment.--Section 5315 of title 5, United States 
Code, is amended by striking ``(9)'' after ``Assistant Secretaries of 
Defense'' and inserting ``(10)''.
    SEC. 902. MODIFICATIONS TO THE COMBATANT COMMANDER INITIATIVE FUND.
    (a) Addition to Authorized Activities.--Subsection (b)(6) of 
section 166a of title 10, United States Code is amended by striking 
``civil assistance'' and inserting ``civic assistance, to include 
urgent and unanticipated humanitarian relief and reconstruction 
assistance''.
    (b) Additional Priority Consideration.--Subsection (c) of such 
section is amended--
        (1) by striking ``and'' at the end of paragraph (1);
        (2) by striking the period at the end of paragraph (2) and 
    inserting ``; and''; and
        (3) by adding at the end the following new paragraph:
        ``(3) the provision of funds to be used for urgent and 
    unanticipated humanitarian relief and reconstruction assistance, 
    particularly in a foreign country where the armed forces are 
    engaged in a contingency operation.''.
    SEC. 903. ADDITION TO MEMBERSHIP OF SPECIFIED COUNCIL.
    Section 179(a) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
        ``(5) The commander of the United States Strategic Command.''.
    SEC. 904. CONSOLIDATION AND STANDARDIZATION OF AUTHORITIES RELATING 
      TO DEPARTMENT OF DEFENSE REGIONAL CENTERS FOR SECURITY STUDIES.
    (a) Basic Authorities for Regional Centers.--
        (1) In general.--Section 184 of title 10, United States Code, 
    is amended to read as follows:

``Sec. 184. Regional Centers for Security Studies

    ``(a) In General.--The Secretary of Defense shall administer the 
Department of Defense Regional Centers for Security Studies in 
accordance with this section as international venues for bilateral and 
multilateral research, communication, and exchange of ideas involving 
military and civilian participants.
    ``(b) Regional Centers Specified.--(1) A Department of Defense 
Regional Center for Security Studies is a Department of Defense 
institution that--
        ``(A) is operated, and designated as such, by the Secretary of 
    Defense for the study of security issues relating to a specified 
    geographic region of the world; and
        ``(B) serves as a forum for bilateral and multilateral 
    research, communication, and exchange of ideas involving military 
    and civilian participants.
    ``(2) The Department of Defense Regional Centers for Security 
Studies are the following:
        ``(A) The George C. Marshall European Center for Security 
    Studies, established in 1993 and located in Garmisch-Partenkirchen, 
    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.
        ``(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.
    ``(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--
            (A) is in compliance with department-wide acquisition 
        policy; and
            (B) is coordinated with and mutually supportive of 
        acquisition programs of the military departments.
        (2) Urgent requirements.--Guidance developed under paragraph 
    (1) shall take into account the need to fulfill the urgent 
    requirements of the commanders of combatant commands and the heads 
    of Defense Agencies and to ensure that those requirements are 
    addressed expeditiously.
    (c) Consultation.--The senior acquisition official designated under 
subsection (a) shall on a regular basis consult on matters related to 
requirements and acquisition with the commanders of combatant commands 
and the heads of Defense Agencies referred to in that subsection.
    (d) Deadline for Designation.--The Secretary of Defense shall make 
the designation required by subsection (a) not later than 180 days 
after the date of the enactment of this Act.
    SEC. 906. STANDARDIZATION OF STATUTORY REFERENCES TO ``NATIONAL 
      SECURITY SYSTEM'' WITHIN LAWS APPLICABLE TO DEPARTMENT OF 
      DEFENSE.
    (a) Defense Business Systems.--Section 2222(j)(6) of title 10, 
United States Code, is amended by striking ``in section 2315 of this 
title'' and inserting ``in section 3542(b)(2) of title 44''.
    (b) Chief Information Officer Responsibilities.--Section 2223(c)(3) 
of such title is amended by striking ``section 11103 of title 40'' and 
inserting ``section 3542(b)(2) of title 44''.
    (c) Procurement of Automatic Data Processing Equipment and 
Services.--The text of section 2315 of such title is amended to read as 
follows:
    ``For purposes of subtitle III of title 40, the term `national 
security system', with respect to a telecommunications and information 
system operated by the Department of Defense, has the meaning given 
that term by section 3542(b)(2) of title 44.''.
    SEC. 907. CORRECTION OF REFERENCE TO PREDECESSOR OF DEFENSE 
      INFORMATION SYSTEMS AGENCY.
    Paragraph (1) of section 193(f) of title 10, United States Code, is 
amended to read as follows:
        ``(1) The Defense Information Systems Agency.''.

                      Subtitle B--Space Activities

    SEC. 911. DESIGNATION OF SUCCESSOR ORGANIZATIONS FOR THE 
      DISESTABLISHED INTERAGENCY GLOBAL POSITIONING EXECUTIVE BOARD.
    (a) Successor Organizations.--Section 8 of the Commercial Space 
Transportation Competitiveness Act of 2000 (10 U.S.C. 2281 note) is 
amended by striking ``by Congress'' and all that follows and inserting 
``for the functions and activities of the following organizations 
established pursuant to the United States Space-Based Position, 
Navigation, and Timing Policy issued December 8, 2004 (and any 
successor organization, to the extent the successor organization 
performs the functions of the specified organization):
        ``(1) The interagency committee known as the National Space-
    Based Positioning, Navigation, and Timing Executive Committee.
        ``(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:

``Sec. 2273a. Operationally Responsive Space Program Office

    ``(a) Establishment.--The Secretary of Defense shall establish 
within the Department of Defense an office to be known as the 
Operationally Responsive Space Program Office (in this section referred 
to as the `Office').
    ``(b) Head of Office.--The head of the Office shall be--
        ``(1) the Department of Defense Executive Agent for Space; or
        ``(2) the designee of the Secretary of Defense, who shall 
    report to the Department of Defense Executive Agent for Space.
    ``(c) Mission.--The mission of the Office shall be--
        ``(1) to contribute to the development of low-cost, rapid 
    reaction payloads, busses, spacelift, and launch control 
    capabilities in order to fulfill joint military operational 
    requirements for on-demand space support and reconstitution; and
        ``(2) to coordinate and execute operationally responsive space 
    efforts across the Department of Defense with respect to planning, 
    acquisition, and operations.
    ``(d) Elements.--The Secretary of Defense shall select the elements 
of the Department of Defense to be included in the Office so as to 
contribute to the development of capabilities for operationally 
responsive space and to achieve a balanced representation 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;
        ``(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.
    (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
        (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.
    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 On-Site 
Treatment and Disposal of Newport Caustic Hydrolysate'' and dated April 
24, 2006.
    (b) Content of Review.--In conducting the review under subsection 
(a), the Comptroller General shall consider and assess at a minimum the 
following matters:
        (1) The adequacy of the rationale contained in the cost-benefit 
    analysis referred to in subsection (a) in dismissing five of the 
    eight technologies for hydrolysate treatment directed for 
    consideration on page 116 of the Report of the Committee on Armed 
    Services of the House of Representatives on H.R. 1815 (House Report 
    109-89).
        (2) The rationale for the failure of the Secretary of the Army 
    to consider other technical solutions, such as constructing a 
    wastewater disposal system at the Newport Chemical Depot.
        (3) The adequacy of the cost-benefit analysis presented for the 
    three technologies considered.
    (c) Limitation on Transport 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 
    activities within target incentive ranges specified in such clause.
        (2) Limitation on incentive payments.--The maximum incentive 
    payment under an incentives clause with respect to a chemical 
    demilitarization facility may not exceed amounts as follows:
            (A) In the case of an incentive payment for the completion 
        of destruction operations within the target incentive range 
        specified in such clause, $110,000,000.
            (B) In the case of an incentive payment for the completion 
        of facility closure activities within the target incentive 
        range specified in such clause, $55,000,000.
        (3) Target ranges.--An incentives clause in a contract under 
    this section shall specify the target incentive ranges of costs for 
    completion of destruction operations and facility closure 
    activities, respectively, as jointly agreed upon by the contracting 
    officer and the contractor concerned. An incentives clause shall 
    require a proportionate reduction in the maximum incentive payment 
    amounts in the event that the contractor exceeds an agreed-upon 
    target cost if such excess costs are the responsibility of the 
    contractor.
        (4) Calculation of incentive payments.--The amount of the 
    incentive payment earned by a contractor for a chemical 
    demilitarization facility under an incentives clause under this 
    section shall be based upon a determination by the Secretary on how 
    early in the target incentive range specified in such clause 
    destruction operations or facility closure activities, as the case 
    may be, are completed.
        (5) Consistency with existing obligations.--The provisions of 
    any incentives clause under this section shall be consistent with 
    the obligation of the Secretary of Defense under section 
    1412(c)(1)(A) of the Department of Defense Authorization Act, 1986, 
    to provide for maximum protection for the environment, the general 
    public, and the personnel who are involved in the destruction of 
    the lethal chemical agents and munitions.
        (6) Additional terms and conditions.--In negotiating the 
    inclusion of an incentives clause in a contract under this section, 
    the Secretary may include in such clause such additional terms and 
    conditions as the Secretary considers appropriate.
    (c) Additional Limitation on Payments.--
        (1) Payment conditional on performance.--No payment may be made 
    under an incentives clause under this section unless the Secretary 
    determines that the contractor concerned has satisfactorily 
    performed its duties under such incentives clause.
        (2) Payment contingent on appropriations.--An incentives clause 
    under this section shall specify that the obligation of the 
    Government to make payment under such incentives clause is subject 
    to the availability of appropriations for that purpose. Amounts 
    appropriated for Chemical Agents and Munitions Destruction, 
    Defense, shall be available for payments under incentives clauses 
    under this section.
    SEC. 924. CHEMICAL DEMILITARIZATION PROGRAM CONTRACTING AUTHORITY.
    (a) Multiyear Contracting Authority.--The Secretary of Defense may 
carry out responsibilities under section 1412(a) of the Department of 
Defense Authorization Act, 1986 (50 U.S.C. 1521(a)) through multiyear 
contracts entered into before the date of the enactment of this Act.
    (b) Availability of Funds.--Contracts entered into under subsection 
(a) shall be funded through annual appropriations for the destruction 
of chemical agents and munitions.

                Subtitle D--Intelligence-Related Matters

    SEC. 931. FOUR-YEAR EXTENSION OF AUTHORITY OF SECRETARY OF DEFENSE 
      TO ENGAGE IN COMMERCIAL ACTIVITIES AS SECURITY FOR INTELLIGENCE 
      COLLECTION ACTIVITIES.
    Section 431(a) of title 10, United States Code, is amended by 
striking ``December 31, 2006'' and inserting ``December 31, 2010''.
    SEC. 932. ANNUAL REPORTS ON INTELLIGENCE OVERSIGHT ACTIVITIES OF 
      THE DEPARTMENT OF DEFENSE.
    (a) In General.--Subchapter I of chapter 21 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 427. Intelligence oversight activities of Department of Defense: 
            annual reports

    ``(a) Annual Reports Required.--(1) Not later than March 1 of each 
year, the Secretary of Defense shall submit--
        ``(A) to the congressional committees specified in subparagraph 
    (A) of paragraph (2) a report on the intelligence oversight 
    activities of the Department of Defense during the previous 
    calendar year insofar as such oversight activities relate to 
    tactical intelligence and intelligence-related activities of the 
    Department; and
        ``(B) to the congressional committees specified in subparagraph 
    (B) of paragraph (2) a report on the intelligence oversight 
    activities of the Department of Defense during the previous 
    calendar year insofar as such oversight activities relate to 
    intelligence and intelligence-related activities of the Department 
    other than those specified in subparagraph (A).
    ``(2)(A) The committees specified in this subparagraph are the 
following:
        ``(i) The Committee on Armed Services and the Committee on 
    Appropriations of the Senate.
        ``(ii) The Permanent Select Committee on Intelligence, the 
    Committee on Armed Services, and the Committee on Appropriations of 
    the House of Representatives.
    ``(B) The committees specified in this subparagraph are the 
following:
        ``(i) The Select Committee on Intelligence, the Committee on 
    Armed Services, and the Committee on Appropriations of the Senate.
        ``(ii) The Permanent Select Committee on Intelligence and the 
    Committee on Appropriations of the House of Representatives.
    ``(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.
    ``(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);
            (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.
    (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).
    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--
            ``(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 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.

                   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.

                     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, with 
respect to any such authorized amount, by the amount by which 
appropriations pursuant to such authorization are increased by a 
supplemental appropriation, or decreased by a rescission, or both, or 
are increased by a transfer of funds, pursuant to title V of the 
Emergency Supplemental Appropriations Act for Defense, the Global War 
on Terror, and Hurricane Recovery, 2006.
SEC. 1003. REDUCTION IN CERTAIN AUTHORIZATIONS DUE TO SAVINGS RELATING 
TO LOWER INFLATION.
    (a) Reduction.--The aggregate amount authorized to be appropriated 
by titles I, II, and III is the amount equal to the sum of all the 
amounts authorized to be appropriated by such titles reduced by 
$757,051,000.
    (b) Source of Savings.--Reductions required in order to comply with 
subsection (a) shall be derived from savings resulting from lower-than-
expected inflation as a result of a review of the inflation assumptions 
used in the preparation of the budget of the President for fiscal year 
2007, as submitted to Congress pursuant to section 1005 of title 31, 
United States Code.
    (c) Allocation of Reduction.--The Secretary of Defense shall 
allocate the reduction required by subsection (a) among the amounts 
authorized to be appropriated for accounts in titles I, II, and III to 
reflect the extent to which net savings from lower-than-expected 
inflation are allocable to amounts authorized to be appropriated to 
such accounts.
SEC. 1004. INCREASE IN FISCAL YEAR 2006 GENERAL TRANSFER AUTHORITY.
    Section 1001(a)(2) of the National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3418) is amended by 
striking ``$3,500,000,000'' and inserting ``$5,000,000,000''.
SEC. 1005. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
FISCAL YEAR 2007.
    (a) Fiscal Year 2007 Limitation.--The total amount contributed by 
the Secretary of Defense in fiscal year 2007 for the common-funded 
budgets of NATO may be any amount up to, but not in excess of, the 
amount specified in subsection (b) (rather than the maximum amount that 
would otherwise be applicable to those contributions under the fiscal 
year 1998 baseline limitation).
    (b) Total Amount.--The amount of the limitation applicable under 
subsection (a) is the sum of the following:
        (1) The amounts of unexpended balances, as of the end of fiscal 
    year 2006, of funds appropriated for fiscal years before fiscal 
    year 2007 for payments for those budgets.
        (2) The amount specified in subsection (c)(1).
        (3) The amount specified in subsection (c)(2).
        (4) The total amount of the contributions authorized to be made 
    under section 2501.
    (c) Authorized Amounts.--Amounts authorized to be appropriated by 
titles II and III of this Act are available for contributions for the 
common-funded budgets of NATO as follows:
        (1) Of the amount provided in section 201(1), $797,000 for the 
    Civil Budget.
        (2) Of the amount provided in section 301(1), $310,277,000 for 
    the Military Budget.
    (d) Definitions.--For purposes of this section:
        (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''.
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.
        (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.
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.
                (iii) Government-leased property for contractor-owned 
            and contractor-operated facility.
    (c) Options for New Use Arrangements.--In evaluating the options 
under subsection (b)(2)(C), the Secretary of the Navy shall include an 
evaluation of each of the following:
        (1) The anticipated future military vessel repair and workload 
    on Guam in relation to the 2006 Quadrennial Defense Review, issued 
    on February 6, 2006, pursuant to section 118 of title 10, United 
    States Code.
        (2) The anticipated military vessel repair and workload 
    attributable to vessels comprising the Maritime Prepositioning Ship 
    Squadron Three.
        (3) The anticipated military vessel repair and workload due to 
    a change in section 7310 of title 10, United States Code, that 
    would designate Guam as a United States homeport facility.
        (4) The expected workload if the submarine tender the U.S.S. 
    Frank Cable (AS-40) is decommissioned.
        (5) The estimated reacquisition costs of transferred Government 
    property.
        (6) Costs to improve floating dry dock mooring certification 
    and required nuclear certification for the floating dry dock 
    designated as AFDB-8 to conduct the following maintenance:
            (A) Dry-docking selected restricted availabilities and mid-
        term availability for attack submarines.
            (B) Dry-docking phased maintenance availabilities for 
        amphibious vessels, including to amphibious assault ships, dock 
        landing ships, and amphibious transport dock ships.
            (C) Dry-docking phased maintenance availabilities for 
        surface combatants, including cruisers, destroyers, and 
        frigates.
        (7) Commercial opportunities for development to expand 
    commercial ship repair and general industrial services, given anti-
    terrorism force protection requirements at the current facility.
        (8) Estimates from three contractors for the maintenance and 
    repair costs associated with executing a multiship, multioption 
    contract that would generate a minimum 60,000 manday commitment for 
    the Department of the Navy and Military Sealift Command vessels.
        (9) A projection of the maintenance and repair costs associated 
    with executing a minimum 60,000 mandays for the Department of the 
    Navy and Military Sealift Command vessels as a Government-owned and 
    Government-operated Navy ship repair facility.
    (d) Input From Contractors.--In evaluating the options under 
clauses (ii) and (iii) of subsection (b)(2)(C) for the purposes of 
paragraphs (1), (2), and (3) of subsection (c), the Secretary of the 
Navy shall seek input from at least three contractors on the viability 
of operations based on the projected workload fiscal years 2008 through 
2013.
    (e) Recommendations.--The Secretary of the Navy shall include in 
the report required under subsection (a) the following:
        (1) The recommendations of the Secretary with respect to 
    continuation of the existing Guam Shipyard lease based on 
    evaluations conducted pursuant to subsection (b)(1).
        (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 
    incentives in naval vessel construction contracts and for the 
    selection among such proposed projects for inclusion of incentives 
    in such contracts.
        (3) For each facility or process improvement project for which 
    funds were provided in a naval vessel construction contract during 
    the five-year period ending on the date of the enactment of this 
    Act (including the facility or process improvement project contract 
    incentives incorporated in the Virginia-class submarine 
    construction contract and in the CVN-21 construction contract)--
            (A) a description of the facility or process improvement 
        project proposed by the contractor;
            (B) the amount expended (or to be expended) by the United 
        States for the project under the contract; and
            (C) the estimated or actual return on investment for the 
        amounts referred to in subparagraph (B).
        (4) The plans of the Secretary of the Navy to use similar 
    contract incentives in ongoing and future shipbuilding programs.
        (5) Any recommendation by the Secretary for the enactment of 
    legislation that might increase the effectiveness of, or expand the 
    use of, such contract incentives.
    (e) Report.--Not later than April 1, 2007, the Secretary of the 
Navy shall submit to the congressional defense committees a report on--
        (1) the Secretary's assessments of naval vessel construction 
    efficiencies under subsection (a), addressing each of the matters 
    specified in that subsection; and
        (2) the Secretary's assessment of the effectiveness of special 
    incentives for contractor investment in facilities and process 
    improvement projects under subsection (d).
SEC. 1017. OBTAINING CARRIAGE BY VESSEL: CRITERION REGARDING OVERHAUL, 
REPAIR, AND MAINTENANCE OF VESSELS IN THE UNITED STATES.
    (a) Acquisition Policy.--In order to maintain the national defense 
industrial base, the Secretary of Defense shall issue an acquisition 
policy that establishes, as a criterion required to be considered in 
obtaining carriage by vessel of cargo for the Department of Defense, 
the extent to which an offeror of such carriage had overhaul, repair, 
and maintenance work for covered vessels of the offeror performed in 
shipyards located in the United States.
    (b) Covered Vessels.--A vessel is a covered vessel of an offeror 
under this section if the vessel is--
        (1) owned, operated, or controlled by the offeror; and
        (2) qualified to engage in the carriage of cargo in the 
    coastwise or non-contiguous trade under section 27 of the Merchant 
    Marine Act, 1920 (46 U.S.C. 883), section 12106 of title 46, United 
    States Code, and section 2 of the Shipping Act, 1916 (46 U.S.C. 
    App. 802).
    (c) Application of Policy.--The acquisition policy shall include 
rules providing for application of the policy to covered vessels as 
expeditiously as is practicable based on the nature of carriage 
obtained, and by no later than June 1, 2007.
    (d) Regulations.--
        (1) In general.--The Secretary shall prescribe regulations as 
    necessary to carry out the acquisition policy and submit 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 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.

                  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
        (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.
    (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.
        (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'';
        (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.
    (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.
            (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;
            (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.
        (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
            (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.
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.
        (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.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 19 of such title is amended by striking the item 
    relating to section 1015.
    (c) Secretary of Defense Recommendation on Need for Defense Impact 
Review Process.--Section 1041 of the National Defense Authorization Act 
for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1217) is repealed.
    (d) Report on Pilot Program To Enhance Military Recruiting by 
Improving Military Awareness of School Counselors and Educators.--
Section 564 of the Floyd D. Spence National Defense Authorization Act 
for Fiscal Year 2001 (as enacted into law by Public Law 106-398 (114 
Stat. 1654A-133; 10 U.S.C. 503 note)) is amended by striking subsection 
(c).
    (e) Annual Report on Medical Informatics.--Section 723(d) of the 
National Defense Authorization Act for Fiscal Year 2000 (Public Law 
106-65; 10 U.S.C. 1071 note) is amended--
        (1) by striking paragraph (5); and
        (2) by redesignating paragraphs (6) and (7) as paragraphs (5) 
    and (6), respectively.
SEC. 1047. REQUIREMENT FOR IDENTIFICATION OF RECENTLY ENACTED RECURRING 
REPORTING REQUIREMENTS APPLICABLE TO THE DEPARTMENT OF DEFENSE.
    (a) Identification and Submittal to Congressional Committees.--
        (1) In general.--Not 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.

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

SEC. 1051. ACCEPTANCE AND RETENTION OF REIMBURSEMENT FROM NON-FEDERAL 
SOURCES TO DEFRAY DEPARTMENT OF DEFENSE COSTS OF CONFERENCES.
    (a) In General.--Subchapter II of chapter 134 of title 10, United 
States Code, is amended by adding at the end the following new section:

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

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

``2262. Department of Defense conferences: collection of fees to cover 
          Department of Defense costs.''.
SEC. 1052. INCREASED FLEXIBILITY IN USE OF FUNDS FOR JOINT STAFF 
EXERCISES.
    (a) In General.--Amounts available to the Chairman of the Joint 
Chiefs of Staff for joint staff exercises may be available for any 
expenses as follows:
        (1) Expenses of the Armed Forces in connection with such 
    exercises, including expense relating to self-deploying watercraft 
    under the jurisdiction of a military department.
        (2) Expenses relating to the costs of port support activities 
    in connection with such exercises, including transportation and 
    port handling.
        (3) Expenses relating to the breakout and operation of 
    prepositioned watercraft and lighterage for joint logistics and 
    over the shore exercises in connection with such exercises.
    (b) Supplement Not Supplant.--Any amounts made available by the 
Chairman of the Joint Chiefs of Staff under subsection (a) for expenses 
covered by that subsection are in addition to any other amounts 
available under law for such expenses.
SEC. 1053. PROHIBITION ON PARKING OF FUNDS.
    (a) Prohibition.--
        (1) In general.--Chapter 165 of title 10, United States Code, 
    is amended by inserting after section 2773a the following new 
    section:

``Sec. 2773b. Parking of funds: prohibition; penalties

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

``2773b. Parking of funds: prohibition; penalties.''.

    (b) Effective Date.--
        (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.''.
    (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.
        (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.
        (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.
        (4) Section 308j is amended by striking subsection (g) and 
    inserting the following new subsection:
    ``(g) Repayment.--A person who enters into an agreement under this 
section and receives all or part of the bonus under the agreement, but 
who does not accept a commission or an appointment as an officer or 
does not commence to participate or does not satisfactorily participate 
in the Selected Reserve for the total period of service specified in 
the agreement, shall be subject to the repayment provisions of section 
303a(e) of this title.''.
        (5) The table of sections at the beginning of chapter 7 is 
    amended--
            (A) by striking the item relating to section 407 and 
        inserting the following:

``407. Travel and transportation allowances: dislocation allowance.''; 
          and

            (B) by striking the item relating to section 425 and 
        inserting the following:

``425. United States Navy Band; United States Marine Corps Band: 
          allowances while on concert tour.''.

        (6) Section 402a(b)(3)(B) is amended by striking ``section 310 
    of this section'' and inserting ``section 310 of this title''.
        (7) Section 414(c) is amended by striking ``, or the Senior 
    Enlisted Advisor for the Chairman of the Joint Chiefs of Staff'' 
    before the period at the end.
        (8) The heading of section 1010 is amended to read as follows:

``Sec. 1010. Commissioned officers: promotions; effective date for pay 
            and allowances''.

    (d) Public Law 109-272.--Effective as of August 14, 2006, and as if 
included therein as enacted, section 2(a) of Public Law 109-272 (120 
Stat. 770; 16 U.S.C. 431 note) is amended by striking ``division E'' 
and inserting ``division J''.
    (e) National Defense Authorization Act for Fiscal Year 2006.--
Effective as of January 6, 2006, and as if included therein as enacted, 
the National Defense Authorization Act for Fiscal Year 2006 (Public Law 
109-163) is amended as follows:
        (1) Section 341(e) (119 Stat. 3199) is amended by striking 
    ``(a)(1)(E)'' and inserting ``(a)(1)(F)''.
        (2) Section 545(b) (119 Stat. 3254) is amended by striking 
    ``title''.
        (3) Section 606(a) (119 Stat. 3287; 37 U.S.C. 211 note) is 
    amended by striking ``title 10'' and inserting ``title 37''.
        (4) Section 608(b) (119 Stat. 3289) is amended--
            (A) in paragraph (1), by striking ``the first sentence'' 
        and inserting ``the second sentence''; and
            (B) in paragraph (2), by striking ``the second sentence'' 
        and inserting ``the third sentence''.
        (5) Section 685(a) (119 Stat. 3325) is amended by striking 
    ``Advisor for'' both places it appears and inserting ``Advisor 
    to''.
        (6) Section 687(a)(2) (119 Stat. 3327) is amended by striking 
    ``subsection (a)'' and inserting ``subsection (e)''.
        (7) Section 687(b)(15) (119 Stat. 3330) is amended--
            (A) by striking ``Subsection (d)'' and inserting 
        ``Subsection (e)''; and
            (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)''.
        (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.
SEC. 1075. PATENT TERM EXTENSIONS FOR THE BADGES OF THE AMERICAN 
LEGION, THE AMERICAN LEGION WOMEN'S AUXILIARY, AND THE SONS OF THE 
AMERICAN LEGION.
    (a) Patent Term Extension for the Badge of the American Legion.--
The term of the design patent numbered 54,296 (for the badge of the 
American Legion) is renewed and extended for a period of 14 years 
beginning on the date of enactment of this Act, with all the rights and 
privileges pertaining to such patent.
    (b) Patent Term Extension for the Badge of the American Legion 
Women's Auxiliary.--The term of the design patent numbered 55,398 (for 
the badge of the American Legion Women's Auxiliary) is renewed and 
extended for a period of 14 years beginning on the date of enactment of 
this Act, with all the rights and privileges pertaining to such patent.
    (c) Patent Term Extension for the Badge of the Sons of the American 
Legion.--The term of the design patent numbered 92,187 (for the badge 
of the Sons of the American Legion) is renewed and extended for a 
period of 14 years beginning on the date of enactment of this Act, with 
all the rights and privileges pertaining to such patent.
SEC. 1076. USE OF THE ARMED FORCES IN MAJOR PUBLIC EMERGENCIES.
    (a) Use of the Armed Forces Authorized.--
        (1) In general.--Section 333 of title 10, United States Code, 
    is amended to read as follows:

``Sec. 333. Major public emergencies; interference with State and 
            Federal law

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

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

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

``15 Enforcement of the Laws to Restore Public Order..............331''.

        (B) The table of sections at the beginning of chapter 15 of 
    such title is amended by striking the item relating to sections 333 
    and inserting the following new item:

``333. Major public emergencies; interference with State and Federal 
          law.''.

    (b) Provision of Supplies, Services, and Equipment.--
        (1) In general.--Chapter 152 of such title is amended by adding 
    at the end the following new section:

``Sec. 2567. Supplies, services, and equipment: provision in major 
            public emergencies

    ``(a) Provision Authorized.--In any situation in which the 
President determines to exercise the authority in section 333(a)(1)(A) 
of this title, the President may direct the Secretary of Defense to 
provide supplies, services, and equipment to persons affected by the 
situation.
    ``(b) Covered Supplies, Services, and Equipment.--The supplies, 
services, and equipment provided under this section may include food, 
water, utilities, bedding, transportation, tentage, search and rescue, 
medical care, minor repairs, the removal of debris, and other 
assistance necessary for the immediate preservation of life and 
property.
    ``(c) Limitations.--(1) Supplies, services, and equipment may be 
provided under this section--
        ``(A) only to the extent that the constituted authorities of 
    the State or possession concerned are unable to provide such 
    supplies, services, and equipment, as the case may be; and
        ``(B) only until such authorities, or other departments or 
    agencies of the United States charged with the provision of such 
    supplies, services, and equipment, are able to provide such 
    supplies, services, and equipment.
    ``(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.
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;
            (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''.
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''.

             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                   Subtitle A--Assistance and Training

Sec. 1201. Logistic support for allied forces participating in combined 
          operations.
Sec. 1202. Temporary authority to use acquisition and cross-servicing 
          agreements to lend certain military equipment to foreign 
          forces in Iraq and Afghanistan for personnel protection and 
          survivability.
Sec. 1203. Recodification and revision to law relating to Department of 
          Defense humanitarian demining assistance.
Sec. 1204. Enhancements to Regional Defense Combating Terrorism 
          Fellowship Program.
Sec. 1205. Participation of the Department of Defense in multinational 
          military centers of excellence.
Sec. 1206. Modification and extension of authorities relating to program 
          to build the capacity of foreign military forces.
Sec. 1207. Authority for distribution to certain foreign personnel of 
          education and training materials and information technology to 
          enhance military interoperability.

      Subtitle B--Nonproliferation Matters and Countries of Concern

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

                        Subtitle C--Other Matters

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

                  Subtitle A--Assistance and Training

SEC. 1201. LOGISTIC SUPPORT FOR ALLIED FORCES PARTICIPATING IN COMBINED 
OPERATIONS.
    (a) Authority.--Chapter 3 of title 10, United States Code, is 
amended by inserting after section 127b the following new section:

``Sec. 127c. Allied forces participating in combined operations: 
            authority to provide logistic support, supplies, and 
            services

    ``(a) Authority.--Subject to subsections (b) and (c), the Secretary 
of Defense may provide logistic support, supplies, and services to 
allied forces participating in a combined operation with 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.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
127b the following new item:

``127c. Allied forces participating in combined operations: authority to 
          provide logistic support, supplies, and services.''.
SEC. 1202. TEMPORARY AUTHORITY TO USE ACQUISITION AND CROSS-SERVICING 
AGREEMENTS TO LEND CERTAIN MILITARY EQUIPMENT TO FOREIGN FORCES IN IRAQ 
AND AFGHANISTAN FOR PERSONNEL PROTECTION AND SURVIVABILITY.
    (a) Authority.--
        (1) In general.--Subject to paragraphs (2), (3), and (4), the 
    Secretary of Defense may treat covered military equipment as 
    logistic support, supplies, and services under subchapter I of 
    chapter 138 of title 10, United States Code, for the purpose of 
    providing for the use of such equipment by military forces of a 
    nation participating in combined operations with the United States 
    in Iraq or Afghanistan.
        (2) Required determinations.--Equipment may be provided to the 
    military forces of a nation under the authority of this section 
    only upon--
            (A) a determination by the Secretary of Defense that the 
        United States forces in the combined operation have no unfilled 
        requirements for that equipment; and
            (B) a determination by the Secretary of Defense, with the 
        concurrence of the Secretary of State, that it is in the 
        national security interest of the United States to provide for 
        the use of such equipment by the military forces of that nation 
        under this section.
        (3) Limitation on use of equipment.--Equipment provided to the 
    military forces of a nation under the authority of this section may 
    be used by those forces only in Iraq or Afghanistan and only for 
    personnel protection or to aid in the personnel survivability of 
    those forces.
        (4) Limitation on duration of provision of equipment.--
    Equipment provided to the military forces of a nation under the 
    authority of this section may be used by the military forces of 
    that nation for not longer than one year.
    (b) Semiannual Reports to Congressional Committees.--
        (1) Use of authority during first six months of fiscal year.--
    If the authority provided in subsection (a) is exercised during the 
    first six months of a fiscal year, the Secretary of Defense shall 
    submit to the specified congressional committees a report on that 
    exercise of such authority not later than the following April 30.
        (2) Use of authority during second six months of fiscal year.--
    If the authority provided in subsection (a) is exercised during the 
    second six months of a fiscal year, the Secretary of Defense shall 
    submit to the specified congressional committees a report on that 
    exercise of such authority not later than the following October 30.
        (3) Content.--Each report under paragraph (1) or (2) shall 
    include, with respect to each exercise of the authority provided in 
    subsection (a) during the period covered by the report, the 
    following:
            (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:

``Sec. 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);
        ``(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:

``Sec. 2249c. Regional Defense Combating Terrorism Fellowship Program: 
            authority to use appropriated funds for costs associated 
            with education and training of foreign officials''.

        (3) Table of sections.--The item relating to such section in 
    the table of sections at the beginning of subchapter I of chapter 
    134 of such title is amended to read as follows:

``2249c.  Regional Defense Combating Terrorism Fellowship Program: 
          authority to use appropriated funds for costs associated with 
          education and training of foreign officials.''.
SEC. 1205. PARTICIPATION OF THE DEPARTMENT OF DEFENSE IN MULTINATIONAL 
MILITARY CENTERS OF EXCELLENCE.
    (a) Participation Authorized.--During fiscal year 2007, the 
Secretary of Defense may, with the concurrence of the Secretary of 
State, authorize the participation of members of the Armed Forces and 
Department of Defense civilian personnel in any multinational military 
center of excellence hosted by any nation or combination of nations 
referred to in subsection (b) for purposes of--
        (1) enhancing the ability of military forces and civilian 
    personnel of the nations participating in such center to engage in 
    joint exercises or coalition or international military operations; 
    or
        (2) improving interoperability between the Armed Forces of the 
    United States and the military forces of friendly foreign nations.
    (b) Covered Nations.--The nations referred to in this subsection 
are the following:
        (1) The United States.
        (2) Any member nation of the North Atlantic Treaty Organization 
    (NATO).
        (3) Any major non-NATO ally.
        (4) Any other friendly foreign nation identified by the 
    Secretary of Defense, with the concurrence of the Secretary of 
    State, for purposes of this section.
    (c) Definitions.--In this section:
        (1) Multinational military center of excellence.--The term 
    ``multinational military center of excellence'' means an entity 
    sponsored by one or more nations that is accredited and approved by 
    the Military Committee of the North Atlantic Treaty Organization 
    (NATO) as offering recognized expertise and experience to personnel 
    participating in the activities of such entity for the benefit of 
    NATO by providing such personnel opportunities to--
            (A) enhance education and training;
            (B) improve interoperability and capabilities;
            (C) assist in the development of doctrine; and
            (D) validate concepts through experimentation.
        (2) Major non-nato ally.--The term ``major non-NATO ally'' 
    means a country (other than a member nation of the North Atlantic 
    Treaty Organization) that is designated as a major non-NATO ally 
    pursuant to section 517 of the Foreign Assistance Act of 1961 (22 
    U.S.C. 2321k).
    (d) Memorandum of Understanding.--
        (1) Requirement.--The participation of members of the Armed 
    Forces or Department of Defense civilian personnel in a 
    multinational military center of excellence under subsection (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
                (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.''.
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 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:
            (A) The most current national intelligence estimate on the 
        nuclear program and the missile program of North Korea and, 
        consistent with the protection of intelligence sources and 
        methods, an unclassified summary of the key judgments in that 
        estimate.
            (B) The most current unclassified United States Government 
        assessment, stated as a range if necessary, of--
                (i) the number of nuclear weapons possessed by North 
            Korea; and
                (ii) the amount of nuclear material suitable for 
            weapons use produced by North Korea by plutonium 
            reprocessing and uranium enrichment.
            (C) Any other matter relating to the nuclear program or 
        missile program of North Korea that the President considers 
        appropriate.
SEC. 1212. REPORT ON PARTICIPATION OF MULTINATIONAL PARTNERS IN THE 
UNITED NATIONS COMMAND IN THE REPUBLIC OF KOREA.
    (a) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense, in coordination with 
the Secretary of State, shall submit to the appropriate committees of 
Congress a report on participation of multinational partners in the 
United Nations Command in the Republic of Korea.
    (b) Elements.--The report required by subsection (a) shall include 
the following:
        (1) A list of the nations that are current members of the 
    United Nations Command in the Republic of Korea, together with a 
    detailed description of the role and participation of each such 
    member nation in the responsibilities and activities of the United 
    Nations Command.
        (2) A detailed description of efforts being undertaken by the 
    United States to encourage enhanced participation in the 
    responsibilities and activities of the United Nations Command in 
    the Republic of Korea by such member nations.
        (3) A discussion of how members of the United Nations Command 
    in the Republic of Korea might be persuaded to increase their 
    contribution of military forces stationed in the Republic and an 
    assessment of how United States political-military requirements in 
    the Republic of Korea might be affected by such increases.
        (4) An assessment of how the contribution of additional 
    military forces by a member of the United Nations Command might 
    affect that member's approach to facilitating a diplomatic 
    resolution of the nuclear challenge posed by the Democratic 
    People's Republic of Korea.
    (c) Form.--The report required by subsection (a) shall be submitted 
in unclassified form, but may include a classified annex.
    (d) Appropriate Committees of Congress Defined.--In this section, 
the term ``appropriate committees of Congress'' means--
        (1) the Committees on Armed Services and Foreign Relations of 
    the Senate; and
        (2) the Committees on Armed Services and International 
    Relations of the House of Representatives.
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--
            (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:
        (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 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.
            (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;
        (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--
            (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.
        (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 
    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.
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.
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:
            (A) The results of the study carried out under subsection 
        (a), including any report received from the National Academy of 
        Sciences on such study.
            (B) An assessment of the study by the Secretary.
            (C) an action plan for implementing the recommendations 
        from the study, if any, that the Secretary has decided to 
        pursue.
        (3) Form of submittal.--The report under paragraph (1) shall be 
    submitted in unclassified form, but may include a classified annex.
    (d) Funding.--Of the amounts made available pursuant to the 
authorization of appropriations in section 301(19) for Cooperative 
Threat Reduction programs, not more than $150,000 shall be available to 
carry out this section.

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

Sec. 1401. Enhancement to authority to pay rewards for assistance in 
          combating terrorism.
Sec. 1402. Quarterly reports on Department of Defense response to threat 
          posed by improvised explosive devices.
Sec. 1403. Requirement that all military wheeled vehicles used in Iraq 
          and Afghanistan outside of secure military operating bases be 
          protected by Improvised Explosive Device (IED) jammers.
Sec. 1404. Report on assessment process of Chairman of the Joint Chiefs 
          of Staff relating to Global War on Terrorism.
Sec. 1405. Treatment under Freedom of Information Act of certain 
          confidential information shared with State and local 
          personnel.
Sec. 1406. Database of emergency response capabilities.
SEC. 1401. ENHANCEMENT TO AUTHORITY TO PAY REWARDS FOR ASSISTANCE IN 
COMBATING TERRORISM.
    (a) Increase in Delegation Limitation.--Paragraph (2) of section 
127b(c) of title 10, United States Code, is amended by striking 
``$2,500'' and inserting ``$10,000''.
    (b) Expansion of Senior Officers to Whom Combatant Commander 
Authority May Be Delegated.--Such paragraph is further amended--
        (1) by inserting after ``deputy commander'' the following: ``, 
    or to the commander of a command directly subordinate to that 
    commander,''; and
        (2) by adding at the end the following new sentence: ``Such a 
    delegation may be made to the commander of a command directly 
    subordinate to the commander of a combatant command only with the 
    approval of the Secretary of Defense, the Deputy Secretary of 
    Defense, or an Under Secretary of Defense to whom authority has 
    been delegated under subparagraph (1)(A).''.
SEC. 1402. 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--
            (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:
        (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).
SEC. 1405. TREATMENT UNDER FREEDOM OF INFORMATION ACT OF CERTAIN 
CONFIDENTIAL INFORMATION SHARED WITH STATE AND LOCAL PERSONNEL.
    (a) In General.--Chapter 3 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 130d. Treatment under Freedom of Information Act of certain 
            confidential information shared with State and local 
            personnel

    ``Confidential business information and other sensitive but 
unclassified homeland security information in the possession of the 
Department of Defense that is shared, pursuant to section 892 of the 
Homeland Security Act of 2002 (6 U.S.C. 482), with State and local 
personnel (as defined in such section) shall not be subject to 
disclosure under section 552 of title 5 by virtue of the sharing of 
such information with such personnel.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``130d. Treatment under Freedom of Information Act of certain 
          confidential information shared with State and local 
          personnel.''.
SEC. 1406. 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.
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.
        (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.
    (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.--
        (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.
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 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.
        (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''.
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 
    congressional efforts to establish this initiative to eliminate 
    inadequate housing on military installations, and the first pilot 
    program was located at Fort Carson.
        (8) Representative Hefley's leadership on the Military Housing 
    Privatization Initiative has allowed for the privatization of more 
    than 121,000 units of military family housing, which brought 
    meaningful improvements to living conditions for thousands of 
    members of the Armed Forces and their spouses and children at 
    installations throughout the United States.
    (b) Recognition.--Congress recognizes and commends Representative 
Joel Hefley for his 20 years of service to benefit the people of 
Colorado, members of the Armed Forces and their families, veterans, and 
the United States.

                            TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects
Sec. 2102. Family housing
Sec. 2103. Improvements to military family housing units
Sec. 2104. Authorization of appropriations, Army
SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.
    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2104(a)(1), the 
Secretary of the Army may acquire real property and carry out military 
construction projects for the installations or locations inside the 
United States, and in the amounts, set forth in the following table:


                     Army: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                       Location             Amount
------------------------------------------------------------------------
Alabama........................  Redstone Arsenal.......     $24,300,000
Alaska.........................  Fort Richardson........     $72,300,000
                                 Fort Wainwright........      $8,800,000
                                 Fort Irwin.............     $18,200,000
                                 Fort Carson............     $30,800,000
                                 Fort Gillem............     $15,000,000
                                 Fort Stewart/Hunter         $95,300,000
                                  Army Air Field.
Hawaii.........................  Schofield Barracks.....     $54,500,000
Kansas.........................  Fort Leavenworth.......     $23,200,000
                                 Fort Riley.............     $47,400,000
Kentucky.......................  Blue Grass Army Depot..      $3,500,000
                                 Fort Campbell..........    $135,300,000
Louisiana......................  Fort Polk..............     $15,900,000
Maryland.......................  Aberdeen Proving Ground      $8,800,000
                                 Fort Detrick...........     $12,400,000
Michigan.......................  Detroit Arsenal........     $18,500,000
Missouri.......................  Fort Leonard Wood......     $34,500,000
New Jersey.....................  Picatinny Arsenal......      $9,900,000
New York.......................  Fort Drum..............    $218,600,000
North Carolina.................  Fort Bragg.............     $96,900,000
                                 Sunny Point Military        $46,000,000
                                  Ocean Terminal.
Oklahoma.......................  McAlester Army               $3,050,000
                                  Ammunition Plant.
Pennsylvania...................  Letterkenny Depot......      $7,500,000
Texas..........................  Corpus Christi Army         $12,200,000
                                  Depot.
                                 Fort Bliss.............      $8,200,000
                                 Fort Hood..............     $93,000,000
                                 Red River Depot........      $6,000,000
Utah...........................  Dugway Proving Ground..     $14,400,000
Virginia.......................  Fort Belvoir...........     $27,000,000
------------------------------------------------------------------------



                     Army: Inside the United States
------------------------------------------------------------------------
                                       Installation or
               State                      Location            Amount
------------------------------------------------------------------------
Alabama...........................  Redstone Arsenal....     $24,300,000
Alaska............................  Fort Richardson.....     $72,300,000
                                    Fort Wainwright.....      $8,800,000
California........................  Fort Irwin..........     $18,200,000
Colorado..........................  Fort Carson.........     $30,800,000
Georgia...........................  Fort Gillem.........     $15,000,000
                                    Fort Stewart/Hunter      $95,300,000
                                     Army Air Field.
Hawaii............................  Schofield Barracks..     $54,500,000
Kansas............................  Fort Leavenworth....     $23,200,000
                                    Fort Riley..........     $47,400,000
Kentucky..........................  Blue Grass Army           $3,500,000
                                     Depot.
                                    Fort Campbell.......    $135,300,000
Louisiana.........................  Fort Polk...........     $15,900,000
Maryland..........................  Aberdeen Proving          $8,800,000
                                     Ground.
                                    Fort Detrick........     $12,400,000
Michigan..........................  Detroit Arsenal.....     $18,500,000
Missouri..........................  Fort Leonard Wood...     $34,500,000
New Jersey........................  Picatinny Arsenal...      $9,900,000
New York..........................  Fort Drum...........    $218,600,000
North Carolina....................  Fort Bragg..........     $96,900,000
                                    Sunny Point Military     $46,000,000
                                     Ocean Terminal.
Oklahoma..........................  McAlester Army            $3,050,000
                                     Ammunition Plant.
Pennsylvania......................  Letterkenny Depot...      $7,500,000
Texas.............................  Corpus Christi Army      $12,200,000
                                     Depot.
                                    Fort Bliss..........      $8,200,000
                                    Fort Hood...........     $93,000,000
                                    Red River Depot.....      $6,000,000
Utah..............................  Dugway Proving           $14,400,000
                                     Ground.
Virginia..........................  Fort Belvoir........     $27,000,000
------------------------------------------------------------------------


    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2104(a)(2), the 
Secretary of the Army may acquire real property and carry out military 
construction projects for the installations or locations outside the 
United States, and in the amounts, set forth in the following table:


                     Army: Outside the United States
------------------------------------------------------------------------
                                      Installation or
             Country                      Location            Amount
------------------------------------------------------------------------
Germany..........................  Grafenwoehr..........    $157,632,000
                                   Vilseck..............     $19,000,000
Italy............................  Vicenza..............    $223,000,000
Japan............................  Camp Hansen..........      $7,150,000
Korea............................  Camp Humphreys.......     $61,600,000
                                   Yongpyong............      $7,400,000
Romania..........................  Babadag Range........     $34,800,000
------------------------------------------------------------------------


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) of the 
    Military Construction Authorization Act for Fiscal Year 2006 
    (division B of Public Law 109-163; 119 Stat. 3485), $16,500,000.
        (7) For the construction of increment 2 of a barracks complex 
    for the 2nd Brigade at Fort Bragg, North Carolina, authorized by 
    section 2101(a) of the Military Construction Authorization Act for 
    Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat. 
    3485), $31,000,000.
        (8) For the construction of increment 2 of a barracks complex 
    for the 3rd Brigade at Fort Bragg, North Carolina, authorized by 
    section 2101(a) of the Military Construction Authorization Act for 
    Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat. 
    3485), $50,000,000.
        (9) For the construction of increment 2 of a barracks complex 
    for divisional artillery at Fort Bragg, North Carolina, authorized 
    by section 2101(a) of the Military Construction Authorization Act 
    for Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat. 
    3485), $37,000,000.
        (10) For the construction of increment 2 of a defense access 
    road at Fort Belvoir, Virginia, authorized by section 2101(a) of 
    the Military Construction Authorization Act for Fiscal Year 2006 
    (division B of Public Law 109-163; 119 Stat. 3486), $13,000,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2101 of this 
Act may not exceed the sum of the following:
        (1) The total amount authorized to be appropriated under 
    paragraphs (1) and (2) of subsection (a).
        (2) $306,000,000 (the balance of the amount authorized under 
    section 2101(a) for construction of a brigade complex for Fort 
    Lewis, Washington).

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Modification of authority to carry out certain fiscal year 
          2004, 2005, and 2006 projects.
SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.
    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2204(a)(1), the 
Secretary of the Navy may acquire real property and carry out military 
construction projects for the installations or locations inside the 
United States, and in the amounts, set forth in the following table:


                     Navy: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                       Location             Amount
------------------------------------------------------------------------
Arizona........................  Marine Corps Air             $5,966,000
                                  Station, Yuma.
California.....................  Marine Corps Air             $6,412,000
                                  Station, Camp
                                  Pendleton.
                                 Marine Corps Air             $2,968,000
                                  Station, Miramar.
                                 Marine Corps Base, Camp    $106,142,000
                                  Pendleton.
                                 Marine Corps Base,          $27,217,000
                                  Twentynine Palms.
                                 Naval Air Station,          $21,535,000
                                  North Island.
                                 Naval Support Activity,      $7,380,000
                                  Monterey.
Connecticut....................  Naval Submarine Base,        $9,580,000
                                  New London.
Florida........................  Cape Canaveral.........      $9,900,000
                                 Naval Air Station,          $13,486,000
                                  Pensacola.
Georgia........................  Marine Corps Logistics      $70,540,000
                                  Base, Albany.
                                 Navy/Naval Submarine        $20,282,000
                                  Base, Kings Bay.
Hawaii.........................  Naval Base, Pearl           $48,338,000
                                  Harbor.
                                 Naval Magazine, Pearl        $6,010,000
                                  Harbor.
                                 Naval Shipyard, Pearl       $22,000,000
                                  Harbor.
Indiana........................  Naval Support Activity,      $6,730,000
                                  Crane.
Maine..........................  Portsmouth Naval             $9,650,000
                                  Shipyard.
Maryland.......................  Naval Air Station,          $16,316,000
                                  Patuxent River.
                                 NMIC/Naval Support          $67,939,000
                                  Activity, Suitland.
Mississippi....................  Naval Air Station,           $5,870,000
                                  Meridian.
Nevada.........................  Naval Air Station,           $7,730,000
                                  Fallon.
North Carolina.................  Marine Corps Air             $2,790,000
                                  Station, Cherry Point.
                                 Marine Corps Air            $21,500,000
                                  Station, New River.
                                 Marine Corps Base, Camp    $160,904,000
                                  Lejeune.
Rhode Island...................  Naval Station, Newport.      $3,308,000
South Carolina.................  Marine Corps Air            $25,575,000
                                  Station, Beaufort.
Virginia.......................  Marine Corps Base,          $30,628,000
                                  Quantico.
                                 Naval Shipyard, Norfolk     $34,952,000
                                 Naval Special Weapons        $9,850,000
                                  Center, Dahlgren.
                                 Naval Station, Norfolk.     $12,062,000
                                 Naval Support Activity,     $41,712,000
                                  Norfolk.
Washington.....................  Naval Air Station,          $67,303,000
                                  Whidbey Island.
                                 Naval Base, Kitsap.....     $17,617,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2204(a)(2), the 
Secretary of the Navy may acquire real property and carry out military 
construction projects for the installations or locations outside the 
United States, and in the amounts, set forth in the following table:

                     Navy: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Diego Garcia.................  Diego Garcia.............     $37,473,000
Italy........................  Naval Air Station,            $13,051,000
                                Sigonella.
------------------------------------------------------------------------


    (c) Unspecified Worldwide.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2204(a)(3), the 
Secretary of the Navy may acquire real property and carry out military 
construction projects for unspecified installations or locations in the 
amount set forth in the following table:

                       Navy: Unspecified Worldwide
------------------------------------------------------------------------
           Location                     Project               Amount
------------------------------------------------------------------------
                               Helicopter Support            $12,185,000
                                Facility.
------------------------------------------------------------------------


SEC. 2202. FAMILY HOUSING.
    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(6)(A), the Secretary of the Navy may construct or acquire 
family housing units (including land acquisition and supporting 
facilities) at the installations, in the number of units, and in the 
amounts set forth in the following table:

                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
                Location                           Installation                    Units              Amount
----------------------------------------------------------------------------------------------------------------
California..............................  Marine Corps Log. Base, Barstow  74...................     $27,851,000
Guam....................................   Naval Station/Base, Guam......  176..................     $98,174,000
----------------------------------------------------------------------------------------------------------------


    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2204(a)(6)(A), the 
Secretary of the Navy may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of military family housing units in an 
amount not to exceed $2,785,000.
SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.
    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2204(a)(6)(A), the Secretary of the Navy may improve existing 
military family housing units in an amount not to exceed $180,146,000.
SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.
    (a) Authorization of Appropriations.--Funds are hereby authorized 
to be appropriated for fiscal years beginning after September 30, 2006, 
for military construction, land acquisition, and military family 
housing functions of the Department of the Navy in the total amount of 
$2,109,367,000, as follows:
        (1) For military construction projects inside the United States 
    authorized by section 2201(a), $832,982,000.
        (2) For military construction projects outside the United 
    States authorized by section 2201(b), $50,524,000.
        (3) For military construction projects at unspecified worldwide 
    locations authorized by section 2201(c), $12,185,000.
        (4) For unspecified minor military construction projects 
    authorized by section 2805 of title 10, United States Code, 
    $8,939,000.
        (5) For architectural and engineering services and construction 
    design under section 2807 of title 10, United States Code, 
    $70,861,000.
        (6) For military family housing functions:
            (A) For construction and acquisition, planning and design, 
        and improvement of military family housing and facilities, 
        $308,956,000.
            (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.
        (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--
            (A) by striking the item relating to Navy Outlying Landing 
        Field, Washington County, North Carolina; and
            (B) by striking the amount identified as the total in the 
        amount column and inserting ``$825,479,000''.
        (2) Conforming amendments.--Section 2204 of that Act (118 Stat. 
    2107), as amended by section 2206 of the Military Construction 
    Authorization Act for Fiscal Year 2006 (division B of Public Law 
    109-163; 119 Stat. 3493), is amended--
            (A) in subsection (a)--
                (i) in paragraph (1), by striking ``$752,927,000'' and 
            inserting ``722,927,000''; and
                (ii) by adding at the end the following new paragraph:
        ``(10) For the construction of increment 2 of the Navy outlying 
    landing field in Washington County, North Carolina, authorized by 
    section 2201(a) of the Military Construction Authorization Act for 
    Fiscal Year 2004 (division B of Public Law 108-136; 117 Stat. 
    1704), as amended by section 2205(a) of the Military Construction 
    Authorization Act for Fiscal Year 2007, $30,000,000.''; and
            (B) in subsection (b), by striking paragraph (3).
    (c) Fiscal Year 2006 Inside the United States Project.--
        (1) Modification.--The table in section 2201(a) of the Military 
    Construction Authorization Act for Fiscal Year 2006 (division B of 
    Public Law 109-163; 119 Stat. 3489) is amended in the item related 
    to Marine Corps Base, Camp Pendleton, California, by striking 
    ``$90,437,000'' in the amount column and inserting ``$86,006,000''.
        (2) Conforming amendments.--Section 2204(b)(2) of that Act (119 
    Stat. 3492) is amended by striking ``$37,721,000'' and inserting 
    ``$33,290,000''.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
          projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Modification of authority to carry out certain fiscal year 
          2006 project.
SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION 
PROJECTS.
    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2304(a)(1), the 
Secretary of the Air Force may acquire real property and carry out 
military construction projects for the installations or locations 
inside the United States, and in the amounts, set forth in the 
following table:

                   Air Force: Inside the United States
------------------------------------------------------------------------
                                   Installation or
             State                     Location              Amount
------------------------------------------------------------------------
Alaska........................  Eielson Air Force           $38,300,000
                                 Base.
                                Elmendorf Air Force         $68,100,000
                                 Base.
Arizona.......................  Davis-Monthan Air           $11,800,000
                                 Force Base.
Arkansas......................  Little Rock Air Force        $9,800,000
                                 Base.
California....................  Beale Air Force Base.       $28,000,000
                                Travis Air Force Base       $85,800,000
Colorado......................  Buckley Air Force           $10,700,000
                                 Base.
                                Peterson Air Force           $4,900,000
                                 Base.
                                Schriever Air Force         $21,000,000
                                 Base.
Delaware......................  Dover Air Force Base.       $30,400,000
Florida.......................  Eglin Air Force Base.       $30,350,000
                                Hurlburt Field.......       $32,950,000
                                MacDill Air Force           $71,000,000
                                 Base.
                                Tyndall Air Force            $8,200,000
                                 Base.
Georgia.......................  Robins Air Force Base       $59,600,000
Hawaii........................  Hickam Air Force Base       $28,538,000
Illinois......................  Scott Air Force Base.       $28,200,000
Kansas........................  McConnell Air Force          $3,875,000
                                 Base.
Kentucky......................  Fort Knox............        $3,500,000
Maryland......................  Andrews Air Force           $29,000,000
                                 Base.
Massachusetts.................  Hanscom Air Force           $12,400,000
                                 Base.
Missouri......................  Whiteman Air Force           $3,800,000
                                 Base.
Montana.......................  Malmstrom Air Force          $5,700,000
                                 Base.
Nevada........................  Indian Springs              $49,923,000
                                 Auxiliary Field.
New Jersey....................  McGuire Air Force           $28,500,000
                                 Base.
New Mexico....................  Kirtland Air Force          $11,400,000
                                 Base.
North Dakota..................  Minot Air Force Base.        $9,000,000
Oklahoma......................  Altus Air Force Base.        $9,500,000
                                Tinker Air Force Base        $5,700,000
South Carolina................  Charleston Air Force        $10,200,000
                                 Base.
                                Shaw Air Force Base..       $31,500,000
South Dakota..................   Ellsworth Air Force         $3,000,000
                                 Base.
Texas.........................  Fort Bliss...........        $8,500,000
                                Lackland Air Force          $13,200,000
                                 Base.
                                Laughlin Air Force          $12,600,000
                                 Base.
                                Sheppard Air Force           $7,000,000
                                 Base.
Utah..........................  Hill Air Force Base..       $63,400,000
Virginia......................  Langley Air Force           $57,700,000
                                 Base.
Washington....................  Fairchild Air Force          $4,250,000
                                 Base.
Wyoming.......................  Francis E. Warren Air       $11,000,000
                                 Force Base.
------------------------------------------------------------------------


    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2304(a)(2), the 
Secretary of the Air Force may acquire real property and carry out 
military construction projects for the installations or locations 
outside the United States, and in the amounts, set forth in the 
following table:

                  Air Force: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Germany......................  Ramstein Air Base........     $53,150,000
Guam.........................  Andersen Air Base........     $65,300,000
Korea........................  Kunsan Air Base..........     $37,360,000
                               Osan Air Base............      $2,156,000
------------------------------------------------------------------------


    (c) Unspecified Worldwide.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2304(a)(3), the 
Secretary of the Air Force may acquire real property and carry out 
military construction projects for unspecified installations or 
locations in the amount set forth in the following table:

                    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.
        (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.
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:

                                           Defense Education Activity
----------------------------------------------------------------------------------------------------------------
                    Country                                 Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
Italy.........................................  Vicenza.........................................     $47,210,000
Korea.........................................  Osan Air Base...................................      $4,589,000
Spain.........................................  Naval Station, Rota.............................     $23,048,000
----------------------------------------------------------------------------------------------------------------




                        Defense Logistics Agency
------------------------------------------------------------------------
                                        Installation or
       Country or Possession                Location            Amount
------------------------------------------------------------------------
Japan.............................  Okinawa................   $5,000,000
Wake Island.......................  Wake Island............   $2,600,000
------------------------------------------------------------------------




                         Missile Defense Agency
------------------------------------------------------------------------
                                      Installation or
      Country or Possession               Location            Amount
------------------------------------------------------------------------
Kwajalein........................  Kwajalein Atoll            $7,592,000
------------------------------------------------------------------------



                       Special Operations Command
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Qatar........................  Al Udeid AB..............     $44,500,000
------------------------------------------------------------------------



                       TRICARE Management Activity
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Italy........................  Vicenza..................     $52,000,000
------------------------------------------------------------------------


SEC. 2402. FAMILY HOUSING.
    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2405(a)(9)(A), the Secretary of Defense may construct or acquire family 
housing units (including land acquisition and supporting facilities) at 
the location, in the number of units, and in the amount set forth in 
the following table:

                                    Defense Logistics Agency: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                               Location                     Units              Amount
----------------------------------------------------------------------------------------------------------------
Virginia................................  Defense Supply Center, Richmond  25...................      $7,840,000
----------------------------------------------------------------------------------------------------------------


    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2405(a)(9)(A), the 
Secretary of Defense may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of military family housing units in an 
amount not to exceed $200,000.
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 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.
        (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).
    (c) Limitation on Total Cost of Base Closure and Realignment 
Activities.--Notwithstanding the cost variations authorized by section 
2853 of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all base closure and realignment 
activities, including real property acquisition and military 
construction projects, carried out under section 2404(a) of this Act 
may not exceed the sum of the following:
        (1) The total amount authorized to be appropriated under 
    subsection (a)(8).
        (2) $666,500,000 (the balance of the amount authorized under 
    section 2404(a) for base closure and realignment activities).
    (d) Congressional Notification Regarding Base Closure and 
Realignment Activities.--Not 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 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--
        (1) October 1, 2009; or
        (2) the date of the enactment of an Act authorizing funds for 
    fiscal year 2010 for military construction projects, land 
    acquisition, family housing projects and facilities, or 
    contributions to the North Atlantic Treaty Organization Security 
    Investment program.
SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 2004 
PROJECTS.
    (a) Extension and Renewal.--Notwithstanding section 2701 of the 
Military Construction Authorization Act for Fiscal Year 2004 (division 
B of Public Law 108-136; 117 Stat. 1716), authorizations set forth in 
the tables in subsection (b), as provided in section 2101, 2301, 2302, 
2401, or 2601 of that Act shall remain in effect until October 1, 2007, 
or the date of the enactment of an Act authorizing funds for military 
construction for fiscal year 2008, whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are as 
follows:

             Army: Extension of 2004 Project Authorizations
------------------------------------------------------------------------
    Installation or Location             Project              Amount
------------------------------------------------------------------------
Aviano Air Base, Italy.........  Joint deployment            $15,500,000
                                  facility.
Fort Wainwright, Alaska........  Training range complex.     $47,000,000
------------------------------------------------------------------------



           Air Force: Extension of 2004 Project Authorizations
------------------------------------------------------------------------
    Installation or Location             Project              Amount
------------------------------------------------------------------------
Eglin Air Force Base, Florida..  Family housing (279         $32,166,000
                                  units).
Hickam Air Force Base, Hawaii..  Parking ramp...........     $10,102,000
Travis Air Force Base,           Family housing (56          $12,723,000
 California.                      units).
------------------------------------------------------------------------



          Defense Wide: Extension of 2004 Project Authorization
------------------------------------------------------------------------
     Installation or Location        Agency and Project       Amount
------------------------------------------------------------------------
Hickam Air Force Base, Hawaii....  DLA hydrant fuel          $14,100,000
                                    system.
------------------------------------------------------------------------



      Army National Guard: Extension of 2004 Project Authorizations
------------------------------------------------------------------------
     Installation or Location             Project             Amount
------------------------------------------------------------------------
Albuquerque, New Mexico..........  Readiness center.....      $2,533,000
Fort Indiantown Gap, Pennsylvania  Training range.......     $15,338,000
Gary, Indiana....................  Aviation support          $15,581,000
                                    facility.
------------------------------------------------------------------------


SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 2003 
PROJECTS.
    (a) Extension.--Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 2003 (division B of 
Public Law 107-314; 116 Stat. 2700), authorizations set forth in the 
table in subsection (b), as provided in section 2302 of that Act and 
extended by section 2702 of the Military Construction Authorization Act 
for Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat. 
3502), shall remain in effect until October 1, 2007, or the date of the 
enactment of an Act authorizing funds for military construction for 
fiscal year 2008, whichever is later.
    (b) Tables.--The table referred to in subsection (a) is as follows:

           Air Force: Extension of 2003 Project Authorizations
------------------------------------------------------------------------
    Installation or Location             Project              Amount
------------------------------------------------------------------------
Eglin Air Force Base, Florida..  Family housing (134         $15,906,000
                                  units).
Eglin Air Force Base, Florida..  Family housing office..        $597,000
Randolph Air Force Base, Texas   Housing maintenance            $447,000
                                  facility.
------------------------------------------------------------------------


SEC. 2704. EFFECTIVE DATE.
    Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI of this Act shall take 
effect on the later of--
        (1) October 1, 2006; or
        (2) the date of the enactment of this Act.

         TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

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

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

         Subtitle B--Real Property and Facilities Administration

Sec. 2821. Congressional notice requirements, in advance of acquisition 
          of land by condemnation for military purposes.
Sec. 2822. Consolidation of Department of Defense authorities regarding 
          granting of easements for rights-of-way.
Sec. 2823. Authority to grant restrictive easements for conservation 
          purposes in connection with land conveyances.
Sec. 2824. Maximum term of leases for structures and real property 
          relating to structures in foreign countries needed for 
          purposes other than family housing.
Sec. 2825. Consolidation of laws relating to transfer of Department of 
          Defense real property within the Department of Defense and to 
          other Federal agencies.
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. 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 unit could 
    be converted (which would include any costs necessary to convert 
    the unit) and an estimate of the costs to demolish and rebuild the 
    unit to private sector standards.''.
    (b) Stylistic Amendments.--Such section is further amended--
        (1) in subsection (a), by inserting ``Establishment.--'' after 
    ``(a)'';
        (2) in subsection (b), by inserting ``Credits to Account.--'' 
    after ``(b)'';
        (3) in subsection (c), by inserting ``Availability of Amounts 
    in Account.--'' after ``(c)''; and
        (4) in subsection (d), by inserting ``Use of Account.--'' after 
    ``(d)''; and
        (5) in the heading of subsection (e), by striking ``Cost of'';
SEC. 2806. MODIFICATION OF NOTIFICATION REQUIREMENTS RELATED TO COST 
VARIATION AUTHORITY.
    Section 2853(c) of title 10, United States Code, is amended by 
striking ``if--'' and paragraphs (1), (2), and (3) and inserting the 
following: ``if the variation in cost or reduction in the scope of work 
is approved by the Secretary concerned and--
        ``(1) in the case of a cost increase or a reduction in the 
    scope of work--
            ``(A) the Secretary concerned notifies the appropriate 
        committees of Congress in writing of the cost increase or 
        reduction in scope and the reasons therefor, including a 
        description of the funds proposed to be used to finance any 
        increased costs; and
            ``(B) a period of 21 days has elapsed after the date on 
        which the notification is received by the committees or, if 
        over sooner, a period of 14 days has elapsed after the date on 
        which a copy of the notification is provided in an electronic 
        medium pursuant to section 480 of this title; or
        ``(2) in the case of a cost decrease, the Secretary concerned 
    notifies the appropriate committees of Congress in writing not 
    later than 14 days after the date funds are obligated in connection 
    with the military construction project or military family housing 
    project.''.
SEC. 2807. CONSIDERATION OF LOCAL COMPARABILITY OF FLOOR AREAS IN 
CONSTRUCTION, ACQUISITION, AND IMPROVEMENT OF MILITARY UNACCOMPANIED 
HOUSING.
    (a) Comparability of Floor Areas.--
        (1) In general.--Section 2856 of title 10, United States Code, 
    is amended to read as follows:

``Sec. 2856. Military unaccompanied housing: local comparability of 
            floor areas

    ``In the construction, acquisition, and improvement of military 
unaccompanied housing, the Secretary concerned shall ensure that the 
floor areas of such housing in a particular locality (as designated by 
the Secretary concerned for purposes of this section) do not exceed the 
floor areas of similar housing in the private sector in that 
locality.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of subchapter III of chapter 169 of such title is 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:

``Sec. 2859. Construction requirements related to antiterrorism and 
            force protection or urban-training operations''.

        (2) Table of sections.--The table of sections at the beginning 
    of subchapter III of chapter 169 of such title is amended 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:

``Sec. 2861. Military construction projects in connection with 
            industrial facility investment program

    ``(a) Authority.--The Secretary of Defense may carry out a military 
construction project, not previously authorized, for the purpose of 
carrying out activities under section 2474(a)(2) of this title, using 
funds appropriated or otherwise made available for that purpose in 
military construction accounts.
    ``(b) Crediting of Funds to Capital Budget.--Funds appropriated or 
otherwise made available in a fiscal year for the purpose of carrying 
out a military construction project with respect to a covered depot (as 
defined in subsection (e) of section 2476 of this title) may be 
credited to the amount required by subsection (a) of such section to be 
invested in the capital budgets of the covered depots in that fiscal 
year.
    ``(c) Notice and Wait Requirement.--When a decision is made to 
carry out a project under subsection (a), the Secretary of Defense 
shall notify in writing the appropriate committees of Congress of that 
decision and the savings estimated to be realized from the project. The 
project may then be carried out only after the end of the 21-day period 
beginning on the date the notification is received by such committees 
or, if earlier, the end of the 14-day period beginning on the date on 
which a copy of the notification is provided in an electronic medium 
pursuant to section 480 of this title.
    ``(d) Annual Report.--Not later than December 31 of each year, the 
Secretary shall submit to Congress a report describing actions taken 
under this section and the savings realized from such actions during 
the fiscal year ending in the year in which the report is submitted.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by inserting after the item relating to 
section 2860 the following new item:

``2861. Military construction projects in connection with industrial 
          facility investment program.''.
SEC. 2810. REPEAL OF SPECIAL REQUIREMENT FOR MILITARY CONSTRUCTION 
CONTRACTS ON GUAM.
    (a) Repeal.--Section 2864 of title 10, United States Code, is 
repealed.
    (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
            ``(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:
    ``(2) If the report for a year is not submitted to Congress by the 
date specified in paragraph (1), the Secretary concerned may not enter 
into an agreement under subsection (a) after that date for the 
conveyance of real property until the date on which the report is 
finally submitted.''.
    (f) Clerical Amendments.--
        (1) Section heading.--The heading of such section is amended to 
    read as follows:

``Sec. 2869. Conveyance of property at military installations to 
            support military construction or limit encroachment''.

        (2) Table of sections.--The table of sections at the beginning 
    of subchapter III of chapter 169 of such title is amended by 
    striking the item relating to section 2869 and inserting the 
    following new item:

``2869. Conveyance of property at military installations to support 
          military construction or limit encroachment.''.

    (g) Conforming Amendments to Authority to Limit Encroachments.--
Subsection (d)(3) of section 2684a of such title is amended--
        (1) by redesignating subparagraphs (B) and (C) as subparagraphs 
    (C) and (D), respectively;
        (2) in subparagraph (C), as so redesignated, by striking ``in 
    the sharing of acquisition costs of real property, or an interest 
    in real property, under paragraph (1)(B)'' and inserting ``under 
    subparagraph (A), either through the contribution of funds or 
    excess real property, or both,''; and
        (3) by inserting after subparagraph (A) the following new 
    subparagraph (B):
    ``(B) In lieu of or in addition to making a monetary contribution 
toward the cost of acquiring a parcel of real property, or an interest 
therein, pursuant to an agreement under this section, the Secretary 
concerned may convey, using the authority provided by section 2869 of 
this title, real property described in paragraph (2) of subsection (a) 
of such section, subject to the limitation in paragraph (3) of such 
subsection.''.
SEC. 2812. PILOT PROJECTS FOR ACQUISITION OR CONSTRUCTION OF MILITARY 
UNACCOMPANIED HOUSING.
    (a) Reduction of Applicable Notification Periods.--Section 2881a of 
title 10, United States Code, is amended by striking ``90 days'' both 
places it appears and inserting ``30 days''.
    (b) Extension of Authority.--Subsection (f) of such section is 
amended by striking ``2007'' and inserting ``2009''.

        Subtitle B--Real Property and Facilities Administration

SEC. 2821. CONGRESSIONAL NOTICE REQUIREMENTS, IN ADVANCE OF ACQUISITION 
OF LAND BY CONDEMNATION FOR MILITARY PURPOSES.
    (a) Sense of Congress.--It is the sense of Congress that the 
Secretary of Defense, when acquiring land for military purposes, 
should--
        (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 RIGHTS-OF-WAY.
    (a) Consolidation.--Subsection (a) of section 2668 of title 10, 
United States Code, is amended--
        (1) in the matter preceding paragraph (1)--
            (A) by striking ``he'' both places it appears and inserting 
        ``the Secretary''; and
            (B) by striking ``his control, to a State, Commonwealth, or 
        possession, or political subdivision thereof, or to a citizen, 
        association, partnership, or corporation of a State, 
        Commonwealth, or possession,'' and inserting ``the Secretary's 
        control'';
        (2) in paragraph (2), by striking ``oil pipe lines'' and 
    inserting ``gas, water, sewer, and oil pipe lines''; and
        (3) in paragraph (13), by striking ``he considers advisable, 
    except a purpose covered by section 2669 of this title'' and 
    inserting ``the Secretary considers advisable''.
    (b) Stylistic Amendments.--Such section is further amended--
        (1) in subsection (a), by inserting ``Authorized Types of 
    Easements.--'' after ``(a)'';
        (2) in subsection (b), by inserting ``Limitation on Size of 
    Easement.--'' after ``(b)'';
        (3) in subsection (c), by inserting ``Termination.--'' after 
    ``(c)'';
        (4) in subsection (d), by inserting ``Notice to Department of 
    the Interior.--'' after ``(d)''; and
        (5) in subsection (e), by inserting ``Disposition of 
    Consideration.--'' after ``(e)''.
    (c) Conforming Repeal.--Section 2669 of such title is repealed.
    (d) Clerical Amendment.--The table of sections at the beginning of 
chapter 159 of such title is amended by striking the item related to 
section 2669.
SEC. 2823. AUTHORITY TO GRANT RESTRICTIVE EASEMENTS FOR CONSERVATION 
PURPOSES IN CONNECTION WITH LAND CONVEYANCES.
    (a) Restrictive Easements.--Chapter 159 of title 10, United States 
Code, is amended by inserting after section 2668 the following new 
section:

``Sec. 2668a. Easements: granting restrictive easements in connection 
            with land conveyances

    ``(a) Authority to Include Restrictive Easement.--In connection 
with the conveyance of real property by the Secretary concerned under 
any provision of law, the Secretary concerned may grant an easement to 
an entity specified in subsection (b) restricting future uses of the 
conveyed real property for a conservation purpose consistent with 
section 170(h)(4)(A)(iv) of the Internal Revenue Code of 1986 (26 
U.S.C. 170(h)(4)(A)(iv)).
    ``(b) Authorized Recipients.--An easement under subsection (a) may 
be granted only to--
        ``(1) a State or local government; or
        ``(2) a qualified organization, as that term is defined in 
    section 170(h) of the Internal Revenue Code of 1986 (26 U.S.C. 
    170(h)).
    ``(c) Limitations on Use of Easement Authority.--An easement under 
subsection (a) may not be granted unless--
        ``(1) the proposed recipient of the easement consents to the 
    receipt of the easement;
        ``(2) the Secretary concerned determines that the easement is 
    in the public interest and the conservation purpose to be 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 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 interchange of 
    property and services.--Section 2571(a) of such title is amended by 
    striking ``and real estate''.
        (2) Repeal of superseded authority on screening and transfer 
    for correctional purposes.--Section 2693 of such title is repealed.
        (3) Conforming amendments to consolidated authority.--Section 
    2696 of such title is amended--
            (A) in subsection (b), as redesignated by subsection 
        (a)(1), by striking ``Screening Requirement.--'' and inserting 
        ``Screening Requirements for Additional Federal Use.--'';
            (B) in subsection (c)(1), as redesignated by subsection 
        (a)(1), by striking ``subsection (a)'' in the first sentence 
        and inserting ``subsection (b)'';
            (C) in subsection (d), by striking ``subsection (b)(1)'' 
        and inserting ``subsection (c)(1)''; and
            (D) in subsection (e), by striking ``this section'' and 
        inserting ``subsection (b)''.
    (d) Clerical Amendments.--
        (1) Section 2571.--(A) The heading of section 2571 of such 
    title is amended to read as follows:

``Sec. 2571. Interchange of supplies and services''.

        (B) The table of sections at the beginning of chapter 153 of 
    such title is amended by striking the item relating to section 2571 
    and inserting the following new item:

``2571. Interchange of supplies and services.''.

        (2) Sections 2693 and 2696.--(A) The heading of section 2696 of 
    such title is amended to read as follows:

``Sec. 2696. Real property: transfer between armed forces and screening 
            requirements for other Federal use''.

        (B) The table of sections at the beginning of chapter 159 of 
    such title is amended--
            (i) by striking the item relating to section 2693; and
            (ii) by striking the item relating to section 2696 and 
        inserting the following new item:

``2696. Real property: transfer between armed forces and screening 
          requirements for other Federal use.''.
SEC. 2826. DEFENSE ACCESS ROAD PROGRAM.
    Section 2837 of the Military Construction Authorization Act for 
Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat. 3522) is 
amended--
        (1) in subsection (a)--
            (A) by inserting ``and transit systems'' after ``that 
        roads''; and
            (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.
            (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 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).
        (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 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 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'' 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.
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.
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:
        ``(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 (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 Secretary to carry out the 
    conveyance, the Secretary shall refund the excess amount to the 
    Commonwealth.
        (2) Treatment of amounts received.--Amounts received as 
    reimbursement under paragraph (1) shall be credited to the fund or 
    account that was used to cover the costs incurred by the Secretary 
    in carrying out the conveyance. Amounts so credited shall be merged 
    with amounts in such fund or account and shall be available for the 
    same purposes, and subject to the same conditions and limitations, 
    as amounts in such fund or account.
    (d) Description of Real Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

                      Subtitle E--Energy Security

SEC. 2851. CONSOLIDATION AND ENHANCEMENT OF LAWS TO IMPROVE DEPARTMENT 
OF DEFENSE ENERGY EFFICIENCY AND CONSERVATION.
    (a) Creation of New Chapter.--
        (1) Reorganization of section 2865 of title 10.--Title 10, 
    United States Code, is amended by inserting after chapter 172 the 
    following new chapter:

                     ``CHAPTER 173--ENERGY SECURITY

``Subchapter
``I. Energy Security Activities................................... 2911 

``II. Energy-Related Procurement.................................. 2922 

``III. General Provisions......................................... 2925 

               ``SUBCHAPTER I--ENERGY SECURITY ACTIVITIES

``Sec.
`` 2911. Energy performance goals and plan for Department of Defense.
`` 2912. Availability and use of energy cost savings.
`` 2913. Energy savings contracts and activities.
`` 2914. Energy conservation construction projects.
``2915. New construction: use of renewable forms of energy and energy 
          efficient products.
``2916. Sale of electricity from alternate energy and cogeneration 
          production facilities.
``2917. Development of geothermal energy on military lands.
``2918. Fuel sources for heating systems; prohibition on converting 
          certain heating facilities.

``Sec. 2911. Energy performance goals and plan for Department of 
            Defense

    ``(a) Energy Performance Goals.--(1) The Secretary of Defense shall 
submit to the congressional defense committees the energy performance 
goals for the Department of Defense regarding transportation systems, 
support systems, utilities, and infrastructure and facilities.
    ``(2) The energy performance goals shall be submitted annually not 
later than the date on which the President submits to Congress 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.

``Sec. 2912. Availability and use of energy cost savings

    ``(a) Availability.--An amount of the funds appropriated to the 
Department of Defense for a fiscal year that is equal to the amount of 
energy cost savings realized by the Department, including financial 
benefits resulting from shared energy savings contracts entered into 
under section 2913 of this title, shall remain available for obligation 
under subsection (b) until expended, without additional authorization 
or appropriation.
    ``(b) Use.--The Secretary of Defense shall provide that the amount 
that remains available for obligation under subsection (a) and the 
funds made available under section 2916(b)(2) of this title shall be 
used as follows:
        ``(1) One-half of the amount shall be used for the 
    implementation of additional energy conservation measures at 
    buildings, facilities, or installations of the Department of 
    Defense or related to vehicles and equipment of the Department, 
    which are designated, in accordance with regulations prescribed by 
    the Secretary of Defense, by the head of the department, agency, or 
    instrumentality that realized the savings referred to in subsection 
    (a).
        ``(2) One-half of the amount shall be used at the installation 
    at which the savings were realized, as determined by the commanding 
    officer of such installation consistent with applicable law and 
    regulations, for--
            ``(A) improvements to existing military family housing 
        units;
            ``(B) any unspecified minor construction project that will 
        enhance the quality of life of personnel; or
            ``(C) any morale, welfare, or recreation facility or 
        service.
    ``(c) Treatment of Certain Financial Incentives.--Financial 
incentives received from gas or electric utilities under section 2913 
of this title shall be credited to an appropriation designated by the 
Secretary of Defense. Amounts so credited shall be merged with the 
appropriation to which credited and shall be available for the same 
purposes and the same period as the appropriation with which merged.
    ``(d) Congressional Notification.--The Secretary of Defense shall 
include in the budget material submitted to Congress in connection with 
the submission of the budget for a fiscal year pursuant to section 1105 
of title 31 a separate statement of the amounts available for 
obligation under this section in that fiscal year.

``Sec. 2913. Energy savings contracts and activities

    ``(a) Shared Energy Savings Contracts.--(1) The Secretary of 
Defense shall develop a simplified method of contracting for shared 
energy savings contract services that will accelerate the use of these 
contracts with respect to military installations and will reduce the 
administrative effort and cost on the part of the Department of Defense 
as well as the private sector.
    ``(2) In carrying out paragraph (1), the Secretary of Defense may--
        ``(A) request statements of qualifications (as prescribed by 
    the Secretary of Defense), including financial and performance 
    information, from firms engaged in providing shared energy savings 
    contracting;
        ``(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.

``Sec. 2914. Energy conservation construction projects

    ``(a) Projects Authorized.--The Secretary of Defense may carry out 
a military construction project for energy conservation, not previously 
authorized, using funds appropriated or otherwise made available for 
that purpose.
    ``(b) Congressional Notification.--When a decision is made to carry 
out a project under this section, the Secretary of Defense shall notify 
in writing the appropriate committees of Congress of that decision. The 
project may then be carried out only after the end of the 21-day period 
beginning on the date the notification is received by such committees 
or, if earlier, the end of the 14-day period beginning on the date on 
which a copy of the notification is provided in an electronic medium 
pursuant to section 480 of this title.

              ``SUBCHAPTER II--ENERGY-RELATED PROCUREMENT

``Sec.
``2922. Liquid fuels and natural gas: contracts for storage, handling, 
          or distribution.
``2922a. Contracts for energy or fuel for military installations.
``2922b. Procurement of energy systems using renewable forms of energy.
``2922c. Procurement of gasohol as motor vehicle fuel.
``2922d. Procurement of fuel derived from coal, oil shale, and tar 
          sands.
``2922e. Acquisition of certain fuel sources: authority to waive 
          contract procedures; acquisition by exchange; sales authority.
``2922f. Preference for energy efficient electric equipment.

                  ``SUBCHAPTER III--GENERAL PROVISIONS

``Sec.
``2925. Annual report.

``Sec. 2925. Annual report

    ``(a) Report Required.--As part of the annual submission of the 
energy performance goals for the Department of Defense under section 
2911 of this title, the Secretary of Defense shall submit a report 
containing the following:
        ``(1) A description of the progress made to achieve the goals 
    of the Energy Policy Act of 2005 (Public Law 109-58) and the energy 
    performance goals for the Department of Defense during the 
    preceding fiscal year.
        ``(2) A description of the actions taken to implement the 
    energy performance plan in effect under section 2911 of this title 
    and carry out this chapter during the preceding fiscal year.
        ``(3) A description of the energy savings realized from such 
    actions.
        ``(4) An estimate of the types and quantities of energy 
    consumed by the Department of Defense and members of the armed 
    forces and civilian personnel residing or working on military 
    installations during the preceding fiscal year, including a 
    breakdown of energy consumption by user groups and types of energy, 
    energy costs, and the quantities of renewable energy produced or 
    procured by the Department.
        ``(5) A description of the types and amount of financial 
    incentives received under section 2913 of this title during the 
    preceding fiscal year and the appropriation account or accounts to 
    which the incentives were credited.
    ``(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), 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:
    ``(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:
    ``(e) Congressional Notification of Cancellation Ceiling for Energy 
Savings Performance Contracts.--When a decision is made to award an 
energy savings performance contract that contains a clause setting 
forth a cancellation ceiling in excess of $7,000,000, the Secretary of 
Defense shall submit to the appropriate committees of Congress written 
notification of the proposed contract and of the proposed cancellation 
ceiling for the contract. The notification shall include the 
justification for the proposed cancellation ceiling. The contract may 
then be awarded only after the end of the 30-day period beginning on 
the date the notification is received by such committees or, if 
earlier, the end of the 15-day period beginning on the date on which a 
copy of the notification is provided in an electronic medium pursuant 
to section 480 of this title.''.
SEC. 2854. USE OF ENERGY EFFICIENCY PRODUCTS IN NEW CONSTRUCTION.
    (a) Use of Energy Efficient Products.--Section 2915 of title 10, 
United States Code, as transferred, redesignated, and amended by 
section 2851(b) of this Act, is amended by adding at the end the 
following new subsection:
    ``(e) Use of Energy Efficiency Products in New Construction.--(1) 
The Secretary of Defense shall ensure, to the maximum extent 
practicable, that energy efficient products meeting the requirements of 
the Department of Defense are used in new facility construction by or 
for the Department carried out under chapter 169 of this title if such 
products are readily available and their use is consistent with the 
energy performance goals and energy performance plan for the Department 
developed under section 2911 of this title and supported by the special 
considerations specified in subsection (c) of such section.
    ``(2) In determining the energy efficiency of products, the 
Secretary shall consider products that--
        ``(A) meet or exceed Energy Star specifications; or
        ``(B) are listed on the Federal Energy Management Program 
    Product Energy Efficiency Recommendations product list of the 
    Department of Energy.''.
    (b) Clerical Amendments.--Such section is further amended--
        (1) by striking the section heading and inserting the 
    following:

``Sec. 2915. New construction: use of renewable forms of energy and 
            energy efficient products'';

        (2) in subsection (a), by inserting ``Use of Renewable Forms of 
    Energy Encouraged.--'' after ``(a)'';
        (3) in subsection (b), by inserting ``Consideration During 
    Design Phase of Projects.--'' after ``(b)'';
        (4) in subsection (c), by inserting ``Determination of Cost 
    Effectiveness.--'' after ``(c)''; and
        (5) in subsection (d), by inserting ``Exception to Square Feet 
    and Cost Per Square Foot Limitations.--'' after ``(d)''.

                       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--
        (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.
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.

         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.

   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.
        ``(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
        (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 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
        (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.
            (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.''.

    (c) Counterintelligence Programs at NNSA Facilities.--Section 3233 
of the National Nuclear Security Administration Act (50 U.S.C. 2423) is 
amended--
        (1) in each of subsections (a) and (b), by striking ``The 
    Administrator shall'' and inserting ``The Secretary of Energy 
    shall''; and
        (2) in subsection (b), by striking ``Office of Defense Nuclear 
    Counterintelligence'' and inserting ``Office of Counterintelligence 
    of the Department of Energy''.
    (d) Status of NNSA Intelligence and Counterintelligence 
Personnel.--Section 3220 of the National Nuclear Security 
Administration Act (50 U.S.C. 2410) is amended by adding at the end the 
following new subsection:
    ``(e) Status of Intelligence and Counterintelligence Personnel.--
Notwithstanding the restrictions of subsections (a) and (b), each 
officer or employee of the Administration, or of a contractor of the 
Administration, who is carrying out activities related to intelligence 
or counterintelligence shall, in carrying out those activities, be 
subject to the authority, direction, and control of the Secretary of 
Energy or the Secretary's delegate.''.
    (e) NNSA Intelligence and Counterintelligence Liaison.--Section 
3218 of the National Nuclear Security Administration Act (50 U.S.C. 
2408) is amended in subsection (b)--
        (1) by redesignating paragraph (4) as paragraph (5); and
        (2) by inserting after paragraph (3) the following new 
    paragraph (4):
        ``(4) Liaison with the Department of Energy's Office of 
    Intelligence and Counterintelligence.''.
    (f) Service From Which DOE Intelligence Director and 
Counterintelligence Director Appointed.--Section 215(b)(1) (42 U.S.C. 
7144b(b)(1)) and section 216(b)(1) (42 U.S.C. 7144c(b)(1)) of the 
Department of Energy Organization Act are each amended by striking 
``which shall be a position in the Senior Executive Service'' and 
inserting ``who shall be an employee in the Senior Executive Service, 
the Senior Intelligence Service, the Senior National Intelligence 
Service, or any other Service that the Secretary, in coordination with 
the Director of National Intelligence, considers appropriate''.
    (g) Intelligence Executive Committee; Budget for Intelligence and 
Counterintelligence.--Section 214 of the Department of Energy 
Organization Act (42 U.S.C. 7144a) is amended--
        (1) by inserting ``(a)'' before ``The Secretary shall be 
    responsible''; and
        (2) by adding at the end the following:
    ``(b)(1) 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 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 (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 
    disposition of Russian weapons-grade plutonium under the 2000 
    Plutonium Disposition and Management Agreement, and whether such 
    parallelism can be achieved if the United States mixed-oxide (MOX) 
    plutonium disposition program continues on the current planned 
    schedule without further delays.
SEC. 3122. LIMITATION ON AVAILABILITY OF FUNDS FOR CONSTRUCTION OF MOX 
FUEL FABRICATION FACILITY.
    Of the amount appropriated under section 3101(a)(2) or otherwise 
available for defense nuclear nonproliferation activities for fiscal 
year 2007, none of that amount may be obligated for construction 
project 99-D-143, the Mixed-Oxide (MOX) Fuel Fabrication Facility, 
until 30 days after the date on which the Secretary of Energy provides 
to the congressional defense committees--
        (1) an independent cost estimate for the United States Surplus 
    Fissile Materials Disposition Program and facilities;
        (2) a written certification that the Department of Energy 
    intends to use the MOX Fuel Fabrication Facility for United States 
    plutonium disposition regardless of the future direction of the 
    Russian Surplus Fissile Materials Disposition Program; and
        (3) a corrective action plan for addressing the issues raised 
    by the Inspector General of the Department of Energy in the 
    December 2005 report titled ``The Status of the Mixed Oxide Fuel 
    Fabrication Facility''.
SEC. 3123. EDUCATION OF FUTURE NUCLEAR ENGINEERS.
    (a) Findings.--Congress makes the following findings:
        (1) The Department of Defense and the Department of Energy 
    depend on the specialized expertise of nuclear engineers who 
    support the development and sustainment of technologies including 
    naval reactors, strategic weapons, and nuclear power plants.
        (2) Experts estimate that over 25 percent of the approximately 
    58,000 workers in the nuclear power industry in the United States 
    will be eligible to retire within 5 years, representing both a huge 
    loss of institutional memory and a potential national security 
    crisis.
        (3) This shortfall of workers is exacerbated by reductions to 
    the University Reactor Infrastructure and Education Assistance 
    program, which trains civilian nuclear scientists and engineers. 
    The defense and civilian nuclear industries are interdependent on a 
    limited number of educational institutions to produce their 
    workforce. A reduction in nuclear scientists and engineers trained 
    in the civilian sector may result in a further loss of qualified 
    personnel for defense-related research and engineering.
        (4) The Department of Defense's successful Science, Math and 
    Research for Transformation (SMART) scholarship-for-service program 
    serves as a good model for a targeted scholarship or fellowship 
    program designed to educate future scientists at the postsecondary 
    and postgraduate levels.
    (b) Report on Education of Future Nuclear Engineers.--
        (1) Study.--The Secretary of Energy shall study the feasibility 
    and merit of establishing a targeted scholarship or fellowship 
    program to educate future nuclear engineers at the postsecondary 
    and postgraduate levels.
        (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.
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.
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 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.''.
        (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.''.
    (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, 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 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 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''.
        (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.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.`